2025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Stock code: 000037 200037 Stock abbreviation: Shenzhen Nanshan Power A Shenzhen Announcement No.: 2026-021 Nanshan Power B Shenzhen Nanshan Power Co. Ltd. 2025 Annual Report April 2026 12025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 2025 Annual Report I. Important contents and definitions The Board of Directors directors and senior officers of the Company warrant that the contents of this annual report are true accurate and complete and that there are no false records misleading statements or material omissions.They will bear joint and several liability for such matters.The Company's Principal and Accounting Director KONG Guoliang Chief Finance Officer ZHANG Xiaoyin and Chief Accountant (accounting officer) LIN Xiaojia declare that they guarantee the authenticity accuracy and completeness of the financial report in this annual report.All directors attended the meeting of Board of Directors at which the report was reviewed.The Company's profit distribution plan reviewed and approved by the Board of Directors this time is as follows: based on 602762596 shares a cash dividend of RMB 0.32 (tax included) will be distributed to all shareholders for every 10 shares and 0 shares (tax included) will be given as bonus shares. The capital reserve will not be converted into share capital.The annual report is prepared in Chinese and English respectively. If there is any ambiguity in the understanding of the two texts the Chinese text shall prevail.Investors are requested to read the full text of the annual report carefully.Forward-looking statements such as future development strategies and business plans involved in this annual report (if any) do not constitute a 22025 Annual Report of Shenzhen Nanshan Power Co. Ltd. substantial commitment by the Company to investors. Investors and related persons are requested to maintain sufficient risk awareness understand the differences between plans forecasts and commitments and pay attention to investment risks. 32025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Table of Contents I. Important contents and definitions ............... 2 II. Company Profile and Major Financial Indicators... 7 III. Management's Discussion and Analysis .......... 12 IV. Corporate Governance Environment and Society ... 50 V. Important Matters ............................... 74 VI. Changes in Shares and Shareholders ............. 84 VII. Bonds ........................................ …92 VIII. Financial Report ............................ …93 42025 Annual Report of Shenzhen Nanshan Power Co. Ltd. List of documents for inspection I. Financial statements signed and sealed by the Company's Principal Accounting Director Chief Finance Officer and Chief Accountant (accounting officer).II. The original audit report bearing the seal of the accounting firm and the signature and seal of the certified public accountant.III. The originals of all the Company's documents and announcements that have been publicly disclosed on designated media during the reporting period.IV. Place for inspection: Office of the Board of Directors. 52025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Interpretations Item Refers to Content Company the Company Shenzhen Refers to Shenzhen Nanshan Power Co. Ltd.Nanshan Power the listed company CSRC Refers to China Securities Regulatory Commission State-owned Assets Regulatory Commission of Shenzhen SASAC Refers to Shenzhen Municipal People's Government SEC Refers to Shenzhen Energy Corporation Shenzhen Nanshan Power Zhongshan Shenzhen Nanshan Power (Zhongshan) Power Refers to Company Co. Ltd.Shenzhen Nanshan Power Engineering Shenzhen Nanshan Power Gas Turbine Refers to Company Engineering Technology Co. Ltd.Shenzhen Nanshan Power Environmental Shenzhen Nanshan Power Environmental Refers to Protection Company Protection Co. Ltd.Shenzhen Nanshan Power Xiwan Shenzhen Nanshan Power Xiwan Energy Refers to Company (Zhongshan) Co. Ltd.Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. (formerly known as "Sichuan Energy Technology Company Refers to Ruinan Electric Power Construction Engineering Co. Ltd.") Server Company Refers to Shenzhen Server Energy Co. Ltd.New Power Company Refers to Shenzhen New Power Industrial Co. Ltd.Nanshan Power Plant of Shenzhen Nanshan Nanshan Power Plant Refers to Power Co. Ltd.Zhongshan Nanlang Power Plant of Shenzhen Zhongshan Nanlang Power Plant Refers to Nanshan Power (Zhongshan) Power Co. Ltd.Shenzhen United Property and Equity Refers to Shenzhen United Property and Equity Exchange Exchange Zhuhai Hengqin Zhuozhi Investment Partnership Zhuozhi Fund Refers to (Limited Partnership) Shenzhen Yuanzhi Ruixin New Generation Yuanzhi Ruixin Information Technology Information Technology Private Equity Refers to Fund Investment Fund Partnership (Limited Partnership) New-type Energy Storage Industry Shenzhen New-type Energy Storage Industry Refers to Investment Fund Equity Fund Partnership (Limited Partnership) Company Law Refers to Company Law of the People's Republic of China Securities Law Refers to Securities Law of the People's Republic of China Rules Governing the Listing of Stocks on the Rules Governing the Listing of Stocks Refers to Shenzhen Stock Exchange Articles of Association of Shenzhen Nanshan Articles of Association Refers to Power Co. Ltd.Except for the specially described monetary units RMB RMB 10000 RMB 100000000 Refers to the remaining ones are RMB RMB 10000 and RMB 100000000 Reporting period Refers to January 1 2025 to December 31 2025 62025 Annual Report of Shenzhen Nanshan Power Co. Ltd. II. Company Profile and Major Financial Indicators 1. Company information Shenzhen Nanshan Power A Stock abbreviation Stock code 000037 200037 Shenzhen Nanshan Power B Stock exchange for listing Shenzhen Stock Exchange Name in Chinese 深圳南山热电股份有限公司 Chinese abbreviation (If any) 深南电 Foreign name of the Shenzhen Nanshan Power Co. Ltd.Company (if any) Legal representative KONG Guoliang Registered address No. 2097 Yueliangwan Avenue Nanshan District Shenzhen City Guangdong Province Postal code of the Registered 518054 Address Historical change of the None company's registered address 16/F and 17/F Hantang Tower Overseas Chinese Town Nanshan District Shenzhen City Office Address Guangdong Province Postal code of the office 518053 address Website http://www.nsrd.com.cn E-mail public@nspower.com.cn; investor@nspower.com.cn 2. Contact and contact information Secretary to the Board of Directors Securities affairs representative Name ZOU Yi LU Yindi 16/F and 17/F Hantang Tower Overseas 16/F and 17/F Hantang Tower Overseas Contact address Chinese Town Nanshan District Chinese Town Nanshan District Shenzhen City Guangdong Province Shenzhen City Guangdong Province Tel 0755-26003611 0755-26003611 Fax 0755-26003684 0755-26003684 E-mail investor@nspower.com.cn investor@nspower.com.cn 3. Information disclosure and preparation location Website of the stock exchange for publishing the annual Shenzhen Stock Exchange: http://www.szse.cn/ report of the Company Media and website for publishing the annual report of the Securities Times: http://www.stcn.com/ Company Cninfo: http://www.cninfo.com.cn/ Office of the Board of Directors 17/F Hantang Tower Overseas Storage location of annual reports Chinese Town Nanshan District Shenzhen City Guangdong Province 72025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 4. Changes in registration Unified social credit code 91440300618815121H Changes in primary business since the listing of the Company No change (if any) Previous changes of controlling shareholder (if any) No controlling shareholder 5. Other relevant information CPAs engaged ShineWing Certified Public Accountants (Special General Name of the CPAs Partnership) 8/F Block A Fuhua Mansion No. 8 Chaoyangmen North Office address: Street Dongcheng District Beijing Names of the Certified Public Accountants as the signatories LI Wenqian ZHANG Zijian The sponsor performing persistent supervision duties engaged by the Company in the reporting period.□Applicable □Not applicable The financial advisor performing persistent supervision duties engaged by the Company in the reporting period □Applicable □Not applicable 6. Key accounting data and financial indicators May the Company make retroactive adjustment or restatement of the accounting data of the previous years □Yes□ No Changed over 202520242023 last year Operating income (RMB) 401681583.10 442971955.85 -9.32% 589780190.71 Net profit attributable to the shareholders of the listed 161038200.40 21908828.57 635.04% 4158797.10 company (RMB) Net profit attributable to the shareholders of the listed -80894749.49-87508091.577.56%-70789007.91 company after deducting non- recurring gain/loss (RMB) Net cash flows from -16801521.85-37635766.0555.36%-100371976.92 operating activities (RMB) Basic earning per share 0.26720.0363636.09%0.0069 (RMB/Share) Diluted gains per share 0.26720.0363636.09%0.0069 (RMB/Share) Weighted average rate of 10.28% 1.49% Up 8.79% 0.29% return on net assets Changed over End of 2025 End of 2024 End of 2023 last year Total assets (RMB) 2313750813.45 2012736635.59 14.96% 2049365388.69 Net assets attributable to 1677559728.271485380575.0812.94%1459288691.94 shareholders of the listed 82025 Annual Report of Shenzhen Nanshan Power Co. Ltd. company (RMB) The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the last three fiscal years is negative and the auditor's report of the previous year shows that the Company’s going concern ability is uncertain.□Yes□ No During the reporting period the lowest of the Company's audited total profit net profit and net profit after deducting non-recurring gains and losses was negative □Yes□ No Item 2025 2024 Remark Mainly income from power Operating income (RMB) 401681583.10 442971955.85 generation and sales and integrated energy services.Business revenue not related Other business income 11840280.14 5642037.47 to the main business Mainly income from leasing of self-owned properties Operating income deduction 11840280.14 5642037.47 property leasing and amount (RMB) management services and disposal of inventories.Operating income after deducting income from Operating income after leasing of self-owned 389841302.96437329918.38 deduction (RMB) properties property leasing and management services and disposal of inventories. 7. Differences in accounting data under domestic and foreign accounting standards (1) Differences in net profit and net assets in the financial reports disclosed in accordance with the international accounting standards and the Chinese accounting standards □Applicable □Not applicable During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in accordance with international accounting standards and Chinese accounting standards (2) Differences in net profit and net assets in financial reports disclosed in accordance with both the international accounting standards and Chinese accounting standards □Applicable □Not applicable During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in accordance with the international accounting standards and Chinese accounting standards. 8. Main Financial Index by quarters Unit: RMB Q1 Q2 Q3 Q4 Operating income 58411466.37 107978487.88 112542562.16 122749066.69 Net profit attributable to the shareholders of -12305181.65 -9434327.99 1796231.44 180981478.60 the listed company 92025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Net profit attributable to the shareholders of the listed company -15484838.12 -12842179.23 779925.20 -53347657.34 after deducting non- recurring gain/loss Net cash flow from -29375286.18-32878479.3312587586.3032864657.36 operating activities Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly report as well as semi-annual report index disclosed by the Company.□Yes No□ 9. Non-recurring profit or loss and amounts □Applicable □Not applicable Unit: RMB Item Amount in 2025 Amount in 2024 Amount in 2023 Description Mainly due to the completion of the land reservation and transfer of Non-current asset disposal Parcel B by the subsidiary gain/loss(including the write- Shenzhen Nanshan Power off part for which assets 284413055.16 163881112.16 1878391.11 Zhongshan Company in the impairment provision is current year with the made) corresponding recognition of gains or losses on asset disposal.Government grants included in the current profit or loss (except for those that are closely related to the Mainly due to the Company's normal business government grants related operations comply with 8477550.00 486069.90 44431212.00 to income received by the national policies and Company during the regulations are enjoyed reporting period.according to determined standards and have a sustained impact on the Company's profit or loss) Profit or loss from changes Mainly because the in fair value of financial Company strengthened its assets and liabilities held by refined fund management non-financial enterprises and to improve the efficiency of profit or loss from the fund utilization and disposal of financial assets 10600665.22 11286239.10 18538064.54 obtained relevant and financial liabilities investment income from except for effective hedging large-denomination operations related to the certificates of deposit Company's normal business structured deposits and operations money market funds.Reversal of the account receivable depreciation 0.001235154.68 reserves subject to separate impairment test 102025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Mainly due to the income generated as the Company Income from the cost of focused on strengthening investments in acquiring and supplementing the subsidiaries associates and chain of its integrated joint ventures being less than energy services business 579165.68 the fair value of the and the cost of investment identifiable net assets of the in acquiring a subsidiary investee at the time of Energy Technology acquisition Company was less than the fair value of its identifiable net assets.Mainly due to the Company reaching a settlement with Other non-operating income relevant parties regarding and expenditures other than -1738091.28 775495.19 11628630.83 historical business disputes the above and making payments accordingly during the current period.Less: Influenced amount of 649258.609140402.850.00 income tax Influenced amount of minor shareholders’ equity 59750136.29 57871593.36 2763648.15 (after tax) Total 241932949.89 109416920.14 74947805.01 -- Details of other profit and loss items that meet the non-recurring profit and loss definition □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. 112025 Annual Report of Shenzhen Nanshan Power Co. Ltd. III. Management's Discussion and Analysis 1. Main Business Engaged in by the Company During the Reporting PeriodThe Company shall comply with the disclosure requirements for the power supply industry as set out in the “Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure” The Company's main business is power generation and sales and integrated energy services. At the end of the reporting period the Company's Nanshan Power Plant had three sets of 9E gas-steam combined cycle generating units with a total installed capacity of 540000 KW The power plant located in the power load center of the Qianhai Area of China (Guangdong) Pilot Free Trade Zone in Shenzhen serves as a peak-shaving power source for the region. The two sets of 9E gas-steam combined cycle generating units at the Zhongshan Nanlang Power Plant have been shut down and withdrawn from dispatch operations and the power generation unit equipment and related assets were successfully listed for transfer in March 2025. During the reporting period Nanshan Power Plant actively fulfilled its responsibility to ensure power supply firmly built a safety defense line scientifically coordinated gas and power matching and dynamically adjusted its power marketing and fuel procurement strategies completing an on-grid electricity volume of 282 million kWh and a contracted electricity volume for settlement of 480 million kWh. Its subsidiary Shenzhen Nanshan Power Environmental Protection Company made every effort to expand its electricity sales business acting as an agent for a total user electricity volume of 40.76 million kWh. The Zhongshan Independent Energy Storage Power Station (Phase I) project of Shenzhen Nanshan Power Xiwan Company was officially put into commercial operation in June 2025 with cumulative charging and discharging volumes of 82.1066 million kWh and 72.6871 million kWh respectively (including the discharging volume during commissioning in May) and the annual cumulative frequency regulation mileage of 4614674 MW.During the reporting period the Company focused on the business development and market expansion of its subsidiaries made every effort to build an integrated platform of "investment construction operation management and maintenance" and continued to enhance its full-chain business synergy and value creation capabilities: Shenzhen Nanshan Power Engineering Company leveraging its years of technical expertise and accumulated cooperation resources in the field of gas turbine power station engineering and construction concentrated on tackling engineering and technical service business in the gas turbine field. Relying on its specialized and refined technical capabilities it successfully signed multiple contracts to provide high-quality technical services to clients.Shenzhen Nanshan Power Environmental Protection Company delved into the new energy operation and maintenance service field and comprehensively developed integrated energy service projects such as operation and maintenance and solar-storage-charging forming a diversified integrated energy service portfolio. Energy Technology Company closely followed the Company's overall development strategy and focused on the new energy engineering and construction field. With the goal of "rapid integration efficient synergy and precise breakthroughs" it leveraged its professional EPC advantages to cultivate the energy storage and photovoltaic fields achieving rapid business implementation within half a year. Server Company actively expanded its business scope and focused on the property leasing and management service business of SEC significantly enhancing its market expansion capabilities property management capabilities and profitability. Shenzhen Nanshan Power Xiwan Company completed the Zhongshan Independent Energy Storage Power Station (Phase I) project with high quality and efficiency and continued to strengthen its operation management capabilities.Key production and operation information Item Reporting period Same period last year Total installed capacity (10000 KW) 54 54 Installed capacity of newly commissioned units (10000 00 KW) Planned installed capacity of approved projects (10000 00 KW) 122025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Planned installed capacity of projects under construction 00 (10000 KW) Power generation (100 million KWH) 2.84 5.12 On-grid electricity or electricity sales (100 million 2.825.10 KWH) Settlement electricity price (RMB/100 million kWh tax 0.8240.817 included) Average electricity consumption rate of power plants 4.42%3.85% (%) Utilization hours of power plants (hours) 517 933 The Company's electricity sales business □Applicable □Not applicable Shenzhen Nanshan Power Environmental Protection Company a subsidiary of the Company was approved to conduct market- based electricity sales business in Guangdong Province in January 2024. During the reporting period Shenzhen Nanshan Power Environmental Protection Company successively signed retail contracts with 13 users including Shenzhen Guoneng Property Management Co. Ltd. Zijin Marine Engineering (Zhuhai) Co. Ltd. Shenzhen Yantian Port Cold Chain Investment Holding Co.Ltd. and PowerChina (Guangdong) Zhongkai Expressway Co. Ltd. with a total annual electricity volume represented of 40.76 million kWh.Reasons for significant changes in relevant data □Applicable □Not applicable With the continuous improvement of the capacity pricing mechanism in Guangdong Province gas-fired power generation is accelerating its transformation toward playing dual roles as both a baseload power source and a system-regulating power source. During the reporting period Nanshan Power Plant strictly followed the operating rules of the electricity market closely tracked the trend of nodal electricity prices aimed to maximize comprehensive income continuously optimized the operating mode of its units and dynamically adjusted its clearing strategy in the spot market. Affected by the adjustments in the above market-oriented business strategies the power generation and on-grid electricity of Nanshan Power Plant decreased accordingly in 2025 and the utilization hours of the power plant also declined.Involving new energy power generation business 2. Industry Information of the Company During the Reporting PeriodThe Company shall comply with the disclosure requirements for the power supply industry as set out in the “Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure” In 2025 China's electricity consumption demand maintained steady growth with the national total electricity consumption reaching 10.4 trillion kWh up approximately 6% year on year. Although the growth rate slightly declined compared to 2024 it remained within a reasonable range. The steady increase in electricity consumption across all industries continued to demonstrate economic resilience and deepening of terminal energy electrification. Guided by the "carbon peaking and carbon neutrality" goals and driven by the accelerated energy transition the power production structure achieved a historic leap with significant results in green and low-carbon transformation. By the end of 2025 the full-caliber installed power generation capacity nationwide exceeded 3.89 billion kW up 16.1% year on year and the installed capacity of non-fossil energy power generation reached 2.40 billion kW accounting for 61.7% of the total installed capacity up 3.5% from the end of 2024 indicating that China's energy structure is entering a period of comprehensive acceleration in its clean transition. In terms of power source structure the installed capacity of new energy power 132025 Annual Report of Shenzhen Nanshan Power Co. Ltd. generation continued to lead with installed capacity of wind and solar power generation achieving leapfrog growth. By the end of 2025 the installed capacity of new energy sources such as wind solar and biomass power further expanded. Among them the installed capacity of solar power generation was 1.20 billion kW (up 35.4% year on year) and the installed capacity of wind power generation was 640 million kW (up 22.9% year on year). The total installed capacity of wind and solar power generation reached 1.84 billion kW accounting for 47.3% of the total installed capacity. The scale of installed capacity of wind and solar power generation continued to surpass that of thermal power and maintained rapid growth becoming the core supporting power source in the new power system. The growth rate of installed capacity of thermal power generation continued to slow down. Although coal power's share of total installed capacity dropped to about 33% coal power played the role of a "ballast stone" in ensuring power supply and undertook key functions in grid base load security peak and frequency regulation and emergency standby providing important support for the safe and stable operation of the power system.In 2025 China's new-type energy storage industry continued its high-speed growth trend with more prominent market-oriented development characteristics. The annual newly commissioned installed capacity of new-type energy storage was 66.43 million kW / 189.48 million kWh. By the end of 2025 the cumulative installed capacity of completed and commissioned new-type energy storage projects nationwide reached 144.7 million kW / 351 million kWh up about 85% year on year and 40 times from the end of the "13th Five-Year Plan" period. The installed capacity of new-type energy storage continued to surpass that of pumped storage and the coordinated development of energy storage and new energy fully shifted from being policy-driven to being driven by endogenous market demand. With the large-scale development of new energy and energy storage the integration of power generation grid load and storage as well as the multi-energy complementary utilization are accelerating. Integrated energy services are thus facing broader development prospects. They play a vital role in consolidating energy resources improving energy efficiency reducing carbon emissions and optimizing energy costs thereby injecting new momentum into the construction of a new-type power system and high- quality energy development. Overall in 2025 China made breakthrough progress in building a new power system with new energy as the mainstay and accelerated the formation of the development pattern of the power industry towards being green low-carbon safe and efficient. 3. Analysis on Core Competitiveness In recent years affected by the macroeconomic situation and common issues in the gas-fired power generation industry the Company's main business of power production still faces difficulties and challenges. However the core competitiveness formed over more than thirty years of operation and development the strong support from the Company's major shareholders and the innovative operation management initiatives taken by the Board of Directors and the management team of the Company have laid a solid foundation for the Company's sustainable operation and pursuit of transformational development. During the reporting period the Company adhered to a prudent development philosophy remained firm in its strategic beliefs flexibly adjusted its business strategies and meticulously optimized resource allocation successfully overcoming a series of development challenges and further consolidating and enhancing its core competitiveness. (1) A management culture of hard work and innovation. The Company has a group of operation management talents with innovative awareness and a spirit of hard work. By deepening human resources reform and building a performance-oriented assessment and incentive mechanism the Company advocates and fosters a management culture of unity hard work innovation and enterprise throughout the Company. At the same time the Company attaches great importance to and vigorously promotes the construction of its policy management and compliance systems and adheres to standardized management that is law-abiding scientific rigorous efficient and orderly. Through a management orientation that is process-based refined and standardized the Company has laid a solid foundation for deeply tapping its internal potential and actively seeking external opportunities. (2) Professional and enterprising technical talents. Having been deeply involved in the gas-fired power generation industry for over thirty years the Company has leveraged its industry influence to attract and cultivate a group of professional technical experts and key talents with extensive practical experience in the construction and operation management of gas-fired power plants. Meanwhile 142025 Annual Report of Shenzhen Nanshan Power Co. Ltd. to adapt to the electricity market reform in Guangdong Province the Company has established a professional power marketing team continuously optimized trading strategies and marketing models and possesses mature capabilities for market-oriented electricity operations. In addition Shenzhen Nanshan Power Engineering Company with its outstanding technical strength provides full-process professional services such as technical consulting commissioning and operational support for dozens of domestic and overseas gas- fired power stations. The Company has also undertaken training for technical personnel from dozens of power plants at home and abroad. With its high-quality training content and professional teaching team it has become a well-known professional talent training base in the domestic gas-fired power industry and established a good reputation and a professional brand image in the industry. (3) Professional technical level that keeps pace with the times. In recent years the Company has insisted on innovation-driven development and steadily promoted technological innovation. The Company holds multiple independent invention patents utility model patents and software copyrights and has co-drafted one national standard providing strong support for its high-quality development. During the reporting period the Company applied to the China National Intellectual Property Administration for 6 utility model patents and 5 software copyrights of which 2 utility model patents and 5 software copyrights were granted. The Company has obtained a total of 47 authorized patents (including 5 invention patents) and 13 software copyrights which has greatly enhanced its brand image and industry competitiveness. (4) Extensive experience in industrial exploration. The Company fully leverages its advantages to vigorously expand its integrated energy service business and continuously accumulated experience in the construction and operation of new energy industries such as electrochemical energy storage photovoltaics and charging piles. Through the construction and operation of the energy storage black- start project photovoltaic projects and the Zhaochi industrial and commercial energy storage project the construction and official operation of the Zhongshan independent energy storage power station and the development of integrated solar-storage-charging projects the Company has accumulated extensive experience in the construction commissioning operation and maintenance of new energy and energy storage projects and has cultivated a group of professional technical talents. Coupled with the talent pool and technical advantages from the traditional power industry the Company has secured ample technical and human resources to support its expansion into the integrated energy services sector laying a solid foundation for this strategic move. (5) Leading environmental protection standards. The Company's power generation units are all gas-fired using natural gas as fuel. The CO2 emissions in the flue gas are approximately 42% of those from coal-fired power plants providing strong support for the national "carbon peaking and carbon neutrality" goals. The nitrogen oxide emissions from each of the Company's units are within 15mg/m3 reaching the most advanced level in the world. 4. Main Business Analysis (1) General The year 2025 marks the final year of the national "14th Five-Year Plan" and is a crucial year for the Company to build on its past achievements and forge ahead into the future. Facing the dual challenges of accelerated energy transition and intensified market competition the Company has anchored its strategic position as an integrated energy service provider and steadily promoted the optimization of its business structure and the innovation of its development model. Throughout the year with projects as the driver the market as the guide and services as the support the Company has coordinated market expansion project construction and operation management. It has focused on core tracks such as gas turbine and new energy engineering services electricity sales and EPC general contracting continuously deepened the layout of its integrated energy service business and constantly cultivated new business growth points. The effectiveness of the strategic transformation has steadily become apparent; core competitiveness has continued to strengthen; and the scale and benefits of the integrated energy service business have improved in tandem. This has made a prominent contribution to the Company's overall development providing a substantial performance to conclude the "14th Five-Year Plan" successfully while also laying a solid foundation for a high-quality start to the "15th Five-Year Plan". The main work carried out by the Company during the reporting period is as follows: 152025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 1) Anchoring development goals with tangible results from strategic transformation. The Company fully accelerated its strategic transformation continuously improved its business layout actively built an integrated "investment construction operation management and maintenance" platform and made every effort to create a diversified and intelligent integrated energy service system thereby constantly strengthening its core competitive advantages. In terms of investment and M&A focusing on the strategic direction of becoming an integrated energy service provider the Company successfully acquired Sichuan Ruinan Electric Power Construction Engineering Co. Ltd. completing a key link in the "investment construction operation management and maintenance" chain and enhancing its power engineering construction capabilities. In terms of project expansion Shenzhen Nanshan Power Engineering Company delved deep into the gas turbine engineering and technical services field and steadily expanded into domestic and international markets. Leveraging the experience gained from the Golmud project it successfully won the bid for the operation and maintenance service project of the 2×450MW gas turbine combined cycle power station in Koh Kong Province Cambodia achieving a significant breakthrough in the overseas market. Shenzhen Nanshan Power Environmental Protection Company comprehensively enhanced its market expansion capabilities with focus on the new energy services track actively developed and reserved high-quality projects in operation and maintenance and solar-storage-charging and created a diversified portfolio of integrated energy services achieving continuous optimization of its business structure. In terms of engineering construction it built the first large-scale grid-side independent energy storage project in Zhongshan City with high quality and efficiency—the Zhongshan Independent Energy Storage Power Station. This project was officially put into commercial operation in June 2025 with its performance indicators ranking among the top of independent energy storage power stations in Guangdong Province and exceeding the design standards of the feasibility study becoming a benchmark for regional energy storage projects. Energy Technology Company won the bid for the EPC project of the 150MW/300MWh independent energy storage power station in Guzhen Town Zhongshan for RMB 223 million highlighting its core competitive advantage in power engineering construction. In terms of management operation and maintenance it continued to solidify the operation and maintenance management of the Zhaochi project the Golmud project and the Zhongshan independent energy storage project optimized the standardized systems for engineering and project management processes and formed a replicable operating mechanism and profit model comprehensively improving the standardization and efficiency of full-cycle project management. Leveraging its high-quality operation and maintenance service experience from the Zhongshan independent energy storage project Shenzhen Nanshan Power Environmental Protection Company successfully expanded into preventive testing and inspection services for vehicle-grid interconnection systems; by innovatively applying "energy storage + vehicle-grid interaction" technology it provided backup power services for the energy storage power stations during the opening ceremony in Guangzhou and the closing ceremony in Shenzhen for the 15th National Games. This initiative created a high-reliability green power supply case that received high recognition from the government and the power grid. 2) Deepening existing operations to solidify the fundamental business base. With the main focus on "Enhancing the quality of existing operations prioritizing efficiency" the Company comprehensively deepened its existing operations. By systematically enhancing the operational quality and efficiency of its existing assets the Company continuously strengthened its core business competitiveness laying a solid foundation for steady development. In terms of enhancing the operational capabilities of existing assets the Company comprehensively coordinated key aspects such as power production and operation fuel supply and cost control. Facing the deepening reform of the Guangdong power market the Company actively seized the opportunities presented by the policy adjustments for capacity pricing and variable cost compensation in Guangdong Province. Under the premise of strictly controlling transaction risks it has actively participated in market-based transactions such as spot electricity and ancillary services. At the same time with the responsibility of ensuring power supply as the bottom line the Company scientifically coordinated the matching of gas and electricity and dynamically optimized its power marketing strategies and fuel procurement plans achieving precise control of fuel costs and a steady increase in the marginal contribution of its power business. The annual on-grid electricity volume was 282 million kWh. Shenzhen Nanshan Power Environmental Protection Company actively expanded its value-added services signing electricity sales contracts through multi-party negotiations and cooperation with a total represented electricity volume of 40.76 million kWh. It also entered the green energy market and fully participated in green electricity and green certificate trading. It signed its first green electricity agency contract to provide customers with an integrated solution of "electricity purchase + green certificate" accelerating 162025 Annual Report of Shenzhen Nanshan Power Co. Ltd. the Company's transformation into an integrated energy service provider. In terms of revitalizing existing assets the Company made every effort to promote the listed transfer of the power generation unit equipment and related assets of Shenzhen Nanshan Power Zhongshan Company. During the reporting period it received the full transfer price installment interest and value-added tax from Fujian Hengjing Investment Co. Ltd. totaling RMB 72.2533 million. Concurrently it safely and steadily implemented the dismantling of the unit equipment and completed the land transfer of Plot B of Shenzhen Nanshan Power Zhongshan Company achieving a seamless connection between asset disposal and land revitalization. Server Company focused on the property leasing service business and deepened its synergistic cooperation with SEC. By optimizing leasing plans and improving property service quality it achieved an overall occupancy rate of 100% for the entrusted properties and increased rental income levels year-on-year effectively tapping the economic value of existing assets. 3) Improving systems and processes to build a strong risk prevention and control barrier. With governance modernization at its core the Company focused on system construction process optimization and compliance management and strengthened its risk prevention system from multiple dimensions to effectively enhance governance efficiency and risk resistance. First improving the corporate governance system to solidify the foundation for standardized operations. The Company strictly benchmarked against the latest laws regulations and regulatory policies and actively built a dynamic and adaptive institutional management mechanism.Throughout the year it completed the addition and revision of several core corporate governance rules and internal management systems including the Articles of Association the Rules of Procedure for the Shareholders' Meeting and the Rules of Procedure for the Board of Directors comprehensively covering all aspects of decision making execution and supervision. Concurrently it promoted the reform of the Board of Supervisors and optimized the allocation of supervisory functions to ensure that the governance structure and institutional system are aligned with regulatory requirements thereby providing a solid institutional guarantee for the Company's standardized operations. Second building a standardized process system to drive the upgrade of management efficiency. Taking process standardization as a key measure the Company fully established a process management system covering its entire business chain. By sorting out 16 main processes 101 functional processes and 210 business operation processes it formed a process network that is "horizontally extensive and vertically exhaustive" transformed excellent management experience into standardized operating norms and promoted the formation of a management ecosystem that is "transferable replicable and value-adding". effectively improving operational efficiency and decision-making response speed. Third deepening the construction of compliance and risk control to build a barrier for steady development. Focusing on building an integrated management system of "compliance + risk control + internal control" the Company solidified its compliance and risk control foundation. It completed the acceptance of its compliance management system improved the regular compliance training and dissemination mechanism and cultivated a company-wide awareness of compliance. It strengthened supervision and early warning and with focus on key areas such as investment construction and cooperation implemented rectifications from economic responsibility audits conducted final accounts audits for key projects and compliance checks on partners to weave a tight risk prevention and control network. It emphasized risk assessment and strengthened forward-looking analysis in market legal and financial areas in response to the risk characteristics of new businesses to enhance its risk identification and response capabilities. 4) Innovating systems and mechanisms with performance orientation to stimulate vitality. The Company anchored its high- quality development strategic goals taking market-oriented reform as a breakthrough and institutional and mechanism innovation as a core driver. Through systematic changes it stimulated the organization's internal motivation and operational vitality comprehensively enhancing overall operational efficiency. First deepening human resources reform to unleash the potential of the talent pool. The Company systematically promoted comprehensive reforms in the rank sequence salary system and performance assessment mechanism simplified the salary structure optimized the fixed-to-variable ratio and established dual promotion channels for both management and professional technology breaking the career development ceiling. It established an incentive orientation of "salary based on performance rank based on ability" breaking down rigid barriers and provided a stage for doers and rewards for contributors stimulating employees' creativity. Second optimizing the talent allocation mechanism to build a dynamic flow ecosystem. The Company established an internal talent flow mechanism smoothed channels for cross-departmental and cross-level mobility and promoted market-based talent circulation and cadre rotation forming a virtuous ecosystem of "putting the right people in the right 172025 Annual Report of Shenzhen Nanshan Power Co. Ltd. positions and maximizing their potential" and effectively revitalizing existing human resources. Third innovating diverse incentive models to activate value creation momentum. The Company innovated incentive models promoted a shift in value distribution towards the creation end and through a combination of differentiated incentives stimulated the enthusiasm of all employees for entrepreneurship and business development injecting strong momentum into business breakthroughs. Fourth implementing differentiated management and control to enhance synergistic development efficiency. Closely aligning with the actual operating conditions and marketization level of invested and acquired enterprises the Company scientifically designed management and control models to ensure their market-oriented vitality while meeting the requirements of standardized management achieving efficient resource synergy. Fifth strengthening financial support and empowerment to enhance value creation capabilities. The Company deepened the integration of business and finance and tapped the potential of information systems through digitalization to optimize accounting accuracy and report quality and simplify business processes. It conducted special research on finance and taxation aligned with policies to secure benefits and enhanced capital efficiency and the value of financial services providing solid financial guarantees and decision-making support for the implementation of the Company's strategy. 5) Consolidating safety responsibilities and building a new pattern of safety management. In 2025 the Company was in a critical development stage of expanding new business and cultivating new business formats. Facing potential risk points in new business and complex changes in the internal and external environment the Company always adhered to the concept of safe development improved its work safety assurance system fully consolidated primary responsibilities solidified the foundation of safety management and strengthened supervision of safety management throughout the entire process. It made every effort to maintain a safe and stable production and operation order and continuously maintained the "Five-Zero" safety goal building a solid safety line of defense for the Company's steady development. First improving the safety management system for new business. In light of the characteristics of new business the Company improved the work safety responsibility system clarifying safety responsibilities for each position and link. It systematically built a full-process safety management system covering technical services equipment management safety control and emergency response standardizing safety management processes and enhancing the professionalism and standardization of safety management. Second strengthening safety control for projects under construction. Focusing on key projects such as the equipment dismantling project of the Zhongshan unit and the Zhongshan Independent Energy Storage Power Station the Company closely monitored key areas critical links and weak points at construction sites increased the frequency and intensity of safety inspections refined control measures and promptly identified and rectified hidden dangers enhancing the safety risk prevention and control capabilities for projects under construction. Third optimizing assessment and safety culture construction. The Company improved the safety management assessment and evaluation system using assessments to compel the implementation of responsibilities. It solidly carried out activities such as the Year of Hidden Danger Investigation and Governance and the Work Safety Month systematically organized emergency drills strengthened the emergency response capabilities of all employees cultivated a strong safety culture and promoted the construction of a safety pattern with full participation full-process control and full coverage. Fourth strengthening external risk prevention and control. The Company proactively assessed safety hazards brought by the external environment scientifically formulated and strictly implemented safety risk prevention and control measures ensuring the normal operation of the power generation equipment at Nanshan Power Plant and the safe and stable operation of the power grid and making every effort to prevent safety accidents caused by external risks. 6) Adhering to the leadership of Party building to pool efforts for development. The Company adhered to leading high-quality development with high-quality Party building and fully integrated the Party's leadership into its governance practices. It thoroughly studied and implemented the guiding principles of the 20th CPC National Congress and all plenary sessions of the 20th CPC Central Committee conscientiously implemented the arrangements of the Fourth Plenary Session and solidly carried out study and education on the spirit of the Central Committee's Eight-Point Regulation. It actively built a "1+2+3+N" Party building matrix fully implemented a special action to improve the quality of Party building focused on reducing the burden on grassroots levels and promoted the deep integration and resonance of Party building with production and operation providing a strong political guarantee for the Company's reform and development. First deepening the Party's leadership and conduct improvement to solidify the foundation for development.Taking the study and education on the spirit of the Central Committee's Eight-Point Regulation as a key measure the Company 182025 Annual Report of Shenzhen Nanshan Power Co. Ltd. simultaneously advanced special work to rectify formalism and bureaucratism. Through methods such as research questionnaires interviews and the Chairman's direct-access mailbox it comprehensively identified and rectified problems and promoted the reduction of documents and meetings and the optimization of processes significantly enhancing work efficiency and organizational effectiveness and forging a strong consensus for development. Second strengthening the Party's political building and ideological guidance to steer the direction of development. The Company always placed political building at the forefront and strictly implemented the system of the Party Committee conducting preliminary research and discussion on major matters before decision-making efficiently convening Party committee meetings and strictly reviewing "Three Important and One Major" decision-making matters. It conscientiously implemented the "First Agenda" study and the theoretical study of the Party Committee's theoretical study central group. Through the mechanism of "extensive study in-depth research and solid implementation" it produced high-quality research reports providing a scientific basis for the Company's development decisions. Third promoting the deep integration of Party building and business operations to activate development momentum. The Company actively organized a series of "Party Building+" activities and strengthened exchanges and cooperation with fellow units business partners and upstream and downstream entities in the industrial chain to promote technological innovation and management improvement. At the same time through characteristic activities such as "Youth Study" and "Nanshan Power Plant Open Day" the Company gathered the strength for progress and cultivated its corporate culture injecting spiritual motivation and cultural support into its high-quality development.In 2025 the Company achieved an operating income of RMB 401681600 and a net profit attributable to shareholders of the listed company of RMB 161038200. The Company's operating performance continued to improve with profitability steadily increasing and basic earnings per share of RMB 0.2672. (2) Income and Cost 1) Component of business income Unit: RMB 2025 2024 Year-on-year Proportion in Proportion in increase or Amount Amount operating income operating income decrease Total operating 401681583.10100%442971955.85100%-9.32% income By industry Power industry 389841302.96 97.05% 437329918.38 98.73% -10.86% Others 11840280.14 2.95% 5642037.47 1.27% 109.86% Total 401681583.10 100.00% 442971955.85 100.00% -9.32% By product Power generation 279495457.00 69.58% -33.44% 419930286.7194.80% and sales Integrated energy 136569934.67 34.00% 246.78% 39382694.078.89% services Others 12488919.77 3.11% 5768308.02 1.30% 116.51% Consolidation -26872728.34 -6.69% -21.54% -22109332.95-4.99% elimination Total 401681583.10 100.00% 442971955.85 100.00% -9.32% By region Domestic 401681583.10 100.00% 442971955.85 100.00% -9.32% Total 401681583.10 100.00% 442971955.85 100.00% -9.32% By sale model Direct sales 401681583.10 100.00% 442971955.85 100.00% -9.32% Total 401681583.10 100.00% 442971955.85 100.00% -9.32% 192025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 2) Industry product region and sales model accounting for more than 10% of the Company's operating income or operating profit □Applicable □Not applicableThe Company shall comply with the disclosure requirements for the power supply industry as set out in the “Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure” Unit: RMB Year-on-year Year-on-year Year-on-year increase or Operating increase or increase or Operating costs Gross margin decrease in revenue decrease in decrease in operating operating costs gross margin revenue By industry Power industry 389841302.96 309891815.62 20.51% -10.86% -25.19% 15.22% Others 11840280.14 5347883.32 54.83% 109.86% 336.97% -23.48% Total 401681583.10 315239698.94 21.52% -9.32% -24.12% 15.31% By product Power generation 279495457.00252124628.839.79%-33.44%-37.78%6.28% and sales Integrated energy 136569934.6782619474.3139.50%246.78%189.58%11.95% services Others 12488919.77 5392870.61 56.82% 116.51% 340.65% -21.96% Consolidation -26872728.34-24897274.81-21.54%-27.67% elimination Total 401681583.10 315239698.94 21.52% -9.32% -24.12% 15.31% By region Domestic 401681583.10 315239698.94 21.52% -9.32% -24.12% 15.31% Total 401681583.10 315239698.94 21.52% -9.32% -24.12% 15.31% By sale model Direct sales 401681583.10 315239698.94 21.52% -9.32% -24.12% 15.31% Total 401681583.10 315239698.94 21.52% -9.32% -24.12% 15.31% Reasons for significant changes in relevant financial indicators □Applicable □Not applicable 1) During the reporting period income from power generation and sales decreased year-on-year mainly because the Company continuously optimized the spot market trading strategy for electricity from Nanshan Power Plant closely tracked the trend of nodal electricity prices in the spot market and with the goal of maximizing the comprehensive income from its power business dynamically adjusted its spot clearing strategy resulting in reduced actual power generation and a year-on-year decrease in income from power generation and sales. 2) During the reporting period income from integrated energy services increased year-on-year mainly due to the continuous advancement and significant achievements of the Company's strategic transformation leading to the rapid development of the integrated energy services business. Among them the independent energy storage project of Shenzhen Nanshan Power Xiwan Company was officially put into commercial operation and achieved profitability driving a substantial increase in the income and marginal contribution of the integrated energy services business which has become an important growth engine for the Company. 3) During the reporting period other business income increased year-on-year mainly because the subsidiary Server Company focused on the property leasing and management service business of SEC and its market expansion operational management and profitability continued to improve leading to a year-on-year increase in income from property leasing and management services. 202025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 3) Whether the Company's physical sales income is greater than the income from labor services □Yes□ No YoY Industry category Item Unit 2025 2024 increase/decrease Sales volume 100 million KWH 2.82 5.10 -44.71% Power industry Production 100 million KWH 2.84 5.12 -44.53% Inventory 100 million KWH 0.00 0.00 0.00% Explanation for a year-on –year change of over 30% □Applicable □Not applicable During the reporting period the sales and production volume of the power generation and sales business decreased year-on-year mainly due to the phased cost pressure faced by the Company's power generation business in recent years influenced by multiple external factors such as rising natural gas prices. To actively respond to market changes control operating costs and ensure comprehensive business income the Company continuously optimized the spot market trading strategy for electricity from Nanshan Power Plant accurately grasped nodal electricity prices and with the goal of maximizing the comprehensive income from the power business dynamically adjusted its spot clearing strategy resulting in reduced actual power generation and a year-on-year decrease in the sales and production volume of the power generation and sales business. 4) Performance of major sales contracts and major procurement contracts signed by the Company as of the reporting period □Applicable □Not applicable 5) Composition of operating costs Industry category Unit: RMB 20252024 Proportion Proportion in Year-on-year Industry Item in total total increase or category Amount Amount operating operating decrease costs costs Power industry Fuel 185180604.72 58.74% 334421830.98 80.50% -44.63% Employee Power industry 25373240.69 8.05% 24415894.99 5.88% 3.92% remuneration Manufacturing Power industry 58722420.92 18.63% 41386147.69 9.96% 41.89% expenses Project Power industry 35020350.62 11.11% 11628150.97 2.80% 201.17% subcontracting Project Power industry operation and 5595198.67 1.77% 2370857.36 0.57% 136.00% travel expenses Other non-main Others 5347883.32 1.70% 1223850.40 0.29% 336.97% business Total 315239698.94 100.00% 415446732.39 100.00% -24.12% 212025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 6) Whether there was any change in the consolidation scope during the reporting period □Yes□ No 1. On December 16 2024 the Company signed a Share Transfer Agreement with Zhuozhi Fund to acquire 5.6% shares in Sunpower Tech (Jiangsu) Group Co. Ltd. and transferred the acquired shares to its wholly-owned subsidiary New Power Company.In June 2025 Zhuozhi Fund completed its liquidation and business deregistration procedures. In accordance with the Accounting Standards for Business Enterprises from the date of Zhuozhi Fund's business deregistration the entity is no longer included in the scope of the Company's consolidated financial statements. 2. As approved by the eighth ad hoc meeting of the tenth Board of Directors and the fifth ad hoc meeting of the tenth Board of Supervisors held in May 2025 the Company acquired 75% equity (corresponding to a registered capital of RMB 56.25 million) in Sichuan Ruinan Electric Power Construction Engineering Co. Ltd. (hereinafter referred to as "Sichuan Ruinan") from Shenzhen Clou Electronics Co. Ltd. for a consideration of RMB 18337500. The equity transfer price was paid by assuming and repaying the debt of RMB 18337500 owed by Shenzhen Clou Electronics Co. Ltd. to Sichuan Ruinan. In July 2025 Sichuan Ruinan was renamed Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. and was included in the scope of the Company's consolidated financial statements.According to the provisions of Paragraph 6.1 of Article 6 of the Equity Transfer Agreement and in conjunction with the Special Audit Report on the Operating Results of the 75% Equity Transaction Project of Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. during the Transition Period (ZTZ Zi [2025] No. 441C019665) issued by Grant Thornton China (Special General Partnership) Shenzhen Branch which was jointly recognized by the Company and Shenzhen Clou Electronics Co. Ltd. Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. incurred a loss of RMB 2396286.64 from the base date to the closing date.Accordingly Shenzhen Clou Electronics Co. Ltd. should pay the Company compensation of RMB 1797214.98. On September 29 2025 the Company received the full amount of this transition period compensation. After deducting the aforementioned transition period compensation the actual cost of this equity investment was RMB 16540300. 7) Information about significant changes or adjustments in the Company's business products or services during the reporting period □Applicable □Not applicable 8) Main sales customers and suppliers Main sales customers Total sales amount of top five customers (RMB) 375596720.70 Ratio of the total sales amount of the top five customers to total annual sales 93.51% Ratio of sales to related parties in the annual total sales of the top five customers 1.53% Information of the Company's top 5 customers Proportion in the total No Customer name Sales(RMB) annual sales amount 1 Shenzhen Power Supply Bureau Co. Ltd. 279762843.78 69.65% 2 Guangdong Power Grid Co. Ltd. 59717844.45 14.87% 3 PetroChina Company Limited Qinghai Oilfield Branch 16487641.53 4.10% 4 SPIC (Zhongshan) Smart Energy Co. Ltd. 13463211.01 3.35% 5 Shenzhen Energy Corporation 6165179.93 1.53% Total 375596720.70 93.51% 222025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Other information on major customers □Applicable □Not applicable Shenzhen Energy Corporation is a related legal entity of the Company.The Company's main suppliers Total purchase amount of top five suppliers (RMB) 385060182.69 Ratio of the total purchase amount of the top five suppliers to the total annual 83.83% purchase amount Ratio of purchase amount of related parties among the top five suppliers to the 0.00% total annual purchase amount Information on the Company's top 5 suppliers Purchase amount Proportion in the total annual No Supplier name (RMB) purchase amount 1 Shenzhen Gas Group Co. Ltd. 185180604.72 40.31% China Southern Power Grid Power Technology 2142391548.9931.00% Co. Ltd.CRCC Harbour & Channel Engineering Bureau 336841734.808.02% Group Co. Ltd.Tianjin Anqiju Construction Technology Co. 412478807.342.72% Ltd.Shenzhen Zhongshenli Development 58167486.841.78% Technology Co. Ltd Total 385060182.69 83.83% Other information on major suppliers □Applicable □Not applicable During the reporting period the Company's trade business income accounted for more than 10% of its operating income □Applicable □Not applicable (3) Expenses Unit: RMB Year-on-year Description of significant 20252024 increase or decrease changes Sales expenses 3222722.58 3155604.58 2.13% Management expenses 88440650.34 95507099.03 -7.40% Mainly due to the Company's successive recovery of funds from asset revitalization in recent years which led to an increase in the net balance of cash and cash equivalents Financial expenses 3478404.34 6815765.10 -48.97% compared to the same period last year and improvement of its refined management of fund liquidity resulting in a year-on- year decrease in financial expenses.R&D expenses 17061249.79 21341778.27 -20.06% Mainly due to a decrease in 232025 Annual Report of Shenzhen Nanshan Power Co. Ltd. power generation and a reduction in the number of the Company's ongoing research and development projects during the period resulting in a year-on-year decrease in R&D expenses. (4) R&D Expenditure □Applicable □Not applicable Expected impact on the Name of main R&D Project purpose Project progress Goal to be achieved future development of project the Company Through research and Improving the development ensure equipment that the front shaft seal performance and Completing the of the rotor is not system structure structural optimization Research and affected by thermal enhancing the of the steam turbine development of a stress thereby equipment safety and gland seal and using steam turbine shaft seal preventing fatigue Completed reducing costs to new technologies to heater device based on cracks ensuring increase the enhance the safety and reliable operation equipment safety technological content economic benefits of while also improving and core the unit equipment.unit efficiency and competitiveness of the reducing equipment Company's products operating costs. and services.Through research and Optimizing and Completing the development improving equipment performance upgrade optimizing the performance and and update of the generator protection enhancing the R&D of the intelligent generator protection device for the 9E gas operational safety of protection device for device for the 9E gas turbine unit enhancing Completed equipment to increase the 9E gas turbine turbine unit and using equipment the technological generators new technologies to performance and content and core enhance the safety improving the competitiveness of the performance of the equipment operational Company's products unit.safety. and services.Improving equipment Optimizing the performance and Conducting research excitation carbon brush enhancing the and development on system for steam operational reliability R&D of the excitation the excitation carbon turbine generators and of the steam turbine carbon brush system brush system for steam effectively using new generator excitation for combined-cycle turbine generators to Completed data parameters to system to increase the steam turbine reduce the equipment enhance technological content generators failure rate and comprehensive and core improving the performance and to competitiveness of the operational reliability. reduce the equipment Company's products failure rate.and services.Through research and Optimizing equipment Developing new design R&D of the automatic development design and use technologies and control-based optimizing the use of enhancing the improving the emergency trip system Completed the emergency trip performance of the performance and safety (ETS) for steam system (ETS) for steam steam turbine ET of unit equipment to turbines turbines and protection device and increase the 242025 Annual Report of Shenzhen Nanshan Power Co. Ltd. eliminating safety improving the technological content hazards and risks in operational safety of and core steam turbine ET equipment. competitiveness of the protection to improve Company's products the operational safety and services.of equipment.Conducting research Improving the safety of Completing the and development on unit production automatic control of the automatic lighting operation and the boiler lighting control system for maintenance personnel R&D of an automatic system reducing boilers to achieve light- and saving costs to control system for manual operations and sensitive automatic Completed increase the power plant boiler energy waste while control save operation technological content lighting ensuring the safety of and maintenance costs and core O&M personnel and and ensure the safety of competitiveness of the lowering energy O&M personnel during Company's products consumption.night inspections. and services.Making researches on the technological Conducting research innovation and and development on Completing the application using new the automatic control innovative upgrade of technologies to reduce R&D of a new-type synchronization system the automatic control operational hazards and automatic control for gas turbines to synchronization system improving equipment Completed synchronization system eliminate potential for gas turbines and performance to for 9E gas turbines hazards and risks in the ensuring the safe increase the equipment and improve operation of unit technological content the operational equipment. and core reliability of the unit. competitiveness of the Company's products and services.R&D personnel of the Company 2025 2024 Change ratio Number of R&D personnel 72 86 -16.28% Proportion of R&D personnel 23.61% 29.45% -5.84% Educational structure of R&D personnel Bachelor 43 52 -17.31% Master 2 2 0.00% Others 27 32 -15.63% Age composition of R&D personnel Under 30 years old 13 16 -18.75% 30-40 years old 8 10 -20.00% Over 40 years old 51 60 -15.00% R&D expenditure of the Company 2025 2024 Change ratio R&D expenditure (RMB) 17061249.79 21341778.27 -20.06% Proportion of R&D expenditure in 4.25%4.82%-0.57% operation income Amount of capitalized R&D expenditure 0.000.000.00% (RMB) Proportion of capitalized R&D expenditure 0.00% 0.00% 0.00% 252025 Annual Report of Shenzhen Nanshan Power Co. Ltd. in total R&D expenditure Reasons and influence of significant changes in R&D personnel composition □Applicable □Not applicable Reasons for the significant change in the proportion of total R&D expenditure to operating income compared with the previous year □Applicable □Not applicable Reasons for the significant change of capitalization rate of R&D expenditure and its rationality explanation □Applicable □Not applicable (5) Cash flows Unit: RMB Year-on-year increase or Item 2025 2024 decrease Sub-total of cash inflows from operating activities 411912869.49 552472905.42 -25.44% Sub-total of cash outflows from operating activities 428714391.34 590108671.47 -27.35% Net cash flow from operating activities -16801521.85 -37635766.05 55.36% Sub-total of cash inflows from investing activities 107107203.63 592454642.68 -81.92% Sub-total of cash outflows from investing activities 493742230.15 292298619.89 68.92% Net cash flow from investing activities -386635026.52 300156022.79 -228.81% Sub-total of cash inflows from financing activities 344393748.85 484026209.56 -28.85% Sub-total of cash outflows from financing activities 278631438.80 586252718.34 -52.47% Net cash flow from financing activities 65762310.05 -102226508.78 164.33% Net increase in cash and cash equivalents -337811513.38 160332202.10 -310.69% Notes to reasons for the year-on-year change of the relevant data □Applicable □Not applicable 1) During the reporting period the cash inflows from operating activities decreased by 25.44% year-on-year. This was mainly because Nanshan Power Plant fully leveraged its advantages in refined operational management and based on the nodal electricity prices in the spot power market dynamically adjusted its spot clearing strategy with the goal of maximizing the comprehensive benefits of its power business. This led to reduced actual power generation resulting in a year-on-year decrease in the revenue from power generation and sales and consequently a year-on-year decrease in cash inflows from operating activities. Meanwhile the Company accelerated the layout of its integrated energy services business. The independent energy storage project of Shenzhen Nanshan Power Xiwan Company was successfully put into operation during this period achieving rapid release of production capacity and driving a significant increase in the revenue and marginal contribution from the integrated energy services business which partially offset the impact of the decline in the revenue from the traditional power sales business. 2) During the reporting period the cash outflows from operating activities decreased by 27.35% year-on-year mainly due to the following reasons: firstly the Company actively adapted to the adjustments in the capacity electricity price and variable cost compensation policies in Guangdong Province continuously optimizing the spot market trading strategy for Nanshan Power Plant and effectively controlling the costs of the power sales business; and secondly the Company has always adhered to the concept of lean management implementing strict budgetary control and process optimization for all its operating expenses continuously improving overall operational efficiency and reasonably compressing non-essential expenditures. The combined effect of these factors resulted in a year-on-year decrease in the cash outflows from operating activities for the current period. 3) During the reporting period the net cash flow from operating activities increased by 55.36% year-on-year mainly due to the following reasons: firstly the Company accelerated the layout of its integrated energy services business as the independent energy 262025 Annual Report of Shenzhen Nanshan Power Co. Ltd. storage project of Shennan Power Xiwan Company was successfully put into operation during the current period achieving rapid release of production capacity and driving a significant increase in revenue and marginal contribution from the integrated energy services business; and secondly the Company actively adapted to the adjustments in the capacity electricity price and variable cost compensation policies in Guangdong Province continuously optimizing the spot market trading strategy for Nanshan Power Plant and effectively controlling the costs of the power sales business which led to a decrease in the cash outflows from operating activities. The combined effect of these factors resulted in a year-on-year increase in the net cash flow from operating activities for the current period. 4) During the reporting period the cash inflows from investing activities decreased by 81.92% year-on-year mainly due to the following reasons: firstly the Company achieved significant results in revitalizing its existing assets and in the same period of the previous year Xiefu Company completed the equity transfer of Huidong Xiefu and received the relevant payments; and secondly the Company continuously optimized its fund management strategy and in the same period of the previous year it redeemed financial products such as structured deposits and large-denomination certificates of deposit which generated large cash inflows from investing activities. The combined effect of these factors resulted in a year-on-year decrease in cash inflows from investing activities for the period. 5) During the reporting period the cash outflows from investing activities increased by 68.92% year-on-year mainly due to the following reasons: firstly the Company actively promoted the construction of the independent energy storage project of Shennan Power Xiwan Company which led to an increase in cash payments for equipment procurement and engineering works during the current period; secondly the Company strengthened its fund management to improve the efficiency of fund utilization resulting in an increase in structured deposits deposited in commercial banks from existing monetary funds in the current period which led to a year-on-year increase in cash outflows from investing activities. 6) During the reporting period the net cash flow from investing activities decreased by 228.81% year-on-year mainly due to a decrease in the cash inflows from investing activities on the one hand and an increase in the cash outflows from investing activities on the other as detailed in (4) and (5) respectively. 7) During the reporting period the cash inflows from financing activities decreased by 28.85% year-on-year mainly due to a year-on- year decline in the scale of new financing which resulted in a decrease in cash inflows from financing activities. 8) During the reporting period the cash outflows from financing activities decreased by 52.47% year-on-year mainly due to a decrease in cash paid for debt repayment during the period which resulted in a year-on-year decrease in cash outflows from financing activities. 9) During the reporting period the net cash flow from financing activities increased by 164.33% year-on-year. This was mainly because the Company optimized its asset-liability structure which led to a reduction in the financing scale and a year-on-year decrease in cash paid for debt repayment resulting in a year-on-year increase in the net cash flow from financing activities. 10) During the reporting period the net increase in cash and cash equivalents decreased by 310.69% year-on-year mainly due to a year-on-year decrease in the net cash flow from investing activities which affected the net increase in cash and cash equivalents.Reasons of major difference between the net cash flow from operating activities during the reporting period and net profit of the Company of 2025 □Applicable □Not applicable During the reporting period there was a significant difference between the net cash flow from operating activities of RMB -16801500 and the net profit for the current year of RMB 255202700. This was mainly due to the combined impact of gains on asset disposal investment income asset impairment losses credit impairment losses amortization of deferred income changes in operating receivables and payables non-cash expenses such as depreciation and amortization and financial expenses. Among them the main items include gains on asset disposal of RMB 284413100 investment income of RMB 28835300 asset impairment losses of RMB 26366300 and credit impairment losses of RMB 4791900. All the above items are included in the net profit for the current year but do not affect the net cash flow from operating activities. 272025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 5. Analysis of Non-core Business □Applicable □Not applicable Unit: RMB Proportion in Amount Explanation of causes Sustainability total profit This was mainly due to the investment income from structured deposits held by the The investment income Company dividend distributions recognized from received from other equity Investment income 28835338.95 10.83% associates accounted instrument investments held for using the equity during the period and investment method is sustainable.income recognized from associates accounted for using the equity method.Gains and losses on 0.00 0.00% No changes in fair value This was mainly due to the provision for inventory write- Impairment of assets -26366298.90 -9.90% down made for some maintenance No spare parts that were expected to become idle in 2025.Mainly due to the completion of the land reservation and transfer of Parcel B by the subsidiary Gains from disposal of Shenzhen Nanshan Power 284413055.16 106.84% No assets Zhongshan Company in the current year with the corresponding recognition of gains or losses on asset disposal.Non-operation income 844799.91 0.32% No Non-operating expenses 2003725.51 0.75% No 6. Analysis of Assets and Liabilities (1) Assets causing significant change Unit: RMB End of 2025 Beginning of 2025 Proportion Proportion Proportion Notes to the Item Amount in total Amount in total increase/decrease significant change assets assets This was mainly due to two reasons: Monetary firstly the Company 141590339.046.12%478979221.6623.80%-17.68% funds strengthened its refined fund management to 282025 Annual Report of Shenzhen Nanshan Power Co. Ltd. improve the efficiency of fund utilization resulting in an increase in structured deposits deposited in commercial banks from existing monetary funds; secondly the Company continued to optimize its asset- liability structure and repaid short-term borrowings that became due during the current period leading to a corresponding decrease in cash and cash equivalents.This was mainly due to the increase in receivables from the integrated energy services business as Account the independent 109831397.294.75%67817025.913.37%1.38% receivable energy storage project of Shennan Power Xiwan Company was put into operation during the current period.Advances to 11052982.800.48%19062352.040.95%-0.47% suppliers This was mainly due to the increase in receivables for land reservation and Other 361729062.93 15.63% 131831575.62 6.55% 9.08% acquisition receivables compensation as Shenzhen Nanshan Power Zhongshan Company completed 292025 Annual Report of Shenzhen Nanshan Power Co. Ltd. the land reservation acquisition and transfer confirmation of Parcel B during the current period.This was mainly due to the provision for inventory write- down made for some maintenance spare parts that were Inventories 37972909.48 1.64% 80234374.79 3.99% -2.35% expected to become idle during the current period resulting in a corresponding decrease in inventories.This was mainly due to an increase in progress payments receivable and undue Contract assets 21441671.72 0.93% 95580.68 0.00% 0.93% retention money for integrated energy service projects during the current period.This was mainly due to the public transfer of generator set equipment and related assets after Shenzhen Nanshan Power Zhongshan Company completed Assets held for 0.00 0.00% 24582784.59 1.22% -1.22% the land reservation sale and acquisition and the shutdown and retirement of the units and the completion of the land reservation acquisition and transfer confirmation 302025 Annual Report of Shenzhen Nanshan Power Co. Ltd. for Parcel B resulting in a decrease in the assets held for sale.This was mainly due to the reclassification of some external investments which were originally presented as other equity instrument investments but over Long-term which the Company equity 196827515.83 8.51% 90587521.44 4.50% 4.01% has significant investments influence to long- term equity investments for accounting purposes during the current period resulting in an increase in the long-term equity investments.Investment 1331453.080.06%1498009.840.07%-0.01% properties Fixed assets 544902436.89 23.55% 451203790.97 22.42% 1.13% Construction 3113338.750.13%6983713.850.35%-0.22% in progress Right-of-use 28785337.191.24%6160020.430.31%0.93% assets Intangible 2041770.360.09%1349731.810.07%0.02% assets This was mainly due to the Company's repayment of short- term borrowings that Short-term 172094604.45 7.44% 268615009.19 13.35% -5.91% became due during borrowings the current period resulting in a decrease in short- term borrowings.Accounts This was mainly due 42661594.091.84%14022157.610.70%1.14% payable to the completion of 312025 Annual Report of Shenzhen Nanshan Power Co. Ltd. the construction of the independent energy storage project of Shennan Power Xiwan Company and its transfer to fixed assets during the current period resulting in an increase in payables for project works and equipment.Contract 130796.460.01%50000.000.00%0.01% liabilities Employee compensation 24759553.78 1.07% 16052879.47 0.80% 0.27% payable Taxes and surcharges 8531798.19 0.37% 14348908.04 0.71% -0.34% payable Other payables 33323386.05 1.44% 15685234.29 0.78% 0.66% This was mainly due to the completion of the land reservation acquisition and transfer confirmation of Parcel B by Shenzhen Nanshan Power Zhongshan Other current 2425298.89 0.10% 107922984.82 5.36% -5.26% Company during the liabilities current period. The compensation received for part of Parcel B was transferred to other receivables resulting in a decrease in other current liabilities.This was mainly due Long-term to the construction of 168421492.317.28%0.000.00%7.28% borrowings the independent energy storage 322025 Annual Report of Shenzhen Nanshan Power Co. Ltd. project of Shennan Power Xiwan Company for which new special-purpose loans for fixed assets were added during the current period.Lease 24668020.161.07%2125910.180.11%0.96% liabilities Estimated 364945.000.02%0.000.00%0.02% liabilities This was mainly due to two reasons: firstly the Company's structured deposits in commercial banks increased; secondly private equity funds originally presented as other equity Financial instrument assets held for 341000000.00 14.74% 0.00 0.00% 14.74% investments were trading reclassified to financial assets at fair value through profit or loss for accounting based on their contractual cash flow characteristics resulting in an increase in financial assets held for trading.This was mainly due to the completion of the land reservation acquisition and Other current transfer confirmation 266262387.1211.51%285528539.2214.19%-2.68% assets of Parcel B by Shenzhen Nanshan Power Zhongshan Company during the current period. The 332025 Annual Report of Shenzhen Nanshan Power Co. Ltd. employee compensation and relocation expenses related to the land reservation and acquisition were transferred to gains on asset disposal resulting in a decrease in other current assets.This was mainly due to the reclassification of private equity investment funds to long-term equity investments and Investment in financial assets at other equity 234179057.20 10.12% 354798054.57 17.63% -7.51% fair value through instruments profit or loss for accounting during the current period resulting in a decrease in other equity instruments.Overseas assets account for a relatively high proportion □Applicable □Not applicable (2) Asset and liabilities measured at fair value □Applicable □Not applicable Unit: RMB Profit or Provision loss from Cumulative for Purchase Sales changes in changes in Beginning impairment amount of amount the Other Ending Item fair value fair value balance of the the current current changes balance of the included in current period period current equity period period Financial assets 1. Financial assets held for trading 13340000 10430000 50000000. 34100000 (excluding 00.00 00.00 00 0.00 derivative financial 342025 Annual Report of Shenzhen Nanshan Power Co. Ltd. assets) 2. Derivative financial assets 3. Investment in other creditor's rights 4. Investment - 3547980529381002.29381002.7346000.023417905 in other 14265400 4.57636307.20 equity 0.00 instruments 5. Other non-current financial assets Subtotal of - 3547980529381002.29381002.133400001050346057517905 financial 92654000. 4.57636300.0000.007.20 assets 00 Investment properties Productive biological assets Others - 3547980529381002.29381002.133400001050346057517905 Total 92654000. 4.57636300.0000.007.20 00 Financial 0.000.00 liabilities Other changes For details of other changes and the relevant explanations please refer to Note 2 under Item V.9 Investment in other equity instruments in the notes to the consolidated financial statements.Any significant change in the measurement of principal assets in the reporting period □Yes No□ (3) Restrictions of asset rights as of the end of the reporting period Balance at the end of the previous year Item Ending balance (RMB) (RMB) Guarantee deposit 8334730.76 7912100.00 Total 8334730.76 7912100.00 352025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 7. Analysis of Investments (1) General information □Applicable □Not applicable Investment amount during the reporting Investment amount in the same period of Change range period (RMB) last year (RMB) 18490285.02101000000.00-82% (2) Significant equity investments acquired in 2025 □Applicable □Not applicable Unit: RMB Profi t or Progr loss Litig ess of Date Inves Exp atio Name Inves Invest Sour as of inves of Disclos Main Share tmen Pro ecte n of tment ment ces Partne the tmen discl ure busine holdin t duct d invo invest meth amoun of r balan t in osur index ss g ratio perio type earn lved ee od t funds ce the e (if (if any) d ings or sheet curre any) not date nt perio d Mainl The y equit engag y ed in trans the fer EPC agree busine ment Sichu ss of was an new signe Ruina Shenz energ d on n Acqu hen y Lim May May Electr isitio Clou Annou photo ited 21 17 ic n of Electr nceme voltai Acqu 16540 liabi 2025 2025 Power 75.00 equit onics Long nt No.: c isitio 285.0 lity and 0.00 0.00 No and Const % y by Co. -term 2025- power n 2 com the July ructio assu Ltd. 021 station pan busin 15 n ming and 029 s y ess 2025 Engin debt Fan wind regist eering Peng farms ratio Co.and n Ltd.energ chan y ge storag was e comp power leted station in projec July 362025 Annual Report of Shenzhen Nanshan Power Co. Ltd. ts 2025.Shenz hen Zhong ke Incub ation Equity Invest ment Fund Mana gemen t Co.Ltd.Shenz hen Shenz Yuanz hen hi Yuanz Engag Energ hi ed in y Zhon equity Storag gkai invest e Energ ment Privat An y invest e inves Stora ment Equity tmen ge manag Fund t of Techn ement Newl Mana Annou RMB Octo ology asset y 26000 gemen nceme Self Long Fun 1.95 ber Innov manag estab 000.0 6.50% t Co. 0.00 0.00 No nt No.: funds -term ds milli 25 ation ement lishe 0 Ltd. 2024- on 2024 Privat and d Shenz 060 has e other hen been Equit activit New- comp y ies type leted.Fund with Energ Partne privat y rship e Storag (Limit equity e ed funds Indust Partne ry rship) Equity Fund Partne rship (Limit ed Partne rship) China Scienc e and Techn ology Devel opme nt Co. 372025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Ltd.etc. 42540 Total -- -- 285.0 -- -- -- -- -- -- 0.00 0.00 -- -- -- 2 (3) Significant non-equity investments during the reporting period □Applicable □Not applicable (4) Financial-asset investments 1) Securities investment □Applicable □Not applicable The Company had no securities investment in 2025. 2) Derivatives investment □Applicable □Not applicable The Company had no investment in derivatives in the reporting period. 8. Sales of Significant Assets and Equities (1) Sales of significant assets □Applicable □Not applicable Net Whet profit her it contri is buted imple by ment Ratio Relat the Whet ed as of net ionsh asset her Whet plann profit ip to the have her ed Impa contri with Trans listed all all and ct of buted Whet the actio comp Prici the the as the by her it count n any ng prope claim sched sale asset is erpart Coun Date price from princi rty s and uled. Discl Discl Asset on sales relate y terpar of s the ples rights debts If it osure osure s sold the to the d (appli ty sale (RM begin of of the invol is not date index Com listed trans cable B ning asset assets ved imple pany comp actio to 1000 of the sale invol have ment (Note any ns relate 0) curre ved been ed as 3) in the d nt been transf plann total trans perio transf erred ed net actio d to erred the profit ns) the reaso date ns of and sale the (RM meas 382025 Annual Report of Shenzhen Nanshan Power Co. Ltd. B ures 1000 the 0) Com pany has taken shoul d be expla ined.This is cond The ucive state- to owne revita d lizing land the use Com rights pany' of s three existi parce ng ls of assets Deter land Nove mine of impr mber d Shen oving 08 based zhen the Dece Mana on Anno Nans Com mber geme the unce han pany' 15 nt asset ment Powe s Bein Dece Com appra No.: r opera g mber mitte Dece isal 2023- Zhon ting Not imple 20 e of mber 5844 2272 85.38 result 048 gshan cash No appli No No ment 2023; Zhon 12 5.35 9.85 % s and 052 Com flow cable ed as April gshan 2023 throu 053; pany allevi sched 13 Cuih gh 2024- locat ating uled Nove eng negot 027 ed in the mber New iation 062 Heng Com 06 Area betw 076.men pany' Dece een Indus s mber both trial opera 28 partie Zone ting 2024 s.Nanl press ang ure Street supp ortin Cuih g the eng Com New pany Area to Zhon better gshan focus City on transf ormat ion 392025 Annual Report of Shenzhen Nanshan Power Co. Ltd. and devel opme nt and is in line with the Com pany' s strate gic devel opme nt plan.This is cond ucive to ensur ing Trans the ferre smoo d th throu Gene comp gh rator letion publi sets of the c and land listin their reser g on auxili vatio the Anno Dece Fujia ary n and Shen unce mber n equip acqui zhen ment 07 Heng ment sition Unite No.: Marc Not Com 2024; jing of 6372 work 0.26 d Positi Positi 2024- h 04 70.14 No appli plete Marc Inves Shen .69 of % Equit ons ons 070 2025 cable d h 06 tment zhen Shen y 2025- June Co. Nans zhen Exch 002 04 Ltd. han Nans ange 2025- 2025 Powe han with 024.r Powe the Zhon r asset gshan Zhon appra Com gshan isal pany Com value pany as the revita reser lizing ve existi price.ng assets and assist ing the 402025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Com pany' s transf ormat ion and devel opme nt. (2) Sales of significant equities □Applicable □Not applicable 9. Analysis of the Main Share Holding Companies and Share Participating Companies □Applicable □Not applicable Main subsidiaries and affiliated companies with over 10% net profit influence to the Company Unit: RMB 10000 Company Registered Total Net Operating Operating Company name Main business Net profit type capital assets assets income profit Engaged in technical consulting services for the construction of gas-steam combined-cycle power plants (stations) and undertaking Shenzhen maintenance and Nanshan Power overhaul of Gas Turbine Subsidiary operating 15000 12041.56 6879.13 4166.15 -1542.18 -1557.45 Engineering equipment for gas- Technology Co.steam combined- Ltd.cycle power plants (stations). Import and export of goods and technology (excluding distribution and state-monopolized commodities). 412025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Gas turbine power generation waste heat power generation power supply and heat supply (excluding heat supply pipe networks) leasing of terminals oil depots (excluding Shenzhen refined oil Nanshan Power - Subsidiary products 74680 66262.15 6313.73 33667.14 32607.91 (Zhongshan) 9004.10 hazardous Power Co. Ltd.chemicals and flammable and explosive materials) and power equipment and facilities; leasing of land use rights; and leasing of non-residential real estate.Situation of acquiring and disposing subsidiary during the reporting period □Applicable □Not applicable Methods of acquiring and disposing Impact on overall production operations Company name subsidiary during the reporting period and performance This is conducive to streamlining management levels and optimizing the Zhuhai Hengqin Zhuozhi Investment Liquidation and deregistration on June Company's external investment structure Partnership (Limited Partnership) 30 2025 and does not have a significant impact on the Company's performance.This helps the Company achieve full coverage of engineering capabilities in both traditional power generation and new energy fields strengthens its full- Acquired by assuming debt and included chain service system of "investment Shenzhen Nanshan Power Energy in the scope of the Company's construction operation management Technology (Sichuan) Co. Ltd. consolidated financial statements from and maintenance" and further enhances July 2025 integrated energy service capabilities.From July to December 2025 it achieved a cumulative operating revenue of RMB 25265800 and a net profit of RMB 546200. Notes to main holding and shareholding companies Shenzhen Nanshan Power Zhongshan Company: On March 4 2025 Shenzhen Nanshan Power Zhongshan Company signed the Physical Asset Transaction Contract with Fujian Hengjing Investment Co. Ltd. The transfer price for the two sets of generator units 422025 Annual Report of Shenzhen Nanshan Power Co. Ltd. and related assets was RMB 63726928.75 (excluding tax). Fujian Hengjing Investment Co. Ltd. completed the payment of the entire transfer price interest and value-added tax by May 30 2025 through installment payments successfully completing the public transfer of Shenzhen Nanshan Power Zhongshan Company's generator units. In terms of land reservation and acquisition during the reporting period Shenzhen Nanshan Power Zhongshan Company's Parcel B was handed over for land reservation and acquisition and a corresponding gain or loss on asset disposal of approximately RMB 284123200 was recognized. 10. Structured Entities Controlled by the Company □Applicable □Not applicable 11. Outlook on the Company's Future Development (1) Analysis of the Company's business situation in 2026 In 2026 the Company's main power business will continue to face a complex operating environment. First the pressure to balance power generation costs and revenues persists. Although the global natural gas supply is tending to ease with some room for price decline the geopolitical conflict in the Middle East that broke out at the end of February 2026 has driven a rapid short-term rise in international energy prices and the subsequent trend remains uncertain. Against the backdrop of expected declines in annual long-term contract electricity prices and spot nodal electricity prices the Company's power generation business may still face structural pressure where costs exceed revenues. Second the Company's responsibility for ensuring power supply remains arduous. According to the Analysis and Forecast Report on National Power Supply and Demand Situation (2025-2026) issued by the China Electricity Council the national total electricity consumption is expected to grow by 5%-6% year-on-year in 2026 with the peak load projected to climb further increasing the pressure on the Company for fuel supply assurance and stable power generation. Third competition in the power market is becoming increasingly fierce. As the Guangdong power spot market system continues to improve and more high-efficiency large-capacity units are put into operation the Company's existing 9E units face greater challenges in market competition.At the same time national policies provide significant opportunities for energy transition and the Company's development. The Notice on Deepening the Market-oriented Reform of On-grid Tariffs for New Energy to Promote High-quality Development of New Energy (FGNY [2025] No. 136) jointly issued by the National Development and Reform Commission and the National Energy Administration in January 2025 marks the official end of an era of government pricing and subsidy dependence that lasted for more than a decade for the new energy industry which is now fully entering a new era of market-based competition. In January 2026 the Notice on Improving the Capacity Price Mechanism on the Generation Side (FGJG [2026] No. 114) issued by the National Development and Reform Commission and the National Energy Administration clarified the capacity value of new-type energy storage at the national institutional level for the first time. Based on the core principle of "equal pay for equal work" it officially incorporates independent new-type energy storage on the grid side into the capacity price mechanism on the generation side providing core policy support for the large-scale development of the energy storage industry.Facing the above opportunities and challenges the Company with firm confidence and a clear understanding will firmly grasp the strategic initiative adhere to development as its top priority strengthen the layout of its main business in energy storage and integrated energy services while also deeply cultivating its traditional gas turbine business to solidify its development foundation.Through a series of measures such as focusing on breaking through the talent bottleneck by building a forward-looking talent planning and systematic training system continuously deepening market-oriented mechanism reform and improving the performance-oriented incentive and restraint mechanism to release organizational vitality and comprehensively enhancing the integrated capabilities of "investment construction operation management and maintenance" and its level of intelligence to create replicable business models and differentiated competitive advantages the Company will unite the efforts of all employees strengthen its awareness of opportunities seize the momentum overcome difficulties and fully promote the Company's strategic transformation to a new level to achieve sustainable high-quality development. 432025 Annual Report of Shenzhen Nanshan Power Co. Ltd. (2) Outline of the Company's business plan for 2026 The year 2026 is the first year of the Company's "15th Five-Year Plan" and a key year for its strategic transformation to gain full momentum. The Company will fully implement the spirit of the Fourth Plenary Session of the 20th CPC Central Committee focus on the strategic goal of "becoming a leading domestic integrated energy service provider" and adhere to a combination of problem- oriented goal-oriented and result-oriented approaches. Centering on the core annual goals of "promoting the full implementation of incremental projects achieving a breakthrough in the scale of the integrated energy business and completing the construction of key capabilities for strategic transformation" the Company will deeply integrate internal and external resources comprehensively enhance the integrated level of "investment construction operation management and maintenance" actively expand diversified and low- carbon integrated energy service scenarios continuously optimize its market-oriented and professional modern enterprise management system and constantly enhance its market competitiveness and brand influence. It will also effectively improve its overall profitability and risk resistance capabilities laying a solid foundation for achieving the strategic goals of the "15th Five-Year Plan" and striving to embark on a new journey of high-quality development for the Company. 1) Focusing on strategic goals to fully expand the future development landscape. First strengthening strategic insight and empowerment to anchor the direction of high-quality development. The Company will continue to deepen the normalized policy and market analysis mechanism and closely track and study the cutting-edge trends in fields such as new energy and energy storage to ensure the forward-looking nature of market direction and the scientific basis of decision-making. On this basis it will complete the compilation of the Company's "15th Five-Year Plan" with high quality ensuring the plan's foresight feasibility and guidance to lay a solid foundation for the long-term layout of the energy service business and the Company's future development. At the same time it will complete this year's virtual research institute project research to help forge and enhance the Company's core capabilities across the entire chain of "investment construction operation management and maintenance". Second strengthening empowerment through capital operations to deepen the layout of the integrated energy industry. The Company will actively promote the implementation and effectiveness of incremental projects accelerate project cultivation and market expansion and use capital to drive industrial upgrading injecting strong momentum into high-quality development. Third fully promoting subsidiaries to achieve large-scale performance breakthroughs in integrated energy services: The Energy Technology Company must complete the construction of the Zhongshan Guzhen Town Energy Storage Power Station (Phase I) project on schedule and pass the grid-connection acceptance; at the same time it will accelerate the cultivation of core engineering and construction capabilities to provide high-quality and efficient engineering construction support and services for the Company's system-wide new energy projects. Shennan Power Xiwan Company must continuously optimize the operational efficiency of the Zhongshan Independent Energy Storage Power Station (Phase I) project promote the formation of a standardized and replicable operation and management model and efficiently advance the implementation of key tasks to provide solid support for the subsequent large-scale expansion of energy storage projects. Shennan Power Environmental Protection Company must focus on the energy storage operation and maintenance field to accelerate the building of its own core advantages secure high-quality projects steadily transition to high-value-added and market-oriented service models and form sustainable market profitability. Shennan Power Engineering Company must promote the synergistic development of domestic and international business and make every effort to organize and implement preparatory work such as establishing a branch and management mechanism for the Cambodia project ensuring the provision of high-quality services in compliance with regulations to further consolidate market competitiveness and enhance brand value. 2) Deeply cultivating energy services to continuously forge core competitive advantages. Focusing on the main line of energy services the Company will fully forge industry-leading core competitive advantages through a three-dimensional approach of synergistic efficiency model innovation and global layout. First using synergy and cooperation as an engine to release the overall effectiveness of the system. The Company will deepen internal and external synergy and pool development efforts. Internally it will break down organizational barriers promote deep sharing and effective collaboration among subsidiaries in terms of human resources technology resources capabilities and business and accelerate the standardization of development mechanisms and processes for energy storage projects to achieve joint project expansion through complementary advantages. Externally it will build 442025 Annual Report of Shenzhen Nanshan Power Co. Ltd. an ecosystem of "strategic trust and win-win cooperation" explore the new energy market with industry partners and form a new pattern of coordinated development featuring internal-external linkage and resource integration comprehensively enhancing its system-wide operational capabilities. Second taking model innovation as the core to solidify competitive barriers across the entire chain. Focusing on the integrated industrial chain of "investment construction operation management and maintenance" the Company will solidify successful practices into mature replicable and scalable business models. By refining best practices it will form standardized investment models construction standards and operational plans continuously improving the accuracy of investment decisions the capability of talent assurance the efficiency of project experience accumulation and the speed of response to customer needs. This will promote a systematic leap in the execution efficiency and service quality of the entire chain creating core capabilities that are difficult to replicate. Third adopting a dual circulation pattern to shape new global competitive advantages.Based on both domestic and international markets the Company will build a development pattern of "deeply cultivating the local market while radiating globally". In the domestic market it will implement a strategy of "demonstration and leadership clustered development" using benchmark projects as fulcrums to replicate and promote in key regions forming its scale effects and brand influence. In the international market it will deeply integrate into the national "Energy Go-Global" strategy starting with projects in Cambodia and other locations to promote the global output of mature technical standards operation and maintenance services and management experience. Through the coordinated development and complementary capabilities of domestic and international markets the Company will forge its full-chain "investment construction operation management and maintenance" service system into an industry-leading core advantage with global competitiveness contributing greater value to serving the national energy strategy and leading the industry's transformation. 3) Focusing on value enhancement to help improve the efficiency of existing assets and upgrade services. With value creation as the core engine the Company will comprehensively enhance its development quality and efficiency through a three-dimensional linkage of tapping the potential of existing assets management empowerment and operational upgrading. First deepening the tapping of potential in existing assets to release asset value and business efficiency. In terms of the power generation segment with safe production as the bottom line the Company will dynamically assess the power supply and demand and energy market trends within the province optimize power marketing strategies and fuel procurement plans strengthen the coordinated dispatch of gas and electricity and expand the electricity sales market space comprehensively promoting quality and efficiency improvements in the power business.Xiefu Company guided by "service value-added + asset value-added" will deepen the refined management of its leasing business increase property occupancy and yield rates and simultaneously explore and cultivate new profit growth points. Second strengthening the headquarters empowerment to build a functional transformation towards a strategic support and service ecosystem. The Company will promote the transformation of its headquarters from a "management-oriented" to a "value-oriented empowerment platform" creating efficient and synergistic organizational capabilities. It will enhance professional leadership: all functional departments will deepen policy research and industry insights strengthen their knowledge reserves in professional fields and provide forward-looking strategic guidance and implementable solutions for subsidiaries. It will optimize service support: streamlining redundant processes reducing administrative tasks and eliminating formalism and excessive layering of requirements to genuinely reduce the burden on the front line allowing business teams to focus on market expansion and value creation and forming a virtuous cycle of "headquarters empowering and grassroots creating efficiency". Third consolidating the operational foundation to build a solid management base for value creation. The Company will enhance its operational efficiency through standardization centralization and digitalization providing solid support for value creation. Process standardization: it will dynamically improve the standardized process management system promote the in-depth implementation of processes in new business areas and achieve coordinated development. Procurement professionalization: it will explore the construction of a bidding and procurement center featuring "centralized management and control + professional support" to improve procurement efficiency standardization and cost control capabilities. Deep integration of business and finance: it will strengthen the strategic guiding role of comprehensive budgeting use data to drive the optimal allocation of resources provide precise financial support for strategic decision-making and performance improvement and build an integrated value management closed loop of "strategy-business-finance". 452025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 4) Deepening mechanism reform to foster strong internal driving forces for development. With strengthening talent support and assurance as a strategic cornerstone the Company will fully activate its internal vitality providing a core engine for its high-quality development and value creation. First strategic leadership and forward-looking talent planning. The Company will closely follow its "15th Five-Year" strategy and business layout deeply embed the talent planning into the entire process of new project development.By accurately calculating human resource costs and pre-allocating core teams the Company will ensure that projects can quickly form combat effectiveness after winning bids avoiding the risk of talent gaps at the source and guaranteeing strategic implementation and benefit realization. Second breaking down barriers to build a dynamic talent-sharing ecosystem. The Company will deepen the talent- sharing mechanism break down organizational boundaries and promote the efficient flow of internal talent across departments and projects. This will maximize the utilization of existing human resources precisely match business needs and effectively alleviate the pressure of structural shortages. Third implementing systematic policies to build a high-quality and professional talent echelon. The Company will construct a forward-looking human resources system that matches its strategy and deepen the entire chain of mechanisms for "selection employment cultivation and retention". Through systematic talent inventory and unified deployment it will focus on core areas and scarce positions to precisely introduce key talent. It will strengthen specialized training and practical experience to accelerate the iteration of existing talent's capabilities and value enhancement focusing on forging a composite talent team that "understands strategy is professionally proficient dares to pioneer and excels at tackling tough challenges". Fourth value- oriented innovation of market-based incentive and restraint mechanisms. The Company will explore the establishment of a flexible and long-term incentive model closely linked to "incremental profits" promoting all employees to deeply practice the concept of market- based value distribution. This will fully stimulate the innovation and creative vitality of talent achieving a synchronized resonance between personal value and corporate development. Fifth forging a soul through culture to cultivate a spirit of market-oriented expansion and collaboration. The Company will enhance the market-oriented expansion capabilities of all employees encouraging cadres and staff to proactively "explore the market and seize opportunities". At the same time it will deepen internal business synergy and consolidate efforts laying the foundation for creating an industry-leading talent hub and innovation engine. 5) Fortifying safety defenses to ensure stable and orderly production and operation. As 2026 is the decisive year of the Company's three-year action plan for fundamental improvement in production safety and facing the new situation of an upgraded national production safety governance system and the Company's expansion into new business it is imperative to adhere to the principles of "people first life first". The Company must coordinate development and safety from a higher standpoint and build a modern safety management system adapted to new business formats and a new landscape thereby building a solid safety barrier for the realization of its strategic goals. First anchoring the completion of the fundamental improvement campaign to build a long-term safety mechanism.Focusing on key areas such as hazardous chemicals new energy and mechanical and electrical engineering the Company will strictly benchmark against the latest national standards for identifying major accident hazards. It will establish a closed-loop management mechanism covering the entire chain of "investigation - rectification - acceptance - feedback - improvement" to ensure that all rectification measures of the three-year action plan are fully implemented and effective promoting the shift in safety governance from "addressing symptoms" to "tackling root causes". Second consolidating the safety responsibilities of all employees to enhance the level of intrinsic safety. The Company will strengthen the primary responsibility of the main person in charge and conduct regular "Four Nos Two Directs" inspections and cross-inspections. It will accelerate the elimination of outdated processes and equipment promote intelligent equipment and advanced standards and use the construction of a standardized production safety system as a driver to build a benchmark enterprise for intrinsic safety in the industry. Third strengthening the cultivation of safety literacy to build a safety defense line for all employees. Using the "Safety Production Month" and "Fire Safety Publicity Month" as platforms the Company will innovate forms of safety culture communication to ensure the safety knowledge is deeply ingrained. It will deepen external exchanges and cooperation systematically learn from advanced safety management experience and formulate a safety standard system covering new business formats to comprehensively improve the professionalism and standardization of safety management. Fourth forging emergency response capabilities to safeguard the steady development of new business. The Company will carry out precise safety skills training strengthen "combat-oriented" emergency drills and improve emergency plans and resource 462025 Annual Report of Shenzhen Nanshan Power Co. Ltd. reserves. This will comprehensively enhance its emergency response and handling capabilities in complex scenarios providing a safety guarantee for the expansion of its new business. 6) Strengthen political responsibility and consolidate the solid foundation for long-term development. Adhere to integrating the Party's leadership into all aspects and the entire process of the company's reform and transformation taking studying and implementing the spirit of the Fourth Plenary Session of the 20th CPC Central Committee as the primary political task and taking the consolidation and expansion of learning and education achievements as an opportunity focusing on "further strengthening political guidance further deepening the integration of Party building further highlighting brand effect and further enhancing cultural services" to make precise efforts promoting Party building and corporate development to resonate at the same frequency. First strengthen political loyalty and hold steady the ideological rudder. Adhere to using the Party's innovative theories to forge the soul and gather strength strictly implement the "first agenda item" system and deepen the working mechanism of "extensive study in-depth research and true implementation." Focus on the transformation of learning into application deeply integrate theoretical study achievements into the company's transformation strategy embody political responsibility in solving development problems and ensure that the company's reform and development always move forward along the correct course. Second deepen brand empowerment and activate the development engine. With the company's Party building brand construction as a starting point promote deep integration of Party building with strategic transformation and production and operation focusing on new layouts of integrated energy services and key technology research creating characteristic projects of "Party building + business tackling" and "Party building + technological innovation" so that the Party flag flies high on the front line transforming the Party's political advantages into the company's competitive advantages and momentum for development. Third cultivate integrity and upright conduct and build a defense line for clean governance. Improve the joint supervision mechanism dynamically inspect integrity risks improve prevention and control measures and further advance the Party's clean governance and anti-corruption struggle creating a clean and upright environment for entrepreneurship and escorting the company's healthy development. Fourth enrich the cultural soil and gather the synergy for progress.Coordinate the advancement of corporate culture construction and employee care solidify trade union care services and enrich the carriers of cultural and sports activities. Smooth communication channels such as the "Chairman's Mailbox" and "Leadership Reception Day" promptly solve employees' "urgent difficult worrisome and expectant" problems create a corporate atmosphere that is "warm energetic and with a sense of belonging" and gather strong synergy for high-quality development.The business plan and related situation analysis described in this annual report do not constitute a commitment by the Company to investors. The Company reminds investors to maintain due risk awareness and to understand the differences between the business plan and actual operating conditions and to make prudent investment decisions. (3) Major potential risks and countermeasures 1) Main business: In 2026 affected by multiple factors the Company's subsidiary power plants will face immense pressure from high fuel costs and outdated unit energy efficiency. The Company will struggle to make a profit from its 9E units under the pressure of competing with more efficient and lower-cost units. The Company will continue to strengthen the operation and management of its existing assets actively respond to the requirements and changes in the power market and make every effort to improve the profitability of its main business and overall operational efficiency. At the same time the Company will use the Zhongshan independent energy storage project as a driver focus on integrated energy services actively explore diversified business models and seize the opportunity to transform from a traditional power generation enterprise to an integrated energy service provider creating better conditions for the Company's sustainable operation and healthy development. 2) In terms of safety management: As the Company's business diversifies safety risks are intertwined and superimposed. The Company will continue to strengthen the overall planning and deployment of safety management. According to the risk characteristics and work needs of each business segment it will deeply analyze the root causes of prominent problems and difficulties organize consultations and judgments and formulate practical and feasible solutions to ensure that safety management work adapts to the needs of business development and effectively prevents various safety risks. In response to the aging status of power generation equipment 472025 Annual Report of Shenzhen Nanshan Power Co. Ltd. the Company will continuously improve the maintenance and governance level of the equipment by formulating scientific and reasonable maintenance and technical transformation plans and investing corresponding funds and technical forces. It will also implement the primary responsibility for production safety to ensure the safe and stable operation of production facilities. At the same time it will further strengthen training and emergency response capability building ensuring that the "five aspects" namely production safety responsibility management investment training and emergency rescue are in place to ensure that the Company's system gets no man-made production safety accidents and can continue to play its supporting role as a peak-shaving power source. 3) In terms of fuel procurement: In 2026 the Company's natural gas procurement price will mainly depend on changes in the international fuel market and the sales prices of the Company's existing suppliers. Affected by the geopolitical conflict in the Middle East the overall price level of the Company's natural gas procurement shall be expected to remain high in 2026. In addition the single source of the Company's gas supply has a negative impact on supply stability flexibility in gas volume coordination and gas price economy. At the same time with the improvement of spot power trading rules and capacity electricity price levels as well as the successive commissioning of power sources around Shenzhen higher requirements have been placed on the stability and flexibility of natural gas supply. The Company will continue to optimize upstream cooperative relationships work together to ensure gas supply under the single-source situation and make every effort to reduce natural gas procurement costs while ensuring the gas demand for power production. 4) Regarding the land of Nanshan Power Plant: In March 2026 the Company once again learned from the official website of the Planning and Natural Resources Bureau of Shenzhen Municipality about the "Notice of the Planning and Natural Resources Bureau of Shenzhen Municipality on Issuing the " (hereinafter referred to as the "Land Consolidation Plan"). According to the relevant content of the "Land Consolidation Plan" and its attached schedules the Shenzhen 2026 Annual Land Consolidation Plan still includes the land reservation and acquisition of the Company's subsidiary Nanshan Power Plant and related content with no substantive changes compared to the land consolidation plans disclosed in recent years. The Company will continue to contact relevant departments to understand the specific situation conduct in-depth discussions with legal counsel continue to pay attention to and promptly reflect our Company's opinions and demands to relevant government departments and do its utmost to protect the legitimate rights and interests of the listed Company and all shareholders.The Company reminds investors to pay attention to the above-mentioned major risks and other risks that the Company may face and to make prudent and rational investment decisions. 12. Particulars about Researches Visits and Interviews Received during the reporting period □Applicable □Not applicable Main content Basic Reception Means of discussed and information Reception date Visitor type Visitor location reception information index of the provided survey Inquiries about the Company's performance business initiatives Online competitive The Company Value Online communication Individuals advantages provided timely May 15 2025 13 Platform on the network institutions industry written replies platform development to all inquiries prospects transformation progress investment project 482025 Annual Report of Shenzhen Nanshan Power Co. Ltd. progress etc.The Company received all Headquarters Receiving visits January- visitors in office area of Field survey Individual 6 from individual December 2025 accordance Company investors etc.with laws and regulations Inquiries about the Company's performance transformation progress future Easy- The Company plans progress January- interactive provided timely Written inquiry Individual 48 in the December 2025 platform written replies construction of investor email to all inquiries energy storage power stations and land- related matters etc.Inquiries about the Company's production and The Company operation replied to all performance January- Telephone Telephone inquiries in Individual 48 transformation December 2025 communication communication accordance progress unit with laws and listing progress regulations and land- related matters etc. 13. Formulation and Implementation of Market Value Management System and Valuation Improvement Plan Whether the Company has formulated a market value management system.□Yes No□ Whether the Company has disclosed plans for valuation enhancement.□Yes No□ 14. 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 return".□Yes No□ 492025 Annual Report of Shenzhen Nanshan Power Co. Ltd. IV. Corporate Governance Environment and Society 1. General Situation of corporate governance During the reporting period in accordance with the relevant provisions of the Company Law the Securities Law the Code of Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks and other laws regulations normative documents and the Company's Articles of Association the Company adjusted its corporate governance structure no longer establishing a Board of Supervisors and supervisors. At the same time by improving the modern enterprise management system it continuously enhanced the level of standardized governance and refined management effectively safeguarding the legitimate rights and interests of the listed Company investors and employees. (1) Shareholders' meeting: The Company strictly convenes shareholders' meetings in accordance with legal procedures to ensure that shareholders shall exercise their rights in accordance with the law. During the reporting period the Company held 1 regular shareholders' meeting and 2 extraordinary shareholders' meetings and seriously studied and deliberated on major matters requiring shareholders' meeting decisions. The convening and holding procedures attendees and the qualifications of the convener as well as the voting procedures and results of the Company's shareholders' meetings all comply with the relevant provisions of the Company Law the Securities Law the Rules for Shareholders' Meetings of Listed Companies and other laws regulations normative documents and the Articles of Association of the Company. There is no situation where major shareholders and their related parties occupy or transfer the Company's funds assets and other resources in any form. (2) Board of Directors: The Company's Board of Directors adheres to standardized operational management strengthens its own construction through multiple measures and improves the level of standardized operation and scientific decision-making of the Board of Directors. During the reporting period the Board of Directors held 2 regular meetings and 6 ad hoc meetings and seriously studied and deliberated on major matters within its scope of authority. The four Special Committees under the Board of Directors namely the Strategy and Investment Management Committee the Audit Committee the Nomination Committee and the Remuneration and Appraisal Committee all seriously studied and deliberated on relevant matters according to their respective duties and put forward opinions and suggestions. By giving full play to the active role of each special committee in major investment decisions important personnel adjustments standardized remuneration management internal audit and risk control the scientific nature of the Company's decision-making and the standardization of its management are effectively guaranteed. The Company's independent directors are diligent and responsible. They hold special meetings for independent directors as required to deliberate on matters such as major related party transactions. By giving full play to their supervisory and balancing role they effectively safeguard the legitimate rights and interests of the Company and its minority shareholders. (3) Board of Supervisors: The Company's Board of Supervisors in accordance with the provisions of relevant laws and regulations conscientiously fulfilled its supervisory duties in a responsible attitude towards the Company and its shareholders. During the reporting period the Board of Supervisors held 2 regular meetings and 2 ad hoc meetings supervising and inspecting important matters such as the Company's financial situation major decision-making matters internal control and standardized management and expressing its opinions. At the same time the Board of Supervisors also fulfilled its supervisory duties by attending shareholders' meetings being present at Board of Directors meetings and organizing field inspections of the Company's subsidiaries to gain an in- depth understanding of the Company's operating and management situation. In September 2025 in accordance with the provisions of the Company Law the CSRC's "Transitional Arrangements for the Implementation of Supporting Institutional Rules for the New " the "Guidelines for the Articles of Association of Listed Companies" and other relevant laws regulations and normative documents the Company held the first extraordinary general meeting of 2025. The meeting deliberated and approved the "Proposal on Changing the Business Scope and Amending the Company's " comprehensively revising the Company's Articles of Association and adjusting the corporate governance structure accordingly. The Board of Supervisors and 502025 Annual Report of Shenzhen Nanshan Power Co. Ltd. supervisors are no longer established and the Audit Committee of the Board of Directors shall exercise the functions and powers of the Board of Supervisors as stipulated in the Company Law. (4) Management: During the reporting period the Company's management strictly followed the requirements of relevant laws and regulations and the Company's Articles of Association conscientiously implemented the decisions of the shareholders' meetings and the Board of Directors and actively organized and carried out the Company's various production operation and management activities. It continuously improved the office meeting system and internal control system consistently optimized work processes and decision-making procedures and adhered to the working principles of rational division of labor and enhanced cooperation as well as the principle of collective decision-making on major matters. This has continuously enhanced the Company's management level and fully guaranteed the achievement of the annual business objectives. (5) Information disclosure and investor relations management: The Company's Board of Directors strictly adheres to the requirements of the Administrative Measures for the Information Disclosure of Listed Companies the Rules Governing the Listing of Stocks and other rules and normative documents and conscientiously fulfills its information disclosure obligations. During the reporting period the Company completed the preparation and disclosure of periodic and ad-hoc reports in accordance with laws and regulations disclosing a total of 96 announcements throughout the year striving to provide investors with a comprehensive understanding of the Company's production operation management and significant matters. The Company strictly follows the requirements of the Guidelines for Investor Relations Management of Listed Companies the Guidelines of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies and other normative documents to manage investor relations. Through diversified channels such as performance briefings on-site investor visits investor email investor hotlines and the Easy-interactive platform of Shenzhen Stock Exchange the Company maintains standardized and smooth communication with investors continuously improving its investor relations management. (6) Inside information management: The Company strictly complies with the requirements of the Administrative Measures for the Information Disclosure of Listed Companies the Regulatory Guidelines for Listed Companies No. 5 - Management System for Registrants of Inside Information of Listed Companies and other regulations and normative documents to regulate its inside information management. It diligently submits memoranda on the progress of major events and archives of inside information knowers in accordance with relevant regulations. During the reporting period there were no instances of inside information leakage at the Company. (7) Internal control and standardized management: During the reporting period the Company attached great importance to the construction of internal control and solidly carried out internal control self-evaluation and internal audit work. Through scientific and rigorous processes it comprehensively assessed the effectiveness of internal control accurately identified potential risk points and ensured the continuous optimization and improvement of the internal control system. At the same time the Company vigorously carried out the construction of a compliance system effectively improving the overall level of standardized management of the Company and building a solid line of defense to prevent operational and management risks.Does there exist any difference in compliance with the corporate governance the PRC Company Law and the relevant provisions of CSRC □Yes No□ There exist no difference in compliance with the corporate governance the PRC Company Law and the relevant provisions of CSRC. 2. Independence and Completeness in Business Personnel Assets Organization and Finance The Company has no controlling shareholder. The Company is completely independent from its major shareholders in terms of personnel assets finance business and organization and has the ability to make independent decisions and operate on its own. (1) Personnel independence: The Company has an independent human resources management system and a salary and welfare system. All senior management personnel of the Company are full-time management personnel and do not hold any administrative 512025 Annual Report of Shenzhen Nanshan Power Co. Ltd. positions other than director or supervisor in shareholder entities. Within the scope approved by the Board of Directors the Company independently recruits and dismisses employees according to its operational and management needs. The Company has established a relatively complete human resources management system and has independent management authority. (2) Asset independence: The Company owns independent production facilities and auxiliary systems land use rights and property rights as well as office facilities and equipment. Within the scope authorized by the shareholders' meeting and the Board of Directors it has the power to independently purchase and dispose of assets. (3) Financial independence: The Company has an independent financial management department and accounting system is equipped with independent financial management and accounting personnel has established a relatively complete financial management system and has independent bank accounts and tax accounts. Within the scope authorized by the shareholders' meeting and the Board of Directors the Company has independent financial decision-making power and there are no instances of major shareholders interfering with financial management or misappropriating funds. (4) Business independence: The Company independently carries out its production and business activities and has established an independent and complete system for production procurement sales channels and management. Within the scope authorized by the shareholders' meeting and the Board of Directors it operates independently manages itself and is responsible for its own profits and losses. (5) Institutional independence: In accordance with the needs of production operation and management and following modern enterprise management standards the Company has established a relatively complete organizational structure and management framework. There are no instances of shareholders interfering with the establishment and operation of the Company's institutions nor does it share organizational structures with shareholders. 3. Horizontal competition □Applicable □Not applicable 4. Directors and senior management (1) Basic situation Num Num ber Numb Numb ber of er of er of of Reas share shares shares Other share ons s reduc increa increa s for held ed in Incum Commence sed in ses/de held incre Gen Expiration at the the Name Age Position bency ment of the creas at the ase or der of term begin curre status term curren es end decre ning nt t (share of the ase in of the perio period s) perio share perio d (share d s d (share s) (shar (shar s) es) es) KONG Mal Chairm Incum September June 19 Guolian 42 0 0 0 0 0 e an bent 13 2022 2027 g Vice HU Mal Incum September June 19 55 Chairm 0 0 0 0 0 Ming e bent 13 2021 2027 an HUAN Mal Incum June 3 June 19 54 Director 0 0 0 0 0 G Qing e bent 2019 2027 CHEN Mal 52 Director Incum June 20 June 19 0 0 0 0 0 522025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Yedong e bent 2024 2027 Incum February June 19 Director 0 0 0 0 0 bent 27 2026 2027 LIN Mal Deputy Yongzh 35 e General Incum February 2 June 19 eng 0 0 0 0 0 manage bent 2026 2027 r Indepen HUAN Fem Incum August 2 June 19 54 dent 0 0 0 0 0 G Xiqin ale bent 2022 2027 Director CHEN Indepen Mal Incum February June 19 Yongch 50 dent 0 0 0 0 0 e bent 27 2026 2027 ong Director Indepen NING Mal Incum June 20 June 19 42 dent 0 0 0 0 0 Jie e bent 2024 2027 Director Deputy Mal General Incum September June 19 LI Chao 54 0 0 0 0 0 e manage bent 18 2023 2027 r Deputy TAO Mal General Incum September June 19 5800000 Lin e manage bent 18 2023 2027 r Chief ZHAN Mal Financi Incum June 13 June 19 G 38 0 0 0 0 0 e al bent 2022 2027 Xiaoyin Officer Secretar y to the Mal Board Incum April 26 June 19 ZOU Yi 52 0 0 0 0 0 e of bent 2021 2027 Director s Resign August 28 September Director 0 0 0 0 0 ed 2017 30 2025 CHEN Mal 60 General Yuhui e Resign August 11 September manage 0 0 0 0 0 ed 2017 30 2025 r Resign April 25 June 11 Director 0 0 0 0 0 ed 2016 2025 Executi WU Mal ve 60 Guowen e Deputy Resign April 1 June 11 00000 General ed 2016 2025 Manage r Indepen Mal Resign November February DU Wei 70 dent 0 0 0 0 0 e ed 11 2019 27 2026 Director Total -- -- -- -- -- -- 0 0 0 0 0 -- Were there any departures of directors and senior management during their term of office in the reporting period □Yes□ No On June 11 2025 the Company and its Board of Directors received a written resignation report from Mr. WU Guowen Director and Executive Deputy General Manager. Mr. WU Guowen resigned from his positions as Director and Executive Deputy General 532025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Manager of the Company as well as a member of the Strategy and Investment Management Committee of the 10th Board of Directors due to reaching the statutory retirement age. His resignation report became effective from the date of delivery.On September 30 2025 the Company and its Board of Directors received a written resignation report from Mr. CHEN Yuhui Director and General Manager. Mr. CHEN Yuhui resigned from his positions as Director and General Manager of the Company as well as a member of the Strategy and Investment Management Committee of the 10th Board of Directors due to reaching the statutory retirement age. His resignation report became effective from the date of delivery.In January 2026 Mr. DU Wei applied to resign from his position as an independent director of the 10th Board of Directors of the Company upon the expiration of his term of office and concurrently from his positions as the convener and member of the Nomination Committee and a member of the Remuneration and Appraisal Committee of the 10th Board of Directors. Mr. DU Wei's resignation would cause the proportion of independent directors in the Company's Board of Directors and its special committees to fail to comply with the provisions of relevant laws and regulations. In accordance with the Administrative Measures for Independent Directors of Listed Companies and other relevant regulations his resignation report would take effect after the Company's shareholders' meeting elects a new independent director. On February 27 2026 the Company held the first Extraordinary General Meeting of 2026 which reviewed and approved the Proposal on the By-election of an Independent Director for the 10th Board of Directors of the Company electing Mr. CHEN Yongchong as an independent director of the 10th Board of Directors of the Company. Mr. DU Wei's resignation report officially took effect.Changes in directors and senior management of the Company □Applicable □Not applicable Name Positions Types Date Reason DirectorExecutive WU Guowen Deputy General Dimission June 11 2025 Retired Manager Director General CHEN Yuhui Dimission September 30 2025 Retired Manager Deputy General LIN Yongzheng Employment February 2 2026 manager DU Wei independent director Dimission February 27 2026 Personal reasons LIN Yongzheng Director Elected February 27 2026 CHEN Yongchong independent director Elected February 27 2026 (2) Posts holding The professional background and main work experience of the Company's incumbent directors supervisors and senior officers as well as their main responsibilities currently 1) Members of the Board of Directors Mr. KONG Guoliang: Born in 1983 a member of the CPC holds a master's degree in finance from the Central University of Finance and Economics and is a Certified Public Accountant and an economist. He has served as a stock and certificate affairs manager and securities affairs representative at Shenzhen Zhenye (Group) Co. Ltd.; a senior manager and deputy director of the Investment Department at Shenzhen Capital Holdings Co. Ltd.; and the director of the Capital Operation Department director of the Investment and Development Department II director of the Strategic Research Department (Office of the Board of Directors) (director) and secretary of the Board of Directors at Shenzhen Capital Operation Group Co. Ltd. He has also been a director of Shenzhen Zhenye (Group) Co. Ltd. and China International Marine Containers (Group) Co. Ltd. general manager of Shenzhen Pingwen Development Investment Co. Ltd. and chairman of Shenzhen Yuanzhi Culture Holding Co. Ltd. He currently serves as the chairman of Shenzhen Energy Corporation a director of Shenzhen Energy (Hong Kong) International Co. Ltd. and a director of HONG KONG NAM HOI 542025 Annual Report of Shenzhen Nanshan Power Co. Ltd. (INTERNATIONAL) LTD He has been the chairman of the Company since September 2022 and the secretary of the Party Committee of the Company since November 2022.Mr. HU Ming: Born in 1970 a member of the China National Democratic Construction Association holds a master's degree and is a senior engineer. From March 2003 to December 2019 he held positions in relevant government units such as the Housing and Construction Bureau and the Audit Bureau of Nanshan District. From January 2020 to August 2021 he served as a director and general manager of Shenzhen Dashahe Construction Investment Co. Ltd. and a director and general manager of Shenzhen Nanshan Anju Construction and Development Co. Ltd. Since August 2021 he has been a director and general manager of Shenzhen Guangju Energy Co. Ltd. and has been the vice chairman of the Company since September 2021.Mr. HUANG Qing: Born in 1971 a member of the CPC an economist holds a master's degree in economics and graduated from Wuhan University with a major in national economic planning and management. He has served as deputy director and director of the General Office of the Shenzhen Municipal Government a deputy-department-level secretary of the General Office of the Shanxi Provincial Government deputy director and a member of the Party Leadership Group of the Guangzhou Office of the Shanxi Provincial Government and deputy general manager of Shenzhen Capital Holdings Co. Ltd. He is currently the chairman of Shenzhen Financing Leasing (Group) Co. Ltd. From June 2019 to present he has served as a director of the Company.Mr. CHEN Yedong: Born in 1973 a member of the CPC holds a degree of Master of Business Administration from Zhongnan University of Economics and Law and is a senior economist. He has served as a senior manager of the Strategic Research Department deputy director of the Strategic Research Department director of the Asset Management Department and director of the Risk Control Department at Shenzhen Capital Holdings Co. Ltd. as well as the chairman of the Board of Supervisors and secretary of the Party Committee at Shenzhen Clou Electronics Co. Ltd. He has been the deputy secretary of the Party Committee of the Company since June 2023 and a director of the Company since June 2024.Mr. LIN Yongzheng: Born in 1990 holds a master's degree in wealth management from Queen Mary University of London. He joined the planning department of Shenzhen Guangju Energy Co. Ltd. in 2013. He has served as a supervisor of Shenzhen Nanshan Petroleum Co. Ltd. Shenzhen Shennan Gas Co. Ltd. Shenzhen Guangju Industrial Co. Ltd. Shenzhen Guangju Yida Hazardous Chemicals Warehousing Co. Ltd. and Shenzhen Guangju Yisheng Petrochemical Storage and Transportation Co. Ltd.; deputy manager of the planning department of Shenzhen Guangju Energy Co. Ltd.; supervisor of Shenzhen Guangju Real Estate Co. Ltd.Shenzhen Yihe Investment Industrial Co. Ltd. and Shenzhen Juxin Investment Industrial Co. Ltd. From January 2021 to January 2026 he served as the deputy general manager of Shenzhen Zhicheng Energy Cloud Data Center Co. Ltd. He has been a director and deputy general manager of the Company since February 2026.Ms. HUANG Xiqin: Born in 1971 holds a Bachelor of Laws and Master of Economics from the Party School of the CPC Central Committee and an EMBA from the Guanghua School of Management Peking University. She started her career in September 1992.From September 1992 to May 1998 she served as an appraiser and manager at Shenzhen International Real Estate Consulting Co. Ltd.From November 2001 to January 2025 she was the chairwoman of Guangdong Guozhonglianhang Asset Appraisal Land and Real Estate Valuation and Planning Consulting Co. Ltd. Since January 2025 she has been a director of Guangdong Guozhonglianhang Asset Appraisal Land and Real Estate Valuation and Planning Consulting Co. Ltd. Since May 1998 she has been the executive director of Guozhonglian Asset Appraisal and Land & Real Estate Valuation Co. Ltd. Since December 2000 she has been the chairwoman of Guozhonglian Construction Engineering Management Consultant Co. Ltd. Since February 2015 she has been a director of Beijing Guozhonglian Auction Co. Ltd. Since January 2022 she has also served as an external director of Guangdong Construction Engineering Group Holding Co. Ltd. She has been an independent director of the Company since August 2022.Mr. CHEN Yongchong: Born in 1975 a member of the CPC a researcher holds a doctoral degree in materials science from Beihang University an Innovation Leader of the Royal Academy of Engineering and a Sichuan Tianfu Talent. He has served as a postdoctoral fellow at Peking University a professor at Shandong University of Science and Technology head of the Energy Storage Technology Group at the Institute of Electrical Engineering of the Chinese Academy of Sciences a visiting scholar at the University of Debrecen a professor at the University of Chinese Academy of Sciences and deputy director of the Institute of Electrical Engineering of the Chinese Academy of Sciences. He is currently the director of the Green Energy Storage Research Institute at the 552025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Energy Internet Research Institute Tsinghua University Sichuan. He also serves as the executive chairman of the China International Energy Storage Conference deputy secretary-general/deputy director of the Energy Storage Application Branch of the China Industrial Association of Power Sources a member of the National Photovoltaic Energy Storage Demonstration and Verification Center Committee deputy director of the National Technical Committee on Standardization of Alkaline Storage Batteries founder of HAWAGA Energy Storage Technology (Chengdu) Co. Ltd. and a member of the editorial boards of the journals Chinese Journal of Power Sources Electrical Age and Journal of Energy Chemistry. He has been an independent director of the Company since February 2026. Mr. NING Jie: Born in 1983 a member of the CPC holds a Bachelor of Laws and a Bachelor of Management from the School of Law Southwest University of Political Science and Law. From September 2005 to July 2008 he worked at the Shenzhen Intermediate People's Court. From July 2008 to December 2008 he worked at Zhong Lun Law Firm (Shenzhen). From December 2008 to February 2012 he was the manager of the Legal Department at Shenzhen Merchants Real Estate Consultant Co. Ltd. From February 2012 to February 2015 he worked at AllBright Law Offices (Shenzhen). From September 2020 to February 2024 he was an executive director of Pak Tak International Limited. From January 2022 to August 2023 he also served as an independent director of Min Fu International Holding Co. Ltd. He has been a senior partner at Guangdong Ganglian Law Firm since February 2015. He has been an independent director of the Company since June 2024. 2) Senior management For the resume of Deputy General Manager LIN Yongzheng see the aforementioned director's resume.Mr. LI Chao: Born in 1971 holds a master's degree in business administration from Macau University of Science and Technology and is a senior accountant. He started his career in July 1994 and has served as a project manager in the audit department of Shenzhen Dahua Certified Public Accountants a finance manager at Compaq Computer Technologies (China) Co. Ltd. and a finance director at Hong Kong China United Power Finance Co. Ltd. He joined Shenzhen Nanshan Power Co. Ltd. in February 2001 and has served as assistant to the director director and deputy chief economist and manager of the Corporate Development Department as well as assistant to the general manager. He has been the deputy general manager of the Company since September 2023 concurrently serving as the chairman of Shenzhen Server Energy Co. Ltd. since September 2023 chairman of Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd.. since April 2024 and a director of Shenzhen New Power Industrial Co. Ltd. since September 2025.Mr. TAO Lin: Born in 1967 holds a bachelor's degree in power systems and automation from Shanghai Jiao Tong University and a master's degree in business administration from the School of Economics and Management at Tsinghua University and is an economist. He started his career in July 1989 and has served as a production officer of the Youth League Committee of the Dalian Electric Power Bureau and an on-site secretary of the office of Shenzhen Huaneng Economic Development Company. He joined Shenzhen Nanshan Power Co. Ltd. in January 1992 and has served as a secretary director and secretary of the Board of Directors of the office general manager of Shenzhen Xiefu Oil Supply Co. Ltd. general manager of Zhongshan Power Co. Ltd. and Zhongshan Zhongfa Power Co. Ltd. deputy chief economist of the Company and assistant to the general manager. He has been the deputy general manager of the Company since September 2023 concurrently serving as the vice chairman of Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. since September 2023 a director of Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co. Ltd. since July 2024 and a director of Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. since June 2025.Mr. ZHANG Xiaoyin: Born in 1987 a member of the CPC holds a master's degree in business administration from Wuhan University and is a senior accountant. He also holds professional qualifications including Chinese Certified Public Accountant Certified Practising Accountant (Australia) Certified Tax Agent Certified Public Valuer and Financial Risk Manager (FRM). He started his career in October 2008 and has served as an auditor in the financial services group of Ernst & Young Hua Ming LLP Shenzhen Branch a financial accountant in the finance and accounting department of Wanlian Securities Co. Ltd. a senior manager of the financial management department at China Resources SZITIC Trust Co. Ltd. and concurrently the head of accounting and supervisor of China Resources Energy Service Co. Ltd. and an investment director (deputy director) of Yuanzhi Venture Capital (Investment and Development Department II) at Shenzhen Capital Holdings Co. Ltd. He has been the chief financial officer of the Company since June 2022. 562025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Mr. ZOU Yi: Born in 1973 a member of the CPC holds a bachelor's degree in finance from Zhongnan University of Economics and Law and a master's degree in economics from Zhongnan University of Economics and Law and is an economist. From July 1994 to September 2007 he worked at the headquarters of Shenzhen Energy Corporation where he served as a business supervisor in the Finance Department deputy director of the Funding Office and business director of the Office of the Secretary of the Board of Directors.From September 2007 to December 2017 he was the director of the Funding Department at Shenzhen Energy Finance Co. Ltd. From December 2017 to July 2019 he was the deputy general manager of Shenzhen Energy Finance Co. Ltd. From August 2017 to November 2018 he also served as a director of Huizhou Shenneng Fengda Power Co. Ltd. From August 2019 to April 2021 he was the director of the Office of the Board of Directors of the Company and from July 2020 to April 2021 he was also the director of the Administrative Management Department of the Company. He has been the secretary of the Board of Directors of the Company since April 2021 concurrently serving as the director of the Office of the Board of Directors since December 2023 and chairman of Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. since June 2025.The controlling shareholder and actual controller simultaneously serve as the chairman and general manager of the listed Company □Applicable □Not applicable Office taking in shareholder companies □Applicable □Not applicable Does he /she receive Name of the Names of the Titles engaged in Starting date of Expiry date of remuneration or persons in office shareholders the shareholders office term office term allowance from the shareholder Shenzhen Energy Chairman November 4 2022 No Corporation HONG KONG KONG Guoliang NAM HOI Director September 9 2022 No (INTERNATIONA L) LTD Shenzhen Energy HUANG Qing Director April 8 2019 No Corporation Offices taken in other organizations □Applicable □Not applicable Whether to receive Name of Positions held in Commencement of remuneration Other entity name Expiration of term incumbent other entities term allowance in other entities Shenzhen Energy KONG (Hong Kong) Director April 24 2023 No Guoliang International Co. Ltd.Shenzhen Guangju Director August 20 2021 HU Ming Yes Energy Co. Ltd. General manager August 4 2021 Shenzhen Capital Deputy General September 01 March 13 2026 Yes Holdings Co. Ltd. manager 2016 Shenzhen Environment December 04 & Water Investment Director January 09 2026 No 2020 Group Co. Ltd.HUANG Qing Shenzhen Hi-tech Investment Group Co. Director March 09 2018 No Ltd.Shenzhen Institute of Building Research Co. Director January 31 2018 April 24 2026 No Ltd. 572025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Shenzhen Yixin Chairman October 10 2022 No Investment Co. Ltd.CR SZITIC Investment Director April 232021 No Co. Ltd.Shenzhen Enterprise Service Group Co. Director April 28 2021 No Ltd.Shenzhen Capital Director June 22 2017 July 29 2025 No International Co. Ltd.Shenzhen Yuanzhi Ruixin Equity Chairman January 26 2024 No Management Co. Ltd.Shenzhen Huijin Intelligent Industry Chairman April 07 2024 No Co. Ltd.Shenzhen Financial Leasing (Group) Co. Chairman March 13 2026 Yes Ltd.Guozhonglian Asset Appraisal and Land & Executive Director May 26 1998 Yes Real Estate Valuation Co. Ltd.Guozhonglian Construction December 13 Engineering Chairman Yes 2000 Management Consultant Co. Ltd.Guangdong Guozhonglianhang Asset Appraisal Land November 26 and Real Estate Chairman January 27 2025 Yes 2001 Valuation and HUANG Planning Consulting Xiqin Co. Ltd.Guangdong Guozhonglianhang Asset Appraisal Land and Real Estate Director January 27 2025 Yes Valuation and Planning Consulting Co. Ltd.Beijing Guozhonglian Director February 28 2015 No Auction Co. Ltd.Guangdong Construction External director January 01 2022 Yes Engineering Group Holding Co. Ltd.HAWAGA Energy Chief scientist Storage Technology May 2011 No Director (Chengdu) Co. Ltd. Energy Storage CHEN Application Branch of Deputy Secretary- Yongchong China Industrial General/Deputy May 2016 No Association of Power Director Sources China International Executive March 2017 No Energy Storage chairman 582025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Conference Journal of Energy Member of the January 2020 No Chemistry editorial board Chinese Journal of Member of the January 2023 No Power Sources editorial board Energy Internet Director of the Research Institute Green Energy August 2023 Yes Tsinghua University Storage Research Sichuan Institute National Photovoltaic Energy Storage Demonstration and Member August 2023 No Verification Center Committee National Technical Committee on Standardization of Deputy Director January 2025 No Alkaline Storage Batteries Member of the Electrical Age September 2025 No editorial board Guangdong Ganglian NING Jie Senior Partner February 2 2015 Yes Law Firm Penalties imposed by securities regulators in the past three years on current directors and senior officers as well as those who left their posts during the reporting period □Applicable □Not applicable (3) Remuneration of directors supervisors and senior officers Decision-making procedures determination basis and actual payment of remuneration for directors and senior officers 1) Decision-making procedures: In accordance with the relevant provisions of the Company's Articles of Association the remuneration of directors shall be decided by the shareholders' meeting and the remuneration of senior officers shall be decided by the Board of Directors. 2) Determination basis: According to the Working System for Independent Directors the Company provides remuneration to independent directors and determines the distribution standards. The Company has established the Management Measures for Remuneration and Appraisal of Senior Officers to determine the annual remuneration standards for the Company's senior officers who are subject to an annual salary system. The Company's Board of Directors determines the actual remuneration that can be paid based on the appraisal results of the annual business performance indicators and the audit of senior officers. If a senior officer's position changes is promoted the value of the position changes or for other special reasons their remuneration plan will be re- determined based on the principle of "salary follows the position" and the remuneration will be calculated based on the position standard and the actual time in the position. 3) Actual payment: The Company pays remuneration in strict accordance with the decision-making procedures and determination basis for the remuneration of directors and senior officers. Expenses related to transportation accommodation research investigation and meeting attendance incurred by directors in the performance of their duties shall be borne by the Company.Remuneration of directors and senior officers during the reporting period Unit: RMB 10000 Name Gender Age Position Incumbency Total pre-tax Whether to 592025 Annual Report of Shenzhen Nanshan Power Co. Ltd. status remuneration receive received from remuneration the Company from related parties of the Company KONG Male 42 Chairman Incumbent 98.15 No Guoliang HU Ming Male 55 Vice Chairman Incumbent 0 Yes HUANG Qing Male 54 Director Incumbent 0 Yes CHEN Yedong Male 52 Director Incumbent 89.87 No HUANG Xiqin Female 54 Independent director Incumbent 11.91 Yes NING Jie Male 42 Independent director Incumbent 13.69 Yes Deputy General LI Chao Male 54 Incumbent 89.87 No manager Deputy General TAO Lin Male 58 Incumbent 92.74 No manager ZHANG Male 38 Chief Financial Officer Incumbent 0 Yes (Note) Xiaoyin Secretary of the Board ZOU Yi Male 52 Incumbent 81.17 No of Directors Director General CHEN Yuhui Male 60 Resigned 77.74 No Manager Director Executive WU Guowen Male 60 Deputy General Resigned 51.80 No Manager DU Wei Male 70 Independent director Resigned 13.33 No Total -- -- -- -- 620.27 -- The remuneration of independent directors is determined according to the Company's independent director allowance standards. Non-independent directors and senior officers Appraisal basis for the actual remuneration received by all holding administrative management positions in the Company directors and senior officers at the end of the reporting period are appraised in accordance with the Company's relevant systems and their individual annual business performance responsibility statements.The independent director allowances received by independent directors are not subject to appraisal. As of the end of the reporting period according to the Company's Management Measures for Remuneration and Appraisal of Senior Officers Completion of appraisal for the actual remuneration received the performance appraisal and result application for non- by all directors and senior officers at the end of the reporting independent directors and senior officers holding period administrative management positions in the Company for the year 2024 have been completed. The performance appraisal for the year 2025 will be carried out at an appropriate time in 2026 based on the Company's relevant systems and performance completion.Deferred payment arrangements for the actual remuneration received by all directors and senior officers at the end of the None reporting period Clawback situation for the actual remuneration received by all None directors and senior officers at the end of the reporting period Note: According to the Administrative Measures for the Seconded Chief Financial Officers of Shenzhen Capital Operation Group Co. Ltd. Mr. ZHANG Xiaoyin the Company's Chief Financial Officer receives his remuneration from Shenzhen Capital Operation Group Co. Ltd. His remuneration for 2025 is RMB 800000.Other circumstances □Applicable □Not applicable 602025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 5. Performance of Duties by Directors During the Reporting Period (1) Attendance of directors at Board meetings and shareholders' meetings Attendance of directors at the Board of Directors and the General Meeting of Shareholders Have you Number of failed to times of Number of Number of Number of Number of attend the attendance times of Number of times of on- times of times of meetings of at the attendance at times of Name of site attendance at absences Board of Board of the Board of attendance at Director attendance at the Board of from the Directors in Directors Directors by the General the Board of Directors by Board of person for during the corresponden Meeting Directors proxy Directors two reporting ce consecutive period times KONG 8 2 6 0 0 No 3 Guoliang HU Ming 8 2 6 0 0 No 1 HUANG Qing 8 2 6 0 0 No 3 CHEN Yedong 8 2 6 0 0 No 3 HUANG Xiqin 8 2 6 0 0 No 3 NING Jie 8 2 6 0 0 No 3 CHEN Yuhui 6 2 4 0 0 No 2 WU Guowen 4 1 3 0 0 No 1 DU Wei 8 2 6 0 0 No 3 Explanation of failure to attend the board meeting in person twice in a row During the reporting period no director failed to attend two consecutive Board meetings in person. (2) Directors' objections to related matters of the Company Whether the director raises any objection to the relevant matters of the Company □Yes No□ During the reporting period the directors did not raise any objection to the relevant matters of the Company. (3) Other descriptions of directors' performance of duties Whether the directors' suggestions on the Company have been adopted □Yes□ No The director's statement on whether the relevant suggestions of the Company have been adopted or not During the reporting period all directors of the Company diligently performed their duties in strict accordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange as well as the Company's Articles of Association Rules of Procedure for the Board of Directors and other systems. They continuously monitored the Company's standardized operations and production and business activities. Based on the Company's actual situation they conscientiously studied and reviewed the proposals submitted to the Board of Directors to ensure scientific decision-making and effectively safeguard the legitimate rights and interests of the Company and all shareholders. 612025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 6. Work of the Special Committees of the Board of Directors During the Reporting Period Numb Important Name of Other Details of er of comments the Convening performa the Members meetin Content of the meeting and Committ date nce of objections gs suggestions ee duties (if any) held put forward All attending 1. To review the Proposal on the members March 14 Company's Intention to Use had no 2025 Temporarily Idle Self-owned objections Funds for Cash Management. and agreed to the proposal 1. To review the 2024 Performance Report of the Strategy and All Investment Management attending Committee of the Board of members Directors; had no April 21 2. To review the Proposal on the objections 2025 Application for Comprehensive and agreed Financing Credit Facilities and to all Provision of Guarantees by the proposals of KONG Company and Its Controlled this meeting Guoliang Subsidiaries in 2025.HU Ming As related HUANG members Strategy Qing 3 Mr. KONG and CHEN Guoliang Investme Yuhui Mr.nt WU HUANG Manage Guowen Qing and ment Mr. CHEN Committ Yuhui ee abstained 1. To review the Proposal on from voting Investing in Sichuan Ruinan the number May 16 2025 Electric Power Construction of non- Engineering Co. Ltd. related members was less than three.The proposal was directly submitted to the Board of Directors for review KONG 1. To review the Proposal on All Guoliang Revising the Company's and and agreed Yuhui Renaming It . 1. To hear and discuss the Communication Letter from All Certified Public Accountants to attending January 24 Those Charged with Governance members 2025 submitted by Lixin Zhonglian had no Certified Public Accountants objections (Special General Partnership). 1. To review the 2024 Performance Report of the Audit Committee of the Board of Directors; 2. To review the full text and summary of the 2024 Annual Report; 3. To review the Proposal on the 2024 Final Financial Accounts Report; 4. To review the Proposal on the All Provision for Asset Impairment attending and Write-off of Bad Debts for members 2024; had no April 18 5. To review the Proposal on the objections 2025 Profit Distribution Plan for 2024; and agreed 6. To review the 2024 Internal to all Control Evaluation Report; proposals of 7. To review the 2024 Work this meeting HUANG Summary and 2025 Audit Plan of Audit Xiqin the Internal Audit Department; committe HUANG 8 8. To review the 2024 Performance e Qing Evaluation Report of the NING Jie Accounting Firm; 9. To review the Report of the Audit Committee of the Board of Directors on the Supervision of the Accounting Firm's Performance in 2024. All 1. To review the First Quarter attending Report of 2025; members 2. To hear the First Quarter had no April 27 Financial Final Accounts Report of objections 20252025; and agreed 3. To hear the First Quarter Work to all Report of the Audit and Risk proposals of Control Department for 2025.this meeting 1. To review the full text and summary of the 2025 Semi- All Annual Report; attending 2. To review the Proposal on members Revising the Company's and Renaming It to all ; 632025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 3. To hear the Semi-Annual Financial Final Accounts Report of 2025; 4. To hear the Second Quarter Work Report of the Audit and Risk Control Department for 2025.All 1. To review the Third Quarter attending Report of 2025; members 2. To hear the Third Quarter had no October 23 Financial Final Accounts Report of objections 20252025; and agreed 3. To hear the Third Quarter Work to all Report of the Audit and Risk proposals of Control Department for 2025.this meeting All attending members 1. To review the Proposal on the November 03 had no Selection Plan for the Audit 2025 objections Service Provider for 2025.and agreed to the proposal 1. To review the Proposal on Appointing the Audit Firm for 2025 and Determining Its Remuneration; 2. To review the Proposal on All Revising the Company's attending ; objections 2025 3. To review the Proposal on and agreed Revising the Company's to all ; 4. To review the Proposal on Revising the Company's . 1. To hear the Communication Letter from Certified Public Accountants to Those Charged All with Governance submitted by attending December 19 ShineWing Certified Public members 2025 Accountants (Special General had no Partnership) and to communicate objections on the 2025 annual audit work plan for the Company.All attending 1. To review the 2024 Performance members Nominati DU Wei April 18 Report of the Nomination had no on HU Ming 2 2025 Committee of the Board of objections Committ NING Jie Directors. and agreed ee to the proposal August 19 1. To review the Proposal on All 642025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 2025 Revising the Company's and objections Renaming It . proposal All attending 1. To review the 2024 Performance members Report of the Remuneration and had no April 18 Appraisal Committee of the Board objections 2025 of Directors; and agreed 2. To review the Proposal on the to all Remuneration Plan for 2025.proposals of this meeting 1. To review the Proposal on Revising the Company's and Renaming It Evaluatio had no HUANG 3 August 19 ; proposals of 2. To review the Proposal on the this meeting 2025 Business Performance Responsibility Statement for the Company's Senior Management.All attending 1. To review the Proposal on the members 2024 Performance Appraisal September had no Results and Remuneration 17 2025 objections Payment Plan for the Company's and agreed Senior Management.to the proposal 7. Work of the Audit Committee Whether the Company has risks found by the Audit Committee during the supervision activities in the reporting period □Yes No□ The Audit Committee has no objection to the supervision matters during the reporting period. 8. Particulars about employees (1) Number of staff professional structure and educational background Number of active employees of parent company at the end of the 220 reporting period Number of active employees of major subsidiaries at the end of 85 the reporting period Total number of active employees at the end of the reporting 305 652025 Annual Report of Shenzhen Nanshan Power Co. Ltd. period Total number of employees receiving remuneration in the 303 current period Number of retired employees whose the parent company and 0 major subsidiaries have to bear the expenses Professional composition Category Number Production staff 59 Salesperson 12 Technical staff 80 Financial staff 16 Administrative staff 138 Total 305 Education background Category Number Junior college and technical secondary school education 111 Bachelor's degree 160 Master's degree or above 34 Total 305 (2) Remuneration policy The Board of Directors implements an annual remuneration accrual principle for the Company based on fixed basic salary + floating performance-based salary. The Chairman's remuneration is reviewed by the Board of Directors and submitted to the shareholders' meeting for approval. The remuneration plans for the General Manager and Deputy General Manager-level senior management are drafted by the Remuneration and Appraisal Committee of the Board of Directors and submitted to the Board of Directors for approval. The remuneration for other personnel is managed by the Company's management team under the principles of "Salary Based on Position" "Pay for Work" and "performance-oriented." Within the annual remuneration limit approved by the Board of Directors the Company strictly controls salary costs establishes a salary incentive mechanism linked to employee performance formulates salary standards distribution plans and appraisal and reward/penalty measures for personnel at all levels and is responsible for their implementation fully leveraging the incentive role of remuneration. (3) Training plan The Company attaches great importance to employee training and has established a relatively complete training system. By strengthening employee training it aims to enhance employees' job skills and overall qualities to better meet the Company's operational and management needs for talent while also cultivating reserve talent for the Company's sustainable development. During the reporting period in terms of safety training the Company organized safety education and training at all levels emergency rescue drills and emergency response capability training in accordance with laws and regulations such as the Work Safety Law to improve the safety awareness accident prevention capabilities and professional skills of cadres and employees at all levels. In terms of job training a combination of external assignments and internal training was adopted to conduct certification training for key business and technical positions improving employees' job performance capabilities. Relying on the gas turbine simulation training base the practical operation and emergency response capabilities of power plant operation personnel were enhanced. In terms of party member training and learning the Company's party organizations at all levels have solidly promoted the "First-Topic" learning system and the "Three Meetings and One Class" system. By integrating online and offline resources a regular and diversified education and training system 662025 Annual Report of Shenzhen Nanshan Power Co. Ltd. has been built and innovative theme activities such as the "Party Building+" model and "Walking Party Classes" have been explored to strengthen the tempering of party spirit and practical training for party members. (4) Outsourcing of labor □Applicable □Not applicable 9. The Company's Profit Distribution and Conversion of Capital Reserves into Share Capital The formulation implementation or adjustment of profit distribution policies especially cash dividend policies during the reporting period □Applicable □Not applicable The Company's profit distribution policy (I) The Company shall implement a continuous and stable profit distribution policy comprehensively considering reasonable investment returns for investors and the long-term development of the Company. The Company's profit distribution shall not exceed the scope of cumulative distributable profits shall not impair the Company's ability to continue as a going concern and shall adhere to the principles of distribution in legal order and no distribution in case of unrecovered losses.(II) The Company's profit distribution may take the form of cash stock a combination of cash and stock or other methods permitted by laws and regulations. Among them the cash dividend policy target is the residual dividend policy.(III) Conditions for cash dividends 1. The distributable profit for the year or half-year is positive and cash flow is abundant and the implementation of cash dividends will not affect the Company's subsequent continuous operation; 2. The audit firm issues a standard unqualified audit report on the Company's financial report for that year or half-year; 3. No major investment plans or major cash expenditures have occurred (excluding projects funded by raised capital). Major investment plans or major cash expenditures refer to: The cumulative expenditure for external investment asset acquisition or equipment purchase by the Company in the next twelve months reaches or exceeds 30% of the Company's latest audited total assets.(IV) On the condition that a sufficient cash dividend distribution is ensured the Company may use stock dividends for profit distribution based on the cumulative distributable profit capital reserves and cash flow status while ensuring the minimum cash dividend ratio and a reasonable share capital scale to keep the expansion of share capital in line with performance growth.(V) While complying with the Company's profit distribution principles meeting the conditions for cash dividends and ensuring the Company's normal operation and long-term development the Company should actively distribute dividends in cash. When the net profit for the latest fiscal year is positive and the undistributed profits at the end of the year in both the consolidated and parent Company financial statements are positive the cumulative cash dividend amount for the last three fiscal years shall not be less than 30% of the average annual net profit for the last three fiscal years or not less than RMB 50 million. (VI) The Company's Board of Directors may propose an interim cash dividend based on the Company's profitability and funding needs. When the Company holds its annual shareholders' meeting to review the annual profit distribution plan it may review and approve the conditions maximum ratio and maximum amount for the next year's interim cash dividend. The upper limit for the next year's interim dividend reviewed at the annual shareholders' meeting shall not exceed the net profit attributable to shareholders of the listed Company for the corresponding period. The Board of Directors will formulate a specific interim dividend plan based on the resolution of the shareholders' meeting and in compliance with the profit distribution conditions.(VII) After the Company's shareholders' meeting makes a resolution on the profit distribution plan or after the Company's Board of Directors formulates a specific plan based on the conditions and upper limit for the next year's interim dividend approved at the annual shareholders' meeting the distribution of dividends (or shares) must be completed within 2 months.(VIII) The Company may not distribute profits under the following circumstances. 672025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 1. The audit report for the most recent year is a non-unqualified opinion or an unqualified opinion with a paragraph on material uncertainty related to going concern. 2. The asset-liability ratio is higher than 65%. Special description of cash dividend policy Whether it complies with the provisions of the Articles of Association or the requirements of the resolutions of the Yes shareholders' meeting: Whether the dividend standard and proportion are explicit and Yes clear: Whether the relevant decision-making procedures and Yes mechanisms are complete: Whether the independent directors have performed their duties Yes and played their due role: If the Company does not distribute cash dividends specific reasons as well as the measures to be taken to enhance investor Not applicable returns should be disclosed: Whether the minority shareholders have the opportunity to fully express their opinions and demands and whether their Yes legitimate rights and interests have been fully protected: Whether the cash dividend policy is adjusted or changed and whether the conditions and procedures are compliant and Not applicable transparent: During the reporting period the Company made a profit and the profit available to shareholders of the parent company was positive but no cash dividend distribution plan was put forward.□Applicable □Not applicable Profit distribution and capitalization of capital reserve during the reporting period □Applicable □Not applicable Bonus shares for every ten shares(Shares) 0 Cash dividend for every ten shares (Yuan)(Tax-included) 0.32 A total number of shares as the distribution basis(shares) 602762596 Cash dividend amount (yuan including tax 19288403.07 Other means (such as repurchase of shares) cash dividend 0.00 amount (yuan) Total cash dividend (yuan including tax) 19288403.07 Distributable profit (yuan) 347646697.47 Proportion of cash dividend in the distributable profit 100% Cash dividend distribution policy When the company's development stage is in the growth period and there are major capital expenditure arrangements when the profit distribution is carried out the proportion of cash dividends in this profit distribution should be at least 20%.Detailed explanation of the profit distribution or capital reserve transfer plan The profit distribution plan for 2025 is as follows: based on the Company's total share capital of 602762596 shares as of December 31 2025 a cash dividend of RMB 0.32 (tax inclusive) per 10 shares will be distributed to all shareholders. The total amount of cash dividends to be distributed is RMB 19288403.07 (tax inclusive). The Company will not distribute bonus shares or convert capital reserves into share capital in 2025. 682025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 10. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership Plan or Other Employee Incentive Measures □Applicable □Not applicable During the reporting period the Company had no equity incentive plan employee stock ownership plan or other employee incentive measures and their implementation. 11. Construction and implementation of the internal control system during the reporting period (1) Construction and implementation of internal control In accordance with the Basic Standard for Enterprise Internal Control and its Supporting Guidelines the Company has established a comprehensive risk management and internal control organizational system which is the responsibility of the Board of Directors under the overall leadership of the Compliance and Risk Management Committee with the Audit and Risk Control Department responsible for implementation and evaluation and with all departments and affiliated enterprises fully performing their duties to supervise and evaluate the Company's internal control management. Through the operation analysis and evaluation of the internal control system the Company effectively prevents risks in operation and management and promotes the realization of internal control objectives. (2) Details of major internal control defects found during the reporting period □Yes No□ 12. The Company's Management and Control over Its Subsidiaries During the Reporting Period The Company has formulated management systems such as the Measures for Property Rights Management Measures for Post- Investment Management and the List of Rights and Responsibilities between the Company and Nanshan Power Plant and its controlled enterprises which can clarify authority define responsibilities improve efficiency optimize resource allocation and standardize enterprise management meeting the needs of the Company's overall development strategy.Problems Subsequent Integration Measures taken Solution Company name Integration plan encountered in planned progress for solution progress integration solution Completed the As of comprehensive December 31 integration of 2025 all Shenzhen relevant Shenzhen Nanshan Power integration Nanshan Power Energy work has been Energy Technology completed: the None Not applicable Not applicable Not applicable Technology (Sichuan) Co. core team and (Sichuan) Co.Ltd. in terms of key positions Ltd.personnel are in place allocation financial financial accounting and system statements are 692025 Annual Report of Shenzhen Nanshan Power Co. Ltd. unification fully integrated institutional into the optimization Company's and business system the synergy organizational ensuring its structure and incorporation governance into the mechanism are Company's operating unified smoothly and management business system. processes are synergistic with the Company's overall strategy.Abnormalities in management and control over subsidiaries □Yes No□ 13. Internal Control Evaluation Report or Internal Control Audit Report (1) Self-evaluation report on internal control Disclosure date of appraisal report on April 15 2026 internal control Disclosure index of appraisal report on 2025 Annual Internal Control Evaluation Report Cninfo website internal control http://www.cninfo.com.cn The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the 78.34% company's consolidated financial statements The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on 79.37% the company's consolidated financial statements Standards of Defects Evaluation Category Financial Report Non-financial Report Material deficiency: Under a major Material deficiency: Under a major business activity several consolidated business activity several consolidated companies have material weaknesses; or companies have material weaknesses; or a few consolidated companies have a few consolidated companies have material weaknesses but the companies material weaknesses but the companies with material weaknesses are the main with material weaknesses are the main participants in that major business participants in that major business Qualitative standard activity. activity.Significant deficiency: Under a major Significant deficiency: Under a major business activity a few consolidated business activity a few consolidated companies have material weaknesses companies have material weaknesses and the companies with material and the companies with material weaknesses are not the main participants weaknesses are not the main participants in that major business activity; or several in that major business activity; or several 702025 Annual Report of Shenzhen Nanshan Power Co. Ltd. consolidated companies have moderate consolidated companies have moderate deficiencies; or a few consolidated deficiencies; or a few consolidated companies have moderate deficiencies companies have moderate deficiencies but the companies with moderate but the companies with moderate deficiencies are the main participants in deficiencies are the main participants in that major business activity. that major business activity.General deficiency: Under a major General deficiency: Under a major business activity a few consolidated business activity a few consolidated companies have moderate deficiencies companies have moderate deficiencies and the companies with moderate and the companies with moderate deficiencies are not the main participants deficiencies are not the main participants in that major business activity; or each in that major business activity; or each consolidated Company only has ordinary consolidated Company only has ordinary deficiencies; or there are no internal deficiencies; or there are no internal control deficiencies under the major control deficiencies under the major business activity and internal control business activity and internal control deficiencies only exist in non-major deficiencies only exist in non-major business activities. business activities.Material deficiency: Misstatement Material deficiency: Direct loss amount amount ≥ 0.5% of the total assets of the ≥ 0.5% of the total assets of the consolidated financial statements. consolidated financial statements.Significant deficiency: 0.2% of the total Significant deficiency: 0.2% of the total assets of the consolidated financial assets of the consolidated financial Quantitative standard statements ≤ Misstatement amount < statements ≤ Direct loss amount < 0.5% 0.5% of the total assets of the of the total assets of the consolidated consolidated financial statements. financial statements.General deficiency: Misstatement General deficiency: Direct loss amount < amount < 0.2% of the total assets of the 0.2% of the total assets of the consolidated financial statements. consolidated financial statements.Number of major defects in financial 0 reporting (a) Number of major defects in non financial 0 reporting (a) Number of important defects in financial 0 reporting (a) Number of important defects in non 0 financial reporting (a) (2) Internal Control audit report □Applicable □Not applicable Considerations in Audit Report on Internal Control The Accounting Firm believes that Shenzhen Nanshan Power Co. Ltd. has maintained effective internal control over financial reporting in all material respects in accordance with the Basic Standard for Enterprise Internal Control and related regulations.Disclosure date of audit report Disclosed Index of audit report of internal control April 15 2026 2025 Annual Internal Control Audit Report Cninfo website Internal audit report's opinion http://www.cninfo.com.cn Type of audit report on internal control Standard and unqualified opinion Whether there is significant defection non-financial report No Has the CPAs issued a qualified auditor's report of internal control.□Yes No□ 712025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors □Yes□ No Whether a non-standard internal control audit opinion was issued for the reporting period or the previous year □Yes No□ 14. Rectification of Self-examination Issues from the Special Action on Corporate Governance of Listed Companies The self-examination and rectification of the special action on corporate governance of listed companies was completed in 2021.During the reporting period the Company strictly complied with the relevant provisions of laws and regulations closely focused on its development strategy diligently performed its obligations and exercised its powers conscientiously implemented the resolutions of the shareholders' meetings actively and effectively carried out the work of the Board of Directors and effectively safeguarded the legitimate rights and interests of the Company and all shareholders. 15. Environmental Information Disclosure Whether the listed Company and its major subsidiaries are included in the list of enterprises legally required to disclose environmental information □Yes□ No Number of enterprises included in the list of enterprises legally required to disclose environmental information 1 (number) No Enterprise name Query index for the environmental information disclosure report Enterprise Environmental Information Disclosure System of Nanshan Power Plant of Shenzhen Nanshan 1 Guangdong Provincial Department of Ecology and Environment Power Co. Ltd.https://www-app.gdeei.cn/gdeepub/front/dal/report/list The Company shall comply with the disclosure requirements for the power supply industry as set out in the Guidelines for Self- Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure Main Main Verifi Exces Name of pollutant pollutant Emission (mg/Nm3) ed sive Emissio Emission Total company and and Emissio port Implemented total emissi n port concentrat emissi or specific specific n way distribution pollutant emission emissi on number ion on subsidiary pollutant pollutant condition standards on(To condit type name ns) ion Centrali Shenzhen zed Within the Implementing the Nanshan Nitrogen Nitrogen emissio Nanshan <15 "Shenzhen Blue" 36.82 686.2 3 None Power Co. oxides oxides n from Power Plant mg/m3 emission standard tons 5 tons Ltd. boiler site <15mg/m3 stacks The Company generates electricity using clean energy natural gas which does not produce soot or sulfur dioxide emissions. It is not a key regulatory unit for water pollution and its sewage outlets are general discharge points with intermittent emissions for which no emission limits for water pollutants have been set.Environmental incidents involving the listed Company 722025 Annual Report of Shenzhen Nanshan Power Co. Ltd. None 16. Social Responsibilities In 2025 although the Company faced numerous challenges in production operation and management it courageously undertook its social responsibilities. Despite aging units declining efficiency and high costs the Company actively ensured power supply and diligently fulfilled its due social responsibilities within its capabilities. In terms of production safety the Company persistently focused on production safety made every effort to ensure the safe and stable operation of power production and actively explored the establishment of a production safety management model adapted to its transformation and development. It optimized and improved its internal production safety management system and mechanisms and carried out various tasks in production safety technical supervision and innovation management in an orderly manner achieving the safety goal of "Five-No". In terms of environmental protection the Company strictly abided by national and local environmental regulations consistently adhered to the development concept of clean power generation effectively implemented all environmental protection work met environmental emission standards and had no environmental pollution accidents. In terms of charitable assistance the Company thoroughly implemented the central government's strategic decision to implement the rural revitalization strategy fulfilled the task of providing targeted assistance to towns and villages for rural revitalization and dispatched a resident assistance staff member. At the same time it actively played a unique role in consumption-based assistance achieving a cumulative amount of about RMB 150000 in consumption-based assistance during the reporting period through forms such as purchasing agricultural products from poverty-stricken areas. 17. Consolidation and Expansion of the Achievements of Poverty Alleviation and Rural Revitalization In 2025 the Company thoroughly implemented the central government's strategic decision to implement the rural revitalization strategy fulfilled the task of providing targeted assistance to towns and villages for rural revitalization and dispatched a resident assistance staff member. At the same time it actively played a unique role in consumption-based assistance achieving a cumulative amount of about RMB 150000 in consumption-based assistance during the reporting period through forms such as purchasing agricultural products from poverty-stricken areas. 732025 Annual Report of Shenzhen Nanshan Power Co. Ltd. V. Important Matters 1. Fulfillment of Commitments (1) Commitments made by the Company's actual owner 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 as of the end of the reporting period □Applicable □Not applicable During the reporting period there were no commitments made by the Company's actual controller shareholders related parties acquirers the Company or other related parties that were fulfilled within the reporting period or remained unfulfilled as of the end of the reporting period. (2) The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the forecast period the company has assets or projects meet the original profit forecast made and the reasons explained □Applicable □Not applicable (3) Performance commitments involving the Company □Applicable □Not applicable 2. Particulars about the Non-operating Occupation of Funds by the Controlling Shareholder □Applicable □Not applicable 3. Illegal Provision of Guarantees for External Parties □Applicable □Not applicable 4. Explanation of the Board of Directors on the Latest "Non-standard Audit Report" □Applicable □Not applicable 5. Explanation of the Board of Directors and Independent Directors (if any) on the "Modified Audit Report" of the Accounting Firm for the Reporting Period □Applicable □Not applicable 6. Explain Change of the Accounting Policy Accounting Estimate and Measurement Methods as Compared with the Financial Reporting of Last Year □Applicable □Not applicable During the reporting period the Company had no accounting policies changes in accounting estimates or corrections of significant accounting errors. 742025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 7. Explain Change of the Consolidation Scope as Compared with the Financial Reporting of Last Year □Applicable □Not applicable 1. On December 16 2024 the Company signed a Share Transfer Agreement with Zhuozhi Fund to acquire 5.6% shares in Sunpower Tech (Jiangsu) Group Co. Ltd. and transferred the acquired shares to its wholly-owned subsidiary New Power Company.In June 2025 Zhuozhi Fund completed its liquidation and business deregistration procedures. In accordance with the Accounting Standards for Business Enterprises from the date of Zhuozhi Fund's business deregistration the entity is no longer included in the scope of the Company's consolidated financial statements. 2. As approved by the eighth ad hoc meeting of the tenth Board of Directors and the fifth ad hoc meeting of the tenth Board of Supervisors held in May 2025 the Company acquired a 75% equity stake (corresponding to a registered capital of RMB 56.25 million) in Sichuan Ruinan from Shenzhen Clou Electronics Co. Ltd. for a consideration of RMB 18337500. The equity transfer price was paid by assuming and repaying the debt of RMB 18337500 owed by Shenzhen Clou Electronics Co. Ltd. to Sichuan Ruinan. In July 2025 Sichuan Ruinan was renamed Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. and was included in the scope of the Company's consolidated financial statements.According to the provisions of Article 6 Clause 6.1 of the "Equity Transfer Agreement" and in conjunction with the "Special Audit Report on the Operating Results of the 75% Equity Transaction Project of Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. during the Transition Period" (Zhi Tong Zhuan Zi [2025] No. 441C019665) issued by Grant Thornton China (Special General Partnership) Shenzhen Branch which was jointly recognized by the Company and Shenzhen Clou Electronics Co.Ltd. Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. incurred a loss of RMB 2396286.64 from the base date to the closing date. Accordingly Shenzhen Clou Electronics Co. Ltd. should pay the Company compensation of RMB 1797214.98. On September 29 2025 the Company received the full amount of this transition period compensation. After deducting the aforementioned transition period compensation the actual cost of this equity investment was RMB 16540300. 8. Engagement/Disengagement of CPAs CPAs currently engaged ShineWing Certified Public Accountants (Special General Name of the domestic CPAs Partnership) Remuneration for domestic accounting firm (RMB 10000) 61 Successive years of the domestic CPAs offering auditing services Name of CPA LI Wenqian ZHANG Zijian Continuous years of audit services of certified public 1 accountants of domestic public accounting firms Has the CPAs been changed in the current period □Yes□ No Was the accounting firm changed during the audit period □Yes No□ Were the approval procedures followed for the change of the accounting firm □Yes□ No Detailed explanation of the change of employment and accounting firm Lixin Zhonglian Certified Public Accountants (Special General Partnership) provided annual audit services to the Company from 2019 to 2024 (the audit project partner and other signing certified public accountants it assigned did not continuously undertake the 752025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Company's audit business for more than 5 years). During this period it issued standard unqualified audit opinions on the Company's annual financial reports and internal control over financial reporting. In accordance with the Administrative Measures for the Selection and Appointment of Accounting Firms by State-owned Enterprises and Listed Companies and comprehensively considering the Company's development needs and the independence and objectivity of its audit work based on the results of competitive negotiation and as approved by the Company's second ad hoc shareholders' meeting of 2025 the Company changed its audit firm for the year 2025.The Company has communicated with both the predecessor and successor annual audit firms regarding the change of the annual audit firm and both have clearly expressed that they shall have no objections.Description of the CPAs financial advisers or sponsors engaged for internal control auditing □Applicable □Not applicable During the year the Company engaged ShineWing Certified Public Accountants (Special General Partnership) as its internal control audit firm for the year 2025 paying a total internal control audit fee of RMB 200000. 9. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report □Applicable □Not applicable 10. Relevant Matters of Bankruptcy Reorganization □Applicable □Not applicable None 11. Matters of Important Lawsuit and Arbitration □Applicable □Not applicable Implementati Basic Amount Whether to Litigation(ar Litigation(ar on of situation of involved form bitration)trial Disclosure Disclosure bitration)pro litigation(arb litigation(arb (RMB estimated results and date index gress itration)judg itration) 10000) liabilities impact ments Not material Litigation disclosure standard and other litigation did No material Not 292.7 No Case closed Executed not meet impact applicable specific disclosure standards 12. Situation of Punishment and Rectification □Applicable □Not applicable None 762025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 13. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers □Applicable □Not applicable During the reporting period the Company and its largest shareholder had no cases of failing to comply with effective court judgments or having significant outstanding debts that were overdue. They maintained a good credit standing. During the reporting period the Company had no controlling shareholder or actual controller. 14. Material Related Transactions (1) Related transactions in connection with daily operation □Applicable □Not applicable Pricin Amou Settle Prevai g nt of Ratio Appro Relate Type Conte Price ment ling princi relate of ved d of nt of of Excee metho marke Relate ples d simila transa partie relate relate relate ds d of t price Disclo Disclo d of party r ction s to d d d appro relate for sure sure relatio relate transa transa quota the party party party ved d simila date index nship d ctions ction (RMB transa transa transa transa quota party r party (RMB amou 1000 ctions ctions ction ctions transa transa transa 1000 nt 0) ctions ctions ctions 0) Provi Prope Shenz ding Anno rty hen Relate servic Annu unce mana Not April Energ d es to Fair Marke 653.5 460.0 al ment geme 1.63% Yes applic 23 y legal relate price t price 2 0 settle No.: nt able 2025 Corpo entity d ment 2025- servic ration partie 014 es s Provi Energ ding Anno Shenz y Relate servic Mont unce hen mana Not April d es to Fair Marke 169.4 150.0 hly ment MTC geme 0.42% Yes applic 23 legal relate price t price 6 0 settle No.: Co. nt able 2025 entity d ment 2025- Ltd. servic partie 014 es s Shenz hen Recei Provi Eco- ving ding Single Anno city servic Relate event - unce Green es Not April d venue Fair Marke transa ment Techn from 0.61 0.00% 1.50 No applic 23 legal s price t price ction No.: ology relate able 2025 entity materi settle 2025- & d als ment 014 Cultur partie etc.e Co. s Ltd.Sichu Relate Recei Solar- Mont Anno Not April an d ving storag Fair Marke 215.8 215.8 hly unce 0.64% No applic 23 Ruina legal servic e- price t price 0 0 settle ment able 2025 n entity es chargi ment No.: 772025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Electr from ng 2025- ic relate energ 014 Power d y Const partie servic ructio s e EPC n projec Engin t eering Co.Ltd.(This transa ction occurr ed before the Comp any was includ ed in the scope of the Comp any's consol idated financ ial statem ents) Artro n Art Purch (Grou asing Anno p) Relate goods unce Purch April Co. d from Fair Marke ment asing 0.00 0.00% 8.00 No 23 Ltd. legal relate price t price No.: goods 2025 and entity d 2025- its partie 014 subsid s iaries Aeros pace Purch Ou asing Single Hua Relate goods - Infor Purch Not d from Fair Marke transa matio asing 2.40 0.01% Yes applic legal relate price t price ction n goods able entity d settle Techn partie ment ology s Co.Ltd.Shenz Relate Provi Engin Mont Not hen d ding eering Fair Marke 278.6 hly 0.69% Yes applic Clou legal servic constr price t price 6 settle able Electr entity es to uction ment 782025 Annual Report of Shenzhen Nanshan Power Co. Ltd. onics relate servic Co. d es Ltd. partie s 1320. Total -- -- -- 835.3 -- -- -- -- -- 45 Detailed circumstances of large- None scale sales returns 1. In 2025 Shenzhen Server Energy Co. Ltd. a holding subsidiary of the Company continued to deepen the refined management of its property leasing business and took multiple measures to increase the property occupancy rate and profitability. The actual amount of property leasing and management services provided to the related party Shenzhen Energy Corporation in 2025 increased by 42.07% compared to the amount estimated at the beginning of the year. 2. Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. a holding subsidiary of the Company (included in the scope of the Company's consolidated financial statements in July 2025) signed the "Energy Storage Project Contract of Shangqiu Xinneng Photovoltaic Technology Co. Ltd." with the related party Shenzhen Clou Electronics Co.Ltd. in March 2024 to provide it with engineering construction services with a contract amount of RMB 2.7866 million. This contract was signed before Shenzhen Nanshan Power Actual performance during the Energy Technology (Sichuan) Co. Ltd. was consolidated so no estimate was made at the reporting period for routine beginning of 2025. The transaction was priced based on market principles the price was related-party transactions for fair and there was no harm to the interests of the Company and its shareholders.which a total amount was 3. Based on the Company's actual daily operational needs the Company did not purchase estimated by category for the goods from Artron Art (Group) Co. Ltd. and its subsidiaries in 2025; the actual amount of current period (if any) routine related-party transactions with Shenzhen Eco-city Green Technology & Culture Co.Ltd. decreased by 59.33% compared to the estimated amount; the Company purchased goods worth RMB 24000 from Aerospace Ou Hua Information Technology Co. Ltd. in 2025 a transaction for which no estimate was made at the beginning of 2025. The amounts of the aforementioned routine related-party transactions were small and did not have a significant impact on the Company's production operation and financial status. 4. The estimated routine related-party transactions between the Company and its related parties for 2025 are preliminary judgments based on past business operations and the annual business plan. The actual transaction amounts are subject to multiple factors such as changes in the market environment adjustments in business needs of both parties and project execution progress. It is a normal business practice for the actual amounts to differ from the estimated amounts and this shall not have a significant impact on the Company's daily operations and performance.Reasons for significant deviations between transaction prices and Not applicable market reference prices (if applicable) (2) Related-party transactions arising from asset acquisition or sale □Applicable □Not applicable Apprais Book Settlem Gains Pricing ed Content value of ent or Type of principl value of of the Transfe method losses Related related es of the Disclos Related related transfer r price of on the Disclos relation party related transfer ure party party red (RMB related transact ure date ship transact party red index transact assets 10000) party ion ions transact assets ion (RMB transact (RMB ions (RMB 10000) ions 10000) 10000) 792025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Acquisi tion of Determ 75% ined by equity both in parties Shenzh May Announ Sichuan through en Clou 2436.2 2452.9 17 cement Related Acquisi Ruinan negotiat By Electro 4 1 1654.0 2025 No.: legal tion of Electric ion assumi 0.00 nics (100% (100% 3 and 2025- entity equity Power based ng debt Co. equity) equity) July 15 021、 Constru on the Ltd. 2025 029 ction asset Engine apprais ering al Co. results Ltd.Reasons for significant differences between the transfer price and the book Not applicable value or appraised value (if any) This helps the Company achieve full coverage of engineering capabilities in both traditional power generation and new energy fields strengthens its full-chain service Impact on the Company's operating system of "investment construction operation management and maintenance" and results and financial status further enhances integrated energy service capabilities. From July to December 2025 it achieved a cumulative operating revenue of RMB 25265800 and a net profit of RMB 546200.If the relevant transaction involves performance commitments the Not applicable performance achievement during the reporting period (3) Related-party transitions with joint investments □Applicable □Not applicable Registered Total assets of Net assets of Net profit of Main capital of the the investee Name of the the investee the investee Related business of investee Company Co-investor investee Company Company relationship the investee company (RMB 10000) Company (RMB (RMB Company (RMB 10000)10000) 10000) Shenzhen Yuanzhi Energy Shenzhen Engaged in Storage Yuanzhi equity Private Zhongkai investment Equity Fund Energy investment Management Storage management Co. Ltd.Related legal Technology asset Shenzhen 40000 entity Innovation management Zhongke Private and other Incubation Equity Fund activities Equity Partnership through Investment (Limited private Fund Partnership) equity funds.Management Co. Ltd.Shenzhen 802025 Annual Report of Shenzhen Nanshan Power Co. Ltd. New-type Energy Storage Industry Equity Fund Partnership (Limited Partnership) China Science and Technology Development Co. Ltd. etc.Progress of major projects under construction of the None investee Company (if any) (4) Credits and liabilities with related parties □Applicable □Not applicable During the reporting period the Company had no related debt transactions. (5) Transactions with related finance company especially one that is controlled by the Company □Applicable □Not applicable None (6) Transactions between the financial company controlled by the Company and related parties □Applicable □Not applicable There is no deposit loan credit or other financial business between the financial company controlled by the Company and related parties. (7) Other significant related-party transactions □Applicable □Not applicable The Company had no other major related party transactions during the reporting period. 15. Significant Contracts and Execution (1) Entrustments contracting and leasing 1) Entrustment □Applicable □Not applicable No such cases in the reporting period. 2) Contracting □Applicable □Not applicable 812025 Annual Report of Shenzhen Nanshan Power Co. Ltd. No such cases in the reporting period. 3) Leasing □Applicable □Not applicable No such cases in the reporting period. (2) Other significant contract □Applicable □Not applicable The Company had no material guarantees during the reporting period. (3) Situation of Entrusted Finance 1)Situation of Entrusted Finance □Applicable □Not applicable Overview of entrusted wealth-management during the reporting period Unit: RMB 10000 Balance of entrusted wealth Product category Risk characteristics management during the Amount overdue reporting period Money market fund Low risk 0.00 0.00 The Company as a sole principal entrusts a financial institution to conduct asset management or invests in high-risk entrusted wealth management with low security and poor liquidity.□Applicable □Not applicable 2) Situation of Entrusted Loans □Applicable □Not applicable No such cases in the reporting period. (4) Other significant contract □Applicable □Not applicable No such cases in the reporting period. 16. Use of Raised Funds □Applicable □Not applicable The Company had no application of the raised capital in the reporting period. 17. Notes to Other Significant Matters □Applicable □Not applicable Matters related to the land of Nanshan Power Plant: In March 2026 the Company once again learned from the official website of the Planning and Natural Resources Bureau of Shenzhen Municipality about the Notice of the Municipal Planning and Natural 822025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Resources Bureau on Issuing the . According to the notice and its attachments the Shenzhen 2026 Annual Land Consolidation Plan still includes the land reservation and acquisition of the Company's subsidiary Nanshan Power Plant and related content with no substantive changes compared to the land consolidation plans disclosed in recent years. (For details please refer to the relevant announcements disclosed by the Company on Securities Times and cninfo.com.cn announcement No.: 2026-013) Except for the matters mentioned above there was no progress or change in the refundable amount of the Company's "Project Technical Transformation Benefit Fund" during the reporting period. 18. Significant Matters of the Company's Subsidiaries □Applicable □Not applicable Public transfer of generator units of Shenzhen Nanshan Power Zhongshan Company: On March 6 and June 4 2025 the Company disclosed the "Progress Announcement on the Re-listing and Transfer of Generator Unit-related Assets of the Holding Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd.". As of May 30 2025 Shenzhen Nanshan Power Zhongshan Company had received the full transfer price installment interest and value-added tax from Fujian Hengjing Investment Co. Ltd.totaling RMB 72253308.58. The public transfer of the generator units of Shenzhen Nanshan Power Zhongshan Company was successfully completed. (For details please refer to the relevant announcements disclosed by the Company on Securities Times and cninfo.com.cn announcement Nos.: 2024-068 069 070 075 2025-002 024) 832025 Annual Report of Shenzhen Nanshan Power Co. Ltd. VI. Changes in Shares and Shareholders 1. Changes in shares (1) Changes in shares Unit: Share Before the change Increase/decrease (+ -) After the Change Capitaliza Issuance Proportio Bonus tion of Proportio Quantity of new Others Subtotal Quantity n shares public n share reserve I. Shares with condition al subscripti on 1. State -owned shares 2. State- owned legal person shares 3. Other domestic shares Incl: Domest ic legal person shares Dom estic Natural Person shares 4. Foreign share Incl: Foreign legal person share Forei 842025 Annual Report of Shenzhen Nanshan Power Co. Ltd. gn Natural Person shares II. Shares with unconditi 6027625 6027625 100.00%100.00% onal 96 96 subscripti on 1. Common 3389081 3389081 56.23%56.23% shares in 50 50 RMB 2. Foreign 26385442638544 shares in 43.77% 43.77% 4646 domestic market 3. Foreign shares in foreign market 4. Other III. Total 60276256027625 of capital 100.00% 100.00% 9696 shares Reasons for share changed □Applicable □Not applicable Approval of Change of Shares □Applicable □Not applicable Ownership transfer of share changes □Applicable □Not applicable Progress on any share repurchase: □ Applicable √ Not applicable Progress on reducing the repurchased shares by means of centralized bidding: □ Applicable √ Not applicable Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period □Applicable □Not applicable Other information necessary to disclose for the company or need to disclosed under requirement from security regulators □Applicable □Not applicable (2) Change of shares with limited sales condition □Applicable □Not applicable 852025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 2. Securities Issue and Listing (1) Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period □Applicable □Not applicable (2) Change of asset and liability structure caused by change of total capital shares and structure □Applicable □Not applicable (3) About the existing employees’ shares □Applicable □Not applicable 3. Shareholders and Actual Controlling Shareholder (1) Number of shareholders and shareholding Unit: Share Total number of Total preferred Total Total number of preferred shareholder shareholder number of shareholders whose voting s at the end s with common right have been restored at of the restoration shareholder the end of the previous 48735 month from 63118 of voting 0 0 s at the end month before the the date of rights at the of the disclosure date of the disclosing end of the reporting annual report (if any) (see the annual reporting period Note 8) report period (if any) (see Note 8) Particulars about shares held above 5% by shareholders or top ten shareholders (Excluding shares lent through refinancing) Number of Amount of Number of share Name of Shareholdi Changes in Amount of Nature of shares held un- pledged/frozen the ng ratio reporting restricted shareholder at period - restricted shareholder (%) period shares held State of end shares held Quantity share HONG KONG Overseas NAM HOI Not Legal 15.28% 92123248 0 0 92123248 0 (INTERNA applicable person TIONAL) LTD Shenzhen Guangju State- Not 12.22%7366682400736668240 Industrial owned applicable Co. Ltd.Shenzhen Energy State- Not 10.80%6510613000651061300 Corporatio owned applicable n ZENG Domestic 1.19% 7159600 0 0 7159600 Not 0 862025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Ying Natural applicable person China Merchants Overseas Not Securities Legal 0.91% 5462154 24000 0 5462154 0 applicable (HK) Co. person Limited GUOTAI JUNAN Overseas SECURITI Not Legal 0.89% 5379880 -1212999 0 5379880 0 ES (HONG applicable person KONG) LIMITED BOCI Overseas SECURITI Not Legal 0.72% 4310566 -112500 0 4310566 0 ES applicable person LIMITED LISHERY Overseas Not NZHANMI Natural 0.69% 4163600 14200 0 4163600 0 applicable NG person Domestic HUANG Not Natural 0.64% 3866500 0 0 3866500 0 Yilong applicable person Domestic ZHANG Not Natural 0.55% 3300053 0 0 3300053 0 Yuexiang applicable person Strategy investors or general legal person becomes top 10 None shareholders due to rights issued (if applicable) (See Notes 3) Explanation on 1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI shareholders participating (INTERNATIONAL) LTD.in the margin trading 2. The Company is not aware of whether the other public shareholders mentioned above have any business related party relationships or are persons acting in concert.Above shareholders entrusting or entrusted None with voting rights or waiving voting rights Top 10 shareholders including the special None account for repurchase (if any) (see note 10) Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and shares locked by senior management) Share type Name of the shareholder Quantity of unrestricted shares held at the end of the reporting period Share type Quantity Foreign HONG KONG NAM HOI shares in (INTERNATIONAL) 92123248 92123248 domestic LTD market Common Shenzhen Guangju 73666824 shares in 73666824 Industrial Co. Ltd.RMB 872025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Common Shenzhen Energy 65106130 shares in 65106130 Corporation RMB Foreign shares in ZENG Ying 7159600 7159600 domestic market Foreign China Merchants shares in Securities (HK) Co. 5462154 5462154 domestic Limited market Foreign GUOTAI JUNAN shares in SECURITIES (HONG 5379880 5379880 domestic KONG) LIMITED market Foreign BOCI SECURITIES shares in 43105664310566 LIMITED domestic market Foreign shares in LISHERYNZHANMING 4163600 4163600 domestic market Common HUANG Yilong 3866500 shares in 3866500 RMB Foreign shares in ZHANG Yuexiang 3300053 3300053 domestic market Explanation on associated relationship or consistent action among the top 10 shareholders of non- 1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI restricted negotiable (INTERNATIONAL) LTD.shares and that between 2. The Company is not aware of whether the other public shareholders mentioned above have any the top 10 shareholders of related party relationships or are persons acting in concert.non-restricted negotiable shares and top 10 shareholders Explanation on shareholders participating in the margin trading None business(if any )(See Notes 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 top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.□Yes No□ 882025 Annual Report of Shenzhen Nanshan Power Co. Ltd. The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. (2) Controlling shareholder Nature of controlling shareholder: No controlling entity Type of controlling shareholder: Not applicable Explanation on the absence of a controlling shareholder The Company currently has no controlling shareholder as defined in the Company Law and the Rules Governing the Listing of Stocks.Changes of controlling shareholder in reporting period □Applicable □Not applicable No changes of controlling shareholder for the Company in reporting period. (3) Information about the controlling shareholder of the Company Nature of actual controller: No actual controller Type of actual controller: Not applicable Explanation on the absence of an actual controller The Company currently does not meet the criteria for identifying an actual controller of a listed Company as stipulated in the Company Law the Administrative Measures for the Acquisition of Listed Companies and the Rules Governing the Listing of Stocks.Whether there are shareholders holding more than 10% of the shares at the ultimate control level of the Company □Yes No□ □ Information on shareholders holding more than 5% of the shares at the ultimate control level of the Company □ No shareholder at the ultimate control level of the Company holds more than 5% of the shares The Company currently does not meet the criteria for identifying an actual controller of a listed Company as stipulated in the Company Law the Administrative Measures for the Acquisition of Listed Companies and the Rules Governing the Listing of Stocks. The Company's largest shareholder Shenzhen Energy Corporation directly holds 10.80% of the Company's shares and indirectly holds 15.28% through HONG KONG NAM HOI (INTERNATIONAL) LTD holding a total of 26.08% of the Company's shares. Changes of actual owner in reporting period □Applicable □Not applicable No changes of controlling shareholder for the Company in reporting period Block Diagram of the ownership and control relations between the company and the actual controller 892025 Annual Report of Shenzhen Nanshan Power Co. Ltd. The actual controller controls the company by means of trust or managing the assets in other way □Applicable □Not applicable (4) The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the company and its person acting in concert accounts for 80% of the number of shares held by the company □Applicable □Not applicable (5) Particulars about other legal person shareholders with over 10% share held □Applicable □Not applicable Main business Name of legal person Legal representative Date of incorporation Registered capital operations or shareholder /Leader management activities HONG KONG NAM HOI Investment and KONG Guoliang May 14 1985 HKD 15.33 million (INTERNATIONAL) shareholding LTD Establishment of industries power Shenzhen Guangju DENG Zhenwu May 31 1989 RMB 111.11 million investment (specific Industrial Co. Ltd.projects to be declared separately) etc.Development Shenzhen Energy production purchase KONG Guoliang July 15 1985 RMB 230971224.24 Corporation and sale of various conventional energy 902025 Annual Report of Shenzhen Nanshan Power Co. Ltd. sources (including electricity heat coal oil and gas) and new energy sources etc. (6) Situation of Share Limitation Reduction of Controlling Shareholders Actual Controllers Restructuring Party and Other Commitment Subjects □Applicable □Not applicable 4. Specific Implementation of Share Repurchase During the Reporting Period Progress in implementation of share repurchase □Applicable □Not applicable Implementation progress of reducing repurchased shares by centralized bidding □Applicable □Not applicable 5. Information on Preference Shares □Applicable □Not applicable The Company had no preferred shares in the reporting period. 912025 Annual Report of Shenzhen Nanshan Power Co. Ltd. VII. Bonds □Applicable □Not applicable 922025 Annual Report of Shenzhen Nanshan Power Co. Ltd. VIII. Financial Report Please refer to the attached financial statements and notes for Standard and unqualified opinion details.Signing date of the audit report April 13 2026 ShineWing Certified Public Accountants (Special General Name of audit institution Partnership) Financial Statements and Auditor's Report XYZH/2026SZAA4B0082 Contents LI Wenqian ZHANG Zijian Auditor’ s Report XYZH/2026SZAA4B0082 To all shareholders of Shenzhen Nanshan Power Co. Ltd.(I) Auditor's opinion We have audited the financial statements of Shenzhen Nanshan Power Co. Ltd. (hereinafter referred to as "Shenzhen Nanshan Power") which comprise the consolidated and parent Company Balance Sheet as at December 31 2025 the consolidated and parent Company Income Statement the consolidated and parent Company Statement of Cash Flows the consolidated and parent Company Statement of Changes in Shareholders' Equity for the year then ended and the related notes to the financial statements.In our opinion the accompanying financial statements are prepared in all material respects in accordance with the Accounting Standards for Business Enterprises and give a true and fair view of the consolidated and parent Company financial position of Shenzhen Nanshan Power as at December 31 2025 and of its consolidated and parent Company operating results and cash flows for the year then ended.(II) Basis for auditor's opinion We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are independent of Shenzhen Nanshan Power in accordance with the Code of Ethics for Chinese Certified Public Accountants and the independence requirements of the Code of Ethics for Chinese Certified Public Accountants applicable to audits of financial statements of public interest entities and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 932025 Annual Report of Shenzhen Nanshan Power Co. Ltd. (III) Key audit matters Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. 1. Revenue recognition Key audit matter How our audit addressed the key audit matter Our audit procedures related to the recognition of operating income included the following: 1. Evaluating the design and operating effectiveness of key internal controls related to revenue recognition; 2. For revenue from power generation and sales obtaining For details of the accounting policies on revenue recognition and and examining supporting evidence related to revenue an analysis of revenue please refer to the accounting policies recognition including power sales contracts and settlement described in Note 28 to "III. Significant Accounting Policies and statements and performing confirmation procedures on the Accounting Estimates" and Note 38 to "V. Notes to Items in the year-end balance of accounts receivable and the current Consolidated Financial Statements" in the notes to the period's operating income. Combined with the subsequent consolidated financial statements. collection of accounts receivable we confirmed the authenticity of the revenue from power generation and sales; In 2025 Shenzhen Nanshan Power's consolidated operating income was RMB 401681583.10 a decrease of 9.32% from the 3. For revenue from integrated energy services obtaining and previous period. reviewing the Company's accounting policies related to integrated energy services and assessing whether they As operating revenue is one of the Company's key performance comply with the new revenue standards. Understanding and indicators and there is an inherent risk of manipulating the evaluating the methods used by management to determine the timing of revenue recognition to achieve specific targets or progress of performance obligations and combining this with expectations we have identified operating income recognition as an examination of external evidence such as project a key audit matter.contracts delivery receipts acceptance reports and settlement documents to verify the reasonableness of the measurement of project performance progress thereby evaluating the compliance of the timing and period of revenue recognition for integrated energy services.Combined with confirmation procedures and subsequent collections we confirmed the authenticity and completeness 942025 Annual Report of Shenzhen Nanshan Power Co. Ltd. of the revenue from integrated energy services; 4. Performing substantive analytical procedures on operating income and gross profit to assess the reasonableness of the changes in operating revenue and gross profit margin for the current period; 5. Performing a cut-off test on operating income to assess whether operating revenue has been recorded in the appropriate accounting period; 6. Checking whether the information related to operating income has been appropriately presented and disclosed in the financial statements. 2. Recognition of gains from relocation compensation Key audit matter How our audit addressed the key audit matter We performed the following main audit procedures for the recognition of gains from relocation compensation: Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. has 1. Analyzing whether the recognition of relocation completed the reservation and acquisition of the land use right for compensation gains by Shenzhen Nanshan Power complies Parcel B in the three state-owned parcels located in Hengmen with the Accounting Standards for Business Enterprises and Industrial Zone Nanlang Street Cuiheng New Area Zhongshan regulatory requirements in accordance with the provisions of City and has completed the handover procedures with the CAS No. 42 - Non-current Assets Held for Sale Disposal Management Committee of Zhongshan Cuiheng New Area. Groups and Discontinued Operations its related application guidelines and the CSRC's Regulatory Rules Application In 2025 Shenzhen Nanshan Power recognized RMB Guidance - Accounting No. 3; 350592200 in land reservation and acquisition compensation for Parcel B with a final recognized cost and expense of RMB 2. Obtaining and inspecting the land reservation and 66469000 resulting in a net gain of RMB 284123200 from the acquisition contract analyzing and examining the contract land reservation and acquisition. terms and reviewing the agreements on the rights and obligations of all parties to the contract to verify the accuracy Due to the significant amount of the relocation compensation and of the timing of loss of control over the disposed assets; its material impact on the operating results of Shenzhen Nanshan Power for the year 2025 we have identified the recognition of 3. Inquiring and communicating with the management of gains from relocation compensation as a key audit matter. Shenzhen Nanshan Power (hereinafter referred to as management) to understand the progress of the relocation and the fulfillment of Shenzhen Nanshan Power's obligations; analyzing and evaluating the reasonableness of the relevant 952025 Annual Report of Shenzhen Nanshan Power Co. Ltd. accounting estimates and judgments made by management in recognizing the relocation compensation; 4. On-site inquiry and printing of the Certificate of Cancellation of State-owned Construction Land Use Right Registration，obtaining the acceptance and handoverdocuments for the relocated land parcels inspecting the land handover confirmation letter and verifying the handover land parcels and handover dates; 5. Reviewing the amount of relocation expenses incurred during the relocation period and the losses on disposal and scrapping of related assets to confirm whether the amount transferred to profit or loss is correct; 6. Conducting a site visit to the relocated land parcels to check the relocation progress and confirm whether the land is in a cleared state; 7. Reviewing the adequacy and appropriateness of the presentation and disclosure of the gains from relocation compensation in the financial statements.(IV) Other information The management of Shenzhen Nanshan Power (hereinafter referred to as management) is responsible for the other information. The other information comprises the information included in the 2025 annual report of Shenzhen Nanshan Power but does not include the financial statements and our auditor's report.Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information identified above and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.Based on the work we have performed if we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.(V) Responsibilities of management and those charged with governance for the financial statements The Company's management is responsible for preparing the financial statements in accordance with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation and for 962025 Annual Report of Shenzhen Nanshan Power Co. Ltd. designing implementing and maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements whether due to frauds or errors.In preparing the financial statements management is responsible for assessing the ability of Shenzhen Nanshan Power to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate Shenzhen Nanshan Power to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the financial reporting process of Shenzhen Nanshan Power.(VI) Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with auditing standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with auditing standards we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following procedures: (1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control. (2) Understand the internal control related to the audit so as to design appropriate audit procedures. (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management of the Company. (4) Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on Shenzhen Nanshan Power's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by auditing standards to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.However future events or conditions may cause the Company to cease to continue as a going concern. (5) Evaluate the overall presentation structure and content of the financial statements and whether the 972025 Annual Report of Shenzhen Nanshan Power Co. Ltd. financial statements represent the underlying transactions and events in a manner that achieves fair presentation. (6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within Shenzhen Nanshan Power to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding the planned scope and timing of the audit significant audit findings and other matters including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 982025 Annual Report of Shenzhen Nanshan Power Co. Ltd. (No text on this page) ShineWing Certified Public Accountants (Special Certified Public Accountant of China: LI General Partnership) Wenqian (Engagement partner) Certified Public Accountant of China: ZHANG Zijian Beijing China April 13 2026 992025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Financial Statements 1. Consolidated balance sheet Prepared by: Shenzhen Nanshan Power Co. Ltd.Unit: RMB Item December 31 2025 December 31 2024 Current asset: Monetary funds 141590339.04 478979221.66 Balances with clearing companies Loans to banks and other financial institutions Financial assets held for trading 341000000.00 Derivative financial assets Notes receivable Account receivable 109831397.29 67817025.91 Financings receivable Advances to suppliers 11052982.80 19062352.04 Premiums receivable Reinsurance accounts receivable Provision of cession receivable Other receivables 361729062.93 131831575.62 Including: Interest receivable Dividend receivable Financial assets purchased under resale agreements Inventories 37972909.48 80234374.79 Contract assets 21441671.72 95580.68 Assets held for sale 24582784.59 Non-current assets due within 1 year Other current assets 266262387.12 285528539.22 Total of current assets 1290880750.38 1088131454.51 Non-current assets: Loans and advances Debt investments Other debt investments Long-term receivables Long-term equity investments 196827515.83 90587521.44 Investment in other equity instruments 234179057.20 354798054.57 Other non-current financial assets Investment properties 1331453.08 1498009.84 Fixed assets 544902436.89 451203790.97 1002025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Construction in progress 3113338.75 6983713.85 Productive biological assets Oil and gas assets Right-of-use assets 28785337.19 6160020.43 Intangible assets 2041770.36 1349731.81 Development expenses Goodwill Long-term deferred expenses 6567159.05 5802861.77 Deferred income tax assets 4264858.88 625000.00 Other non-current assets 857135.84 5596476.40 Total of non-current assets 1022870063.07 924605181.08 Total of assets 2313750813.45 2012736635.59 Current liabilities Short-term borrowings 172094604.45 268615009.19 Borrowings from central bank Loans from banks and other financial institutions Financial liabilities held for trading Derivative financial liabilities Notes payable Accounts payable 42661594.09 14022157.61 Advances from customers Contract liabilities 130796.46 50000.00 Financial assets sold under repurchase agreements Absorption of deposits and interbank deposits Receivings from vicariously traded securities Receivings from vicariously sold securities Employee compensation payable 24759553.78 16052879.47 Taxes and surcharges payable 8531798.19 14348908.04 Other payables 33323386.05 15685234.29 Including: Interest payable Dividend payable 22500000.00 Handling service fee and commissions payable Reinsurance accounts payable Liabilities held for sale Non-current liabilities due within 1 7340810.744466835.32 year 1012025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Other current liabilities 2425298.89 107922984.82 Total of current liability 291267842.65 441164008.74 Non-current liabilities: Reserves for insurance contracts Long-term borrowings 168421492.31 Bonds payable Including: preferred shares Perpetual bonds Lease liabilities 24668020.16 2125910.18 Long-term payables Long-term employee compensations payable Estimated liabilities 364945.00 Deferred income 41913447.41 61522875.97 Deferred income tax assets 9846034.15 Other non-current liabilities Total non-current liabilities 245213939.03 63648786.15 Total of liability 536481781.68 504812794.89 Owners' equity: Stock capital 602762596.00 602762596.00 Other equity instruments Including: preferred shares Perpetual bonds Capital reserves 362767402.38 362770922.10 Less: treasury shares Other comprehensive income 31064057.20 1683054.57 Special reserves 410577.62 surplus reserve 332908397.60 332908397.60 General risk reserves Retained profits 347646697.47 185255604.81 Total equity attributable to owners of the 1677559728.271485380575.08 parent company Minor shareholders’ equity 99709303.50 22543265.62 Total owners' equity 1777269031.77 1507923840.70 Total liabilities and owners' equity 2313750813.45 2012736635.59 Legal representative: KONG Guoliang Chief Accountant:: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 2. Balance sheet of the parent company Unit: RMB 1022025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Item December 31 2025 December 31 2024 Current asset: Monetary funds 23174572.46 408963344.55 Financial assets held for trading 341000000.00 Derivative financial assets Notes receivable Account receivable 42375469.95 26641173.11 Financings receivable Advances to suppliers 21412712.54 17256415.27 Other receivables 568495288.27 614157681.93 Including: Interest receivable Dividend receivable 22500000.00 Inventories 36421637.94 76391256.94 Contract assets Assets held for sale Non-current assets due within 1 year Other current assets 242489343.26 236196142.37 Total of current assets 1275369024.42 1379606014.17 Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 721590421.11 568752639.83 Investment in other equity instruments 110615000.00 Other non-current financial assets Investment properties Fixed assets 336942043.04 351782033.61 Construction in progress 1654419.67 Productive biological assets Oil and gas assets Right-of-use assets 1811770.63 6160020.43 Intangible assets 1874171.18 1234568.04 Development expenses Goodwill Long-term deferred expenses 6567159.05 5802861.77 Deferred income tax assets Other non-current assets 857135.84 857135.84 Total of non-current assets 1069642700.85 1046858679.19 Total of assets 2345011725.27 2426464693.36 Current liabilities 1032025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Short-term borrowings 142071687.79 106590219.19 Financial liabilities held for trading Derivative financial liabilities Notes payable 132000000.00 Accounts payable 4789658.17 7836364.14 Advances from customers Contract liabilities 130796.46 Employee compensation payable 15991534.16 10343784.13 Taxes and surcharges payable 6898103.90 4194761.79 Other payables 323690071.27 249849964.57 Including: Interest payable Dividend payable Liabilities held for sale Non-current liabilities due within 1 2125910.154466835.32 year Other current liabilities Total of current liability 495697761.90 515281929.14 Non-current liabilities: Long-term borrowings Bonds payable Including: preferred shares Perpetual bonds Lease liabilities 2125910.18 Long-term payables Long-term employee compensations payable Estimated liabilities Deferred income 41223194.07 60705055.43 Deferred income tax assets Other non-current liabilities Total non-current liabilities 41223194.07 62830965.61 Total of liability 536920955.97 578112894.75 Owners' equity: Stock capital 602762596.00 602762596.00 Other equity instruments Including: preferred shares Perpetual bonds Capital reserves 289963039.70 289963039.70 Less: treasury shares Other comprehensive income Special reserves 410577.62 1042025 Annual Report of Shenzhen Nanshan Power Co. Ltd. surplus reserve 332908397.60 332908397.60 Retained profits 582046158.38 622717765.31 Total owners' equity 1808090769.30 1848351798.61 Total liabilities and owners' equity 2345011725.27 2426464693.36 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 3. Consolidated income statement Unit: RMB Item For the year 2025 For the year 2024 I. Total operating revenue 401681583.10 442971955.85 Including: operating revenue 401681583.10 442971955.85 Interest income Premiums earned Revenue from handling service fee and commissions: II. Total operating costs 431332768.32 546888840.95 Including: operating costs 315239698.94 415446732.39 Interest expenses Handling service fee and commissions expenditures Surrender value Net amount of compensation payout Net provision for insurance contract liabilities Policy dividends Reinsurance costs Taxes and surcharges 3890042.33 4621861.58 Sales expenses 3222722.58 3155604.58 Management expenses 88440650.34 95507099.03 R&D expenses 17061249.79 21341778.27 Financial expenses 3478404.34 6815765.10 Including: Interest expenses 4244754.09 11829545.09 Interest income 1093690.21 5185764.60 Add: Other income 14934298.68 6867023.46 Investment income ("-" for 28835338.9584488299.90 losses) Including: investment income from associates and joint 12445694.39 6326077.76 ventures Financial assets measured at amortized cost cease to be 1052025 Annual Report of Shenzhen Nanshan Power Co. Ltd. recognized as income Exchange gains (losses expressed with "-") Net exposure hedging gains (loss expressed with "-") Gains from changes in fair value ("-" for losses) Loss from credit impairment -4791874.97-11381410.65 (losses expressed with "-" ) Asset impairment loss (losses -26366298.90-66389539.68 expressed with "-") Gains from disposal of assets 284413055.16163529971.97 (losses expressed with "-") III. Operating profit ("-" for loss) 267373333.70 73197459.90 Add: Non-Operating income 844799.91 553068.40 Less: Non-Operating expenses 2003725.51 135334.48 IV. Total profits ("-" for total losses) 266214408.10 73615193.82 Less: Income tax expenses 11011695.18 9687769.34 V. Net profit ("-" for net loss) 255202712.92 63927424.48 (I) Classified by operating sustainability 1. Net profit from continued 255202712.9263927424.48 operation (losses expressed with "-") 2. Net profit from discontinued operations (losses expressed with "-") (II) Classified by ownership Including: Net profit attributable to 161038200.4021908828.57 the owners of parent company Minority shareholders’ equity 94164512.52 42018595.91 VI. Other comprehensive income net of 28014678.494183054.57 tax Other comprehensive income net of tax attributable to owners of parent 28014678.49 4183054.57 company (I) Other comprehensive income that cannot be reclassified into profit or 28014678.49 4183054.57 loss later 1. Re- measurement of defined benefit plans of changes in net debt or net assets 2. Other comprehensive income under the e quity method investee can not be reclassi fied into profit or loss. 3. Changes in the fair value of 28014678.494183054.57 investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5. Other (II) Other comprehensive income that will be reclassified into profit or loss 1062025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 1. Other comprehensive income under the e quity method investee can be reclassified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3. Other comprehensive income arising from the reclassification of financial assets 4. Allowance for credit impairments in investments in other debt obligations 5. Reserve for cash flows 6. Translation differences in currency financial statements 7. Other Net of profit of other comprehensive i ncome attributable to Minority shareholders’ equity VII. Total comprehensive income 283217391.41 68110479.05 Total comprehensive income attributable to the owner of the parent 189052878.89 26091883.14 company Total comprehensive income 94164512.5242018595.91 attributable minority shareholders VIII. Earnings per share (I) Basic earnings per share 0.2672 0.0363 (II) Diluted earnings per share 0.2672 0.0363 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 4. Income statement of the parent company Unit: RMB Item For the year 2025 For the year 2024 I. Operating revenue 280795800.65 379476727.51 Less: Operating cost 252340397.77 342873813.14 Taxes and surcharges 2076957.38 2310988.15 Sales expenses 568530.33 1051335.73 Management expenses 62745998.99 64842087.48 R&D expenses 12938935.85 16117457.80 Financial expenses 18885097.95 -10921290.44 Including: Interest expenses 5239079.39 10825393.90 Interest income -13583121.97 22013162.19 Add: Other income 14539008.34 5471255.16 Investment income ("-" for 40678642.3235323947.41 losses) Including: investment income 7919718.35 6563378.70 1072025 Annual Report of Shenzhen Nanshan Power Co. Ltd. from associates and joint ventures Gains from derecognition of financial assets measured by amortized costs (losses expressed with "-") Net exposure hedging gains (loss expressed with "-") Gains from changes in fair value ("-" for losses) Loss from credit impairment -19897.15 (losses expressed with "-" ) Asset impairment loss (losses -26366298.90-718034.64 expressed with "-") Gains from disposal of assets 295289.14 (losses expressed with "-") II. Operating profits ("-" for loss) -39928663.01 3574792.72 Add: Non-Operating income 2.39 453068.40 Less: Non-Operating expenses 736259.46 124049.48 III. Total profit ("for" total loss) -40664920.08 3903811.64 Less: Income tax expenses 6686.85 IV. Net profit ("-" for net loss) -40671606.93 3903811.64 (I) Net profit from continued operation -40671606.933903811.64 ("-" for net loss) (II) Net profit from discontinued operations ("-" for net loss) V. Net after-tax of other comprehensive income (I) Other comprehensive income that cannot be reclassified into profit or loss later 1. Re- measurement of defined benefit plans of changes in net debt or net assets 2. Other comprehensive income under the e quity method investee can not be reclassi fied into profit or loss. 3. Changes in the fair value of investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5. Other (II) Other comprehensive income that will be reclassified into profit or loss 1. Other comprehensive income under the e quity method investee can be reclassified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3. Other comprehensive income arising from the reclassification of 1082025 Annual Report of Shenzhen Nanshan Power Co. Ltd. financial assets 4. Allowance for credit impairments in investments in other debt obligations 5. Reserve for cash flows 6. Translation differences in currency financial statements 7. Other VI. Total comprehensive income -40671606.93 3903811.64 VII. Earnings per share (I) Basic earnings per share -0.0675 0.0065 (II) Diluted earnings per share -0.0675 0.0065 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 5. Consolidated statement of cash flows Unit: RMB Item For the year 2025 For the year 2024 I. Cash flows from operating activities Cash received from sales of goods or 393121527.71531827063.92 rending of services Net increase in deposits from customers and deposits with banks and other financial institutions Net increase in borrowings from central bank Net increase in borrowings from banks and other financial institutions Cash received from receiving insurance premium of original insurance contract Net cash received from reinsurance business Net increase in deposits and investments from policyholders Cash received from interests handling service fee 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 returned Other cash received relevant to 18791341.7820645841.50 operating activities Sub-total of cash inflows from operating 411912869.49552472905.42 activities 1092025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Cash paid for purchasing of 263239718.99384674207.34 merchandise and services Net increase in loans and advances to customers Net increase in deposits with central bank and with banks and other financial institutions Cash paid for original insurance contract claims Net increase in loans to banks and other financial institutions Cash paid for interests handling service fee and commissions Cash paid for policy dividends Cash paid to staffs or paid for staffs 111006552.35 111037016.22 Taxes paid 29399447.91 29330485.19 Other cash paid for business activities 25068672.09 65066962.72 Sub-total of cash outflows from 428714391.34590108671.47 operating activities Net cash flow from operating activities -16801521.85 -37635766.05 II. Cash flow generated by investing Cash received from investment 8698892.26 retrieving Cash received as investment gains 11505125.64 5517908.37 Net cash retrieved from disposal of fixed assets intangible assets and other 69343778.53 77304322.46 long-term assets Net cash received from disposal of 57632411.85 subsidiaries or other operational units Cash received in connection with 17559407.20452000000.00 significant investment activities Sub-total of cash inflows from investing 107107203.63592454642.68 activities Cash paid to acquire and construct fixed assets intangible assets and other 199610464.92 16298619.89 long-term assets Cash paid as investment 1950000.00 50000000.00 Net increase in pledge loans Net cash received from subsidiaries and other operational units Cash paid related to other investment 292181765.23226000000.00 activities Sub-total of cash outflows from investing 493742230.15292298619.89 activities Net cash flow from investing activities -386635026.52 300156022.79 III. Cash flow generated by financing Cash received as investment 49000000.00 Including: Cash received as investment from minor shareholders Cash received as loans 344393748.85 435026209.56 1102025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Other financing –related cash received Sub-total of cash inflows from financing 344393748.85484026209.56 activities Cash to repay debts 268558036.22 571104234.83 Cash paid as dividend profit or 3346191.588221444.61 interests Including: dividends and profit paid to minority shareholders by subsidiaries Cash paid related with financing 6727211.006927038.90 activities Sub-total of cash outflows from 278631438.80586252718.34 financing activities Net cash flow from financing activities 65762310.05 -102226508.78 IV. Influence of exchange rate alternation -137275.0638454.14 on cash and cash equivalents V. Net increase in cash and cash -337811513.38160332202.10 equivalents Plus: beginning balance of cash 471067121.66310734919.56 equivalents VI. Ending balance of cash equivalents 133255608.28 471067121.66 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 6. The statement of cash flows of the parent company Unit: RMB Item For the year 2025 For the year 2024 I. Cash flows from operating activities Cash received from sales of goods or 298931754.10474669435.32 rending of services Tax returned Other cash received relevant to 28963075.84207618244.62 operating activities Sub-total of cash inflows from operating 327894829.94682287679.94 activities Cash paid for purchasing of 239242649.73305890582.62 merchandise and services Cash paid to staffs or paid for staffs 71701034.93 79309098.79 Taxes paid 12583972.60 20426634.39 Other cash paid for business activities 59924741.03 83733542.41 Sub-total of cash outflows from 383452398.29489359858.21 operating activities Net cash flow from operating activities -55557568.35 192927821.73 II. Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 5716146.30 5517908.37 Net cash retrieved from disposal of 471400.00 fixed assets intangible assets and other 1112025 Annual Report of Shenzhen Nanshan Power Co. Ltd. long-term assets Net cash received from disposal of subsidiaries or other operational units Cash received in connection with 115395658.34626093917.54 significant investment activities Sub-total of cash inflows from investing 121111804.64632083225.91 activities Cash paid to acquire and construct fixed assets intangible assets and other 2943890.46 1597378.94 long-term assets Cash paid as investment 70000000.00 50000000.00 Net cash received from subsidiaries and other operational units Cash paid related to other investment 328783825.14252170000.00 activities Sub-total of cash outflows from investing 401727715.60303767378.94 activities Net cash flow from investing activities -280615910.96 328315846.97 III. Cash flow generated by financing Cash received as investment Cash received as loans 142000000.00 150413251.22 Other financing –related ash received 85401556.64 60775644.30 Sub-total of cash inflows from financing 227401556.64211188895.52 activities Cash to repay debts 238558036.22 571104234.83 Cash paid as dividend profit or 1059885.677422777.94 interests Cash paid related with financing 37397565.9727698183.34 activities Sub-total of cash outflows from 277015487.86606225196.11 financing activities Net cash flow from financing activities -49613931.22 -395036300.59 IV. Influence of exchange rate alternation -1361.56567.77 on cash and cash equivalents V. Net increase in cash and cash -385788772.09126207935.88 equivalents Plus: beginning balance of cash 408963344.55282755408.67 equivalents VI. Ending balance of cash equivalents 23174572.46 408963344.55 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 1122025 Annual Report of Shenzhen Nanshan Power Co. Ltd. 7. Consolidated statements of changes in owners' equity The current period Unit: RMB For the year 2025 Equity attributable to owners of the parent company Other equity instruments Ge Less ner Minor Item : Other Total al sharehol Stock Perp owners' Preferr Capital treas comprehe Special Surplus Retained etual Other risk Others Subtotal ders’ capital ed reserves ury nsive reserves reserve profits equity equity bond s res shares shar income s erves es 15079 6027625362770916830533290818525514853822543 I. Ending balance last year 23840. 96.0022.104.57397.60604.810575.08265.62 70 Add: Change of accounting policy Correcting of previous errors Others 15079 II. Beginning balance as at 6027625 3627709 168305 332908 185255 148538 22543 23840. the beginning of this year 96.00 22.10 4.57 397.60 604.81 0575.08 265.62 70 III. Changes in amount for the current period 293810 410577 162391 192179 77166 269345 -3519.72 (decreases expressed with 02.63 .62 092.66 153.19 037.88 191.07 "-") (I) Total comprehensive 280146 161038 189052 94164 283217 income 78.49 200.40 878.89 512.52 391.41 1132025 Annual Report of Shenzhen Nanshan Power Co. Ltd. (II) Capital contributed or 55015 55015 reduced by owners 25.36 25.36 1. Ordinary shares contributed by owners 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 5501555015 4. Others 25.3625.36 -- (III) Profit distribution 22500 22500 000.00000.00 1. Providing of surplus reserves 2. Withdrawal of general risk reserves -- 3. Profit distributed to 2250022500 owners (or shareholders) 000.00000.00 4. Others (IV) Internal transfer of owners' equity 1. Conversion of capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Making up losses by surplus reserves. 4. Changes in benefit plans transferred to retained 1142025 Annual Report of Shenzhen Nanshan Power Co. Ltd. earnings 5. Transfer of other comprehensive income into retained earnings 6. Others 410577410577.410577 (V) Special reserves.6262.62 1. Withdrawal in the current 54331 543314 54331 period 44.37 4.37 44.37 2. Amount used in the 50225 502256 50225 current period 66.75 6.75 66.75 1366 1352827156927156 (VI) Others -3519.72 324.1 92.266.6896.68 4 17772 IV. Balance as at the end of 6027625 3627674 310640 410577 332908 347646 167755 99709 69031. the current period 96.00 02.38 57.20 .62 397.60 697.47 9728.27 303.50 77 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia Amount in previous period Unit: RMB For the year 2024 Minor Total sharehol Equity attributable to owners of the parent company owners' ders’ equity equity Item Other equity Less: Other instruments General Stock Capital treasur comprehe Special Surplus Retained Pref Pe risk Others Subtotal capital Othe reserves y nsive reserves reserve profits erre rp reserves rs shares income d et 1152025 Annual Report of Shenzhen Nanshan Power Co. Ltd. shar ua es l bo nd s -- 6027623627703329081633467145928139081 I. Ending balance last year 2500000. 684753 596.00922.10397.6076.248691.943361.65 0030.29 Add: Change of accounting policy Correcting of previous errors Others -- II. Beginning balance as at 602762 362770 332908 1633467 145928 139081 2500000.684753 the beginning of this year 596.00 922.10 397.60 76.24 8691.94 3361.65 0030.29 III. Changes in amount for the current period 4183054. 2190882 260918 910185 117110 (decreases expressed with "- 57 8.57 83.14 95.91 479.05 ") (I) Total comprehensive 2190882 219088 420185 639274 income 8.57 28.57 95.91 24.48 (II) Capital contributed or 490000 490000 reduced by owners 00.00 00.00 1. Ordinary shares 490000 490000 contributed by owners 00.00 00.00 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 4. Others 1162025 Annual Report of Shenzhen Nanshan Power Co. Ltd. (III) Profit distribution 1. Providing of surplus reserves 2. Withdrawal of general risk reserves 3. Profit distributed to owners (or shareholders) 4. Others (IV) Internal transfer of owners' equity 1. Conversion of capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Making up losses by surplus reserves. 4. Changes in benefit plans transferred to retained earnings 5. Transfer of other comprehensive income into retained earnings 6. Others (V) Special reserves 1. Withdrawal in the current 5767486. 576748 576748 period 06 6.06 6.06 2. Amount used in the 5767486. 576748 576748 current period 06 6.06 6.06 4183054.418305418305 (VI) Others 574.574.57 1172025 Annual Report of Shenzhen Nanshan Power Co. Ltd. IV. Balance as at the end of 602762 362770 1683054. 332908 1852556 148538 225432 150792 the current period 596.00 922.10 57 397.60 04.81 0575.08 65.62 3840.70 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 8. Statement of changes in owner's equity of parent company The current period Unit: RMB For the year 2025 Other equity instruments Other Item Less: Total Stock Capital compreh Special Surplus Retained Other treasury owners' capital Preferre Perpetua Others reserves ensive reserves reserve profits s d shares l bonds shares equity income 60276259628996303332908362271718483517 I. Ending balance last year.009.7097.60765.3198.61 Add: Change of accounting policy Correcting of previous errors Others II. Beginning balance as at the 602762596 28996303 3329083 622717 18483517 beginning of this year .00 9.70 97.60 765.31 98.61 1182025 Annual Report of Shenzhen Nanshan Power Co. Ltd. III. Changes in amount for the - - 410577.6 current period (decreases 406716 40261029.expressed with "-") 06.93 31 -- (I) Total comprehensive income 406716 40671606. 06.9393 (II) Capital contributed or reduced by owners 1. Ordinary shares contributed by owners 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 4. Others (III) Profit distribution 1. Providing of surplus reserves 2. Profit distributed to owners (or shareholders) 3. Other (IV) Internal transfer of owners' equity 1. Conversion of capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Making up losses by surplus reserves. 4. Changes in benefit plans 1192025 Annual Report of Shenzhen Nanshan Power Co. Ltd. transferred to retained earnings 5. Transfer of other comprehensive income into retained earnings 6. Others 410577.6 (V) Special reserves 410577.62 2 1. Withdrawal in the current 4847602. 4847602.5 period 56 6 2. Amount used in the current 4437024. 4437024.9 period 94 4 (VI) Others IV. Balance as at the end of the 602762596 28996303 410577.6 3329083 582046 18080907 current period .00 9.70 2 97.60 158.38 69.30 Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 1202025 Annual Report of Shenzhen Nanshan Power Co. Ltd. Amount in previous period Unit: RMB For the year 2024 Other equity instruments Less: Item Other Capital treasur Special Surplus Retained Other Total owners' Stock capital Preferre Perpetu Other comprehensireserves y reserves reserve profits s equity d shares al bonds s ve income shares I. Ending balance 602762596. 289963039. 332908397. 618813953. 1844447986.last year 00 70 60 67 97 Add: Change of accounting policy Correcti ng of previous errors Others II. Beginning balance as at the 602762596. 289963039. 332908397. 618813953. 1844447986.beginning of this 00 70 60 67 97 year III. Changes in amount for the current period 3903811.643903811.64 (decreases expressed with "- ") (I) Total comprehensive 3903811.64 3903811.64 income (II) Capital contributed or reduced by owners 1. Ordinary shares contributed by 1212025 Annual Report of Shenzhen Nanshan Power Co. Ltd. owners 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 4. Others (III) Profit distribution 1. Providing of surplus reserves 2. Profit distributed to owners (or shareholders) 3. Other (IV) Internal transfer of owners' equity 1. Conversion of capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Making up losses by surplus reserves. 4. Changes in 1222025 Annual Report of Shenzhen Nanshan Power Co. Ltd. benefit plans transferred to retained earnings 5. Transfer of other comprehensive income into retained earnings 6. Others (V) Special reserves 1. Withdrawal in 5750504.9 5750504.93 the current period 3 2. Amount used in 5750504.9 5750504.93 the current period 3 (VI) Others IV. Balance as at 602762596. 289963039. 332908397. 622717765. 1848351798.the end of the 0070603161 current period Legal representative: KONG Guoliang Chief Accountant: KONG Guoliang Chief financial officer: ZHANG Xiaoyin Head of the Finance Department: Lin Xiaojia 123Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Shenzhen Nanshan Power Co. Ltd.Notes to the financial statements for the year 2025 (Unless otherwise specified all amounts are denominated in RMB Yuan) I. Basic information of the Company 1. Company overview Shenzhen Nanshan Power Co. Ltd. (hereinafter referred to as the "Company" or "the Company") is a joint-stock limited Company reorganized from a foreign-invested enterprise on November 25 1993 with the approval of the General Office of the Shenzhen Municipal People's Government under document Shen Fu Ban Fu [1993] No. 897.With the approval of the Shenzhen Securities Management Office under document Shen Zheng Ban Fu [1993] No. 179 the Company issued 40 million RMB ordinary shares to domestic investors and 37 million domestically listed foreign-invested shares to overseas investors on January 3 1994.On July 1 1994 and November 28 1994 the RMB ordinary shares (A-shares) and domestically listed foreign-invested shares (B-shares) issued by the Company were listed on the Shenzhen Stock Exchange successively.The Company's principal business is power generation and sales and integrated energy services.The Company's registered address is No. 2097 Yueliangwan Avenue Nanshan District Shenzhen Guangdong Province and its head office is located at 16/F and 17/F Han-Tang Building Overseas Chinese Town Nanshan District Shenzhen Guangdong Province.These financial statements were approved for issue by the Company's Board of Directors on April 13 2026. 2. Scope of consolidated financial statements As of December 31 2025 the subsidiaries included in the scope of the Company's consolidated financial statements are as follows: Shareholding Name of subsidiary (enterprise) Remark ratio % Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. (referred to as 80.00 "Shenzhen Nanshan Power Zhongshan Company") Shenzhen Nanshan Power Gas Turbine Engineering Technology Co. 100.00 Ltd. (referred to as "Shenzhen Nanshan Power Engineering Company") Shenzhen Nanshan Power Environmental Protection Co. Ltd. (referred 100.00 to as "Shenzhen Nanshan Power Environmental Protection Company") Shenzhen Server Energy Co. Ltd. (referred to as "Server Company") 50.00 Shenzhen New Power Industrial Co. Ltd. (referred to as "New Power 100.00 Company") Shennan Energy (Singapore) Co. Ltd. (referred to as "Singapore 100.00 Company") Hong Kong Hing Tak Shing Co. Limited (referred to as "Hing Tak 100.00 Shing") Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co. Ltd. 51.00 (referred to as "Shenzhen Nanshan Power Xiwan Company") 124Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Shareholding Name of subsidiary (enterprise) Remark ratio % Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. 75.00 (referred to as "Energy Technology Company") Note: (1) During the reporting period Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) has been liquidated and deregistered and is no longer included in the scope of consolidated financial statements from the date of deregistration; (2) During the reporting period the Company acquired 75% equity of Sichuan Ruinan by assuming its debts. In July 2025 Sichuan Ruinan was renamed Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd.and was included in the scope of the Company's consolidated financial statements.II. Basis for the preparation of the financial report The Company prepares its financial statements on a going concern basis in accordance with the actual transactions and events and in compliance with the Accounting Standards for Business Enterprises - Basic Standard and various specific accounting standards application guides for accounting standards for business enterprises interpretations of accounting standards for business enterprises and other relevant regulations (collectively referred to as "Accounting Standards for Business Enterprises") issued by the Ministry of Finance as well as the disclosure requirements of the Rules for the Compilation and Reporting of Information Disclosure by Companies Publicly Offering Securities No. 15 - General Provisions on Financial Reports issued by the China Securities Regulatory Commission.The Company has no events or conditions that raise significant doubts about its ability to continue as a going-concern ability for the twelve months following the end of the reporting period.III. Important accounting policies and accounting estimates Based on its actual production and operation characteristics the Company has formulated a number of specific accounting policies and accounting estimates in accordance with the relevant Accounting Standards for Business Enterprises which are mainly reflected in the provision for bad debts of accounts receivable (Note III 11(4)) inventories (Note III 12) fixed assets (Note III 18) long-term deferred expenses (Note III 24) revenue recognition and measurement (Note III 28) and special reserves (Note III 32). 1. Statement of compliance with accounting standards for business enterprises These financial statements comply with the requirements of the Accounting Standards for Business Enterprises and give a true and complete view of the consolidated and parent Company's financial position as of December 31 2025 as well as their operating results and cash flows for the year 2025. 2. Accounting period 125Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 An accounting year runs from January 1 to December 31 of the Gregorian calendar. 3. Business cycle The Company's operating cycle is 12 months which is used as the basis for classifying assets and liabilities as current or non-current. 4. The base currency of account The Company uses Renminbi (RMB) as its functional currency. 5. Importance criteria determination method and selection basis Item Material criteria Significant individual provision for bad Original book value is greater than RMB 1 million debts of accounts receivable Significant provision for bad debts of The amount of individual provision for bad debts of accounts accounts receivable recovered or reversed receivable recovered or reversed exceeds RMB 1 million in the current period Write-off of significant accounts The write-off amount of individual accounts receivable exceeds receivable RMB 1 million Important construction in progress The individual amount is greater than RMB 5 million Significant estimated liabilities The individual amount is greater than RMB 5 million The book value of a long-term equity investment in a single joint Significant joint ventures and associates venture or associate accounts for 5% or more of the consolidated total assets 6. Accounting treatment of business combinations under the common control and under non-common control (1) Business combination under common control A business combination under common control is one in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination and that control is not transitory.As the acquirer the Company measures the assets and liabilities (including goodwill formed from the ultimate controlling party's acquisition of the acquiree) obtained in a business combination under common control at their carrying amounts in the ultimate controlling party's consolidated financial statements on the acquisition date. The difference between the carrying amount of the net assets acquired and the carrying amount of the consideration paid for the combination (or the total par value of the shares issued) is adjusted against the share premium in capital reserve. If the share premium in capital reserve is insufficient to absorb the difference the remaining balance is adjusted against retained earnings. (2) Business combination not under common control A business combination not under common control is one in which the combining parties are 126Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 not ultimately controlled by the same party or parties both before and after the combination.As the acquirer in a business combination not under common control the Company measures the acquiree's identifiable assets liabilities and contingent liabilities at their fair values on the acquisition date. The excess of the cost of the combination over the acquirer's interest in the fair value of the acquiree's identifiable net assets is recognized as goodwill. If the cost of the combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets the acquirer first reassesses the fair values of the identifiable assets liabilities and contingent liabilities acquired and the cost of the combination. If after reassessment the cost of the combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets the difference shall be recognized in non-operating income for the current period of the combination.Directly attributable costs incurred for a business combination are expensed as incurred; transaction costs of issuing equity or debt securities for a business combination are included in the initial recognition amount of the equity or debt securities. 7. Criteria for determining control and preparation methods for consolidated financial statements (1) Scope of consolidation The scope of consolidation of the Company's consolidated financial statements is determined on the basis of control and includes the Company and all subsidiaries controlled by the Company.The Company determines control based on whether it has power over the investee enjoys variable returns from its involvement with the investee and has the ability to use its power over the investee to affect the amount of its returns. (2) Consolidation procedures The Company shall prepare its consolidated financial statements based on its own financial statements and those of its subsidiaries along with other relevant information. In preparing the consolidated financial statements the Company treats the entire enterprise group as a single accounting entity and reflects the overall financial position operating results and cash flows of the enterprise group in accordance with the recognition measurement and presentation requirements of the relevant Accounting Standards for Business Enterprises and under uniform accounting policies.The accounting policies and accounting periods adopted by all subsidiaries included in the scope of consolidation are consistent with those of the Company. If a subsidiary's accounting policies or accounting period are inconsistent with the Company's necessary adjustments are made in accordance with the Company's accounting policies and accounting period when preparing the consolidated financial statements. For subsidiaries acquired through a business combination not under common control their financial statements are adjusted based on the fair value of their 127Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 identifiable net assets on the acquisition date. For subsidiaries acquired through a business combination under common control their financial statements are adjusted based on the carrying amounts of their assets and liabilities (including goodwill arising from the ultimate controlling party's acquisition of the subsidiary) in the ultimate controlling party's financial statements.The portion of a subsidiary's owners' equity net profit or loss for the current period and comprehensive income for the current period attributable to minority interests is presented separately under the owners' equity section in the consolidated Balance Sheet under the net profit section in the consolidated Income Statement and under the total comprehensive income section respectively. Any current-period loss attributable to minority interests that exceeds the minority interests' share in the subsidiary's opening owners' equity shall be charged against minority interests. 1) Addition of a subsidiary or business During the reporting period if a subsidiary or business is added through a business combination under common control the opening balances of the consolidated balance sheet shall be adjusted.The income expenses and profits of the subsidiary or business from the beginning of the combination period to the end of the reporting period are included in the consolidated Income Statement. The cash flows of the subsidiary or business from the beginning of the combination period to the end of the reporting period are included in the consolidated Statement of Cash Flows.At the same time the relevant items in the comparative financial statements are adjusted as if the combined reporting entity had existed since the date the ultimate controlling party began to exercise control.If control over an investee under common control is obtained due to additional investments or other reasons it is treated as if the combining parties had existed in their current state since the ultimate controlling party began to exercise control and adjustments are made accordingly. For equity investments held before gaining control over the acquiree any related profit or loss other comprehensive income and other changes in net assets recognized from the later of the date the original equity was acquired and the date the acquirer and the acquiree came under common control up to the combination date shall be reversed against the opening retained earnings of the comparative reporting period or the current period's profit or loss respectively.During the reporting period if a subsidiary or business is added through a business combination not under common control the opening balances of the consolidated balance sheet are not adjusted.The income expenses and profits of the subsidiary or business from the acquisition date to the end of the reporting period are included in the consolidated Income Statement. The cash flows of the subsidiary or business from the acquisition date to the end of the reporting period shall be included in the consolidated Statement of Cash Flows.If control over an investee not under common control is obtained due to additional investments or other reasons the Company remeasures its previously held equity interest in the acquiree at its 128Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 fair value on the acquisition date. The difference between the fair value and the carrying amount shall be recognized as investment income for the current period. If the previously held equity interest in the acquiree involves other comprehensive income under the equity method and other changes in owners' equity other than net profit or loss other comprehensive income and profit distribution the related other comprehensive income and other changes in owners' equity are transferred to investment income for the period in which the acquisition occurs except for other comprehensive income arising from the remeasurement of the net liability or net asset of the defined benefit plan of the investee. 2) Disposal of subsidiaries or businesses * General accounting treatment If the Company disposes of a subsidiary or business during the reporting period the income expenses and profits of that subsidiary or business from the beginning of the period to the date of disposal are included in the consolidated income statement; the cash flows of that subsidiary or business from the beginning of the period to the date of disposal shall be included in the consolidated statement of cash flows.When control over an investee is lost due to the disposal of a portion of equity investment or for other reasons the Company remeasures the remaining equity investment at its fair value on the date of losing control. The difference between the sum of the consideration received from the disposal of the equity and the fair value of the remaining equity and the sum of the share of the net assets of the original subsidiary continuously calculated from the acquisition date or merger date based on the original shareholding ratio and the goodwill is recognized as investment income for the period in which control is lost. Other comprehensive income or other changes in owners' equity other than net profit or loss other comprehensive income and profit distribution related to the original subsidiary's equity investment shall be transferred to investment income for the current period upon loss of control except for other comprehensive income arising from the remeasurement of net liabilities or net assets of the defined benefit plan by the investee.If the Company loses control due to a decrease in its shareholding ratio resulting from a capital increase in a subsidiary by other investors it shall be accounted for in accordance with the principles described above.* Disposal of a subsidiary in stages If the disposal of an equity investment in a subsidiary shall be carried out in stages through multiple transactions until control is lost and the terms conditions and economic effects of these transactions meet one or more of the following criteria it usually indicates that the multiple transactions should be accounted for as a package transaction: I These transactions are simultaneous or in contemplation of each other; 129Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 II These transactions as a whole are necessary to achieve a complete commercial outcome; III The occurrence of one transaction is contingent on the occurrence of at least one other transaction; IV A transaction is not economically viable when considered individually but is economically viable when considered together with the others.If the transactions for disposing of the equity investment in a subsidiary until control is lost constitute a package transaction the Company shall account for all such transactions as a single transaction of disposing of a subsidiary and losing control. However before control is lost the difference between the proceeds from each disposal and the corresponding share of the subsidiary's net assets for the disposed investment shall be recognized as other comprehensive income in the consolidated financial statements and is transferred to the profit or loss for the period in which control is lost upon the loss of control.If the transactions for disposing of an equity investment in a subsidiary until control is lost do not constitute a package transaction before the loss of control the partial disposal of the equity investment in the subsidiary shall be accounted for in accordance with the relevant policies for partial disposal without loss of control; upon the loss of control it shall be accounted for in accordance with the general accounting treatment for the disposal of a subsidiary. 3) Purchase of minority interests in a subsidiary The difference between the new long-term equity investment acquired by the Company from the purchase of minority interests and the share of the subsidiary's net assets that should be enjoyed calculated continuously from the acquisition date (or merger date) based on the newly increased shareholding ratio is adjusted against the share premium in capital reserve in the consolidated Balance Sheet. If the share premium in capital reserve is insufficient to absorb the difference the retained earnings shall be adjusted. 4) Partial disposal of equity investment in a subsidiary without loss of control In the case of a partial disposal of a long-term equity investment in a subsidiary without loss of control the difference between the disposal proceeds received and the corresponding share of the subsidiary's net assets calculated continuously from the acquisition date or merger date shall be adjusted against the share premium in capital reserve in the consolidated Balance Sheet. If the share premium in capital reserve is insufficient to absorb the difference the retained earnings shall be adjusted. 8. Classification of joint arrangements and accounting treatment for joint operations When the Company is a party to a joint arrangement and has rights to the assets and obligations for the liabilities relating to the arrangement it is a joint operation. 130Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 The Company shall recognize the following items in relation to its interest in a joint operation and accounts for them in accordance with the relevant Accounting Standards for Business Enterprises: (1) Recognize the assets held individually by the Company and recognize the jointly held assets based on the Company's share; (2) Recognize the liabilities incurred individually by the Company and recognize the jointly incurred liabilities based on the Company's share; (3) Recognize the revenue from the sale of the Company's share of the output of the joint operation; (4) Recognize the revenue generated by the joint operation from the sale of output based on the Company's share; (5) Recognize the expenses incurred individually and recognize the expenses incurred by the joint operation based on the Company's share.For the Company's accounting policy for investments in joint ventures see Note III (XV) Long-term Equity Investments. 9. Cash and cash equivalents Cash in the Company's Statement of Cash Flows refers to cash on hand and deposits that can be readily drawn on demand. Cash equivalents in the Statement of Cash Flows refer to investments that are held for not more than 3 months are highly liquid are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 10. Foreign currency transactions and translation of foreign currency financial statements (1) Foreign currency transactions Upon initial recognition the Company's foreign currency transactions are translated into the functional currency amount using the spot exchange rate on the date of the transaction. At the Balance Sheet date foreign currency monetary items are translated into the functional currency using the spot exchange rate at the Balance Sheet date. The resulting exchange differences are recognized directly in profit or loss for the current period except for those arising from foreign currency specific borrowings for the acquisition construction or production of qualifying assets which are capitalized. (2) Translation of foreign currency financial statements When preparing consolidated financial statements the Company translates the financial statements of foreign operations into RMB. Among them: asset and liability items in the foreign currency Balance Sheet are translated at the spot exchange rate at the Balance Sheet date; owner's 131Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 equity items except for "retained earnings" are translated at the spot exchange rate at the date of the transaction; income and expense items in the Income Statement are translated at the spot exchange rate on the date of the transaction. Upon disposal of a foreign operation the foreign currency translation differences related to that foreign operation are transferred from owner's equity items to profit or loss for the period of disposal. Foreign currency cash flows are translated at the spot exchange rate on the date of the cash flow. The effect of exchange rate changes on cash shall be presented separately in the Statement of Cash Flows. 11. Financial instruments (1) Recognition and derecognition of financial instruments The Company recognizes a financial asset or financial liability when it becomes a party to the contractual provisions of a financial instrument.A financial asset (or part of a financial asset or part of a group of similar financial assets) is derecognized i.e. removed from the Balance Sheet when the following conditions are met: 1) the rights to receive cash flows from the financial asset have expired; 2) the rights to receive cash flows from the financial asset have been transferred or an obligation to pay the received cash flows in full to a third party without material delay under a 'pass-through' arrangement has been assumed; and either substantially all the risks and rewards of the ownership of the financial asset have been transferred or although substantially all the risks and rewards of ownership of the financial asset have been neither transferred nor retained control of the financial asset has been relinquished.A financial liability shall be derecognized when the obligation is discharged cancelled or expires. If an existing financial liability is replaced by another financial liability from the same lender on substantially different terms or the terms of an existing liability are substantially modified such a replacement or modification is treated as a derecognition of the original liability and the recognition of a new liability and the difference is recognized in profit or loss for the current period.Financial assets purchased or sold in a regular way are recognized and derecognized on a trade date basis. The trade date is the date on which the Company commits to purchase or sell the financial asset. (2) Classification and measurement of financial assets At initial recognition the Company's financial assets shall be classified as financial assets at amortized cost financial assets at fair value through other comprehensive income or financial assets at fair value through profit or loss based on the Company's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. All relevant financial assets affected shall be reclassified only when the Company changes its business model for managing financial assets.In assessing the business model the Company considers factors including how the performance 132Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 of the financial assets shall be evaluated and reported to key management personnel the risks that affect the performance of the financial assets and the way in which those risks are managed and the way in which the relevant business managers are compensated. In assessing whether the objective is to collect contractual cash flows the Company analyzes and judges the reasons for timing of frequency of and value of sales of financial assets before their maturity date.Financial assets are measured at fair value at initial recognition. However accounts receivable or notes receivable arising from the sale of goods or provision of services that do not contain a significant financing component or for which the financing component of not more than one year is not considered are initially measured at the transaction price.For financial assets measured at fair value with changes recognized in profit or loss related transaction costs are directly recognized in profit or loss. For other categories of financial assets related transaction costs are included in their initial recognized amount.The subsequent measurement of financial assets depends on their classification: 1) Financial assets measured at amortized cost A financial asset shall be classified as a financial asset at amortized cost if it meets both of the following conditions: * The business model for managing the financial asset is to collect contractual cash flows. * The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. For such financial assets interest income is recognized using the effective interest method and gains or losses arising from derecognition modification or impairment are recognized in profit or loss. The Company's financial assets in this category mainly include: cash and cash equivalents accounts receivable notes receivable and other receivables. 2) Investments in debt instruments measured at fair value with changes recognized in other comprehensive income A financial asset shall be classified as a financial asset at fair value through other comprehensive income if it meets both of the following conditions: * The Company's business model for managing the financial asset is to both collect contractual cash flows and sell the financial asset. * The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. For such financial assets interest income is recognized using the effective interest method. Except for interest income impairment losses and foreign exchange differences which are recognized in profit or loss other changes in fair value are recognized in other comprehensive income. When the financial asset shall be derecognized the cumulative gains or losses previously recognized in other comprehensive income are reclassified from other comprehensive income to profit or loss. 3) Investments in equity instruments measured at fair value with changes recognized in other 133Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 comprehensive income The Company makes an irrevocable election to designate certain non-trading equity instrument investments as financial assets at fair value through other comprehensive income. The Company only recognizes relevant dividend income (excluding dividend income that is clearly a recovery of part of the investment cost) in profit or loss and subsequent changes in fair value are recognized in other comprehensive income with no provision for impairment required. When the financial asset shall be derecognized the cumulative gains or losses previously recognized in other comprehensive income are reclassified from other comprehensive income to retained earnings. The Company's financial assets in this category are other equity instrument investments. 4) Financial assets measured at fair values through current profit or loss Financial assets other than those classified as financial assets at amortized cost and those classified or designated as financial assets at fair value through other comprehensive income are classified by the Company as financial assets at fair value through profit or loss. Such financial assets shall be subsequently measured at fair value and all changes in fair value are recognized in profit or loss except for those related to hedge accounting. The Company's financial assets in this category mainly include: trading financial assets.Contingent consideration recognized by the Company in a business combination not under common control that constitutes a financial asset shall be classified as a financial asset at fair value through profit or loss. (3) Classification recognition basis and measurement methods of financial liabilities 1) Financial liabilities measured at fair value with changes recognized in profit or loss Financial liabilities at fair value through profit or loss include trading financial liabilities derivative financial liabilities etc. which are initially measured at fair value and related transaction costs are recognized in profit or loss. These financial liabilities shall be subsequently measured at fair value with changes in fair value recognized in profit or loss.Upon derecognition the difference between its carrying amount and the consideration paid shall be recognized in profit or loss. 2) Financial liabilities measured at amortized costs Financial liabilities at amortized cost include short-term borrowings notes payable accounts payable other payables long-term borrowings bonds payable and long-term payables which are initially measured at fair value and related transaction costs shall be included in the initial recognized amount.Interest calculated using the effective interest method during the holding period shall be recognized in profit or loss. 134Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Upon derecognition the difference between the consideration paid and the carrying amount of the financial liability shall be recognized in profit or loss. (4) Impairment of financial instruments The Company considers all reasonable and supportable information including forward- looking information to estimate expected credit losses for financial assets at amortized cost and financial assets (debt instruments) at fair value through other comprehensive income on an individual or portfolio basis. The measurement of expected credit losses depends on whether the credit risk of the financial asset has increased significantly since initial recognition.Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows that should be received by the Company under the contract and all cash flows expected to be received discounted at the original effective interest rate i.e. the present value of all cash shortfalls.For all notes receivable contract assets accounts receivable and lease receivables formed from daily operating activities such as selling goods and rendering services that are governed by the revenue standards the Company applies a simplified measurement approach to measure the loss provision based on the expected credit losses over the entire lifetime. For other notes receivable receivables financing and other receivables classified into portfolios the Company calculates expected credit losses by referencing historical credit loss experience combined with current conditions and forecasts of future economic conditions through the exposure at default and the expected credit loss rate over the next 12 months or the entire lifetime.For all other various receivables and temporary payments except for those using the simplified measurement approach and those that are purchased or originated credit-impaired the Company assesses on the Balance Sheet date whether the credit risk of the relevant financial instruments has increased significantly since initial recognition and measures their loss provision and recognizes expected credit losses and their changes separately. 1) Recognition criteria and provision methods for bad debt provision for receivables that are individually significant and for which bad debt provision is made on an individual basis The Company performs individual impairment tests on individually significant receivables.Financial assets that are not impaired in individual tests shall be included in a portfolio of financial assets with similar credit risk characteristics for impairment testing. Receivables for which an impairment loss has been recognized in an individual test are no longer included in a portfolio of receivables with similar credit risk characteristics for impairment testing. 2) Receivables that are not individually significant but for which bad debt provision is made on an individual basis For receivables that are not individually significant but have the following characteristics such 135Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 as: receivables in dispute or involving litigation or arbitration with the counterparty; contact has been lost with the debtor and there is no third party to pursue for recovery; there are obvious signs that the debtor is highly unlikely to be able to fulfill its repayment obligations etc. an individual impairment test is conducted. If there is objective evidence that impairment has occurred an impairment loss is recognized based on the difference between the present value of its future cash flows and its carrying amount and a provision for impairment shall be made. 3) Basis for determination and calculation method for accounts receivable for which expected credit losses are calculated based on credit risk portfolios When there is insufficient evidence to assess expected credit losses on an individual instrument level at a reasonable cost the Company by referencing historical credit loss experience combined with current conditions and judgments on future economic conditions divides notes receivable accounts receivable other receivables and contract assets into several portfolios based on credit risk characteristics and calculates expected credit losses on a portfolio basis.Portfolio name Basis for determining the portfolio Portfolio I Bank acceptance bill portfolio Portfolio II Receivables from power generation and sales Portfolio III Receivables from integrated energy services Portfolio of accounts receivable other receivables and contract Portfolio IV assets from related parties within the consolidation scope Portfolio V Portfolio of security deposits deposits and petty cash Portfolio of taxes such as export tax rebates and VAT refunds Portfolio VI upon collection All other various receivables and temporary payments other Portfolio VII than the portfolios above 4) Write-off of impairment provision When the Company no longer reasonably expects to recover all or part of the contractual cash flows of a financial asset the Company directly writes down the carrying amount of the financial asset. If a written-down financial asset is subsequently recovered the recovery shall be recognized as a reversal of impairment loss in profit or loss for the period of recovery. (5) Recognition basis and measurement method for the transfer of financial assets For a financial asset transfer transaction if the Company has transferred substantially all the risks and rewards of ownership of the financial asset to the transferee the financial asset shall be derecognized. If the Company has retained substantially all the risks and rewards of ownership of the financial asset the financial asset shall not be derecognized. If the Company has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset 136Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 and has relinquished control over the financial asset the financial asset is derecognized and the resulting assets and liabilities shall be recognized. If the Company has not relinquished control over the financial asset the related financial asset is recognized to the extent of its continuing involvement in the transferred financial asset and a corresponding liability is recognized.If the transfer of an entire financial asset meets the conditions for derecognition the difference between the carrying amount of the transferred financial asset on the date of derecognition and the sum of the consideration received from the transfer and the portion of the cumulative amount of changes in fair value originally recognized directly in other comprehensive income corresponding to the derecognized portion (where the transferred financial asset meets both of the following conditions: * the Company's business model for managing the financial asset is to both collect contractual cash flows and sell the financial asset; * the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding) shall be recognized in profit or loss for the current period.If the partial transfer of a financial asset meets the conditions for derecognition the carrying amount of the entire transferred financial asset is allocated between the derecognized portion and the retained portion based on their respective relative fair values. The difference between the sum of the consideration received from the transfer and the portion of the cumulative amount of changes in fair value originally recognized in other comprehensive income that should be allocated to the derecognized portion corresponding to the derecognized portion (where the transferred financial asset meets both of the following conditions: * the Company's business model for managing the financial asset is to both collect contractual cash flows and sell the financial asset; * the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding) and the allocated carrying amount of the entire financial asset shall be recognized in profit or loss for the current period.If the Company continues to be involved in a transferred financial asset by providing a financial guarantee an asset for the continuing involvement is recognized at the lower of the carrying amount of the financial asset and the amount of the financial guarantee. The amount of the financial guarantee is the maximum amount of the consideration received that could be required to be repaid. (6) Conditions for derecognition of financial liabilities A financial liability or part of it shall be derecognized when the present obligation is fully or partially discharged. If the Company enters into an agreement with a creditor to replace an existing financial liability with a new financial liability and the contractual terms of the new financial liability are substantially different from those of the existing financial liability the existing financial liability shall be derecognized and the new financial liability shall be recognized simultaneously.If the contractual terms of an existing financial liability are substantially modified in whole or in part the existing financial liability or part of it is derecognized and the financial liability with 137Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 modified terms shall be recognized as a new financial liability.When a financial liability is derecognized in whole or in part the difference between the carrying amount of the derecognized financial liability and the consideration paid (including non- cash assets transferred or new financial liabilities assumed) shall be recognized in profit or loss for the current period.If the Company repurchases part of a financial liability on the repurchase date the carrying amount of the entire financial liability is allocated between the portion that continues to be recognized and the portion that shall be derecognized based on their relative fair values. The difference between the carrying amount allocated to the derecognized portion and the consideration paid (including non-cash assets transferred or new financial liabilities assumed) shall be recognized in profit or loss for the current period. (7) Methods for determining the fair value of financial assets and financial liabilities For a financial instrument for which there is an active market its fair value shall be determined by the quoted price in the active market. For a financial instrument for which there is no active market its fair value is determined by using a valuation technique. When performing a valuation the Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other information are available to support the valuation selects inputs that are consistent with the characteristics of the asset or liability that market participants would consider in a transaction for the relevant asset or liability and gives priority to the use of relevant observable inputs. Unobservable inputs are used only when relevant observable inputs are not available or it is not practicable to obtain them. (8) Distinction between financial liabilities and equity instruments and related accounting treatment The Company distinguishes between financial liabilities and equity instruments in accordance with the following principles: (1) If the Company cannot unconditionally avoid an obligation to deliver cash or another financial asset to fulfill a contractual obligation that contractual obligation meets the definition of a financial liability. Some financial instruments although not explicitly containing terms and conditions that include an obligation to deliver cash or another financial asset may indirectly form a contractual obligation through other terms and conditions. (2) If a financial instrument must or can be settled with the Company's own equity instruments it is necessary to consider whether the Company's own equity instruments used to settle the instrument are a substitute for cash or another financial asset or are to enable the holder of the instrument to enjoy a residual interest in the assets of the issuer after deducting all liabilities. If it is the former the instrument is a financial liability of the issuer; if it is the latter the instrument is an equity instrument of the issuer.In some cases a financial instrument contract provides that the Company must or may settle the financial instrument with its own equity instruments where the amount of the contractual right or 138Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 contractual obligation is equal to the number of its own equity instruments to be received or delivered multiplied by their fair value at the time of settlement. Then regardless of whether the amount of the contractual right or obligation is fixed or varies wholly or partly based on changes in a variable other than the market price of the Company's own equity instruments (such as an interest rate the price of a commodity or the price of a financial instrument) the contract shall be classified as a financial liability.When classifying a financial instrument (or its components) in the consolidated financial statements the Company considers all terms and conditions agreed upon between the members of the Company and the holder of the financial instrument. If the Company as a whole has an obligation to deliver cash another financial asset or settle in another way that results in the instrument becoming a financial liability the instrument shall be classified as a financial liability. 12. Inventories (1) Classification of inventories The Company's main business is the production and sale of electricity. Inventories mainly consist of materials and supplies consumed in the production process or in the provision of services and mainly include fuel raw materials spare parts and maintenance equipment. (2) Pricing method of inventories dispatched Inventories shall be initially measured at cost when acquired and the specific identification method is used for valuation when inventories are dispatched. (3) Basis for determining the net realizable value of different categories of inventories For inventories held for direct sale such as finished goods and materials for sale their net realizable value shall be determined by the estimated selling price of the inventory less the estimated selling expenses and related taxes and fees in the normal course of production and operation; for material inventories that need to be processed their net realizable value is determined by the estimated selling price of the finished products produced less the estimated costs to be incurred until completion estimated selling expenses and related taxes and fees in the normal course of production and operation; For inventories held to fulfill sales contracts or service contracts their net realizable value is calculated based on the contract price. If the quantity of inventories held is greater than the quantity ordered in the sales contract the net realizable value of the excess portion of the inventories shall be calculated based on the general selling price.At the end of the period provision for inventory write-down shall be made on an individual inventory item basis; however for inventories that are numerous and of low unit value provision for inventory write-down is made by category of inventory; for inventories related to a product series produced and sold in the same region having the same or similar ultimate use or purpose and 139Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 difficult to measure separately from other items provision for inventory write-down is made on a combined basis.After a provision for inventory write-down shall be made if the factors that previously caused the write-down of the inventory value have disappeared resulting in the net realizable value of the inventory being higher than its carrying amount the provision is reversed to the extent of the amount of the inventory write-down provision previously made and the amount of the reversal is recognized in profit or loss for the current period. (4) Inventory system of inventories The perpetual inventory system shall be adopted. (5) Amortization method of low-value consumables and packaging materials Low-value consumables are written off in full at one time; packaging materials are written off in full at one time. 13. Contract assets and contract liabilities (1) Contract assets A contract asset is the Company's right to consideration in exchange for goods that the Company has transferred to a customer when that right is conditional on something other than the passage of time. The Company's unconditional rights (i.e. conditional only on the passage of time) to consideration from a customer are presented separately as receivables.For the determination method and accounting treatment of expected credit losses on contract assets see Note III 11 Impairment of Financial Instruments above regarding the accounting treatment of accounts receivable. (2) Contract liabilities Contract liabilities reflect the Company's obligation to transfer goods to a customer for which the Company has received consideration from the customer or for which an amount of consideration is due from the customer.Contract assets and liabilities under the same contract are listed on a net basis. 14. Contract costs The Company's assets related to contract costs include contract fulfillment costs and costs to obtain a contract. Based on their liquidity contract fulfillment costs are presented in inventories and other non-current assets and costs to obtain a contract are presented in other current assets and other non-current assets respectively. (1) Contract fulfillment costs Contract fulfillment costs i.e. costs incurred by the Company to fulfill a contract that are not 140Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 within the scope of relevant accounting standards for inventories fixed assets or intangible assets and that simultaneously meet the following conditions shall be recognized as an asset as contract fulfillment costs: the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify including direct labor direct materials manufacturing overheads (or similar costs) costs that are explicitly chargeable to the customer and other costs that are incurred only because the Company entered into the contract; the costs generate or enhance resources of the Company that will be used in satisfying performance obligations in the future; and the costs are expected to be recovered. (2) Contract acquisition cost The incremental costs incurred by the company to obtain a contract (i.e. costs that would not have been incurred if the contract had not been obtained) are recognized as an asset and amortized on the same basis as the revenue recognition related to the goods or services associated with that asset with the amortization being recognized in profit or loss for the current period. If the amortization period of the asset does not exceed one year it is recognized in profit or loss for the current period when incurred. Other costs incurred by the company to obtain the contract are recognized as an expense when incurred except for those costs that are explicitly borne by the customer. (3) Impairment of contract costs If the carrying amount of an asset related to contract costs exceeds the difference between the following two amounts the company will recognize an impairment provision for the excess amount and record it as an impairment loss: * The expected remaining consideration that the company expects to receive from transferring the goods related to the asset; * The estimated costs that will be incurred to transfer the related goods. After recognizing the impairment provision if the circumstances that led to the impairment in previous periods change such that the difference between the two amounts above exceeds the carrying amount of the asset the previously recognized impairment provision will be reversed and recognized in profit or loss for the current period.However the carrying amount of the asset after the reversal will not exceed the carrying amount that would have been determined if no impairment provision had been made as of the reversal date. 15. Assets held for sale (1) The Company classifies non-current assets or disposal groups that meet the following conditions into the category of held for sale: 1) According to the practice of selling such assets or disposal groups in similar transactions they can be sold immediately under the current situation; 2) The sale is highly probable meaning that the company has made a decision regarding a sale plan and has obtained a firm purchase commitment with the sale expected to be completed 141Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 within one year. If regulations require approval from the relevant authority or regulatory body before the sale can proceed the approval has been obtained. (2) The Company shall have a separately identifiable component that meets one of the following conditions and this component has been disposed of or classified as held for sale: 1) The component represents a separate major business or a sole major business area; 2) The component is a part of the associated plan on the intended disposal of an independent major business or a sole major business area; 3) The component is a subsidiary acquired only for re-sale. (3) Presentation The Company presents non-current assets or assets of disposal groups classified as held for sale separately from other assets and liabilities of disposal groups classified as held for sale separately from other liabilities in the balance sheet. Assets of non-current assets or disposal groups classified as held for sale and liabilities of disposal groups classified as held for sale are not offset against each other; instead they are presented separately as current assets and current liabilities respectively. In the income statement the Company presents profit or loss from continuing operations and profit or loss from discontinued operations separately. Impairment losses reversal amounts thereof and gains or losses on disposal of non-current assets or disposal groups classified as held for sale that do not meet the definition of a discontinued operation shall be reported as profit or loss from continuing operations. Operating profit or loss including impairment losses and reversal amounts thereof as well as gains or losses on disposal of a discontinued operation shall be reported as profit or loss from discontinued operations. 16. Long-term equity investments The Company's long-term equity investments include investments in subsidiaries investments in associates and equity investments in joint ventures. (1) Judgment of significant influence and joint control An equity investment in an investee over which the Company has significant influence represents an investment in an associate. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not constitute control or joint control over those policies.An equity investment in which the Company exercises joint control over the investee together with other venturers and has rights to the net assets of the investee represents an investment in a joint venture. Joint control is the contractually agreed sharing of control over an arrangement and decisions about the relevant activities of the arrangement require the unanimous consent of the parties sharing control. The Company determines the existence of joint control based on whether 142Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 the arrangement is collectively controlled by all parties or a group of parties and decisions regarding the relevant activities of the arrangement require the unanimous consent of such parties that collectively control the arrangement. (2) Accounting treatment The Company measures long-term equity investments at initial cost upon acquisition.For long-term equity investments obtained through a business combination under common control the initial investment cost is determined based on the carrying amount of the acquiree's net assets in the consolidated financial statements of the ultimate controlling party as of the combination date. Where the carrying amount of the acquiree's net assets on the combination date is negative the initial investment cost is determined as zero.For a long-term equity investment acquired through a business combination not under common control the initial investment cost is the cost of the combination.For long-term equity investments acquired other than through business combinations those acquired by cash payment are measured at the purchase price actually paid plus directly attributable costs taxes and other necessary expenditures incurred for the acquisition. Long-term equity investments acquired through the issuance of equity securities are measured at the fair value of the equity securities issued.Investments in subsidiaries are accounted for using the cost method in the Company's separate financial statements. Under the cost method long-term equity investments are stated at initial investment cost. When additional investments are made the carrying amount of long-term equity investments is increased by the fair value of the consideration paid for the additional investment and any directly attributable transaction costs. Cash dividends or profits declared by the investee are recognized as investment income in the current period based on the amount the Company is entitled to receive.Investments in joint ventures and associates are accounted for using the equity method. Under the equity method where the initial cost of a long-term equity investment exceeds the Company's share of the fair value of the investee's identifiable net assets at the acquisition date no adjustment is made to the carrying amount of the long-term equity investment. Where the initial cost is less than the Company's share of the fair value of the investee's identifiable net assets at the acquisition date the difference is added to the carrying amount of the long-term equity investment and recognized in profit or loss for the current period of investment.For long-term equity investments subsequently measured using the equity method the carrying amount is adjusted accordingly to increase or decrease in line with changes in the investee's owners' equity during the holding period. When recognizing the Company's share of the investee's profit or loss the investee's net profit is adjusted based on the fair value of the investee's identifiable assets 143Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 at the acquisition date in accordance with the Company's accounting policies and accounting periods and after eliminating the Company's proportionate share of unrealized intra-group profits or losses arising from transactions with associates and joint ventures that do not constitute a business (unrealized intra-group losses that constitute asset impairment losses are recognized in full). The Company recognizes its share of net losses incurred by the investee up to the limit of the carrying amount of the long-term equity investment plus any other long-term interests that in substance form part of the Company's net investment in the investee unless the Company is obligated to bear additional losses.Upon disposal of a long-term equity investment the difference between its carrying amount and the actual proceeds received is recognized as investment income for the current period.For a long-term equity investment accounted for using the equity method when the equity method is discontinued any related other comprehensive income previously recognized under the equity method is accounted for on the same basis as the investee would have directly disposed of the related assets or liabilities. All owners' equity recognized due to changes in the investee's owners' equity other than net profit or loss other comprehensive income and profit distribution is transferred to investment income for the current period when the equity method is discontinued.If the remaining equity after the disposal of a portion of equity is still accounted for using the equity method the related other comprehensive income previously accounted for under the equity method shall be treated on the same basis as the direct disposal of related assets or liabilities by the investee and shall be carried forward on a pro-rata basis. The owners' equity recognized due to changes in the investee's owners' equity other than net profit or loss other comprehensive income and profit distribution shall be carried forward to the investment income for the current period on a pro-rata basis.If joint control or significant influence over the investee is lost after the disposal of a portion of the equity the remaining equity after the disposal shall be recognized as a financial asset and the difference between the fair value and the book value of the remaining equity on the date of loss of joint control or significant influence shall be included in the profit or loss for the current period.If control over the investee is lost due to the disposal of a portion of a long-term equity investment and the remaining equity after the disposal can exercise joint control or exert significant influence over the investee it shall be accounted for using the equity method. The difference between the book value of the disposed equity and the disposal consideration shall be included in investment income and the remaining equity shall be adjusted as if it had been accounted for using the equity method since its acquisition. If the remaining equity after the disposal cannot exercise joint control or exert significant influence over the investee it shall be recognized as a financial asset. The difference between the book value of the disposed equity and the disposal consideration shall be included in investment income and the difference between the fair value and the book value 144Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 of the remaining equity on the date of loss of control shall be included in the profit or loss for the current period.For the Company's multiple transactions of disposing of equity interests until loss of control if the transactions do not constitute a single arrangement accounting treatment is applied to each transaction separately. Where the transactions constitute a single arrangement they are accounted for as a single transaction of disposing of a subsidiary and losing control. However the difference between the disposal proceeds of each transaction prior to the loss of control and the carrying amount of the long-term equity investment corresponding to the disposed equity interest is recognized as other comprehensive income and is transferred in aggregate to profit or loss in the period when control is lost. 17. Investment properties Investment property refers to property held for the purpose of generating rental income or capital appreciation or both. It includes land use rights leased out land use rights held for capital appreciation and buildings leased out (including buildings completed through self-construction or development activities for leasing purposes as well as buildings under construction or development intended for leasing in the future).The Company measures its existing investment properties using the cost model. For investment properties measured under the cost model depreciation policies for buildings held for rental purposes are consistent with those applied to the Company‘s property plant and equipment and amortization policies for land use rights held for rental purposes are consistent with those applied to intangible assets. 18. Fixed assets (1) Recognition criteria for fixed assets Fixed assets of the Company are tangible assets held for the production of goods provision of services rental or administrative and operating purposes with a useful life exceeding one year.Fixed assets are recognized when it is probable that the economic benefits associated with them will flow to the Company and their costs can be measured reliably. The Company's fixed assets include buildings and structures machinery and equipment electronic equipment transportation equipment office equipment etc. (2) Depreciation method Depreciation of fixed assets is provided for by category using the straight-line method (or: units-of-production method double-declining balance method and sum of the years' digits method etc.). The depreciation rate is determined based on the category estimated useful life and estimated net residual value of the fixed assets. If the components of a fixed asset have different useful lives or provide economic benefits to the enterprise in different ways different depreciation rates or 145Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 methods are selected and depreciation is provided for separately.The depreciation methods depreciation years residual value rates and annual depreciation rates of various categories of fixed assets are as follows: Residual Annual Depreciation Depreciation Category value rate depreciation method life (year) (%) rate (%) Houses and buildings Straight-line 20 years 0-10 4.5-5 method House decoration Straight-line 10 years 0-5 9.5-10 method Machinery and equipment - Gas Units-of- turbine generator sets production - 0-10 - method Machinery and equipment Straight-line (excluding gas turbine generator 10-20 years 0-5 4.75-9.50 method sets) Means of transportation Straight-line 5 years 0-5 19-20 method Electronic equipment Straight-line 5 years 0-5 19-20 method Other equipment Straight-line 5 years 0-5 19-20 method Note: The change in the Useful Life and annual depreciation rate of machinery and equipment (excluding gas turbine generator sets) during this period is due to the addition of independent energy storage equipment by the Company's subsidiary Shenzhen Nanshan Power Xiwan Company.According to the setting of the Useful Life in the financial evaluation of the feasibility study report for the 300MW/600MWh Independent Energy Storage Power Station (Phase I Project) in Cuiheng New District Zhongshan City and in combination with the Company's business conditions and industry practices the Useful Life of the energy storage battery cabins is set at 10 years. The determination of the Useful Life for the newly added independent energy storage equipment this time is the first accounting estimate made based on its economic characteristics at the time of initial recognition of the asset and it is not an adjustment to the Useful Life of the Company's original machinery and equipment. Therefore this matter does not constitute a change in accounting estimates. (3) Subsequent expenditures Subsequent expenditures on fixed assets refer to expenditures for renewal and renovation repair costs etc. incurred during the use of fixed assets. Subsequent expenditures on fixed assets 146Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 such as renewal and renovation that meet the capitalization criteria shall be included in the cost of fixed assets and the book value of the replaced part shall be deducted at the same time; repair costs and other expenses for fixed assets that do not meet the capitalization criteria shall be included in the profit or loss for the current period when incurred. 19. Construction in progress The cost of construction in progress is determined based on actual project expenditures including all necessary project expenditures incurred during the construction period borrowing costs that should be capitalized before the project reaches the intended usable state and other related expenses.The Company's construction in progress is classified into infrastructure projects technical transformation projects integrated energy services information technology development etc.Construction in progress projects are recorded as the carrying amount of fixed assets based on the necessary expenditures incurred to bring the asset to its intended usable state. For a constructed fixed asset that has reached its intended useable state but for which the final accounts have not yet been completed it shall be transferred to fixed assets at an estimated value based on the project budget cost or actual project cost etc. from the date it reaches the intended usable state.Depreciation of the fixed asset shall be provided for in accordance with the Company's fixed asset depreciation policy. After the final accounts are completed the original provisional estimated value shall be adjusted based on the actual cost but the previously provided depreciation amount shall not be adjusted.Criteria for transferring construction in progress to fixed assets upon reaching the prescribed usable state are as follows: Item Criteria and timing for transfer to fixed assets (1) The main construction project and supporting projects have been substantially Houses and buildings completed; (2) The construction project has met the intended design requirements and has been accepted by units such as survey design construction and supervision; (3) It has been accepted by external departments such as fire protection land and planning; (4) If the construction project has reached the intended usable state but the final accounts have not yet been completed it shall be transferred to fixed assets at an estimated value based on the actual project cost from the date it reaches the intended usable state.Machinery equipment (1) The relevant equipment and other supporting facilities have been installed; (2) The equipment has been commissioned and can maintain normal and stable operation for a period of time; (3) The production equipment can stably produce qualified products for a period of time; (4) The equipment has been accepted by asset management personnel and users. 20. Borrowing costs (1) Recognition principles of capitalization of borrowing costs Borrowing costs include interest on borrowings amortization of discounts or premiums ancillary expenses and exchange differences arising from foreign currency borrowings. 147Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Borrowing costs incurred that are directly attributable to the acquisition construction or production of a qualifying asset are capitalized and included in the cost of the relevant asset; other borrowing costs are recognized as an expense in the period in which they are incurred and included in profit or loss for the current period.Qualifying assets refer to assets such as fixed assets investment property and inventories that require a substantial period of construction or production activities to reach the intended usable or salable state.Capitalization of borrowing costs commences when all of the following conditions are met: 1) Asset expenditures have been incurred. Asset expenditures include expenditures in the form of cash payments transfer of non-cash assets or assumption of interest-bearing liabilities for the acquisition construction or production of a qualifying asset; 2) Borrowing costs have been incurred; 3) The acquisition construction or production activities that are necessary to prepare the asset for its intended use or sale have begun. (2) Capitalization period of borrowing costs The capitalization period is the period from the commencement of capitalization of borrowing costs to the cessation of capitalization excluding any periods in which capitalization is suspended.Capitalization of borrowing costs ceases when the qualifying asset acquired constructed or produced is ready for its intended use or sale.When parts of a qualifying asset acquired constructed or produced are completed separately and can be used individually capitalization of borrowing costs for that part of the asset ceases.If the various parts of an asset being acquired constructed or produced are completed separately but cannot be used or sold externally until the entire asset is completed capitalization of borrowing costs ceases when the entire asset is completed. (3) Period of suspension of capitalization If an abnormal interruption occurs during the acquisition construction or production of a qualifying asset and the interruption lasts for a continuous period of more than 3 months the capitalization of borrowing costs is suspended. If such interruption is a necessary procedure to get the qualifying asset ready for its intended use or sale the capitalization of borrowing costs continues.Borrowing costs incurred during the interruption period are recognized as profit or loss for the current period and capitalization of borrowing costs resumes after the acquisition construction or production activities of the asset restart. (4) Methods for Calculating Capitalization Rate and Capitalized Amount of Borrowing Costs 148Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 For specific borrowings incurred for the acquisition construction or production of qualifying assets the capitalized amount of borrowing costs is determined as the borrowing costs actually incurred during the period less any interest income from placing the unused borrowings in banks or investment income from temporary investments of such borrowings.For general borrowings utilized in the acquisition construction or production of qualifying assets the amount of borrowing costs eligible for capitalization is determined by multiplying the weighted average of asset expenditures in excess of the specific borrowings by the capitalization rate applicable to the general borrowings. The capitalization rate is calculated based on the weighted average interest rate of the general borrowings. 21. Right-of-use assets Except for short-term leases and leases of low-value assets the Company recognizes right-of- use assets for leases at the commencement date of the lease term. The commencement date of the lease term refers to the date on which the lessor makes the leased asset available for use by the Company. Right-of-use assets are initially measured at cost which includes: (1) The initial measurement amount of the lease liability; (2) Lease payments made on or before the commencement date of the lease term less any related lease incentives received; (3) Initial direct costs incurred by the Company; (4) The estimated costs to be incurred by the Company for dismantling and removing the leased asset restoring the site on which the leased asset is located or restoring the leased asset to the condition required by the terms and conditions of the lease excluding costs incurred for the production of inventories.The Company depreciates right-of-use assets by reference to the relevant depreciation provisions of Accounting Standards for Business Enterprises No. 4 – Fixed Assets. If the Company can reasonably determine that it will obtain ownership of the leased asset at the end of the lease term the right-of-use asset is depreciated over the remaining useful life of the leased asset. If such ownership cannot be reasonably determined the right-of-use asset is depreciated over the shorter of the lease term and the remaining useful life of the leased asset.According to the Accounting Standards for Business Enterprises No.8-Impairment of Assets the Company determines whether the right-to-use assets have been impaired and carries out accounting treatment for the identified impairment losses. 22. Intangible assets Intangible assets including land use rights patented technologies and software are initially measured at actual cost. 149Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (1) Valuation method of intangible assets 1) Initial measurement of intangible assets The cost of externally acquired intangible assets includes the purchase price related taxes and other expenses directly attributable to bringing the asset to its intended use. If the purchase price of the intangible asset exceeds normal credit terms and is deferred for payment essentially having a financing nature the cost of the intangible asset is determined based on the present value of the purchase price.The intangible assets acquired through debt restructuring which are used by the debtor to settle the debt are recognized at their carrying amount based on the fair value of the waived receivables and other costs such as taxes directly attributable to bringing the asset to its intended use. The difference between the fair value and the carrying amount of the waived receivables is recognized in profit or loss for the current period.In the case of a non-monetary asset exchange that has commercial substance and where the fair values of both the exchanged asset and the acquired asset can be reliably measured the intangible asset acquired in the exchange is recognized at the fair value of the exchanged asset unless there is conclusive evidence that the fair value of the acquired asset is more reliable. If the aforementioned conditions are not met the cost of the acquired intangible asset is based on the carrying amount of the exchanged asset and the related taxes payable with no recognition of profit or loss. 2) Subsequent measurement The useful life of an intangible asset is analyzed and determined upon its acquisition.For an intangible asset with a finite useful life it is amortized over the period in which it is expected to generate economic benefits for the enterprise using the straight-line method; if the period in which an intangible asset is expected to generate economic benefits for the enterprise cannot be foreseen it is regarded as an intangible asset with an indefinite useful life and is not amortized. (2) Estimation of the useful life of intangible assets with a finite useful life Category Amortization Amortization period Basis for use method (years) Within the validity period Land use right Straight-line method 30-50 of the land title certificate Patented technology Straight-line method 10 Patent certificate Usable period of the Software Straight-line method 5 software (3) Basis for determining intangible assets with an indefinite useful life and the 150Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 procedures for reviewing their useful lives The useful life of an intangible asset with an indefinite useful life is reviewed and if there is evidence that the period in which the intangible asset is expected to generate economic benefits for the enterprise is foreseeable its useful life is estimated and it is amortized in accordance with the amortization policy for intangible assets with a finite useful life. (4) Specific criteria for distinguishing between the research phase and the development phase The expenditure of the Company's internal research and development projects is divided into research phase expenditure and development phase expenditure.Research phase: The phase of original and planned investigation and research activities to acquire and understand new scientific or technological knowledge.Development phase: The phase before commercial production or use in which research findings or other knowledge are applied to a plan or design to produce new or substantially improved materials devices products etc.Specific criteria for capitalization of development phase expenditure Expenditure in the development phase of an internal research and development project is recognized as an intangible asset when all of the following conditions are met: 1) It is technically feasible to complete the intangible asset so that it can be used or sold; 2) There is an intention to complete the intangible asset and use or sell it; 3) The way in which the intangible asset generates economic benefits including being able to prove that there is a market for the products produced using the intangible asset or that there is a market for the intangible asset itself and if the intangible asset is to be used internally its usefulness can be demonstrated; 4) There are sufficient technical financial and other resources to support the completion of the development of the intangible asset and the ability to use or sell the intangible asset; 5) The expenditure attributable to the development phase of the intangible asset can be measured reliably. 23. Impairment of long-term assets Long-term assets such as long-term equity investments investment properties measured at cost model fixed assets construction in progress right-of-use assets and intangible assets with finite useful lives are tested for impairment if there are indications of impairment at the balance sheet date.If the result of the impairment test indicates that the recoverable amount of an asset is lower than its carrying amount an impairment provision is made for the difference and charged to impairment 151Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 loss. The recoverable amount is the higher of an asset's fair value less costs to sell and the present value of the asset's estimated future cash flows. The impairment provision for an asset is calculated and recognized on the basis of the individual asset. If it is difficult to estimate the recoverable amount of an individual asset the recoverable amount of the asset group to which the asset belongs is determined. An asset group is the smallest combination of assets that can generate cash inflows independently.Goodwill intangible assets with indefinite useful lives and intangible assets not yet ready for use are tested for impairment at least at the end of each year.The Company conducts impairment tests on goodwill. For the carrying amount of goodwill arising from a business combination it is allocated to the relevant asset groups on a reasonable basis from the acquisition date; if it is difficult to allocate to the relevant asset groups it is allocated to the relevant asset group combinations. When allocating the carrying amount of goodwill the Company allocates it based on the relative benefits that the relevant asset groups or asset group combinations can obtain from the synergies of the business combination and conducts goodwill impairment tests on this basis.When testing for impairment of a relevant asset group or asset group combination containing goodwill if there are indications of impairment in the asset group or asset group combination related to goodwill the asset group or asset group combination not containing goodwill is tested for impairment first its recoverable amount is calculated and compared with the relevant carrying amount to recognize the corresponding impairment loss. Then the asset group or asset group combination containing goodwill is tested for impairment and the carrying amount of these relevant asset groups or asset group combinations (including the allocated portion of the carrying amount of goodwill) is compared with their recoverable amount. If the recoverable amount of the relevant asset group or asset group combination is lower than its carrying amount the impairment loss of goodwill is recognized. The above asset impairment loss once recognized shall not be reversed in subsequent accounting periods.The above asset impairment loss once recognized shall not be reversed in subsequent accounting periods. 24. Long-term deferred expenses (1) Amortization method The Company's long-term deferred expenses include major repair expenditures decoration costs etc. Long-term deferred expenses refer to various expenses that have been incurred but have a benefit period of more than one year (excluding one year). Long-term deferred expenses are amortized over the benefit period of the expense item. If a long-term deferred expense item cannot benefit future accounting periods the entire unamortized carrying amount of the item is transferred to profit or loss for the current period. 152Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 The decoration of leased properties is recognized as long-term deferred expenses and amortized over the shorter of the following periods: (1) The estimated useful life of the decoration (the estimated time until the next decoration); (2) The estimated remaining useful life of the main structure of the building. For subsequent expenditures that do not meet the recognition criteria for fixed assets such as major repair expenses the Company recognizes them as long-term deferred expenses in the year they are incurred and subsequently amortizes them over the benefit period. (2) Amortization period Item Amortization period The shorter of the estimated useful life of the renovation and the estimated remaining Renovation of leased fixed assets useful life of the main structure of the building Major repair expenditure for fixed Overhaul cycle of gas generator sets assets 25. Employee remuneration The Company's employee benefits include short-term compensation post-employment benefits termination benefits and other long-term benefits. (1) Accounting treatments of short-term compensation During the accounting period in which an employee provides services to the Company the Company recognizes the actual short-term compensation incurred as a liability and includes it in profit or loss for the current period or the cost of a relevant asset.The Company’s social insurance premiums and housing provident fund contributions paid for employees as well as union funds and employee education funds accrued in accordance with regulations are recognized as corresponding employee remuneration during the accounting periods in which employees render services to the Company based on the prescribed accrual bases and ratios.If employee welfare expenses are non-monetary benefits and can be reliably measured they are measured at fair value. (2) Accounting treatments of post-employment benefits Defined contribution plans The Company contributes to basic pension insurance and unemployment insurance for its employees in accordance with relevant local government regulations. During the accounting period in which employees provide services to the Company the amount payable is calculated based on the local contribution base and ratio recognized as a liability and included in profit or loss for the 153Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 current period or the cost of a relevant asset.In addition to basic pension insurance the Company has also established an enterprise annuity contribution system and an enterprise annuity plan in accordance with the relevant policies of the national enterprise annuity system. The Company makes contributions to local social insurance institutions/annuity plans at a certain percentage of the total wages of its employees and the corresponding expenditures are included in profit or loss for the current period or the cost of a relevant asset. (3) Accounting treatments of dismissal benefits The Company recognizes a liability for employee benefits arising from termination benefits and records it in profit or loss for the current period at the earlier of when it can no longer unilaterally withdraw the termination benefits offered under a termination plan or redundancy proposal or when it recognizes costs or expenses relating to a restructuring involving the payment of termination benefits. 26. Lease liabilities Except for short-term leases and leases of low-value assets the Company initially measures the lease liability at the commencement date of the lease term at the present value of the lease payments that are not yet paid at that date. When calculating the present value of lease payments the Company uses the interest rate implicit in the lease as the discount rate. If the interest rate implicit in the lease cannot be determined the incremental borrowing rate is used as the discount rate.Lease payments refer to the payments made by the Company to the lessor in connection with the right to use the leased asset during the lease term including: (1) Fixed payments and in-substance fixed payments less any lease incentives; (2) Variable lease payments that depend on an index or a rate; (3) The exercise price of a purchase option that the Company is reasonably certain to exercise; (4) Amounts payable for exercising the lease termination option if the lease term reflects that the Company will exercise such option; (5) Amounts expected to be payable by the Company under residual value guarantees. Variable lease payments that depend on an index or a rate are initially measured using the index or rate as at the commencement date. Variable lease payments not included in the measurement of the lease liability are recognized in profit or loss for the current period or the cost of a relevant asset when they are actually incurred. 154Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 After the lease commencement date the Company calculates the interest expenses of the lease liabilities for each period of the lease term at a fixed cyclical interest rate and includes it in the current profit or loss or related asset costs.After the commencement of the lease term if the following circumstances occur the Company will re-measure the lease liabilities and adjust the corresponding right-to-use assets. If the book value of the right-to-use assets has been reduced to zero but the lease liabilities still need to be further reduced the Company will include the difference in the current profits and losses: (1)If the lease term changes or the evaluation result of the purchase option changes the Company will re-measure the lease liabilities according to the present value calculated by the changed lease payment amount and the revised discount rate; (2)If the estimated payable amount according to the guarantee residual value or the index or proportion used to determine the lease payment changes the Company will re-measure the lease liabilities according to the present value calculated by the changed lease payment amount and the original discount rate. If changes in lease payments result from variations in floating interest rates the revised discount rate is used to calculate the present value.Lease liabilities are presented as current liabilities or non-current liabilities in the balance sheet based on their liquidity. The carrying amount at the end of the period of non-current lease liabilities that are due for settlement within one year from the balance sheet date is presented under the item "non-current liabilities due within one year". 27. Estimated liabilities (1) Recognition criteria for provisions When a business related to a contingency such as pending litigation or arbitration or a guarantee-type quality assurance simultaneously meets the following conditions the Company recognizes it as a liability: the obligation is a present obligation of the Company; the fulfillment of the obligation is likely to result in an outflow of economic benefits from the enterprise; and the amount of the obligation can be measured reliably. (2) Measurement methods for various types of provisions Provisions are initially measured at the best estimate of the expenditure required to settle the related present obligation taking into account factors such as risks uncertainties and the time value of money related to the contingency. The Company reviews the current best estimate on the balance sheet date and adjusts the carrying amount of the provisions.The best estimate is handled as follows in different situations: If there is a continuous range of required expenditure and all outcomes within that range are equally probable the best estimate is determined as the midpoint of the range i.e. the average of the 155Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 upper and lower limits.If there is no continuous range of required expenditure or if a continuous range exists but the outcomes within the range are not equally probable the best estimate is determined as follows: for a single item under the contingent event at the most likely amount; for multiple items under the contingent event based on the various possible outcomes and their associated probabilities.If all or part of the expenditure required to settle a provision is expected to be reimbursed by a third party the reimbursement amount is recognized as a separate asset only when it is virtually certain that it will be received. The amount of reimbursement recognized shall not exceed the carrying amount of the provision.Provisions expected to be paid within one year from the balance sheet date are presented as current liabilities. 28. Business income Accounting policies adopted for revenue recognition and measurement disclosed by business type. The Company's revenue is mainly derived from the following business types: (1) Revenue from power generation and sales; (2) Revenue from integrated energy services; (3) Other revenue. (1) General principles The Company recognizes revenue when it has satisfied a performance obligation in a contract which is when the customer obtains control of the related goods or services. Obtaining control of the related goods or services means being able to direct the use of and obtain substantially all of the remaining benefits from the goods or services.A performance obligation refers to the Company's promise in a contract to transfer to a customer a distinct good or service. A performance obligation of the Company is satisfied over time if one of the following criteria is met; otherwise it is satisfied at a point in time: * the customer simultaneously receives and consumes the benefits provided by the Company's performance as the Company performs; * the customer controls the asset as it is created or enhanced by the Company's performance; * the Company's performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date.For performance obligations satisfied over time the Company recognizes revenue over that period in accordance with the progress of performance. When the progress of performance cannot be reasonably determined but the costs incurred by the Company are expected to be recovered revenue is recognized to the extent of the costs incurred until the progress of performance can be reasonably determined.For performance obligations satisfied at a point in time the Company recognizes revenue at 156Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 the point in time when the customer obtains control of the related goods. In determining whether a customer has obtained control of the goods the Company considers the following indicators: * the Company has a present right to payment for the asset meaning the customer has a present obligation to pay for the asset; * the Company has transferred legal title to the asset to the customer meaning the customer has legal title to the asset; * the Company has transferred physical possession of the asset to the customer meaning the customer has physical possession of the asset; * the Company has transferred the significant risks and rewards of ownership of the asset to the customer meaning the customer has obtained the significant risks and rewards of ownership of the asset; * the customer has accepted the asset; * other indicators that the customer has obtained control of the asset.If a contract contains two or more performance obligations the Company allocates the transaction price to each individual performance obligation on the contract start date based on the relative proportion of the stand-alone selling prices of the goods or services promised for each performance obligation.The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer excluding amounts collected on behalf of third parties and amounts expected to be refunded to the customer. When determining the transaction price the Company considers the effects of factors such as variable consideration and the existence of a significant financing component in the contract.If a contract contains variable consideration the Company determines the best estimate of variable consideration using the expected value method or the most likely amount method. The transaction price including variable consideration is limited to the amount for which it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. At each balance sheet date the Company revises its estimate of the amount of variable consideration to be included in the transaction price.If a contract contains a significant financing component the Company determines the transaction price as the amount of consideration that the customer would have paid if the customer had paid cash upon obtaining control of the goods. The difference between the determined transaction price and the promised consideration in the contract is amortized using the effective interest method over the contract term using a discount rate that discounts the nominal amount of the contract consideration to the cash selling price of the goods. At the contract inception date if the Company expects the time interval between the customer obtaining control of the goods or services and the customer paying the consideration to be no more than one year the significant financing component in the contract is not considered. (2) Principal and Agent The Company determines whether its role in a transaction is that of a principal or an agent 157Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 based on whether it controls the goods prior to transferring them to the customer. If the Company controls the goods before their transfer to the customer it acts as a principal and recognizes revenue at the gross amount of consideration received or receivable. Otherwise the Company acts as an agent and recognizes revenue at the amount of commission or fee to which it expects to be entitled which is determined as the net amount of the total consideration received or receivable less the amount payable to other relevant parties or based on a fixed commission amount or rate. (3) Sales with quality assurance clauses For sales with quality assurance clauses if the quality assurance provides a separate service in addition to assuring the customer that the goods or services sold meet the established standards the quality assurance constitutes a single performance obligation. Otherwise the Company accounts for product warranty liabilities in accordance with the Accounting Standards for Business Enterprises No. 13 – Contingencies. (4) Specific principles The Company recognizes revenue when it has satisfied a performance obligation in a contract which is when the customer obtains control of the related goods or services. Obtaining control of the related goods or services means being able to direct the use of and obtain substantially all of the remaining benefits from the goods or services. (1) Revenue from power generation and sales When electricity is delivered to the power grid company as stipulated in the electricity sales contract meaning the power grid company obtains control of the electricity the Company recognizes the realization of sales revenue. (2) Revenue from integrated energy services The revenue from services provided by the Company to customers mainly consists of engineering labor and services such as operation and maintenance management commissioning and overhaul as well as integrated energy service revenue from industrial and commercial energy storage electricity sales business and independent energy storage power station business. If multiple performance obligations are involved they should be reasonably split and the equipment sales therein should be handled with reference to the sales of goods business. The provision of labor and services is generally handled according to the performance obligations fulfilled over a period of time using the output method. The specific requirements are as follows: 1) Supporting equipment sales business For the equipment sales business revenue is recognized when the customer obtains control of the equipment. Typically the transfer of completed or delivered products to the customer with the customer's signed acceptance is the point of recognition. Based on the contract terms the supplementary requirements for revenue recognition include but are not limited to sales contracts 158Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 goods issue notes customer sign-off confirmation forms equipment acceptance certificates or customs declarations. 2) Labor and services provided * Revenue recognition and settlement for such business shall comply with the provisions of the business contract between the two parties. At the end of each settlement period upon obtaining the elements specified in the contract such as attendance sheets and service review forms confirmed by both parties these shall serve as proof of cumulative revenue recognition for that settlement period and as materials for claiming service payments.* On each balance sheet date within a settlement period revenue is provisionally estimated based on the progress of performance. When using the output method to determine the progress of performance output indicators such as the actual measured progress of completion evaluation of results achieved milestones reached time elapsed and products completed or delivered are usually combined. 3) Integrated energy service revenue from industrial and commercial energy storage and electricity sales business For the industrial and commercial energy storage service business at the end of each settlement period the charge and discharge records of the energy storage project are checked and confirmed with the customer and an electricity bill settlement confirmation form for the energy storage power station is signed. The service fees are provisionally estimated to recognize revenue. Formal settlement is made based on the actual electricity bill issued by the power supply bureau at the beginning of each month the provisionally estimated revenue is adjusted and the energy service revenue is confirmed.For the electricity sales business service the energy service revenue for the month is confirmed based on the electricity sales revenue settlement statement from Guangdong Power Exchange Center Co. Ltd. 4) Revenue from Spot Energy and Frequency Regulation Ancillary Services for Independent Energy Storage Power Station Business This business involves fulfilling performance obligations over a period of time. The Company recognizes revenue in the period when it provides electricity energy trading and frequency regulation ancillary services at the time when the customer obtains control of the services and the performance is completed.The monthly settlement statement for spot electricity energy and the final settlement statement for frequency regulation ancillary services are usually issued by the power exchange center in the middle of the following month and the middle of the month after next respectively. To adhere to the accrual basis of accounting on each balance sheet date the Company uses the best estimate to 159Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 provisionally book the revenue that has been realized in the current period but for which formal settlement documents have not yet been obtained. This is based on the volume of services actually completed (actual discharge amount frequency regulation mileage etc.) and reasonably determinable settlement bases such as the average day-ahead/real-time spot clearing price frequency regulation clearing price and performance factors. After obtaining the formal settlement documents from the power exchange center the difference between the formally settled amount and the original provisionally estimated amount is adjusted and recognized as operating revenue in the period when the settlement documents are obtained without retrospective adjustment to prior period financial statements. 29. Government subsidies (1) Types Government grants are monetary and non-monetary assets that the Company obtains from the government free of charge. They are divided into government grants related to assets and government grants related to income.Among them government grants related to assets are government grants obtained by the Company for the purpose of acquiring constructing or otherwise forming long-term assets.Government grants related to income are government grants other than those related to assets. If the government documents do not explicitly specify the object of the grant the Company makes a judgment based on the above distinction principles. If it is difficult to distinguish it is classified as a government grant related to income as a whole. (2) Timing of recognition If there is evidence at the end of the period that the Company can meet the relevant conditions stipulated in the fiscal support policies and is expected to receive the fiscal support funds the government grant is recognized based on the amount receivable. Otherwise government grants are recognized upon actual receipt.If a government grant is a monetary asset it is measured at the amount received or receivable.If a government grant is a non-monetary asset it is measured at fair value; if the fair value cannot be reliably obtained it is measured at a nominal amount (RMB 1). Government grants measured at a nominal amount are directly recognized in profit or loss for the current period. (3) Accounting treatment Government grants related to assets are used to offset the carrying amount of the related assets or are recognized as deferred income. If recognized as deferred income they are recognized in profit or loss for the current period on a systematic and reasonable basis over the useful life of the related assets (if related to the Company's daily activities they are included in other income; if not related to the Company's daily activities they are included in non-operating income). 160Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 For government grants related to income that are intended to compensate for related costs expenses or losses of the Company in future periods they are recognized as deferred income and are recognized in profit or loss for the current period (if related to the Company's daily activities included in other income; if not related to the Company's daily activities included in non-operating income) or offset against the related costs expenses or losses in the period when the related costs expenses or losses are recognized. For those intended to compensate for related costs expenses or losses already incurred by the Company they are directly recognized in profit or loss for the current period (if related to the Company's daily activities included in other income; if not related to the Company's daily activities included in non-operating income) or offset against the related costs expenses or losses.When the Company obtains policy-based preferential loan interest subsidies it distinguishes between two situations: where the government allocates the interest subsidy funds to the lending bank and where the government allocates the interest subsidy funds directly to the Company and applies the following principles for accounting treatment respectively: 1) If the government allocates the interest subsidy funds to the lending bank which then provides loans to the Company at a policy-based preferential interest rate the Company records the loan at the actual amount of borrowing received and calculates the related borrowing costs based on the loan principal and the policy-based preferential interest rate. 2) If the government allocates the interest subsidy funds directly to the Company the Company offsets the corresponding interest subsidy against the related borrowing costs. 30. Deferred income tax assets and deferred income tax liabilities Deferred tax assets are recognized for deductible temporary differences to the extent of the taxable income that is likely to be available in future periods to offset such deductible temporary differences. For deductible losses and tax credits that can be carried forward to subsequent years corresponding deferred tax assets are recognized to the extent of the taxable income that is likely to be available in future periods to offset such deductible losses and tax credits.For taxable temporary differences a deferred tax liability is recognized except in special circumstances.Special circumstances in which deferred tax assets or deferred tax liabilities are not recognized include: the initial recognition of goodwill; and other transactions or events other than those in a business combination that affect neither accounting profit nor taxable income (or deductible losses) at the time of occurrence.When the Group has a legal right to settle on a net basis and intends to settle with net amount or acquire assets and pay off liabilities simultaneously the Company reports the net amount of current income tax assets and current tax liabilities after offsetting. 161Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis and the deferred income tax assets and liabilities are related to the income tax levied by the same tax collection department on the same taxpayer or to different taxpayers but in the future the taxpayers involved intend to settle the current income tax assets and liabilities on a net basis or acquire assets and pay off liabilities at the same time the Group's deferred income tax assets and liabilities are presented on an offset net basis. 31. Leasing (1) Identification of leases At the inception of a contract the Company assesses whether the contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of one or more identified assets for a period of time in exchange for consideration.If a contract contains more than one separate lease the Company separates the contract and accounts for each separate lease. If a contract contains both lease and non-lease components the Company separates the lease and non-lease components for accounting treatment. Each lease component is accounted for in accordance with the lease standards while the non-lease components are accounted for in accordance with other applicable accounting standards for business enterprises. (2) The Company as a lessee 1) Lease recognition With the exception of short-term leases and leases of low-value assets the Company recognizes the right-of-use assets and lease liabilities for leases on the lease commencement date.A right-of-use asset is the right of the Company as a lessee to use a leased asset during the lease term and it is initially measured at cost. This cost includes: * the amount of the initial measurement of the lease liability; * lease payments made on or before the commencement date of the lease term less any lease incentives received; * any initial direct costs incurred; and * an estimate of costs to be incurred in dismantling and removing the underlying asset restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease (unless those costs are incurred to produce inventories). If the Company remeasures the lease liability in accordance with the relevant provisions of the lease standards the carrying amount of the right-of-use asset is adjusted accordingly.The Company depreciates right-of-use assets using the straight-line method according to the expected consumption pattern of the economic benefits inherent in such assets. Where it can be reasonably determined that the Company will obtain ownership of the leased asset upon the expiration of the lease term depreciation is provided over the remaining useful life of the leased asset. Where it cannot be reasonably determined that the Company will obtain ownership of the leased asset upon the expiration of the lease term depreciation is provided over the shorter of the 162Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 lease term and the remaining useful life of the leased asset. The depreciation charges are included in the cost of relevant assets or profit or loss for the current period based on the purpose of use of the right-of-use assets.The Company initially measures the lease liability at the present value of the lease payments that are not yet paid at the commencement date of the lease term. Lease payments include: * fixed payments and in-substance fixed payments less any lease incentives; * variable lease payments that depend on an index or a rate; * the exercise price of a purchase option if the Company is reasonably certain to exercise that option; * payments of penalties for terminating the lease if the lease term reflects the Company exercising an option to terminate the lease; and * payments expected to be made by the Company under residual value guarantees.In calculating the present value of lease payments the Company uses the interest rate implicit in the lease as the discount rate. If the interest rate implicit in the lease cannot be determined the Company uses the incremental borrowing rate as the discount rate. The Company calculates interest expenses on lease liabilities for each period during the lease term using a fixed periodic interest rate which is recognized in profit or loss for the current period except for amounts that should be capitalized.After the commencement date of the lease term when the Company recognizes interest on the lease liability it increases the carrying amount of the lease liability; when it makes lease payments it reduces the carrying amount of the lease liability. When there is a change in in-substance fixed payments a change in the amounts expected to be payable under a residual value guarantee a change in the index or rate used to determine lease payments or a change in the assessment or actual exercise of a purchase option renewal option or termination option the Company remeasures the lease liability at the present value of the revised lease payments. 2) Short-term leases and leases of low-value assets The Company elects not to recognize right-of-use assets and lease liabilities for short-term leases with a lease term of 12 months or less and for leases of low-value assets where the underlying asset is of low value when new. The Company recognizes the lease payments relating to short-term leases and leases of low-value assets in the cost of relevant assets or in profit or loss for the period using the straight-line method or another systematic and rational basis over the lease term. (3) The Company as a lessor As a lessor if a lease substantially transfers all the risks and rewards incidental to ownership of an underlying asset the Company classifies the lease as a finance lease; otherwise it is classified as an operating lease. 1) Finance lease At the commencement date of the lease term the Company recognizes a receivable under a 163Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 finance lease and derecognizes the finance lease asset. When the Company initially measures the receivable under a finance lease the net investment in the lease is used as the carrying amount of the receivable under the finance lease.The net investment in the lease is the sum of the present value of the unguaranteed residual value and the lease receivables not yet received at the commencement date of the lease discounted using the interest rate implicit in the lease. The Company calculates and recognizes interest income for each period during the lease term using a fixed periodic interest rate. Variable lease payments received by the Company that are not included in the measurement of the net investment in the lease are recognized in profit or loss in the period in which they occur. 2) Operating lease During each period of the lease term the Company recognizes the lease receipts of operating leases as rental income by using the straight-line method.Initial direct costs incurred by the Company in connection with operating leases are capitalized to the cost of the underlying leased assets and are recognized in profit or loss on a straight-line basis over the lease term consistent with the recognition of rental income. Variable lease payments relating to operating leases received by the Company that are not included in lease receivables are recognized in profit or loss in the period in which they are earned.In case of any modifications in operating leases the Company accounts for the modified lease as a new lease from the effective date of the modification and the advance or receivable lease receipts related to the lease before the modification is regarded as the receipt amount of the new lease. 32. Special reserves The Company's work safety costs which are accrued for its power generation and sales business in accordance with national regulations are recorded in the costs of related products or profit or loss for the current period and are simultaneously recorded under the "special reserve" account. The current accrual standard is based on the operating revenue of the previous year and the amount to be accrued for the current year is determined using the progressive charge on a regressive basis method. This amount is accrued on an average monthly basis and recorded in the costs of related products or profit or loss for the current period while also being recorded under the "special reserve" account. When the Company uses the special reserve expenditures of a revenue nature are directly charged against the special reserve; those that form fixed assets are recognized as fixed assets when the related assets reach their intended usable condition. At the same time the special reserve is reduced by the cost of the fixed assets formed and accumulated depreciation of the same amount is recognized. Such fixed assets are no longer depreciated in subsequent periods. 33. Major changes in accounting policies and accounting estimates 164Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 There were no changes in significant accounting policies and accounting estimates during the reporting period.IV. Items 1. Main tax categories and tax rates Tax category Tax basis Tax rate The output tax is calculated based on the revenue from the sale of goods and taxable services as VAT stipulated by tax laws. After deducting the input tax 13% 9% 6% 5%3% allowable for deduction in the current period the difference is the value-added tax payable Urban Levied based on the actual value-added tax and maintenance and 7% consumption tax paid construction tax Surcharge for Levied based on the actual value-added tax and 3% education consumption tax paid Local education Levied based on the actual value-added tax and 2% surcharge consumption tax paid Levied at 25% of the taxable income Enterprise except for the Levied based on the taxable income enterprises enjoying Income tax tax preferences as described below. (1) For self-owned and self-used properties: Based on the original value of the property after a 1.2% (ad valorem Property tax deduction of 10%-30%; basis) 12% (rental basis) (2) For leased self-owned properties: Based on the rental income from the properties Levied at RMB 2-8/m2 on the actual occupied land area for industrial use in Nanshan District Urban land use Shenzhen; levied at RMB 1/m2 on the actual tax occupied land area for industrial use in Zhongshan City Overseas taxes are calculated in accordance with Overseas taxes the tax laws and regulations of overseas countries and regions The taxpayers subject to different corporate income tax rates are as follows: 165Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Name of taxpayer Income tax rate The Company 15% Shenzhen Nanshan Power Engineering Company 15% 2. Tax subsidy (1) Corporate income tax 1) The Company has obtained the National High-Tech Enterprise Certificate with the serial number GR202444200365 which is valid for three years. The Company is entitled to the preferential corporate income tax rate for high-tech enterprises at 15% for the period from 2024 to 2026. 2) Shenzhen Nanshan Power Engineering Company has obtained the National High-tech Enterprise certification certificate with the number GR202344200269 which is valid for 3 years.From 2023 to 2025 it is entitled to the preferential corporate income tax for high-tech enterprises with a reduced rate of 15%. (2) Value-added tax Approval Scope of Tax Company Relevant regulations Approving Validity document reduction/ category name and policy basis authority period number exemption Measures for the Announ VAT Shenzhen Administration of cement Shenzhen exempti Nanshan VAT Exemption on No. 29 Qianhai on for Cross-border Taxable [2016] of Power State cross- VAT Engineerin Activities in the the State - Taxation border Replacement of Taxation g Bureau taxable Administ Company Business Tax with activities VAT ration Announ Announcement of the cement VAT Shenzhen Ministry of Finance No. 11 exempti Nanshan and the State Taxation [2026] of on for Effective Power Administration on VAT the cross- from January Engineerin Policies Regarding Ministry border 1 2026 g Value-Added Tax and of taxable Company Consumption Tax for Finance activities Export Businesses and the 166Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 State Taxation Administ ration V. Notes to items in consolidated financial statements Unless otherwise specified in the financial statement data disclosed below "beginning of the year" refers to January 1 2025 "end of the year" refers to December 31 2025 "this year" refers to the period from January 1 2025 to December 31 2025 "last year" refers to the period from January 1 2024 to December 31 2024 and the monetary unit is RMB Yuan. 1. Monetary funds Amount as at the Item Balance at year-end beginning of the year Cash on hand 30635.37 30264.98 Bank deposits 133266301.05 471032644.67 Other monetary funds 8293402.62 7916312.01 Total 141590339.04 478979221.66 Including: The total amount of 6030197.066190580.08 deposit abroad Among them the details of monetary funds that are restricted in use due to mortgage pledge or freezing as well as those placed overseas with restrictions on fund repatriation are as follows: Amount as at the Item Balance at year-end beginning of the year Guarantee deposits etc. 8334730.76 7912100.00 Total 8334730.76 7912100.00 In addition as of the end of 2025 there were no other funds in the balance of monetary funds that were restricted in use due to mortgage pledge or freezing or that had potential recovery risks. 2. Financial assets held for trading 167Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as Balance at year- at the Item end beginning of the year Financial assets measured at fair value and whose changes 291000000.00 are included in the current profits and losses Including: Debt instrument investments Equity instrument investments Derivative financial instruments Others (Note 1) 291000000.00 Financial assets measured at fair value through current 50000000.00 profit or loss Including: Debt instrument investments Hybrid instrument investments Others (Note 2) 50000000.00 Total 341000000.00 Note 1: The Company's other trading financial assets are structured deposits placed with commercial banks. As of December 31 2025 the balance of structured deposits was RMB 291000000.00. Note 2: The Company's other financial assets designated as at fair value through profit or loss are investments in private equity funds. The Company has designated them as financial assets at fair value through profit or loss mainly because the contractual cash flow characteristics of such financial assets are not solely payments of principal and interest on the principal amount outstanding and they do not meet the classification conditions for financial assets measured at amortized cost or at fair value through other comprehensive income. In accordance with the relevant provisions of the Enterprise Accounting Standards they are designated under this category for accounting. As of December 31 2025 the balance of these trading financial assets was RMB 50000000.00. 3. Account receivable (1) Accounts receivable by aging 168Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Book balance at year- Book balance at the beginning of the Category end year Within 1 year (including 1 81840666.0544124575.22 year) 1-2 years 8839661.81 21094465.13 2-3 years 21358368.01 14485054.31 Over 3 years 18100707.87 3648959.88 Total 130139403.74 83353054.54 (2) Accounts receivable by bad debt provision method Balance at year-end Balance of Book Bad debt provisions Category Provision Percenta Book balance Amount Amount percenta ge (%) ge (%) Account receivable that withdrawal 17208128.6313.2217208128.63100.00 bad debt provision by single item provision for bad debt based on 112931275.11 86.78 3099877.82 2.74 109831397.29 credit risk portfolio Total 130139403.74 100.00 20308006.45 15.60 109831397.29 (Continued) Amount as at the beginning of the year Balance of Book Bad debt provisions Category Provision Percent Book balance Amount Amount percenta age (%) ge (%) Account receivable that withdrawal bad 15128128.6318.1515128128.63100.00 debt provision by single item provision for bad debt based on credit 68224925.91 81.85 407900.00 0.60 67817025.91 risk portfolio Total 83353054.54 100.00 15536028.63 18.64 67817025.91 169Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (3) Bad debt provision for accounts receivable on an individual basis Amount as at the beginning of the year Balance at year-end Name Bad debt Bad debt Provision Reasons for Balance of Book Balance of Book provisions provisions percentage (%) provision China Machinery Estimated to be 11600475.0711600475.0711600475.0711600475.07100.00 Engineering Co. Ltd. irrecoverable Powerchina Hubei Electric Estimated to be Power Construction Co. 2080000.00 2080000.00 100.00 irrecoverable Ltd.Shenzhen Petrochemical Historical legacy Oil Products Bonded 3474613.06 3474613.06 3474613.06 3474613.06 100.00 issues long- Trading Company standing Other small-amount Estimated to be 53040.5053040.5053040.5053040.50100.00 receivables irrecoverable Total 15128128.63 15128128.63 17208128.63 17208128.63 100.00 170Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (4) Bad debt provision for accounts receivable by portfolio Balance at year-end Name Balance of Book Bad debt provisions Provision percentage (%) Portfolio 2: Receivables from 42375469.95 power generation and sales Portfolio 3: Receivables from 70555805.163099877.824.39 integrated energy services Total 112931275.11 3099877.82 2.74 (5) Provision Reversal and Recovery of Bad Debt Provisions on Accounts Receivable for the Current Year Change amount for the year Catego Amount as at the beginning of Balance at year- ry the year Recovery or Transfer or Accrual end reversal write off Account s receivab le for which expecte d credit 15128128.632080000.017208128.63 losses 0 are provide d for on an individu al basis Account s receivab le for which expecte d credit losses 2691977.8 are 407900.00 3099877.82 2 provide d for based on credit risk portfoli os 4771977.8 Total 15536028.63 20308006.45 2 There was no recovery or reversal of bad debt provision of a significant amount during the year. 171Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (6) No accounts receivable were actually written off during the year (7) Top five accounts receivable and contract assets in terms of the ending balances by debtors Ratio to the total Ending balance ending of bad debt Ending balance of Ending balance of balance of Ending balance provision for Unit name accounts accounts receivable accounts of contract assets accounts receivable and contract assets receivable receivable and and contract assets contract assets Shenzhen Power Supply Bureau 42432621.76 42432621.76 27.99 Co. Ltd.China Machinery 41732799.4941732799.4927.5314016370.97 Engineering Co.Ltd.Guangdong Power Grid Co. 21093415.61 21093415.61 13.92 Ltd.SPIC (Zhongshan) 13463211.0113463211.018.88 Smart Energy Co. Ltd.Shenzhen Energy 6535090.73 6535090.73 4.31 Corporation Total 111793927.59 13463211.01 125257138.60 82.63 14016370.97 4. Contract assets (1) Contract assets Balance at year-end Amount as at the beginning of the year Item Balance of Bad debt Book Balance of Bad debt Book Book provisions balance Book provisions balance Progress 20224907.4820224907.48 payments Quality retention 1216764.24 1216764.24 95580.68 95580.68 money 172Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Amount as at the beginning of the year Item Balance of Bad debt Book Balance of Bad debt Book Book provisions balance Book provisions balance for projects Total 21441671.72 21441671.72 95580.68 95580.68 (2) Significant changes in book value during the year and reasons Item Changes Reason for changes Zhongshan Guzhen 150MW/300MWh 13463211.01 The main reason is the independent energy storage addition of a new subsidiary power station project (Phase I) through a business Specialized Subcontract for combination not under Photovoltaic Power common control during the Generation Project under the period. Its contract assets were General Construction Contract 3643590.92 included in the scope of the Package II of the Shenzhen consolidated financial University of Technology statements leading to a Construction Project corresponding increase in Subcontract for Construction contract assets. Additionally and Installation Works under as the acquired subsidiary's the General Construction business operations proceeded Contract of Section 2 of the 1533536.53 normally projects completed Zhengdou Photovoltaic but not yet accepted also Demonstration and increased accordingly.Experimental Base Project in Garzê Prefecture Total 18640338.46 (3) Contract assets by bad debt provision method Balance at year-end Balance of Book Bad debt provisions Category Provision Percentage Book balance Amount Amount percentage (%) (%) Account receivable that withdrawal bad 173Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Balance of Book Bad debt provisions Category Provision Percentage Book balance Amount Amount percentage (%) (%) debt provision by single item provision for bad debt based on credit 21441671.72 100.00 21441671.72 risk portfolio Total 21441671.72 100.00 21441671.72 (Continued) Amount as at the beginning of the year Balance of Book Bad debt provisions Category Provision Percent Book balance Amount Amount percentag age (%) e (%) Account receivable that withdrawal bad debt provision by single item provision for bad debt based on credit 95580.68 100.00 95580.68 risk portfolio Total 95580.68 100.00 95580.68 1) No bad debt provision was made for contract assets on an individual basis during the year 2) Bad debt provision for contract assets by portfolio Balance at year-end Name Bad debt Provision Balance of Book provisions percentage (%) Within 1 year 21441671.72 Total 21441671.72 (Continued) 174Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the beginning of the year Name Bad debt Provision Balance of Book provisions percentage (%) Within 1 year 95580.68 Total 95580.68 (4) No bad debt provision was made for contract assets during the year (5) No material amount of bad debt provisions was recovered or reversed during the current year (6) No contract assets were actually written off during the year 5. Other receivables Amount as at the beginning Item Balance at year-end of the year Interest receivable Dividend receivable Other receivables 361729062.93 131831575.62 Including: Receivables for land reservation and acquisition 354967762.00 112298115.00 compensation (Note) Total 361729062.93 131831575.62 Note: The receivable from land reserve compensation represents the land reserve compensation confirmed by Shenzhen Nanshan Power Zhongshan Company a subsidiary of the Company. The change during the period is mainly due to the completion of handover of part B of the land parcel by Shenzhen Nanshan Power Zhongshan Company with the corresponding receivable from land reserve compensation recognized accordingly. Details are as follows: On December 12 2023 Shenzhen Nanshan Power Zhongshan Company signed the "State- owned Land Use Rights Recovery Agreement" and the "Relocation Compensation Agreement" with the Management Committee of Cuiheng New Area agreeing that the Management Committee of Cuiheng New Area would acquire three parcels of state-owned land use rights of Shenzhen Nanshan Power Zhongshan Company located in Hengmen Industrial Zone Nanlang Street Cuiheng New Area Zhongshan City for a total compensation of RMB 584453529.00. The Management Committee of Cuiheng New Area entrusted Zhongshan Xiwan Construction Investment Co. Ltd. to pay and advance the project compensation funds on its behalf.On November 4 2024 to secure the construction land for the 300MW/600MWh Independent Energy Storage Power Station (Phase I) project in Cuiheng New Area Zhongshan City and to 175Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 ensure the smooth progress of the land reservation and acquisition of Shenzhen Nanshan Power Zhongshan Company Shenzhen Nanshan Power Zhongshan Company signed a "Supplemental Agreement" with the Management Committee of Cuiheng New Area. This agreement divided the original 434.86 mu parcel into two parts: Parcel A and Parcel B. Parcel A is approximately 190.87 mu with a compensation price of RMB 224711593.00 and Parcel B is approximately 244 mu with a compensation price of RMB 359741936.00.On November 29 2024 Shenzhen Nanshan Power Zhongshan Company signed the "Land Handover Confirmation Letter" for Parcel A with the Management Committee of Cuiheng New Area completing the handover confirmation. Concurrently as stipulated in the agreement Shenzhen Nanshan Power Zhongshan Company submitted a land recovery application for the entire 434.86 mu parcel to the Zhongshan Municipal Natural Resources Bureau and obtained the "Administrative Decision Letter" on December 5 2024 completing the land cancellation registration for the project.In accordance with the Accounting Standards for Business Enterprises and the CSRC's "Regulatory Application Guidance - Accounting No. 3" Parcel A has met the conditions for derecognition. As of the end of 2024 the cumulative compensation received for Parcel A was RMB 112413478.00 with an outstanding amount of RMB 112298115.00. The handover of Parcel B was not completed during the period and the received compensation advance of RMB 107922581.00 was recorded as other current liabilities in accordance with accounting standards and not recognized as receivables.On December 31 2025 Shenzhen Nanshan Power Zhongshan Company signed the "Land Handover Confirmation Letter" for Parcel B with the Management Committee of Cuiheng New Area completing the handover confirmation for Parcel B. In accordance with the Accounting Standards for Business Enterprises and the CSRC's "Regulatory Application Guidance - Accounting No. 3" Parcel B has met the conditions for derecognition. Accordingly the compensation advance originally recorded as other current liabilities was transferred to receivables for land reservation and acquisition compensation and the remaining receivables were recognized.As of December 31 2025 the cumulative compensation received for Parcel A was RMB 112413478.00 with an outstanding amount of RMB 112298115.00. The cumulative compensation received for Parcel B was RMB 107922581.00. Regarding the outstanding amount for Parcel B based on the negotiation and arrangement between the parties on relevant matters Shenzhen Nanshan Power Zhongshan Company agreed to deduct the corresponding amount of RMB 9149708.00 from the final compensation payment for the land reservation and acquisition.Based on this the outstanding amount for Parcel B is calculated to be RMB 242669647.00.According to the "Relocation Compensation Agreement - Supplemental Agreement" the remaining compensation for both Parcel A and Parcel B shall be paid no later than December 31 2026. If payment is not made on time the parties may amicably negotiate an extension of one year to December 31 2027. 5.1 Other receivables 176Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (1) Other receivables by nature Book balance at year- Book balance at the Payment nature end beginning of the year External unit transactions 375874499.74 146283298.87 Legacy payments 11724938.94 11705041.79 Security deposits and deposits 4930362.46 4674076.67 Others 609817.83 559817.18 Total 393139618.97 163222234.51 (2) Other receivables by aging Book balance at the Category Book balance at year-end beginning of the year Within 1 year (including 1 year) 245361010.04 116706098.92 1-2 years 116034962.50 322956.77 2-3 years 315182.00 Over 3 years 31428464.43 46193178.82 Total 393139618.97 163222234.51 (3) Other receivables by bad debt provision method Balance at year-end Balance of Book Bad debt provisions Category Provision Percentage Book balance Amount Amount percentage (%) (%) Account receivable that withdrawal 31410556.047.9931410556.04100.00 bad debt provision by single item provision for bad 361729062.9392.01361729062.93 debt based on credit 177Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Balance of Book Bad debt provisions Category Provision Percentage Book balance Amount Amount percentage (%) (%) risk portfolio Total 393139618.97 100.00 31410556.04 7.99 361729062.93 (Continued) Amount as at the beginning of the year Balance of Book Bad debt provisions Category Provision Percentage Book balance Amount Amount percentage (%) (%) Account receivable that withdrawal 31390658.8919.2331390658.89100.00 bad debt provision by single item provision for bad debt based 131831575.6280.77131831575.62 on credit risk portfolio Total 163222234.51 100.00 31390658.89 19.23 131831575.62 1) Other receivables with bad debt provision made on an individual basis 178Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the beginning of the Balance at year-end year Provisio Name Reasons Balance of Bad debt Balance of Bad debt n for Book provisions Book provisions percent provision age (%) Huiyang Kangtai 14311626.7014311626.7014311626.7014311626.70100.00 Industrial Co.ltd Receivables for employee benefit fund 9969037.63 9969037.63 9988934.78 9988934.78 100.00 A dividends and historical taxes legacy Shandong issue Jinan Power long- Generation 3560000.00 3560000.00 3560000.00 3560000.00 100.00 standing Equipment and Factory Co.expected Ltd.to be Receivables unrecover for employee 1736004.16 1736004.16 1736004.16 1736004.16 100.00 able. dormitory purchases Receivables for Zhongshan 1000000.001000000.001000000.001000000.00100.00 cogeneration project Others 813990.40 813990.40 813990.40 813990.40 100.00 Total 31390658.89 31390658.89 31410556.04 31410556.04 100.00 — 2) Other receivables with bad debt provision made by portfolio Balance at year-end Name Bad debt Provision Balance of Book provisions percentage (%) Portfolio V: Portfolio of 3856534.69 security deposits deposits and 179Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Name Bad debt Provision Balance of Book provisions percentage (%) petty cash Portfolio VII: Other various receivables and temporary 357872528.24 payments Total 361729062.93 3) Bad debt provision for other receivables made under the general model for expected credit losses Stage 1 Stage 2 Stage 3 Expected credit Expected Expected credit losses for the Bad debt credit losses loss over life entire duration Total provisions over the next (no credit (credit 12 months impairment) impairment occurred) Balance as of 31390658.8931390658.89 January 1 2025 Balance as of January 1 2025 in the current year ——Transfer to stage II ——Transfer to stage III -- Reversal to the II stage -- Reversal to the I stage Provision in 19897.1519897.15 Current Year Reversal in Current Year Conversion in Current Year 180Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Stage 1 Stage 2 Stage 3 Expected credit Expected Expected credit losses for the Bad debt credit losses loss over life entire duration Total provisions over the next (no credit (credit 12 months impairment) impairment occurred) Write off in Current Year Other changes Balance as of 31410556.0431410556.04 December 31 2025 (4) Bad debt provision for other receivables accrued recovered or reversed during the year Change amount for the year Amount as at Recovery Transfer Ot Balance at year- Category the beginning Accrual or or write her end of the year reversal off s Account receivabl e that withdraw al bad 31390658.89 19897.15 31410556.04 debt provision by single item provision for bad debt based on credit risk portfolio Total 31390658.89 19897.15 31410556.04 (5) No other receivables were actually written off during the year (6) Top five other receivables in terms of the ending balances by debtor 181Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Proportio n in the total year- Bad debt Payment Balance at year- Categor end provisions Unit name nature end y balance of Balance at year- other end receivable s (%) Zhongshan Receivable Xiwan s for land Within 1 Construction reservation 354967762.00 year 1 to 90.29 Investment Co. and 2 years Ltd. acquisition Huiyang External Kangtai unit Over 5 14311626.703.6414311626.70 Industrial Co. transaction years ltd s Receivables for employee Receivable Over 5 benefit fund s from 9988934.78 2.54 9988934.78 years dividends and employees taxes Shandong Jinan Power External Generation unit Over 5 3560000.000.913560000.00 Equipment transaction years Factory Co. s Ltd.Zhongshan Xiwan Property Deposit 1863742.00 1-2 years 0.47 Management Co. Ltd.Total — 384692065.48 — 97.85 27860561.48 6. Advances to suppliers (1) Aging of prepayments Amount as at the beginning of Item Balance at year-end the year 182Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Percentage Percentage Amount Amount (%)(%) Within 1 year 10983662.40 99.37 18960631.08 99.47 1-2 years 14932.96 0.14 90037.73 0.47 2-3 years 48500.00 0.44 Over 3 years 5887.44 0.05 11683.23 0.06 Total 11052982.80 100.00 19062352.04 100.00 (2) Top five prepayments in terms of year-end balances by prepayment object Proportion in the total Unit name Balance at year-end year-end balance of prepayments (%) Shenzhen Gas Corporation Ltd. 9766870.62 88.36 Guangdong Power Grid Co. Ltd. 450000.00 4.07 Guangzhou Nanyang Cable 231736.002.10 Group Co. Ltd.OCT Property (Group) Co. Ltd.Commercial Property 98500.00 0.89 Management Branch China Life Insurance Company 87531.000.79 Limited Shenzhen Branch Total 10634637.62 96.21 7. Inventories (1) Category of Inventory Balance at year-end Provision for inventory depreciation or Item Balance of Book provision for Book balance impairment of contract performance costs Spare parts etc. 112064370.81 75758884.19 36305486.62 Auxiliary materials and 302731.04 302731.04 low-value 183Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Provision for inventory depreciation or Item Balance of Book provision for Book balance impairment of contract performance costs consumables etc.Contract performance 1317495.23 1317495.23 cost Others 47196.59 47196.59 Total 113731793.67 75758884.19 37972909.48 (Continued) Amount as at the beginning of the year Provision for inventory depreciation or Item Balance of Book provision for Book balance impairment of contract performance costs Spare parts etc. 133818765.80 55519200.72 78299565.08 Auxiliary materials and 417181.8679264.71337917.15 low-value consumables etc.Contract 1549695.971549695.97 performance cost Others 47196.59 47196.59 Total 135832840.22 55598465.43 80234374.79 (2) Provision for inventory depreciation and provision for impairment of contract performance costs 184Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as Increase in the year Closing balance at the Balance at Item Other Other beginning of Accrual Write-off year-end s s the year Spare parts 55519200.7 26366298.9 6126615.4 75758884.1 etc. 2 0 3 9 Auxiliary materials and low- 79264.7179264.71 value consumables etc. 55598465.426366298.96205880.175758884.1 Total 3049 8. Other current assets Amount as at the Item Balance at year-end beginning of the year Transferable certificates of 238230831.36232165987.85 deposit and accrued interest Deductible VAT input tax 23972945.62 8614307.70 Advance payment of income tax 4050115.85 6583089.98 Employee benefits and relocation expenses paid for production suspension due to 37899306.75 land reservation and acquisition etc. (Note) Others 8494.29 265846.94 Total 266262387.12 285528539.22 Note: The decrease in the ending balance of other current assets was mainly due to the completion of the land reservation acquisition and transfer confirmation for Parcel B by Shenzhen Nanshan Power Zhongshan Company during the period. The related employee benefits and relocation expenses were transferred to gains on asset disposal resulting in a decrease in other current assets.For details on the land reservation and acquisition please refer to Note V. 5 Other Receivables in these financial statements. 185Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 9. Investment in other equity instruments (1) Investment in other equity instruments Increase /decrease in reporting period Amount as at Gains accrued Loss accrued Balance at Item the beginning Add Decreased to other to other Others year-end of the year investment investment comprehensive comprehensive income income Zhong Sheng Technology (Jiangsu) 162782620.928086845.66170869466.58 Group Co. Ltd. (Note 1) Shenzhen Yuanzhi Ruixin New Generation Information Technology Private Equity Investment Fund 81400433.65 7346000.00 18599566.35 -92654000.00 Partnership (Limited Partnership) (Note 2) Jiangxi Nuclear Power Co. Ltd. (Note 60615000.002694590.6263309590.62 1) Shenzhen New Energy Storage Industry Equity Fund Partnership 50000000.00 -50000000.00 (Limited Partnership) (Note 2) Shenzhen Petrochemical Oil Products Bonded Trading Company 186Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Increase /decrease in reporting period Amount as at Gains accrued Loss accrued Balance at Item the beginning Add Decreased to other to other Others year-end of the year investment investment comprehensive comprehensive income income Total 354798054.57 7346000.00 29381002.63 -142654000.00 234179057.20 (2) Details of non-trading equity instrument investments Amount Reasons designated Gains accumulated Losses accumulated Reasons for the Dividend transferred from as being measured into other into other transfer of other income the other at fair value Item comprehensive comprehensive comprehensive recognized comprehensive through other income at the end income at the end income into during the year income to retained comprehensive of the year of the year retained earnings earnings income Zhong Sheng Planned to be held Technology (Jiangsu) 5600000.00 30869466.58 for a long time Group Co. Ltd.Jiangxi Nuclear Power Planned to be held 2694590.62 Co. Ltd. for a long time Shenzhen Planned to be held Petrochemical Oil 2500000.00 for a long time Products Bonded 187Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Trading Company Total 5600000.00 33564057.20 2500000.00 — Note 1: The change in other comprehensive income recognized during the period is mainly attributable to the continuous growth in the operating performance of the investees. As the investees are non-public companies with no quoted prices in active markets and the Group holds relatively low equity interests without significant influence it is not practicable to adopt the income approach or market approach for the valuation of such shareholdings. Accordingly Level 1 and Level 2 inputs are not available. The Group determines the fair value of such equity investments based on the investees’ net assets at the end of the period and recognizes the relevant changes in fair value accordingly.Note 2: During the reporting period other changes in other equity instrument investments were mainly due to the decrease resulting from the reclassification of the accounting category for this investment. The reasons for the reclassification are as follows: (1) In accordance with the Q&A on the Implementation of the Financial Instruments Standards issued by the Ministry of Finance in April 2021 and pursuant to Articles 16 17 18 and 20 of the Financial Instruments Presentation Standard with reference to the relevant Application Guidance for puttable instruments (such as redeemable fund units of certain open?end funds) and financial instruments for which the issuer has an obligation only to deliver its net assets proportionately to another party upon liquidation (such as units of closed?end funds with limited lives wealth management product units trust schemes and other structured entities with fixed lives) if they meet the requirements of Articles 16 17 and 18 of the Financial Instruments Presentation Standard the issuer shall present them as equity instruments in its separate financial statements. In the minority interests section of the consolidated financial statements of the enterprise group the corresponding interests shall be classified as financial liabilities. The aforementioned financial instruments do not meet the definition of equity instruments from the issuer's perspective nor do they constitute equity instrument investments from the investor's perspective. Investors may not designate such instruments as financial assets measured at fair value with changes recognized in other comprehensive income. (2) Both the Yuanzhi Ruixin Information Technology Fund and the New Energy Storage Industry Investment Fund in which the Company and its subsidiaries have invested are finite-life entities and cannot avoid the obligation to deliver cash or other financial assets to investors upon maturity. Therefore they do not meet the definition of equity instruments and cannot be designated as financial assets at fair value through other comprehensive income. 188Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (3) Based on the criteria for determining significant influence under Accounting Standard for Business Enterprises No. 2 - Long-term Equity Investments and Applicable Regulatory Guidelines - Accounting Category No. 1 from the investor’s perspective the investments governed by the Standard for Long-term Equity Investments are equity investments. Since the Standard does not define the term "equity investment" enterprises shall apply the principle of substance over form and analyze and judge relevant facts and circumstances. If the risks and rewards substantially borne by the investor are significantly different from those of ordinary shareholders the investment shall be accounted for as a financial instrument in its entirety. If the risks and rewards substantially borne by the investor are the same as those of ordinary shareholders and the investor has significant influence over the investee it shall be classified as a long-term equity investment.According to the partnership agreement of the Yuanzhi Ruixin Information Technology Fund the limited partnership shall establish an investment decision- making committee responsible for reviewing and deciding on the partnership's investment management and exit matters as well as value-added investments of idle funds other than passive investments. The committee is composed of five members and New Power Company has the right to recommend one of them. Based on this right New Power Company is able to exert significant influence over the financial and operating decisions of the Yuanzhi Ruixin Information Technology Fund.Therefore this investment has been reclassified to be accounted for as a long-term equity investment. In summary the reclassification of the investment in the Yuanzhi Ruixin Information Technology Fund from other equity instrument investments to long-term equity investments is an adjustment within long-term asset items which complies with the Accounting Standards for Business Enterprises in all material respects and there is no use of reclassification to manipulate net profit and other comprehensive income. (4) According to the partnership agreement of the New Energy Storage Industry Investment Fund the limited partnership shall establish an investment decision- making committee responsible for reviewing and deciding on the partnership's investment management and exit matters as well as value-added investments of idle funds other than passive investments. The committee is composed of five members. Due to its low investment ratio the Company has no corresponding nominee and does not have significant influence over the New Energy Storage Industry Investment Fund. Therefore it has been reclassified as a financial asset at fair value through profit or loss. This adjustment is an adjustment within long-term asset items which complies with the Accounting Standards for Business Enterprises in all material respects and there is no use of reclassification to manipulate net profit and other comprehensive income. 189Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 10. Long-term equity investments (1) Long-term equity investments Increase /decrease in reporting period Opening Cash Closing Opening Equity method Adjustment of Withdrawal balance of Other dividends or Closing balance balance of Name balance (book Add Decrease affirmative other of impairment equity profits Others (book value) impairment value) investment investment profit and loss comprehensive impairment provision changes declared to provision on investments income provision be paid Affiliated Company Jiangsu Liaoyuan Environmental Protection 90587521.44 7919718.35 809700.00 97697539.79 Technology Co.Ltd.Shenzhen Yuanzhi Ruixin New Generation 4525976.0492654000.0097179976.04 Information Technology Private Equity 190Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Investment Fund Partnership (Limited Partnership) (Note 1) Shenzhen Yuanzhi Zhongkai Energy Storage Technology Innovation 1950000.00 1950000.00 Private Equity Fund Partnership (Limited Partnership) (Note 2) Total 90587521.44 1950000.00 12445694.39 809700.00 92654000.00 196827515.83 Note 1: For details of the relevant changes please refer to the explanations in Note 1 of Note V.9 Other Equity Instrument Investments in these financial statements.Note 2: During the reporting period the Company's subsidiary Shenzhen Nanshan Power Environmental Protection Company made a new investment in Shenzhen Yuanzhi Zhongkai Energy Storage Science and Technology Private Equity Fund Partnership (Limited Partnership). According to the investment agreement the partnership shall establish an investment decision-making committee composed of 5 members all of whom are appointed by the executive partner with 1 member recommended by Shenzhen Nanshan Power Environmental Protection Company. Shenzhen Nanshan Power Environmental Protection Company has voting rights on 191Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 major matters such as project investment and post-investment management and is able to exert significant influence over the partnership. Therefore this investment is presented as a long-term equity investment and accounted for using the equity method. 192Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 11. Investment properties (1) Investment properties measured at the cost mode Item House Building Total I. Original price 1. Beginning balance 9708014.96 9708014.96 2. Increase in the current period 3. Decrease in the reporting period 4. Year-end Balance 9708014.96 9708014.96 II. Accumulated amortization 1. Beginning balance 8210005.12 8210005.12 2. Increase in the current period 166556.76 166556.76 (1) Provision or amortization 166556.76 166556.76 3. Decrease in the reporting period 4. Year-end Balance 8376561.88 8376561.88 III. Impairment provision 1. Beginning balance 2. Increase in the current period 3. Decrease in the reporting period 4. Year-end Balance IV. Book value 1. Carrying value at year-end 1331453.08 1331453.08 2. Carrying amount at the beginning of 1498009.841498009.84 the year 12. Fixed assets Amount as at the Item Balance at year-end beginning of the year Fixed assets (Note 1) 544902436.89 377498094.30 Disposal of fixed assets (Note 2) 73705696.67 Total 544902436.89 451203790.97 Note 1: The increase in the year-end balance of fixed assets was mainly due to the completion of the transfer to fixed assets and the commissioning of the 300MW/600MWh independent energy storage power station (Phase I project) in Cuiheng New District Zhongshan City by the company's subsidiary Shenzhen Nanshan Power Xiwan Company during the reporting period. This resulted 193Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 in an increase of RMB 194 million in the original value of fixed assets on the consolidated financial statements.Note 2: The decrease in the year-end balance of disposal of fixed assets was mainly due to the completion of the public listing and transfer of generator units and related assets by the company's subsidiary Shenzhen Nanshan Power Zhongshan Company in March 2025. During the reporting period the company received the full transfer price installment interest and value-added tax from Fujian Hengjing Investment Co. Ltd. totaling RMB 72253308.58. 194Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 12.1 Fixed assets (1) Fixed assets Buildings structures Means of Electronic equipment Item Machinery equipment Total and renovations transportation and other equipment I. Original price 1. Beginning balance 294719041.34 1670156222.33 5208602.47 40933308.11 2011017174.25 2. Increase in the current 22470929.18173861697.90205993.61623494.57197162115.26 period (1) Purchase 154790.78 545303.45 700094.23 (2) Transfer from 22470929.18173861697.90196332627.08 construction in progress (3) Increase in business 51202.8378191.12129393.95 combination 3. Decrease in the 935422.58138687.331035090.072109199.98 reporting period (1) Disposal or scrapping 138687.33 1029610.07 1168297.40 (2) Others 935422.58 5480.00 940902.58 4. Year-end Balance 317189970.52 1843082497.65 5275908.75 40521712.61 2206070089.53 II. Accumulated depreciation 1. Beginning balance 207817321.47 1267888430.12 4707082.87 34155145.08 1514567979.54 195Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 2. Increase in the current 5282978.6621198412.39615755.401533200.4528630346.90 period (1) Provision 5282978.66 21198412.39 596498.99 1520966.57 28598856.61 (2) Increase in business 19256.4112233.8831490.29 combination 3. Decrease in the 131752.96815467.62947220.58 reporting period (1) Disposal or scrapping 131752.96 810535.62 942288.58 (2) Others 4932.00 4932.00 4. Year-end Balance 213100300.13 1289086842.51 5191085.31 34872877.91 1542251105.86 III. Impairment provision 1. Beginning balance 17852047.84 100972179.24 53176.48 73696.85 118951100.41 2. Increase in the current period (1) Provision 3. Decrease in the 34553.6334553.63 reporting period (1) Disposal or scrapping 34553.63 34553.63 4. Year-end Balance 17852047.84 100972179.24 53176.48 39143.22 118916546.78 IV. Book value 196Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 1. Carrying value at year- 86237622.55453023475.9031646.965609691.48544902436.89 end 2. Carrying amount at the 69049672.03301295612.97448343.126704466.18377498094.30 beginning of the year 197Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (2) Fixed assets without certificate of title completed Item Book balance Reason Power Plant Comprehensive Office Building 8822150.26 Turbine building 1895345.65 New Power Supply Building (Four-Control Building) 1212933.80 Cooling tower 673259.25 Chemical water treatment workshop 232960.00 Problems left over from history Circulating water pump house 196984.54 Oil depot complex building 443246.19 Building 405 Yannan Road 540675.24 Oil Dispensing Platform 259700.00 Main entrance reception 47264.13 12.2 Liquidation of fixed assets Amount as at the Item Balance at year-end beginning of the year Machinery equipment 72098979.01 Means of transportation 50000.00 Electronic equipment and other 189564.16 equipment Others 1367153.50 Total 73705696.67 Note: For details please refer to the notes in Note V. 12 Fixed assets and disposal of fixed assets in these financial statements. 13. Construction in progress Amount as at the beginning Item Balance at year-end of the year Construction in progress 3113338.75 6983713.85 Total 3113338.75 6983713.85 198Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 13.1 Construction in progress (1) Construction in progress Balance at year-end Amount as at the beginning of the year Withdrawn Withdrawn Item Balance of Book impairment Book balance Balance of Book impairment Book balance provision provision Nanshan Power Plant oil-to-gas 9441286.39 9441286.39 9441286.39 9441286.39 conversion project Nanshan Power Plant technical 2675000.001605000.001070000.004238664.961605000.002633664.96 transformation project Zhongshanwan PV Energy Storage and 1576059.241576059.24 Charging Service Project Zhongshan Independent Energy Storage Power 467279.51 467279.51 Station (Phase II & III) 199Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Amount as at the beginning of the year Withdrawn Withdrawn Item Balance of Book impairment Book balance Balance of Book impairment Book balance provision provision Zhongshan independent energy 4259294.184259294.18 storage power station (Phase I) Others 90754.71 90754.71 Total 14159625.14 11046286.39 3113338.75 18030000.24 11046286.39 6983713.85 (2) Changes of significant construction in progress during the year Closing balance Amount as at the Project name Increase in the year Other Balance at year-end beginning of the year Transferred to fixed assets decreases Zhongshan independent energy 4259294.18189886241.56194145535.74 storage power station (Phase I) Total 4259294.18 189886241.56 194145535.74 (Continued) 200Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Including: Accumulated Amount of Interest Ratio of capitalization Budgeted Amount Project capitalized capitalizatio accumulated amount of Project name (in ten thousand Progress interest for the n rate for Capital source project investment interest (in ten RMB) (%) current year (in the current in budget (%) thousand ten thousand year (%) RMB) RMB) Loans from Zhongshan independent financial energy storage power 30715.24 78.92 100.00 25.74 25.74 2.90 institutions and station (Phase I) own funds Total 30715.24 - - 25.74 25.74 2.90 - Note: The Zhongshan independent energy storage Phase I project of the Company's subsidiary Shenzhen Nanshan Power Xiwan Company reached its intended usable state in May 2025. In the current period RMB 194 million was transferred from construction in progress to fixed assets at the consolidated financial statement level. 201Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 14. Right-of-use assets (1) Right-of-use assets Houses and Land use rights and Item Total Building others I. Original price 1. Beginning balance 8696499.48 8696499.48 2. Increase in the current 346808.83 28096305.81 28443114.64 period 3. Decrease in the reporting period (1) Disposal 4. Year-end Balance 9043308.31 28096305.81 37139614.12 II. Accumulated depreciation 1. Beginning balance 2536479.05 2536479.05 2. Increase in the current 4412982.60 1404815.28 5817797.88 period (1) Provision 4412982.60 1404815.28 5817797.88 3. Decrease in the reporting period (1) Disposal 4. Year-end Balance 6949461.65 1404815.28 8354276.93 III. Impairment provision 1. Beginning balance 2. Increase in the current period 3. Decrease in the reporting period 4. Year-end Balance IV. Book value 1. Carrying value at 2093846.66 26691490.53 28785337.19 year-end 2. Carrying amount at 6160020.43 6160020.43 the beginning of the year 202Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Note: (1) The increase in right-of-use assets during the current period was mainly due to the construction of the Zhongshan independent energy storage project by Shenzhen Nanshan Power Xiwan Company. Right-of-use assets were recognized for the newly leased project land and the buildings on it during the current period. (2) The opening balance of right-of-use assets relates to the Company's operating lease of the 16th-17th floors of Hantang Building for office use. 15. Intangible assets (1) Details of intangible assets Item Land use right Patent Software Others Total I. Original price 1. Beginning 30800611.14138625.075187330.0236126566.23 balance 2. Increase in the current 1174849.41 39341.17 1214190.58 period (1) Purchase 1165452.44 1165452.44 (2) Increase in business 9396.97 39341.17 48738.14 combination 3. Decrease in the reporting period 4. Year-end 30800611.14138625.076362179.4339341.1737340756.81 Balance II.Accumulated amortization 1. Beginning 30755027.1666512.543955294.7234776834.42 balance 2. Increase in the current 6591.12 16766.22 459453.52 39341.17 522152.03 period (1) 6591.1216766.22451535.5539341.17514234.06 Withdrawal (2) Increase in 7917.97 7917.97 203Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Item Land use right Patent Software Others Total business combination 3. Decrease in the reporting period 4. Year-end 30761618.2883278.764414748.2439341.1735298986.45 Balance III.Impairment provision 1. Beginning balance 2. Increase in the current period 3. Decrease in the reporting period 4. Year-end Balance IV. Book value 1. Carrying value at year- 38992.86 55346.31 1947431.19 2041770.36 end 2. Carrying amount at the 45583.9872112.531232035.301349731.81 beginning of the year 16. Long-term deferred expenses Other Amount as at Amortization decrease Increase in the Balance at Item the beginning for the current s for the year year-end of the year year current year Major 5510756.56 2549470.90 1562633.73 6497593.73 204Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Other Amount as at Amortization decrease Increase in the Balance at Item the beginning for the current s for the year year-end of the year year current year repair expendit ure Renovati 292105.21222539.8969565.32 on costs Total 5802861.77 2549470.90 1785173.62 6567159.05 17. Deferred income tax assets and deferred income tax liabilities (1) Deferred tax assets without offset Amount as at the beginning of Balance at year-end the year Item Deductible Deductible Deferred tax Deferred tax temporary temporary Assets Assets difference difference Changes in fair value of 2500000.00625000.002500000.00625000.00 investment in other equity instruments Bad debt 42481.9210620.48 provisions Estimated 345106.0086276.50 liabilities Lease liabilities 25839468.05 6459867.02 Deductible loss 101792854.16 25448213.52 Total 130519910.13 32629977.52 2500000.00 625000.00 (2) Un-offset deferred income tax liabilities 205Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the beginning Balance at year-end of the year Item Deductible Deductible Deferred tax Deferred tax temporary temporary Liabilities Liabilities difference difference Carrying amount of 27085703.876771425.96 right-of-use assets One-time deduction 125758907.3331439726.83 for fixed assets Total 152844611.20 38211152.79 (3) Deferred tax assets or liabilities presented at net amount after offset Amount as at the beginning of Balance at year-end the year Balance of Offset Balance of Offset amount of Item deferred tax amount of deferred tax deferred tax assets or deferred tax assets or assets and liabilities after assets and liabilities after liabilities offset liabilities offset Deferred income 28365118.644264858.88625000.00 tax assets Deferred income 28365118.649846034.15 tax assets (4) Details of unrecognized deferred tax assets Amount as at the Item Balance at year-end beginning of the year Deductible temporary differences 747666656.061066179618.30 (Note) Deductible loss 582960196.13 425695527.42 Total 1330626852.19 1491875145.72 Note: The deductible temporary differences represent the total sum of each taxable entity within the consolidation scope without consolidation offset. They are primarily formed from provisions for impairment of long-term equity investments provision for inventory write-down provision for impairment of fixed assets and provision for impairment of receivables. The decrease in the current year was due to the disposal of two sets of gas-fired generator units by the subsidiary Shenzhen Nanshan Power Zhongshan Company during the year with the corresponding reversal of 206Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 the impairment provisions already made. (5) Deductible losses for which deferred tax assets have not been recognized will expire in the following years Year Ending amount Beginning amount Remark 202663604302.1463604302.14 202780366503.7480366503.74 202864019012.2464019012.24 202926972406.8427077804.55 203083108090.8528971851.73 203141303572.3241303572.32 203273523304.1173523304.11 203315746106.2515746106.25 203431083070.3431083070.34 2035103233827.30- Total 582960196.13 425695527.42 18. Other non-current assets Balance at year-end Amount as at the beginning of the year Withdrawn Withdrawn Item Balance Book Balance of Book impairmen impairmen of Book balance Book balance t provision t provision Prepayment for Project Constructio n of Zhongshan 4739340.5 4739340.5 Independent 6 6 Energy Storage Project (Note) Expenses related to 857135.8857135.8 the 857135.84 857135.84 44 functional replacement 207Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Amount as at the beginning of the year Withdrawn Withdrawn Item Balance Book Balance of Book impairmen impairmen of Book balance Book balance t provision t provision of Nanshan Power Plant 857135.8857135.85596476.45596476.4 Total 4 4 0 0 Note: The decrease in the balance of other non-current assets during the period was mainly because the 300MW/600MWh independent energy storage power station (Phase I project) in Cuiheng New District Zhongshan City of the Company's subsidiary Shenzhen Nanshan Power Xiwan Company was transferred to fixed assets and put into operation during the year. The prepayment for project works from the previous year has been transferred to fixed assets. 208Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 19. Assets with restrictions on the ownership or use right Balance at year-end Amount as at the beginning of the year Restrict Restrict Restrict Restrict Balanc Item Balance Book ed ed Book ed ed e of of Book balance circumst circumst balance circumst circumst Book ances ances ances ances F r Mone 833473 833473 Guarante o 79121 79121 Guarante tary Frozen 0.76 0.76 e deposit z 00.00 00.00 e deposit funds e n Acco Pledge unts d for receiv 209757 209757 Pledge bank able 01.75 01.75 borro (Note wings ) Pledge Fixed d for assets 816951 816951 Pledge bank (Note 72.60 72.60 borro ) wings 1110051110057912179121 Total — — — — 605.11605.1100.0000.00 Note: During the reporting period the newly added assets with restricted ownership were mainly due to the Company's subsidiary Shenzhen Nanshan Power Xiwan Company pledging its own fixed assets of the independent energy storage power station (Phase I project) and 47.62% of the accounts receivable generated from its operation to the Postal Savings Bank of China for a loan of RMB 90285550.79 and providing a pledge guarantee with 52.38% of the accounts receivable generated from the operation of its own 300MW/600MWh independent energy storage power station (Phase I project) in Cuiheng New District Zhongshan City for a loan of RMB 82108188.06 from the Shanghai Pudong Development Bank Shenzhen Branch. 20. Short-term borrowings (1) Classification of short-term borrowings 209Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the beginning Category of borrowings Balance at year-end of the year Unsecured borrowings (Note 142000000.00106558036.22 1) Pledged borrowings (Note 2) 30000000.00 162000000.00 Accrued interest on short-term 94604.4556972.97 borrowings Total 172094604.45 268615009.19 Note 1: During the reporting period the Company obtained an unsecured loan of RMB 48.00 million from Shanghai Pudong Development Bank Co. Ltd. Shenzhen Branch and an unsecured loan of RMB 94.00 million from China Merchants Bank Co. Ltd. Shenzhen Branch.Note 2: During the reporting period the Company's subsidiary Shennandian Engineering Company pledged its own invention patent rights to China Merchants Bank Co. Ltd. Shenzhen Branch for a loan of RMB 30.00 million. 21. Accounts payable (1) List of accounts payable Amount as at the Item Balance at year-end beginning of the year Payables for goods labor and 41864909.4513560180.89 services Electricity bill 796684.64 461976.72 Total 42661594.09 14022157.61 Note: The increase in the balance of accounts payable during the period compared to the end of the previous year was mainly due to the acquisition of Energy Technology Company under non- common control during this reporting period which led to the addition of this entity to the scope of consolidated financial statements resulting in a corresponding increase in accounts payable at the end of the period compared to the beginning of the period. At the same time the 300MW/600MWh independent energy storage power station (Phase I project) in Cuiheng New District Zhongshan City of Shenzhen Nanshan Power Xiwan Company has been transferred to fixed assets and put into operation during the period and the unsettled project payments at the end of the period also led to an increase in accounts payable. (2) Significant accounts payable with an aging of more than one year or overdue 210Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Reason for no settlement Unit name Balance at year-end or carrying-forward Guangzhou Zike Environmental 1872500.00 Not yet due Technology Co. Ltd.Shenzhen Yongtai Shuneng Retention money not yet 441926.35 Technology Co. Ltd. due Total 2314426.35 — 22. Other payables Amount as at the Item Balance at year-end beginning of the year Interest payable Dividend payable 22500000.00 Other payables 10823386.05 15685234.29 Total 33323386.05 15685234.29 22.1 Dividends payable Amount as at the Item Balance at year-end beginning of the year Ordinary shares dividends 22500000.00 Total 22500000.00 Note: The increase in dividends payable during the period was mainly because the Company's subsidiary Xiefu Company held its first shareholders' meeting of 2025 on December 23 2025 at which the "Profit Distribution Plan for 2024 of Xiefu Company" was reviewed and approved.Accordingly dividends payable were recognized leading to an increase in the balance of dividends payable at the end of the period compared to the beginning of the period. 22.2 Other payables (1) Other payables by nature Amount as at the beginning Payment nature Balance at year-end of the year Labor and service fees 8995374.51 14687088.11 Guarantee 1254325.72 750651.39 Others 573685.82 247494.79 Total 10823386.05 15685234.29 (2) Significant other payables with an aging of over 1 year or overdue 211Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year- Reason for no settlement or Unit name end carrying-forward Zhongshan Xiwan Construction 4415015.60 Not yet due Investment Co. Ltd.China Offshore Oil Guangdong 971444.00 Accrued expenses Natural Gas Co. Ltd.Shenzhen Shennong Kitchen Co. Security deposit not yet due for 300000.00 Ltd. payment Shenzhen Jinzhixin Investment Security deposit not yet due for 160000.00 Co. Ltd. payment Zhongshan Nanlang Construction 166492.72 Not yet due and Development Co. Ltd.Total 6012952.32 — 23. Contract liabilities (1) Contract liabilities Amount as at the beginning Item Balance at year-end of the year Prepayments received for comprehensive energy services 50000.00 Prepayments received for disposal of waste materials 130796.46 Total 130796.46 50000.00 (2) No significant contract liabilities with an aging of over 1 year 24. Employee compensation payable (1) Classification of employee benefits payable Amount as at Increase in the Balance at year- Item the beginning of Closing balance year end the year Short-term 16052879.47110632039.53107188425.0519496493.95 compensation Post- employment benefits - defi 17813926.38 12550866.55 5263059.83 ned contributi on plans 212Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at Increase in the Balance at year- Item the beginning of Closing balance year end the year Dismissal 872962.46872962.46 benefits Other benefits due within one year Total 16052879.47 129318928.37 120612254.06 24759553.78 (2) Short-term compensation Amount as at Increase in the Balance at year- Item the beginning Closing balance year end of the year Wages bonuses allowances and 15180182.34 89766895.18 86203229.46 18743848.06 subsidies Employee welfare 731700.11 4986114.72 5078811.21 639003.62 Social insurance 4680731.184675950.394780.79 premiums Including: Medical 3737049.093733355.893693.20 insurance Work injury 575285.92574591.22694.70 insurance Maternity 368396.17368003.28392.89 insurance Public reserves for 9267711.089267711.08 housing Union funds and 140997.021930587.371962722.91108861.48 staff education fee Short-term paid absences Short-term profit- sharing plans Total 16052879.47 110632039.53 107188425.05 19496493.95 (3) Defined contribution plans 213Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the Increase in the Balance at year- Item beginning Closing balance year end of the year Basic pension insurance 11945009.49 11932120.97 12888.52 Annuity payment 619363.08 618745.58 617.50 Enterprise annuity 5249553.815249553.81 contributions Total 17813926.38 12550866.55 5263059.83 25. Taxes and surcharges payable Amount as at the Item Balance at year-end beginning of the year VAT 7325234.37 4261775.21 Enterprise Income tax 590069.41 9140402.85 Individual Income tax 389405.86 712556.99 Stamp tax 160274.65 172648.01 Urban maintenance and 31046.6532043.68 construction tax Surcharge for education 13305.70 13687.09 Local education surcharge 8870.47 9201.24 Others 13591.08 6592.97 Total 8531798.19 14348908.04 26. Non-current liabilities due within 1 year Amount as at the Item Balance at year-end beginning of the year Long-term borrowings maturing 4156564.01 within one year Lease liabilities maturing within 3184246.734466835.32 one year Total 7340810.74 4466835.32 27. Other current liabilities (1) Classification of other current liabilities 214Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the Item Balance at year-end beginning of the year Output tax to be transferred 2425298.89 Interests of other partners in 403.82 partnership Progress payments for land reservation and acquisition 107922581.00 compensation (Note) Total 2425298.89 107922984.82 Note: The decrease in other current liabilities during the period was mainly due to the transfer of the compensation for Parcel B received by Shenzhen Nanshan Power Zhongshan Company a subsidiary of the Company for the land reservation and acquisition. The total compensation for the land reservation and acquisition of Parcel B is RMB 359592228 and the cumulative progress payments received as of the end of 2025 amounted to RMB 107922581. As of the end of the reporting period the handover of Parcel B has been completed and the corresponding compensation received has been transferred to gains on disposal of assets. For details of the relevant land reservation and acquisition matters please refer to Note V.5 Other receivables in these financial statements. 28. Long-term borrowings (1) Classification of long-term borrowings Amount as at the beginning Category of borrowings Balance at year-end of the year Pledged borrowings (Note) 168421492.31 Total 168421492.31 Note: For details of the new long-term borrowings during the reporting period please refer to the notes in Note V.19. 29. Lease liabilities Amount as at the beginning Item Balance at year-end of the year Lease liabilities 27852266.89 6592745.50 Non-current liabilities due -3184246.73-4466835.32 within one year Total 24668020.16 2125910.18 Note: For details of the new lease liabilities during the reporting period please refer to the 215Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 notes in Note V.14 Right-of-use assets in these financial statements. 30. Estimated liabilities Amount as at the Balance at year- Item beginning of the Reason end year Pending litigation 345106.00 Note 1 Others 19839.00 Total 364945.00 — Note 1: During the reporting period Energy Technology Company a subsidiary of the Company had a service contract dispute with Xinjiang Shizilu Information Consulting Co. Ltd.The pending litigation involves a present obligation and it is probable that an outflow of economic benefits will be required to settle the obligation. The amount can be measured reliably so a corresponding provision for liabilities of RMB 345106.00 was made. 31. Deferred income (1) Classification of deferred income Amount as at Increase Closing Balance at Item the beginning in the Reason balance year-end of the year year See Table Government 61522875.97 19609428.56 41913447.41 (2) for subsidies details Total 61522875.97 19609428.56 41913447.41 — (2) Government grant programs 216Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 The amoun The t of amount of new Year- other Asset- Liabilities subsid Others Year-end beginning income related/Income Item y Change Balance Balance included in -related added the current in the year current year Subsidy for special funds 750000.00 375000.00 375000.00 Asset-related for industrial development Support plan for industrial energy and resource conservation and comprehensiv e utilization 1095000.00 547500.00 547500.00 Asset-related projects to support green development and promote industrial "carbon peaking" Government subsidy for - 14181085.1 low-nitrogen 458768.16 13263548.3 458768.62 Asset-related 4 equipment 6 retrofitting 217Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 The amoun The t of amount of new Year- other Asset- Liabilities subsid Others Year-end beginning income related/Income Item y Change Balance Balance included in -related added the current in the year current year Subsidy for motor energy efficiency 228960.00 34560.00 194400.00 Asset-related improvement program Shenzhen atmospheric environment 43603288.0 4731818.1 38871469.9 Asset-related quality 8 6 2 improvement subsidy Subsidies for 2021–2022 Technical 846722.21 70666.68 776055.53 Asset-related Renovation Investment Projects Circular economy support fund 817820.54 127567.20 690253.34 Asset-related for sludge drying equipment 61522875.96345880.2-41913447.4 Total 7 0 13263548.3 1 6 32. Stock capital 218Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Increase/decrease in the current year Issua Amount as at the Bo Capitali nce Balance at year- Item beginning of the nus zation of Oth Subt of end year sha public ers otal new res reserve share Total share 602762596.00 602762596.00 capital 33. Capital reserves Amount as at the Increase in Closing Balance at year- Item beginning of the the year balance end year Share premium 233035439.62 233035439.62 Other capital 129735482.483519.72129731962.76 reserves Total 362770922.10 3519.72 362767402.38 219Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 34. Other comprehensive income Amount Less: Prior Less: Amount period transferred into included in profit and loss in other Year- the current Less: After-tax After-tax Amount composite Year-end Item beginning period that Income attribute to the attribute to before income income Balance Balance recognized into tax parent minority tax transfer to other expenses company shareholder retained comprehensive income in income in prior the current period period I. Other comprehensive income that cannot 1683054.57 29381002.63 29381002.63 31064057.20 be reclassified into profit or loss Including: Changes in fair 1683054.5729381002.6329381002.6331064057.20 value of investment in other equity 220Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount Less: Prior Less: Amount period transferred into included in profit and loss in other Year- the current Less: After-tax After-tax Amount composite Year-end Item beginning period that Income attribute to the attribute to before income income Balance Balance recognized into tax parent minority tax transfer to other expenses company shareholder retained comprehensive income in income in prior the current period period instruments Total of other comprehensive 1683054.57 29381002.63 29381002.63 31064057.20 income 221Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 35. Special reserves Amount as at Increase in the Balance at Item the beginning of Closing balance year year-end the year Work safety 5433144.375022566.75410577.62 cost Total 5433144.37 5022566.75 410577.62 Note: In accordance with the Administrative Measures for the Accrual and Use of Enterprise Work Safety Costs (Cai Zi [2022] No. 136) (issued on December 12 2022) the company accrues work safety costs for its power generation business which are recognized in the profit or loss for the current period and simultaneously transferred to special reserves. 36. Surplus reserve Amount as at the Increase in Closing Balance at year- Item beginning of the the year balance end year Statutory 310158957.87310158957.87 surplus reserve Discretionary 22749439.7322749439.73 surplus reserve Total 332908397.60 332908397.60 37. Retained profits Amount of Amount of Item current period previous period Unappropriated profits at the end of the previous year 185255604.81163346776.24 before adjustment Total adjustment to unappropriated profits at the beginning of the year (increase + decrease -) Including: Retrospective adjustments for Accounting Standards for Business Enterprises and related new regulations Changes in accounting policies Correcting of previous errors Change in the scope of consolidation under common control Other adjustment factors 222Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount of Amount of Item current period previous period Adjusted undistributed profit at the beginning of the 185255604.81163346776.24 year Add: Net profit for the current year attributable to 161038200.4021908828.57 owners of the parent company Less: Withdrawal of statutory surplus reserve Arbitrary surplus reserve withdrawn Appropriation to general risk reserve Common stock dividends payable Ordinary share dividends converted into share capital Transfer of other comprehensive income to retained earnings Others -1352892.26 Closing balance 347646697.47 185255604.81 38. Operating revenue and operating costs (1) Operating revenue and operating costs Amount incurred in the previous Amount year Item Business Business Business income cost income Business cost Income from Main 389841302.9 309891815.Business 6 62 437329918.38 410482141.18 Other business 11840280.14 5347883.32 5642037.47 4964591.21 401681583.1315239698. Total 0 94 442971955.85 415446732.39 (2) Breakdown by product or service type Amount Amount incurred in the previous year Item Business income Business cost Business income Business cost Power generation 279495457.00 252124628.83 419930286.71 405194367.48 and sales Integrated 136569934.6782619474.3139382694.0728530461.10 energy 223Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 services Others 12488919.77 5392870.61 5768308.02 1223850.40 Consolidat ion -26872728.34-24897274.81-22109332.95-19501946.59 eliminatio n Total 401681583.10 315239698.94 442971955.85 415446732.39 (3) Breakdown by region Amount Amount incurred in the previous year Item Business income Business cost Business income Business cost Domestic 401681583.10 315239698.94 442971955.85 415446732.39 Total 401681583.10 315239698.94 442971955.85 415446732.39 (4) Revenue from contracts Amount incurred in the Amount previous year Item Business Business income income Classified by contract performance obligation Including: Revenue recognized at a point 289833492.7 in time 0 425572324.18 111848090.4 Revenue recognized over time 0 17399631.67 401681583.1 Total 0 442971955.85 39. Taxes and surcharges Amount incurred in the Item Amount previous year Property tax 1731514.72 2329842.01 Land use taxes 781418.14 937331.78 Stamp tax 398025.99 499797.33 Urban maintenance and 489045.33468703.79 construction tax Surcharge for education 209545.45 200873.02 224Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred in the Item Amount previous year Local education surcharge 139696.97 133915.34 Environmental Protection Tax 135429.03 49598.31 Vehicle and vessel tax 5366.70 1800.00 Total 3890042.33 4621861.58 40. Sales expenses Amount incurred in the Item Amount previous year Employee remuneration 2517349.71 2529240.42 travel expense 320284.30 57932.89 Business entertainment 138491.35 73589.20 Administrative expenses 61725.34 2189.62 Rental 40621.60 Technical service fee 60372.64 Intermediary agency fees 64150.94 478121.30 Others 19726.70 14531.15 Total 3222722.58 3155604.58 41. Management expenses Amount incurred in the Item Amount previous year Employee remuneration 62075439.83 65990120.42 Depreciation 10440847.03 11649901.01 Intermediary agency fee 4233307.25 1992538.79 Utilities and property management 1404502.69 2392530.81 fees Communication and information 1240388.07 902311.16 fees Administrative expenses 1078231.23 709686.09 Vehicle usage fees 852811.96 756417.89 Business entertainment 781548.57 1602591.82 Repair charge 735838.22 1289469.91 Greening and cleaning fees 706662.60 728772.95 Rental 664206.06 581042.03 225Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred in the Item Amount previous year travel expense 653692.13 824632.99 Amortization of intangible assets 490060.38 332318.80 Amortization of Long-term 222539.89 407144.04 deferred expenses Share certificate fee 193946.80 256854.79 Director's dues 5792.50 406182.95 Others 2660835.13 4684582.58 Total 88440650.34 95507099.03 42. R&D expenses Amount incurred in the Item Amount previous year Employee remuneration 15276526.20 14757285.96 Depreciation 1017275.63 6091463.31 Others 767447.96 493029.00 Total 17061249.79 21341778.27 43. Financial expenses Amount incurred in the Item Amount previous year Interest expense 4244754.09 11829545.09 Less: interest income 1093690.21 5185764.60 Add: Exchange losses 136332.06 -91424.96 Other expenses 191008.40 263409.57 Total 3478404.34 6815765.10 44. Other income Amount incurred in the Source of other income Amount previous year (IX) Government subsidies 14823430.20 6832542.00 Individual income tax refund 110868.48 34481.46 Total 14934298.68 6867023.46 Government grants included in other income 226Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred Asset- Subsidy Items Amount in the previous related/Income- year related Subsidy for encouraging industrial enterprises to 8051800.00 Income -related grow and strengthen in 2025 Tax incentives for employing demobilized 42750.00 Income -related military personnel Bonus of 2025 Shenzhen Talent Introduction Bole 30000.00 Income -related Award Shenzhen Innovation and Entrepreneurship Program 150000.00 Income -related Award Subsidy for special funds 375000.00 375000.00 Asset-related for industrial development Support plan for industrial energy and resource conservation and comprehensive utilization 547500.00 547500.00 Asset-related projects to support green development and promote industrial "carbon peaking" Shenzhen atmospheric environment quality 4731818.16 4731818.21 Asset-related improvement subsidy Government subsidy for low-nitrogen equipment 458768.16 458768.16 Asset-related retrofitting Subsidy for motor energy efficiency improvement 34560.00 34560.00 Asset-related program Technological 70666.68 70666.68 Asset-related transformation subsidy Job stabilization subsidy 83669.90 Income -related One-time employment 3000.00 1000.00 Income -related 227Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred Asset- Subsidy Items Amount in the previous related/Income- year related expansion subsidy Subsidy for Promoting the Sustained and Stable Operation of Industrial 139600.00 Income -related Enterprises above Designated Size Subsidy from special funds for high-quality industrial 200000.00 241800.00 Income -related development Circular economy support fund for sludge drying 127567.20 128159.05 Asset-related equipment Subsidy to support industrial enterprises in 20000.00 Income -related increasing production and efficiency Total 14823430.20 6832542.00 45. Investment income Amount incurred Item Amount in the previous year Income from long-term equity investment 12445694.396326077.76 measured by adopting the equity method Investment income of trading financial assets 10600665.2211286239.10 during the holding period Dividend income earned during investment 5600000.00201969.03 holdings in other equity instruments Investment income from disposal of long-term 66718753.76 equity investments Bill discounting expenses -44739.75 Others 188979.34 Total 28835338.95 84488299.90 46. Credit loss 228Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred in the Item Amount previous year Losses from bad debts of accounts -4771977.82-10381410.65 receivable Bad debt loss of other receivables -19897.15 -1000000.00 Total -4791874.97 -11381410.65 47. Asset impairment loss Amount incurred in the Item Amount previous year Fixed asset impairment loss -63982886.86 Impairment loss on inventories contract performance costs etc. -26366298.90 -2406652.82 (Note) Total -26366298.90 -66389539.68 Note: The provision for inventory depreciation recognized in the current period is mainly attributable to the impact of the national "Dual Carbon" strategy and the power market-oriented reform. The peak-shaving demand for the Company’s three sets of 9E natural gas-fired generating units has decreased resulting in a substantial decline in power generation and operating hours in 2025 compared with previous periods. In addition inventory spare parts are mainly special parts for 9E gas turbines which cannot be adapted to the subsequent upgrading and transformation of generating units and some spare parts are expected to become idle. Accordingly the provision for inventory depreciation has been made. 48. Gains from disposal of assets Amount of current period Amount of previous period Item Amount incurred Amount incurred Income from disposal of non- 284413055.16163529971.97 current assets Total 284413055.16 163529971.97 Note: The gain on asset disposal in the current period was mainly from the land reservation and acquisition of Shenzhen Nanshan Power Zhongshan Company. According to the CSRC's "Regulatory Rules Application Guidelines - Accounting No. 3" for "expenses incurred by an enterprise to perform the above-mentioned asset disposal transactions such as demolition losses of houses and other attachments relocation expenses and employee benefits paid during the production suspension period if it is expected that these can be compensated by the future asset disposal consideration the enterprise may temporarily include them in other current assets or other 229Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 non-current assets according to their liquidity and transfer them to profit or loss upon derecognition of the disposed assets." The land reservation and acquisition compensation for Parcel B of Shenzhen Nanshan Power Zhongshan Company was RMB 350592200 and the final recognized costs and expenses for Parcel B were RMB 66469000 resulting in a net gain from land reservation and acquisition of RMB 284123200. The specific figures are as follows: Amount incurred for Amount incurred for Item the current year (in ten the previous year (in thousand RMB) ten thousand RMB) Land reservation and acquisition 35059.2222471.16 compensation Subtotal of income 35059.22 22471.16 Demolition loss of houses buildings 3577.162688.35 land use rights and other attachments Employee benefits paid during 2950.372178.32 production suspension Relocation expenses etc. 119.37 1302.62 Subtotal of expenses 6646.90 6169.29 Net gain from land reservation and 28412.3216301.87 acquisition 49. Non-operation income Amount included Amount in non-recurring Item Amount incurred in the gains and losses previous year for the current year Reversal of credit impairment loss before consolidation 579165.68 579165.68 under common control Non-current asset Disposition 265631.84265631.84 loss Transitional resettlement fee 453068.40 for house demolition Compensation income for 100000.00 breach of contract Others 2.39 2.39 Total 844799.91 553068.40 844799.91 230Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 50. Non-operating expenses Amount included in non- Item Year 2025 Year 2024 recurring gains and losses for the current year Expenditures related to 733996.77733996.77 historical legacy issues Compensation and 643015.02643015.02 liquidated damages Provision for pending 364945.00364945.00 litigation Loss from the damage and scrapping of non-current 103855.65 121310.78 103855.65 assets Others 157913.07 14023.70 157913.07 Total 2003725.51 135334.48 2003725.51 51. Income tax expenses (1) Income tax expenses Amount incurred Item Amount in the previous year Current income tax expense 823971.85 9140402.85 Deferred income tax expense 10187723.33 547366.49 Total 11011695.18 9687769.34 (2) Reconciliation of accounting profit and income tax expense Item Amount Total consolidated profit for the current year 266214408.10 Current income tax expense accounted by tax and 39932161.22 relevant Influence of different tax rates applied by some 34359071.94 subsidiaries Influence of adjustments to the income tax for the 233902.44 prior years The impact of non-taxable income -3677517.27 231Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Item Amount Non-deductible costs expenses and losses 947546.43 Impact of additional deduction for R&D expenses -2559187.47 Influence of deductible losses on the use of preliminarily unrecognized deferred tax assets in 767414.63 previous periods Effect of deductible temporary differences or deductible losses from deferred tax assets -58991696.74 unrecognized in the current year Income tax expenses 11011695.18 52. Other comprehensive income For details see "V. 34 Other Comprehensive Income" in this note. 53. Items in the statement of cash flows (1) Cash related to operating activities 1) Other cash received related to operating activities Amount incurred in Item Amount the previous year Current account payments received etc. 6141928.98 9172925.54 Government grant income 8477550.00 372441.17 Guarantee deposit returned 2840736.39 5453862.93 Interest income 1331126.41 5646611.86 Total 18791341.78 20645841.50 2) Other cash paid related to operating activities Amount Amount incurred in Item the previous year Payment of period expenses 12508023.40 54929118.83 Payment of guarantee deposits 3222637.66 7912100.00 Payment of current account transactions etc. 9338011.03 2225743.89 Total 25068672.09 65066962.72 (2) Cash related to investing activities 1) Other cash received related to investing activities 232Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred in Item Amount the previous year Receipt of principal and interest on the loan 15015192.12 to Huidong Server Company Receipt of compensation for the transition 1797214.98 period (Note) Cash from redemption of structured deposits and large-denomination certificates of 452000000.00 deposit Others 747000.10 Total 17559407.20 452000000.00 Note: As approved by the eighth ad hoc meeting of the tenth Board of Directors and the fifth ad hoc meeting of the tenth Board of Supervisors held in May 2025 the Company acquired a 75% equity stake (corresponding to a registered capital of RMB 56.25 million) in Sichuan Ruinan from Shenzhen KELU Electronics Technology Co. Ltd. for a consideration of RMB 18337500. The equity transfer price was paid by assuming and repaying the debt of RMB 18337500 owed by Shenzhen KELU Electronics Technology Co. Ltd. to Sichuan Ruinan. In July 2025 Sichuan Ruinan was renamed Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. and was included in the scope of the Company's consolidated financial statements.In accordance with Clause 6.1 of Article 6 of the Equity Transfer Agreement and based on the Special Audit Report on the Operating Results During the Transition Period of the 75% Equity Transaction Project of Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd.(Grant Thornton Special Document No. 441C019665 (2025)) issued by Grant Thornton Certified Public Accountants (Special General Partnership) Shenzhen Branch jointly recognized by the Company and Shenzhen Kelu Electronics Co. Ltd. Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. incurred a loss of RMB 2396286.64 during the period from the benchmark date to the delivery date. Accordingly Shenzhen Kelu Electronics Co. Ltd. shall pay compensation of RMB 1797214.98 to the Company. The Company received the full amount of such transition period compensation on September 29 2025. After deducting the aforesaid transition period compensation the actual cost of this equity investment is RMB 16.5403 million yuan. 2) Other cash paid related to investing activities Amount incurred in Item Amount the previous year Cash for placement of structured deposits and large-denomination certificates of 291000000.00 226000000.00 deposit 233Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred in Item Amount the previous year Others 1181765.23 Total 292181765.23 226000000.00 3) Cash paid related to financing activities 1) Other cash paid related to financing activities Amount incurred in Item Amount the previous year Payment of principal and interest on lease 6727211.006927038.90 liabilities Total 6727211.00 6927038.90 234Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 2) Changes in various liabilities arising from financing activities Amount as at the Increase in the year Closing balance Item beginning of the Non-cash Non-cash Balance at year-end Changes in cash Changes in cash year Change Change Short-term 268615009.19 172000000.00 3012867.15 271533271.89 172094604.45 borrowings Long-term 172393748.85 1922460.60 1738153.13 4156564.01 168421492.31 borrowings Non-current liabilities due within 4466835.32 7485840.13 4611864.71 7340810.74 1 year Lease liabilities 2125910.18 27569454.84 1768351.28 3258993.58 24668020.16 Total 275207754.69 344393748.85 39990622.72 279651641.01 7415557.59 372524927.66 235Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 54. Supplement Information for cash flow statement (1) Supplement Information for cash flow statement Item Year 2025 Year 2024 1. Adjusting net profit to cash flow from —— operating activities: Net profit 255202712.92 63927424.48 Add: asset impairment provision 26366298.90 66389539.68 Credit loss 4791874.97 11381410.65 Depreciation of fixed assets and 27582389.7121685435.41 amortization of investment properties Depreciation of right-of-use assets 5876049.06 4803425.47 Amortization of intangible assets 66322.12 344504.01 Amortization of Long-term deferred 2393647.01 1785173.62 expenses Amortization of deferred income -6176839.05 -6346472.10 Losses on disposal of fixed assets intangible assets and other long-term -284413055.16 -163529971.97 assets ("-" for gains) Losses on write-off of fixed assets ("-" for 121310.78 gains) Losses from changes in fair value ("-" for gains) Financial expenses ("-" for gains) 3669245.07 11829545.09 Investment losses ("-" for gains) -28493597.70 -84488299.90 Decrease in deferred tax assets ("-" for -3639858.88547366.49 increase) Increase in deferred tax liabilities ("-" for 9846034.15 decrease) Decrease in inventories ("-" for increase) 24073980.42 16156331.74 Decrease in operating receivables ("-" for -27848792.0936300129.85 increase) Increase in operating payables ("-" for -25489459.91-19151092.74 decrease) Others Net cash flow from operating activities -16801521.85 -37635766.05 2. Significant investing and financing 236Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Item Year 2025 Year 2024 activities not involving cash receipts and payments: Transfer of debts into capital Convertible corporate bonds maturing within 1 year Fixed assets leased from financing 3. Net change in cash and cash equivalents: Ending balance of cash 133255608.28 471067121.66 Less: Beginning balance of cash 471067121.66 310734919.56 Plus: Ending balance of cash equivalents Less: Beginning balance of cash equivalents Net increase in cash and cash equivalents -337811513.38 160332202.10 (2) Net cash paid for the acquisition of subsidiaries during the year Item Amount Cash or cash equivalents paid in the current period for business combinations that occurred during the year Less: cash and cash equivalents held by the subsidiary on the 747000.10 acquisition date Plus: cash or cash equivalents paid in the current period for business combinations that occurred in prior periods Net cash paid for the acquisition of subsidiaries -747000.10 Note: During the year the Company acquired a 75% equity interest in Energy Technology Co.Ltd. by assuming its debts. The cash and cash equivalents held by the subsidiary on the acquisition date amounted to RMB 747000.10. According to the Accounting Standards for Business Enterprises No. 31 - Cash Flow Statements and its application guidelines the net cash paid for the acquisition of a subsidiary should be calculated as "cash consideration paid - cash and cash equivalents held by the subsidiary". Therefore the net cash paid for the acquisition of the subsidiary in the current period was RMB -747000.10. (3) Composition of cash and cash equivalents Amount as at the Item Balance at year-end beginning of the year I. Cash 133255608.28 471067121.66 237Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the Item Balance at year-end beginning of the year Including: Cash at hand 30635.36 30264.98 Demand bank deposit 133224939.09 471032644.67 Demand other monetary funds 33.83 4212.01 Deposits in the central bank available for payment Due from Banks Due from Banks and Other Financial Institutions II. Cash equivalent Including: bond investments maturing within three months III. Balance of cash and cash equivalents at 133255608.28471067121.66 year-end Including: cash and cash equivalents with restricted use right by parent company or subsidiaries of the company (4) Monetary funds not classified as cash and cash equivalents Reasons for not Amount in previous classified as cash Item The current period period and cash equivalents Frozen Guarantee deposits etc. 8334730.76 7912100.00 restricted Total 8334730.76 7912100.00 55. Foreign currency monetary items (1) Foreign currency monetary items Year-end foreign Exchange Ending balance Item currency balance rate translated into RMB Monetary funds — — 6049601.70 Including: USD 842886.94 7.0288 5924483.72 EUR 1018.00 8.2355 8383.74 Singapore Dollar 114931.15 0.9032 103808.11 HKD 2368.03 5.4586 12926.13 56. Leasing 238Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (1) The Company as a lessee Item Amount Amount incurred in the previous year Interest expense on lease liabilities 914888.83 176995.22 Total cash outflow related to leases 6727211.00 5048300.00 (2) The Company as a lessor 1) Operating leases where the Company is the lessor Thereinto: Income related to variable lease payments that Item Lease income are not included in lease receipts Building leases 1967176.80 Total 1967176.80 VI. R&D expenditures Amount incurred in the Item Amount previous year Depreciation 1017275.63 6091463.31 Employee remuneration 15276526.20 14757285.96 Others 767447.96 493029.00 Total 17061249.79 21341778.27 Thereinto: Expensed R&D 17061249.7921341778.27 expenditures Capitalized R&D expenditures 239Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 VII. Change in the scope of consolidation 1. Business combination not under common control (1) Business combination not under common control that occurred during the year Financial information of the acquiree from the Tim Eq acquisition date to the e uity Costs year-end poin acq Meth Name of Acqu Determination Net t of uisi ods of of equit isitio basis of the cash equi tion equity acquire y n acquisition flow ty rati acquis Busines e acqui date date Net from acqu o ition s sition profit operat isitio income ing n (%) activit ies This transaction has been approved by the Board of Directors of both parties.Shenzhe The assets n personnel and Nansha business of the RMB Acqui RMB n Power target company June 16.54 red by June RMB RMB - Energy 75 have been 30 03 assum 30 25.2658 0.5462 0.8417 Technol % delivered. The 2025 millio ing 2025 million million millio ogy company has n debts n (Sichua obtained n) Co. substantial Ltd. control over the target company so June 30 2025 is determined as the acquisition date 240Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (2) Cost of combination and goodwill Shenzhen Nanshan Power Item Energy Technology (Sichuan) Co. Ltd.Fair value of debt issued or assumed 18337500.00 Receipt of compensation for the transition period -1797214.98 Total combination costs 16540285.02 Less: fair value share of net identifiable assets 16504647.74 Less: Reversal of credit impairment loss or gain before 614802.96 consolidation under non-common control Amount by which the cost of combination is less than the 579165.68 share of the fair value of identifiable net assets acquired 1) Explanation on the determination method of the fair value of the cost of combination According to the Asset Appraisal Report on the Fair Value of Identifiable Net Assets of Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. for Financial Reporting Purposes (Shen Zhong Lian Ping Bao Zi [2025] No. 154) issued by Shenzhen China United Assets Appraisal Co. Ltd. (hereinafter referred to as "Shenzhen China United") Shenzhen China United used June 30 2025 as the valuation base date and evaluated the target assets using both the asset-based approach and the income approach. The valuation result from the income approach was adopted as the final conclusion. The appraised fair value of the identifiable net assets of Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. is RMB 22.0062 million and the Company's share of the fair value of identifiable net assets based on its shareholding ratio is RMB 16.5046 million. (3) Identifiable assets and liabilities of the acquiree on the acquisition date Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd.Item Acquisition date Acquisition date Book balance Fair value Assets: Monetary funds 787733.04 787733.04 Accounts receivable 13124461.77 13124461.77 Prepayment 543856.45 543856.45 Other receivables 22133666.27 22133666.27 Inventories 1972933.87 1973532.25 Contract assets 5238793.60 5238793.60 241Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd.Item Acquisition date Acquisition date Book balance Fair value Other current assets 26792.43 26792.43 Fixed assets 92907.72 124398.00 Right-of-use assets 289885.67 289885.67 Intangible assets 39752.20 47670.17 Deferred income tax assets 3981548.06 3981548.06 Liabilities: Borrowing Accounts payable 18701846.55 18701846.55 Contract liabilities 4548321.00 4548321.00 Employee compensation payable 315130.60 315130.60 Taxes and surcharges payable 1125420.38 1125420.38 Other payables 893508.84 893508.84 Non-current liabilities due within 1 year 88542.20 88542.20 Other current liabilities 409348.89 409348.89 Lease liabilities 184022.27 184022.27 Net assets 21966190.35 22006196.98 Less: minority equity Net assets acquired 21966190.35 22006196.98 2. Change in the scope of consolidation due to other reasons The Company's subsidiary Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) completed its industrial and commercial deregistration on June 30 2025 and has since been excluded from the scope of the Company's consolidated financial statements. The Company fulfilled its information disclosure obligations regarding this deregistration by disclosing the Announcement on the Completion of Deregistration of Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) (Announcement No.: 2025-026) on the Shenzhen Stock Exchange on July 4 2025.VIII. Equity in other subjects 1. Interests in subsidiaries (1) Composition of the enterprise group 242Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Main Shareholding ratio (%) Acquisition Subsidiary name place of Direct Indirect method business Shenzhen Nanshan Power Zhongshan 80.00 Establishment (Zhongshan) Power Co. Ltd.Shenzhen Nanshan Power Gas Turbine Engineering Shenzhen 100.00 Establishment Technology Co. Ltd.Shenzhen Nanshan Power Environmental Protection Co. Shenzhen 100.00 Establishment Ltd.Shenzhen Server Energy Co.Shenzhen 50.00 Establishment Ltd.Shenzhen New Power Industrial Shenzhen 100.00 Establishment Co. Ltd.Shennan Energy (Singapore) Singapore 100.00 Establishment Co. Ltd.Hong Kong Hing Tak Shing Hongkong 100.00 Establishment Co. Limited Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co. Zhongshan 51.00 Establishment Ltd.Shenzhen Nanshan Power Energy Technology (Sichuan) Chengdu 75.00 Acquisition Co. Ltd.Note: (1) During the reporting period Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) has been liquidated and deregistered and is no longer included in the scope of consolidated financial statements;(2) During the reporting period the Company acquired a 75% equity stake in Sichuan Ruinan by assuming its debts. In July 2025 Sichuan Ruinan was renamed Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. and was included in the scope of the Company's consolidated financial statements. (2) Significant non-wholly owned subsidiary 243Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Dividends Profit and loss declared to attributable to Balance of Minority minority minority minority Subsidiary name shareholding shareholders shareholders in interests at year- ratio (%) in the the current end current period period Shenzhen Nanshan Power (Zhongshan) 20.00 79800291.14 -13204428.57 Power Co. Ltd.Shenzhen Nanshan Power Energy 25.0046791.915548317.27 Technology (Sichuan) Co. Ltd. 244Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (3) Key financial information of significant non-wholly-owned subsidiaries Balance at year-end Subsidiary name Non-current Current Non-current Current assets Total assets Total of liability assets liabilities liabilities Shenzhen Nanshan Power (Zhongshan) Power 449883274.52212738236.64662621511.16549867941.06202794601.98752662543.04 Co. Ltd.Shenzhen Nanshan Power Energy Technology 44291225.804137419.6148428645.4125372022.63544254.1325916276.76 (Sichuan) Co. Ltd. (Continued) Amount as at the beginning of the year Subsidiary name Non-current Current Non-current Current assets Total assets Total of liability assets liabilities liabilities Shenzhen Nanshan Power (Zhongshan) Power 231477900.8184593178.85316071079.66732191175.33732191175.33 Co. Ltd.Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. (Continued) 245Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount Subsidiary name Total comprehensive Net cash flow from Operating income Net profit income operating activities Shenzhen Nanshan Power (Zhongshan) Power 63137277.00326079063.79326079063.7933326458.30 Co. Ltd.Shenzhen Nanshan Power Energy Technology 25265828.91546178.30546178.30-841669.87 (Sichuan) Co. Ltd. (Continued) Amount incurred in the previous year Subsidiary name Total comprehensive Net cash flow from Operating income Net profit income operating activities Shenzhen Nanshan Power (Zhongshan) Power 11113824.4766876307.8966876307.89-4165698.91 Co. Ltd.Shenzhen Nanshan Power Energy Technology (Sichuan) Co. Ltd. 246Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 IX. Government subsidies 1. Liability items involving government grants The amount of The amount of new Amount as at the non-operating Amount transferred to Accountin subsidy beginning of the income included other income during g item added in year in the current the year the year current year Deferred 61522875.976345880.20 income (Continued) Asset- Other changes during the Balance at year- Accounting item related/Income- year end related Deferred income 13263548.36 41913447.41 Asset-related 2. Government grants recognized in profit or loss for the current period Amount incurred in the Accounting item Amount previous year 46. Other income 8477550.00 6832542.00 X. Risks related to financial instruments The Company's main financial instruments include equity investments long-term and short- term borrowings accounts receivable accounts payable and other receivables. Therefore the Company is exposed to various financial instrument risks in its daily activities mainly including market risk (such as exchange rate risk interest rate risk and price risk) credit risk and liquidity risk. The risks associated with these financial instruments and the risk management policies adopted by the Company to mitigate these risks are described below. The Company's management 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 potential impact of reasonable and possible changes in risk variables on the 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. 247Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 1. Risk management objectives and policies The objective of the Company's risk management is to strike an appropriate balance between risk and return to minimize the negative impact of risks on the Company's operating performance and to maximize the interests of shareholders and other equity investors. Based on this risk management objective the Company's basic risk management strategy is to identify and analyze the various risks faced by the Company establish appropriate risk tolerance thresholds and manage risks and supervise various risks in a timely and reliable manner to control risks within a limited range. (1) Market risk 1) Exchange rate risk Exchange rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company matches foreign currency income with foreign currency expenditures as much as possible to reduce exchange rate risk. In addition the Company may also enter into forward foreign exchange contracts or currency swap contracts to hedge against exchange rate risk. During the current and prior periods the Company did not enter into any forward foreign exchange contracts or currency swap contracts.The exchange rate risk faced by the Company mainly arises from financial assets and financial liabilities denominated in foreign currencies. The amounts of foreign currency financial assets and foreign currency financial liabilities translated into RMB are listed as follows: Item Amount as at the Balance at year-end beginning of the year Cash and cash equivalents - USD 5924483.72 6051803.55 Cash and cash equivalents - Other 125117.98 158516.38 foreign currencies Total 6049601.70 6210319.93 2) Interest rate risk Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market interest rates. The Company's exposure to cash flow volatility of financial instruments arising from changes in interest rates mainly relates to bank borrowings at floating interest rates. The sensitivity analysis of interest rate risk is based on the following assumptions: Changes in market interest rates affect the interest income or expense of variable-rate financial instruments; for fixed-rate financial instruments measured at fair value changes in market interest rates only affect their interest income or expense; for derivative financial instruments designated as hedging instruments changes in market interest rates affect their fair value and all interest rate hedges are expected to be highly effective. The fair value changes of derivative financial instruments 248Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 and other financial assets and liabilities are calculated using the discounted cash flow method based on market interest rates at the balance sheet date. (2) Credit risk Credit risk refers to the risk that one party to a financial instrument fails to discharge its obligations resulting in financial loss to the other party. The Company is mainly exposed to customer credit risk arising from credit sales. Prior to entering into new contracts the Company assesses the credit risk of new customers including external credit ratings and where available bank credit references in certain cases. The Company sets a credit sales limit for each customer which represents the maximum amount that does not require additional approval.The Company ensures that its overall credit risk is within a controllable range through quarterly monitoring of existing customer credit ratings and monthly review of accounts receivable aging analysis. When monitoring customer credit risk customers are grouped according to their credit characteristics. Customers rated as "high risk" are placed on a restricted customer list and the Company can only make credit sales to them in future periods with additional approval; otherwise they must be required to pay in advance. (3) Liquidity risk Liquidity risk refers to the risk that an enterprise will encounter a shortage of funds in fulfilling its obligations settled by delivering cash or other financial assets. The Company's policy is to ensure sufficient cash is available to repay maturing debts. Liquidity risk is centrally managed and controlled by the Company's finance department. The finance department monitors cash balances readily realizable marketable securities and rolling forecasts of cash flows for the coming 12 months to ensure the Company has adequate funds to settle its obligations under all reasonably foreseeable circumstances. 2. Sensitivity analysis The Company uses sensitivity analysis techniques to analyze the potential impact of reasonable and possible changes in risk variables on the 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. (1) Sensitivity analysis of foreign exchange risk Sensitivity analysis of foreign exchange risk assumes that all net investment hedging and cash flow hedging of overseas operations are highly effective.On the basis of the above assumptions with other variables unchanged the pre-tax impact of possible reasonable exchange rate changes on current profits and losses and equity is as follows: 249Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount incurred in the Amount Item Interest rate previous year change Impact on Impact on Impact on Impact on net profit shareholde net profit shareholde rs' equity rs' equity All foreign Appreciation of 302480.09 302480.09 310516.00 310516.00 currencies RMB by 5% All foreign Depreciation of -302480.09 -302480.09 -310516.00 -310516.00 currencies RMB by 5% (2) Sensitivity analysis of interest rate risk Sensitivity analysis of interest rate risk is based on the following assumptions: Changes in market interest rates affect the interest income or expense of variable-rate financial instruments; For fixed-rate financial instruments measured at fair value changes in market interest rates only affect their interest income or expenses; Changes in the fair value of derivative financial instruments and other financial assets and liabilities are calculated using the discounted cash flow method based on market interest rates at the balance sheet date.As of December 31 2025 the total interest on the Company's floating-rate bank borrowings amounted to RMB 2610882.82 including RMB 688422.22 in interest on floating-rate short-term borrowings and RMB 1922460.60 in interest on long-term borrowings (of which non-capitalized interest was RMB 1665081.94 and capitalized interest was RMB 257378.66). Based on the above assumptions and holding other variables constant the pre-tax impact of a 50-basis-point change in interest rates on the current profit or loss and shareholders' equity is as follows: Amount incurred in the Amount Interest previous year Item rate Impact on Impact on Impact on net Impact on change shareholders' shareholders' profit net profit equity equity Increase Floating- of 50 -327478.99-371360.36-133026.47-133026.47 rate loan basis points Floating- Decrease 327478.99371360.36133026.47133026.47 rate loan of 50 250Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 basis points XI. Disclosure of fair value The inputs used in the fair value measurement are classified into three levels: The first level of input is the unadjusted quotation of the same asset or liability in an active market that can be obtained at the measurement date.The second-level input value is the input value that is directly or indirectly observable for the underlying asset or liability in addition to the first-level input.The third level input value is the unobservable input value of the underlying asset or liability.The level to which the fair value measurement result belongs is determined by the lowest level of input that is significant to the fair value measurement as a whole. 1. Fair value of assets and liabilities measured at fair value at the end of the year Year-end fair value Fair value Fair value Fair value Item measure measurement measurement of Total ment of of Level 2 Level 3 Level 1 I. Continuous measurement of — — — — fair value Investment in other 234179057.20234179057.20 equity instruments Including: Non- trading equity 234179057.20234179057.20 instrument investments Financial assets 50000000.0050000000.00 held for trading Total assets continuously 284179057.20284179057.20 measured at fair value 2. Qualitative and quantitative valuation techniques and important parameters of sustainable and non-sustainable items measured on the basis of fair value of level 2 251Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 The fair value of structured deposits at the end of the period is determined by forecasting future cash flows based on the product type and yield. 3. Qualitative and quantitative valuation techniques and important parameters of sustainable and non-sustainable items measured on the basis of fair value of level 3 For non-trading equity instrument investments and private equity investments the Company uses valuation techniques to determine their fair value. The valuation models used mainly include the discounted cash flow model and the market comparable company model. The inputs to the valuation techniques mainly include risk-free interest rates benchmark interest rates exchange rates credit spreads liquidity premiums and discounts for lack of liquidity.XII. Related parties and related party transactions 1. Related-party relationships (1) Information on the Company's parent company No single shareholder of the Company holds 50% or more of the shares nor can any shareholder exercise control over the Company through other means. Therefore the Company has no parent company. (2) Information on the Company's subsidiaries For details on subsidiaries please refer to Note VIII 1. (1) Composition of the enterprise group. (3) Other related parties Other related parties Relationship with the Company Legal entities holding more than 5% of the Shenzhen Energy Corporation Company's shares HONG KONG NAM HOI Legal entities holding more than 5% of the (INTERNATIONAL) LTD Company's shares Legal entities holding more than 5% of the Shenzhen Guangju Industrial Co. Ltd.Company's shares Legal entities indirectly holding more than 5% Shenzhen Capital Holdings Co. Ltd.of the Company's shares Shenzhen Guangju Energy Co. Ltd. is a legal Shenzhen Guangju Energy Co. Ltd. and its entity that indirectly holds more than 5% of subsidiaries the Company's shares 252Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 An enterprise controlled by Shenzhen Capital Shenzhen MTC Co. Ltd.Operation Group Co. Ltd.Affiliated enterprises held by Shenzhen Shenzhen Clou Electronics Co. Ltd.Capital Operation Group Co. Ltd.Shenzhen Eco-city Green Technology & Affiliated enterprises ultimately controlled by Culture Co. Ltd. Shenzhen Capital Operation Group Co. Ltd.Directors and senior management of the Key management personnel Company 2. Related party transactions (1) Related party transactions for purchase and sale of goods and rendering and receipt of services 1) Purchase of goods/receipt of services Amount Content of related party incurred in Related party Amount transaction the previous year Shenzhen Eco-city Green Providing event venues Technology & Culture Co. 6080.00 materials etc.Ltd.Artron Art (Group) Co. Ltd.Purchasing goods 28918.50 and its subsidiaries Total 6080.00 28918.50 (2) Sale of goods/rendering of services Content of Amount incurred in Related party related party Amount the previous year transaction Property Shenzhen Energy management 6165179.93 4404385.09 Corporation service Energy Shenzhen MTC Co.management 1598693.97 1226856.89 Ltd.services Shenzhen Clou Engineering 2556511.01 252689.25 253Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Content of Amount incurred in Related party related party Amount the previous year transaction Electronics Co. Ltd. installation services China Science Technical Technology transformation 58800.00 Development Institute services Co. Ltd.Total 10320384.91 5942731.23 (3) Remuneration of key management personnel Amount incurred in the Name Amount previous year Remuneration of key management RMB 6.2027 million RMB 6.9511 million personnel 2. Balances of receivables and payables with related parties (1) Receivables Amount as at the Balance at year-end beginning of the year Name Related party Balance of Bad debt Balance of Bad debt Book provisions Book provisions Account Shenzhen Energy 6535090.734404385.09 receivable Corporation Account Shenzhen MTC 250027.10457639.61 receivable Co. Ltd.Contract Shenzhen MTC 112005.13 assets Co. Ltd.China Science Contract Technology 1664.15 assets Development Institute Co. Ltd.Shenzhen KELU Account Electronics 66264.00 receivable Technology Co.Ltd. and its 254Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount as at the Balance at year-end beginning of the year Name Related party Balance of Bad debt Balance of Bad debt Book provisions Book provisions subsidiaries Shenzhen Clou Contract Electronics Co. 139330.00 assets Ltd.Shenzhen Clou Other Electronics Co. 330829.51 receivables Ltd.Total 7435210.62 4862024.70 (2) Payables Amount as at the Balance at year-end beginning of the year Name Related party Balance of Bad debt Balance of Bad debt Book provisions Book provisions Shenzhen KELU Electronics Accounts Technology Co. 900000.00 payable Ltd. and its subsidiaries Total 900000.00 XIII. Commitments and contingencies (I) Significant commitments 1. Information on letters of guarantee issued as of December 31 2025 The Company applied to Industrial Bank Co. Ltd. Shenzhen Branch for the issuance of a payment guarantee in the amount of RMB 30 million within the credit line which will expire on July 10 2026.The Company applied to China Minsheng Banking Corp. Ltd. Shenzhen Branch for the issuance of a bid bond in the amount of USD 1 million equivalent to RMB 7028800 (exchange rate of the People's Bank of China on December 31 2025: 1 USD = 7.0288 RMB) which will expire on April 12 2026.The Company's subsidiary Shenzhen Nanshan Power Environmental Protection Company 255Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 applied to China Merchants Bank Co. Ltd. Shenzhen Branch for the issuance of a performance guarantee in the amount of RMB 3.70 million within the credit line which will expire on March 31 2026. 2. Other commitments As of December 31 2025 apart from the matters mentioned above the Company has no other significant commitments that need to be disclosed.(II) Contingencies As of December 31 2025 the Company has no significant contingencies that need to be disclosed.XIV. Matters after the balance sheet date 1. Profit distribution The preliminary profit distribution plan for 2025 as reviewed and approved by the Board of Directors is as follows: based on the total share capital of 602762596 shares as of December 31 2025 a cash dividend of RMB 0.32 (tax inclusive) per 10 shares will be distributed to all shareholders. The total amount of cash dividends to be distributed is RMB 19288403.07 (tax inclusive). The Company will not distribute bonus shares or convert capital reserves into share capital in 2025 and the remaining undistributed profits will be carried forward to subsequent years.XV. Other important matters 1. Annuity plan According to the Company's enterprise annuity plan the Company accrues and pays enterprise annuity at 8% of the employees' salaries. 2. Segment information (1) Determination basis and accounting policies for reporting segments For management purposes the Company and its subsidiaries are divided into business units based on products and services and the Company has the following three reportable segments: (1) Power generation and sales segment; (2) Integrated energy services segment; (3) Other segments The management of the Company regularly evaluates the operating results of the operating segments to decide on the allocation of resources to them and to evaluate their performance. 256Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Information on segment reporting is disclosed according to the accounting policies and measurement standards adopted by each segment when reporting to the management and these measurement bases are consistent with the accounting and measurement bases when preparing the financial statements. (2) Financial information of reportable segments for the year Power generation and Integrated energy Other Inter-segment Item Total sales segment services segment segments elimination Operating 11188576 40168158 income 280795800.65 136569934.67 .12 26872728.34 3.10 Operation 5177101. 31523969 cost 252340397.77 82619474.31 67 24897274.81 8.94 10505062313750 Total assets 2345011725.27565477071.92602.951647244586.69813.45 Total 61179138 53648178 liabilities 536920955.97 309629883.30 3.64 921860441.23 1.68 257Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 XVI. Notes on main items of parent company's financial statements 1. Account receivable (1) Accounts receivable by aging Book balance at the beginning Category Book balance at year-end of the year Within 1 year (including 1 42375469.9526641173.11 year) Total 42375469.95 26641173.11 (2) Accounts receivable by bad debt provision method Balance at year-end Balance of Book Bad debt provisions Category Provision Percentage Book balance Amount Amount percentage (%) (%) Account receivable that withdrawal bad debt provision by single item provision for bad debt based on 42375469.95 100.00 42375469.95 credit risk portfolio Total 42375469.95 100.00 42375469.95 (Continued) Amount as at the beginning of the year Balance of Book Bad debt provisions Category Provision Percentage Book balance Amount Amount percentage (%) (%) Account 258Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 receivable that withdrawal bad debt provision by single item provision for bad debt based 26641173.11100.0026641173.11 on credit risk portfolio Total 26641173.11 100.00 26641173.11 1) Provision for bad debts of accounts receivable by portfolio Balance at year-end Category Bad debt Provision Balance of Book provisions percentage (%) Portfolio 2: Receivables from power generation 42375469.95 and sales Total 42375469.95 (3) Top five accounts receivable and contract assets in terms of the ending balances by debtors Ending balance of bad Ratio to the Ending debt Ending balance total ending Ending balance balance provision of accounts balance of Unit name of accounts of for receivable and accounts receivable contract accounts contract assets receivable and assets receivable contract assets and contract assets Shenzhen Power Supply 42375469.95 42375469.95 100.00 Bureau Co. Ltd. 259Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Ending balance of bad Ratio to the Ending debt Ending balance total ending Ending balance balance provision of accounts balance of Unit name of accounts of for receivable and accounts receivable contract accounts contract assets receivable and assets receivable contract assets and contract assets Total 42375469.95 42375469.95 100.00 2. Other receivables Amount as at the Item Balance at year-end beginning of the year Interest receivable Dividend receivable 22500000.00 Other receivables 545995288.27 614157681.93 Total 568495288.27 614157681.93 2.1 Dividends receivable (1) Dividends receivable by category Amount as at the Project (or investees) Balance at year-end beginning of the year Shenzhen Server Energy Co. Ltd. 22500000.00 Total 22500000.00 Note: The increase in dividends receivable during the period was mainly because the Company's subsidiary Server Company held its first shareholders' meeting of 2025 on December 23 2025 at which the "Profit Distribution Plan for 2024 of Server Company" was reviewed and approved. The Company accordingly recognized dividends receivable from the subsidiary leading to an increase in the balance of dividends receivable at the end of the period compared to the beginning of the period. (2) There were no significant dividends receivable with an aging of over 1 year during the year 260Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 2.2 Other receivables (1) Other receivables by nature Book balance at Book balance at the Payment nature year-end beginning of the year Transactions with related parties 543701490.46611645846.09 within the consolidation scope Other receivables and temporary 14992669.2515170475.09 payments Legacy payments 11724938.94 11705041.79 Security deposits and deposits 1545040.06 1528568.67 Receivables from employees 76062.20 132765.78 Total 572040200.91 640182697.42 (2) Other receivables by aging Book balance at year- Book balance at the Category end beginning of the year Within 1 year (including 1 year) 35229834.56 100172359.91 1-2 years 51486796.04 512439711.54 2-3 years 459260749.28 Over 3 years 26062821.03 27570625.97 Total 572040200.91 640182697.42 (3) Other receivables by bad debt provision method Balance at year-end Balance of Book Bad debt provisions Book balance Provisio Category Percenta n Amount Amount ge (%) percenta ge (%) Account receivable that 26044912.644.5526044912.64100.00 withdrawal bad debt 261Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Balance of Book Bad debt provisions Book balance Provisio Category Percenta n Amount Amount ge (%) percenta ge (%) provision by single item Account receivable withdrawal 545995288.2795.45545995288.27 bad debt provision by portfolio Total 572040200.91 100.00 26044912.64 4.55 545995288.27 (Continued) Amount as at the beginning of the year Balance of Book Bad debt provisions Book balance Provisi Category on Percent Amount Amount percen age (%) tage (%) Account receivable that withdrawal 26025015.49 4.07 26025015.49 100.00 bad debt provision by single item Account receivable withdrawal 614157681.9395.93614157681.93 bad debt provision by portfolio Total 640182697.42 100.00 26025015.49 4.07 614157681.93 262Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 1) Other receivables with bad debt provision made on an individual basis Amount as at the beginning Balance at year-end of the year Name Provision Balance of Bad debt Balance of Bad debt Reasons for percentage Book provisions Book provisions provision (%) Huiyang Kangtai 14311626.7014311626.7014311626.7014311626.70100.00 Industrial Co. ltd Receivables for Historical employee legacy issue 9969037.639969037.639988934.789988934.78100.00 benefit fund expected to be dividends unrecoverable and taxes Receivables for employee 1736004.16 1736004.16 1736004.16 1736004.16 100.00 dormitory purchases Others 8347.00 8347.00 8347.00 8347.00 100.00 Total 26025015.49 26025015.49 26044912.64 26044912.64 — — 2) Other receivables with bad debt provision made by portfolio Balance at year-end Category Bad debt Provision Balance of Book provisions percentage (%) Portfolio IV: Transactions with related parties within the 543701490.46 consolidation scope Portfolio V: Portfolio of security deposits deposits and 1545040.06 petty cash Portfolio VII: Other receivables and temporary 748757.75 payments 263Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Balance at year-end Category Bad debt Provision Balance of Book provisions percentage (%) Total 545995288.27 — 3) Bad debt provision for other receivables made under the general model for expected credit losses Stage 1 Stage 2 Stage 3 Expected credit Expected Expected credit losses for the Bad debt credit losses loss over life entire duration Total provisions over the next (no credit (credit 12 months impairment) impairment occurred) Balance as of 26025015.4926025015.49 January 1 2025 Balance as of January 1 2025 in — — — — the current year ——Transfer to stage II ——Transfer to stage III -- Reversal to the II stage -- Reversal to the I stage Provision in 19897.1519897.15 Current Year Reversal in Current Year Conversion in Current Year Write off in Current Year Other changes Balance as of 26044912.64 26044912.64 264Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Stage 1 Stage 2 Stage 3 Expected credit Expected Expected credit losses for the Bad debt credit losses loss over life entire duration Total provisions over the next (no credit (credit 12 months impairment) impairment occurred) December 31 2025 (4) Bad debt provision for other receivables accrued recovered or reversed during the year Balance at year- Change amount for the year Amount as at end Category the beginning Recover Transfer or Othe of the year Accrual y or write off rs reversal Bad debt provision for other receivabl es - 26025015.4919897.1526044912.64 provision made on an individua l basis Total 26025015.49 19897.15 26044912.64 (5) No other receivables were actually written off during the year (6) Top five other receivables in terms of the ending balances by debtor 265Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Proporti on in the total Bad debt Payment Balance at year- year-end provisions Unit name Category nature end balance Balance at year- of other end receivabl es (%) Huiyang External Kangtai unit 14311626.70 Over 5 years 2.50 14311626.70 Industrial Co. transactio ltd ns Receivables for Receivabl employee es from benefit fund 9988934.78 Over 5 years 1.75 9988934.78 employee dividends and s taxes Receivables Receivabl from employees es from 1736004.16 Over 5 years 0.30 1736004.16 for housing employee purchases s Shenzhen Overseas External Chinese Town unit 1460919.00 1-2 years 0.26 Co. Ltd. Asset transactio Management ns Branch External Shenzhen Metro unit 290000.00 2-3 years 0.05 Group Co. Ltd. transactio ns Total — 27787484.64 — 4.86 26036565.64 (7) Centralized fund management Amount presented as other receivables due to centralized fund 516841422.27 management Notes The Company implements centralized fund 266Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Amount presented as other receivables due to centralized fund 516841422.27 management management. The principal and interest receivable from subsidiaries amounted to RMB 516841422.27 and the principal and interest payable to subsidiaries amounted to RMB 218076130.14. 3. Long-term equity investments Balance at year-end Item Withdrawn Balance of Book Book balance impairment provision Investments in 1068895126.58445002245.26623892881.32 subsidiaries Investments in associates and joint 97697539.79 97697539.79 ventures Total 1166592666.37 445002245.26 721590421.11 (Continued) Amount as at the beginning of the year Item Withdrawn impairment Balance of Book Book balance provision Investments in 923167363.65445002245.26478165118.39 subsidiaries Investments in associates and joint 90587521.44 90587521.44 ventures Total 1013754885.09 445002245.26 568752639.83 267Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 (1) Investments in subsidiaries Increase /decrease in reporting period Amount as at Opening Withdrawal Balance at year- Closing balance Investee the beginning balance of Decreased of end of impairment Unit of the year impairment Add investment Others investment impairment (Book value) provision (Book value) provision provision Shenzhen Nanshan Power 49639016.0420552688.7749639016.0420552688.77 Environmental Protection Co. Ltd.Shenzhen Server 26650000.0026650000.00 Energy Co. Ltd.Shenzhen Nanshan Power Gas Turbine Engineering 24460360.00 70000000.00 94460360.00 Technology Co.Ltd.Shenzhen Nanshan Power (Zhongshan) 1.00 410740000.00 1.00 410740000.00 Co. Ltd.Shennan Energy 6703800.006703800.00 (Singapore) Co. 268Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Increase /decrease in reporting period Amount as at Opening Withdrawal Balance at year- Closing balance Investee the beginning balance of Decreased of end of impairment Unit of the year impairment Add investment Others investment impairment (Book value) provision (Book value) provision provision Ltd.Zhuhai Hengqin Zhuozhi Investment Partnership 1427522.09 1427522.09 (Limited Partnership) Shenzhen Nanshan Power Energy 16540285.0216540285.02 Technology (Sichuan) Co. Ltd.Shenzhen New Power Industrial 369284419.26 13709556.49 60615000.00 429899419.26 13709556.49 Co. Ltd.Total 478165118.39 445002245.26 147155285.02 1427522.09 623892881.32 445002245.26 (2) Investments in associates and joint ventures 269Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Increase /decrease in reporting period Opening balance Equity method Opening balance of Adjustment of other Name (Book value) Add Decreased affirmative impairment comprehensive investment investment profit and loss provision income on investments Affiliated Company Jiangsu Liaoyuan Environmental 7919718.35 90587521.44 Protection Technology Co. Ltd.Total 90587521.44 7919718.35 (Continued) Increase /decrease in reporting period Closing balance of Cash dividends or Withdrawal of Closing balance Name Other equity impairment profits declared to impairment Others (book value) changes provision be paid provision Affiliated Company Jiangsu Liaoyuan Environmental 809700.0097697539.79 Protection Technology Co. Ltd.Total 809700.00 97697539.79 270Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 4. Operating revenue and operating costs (1) Operating revenue and operating costs Amount Amount incurred in the previous year Item Business income Business cost Business income Business cost Income from Main 279495457.00 252124628.83 322454274.03 339266651.44 Business Other 1300343.65215768.9457022453.483607161.70 business Total 280795800.65 252340397.77 379476727.51 342873813.14 (2) Breakdown of operating revenue and operating costs The current period Amount in previous period Item Business income Business cost Business income Business cost Power generation 279495457.00 252124628.83 379072551.36 342872787.50 and sales Others 1300343.65 215768.94 404176.15 1025.64 Total 280795800.65 252340397.77 379476727.51 342873813.14 (3) Breakdown by region The current period Amount in previous period Item Business income Business cost Business income Business cost Domestic 280795800.65 252340397.77 379476727.51 342873813.14 Total 280795800.65 252340397.77 379476727.51 342873813.14 (4) Revenue from contracts The current period Amount in previous period Item Business income Business income Classified by contract performance obligation Including: Revenue recognized at a point in time 280240067.29 379476727.51 Revenue recognized over time 555733.36 Total 280795800.65 379476727.51 271Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 5. Investment income Amount incurred in the Item Amount previous year Income from long-term equity investment 22500000.00 measured by adopting the cost method Income from long-term equity investment 7919718.356563378.70 measured by adopting the equity method Investment income from disposal of long-term -341741.25 equity investments Investment income of trading financial assets 10600665.2211286239.10 during the holding period Dividend income earned during investment 17474329.61 holdings in other equity instruments Total 40678642.32 35323947.41 XVII. Supplementary information to the financial statements 1. Details of non-recurring gains and losses for the current year Item Year 2025 Description Non-current asset disposal gain/loss(including the write-off part for 284413055.16 which assets impairment provision is made) Government subsidy recognized in current gain and loss(excluding those closely related to the Company's business and granted under 8477550.00 the state's policies) 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 financial liabilities except for 10600665.22 effective hedging operations related to the Company's normal business operations Fund possession costs included in the current profit or loss and collected from non-financial enterprises Gains and losses from entrusting others to invest in or manage assets Gains and losses from external entrusted loans Asset losses arising from force majeure factors such as natural disasters Reversal of the account receivable depreciation reserves subject to 272Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 Item Year 2025 Description separate impairment test Income from the cost of investments in acquiring subsidiaries associates and joint ventures being less than the fair value of the 579165.68 identifiable net assets of the investee at the time of acquisition Current net profit or loss of the subsidiaries from business combination under common control from the beginning of the period to the combination date Gains and losses from the exchange of non-monetary assets Profit or loss from debt restructuring One-off expenses incurred because the relevant business activities of the enterprise are no longer continued such as expenditures for employee resettlement One-off impact on profit or loss for the current period due to adjustments in laws and regulations such as taxation and accounting Share-based payment expenses recognized on a one-off basis due to the cancellation or modification of equity incentive plans For cash-settled share-based payments gains and losses arising from changes in the fair value of employee benefits payable after the vesting date Gains and losses arising from changes in the fair value of investment properties subsequently measured using the fair value model Gains from transactions with obviously unfair transaction prices Profit or loss on contingencies irrelevant to normal business operation of the Company Trustee fee income from entrusted operations Other non-operating income and expenditures other than the above -1738091.28 Other non-recurring Gains/loss items Subtotal 302332344.78 Less: Influenced amount of income tax 649258.60 Influenced amount of minor shareholders’ equity (after tax) 59750136.29 Total 241932949.89 — 273Notes to the financial statements of Shenzhen Nanshan Power Co. Ltd. for the year 2025 2. Return on net assets and earnings per share Earnings per share (RMB/share) Weighted average Profit of report period Basic earnings Diluted earnings Return on net assets (%) per share per share Net profit attributable to ordinary shareholders of the parent 10.28% 0.2672 0.2672 company Net profit attributable to ordinary shareholders of the parent -5.17%-0.1342-0.1342 company after deducting non- recurring gains and losses Shenzhen Nanshan Power Co. Ltd.April 13 2026 274