Shenzhen Nanshan Power Co. Ltd
Financial Report
2020-06-30
I. Auditing report
The financial report of the semi-annual report has not been audited.II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Shenzhen Nanshan Power Co. Ltd.
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 1084903966.81 773209854.84
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable 2900000.00
Account receivable 132037467.25 178150580.32
Receivable financing
Accounts paid in advance 32848698.89 70005681.50
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 80837116.58 32321826.94
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 108553898.22 124686443.61
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 491760334.29 445236731.33
Total current assets 1933841482.04 1623611118.54
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 14375580.60 14619203.03
Investment in other equity
instrument
60615000.00 60615000.00
Other non-current financial assets
Investment real estate 2303258.20 2401327.00
Fixed assets 954992268.00 1381675872.68
Construction in progress 60831928.29 66474630.23
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 21334118.82 43602166.44
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
1048199.78 1174171.16
Deferred income tax asset 2206049.69 2206049.69
Other non-current asset 22882181.78
Total non-current asset 1117706403.38 1595650602.01
Total assets 3051547885.42 3219261720.55
Current liabilities:
Short-term loans 755480134.11 881075378.48
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 13361192.95 19871102.41
Accounts received in advance
Contractual liability
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 41045198.56 55208432.53
Taxes payable 11824882.40 21769273.77
Other account payable 34163258.96 43691472.06
Including: Interest payable
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 855874666.98 1021615659.25
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 26646056.28 26646056.28
Deferred income 96957757.04 108507683.52
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 123603813.32 135153739.80
Total liabilities 979478480.30 1156769399.05
Owner’s equity:
Share capital 602762596.00 602762596.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 362770922.10 362770922.10
Less: Inventory shares
Other comprehensive income -2500000.00 -2500000.00
Reasonable reserve
Surplus public reserve 332908397.60 332908397.60
Provision of general risk
Retained profit 746816139.04 706830892.54
Total owner’ s equity attributable to
parent company
2042758054.74 2002772808.24
Minority interests 29311350.38 59719513.26
Total owner’ s equity 2072069405.12 2062492321.50
Total liabilities and owner’ s equity 3051547885.42 3219261720.55
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
2. Balance Sheet of Parent Company
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 1012488905.86 632948706.11
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 61629518.43 31824693.69
Receivable financing
Accounts paid in advance 27966084.58 46152700.57
Other account receivable 660835522.34 873861071.55
Including: Interest receivable
Dividend receivable
Inventories 97843620.07 101728367.43
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 485147244.31 438613774.49
Total current assets 2345910895.59 2125129313.84
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 228918765.00 303341165.00
Investment in other equity
instrument
60615000.00 60615000.00
Other non-current financial assets
Investment real estate
Fixed assets 315117782.13 321395526.04
Construction in progress 2355233.61 1949450.23
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 229435.21 404104.06
Research and development costs
Goodwill
Long-term deferred expenses 709967.63 790841.39
Deferred income tax assets
Other non-current assets
Total non-current assets 607946183.58 688496086.72
Total assets 2953857079.17 2813625400.56
Current liabilities
Short-term borrowings 755480134.11 580640114.59
Trading financial liability
Derivative financial liability
Notes payable
Account payable 1756794.04 864016.74
Accounts received in advance
Contractual liability
Wage payable 26769914.84 33840544.53
Taxes payable 1279402.89 718630.17
Other accounts payable 193871721.75 203332331.14
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 979157967.63 819395637.17
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities
Deferred income 56533398.56 58261356.20
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 56533398.56 58261356.20
Total liabilities 1035691366.19 877656993.37
Owners’ equity:
Share capital 602762596.00 602762596.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 289963039.70 289963039.70
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 332908397.60 332908397.60
Retained profit 692531679.68 710334373.89
Total owner’s equity 1918165712.98 1935968407.19
Total liabilities and owner’s equity 2953857079.17 2813625400.56
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 518150606.21 408124616.38
Including: Operating income 518150606.21 408124616.38
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 508157542.84 443959972.56
Including: Operating cost 453109436.14 382997137.69
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 4419108.69 2825433.43
Sales expense 2527403.66 2566269.52
Administrative expense 43036872.15 44931864.50
R&D expense
Financial expense 5064722.20 10639267.42
Including: Interest
expenses
18187759.13 23542971.21
Interest income -13142285.32 -13189605.67
Add: other income 8755536.55 4962155.46
Investment income (Loss is
listed with “-”)
33291259.12 -677552.37
Including: Investment income
on affiliated company and joint venture
-243622.43 -677552.37
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
Income from assets disposal
(Loss is listed with “-”)
828535.66 -417926.32
III. Operating profit (Loss is listed with
“-”)
52868394.70 -31968679.41
Add: Non-operating income 4753.84 103166.50
Less: Non-operating expense 11110.00 46124.97
IV. Total profit (Loss is listed with “-”) 52862038.54 -31911637.88
Less: Income tax expense 610366.52 1157865.76
V. Net profit (Net loss is listed with “-”) 52251672.02 -33069503.64
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”)
52251672.02 -33069503.64
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
52040498.42 -25283190.82
2.Minority shareholders’ gains and
losses
211173.60 -7786312.82
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 52251672.02 -33069503.64
Total comprehensive income
attributable to owners of parent Company
52040498.42 -25283190.82
Total comprehensive income
attributable to minority shareholders
211173.60 -7786312.82
VIII. Earnings per share:
(i) Basic earnings per share 0.09 -0.04
(ii) Diluted earnings per share 0.09 -0.04
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 145767015.34 165514051.23
Less: Operating cost 137936919.09 172328135.53
Taxes and surcharge 1043521.78 1087030.23
Sales expenses
Administration expenses 20573683.41 24673677.93
R&D expenses
Financial expenses -15583586.02 -14339507.18
Including: interest
expenses
14003693.17 22030984.10
Interest income -29739688.14 -36594234.59
Add: other income 6061054.97 1973036.55
Investment income (Loss is
listed with “-”)
-14432400.00
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
Income on disposal of assets
(Loss is listed with “-”)
828535.66 -231373.37
II. Operating profit (Loss is listed with
“-”)
-5746332.29 -16493622.10
Add: Non-operating income
Less: Non-operating expense 1110.00
III. Total Profit (Loss is listed with “-”) -5747442.29 -16493622.10
Less: Income tax -2246824.86
IV. Net profit (Net loss is listed with
“-”)
-5747442.29 -14246797.24
(i)continuous operating net profit(net loss listed with ‘-”)
-5747442.29 -14246797.24
(ii) termination of net profit (netloss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income -5747442.29 -14246797.24
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
546650431.87 428898326.58
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Cash received from interest
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 825437.15 1346224.12
Other cash received concerning
operating activities
22506294.89 70033512.82
Subtotal of cash inflow arising from
operating activities
569982163.91 500278063.52
Cash paid for purchasing
commodities and receiving labor
service
375599637.22 333819040.13
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 75085663.24 66444597.80
Taxes paid 28204829.24 17292868.12
Other cash paid concerning
operating activities
21155472.75 26504180.58
Subtotal of cash outflow arising from
operating activities
500045602.45 444060686.63
Net cash flows arising from operating
activities
69936561.46 56217376.89
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
254147.93
Net cash received from disposal of
fixed intangible and other long-term
assets
1989560.00
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
800000.00
Subtotal of cash inflow from investing
activities
1054147.93 1989560.00
Cash paid for purchasing fixed
intangible and other long-term assets
5447277.81 22830724.69
Cash paid for investment 53434321.12
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
12577163.02
Subtotal of cash outflow from investing
activities
71458761.95 22830724.69
Net cash flows arising from investing
activities
-70404614.02 -20841164.69
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 844233285.00 730000000.00
Other cash received concerning
financing activities
170000000.00 7303338.86
Subtotal of cash inflow from financing
activities
1014233285.00 737303338.86
Cash paid for settling debts 670000000.00 634000000.00
Cash paid for dividend and profit
distributing or interest paying
30452445.36 23755459.28
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
700452445.36 657755459.28
Net cash flows arising from financing
activities
313780839.64 79547879.58
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
101178.77 3136.95
V. Net increase of cash and cash
equivalents
313413965.85 114927228.73
Add: Balance of cash and cash
equivalents at the period -begin
771490000.96 914956611.70
VI. Balance of cash and cash
equivalents at the period -end
1084903966.81 1029883840.43
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
175122223.90 179341203.60
Write-back of tax received 171207.01
Other cash received concerning
operating activities
255646269.06 472584897.62
Subtotal of cash inflow arising from
operating activities
430939699.97 651926101.22
Cash paid for purchasing
commodities and receiving labor
service
117118694.51 166269024.94
Cash paid to/for staff and workers 47301346.15 37380527.03
Taxes paid 222887.49 9889753.49
Other cash paid concerning
operating activities
275229334.87 180626305.78
Subtotal of cash outflow arising from
operating activities
439872263.02 394165611.24
Net cash flows arising from operating
activities
-8932563.05 257760489.98
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
59990000.00
Cash received from investment
income
254147.93
Net cash received from disposal of
fixed intangible and other long-term
assets
1794800.00
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
230318617.98
Subtotal of cash inflow from investing
activities
290562765.91 1794800.00
Cash paid for purchasing fixed
intangible and other long-term assets
1915256.43 15789275.99
Cash paid for investment 53434321.12
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
activities
55349577.55 15789275.99
Net cash flows arising from investing
activities
235213188.36 -13994475.99
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 544233285.00 430000000.00
Other cash received concerning
financing activities
5000000.00
Subtotal of cash inflow from financing
activities
549233285.00 430000000.00
Cash paid for settling debts 370000000.00 530000000.00
Cash paid for dividend and profit
distributing or interest paying
25373959.23 20895394.22
Other cash paid concerning
financing activities
600600.00
Subtotal of cash outflow from financing
activities
395974559.23 550895394.22
Net cash flows arising from financing
activities
153258725.77 -120895394.22
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
848.67 391.81
V. Net increase of cash and cash
equivalents
379540199.75 122871011.58
Add: Balance of cash and cash
equivalents at the period -begin
632948706.11 766041463.01
VI. Balance of cash and cash
equivalents at the period -end
1012488905.86 888912474.59
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
Item
2020 semi-annual
Owners’ equity attributable to the parent Company
Minori
ty
interes
ts
Total
owners
’
equity
Share
capita
l
Other
equity instrument
Capital
reserve
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
e
Reaso
nable
reserve
Surplu
s
reserve
Provisi
on of
genera
l risk
Retain
ed
profit
Other
Subtot
al
Prefe
rred
stock
Perpe
tual
capit
al
secur
ities
Other
I. Balance at the
end of the last
year
6027
6259
6.00
36277
0922.
10
-2500
000.00
33290
8397.
60
70683
0892.
54
2002
77280
8.24
59719
513.2
6
2062
49232
1.50
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at
the beginning of
this year
6027
6259
6.00
36277
0922.
10
-2500
000.00
33290
8397.
60
70683
0892.
54
2002
77280
8.24
59719
513.2
6
2062
49232
1.50
III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
39985
246.5
0
39985
246.5
0
-3040
8162.
88
9577
083.62
(i) Total
comprehensive
income
52040
498.4
2
52040
498.4
2
21117
3.60
52251
672.0
2
(ii) Owners’
devoted and
decreased
capital
-3061
9336.
48
-3061
9336.
48
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
-3061
9336.
48
-3061
9336.
48
(III) Profit
distribution
-1205
5251.
92
-1205
5251.
92
-1205
5251.
92
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
-1205
5251.
92
-1205
5251.
92
-1205
5251.
92
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
6027
6259
6.00
36277
0922.
10
-2500
000.00
33290
8397.
60
74681
6139.
04
2042
75805
4.74
29311
350.3
8
2072
06940
5.12
Last Period
In RMB
Item
2019 semi-annual
Owners’ equity attributable to the parent Company
Minorit
y
interest
s
Total
owners’
equity
Share
capita
l
Other
equity instrument
Capital
reserve
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
e
Reaso
nable
reserve
Surplu
s
reserve
Provisi
on of
genera
l risk
Retain
ed
profit
Other
Subtot
al
Prefe
rred
stock
Perp
etual
capit
al
secur
ities
Other
I. Balance at
the end of the
last year
6027
6259
6.00
36277
0922.
10
33290
8397.
60
67942
9935.
81
1977
87185
1.51
58927
527.37
20367
99378.
88
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at
the beginning
of this year
6027
6259
6.00
36277
0922.
10
33290
8397.
60
67942
9935.
81
1977
87185
1.51
58927
527.37
20367
99378.
88
III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
-2528
3190.
82
-2528
3190.
82
-7786
312.82
-33069
503.64
(i) Total
comprehensive
income
-2528
3190.
82
-2528
3190.
82
-7786
312.82
-33069
503.64
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings
from the
defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
6027
6259
6.00
36277
0922.
10
33290
8397.
60
65414
6744.
99
1952
58866
0.69
51141
214.55
20037
29875.
24
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
Item
2020 semi-annual
Share
capital
Other equity instrument
Capital
public
reserve
Less:
Inventor
y shares
Other
compreh
ensive
income
Reasona
ble
reserve
Surplus
reserve
Retaine
d profit
Other
Total
owners’
equity
Preferr
ed
stock
Perpet
ual
capital
securiti
es
Other
I. Balance at the
end of the last
year
60276
2596.0
0
289963
039.70
332908
397.60
71033
4373.8
9
1935968
407.19
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
II. Balance at the
beginning of this
year
60276
2596.0
0
289963
039.70
332908
397.60
71033
4373.8
9
1935968
407.19
III. Increase/
Decrease in this
year (Decrease is
listed with “-”)
-17802
694.21
-1780269
4.21
(i) Total
comprehensive
income
-5747
442.29
-5747442
.29
(ii) Owners’
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
-12055
251.92
-1205525
1.92
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
-12055
251.92
-1205525
1.92
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
60276
2596.0
0
289963
039.70
332908
397.60
69253
1679.6
8
1918165
712.98
Last period
In RMB
Item
2019 semi-annual
Share
capital
Other equity
instrument
Capital
public
reserve
Less:
Inventor
y shares
Other
compre
hensive
income
Reasonab
le reserve
Surplus
reserve
Retained
profit
Other
Total
owners’
equity
Preferr
ed
stock
Perpet
ual
capital
securit
ies
Other
I. Balance at the
end of the last
60276
2596.
289963
039.70
332908
397.60
7095813
50.64
19352153
83.94
year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning
of this year
60276
2596.
00
289963
039.70
332908
397.60
7095813
50.64
19352153
83.94
III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
-142467
97.24
-14246797
.24
(i) Total
comprehensive
income
-142467
97.24
-14246797
.24
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
60276
2596.
00
289963
039.70
332908
397.60
6953345
53.40
19209685
86.70
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
Shenzhen Nanshan Power Co. Ltd.Notes to financial statement of Semi-Annual 2020
I. Company Profile
(1) Profile
Shenzhen Nanshan Power Co. Ltd (hereinafter the “Company”) was reorganized to be a joint-stock enterprise
from a foreign investment enterprise on 25 November 1993 upon the approval of General Office of Shenzhen
Municipal Government with Document Shen Fu Ban Fu [1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office
on 3 January 1994 the Company offered 40000000 RMB common shares and 37000000 domestically listed
foreign shares in and out of China. And the RMB common shares (A-stock) and domestically listed foreign listed
shares (B-stock) were listed in Shenzhen Stock Exchange successively on July 1 1994 and Nov. 28 1994.Headquarter of the Company located on 16/F 17/F Han Tang Building OCT Nanshan District Shenzhen City
Guangdong Province P.R.C.The financial statement has approved for report by the Board on 12 August 2020.
(2) Scope of consolidate financial statement
Subsidiary included in the consolidate financial statement of the Company up to 30 June 2020 are as:
Subsidiary
Shen Nan Dian (Zhongshan) Electric Power Co. Ltd.（“Zhongshan Electric Power”）
Shenzhen Shennandian Turbine Engineering Technology Co. Ltd.（“Engineering Company”）
Shenzhen Shen Nan Dian Environment Protection Co. Ltd.（“Environment Protection Company”）
Shenzhen Server Petrochemical Supplying Co. Ltd（“Shenzhen Server”）
Shenzhen New Power Industrial Co. Ltd.（“New Power”）
Shen Nan Energy (Singapore) Co. Ltd.（“Singapore Company”）
Hong Kong Syndisome Co. Ltd.（“Syndisome ”）
Zhongshan Shen Nan Dian Storage Co. Ltd.（“Shen Storage”）
Scope of the consolidate financial statement and its changes found more in the VI. Change of Consolidate Scope
and VII. Equity in other entity carry in the Note
II. Preparation basis of Financial statement
(1) Preparation basis
The Company’s financial statements have been prepared based on the going concern and the actual transactions
and events. In accordance with the Accounting Standards for Business Enterprises- Basic Norms and every
specific accounting rules the application guidelines of the Accounting Standards for Business Enterprises
interpretations and other related rules of the Accounting Standards for Business Enterprises (hereinafter referred to
as “ASBEs”) and the disclosure requirements of the “Regulation on the Preparation of Information Disclosures of
Companies Issuing Public Shares No. 15- General Requirements for Financial Reports” of China Securities
Regulatory Commission.
(2)Going concern
The Company is capable of going concern for 12 months from the end of the reporting period and there are no
major issues affecting the ability to go concern.III. Major Accounting Policies and Estimation
The Company together with its subsidiaries is mainly engaged in businesses as production of power and heat
power plant construction fuel trading engineering consulting and and sludge drying.According to the actual
production and operation characteristics the Company and its subsidiaries establish certain specific accounting
policies and accounting estimates in respect of their transactions and matters such as sales revenue recognition
pursuant to relevant business accounting principles. Details are set out in (16) Fixed assets and the (25) Revenue
under Note III. For explanation on material accounting judgment and estimate issued by the management please
refer to (32) Major accounting judgment and estimation under Note III.
(1) Statement on observation of Accounting Standard for Business Enterprises
The Financial Statements are up to requirements of Accounting Standards for Business Enterprises and reflect the
financial status operation outcomes and cash flows of the Company in reporting period in truthfulness and
completeness.
(2) Accounting period
Accounting period of the Company divide into annual and medium-term and the medium-term is the reporting
period that shorter than one completed accounting year. The Company’s accounting year is Gregorian calendar
year namely from 1st January to 31st December.
(3) Operating cycle
The operating cycle of the Company is 12 months.
(4) Book-keeping standard currency
Book-keeping standard of the Company is RMB(CNY)
(5) Accounting treatment on enterprise combine under the same control and under the
different control
Enterprise combination under the same control: The assets and liabilities obtained by the Company in enterprise
combination are measured at the book value of the consolidated financial statements of the ultimate controlling
party in accordance with the assets and liabilities of the combined party on the date of combination. The difference
between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the
combination (or the aggregate nominal value of shares issued as consideration) is charged to the share capital
premium in capital reserve. If the share capital premium in capital reserve is not sufficient to absorb the difference
any excess shall be adjusted against retained earnings.
Enterprise combinations not under the same control: The Company's assets paid and liabilities incurred or assumed
on the date of purchase as a consideration of enterprise combination are measured at fair value and the difference
between the fair value and its book value is included in the current profit and loss. Where the cost of a business
combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets the difference
is recognized as goodwill; where the cost of a business combination less than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets reckoned into current gains/losses after double-check.The intermediary fees such as auditing legal services consultation and other directly relevant incurred in the
merger of enterprises shall be reckon into the current gains/losses when incurred; the transaction costs of issuing
equity securities for the purpose of enterprise combination should be charge-off.
(6) Preparation methods for consolidated statement
1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis all subsidiaries (including the part of
the enterprise under control of the investee that can be divided) are included in the consolidated financial
statement.
2. Consolidate procedures
Based on the financial statements of itself and its subsidiaries the Company compiles the consolidated financial
statements in line with other relevant information. The Company compiles consolidated financial statements
considers the entire enterprise group as an accounting entity and reflects the overall financial position operating
results and cash flow of the enterprise group in accordance with the relevant accounting standards' recognition
measurement and presentation requirements and in accordance with unified accounting policies.The accounting policies and accounting periods adopted by all subsidiaries included in the consolidation scope of
the consolidated financial statements are consistent with the Company. If the accounting policies and accounting
periods adopted by the subsidiaries are inconsistent with the Company when preparing the consolidated financial
statements make necessary adjustments according to the accounting policies and accounting periods of the
Company. For a subsidiary acquired through a business combination not under the same control its financial
statements are adjusted based on the fair value of the identifiable net assets at the acquisition date. For a subsidiary
acquired through a business combination under the same control its financial statements are adjusted based on the
book value of its assets and liabilities (including the goodwill formed by the ultimate controlling party's acquisition
of the subsidiary) in the ultimate controlling party's financial statements.The subsidiary's owner's equity current net profit or loss and the share of current comprehensive income belonging
to minority shareholders are separately listed under the owner's equity item in the consolidated balance sheet
under the net profit item in the consolidated income statement and under the total comprehensive income item. If
the current loss shared by the minority shareholders of a subsidiary exceeds the minority shareholder' share in the
owner's equity of the subsidiary at the beginning of the period the balance shall offset against the minority
shareholders' equity.
(1) Increase subsidiaries or businesses
During the reporting period if a subsidiary or business is added due to a business combination under the same
control adjust the opening balance of the consolidated balance sheet; incorporate the income expenses and profits
of the subsidiary or business combination from the beginning of the current period to the end of the reporting
period into the consolidated income statement; incorporate the cash flows of the subsidiary or business
combination from the beginning of the current period to the end of the reporting period into the consolidated cash
flow statement and adjust the relevant items of the comparative statement as if the consolidated reporting entity
had been existing since the time when the ultimate controlling party began controlling.Where it is possible to exercise control over an investee under the same control due to additional investment all
parties participating in the combination are deemed to have adjusted in their current state when the ultimate
controlling party commenced control. The equity investment held before the control of the combined party is
obtained the relevant profit or loss and other comprehensive income that have been confirmed between the date of
acquisition of the original equity and the date on which the combining party and the combined party are under the
same control until the combining date as well as other changes in net assets respectively write down the retained
earnings at the beginning of period or the current profits and losses in the comparative statements.
During the reporting period if a subsidiary or business is added due to a business combination not under the same
control the opening balance of the consolidated balance sheet period will not be adjusted; the income expenses
and profits of the subsidiary or business from the acquisition date to the end of the reporting period will be
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 are included in the consolidated statement of cash flow.
For reasons such as additional investments that can control an investee not under the same control the Company
remeasures the equity of the acquiree held before the purchase date according to the fair value of the equity on the
purchase date and the balance between the fair value and its book value is included in the current investment
income. If the equity of the acquiree held before the purchase date involves other comprehensive income under the
equity method and other changes in owner's equity other than net profit or loss other comprehensive income and
profit distribution other comprehensive income and other changes in owner's equity related to it shall be converted
into the investment income of the current period on the date of purchase except for other comprehensive income
arising from the re-measurement of the net liabilities or changes in net assets of the defined benefit plan of the
investee.
(2) Disposal of subsidiaries or businesses
①General treatment method
During the reporting period when the Company disposes of a subsidiary or business the income expenses and
profits of the subsidiary or business from the beginning of the period to the disposal date are included in the
consolidated income statement while the cash flow of the subsidiary or the business from the beginning of the
period to the disposal date is included in the consolidated statement of cash flow.For control rights loss in original subsidiary for partial equity investment disposal or other reasons the remained
equity should re-measured based on the fair value at date of control losses. The difference between the net assets of
original subsidiary share by proportion held that sustainable calculated since purchased date (or combination date)
and sum of consideration obtained by equity disposal and fair value of remain equity reckoned into the current
investment income of control rights loss. Other comprehensive income related to the original subsidiary's equity
investment or other changes in owner's equity other than net profit and loss other comprehensive income and
profit distribution will be converted to current investment income when the control is lost except for other
comprehensive income arising from the remeasurement of the net liabilities or changes in net assets of the defined
benefit plan of the investee.If other investors’ capital increases in the subsidiary results in a decline in the Company's shareholding ratio and
thus loss of control power accounting shall be conducted in accordance with the above principles.
② Dispose subsidiary step-by-step
When the Company disposes of equity investment in a subsidiary by a stage-up approach with several transactions
until the control over the subsidiary is lost these several transactions related to the disposal of equity investment in
a subsidiary are accounted for as transactions in a basket when the terms conditions and economic impacts of
these several transactions meet the following one or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on each other;
ii. these transactions as a whole can reach complete business results;
iii the occurrence of a transaction depends on at least the occurrence of an other transaction;
iv.an individual transaction is not deemed as economic but is deemed as economic when considered with other
transactions.When several transactions related to the disposal of equity investment in a subsidiary until the control over the
subsidiary is lost fall within transactions in a basket each of which is accounted for as disposal of a subsidiary
with a transaction until the control over a subsidiary is lost; however the different between the amount of disposal
prior to the loss of control and the net assets of a subsidiary attributable to the disposal investment shall be
recognized as other comprehensive income in consolidated financial statements and transferred to profit or loss for
the period at the time when the control is lost.If the transactions that dispose of the equity investment in the subsidiary until the loss of control do not belong to
the package transaction before the loss of control the relevant policies for partial disposal of the equity investment
in the subsidiary shall be accounted for without losing control. When the control right is lost the accounting
treatment shall be carried out according to the general treatment method for disposing of the subsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to the purchase of
minority shares and the net assets share calculated continuously by the subsidiary from the date of purchase (or
merger date) in accordance with the calculation of the newly increased shareholding ratio adjust the equity
premium in the capital reserve in the consolidated balance sheet if the equity premium in the capital reserve is
insufficient to offset adjust the retained earnings.(4) Partial disposal of equity investment in subsidiaries without losing control
The difference between the disposal cost obtained as a result of partial disposal of long-term equity investment in a
subsidiary without losing control and the net assets share calculated continuously by the subsidiary from the date
of purchase or merger corresponding to the disposal of the long-term equity investment adjust the equity premium
in the capital reserve in the consolidated balance sheet if the equity premium in the capital reserve is insufficient
to offset adjust the retained earnings.
(7) Classification of joint arrangement and accounting treatment
Joint arrangement is divided into joint operation and joint venture.
As a joint party of the joint arrangement it is a joint operation when the Company enjoys assets related to the
arrangement and bears the liabilities related to the arrangement.The company confirms the following items related to the share of interests in its joint operations and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
Accounting policy for the joint venture investment found more in (14) Long-term equity investment under Note
III.
(8) Determination criteria of cash and cash equivalent
While preparing the cash flow statement the stock cash and savings available for payment at any time are
recognized as cash. The investments meets the follow four conditions at the same time are recognized as cash
equivalent that is short-term (normally fall due within three months from the date of acquisition) and highly liquid
investments held the Group which are readily convertible into known amounts of cash and which are subject to
insignificant risk of value change.
(9) Foreign currency business and foreign currency statement translation
1.Foreign currency business
Foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convert
foreign currency amounts into RMB for accounting.The balance of foreign currency monetary items at the balance sheet date is converted at the spot exchange rate on
the balance sheet date the resulting exchange difference is included in current profit and loss except that the
exchange difference arising from foreign currency special borrowings related to the acquisition or construction of
assets eligible for capitalization is disposed with the principle of borrowing costs capitalization.
2. Foreign currency statement translation
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; the
owners' equity items are converted at the spot exchange rate at the time of occurrence except for the "undistributed
profit" item. The income and expense items in the income statement are converted at the spot exchange rate on the
transaction date.When disposing of an overseas operation the translation difference in the foreign currency financial statements
related to the overseas operation is transferred from the owner's equity item to the disposal of current profit or loss.
(10) Financial instrument
Financial instrument consist of financial assets financial liability and equity instrument.
1.Classification of financial instrument
Based on the Company's business model for managing financial assets and the contractual cash flow characteristics
of financial assets financial assets are classified as the financial assets measured at amortized cost the financial
assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income
and the financial assets measured at fair value and whose changes are included in current profit and loss at initial
recognition.
Business model to collect the contractual cash flow and the contractual cash flow is only the payment of the
principal and the interest based on the outstanding principal amount is classified as a financial asset measured at
amortized cost; business model to collect the contractual cash flow and sell the financial asset and the contractual
cash flow is only the payment of principal and the interest based on the outstanding principal amount is classified
as a financial asset measured at fair value and whose changes are included in other comprehensive income (debt
instruments); other financial assets other than these are classified as financial assets measured at fair value and
whose changes are included in the current profit and loss.
For a non-tradable equity instrument investment the Company determines at the time of initial recognition
whether to designate it as a financial asset (equity instrument) measured at fair value and whose changes are
included in other comprehensive income. At the time of initial recognition in order to eliminate or significantly
reduce accounting mismatches financial assets can be designated as financial assets that are measured at fair value
and whose changes are included in the current profit and loss.
At the time of initial recognition financial liabilities are classified into financial liabilities that are measured at fair
value and whose changes are included in the current profit and loss and financial liabilities that are measured at
amortized cost.
A financial liability that meets one of the following conditions can be designated as a financial liability measured
at fair value and whose changes are included in current profit and loss at initial measurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) In accordance with the corporate risk management or investment strategy stated in formal written documents
make management and performance evaluation to financial liability portfolios or financial assets and financial
liability portfolios based on fair value and report to the key management personnel within the enterprise based on
this.
3) The financial liability includes embedded derivatives that need to be split separately.
2. Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include bills receivable accounts receivable other receivables
long-term receivables debt investment etc. which are initially measured at fair value and related transaction costs
are included in the initially recognized amount; accounts receivable excluding significant financing components
and accounts receivable with financing components not exceeding one year that the Company decides not to
consider are initially measured at the contract transaction price.The interest calculated by using the effective interest method during the holding period is included in the current
profit and loss.When taking back or disposing the difference between the cost obtained and the book value of the financial asset
is included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned into other
comprehensive income
The financial assets (debt instrument) measured at fair value and whose changes are reckoned into other
comprehensive income consist of receivable financing and other debt investment and initially measured at fair
value relevant transaction fees are included in initial recognized amount. The financial assets are subsequently
measured at fair value and the fair value changes are reckoned into other comprehensive income except for the
interest impairment loss or gain and exchange gain or loss calculated by actual interest rate method.Upon termination of the recognition the accumulated gains or losses previously included in other comprehensive
income shall be transferred out and reckoned into current profit and loss.
(3) Financial assets (equity instrument) measured at fair value and whose changes are reckoned into other
comprehensive income
The financial assets (equity instrument) measured at fair value and whose changes are reckoned into other
comprehensive income consist of the equity instrument investment etc. and initially measured at fair value
relevant transaction fees are included in initial recognized amount. The financial assets are subsequently measured
at fair value and the fair value changes are reckoned into other comprehensive income. The dividend obtained
should reckoned into current gains/losses.Upon termination of the recognition the accumulated gains or losses previously included in other comprehensive
income shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned into current gains/losses
The financial assets measured at fair value and whose changes are reckoned into current gains/losses consist of
trading financial assets derivative financial assets and other non-current financial assets etc. and initially measured
at fair value relevant transaction fees are included in current gains/losses. The financial assets are subsequently
measured at fair value and the fair value changes are reckoned into current gains/losses.Upon termination of the recognition the difference between its fair value and initial entry amount is recognized as
investment income and adjust the gains/losses from fair value changes at the same time.
(5) Financial liability measured at fair value and whose changes are reckoned into current gains/losses
The financial liability measured at fair value and whose changes are reckoned into current gains/losses consist of
trading financial liability and derivative financial liability etc. and initially measured at fair value relevant
transaction fees are included in current gains/losses. The financial liabilities are subsequently measured at fair
value and the fair value changes are reckoned into current gains/losses.Upon termination of the recognition the difference between its fair value and initial entry amount is recognized as
investment income and adjust the gains/losses from fair value changes at the same time.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans note payable account payable
other account payable long-term loans bond payable and long-term account payable and initially measured at fair
value relevant transaction fees are included in initial recognized amount.The interests calculated by effective interest rate method during the holding period is reckoned into current
gains/losses.Upon termination of the recognition the difference between consideration paid and the book value of financial
liability is reckoned into current gains/losses.
3. Recognition basis and measurement method for transfer of financial assets
When the Company transfers financial assets if almost all risks and rewards of ownership of financial assets have
been transferred to the transferee derecognize the financial assets; if almost all risks and rewards of ownership of
financial assets have been retained don’t derecognize the financial assets.When determining whether the transfer of financial assets meets the above conditions for the termination of
recognition of financial assets adopt the principle of substance over form. The Company distinguishes the transfer
of financial assets into overall transfers and partial transfers of financial assets. If the overall transfer of financial
assets meets the conditions for derecognition the difference between the following two amounts is included in the
current profit and loss:
(1) The book value of the transferred financial assets;
(2) The sum of the consideration received as a result of the transfer and the cumulative amount of changes in the
fair value that were directly credited to the owner's equity (the transferred financial asset is an available-for-sale
financial asset).If partial transfer of financial assets meets the conditions for derecognition the entire book value of the transferred
financial assets is apportioned between the derecognized parts and non-derecognized parts according to their
relative fair values and the difference between the following two amounts is included in the current profit and loss:
(1) The book value of the derecognition part;
(2) The sum of the consideration of the derecognition part and the amount corresponding to the derecognition part
of the cumulative total of changes in fair value that were directly credited to the owner's equity (the transferred
financial asset is an available-for-sale financial asset).If the transfer of financial assets does not meet the conditions for derecognition the financial assets are
continuously recognized and the consideration received is recognized as a financial liability.
4. Termination recognition of financial liability
Where the current obligation of a financial liability have been discharged in whole or in part the recognition of the
financial liability or part thereof shall be terminated; If the Company entered into an agreement with its creditors to
replace its existing financial liabilities with the new financial liability and the contract terms of the new financial
liabilities and the existing financial liabilities are substantially different the existing financial liabilities shall be
terminated for recognition and the new ones shall be recognized at the same time. As for substantive changes made
to the contract terms (in whole or in part) of the existing financial liabilities the existing financial liabilities (or
part of it) will be terminated for recognition and the financial liabilities after term revision will be recognized as a
new financial liability.When a financial liability is derecognized in whole or in part the difference between the book value of the
financial liability derecognized and the consideration paid (including the non-cash assets transferred out or the new
financial liabilities assumed) is included in the current profit and loss.If the Company repurchases part of the financial liabilities the entire book value of the financial liabilities will be
allocated on the repurchase date according to the relative fair value of the continuing recognition part and the
derecognition part. The difference between the book value allocated to the derecognition part and the consideration
paid (including the transferred non-cash assets or assumed new financial liabilities) is included in the current profit
and loss.
5. Methods for determining the fair value of financial assets and financial liabilities
For financial instruments that have an active market their fair values are determined by using quotes in the active
market. For financial instruments that do not have an active market valuation techniques are used to determine
their fair values. In the valuation the Company adopts valuation techniques that are applicable under the current
circumstances and have sufficient available data and other information support chooses the input values consistent
with the characteristics of assets or liabilities considered by market participants in the transactions of related assets
or liabilities and prioritizes the relevant observable input values. The Company uses unobservable input values
only if the relevant observable input values cannot be obtained or are not practicable.
6. Test methods and accounting treatment methods for impairment of financial assets (excluding receivables)
The Company considers all reasonable and evidence-based information including forward-looking information
and estimates the expected credit losses of financial assets measured at amortized cost by the single or combined
way and financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income. The measurement of expected credit losses depends on whether a significant increase in
credit risk has occurred since the initial recognition of a financial asset.If the credit risk of the financial instrument has increased significantly since initial recognition the Company shall
measure its loss provision at an amount equivalent to the expected credit loss throughout the life of the financial
instrument. If the credit risk of the financial instrument has not increased significantly since initial recognition the
Company shall measure its loss provision at an amount equivalent to the expected credit loss of the financial
instrument in the next 12 months. The increased or reversed amount of the loss provision thus formed shall be
included in the current profit and loss as impairment losses or gains.Usually the Company considers that the credit risk of the financial instrument has increased significantly when it
is overdue for more than 30 days unless there is conclusive evidence that the credit risk of the financial instrument
has not increased significantly after initial recognition.If the credit risk of a financial instrument at the balance sheet date is low the Company will consider that the credit
risk of the financial instrument has not increased significantly since initial recognition.
(11) Bad deb provision of account receivable
Regarding account receivables whether or not it contains a significant financing component the Company always
measures its loss provisions at an amount equivalent to the expected credit loss throughout the duration and the
resulting increase and reversed amount of loss provisions is included in the current profit and loss as impairment
losses or gains.In addition to receivables that individually assess credit risk based on their credit risk characteristics they are
divided into different portfolios:
Item Accrual ratio for account receivable (%)
Group 1: low-risk
The portfolio is determined based on the similarity
of credit risk characteristics the Company believes
that the credit risk of a receivable that has not been
impaired in a single assessment of credit risk is low
and no provision for bad debts is made unless there
is evidence that the credit risk of a certain
receivable is high.If there is objective evidence that a certain account receivable has suffered credit impairment the Company shall
make provision for bad debts on that account receivable and confirm the expected credit loss.
(12) Inventory
1. Categories of inventory
Inventory consists of fuels and raw materials etc.
2. Valuation method of delivered inventory
The inventories are initially measured at cost. When the inventory is delivered the actual cost of delivered
inventory shall be determined by weighted average method.
3.Basis for determining the net realizable value of different types of inventories
On the balance sheet day the inventory is measured by the lower one between the cost and the net realizable
value. As the net realizable value is lower than the cost the inventory depreciation provision is accrued. The
net realizable value is balance of the estimated sale price less the estimated forthcoming cost upon the
completion the estimated sale expense and the relevant tax in the daily activities. Upon the recognition of
net realizable value of the inventory the concrete evidence is based on and the purpose of holding the
inventory and the influence of events after the balance sheet day are considered.As for the inventory of large sum and lower price the inventory depreciation provision is accrued by the inventory
categories. As for the inventory related to the product series produced and sold in the same district of the same or
similar final use or purpose and impossible to be separated from the other items the provision is consolidated and
accrued. The provision for other inventory is accrued by the difference between the cost and net realizable value.Upon the accrual of the inventory depreciation provision if the previous influence factors on the inventory
deduction disappeared which resulted in the net realizable value being higher than its book value; the accrual is
transferred back within the previous accrual of the provision and reckoned into the current gain/loss.
4. Inventory system
Perpetual inventory system required
5. Amortization method of low-value consumables and packaging
(1) Low-value consumables-one pass method
(2) Packaging- one pass method
(13) Contract assets
1. Confirmation methods and standards of contract assets
If the Company has transferred goods to customers and has the right to receive consideration and the right depends
on factors other than the time lapses it is recognized as contract assets. The Company's unconditional (that is only
depending on the time lapses) right to collect consideration from customers are separately listed as receivables.
2. Determination method and accounting treatment method of expected credit loss of contract assets
The Company's determination method and accounting treatment method for the expected credit loss of contract
assets are detailed in Note III/(11) Provision for bad debts of receivables
(14) Long-term equity investment
1. Criteria judgement for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement which relevant
activities of such arrangement must be decided by unanimously agreement from parties who share control. Where
the Company and other joint ventures exercise joint control over the investee and enjoy the rights to the net assets
of the investee the investee is a joint venture of the Company.Significant influence is the right of the Company to participate in the financial and operation decision-making of
an enterprise but not to control or jointly control the formulation of such policies with other parties. Where the
Company is able to exert significant influence on the investee the investee shall be a joint venture of the Company.
2. Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
Enterprise combination under the same control: If the Company pays cash transfers non-cash assets or assumes
debt and issues equity securities as the consideration for the merger the share of the book value of the owner's
equity of the combined party in the consolidated financial statements of the ultimate controlling party on the
combining date shall be used as the initial investment cost of long-term equity investment. If it is possible to
control the investee under the same control due to additional investments etc. the initial investment cost of
long-term equity investment shall be determined based on the share of the book value of the net assets of the
combined party in the consolidated financial statements of the ultimate controlling party on the merger date. The
difference between the initial investment cost of the long-term equity investment on the merger date and the sum of
the book value of the long-term equity investment before the merger plus the book value of the new share payment
consideration obtained on the merger date adjusts the equity premium. If the equity premium is insufficient to be
offset the retained earnings shall be offset.
Business combination not under the same control: The Company uses the combination cost determined on the
purchase date as the initial investment cost of the long-term equity investment. If it is possible to exercise control
over an investee that is not under the same control due to additional investments etc. the sum of the book value of
the original equity investment plus the newly increased investment cost is used as the initial investment cost
calculated by the cost method.
(2) Long-term equity investment obtained through other methods
For a long-term equity investment obtained by paying cash the actually paid purchase price is taken as the initial
investment cost.
For a long-term equity investment obtained by issuing equity securities the fair value of the issued equity
securities is taken as the initial investment cost.On the premise that the non-monetary asset exchange has commercial substance and that the fair value of the
assets swapped in or out can be reliably measured the initial investment cost of the long-term equity investment
swapped in by non-monetary assets exchange is determined by the fair value of assets swapped out and the
relevant payable taxes and fees unless there is conclusive evidence that the fair value of the assets swapped in is
more reliable; for non-monetary assets exchange that do not meet the above preconditions the book value of the
assets swapped out and the relevant taxes and fees payable are used as the initial investment cost of the long-term
equity investment swapped in.
For a long-term equity investment obtained through debt restructuring its entry value is determined based on the
fair value of the abandoned creditor's rights and other costs such as taxes directly attributable to the asset and the
difference between the fair value of the abandoned creditor's rights and the book value is included in the current
profit and loss.
3. Follow-up measurement and gain/loss recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at cost. In addition to the actual prices or the
announced but yet undistributed cash dividend or profit in consideration valuation the current investment return is
recognized by the announced cash dividend or profit by the invested units.(2) Long-term equity investment measured at equity
The long-term equity investment in associated enterprise and joint ventures shall be measured at cost. If the initial
investment cost is greater than than the share of fair value of the invested entity’s identifiable net assets the initial
investment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less than
than the share of fair value of the invested entity’s identifiable net assets the difference shall reckoned in current
gains/losses.The investment gain and other comprehensive income shall be recognized based on the Company’s share of the net
profits or losses and other comprehensive income made by the investee respectively. Meanwhile the carrying
amount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investment
shall be reduced based on the Group’s share of profit or cash dividend distributed by the investee. In respect of the
other movement of net profit or loss other comprehensive income and profit distribution of investee the carrying
value of long-term equity investment shall be adjusted and included in the owners’ equity.The Company shall recognize its share of the investee’s net profits or losses based on the fair values of the
investee’s individual separately identifiable assets at the time of acquisition after making appropriate adjustments
thereto during the accounting period and according to the accounting policy of the Company. During the period of
holding the investment the investee prepares the consolidated financial statements based on the net profit other
comprehensive income and the amount attributable to the investee in changes in other owners' equity in the
consolidated financial statements for business accounting.When the Company confirms that it should share the losses incurred by the investee it shall proceed in the
following order. Firstly write off the book value of the long-term equity investment. Secondly if the book value of
the long-term equity investment is not sufficient to offset the investment loss shall continue to be recognized
within the limit of the book value of long-term equity that substantially constitutes a net investment in the investee
and offset the book value of long-term receivables. Finally after the above-mentioned treatment if the enterprise
still bears additional obligations as stipulated in the investment contract or agreement the estimated liabilities are
recognized according to the estimated obligations and included in the current investment loss.
(3) Disposal of long-term equity investment
When disposing of a long-term equity investment the difference between its book value and the actual purchase
price is included in the current profit and loss.When disposing of a long-term equity investment accounted for by using the equity method use the same basis as
the investee directly disposes of related assets or liabilities and make accounting treatment to the portion that was
originally included in other comprehensive income according to the corresponding proportion. The owner's equity
recognized as a result of changes in other owner's equity of the investee other than net profit or loss other
comprehensive income and profit distribution is carried forward to the current profit and loss on a pro rata basis
except for other comprehensive income arising from the remeasurement of the net liabilities or net assets changes
of the defined benefit plan by the investee.If the joint control or significant influence on the investee is lost due to the disposal of part of the equity
investment etc. the remaining equity after disposal shall be calculated in accordance with the financial instrument
recognition and measurement standards and the difference between the fair value and the book value on the day of
losing the joint control or significant influence is included in the current profit and loss. Other comprehensive
income of the original equity investment recognized due to using the equity method for accounting shall adopt the
accounting treatment on the same basis as the investee directly disposes of related assets or liabilities when
terminating the adoption of equity method for accounting. The owner's equity recognized as a result of changes in
the owner's equity other than net profit or loss other comprehensive income and profit distribution of the investee
is transferred to current profit and loss when terminating the adoption of equity method for accounting.The control over the investee is lost due to the disposal of part of the equity investment and the capital increase in
the subsidiary by other investors resulting in a decline in the shareholding ratio of the Company in preparing
separate financial statements the remaining equity interest which can apply common control or impose significant
influence over the investee shall be accounted for using equity method. Such remaining equity interest shall be
treated as accounting for using equity method since it is obtained and adjustment was made accordingly. For
remaining equity interest which cannot apply common control or impose significant influence over the investeel it
shall be accounted for using the recognition and measurement standard of financial instruments. The difference
between its fair value and carrying amount as at the date of losing control shall be included in profit or loss for the
current period.The disposed equity is obtained through business combination due to additional investment and other reasons
when preparing individual financial statements if the remaining equity after disposal uses cost method or equity
method for accounting the equity investments held before the acquisition date shall be carried forward in
proportion to other comprehensive income and other owner's equity recognized through equity method accounting;
For the remaining equity interest after disposal accounted for using the recognition and measurement standard of
financial instruments other comprehensive income and other owners’ equity shall be fully transferred.
(15) Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation the rented buildings. (Including buildings for lease after self-construction or development activities
completed and buildings under construction or development for lease in the future)
Investment real estate of the Company are measured at cost model. The Investment real estate- rental buildings
measured at cost model has the same depreciation policy as fixed assets the land use right for lease is exercise the
amortization policy as intangible assets.
(16) Fixed assets
1. Recognition conditions for the fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods providing services
lease or for operation & management and have more than one fiscal year of service life. Fixed assets are
recognized when the following conditions are simultaneously met:
(1) The economic benefits with the fixed assets concerned are likely to flow into the enterprise; and
(2) cost of the fixed assets can be measured reliably.
2. Depreciation method
From the next month since reaching the intended use state depreciation on fixed assets shall be accounted by using
the method of average life length except the steam turbine generating unit that accounted by withdrawal the
working volume method.Life expectancy expected net impairment value and annual depreciation rate of all assets are as follows:
Category
Depreciation
method
Depreciation life (Year) Residuals rate(%) Annual depreciation rate (%)
Houses and
buildings
Straight-line 20-year 10 4.5
Equipment (fuel
machinery sets
excluded)
Straight-line 15-20-year 10 4.5-6
Equipment-fuel
machinery
sets(Note)
The work
quantity
method
10 The work quantity method
Transportation
tools
Straight-line
5-year 10 18
Other equipment Straight-line 5-year 10 18
Estimated salvage value refers to the amount of value retrieved after deducting of predicted disposal expense when
the expected using life of a fixed asset has expired and in the expected state of termination.Note: gas turbine generator set is provided with depreciation under workload method namely to determine the
depreciation amount per hour of gas turbine generator set based on equipment value predicted net remaining value
and predicted generation hours. Details are set out as follows:
Name of the Company Fixed assets Depreciation amount (RMB/Hour)
The Company
Generating unit 1#
538.33
Generating unit 3#
601.20
New Power Generating unit 10#
520.61
Zhongshan Electric Power
Generating unit 1#
4246.00
Generating unit 3#
4160.83
3. Recognition basis and measurement method of fixed assets under finance lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. Title may or may not eventually be transferred. The depreciation policy for
fixed asset held under finance lease is consistent with that for its owned fixed asset. When a leased asset can be
reasonably determined that its ownership will be transferred at the end of the lease term it is depreciated over the
period of expected use; otherwise the leased asset is depreciated over the shorter period of the lease term and the
period of expected use.
4. Other explanation
Concerning the follow-up expenses related to fixed assets if the relevant economy benefit of fixed assets probably
in-flow into the Company and can be measured reliably reckoned into cost of fixed assets and terminated the
recognition of the book value of the parts that been replaced. Others follow-up expenses should reckoned into
current gains/losses while occurred.Terminated the recognition of fixed assets that in the status of disposal or pass through the predicted usage or
without any economy benefits arising from disposal. Income from treatment of fixed asset disposing transferring
discarding or damage the balance after deducting of book value and relative taxes is recorded into current income
account.The Company re-reviews useful life expected net residual value and depreciation method of fixed assets at least at
each year end. Any change thereof would be recorded as change of accounting estimates.
(17) Construction in process
Cost of construction in process is determined at practical construction expenditures including all expenses during
the construction capitalized loan expenses before the construction reaches useful status and other relative
expenses. It is transferred to fixed asset as soon as the construction reaches the useful status.
(18) Borrowing expenses
Borrowing expenses include interest amortization of discounts or premiums related to borrowings ancillary costs
incurred in connection with the arrangement of borrowings and exchange differences arising from foreign
currency borrowings. Borrowing expenses that can be directly attributed for purchasing or construction of assets
that are complying with capitalizing conditions start to be capitalized when the payment of asset and borrowing
expenses have already occurred and the purchasing or production activities in purpose of make the asset usable
have started; Capitalizing will be terminated as soon as the asset that complying with capitalizing conditions has
reached its usable or saleable status. The other borrowing expenses are recognized as expenses when occurred.Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of
the bank saving interest of unused borrowed fund or provisional investment gains; Capitalization amounts of
common borrowings are decided by the weighted average of exceeding part of accumulated asset expenses over
the special borrowing assets multiply the capitalizing rate of common borrowings adopted. Capitalization rates are
decided by the weighted average of common borrowings.
During the capitalization period exchange differences on a specific purpose borrowing denominated in foreign
currency shall be capitalized. Exchange differences related to general-purpose borrowings denominated in foreign
currency shall be included in profit or loss for the current period.Qualifying assets are assets (fixed assets investment property inventories etc.) that necessarily take a substantial
period of time for acquisition construction or production to get ready for their intended use or sale.
Capitalization of borrowing costs shall be suspended during periods in which the acquisition construction or
production of a qualifying asset is interrupted abnormally when the interruption is for a continuous period of more
than 3 months until the acquisition construction or production of the qualifying asset is resumed.
(19) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall be
recognized as cost of the intangible asset only if it is probable that economic benefits associated with the asset will
flow to the Company and the cost of the asset can be measured reliably. Other expenditures on an item asset shall
be charged to profit or loss when incurred.Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants)
related land use right and the buildings shall be separately accounted for as an intangible asset and fixed asset. For
buildings and structures purchased the purchase consideration shall be allocated among the land use right and the
buildings on a reasonable basis. In case there is difficulty in making a reasonable allocation the consideration shall
be recognized in full as fixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any
accumulated impairment loss provision and amortized using the straight-line method over its useful life when the
asset is available for use. Intangible assets with indefinite life are not amortized.The Group shall review the useful life of intangible asset with a finite useful life and the amortization method
applied at least at each financial year-end. A change in the useful life or amortization method used shall be
accounted for as a change in accounting estimate. For an intangible asset with an indefinite useful life the Group
shall review the useful life of the asset in each accounting period. If there is evidence indicating that the useful life
of that intangible asset is finite the Company shall estimate the useful life of that asset and apply the accounting
policies accordingly.
(20) Impairment of long-term assets
The Group will judge if there is any indication of impairment as at the balance sheet date in respect of non-current
non-financial assets such as fixed assets construction in process intangible assets with an infinite useful life
investment properties measured at cost and long-term equity investments in subsidiaries joint ventures and
associates. If there is any evidence indicating that an asset may be impaired recoverable amount shall be estimated
for impairment test. Goodwill intangible assets with an indefinite useful life and intangible assets beyond working
conditions will be tested for impairment annually regardless of whether there is any indication of impairment.If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount the
impairment provision will be made according to the difference and recognized as an impairment loss. The
recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the
future cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an
arm’s length transaction. If there is no sale agreement but the asset is traded in an active market fair value shall be
determined based on the bid price. If there is neither sale agreement nor active market for an asset fair value shall
be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset
including legal fee relevant tax and surcharges transportation fee and direct expenses incurred to prepare the asset
for its intended sale. The present value of the future cash flows expected to be derived from the asset over the
course of continued use and final disposal is determined as the amount discounted using an appropriately selected
discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it is not
possible to estimate the recoverable amount of the individual asset the Group shall determine the recoverable
amount of the asset group to which the asset belongs. The asset group is the smallest group of assets capable of
generating cash flows independently.
For the purpose of impairment testing the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups pro rata on the basis of the carrying amount of each asset.Once an impairment loss of these assets is recognized it is not allowed to be reversed even if the value can be
recovered in subsequent period.
(21) Long-term unamortized expenses
Long-term unamortized expenses are those already occurred and amortizable to the current term and successive
terms for over one year. Long-term amortizable expenses are amortized by straight-line method to the benefit
period.
(22)Contract liabilities
1. Confirmation method of contract liabilities
The Company's obligation to transfer goods or provide services to customers for consideration received or
receivable from customers is listed as contract liabilities.
(23) Staff remuneration
Staff remuneration includes short term staff remuneration post office benefit dismissal benefit and other long term
staff benefits among which:
Short term staff remuneration mainly consists of salary bonus allowance and subsidy staff benefits medical
insurance maternity insurance work related injury insurance housing funds labor unit fee and education fee
non-monetary benefits etc. short term staff remuneration actually happened during the accounting period in which
staff provides services to the Company is recognized as liability and shall be included in current gains and losses
or relevant asset cost. Non-monetary benefits are measured at fair value.Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdraw plan
mainly includes basic pension insurance unemployment insurance and annuity and the contribution payable is
included in relevant asset cost or current gains and losses when occurs.When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring whichever is
earlier. However if the compensation for termination of employment is not expected to be fully paid within 12
months from the reporting period it shall be accounted for other long-term staff remuneration.The early retirement plan shall be accounted for in accordance with the accounting principles for compensation for
termination of employment. The salaries or wages and the social contributions to be paid for the employees who
retire before schedule from the date on which the employees stop rendering services to the scheduled retirement
date shall be recognized (as compensation for termination of employment) in the current profit or loss by the
Group if the recognition principles for provisions are satisfied.
For other long-term employee benefits provided by the Company to its employees if satisfy with the established
withdraw plan then the benefits are accounted for under the established withdraw plan otherwise accounted for
under defined benefit scheme.
(24) Accrual liability
1. Recognition criteria
The obligations with contingencies concerned as litigation debt guarantee and contract in loss are recognized as
accrual liability when the following conditions are met simultaneously:
(1) the liability is the current liability that undertaken by the Company;
(2) the liability has the probability of result in financial benefit outflow; and
(3) the responsibility can be measured reliably for its value.
Measurement on vary accrual liability
At balance sheet day with reference to the risks uncertainty and periodic value of currency that connected to the
contingent issues the predicted liabilities are measured according to the best estimation on the payment to fulfill
the current responsibility.If the expenses for clearing of predictive liability is fully or partially compensated by a third party and the
compensated amount can be definitely received it is recognized separated as asset. The compensated amount shall
not be greater than the book value of the predictive liability.
(1) Contact in loss
Contact in loss is identified when the inevitable cost for performance of the contractual obligation exceeds the
inflow of expected economic benefits. When a contract in loss is identified and the obligations there under are
qualified by the aforesaid recognition criterion for contingent liability the difference of estimated loss under
contract over the recognized impairment loss (if any) of the subject matter of the contract is recognized as
contingent liability.
(2) Restructuring obligations
For detailed official and publicly announced restructuring plan the direct expenses attributable to the restructuring
are recognized as contingent liabilities provided that the aforesaid recognition criterion for contingent liability is
met. For restructuring obligations arising from disposal of part business the Company will recognize the
obligations relating to restructuring only when it undertakes to dispose part business (namely entering into
finalized disposal agreement).
(25) Revenue
The Company’s revenue is recognized after it has fulfilled the performance obligations in the contract that is
when the customer obtains control of the relevant assets (goods or services). Whether the performance obligation is
fulfilled within a certain period of time or at a certain time point depends on the terms of the contract and relevant
legal provisions. If the Company meets one of the following conditions it belongs to the performance obligation
within a certain period of time:
1. The customer obtains and consumes the economic benefits brought by the Company's performance when the
Company fulfills its performance.
2. The client can control the assets under construction during the performance of the Company.
3. The assets produced by the Company during the performance have irreplaceable uses and the Company has the
right to collect payment for the cumulative performance that has been completed so far during the entire contract
period.If the performance obligation is performed within a certain period of time the Company recognizes revenue
according to the performance progress. Otherwise the Company recognizes revenue at a certain point when the
customer obtains control of the relevant assets. The performance progress is measured by the Company's
expenditure or investment in fulfilling the performance obligations and the progress is determined based on the
proportion of the cumulative cost incurred as of the balance sheet date of each contract to the estimated total cost.When determining the contract transaction price if there is a variable consideration the Company shall determine
the best estimate of the variable consideration based on the expected value or the most likely amount and the
amount that does not exceed the cumulatively recognized revenue when the relevant uncertainty is eliminated and
that is very likely not to have significant reversal is included in the transaction price. If there is a major financing
component in the contract the Company will adjust the transaction price according to the financing component in
the contract; if the interval between the transfer of control and the payment by the customer is less than one year
the Company will not consider the financing component.
Detail recognition according to specific revenue:
1. Power marketing revenue
The Group generates electricity by thermal power and realizes sales through incorporation into Guangdong power
grid. As for power sales the Group realizes revenue when it produces electricity and obtains the grid power
statistics table confirmed by the power bureau.
2. Specific criteria for revenue recognition of the Environment Protection Company
At the end of each month the company confirms the monthly income based on the initially confirmed sludge
transportation volume and sludge treatment price and revises the revenue confirmed last month after checking
with the relevant units in the next month and the correction proportion is relatively small.
3. Specific criteria for revenue recognition of the Engineering Company
(1)Debugging projects: When the debugging is successful obtain the confirmation of successful debugging and
confirm the income according to the contract;
(2) Operation and maintenance and management projects: Temporarily estimate and confirm the income every
month according to the attendance time and labor service price of attendance staff and adjust the temporarily
estimated income after obtaining the monthly settlement statement sealed and signed by suppliers the confirmation
of progress and the attendance form.
(26)Contract costs
Contract costs are divided into contract performance costs and contract acquisition costs.
The cost incurred by the Company to perform the contract is recognized as an asset as the contract performance
cost when meeting the following conditions:
1. The cost is directly related to a current or expected contract.
2. The cost increases the Company's future resources for fulfilling contract performance obligations.
3. The cost is expected to be recovered.
The incremental cost incurred by the Company for obtaining the contract is expected to be recovered and it is
recognized as an asset as the cost of obtaining the contract.
Assets related to contract costs are amortized on the same basis as the revenue of goods or services related to the
asset; however if the amortization period of contract acquisition costs does not exceed one year the Company will
include them in the current profits and losses when they occur.If the book value of assets related to contract costs is higher than the difference between the following two items
the Company will make provisions for impairment for the excess part and recognize it as an asset impairment loss:
1. The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;
2. Costs estimated to incur for the transfer of the related goods or services.
If the aforementioned asset impairment provision is subsequently reversed the book value of the asset after
reversal shall not exceed the book value of the asset on the date of reversal under the assumption that no
impairment provision is made.
(27) Government subsidy
Government subsidy refers to the monetary asset and non-monetary asset that the Company obtains from the
government free of charge excluding the capital that the government invests as an investor and enjoys the
corresponding owner's equity. Government subsidies are divided into the asset-related government subsidy and the
income-related government subsidy.If the government subsidy is a monetary asset it shall be measured according to the received or receivable amount.If the government subsidy is a non-monetary asset it shall be measured at fair value. If the fair value cannot be
obtained reliably it shall be measured according to the nominal amount. Government subsidy measured by
nominal amount is directly included in the current profits and losses.The government subsidy related to the assets is recognized as deferred income and is recorded into the current
profits and losses or the book value of the relevant assets in a reasonable and systematic manner within the useful
life of the relevant assets. Revenue-related government grants are used to compensate for the related costs or losses
incurred during the subsequent period and are recognized as deferred income and are recognized in the current
profit or loss or related expenses during the period of recognition of the relevant cost expense or loss; Incurred
costs or losses incurred directly included in the current profits and losses or offset the relevant costs.
For the government subsidy containing both asset-related parts and income-related parts at the same time
distinguish the different parts and make the accounting treatment classify the parts which are difficult to be
distinguished as the income-related government subsidy.The government subsidy related to the Company’s daily activities is included in other incomes or offsets related
costs in accordance with the essence of economic business; while the government subsidy unrelated to the
Company’s daily activities is included in non-operating income and expenditure.
When the recognized government subsidy needs to be refunded or has balance of related deferred income offset
the book balance of related deferred income and include the excess parts in the current profits and losses or (the
asset-related government subsidy for offsetting the book value of underlying assets in initial recognition) adjust the
book value of assets; directly include these belong to other situations in the current profits and losses.
(28) Deferred income tax asset/ deferred income tax liability
1. Current income tax
On balance sheet date current income tax liability (or asset) formed during and before current period will be
measured as amount of income tax payable (or repayable) as specified by tax law. The taxable income for
calculating the current income tax expenses is based on the pre-tax accounting profit of the current year after
adjustment according to relevant regulations of taxation.
2. Deferred income tax asset & deferred income tax liability
For balance of book value of some asset/liability item and its tax base or temporary difference derived from
balance of book value and tax base of the item which is not confirmed as asset or liability but tax base can be
fixed as specified by tax law deferred income tax asset & deferred income tax liability will be confirmed in
balance sheet liability approach.
Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initial
recognition of goodwill; and the initial recognition of an asset or liability in a transaction which is neither a
business combination nor affects accounting profit or taxable profit (or deductible loss) at the time of the
transaction. In addition the Group recognizes the corresponding deferred income tax liability for taxable
temporary differences associated with investments in subsidiaries associates and joint ventures except when both
of the following conditions are satisfied: the Company able to control the timing of the reversal of the temporary
difference; and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognition
of an asset or liability in a transaction which is neither a business combination nor affects accounting profit or
taxable profit (or deductible loss) at the time of the transaction. In addition the Group recognizes the
corresponding deferred income tax asset for deductible temporary differences associated with investments in
subsidiaries associates and joint ventures to the extent that it is probable that taxable profits will be available
against which the deductible temporary differences can be utilized except when both of the following conditions
are satisfied: it is not probable that the temporary difference will reverse in the foreseeable future; and it is not
probable that taxable profits will be available in the future against which the temporary difference can be utilized.
For deductible loss and taxation decrease which can be carried over to following fiscal year relevant deferred
income tax asset may be confirmed subject to amount of taxable income which is likely to be acquired to deduct
deductible loss and taxation decrease in the future.On balance sheet day those deferred income tax assets and income tax liabilities according to the tax law
calculation will be on tax rate applicable to retrieving period of assets or clearing of liabilities.On balance sheet day verification will be performed on the book value of differed income tax assets. If it is not
possible to obtain enough taxable income to neutralize the benefit of differed income tax assets then the book
value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible
the reduced amount shall be restored.
3. Income tax expenses
Income tax expense includes current income tax and deferred income tax.
Current deferred income tax and deferred income tax expenses or income shall reckoned into current gains/losses
other that those current income tax and deferred income tax with transactions and events concerned that reckoned
into shareholder’s equity directly while recognized as other comprehensive income; and the book value of the
goodwill adjusted for deferred income tax arising from enterprise combination.4. Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the
assets and settle the liabilities simultaneously current tax assets and current tax liabilities are offset and presented
on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and deferred tax assets
and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable
entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to
realize the assets and liabilities simultaneously in each future period in which significant amounts of deferred tax
assets or liabilities are expected to be reversed deferred tax assets and deferred tax liabilities are offset and
presented on a net basis.
(29) Leasing
Finance lease is to virtually transfer all risks and rewards related to ownership of asset the ownership is may
transfer ultimately or not. Leases other than finance lease are operating leases.
1.Lease business with the Company as the rentee
The rental is reckoned into the relevant assets cost or the current loss/gain in the straight-line method. The initial
direct expenses are reckoned into the current gain/loss or the actual rental into the current loss/gain.
2.Lease business with the Company as the renter
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct
substantive expenses are capitalized and reckoned into the current gain/loss or the actual rental into the current
loss/gain. The initial direct small expenses are reckoned into the current actual gain/loss or the actual rental into
the current loss/gain.
3. Financing lease business with the Group recorded as lessee
On the beginning date of the lease the entry value of leased asset shall be at the lower of the fair value of the
leased asset and the present value of minimum lease payment at the beginning date of the lease. Minimum lease
payment shall be the entry value of long-term accounts payable with difference recognized as unrecognized
financing expenses. In addition initial direct costs attributable to leased items incurred during the process of lease
negotiation and signing of lease agreement shall be included in the value of leased assets. The balance of minimum
lease payment after deducting unrecognized financing expenses shall be accounted for long-term liability and
long-term liability due within one year.Unrecognized financing expenses shall be recognized as financing expenses for the current period using effective
interest method during the leasing period. Contingent rent shall be included in profit or loss for the current period
at the time it incurred.
4.Financing lease business with the Group recorded as lessor
On the beginning date of the lease the entry value of lease receivable shall be the aggregate of minimum lease
receivable and initial direct costs at the beginning date of the lease. The unsecured balance shall be recorded. The
aggregate of minimum lease receivable initial direct costs and unsecured balance and the different between their
present value shall be recognized as unrealized financing income. The balance of lease receivable after deducting
unrecognized financing income shall be accounted for long-term debt and long-term debt due within one year.Unrecognized financing income shall be recognized as financing income for the current period using effective
interest method during the leasing period. Contingent rent shall be included in profit or loss for the current period
(30) Other major accounting policies and estimations
The discontinued operation refers to the component that meets one of following conditions and has been disposed
by the Company or classified as held-for-sale and can be individually distinguished when operating and preparing
the financial statements: 1- the component represents an independent main Business or a major operating area; 2-
the component is a parts that intends to dispose or arrange an independent main business or a major operating area;
3- the component is a subsidiary obtained only for re-sale.
(31) Changes of major accounting policy and accounting estimation
1. Change of major accounting policies
The Accounting Standards for Business Enterprises No. 14 - Revenue was revised by Ministry of Finance in 2017.In accordance with the Revised Standard the cumulative impact of the first implementation of the standard is
adjusted for the amount of retained earnings and other related items in the financial statements at the beginning of
the first implementation period (January 1 2020) and no adjustment is made to the comparable period information.Main influence while exercising the above provision are as:
Content / causes for the changes of
accounting policies
Approval procedures
Note
The Company implemented the Accounting
Standards for Business Enterprises No. 14 -
Revenue revised by Ministry of Finance in
2017 since 1 Jan. 2020
Deliberated and approved by 6th session of 8th BOD
No
significant
influence
2. Change of accounting estimation
No change of accounting estimation occurred in the reporting period
(32)Major accounting judgment and estimation
When using the accounting policies the Company needs to made judgment estimation and assumption for
carrying value of certain items which cannot be measured adequately due to inherent uncertainty of economic
activities. Such judgment estimation and assumption are based on historical experiences of the Group’s
management together with consideration of other relevant factors. These judgments estimations and assumption
would affect the reported amount of income expense asset and liability and disclosure of contingent liabilities on
balance sheet date. However actual results resulting from the uncertainty of these estimates may differ from the
current estimation made by management of the Company which would in turn lead to material adjustments to the
carrying value of assets or liabilities which will be affected in future.The Group conducts regular re-review on the aforesaid judgment estimation and assumption on a continued
operation basis. If the change of accounting estimation only affect current period the affected amount is
recognized in the period when change occurs. If the change affects current and future periods both the affected
amount is recognized in the period when change occurs and future periods.On balance sheet date major aspects in the statement need to judge estimate and consumption by the Company
are as:
1.Fixed assets are provided for depreciation by output method
The Group recognizes depreciation for unit electricity based on values of power generation machine sets projected
power sales volume and projected net remaining value and provides for depreciation according to depreciation of
unit electricity and actual power sales volume. Taking into account the prevailing industry policies technologies
consumption allocation method of power management authorities and past experiences and the Group
management believes that it is adequate for utilization life of such power generation machine sets projected power
sales volume projected net remaining value and provision method for depreciation. If the future actual power sales
volume differs substantially from the projected one the Group would make adjustment to unit electricity
depreciation which would bring affects to the depreciation expenses included in profit and loss for the current and
future periods.
2.Provision for bad debts
The Group use allowance method to state bad debt losses according to the accounting policies of accounts
receivable. Impairment of receivables is based on the assessment of the collectibility of accounts receivable.Identification of impairment of receivables requires management judgments and estimates. The differences
between actual results and the original estimate will affect the book value of accounts receivable as well as the
recognition or reversal of provision for bad debts in the period in which the estimate is changed.
3.Allowance for inventories
Under the accounting policies of inventories and by measuring at the lower of cost and net realizable value the
Group makes allowance for inventories that have costs higher than net realizable value or become obsolete and
slow moving. Write-down of inventories to their net realizable values is based on the salability of the evaluated
inventory and their net realizable values. Identification of inventories requires management to make judgments and
estimates on the basis of obtaining conclusive evidence and considering the purpose of holding inventory and the
events after balance sheet date. The differences between actual results and the original estimate will affect the book
value of inventories as well as the recognition or reversal of provision for inventories in the period in which the
estimate is changed.
4. Impairment provision for long-term assets
The Company makes judgment on each balance sheet date on whether there is indication of impairment in respect
of non-current assets other than financial assets. Intangible assets with indefinite useful life shall also be further
tested for impairment when there is indication of impairment in addition to the annual impairment test. Other
non-current assets other than financial assets would be test for impairment when there is indication showing its
carrying value in not likely to be recovered.Impairment exists when carrying value of asset or assets group is higher than recoverable amount namely the
higher of fair value less disposal cost and present value of expected future cash flow.The calculation of the fair value less costs of disposal is based on available data from binding sales transactions in
an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of the
asset.In assessing value in use significant judgments are exercised over the asset’s production selling price related
operating expenses and discount rate to calculate the present value. All relevant materials which can be obtained
are used for estimation of the recoverable amount including the estimation of the production selling price and
related operating expenses based on reasonable and supportable assumptions.The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the
value in use of the cash-generating units to which the goodwill is allocated. Estimating the value in use requires the
Group to make an estimate of the expected future cash flows from the cash-generating units and also to choose a
suitable discount rate in order to calculate the present value of those cash flows.
5. Depreciation and amortization
Assets such as investment real estate and intangible assets are depreciated and amortized over their useful lives
under straight line method after taking into account residual value. The estimated useful lives of the assets are
regularly reviewed to determine the depreciation and amortization costs charged in each reporting period. The
useful lives of the assets are determined based on historical experience of similar assets and the estimated technical
changes. If there have been significant changes in the factors used to determine the depreciation or amortization
the rate of depreciation or amortization is revised prospectively.
6. Deferred income tax assets
Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will
be available against which the losses can be utilized. Significant management judgment is required to determine
the amount of deferred income tax assets that can be recognized based upon the likely timing and level of future
taxable profits together with future tax planning strategies.
7. Accrual liability
Provision for product quality guarantee estimated onerous contracts and delay delivery penalties shall be
recognized in terms of contract current knowledge and historical experience. If the contingent event has formed a
practical obligation which probably results in outflow of economic benefits from the Group a projected liability
shall be recognized on the basis of the best estimate of the expenditures to settle relevant practical obligation.Recognition and measurement of the accrual liability significantly rely on the management’s judgments
inconsideration of the assessment of relevant risks uncertainties time value of money and other factors related to
the contingent events.In addition the Company would accrual liability for after-sale quality maintenance commitment provided to
customers in respect of goods sold maintained and reconstructed by the Company. Recent maintenance experience
of the Company has been considered when projecting liabilities while the recent maintenance experience may not
reflect the future maintenance. Any increase or decrease of this provision may affect profit or loss for future years.IV. Taxes
(1) Main taxation and rates
Taxation items Taxation basis Tax rate
VAT
Calculate the output tax based on the sales of goods and
taxable service income calculated according to the tax
law after deducting the input tax allowable for deduction
in the current period the difference is the VAT payable.
6% 9% 10%
11% 13%
16%
City maintenance tax
According to the actual payment of VAT and
consumption tax
5% 7%
Education surtax
According to the actual payment of VAT and
consumption tax
3%
Local education surtax
According to the actual payment of VAT and
consumption tax
2%
Enterprise income tax According to the taxable income amount
16.5% 17%
25% 15%
Land-use tax of town
2 Yuan ~ 8Yuan per square meter of the actual occupied are for the industrial
land located in Nanshan District Shenzhen City; 1Yuan per square meter of
the actual occupied are for the industrial land located in Zhongshan City
Land VAT
Tax by the Value-added amount from transferring state-owned land use right
landing construction and its affiliates with four super-rate progressive tax
rate
As for the taxpaying bodies have different enterprise income tax rate explanation as:
Taxpaying body Rate of income tax
The Company 25%
New Power Company 25%
Engineering Company 25%
Shenzhen Server 25%
Environment Protection Company 15%
Zhongshan Electric Power 25%
Taxpaying body Rate of income tax
Singapore Company 17%
Shen Storage 25%
Syndisome 16.5%
(2) Taxes preferential
1. VAT
Ta
x
Name of the
company
Relevant regulation and
policies basis
Approval
institution
Approval
documents
Exemption
range
Period of
validity
V
AT
Environment
Protection
Company
Notice on "contents of
products with
comprehensive utilization
of resources and
value-added tax privilege
of labor service" (CS No.
[2015] 78)
Shenzhen
Provincial
Office SAT
(Qianhai
SAT)
SQSST[2018]
No.: 18302
Resource
comprehen
sive
utilization
of VAT
refund
31 Aug.
2018 to 31
July 2022
2. Income tax
According to the announcement (No. 60 of 2019) of the Ministry of Finance the State Administration of Taxation
the National Development and Reform Commission and the Ministry of Ecological Environment and the
Announcement on Issues Concerning Income Tax Policies for Third-Party Enterprises Engaged in Pollution
Prevention and Control of the Ministry of Finance and the State Administration of Taxation from January 1 2019
to December 31 2021 the corporate income tax will be levied at a reduced rate of 15% on eligible third-party
enterprises engaged in pollution prevention and control. The Company’s subordinate Environment Protection
Company enjoys the above preferential policy and levies corporate income tax at a rate of 15%
深圳南山热电股份有限公司 2020 年半年度报告全文
V. Annotation of the items in consolidate financial statement
(1) Monetary fund
Item Ending Balance Year-end balance of last year
Cash on hand 65138.88 84307.60
Bank savings 467274657.16 731339856.01
Other monetary fund 617564170.77 41785691.23
Total 1084903966.81 773209854.84
Including: total amount saving aboard 6292429.36 6242072.77
Note: among the above mentioned “other monetary fund” the restricted monetary fund including cash deposit of 0
Yuan in total (on 31 Dec. 2019 the restricted monetary fund include cash deposit of 1719853.88 Yuan)
(2) Bill receivable
Item Ending Balance
Year-end balance of last
year
Bank acceptance note 2900000.00 0.00
Commercial Acceptance Notes 0.00 0.00
Total 2900000.00 0.00
(3) Account receivable
1. Age analysis
Account age
Ending Balance Year-end balance of last year
Within one year
132034578.25 178147691.32
1 to 2 years
2 to 3 years
Over 3 years
5769529.84 5769529.84
Subtotal
137804108.09 183917221.16
Less: Bad debt provision
5766640.84 5766640.84
Total
132037467.25 178150580.32
2. According to accrual method for bad debts
Category
Ending Balance
深圳南山热电股份有限公司 2020 年半年度报告全文
Book balance Bad debt provision Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
With single provision for
bad debts
5766640.84 4.18 5766640.84 100.00
With bad debt provision
accrual based on similar
credit risk characteristics
of a portfolio
132037467.25 95.82 132037467.25
Total 137804108.09 100.00 5766640.84 4.18 132037467.25
Category
Year-end balance of last year
Book balance Bad debt provision Book value
Amount Ratio (%) Amount
Accrual
ratio (%)
With single provision for
bad debts
5766640.84 3.14 5766640.84 100.00
With bad debt provision
accrual based on similar
credit risk characteristics of
a portfolio
178150580.32 96.86 178150580.32
Total 183917221.16 100.00 5766640.84 3.14 178150580.32
With single provision for bad debts:
Name
Ending Balance
Book amount Bad debt provision Accrual proportion (%) Causes
Shenzhen
Petrochemical
Products Bonded
Trading Co. Ltd.
3474613.06 3474613.06 100.00 Uncollectible in excepted
Zhongji
Construction
Development Co.
1137145.51 1137145.51 100.00 Uncollectible in excepted
深圳南山热电股份有限公司 2020 年半年度报告全文
Name
Ending Balance
Book amount Bad debt provision Accrual proportion (%) Causes
Ltd.Shenzhen Fuhuade
Power Co. Ltd
800000.00 800000.00 100.00 Uncollectible in excepted
Other 354882.27 354882.27 100.00 Uncollectible in excepted
Total 5766640.84 5766640.84 100.00
Provision for bad debts by portfolio：
Provision by portfolio：
Name
Ending balance
Account receivable
Bad debt provision Accrual proportion (%)
With minor
credit risk
132037467.25 0.00
Recognition standards and specifications on provisions by portfolio:
The account receivable with provision for bad debts by portfolio mainly refers to the amount from
Guangdong Power Grid Co. Ltd. Shenzhen Power Supply Bureau Co. Ltd. and Shenzhen Water
Bureau etc. which have minor credit risk and no provision for bad debts.
3. Bad debt provision accrual collected or switch back
Category
Year-end balance of
last year
Current amount changed
Ending Balance Accrual
Collected or
switch back
Rewrite or
write-off
With single
provision for bad
debts
5766640.84 5766640.84
There is no receivable with significant recovery or reversal amount of bad debt provision in the
current period.
4. Account receivable without actual charge off in the period
5. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to
129063847.54 Yuan takes 93.66 percent of the total account receivable at period-end bad
debt provision accrual correspondingly at period-end amounting as 0 Yuan
6. No accounts receivable terminated recognition due to transfer of financial assets at the end
深圳南山热电股份有限公司 2020 年半年度报告全文
of the period
(4) Account paid in advance
1. Account paid in advance classified according to age
Age
Ending Balance Year-end balance of last year
Book balance Proportion (%) Book balance Proportion (%)
Within 1year 28934955.72 88.09 69896494.56 99.84
1 to 2years 3820156.23 11.63 15600.00 0.02
2 to 3years 32000.00 0.05
Over 3 years 93586.94 0.28 61586.94 0.09
Total 32848698.89 100.00 70005681.50 100.00
2. Top five accounts paid in advance at period-end balance listed by object
Paid in advance to Book balance
Proportion in total book
balance of accounts paid in
advance (%)
Guangdong sales branch of CNOOC Gas
Power Group Co. Ltd.
22631736.13 68.90
Shenzhen Gas Group Co. Ltd. 3820156.23 11.63
Guangzhou Zike Environmental Protection
Technology Co. Ltd.
802500.00 2.44
Xinao Energy Trading Co. Ltd. 351988.63 1.07
Yongcheng Property Insurance Co. Ltd.Shenzhen Branch
161674.43 0.49
Total 27768055.42 84.53
(5) Other account receivable
Item Book balance Year-end balance of last year
Interest receivable
Dividend receivable
Other account receivable 80837116.58 32321826.94
Total 80837116.58 32321826.94
深圳南山热电股份有限公司 2020 年半年度报告全文
1. Other account receivable
(1) Age analysis
Account age
Book balance Year-end balance of last year
Within one year
50107926.26 4589653.32
1 to 2 years
1215311.98 1223336.54
2 to 3 years
2758753.80 3414019.37
Over 3 years
58587544.98 54927238.15
Subtotal
112669537.02 64154247.38
Less: Bad debt provision
31832420.44 31832420.44
Total
80837116.58 32321826.94
(2) By category
Category
Book balance
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion
(%)
With single provision
for bad debts
32525936.22 28.87 31832420.44 97.87 693515.78
With bad debt
provision accrual based
on similar credit risk
characteristics of a
portfolio
80143600.80 71.13 80143600.80
Total 112669537.02 100.00 31832420.44 28.25 80837116.58
Category
Year-end balance of last year
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
With single provision
for bad debts
32525936.22 50.70
31832420.
44
97.87 693515.78
With bad debt provision
31628311.16 49.30 31628311.16
深圳南山热电股份有限公司 2020 年半年度报告全文
Category
Year-end balance of last year
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
accrual based on similar
credit risk
characteristics of a
portfolio
Total 64154247.38 100.00
31832420.
44
49.62 32321826.94
With single provision for bad debts:
Name
Book balance
Book balance Bad debt provision Accrual ratio （%） Accrual reasons
Huiyang Kangtai
Industrial Company
14311626.70 14311626.70 100.00 Un-collectable in excepted
Shandong Jinan
Generation Equipment
Plant
3560000.00 3560000.00 100.00 Un-collectable in excepted
Individual income tax 2470039.76 2470039.76 100.00 Un-collectable in excepted
Dormitory amount
receivable
2083698.16 1736004.16 83.31 Some un-collectable in excepted
Personal receivables 7498997.87 7498997.87 100.00 Un-collectable in excepted
Deposit receivable 1658796.73 1312974.95 79.15 Some un-collectable in excepted
Other 942777.00 942777.00 100.00 Un-collectable in excepted
Total 32525936.22 31832420.44 97.87
Provision for bad debts by portfolio：
Provision by portfolio：
Name
Ending balance
Other account receivable Bad debt provision Accrual proportion (%)
With minor credit risk 80143600.80
Recognition standards and specifications on provisions by portfolio:
The Company believes that the credit risk of other account receivable with no impairment in the
深圳南山热电股份有限公司 2020 年半年度报告全文
single assessment is relatively low no provision for bad debts unless there is an evidence that a
certain other account receivable is at greater credit risk.
(3) Accrual of bad debt provision
Bad debt provision
Phases I Phases II Phases III
Total
Expected credit
losses over next 12
months
Expected credit
losses for the entire
duration (without
credit impairment
occurred)
Expected credit
losses for the
entire duration
(with credit
impairment
occurred)
Balance at last year-end 31832420.44 31832420.44
Book balance of other account
receivable at year-begin
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual
Current switch back
Rewrite in the period
Write-off in the period
Other changes
Book balance 31832420.44 31832420.44
(4) Bad debt provision accrual collected or switch-back in the period
Category Year-end balance
of last year
Current amount changed
Book balance Accrual
Collected or
switch back
Rewrite or
write-off
Bad debt
provision for
other receivables
31832420.44 31832420.44
(5) No other accounts receivable that had actually written off in the period
(6) By nature
深圳南山热电股份有限公司 2020 年半年度报告全文
Nature Ending book balance Book balance at last year-end
Dormitory receivables
2083698.16 2083698.16
Deposit receivable
8114769.72 8114769.72
Personal receivables
10625884.03 10625884.03
Co management account
13243635.56 13114012.69
Accounts receivable of
Huidong Server
8432761.42 9060361.44
Receivables from equity transfer 44990000.00 -
Other
25178788.13 21155521.34
Total
112669537.02 64154247.38
(7) Top five other account receivables at period-end balance listed by arrears party
Name of the company Nature Ending balance Age
Proportion in
total period-end
balance of
other account
receivable (%)
Period-end
balance of bad
debt provision
Shenzhen Gas Group Co.Ltd.
Equity
transfer
44990000.00 Within 1
years
39.93
Huidong Server Harbor
Comprehensive
Development Co. Ltd.
Intercourse
fund
21676396.98 Over 3
years
19.24
Huiyang County Kangtai
Industrial Company
Other 14311626.70 Over 3
years
12.70 14311626.70
China Machinery
Engineering Corporation
Guarantee
money
4906822.44 Within 3
years
4.36
Shandong Jinan Power
Equipment Factory
Other 3560000.00 Over 3
years
3.16 3560000.00
89444846.12 79.39 17871626.70
(8) No receivables involving government subsidies at the end of the period
(9) No other receivables terminated recognition due to transfer of financial assets
深圳南山热电股份有限公司 2020 年半年度报告全文
(6) Inventory
1. Classification
Item
Ending Balance Year-end balance of last year
Book balance
Inventory
falling price
reserves
Book value Book balance
Inventory
falling price
reserves
Book value
Raw
material
s
150562248.7
6
42008350.5
4
108553898.2
2
171828426.1
9
47141982.5
8
124686443.6
1
Note: After the sale of the equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co. Ltd. this year Shen
Nan Dian (Dongguan) Weimei Electric Power Co. Ltd. will no longer be included in the scope of consolidation
from April 30 2020 and the original assets and liabilities have been transferred out.
2. Inventory falling price reserves
Item
Year-end balance
of last year
Current increased Current decreased Ending Balance
Accrual Other
Switch-back
or write-off
Changes in
scope of
consolidation
Raw
materials
47141982.58 5133632.04 42008350.54
3. Accrual basis for the depreciation provision of inventory and reasons of switch-back or
write-off in the year
Item Accrual basis
Reasons of
switch-back
Reasons of write-off
Raw materials Cost higher the net realizable value Not applicable Spare parts on sale
(7) Other current assets
Item Ending Balance Opening Balance
VAT input tax deductible 341415281.38 349953491.34
Enterprise income tax paid in advance 6583089.98 6583089.98
Financial products
139674162.93 86000000.00
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Ending Balance Opening Balance
Accrual interest of time deposit
4057800.00 2670150.01
Other 30000.00 30000.00
Total 491760334.29 445236731.33
深圳南山热电股份有限公司 2020 年半年度报告全文
(8) Long-term equity investment
The invested entity
Year-end
balance of last
year
Changes +-
Ending
Balance
Period-end
balance of
depreciation
reserves
Additional
investment
Disinvestment
Investment
gains/losses
recognized by
equity method
Other
comprehensive
income
adjustment
Other
changes
in
equity
Declaration
of cash
dividends
or profits
Provision
for
impairment
Other
1. Joint venture
Huidong Server
Harbor
Comprehensive
Development
Company (“HuidongServer” for short)
14619203.03 -243622.43 14375580.60
Total 14619203.03 -243622.43 14375580.60
深圳南山热电股份有限公司 2020 年半年度报告全文
(9) Other equity instrument investment
1. Other equity instrument investment
Item Book balance
CPI Jiangxi Nuclear Power Company
60615000.00
Shenzhen Petrochemical Oil Bonded Trade Co. Ltd. -
investment cost
2500000.00
Shenzhen Petrochemical Oil Bonded Trade Co. Ltd. -
change in fair value
-2500000.00
Total 60615000.00
2. Non trading equity instrument investment
Item
Dividend
income
recogniz
ed in the
current
period
Accumulat
ed gain
Accumulat
ed loss
Retained
earnings
transferred
from other
comprehensi
ve income
Designated as the
investment measured at fair
value and whose changes
reckoned into other
comprehensive income
(explain reasons)
Reasons of
retained
earnings
transferred
from other
comprehensi
ve income
Jiangxi
Nuclear
Power Co.Ltd.intents to holding for a
long-term
Shenzhen
Petrochemi
cal Oil
Bonded
Trade Co.Ltd.
-2500000.
00
intents to holding for a
long-term
Total
-2500000.
00
(10) Investment real estate
1. Investment real estate measured at cost
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
House and building Land use
right
Construction in
progress
Total
1. Original book value
(1) Year-end balance of last year 9708014.96 9708014.96
(2) Current increased
(3) Current decreased
(4) Ending Balance 9708014.96 9708014.96
2. Accumulated depreciation and
accumulated amortization
-
(1) Year-end balance of last year 7306687.96 7306687.96
(2) Current increased 98068.80 98068.80
—Accrual or amortization 98068.80 98068.80
(3) Current decreased - -
(4) Book balance 7404756.76 7404756.76
3. Depreciation provision
(1) Year-end balance of last year
(2) Current increased
(3) Current decreased
(4) Book balance
4. Book value
(1) Period-end book value 2303258.20 2303258.20
(2) Year-begin book value 2401327.00 2401327.00
(11) Fixed assets
1. Fixed assets and disposal of fixed assets
Item Ending Balance Year-end balance of last year
Fixed assets
954992268.00 1381675872.68
Disposal of fixed assets
Total 954992268.00 1381675872.68
深圳南山热电股份有限公司 2020 年半年度报告全文
2. Fixed assets
Item
House and
buildings
Machinery
equipment
Transportation
tools
Other
equipment
Total
I. Original book value
1. Opening balance
501321101.48 4079001987.60 16336684.19 55807562.91 4652467336.18
2. Increased in the
year
3270619.85
71238.94
873334.63
4215193.42
(1) Purchase
823506.59
167066.26
990572.85
(2) Construction in
progress transfer-in
2447113.26
71238.94
706268.37
3224620.57
(3) Increase in
business combination
3. Decreased in the
year
75311278.51
912852652.58
1677249.73
1101001.76
990942182.58
(1) Disposal or
scrapping
0.00 11100.00 11100.00
(2) Reduction of
consolidation scope
changes
75311278.51
912852652.58
1677249.73 1089901.76 990931082.58
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
House and
buildings
Machinery
equipment
Transportation
tools
Other
equipment
Total
4. Ending Balance
426009822.97 3169419954.87 14730673.40 55579895.78 3665740347.02
II. Accumulated
depreciation
1. Opening balance
308704855.95 2768225963.03 9246358.34 43480376.06 3129657553.38
2. Increased in the
year
5651134.50 18473218.63 726108.03 954942.33 25805403.49
(1) Accrual
5651134.50 18473218.63 726108.03 954942.33 25805403.49
3. Decreased in the
year
44544371.88 505772982.44 1268277.91 780774.36 552366406.59
(1) Disposal or
scrapping
9990.00 9990.00
(2) Reduction of
consolidation scope
changes
44544371.88
505772982.44
1268277.91 770784.36 552356416.59
4. Book balance
269811618.57 2280926199.22 8704188.46 43654544.03 2603096550.28
III. Impairment
provision
1. Opening balance
14860025.13 126273884.99 141133910.12
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
House and
buildings
Machinery
equipment
Transportation
tools
Other
equipment
Total
2. Increased in the
year
(1) Accrual
3. Decreased in the
year
5059785.83
28422595.55
33482381.38
(1) Disposal or
scrapping
(2) Reduction of
consolidation scope
changes
5059785.83
28422595.55
33482381.38
4. Book balance
9800239.30 97851289.44 107651528.74
IV. Book value
(1) Closing book
value
146397965.10 790642466.21 6026484.94 11925351.75 954992268.00
(2) Opening book
value
177756220.40 1184502139.58 7090325.85 12327186.85 1381675872.68
深圳南山热电股份有限公司 2020 年半年度报告全文
3. Idle fixed assets temporary
Item
Original book
value
Accumulated
depreciation
Impairment
provision
Book value Note
Housing &
buildings
127893412.10 98010753.95 13948439.04 15934219.11
Machinery
equipment
523528339.27 452630912.68 32087951.59 38809475.00
Transportation
equipment
256300.00 230670.00 25630.00
Total 651678051.37 550872336.63 46036390.63 54769324.11
4. No fixed assets acquired by financing lease
5. No fixed assets acquired by operating lease
6. Fixed assets without property rights certificate
Item Book value
Reasons for failing to complete the
property rights certificate
Booster station 3962705.44 Procedures uncompleted
Steam turbine workshop 1437359.56 Procedures uncompleted
Chemical water tower 2363171.86 Procedures uncompleted
Treatment shop for heavy oil 464359.97 Procedures uncompleted
Start-up boiler house 104559.07 Procedures uncompleted
Fire pump room 242318.01 Procedures uncompleted
Circulating water pump house 1520701.82 Procedures uncompleted
Comprehensive building 2589240.59 Procedures uncompleted
Production and inspection
building
4396371.57 Procedures uncompleted
Administrative building 4520121.49 Procedures uncompleted
Mail room of the main entrance 183112.49 Procedures uncompleted
Chemical water treatment
workshop
232960.00 Procedures uncompleted
深圳南山热电股份有限公司 2020 年半年度报告全文
Cooling tower
673259.25 Procedures uncompleted
Comprehensive building canteen 276091.29 Procedures uncompleted
Comprehensive building 443246.19 Procedures uncompleted
Total
23409578.60
(12) Construction in progress
1. Construction in progress and Engineering materials
Item Ending Balance Year-end balance of last year
Construction in progress 60831928.29 66474630.23
Engineering materials
Total 60831928.29 66474630.23
2. Construction in progress
Item
Ending Balance Year-end balance of last year
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Cogeneratio
n
57946875.6
3
57946875.6
3
63151182.6
4
63151182.6
4
Oil to Gas
Works
13230574.5
3
13230574.5
3
32871600.2
6
32871600.2
6
Technical
innovation
2217378.76 2217378.76 3061557.07 3061557.07
Other
667673.90 667673.90 261890.52 261890.52
Total
74062502.8
2
13230574.5
3
60831928.2
9
99346230.4
9
32871600.2
6
66474630.2
3
深圳南山热电股份有限公司 2020 年半年度报告全文
3. Changes of significant projects in construction in the year
Item Budget
Opening
balance
Increase
of this
period
Transferred
fixed assets
in this
period
Reduction
of
consolidati
on scope
changes
Other
decrease in
the period
Closing
balance
Proportion
of
accumulat
ive project
investmen
t in budget
(%)
Project
progress
(%)
Accumulati
ve amount
of
capitalizatio
n of interest
Including:
capitalizati
on of
interest
Rate of
interest
capitalizat
ion (%)
Capital
sources
Cogenerat
ion
60000000.
00
63151182.
64
45871.71
5250178
.72
57946875
.63
96.58
6476185
.46
Self-rais
ed and
borrowi
ng
Oil to Gas
Works
74400000.
00
32871600.
26
19641025
.73
13230574
.53
63.76 63.76
Self-rais
ed
Technical
innovatio
n
3061557.0
7
1066319
.79
1910498
.10
2217378.
76
Not
applicable
Not
applica
ble
Self-rais
ed
Other 261890.52
1719905
.85
1314122
.47
667673.90
Self-rais
ed
Total
13440000
0.00
99346230.
49
2832097
.35
3224620
.57
5250178
.72
19641025
.73
74062502
.82
6476185
.46
深圳南山热电股份有限公司 2020 年半年度报告全文
4. No accrual of impairment provision for Construction in progress in the period
深圳南山热电股份有限公司 2020 年半年度报告全文
(13) Intangible assets
1. Intangible assets
Item Land use right Software Total
I. Original book value
1. Opening balance
91355995.46 3577588.80
94933584.26
2. Increased in the year
-
(1) Purchase
-
-
3. Decreased in the year
30542000.70
-
30542000.70
(1) Reduction of
consolidation scope
changes
30542000.70
-
30542000.70
4. Ending Balance
60813994.76
3577588.80
64391583.56
II. Accumulated
depreciation
1. Opening balance
48080331.33 3251086.49
51331417.82
2. Increased in the year 388916.55 97067.10 485983.65
(1) Accrual
388916.55 97067.10 485983.65
3. Decreased in the year 8759936.73 - 8759936.73
(1) Reduction of
consolidation scope
changes
8759936.73
-
8759936.73
4. Book balance
39709311.15 3348153.59 43057464.74
III. Impairment
provision
1. Opening balance
- - -
2. Increased in the year
(1) Accrual
- - -
3. Decreased in the year
(1) Disposal
- - -
4. Book balance
- - -
深圳南山热电股份有限公司 2020 年半年度报告全文
IV. Book value
(1) Closing book value
21104683.61 229435.21 21334118.82
(2) Opening book value
43275664.13 326502.31 43602166.44
2. Land use rights without property rights certificate
Item Book value
Reasons for failing to
complete the property rights
certificate
Land use right of the wharf and pipe
gallery
530733.25 Property rights certificate is
undergoing
(14) Long-term deferred expenses
Item Year-end balance
of last year
Current increased
amount
Amortized in the
Period
Other decrease
Book balance
Exhibition hall
decoration
amount
1174171.16 125971.38 1048199.78
(15) Deferred income tax assets and deferred income tax liabilities
1. Deferred income tax assets without offsetting
Item
Ending Balance Year-end balance of last year
Deductible
temporary difference
Deferred income
tax assets
Deductible
temporary
difference
Deferred income
tax assets
Bad debt provision for
account receivable 5628573.77 1400153.44
5628573.77 1400153.44
Bad debt provision for
other receivable
723585.00 180896.25
723585.00 180896.25
Changes in fair value of
other equity instrument
investments 2500000.00 625000.00
2500000.00
625000.00
Other
Total 8852158.77 2206049.69 8852158.77 2206049.69
(16) Other non-current assets
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
Ending Balance Year-end balance of last year
Book balance
Depreciation
reserve
Book value Book balance
Depreciation
reserve
Book value
Project of
LNG
22882181.78 22882181.78
Total 22882181.78 22882181.78
(17) Short-term loans
1. Classification
Item Ending Balance
Year-end balance
of last year
Guarantee loans 300000000.00
Credit loans 754233285.00 580000000.00
Accrued interest 1246849.11 1075378.48
Total 755480134.11 881075378.48
(18) Account payable
1. Account payable
Item Ending Balance
Year-end balance of
last year
Materials 2854019.71 12180417.48
Electricity 1884315.07 1760985.99
Labor 6101200.00 3102530.32
Others 2521658.17 2827168.62
Total 13361192.95 19871102.41
2. There is no major amount payable with over one year age at end of the period
(19)Payroll payable
1. Payroll payable
Item
Year-end balance
of last year
Current increased
Current
Decreased
Ending Balance
Short-term remuneration 54801004.42 57502762.80 73035130.07 39268637.15
Post-employment 407428.11 6482783.84 5113650.54 1776561.41
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
Year-end balance
of last year
Current increased
Current
Decreased
Ending Balance
welfare-defined contribution
plans
Severance Pay
Other welfare due within one
year
Total 55208432.53 63985546.64 78148780.61 41045198.56
2. Short-term remuneration
Item
Year-end balance
of last year
Current increased
Current
Decreased
Book balance
(1) Wages bonuses allowances and
subsidies
53579116.98 44870304.70 59821822.13 38627599.55
(2) Welfare for workers and
staff
63050.00 413654.74 378393.74 98311.00
(3) Social insurance
199344.99 2418356.33 2569608.69 48092.63
Including: Medical
insurance
167818.74 2351191.23 2476620.10 42389.87
Work injury
insurance
13139.34 7859.44 20962.00 36.78
Maternity
insurance
18386.91 59305.66 72026.59 5665.98
(4) Housing accumulation fund 614780.58 9085609.07 9549296.93 151092.72
(5) Labor union expenditure
and personnel education
expense
344711.87 714837.96 716008.58 343541.25
Total 54801004.42 57502762.80 73035130.07 39268637.15
3. Defined contribution plans
Item
Year-end balance
of last year
Current increased
Current
Decreased
Book balance
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
Year-end balance
of last year
Current increased
Current
Decreased
Book balance
Basic endowment insurance 394280.13 3829721.67 4201766.55 22235.25
Unemployment insurance 12849.98 22162.21 34888.99 123.20
Enterprise annuity 298.00 2630899.96 876995.00 1754202.96
Total 407428.11 6482783.84 5113650.54 1776561.41
(20) Taxes payable
Item Ending Balance
Year-end balance of
last year
Enterprise income tax 475248.33 3407074.02
Real estate tax 1957956.15 996166.86
Individual income tax 1043897.37 1550858.52
Land-use tax of town 452439.30
VAT 7538071.86 15053172.64
Other 357269.39 762001.73
Total 11824882.40 21769273.77
(21) Other account payable
Item Ending Balance Year-end balance of last year
Interest payable
Dividends payable
Other account payable
34163258.96 43691472.06
Total 34163258.96 43691472.06
1. Other account payable
(1) Other payable by nature
Item Book balance
Year-end balance of
last year
Engineering funds 11861176.64 13045165.88
Quality assurance 6633006.27 6825475.53
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Book balance
Year-end balance of
last year
Accrued expenses 10143950.69 10301185.40
Equipment fund 3718050.65
Other 5525125.36 9801594.60
Total 34163258.96 43691472.06
(2) Other account payable of more than one year is of 18271785.62 Yuan (December 31 2019:
18303816.84 Yuan) which is mainly the engineering equipment fund payable and guarantee
money.
(22) Accrual liability
Item Book balance
Year-end balance of last
year
Reason
Guarantee offering outside 26646056.28 26646056.28
Total 26646056.28 26646056.28
Note: On 29 November 2013 Shenzhen Server and Jiahua Building Products (Shenzhen) Co. Ltd. (Jiahua
Building) signed a supplementary term aiming at equity transfer over equity attribution and division of Yapojiao
Dock which belongs to Shenzhen Server Huidong Server and Huidong Nianshan Town Government as well as its
subordinate Nianshan Group. In order to solve this remaining historic problem Shenzhen Server saved RMB
12500000.00 in condominium deposit account as guarantee. In addition Server pledged its 20% of equity holding
from Huidong Server to Jiahua Architecture with pledge duration of 2 years. The amount of collateral on loans
could not exceed RMB 15000000.00. Relevant losses with the event concerned predicted amounting to RMB 27
500000.00 by the Group. The costs for lawyers from 2014 to June 2020 and the costs for problem left over by
history amounting to 853943.72 Yuan ending balance amounted as 26646056.28 Yuan.
(23) Deferred income
Item
Year-end balance of
last year
Current increased
Current
decreased
Ending Balance Reasons
Government
subsidy
108507683.52 11549926.48 96957757.04
Items with government subsidy involved:
深圳南山热电股份有限公司 2020 年半年度报告全文
Liability
Opening
balance
Subsidy amount
newly increased in
the current period
Amount included
in current profit
and loss
Reducti
on of
consoli
dation
scope
changes
Book balance
Assets
related/income
related
Subsidy for
low-nitrogen
transformation
25165130.64 261374.29
3736
754.75
21167001.60 Assets related
Information
construction
86666.60 30588.24 56078.36 Assets related
Support fund of
recycling
economy for
sludge drying
7451273.95 323501.46 7127772.49 Assets related
Treasury subsidies
for sludge drying
2826250.00 127500.00 2698750.00 Assets related
Special funds for
energy
conservation and
emission
reduction
684223.30 57018.66 627204.64 Assets related
Funded of energy
efficiency
improvement for
electric machine
401760.00 17280.00 384480.00 Assets related
Subsidy for
quality promotion
of the air
environment in
Shenzhen
67262379.03 2365909.08 64896469.95 Assets related
Cogeneration 4630000.00
4630
000.00
Assets related
Total 108507683.52 3183171.73
8366
754.75
96957757.04
(24) Share capital
Item
Year-end balance
of last year
Changes in this period(+ -) Ending Balance
New shares
issued
Bonus
shares
Capitalizing
from reserves
Other Subtotal
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
Year-end balance
of last year
Changes in this period(+ -) Ending Balance
New shares
issued
Bonus
shares
Capitalizing
from reserves
Other Subtotal
Total shares 602762596.00 602762596.00
(25) Capital reserve
Item
Year-end balance of last
year
Current
increased
Current
decreased
Book balance
Capital premium
（Sharepremium）
233035439.62 233035439.62
Other capital
reserve
129735482.48 129735482.48
Total 362770922.10 362770922.10
深圳南山热电股份有限公司 2020 年半年度报告全文
(26) Other comprehensive income
Item
Year-end
balance of last
year
Current period
Book balance
Account before
income tax in the
year
Less: written in
other
comprehensive
income in
previous period
and carried
forward to gains
and losses in
current period
Less : income tax
expense
Belong to parent
company after tax
Belong to
minority
shareholders after
tax
1. Other comprehensive income items which will not
be reclassified subsequently to profit of loss
-2500000.00 -2500000.00
Including: changes of the defined benefit plans that
re-measured
Other comprehensive income under equity
method that cannot be transfer to gain/loss
Change of fair value of investment in other
equity instrument
-2500000.00 -2500000.00
Fair value change of enterprise's credit risk
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
Year-end
balance of last
year
Current period
Book balance
Account before
income tax in the
year
Less: written in
other
comprehensive
income in
previous period
and carried
forward to gains
and losses in
current period
Less : income tax
expense
Belong to parent
company after tax
Belong to
minority
shareholders after
tax
2. Other comprehensive income items which will be
reclassified subsequently to profit or loss
including: other comprehensive income under equity
method that can transfer to gain/loss
Change of fair value of other debt investment
Amount of financial assets re-classify to other
comprehensive income
Credit impairment provision for other debt
investment
Cash flow hedging reserve
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
Year-end
balance of last
year
Current period
Book balance
Account before
income tax in the
year
Less: written in
other
comprehensive
income in
previous period
and carried
forward to gains
and losses in
current period
Less : income tax
expense
Belong to parent
company after tax
Belong to
minority
shareholders after
tax
Translation differences arising on translation of
foreign currency financial statements
Total other comprehensive income -2500000.00 -2500000.00
深圳南山热电股份有限公司 2020 年半年度报告全文
(27) Surplus reserve
Item
Year-end balance of
last year
Current increased Current decreased Book balance
Legal surplus reserve 310158957.87 310158957.87
Discretionary surplus
reserve
22749439.73 22749439.73
Total 332908397.60 332908397.60
Note: according to the Company Law and the Articles of Association the Company takes 10% of the net profit
aside as legal surplus reserve. No more provision is made when the accumulated legal surplus reserve exceeds 50%
of the registered capital.
After provision for legal surplus reserve the Company can make provision for other surplus reserve. As approved
other surplus reserve can be used to make up for previous loss or increase share capital.
(28) Retained profit
Item Current amount
Year-end balance of last
year
Retained profit of last year before adjusted 706830892.54 679429935.81
Total retained profit adjusted (increased with +
decreased with -)
2500000.00
Retained profit at beginning of the year after adjusted 706830892.54 681929935.81
Add: net profit attributable to shareholders of parent
company
52040498.42 24900956.73
Less: withdrawal of statutory surplus reserve
Surplus reserves withdrawal
General risk reserve withdrawal
Common Stock dividend payable 12055251.92
Dividend of common shares transfer as share capital
Retained profit at period-end 746816139.04 706830892.54
(29) Operating income and operating cost
Item Current amount Last-period amount
深圳南山热电股份有限公司 2020 年半年度报告全文
Income Cost Income Cost
Main business 516766342.40 453011367.34 407283308.09 382899068.89
Other business 1384263.81 98068.80 841308.29 98068.80
Total 518150606.21 453109436.14 408124616.38 382997137.69
(30) Tax and surcharge
Item Current amount Last-period amount
City maintenance tax 1383140.70 347935.14
Education surtax 994801.55 239773.87
Real estate tax 1208396.49 1299068.45
Stamp tax 249088.14 223246.10
Environmental protection tax 52684.43 71377.28
Land holding tax 528926.56 622976.03
Other
2070.82 21056.56
Total
4419108.69 2825433.43
(31) Sales expense
Item Current amount Last-period amount
Sludge treatment costs
1759061.64 2091758.08
Salary welfare and social insurance
483096.28 211222.62
Communication expenses 3600.00 3600.00
Social expenses
102828.00 115344.00
Fleet cost
14862.00 15559.00
Inspection charges
8254.72 5707.55
Labor insurance fee
12146.33 10530.68
Rental fee
14400.00 14400.00
Property insurance
55981.53 49130.74
Agency engagement fee
49056.60 37735.85
Other 24116.56 11281.00
Total 2527403.66 2566269.52
深圳南山热电股份有限公司 2020 年半年度报告全文
(32) Administration expense
Item Current amount Last-period amount
Wages
22642057.64 23892967.48
Rental fee
3190390.04 3288377.42
Social expenses
1215245.44 1532058.32
Intermediary agency fee 769240.68 1231759.70
Fleet cost
1544894.98 1007200.26
Board charges
643383.04 588713.32
Depreciation 3219527.40 2735952.70
Amortization of intangible assets
438195.11 924080.54
Environmental protection fee 112454.45 985970.24
Food fee 1683299.91 1636173.21
Corporate culture fee
466986.30 416397.26
Property management fee
476391.32 473682.63
Office fee
451606.20 351693.34
Communication expenses
584900.66 555998.52
Business travel expenses
150697.01 309115.10
Fee for stock certificate
268361.53 86822.94
Union funds 296122.92 303547.56
Employee education expenses 25496.98 55175.25
Other 4857620.54 4556178.71
Total 43036872.15 44931864.50
(33) Financial expense
Item Current amount Last-period amount
Interest expenses
18800827.68 23542971.21
Less: capitalized interest
613068.55
Expenses interest
18187759.13 23542971.21
Less: interest income
13142285.32 13189605.67
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Current amount Last-period amount
Exchange loss (gains is listed with ”-”)
-56923.92 -6301.58
Other
76172.31 292203.46
Total 5064722.20 10639267.42
(34) Other Income
Item Current amount Last-period amount
Government grants 8588818.18 4962155.46
Additional deduction on input tax
Commission for withholding the individual income tax 166718.37
Income from debt restructuring
Total 8755536.55 4962155.46
Government subsidies included in other income
Item
Current
amount
Last-period
amount
Asset related /
income related
Special Fund Subsidy for Shenzhen Atmospheric
Environmental Quality Improvement
2365909
.08
1201651.5
4
Asset related
Subsidy for low-nitrogen transformation 261374.2
9
251403.55 Asset related
Enterprise information construction project funding 30588.24 30588.24 Asset related
Subsidies for energy-saving technological transformation
projects
57018.66 57018.66 Asset related
Treasury subsidies for sludge drying 127500.0
0
127500.00 Asset related
Support fund of recycling economy for sludge drying 323501.4
6
323501.46 Asset related
Funded of energy efficiency improvement for electric machine
17280.00 17280.00 Asset related
VAT rebates
1134065
.17
1753212.0
1
Income related
Unemployment insurance refund of affected enterprises - Income related
深圳南山热电股份有限公司 2020 年半年度报告全文
Item
Current
amount
Last-period
amount
Asset related /
income related
4171581
.28
Subsidies for further steady growth of funding projects
100000.0
0
Income related
Supporting funds of office occupancy for listed companies
1000000.0
0
Income related
Reward to encouraging small and medium-sized enterprise to
growth as a scale-sized company
200000.00
Income related
Total 8588818
.18
4962155.4
6
(35) Investment income
Item
Current
amount
Last-period
amount
Long-term equity investment income by equity -243622.43 -677552.37
Investment income from disposal of long-term investments 33534881.55
Total 33291259.12 -677552.37
(36)Income from disposal of assets
Item
Current
amount
Last-period
amount
Amount reckoned into non-recurring
gains/losses of the Period
Profit and loss on disposal of fixed
assets
-417926.32
Profit and loss on disposal of
construction in process
828535.6
6
828535.66
Total 828535.6
6
-417926.32 828535.66
(37) Non-operating revenue
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Current amount Last-period amount
Amount reckoned into
non-recurring
gains/losses of the
Period
Sales of waste materials 98666.50
Other
4753.84 4500.00 4753.84
Total 4753.84 103166.50 4753.84
(38) Non-operating expenditure
Item Current amount Last-period amount
Amount reckoned into
non-recurring
gains/losses of the
Period
External donation 10000.00 10000.00
Loss of scrap from non-current
assets
1110.00 1110.00
Other
46124.97
Total 11110.00 46124.97 11110.00
(39) Income tax expense
Item Current amount Last-period amount
Current income tax calculated in
accordance with tax laws and related
regulations
610366.52
1157865.76
(40) Cash flow statement
1. Cash received with other operating activities concerned
Item Current amount Last-period amount
Government subsidy collected 4688786.13 39297273.00
Intercourse funds collected 13431789.29
Interest income 10929678.85 12982668.91
深圳南山热电股份有限公司 2020 年半年度报告全文
2. Other cash paid in relation to operation activities
Item Current amount Last-period amount
Hiring intermediary agency fee 769240.68 1231759.70
Board fee 643383.04 588713.32
Rental fees 3850120.43 3762060.05
Communication fee 1215245.44 1532058.32
Fleet cost 1544894.98 1007200.26
Corporate culture fee 466986.30 416397.26
Communication fee 584900.66 555998.52
Environmental protection fee 112454.45 985970.24
Other 11968246.77 16424022.91
Total 21155472.75 26504180.58
3. Cash received from other investment activities
Item Current amount Last-period amount
Repayment of loan from Huidong Serve 800000.00
4. Other cash paid related to investment activities
Item Current amount Last-period amount
The cash difference bewteen the cash balance of
Shen Nan Dian (Dongguan) Weimei Electric Power
Co. Ltd and the cash received from the disposal of
the equity on the date when disposing
12577163.02
5. Other cash received in relation to financing activities
Item Current amount Last-period amount
Margin received 7303338.86
Received a loan from Shenzhen Gas Group Co. Ltd. 170000000.00
Total 170000000.00 7303338.86
Other
6887829.91 4321781.62
Total
22506294.89 70033512.82
深圳南山热电股份有限公司 2020 年半年度报告全文
(41) Supplementary information to statement of cash flow
1. Supplementary information to statement of cash flow
Supplementary information Current amount Last-period amount
1. Net profit adjusted to cash flow of operation activities
Net profit
52251672.02 -33069503.64
Add: Assets impairment provision
Depreciation of fixed assets
25805403.49 44801828.95
Amortization of intangible assets 485983.65 1232100.02
Amortization of long-term deferred expenses 125971.38 22548.81
Loss from disposing fixed assets intangible assets and
other long-term assets (income)
-828535.66 417926.32
Loss on retirement of fixed assets
Financial expense (income) 18800827.68 23542971.21
Investment loss (income) 33291259.12 677552.37
Decrease of deferred income tax asset( (increase)
Decrease of inventory (increase) 16132545.39 278786.02
Decrease of operating receivable accounts (increase) -18919356.88 4043360.79
Increase of operating payable accounts (decrease) -57209208.73 14269806.04
Net cash flow arising from operating activities 69936561.46 56217376.89
2. Material investment and financing not involved in cash
flow
Debt capitalization
Convertible company bond due within one year
Fixed assets acquired under finance leases
3. Net change of cash and cash equivalents:
Closing balance of cash and cash equivalent 1084903966.81 1029883840.43
Less: Opening balance of cash and cash equivalent 771490000.96 914956611.70
Net increasing of cash and cash equivalents 313413965.85 114927228.73
深圳南山热电股份有限公司 2020 年半年度报告全文
2. Composition of cash and cash equivalent
Item Book balance
Year-end balance of last
year
I. Cash 324903966.81 381490000.96
Including: Cash on hand 65138.88 84307.60
Bank savings available for payment needed 317274657.16 381339856.01
Other monetary capital available for payment needed 7564170.77 65837.35
Account due from central bank available for payment
Amount due from banks
Amount call loans to banks
II. Cash equivalent 760000000.00 390000000.00
including: bond investment due within three months
III. Balance of cash and cash equivalent at period-end 1084903966.81 771490000.96
Including: Cash and cash equivalent of the parent company
or subsidiaries with use restricted
(42) Foreign currency
1. Foreign currency
Item
Balance of foreign
currency at period-end
Conversion rate
Balance of RMB converted
at period-end
Monetary fund
Including: USD 840153.18 7.08 5947607.19
HKD 976.71 7.96 7775.59
Euro 466204.75 0.91 425833.72
SGD 5558.03 5.08 28242.02
VI. Change of consolidate scope
1. Disposal of subsidiary
Name of
subsidiary
Equity disposal
price
Equity
disposal
ratio
(%)
Equity
disposal
method
Time point
of loss of
control
Basis for
determining the
time point of loss
of control
Consolidated
statement level
corresponding to
disposal price and
深圳南山热电股份有限公司 2020 年半年度报告全文
disposal
investment enjoys
the difference of
the subsidiary’s net
asset share
Shen Nan
Dian
(Dongguan)
Weimei
Electric
Power Co.Ltd
104980000.00 70%
Assignment
by
agreement
2020/4/30
The sale has been
approved by the
general meeting of
shareholders more
than 50% of the
disposal payment
has been received
the equity transfer
procedures have
been completed
and the board of
directors has been
completely
replaced
33534881.55
Cont.
Name of
subsidiary
Proportion of
remaining
equity on the
day of loss of
control (%)
Book
value of
remaining
equity on
the date of
loss of
control
Fair value
of the
remaining
equity on
the date of
loss of
control
Gains or
losses
arising from
recalculating
the
remaining
equity at fair
value
Determination
method and main
assumptions of the
fair value of the
remaining equity
on the date of loss
of control
Amount of other
comprehensive
income related
to the equity
investment of
the original
subsidiary that
transferred to
the investment
profit and loss
Shen Nan
Dian
(Dongguan)
Weimei
Electric
Power Co.Ltd
N/A N/A N/A N/A N/A N/A
VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
Subsidiary
Main
operation
Registration
place
Business
nature
Shareholding ratio
(%)
Acquired way
深圳南山热电股份有限公司 2020 年半年度报告全文
place Directly Indirectly
Shenzhen
Server (note)
Shenzhen Shenzhen Trading 50 Establishment
New Power Shenzhen Shenzhen
Power
generation
75 25 Establishment
Zhongshan
Electric
Power
Zhongshan Zhongshan
Power
generation
55 25 Establishment
Engineering
Company
Shenzhen Shenzhen
Engineering
consulting
60 40 Establishment
Environment
Protection
Company
Shenzhen Shenzhen Engineering 70 30 Establishment
Singapore
Company
Singapore Singapore Trading 100 Establishment
Shenzhen
Storage
Zhongshan Zhongshan Storage 80 Establishment
Syndisome Hong Kong Hong Kong
Exp. & imp.
Trading
100
Under
different
control
Note : The Company holds 50% equity of Shenzhen Server and holds a majority of voting rights in the company's
board of directors at the same time. Therefore the Company has substantive control over it and it is included in
the consolidation scope of the consolidated financial statements.
2. Important non-wholly-owned subsidiary
Subsidiary
Share-holding ratio
of minority (%)
Gains/losses
attributable to
minority in the
Period
Dividend
announced to
distribute for
minority in the
Period
Ending equity of
minority
Zhongshan Electric
Power
20.00 2788481.06 -16079276.55
深圳南山热电股份有限公司 2020 年半年度报告全文
3. Main finance of the important non-wholly-owned subsidiary
Subsidiar
y
Ending Balance Year-end balance of last year
Current
assets
Non-curr
ent assets
Total
assets
Current
liability
Non-cu
rrent
liability
Total
liability
Current
assets
Non-curren
t assets
Total assets
Current
liability
Non-curren
t liability
Total
liability
Zhongsha
n Electric
Power
7838334
8.34
51764121
4.85
59602456
3.19
67087228
1.50
554866
4.49
67642094
5.99
67810211.56 529800968.
49
597611180.0
5
686312294.
78
5637673.36 691949968.
14
Subsidiary
Current amount Last-year amount
Operation Income Net profit
Total
comprehensive
income
Cash flow from
operation
activity
Operation
Income
Net profit
Total
comprehensive
income
Cash flow from
operation
activity
Zhongshan Electric
Power
85765596.92 13942405.29 13942405.29 31248237.34 66364051.74 -11987240.04 -11987240.04 30421274.57
深圳南山热电股份有限公司 2020 年半年度报告全文
(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
Name
Main
operation
place
Registered
place
Business
nature
Share-holding ratio（%） Accounting
treatment on
investment for
joint venture and
cooperative
enterprise
Directly Indirectly
Huidong Server Huizhou Huizhou
Wharf
operation
40.00
Equity method
2. Financial summary for un-important joint venture or cooperative enterprise
Ending Balance
/Current amount
Year-end balance of
last year /Last-year
amount
Joint venture:
Total book value of the investment 14375580.60 14619203.03
Total numbers measured by
share-holding ratio
—Net profit -243622.43 -677552.37
—Other comprehensive income
—Total comprehensive income -243622.43 -677552.37
VIII. Risks relating to financial instruments
The Company's main financial instruments include equity investment borrowings accounts receivable accounts
payable etc. see details of each financial instrument in related items of this annotation V. The risks associated with
these financial instruments and the risk management policies adopted by the Company to reduce these risks are
described as below. The management of the Company manages and monitors these risk exposures to ensure that
the above risks are controlled within the limit range.The Company uses the sensitivity analysis technique to analyze the possible impact of the risk variable on the
current profit and loss or the shareholders' equity. Since any risk variable rarely changes in isolation and the
correlation existing among the variables shall have a significant effect on the final amount of changes about a
certain risk variable therefore the following proceeds by assuming that the change in each variable is independent.The objective of the Company's risk management is to gain a proper balance between risks and profits minimize
the negative impact of risks on the Company's operating results and maximize the benefits of shareholders and
other equity investors. Based on the risk management objective the basic strategy of the Company's risk
深圳南山热电股份有限公司 2020 年半年度报告全文
management is to identify and analyze the risks faced by the Company establish appropriate bottom line to bear
the risks and carry out risk management and timely and reliably supervise the risks so as to control the risks within
the limit range.(I) Credit risk
On 30 June 2020 the maximum credit risk exposure that could cause financial loss to the Company is mainly due
to the failure of the other party to fulfill the obligations resulting in losses to the Company's financial assets
including:
Carrying value of financial assets recognized in consolidated balance sheet. As for financial instrument at fair
value carrying value reflects its risk exposure while not the largest risk exposure. The largest risk exposure will
vary as fair value changes in future.In order to bring down credit risk the Company establishes a special working team to take charge of determining
credit limit making credit approval and implementing other monitor procedures to ensure necessary measures are
adopted to collect overdue debts. In addition recovery of each single account receivable is reviewed on each
balance sheet date to ensure adequate bad debt provision is made for unrecoverable amount. Therefore
management believes that the Company has substantially reduced the credit risks it assumes.Our current capital is deposited with highly-rated banks thus credit risk arising from current capital is relatively
low.(II) Market risk
Market risks of financial instruments refers to the risks that the fair value or future cash flow of
such financial instruments will fluctuate due to the changes in market prices including FX risks
interest rate risks and other price risks.
1. Interest rate risk
The Company's cash flow change risk of financial instruments arising from interest rate change is mainly related to
the floating interest rate bank loans (see details in Note V (16);
Interest rate risk sensitivity analysis:
The interest rate risk sensitivity analysis is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with
variable interest rate; For financial instruments with fixed rate by fair value measurement the
changes in market interest rates only affect their interest income or expense; For derivative
financial instruments designated as hedging instruments the changes in market interest rates affect
their fair value and all interest rate hedging prediction is highly effective; Calculate the changes in
fair value of derivative financial instruments and other financial assets and liabilities by using the
cash flow discount method at the market interest rate at the balance sheet date.On the basis of above assumptions in case that other variables keep unchanged the pre-tax effect of possible
reasonable changes in interest rates on current profits and losses and shareholders' equity is as follows:
Rate
changes
Current year Last year
Impact on profit Impact on shareholders’ equity Impact on profit
Impact on
shareholders’ equity
5%
increased
878221.61 800563.02 1177083.56 1139067.58
深圳南山热电股份有限公司 2020 年半年度报告全文
Rate
changes
Current year Last year
Impact on profit Impact on shareholders’ equity Impact on profit
Impact on
shareholders’ equity
5%
decreased
-878221.61 -800563.02 -1177083.56 -1139067.58
2. FX risks
Foreign exchange risk refers to the risk of losses due to exchange rate changes. The Company’s foreign exchange
risk is mainly related to the US dollar. On 30 June 2020 except for the balance of foreign currency monetary items
of 42. Foreign currency monetary in Note V the assets and liabilities of the Company are RMB balance. The
foreign exchange risk arising from the assets and liabilities of such foreign currency balances may have an impact
on the Company's operating results.(III) Liquidity risk
In managing the liquidity risk the Company keeps the cash and cash equivalents that the management considers to
be sufficient and supervise them so as to meet the Company's operating needs and reduce the impact of
fluctuations in cash flows. The Company’s management monitors the use of bank loans and ensures to comply
with the loan agreement.The Company uses bank loans as the main source of funds.IX. Related party and related party transactions
(1) Parent company of the Group
Share holding proportion of any shareholder of the Company didn't reach 50% and couldn't form a holding
relationship of the Company through any methods. The Company has no parent company.
(2) Subsidiaries of the Company
See details in Note VII. Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. Equity in other entity
(4) Other related party
Other related party Relationship with the CompanyShenzhen Energy Group Co. Ltd. (“Shenzhen EnergyGroup” for short)
Legal person holding more than 5% of the company's
shares
Shenzhen Guangju Industrial Co. Ltd. Legal person holding more than 5% of the company's
shares
HONG KONG NAM HOI (INTERNATIONAL)
LTD.
Legal person holding more than 5% of the company's
shares
Shenzhen Capital Co. Ltd. Legal person indirectly holding more than 5% of the
company's shares through Shenzhen Energy Group
深圳南山热电股份有限公司 2020 年半年度报告全文
Other related party Relationship with the Company
Wanhe Securities Co. Ltd. Other related parties
Shenzhen Energy Group Co. Ltd. Other related parties
Fuel branch of Shenzhen Energy Group Co. Ltd. Other related parties
Shenzhen Energy and Gas Investment Holding Co.Ltd.Other related parties
Directors supervisors and senior management of the
company
Key managers
(5) Receivable/payable items of related parties
1. Receivable
Item Related party
Ending Balance Year-end balance of last year
Book balance Bad debt
provision
Book balance Bad debt
provision
Other account
receivable
Huidong Server 8432761.42 9060361.44
Huidong Server
managed account
13243635.56 13114012.69
Total 21676396.98 22174374.13
X. Government subsidies
(1) Government subsidies related to assets
Type Amount Balance sheet
The amount included in current
gain/loss or loss resulting from
related costs off-setting
Item of the
amount
included in
深圳南山热电股份有限公司 2020 年半年度报告全文
Current
amount
Last amount
current
gain/loss or
loss resulting
from related
costs
off-setting
Subsidy for low-nitrogen
transformation
43032780.
00
Deferred
income
261374.29 251403.55 Other
income
Information
construction
520000.00 Deferred
income
30588.24 30588.24 Other
income
Support fund of recycling economy
for sludge drying
10000000.
00
Deferred
income
127500.00 127500.00 Other
income
Treasury subsidies for sludge drying 5100000.0
0
Deferred
income
323501.46 323501.46 Other
income
Special funds for energy
conservation and emission reduction
1530000.0
0
Deferred
income
57018.66 57018.66 Other
income
Funded of energy efficiency
improvement for electric machine
518400.00 Deferred
income
17280.00 17280.00 Other
income
Subsidy for quality promotion of the
air environment in Shenzhen
70977273.
00
Deferred
income
2365909.08 1201651.54 Other
income
Total
131678453
.00
3183171.73 2008943.45
(2) Government subsidies related to income
Type Amount
The amount included in
current gain/loss or loss
resulting from related costs
off-setting
Item of the amount
included in current
gain/loss or loss
resulting from
related costs
off-setting
Current
amount
Last
amount
VAT refund
1134065.
17
1134065.1
7
1753212.
01
Other
income
深圳南山热电股份有限公司 2020 年半年度报告全文
Type Amount
The amount included in
current gain/loss or loss
resulting from related costs
off-setting
Item of the amount
included in current
gain/loss or loss
resulting from
related costs
off-setting
Current
amount
Last
amount
Unemployment insurance refund of affected
enterprises
4171581.
28
4171581.2
8
Other
income
Subsidies for further steady growth of funding
projects
100000.00
100000.00
Other
income
Office housing support funds for listed
companies
1000000.
00
Other
income
Encourage SMEs to scale up rewards
200000.00
Other
income
Total
5405646.
45
5405646.4
5
2953212.
01
XI. Commitment and Contingency
(1) Major Commitment
Nil
(2) Contingency
Nil
XII. Events Occurring after the Balance Sheet Date
On March 5 and March 23 2020 the Eleventh Extraordinary Meeting of the Company’s Eighth
Board of Directors and the 2020 First Extraordinary General Meeting of Shareholders under the
name of Shenzhen Nanshan Power Co. Ltd (hereinafter referred to as the Company) respectively
reviewed and approved the Proposal on the Agreement to Transfer 70% Equity of Shen Nan Dian
(Dongguan) Weimei Electric Power Co. Ltd." agreeing to transfer 70% equity of Shen Nan Dian
Dongguan Company directly and indirectly held by the company to Shenzhen Gas Group Co. Ltd.
(hereinafter referred to as Shenzhen Gas) at a total price of 104.98 million yuan. According to the
equity transfer agreement signed between the company and Shenzhen Gas after the company
received 40% of equity transfer fund i.e. 59.99 million yuan of Shen Nan Dian Dongguan
Company from Shenzhen Gas Shen Nan Dian Dongguan Company has completed the industrial
and commercial change registration on April 9 2020. Since then the total loan of 300 million
深圳南山热电股份有限公司 2020 年半年度报告全文
yuan applied by Shen Nan Dian Dongguan Company from Bank of Ningbo Shenzhen Branch and
Industrial Bank Shenzhen Branch has been repaid and the joint guarantee and liability guarantee
provided by the company for the above loan of Shen Nan Dian Dongguan Company has been
lifted; Shen Nan Dian Dongguan Company has fully repaid the principal and interest of the
company's 180 million yuan of financial assistance.On July 2 2020 the company's wholly-owned subsidiary Hong Kong Syndisome Co. Ltd.received the remaining 30% equity transfer payment of 44.99 million yuan from Shenzhen Gas.So far the company has received all the equity transfer payments paid by Shenzhen Gas and the
transfer of 70% equity of Shen Nan Dian Dongguan Company was completed.XIII. Other important events
(1) Segment information
1. Determining basis and accounting policies of reportable segments
According to the Group's internal organization structure management requirements and internal reporting system the
Group's business is divided into three operating segments including power and heat supply fuel oil trade and other
business the Group's management periodically evaluates the operating results of these segments so as to determine
the allocation of resources and assess their performances.Segmental reporting information is disclosed in accordance with the accounting policies and measurement standards
adopted by each segment for reporting to the management the measurement basis keep pace with the accounting and
measurement basis used for preparing financial statements.
2. Financial information of the reportable segment
Item
Power supply & heating Fuel trading Other Fuel trading
Total
Operation income 492269718.83 535619.08 46696529.61 21351261.31 518150606.21
Operation cost 443625551.12 98068.80 36294452.93 26908636.71 453109436.14
Total assets 3739501185.55 121784714.52 346595525.59 1156333540.24 3051547885.42
Total liabilities 1751424593.52 29386981.49 44802294.92 846135389.63 979478480.30
XIV. Note to main items of financial statements of the Company
(1) Account receivable
1. Age analysis
Account age Book balance Year-end balance of last year
Within one year
61626629.43 31821804.69
1 to 2 years
深圳南山热电股份有限公司 2020 年半年度报告全文
Account age Book balance Year-end balance of last year
2 to 3 years
Over 3 years
2889.00 2889.00
Subtotal
61629518.43 31824693.69
Less: Bad debt provision
Total
61629518.43 31824693.69
2. According to accrual method for bad debts
Category
Book balance
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion
(%)
With single
provision for bad
debts
With bad debt
provision accrual
based on similar
credit risk
characteristics of a
portfolio 61629518.43 100.00 61629518.43
Total 61629518.43 100.00 61629518.43
Category
Year-end balance of last year
Book balance Bad debt provision
Book
value
Amou
nt
P
roportion
(%)
Amount
A
ccrual
proportion
(%)
With single provision for
bad debts
With bad debt provision
accrual based on similar
31824693.69 100 31824693.69
深圳南山热电股份有限公司 2020 年半年度报告全文
Category
Year-end balance of last year
Book balance Bad debt provision
Book
value
Amou
nt
P
roportion
(%)
Amount
A
ccrual
proportion
(%)
credit risk characteristics
of a portfolio
Total 31824693.69 100 31824693.69
3. No account receivable with single provision for bad debts
Provision for bad debts by portfolio：
Provision by portfolio：
Name
Book balance
Account receivable
Bad debt provision Accrual proportion (%)
With minor
credit risk
61629518.43
Recognition standards and specifications on provisions by portfolio:
The account receivable with provision for bad debts by portfolio mainly refers to the amount from
Shenzhen Power Supply Bureau Co. Ltd etc. which has minor credit risk and no provision for
bad debts.
4. No provision for bad debts in the current period
5. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 61629518.43 Yuan takes 100
percent of the total account receivable at period-end bad debt provision accrual correspondingly at period-end
amounting as 0 Yuan
6. No accounts receivable terminated recognition due to transfer of financial assets at the
period
(2) Other account receivable
Item Ending Balance Last year-end balance
Interest receivable
Dividend receivable
Other account receivable 660835522.34 873861071.55
Total 660835522.34 873861071.55
1. Other account receivable
(1) Disclosure by age
深圳南山热电股份有限公司 2020 年半年度报告全文
Account age
Ending Balance Last year-end balance
Within one year
181599583.37 239265595.88
1 to 2 years
262147773.68 89264291.59
2 to 3 years
136709590.00 100729690.00
Over 3 years
107708218.73 471931137.52
Subtotal
688165165.78 901190714.99
Less: Bad debt provision
27329643.44 27329643.44
Total
660835522.34 873861071.55
(2) Disclosure by category
Category
Book balance
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion
(%)
With single
provision for bad
debts
28023159.22 4.07 27329643.44 97.53 693515.78
With bad debt
provision accrual
based on similar
credit risk
characteristics of a
portfolio
660142006.56 95.93 660142006.56
Total 688165165.78 100.00 27329643.44 3.97 660835522.34
Category
Year-end balance of last year
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion
(%)
With single provision
for bad debts
28023159.22 3.11 27329643.44 97.53 693515.78
深圳南山热电股份有限公司 2020 年半年度报告全文
Category
Year-end balance of last year
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion
(%)
With bad debt
provision accrual
based on similar
credit risk
characteristics of a
portfolio 873167555.77 96.89 873167555.77
Total 901190714.99 100.00 27329643.44 3.03 873861071.55
With single provision for bad debts:
Name
Book balance
Book amount Bad debt provision Accrual proportion (%) Causes
Huiyang
Kangtai
Industrial
Company
14311626.70 14311626.70 100.00 Un-collectable in excepted
Individual
income tax
2470039.76 2470039.76 100.00 Un-collectable in excepted
Dormitory
amount
receivable
2083698.16 1736004.16 83.31 Some un-collectable in excepted
Personal
receivables
7498997.87 7498997.87 100.00 Un-collectable in excepted
Deposit
receivable
1658796.73 1312974.95 79.15 Some un-collectable in excepted
Total 28023159.22 27329643.44 97.53
Provision for bad debts by portfolio:
Provision by portfolio:
Name
Book balance
Other account receivable Bad debt provision Accrual proportion (%)
深圳南山热电股份有限公司 2020 年半年度报告全文
Name
Book balance
Other account receivable Bad debt provision Accrual proportion (%)
With minor credit
risk
660142006.56
Recognition standards and specifications on provisions by portfolio:
The Company believes that the credit risk of other account receivable with no impairment in the single assessment
is relatively low no provision for bad debts unless there is evidence that a certain other account receivable is at
greater credit risk.
(3) Accrual of bad debt provision
Bad debt provision
Phases I Phases II Phases III
Total
Expected credit
losses over next
12 months
Expected credit
losses for the
entire duration
(without credit
impairment
occurred)
Expected credit
losses for the
entire duration
(with credit
impairment
occurred)
Balance at year-begin 27329643.44 27329643.44
Book balance of other
account receivable at
year-begin
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual
Current switch back
Rewrite in the period
Write-off in the period
Other changes
Book balance 27329643.44 27329643.44
(4) No provision for bad debts in the current period
(5) No other accounts receivable that had actually written off in the period
深圳南山热电股份有限公司 2020 年半年度报告全文
(6) By nature
Nature Ending book balance Book balance at last year-end
Dormitory receivables 2083698.16 2083698.16
Deposit receivable 1738810.86 1658796.73
Related party transactions 656170887.94 866978723.13
Personal account 10008932.63 10008932.63
Other 18162836.19 20460564.34
Total 688165165.78 901190714.99
(7) Top 5 other account receivables at period-end listed by arrears party
Name of the company
Relationship
with the
Company
Ending Balance Age
Proportion in
total other
account
receivable(%)
Ending
balance of bad
debt provision
Shen Nan Dian
(Zhongshan) Electric
Power Co. Ltd.Intercourse
funds
648154459.86 0-3 year
Over 3
years
94.19
Huiyang County Kangtai
Industrial Company
Other
14311626.70 Over 3
years
2.08 14311626.70
Shenzhen Shennandian
Turbine Engineering
Technology Co. Ltd.Intercourse
funds
4204379.85
Within 1
year
0.61
Shenzhen Shen Nan
Dian Environment
Protection Co. Ltd.Intercourse
funds
3812048.23
Within 1
year
0.55
Dormitory receivables
Intercourse
funds
2083698.16 Over 3
years
0.30 1736004.16
Total 672566212.80 97.73 16047630.86
(8) No receivables involving government subsidies
(9) No other receivables terminated recognition due to transfer of financial assets
深圳南山热电股份有限公司 2020 年半年度报告全文
(3) Long-term equity investment
Item
Ending Balance Last year-end balance
Book
balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Investment
to
subsidiary
576663800.00 347745035.00 228918765.00 691982849.76 388641684.76 303341165.00
Investment
to joint
venture
and
affiliate
enterprise
Total 576663800.00 347745035.00 228918765.00 691982849.76 388641684.76 303341165.00
1. Investment to subsidiary
The invested
entity
Last year-end
balance
Increase
in the
period
Decrease in the
period
Ending
Balance
Impairment
provision
accrual in
the Period
Period-end
balance of
depreciation
reserves
Shenzhen
Server
26650000.00 26650000.00
New Power
Company
71270000.00 71270000.00
Zhongshan
Electric
Power
410740000.00 410740000.00 347745035.00
Engineering
Company
6000000.00 6000000.00
Weimei
Electric
Power
115319049.76 115319049.76
Singapore 6703800.00 6703800.00
深圳南山热电股份有限公司 2020 年半年度报告全文
The invested
entity
Last year-end
balance
Increase
in the
period
Decrease in the
period
Ending
Balance
Impairment
provision
accrual in
the Period
Period-end
balance of
depreciation
reserves
Company
Environment
Protection
Company
55300000.00 55300000.00
Total 691982849.76 115319049.76 576663800.00 347745035.00
(4) Operation revenue/operation cost
Item
Current amount Last-period amount
Revenue Cost Revenue Cost
Main business 118119714.73 133626167.32 127282753.58 166390507.99
Other business 27647300.61 4310751.77 38231297.65 5937627.54
Total 145767015.34 137936919.09 165514051.23 172328135.53
XV. Supplementary information
(1) Statement of non-recurring gains/losses
Item Amount Note
Gains and losses from disposal of non-current assets 34363417.21
Tax refund or mitigate due to examination-and-approval
beyond power or without official approval document
Governmental subsidy reckoned into current
gains/losses(not including the subsidy enjoyed in quota or
ration which are closely relevant to enterprise’s normal
business
7621471.38
Capital occupancy expense collected from non-financial
enterprises and recorded in current gains and losses
Income from the exceeding part between investment cost
of the Company paid for obtaining subsidiaries associates
and joint-ventures and recognizable net assets fair value
attributable to the Company when acquiring the investment
Gains and losses from exchange of non-monetary assets
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Amount Note
Gains and losses from assets under trusted investment or
management
Various provision for impairment of assets withdrew due to
act of God such as natural disaster
Gains and losses from debt restructuring
Enterprise restructuring costs such as expenses for staff
placement integration costs etc
Gains and losses of the part arising from transaction in
which price is not fair and exceeding fair value
Current net gains and losses occurred from period-begin to
combination day by subsidiaries resulting from business
combination under common control
Gains and losses arising from contingent proceedings
irrelevant to normal operation of the Company
Except for effective hedge business relevant to normal
operation of the Company gains and losses arising from fair
value change of tradable financial assets and tradable
financial liabilities and investment income from disposal of
tradable financial assets tradable financial liabilities and
financial assets available for sale
Switch-back of provision of impairment of account
receivable which are treated with separate depreciation test
Gains and losses obtained from external trusted loans
Gains and losses arising from change of fair value of
investment real estate whose follow-up measurement are
conducted according to fair value pattern
Affect on current gains and losses after an one-time
adjustment according to requirements of laws and
regulations regarding to taxation and accounting
Trust fee obtained from trust operation
Other non-operating income and expenditure except for the
aforementioned items
-6356.16
Other gains and losses items complying with definition for
non-recurring gains and losses
Impact on income tax -67935.50
Impact on minority shareholders’ equity -19828.93
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Amount Note
Total 41890768.00
(2) ROE and EPS
Profit in the Period
Weighted average ROE(%)）
EPS
Basic EPS Diluted EPS
Net profit attributable to shareholders of the
listed company
2.57 0.09 0.09
Net profit attributable to shareholders of the
listed company after deducting non-recurring
gains and losses
0.51 0.02 0.02
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