Stock Code: 000037 200037 Short Form of Stock: Shen Nan Dian A Shen Nan Dian B No.: 2021-009
深圳南山热电股份有限公司
Shenzhen Nanshan Power Co. Ltd.
Annual Report 2020
March 2021
Section I. Important Notice Contents and Interpretation
Board of Directors Supervisory Committee all directors supervisors and senior
officers of Shenzhen Nanshan Power Co. Ltd. (hereinafter the Company)
guarantee that the Annual Report contains no misrepresentations misleading
statements or material omissions and take all responsibilities individual and/or
joint for the reality accuracy and completion of the whole contents.Principal of the Company- Chairman Li Xinwei person in charger of
accounting works- Director and GM Chen Yuhui CFO Dai Xiji and person in
charge of accounting organ (chief accountants)- deputy GM Shang Ying(act for
financial works) guarantee that the Financial Report of the annual report
disclosed is truthful accurate and complete.
All directors are attended the Board Meeting for annual report deliberation.
The Company has no plans of cash dividend distributed no bonus shares and
has no share converted from capital reserve either for the year.
Concerning the forward-looking statements with future planning involved in the
Annual Report they do not constitute a substantial commitment for investors.
Investors are advised to exercise caution of investment risks.The report has been prepared in both Chinese and English for any
discrepancies the Chinese version shall prevail. Please read the full report
seriously.Contents
Section I Important Notice Contents and Interpretation .............................................................. 2
Section II Company Profile and Main Financial Indexes .............................................................. 6
Section III Summary of Company Business .................................................................................. 11
Section IV Discussion and Analysis of the Operation ................................................................... 14
Section V Important Events ............................................................................................................ 35
Section VI Changes in shares and particular about shareholders ............................................... 52
Section VII Preferred Stock ............................................................................................................ 59
Section VIII Convertible Bonds ...................................................................................................... 60
Section IX Particulars about Directors Supervisors Senior Officers and Employees ............. 61
Section X Corporate Governance ................................................................................................... 72
Section XI Corporate bonds ............................................................................................................ 83
Section XII Financial Report .......................................................................................................... 84
Section XIII Documents available for referenc ........................................................................... 196
Interpretation
Items Refers to Contents
Company the Company Shen Nan Dian The
listed company
Refers to
Shenzhen Nanshan Power Co. Ltd.
CSRC Refers to China Securities Regulatory Commission
SASAC of Shenzhen Municipal Refers to
State-owned Assets Supervision and Administration Commission of
the People’s Government of Shenzhen Municipal
Shenzhen Capital Holdings Refers to
Shenzhen Capital Holdings Co. Ltd. the name before changed on 3
March 2020 was Shenzhen Capital Co. Ltd.
SZ Energy Group Refers to Shenzhen Energy Group Co. Ltd.
Shenzhen Gas Refers to Shenzhen Gas Group Co. Ltd.Shen Nan Dian Zhongshan Company Refers to Shen Nan Dian (Zhongshan) Electric Power Co. Ltd.
Dongguan Company Refers to
Formerly Shen Nan Dian (Dongguan) Weimei Electric Power Co.
Ltd and changed its name to Dongguan Shenran Natural Gas
Thermal Power Co. Ltd after 70% equity was agreed to transferred
by the Company
Shen Nan Dian Engineering Company Refers to Shenzhen Shennandian Turbine Engineering Technology Co. Ltd.Shen Nan Dian Environment Protection
Company
Refers to Shenzhen Shen Nan Dian Environment Protection Co. Ltd.Server Company Refers to Shenzhen Server Petrochemical Supplying Co. Ltd
New Power Company Refers to Shenzhen New Power Industrial Co. Ltd.Singapore Company Refers to Shen Nan Energy (Singapore) Co. Ltd.Nanshan Power Factory Refers to Nanshan Power Factory of Shenzhen Nanshan Power Co. Ltd.Zhongshan Nanlang Power Plant Refers to
Zhongshan Nanlang Power Plant of Shen Nan Dian (Zhongshan)
Electric Power Co. Ltd.
Dongguan Gaobu Power Plant Refers to
Formerly the Dongguan Gaobu Power Plant of Shen Nan Dian
(Dongguan) Weimei Electric Power Co. Ltd (now renamed as
Dongguan Shenran Natural Gas Thermal Power Co. Ltd)
Audit institution LIXINZHONGLIAN
accounting organ
Refers to
LIXINZHONGLIAN CPAS (SPECIAL GENERAL
PARTNERSHIP)
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
Rules Governing the Listing of Stocks Refers to Rules Governing the Listing of Stocks on Shenzhen Stock Exchange
Articles of Association Refers to Article of Association of Shenzhen Nanshan Power Co. Ltd.
Yuan ten thousand Yuan one hundred million Refers to
Except the special description of the monetary unit the rest of the
monetary unit is RMB Yuan ten thousand Yuanone hundred million
Yuan
Reporting period Refers to 1 January 2020 to 31 December 2020
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Shen Nan Dian A Shen Nan Dian B Stock code 000037 200037
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
Chinese)深圳南山热电股份有限公司
Short form of the Company
(in Chinese)深南电
Foreign name of the Company
(if any)
Shenzhen Nanshan Power Co. Ltd.Legal representative LI XINWEI
Registrations add. No.2097 Yueliangwan Avenue Nanshan District Shenzhen Guangdong Province
Code for registrations add 518054
Offices add. 16/F-17/F Hantang Building OCT Nanshan District Shenzhen Guangdong Province
Codes for office add. 518053
Company’s Internet Web Site http://www.nsrd.com.cn
E-mail public@nspower.com.cn; investor@nspower.com.cn
II. Person/Way to contact
Secretary to the BOD Rep. of security affairs
Name Zhang Jie
Contact add.
16/F-17/F Hantang Building OCT
Nanshan District Shenzhen Guangdong
Province
Tel. 0755-26003611
Fax. 0755-26003684
E-mail investor@nspower.com.cn
III. Information disclosure and preparation place
Newspaper appointed for information disclosure China Securities Journal;Securities Times; Hong Kong Commercial Daily
Website for annual report publish appointed by CSRC http://www.cninfo.com.cn/
Preparation place for annual report Secretariat of the Board of Directors 17/F Hantang Building OCT
Nanshan District Shenzhen Guangdong Province
IV. Registration changes of the Company
Organization code 91440300618815121H
Changes of main business since listing (if
applicable)
N/A
Previous changes of controlling
shareholders (if applicable)
No controlling shareholder
V. Other relevant information
CPA engaged by the Company
Name of CPA LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP)
Offices add. for CPA
1-1-2205-11 North Zone Financial and Trade Center No. 6865 Asia Road Pilot Free Trade
Zones (Dong-jiang Free Trade Port Zone) Tianjin
Signing Accountants Liu Xinfa Cao Wei
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
2020 2019 Changes over last year 2018
Operating income (RMB) 985253831.58 1222577954.53 -19.41% 1884937109.00
Net profit attributable to
shareholders of the listed Company
(RMB)
64024291.32 24900956.73 157.12% 19253766.12
Net profit attributable to
shareholders of the listed Company
after deducting non-recurring gains
and losses (RMB)
7601038.59 14685745.16 -48.24% -13515247.29
Net cash flow arising from
operating activities (RMB)
260725409.02 202943908.61 28.47% 236563160.38
Basic earnings per share
(RMB/Share)
0.1062 0.0413 157.14% 0.0319
Diluted earnings per share
(RMB/Share)
0.1062 0.0413 157.14% 0.0319
Weighted average ROE 3.15% 1.25% 1.90% 0.98%
Year-end of 2020 Year-end of 2019
Changes over end of
last year
Year-end of 2018
Total assets (RMB) 3020830930.06 3219261720.55 -6.16% 3307148289.92
Net assets attributable to
shareholder of listed Company
(RMB)
2054741847.64 2002772808.24 2.59% 1977871851.51
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative and the
audit report of last year shows that the ability to continue operating is uncertain
□Yes √No
The lower one of net profit before and after deducting the non-recurring gains/loses is negative
□Yes √No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB/CNY
First quarter Second quarter Third quarter Fourth quarter
Operating income 228717033.81 289433572.40 286084887.31 181018338.06
Net profit attributable to
shareholders of the listed Company
-14023020.62 66063519.04 76089903.65 -64106110.75
Net profit attributable to
shareholders of the listed Company
-19987886.90 30137617.32 69619698.52 -72168390.35
after deducting non-recurring gains
and losses
Net cash flow arising from
operating activities
22023624.41 47912937.05 140653281.35 50135566.21
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the Company’s quarterly report and semi-annual report
□ Yes √ No
IX. Items and amounts of non-recurring (extraordinary) profit (gains)/loss
√Applicable □ Not applicable
In RMB/CNY
Items 2020 2019 2018 Note
Gains/losses from the disposal of
non-current asset (including the write-off
that accrued for impairment of assets)
-1144118.91 -527109.02
The investment
income obtained from
the sale of 70% equity
of Dongguan
Company
Governmental subsidy calculated into
current gains and losses(while closely
related with the normal business of the
Company excluding the fixed-amount or
fixed-proportion governmental subsidy
according to the unified national standard)
13833445.53 6402848.81 5124971.79
Receive
unemployment
insurance premium
refunds and
apportionment of
government subsidies
related to assets
Gains/losses of debt restructuring 7593783.90
Revert other payable
that are not required to
be paid
Gains/losses arising from contingency that
without relation with the normal operation
business of the Company
6584816.78
Reversal of the
accrual liabilities
Switch back of the impairment for
receivables and contract assets that has
impairment test independently
12000.00
Other non-operating income and expenditure
except for the aforementioned items
-118229.62 5578877.22 37044913.53
Other gains/losses items that meets the
definition of non-recurring gains/losses
33534881.55
Income from disposal
of the 70% equity of
Dongguan Company
in the Year
Less: impact on income tax 152683.61 195823.19 6525056.89
Impact on minority shareholders’
equity (post-tax)
3708642.89 1055582.25 2875815.02
Total 56423252.73 10215211.57 32769013.41 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss explain reasons
□ Applicable √ Not applicable
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss the Company has no such items in the reporting period for the aforesaid
Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
The Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on Shenzhen
Stock Exchange No.15- Listed Companies are Engaged in Electricity-related Business
The company is specialized in power and thermal supply as well as providing technical consulting and technical services for power
stations. At the end of reporting period the Company holds two wholly-owned and holding gas turbine plants which equipped with
five sets of 9E gas steam combined cycle power generating units with total installed capacity up to 900000 KW (Nanshan Power
Factory: 3×180000KW Zhongshan Nanlang Power Plant: 2×180000KW).The two gas turbine plants are located in the power-load
center of the Pearl River Delta and it is the main peak-regulating power supply in the region which is currently in normal production
and operation state.
During the reporting period the company's main power business faced many difficulties such as the spread of the COVID-19
epidemic the reduction of the benchmark electricity price on the grid and the further increase of the electricity market transaction
electricity sold below the benchmark electricity price on the grid. In order to minimize the negative impact of the external
environment on the company’s business performance the company has implemented a series of business layout and management
changes with innovative thinking and perseverance clarified annual business objectives and policies and adopted targeted major
measures. On the basis of safety production management we have continuously strengthened economic operation management and
conformed to the trend of accelerating the process of power market reform in Guangdong Province. We organized two subordinate
power plants to actively participate in the marketing competition and achieved good results which created favorable conditions for
achieving the goal of operating profitability. In 2020 the two subordinate power plants totally completed electricity quantity (on-grid
electricity quantity + electricity marketing quantity) of 2.127 billion KWHthe actual on-grid electricity quantity of 874 million KWH
and electricity marketing quantity of 1.253 billion KWH.Completion of the electricity for subordinate power plants are as: Nanshan
Power Factory completed 761 million KWH of on-grid electricity and electricity marketing quantity of 379 million KWHthe full
electricity quantity totaled 1.14 billion KWH;Zhongshan Nanlang Power Plant completed 113 million KWH of on-grid electricity
and electricity marketing quantity of 874 million KWHthe full electricity quantity totaled 987 million KWH.
During the reporting period the company not only strive to improve the operating efficiency of its main business of electric power
but also made great efforts to the operation and expansion of related businesses.The subordinate Shen Nan Dian Engineering
Company continued to develop the technical consultation and technology service business for the construction of domestic and
international gas turbine power stations. Shen Nan Dian Environmental Protection Company engaged in the drying treatment of wet
sludge in sewage treatment plants by utilizing the waste heat generated by gas turbines and the annual processing capacity of wet
sludge was 132600 tons which realized the reduction and harmless treatment of sludge and the comprehensive utilization of
resources.II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets
Equity assets have 20.30% increased mainly due to the outbound investment for Zhuhai Hengqin Zhuozhi
Investment Partnership (Limited Partnership) during the reporting period
Fixed assets
Fixed assets have 33.00% declined mainly due to the sale of 70% equity of Dongguan Company in the reporting
period and Dongguan Company was no longer included in consolidate scope at period-end.Intangible assets
Intangible assets have 51.55% declined mainly due to the sale of 70% equity of Dongguan Company in the
reporting period and Dongguan Company was no longer included in consolidate scope at period-end.
Construction in
process
Construction in process has 35.64% declined mainly due to the sale of 70% equity of Dongguan Company in the
reporting period and Dongguan Company was no longer included in consolidate scope at period-end; and the
accrual of assets impairment for cogeneration project.
Account
receivable
Account receivable has 52.12% declined mainly due to the sale of 70% equity of Dongguan Company in the
reporting period and Dongguan Company was no longer included in consolidate scope at period-end.
Account paid in
advance
Account paid in advance has 57.80% declined mainly due to the sale of 70% equity of Dongguan Company in
the reporting period and Dongguan Company was no longer included in consolidate scope at period-end.Other current
assets
Other current assets have 106.02% increased mainly due to the increase in purchasing financial products during
the Period.
Account payable Account payable has 53.17% declined mainly due to the payable for natural gas.
Tax payable
Tax payable has 64.97% declined mainly due to the sale of 70% equity of Dongguan Company in the reporting
period and Dongguan Company was no longer included in consolidate scope at period-end.Other account
payable
Other account payable has 38.16% declined mainly due to the sale of 70% equity of Dongguan Company in the
reporting period and Dongguan Company was no longer included in consolidate scope at period-end.
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
In recent years due to the impact of the macroeconomic situation and the common problems of gas turbine generating industry the
Company’s main business has been facing increasing difficulties and challenges.However the basic core competitiveness formed by
the operation and development for three decades and thanks to the strong support from major shareholders and the management
innovations adopted by new session of the Board and leading group it has laid a necessary foundation for the Company to survive
and seeking transformation and development. During the reporting period the company's core competitiveness has not undergone
major changes and all competitiveness elements have developed in a balanced manner. The company's overall competitiveness has
been further consolidated and improved and there have been no major changes that may affect the company's future operations.1. A mature and completed governance structure & a rigorous and standardized risk-control mechanism.As a listed company with
over 20-year baptism in securities market on the main board the Company has been strictly in accordance with the Company Law
Securities Laws Rules Governing the Listing of Stocks and relevant requirements of laws and regulations of the CSRC and
Shenzhen Stock Exchange and continuously improved the corporate governance and regulated the operation. The “Three Meetings”
operation was normative and efficient and the internal management was streamlined and orderly. Meanwhile the Company
continuously reinforcing the supervision and auditing role on standard operation and internal control of the listed company played by
supervisory committee and auditing authority; effectively prevent and avoid the risks while improving the management and
decision-making efficiency.
2. Hard-working and innovative management culture and pragmatic and efficient operating mechanism. Combining its own actual
situationthe Company has broken the barriers of the original traditional business model and greatly improved the decision-making
efficiency and work performance by establishing four major operation and management centers including a power sales center a
fuel center a financial center and an information center innovating the management model of production coordination and safety
supervision and effectively integrating business resources; the Company set up a capital (operation) center and set up an
accounting sharing center to comprehensively balance the improvement of production operation and management efficiency; and
establish a science & technology innovation committee with purpose of stimulating the enthusiasm of majority of the employees to
study technology improve themselves and innovate continuously the supervision and management of production technology have
achieved a new step. While the Company built an efficient operating mechanism the leadership team served as role models
combined a series of effective management measures such as deepening human resources reform and the "military order" assessment
mechanism advocated and built the management culture of unity hard work innovation and enterprise throughout the Company
which laid a good management foundation for the Company to deeply explore its internal potential and actively seek external
opportunities.
3. A loyal and dedicated management team & professional and progressive technical personnel. With more than 30 years of hard
work and the company’s influence in the gas turbine power generation industry and the Company’s pioneering and innovative spirit
and enterprising spirit the Company has absorbed and trained a group of technical experts and professionals in the gas turbine
industry accumulated rich experience in the construction and operation management of gas turbine power plants.In order to adapt to
the market situation of the further propulsion of the electricity trading market-oriented reform in Guangdong Province the Company
formed a team of professionals to study the electricity trading strategy and build a mathematical model of electricity trading. It
accumulated rich experience in electricity marketing which laid a solid foundation for the Company to actively respond to the
electricity market reform.Further more Shen Nan Dian Engineering Company has provided professional services such as technical
consulting commissioning and maintenance for dozens of domestic and international gas turbine power stations. The Company's
training center has successively undertaken the technician training business for tens of power plants at home and abroad and has
become a renowned professional training base in the domestic gas turbine industry and has established a good reputation and
professional brand image in the industry.The Company also has a group of management talents with innovative consciousness and
fighting spirit based on the principle of being highly responsible to the Company they lead all employees to make unremitting
efforts for the Company’s continuous operation and transformation development.Section IV. Discussion and Analysis of the Operation
I. Introduction
2020 marks the 40th anniversary of the establishment of the Shenzhen Special Economic Zone and is the final year of the "13th
Five-Year Plan" and also an extraordinary year. Facing the severe test brought by the COVID-19 epidemic and the complex and
changeable domestic and foreign environment under the strong leadership of the Party Central Committee with Comrade Xi Jinping
at the core the whole country has coordinated the promotion of epidemic prevention and control and the economic and social
development work the situation of epidemic prevention and control has continued to improve and economic operations have been
steadily recovering. The power industry has resolutely implemented the decisions and deployments of the Party Central Committee
and the State Council to provide a solid power guarantee for the prevention and control of the epidemic and the resumption of work
production business and market resumption of the entire society. Faced with the double test of the impact of the epidemic and the
industry situation the company forged ahead against the trend strictly implemented the deployment and requirements of
governments at all levels and higher-level units conscientiously implemented epidemic prevention and control at the same time
overcame difficulties to do a good job in production and operation management and went all out to minimize the negative impact of
the epidemic on the company. After the full resumption of work and production the company has stepped up efforts to focus on safe
production stock operation and transformation development. Under the premise of ensuring safety and epidemic prevention and
control the company has achieved good results in all aspects of production operation and management.
After the test of the epidemic at the beginning of the year the social economy continued to recover and the electricity consumption
and power load of the whole society in Guangdong Province continued to grow. In 2020 the total electricity consumption of the
whole society in Guangdong Province was 692.6 billion kWh an increase of 3.44% on a year-on-year basis (data from China Electric
Power News); the total electricity consumption of Shenzhen was 98.3 billion kWh a year-on-year increase of 1.06% (data from
Shenzhen Power Supply Bureau) which hit a new high. The company's subordinate Nanshan Power Factory and Zhongshan Nanlang
Power Plant actually completed 874 million kilowatt-hours of on-grid power an increase of 13.4% on a year-on-year basis; the
average annual utilization hours of the generator sets of the two power plants were 986 hours and the average annual plant power
consumption rate was 3.43%. In 2020 the full-process operation of the Guangdong Power Spot Market continued to advance and the
scale of market-based electricity trading continued to expand with a total of 248.9 billion kWh of transactions a year-on-year
increase of 30% (data from the website of Guangdong Power Exchange Center). During the reporting period Nanshan Power Factory
and Zhongshan Nanlang Power Plant signed a total of 1.529 billion kWh of bilateral negotiated contracts for 2020 a year-on-year
increase of 35.91%; the two power plants sold a total of 803 million kWh of electricity a year-on-year decrease of 1.56%.
During the reporting period the company continued to take the "1+5" strategic road map as the guide and made every effort to
promote the implementation of the "125" project. For the company's normal operation and sustainable development the company
worked hard to move forward effectively did a good job in the epidemic prevention and control and the safe production
simultaneously advanced stock operation and transformation development ensured the safety and health of all employees and
all-round safety and order and achieved historic performance breakthroughs and gratifying work progress. The main work carried
out during the reporting period was as follows:
1. Complementary resources and strategic cooperation for mutual development. After comprehensive analysis and prudential
research and judgment the company transferred 70% of its equity in Dongguan Company to Shenzhen Gas Corporation which laid
the foundation for obtaining favorable resource support while revitalizing the company’s stock assets and reducing the company’s
operating pressure through state-owned asset coordination and resource complementarity the company strive to achieve a deep
connection between high-quality resources and high-quality markets enhance the overall competitiveness of both parties in their
respective fields and maximize the benefits.
2. Strict supervision safety and environmental protection reaching the standards. The company actively overcame the adverse effects
of the COVID-19 epidemic strictly implemented the security principal responsibility at all levels and the safety responsibility system
for all employees consolidated the basis for safety production established and completed a series of safety index management and
production guarantee systems continued to improve safety culture and strengthened the risk management and control and the
construction of hidden danger investigation and treatment and the safety work situation continued to improve. During the reporting
period the company completed various pollution reduction tasks no environmental pollution accidents occurred and no safety
production liability accidents occurred.
3. In-depth study and refined calculation and scientific marketing for achieving good results. The company conducted in-depth
research on power market marketing strategies and competition methods strived to seize market opportunities actively strived for
economic power share and obtained competitive advantages through superlative operations and maximized economic benefits
meanwhile reasonably arranged units for power generation and production according to changes in gas prices and scheduling
requirements and created good operating income.
4. Continuous innovation production management for promoting operation. The company closely focused on the core objectives of
the annual operation and continuously adjusted and optimized the production management mode which further improved the safety
and reliability of the operation of production equipment. At the same time the company established the Science and Technology
Innovation Committee to create a good atmosphere for scientific and technological innovation so as to further motivate employees to
study technology improve themselves and continuously innovate and help improve the company's stock asset production and
operation performance.
5. Turn crises into opportunities and diversify operations to create benefits. Shennandian Environmental Protection Company always
adhered to the concept of environmental protection and actively fulfilled its social responsibilities. It treated approximately 132600
tons of wet sludge throughout the year making positive contributions to the "Bluer Sky and Clearer Water" project in the Greater
Bay Area; Shennandian Engineering Company overcame huge difficulties took effective measures to strictly implement the
epidemic prevention and control of overseas engineering projects to ensure the safety and health of the expatriate employees. At the
same time it adjusted its business strategy in a timely manner actively explored the domestic technical service market and achieved
good results.
6. Intensive cultivation decreasing costs and increasing efficiency to solve problems. In order to strengthen capital management and
ensure capital safety the company adopted a series of measures such as the overall management of capital in the system the increaseof the proportion of structural deposit funds and the replacement of high-interest loans with low-interest loans through the “sharedcapital pool” in the operating system to improve the use efficiency and profitability of own funds which reduced capital costs saved
financial expenses and provided necessary capital reserves for the company’s capital operations. At the same time the company
established a capital (operation) center and an accounting sharing center to further improve capital operations and financial
management efficiency so that financial accounting and management were further integrated into the company’s strategic
transformation and decision-making in various industrial chains.7. Improve the position and actively fight against the epidemic. The company’s party committee adhered to the guidance of socialism
with Chinese characteristics in Xi Jinping’s new era and promoted the deep integration of party building and company management.
After the outbreak of the COVID-19 epidemic the company's party committee mobilized all employees to fight against the epidemic
and prevent the epidemic in accordance with the requirements of the party committee of the higher level and the company and
encouraged party members to play a pioneering and exemplary role. The main leaders of the company were on duty throughout the
entire process dynamically grasped the situation of the epidemic and made timely work decisions. After the epidemic prevention and
control entering the normalization stage the company’s special epidemic prevention and control agencies at all levels have continued
to perform their duties efficiently coordinate and strictly implement the national and local government's epidemic prevention and
control work deployment to ensure the continuous and orderly progress of the epidemic prevention and control work. During the
reporting period there were no confirmed cases suspected cases or asymptomatic infections of the COVID-19 in all units
enterprises and employees dispatched to overseas project sites in the company's system.In the year of 2020 the Company has achieved a revenue in operation of 985 million Yuan the net profit attributable to shareholder
of listed company amounted as 64.0243 million Yuan and basic EPS was 0.11 Yuan.The Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on Shenzhen
Stock Exchange No.15- Listed Companies are Engaged in Electricity-related Business
Main production
Item
Current period
(Dongguan Gaobu Power
Plant excluded)
Same period last year
(Dongguan Gaobu Power
Plant excluded)
Same period last year
(Dongguan Gaobu Power
Plant included)
Gross installed capacity (10000 kilowatts) 90 90 126
Installed capacity of newly commissioned
units (10000 kilowatts)
0
0
0
Planned installed capacity of approved
projects (10000 kilowatts)
0
0
0
Planned installed capacity of projects
under construction (10000 kilowatts)
0
0
0
Generating capacity (100 million KWH) 8.87 7.88 15.08
On-grid electricity or electricity sales (100
million KWH)
8.74
7.71
14.83
Average on-grid tariff or sales price
(RMB/KWH tax included)
0.6213
0.6410
0.6393
Average rate of electricity consumption
from power station(%)
3.43
3.46
3.12
Utilization time from power station (Hours) 986 876 1197
II. Main business analysis
1. Introduction
Found more in I. Introduction in Discussion and Analysis of the Operation
2. Revenue and cost
(1) Constitute of operation revenue
In RMB/CNY
2020 2019
Increase/decrease
y-o-y Amount
Ratio in operation
revenue
Amount
Ratio in operation
revenue
Total operation
revenue
985253831.58 100% 1222577954.53 100% -19.41%
Industry classification
Energy industry 878600297.92 89.18% 1082001858.50 88.50% -18.80%
Engineering
service
41094571.29 4.17% 62635550.65 5.12% -34.39%
Sludge drying 62789507.95 6.37% 70420653.67 5.76% -10.84%
Other business 2769454.42 0.28% 7519891.71 0.62% -63.17%
Product classification
Electricity sales 878600297.92 89.18% 1082001858.50 88.50% -18.80%
Engineering
service
41094571.29 4.17% 62635550.65 5.12% -34.39%
Sludge drying 62789507.95 6.37% 70420653.67 5.76% -10.84%
Other business 2769454.42 0.28% 7519891.71 0.62% -63.17%
Region classification
Domestic 985253831.58 100.00% 1222577954.53 100.00% -19.41%
overseas
(2) The industries products or regions accounting for over 10% of the Company’s operating income or
operating profit
√Applicable □ Not applicable
The Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on Shenzhen
Stock Exchange No.15- Listed Companies are Engaged in Electricity-related Business
In RMB/CNY
Operating
revenue
Operating cost Gross profit ratio
Increase/decrease
of operating
revenue y-o-y
Increase/decrease
of operating cost
y-o-y
Increase/decrease
of gross profit
ratio y-o-y
Product classification
Electricity sales 878600297.92 724649204.65 17.52% -18.80% -25.26% 68.53%
Engineering
service
41094571.29 28587448.80 30.43% -34.39% -35.71% 4.92%
Sludge drying 62789507.95 41089819.34 34.56% -10.84% -12.82% 4.51%
Region classification
Domestic 982484377.16 794326472.79 19.15% -19.14% -25.14% 51.15%
Reasons for great changes in relevant financial indicators
√ Applicable□Not applicable
The reason for the increase in gross profit ratio in 2020 over the same period last year is: trading electricity volume and the price
difference increased and the trading electricity revenue increased; reduce of the unit price of natural gas than the cost of natural gas
declined.
(3) Income from physical sales larger than income from labors
√ Yes □ No
Industries Item Unit 2020 2019
Increase/decrease
y-o-y
Electric Power
Sales volume 100 million KWH 8.74 7.71 13.36%
Output 100 million KWH 8.87 7.88 12.56%
Storage 100 million KWH 0 0
Reasons for y-o-y relevant data with over 30% changes
□Applicable √Not applicable
Note: 1. the difference between output and sales volume refers to the consumption by plants; 2. in 2020 the Company sold 70%
equity of Dongguan Company and Dongguan Company no longer included in the consolidate scope at end of the Period the data in
the above table does not include the Dongguan Company.
(4) Performance of the material sales contract signed by the Company up to the reporting period
□ Applicable √Not applicable
(5) Constitute of operation cost
Industry and products classification
In RMB/CNY
Industries Item 2020 2019 Increase/decrease
Amount
Ratio in operation
cost
Amount
Ratio in operation
cost
y-o-y
Energy industry
Power heat
supply
724649204.65 91.21% 969503809.30 91.30% -25.26%
Engineering
service
Engineering cost 28587448.80 3.60% 44467064.24 4.19% -35.71%
Other business
Sludge drying
etc.
41287156.94 5.20% 47945840.31 4.52% -13.89%
In RMB/CNY
Products Item
2020 2019
Increase/decrease
y-o-y Amount
Ratio in operation
cost
Amount
Ratio in operation
cost
Electricity sales Power supplying 724649204.65 91.21% 969503809.30 91.30% -25.26%
Engineering
service
Engineering cost 28587448.80 3.60% 44467064.24 4.19% -35.71%
Sludge drying Sludge treatment 41089819.34 5.17% 47133619.81 4.44% -12.82%
Other business Other 197337.60 0.02% 812220.50 0.08% -75.70%
(6) Changes in the scope of consolidation in Reporting Period
√Yes □No
During the reporting period 70% equity of Dongguan Company held by the Company are sold Dongguan Company was no longer
included in the consolidate scope at end of the Period.
During the reporting period the Company and China Science and Tech Innovation Venture Capital Management co-sponsor the
establishment of Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) with 99.9643% shares held by the Company
and included in consolidate scope of the Company in 2020.
(7) Major changes or adjustment in business product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 965521314.34
Proportion in total annual sales volume for top five clients 97.99%
Proportion in total annual sales for the related party’s
sales in top five clients’ sales
0.00%
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Shenzhen Power Supply Bureau Co. Ltd. 466123345.95 47.31%
2 Guangdong Power Grid Co. Ltd. 406928606.04 41.30%
3 Shenzhen Municipal Water Affairs Bureau 50393340.02 5.11%
4 China Machinery Engineering Corporation 29679854.40 3.01%
5 Shenzhen Water Group 12396167.93 1.26%
Total -- 965521314.34 97.99%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 486376291.21
Proportion in total annual purchase amount for top five
suppliers
81.60%
Proportion in total annual purchase amount for the related
party’s amount in top five suppliers
2.10%
Information of top five suppliers of the Company
Serial Name Purchases (RMB) Proportion in total annual purchases
1 Shenzhen Gas Group Co. Ltd. 397500609.59 66.70%
2 CNOOC Gas Power Group Co. Ltd. 43219844.71 7.25%
3
Shenzhen Energy Gas Investment Holding
Co. Ltd.
31369620.55 5.26%
4 Shenzhen Power Supply Bureau 7706496.74 1.29%
5 Shenyang LSE Power Service Co. Ltd. 6579719.62 1.10%
Total -- 486376291.21 81.60%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
3. Expenses
In RMB/CNY
2020 2019
Increase/decrease
y-o-y
Note of major changes
Sales expense 4979915.34 5599305.43 -11.06%
Decreased due to the cost of dry sludge
treatment from Shen Nan Dian
Environment Protection Company
declined
Management expense 111618225.09 109541900.18 1.90%
Financial expense -66657.96 22310708.04 -100.30%
Decreased due to the loan rate declined
and financial gains increased
R&D expense 8490882.58 0
Increased due to the new technology
R&D costs from Shen Nan Dian
Environment Protection Company and
Shen Nan Dian Engineering Company
4. R&D expenses
√Applicable □√ Not applicable
Investment of R&D
2020 2019 Change proportion
Number of R&D personnel
(person)
35 0
Proportion of R&D personnel 8.68% -
Investment for R&D (RMB) 8490882.58 0
R&D investment/Operating
income
0.86% -
Capitalization of R&D
investment (RMB)
0 0-
Capitalization of R&D
investment/R&D investment
- -
Reasons for significant changes in the proportion of total R&D investment in operating income from the previous year
√Applicable □√ Not applicable
A new project in the Year and no investment of R&D in 2019.
Reasons and rationality of the major changes of the capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash flow
In RMB/CNY
Item 2020 2019 Y-o-y changes
Subtotal of cash in-flow from
operation activity
1156114679.30 1413997516.01 -18.24%
Subtotal of cash out-flow from
operation activity
895389270.28 1211053607.40 -26.07%
Net cash flow from operation
activity
260725409.02 202943908.61 28.47%
Subtotal of cash in-flow from
investment activity
40321341.78 35486018.97 13.63%
Subtotal of cash out-flow from
investment activity
528860991.95 193242132.78 173.68%
Net cash flow from investment
activity
-488539650.17 -157756113.81 209.68%
Subtotal of cash in-flow from
financing activity
1318118917.79 1465170000.00 -10.04%
Subtotal of cash out-flow from
financing activity
1096793475.57 1653932661.32 -33.69%
Net cash flow from financing
activity
221325442.22 -188762661.32 -217.25%
Net increased amount of cash
and cash equivalent
-6888728.75 -143466610.74 -95.20%
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
1. Cash out-flow from operation activity has 26.07% declined over that of last year mainly due to the reduction of electricity
generation and procurement for natural gas decreased for the falling unit price;
2. Net cash flow from operation activity has 28.47%up from a year earlier mainly because the gross profit of power generation
increased and the VAT and surcharge paid in the Period decreased;
3. Cash out-flow from investment activity has an increase of 173.68%on a y-o-y basis mainly because purchasing more financial
products in the year;
4. The cash out-flow from investment activity has an increase of 209.68% on a y-o-y basis mainly because purchasing more
financial products in the year;
5. The cash out-flow from financing activity has a decrease of 33.69% on a y-o-y basis mainly because the loans pay to the bank
declined in the year;
6. The net cash in-flow from financing activity has an increase of 217.25% on a y-o-y basis mainly because the loans pay to the bank
declined in the year;
7. Net out-flow amount of cash and cash equivalent has a decrease of 95.20% on a y-o-y basis mainly because increase of the net
cash arising from operating and financing activities are larger than the net amount arising from investment activities.
Explanation on reasons for the significant differences between the net cash flow arising from operation activities in the Period and
net profit of last year
□ Applicable √ Not applicable
III. Analysis of the non-main business
√Applicable □ Not applicable
In RMB/CNY
Amount Ratio in total profit Note Whether be sustainable (Y/N)
Investment income 27809087.38 40.14%
Income from disposal of the
70% equity of Dongguan
Company
N
Gains/losses of fair
value changes
0.00%
Assets impairment -43718679.38 -63.10%
Inventory depreciation
impairment of fixed assets
and construction in progress
are accrual in the Year
N
Non-operating
income
6585316.78 9.50%
Reversal of the accrual
liabilities
N
Non-operating
expenditure
153719.62 0.22% The overdue fine N
IV. Assets and liability
1. Major changes of assets composition
Adjust relevant items of financial statements at the year of fist implementation of the new revenue standards or
new leasing standards since 2020
Applicable
In RMB/CNY
Year-end of 2020 Year-begin of 2020
Ratio
changes
Notes of major changes
Amount
Ratio in total
assets
Amount
Ratio in total
assets
Monetary fund 764601272.21 25.31% 773209854.84 24.02% 1.29%
Account
receivable
85293052.88 2.82% 177310433.51 5.51% -2.69%
Inventory 100245529.06 3.32% 124686443.61 3.87% -0.55%
Investment real
estate
2205189.40 0.07% 2401327.00 0.07% 0.00%
Long-term equity
investment
8893408.86 0.29% 14619203.03 0.45% -0.16%
The long-term equity investment
measured by equity was recognized
as the investment income
Fix assets 925745208.55 30.65%
1381675872.
68
42.92% -12.27%
Equity of Dongguan Company was
transferred in the Year which was
not included in the consolidate
scope
Construction in
process
42782712.98 1.42% 66474630.23 2.06% -0.64%
Short-term loans 675528858.48 22.36% 881075378.48 27.37% -5.01% Bank loans declined
Other current
assets
917288244.54 30.37% 445236731.33 13.83% 16.54%
Purchase of the financial products
increased
2. Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB/CNY
Item
Opening
amount
Gain/loss of
fair value
changes in
the Period
Cumulative
change of fair
value
recorded into
equity
Impairmen
t accrual in
the Period
Amount
purchased in
the Period
Amount
sold in the
Period
Other
changes
Ending amount
Other equity
instrument
investment
60615000.00 21000000.00 81615000.00
Other changes
Whether there is a significant changes in the measurement attributes of the main assets during the period
□Yes √No
3. Assets right restriction till end of reporting period
There are no assets right restriction till end of the reporting period
V. Investment
1. Overall situation
√ Applicable □Not applicable
Investment amount in the Period (RMB)
Investment amount at same period last year
(RMB)
Changes (+-)
21272400.00 0.00 --
2. The major equity investment obtained in the reporting period
√ Applicable □Not applicable
In RMB
Investe Main Form Invest Shareh Capita Partner Time Type Progres Antic Invest With Disclo Disclosure index (if
d
compan
y
busin
ess
of
invest
ment
ment
amoun
t
olding
ratio
l
source
horizo
n
s as of
the
balance
sheet
date
ipate
d
inco
me
ment
gains/l
osses
in the
Period
lawsui
t
involv
ed
(Y/N)
sure
date
(if
any)
any)
Zhuhai
Hengqi
n
Zhuozh
i
Invest
ment
Partner
ship
(Limite
d
Partner
ship)
Equit
y
invest
ment
ventu
re
capita
l
Newly
esta
blis
hed
Plans
to inv
ested
280 m
illion
yuan
99.96
%
Own
fund
China
Science
and
Tech
Innovati
on
Venture
Capital
Manage
ment
5-year
Limi
ted
partn
ershi
p
21272
400.00
Yuan
has
investe
d
Not
appli
cable
-7760
9.46
N
Notice on the
Investment for
Zhuhai Hengqin
Zhuozhi Investment
Partnership (Limited
Partnership)
; Notice No.:
2020-051 released
on China Securities
Journal Securities
Times Hong Kong
Commercial Daily
and Juchao Website
Total -- --
Plans
to
investe
d 280
millio
n yuan
-- -- -- -- -- --
-7760
9.46
-- -- --
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company had no derivatives investment in the reporting period.26
5.Use of proceeds
□ Applicable √ Not applicable
The Company had no use of proceeds in the reporting period.VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
√Applicable □Not applicable
Counter
part
Assets
sold
Sales
day
Trading
price
(10
thousan
d Yuan)
Net
profit
contribu
ted by
the sold
assets
from
period-b
egin to
date for
sales (in
10
thousan
d Yuan)
Impact
on the
Compan
y
Ratio of
the net
profit
from
equity
sales
in total
net
profit of
the
Compan
y
Pricing
principa
l
Whether
it was a
related
transacti
on
(Y/N)
Relation
ship
with the
counter
party
Owners
hip
transferr
ed
complet
ely or
not
(Y/N)
Implem
ented on
schedul
e (Y/N)
explaine
d the
reasons
and
counter
measure
for not
complet
ed on
schedul
e
Disclos
ure day
Disclos
ure
index
Shenzhe
n Gas
Group
Co.
Ltd.
70%
equity
of
Donggu
an
Compan
y(40%
equity
held
directly
by the
Compan
-09
10498 -445.29
The
transacti
on is
conducti
ve to
revitaliz
ing the
Compan
y’s
stock
assets
reducin
52.38%
Pricing
principl
e in the
agreeme
nt is that
the
negotiat
ed
transfer
price of
underlyi
ng
N
Not
applicab
le
Y Y
-04
Notice
on
Complet
ion of
the 70%
Equity
of Shen
Nan
Dian
(Dongg
uan)
Weimei
27
y and
30%
equity
held
through
wholly-
owned
subsidia
ry
Syndiso
me
Compan
y
indirectl
y)
g the
operatin
g
pressure
increasi
ng
current
earnings
of the
Compan
y and
promoti
ng the
realizati
on of
the
strategic
transfor
mation
goals.assets
(70%
equity
of
Donggu
an
Compan
y )is
higher
than the
appraisa
l value
of the
underlyi
ng
assets
issued
by
Watson
(Beijing
)
Internati
onal
Assets
Apprais
al Co.
Ltd.
Electric
Power
Co.
Ltd.Transfer
red
Notice
No.:
2;
released
on
China
Securiti
es
Journal
Securiti
es
Times
Hong
Kong
Comme
rcial
Daily
and
Juchao
Website.VII. Analysis of main Holding Company and stock-jointly companies
√Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB/CNY
Name Type Main business
Register
capital
Total assets Net assets
Operating
revenue
Operating
profit
Net profit
Shenzhen
New Power
Industrial
Co. Ltd.
Subsidiar
y
Technology development
regarding to application of
remaining heat (excluding
restricted items) and power
generation with remaining
heat. Add: power
generation through burning
machines.
RMB 113.85
million
195234505.
69
159023218.
72
156442406.
36
3519904
.17
3490204.
17
28
Shenzhen
Shen Nan
Dian
Environmen
t Protection
Co. Ltd.
Subsidiar
y
Sludge drying; the design
and operations
management of sludge
treatment and disposal
facilities and engineering;
the technology
development technology
transfer technical advice
technical services of
environmental pollution
control and comprehensive
utilization domain; (Except
for the projects required to
be approved before
registration by laws
administrative regulations
or decisions and stipulation
of the State Council the
restricted items must be
approved before operating)
RMB 79
million
148046485.
51
122151647.
08
62813507.9
5
-148357
7.30
-2844281
.20
Shenzhen
Shennandian
Turbine
Engineering
Technology
Co. Ltd.
Subsidiar
y
Engage in the technical
advisory service for the
construction projects of
gas-steam combined cycle
power plant (station) and
undertake the maintenance
and overhaul of the
operation equipment of
gas-steam combined cycle
power plant (station).Import and export of goods
and technologies
(excluding distribution and
state monopoly
commodities)
RMB 10
million
50955994.7
2
37483831.9
5
41094571.2
9
1433736
.83
1433736.
83
Shenzhen
Server
Petrochemic
al Supplying
Co. Ltd
Subsidiar
y
Self-supporting or import
agent business of fuel oil;
trade (excluding
production and storage and
transportation) in diesel
lubricating oil liquefied
petroleum gas natural gas
compressed gas and
liquefied gas chemical
RMB 53.3
million
114126886.
29
91077053.1
2
1186761.96
-913464
0.31
-2658553
.15
29
products (excluding
dangerous chemicals);
investment construction
and technical supports in
liquefied petroleum gas
natural gas and related
facilities; import and
export businesses and
domestic trade of goods
and technologies
(excluding franchise
exclusive control and
monopoly products);
leasing business. Licensed
projects: fuel oil
warehousing business
(except for refined oil);
general freight transport
special transportation of
goods (containers) special
transportation of goods
(tank)
Shen Nan
Dian
(Zhongshan)
Electric
Power Co.Ltd.Subsidiar
y
Gas turbine power
generation waste heat
power generation power
supply and heating(heating
pipe network excluded)
leasing of wharf oil depots
and power equipment
felicities (excluding refined
oil dangerous chemicals
or flammable and
explosive goods); leasing
of land-use right;
non-residential real estate
leasing
RMB 746.8
million
550680597.
89
-58648065.
13
202539109.
51
3570072
2.96
35690722
.96
Shen Nan
Energy
(Singapore)
Co. Ltd.
Subsidiar
y
Agent for oils trade and
spare parts of gas turbine
US $ 0.9
million
138242374.
33
135664163.
76
0.00
-119593
63.97
-1195936
3.97
Zhuhai
Hengqin
Subsidiar
y
Equity investment venture
capital
RMB
21.358
21282423.3
3
21280423.3
3
0.00
-77609.4
6
-77609.46
30
Zhuozhi
Investment
Partnership
(Limited
Partnership)
million
Subsidiary disposes and acquired in the period
√ Applicable □ Not applicable
Company name
Way acquired and disposed in reporting
period
Impact on overall production operation
and performance
Shen Nan Dian (Dongguan) Weimei
Electric Power Co. Ltd (named as
Dongguan Shenran Natural Gas Thermal
Power Co. Ltd after transferred)
Transfer the 70% equity of Dongguan
Company directly and indirectly held by
the Company by agreement
The transaction is conductive to
revitalizing the Company’s stock assets
reducing the operating pressure and
achieving the income from equity transfer
Statement of main holding company and stock-jointly companies
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
(i) Brief analysis of macroeconomic situation and industry trends
2021 is the first year of the 14th Five-Year Plan and the year serving as a connecting link between the "two century" goals. It is of
special importance in the process of our country's modernization drive. The Central Economic Work Conference held at the end of
last year and the "Government Work Report" reviewed and approved at the Fourth Session of the 13th National People's Congress in
March this year set the general tone for the work of adhering to making steady progress while clarifying that 2021 will be based on a
new stage of development implement the new development concept accelerate the construction of a new development pattern in
which the domestic big cycle is the main body and the domestic and international double cycles promote each other taking the
promotion of high-quality development as the theme deepening the supply-side structural reform as the main line and taking reform
and innovation as the fundamental driving force so as to consolidate and expand the results of epidemic prevention and control and
economic and social development. While doing a good job in the prevention and control of the epidemic in 2021 we will focus on
maintaining the continuity stability and sustainability of macroeconomic policies and promoting economic operations within a
reasonable range. Looking forward to the 14th Five-Year Plan period our country will promote the establishment of a high-standard
market economy a high-level open economy and a high-efficiency governance system accelerate the transformation of modes
adjustment of structure and change of power strengthen the ability to prevent and resolve major risks and promote the rapid
transition of the economy to high-quality development track speed up the construction of a new "dual cycle" development pattern
and make a good start for the comprehensive construction of a modern socialist country in an all-round way. As the core city of the
Guangdong-Hong Kong-Macao Greater Bay Area Shenzhen will usher in historic opportunities and challenges of reform innovationand high-quality development under the guidance and drive of the country’s 14th Five-Year Plan strategy of “optimizing regionaleconomic layout promoting coordinated development of all regions and solidly promoting the construction of the Guangdong-HongKong-Macao Greater Bay Area”.The power industry is the lifeblood of economic development. With the opening of the overall situation for the implementation of the
14th Five-Year Plan under the industry background of continuing to promote quality efficiency and power changes and on the
basis of expanding domestic demand green development and innovation drive will become a new development model and
opportunity for power companies. In recent years the power industry in Guangdong Province has shown a new development trend of
continuous optimization of the energy structure and continuous innovation and upgrading of the development of the energy industry
opportunities and challenges for industry development coexist. With the continuous advancement of the market-oriented reform
process of electricity trading traditional power generation companies will face a more complex market environment and a more
fierce competitive landscape.
According to the "Notice of the Energy Bureau of Guangdong Province on Issuing the Guidance Plan for the Base Quantity of
Generating Units in 2021" (YNDLH [2020] No. 650) in 2021 the whole province’s total electricity consumption is expected to be
720.6 billion kWh an increase of 5.0%; unified purchase of electricity demand of 684 billion kWh an increase of 4.9%; unified
adjustment of the highest load of 138 million kW an increase of 8.8%; the planned installed capacity of newly commissioned and
above is about 5.36 million kilowatts (excluding the coal-fired power generating units with the national commissioning plans) the
total outsourcing electricity for the year is estimated to be approximately 207.1 billion kWh a year-on-year increase of 3.6%. In 2021
affected by many factors the power generation situation of 9E units in Guangdong Province will be severe and the production and
operation of the company's two 9E gas turbine power plants will face greater pressure. Firstly the installed capacity of newly
commissioned units in the province is about 5.36 million kilowatts (excluding the coal-fired power generating units with the national
commissioning plans) and they are all high-efficiency and large-capacity gas-fired units resulting in a substantial decrease in the
base electricity of 9E units and the medium- and long-term contract electricity the company will face the unfavorable situation of a
decline in market share and a reduction in power generation. The second is the continuous reduction of the benchmark electricity
price on the grid with the price reduction of 0.035 yuan/kWh again in 2020 the benchmark electricity price has been reduced by a
total of 0.115 yuan/kWh from 2017 to 2020 plus the kilowatt-hour transaction price difference in the electricity market transactions
the profit margin of the company's power production and marketing is further reduced. Thirdly international and domestic
inflationary pressures will be passed on to the upstream raw material natural gas prices thus it is predicted that the natural gas price
in 2021 will exceed the price level in 2020 and the company will face the pressure of increasing fuel costs for power generation.
(ii) Summary of the Company’s annual business plan for 2021
2021 is the first year when the country enters the "14th Five-Year Plan" development stage. The company will closely follow the
national development strategy layout continue to deepen the road of reform and development conscientiously do a good job in the
safe production and operation of the main business of electric power and go all out to strive for creating benefits so as to realize the
company's strategic transformation and healthy and sustainable development at an early date. The company will continue to
unswervingly lead by the "1+5" strategic road map and through the implementation of the annual work policy of the "125" project
(i.e. taking strategic development as the core and "vertical and horizontal alliance and integration capital entanglement" as the two
basic principles and "deeply linking intensively cultivating project closely following Shenzhen Gas going deep into the market
and deeply studying real estate" as five important measures) unswervingly promote the strategic transformation and do all the work
with a steadfast attitude step by step:
1. Adhere to the leadership of the party and earnestly give play to the leading role of party building. Adhere to the overall leadership
of the party continuously improve the ability and level to implement the new development concept and build a new development
pattern; strictly implement the responsibility system for party building work adhere to the principle of party management and party
building and always put party building work as the top priority to ensure that party building work reaches a new level.
2. Adhere to standardized operations continuously improve corporate governance and optimize internal management. According to
the "Securities Law" and other relevant laws and regulations and the revision content and requirements of securities regulatory
normative documents timely revise and improve the company's "Articles of Association" and related rules of procedure to provide a
more complete and rigorous system basis for the company's decision-making and governance. Do a good job in general election of
the board of directors and the board of supervisors and the appointment of senior management personnel ensure the standardized
continuous and efficient progress of corporate governance production operation management and development.
3. Persist in economic operation and reduce consumption and increase efficiency to the greatest extent. Adhering to the principle of
"economic power generation" we will do a good job in power production and operation and power marketing and at the same time
prepare for the trial operation of the long-term monthly settlement of power spot transactions. On the premise of ensuring stable fuel
supply expand the multi-air source supply model strive for greater market bargaining power and minimize the procurement costs of
natural gas.
4. With the aim of maximizing the company's interests conduct land resource operation and management in accordance with laws
and regulations. Closely track and study Qianhai regional planning and relevant policies maintain communication with relevant
functional departments in Shenzhen and Shenzhen Qianhai Authority and strive to adjust the planning and positioning of the land
where Nanshan Power Factory is located in a direction that is beneficial to the company; at the same time actively seize the
development opportunities of the Shenzhen-Zhongshan Channel fully revitalize the land resources of Shennandian Zhongshan
Company and strive for the implementation of new projects and new production capacity. With the participation and cooperation of
legal advisors the company will carry out various tasks in accordance with the standardized requirements of listed companies and
fulfill the necessary decision-making approval procedures and information disclosure obligations to maximize the protection of the
company and all shareholders' interests and the legitimate rights and interests of employees.
5. Take the early realization of transformation and development as an important task and actively and steadily explore project
channels. According to the company’s annual work policy for the “125” project with equity investment funds as the starting point
we will make efforts to broaden project channels suitable for the company’s transformation and development needs establish a
project reserve pool and go all out to promote the demonstration and landing work of new production capacity and new projects in
the spirit of time waiting for no man and strive to achieve business transformation as soon as possible.
6. Take the continuous promotion of management innovation as the starting point and further improve management efficiency and
talent quality. Continue to deepen the reform of human resources further optimize the allocation of human resources and prepare the
management layout for the company's transformation and development in advance. Focus on training a group of young talents with
high comprehensive quality high educational background professional domain knowledge and rich working experience and build a
young and professional team of compound management cadres to reserve management talents for future new projects and new
industries and to escort the company's strategic transformation and long-term development.The business plan and related situation analysis described in this report do not constitute the company’s performance commitment to
investors. The company reminds investors to maintain sufficient risk awareness and understand the difference between business plan
and performance commitment and make prudent investment decision making.(iii) Possible main risks and countermeasures
1. In terms of main business: In 2021 affected by multiple factors the company's subordinate two power plants will face the
unfavorable situation of a decline in market share and a reduction in power generating capacity as well as the actual pressure that
fuel costs will increase after the power price cut in 2020 and the company's main business operation situation shall be more severe.The Company will continue to actively communicate with relevant provincial and municipal government departments to reflect the
difficulties of the enterprise and seek government supports; do its best to improve the profitability of the main business and the
overall operating efficiency by strengthening the management of the stock assets. At the same time the Company will actively
explore diversified business models and transformation and development opportunities to create better conditions for the Company's
continued operation and healthy development.2. In terms of safety management: under the increasingly market-oriented new power production model power plants will face more
flexible dispatch methods and stricter assessment policies which put forward higher requirements for the operation and maintenance
of existing aging power generation equipment. The company will formulate scientific and reasonable maintenance and technical
transformation plans invest corresponding capital and technical strength continue to improve the maintenance and management
level of equipment and implement the main responsibility for safe production so as to ensure the safe and stable operation of
production facilities. At the same time it will further strengthen the work of epidemic prevention and control production safety
network information security and emergency response to ensure that no security accidents occur in the company's system and
continue to play the supporting role of the main peak shaving power point.
3. Fuel procurement: In 2021 the company's natural gas purchase price will still mainly depend on the sales price of existing
suppliers. As the economic activities of the world's major economy entities including China tend to become stable natural gas
prices are expected to gradually rise and the company's natural gas purchase prices in 2021 may be higher than in 2020. In addition
with the continuous advancement of the market-oriented reform of power trading in Guangdong Province the company's planned
power generation and actual power generation will be difficult to match resulting in an increase in the difference between the
planned purchase of natural gas and the actual purchase. Since the natural gas purchase contract must be signed in advance the
contract gas volume has been basically determined at the time of signing. If the company cannot take delivery of gas according to the
agreement due to factors such as the marketization of electricity transactions in the later period there may be related risks of failing
to take delivery of the contract gas volume. The company will continue to optimize the upstream and downstream partnerships give
full play to the advantages of large-scale procurement and the adjustment function of multiple gas sources and make every effort to
reduce the cost of natural gas procurement while ensuring the gas demand for electricity production.
4. Land of Nanshan Power Factory: In September 2020 the company learned about the Notice of Shenzhen Municipal Bureau of
Planning and Natural Resources on Printing and Distributing the "Urban Renewal and Land Preparation Plan of Shenzhen City in
2020" from the Shenzhen Government's website which still included the land purchase and storage of the company's Nanshan Power
Factory and related content. Although the company actively used various opportunities to express its demands and suggestions as of
the end of the reporting period it still had little effect. The Company will closely maintain communication with the relevant
functional departments of Shenzhen and Shenzhen Qianhai Authority actively follow up the progress of the implementation of
relevant government plans and work closely with legal counsel to study the related situation of the land of Nanshan Power Factory
study and formulate coping strategies and work plans and do their best to safeguard the legitimate rights and interests of listed
company and all shareholders.Investors are advised to pay attention to the above-mentioned major risks and other risks that the Company may face and make
rational investment decisions prudently.X. Reception of research communication and interview
1. In the report period reception of research communication and interview
√Applicable □ Not applicable
Time Location Way Type
Reception
target
Main contents of the discussion
and information provided
Basic situation
index of
investigation
Jan.-Dec. 2020 Office from Field visit Individual Individual (60 Attend the general meeting and Received
the
headquarters
person-time) inquiry of register of members
(shareholders) etc.according to the
laws and
regulations
Jan.-Dec. 2020
Interactive
platform
Written
inquiry
Individual
Individual (62
person-time)
Query the number of
shareholders as about the future
development direction of the
Company progress of the
investment items and lands with
Nanshan Power Factory
concerned
Rely in written
timely
Jan.-Dec. 2020 Telephoning Telephoning Individual
Individual
(dozens of
times)
Inquire and communicate the
Company’s performance
market performance the lands
of Nanshan Power Factory and
progress of the investment items
etc.Reply according
to the laws and
regulations
Reception (times)
60 person times on-site 62 person times reply in interactive platform and
dozens of times through telephoning
Number of hospitality 0
Number of individual reception 122
Disclosed released or let out major
undisclosed information
N
Section V. Important Events
I. Profit distribution plan of common stock and transfer of public reserve into share capital
Formulation Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□Applicable√ Not applicable
Profit distribution plan (pre-plan) of common stock and transfer of public reserve into share capital plan (pre-plan) in latest three
years (including the reporting period)
1. In 2018 audited by Ruihua Certified Public Accounts (Special General Partnership) the net profit attributable to shareholders of
listed Company for year of 2018 amounting as RMB 19253766.12. The Company has no plans of surplus accumulation fund
accrual no profit distribution plan and transfer of public reserve into share capital either. (For details please refer to the
announcement of the 4th session of 8th BOD (No.: 2019-008) published on China Securities Journal Securities Times Hong Kong
Commercial Daily and Juchao information website dated 28 March 2019)
2. In 2019 audited by LIXINZHONGLIAN the net profit attributable to shareholders of listed Company for year of 2019 amounting
as RMB 24900956.73. The Company has no plans of surplus accumulation fund accrual and based on the share capital of
602762596 shares on 31st December 2019 distribute RMB 0.2(tax included) cash dividends for every ten shares to whole
shareholders there is no transfer of public reserve into share capital. (For details please refer to the announcement of the 6th session
of 8th BOD (No.: 2020-009) published on China Securities Journal Securities Times Hong Kong Commercial Daily and Juchao
information website dated 20 March 2020)
3. In 2020 audited by LIXINZHONGLIAN the net profit attributable to shareholders of listed Company for year of 2020 amounting
as RMB 64024291.32. The Company has no plans of surplus accumulation fund accrual no profit distribution plan and transfer of
public reserve into share capital either. (For details please refer to the announcement of the 8th session of 8th BOD (No.: 2021-006)
published on China Securities Journal Securities Times Hong Kong Commercial Daily and Juchao information website dated 26
March 2021)
Cash dividend of common stock in latest three years (including the reporting period)
In RMB/CNY
Year for bonus
shares
Amount for
cash bonus (tax
included)
Net profit
attributable to
common stock
shareholders of
listed company
in
consolidation
statement for
bonus year
Ratio of the
cash bonus in
net profit
attributable to
common stock
shareholders of
listed company
contained in
consolidation
Proportion for
cash bonus by
other ways(i.e.share
buy-backs)
Ratio of the
cash bonus by
other ways in
net profit
attributable to
common stock
shareholders of
listed company
contained in
Total cash
bonus
(including
other ways)
Ratio of the
total cash
bonus (other
ways included)
in net profit
attributable to
common stock
shareholders of
listed company
statement consolidation
statement
contained in
consolidation
statement
2020 0.00 64024291.32 0.00% 0.00 0.00% 0.00 0.00%
2019 12055251.92 24900956.73 48.41% 0.00 0.00% 12055251.92 48.41%
2018 0.00 19253766.12 0.00% 0.00 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent Company is
positive but no plan of cash dividend proposed of common stock
√Applicable □ Not applicable
Reasons why it was profitable during the reporting period and
the parent company’s profit available for distribution to ordinary
shareholders was positive but no distribution plans were
proposed for cash dividend of ordinary shares
The purpose and use plan of the company's undistributed profits
In 2020 the company firmly implemented the annual work
policy of the "125" project paid close attention to safe
production stock operation and transformation and development
and carried out a series of operation and management innovation
measures. We created a win-win situation through the
coordination of state-owned assets and strategic cooperation
introduced gas sources with preferential prices for the company
while cutting capacity carefully made overall arrangement for
the gas supply chain and maximized the benefits by letting one
unit guide a whole area. The company maximized economic
benefits by strengthening the economic operation management of
the main business of electric power researching and formulating
the marketing strategy for power market striving to seize
market opportunities and striving for economic power share
thereby achieving an operating performance of 64024300 yuan
of net profit attributable to shareholders of listed companies. In
2021 with the market-oriented reform of electric power
continues to advance gas turbine power plants will face more
intense market competition. The company's two power plants
will face multiple pressures such as declining market share
reduced power generation and rising gas prices. The marginal
contribution of power generation production power generation
rights transfer and spot market contract spread settlement will
also be narrowed and the company will face more severe
challenges. In 2021 the company will continue to adhere to the
"1+5" strategic road map closely focus on the overall goal of
"turning losses into gains and getting rid of difficulties
transforming and developing and deepening reforms" while
doing a good job in safe production and operation of the main
Given that the company's main business operation pressure is
still huge and it is in a critical period of simultaneous
advancement of stock asset management and transformation and
development the company's undistributed profit of
685077973.07 yuan will be mainly used to supplement liquidity
and meet operating needs to ensure the realization of operating
objectives.business of electric power and actively seek transformation and
development search and develop project opportunities through
different channels.Given that the company is still facing huge operating pressures
and it is difficult to meet the requirements for profit distribution
conditions in the company's Articles of Association the company
does not plan to distribute profits in 2020.II. Profit distribution plan and transfer of public reserve into share capital for the Period
□ Applicable √Not applicable
The Company has no plan of cash dividends distribution carried out for the Year no bonus shares or transfer of public reserve into
share capital either.III. Implementation of commitment
1. Commitments that the actual controller shareholders related parties acquirer and the Company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□Applicable √Not applicable
There was no commitments that the actual controller shareholders related parties acquirer and the Company have fulfilled during
the reporting period and have not yet fulfilled by the end of the reporting period
2. Concerning assets or project of the Company which has profit forecast and reporting period still in
forecasting period explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors Supervisory Committee and Independent Directors
(if applicable) for “Modified Audit Report” issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy estimates and calculation
method compared with the financial report of last year
√ Applicable □ Not applicable
The Accounting Standards for Business Enterprise No. 14 -Revenue was revised by Ministry of Finance in 2017. According to the
revised standards the cumulative impact of the first implementation of the Standard shall be adjusted to the amount of retained
earnings and other relevant items in the financial statement at beginning of the first implementation period (1 Jan. 2020) information
during the comparable period shall not be adjusted.VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
√ Applicable □ Not applicable
During the reporting period 70% equity of Dongguan Company held by the Company are sold Dongguan Company was no longer
included in the consolidate scope at end of the Period.
During the reporting period the Company and China Science and Tech Innovation Venture Capital Management co-sponsor the
establishment of Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) with 99.9643% shares held by the Company
and included in consolidate scope of the Company in 2020.IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm
LIXINZHONGLIAN CPAS (SPECIAL GENERAL
PARTNERSHIP)
Remuneration for domestic accounting firm (in 10 thousand
Yuan)
64
Continuous year of auditing service for domestic accounting firm 2
Name of domestic CPA Liu Xinfa Cao Wei
Continuous year of auditing service for domestic CPA 2
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm financial consultant or sponsor
√Applicable □ Not applicable
LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) was appointed as the internal control auditing authority of the
Company for year of 2020 with expenses of 0.2 million Yuan for one year.
X. Facing delising after the disclosure of annual report
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.XII. Major litigation and arbitration of the Company
□ Applicable √ Not applicable
No major litigation and arbitration occurred in the period
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XIV. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
During the reporting period the company neither had any failure to implement the court’s effective judgments nor had large amount
of due and unpaid debts that were etc. and had a good credit. During the reporting period the company had no controlling
shareholders or actual controllers.XV. Implementation of the Company’s stock incentive plan employee stock ownership plan
or other employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan employee stock ownership plans or other employee incentives.XVI. Major related party transaction
1. Related party transaction with routine operation concerned
√Applicable □ Not applicable
Related
party
Relation
ship
Transact
ion
Type
Content
Pricing
principl
e
Transact
ion
price
Transact
ion
amount(
in 10
thousan
d Yuan)
Proporti
on in
similar
transacti
ons
Trading
limit
approve
d (in 10
thousan
d Yuan)
Whethe
r over
the
approve
d
limited
or not
(Y/N)
Means
of
paymen
t
Availabl
e
similar
market
price
Date of
disclosu
re
Index
of
disclos
ure
Shenzhen Related Purchas The In In 1366.0 100.00 8867 N By -- 2019-06 The
Energy
Gas
Investme
nt
Holding
Co. Ltd.
Fuel
Branch of
Shenzhen
Energy
Corporati
on
legal
person
e fuel Compan
y New
Power
Compan
y and
Donggu
an
Compan
y are
entered
into the
Natural
Gas
Sales
and
Purchas
e
Contract
with
Shenzhe
n
Energy
Gas
Investm
ent
Holding
Co. Ltd.
respecti
vely and
entered
in the
Purchas
e and
Sale
Manage
ment
Service
Agreem
ent of
LNG
with
Fuel
Branch
of
principl
e the
price
shall not
be
higher
than the
market
price of
natural
gas with
referenc
e to the
market
standard
principl
e the
price
shall not
be
higher
than the
market
price of
natural
gas with
referenc
e to the
market
standard
1 % agreeme
nt
-25 Notice
of OEM
for
Equity
Gas
Purcha
se and
Related
Party
Transac
tion
(Notice
No.:
33)
release
d on
China
Securiti
es
Journal
Securiti
es
Times
Hong
Kong
Comme
rcial
Daily
and
Juchao
Website
41
Shenzhe
n
Energy
Corporat
ion
Total -- --
1366.0
1
-- 8867 -- -- -- -- --
Detail of sales return with major
amount involved
N/A
Report the actual implementation of
the daily related party transactions
which were projected about their total
amount by types during the reporting
period (if any)
Not applicable
Reasons for major differences
between trading price and market
reference price (if applicable)
Not applicable
2. Related party transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in Period.
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit and debt occurred in the Period
5. Other major related party transactions
□ Applicable √ Not applicable
No other major related party transactions occurred in the period
XVII. Significant contract and implementations
1. Trusteeship contract and leasing
(1) Trusteeship
√Applicable □ Not applicable
Explanation on trust
In accordance with the “Assets (Generator Sets) Custody Operation Contract of Shenzhen New Power Industrial Co. Ltd.” signed
with the New Power Company the Company entrusted with management for the generator assets owned by New Power Company
(wholly-owned subsidiary of the Company). During the reporting period the Company received an assets custody services of 12.5223
million Yuan
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
□ Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
3. Entrust others to cash asset management
(1) Trust financing
√Applicable □Not applicable
Trust financing in the period:
In 10 thousand Yuan
Type Capital sources Amount occurred Outstanding balance Overdue amount
Bank financial products Own funds 48965.56 57565.56 0.00
Total 48965.56 57565.56 0.00
Details of the single major amount or high-risk trust investment with low security poor fluidity and non-guaranteed
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Material contract with daily operation concerned
□ Applicable √ Not applicable
5. Other material contracts
√Applicable □ Not applicable
The
name
of the
contract
ing
compan
y
The
name
of the
contract
ed
compan
y
Contra
ct
object
The
date of
signat
ure of
the
contra
ct
The
book
value
of the
assets
involve
d in the
contract
(RMB’
0000)(i
f any)
The
assesse
d
value
of the
assets
involve
d in the
contract
(RMB’
0000)(i
f any)
Name
of the
evalua
tion
organi
zation(
if any)
The
base
date
evalua
tion (if
any)
Pricing
principl
es
Bargain
price(R
MB’00
00)
Wheth
er
connec
ted
transac
tion
(Y/N)
Incid
ence
relati
on
The
perfor
mance
by the
end of
the
term
The
date of
disclos
ure
The index of
disclosure
The
Compa
ny
New
Power
Compa
ny
Shenzh
en Gas
Group
Co.
Ltd.Pipelin
e
natural
gas
N/A
The
contract
is a
framew
ork
agreem
ent
price of
the NG
will
decide
through
consult
ation
N
Not
applic
able
In
progre
ss
Failure
to meet specific
disclosure
requirements
44
by
supple
mental
agreem
ent
betwee
n the
two
parties
The
Compa
ny
Syndis
ome
Compa
ny
Shenzh
en Gas
Group
Co.
Ltd.
70%
equity
of
Dongg
uan
Comp
any
(40%
equity
held
directl
y by
the
Comp
any
and
30%
equity
held
throug
h
wholly
-owne
d
subsidi
ary
Syndis
ome
Comp
any
indirec
tly)
5841.1
8
8329.9
2
Watso
n
(Beijin
g)
Intern
ational
Assets
Apprai
sal
Co.
Ltd.Pricing
principl
e in the
agreem
ent is
that the
negotiat
ed
transfer
price of
underly
ing
assets
(70%
equity
of
Donggu
an
Compa
ny )is
higher
than the
apprais
al value
of the
underly
ing
assets
issued
by
Watson
(Beijin
g)
Internat
ional
N
Not
applic
able
Compl
eted
on
July 2
2020
7
March
2020
24
March
2020
11
April
2020
and 4
July
2020
Notice
including: 70%
Equity of Shen
Nan Dian
(Dongguan)
Weimei Electric
Power Co. Ltd
Transfer
Resolution of
the First
Extraordinary
Shareholders
General Meeting
of 2020
Progress of
Transfer of 70%
Equity of Shen
Nan Dian
(Dongguan)
Weimei Electric
Power Co. Ltd
and Completion
of the 70%
Equity of Shen
Nan Dian
(Dongguan)
Weimei Electric
Power Co. Ltd
Transferred;
Notice No.:
(2020-006
2020-023 and
2020-032);
Released on :
45
Assets
Apprais
al Co.
Ltd.
China Securities
Journal
Securities
Times Hong
Kong
Commercial
Daily and
Juchao Website.XVIII. Explanation on other significant events
1. Fulfill the social responsibility
In 2020 in the face of multiple pressures such as the sudden outbreak of COVID-19 epidemic the main business of electric power
being full of challenges and the road of transformation and development being full of thistles and thorns the company actively
performed its social responsibility within its capacity devoted itself to seeking the healthy and harmonious development of enterprise
and employees enterprise and society enterprise and environment while went out to pay close attention to production and operation
and seek transformation and development:
1. Corporate governance: in compliance with the relevant laws and regulations governance norms of listed Company as well as the
Company’s Articles of Association continuously improve and strictly abide by the modern corporate management system and
governance norms and strive to realize the clear division of powers and responsibilities of the general meeting of shareholders the
board of directors the board of supervisors and the management so that each performs its own functions effectively checks and
balances and coordinates for operation. In accordance with the listed company's corporate governance standards and related
regulations the Company strictly implemented the decision-making procedures of the "three meetings" did a good job in
information disclosure and investor relationship management in accordance with laws and regulations actively maintained the public
image of listed companies and protected the legitimate interests of all shareholders.
2. Safety production: we seriously in line with the Law on Safety in Production and relevant laws and regulations and the rules of
“same responsibility of the Party & Government double duties concerted efforts and negligence of duty”; Take multiple measures
simultaneously to strengthen safety management implement safety responsibilities at all levels layer upon layer and continue to
create a new situation in safety work.
3. Environment protection: the Company has stringently complied with the national and local environment laws and regulations and
consistently adhered to the policy of eco-friendly power generation and cyclic economic development.Our works relating to
environment protection were effectively implemented with satisfaction of all the emission standards completed the environment
protection target for the whole year.
4. In terms of epidemic prevention and control: the company strictly implemented the decision-making and deployment of the Party
Central Committee and the State Council and the work requirements of the epidemic prevention and control command organizations
at all levels and established a special agency for the prevention and control of the COVID-19 epidemic in a timely manner and
established an epidemic prevention and control responsibility mechanism with responsibility to individual and the grid management
and control system drew up epidemic prevention guidelines emergency plans and various work rules tried every means to purchase
epidemic prevention materials strengthened the publicity education and care support for employees. There were no confirmed cases
46
suspected cases or cases of asymptomatic infection in the company system. While doing a good job in the prevention and control of
the epidemic the company actively responded to the call for resumption of work and production and organized production and
operation in a safe and orderly manner.
5. Human Resources: The Company attached great importance to talent training and employee care continue to promote the reform
of human resources and further optimize the human resource allocation improved employees’ professional quality and job
competence and made necessary talent preparations for the Company's transformation and development at the same time created
favorable conditions for the personal career growth of employees; through a series of people’s livelihood care measures created
better working environment and conditions for employees in accordance with local conditions and increased employee happiness
and corporate cohesion
6. In terms of helping and supporting: the Company adopt 10 Mu lands from the poverty alleviation area-Hujing village Longchuan
County Heyuan and 2400 kg rice with a total value of 39600 Yuan; and purchase the agricultural products such as Chickpea Navel
Orange and Apple /dry fruit in poverty alleviation areas from Lianping Guangdong Gannan Jiangxi and Xinjiang respectively with
a total value of 112040 Yuan. In difficult circumstances the Company has contributed to changing the face of poor villages and
helping the poor to enter a well-off society together.
2. Fulfill the precise social responsibility for poverty alleviation
(1) Plan of precise poverty alleviation
(2) Summary of the annual precise poverty alleviation
The Company responds to the call of consumption poverty alleviation actively adopt 10 Mu lands from the poverty alleviation
area-Hujing village Longchuan County Heyuan and 2400 kg rice with a total value of 39600 Yuan; and purchase the agricultural
products such as Chickpea Navel Orange and Apple /dry fruit in poverty alleviation areas from Lianping Guangdong Gannan
Jiangxi and Xinjiang respectively with a total value of 112040 Yuan. In the case that the Company has not yet extricated itself from
the business dilemma total amount of poverty alleviation through consumption in 2020 is 151640 Yuan.
(3) Achievement in precise poverty alleviation
Quota
Unit of
measurement
Numbers/Progress
I. Overall situation —— ——
Including: 1. Funds 10 thousand Yuan 15.16
II. Itemized input —— ——
1.Poverty alleviation for industrial
development
—— ——
2.Transfer employment to get rid of poverty —— ——
3.Moving out of poverty —— ——
47
4.Poverty alleviation through education —— ——
5.Poverty alleviation through health —— ——
6.Poverty alleviation through ecological
protection
—— ——
7.overall guarantee —— ——
8.Social poverty alleviation —— ——
8.2 Investment amount of the
poverty alleviation in designated areas
10 thousand Yuan 15.16
9.Other —— ——
III. Awards (contentstandards) —— ——
(4) Follow-up precise poverty alleviation plan
The Company has no follow-up precise poverty alleviation plan
3. Environmental protection
(1) The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection
department
√Yes □ No
Enterprise
or
subsidiary
Main
pollutant
and features
Way of
discharge
Number of
discharge
outlet
Distribution
of the
discharge
outlet
Emission
concentratio
n
Pollutant
discharge
standard
implemente
d
Total
discharge
Total
approved
emissions
Excessive
emission
Shenzhen
Nanshan
Power Co.Ltd.Oxynitride
Concentrate
emission
from boiler
uptake
2
In plant area
of Nanshan
Power
Factory
<15 mg/m3
Implementa
tion of“Shenzhen
Blue”
emission
standard<15
mg/m3
82.46 ton 457.5ton 0
Shenzhen
New Power
Industrial
Co. Ltd.
Oxynitride
Concentrate
emission
from boiler
uptake
1
In plant area
of Nanshan
Power
Factory
<15 mg/m3
Implementa
tion of“Shenzhen
Blue”
emission
standard<15
mg/m3
10.89ton 228.75ton 0
Shen Nan Oxynitride Concentrate 2 In plant area <50 mg/m3 GB13223 8.56ton 324.50ton 0
48
Dian
(Zhongshan
) Electric
Power Co.Ltd.emission
from boiler
uptake
of
Zhongshan
Nanlang
Power Plant
Construction and operation of the facilities preventing and controlling pollution
All facilities are work normally vary pollutant discharge are in standards
Environmental impact review and other environment protection administrative licensing
The aforesaid companies have pass the environment impact review and file in department of Environmental Protection of Guangdong
province
Emergency plan for abrupt environmental accidents
The plans have file in department of Environmental Protection of Guangdong province and corresponding environmental protection
bureau
Environmental self-monitoring plan
We have prepared the plans of self-monitoring and approved by Environmental Protection Bureau; monitoring data will release on
Environmental Protection Website on time
Other information need for released
Nil
Relevant environmental protection information
Nil
The Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on Shenzhen
Stock Exchange No.15- Listed Companies are Engaged in Electricity-related Business
XIX. Other important events
√Applicable □ Not applicable
1. Matters related to the agreement to transfer 70% of the shares of Shen Nan Dian Dongguan Company. 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 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 at a total price of 104.98 million yuan (including the equity agreement price of
87.5 million yuan and the transition period gains and losses of 17.48 million yuan).As of 2 July 2020 the equity transfer amount
have received by the Company from Shenzhen Gas in whole the 70% equity of Dongguan Company transferred has completed.
(Found more in the Notice released on China Securities Journal Securities Times Hong Kong Commercial Daily and Juchao
Website including 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co. Ltd Transfer Resolution of the First
Extraordinary Shareholders General Meeting of 2020 Progress of Transfer of 70% Equity of Shen Nan Dian (Dongguan) Weimei
49
Electric Power Co. Ltd and Completion of the 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co. Ltd
Transferred (Notice No.: 2020-006 2020-019 2020-023 and 2020-032))
2. Matters concerning the company’s investment in Yuanzhi Ruixin New Generation Information Technology Equity Investment
Fund. On March 5 2020 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 respectively reviewed and approved the Proposal on Investing in
Yuanzhi RuixinNew Generation Information Technology Equity Investment Fund and Related Transactions agreed that the company
would invest 200 million yuan with its own funds in Yuanzhi RuixinNew Generation Information Technology Equity Investment
Fund.In view of the fact that Shenzhen Capital Holdings Co. Ltd one of the limited partners of the fund and Shenzhen Yuanzhi
Ruixin Equity Investment Management Co.Ltd. the general partner of the fund are all related legal persons of the company the
company fulfills relevant approval procedures and information disclosure obligations in accordance with relevant regulations of
related transactions. As of the end of the reporting period the related work is in progress. The company and related parties have not
signed the Partnership Agreement for Yuanzhi Ruixin New Generation Information Technology Equity Investment Fund. The
company will follow the progress of the matter and fulfill information disclosure obligations in accordance with the law and
regulations. (Found more in the Notice released on China Securities Journal Securities Times Hong Kong Commercial Daily and
Juchao Website including Notice on Investing in Yuanzhi RuixinNew Generation Information Technology Equity Investment Fund
and Related Transactions and Resolution of the First Extraordinary Shareholders General Meeting of 2020 (Notice No.: 2020-007
and 2020-019))
3. T102-0011 T102-0155 Land related matters
(1) On April 2 2020 the company received the Notice of Shenzhen Qianhai Authority Regarding Resumption of Land Use Rights of
T102-0011 Parcel from Shenzhen Qianhai Authority. The company fulfilled its information disclosure obligations in a timely manner
and immediately worked with special legal advisors to study the Shenzhen Qianhai Authority’s plan to take back the land use rights
of the T102-0011 parcel and its countermeasures. At the same time it organized Shen Nan Dian Environment Protection Company
the company’s wholly-owned subsidiary and Nanshan Power Factory a subsidiary of the company carefully assessed the impact of
this matter on their normal production and operation. On April 24 the company delivered the "Reply to the Notice of Shenzhen
Qianhai Authority Regarding the Resumption of Land Use Rights of T102-0011 Parcel" (SNDHZ [2020 ] No. 4) which analyzed
and calculated the impact of Shenzhen Qianhai Authority's plan to recover the land use rights of 2531 square meters within
T102-0011 parcel on Shen Nan Dian Environment Protection Company and Nanshan Power Factory andmade acompensation
request for the resumption of land use rights.The Company has arranged special personnel to follow up the progress of the matter
and will take corresponding countermeasures according to the subsequent progress and fulfill the necessary information disclosure
obligations in line with the laws and regulations. (For details please refer to the company’s Announcement About Receipt of the
Notice ofShenzhen Qianhai Authority Regarding Resumption of Land Use Rights of T102-0011 Parcel theAnnouncement About
Reply to the Notice of Shenzhen Qianhai Authority Regarding the Resumption of Land Use Rights of T102-0011 Parcel disclosed on
China Securities Journal Securities Times Hong Kong Commercial Daily and cninfo Announcement No.: 2020-020 2020-029).
(2)On April 10 2020 the company received the Letter of Notice Regarding the Selection of the Surveying Mapping and Evaluation
Agency for the Land Preparation Project (Legal Buildings and Structures) of the Rapid Reconstruction Project of Yueliangwan
Avenue from Shenzhen Qianhai Development Investment Holding Co. Ltd. The company fulfilled its obligation of information
disclosure in a timely manner (for details please refer to the company’s Announcement About Receipt of Letter of Notice Regarding
the Selection of the Surveying Mapping and Evaluation Agency for the Land Preparation Project (Legal Buildings and Structures) of
the Rapid Reconstruction Project of Yueliangwan Avenue from Shenzhen Qianhai Development Investment Holding Co.Ltd.disclosed on China Securities Journal Securities Times Hong Kong Commercial Daily and cninfo Announcement No.:
2020-024).
50
(3)On June 19 2020 Shenzhen Qianhai Authority issued the Announcement of Shenzhen Qianhai Authority on the Public
Presentation of the Development Unit Planning Revision (Draft) of Qianhai Area on its official website (hereinafter referred to as
"the Announcement") and publicly presented the development unit planning revision (draft) for the three areas of Qianhai (Guiwan
Qianwan and Mawan). The company fulfilled its obligation of information disclosure in a timely manner and submitted the Opinions
of Shenzhen Nanshan Power Co. Ltd. on the Development Unit Planning Revision (Draft) of Qianhai Area to the Shenzhen Qianhai
Authority put forward relevant issues concerning planning content of the company's Nanshan Power Factory (Development Unit 13)
in the Announcement and raised an objection to the planning for Development Unit 13 hoping that Shenzhen Qianhai Authority will
fully consider the contributions the company made to Shenzhen and Qianhai area for more than 30 years based on the principle of
“respect for history cooperation and win-win” taking the successful land preparation model and mature experience of Qianhai for
example and properly solve the related issues of the company’s Nanshan Power Factory (Development Unit 13) so that the
legitimate rights and interests of listed companies and their shareholders shall be effectively protected. The Company has arranged
special personnel to follow up the progress of the matter and will take corresponding countermeasures according to the subsequent
progress and fulfill the necessary information disclosure obligations in line with the laws and regulations.(Found more in the Notice
released on China Securities Journal Securities Times Hong Kong Commercial Daily and Juchao Website including the Notice on
Shenzhen Qianhai Authority issued the Announcement of Shenzhen Qianhai Authority on the Public Presentation of the Development
Unit Planning Revision (Draft) and Development Unit Planning Revision (Draft) of Qianhai Area to the Shenzhen Qianhai Authority
(Notice No.: 2020-031 and 2020-034))
(4) On September 24 2020 the company learned about the Notice of Shenzhen Municipal Bureau of Planning and Natural Resources
on Printing and Distributing the "Urban Renewal and Land Preparation Plan of Shenzhen City in 2020" (hereinafter referred to as the
"Land Preparation Plan") from the Shenzhen Government's website. According to the relevant contents of the "Land Preparation
Plan" and its attached tables the 2020 land preparation project of Qianhai Cooperation Zone still included the land purchase and
storage of the company's Nanshan Power Factory and other related contents. The company fulfilled its information disclosure
obligations in a timely manner and followed up with legal counsel to understand the relevant situation. (Found more in the Noticereleased on China Securities Journal Securities Times Hong Kong Commercial Daily and Juchao Website including the “Notifyingthe Notice of Shenzhen Municipal Bureau of Planning and Natural Resources on Printing and Distributing the "Urban Renewal and
Land Preparation Plan of Shenzhen City in 2020"(Notice No.: 2020-042))
The company will continue to follow up the progress of matters related to the land where Nanshan Power Factory is located maintain
close communication with relevant functional departments in Shenzhen and Shenzhen Qianhai Authority to respond to any issues
that may have advance impact on the Company and its subordinate enterprises in a timely manner and put forward opinions and
appeals according to the laws and do its best to protect the legitimate rights and interests of the listed company and all shareholders.
4. Adjustment of the on-grid tariff for gas generation. On 31 July 2020 Development and Reform Commission of Guangdong
Province issued the “Notice on Adjustment of the Electricity Price of Gas Generation in the Province” (Yue Fa Gai Price [2020]
No.284) hereinafter referred to as the Notice) and decided to further adjust the on-grid price of gas generation in Guangdong
Province. According to the spirit of the Notice since 1 August 2020 the current generating sets of the Company adjusted the on-grid
price from 0.665 Yuan/KWH to 0.63 Yuan/KWH (within the annual utilization hours of 4000 (inclusive)) and 0.463 Yuan/KWH
(with the annual utilization hours of above 4000). The on-grid price for contract price of 2020 will not adjusted in the Year temporary
(Found more in the Notice on Adjustment of the On-Grid Tariff for Gas Generation Notice No.: 2020-037) released on China
Securities Journal Securities Times Hong Kong Commercial Daily and Juchao Website )
5. Investment matters related to the Zhongshan Prefabricated Building Industrial Park project. On September 28 2020 the 13th
interim meeting of the eighth session of the company’s board of directors reviewed and approved the Proposal on Investment in the
Zhongshan Prefabricated Building Industrial Park Project" and it was agreed that the company would invest 29.29 million yuan in
the Zhongshan Prefabricated Building Industrial Park project with its own funds. (Found more in the Notice released on China
Securities Journal Securities Times Hong Kong Commercial Daily and Juchao Website including the Notice on Investment in the
Zhongshan Prefabricated Building Industrial Park Project (Notice No.: 2020-044))
6. Matters related to investment in Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership). On October 22 2020 the
14th extraordinary meeting of the 8th board of directors of the company reviewed and approved the "Proposal on Investing in Zhuhai
Hengqin Zhuozhi Investment Partnership (Limited Partnership)" and agreed that the company would invest 279.9 million yuan with
its own funds in Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership). In November the company received a
notice from the fund manager Guangdong China Science and Tech Innovation Venture Capital Management Co. Ltd. that Zhuhai
Hengqin Zhuozhi Investment Partnership (Limited Partnership) had completed the filing procedures of the fund in the Asset
Management Association of China in compliance with the requirements of the Securities Investment Fund Law and the Interim
Measures for the Supervision and Management of Private Equity Investment Fund and other laws and regulations. After completing
the filing procedures this company has normally carried out the preliminary investment work of the target project in accordance with
the relevant regulations and its "Articles of Association". (Found more in the Notice released on China Securities Journal Securities
Times Hong Kong Commercial Daily and Juchao Website including the Notice on Investing in Zhuhai Hengqin Zhuozhi Investment
Partnership (Limited Partnership); Notice on Completed the filing procedures of the funds (Notice No.: 2020-051; Notice No.:
2020-056))
Except for the above matters the Company has sorted out the refundable items of the “Benefit Fund for Technical RenovationProject” and communicated with relevant personnel but no substantial progress was made during the reporting period; the
Guangdong Xinjiang Aid Project that the Company participated in 2013 had no further progress or change during the Period.XX. Significant event of subsidiary of the Company
□ Applicable √Not applicable
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+ -) After the Change
Amount
Proportio
n
New
shares
issued
Bonus
shares
Capitaliz
ation of
public
reserve
Others Subtotal Amount
Proportio
n
I. Restricted shares 14139 0.0023% 14139 0.0023%
1. State-owned shares
2. State-owned legal person’s
shares
3. Other domestic shares 14139 0.0023% 14139 0.0023%
Including: Domestic legal
person’s shares
Domestic natural
person’s shares
14139 0.0023% 14139 0.0023%
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural
person’s shares
II. Unrestricted shares 602748457 99.9977% 602748457 99.9977%
1. RMB Ordinary shares 338894011 56.2235% 338894011 56.2235%
2. Domestically listed foreign
shares
263854446 43.7742% 263854446 43.7742%
3. Overseas listed foreign
shares
4. Others
III. Total shares 602762596 100.00% 602762596 100.00%
Reasons for share changed
□ Applicable √Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common
stock
34457
Total common
stock
33402
Total preference
shareholders with
0
Total preference
shareholders
0
shareholders at
end of the
reporting
period
shareholders at
end of last month
before annual
report disclosed
voting rights
recovered at end of
reporting period (if
applicable) (see
note 8)
with voting
rights recovered
at end of last
month before
annual report
disclosed (if
applicable) (see
note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Full name of
Shareholders
Nature of
shareholder
Proportio
n of
shares
held
Total
sharehold
ers at
the end of
report
period
Changes
in report
period
Amount
of
restricted
shares
held
Amount
of
un-restrict
ed shares
held
Number of share pledged/frozen
State of share Amount
HONG KONG
NAM HOI
(INTERNATIONA
L) LTD.Overseas legal
person
15.28%
9212324
8
9212324
8
Shenzhen Guangju
Industrial Co. Ltd.State-owned legal
person
12.22%
7366682
4
7366682
4
Shenzhen Energy
Group Co. Ltd.State-owned legal
person
10.80%
6510613
0
6510613
0
BOCI
SECURITIES
LIMITED
Overseas legal
person
2.48%
1497550
2
1497550
2
Liu Fang
Domestic nature
person
1.21% 7285988 7285988
Zeng Ying
Domestic nature
person
1.19% 7159600 7159600
China Merchants
Securities H.K.
Co. Ltd.
State-owned legal
person
1.17% 7079728 7079728
LI SHERYN
ZHAN MING
Overseas nature
person
0.97% 5825490 5825490
Meiyi Investment
Property Co. Ltd.
Domestic non
state legal person
0.87% 5217800 5217800
Haitong
International
Securities
Company
Overseas legal
person
0.65% 3909357 3909357
Limited-Account
Client
Strategy investors or general
corporation comes top 10 shareholders
due to rights issue (if applicable) (see
note 3)
N/A
Explanation on associated relationship
among the aforesaid shareholders
1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held
by Shenzhen Energy Group Co. Ltd.;
2. The Company is unknown whether there exists associated relationship or belongs to the
consistent actor among the other shareholders.Particular about top ten shareholders with un-restrict shares held
Shareholders’ name Amount of un-restrict shares held at Period-end
Type of shares
Type Amount
HONG KONG NAM HOI
(INTERNATIONAL) LTD.
92123248
Domestically
listed foreign
shares
92123248
Shenzhen Guangju Industrial Co. Ltd. 73666824
RMB common
shares
73666824
Shenzhen Energy Group Co. Ltd. 65106130
RMB common
shares
65106130
BOCI SECURITIES LIMITED 14975502
Domestically
listed foreign
shares
14975502
Liu Fang 7285988
RMB common
shares
4225188
Domestically
listed foreign
shares
3060800
Zeng Ying 7159600
Domestically
listed foreign
shares
7159600
China Merchants Securities H.K. Co.
Ltd.
7079728
Domestically
listed foreign
shares
7079728
LI SHERYN ZHAN MING 5825490
Domestically
listed foreign
shares
5825490
Meiyi Investment Property Co. Ltd. 5217800
RMB common
shares
5217800
Haitong International Securities
Company Limited-Account Client
3909357
Domestically
listed foreign
shares
3909357
Expiation on associated relationship or
consistent actors within the top 10
un-restrict shareholders and between
top 10 un-restrict shareholders and top
10 shareholders
1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held
by Shenzhen Energy Group Co. Ltd.;
2. The Company is unknown whether there exists associated relationship or belongs to the
consistent actor among the other shareholders.
Explanation on top 10 shareholders
involving margin business (if
applicable) (see note 4)
Among the top ten shareholders Ms. Liu Fang holds 4180688 shares through credit
transaction guarantee securities account.Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholders
Nature of controlling shareholders: no controlling shareholder
Type of controlling shareholders: nil
Explanation on the Company’s absence of controlling shareholder
At present the company does not have shareholders who hold more than 50% of the company’s total share capital; or although the
proportion of shares held is less than 50% the voting rights enjoyed by the shares held by them are sufficient to have a significant
impact on the resolutions of the general meeting of shareholders that is the company does not have the controlling shareholder as
defined in Item (ii) of Article 216 of the "Company Law of the People's Republic of China (Amended in October 2018)" or Item (v)
of Article 17.1 of the "Stock Listing Rules of Shenzhen Stock Exchange (Revised in 2020)".
Change of controlling shareholder in reporting period
□Applicable √Not applicable
The company has no controlling shareholders.
3. Actual controller of the Company and persons acting in concert
Nature of actual controller: no actual controller
Type of actual controller: nil
Explanation on the Company’s absence of actual controller
At present the company does not have investors who are controlling shareholders holding more than 50% of the listed company's
shares nor investors who can actually control more than 30% of the voting rights of the listed company's shares nor investors who
can determine more than half members’ appointment of the company's board of directors through actual control of the company's
voting rights nor investors who are able to have a significant impact on the resolutions of the company’s general meeting of
shareholders with their actual voting rights of the shares of the list company nor investors who can determine or actually control the
resolutions of the company’s board of directors with their actual voting rights of the shares of the list company or through
recommendations or nomination of directors nor persons (including natural persons legal persons or other organizations) who can
control or actually control the company’s behavior through investment relations agreements or other arrangements; that is there is
no circumstance concerning the identification standards of the actual controller or control rights of listed companies as defined in
Item (iii) of Article 216 of the "Company Law of the People's Republic of China (Amended in October 2018)" or Article 84 of the
Administrative Rules on the Acquisition of Listed Companies (Amended in March 2020) and Item (vi) and Item (vii) of Article 17.1
of the "Stock Listing Rules of Shenzhen Stock Exchange (Revised in 2020)".Whether has shareholder owns over 10% shares at ultimate control level
√Yes □No
Legal Person
Change of actual controller in the period
□Applicable √Not applicable
Block diagram of company property rights and control relationships
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
√Applicable □ Not applicable
Name of legal person shareholder
Legal
representative/person in
charge
Date of
establishment
Registered capital
Main business or
management activities
HONG KONG NAM HOI
(INTERNATIONAL) LTD.Wang Daohai May 14 1985 HK$ 15.33 million
Holding shares through
investment
Shenzhen Guangju Industrial Co.Ltd.
Du Wenjun May 31 1989 RMB 111.11 million
Set up industry power
investment (specific
projects will be declared
separately)
Shenzhen Energy Group Co. Ltd. Wang Daohai July 15 1985
RMB 230.971224
million
Development production
purchase and sale of various
conventional energy
(including electricity heat
coal oil and gas) and new
energy
5. Shares reduction restriction from controlling shareholder actual controller recombined square and
other commitment entity
□ Applicable √ Not applicable
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
Section VIII Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period
Section IX. Particulars about Directors Supervisors Senior Officers
and Employees
I. Changes of shares held by directors supervisors and senior officers
Name Title
Working
status
Sex Age
Start dated of office
term
End date
of office
term
Shares
held at
period-be
gin
(Share)
Amount
of shares
increased
in this
period
(Share)
Amount
of shares
decreased
in this
period
(Share)
Other
changes
(share)
Shares
held at
period-e
nd
(Share)
Li Xinwei Chairman
Currently
in office
M 55 August 28 2017
See note
for details
0 0 0 0 0
Li
Hongshen
g
Vice
chairman
Currently
in office
M 57 January 13 2011
See note
for details
0 0 0 0 0
Huang
Qing
Director
Currently
in office
M 49 June 3 2019
See note
for details
0 0 0 0 0
Chen
Yuhui
Director
GM
Currently
in office
M 55
August 28 2017
August 11 2017
See note
for details
0 0 0 0 0
Wu
Guowen
Director
Standing
Deputy
GM
Currently
in office
M 55
April 25 2016
April 1 2016
See note
for details
0 0 0 0 0
Li
Wenying
Director
Currently
in office
M 41 June 3 2019
See note
for details
0 0 0 0 0
Mo
Jianmin
Independ
ent
director
Currently
in office
M 54 November 17 2017
See note
for details
0 0 0 0 0
Chen
Zetong
Independ
ent
director
Currently
in office
M 50 November 17 2017
See note
for details
0 0 0 0 0
Du Wei
Independ
ent
director
Currently
in office
M 65 November 11 2019
See note
for details
0 0 0 0 0
Ye
Qiliang
Chairman
of
Currently
in office
M 57 November 17 2017
See note
for details
0 0 0 0 0
superviso
ry board
Li Zhiwei
Superviso
r
Currently
in office
M 40 June 3 2019
See note
for details
0 0 0 0 0
Liao
Junkai
Superviso
r
Currently
in office
M 32 June 3 2019
See note
for details
0 0 0 0 0
Liang
Jianqiang
Employee
superviso
r
Currently
in office
M 52 November 12 2014
See note
for details
0 0 0 0 0
Peng Bo
Employee
superviso
r
Currently
in office
M 47 November 17 2017
See note
for details
1527 0 0 0 1527
Zhang Jie
Deputy
GM
secretary
of the
Board
Currently
in office
F 52
December 30 2006
December 23 2015
See note
for details
17325 0 0 0 17325
Dai Xiji CFO
Currently
in office
M 51 November 17 2017
See note
for details
0 0 0 0 0
Total -- -- -- -- -- -- 18852 0 0 0 18852
Note: The office term of the 8th BOD Supervisory Committee and the senior executives were expired on 17 Nov. 2020. In view of
the change of the relevant works have not been completed change of the BOD and Supervisory Committee is postponed the tenure
for specific committee of the Board and senior executives will be extended accordingly. Before the general election is completed the
8th BOD all members of the Supervisory Committee and senior executives will in line with the laws administrative regulations and
Article of Association continue to perform the duties and obligation of the directors supervisors and senior executive.
II. Changes of directors supervisors and senior officers
□ Applicable √ Not applicable
III. Post-holding
Professional background major working experience and present main responsibilities in Company of directors supervisors and
senior officers at the present
Mr. Li Xinwei was born in 1965 a senior accountant a postgraduate of Xiamen University and a master of business administration.
From 1984 to 1992 he held the post of director of the accounting department of Guangdong Nuclear Power Joint Venture Co. Ltd.;
from 1992 to 2006 he served as the financial manager of Shenzhen Worldsun Enterprises Co. Ltd. and he served as the director of
finance department of Shenzhen Mawan Power Co. Ltd. the chief accountant and the director of finance department of Shenzhen
Energy Group Power Generation Branch the deputy director of capital office of Shenzhen Energy Group Co. Ltd. (at ministerial
level) the director and deputy general manager of Shenzhen Mawan Power Co. Ltd.; from 2004 to 2006 he also served as the
chairman of Huizhou City Gas Development Co. Ltd.; from 2006 to August 2017 he held the post of managing director of Shenzhen
Energy Finance Co. Ltd. he also holds the post of chairman of Sichuan Shenzhen Energy Power Investment Holding Co. Ltd. from
2015 to October 2018; and he has held the post of chairman of the Company since August 2017 now served as chairman of
Shenzhen Energy Group Co. Ltd. Shenzhen Shen Nan Dian Environment Protection Co. Ltd. Shenzhen Shennandian Turbine
Engineering Technology Co. Ltd. and director of Shen Nan Energy (Singapore) Co. Ltd. Since May 2019 he has been the secretary
of the party committee of the company.Mr. Li Hongsheng born in 1963 was Communist party member a master. From November 2004 he served as director of Shenzhen
Guangju Investment Holding (Group) Co. Ltd director financial controller of Shenzhen Guangju Energy Co. Ltd chairman of
Shenzhen Yangrun Investment Co. Ltd.; From December 2007 to now he serves as Managing director of Shenzhen Guangju Energy
Co. Ltd. and director of Guangju Energy (HK) Co. Ltd; and he serves as director and vice chairman of the Company since January
2011
Mr. Huang Qing born in 1971 intermediate economist master of economics graduated from Wuhan University with a major in
national economic planning and management. He successively served as a staff member deputy chief staff member and a chief staff
member of the General Office of Shenzhen Municipal Government deputy chief of the General Office of Shenzhen Municipal
Government chief of the General Office of Shenzhen Municipal Government deputy departmental-level secretary of the General
Office of Shanxi Provincial Government deputy director of Shanxi Provincial Government's Guangzhou Office and a member of the
Party Group. He currently serves as deputy general manager of Shenzhen Capital Operation Group Co. Ltd. (Former Shenzhen
Yuanzhi Investment Co. Ltd.) concurrently serves as director and president of Guangzhou NasSoft Information Technology Co.Ltd. director of Shenzhen Energy Corporation director and vice president of Shenzhen Water Investment Co. Ltd. director of
Shenzhen HTI Group Co. Ltd. director of Xiong'an Lvyan Zhiku Co. Ltd. director of Shenzhen Institute of Building Research Co.Ltd. supervisor of Shenzhen Yixin Investment Co. Ltd. and the director of Shum Yip Investment Development Co. Ltd .; and he
serves as the director of the Company since June 2019.Mr. Chen Yuhui was born in 1965 a senior engineer graduated from Shanghai Jiao Tong University and obtained a bachelor's
degree in marine power and a master's degree in vibration shock & noise (postgraduate degree). In 1989 he worked in the
maintenance department of Shenyang Liming Gas Turbine Co. Ltd.; from December 1989 to June 2006 he worked in Shenzhen
Energy Group Yueliangwan Power Plant and successively held the posts of chief-operator of operation department specialist
engineer of general office deputy director of maintenance department factory deputy manager factory manager etc.; from June
2006 to July 2014 he worked in Shenzhen Energy East Power Plant and held the posts of deputy general manager and operation
director; from July 2014 to August 2017 he served as the chairman general manager and party branch secretary of Zhuhai Shenzhen
Energy Hongwan Power Co. Ltd.; and he has held the posts of director and general manager of the Company and the chairman of
Shennandian (Zhongshan) Power Co. Ltd. and the director of Shen Nan Energy (Singapore) Co. Ltd. since August 2017. From May
2019 to present he has been the deputy secretary of the party committee of the company.
Mr. Wu Guowen born in 1965 an undergraduate He worked in Shenzhen Guangju Energy Co. Ltd. since 1994; and worked in
Shenzhen Yisheng Liquid Storage Co. Ltd. from 2008 to November 2010 and served as deputy GM; he works in Shenzhen Guangju
Real Estate Co. Ltd. From December 2010 to March 2016 and successively appointed as standing deputy GM legal representative
executive director and GM; serves as staff supervisor in Shenzhen Guangju Energy Co. Ltd. since August 2013. he serves as director
standing deputy GM of the Company since April 2016 he serves as chairman of Shenzhen Server Energy Co. Ltd. since March
2018.
Mr. Li Wenying born in 1979 master of business administration graduated from Guanghua School of Management Peking
University with a major in business administration. He successively served as the planning director of National Express Transport
Group Co. Ltd. department manager of Shenzhen Zhongnan Industrial Co. Ltd. department manager of Shenzhen Tongchan Group
Co. Ltd. investment manager senior manager and deputy director of Shenzhen Capital Operation Group Co. Ltd. (Former
Shenzhen Yuanzhi Investment Co. Ltd.) and the deputy director (presiding over the work) of Investment Development Department
of Shenzhen Capital Co. Ltd. He currently serves as the director of the Investment Development Department of Shenzhen Capital
Group Co. Ltd.(former Shenzhen Capital Co. Ltd.) concurrently serves as director of Shenzhen Energy Group Co. Ltd. and
director of Shenzhen SD Microfinance Co. Ltd .; since June 2019 he has been a director of the Company.Mr. Mo Jianmin was born in 1966 a China Certified Public Accountant graduated from School of Law of Nanchang University.
From March 1985 to October 1996 he worked at Tonggu County Taxation Bureau of Jiangxi Province and Local Taxation Bureau of
Tonggu County; from November 1996 to October 1999 he worked at Shenzhen Tongren Certified Public Accountants; from October
1999 to March 2001 he worked at Zhongtianqin Certified Public Accountants; from April 2001 to December 2003 worked at
Shenzhen Languang Enterprise Group; from January 2004 to December 2010 he worked at Shenzhen Jinniu Accounting Firm; from
January 2011 to October 2012 he was appointed as a partner of Jonten Certified Public Accountants Shenzhen Branch; from
November 2012 to May 2014 he served as a partner of Beijing Yongtuo Certified Public Accountants; he has served as a partner of
Da Hua Certified Public Accountants since June 2014. He also serves as independent director of Shenzhen Kunpeng Holdings Co.
Ltd. an unlisted company and independent director of Shenzhen Zhuolineng Technology Co. Ltd. He serves as independent director
of the Company since Nov. 2017.Mr. Chen Zetong was born in 1970 a bachelor of laws at Southwest University of Political Science and Law a master of laws at the
University of Hong Kong a doctor of laws at Jilin University. From 1994 to 2003 he served as a court clerk assistant judge and
judge at the Real Estate Trial Division of Shenzhen Intermediate People's Court; from July to August 2002 he practiced as a judicial
assistant in the High Court of Hong Kong; from 2003 to 2006 he served as the presiding judge at the Economic Trial Division; from
2006 to 2010 he served as the deputy presiding judge at the seventh court of Shenzhen Intermediate People's Court (Corporate
Liquidation and Bankruptcy Trial Division) and presided over the work of this court from June 2006 to August 2008. From 2010 to
2012 he served as a partner of Beijing King & Wood Mallesons. Since 2012 he has been a senior partner of Beijing JunZeJun Law
Offices. He is currently an arbitrator of Shenzhen Court of International Arbitration (Also known as South China International
Economic and Trade Arbitration Commission Shenzhen Arbitration Commission) concurrently an independent director of listed
company Tianma Microelectronics Co. Ltd. (A-share 000050) an independent director of non-listed company Funde Insurance
Holding Co. Ltd. an independent director of Funde Sino Life Co. Ltd. and an independent director of Sino Life Assets
Management Co. Ltd. He serves an independent director of the Company since November 2017
Mr. Du Wei born in 1955 senior engineer Ph.D. graduated from the Institute of Plasma Physics Chinese Academy of Sciences
majoring in nuclear fusion and plasma physics. He served as a cadre of the National Energy Commission assistant engineer and
principal staff member of the Yangtze River Basin Planning Office engineer and deputy manager of China Nanshan Development
Co. Ltd. deputy general manager and general manager of Shenzhen Changjiang Computer Industry Corporation deputy director and
director of the senior manager evaluation and recommendation center of the Organization Department of Shenzhen Municipal
Committee deputy general manager of Shenzhen Expressway Development Co. Ltd.; president of Shenzhen International Western
Logistics Co. Ltd. general manager of Shenzhen International Qianhai Industry (Shenzhen) Co. Ltd. and senior consultant of
Shenzhen International Business Management (Shenzhen) Co. Ltd. He is currently Current Executive Director of Shenzhen Borun
Investment Co. Ltd. and has been an independent director of the Company since November 2019.Members of supervisory committee of the board:
Mr. Ye Qiliang was born in 1963 a member of the Communist Party of China with a college degree. From 1979 to January 1984 he
served in the Army 83020; from January 1984 to March 1997 he worked in Quannan County of Jiangxi Province; from March 1997
to February 1999 he worked at Shenzhen Shennan Petroleum (Group) Co. Ltd. and served as a clerk in the investment department;
from February 1999 to June 2009 he worked at Shenzhen Guangju Energy Co. Ltd. and served as the deputy director of the general
manager office the deputy director of the secretariat of the board of directors and the representative of securities affairs; he serves as
the committee member of labor union of Shenzhen Guangju Energy Co. Ltd. since July 2012; from July 2009 to March 2016 he
successively served as the deputy general manager and general party branch member of Shenzhen Nanshan Petroleum Co. Ltd.; he
has served as the secretary of party general branch of the Company from April 2016 to July 2018 served as the deputy secretary of
party general branch of the Company from July 2018 to May 2019 now he served as deputy party secretary the Company since May
2019. Since November 2017 he has been the chairman of the company's board of supervisors.
Mr. Li Zhiwei born in 1980 senior accountant certified public accountant national leading accountant (enterprise) Doctor of
Accounting graduated from Xiamen University majoring in Accounting. He has successively served as cost strategy planner finance
director of R & D system investment director subsidiary CFO and foreign exchange director of ZTE Corporation and chief
accountant of ZTE Corporation. He currently serves as deputy director of the Planning and Finance Department of Shenzhen Capital
Operation Group Co. Ltd. (Former Shenzhen Yuanzhi Investment Co. Ltd.) and concurrently serves as a director of Shenzhen
CMAF Intelligent Industry Co. Ltd. and a director of Shenzhen SD Microfinance Co. Ltd.; since June 2019 he has been a
supervisor of the Company.Mr. Liao Junkai born in 1988 CPC member master of law graduated from South China University of Technology with a major in
master of law (law). He has successively held positions of assistant supervisor and manager of the Risk Control Department of
Shenzhen Capital Co. Ltd. He is currently the senior manager of the Risk Control Department of Shenzhen Capital Operation Group
Co. Ltd. (Former Shenzhen Yuanzhi Investment Co. Ltd.) concurrently serve as supervisor of Shenzhen Academy of Building
Research Co. Ltd. He has been a supervisor of the Company since June 2019.Mr. Liang Jianqiang born in 1968 an engineer bachelor degree graduated from department of engineering physics of Tsinghua
University in 1991 major in nuclear energy and heat energy utilization. He worked in Shenzhen Moon Bay Gas Turbine Power Plant
from 1991 to 1998 successively served as specialist engineer of gas turbine in operation department sub-director of the gas turbine
in inspection and maintenance department and specialist engineer of planning in inspection and maintenance department. He works
in Shenzhen Nanshan Power Co. Ltd. since July 1998 transferred by Shenzhen Energy Group Co. Ltd and successively served as
deputy chief chief of the inspection and maintenance department deputy chief of the operation department director of production
management department and security chief. Served as chief of production technology department and security chief of the Company
from 2005 to 2013; Serves as deputy director in Nanshan Power Plant in December 2013 and acting manager of Nanshan Power
Plant since October 2017. He serves as director of Nanshan Power Plant in December 2017. Since September 2020 he has served as
the full-time deputy director of the company's safety committee office and currently concurrently serving as Vice Chairman of
Shenzhen New Power Industry Co. Ltd. He serves as employee supervisor of the Company since November 2014
Mr. Peng Bo was born in 1973 a senior economist engineer and a master graduate student. He graduated from Huazhong University
of Science and Technology majoring in power system automation in 1994 and then he majored in business administration at
Huazhong University of Science and Technology and obtained a master's degree. He has been working in Shenzhen Nanshan Power
Co. Ltd. since 1994 and has served as a professional engineer of gas turbine thermal control maintenance supervisor of labor and
capital assistant of office director and deputy director of human resources department; from April 2007 to December 2013 he
served as the director of human resources department and concurrently served as the supervisor of a subsidiary Zhongshan Zhongfa
Power Company; from May 2011 to November 2014 he served as the employee supervisor of the company's sixth board of
supervisors; from December 2013 to December 2017 he served as the deputy director of Nanshan Thermal Power Plant; He has
served as general manager of Nanshan Thermal Power Plant since September 2020 and currently concurrently director of Shenzhen
Shennandian Environmental Protection Co. Ltd. Now he holds the employee supervisor of the Company since November 2017.Senior officers of the Company:
Resume of Director/GM Chen Yuhui and Director/ standing deputy GM Wu Guowen found the aforesaid.Ms. Zhang Jie born in 1968 CHRM Master of Psychology of Beijing University; she was successively study with specialty of
British and American Literature in the Foreign Language Department of Zhengzhou University and specialty of applied psychology
in the Psychology Department Beijing University. She used to work in Henan Provincial Seismological Bureau as a translator in
1990 worked in the financial department and office of Shenzhen Nanshan Power Co. Ltd. since October 1990; she successively held
the posts of secretary office director general manager assistant and employee supervisor of the Company since 1993. and holds the
posts of deputy GM of the Company since December 2006. She worked as chairman of Shenzhen Shen Nan Dian Environment
Protection Co. Ltd from 2014 to September 2018. She holds the secretary of the Board of the Company since 23 December 2015.Mr. Dai Xiji was born in 1969 a bachelor and a senior accountant. From July 1992 to December 1996 he served as an accountant of
Shenzhen Mawan Power Co. Ltd. Mawan Power Plant; from January 1997 to July 1998 he served as an accountant at the finance
department of Shenzhen Energy Corporation Power Generation Branch; from July 1998 to December 1999 he was an accountant at
the finance and accounting division of Shenzhen Energy Group Co. Ltd.; from December 1999 to December 2007 he served as the
deputy director at finance department and the director at finance and accounting division of Mawan Power Plant; from January 2008
to September 2008 she served as the director at finance department of Shenzhen Mawan Power Co. Ltd.; from August to September
2008 he served as the cadre at the preparation office of Binhai Power Plant; from September 2008 to July 2014 he served as the
senior manager at financial management department of Shenzhen Energy Group Co. Ltd.; From February 2011 to June 2014 he
concurrently serves as the manager at the financial management department of Shenzhen Energy Fuel Branch; from July 2014 to
November 2017 he was appointed as the deputy general manager of Shenzhen Energy Fuel Branch he serves as CFO of the
Company since November 2017 and now he also acts as the chairman of Shenzhen New Power Industrial Co. Ltd. the subordinate
Enterprise of the Company and director of Shen Nan Energy (Singapore) Co. Ltd.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Name Name of shareholder’s unit
Position in
shareholder’s
unit n
Worked from Expired on
Received
remuneration from
shareholder’s unit
(Y/N)
Li Xinwei Shenzhen Energy Group Co. Ltd. Director April 24 2019 N
Huang Qing Shenzhen Energy Group Co. Ltd. Director April 24 2019 N
Li Wenying Shenzhen Energy Group Co. Ltd. Director April 24 2019 N
Post-holding in other unit
√Applicable □ Not applicable
Name Name of other units Position in
other unit
Worked from Expired on
Received
remuneration
from other unit
(Y/N)
Li Xinwei
Shenzhen Shen Nan Dian Environment
Protection Co. Ltd.
Chairman October 30 2018 N
Shenzhen Shennandian Turbine
Engineering Technology Co. Ltd.
Chairman January 18 2019 N
Shen Nan Energy (Singapore) Co. Ltd. Director December 27 2017 N
Li Hongsheng Shenzhen Guangju Energy Co. Ltd. Director GM December 22 2007 Y
Huang Qing
Shenzhen Capital Operation Group Co.Ltd.
Deputy
General
Manager
September 1 2016 Y
Chen Yuhui
Shen Nan Dian (Zhongshan) Electric
Power Co. Ltd.
Chairman August 26 2017 N
Shen Nan Energy (Singapore) Co. Ltd. Director December 27 2017 N
Wu Guowen Shenzhen Server Energy Co. Ltd. Chairman May 2 2018 N
Li Wenying
Shenzhen Capital Operation Group Co.Ltd.
Director of
the
Investment
Development
Department
January 1 2014 Y
Li Zhiwei
Shenzhen Capital Operation Group Co.Ltd.
Deputy
director of
accounting
and finance
department
May 1 2018 Y
Liao Junkai
Shenzhen Capital Operation Group Co.Ltd.Senior
manager of
risk control
department
July 1 2014 Y
Shenzhen Institute of Building Research
Co. Ltd.
Supervisor November 4 2020 N
Mo Jianmin
Da Hua Certified Public Accountants Partner June 9 2014 Y
Shenzhen Kunpeng Holdings Co. Ltd.Independent
director
October 2019
N
Shenzhen Zhuolineng Technology Co.Ltd.Independent
director
December 2020
N
Chen Zetong
Junzejun Law Offices Senior partner September 1 2012 Y
Tianma Microelectronics Co. Ltd.Independent
director
June 19 2016 N
Du Wei Shenzhen Borun Investment Co. Ltd.
Executive
director
February 2020 Y
Liang
Jianqiang
Shenzhen New Power Industrial Co. Ltd.Vice
chairman
February 23 2018 N
Shenzhen Nanshan Thermal Power Co.Ltd. Nanshan Thermal Power Plant
GM December 12 2017
September 7
2020
Y
Peng Bo
Shenzhen Shen Nan Dian Environment
Protection Co. Ltd.GM October 16 2017
September 7
2020
Y
Shenzhen Shen Nan Dian Environment
Protection Co. Ltd.
Director October 16 2017
Shenzhen Nanshan Thermal Power Co.Ltd. Nanshan Thermal Power Plant
GM September 7 2020 Y
Dai Xiji
Shenzhen New Power Industrial Co. Ltd. Chairman February 23 2018 N
Shen Nan Energy (Singapore) Co. Ltd. Director December 27 2017 N
Punishment of securities regulatory authority in recent three years to the Company’s current and outgoing directors supervisors and
senior officers during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors supervisors and senior officers
Decision-making procedures recognition basis and payment for directors supervisors and senior officers
1. Decision-making process: In accordance with relevant regulations of “Articles of Association” the stockholders' meeting would
determine the remuneration of directors and supervisors and the board of directors would determine the remuneration of senior
officers.
2. Determine basis: Currently except for the independent directors the Company has no remuneration system for non-independent
directors and supervisors the directors and staff supervisor only received the pay for the post actually served in the Company. The
Board of Directors will define the annual remuneration standard of the senior officers of the Company on the basis of annual
operating performance post rank and other factors and in consideration of the industrial remuneration level. It will decide the
actually paid remuneration standard by referring to the examination of annual operation performance and audit status.
3. Actual payment: the Company is strictly paying the remuneration to directors in line with the decision-making process and
determining basis on remuneration for directors supervisors and senior officers the relevant expenses arising from transportation
accommodation research study and attending a meeting are borne by the Company.Remuneration for directors supervisors and senior officers in reporting period
In 10 thousand Yuan
Name Title Sex Age
Post-holding
status
Total
remuneration
obtained from the
Company (before
taxes)
Whether
remuneration
obtained from
related party of
the Company
Li Xinwei Chairman M 55
Currently in
office
85.50 N
Li Hongsheng Vice chairman M 57
Currently in
office
0.00 Y
Huang Qing Director M 49
Currently in
office
0.00 Y
Chen Yuhui Director GM M 55
Currently in
office
77.50 N
Wu Guowen
Director
Standing deputy
GM
M 55
Currently in
office
72.00 N
Li Wenying Director M 41
Currently in
office
0.00 Y
Mo Jianmin
Independent
director
M 54
Currently in
office
11.90 N
Chen Zetong
Independent
director
M 50
Currently in
office
11.90 N
Du Wei
Independent
director
M 65
Currently in
office
11.90 N
Ye Qiliang
Chairman of
supervisory
committee
M 57
Currently in
office
71.50 N
Li Zhiwei Supervisor M 40
Currently in
office
0.00 Y
Liao Junkai Supervisor M 32
Currently in
office
0.00 Y
Liang Jianqiang
Employee
supervisor
M 52
Currently in
office
43.60 N
Peng Bo
Employee
supervisor
M 47
Currently in
office
41.00 N
Zhang Jie
Deputy GM
secretary of the
Board
F 52
Currently in
office
69.50 N
Dai Xiji CFO M 51
Currently in
office
69.50 N
Total -- -- -- -- 565.80 --
Delegated equity incentive for directors supervisors and senior officers in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees Professional categories Education background
Employee in-post of the parent Company (people) 270
Employee in-post of main Subsidiaries (people) 133
The total number of current employees (people) 403
The total number of current employees to receive pay (people)
403
Retired employee’ s expenses borne by the parent Company and
main Subsidiaries (people)
0
Professional categories
Types of professional category Numbers of professional category
Production staff 224
Sales staff 0
Technical staff 0
Financial staff 23
Administration staff 156
Total 403
Education background
Type of education background Numbers (people)
High school and below
66
3-years regular college graduate and Polytechnic school graduate
166
Bachelor degree
149
Master and above
22
Total 403
2. Remuneration Policy
According to the Company's annual operation performance combined with the market-oriented remuneration in the region and
industry the Board implements a principle of annual remuneration provision with the fixed remuneration as main body which will at
the same time of controlling remuneration cost create conditions for the stable workforce. Meanwhile special incentive mechanism
will be available according to the completion of annual business objectives and core mission so as set up an incentive mechanism
linked with operation performance and exert the incentive role of remuneration.The remuneration of the chairman of board will be submitted to the shareholders' meeting for approval after it has been deliberated
by the board of directors. The remuneration of the general manager deputy general manager and other senior officers’ level will be
prepared by the Board Remuneration and Appraisal Committee and then be submitted to the board of directors for approval. The
Board of Directors will decide the annual remuneration standard of the senior officers of the Company on the basis of annual
operating efficiency post rank and other factors and in consideration of the industrial remuneration level and the actually paid
remuneration standard by referring to the examination of annual operation performance and audit status. The operation team isauthorized to manage the remuneration of other personnel on the principle of “defining salary in terms of post and obtainingremuneration in terms of labor”. Within the annual remuneration limit approved by the board of directors and in compliance with the
remuneration principle and Interim Remuneration Management Provision set down by the Board of Directors determine and execute
the remuneration standard distribution plan examination and incentive method of employees at each level.
3. Implementation of employee training
The Company always attached great importance to staff training and established of the "staff training and management regulations"
and a more perfect training network. Through strengthening the staff training enhancing the staff's job skills and comprehensive
quality to better meet the Company's management management demand for talent while training reserve personnel for the
Company's sustainable development. During the reporting period the Company strictly implemented the training plans that
formulated in beginning of the Year mainly carried out the following aspects of the training:
(1) Safety Training: According to the Production Safety Law other laws and regulations and the Safety Training Regulations of the
Company organize the safety certificate training and following training for the safety principal principal and security officer of the
Company headquarters and affiliated companies in order to meet legal regulatory requirements for security training carry out
emergency drills and safety management procedures training and improve the safety awareness and accident prevention capacity of
management at all levels and employee;
(2) Post qualification training: by means of learning assignments the obtaining of certificate internal training and assessment carry
out certification training for key business and technical post meet with requirements of relevant laws and regulations for vocational
qualification requirements and improve employee job performance ability.
(3) Simulator skills training: relying on gas turbine simulation training base continued to carry out stimulator training for the
operation personnel within three power plants of the Company and improve the practical operation and adaptability to changes of
plant operations personnel.
(4) The induction training of new employees: Carry out systematic and pointed job skill and professional training for the newly
recruited graduates of the company;
(5) Training and study of party members: the Company Party committee and the party branches of the company will formulate
detailed and feasible plans according to the requirements of the higher-level organizations and actively carry out the learning
activities of “two studies and one doing” and “studying makes a stronger country” by adopting various forms such as issuing booksand materials bringing in teachers and experts and leading party members to go out; strictly implement the “three meetings and oneclass” system and develop activities such as “secretary teaches party lessons”. We will ensure that party organizations play the roleof battle-bastion and the majority of party members to play a vanguard and exemplary role through training and study.
4. Labor outsourcing
□ Applicable √ Not applicable
Section X. Corporate Governance
I. Corporate governance of the Company
During the reporting period in accordance with guideline of Company Law Securities Law Corporate Governance Guidelines
Stock Listing Rules and administrative regulations other regulatory documents and requirements of Articles of Associations and
rules of procedures constantly optimized the corporate governance structure maintained sound modern enterprise management
system improve governance and standardization meticulous management and effectively protected the interests and legitimate rights
of listed companies investors and employees.
1. Shareholders' meeting: the Company holds the shareholders general meeting in strict accordance with the legal procedures and to
ensure that the shareholders exercise their rights in accordance with the law. During the reporting period the Company held one
regular shareholders’ meeting and two extraordinary shareholders meeting to carefully deliberate and decide on issues which were
submitted to the general shareholders’ meeting for approval. The convening of the shareholders’ meeting was legal and all
decision-making processes were open fair and just. The qualifications and proposals of the attendees met the requirements of laws
and regulations and the resolutions of the shareholders' general meeting were disclosed in a timely manner after the meeting which
effectively protected all shareholders from exercising their right to know and vote on major issues of the Company in accordance
with the law. Shareholders of the Company earnestly fulfilled their responsibilities under the Company Law and Articles of
Association there were no large shareholders and related parties who occupied or transferred the Company's funds assets and other
resources with various forms.
2. Board of Directors: The Company's board of directors adhered to standardized operation and management took various measures
to strengthen its own construction and improved the board's standardized operation and scientific decision-making level. In the
report period the Board of Directors of the Company held two regular meetings and six extraordinary meetings to carefully research
deliberate and make decisions on significant matters within the rights of board of directors. Four special committees under the Board
of Directors the Strategy and Investment Committee Audit Committee Nomination Committee as well as Remuneration and
Appraisal Committee are carefully deliberated relevant proposals and giving opinions and suggestions. The full use of the active role
of the special committees in major investment decisions important personnel adjustments standardized salary management internal
audit and risk control has effectively ensured the scientific nature of the Company's decisions and the normalization of management.Independent directors played their professional advantages upheld the objective and independent principle and conscientiously
performed their duties and paid attention to the interests of the Company as a whole and those the shareholders of the Company
especially the legitimate interests of minority shareholders. They issued independent opinions on resolutions and brought forward
constructive comments and suggestions on the Company’s standardized operation and risk prevention.
3. Supervisory Committee: pursuit to relevant rules of laws and regulations supervisory committee of the Company perform the
supervision responsibility in line with to the Company and shareholders responsible manner. During the reporting period the
Supervisory Committee of the Board held two regular meetings and four extraordinary meetings effectively supervised the
day-to-day operations of the board of directors the Company's financial status operating conditions related transactions asset
disposal financial investment and the legality and compliance of directors and senior management in performing their duties
independently issued opinions and effectively protected the legitimate rights and interests of the Company and shareholders
especially the small and medium shareholders. At the same time the board of supervisors extended the connotation of supervision
and standardized operation and risk prevention to daily operations the board of supervisors also learned about the Company's
operations and management by attending the shareholders' meetings and attending the board meetings and organizing on-site
inspections on the Company's subsidiaries to better understand the Company's operations and management so as to better perform
supervisory duties.4. Manager Office: During the reporting period the Company's managers strictly implemented various decisions of the shareholders'
meeting and the board of directors in accordance with the requirements of relevant laws and regulations and the Company's Articles
of Association and other regulatory documents and actively organized the Company's various production operation and management
tasks constantly improved the office conference system and internal control system continued to optimize work processes and
decision-making procedures built a harmonious and aggressive corporate culture atmosphere followed the work principle of
reasonable division of labor and enhanced cooperation and the purpose of collective decision-making on major issues and
continuously improved the Company's management level and strive to achieved better business performance.
5. Major information confidentiality : In strict accordance with the regulations and requirement of Rules Governing the Listing of
Stocks and Insiders Registration System to standardize the confidentiality of inside information and submit the inside information
list in strict accordance with relevant regulations kindly reminded the insider information to strictly comply with the related
regulations on insider information confidentiality and stocks trading of the Company before the convening of the meetings of general
shareholders board of directors and supervisory board. There were no significant information disclosures within the reporting period.There were no significant information disclosures within the reporting period. During the reporting period the Company did not
provide undisclosed information to large shareholders in violation of information disclosure requirements.
6. Information disclosure and investor relations management: During the reporting period in strict accordance with the requirement
of relevant laws regulations and normative documents as Company Law Rules Governing the Listing of Stocks and Management
Mechanism of the Information Disclosure conscientiously fulfill the obligation of information disclosure and disclosed the periodic
and Ad-hoc Reports in a timely and fair manner to whole shareholders on China Securities Journal Securities Times Hong Kong
Commercial Daily and Juchao Website with truthfulness accuracy and completeness contents. In 2020 the Company completed the
preparation and disclosure of periodic reports and interim announcements on schedule a total of 62 announcements were issued
throughout the year strive to give investors a complete picture of the Company’s produce operation governance and significant
matters. The Company strictly complied with the requirements of the "Company Investor Relations Management Work System" and
did a good job in investor relations management. In addition to the on-site visit reception it also used the Company's mailbox
investor phone line and the irm.cninfo.com.cn of Shenzhen Stock Exchange the smooth communication channels with investors
enabled investors to have a more comprehensive in-depth and objective understanding of the Company.
7. Internal control and standardized management: During the reporting period in order to better meet the company's needs for
standardized governance and efficient operation in accordance with the requirement of relevant laws regulations and normative
documents combine with actual condition of the Company to established and completed the management mechanism and working
procedure matching the innovation management mode timely to ensure an efficient decision-making and standardization of the
business operation. The Company carried out special audit work on internal control self-evaluation and internal regular audit and
took active and effective measures to improve existing problems and deficiencies. Strengthened the training and ideological
education of directors supervisors senior officers personnel and middle-level management cadres at all levels and emphasized the
performance of duties according to law standardized the words and deeds and fought against corruption. The company has been
striving to prevent business management risks by continuously improving the internal control system increasing the assessment and
rewards and punishments and further improving the standardization of management.
8. Self-examination and continuous improvement of corporate governance: in accordance with the spirit of the "Opinions of the State
Council on Further Improving the Quality of Listed Companies" and the "Notice of the Shenzhen Securities Regulatory Bureau on
Promoting the Implementation of Main Responsibilities of Listed Companies in the Jurisdictional Area to Improve Governance and
Achieve High-Quality Development" and other documents and the relevant requirements of Shenzhen Securities Regulatory Bureau
the company carried out a self-inspection of the governance situation and formed a "Self-inspection Report on the Quality of
Corporate Governance" which was submitted to the Shenzhen Securities Regulatory Bureau within the specified time (before
December 31 2020) and in accordance with the requirements on February 1 2021 the "Self-inspection Report on the Quality of
Corporate Governance" has been submitted to the sixteenth extraordinary meeting of the company's eighth board of directors for
deliberation. In accordance with the spirit of the China Securities Regulatory Commission's "Announcement on Launching Special
Actions on the Governance of Listed Companies" and the requirements of the Shenzhen Securities Regulatory Bureau the company
has initiated relevant work which will be completed on schedule.Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed Company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed Company from CSRC.II. Independence of the Company relative to controlling shareholders’ in aspect of businesses
personnel assets organization and finance
The Company has not controlling shareholder. The Company is completely independent in personnel assets finance business and
institutions and is able to make independent decision and operations.
1. Personnel independence: The Company has set up an independent human resource management system and compensation &
benefits systems. All members of the management level and senior officers are full-time executives and are paid remuneration by the
Company and none of them takes any administrative positions other than director and supervisor in shareholders units. Within the
amount approved by the Board the Company independently hires or fires employees according to the management needs. The
Company has established a more perfect human resources management system and has an independent management right.
2. Assets independence: the Company has independent production facilities and auxiliary systems land use rights property rights
office facilities and equipment. Within the range authorized by the board of directors and general shareholders’ meeting the
Company has the powers of independent acquisition and disposition of assets.
3. Financial independence: The Company has independent financial management and accounting system is equipped with
independent financial management and accounting personnel and establishes a relatively sound financial management system
independent bank account and tax accounts. Within the range authorized by the board of directors and shareholders’ meeting the
Company can made independent financial decision and there are no substantial shareholders with financial management interference
embezzlement of funds and other circumstances.
4. Business independence: the Company independently carries out production and business activities has set up independent and
complete production procurement sales channels and management system. Within the range authorized by the board of directors and
shareholders’ meeting the Company makes its own management decisions carries out self management and takes full
responsibilities for its own profits and losses.
5. Independent organization: The Company in accordance with the needs of production operation management followed modern
enterprise management standards and established a relatively sound organization and management structure. There were neither
interference of shareholders in the establishment and operation of the neither Company nor organization structure shared between
shareholders and the Company.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Session of meeting Type
Ratio of investor
participation
Date Date of disclosure Index of disclosure
First Extraordinary
shareholders’ general
meeting of 2020
Extraordinary
shareholders’ general
meeting
42.09% March 23 2020 March 24 2020
Announcement
name:“ Shenzhen NanshanPower Co. Ltd.Resolution Notice of
First Extraordinary
shareholders’ generalmeeting of 2020”;
Announcement
number:2020-019;published on “ChinaSecurities Journal”
“Securities Times”“Hong Kong
Commercial Daily”
and Juchao Website
Annual General
Meeting of 2019
AGM 38.72% April 10 2020 April 11 2020
Announcement
name:“ Shenzhen NanshanPower Co. Ltd.Resolution Notice of
Annual GeneralMeeting 2019”;
Announcement
number:2020-021;published on “ChinaSecurities Journal”
“Securities Times”“Hong Kong
Commercial Daily”
and Juchao Website
Second
Extraordinary
shareholders’ general
Extraordinary
shareholders’ general
meeting
38.78% October 16 2020 October 17 2020
Announcement
name:“ Shenzhen Nanshanmeeting of 2020 Power Co. Ltd.Resolution Notice of
Second
Extraordinary
shareholders’ generalmeeting of 2020”;
Announcement
number:2020-049;published on “ChinaSecurities Journal”
“Securities Times”“Hong Kong
Commercial Daily”
and Juchao Website
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting and Shareholders General Meeting
Independent
Director
Times of
Board meeting
supposed to
attend in the
report period
Times of
Presence
Times of
attending the
Board Meeting
by
communicatio
n
Times of
entrusted
presence
Times of
Absence
Absent the
Meeting for
the second
time in a row
(Y/N)
Times of
attend the
general
meeting
Mo Jianmin 8 0 8 0 0 N 1
Chen Zetong 8 0 8 0 0 N 2
Du Wei 8 0 8 0 0 N 3
Explanation of absent the Board Meeting for the second time in a row
Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□ Yes √ No
No independent directors come up with objection about Company’s relevant matters in the Period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
Within the reporting period in accordance with the Company Law the Corporate Governance Guidelines Guideline on the
Establishment of Independent Directors in Listed Companies the Working System of Independent Directors the Articles of
Association and other requirements of normative documents and based on the spirit of independence objectivity and the principle of
prudence all independent directors of the Company conscientiously performed their duties understood and paid attention to the
Company's business development and deliberated and voted all resolutions submitted by the board of directors. Besides by means of
their professional advantages in their respective fields all independent directors deeply and prudently judged significant matters for
which the opinions of independent directors were necessary delivered a written independent opinions and made recommendations to
safeguard the legitimate interests of the Company and all shareholders. The Board of Directors fully respected the performance of
duties by independent directors attached great importance to and carefully accepted the views and recommendations of the
independent director. And there were no recommendations of independent directors not adopted.VI. Duty performance of the special committees under the board during the reporting period
(i) Strategy and investment management committee
1. Attending the meeting of the Board and shareholders general meeting keep track of the production operation and development of
the Company
In 2020 member of the strategy and investment management committee attended the 8 meetings of the Board 3 shareholders general
meetings they careful review the all comprehensive documents as Work Report of GM for year of 2019 and Proposal for financial
statement report of 2019 Integrated Business Plans for year of 2020 performing the duties and offering advice and suggestions to
the Board with purpose of keep track of the Company’s production and operation.
2. Convening a meeting of strategy and investment management committee review the company's major investment decisions
On March 5 2020 the Strategy and Investment Management Committee of the 8th Board of Directors of the Company held its fifth
meeting by way of communication voting reviewed and approved the Proposal on Transferred 70% Equity of Shen Nan Dian
(Dongguan) Weimei Electric Power Co. Ltd by Agreement and Proposal on Investing in Yuanzhi RuixinNew Generation Information
Technology Equity Investment Fund and Related Transactions.On March 18 2020 the Strategy and Investment Management Committee of the 8th Board of Directors of the Company held its sixth
meeting by way of communication voting reviewed and approved the 2019 Annual Performance Report of the Strategy and
Investment Management Committee of the Board of Directors and studied and determined the work ideas and work plans for 2020.On September 28 2020 the Strategy and Investment Management Committee of the 8th Board of Directors of the Company held itsseventh meeting by way of communication voting reviewed and approved the “Proposal on Investment in the ZhongshanPrefabricated Building Industrial Park Project" and Proposal on Purchasing Financial Products with Idle Own Funds.On October 22 2020 the Strategy and Investment Management Committee of the 8th Board of Directors of the Company held its
seventh meeting by way of communication voting reviewed and approved the Proposal on Investment for Zhuhai Hengqin Zhuozhi
Investment Partnership (Limited Partnership).(ii) Audit Committee
1. Attending the meeting of the Board and shareholder general meeting know the production operation and development of the
Company
In 2020 the audit committee members of the company’s board of directors attended 8 board meetings 3 shareholders meetings and
carefully reviewed all documents including “2019 Annual General Manager Work Report” and “Proposal on the 2020 Annual
Comprehensive Business Plan” and conduct careful research on documents as auditing reports and internal control system and
relevant proposals creating conditions for conscientious performance of duties and suggestions to the Board.
2. Held meeting of Audit Committee and issued opinions on annual audit and other related matters.
On January 9 2020 the eighth meeting of the Audit Committee of the eighth Board of Directors of the Company was held by
telephone conference. The meeting heard the explanation from Lixin Zhonglian Certified Public Accountants (SPECIAL GENERAL
PARTNERSHIP)’s introduction to the communication issues with the management during the 2019 annual audit and discussed the
important matters raised by the accountants in the audit process item by item and determined the treatment opinions on the important
matters and required the Company to cooperate with the audit institution to finalize the 2019 annual audit report in strict accordance
with the requirements of regulatory authorities.On March 18 2020 the Audit Committee of the 8th Board of Directors of the Company convened the 9th meeting by way of
communication voting and listened to the 2019 Financial Audit Report and 2019 Internal Control Audit Report the deliberation
reviewed and passed the Proposal for Reviewing 2019 Annual Internal Control Evaluation Report the Re-engagaement of Auditing
Institution and Remuneration for year of 2020 and the 2020 Duty Performance Report of the Audit Committee of the Board etc.(iii) Nomination Committee
1. Attending the shareholding meeting and the Board keep track of the production operation and development of the Company
In 2020 members of the Nomination Committee of the 8th Board of Directors attended 8 Board meetings and 3 shareholders
meetings they careful review the all documents as Work Report of GM for year of 2019 and Integrated Business Plans for year of
2020. Keep track of the Company’s production and creating condition for performing the duties and offering advice and suggestions
to the Board.
2. Convened meeting of Nomination Committee consider the review the Performance Report for year of 2019
On March 18 2020 the Nomination Committee of the 8th Board of Directors of the Company convened the 6th meeting reviewed
and approved the Performance Report for year of 2019 of Nomination Committee of the Board and formulated a working ideas and
plans for the year of 2020.(iv) Remuneration and Appraisal Committee
1. Attending the meeting of the Board and shareholders general meeting and propose opinions and plans on remuneration
assessment and reward
In 2020 members of the remuneration and appraisal committee attended 8 Board meetings 3 shareholders’ meetings they careful
review all documents as Work Report of GM for year of 2019 Proposal on the 2019 financial final report and Integrated Business
Plans for year of 2020 and creating condition for offering suggestion and plan to the Board in order to performing their duties;
Furthermore reviewing and deliberating relevant proposals with remuneration and awarding plans concerned keep eyes on the
implementation of remuneration and propose suggestion; organized activities of formulating relevant reward programs and supervise
the implementation which conscientiously fulfill the obligation of diligence and duties.
2. Held meeting of Remuneration and Appraisal Committee deliberated the resolution on the provision of annual remuneration and
relevant rewards with appraisal concerned and make recommendations for the Board of Directors
On March 18 2020 the Remuneration and Appraisal Committee of the 8th Board of Directors convened 4th meeting by way of
communication voting reviewed and approved the Work Report of Remuneration and Appraisal Committee for year of 2019
Proposal to Award the 2019 Profitable Award and Proposal on Accrual of Special Award for Year of 2020.On May 20 2020 the Remuneration and Appraisal Committee of the 8th Board of Directors convened 5th meeting by way of
communication voting reviewed and approved the Proposal on Distribution of Profitable Award for year of 2019.On September 28 2020 the Remuneration and Appraisal Committee of the 8th Board of Directors convened 6th meeting by way of
communication voting reviewed and approved the Proposal on Accrual of Fixed Pay for Year of 2020.
On December 8 2020 the Remuneration and Appraisal Committee of the 8th Board of Directors convened 7th meeting by way of
communication voting reviewed and approved the Proposal on Specific Evaluation and Accrual Method for the Transitional
Development Award for 2020.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior officers
The Remuneration and Evaluation Committee of the Board is responsible for setting down and supervision implementation the
appraisal and remuneration system of Company managers and other senior officers personnel to develop established the
remuneration incentive mechanism liked with operation performance. At the beginning of the year according to the annual operation
target core tasks and post ranks of senior officers and in comprehensive consideration of the industrial and regional remuneration
level research and determine the total amount of remuneration and the remuneration and appraisal standard of senior officers. After
the year ends determine the annual remuneration granting standard in accordance with the appraisal of completion of operation
performance and in combination of the performance of duties of senior officers.IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□ Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control
evaluation report
March 26 2021
Disclosure index of full internal control
evaluation report
“Evaluation report of internal control for year of 2020” published on Juchao Website
(www.cninfo.com.cn)
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the
Company's consolidated financial
statements
99.30%
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the
Company's consolidated financial
100.00%
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Qualitative criteria
Major defects: under major operational
activities there are major defects in several
companies which are consolidated into the
preparation of financial statements or there
are major defects in few of companies which
are consolidated into the preparation of
financial statements but the Company with
major defect are the main one participating
into such major operation activities;
Substantial defects: under major operational
activities there are substantial defects in few
of companies which are consolidated into the
preparation of financial statements or there
are moderate defects in several companies
which are consolidated into the preparation
of financial statements but the Company
with major defect are the main on
participating into such major operation
activities; or there are moderate defects in
few of companies which are consolidated
into the preparation of financial statements
but the Company with moderate defect are
the main one participating into such major
operation activities;
General defects: under major operational
activities there are moderate defects in few
of companies which are consolidated into the
preparation of financial statements and the
Company with moderate defects is not the
main one participating into the major
operational activities; or there are only
general defects in companies which are
consolidated into the preparation of financial
statements; there are no internal control
defects in major operational activities and
there are only internal control defects in
minor operational activities.Major defects: under major operational
activities there are major defects in
several companies which are
consolidated into the preparation of
financial statements or there are major
defects in few of companies which are
consolidated into the preparation of
financial statements but the Company
with major defect are the main one
participating into such major operation
activities;
Substantial defects: under major
operational activities there are
substantial defects in few of companies
which are consolidated into the
preparation of financial statements or
there are moderate defects in several
companies which are consolidated into
the preparation of financial statements
but the Company with major defect are
the main on participating into such major
operation activities; or there are
moderate defects in few of companies
which are consolidated into the
preparation of financial statements but
the Company with moderate defect are
the main one participating into such
major operation activities;
General defects: under major operational
activities there are moderate defects in
few of companies which are consolidated
into the preparation of financial
statements and the Company with
moderate defects is not the main one
participating into the major operational
activities; or there are only general
defects in companies which are
consolidated into the preparation of
financial statements; there are no internal
control defects in major operational
activities and there are only internal
control defects in minor operational
activities.Quantitative standard
Major defects: mistaken amount ≥total assets
in consolidated financial statement×0.5%
Substantial defects: total assets in
consolidated financial
statement×0.2%≤mistaken amount< total
assets in consolidated financial
statement×0.5%
General defect: mistaken amount
assets in consolidated financial
statement×0.2%
Major defects: amount of direct loss
≥total assets in consolidated financial
statement ×0.5%
Substantial defects: total assets in
consolidated financial statement×0.2%≤
amount of direct loss< total assets in
consolidated financial statement×0.5%
General defect: amount of direct loss
statement×0.2%
Amount of significant defects in financial
reports
0
Amount of significant defects in
non-financial reports
0
Amount of important defects in financial
reports
0
Amount of important defects in
non-financial reports
0
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
The accountant firm thinks Shenzhen Nanshan Power Co. Ltd. maintains effective internal control of financial report in all
significant aspects in accordance with the Basic Regulation of Enterprise Internal Control
Disclosure of internal control audit
report
Disclosed
Disclosure date of audit report of
internal control (full-text)
March 26 2021
Index of audit report of internal
control (full-text)
“Audit report of internal control for year of 2020” published on Juchao Website
(www.cninfo.com.cn)
Opinion type of auditing report of
IC
Standard unqualified
whether the non-financial report
had major defects
No
Carried out modified opinion for internal control audit report from CPA
□ Yes √ No
The internal control audit report issued by CPA has concerted opinion with self-evaluation report issued from the Board
√ Yes □ No
Section XI. Corporate Bonds
Whether the Company has a corporate bonds that issuance publicly and listed on stock exchange and without due on the date when
annual report approved for released or fail to cash in full on due
No
Section XII. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report March 24 2021
Name of audit institute
LIXINZHONGLIAN CPAS (SPECIAL GENERAL
PARTNERSHIP)
Number of Audit report LIXINZHONGLIAN Shen Zi[2021]D-0253
Name of CPA Liu Xinfa Cao Wei
Text of Report (Attached)深圳南山热电股份有限公司审计报告
Section XIII. Documents available for Reference
I. Original Annual Report of 2020 carrying the signature of the legal representative of the Company
II. Financial statement with signature and seal of Person in charge of the Company (legal person) person in charge of accounting
works (General manager and chief financial officer) and person in charge of accounting organ(accountant in charge);
III. Original audit report seal with accounting firms and signature and seal from CPA;
IV. Text of notice and original draft that public on China Securities Journal Securities Times and Hong Kong Commercial Daily that
appointed by CSRC within report period.V. The place where the document placed: Shenzhen Stock Exchange Office of Board of Directors of the Company.深圳南山热电股份有限公司审计报告
立信中联会计师事务所（特殊普通合伙）
LixinZhonglian CPAs (SPECIAL GENERAL PARTNERSHIP)深圳南山热电股份有限公司
Shenzhen Nanshan Power Co. Ltd.
Auditor’s Report
Lixin Zhonglian Shen Zi[2021]D-0253深圳南山热电股份有限公司审计报告
Content
I. Auditor’s Report 1—6
II. Financial Statement
1. Consolidated Balance Sheet and Balance Sheet of Parent Company
1—4
2. Consolidated Profit Statement and Profit Statement for Parent Company
5—6
3.Consolidated Cash Flow Statement and Cash Flow Statement for Parent Company
7—8
Consolidated Statement of Changes in Shareholders’ Equity and Changes in Shareholder’s Equity
9—12
5.Annotations of Financial Statement 1—81深圳南山热电股份有限公司审计报告
Auditor’s Report
LixinZhonglian Shen Zi[2021]D-0253
To Shareholders of Shenzhen Nanshan Power Co. Ltd.
I. Auditor’s opinion
We as the auditors audited the financial statements of Shenzhen Nanshan Power Co. Ltd. (hereinafter the “Company”) which
included the consolidated and parent company’s balance sheet as of 31 December 2020 the consolidated and parent company’s
statement of income the consolidated and parent company’s statement of cash flow and the consolidated statement of changes in
equity of the Company and parent company’s for the year ended 31 December 2020 together with the relevant notes thereto.We have the view that the attached financial statements are prepared in accordance with the Accounting Standards for Business
Enterprises in all material aspects which reflect fairly the consolidated financial position of the Company and parent company’s as
of 31 December 2020 and the operating results and cash flow of the Company and parent company’s for the year of 2020.
II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of the PRC. The
section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the audit report has further clarified
our responsibilities under these standards. Pursuant to the code of professional conduct as certified public accountant in the PRC
we are independent of the Company and have performed other responsibility as required by our professional ethics. We believe that
the audit evidence obtained by us is sufficient and adequate which provides foundation for us to issue audit opinion.III. Key audit items
Key audit issues refer to those which in our opinion based on our professional judgment are the most important issues in respect of
audit for the current financial statements. We issue audit opinions on these issues in their entity and provide no opinions separately
for each of them.Key audit items Countermeasures
(i) Impairment of assets
Reference to the Annotations of Financial Statement with the
“19. Accounting policy” in Note III. Major accounting
policies and estimation and the note (40) of V. Annotation of
the items in consolidate financial statement
As at 31 December 2020 the Company has fixed assets
and construction in progress with carrying value of RM
B 968527921.65 in total accounting for 32.05% of t
he consolidated total assets and 89.11% of the non-curre
Auditing procedures on the impairment of assets including:
1.assess and test the design and effectiveness of execution of
the internal control related to assets impairment;
2.select samples of assets to implement supervision proce
dure so as to understand whether the assets experience
backward crafts long-term idle and load rate;
3.Make use of the work of the experts of external appra
iser comprehensively evaluate the parameters used in ass
LixinZhonglian CPAs (SPECIAL GENERAL PARTNERSHIP)深圳南山热电股份有限公司审计报告
nt assets of the Company which constitutes the essential
part of the Company’s assets. For the year of 2020
the assets impairment loss recognized in consolidat
e financial statement amounted to RMB 43718679.
38 a 62.14% takes in total profit of the consolidat
e profit statement which has a great impact on th
e operating results of Shen Nan Dian.The management has assessed whether there is any sign of
impairment in above assets. For those assets with
impairment sign identified the management makes
impairment test by comparison between the recoverable
amount of the assets (calculated individually or the assets
group in which the asset belongs to) and their carrying value.Since the management of Shen Nan Dian needs to deter
mine the estimated recoverable amount of assets with sig
nificant accounting estimation and judgment and the imp
act amount is significant we determine the impairment o
f assets as a key audit item
essment method of the external appraiser’s qualification a
nd competency
(ii) Revenue recognition principle
As for the accounting policy for revenue recognition and
analysis of revenue reference to the Annotations of Financial
Statement with the “(24) Accounting policy” in Note III
Major accounting policies and estimation and the Note (31).in V. Annotation of the items in consolidate financial
statement
In 2020 consolidate operation revenue for Shen Nan Dian
amounted as RMB 985253831.58 a 19.41% down from a
year earlier.Since the operation revenue is one of the key performan
ce indicators of the Company and there is an inherent ri
sk that the revenue recognition point may be manipulate
d to achieve specific objectives or expectations we ident
ify the revenue recognition as a key audit item.
Auditing procedures with recognition of operation revenue
concerned including:
1. Evaluate the design and operational effectiveness of key
internal controls related to revenue recognition;
2. Select sample to examining the sales contract identify
terms and conditions of the contract relating to the transfer of
risk and reward in the ownership of the goods and to evaluate
whether the point of revenue recognition conforms to the
requirements of Accounting Standards for Business
Enterprises;
3. Make substantial analysis process with respect to operating
income and gross profit and make judgment on the
reasonableness of the change in operating income and gross
profit for the period;
4. Select samples from the accounting records of operating
income and settlement sheet of power rate to review the
truthfulness and completeness of operating revenue
recognition; inspect receivables records and select samples to
issue letters to enquire the balance of ending trade receivables
and amount received in advance. Together with the collection
of trade receivables in subsequent periods to confirm the
truthfulness of sales transactions;
5. Make deadline test on operating income to confirm w深圳南山热电股份有限公司审计报告
IV. Other information
The management of Shen Nan Dian (hereinafter the Management) is responsible for other information which includes the
information covered in the Annual Report of 2020 except for the financial statements and our audit report.Our audit opinion issued on financial statement does not cover other information and we would not issue any form of verification
conclusion for those information.To prepare our audit on financial statement we are required to read other information and during the procedure to consider that
whether other information differs materially from the financial statement or the information obtained by us during the audit or
whether there exits material error.
Based on the works done by us in case we find any material error in other information we shall report this fact. In this regard we
have nothing to report.V. Management’s responsibility for financial statements
The Management is responsible for preparing financial statements according to the Business Accounting Standards which make fair
reflection and for designing implementing and maintaining necessary internal control system to make sure that there is no material
misstatement in the financial statements due to fraud or mistake.When preparing the financial statements the management is responsible for assessing the Company’s ability of continuous
operation disclosing the matters relating to continuous operation and applying the assumption of continuous operation unless the
management plans to liquidate the Company terminate operation or has no other practicable choice.The governance is responsible for monitoring the financial reporting process of the Company.VI. Auditor’s responsibility for audit of the financial statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with auditing standards will always be found in
the presence of a material misstatement. Misstatements can arise from fraud or error and are considered material if individually or
in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with auditing standards we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
(1)Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for
hether the operating income is recorded in appropriate ac
counting periods.深圳南山热电股份有限公司审计报告
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as
fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
(2)Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3)Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
(4)Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence
obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our
auditor’s report to the related disclosures in these financial statements or if such disclosures are inadequate we have to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future events or
conditions may cause the Company to cease to continue as a going concern.
(5)Evaluate the overall presentation structure and content of the financial statements and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
(6)Obtain adequate and appropriate audit evidence in relation to the financial information of the entities or business transactions of
the Company in order to issue audit opinion on the financial statement. We are responsible for guiding supervising and executing
the audit for the Group and we accept full responsibility for the audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit
and significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence and related safeguards (if applicable).
From the matters communicated with those charged with governance we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.LIXINZHONGLIAN CPAs
(SPECIAL GENERAL PARTNERSHIP) Chinese CPA (Engagement partner):深圳南山热电股份有限公司审计报告
Chinese CPA:
Tianjin China March 24 2021深圳南山热电股份有限公司审计报告
Financial Statements
1. Consolidated balance sheet
Shenzhen Nanshan Power Co. Ltd.
December 31 2020
In RMB
Item December 31 2020 December 31 2019
Current assets:
Monetary funds 764601272.21 773209854.84
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable
Account receivable 85293052.88 178150580.32
Receivable financing
Accounts paid in advance 29544788.35 70005681.50
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 31027754.36 32321826.94
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 100245529.06 124686443.61
Contractual assets 7229600.00
Assets held for sale
Non-current asset due within one
year
Other current assets 917288244.54 445236731.33
Total current assets 1935230241.40 1623611118.54
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 8893408.86 14619203.03
Investment in other equity
instrument
81615000.00 60615000.00
Other non-current financial assets
Investment real estate 2205189.40 2401327.00
Fixed assets 925745208.55 1381675872.68
Construction in progress 42782712.98 66474630.23
Productive biological asset
Oil and gas asset
Right-of-use assets深圳南山热电股份有限公司审计报告
Intangible assets 21125610.24 43602166.44
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
1027508.94 1174171.16
Deferred income tax asset 2206049.69 2206049.69
Other non-current asset 22882181.78
Total non-current asset 1085600688.66 1595650602.01
Total assets 3020830930.06 3219261720.55
Current liabilities:
Short-term loans 675528858.48 881075378.48
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 30467345.48
Account payable 9306303.26 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 69426903.97 55208432.53
Taxes payable 7626258.26 21769273.77
Other account payable 27020944.95 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 819376614.40 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深圳南山热电股份有限公司审计报告
Accrual liability 19923508.28 26646056.28
Deferred income 93780657.93 108507683.52
Deferred income tax liabilities
Other non-current liabilities 7627.86
Total non-current liabilities 113711794.07 135153739.80
Total liabilities 933088408.47 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 758799931.94 706830892.54
Total owner’ s equity attributable to
parent company
2054741847.64 2002772808.24
Minority interests 33000673.95 59719513.26
Total owner’ s equity 2087742521.59 2062492321.50
Total liabilities and owner’ s equity 3020830930.06 3219261720.55
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of Accounting Institution: Shang Ying
2. Balance Sheet of Parent Company
In RMB
Item December 31 2020 December 31 2019
Current assets:
Monetary funds 656244294.18 632948706.11
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 24673115.32 31824693.69
Receivable financing
Accounts paid in advance 25560315.87 46152700.57
Other account receivable 598044417.89 873861071.55
Including: Interest receivable
Dividend receivable
Inventories 91867492.38 101728367.43深圳南山热电股份有限公司审计报告
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 910645154.56 438613774.49
Total current assets 2307034790.20 2125129313.84
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 250191165.00 303341165.00
Investment in other equity
instrument
60615000.00 60615000.00
Other non-current financial assets
Investment real estate
Fixed assets 312649354.95 321395526.04
Construction in progress 1073964.84 1949450.23
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 332241.43 404104.06
Research and development costs
Goodwill
Long-term deferred expenses 734374.41 790841.39
Deferred income tax assets
Other non-current assets
Total non-current assets 625596100.63 688496086.72
Total assets 2932630890.83 2813625400.56
Current liabilities
Short-term borrowings 675528858.48 580640114.59
Trading financial liability
Derivative financial liability
Notes payable 30467345.48
Account payable 998036.56 864016.74
Accounts received in advance
Contractual liability
Wage payable 53405473.63 33840544.53
Taxes payable 1752749.94 718630.17
Other accounts payable 204960979.45 203332331.14
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 967113443.54 819395637.17
Non-current liabilities:
Long-term loans深圳南山热电股份有限公司审计报告
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities
Deferred income 54805440.92 58261356.20
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 54805440.92 58261356.20
Total liabilities 1021918884.46 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 685077973.07 710334373.89
Total owner’s equity 1910712006.37 1935968407.19
Total liabilities and owner’s equity 2932630890.83 2813625400.56
3. Consolidated Profit Statement
In RMB
Item 2020 2019
I. Total operating income 985253831.58 1222577954.53
Including: Operating income 985253831.58 1222577954.53
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 928092033.49 1207009412.33
Including: Operating cost 794523810.39 1061916713.85
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深圳南山热电股份有限公司审计报告
Reinsurance expense
Tax and extras 8545858.05 7640784.83
Sales expense 4979915.34 5599305.43
Administrative expense 111618225.09 109541900.18
R&D expense 8490882.58
Financial expense -66657.96 22310708.04
Including: Interest
expenses
32014803.26 49212452.58
Interest income 32660554.45 26884777.55
Add: other income 22711318.05 10137838.38
Investment income (Loss is
listed with “-”)
27809087.38 -1429841.92
Including: Investment income
on affiliated company and joint venture
-5725794.17 -1429841.92
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 “-”)
-556572.76
Losses of devaluation of asset
(Loss is listed with “-”)
-43718679.38
Income from assets disposal
(Loss is listed with “-”)
-1109128.91 -279099.94
III. Operating profit (Loss is listed with
“-”)
62854395.23 23440865.96
Add: Non-operating income 6585316.78 5601216.93
Less: Non-operating expense 153719.62 270348.79
IV. Total profit (Loss is listed with “-”) 69285992.39 28771734.10
Less: Income tax expense 1361203.90 3078791.48
V. Net profit (Net loss is listed with “-”) 67924788.49 25692942.62
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”)
67924788.49 25692942.62
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
64024291.32 24900956.73
2.Minority shareholders’ gains and
losses
3900497.17 791985.89
VI. Net after-tax of other comprehensive
income
2500000.00
Net after-tax of other comprehensive
income attributable to owners of parent
company
2500000.00
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
2500000.00深圳南山热电股份有限公司审计报告
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
2500000.00
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 67924788.49 28192942.62
Total comprehensive income
attributable to owners of parent Company
64024291.32 27400956.73
Total comprehensive income
attributable to minority shareholders
3900497.17 791985.89
VIII. Earnings per share:
(i) Basic earnings per share 0.1062 0.0413
(ii) Diluted earnings per share 0.1062 0.0413
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of Accounting Institution: Shang Ying
4. Profit Statement of Parent Company
In RMB
Item 2020 2019
I. Operating income 375980848.55 406004521.28
Less: Operating cost 350765440.51 388210502.44
Taxes and surcharge 1869505.05 2361313.49深圳南山热电股份有限公司审计报告
Sales expenses
Administration expenses 61463793.70 54248280.07
R&D expenses
Financial expenses -33786954.71 -30081146.05
Including: interest
expenses
28907352.91 39534771.43
Interest income 62595082.66 69680898.66
Add: other income 14052451.52 7437748.94
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 “-”)
-7399234.51
Income on disposal of assets
(Loss is listed with “-”)
-1085739.91 -231973.37
II. Operating profit (Loss is listed with
“-”)
-13195858.90 -1528653.10
Add: Non-operating income - 46869.52
Less: Non-operating expense 5290.00 12018.03
III. Total Profit (Loss is listed with “-”) -13201148.90 -1493801.61
Less: Income tax -2246824.86
IV. Net profit (Net loss is listed with
“-”)
-13201148.90 753023.25
(i)continuous operating net profit(net loss listed with ‘-”)
-13201148.90 753023.25
(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深圳南山热电股份有限公司审计报告
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 -13201148.90 753023.25
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2020 2019
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
1108562507.27 1331274801.35
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
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 1601602.02 3984902.00
Other cash received concerning
operating activities
45950570.01 78737812.66
Subtotal of cash inflow arising from 1156114679.30 1413997516.01深圳南山热电股份有限公司审计报告
operating activities
Cash paid for purchasing
commodities and receiving labor
service
631546077.17 968845362.61
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 144256547.88 144365094.41
Taxes paid 61168879.09 40161219.78
Other cash paid concerning
operating activities
58417766.14 57681930.60
Subtotal of cash outflow arising from
operating activities
895389270.28 1211053607.40
Net cash flows arising from operating
activities
260725409.02 202943908.61
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
32000000.00
Cash received from investment
income
6273.97
Net cash received from disposal of
fixed intangible and other long-term
assets
540.00 1990145.00
Net cash received from disposal of
subsidiaries and other units
32412836.98
Other cash received concerning
investing activities
7907964.80 1489600.00
Subtotal of cash inflow from investing
activities
40321341.78 35486018.97
Cash paid for purchasing fixed
intangible and other long-term assets
18670897.05 75242132.78
Cash paid for investment 510190094.90 118000000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
activities
528860991.95 193242132.78
Net cash flows arising from investing
activities
-488539650.17 -157756113.81
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
85632.79
Including: Cash received from深圳南山热电股份有限公司审计报告
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 1148033285.00 1460000000.00
Other cash received concerning
financing activities
170000000.00 5170000.00
Subtotal of cash inflow from financing
activities
1318118917.79 1465170000.00
Cash paid for settling debts 1056000000.00 1605940000.00
Cash paid for dividend and profit
distributing or interest paying
39905513.17 47992661.32
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
887962.40
Subtotal of cash outflow from financing
activities
1096793475.57 1653932661.32
Net cash flows arising from financing
activities
221325442.22 -188762661.32
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-399929.82 108255.78
V. Net increase of cash and cash
equivalents
-6888728.75 -143466610.74
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
764601272.21 771490000.96
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 2019
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
533744518.18 563020587.66
Write-back of tax received 312882.87
Other cash received concerning
operating activities
624995145.52 72985064.74
Subtotal of cash inflow arising from
operating activities
1159052546.57 636005652.40
Cash paid for purchasing
commodities and receiving labor
service
283488305.67 395885100.64
Cash paid to/for staff and workers 95218999.45 90154340.11
Taxes paid 2899621.27 11935461.99
Other cash paid concerning
operating activities
357365024.96 49268827.60
Subtotal of cash outflow arising from
operating activities
738971951.35 547243730.34
Net cash flows arising from operating
activities
420080595.22 88761922.06
II. Cash flows arising from investing深圳南山热电股份有限公司审计报告
activities:
Cash received from recovering
investment
32000000.00
Cash received from investment
income
6273.97
Net cash received from disposal of
fixed intangible and other long-term
assets
1795100.00
Net cash received from disposal of
subsidiaries and other units
59990000.00
Other cash received concerning
investing activities
6763164.80 488010509.85
Subtotal of cash inflow from investing
activities
66753164.80 521811883.82
Cash paid for purchasing fixed
intangible and other long-term assets
9391182.84 51869922.10
Cash paid for investment 489190094.90 118000000.00
Net cash received from
subsidiaries and other units obtained
21272400.00
Other cash paid concerning
investing activities
275000000.00
Subtotal of cash outflow from investing
activities
519853677.74 444869922.10
Net cash flows arising from investing
activities
-453100512.94 76941961.72
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 848033285.00 1160000000.00
Other cash received concerning
financing activities
25000000.00
Subtotal of cash inflow from financing
activities
848033285.00 1185000000.00
Cash paid for settling debts 756000000.00 1440000000.00
Cash paid for dividend and profit
distributing or interest paying
34827027.04 36757499.51
Other cash paid concerning
financing activities
887962.40 7039888.75
Subtotal of cash outflow from financing
activities
791714989.44 1483797388.26
Net cash flows arising from financing
activities
56318295.56 -298797388.26
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-2789.77 747.58
V. Net increase of cash and cash
equivalents
23295588.07 -133092756.90
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
656244294.18 632948706.11深圳南山热电股份有限公司审计报告
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
Item
2020
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 end of the
previous 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
“-”)
51969
039.4
0
51969
039.4
0
-2671
8839.
31
25250
200.0
9
(i) Total
comprehensive
income
64024
291.3
2
64024
291.3
2
3900
497.17
67924
788.4
9
(ii) Owners’
devoted and
decreased
capital
0.00
-3061
9336.
48
-3061
9336.
48
1.Common
shares invested
by shareholders
2. Capital深圳南山热电股份有限公司审计报告
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深圳南山热电股份有限公司审计报告
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
75879
9931.
94
2054
74184
7.64
33000
673.9
5
2087
74252
1.59
Last Period
In RMB
Item
2019
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
-2500
000.00
2500
000.00
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at
the end of the
previous year
6027
6259
6.00
36277
0922.
10
-2500
000.00
33290
8397.
60
68192
9935.
81
1977
87185
1.51
58927
527.37
20367
99378.
88
III. Increase/
Decrease in this
year (Decrease
is listed with
24900
956.7
3
24900
956.7
3
791985
.89
25692
942.62深圳南山热电股份有限公司审计报告
“-”)
(i) Total
comprehensive
income
24900
956.7
3
24900
956.7
3
791985
.89
25692
942.62
(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)深圳南山热电股份有限公司审计报告
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
70683
0892.
54
2002
77280
8.24
59719
513.26
20624
92321.
50
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
Item
2020
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
602762
596.00
289963
039.70
332908
397.60
710334
373.89
1935968
407.19
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other深圳南山热电股份有限公司审计报告
II. Balance at the
end of the
previous year
602762
596.00
289963
039.70
332908
397.60
710334
373.89
1935968
407.19
III. Increase/
Decrease in this
year (Decrease is
listed with “-”)
-25256
400.82
-2525640
0.82
(i) Total
comprehensive
income
-13201
148.90
-1320114
8.90
(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深圳南山热电股份有限公司审计报告
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
602762
596.00
289963
039.70
332908
397.60
685077
973.07
1910712
006.37
Last period
In RMB
Item
2019
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
year
60276
2596.
00
289963
039.70
332908
397.60
7095813
50.64
19352153
83.94
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at
the end of the
previous 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
753023.2
5
753023.25深圳南山热电股份有限公司审计报告
“-”)
(i) Total
comprehensive
income
753023.2
5
753023.25
(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深圳南山热电股份有限公司审计报告
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
7103343
73.89
19359684
07.19深圳南山热电股份有限公司审计报告
Shenzhen Nanshan Power Co. Ltd.Notes to financial statement 2020
(Unless otherwise stated the amount of unit is RMB/CNY)
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 24 March 2021.
(2) Scope of financial statement
(i) There are 9 subsidiaries included in the consolidate financial statement including:
Subsidiary Share holding ratio % NoteShen Nan Dian (Zhongshan) Electric Power Co. Ltd.（“Zhongshan ElectricPower”）
80.00Shenzhen Shennandian Turbine Engineering Technology Co. Ltd.（“Engineering
Company”）
100.00Shenzhen Shen Nan Dian Environment Protection Co. Ltd.（“EnvironmentProtection Company”）
100.00
Shenzhen Server Petrochemical Supplying Co. Ltd（“Shenzhen Server”） 50.00
Shenzhen New Power Industrial Co. Ltd.（“New Power”） 100.00
Shen Nan Energy (Singapore) Co. Ltd.（“Singapore Company”） 100.00
Hong Kong Syndisome Co. Ltd.（“Syndisome”） 100.00
Zhongshan Shen Nan Dian Storage Co. Ltd.（“Shen Storage”） 80.00
Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) 99.9643
New in current
period深圳南山热电股份有限公司审计报告
(ii)Subsidiaries special purpose entities and the operating entities with their control rights formed through
entrusted operations or leases are no longer included in the consolidation scope in the current period.Name Reasons for changes
Shen Nan Dian (Dongguan) Weimei Electric Power Co. Ltd Equity disposal
Changes of the entity within the consolidation scope found more in Note VII. Change of consolidated scope
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 (15) Fixed assets and the (24) Revenue under Note III. For explanation on material accounting judgment and estimate issued
by the management please refer to (29) 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 changes of owners(shareholders) equity and cash flows of the Company
in reporting period in truthfulness and completeness.
(2) Accounting period
A fiscal year from January 1 to December 31 of the Gregorian calendar.
(3) Operating cycle深圳南山热电股份有限公司审计报告
The Company takes 12 months of a year as the normal operating cycle and takes the operating cycle as the
standard for the liquidity division of assets and liabilities.
(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 combining party 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 purchaser'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 directly relevant fees incurred in the merger of enterprises shall be reckon into the current gains/losses when
incurred; the transaction costs of issuing equity securities or debt security for the purpose of enterprise
combination should be reckon into the initial recognition of equity security or debt security.
(6) Preparation methods for consolidated statement
1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis including the Company and all
subsidiaries.
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深圳南山热电股份有限公司审计报告
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深圳南山热电股份有限公司审计报告
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深圳南山热电股份有限公司审计报告
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 (13) 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.深圳南山热电股份有限公司审计报告
(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 expenses 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.深圳南山热电股份有限公司审计报告
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.
According to the above conditions the financial liabilities designated by the Company mainly include: (Specific description of the
designated situation)
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深圳南山热电股份有限公司审计报告
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.
(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 book value and the consideration paid is included
in the current gains/losses.
(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.深圳南山热电股份有限公司审计报告
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 the financial assets
(debt instrument) measured by fair value and with its variation reckoned into other c comprehensive income and
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 the financial assets
(debt instrument) measured by fair value and with its variation reckoned into other comprehensive income and 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深圳南山热电股份有限公司审计报告
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
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.Regarding the note receivable account receivables and receivables financing 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.
For lease receivables and long-term receivables formed by the company through sales of goods or rendering of
services the Company always chooses to measure the loss reserves at an amount equivalent to expected credit
losses during the entire duration.深圳南山热电股份有限公司审计报告
For notes receivable accounts receivable other receivables financing of accounts receivable and long-term receivables with
objective evidence showing that there is impairment and is applicable to individual assessment perform separate impairment tests
confirm expected credit losses and make provisions for impairment; for notes receivable accounts receivable other receivables
and financing of accounts receivable for which there is no objective basis for impairment or when there is insufficient evidence to
assess expected credit losses at a reasonable cost at the level of individual instruments the Company refers to historical credit loss
experience combines with current conditions and judgments on future economic conditions and divides the notes receivable
accounts receivable other receivables financing of accounts receivable and long-term receivables into several portfolios based on
the characteristics of credit risk and calculates the expected credit loss on the basis of the portfolio. Details as follows:
(1)Note receivables
Name of the combination Method of measuring credit loss
Bank acceptance bill of state-owned banks
For notes receivable classified as bank acceptance portfolio the management
appraises that such payments have low credit risks and low expected credit
loss rate and should make no provision for impairment.
(2)Account receivable
Name of the combination Method of measuring credit loss
Electricity transaction receivable Regarding accounts receivable divided into power transactions engineering
operation and maintenance and environmental protection services referring
to historical credit loss experience and combined with current conditions and
forecasts of future economic conditions the management evaluates that such
payments have low credit risk and low expected credit loss rate so no
impairment provision is made; unless there is evidence that the credit risk of a
certain receivable is relatively large.Receivable for engineering operation and
maintenance
Environmental protection labor receivables
(3)Other account receivable
Name of the combination Method of measuring credit loss
Combination of the export tax rebate VAT rebate
upon levy
The company classifies the payments tax refunds receivable and collection
and withholding payments from subsidiaries within the scope of accounts
receivable consolidation that have no significant recovery risks into other
portfolios and no bad debt provision is made.
Combination of the deposit margin reserve
Other vary receivable and temporary payment in
addition to the above combination
(4)Receivable financing
Name of the combination Method of measuring credit loss
Bank acceptance bill of the bank with lower credit
risk
With reference to historical credit loss experience combined with current
conditions and forecasts of future economic conditions the expected credit
loss is calculated through the default risk exposure and the expected credit
loss rate of the entire duration.Trade acceptance
(11) Inventory深圳南山热电股份有限公司审计报告
1. Categories of inventory
Inventory consists of fuels and raw materials etc.
2. Valuation method of delivered inventory
The inventories are valued on a weighted average basis at the time of delivery.
3.Basis for determining the net realizable value of different types of inventories
For inventory of products that are directly used for sale such as finished products inventory products and
materials for sale in the normal production and operation process the amount after subtracting the estimated
selling expenses and relevant taxes from the estimated selling price shall be used to determine the net realizable
value. For inventory of materials that need to be processed in the normal production and operation process the
amount after subtracting the estimated cost estimated sales expense and related taxes at the time of completion
from the estimated selling price of the finished product shall be used to determine the net realizable value. The
net realizable value of the inventory held for the execution of the sales contract or labor service contract is
calculated on the basis of the contract price. If the quantity of the inventory held is more than the quantity
ordered by the sales contract the net realizable value of the excess inventory is calculated based on the general
sales price.
At the end of the period provision for inventory depreciation is made based on a single inventory item; but for inventory with a
large quantity and low unit price provision for inventory depreciation is made based on the inventory category. For inventories that
are related to the product series produced and sold in the same region have the same or similar end-use or purpose and are difficult
to measure separately from other items the inventory depreciation reserve shall be accrued in a consolidated manner.
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
(12) 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.The Company's determination method and accounting treatment method for the expected credit loss of contract assets are detailed in
Note III/(10) 6. Impairment of financial instruments.
(13) Long-term equity investment
1. Criteria judgement for joint control and significant influence深圳南山热电股份有限公司审计报告
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深圳南山热电股份有限公司审计报告
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 accrual liabilities are recognized according to the estimated obligations and included in the current investment loss.深圳南山热电股份有限公司审计报告
(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.
(14) Investment real estate深圳南山热电股份有限公司审计报告
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.
(15) 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
The depreciation of fixed assets is calculated and accrued by the straight-line depreciation method and the depreciation rate is
determined according to the fixed asset category estimated useful life and estimated net residual value rate. If the service life of
each component of the fixed asset is different or the economic benefits are provided to the enterprise in different ways different
depreciation rates or depreciation methods shall be selected and depreciation shall be calculated separately.
Depreciation method depreciation period residuals rate and annual depreciation rate for all kinds of fixed assets
are as follows:
Category Depreciation method Depreciation period (Year) Residuals rate(%)
Annual depreciation
rate (%)
Houses and
buildings
Straight-line 20 years 10 4.5
Equipment-fuel
machinery
sets(Note)
The work quantity
method
10
Equipment (fuel
machinery sets
excluded)
Straight-line 15-20 years 10 4.5-6
Transportation tools Straight-line 5 years 10 18
Other Straight-line 5 years 10 18深圳南山热电股份有限公司审计报告
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
(16) Construction-in-progress
Construction in progress take the necessary expenditures incurred before the construction of the asset reaching the expected usable
state as the entry value of the fixed assets. If the constructed fixed assets have reached the expected usable state of the project but
the final accounts for completion have not yet been processed from the date of reaching the expected usable state the constructed
fixed assets will be transferred to the fixed assets at the estimated value based on the project budget cost or actual project cost and
accrue the depreciation of fixed assets according to the Company's fixed asset depreciation policy and adjust the original temporary
estimated value according to the actual cost after completing the final accounts but not adjust the original accrued depreciation
amount.
(17) Borrowing expenses
1.Recognition principle of the capitalization of 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.If the borrowing expenses incurred by the company can be directly attributable to the acquisition construction or production of
assets that meet the capitalization conditions they shall be capitalized and included in the cost of the relevant assets; other
borrowing expenses shall be recognized as expenses based on the amount incurred when incurred and included in current profit and
loss.
Assets qualified for capitalization refers to the fixed assets investment real estate inventory and other assets that require a
considerable period of time for purchase construction or production activities to reach the intended use or sale status.The capitalization of borrowing expenses starts when the following conditions are met at the same time:
(1) Asset expenditures have occurred including expenditures in the form of paying cash transferring non-cash
assets or assuming interest-bearing debts for the acquisition construction or production of assets that meet the
conditions for capitalization;深圳南山热电股份有限公司审计报告
(2) borrowing expenses have incurred;
(3) The acquisition construction or production activities necessary for the assets to reach the intended usable or
saleable state have begun.
2. Period of capitalization of borrowing expenses
The period of capitalization refers to the period from the point when the capitalization of the borrowing expenses
starts to the point when the capitalization is stopped. The period during which the capitalization of the borrowing
expenses is suspended is not included.When the acquisition construction or production of assets that meet the capitalization conditions reaches the
intended usable or saleable state the capitalization of borrowing expenses shall cease.When part of projects in the acquisition construction or production of assets that meet the capitalization
conditions are completed separately and can be used independently the capitalization of the borrowing expenses
of the part of the assets shall be stopped.If each part of the assets purchased constructed or produced is completed separately but cannot be used or sold
until the entirety is completed the capitalization of borrowing expenses shall be stopped when the entire asset is
completed.
3. The period of suspension of capitalization
If an abnormal interruption occurs during the acquisition construction or production of an asset that meets the
capitalization conditions and the interruption lasts for more than 3 months the capitalization of borrowing
expenses shall be suspended; if the interruption is the necessary procedure for the acquisition construction or
production of assets that meet the capitalization conditions to reach the intended usable state or saleable state the
borrowing expenses shall continue to be capitalized. The borrowing expenses incurred during the interruption
period shall be recognized as the current profit and loss and the borrowing expenses shall continue to be
capitalized until the acquisition construction or production of the asset restarts.
4. Calculation method of capitalization rate and capitalization amount of borrowing expenses
For special loans borrowed for the acquisition construction or production of assets that meet the capitalization
conditions the amount after subtracting the interest income obtained by depositing the unused borrowing funds
in the bank or the investment income obtained from temporary investment from the actual borrowing expenses
incurred in the current period of the special loans is used to determine the capitalized amount of borrowing
expenses.
For general borrowings used for the acquisition construction or production of assets that meet the capitalization conditions the
amount of borrowing expenses that should be capitalized for general borrowings is calculated and determined based on the
weighted average of the asset expenditures of the accumulated asset expenditure exceeding the part of the special borrowings
multiplied by the capitalization rate of the general borrowings used. The capitalization rate is calculated and determined based on
the weighted average interest rate of general borrowings.
(18) Intangible assets深圳南山热电股份有限公司审计报告
1. Valuation methods of intangible assets
(1) When the company obtains intangible assets they shall be initially measured at cost;
The cost of outsourcing intangible assets includes the purchase price relevant taxes and other expenditures
incurred to make the assets reach the intended purpose. If the purchase price of intangible assets have a delay in
payment beyond normal credit conditions and is of financing nature the cost of intangible assets is determined
on the basis of the current value of the purchase price.
For intangible assets used by the debtor to repay the debt through debt restructuring the entry value is
determined by the fair value of the waived creditor’s rights and other costs that can be directly attributable to the
tax incurred to make the asset reach its intended use and the difference between the fair value and the book value
of the waived creditor's rights is included in the current profit and loss.On the premise that the non-monetary asset exchange has commercial substance and the fair value of the swap-in
assets and the swap-out assets can be reliably measured the entry value of the swap-in intangible assets through
non-monetary assets exchange is determined on the basis of the fair value of the swap-out assets unless there is
conclusive evidence that the fair value of the swap-in assets is more reliable; for non-monetary asset exchanges
that do not meet the above premises the book value of the swap-out assets and the relevant taxes and fees
payable shall be used as the cost of the swap-in intangible assets but not recognize the profit and loss.
(2) Follow-up measurement
Analyze and judge the service life of intangible assets when acquiring them.
Intangible assets with a limited service life are amortized on a straight-line basis within the period of economic
benefits brought to the enterprise; or the intangible assets shall be regarded as with an uncertain service life if the
period of economic benefits brought by intangible assets cannot be foreseen and shall not be amortized.
2. Estimated service life of intangible assets with limited service life
An intangible asset with a limited useful life shall be amortized evenly over the expected useful life using the
straight-line method for the original value minus the estimated net residual value and the accumulated amount of
provision for impairment from the time it is available for use. Intangible assets with uncertain service life shall
not be amortized.
At the end of the period review the useful life and amortization method of intangible assets with a limited useful
life. If there is any change it will be treated as a change in accounting estimates.
3. Judgment basis for intangible assets with uncertain service life and procedures for reviewing their
service life
To review the service life of an intangible asset with a uncertain service life if there is evidence that the period of
economic benefits brought by the intangible asset is predictable estimate its service life and amortize according深圳南山热电股份有限公司审计报告
to the amortization policy for intangible assets with limited service life.
4. Specific criteria for dividing the research phase and the development phase
The company's internal research and development project expenditures are divided into research phase
expenditures and development phase expenditures.Research phase: it’s the phase of planned investigations and research activities with originality to acquire and
understand new scientific or technical knowledge etc.
Development phase: it’s the phase to apply the research results or other knowledge to a certain plan or design so
as to produce new or substantially improved materials devices products and other activities before commercial
production or use.Specific criteria for expenditure in the development phase to conform to capitalization
Expenditures in the development stage of internal research and development projects are recognized as intangible assets when the
following conditions are met simultaneously:
1. It is technically feasible to complete the intangible asset so that it can be used or sold;
2. There is an intention to complete the intangible asset and use or sell it;
3. The way that intangible assets generate economic benefits including the ability to prove that the products produced by the
intangible assets are marketable or the intangible assets themselves are marketable and the intangible assets will be used internally
which can prove their usefulness;
4. There are sufficient technical financial and other resource supports to complete the development of the intangible asset and have
the ability to use or sell the intangible asset;
5. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
(19) Impairment of long-term assets
Long-term equity investments investment real estate measured by the cost model fixed assets construction in
progress intangible assets with limited service life and other long-term assets that show signs of impairment on
the balance sheet date shall be tested for 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.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.
As for the goodwill intangible assets with an indefinite useful life and intangible assets beyond working
conditions the impairment tests shall be carried out at least at the end of each year.The Company conducts a goodwill impairment test. The book value of the goodwill formed by the business
combination shall be allocated to the relevant asset group according to a reasonable method from the date of深圳南山热电股份有限公司审计报告
purchase; if it is difficult to allocate to the relevant asset group it shall be allocated to the relevant portfolio of
asset groups. The Company allocates the book value of goodwill based on the relative benefits that the relevant
asset group or portfolio of asset groups can obtain from the synergies of the business combination and conducts
a goodwill impairment test on this basis.When conducting an impairment test on a related asset group or portfolio of asset groups that contains goodwill if there are signs of
impairment for an asset group or portfolio of asset groups related to goodwill the asset group or portfolio of asset groups that does
not contain goodwill should be tested first calculate the recoverable amount and compare it with the relevant book value to
confirm the corresponding impairment loss. Then conduct an impairment test on the asset group or portfolio of asset groups that
contains goodwill and compare the book value of these related asset groups or asset group portfolios (including the book value of
the allocated goodwill) with the recoverable amount if the recoverable amount of the relevant asset group or the asset group
portfolio is lower than its book value the impairment loss of goodwill shall be recognized.Once the above assets impairment loss is recognized it will not be carried back in future accounting periods.
(20) Long-term deferred expenses
The Company's long-term deferred expenses refer to the expenses that have been paid but the benefit period is more than one year
(excluding one year). Long-term deferred expenses are amortized in installments according to the benefit period of the expense
items. If the long-term deferred expense item cannot benefit the future accounting period all the amortized value of the item that
has not been amortized shall be transferred to the current profit and loss.
(21)Contract liabilities
Contract liabilities refer to the Company's obligation to transfer goods or services to customers for consideration received or
receivable from customers. Contract assets and contract liabilities under the same contract are presented in net amount.
(22) Staff remuneration
1. Accounting treatment of a short-term compensation
During the accounting period when employees provide services to the Company the Company recognizes the
actual short-term compensation as a liability and includes it in the current profit and loss or the cost of related
assets.The social insurance premiums and housing provident fund paid by the Company for employees as well as the
labor union funds and employee education funds drawn in accordance with the regulations of which the
corresponding employee compensation amount shall be calculated and determined according to the specified
accrual basis and accrual ratio during the accounting period when the employees provide services to the
Company.
If employee welfare expenses are non-monetary and can be measured reliably they shall be measured at fair
value.深圳南山热电股份有限公司审计报告
2. Accounting treatment methods for post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees in accordance with
the relevant regulations of the local government. During the accounting period when employees provide services
to the Company the amount payable is calculated based on the local payment base and proportion recognized as
a liability and included in current profit and loss or related asset cost.In addition to basic endowment insurance the Company has also established an enterprise annuity payment
system (supplementary endowment insurance)/enterprise annuity plan in accordance with the relevant policies of
the national enterprise annuity system. The Company pays a certain percentage of the total wages of employees
to the local social insurance agency/annuity plan and the corresponding expenditure is included in the current
profit and loss or the cost of related assets.
(2) Defined benefit plans
The Company assigns the welfare obligations arising from the defined benefit plans to the period during which
the employees provide services according to the formula determined by the expected cumulative welfare unit
method and includes them in the current profit and loss or the cost of related assets.The deficit or surplus formed by the present value of the defined benefit plan’s obligations minus the fair value
of the defined benefit plan’s assets is recognized as a defined benefit plan’s net liabilities or net assets. If there is
a surplus in the defined benefit plan the Company shall use the lower of the surplus of the defined benefit plan
and the asset ceiling to measure the net assets of the defined benefit plan.
All defined benefit plans obligations including obligations expected to be paid within twelve months after the
end of the annual reporting period in which employees provide services are discounted based on the market
yield of the national debt matching with the obligation period and currency of the defined benefit plan or the
high-quality corporate bonds in an active market on the balance sheet date.The service cost incurred by the defined benefit plan and the net interest of the net liabilities or net assets of the
defined benefit plan are included in the current profit and loss or the related asset cost; the changes in net
liabilities or net assets resulting from the remeasurement of defined benefit plans are included in other
comprehensive income and shall not be transferred back to profit or loss in the subsequent accounting period
and the part that was originally included in other comprehensive income will be carried forward to undistributed
profit within the scope of equity when the original defined benefit plan is terminated.In the settlement of the defined benefit plan the difference between the present value of the obligation of the
defined benefit plan and the settlement price determined on the settlement date is used to confirm the settlement
gain or loss.深圳南山热电股份有限公司审计报告
3. Accounting treatment methods for dismissal benefits
When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of the labor relationship plan or
redundancy proposal or when confirming the costs or expenses related to the reorganization involving the payment of the dismissal
benefits (the earlier of the two) recognize employee compensation liabilities arising from dismissal benefits and include in the
current profit and loss.
(23) 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.
2. Measurement on vary accrual liability
The Company's accrual liabilities are initially measured based on the best estimate of the expenditure required to
perform the relevant current obligations.When determining the best estimate the Company comprehensively considers factors such as risks uncertainties
and time value of money related to contingencies. If the time value of money has a significant impact the best
estimate is determined after discounting the relevant future cash outflows.The best estimates are handled separately in the following situations:
If there is a continuous range (or interval) for the required expenditure and the probability of occurrence of
various results within this range is the same the best estimate is determined according to the middle value of the
range that is the average number of the upper and lower limits.There is no continuous range (or interval) for the required expenditure or although there is a continuous range
the possibility of occurrence of various results within the range is not the same if the contingency involves a
single item the best estimate shall be determined based on the amount most likely to occur; if the contingency
involves multiple items the best estimate shall be calculated and determined according to various possible
outcomes and related probabilities.If all or part of the expenditures required by the Company to settle the accrual liabilities are expected to be compensated by a third
party the compensation amount shall be separately recognized as an asset when it is basically certain that it can be received and the
confirmed compensation amount shall not exceed the book value of the accrual liability.
(24) Revenue
Accounting policies applicable from January 1 2020
General principles深圳南山热电股份有限公司审计报告
The Company recognizes the income when it has fulfilled its performance obligations in the contract that is when the customer has
obtained control of the relevant goods or services. The performance obligation refers to the commitment in the contract that the
Group transfers clearly distinguishable goods or services to the customer. Obtaining control over related goods or services means
being able to lead the use of the goods or the provision of the service and obtain almost all of the economic benefits.
For a performance obligation that meets one of the following conditions and is performed within a certain period of time the
Company recognizes revenue within a period of time according to the performance of the contract: (1) The customer obtains and
consumes the economic benefits brought by the Company's performance at the same time as the Company fulfills the contract; (2)
The customer can control the products under construction during the performance of the Company; (3) The products produced
during the performance of the Company have irreplaceable uses and the Company has the right to collect payment for the
accumulated performance part that has been completed so far during the entire contract period. Otherwise the Company recognizes
revenue at the point when the customer obtains control of the relevant goods or services.Variable consideration
Some of the Company’s contracts with customers include sales rebates quantity discounts commercial discounts performance
bonuses and claims which forms variable consideration. The Company determines the best estimate of the variable consideration
based on the expected value or the most likely amount but the transaction price that includes the variable consideration does not
exceed the amount that the accumulated recognized revenue is most unlikely to be materially reversed when the relevant uncertainty
is eliminated.Significant financing component
If there is a significant financing component in the contract the Company shall determine the transaction price based on the amount
payable in cash when the customer assumes control of the goods or services. The difference between the transaction price and the
contract consideration shall be amortized by the effective interest method during the contract period.On the starting date of the contract if the company expects the customer to obtain control of the product and the customer pays the
payment within one year the significant financing component in the contract will not be considered.Non-cash consideration
If the customer pays a non-cash consideration the Company shall determine the transaction price based on the fair value of the
non-cash consideration. If the fair value of the non-cash consideration cannot be reasonably estimated the Company indirectly
determines the transaction price by referring to the stand-alone selling price of the goods promised to be transferred to the customer.If the fair value of non-cash consideration changes due to reasons other than the form of consideration it shall be used as variable
consideration for accounting treatment in accordance with relevant regulations.
Consideration payable to customers
For the consideration payable to customers the Company offsets the transaction price from the consideration payable to the
customer and offsets the current revenue at the time point of the later when the relevant revenue is recognized and the promised
payment of the customer consideration unless the consideration payable is to obtain other clearly distinguished products from the
customer.Sales with sales return clauses
For sales with a sales return clause when the customer obtains control of the relevant product our company recognizes the revenue
in accordance with the amount of consideration expected to be entitled to be collected due to transfer of goods to customers (that is
does not include the amount expected to be refunded due to sales returns) and recognizes liabilities in accordance with the amount
expected to be refunded due to sales returns. At the same time according to the expected book value of the returned goods at the
time of transfer the balance after deducting the estimated cost of recovering the goods (including the value impairment of the深圳南山热电股份有限公司审计报告
returned goods) is recognized as an asset and the net carry-over cost of the above asset cost is deducted according to the book value
of the transferred commodity at the time of transfer. On each balance sheet date re-estimate the future sales return situation and if
there is any change it will be treated as a change in accounting estimates.Sales with quality assurance clauses
For sales with quality assurance clauses if the quality assurance provides a separate service in addition to ensuring that the goods or
services sold to the customer meet the established standards the quality assurance constitutes a single performance obligation.Otherwise the Company will make an accounting treatment for quality assurance responsibilities in accordance with the
"Accounting Standards for Business Enterprises No. 13 - Contingencies".
Principal and agent
The Company judges whether the Company’s identity is the principal responsible person or an agent at the time of the transaction
based on whether it has control over the product or service before the transfer of the product or service to the customer. If the
Company is able to control the products or services before transferring the products or services to the customers the Company is
the principal responsible person and the income is recognized based on the total consideration received or receivable; otherwise
the Company is the agent and the income is recognized according to the amount of commission or handling fee expected to have
the right to collect the amount is determined according to the net amount of the total consideration received or receivable after
deducting the price payable to other related parties or according to the established commission amount or ratio.Sales with additional purchase options for customers
For sales with additional purchase options for customers the Company assesses whether the option provides customers with a
major right. If an enterprise provides a major right it shall be a single performance obligation and the transaction price shall be
allocated to the performance obligation in accordance with the relevant provisions of the standards. When the customer exercises
the purchase option in the future to obtain control of the relevant commodity or when the option lapses the corresponding income
shall be recognized. If the stand-alone selling price of the customer's additional purchase option cannot be directly observed the
Company shall reasonably estimate after considering all relevant information such as the difference between the discounts that the
customer can obtain from exercising and not exercising the option the possibility of the customer exercising the option etc..
Although the customer has additionally purchased the commodity option the price at the time when the customer exercises the
option to purchase the commodity reflects the stand-alone selling price of these commodities and it should not be considered that
the company has provided the customer with a major right.Grant intellectual property licenses to customers
If an intellectual property license is granted to a customer the Company assesses whether the intellectual property license
constitutes a single performance obligation in accordance with the relevant provisions of the standards and if it constitutes a single
performance obligation it shall further determine whether it will be performed within a certain period of time or at a certain point in
time.When the following conditions are met at the same time the relevant revenue is recognized as a performance obligation performed
within a certain period of time; otherwise the relevant revenue is recognized as a performance obligation performed at a certain
point in time:
(1) Contract requirements or customers can reasonably expect that the enterprise will engage in activities that have a significant
impact on the intellectual property rights;
(2) The activity will have a favorable or unfavorable impact on customers;
(3) The activity will not result in the transfer of a certain commodity to the customer.深圳南山热电股份有限公司审计报告
After-sales repurchase transaction
For after-sales repurchase transactions the Company distinguishes the following two situations for accounting treatment:
(1) If there is a repurchase obligation due to the existence of a long-term arrangement with the customer or the Company enjoys the
repurchase right the Company shall conduct the corresponding accounting treatment as a lease transaction or financing transaction.
Among them if the repurchase price is lower than the original selling price it shall be regarded as a lease transaction and shall be
accounted for in accordance with the relevant provisions of the standards; if the repurchase price is not lower than the original
selling price it shall be regarded as a financing transaction and the financial liabilities shall be confirmed when receiving the
client's payment and the difference between the payment and the repurchase price is recognized as interest expenses during the
repurchase period. If the Company fails to exercise the repurchase right upon maturity when the repurchase right expires the
financial liabilities is derecognized and the revenue is recognized at the same time.
(2) If the Company is obliged to repurchase commodities at the request of the customer it shall assess whether the customer has a
major economic motivation to exercise the right of claim on the commencement date of contract. If the customer has a major
economic motivation to exercise the right of claim the enterprise shall treat the after-sale repurchase as a lease transaction or
financing transaction and conduct accounting treatment in accordance with the provisions of present article (1); otherwise the
Company will treat it as a sales transaction with a sales return clause and perform accounting treatments in accordance with
relevant regulations of the standards.
Customer's unexercised rights
If the Company receives advance payments from customers for sales of goods it shall first recognize the payments as liabilities and
then convert them into revenue when the relevant performance obligations are fulfilled. When the advance payment does not need
to be refunded and the customer may waive all or part of its contract rights the Company expects to be entitled to obtain the amount
related to the contract rights waived by the customer and the above-mentioned amount shall be recognized as revenue in proportion
to the mode in which the customer exercises the contractual rights. Otherwise the Company can only convert the relevant balance
of the above liabilities into income when the possibility of the customer requesting it to perform the remaining performance
obligations is extremely low.Initial fee no need to be refunded
The initial fee collected by the Company from the customer on the commencement date of the contract (or close to the
commencement date) shall be included in the transaction price and it shall be assessed whether the initial fee is related to the
transfer of the promised goods to the customer. If the initial fee is related to the transfer of the promised goods to the customer and
the goods constitutes a single performance obligation the Company recognizes the income at the transaction price allocated to the
goods when transferring the goods. If the initial fee is related to the goods promised to transfer to the customer but the goods does
not constitute a single performance obligation the Company will recognize the income at the transaction price allocated to the
single performance obligation when the single performance obligation containing the product is fulfilled. If the initial fee is not
related to the goods promised to transfer to the customer it shall be used as an advance payment for the goods to be transferred in
the future and shall be recognized as income when the goods is transferred in the future.If the Company has collected an initial fee that does not need to be refunded and should carry out initial activities to perform the
contract but these activities do not transfer the promised goods to the customer the initial fee is related to the goods promised to be
transferred in the future and should be recognized as revenue when transferring the goods in the future and the Company does not
consider these initial activities when determining the progress of the contract. The Company’s expenditures for the initial activities
should be recognized as an asset or included in the current profit and loss in accordance with the relevant provisions of the
standards.深圳南山热电股份有限公司审计报告
Specific principles
The Company recognizes the revenue when it fulfills its performance obligations in the contract that is when the customer obtains
control of the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of the
goods or the provision of the service and obtain almost all of the economic benefits from it.
(1) Commodity sales revenue
The sales contract between the Company and the customers usually only contains the performance obligation for the transferred
goods. The Company usually recognizes revenue at a certain point in time on the basis of comprehensive consideration of the
following factors: obtaining the current right to receive payment of the goods the transfer of major risks and rewards in the
ownership of the goods the transfer of the legal ownership of the goods and the transfer of the physical asset of the goods the
customer accepts the goods.
Electricity sales revenue
The Company produces electricity through firepower and realizes sales through integration into Guangdong Power Grid. For
electricity sales the Company recognizes the realization of revenue when it has produced electricity and obtains the grid electricity
statistical table confirmed by the Electric Power Bureau.
(2) Income from rendering of labor services
The service contracts between the Company and the customers usually include performance obligations such as operation and
maintenance services labor services etc.The Company evaluates the contract on the start date of the contract identifies each individual performance obligation contained in
the contract and determines whether each individual performance obligation is performed within a certain period of time or at a
certain point in time. If one of the following conditions is met it is a performance obligation performed within a certain period of
time the Company recognizes revenue within a period of time according to the progress of the contract:
(1) The customer obtains and consumes the economic benefits brought by the Company's performance at the same time as the
Company's performance;
(2) Customers can control the products under construction during the performance of the Company;
(3) The goods produced by the Company during the performance of the contract have irreplaceable uses and the Company has the
right to collect payment for the cumulative performance part that has been completed so far during the entire contract period.Otherwise the Company recognizes revenue at the time point when the customer obtains control of the relevant goods or services.
○1 Recognition standards of income from labor services provided by Environment Protection Company:
The company recognizes revenue based on the obtained sludge treatment settlement statement jointly confirmed with the
transportation company the water purification unit and the company.
○2 Specific standards for revenue recognition of Engineering Company:
Debugging projects: when the debugging is successful obtain the confirmation of successful debugging and recognize the income
according to the contract;
Operation and maintenance management projects: monthly revenue is temporarily estimated and recognized based on attendance
time and labor prices of attendants and the temporary estimated revenue will be adjusted after obtaining the monthly statement
confirmed by the supplier's stamp and signature the progress confirmation letter and the attendance sheet.深圳南山热电股份有限公司审计报告
Accounting policies applicable before January 1 2020
1. General principles for the recognition of revenue from sales of goods
(1) The Company has transferred the main risks and rewards of goods ownership to the purchaser;
(2) The Company neither retains the right to continue management usually associated with ownership nor does it exercise effective
control over the sold commodities;
(3) The amount of income can be reliably measured;
(4) Relevant economic benefits are likely to flow into the Company;
(5) The related incurred costs or costs to be incurred can be reliably measured.
2.Specific principles
1-Power sales 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-Revenue from providing labor service
Under the condition of service providing business can be estimated in a reliable way relevant economic benefit is likely to flow into
enterprise completion degree of business may be estimated in a reliable way and relevant incurred cost and to be incurred may be
measured in a reliable way the revenue from labor service providing recognized. Relevant service revenue may be confirmed by the
Company as percentage-of-completion method on balance sheet date. Completion degree of service business will be determined as
share of incurred service cost in estimated general cost.If result of service providing business can’t be estimated in a reliable way service revenue should be confirmed as amount of
incurred service cost expected to be compensated where incurred service cost is taken as period charge. If no compensation is
expected for incurred service cost income won’t be confirmed.
3- 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.
4- 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.
(25)Contract costs
The cost of obtaining the contract深圳南山热电股份有限公司审计报告
If the incremental cost (that is the cost that would not be incurred without obtaining the contract) incurred by the
Company to obtain the contract is expected to be recovered it shall be recognized as an asset and use the same
basis for the recognition of the income of goods or services related to the asset for sales and be included in the
current profit and loss. If the asset amortization period does not exceed one year it shall be included in the
current profit and loss when it occurs. Other expenses incurred by the Group in order to obtain the contract shall
be included in the current profit and loss when incurred except for those clearly borne by the customer.The cost of fulfilling the contract
The cost incurred by the Company for the performance of the contract that does not fall within the scope of other
accounting standards for business enterprises except the income standard and meets the following conditions at
the same time is recognized as an asset: (1) The cost is directly related to a current or expected contract; (2) The
cost increases the resources of the Group for fulfilling the performance obligations in the future; (3) The cost is
expected to be recovered. The above-mentioned assets are amortized on the same basis as the recognition of the
income of goods or services related to the asset and included in the current profit and loss.
Contract cost impairment
When the Company determines the impairment loss of assets related to the contract cost it first determines the
impairment loss of other assets related to the contract that are confirmed in accordance with other relevant
enterprise accounting standards; then based on the difference between the book value of which is higher than the
remaining consideration that the Company is expected to obtain due to the transfer of the asset-related
commodities and the estimated cost of transferring the related commodities the excess shall be provided for
impairment and recognized as an asset impairment loss.If the impairment factors of the previous period have changed causing the aforementioned difference is higher than the book value
of the asset the original provision for asset impairment shall be reversed and included in the current profit and loss but the book
value of the asset after the reversal shall not exceed the book value of the asset on the date of reversal under the assumption that no
impairment provision is made.
(26) Government subsidy
1. Type
Government subsidy refers to the monetary asset and non-monetary asset that the Company obtains from the
government free of charge which are divided into the asset-related government subsidy and the income-related
government subsidy.Government subsidies related to assets refer to government subsidies obtained by the Company for purchase and
construction or to form long-term assets in other ways. Government subsidies related to income refer to
government subsidies other than government subsidies related to assets.深圳南山热电股份有限公司审计报告
2. Time point of recognition
If there is evidence at the end of the period that the company can meet the relevant conditions stipulated in the
financial support policy and is expected to receive financial support funds the government subsidy shall be
recognized according to the amount receivable. In addition government subsidies are confirmed when they are
actually received.If a government subsidy is a monetary asset it shall be measured at the amount received or receivable. If a
government subsidy is a non-monetary asset it shall be measured at its fair value; if its fair value cannot be
obtained reliably it shall be measured at its nominal amount (1 yuan). Government subsidies measured at their
nominal amounts are directly included in the current profits and losses.
3. Accounting treatment
Government subsidies related to assets are used to offset the book value of related assets or be recognized as
deferred income those recognized as deferred income shall be included in the current profit and loss (those
related to the Company’s daily activities shall be included in other income; those not related to the Company’s
daily activities shall be included in the non-operating income) in a reasonable and systematic way within the
useful life of the relevant assets;
Government subsidies related to income that are used to compensate the Company’s related costs or losses in
subsequent periods shall be recognized as deferred income and shall be included in the current profits and losses
(those related to the Company’s daily activities shall be included in other income; those not related to the
Company’s daily activities shall be included in the non-operating income) or used to offset related costs or losses
during the period when the relevant costs or losses are recognized; those used to compensate the Company’s
related costs or losses are directly included in the current profits and losses (those related to the Company’s daily
activities shall be included in other income; those not related to the Company’s daily activities shall be included
in the non-operating income) or used to offset related costs or losses.The policy-related preferential loan interest discount obtained by the Company is divided into the following two
situations and is accounted for separately:
(1) The finance allocates interest subsidy to the lending bank if the lending bank provides loans to the Company at a preferential
policy interest rate the Company uses the amount of borrowing actually received as the entry value of the loan and calculates the
related borrowing costs according to the loan principal and the policy preferential interest rates.
(2) If the finance directly allocates interest subsidy funds to the Company the Company will offset the corresponding interest
discount against the relevant borrowing costs.
(27) Deferred income tax asset/ deferred income tax liability
For deductible temporary differences to recognize deferred income tax assets they shall be within the limit of the
taxable income that is likely to be obtained in the future to deduct deductible temporary differences. For the
deductible losses and tax deductions that can be carried forward for subsequent years they shall be within the深圳南山热电股份有限公司审计报告
limit of the future taxable income that is likely to be used to deduct the deductible losses and tax deductions to
recognize the corresponding deferred income tax assets. For taxable temporary differences except for special
circumstances deferred income tax liabilities are recognized.Special circumstances that do not recognize deferred income tax assets or deferred income tax liabilities include
initial recognition of goodwill; Other transactions or matters that do not affect accounting profits or taxable
income (or deductible losses) when they occur except for a business combination. When having the statutory
right to settle on a net basis and intending to settle on a net basis or obtain assets and pay off liabilities at the
same time the current income tax assets and current income tax liabilities are presented as the net amount after
offsetting.When having the statutory right to settle current income tax assets and current income tax liabilities on a net basis and the deferred
income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax administration department
on the same taxpayer or related to different taxpayers however in the future period during which important deferred income tax
assets and liabilities are reversed when the taxpayer involved intends to settle the current income tax assets and liabilities on a net
basis or obtain assets and repay liabilities at the same time the deferred income tax assets and deferred income tax liabilities are
presented as the net amount after offsetting.
(28) Leasing
1. Accounting treatment of operating leases
(1) The lease fee paid by the company for rented assets shall be apportioned on a straight-line basis during the
entire lease period without deducting the rent-free period and included in the current expenses. The initial direct
expenses related to the lease transaction paid by the company shall be included in the current expenses.When the asset lessor bears the lease-related expenses that should be borne by the company the company
deducts this part of the cost from the total rent amortizes according to the deducted rental expenses during the
lease term and reckons it in the current expenses.
(2) The lease fee charged by the company for lease of assets shall be apportioned on a straight-line basis during
the entire lease period without deducting the rent-free period and recognized as lease-related income. The initial
direct expenses related to the lease transaction paid by the company shall be included in the current expenses; if
the amount is large it shall be capitalized and included in the current income in installments based on the same
basis as the lease-related income recognition during the entire lease period.When the company bears the lease-related expenses that should be borne by the lessee the company deducts this
part of the expenses from the total rental income and distributes according to the deducted rental expenses
during the lease term.
2. Accounting treatment of financial leasing
(1) Financing rent in assets: on the start date of the lease the company takes the lower of the fair value of the
leased asset and the present value of the minimum lease payment as the entry value of the leased asset and the
minimum lease payment as the entry value of of long-term payable and the difference is regarded as
unrecognized financing expenses. Refer to Note III (15) Fixed Assets for the identification basis valuation and深圳南山热电股份有限公司审计报告
depreciation methods of finance leased assets.The company uses the effective interest method to amortize unrecognized financing expenses during the asset
lease period and include them in financial expenses.
(2) Financing rent out assets: on the start date of the lease the company recognizes the difference between the sum of receivable
financing lease payments and unguaranteed residual value and its present value as unrealized financing income as unrealized
financing income which is recognized as rental income during each period when the rent is received in the future the company's
initial direct expenses related to the lease transactions are included in the initial measurement of the financial lease receivables and
the amount of income recognized during the lease period is reduced.
(29) Changes of major accounting policy and accounting estimation
1. Change of major accounting policies
(1) The impact of the implementation of the new revenue standard on the Company
In 2017 the Ministry of Finance promulgated the revised "Accounting Standards for Business Enterprises No. 14
- Revenue" (hereinafter referred to as the "New Revenue Standards" and the revenue standards before revision
were referred to as the "Original Revenue Standards"). The new revenue standards have introduced a five-step
method for revenue recognition and measurement and added more guidance for specific transactions (or events).The Company has begun accounting treatment in accordance with the newly revised above-mentioned standards from January 1
2020. For the changed accounting policies please refer to Note III (24). The new revenue standards require that the cumulative
impact of the first implementation of the standards be adjusted for the amount of retained earnings and other related items in the
financial statements at the beginning of the first implementation period (i.e. January 1 2020) and no adjustments were made to
information during comparable period. When implementing the new revenue standards the Company only adjusted the cumulative
impact of contracts that have not been completed on the first implementation date.The first implementation of the standards has no significant impact on the company's retained earnings at the beginning of 2020.The impact on the statements on January 1 2021 and December 31 2019 are listed as follows:
Consolidate balance sheet
Item 2019-12-31 Reclassify 2020-1-1
Account receivable 178150580.32 -840146.81 177310433.51
Contract assets 840146.81 840146.81
Impact of the implementation of the New Revenue Standards on the items related to the current financial statements is shown
below:
Consolidate balance sheet
Item
(listed under the original
revenue standards)
2020-12-31
Reclassify
(listed under the new revenue
standards)
2020-12-31
Account receivable 92522652.88 -7229600.00 85293052.88
Contract assets 7229600.00 7229600.00
(2) Implementation of "Accounting Standards for Business Enterprises Interpretation No. 13"深圳南山热电股份有限公司审计报告
The Ministry of Finance issued the "Accounting Standards for Business Enterprises Interpretation No. 13" (Cai Kuai [2019] No. 21
hereinafter referred to as "Interpretation No. 13") on December 10 2019 which has taken effect on January 1 2020. retrospective
adjustment is not required.① Identification of related parties
Interpretation No. 13 clarifies that the following circumstances constitute a related party: a joint venture or an associated enterprise
between an enterprise and other member units (including parent companies and subsidiaries) of the enterprise group to which it
belongs; a joint venture of an enterprise and other joint ventures or associated enterprises of the enterprise. In addition
Interpretation No. 13 also clarifies that only two or more companies that are significantly affected by one party do not constitute
related parties. It also adds that associated enterprises include associated enterprises and their subsidiaries and joint ventures
include joint ventures and their subsidiaries.② The definition of business
Interpretation No. 13 completes the three elements of business composition refines the judgment conditions of the business
composition and introduces the "concentration test" option to simplify the judgment of whether the combination obtained under the
same control constitutes a business to a certain extent.The Company has implemented Interpretation No. 13 from January 1 2020 and the comparative financial statements has not been
adjusted. The implementation of Interpretation No. 13 has not had a significant impact on the Company's financial status and
operating results.
(3) Implement the "Regulations on Accounting Treatment of Rent Concessions Related to the COVID-19 Epidemic"
On June 19 2020 the Ministry of Finance issued the "Regulations on Accounting Treatment of Rent Concessions Related to the
COVID-19 Epidemic" (Cai Kuai (2020) No. 10) which came into effect on June 19 2020 allowing companies to adjust the
relevant rent concessions that occurred between January 1 2020 and the implementation date of this regulation. According to the
regulations companies can choose to adopt simplified methods for accounting treatments for rent reductions and deferred payment
of rents directly caused by the COVID-19 epidemic that meet the conditions.The Company has implemented this regulation from January 1 2020 and the comparative financial statements has not been
adjusted. The implementation of this regulation has not had a significant impact on the Company's financial status and operating
results.
2. Change of accounting estimation
No change of accounting estimation occurred in the reporting period
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% 3%
City maintenance tax According to the actual payment of VAT and consumption tax 7% 5%深圳南山热电股份有限公司审计报告
Taxation items Taxation basis Tax rate
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
25% 15%
16.5% 17%
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
(2) Explanation of the income tax rate of the taxpayer of enterprise income tax
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%
Singapore Company 17%
Shen Storage 25%
Syndisome (HK) 16.5%
(3) Preferential tax policies and basis
(1) Preferential income tax policy:
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%
(2) Value-added tax preferential policies:
Ta
x
Name of the
company
Relevant regulation and
policies basis
Approval
institution
Approval
documents
Exemption
range
Period of
validity
VA
T
Environment
Protection
Notice on "contents of
products with comprehensive
Shenzhen
Provincial
SQSST[2018]N
o.: 18302
Resource
comprehensi
31 Aug. 2018
to 31 July深圳南山热电股份有限公司审计报告
Ta
x
Name of the
company
Relevant regulation and
policies basis
Approval
institution
Approval
documents
Exemption
range
Period of
validity
Company
utilization of resources and
value-added tax privilege of
labor service" (CS No. [2015]
78)
Office SAT
(Qianhai SAT)
ve utilization
of VAT
refund
2022
V. Annotation of the items in consolidate financial statement
(1) Monetary fund
Item Ending Balance Year-end balance of last year
Cash on hand 101163.11 84307.60
Bank savings 397000109.10 731339856.01
Other monetary fund 367500000.00 41785691.23
Total 764601272.21 773209854.84
Including: total amount saving aboard 50810349.72 6242072.77
The details of currency funds that are restricted to use due to mortgage pledge or freezing and are placed
overseas and the repatriation of funds are restricted are as follows:
Item Ending Balance Year-end balance of last year
Performance bond 1719853.88
Total 1719853.88
(2) Account receivable
1. Age analysis
Account age
Ending Balance Year-end balance of last year
Within one year 85293052.88 178147691.32
Over 3 years 5558673.67 5769529.84
Subtotal 90851726.55 183917221.16
Less: Bad debt provision 5558673.67 5766640.84
Total 85293052.88 178150580.32
2. According to accrual method for bad debts深圳南山热电股份有限公司审计报告
Category
Ending Balance
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
Accounts receivable with
single provision for bad
debts
5558673.67 6.12 5558673.67 100.00 -
Provision for bad debts
by portfolio
85293052.88 93.88 85293052.88
Total 90851726.55 100.00 5558673.67 6.12 85293052.88
Category
Balance at end of the previous year
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion
(%)
Accounts receivable with
single provision for bad
debts
5766640.84 3.14 5766640.84 100.00
Provision for bad debts by
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. Ltd.
1137145.51 1137145.51 100.00
Uncollectible in
excepted
Shenzhen Fuhuade
Power Co. Ltd
800000.00 800000.00 100.00
Uncollectible in
excepted
Other
146915.10 146915.10 100.00
Uncollectible in
excepted
Total 5558673.67 5558673.67 100.00深圳南山热电股份有限公司审计报告
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
Other
Accounts
receivable with
single provision for
bad debts
5766640.84 207967.17 5558673.67
Total 5766640.84 207967.17 5558673.67
4. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 78092638.65Yuan takes 85.96 percent of the total
account receivable at period-end bad debt provision accrual correspondingly at period-end amounting as 0 Yuan
(3) 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 22552426.03 76.33 69896494.56 99.84
1 to 2years 6883175.38 23.30 15600.00 0.02
2 to 3years 15600.00 0.05 32000.00 0.05
Over 3 years 93586.94 0.32 61586.94 0.09
Total 29544788.35 100.00 70005681.50 100.00
2. Top five accounts paid in advance at period-end balance listed by object
The aggregate amount of the top five ending balance of account paid in advance collected by the arrears is
28004649.95 yuan accounting for 94.79% of the total number of account in ending balance of paid in advance.
(4) Other account receivable
Item Ending Balance Year-end balance of last year
Interest receivable
Other account receivable 31027754.36 32321826.94深圳南山热电股份有限公司审计报告
Item Ending Balance Year-end balance of last year
Total 31027754.36 32321826.94
1.Other account receivable
(1) Age analysis
Age Ending Balance Year-end balance of last year
Within 1year 8721096.29 4589653.32
1 to 2 years 958772.47 1223336.54
2 to 3 years 1179854.47 3414019.37
3 to 4 years 2226212.44 47104101.54
4 to 5 years 46061408.80 4018544.61
Over 5 years 3920797.49 3804592.00
Subtotal 63068141.96 64154247.38
Less: Bad debt provision 32040387.61 31832420.44
Total 31027754.36 32321826.94
(2) By category
Category
Ending Balance
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
Accounts receivable
with single provision for
bad debts
32525936.22 51.57 31832420.44 97.87 693515.78
Provision for bad debts
by portfolio of credit
risk
30542205.75 48.43 207967.17 0.68 30334238.57
Total 63068141.97 100.00 32040387.61 50.80 31027754.36
Category
Balance at the end of the previous year
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
Accounts receivable
with single provision for
32525936.22 50.70 31832420.44 97.87 693515.78深圳南山热电股份有限公司审计报告
Category
Balance at the end of the previous year
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
bad debts
Provision for bad debts
by portfolio of credit
risk
31628311.16 49.30 31628311.16
Total 64154247.38 100.00 31832420.44 49.62 32321826.94
With single provision for bad debts:
Name
Ending 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
Un-collectable in
excepted
Personal receivables
7498997.87 7498997.87 100.00
Un-collectable in
excepted
Deposit receivable 1658796.73 1312974.95 79.15
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 of credit risk:
Name
Ending Balance
Other account receivable
Bad debt
provision
Accrual ratio （%）
Provision for bad debts by
portfolio
30542205.74 207967.17 0.68
Total 30542205.74 207967.17 0.68
(3) Accrual of bad debt provision
Bad debt provision Phases I Phases II Phases III Total深圳南山热电股份有限公司审计报告
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
31832420.44 31832420.44
Balance at
year-begin of the
period
31832420.44 31832420.44
——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 207967.17 207967.17
Ending Balance 207967.17 31832420.44 32040387.61
(3) By nature
Nature Ending book balance Book balance at last year-end
Deposit and security deposit 5130967.25 8114769.72
Reserve fund 566951.40 616951.40
Withholding payment 9151898.54 10008932.63
Current payment 18066774.22 18075298.38
other 8776977.74 5163921.12
Accounts receivable of Huidong
Server
21374572.81 22174374.13
Subtotal 63068141.97 64154247.38
Less: Bad debt provision 32040387.61 31832420.44
Total 31027754.36 32321826.94
(4) Top five other account receivables at period-end balance listed by arrears party
The total amount of the top five other receivables at the end of the period aggregated by the owing party was深圳南山热电股份有限公司审计报告
RMB 24392597.56 accounting for 38.68% of the total balance of other receivables at the end of the period.
(5) 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
149653114.1
1
49407585.0
5
100245529.0
6
171828426.1
9
47141982.5
8
124686443.6
1
Total
149653114.1
1
49407585.0
5
100245529.0
6
171828426.1
9
47141982.5
8
124686443.6
1
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
Other (note)
Raw materials 47141982.58 7399234.51 5133632.04 49407585.05
Total 47141982.58 7399234.51 5133632.04 49407585.05
Note: The decrease in the current period is due to the decrease in the corresponding inventory price drop of Dongguan Weimei a
subsidiary
(6) Contract assets
Item Ending Balance Balance at year-begin
Operation and maintenance project settlement
accounts receivable
7229600.00 840146.81
Subtotal 7229600.00 840146.81
Provision for impairment of contract assets
Total 7229600.00 840146.81
(6) Other current assets深圳南山热电股份有限公司审计报告
Item Ending Balance
Year-end balance of last
year
VAT input tax deductible 332071261.59 349953491.34
Income tax paid in advance 6583089.98 6583089.98
Bank financial products 575655558.24 86000000.00
Accrual interest of time deposit 2918334.73 2670150.01
Other 60000.00 30000.00
Total 917288244.54 445236731.33深圳南山热电股份有限公司审计报告
(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
14619203.04 -5725794.18 8893408.86
Total 14619203.04 -5725794.18 8893408.86深圳南山热电股份有限公司审计报告
(9) Other equity instrument investment
1. Other equity instrument investment
Item Ending Balance
Year-end balance of last
year
CPI Jiangxi Nuclear Power
Company
60615000.00 60615000.00
Nanjing Zhongsheng Holding
Co. Ltd.
21000000.00
Shenzhen Petrochemical Oil Bonded
Trade Co. Ltd. - investment cost
2500000.00 2500000.00
Shenzhen Petrochemical Oil Bonded
Trade Co. Ltd. - change in fair value
-2500000.00 -2500000.00
Total 81615000.00 60615000.00
2. Non trading equity instrument investment深圳南山热电股份有限公司审计报告
Item
D
i
v
i
d
e
n
d
i
n
c
o
m
e
r
e
c
o
g
n
i
z
e
d
A
c
c
u
m
u
l
a
t
e
A
c
c
u
m
u
l
a
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e
R
e
t
a
i
n
e
d
e
a
r
n
i
n
g
s
t
r
a
n
s
f
e
r
r
e
d
f
r
o
Desig
nated
as the
invest
ment
meas
ured
at fair
value
and
whos
e
chang
es
recko
ned
R
e
a
s
o
n
s
o
f
r
e
t
a
i
n
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d
e
a
r
n
i
n
g
s
t
r
a
n
s
f
e
r
r
e深圳南山热电股份有限公司审计报告
J
i
a
n
g
x
i
N
u
c
l
e
a
r
P
o
w
e
r
C
o.L
t
d.intent
s to
holdi
ng for
a
long-t
erm
Nanjing
Zhongshe
ng
Holding
Co. Ltd.
intent
s to
holdi
ng for
a
long-t
erm
S
h
e
-250000
0.00
intent
s to深圳南山热电股份有限公司审计报告
n
z
h
e
n
P
e
t
r
o
c
h
e
m
i
c
a
l
O
i
l
B
o
n
d
e
d
T
r
a
d
e
C
o.L
t
holdi
ng for
a
long-t
erm深圳南山热电股份有限公司审计报告
d.Total
-250000
0.00
(10) Investment real estate
1. Investment real estate measured at cost
Item House and building 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 196137.60 196137.60
（3）Current decreased
（4）Ending Balance 7502825.56 7502825.56
3. Depreciation provision
（1）Year-end balance of last year
（2）Current increased
（3）Current decreased
（4）Ending Balance
4．Book value
(1) Period-end book value 2205189.40 2205189.40
(2) Book value of end of last year 2401327.00 2401327.00
(11) Fixed assets
1. Fixed assets and disposal of fixed asset
Item Ending Balance
Year-end balance of last
year深圳南山热电股份有限公司审计报告
Item Ending Balance
Year-end balance of last
year
Fixed assets 925745208.55 1381675872.68
Disposal of fixed assets
Total 925745208.55 1381675872.68深圳南山热电股份有限公司审计报告
2. Fixed assets
Item House and buildings Machinery equipment Transportation tools Other Total
1. Original book value
（1）Year-end balance of last
year
501321101.48 4079001987.60 16336684.19 55807562.91 4652467336.18
（2）Current increased 9153903.96 2813738.59 4153230.22 16120872.77
—Purchase 2813738.59 4153230.22 6966968.81
Construction in progress
transfer-in
9153903.96 9153903.96
（3）Current decreased 75311278.51 928813610.88 2392622.25 1475505.38 1007993017.02
—Disposal or scrapping 15960958.30 715372.52 385603.62 17061934.44
--- Decrease in disposal of
subsidiaries
75311278.51 912852652.58 1677249.73 1089901.76 990931082.58
（4）Ending Balance 426009822.97 3159342280.68 16757800.53 58485287.75 3660595191.93
2. Accumulated depreciation -
（1）Year-end balance of last
year
308704855.97 2768225963.03 9246358.34 43480376.04 3129657553.38
（2）Current increased 11301007.68 56821596.70 1527499.94 1843545.95 71493650.27
—Accrual 11301007.68 56821596.70 1527499.94 1843545.95 71493650.27
（3）Current decreased 45538524.40 539322987.55 1995714.32 1141057.18 587998283.45
—Disposal or scrapping 14060204.09 660492.52 347043.26 15067739.87深圳南山热电股份有限公司审计报告
Item House and buildings Machinery equipment Transportation tools Other Total
--- Decrease in disposal of
subsidiaries
45538524.40 525262783.46 1335221.80 794013.92 572930543.58
（4）Ending Balance 274467339.25 2285724572.18 8778143.96 44182864.81 2613152920.20
3. Impairment provision -
（1）Year-end balance of last
year
14860025.13 126273884.99 141133910.12
（2）Current increased 14045534.44 14045534.44
—Accrual 14045534.44 14045534.44
（3）Current decreased 5059785.83 28422595.55 - - 33482381.38
—Disposal or scrapping -
--- Decrease in disposal of
subsidiaries
5059785.83 28422595.55 33482381.38
（4）Ending Balance 9800239.30 111896823.88 - - 121697063.18
4．Book value
(1) Period-end book value 141742244.42 761720884.62 7979656.57 14302422.94 925745208.55
(2) Book value of end of last
year
177756220.38 1184502139.58 7090325.85 12327186.87 1381675872.68深圳南山热电股份有限公司审计报告
3. Idle fixed assets temporary
Item
Original book
value
Accumulated
depreciation
Impairment
provision
Book value Note
Housing &
buildings
127893412.10 97976714.45 13948439.04 15968258.61
Machinery
equipment
575864445.49 489027393.44 48010891.76 38826160.29
Transportation
equipment
256300.00 230670.00 25630.00
Total 704014157.59 587234777.89 61959330.80 54820048.90
4. Fixed assets without property rights certificate
Item Book value
Reasons for failing to
complete the property rights
certificate
Circulating Water Pump House 1316071.46 Procedures uncompleted
Cooling Tower 673259.25 Procedures uncompleted
Complex Building-Xiefu 443246.19 Procedures uncompleted
Heavy oil treatment workshop 402438.65 Procedures uncompleted
Comprehensive building canteen 266469.03 Procedures uncompleted
Chemical water treatment
workshop
232960.00 Procedures uncompleted
Fire pump room 209965.89 Procedures uncompleted
Main entrance mail room 164356.97 Procedures uncompleted
Start-up boiler house 90681.43 Procedures uncompleted
Total 3799448.87
(12) Construction in progress
1. Construction in progress and Engineering materials
Item Ending Balance
Year-end balance of last
year
Construction in progress 42782712.98 66474630.23深圳南山热电股份有限公司审计报告
Item Ending Balance
Year-end balance of last
year
Engineering materials
Total 42782712.98 66474630.23深圳南山热电股份有限公司审计报告
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
Cogenerati
on
60112152.
46
22273910.
43
37838242.
03
61987009.
57
-
61987009.
57
Oil to Gas
Works
13230574.
53
13230574.
53
-
5720987.5
9
5720987.5
9
-
Technical
innovation
4944470.9
5
4944470.9
5
30278212.
46
27150612.
67
3127599.7
9
Other
1360020.8
7
-
1360020.8
7
Total
78287197.
94
35504484.
96
42782712.
98
99346230.
49
32871600.
26
66474630.
23深圳南山热电股份有限公司审计报告
3. Changes of significant projects in construction in the period
Item Budget
Year-end
balance of
last year
Current
increased
Transferred
fixed assets
in this
period
Other
decrease in
the period
Ending
Balance
Proportion
of
accumulati
ve project
investment
in budget
(%)
Project
progress
(%)
Accumulati
ve amount
of
capitalizatio
n of interest
Including:
capitalizati
on of
interest
Rate of
interest
capitalizati
on (%)
Capital
sources
Cogenerati
on
60000000.0
0
63151182.
64
2211148.5
4
5250178.7
2
60112152.
46
100.00 100.00
6476185.4
6
Self-raise
d and
borrowin
g
Oil to Gas
Works
74400000.0
0
32871600.
26
19641025.
73
13230574.
53
63.76 63.76
Self-raise
d
Technical
innovation
3061557.0
7
10774927.
32
8892013.
44
4944470.9
5
Not
applicable
Not
applicabl
e
Self-raise
d
Other 261890.52 261890.52 -
Self-raise
d
Total
134400000.
00
99346230.
49
12986075.
86
9153903.
96
24891204.
45
78287197.
94
6476185.4
6深圳南山热电股份有限公司审计报告
4. Accrual of impairment provision for Construction in progress in the period
Item
Withdrawal amount for the
current period
Reason for provision
Cogeneration 22273910.43
Failed to pass the acceptance
not put into use
Total 22273910.43
(13) Intangible assets
1. Intangible assets
Item Land use right Software Total
1．Original book value
（1）Year-end balance of last
year
91355995.46 3577588.80 94933584.26
（2）Current increased 213630.54 213630.54
—Purchase 213630.54 213630.54
（3）Current decreased 30542000.70 30542000.70
—Disposal
—Decrease in disposal
of subsidiaries
30542000.70 30542000.70
（4）Ending Balance 60813994.76 3791219.34 64605214.10
2. Accumulated amortization
（1）Year-end balance of last
year
48080331.33 3251086.49 51331417.82
（2）Current increased 700231.35 207891.42 908122.77
—Accrual 700231.35 207891.42 908122.77
（3）Current decreased 8759936.73 8759936.73
—Disposal
—Decrease in disposal
of subsidiaries
8759936.73 8759936.73
（4）Ending Balance 40020625.95 3458977.91 43479603.86
3．Impairment provision
（1）Year-end balance of last
year
（2）Current increased
—Accrual
（3）Current decreased
—Disposal
（4）Ending Balance深圳南山热电股份有限公司审计报告
Item Land use right Software Total
4．Book value
(1) Closing book value 20793368.81 332241.43 21125610.24
(2) Book value at the end of last
year
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
Total 530733.25
(14) Long-term deferred expenses
Item
Year-end
balance of
last year
Current
increased
Amortized in
the Period
Other decrease Ending
Balance
Exhibition hall
decoration
amount
1174171.16 114851.49 261513.71 1027508.94
Total 1174171.16 114851.49 261513.71 1027508.94
(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
2500000.00 625000.00 2500000.00 625000.00深圳南山热电股份有限公司审计报告
Item
Ending Balance Year-end balance of last year
Deductible
temporary
difference
Deferred income tax
assets
Deductible
temporary
difference
Deferred income
tax assets
investments
Total 8852158.77 2206049.69 8852158.77 2206049.69
2. Details of unrecognized deferred income tax assets
Item Ending Balance
Year-end balance of
last year
Deductible temporary difference 257908575.87 252394395.47
Deductible loss 150290572.14 195054252.98
Total 408199148.01 447448648.45
3. Deductible losses of un-recognized deferred income tax assets expired on the followed year
Year Ending Balance
Year-end balance of
last year
Note
2020 51262905.45
2021 8844687.56 74575975.11
2022 18744225.08 23638284.56
2023 41640520.44 41640520.44
2024 11385937.72 3936567.42
2025 69675201.34
Total 150290572.14 195054252.98
(16) Other non-current assets
Item
Ending Balance Year-end balance of last year
Book
balance
Impairment
provision
Book
value
Book balance
Impairment
provision
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深圳南山热电股份有限公司审计报告
Item Ending Balance
Year-end balance of last
year
Guarantee loans 300000000.00
Credit loans 672033285.00 580000000.00
Accrued interest 3495573.48 1075378.48
Total 675528858.48 881075378.48
(18) Note payable
Species Ending Balance
Year-end balance of last
year
Bank acceptance 30467345.48
Total 30467345.48
(19) Account payable
1. Account payable
Item Ending Balance
Year-end balance of last
year
Materials 1485870.91 12180417.48
Electricity 3198432.35 1760985.99
Labor 4622000.00 3102530.32
Others 2827168.62
Total 9306303.26 19871102.41
(20)Wages payable
1. Wages payable
Item
Year-end
balance of last
year
Current increased Current Decreased Ending Balance
Short-term remuneration 54801004.42 156245639.64 142058245.03 68988399.03
Post-employment
welfare-defined
contribution plans
407428.11 12202866.56 12171789.73 438504.94
Severance Pay
Other welfare due within
one year深圳南山热电股份有限公司审计报告
Item
Year-end
balance of last
year
Current increased Current Decreased Ending Balance
Total 55208432.53 168448506.20 154230034.76 69426903.97
2. Short-term remuneration
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending Balance
(1) Wages bonuses
allowances and subsidies
53579116.98 128573278.37 113668220.98 68484174.37
(2) Welfare for workers
and staff
63050.00 936106.00 869795.00 129361.00
(3) Social insurance 199344.99 5790260.78 5989605.77 -
Including: Medical
insurance
167818.74 5653278.75 5821097.49
Work injury
insurance
13139.34 8075.81 21215.15
Maternity
insurance
18386.91 128906.22 147293.13
(4) Housing
accumulation fund
614780.58 19347873.62 19962654.20
(5) Labor union
expenditure and
personnel education
expense
344711.87 1598120.87 1567969.08 374863.66
(6) Short-term paid
absence
(7) Short-term profit
sharing plan
Total 54801004.42 156245639.64 142058245.03 68988399.03
3. Defined contribution plans
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending
Balance
Basic endowment insurance 394280.13 6476552.40 6870832.53
Unemployment insurance 12849.98 35874.01 48723.99
Enterprise annuity 298.00 5265071.94 4826865.00 438504.94深圳南山热电股份有限公司审计报告
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending
Balance
Other - 425368.21 425368.21
Total 407428.11 12202866.56 12171789.73 438504.94
(21) Taxes payable
Tax Item Ending Balance
Year-end balance of last
year
VAT 3086053.57 15053172.64
Environmental tax 32646.98 14373.02
Corporate income tax 621938.34 3407074.02
Personal Income Tax 2726195.98 1550858.52
Urban maintenance and construction
tax
44879.53 101751.28
Property tax 996166.86 996166.86
Stamp duty 33443.10 252230.52
Local education surcharge 16824.46 33593.64
Education surcharge 25236.71 50390.44
Other 42872.73 309662.83
Total 7626258.26 21769273.77
(22) Other account payable
Item Ending Balance
Year-end balance of last
year
Interest payable
Other account payable 27020944.95 43691472.06
Total 27020944.95 43691472.06
1. Other account payable
(1) Other payable by nature
Item Ending Balance
Year-end balance of last
year
Engineering funds 7759695.06 13045165.88
Quality assurance 6675270.29 6825475.53
Accrued expenses 6625316.75 10301185.40深圳南山热电股份有限公司审计报告
Item Ending Balance
Year-end balance of last
year
Material payment 147487.65
Equipment fund 3215000.00 3718050.65
Other 2598175.20 9801594.60
Total 27020944.95 43691472.06
(2) Top five other payable
The ending balance of the top five other payable aggregated by the arrears party is 7947436.34
yuan accounting for 29.41% of the total ending balance of other payable.
(23) Accrual liability
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending
Balance
Reason
Pending
litigation
26646056.28 6722548.00 19923508.28
Other
Total 26646056.28 6722548.00 19923508.28
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
12500000.00 yuan 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 15000000.00 yuan. Relevant losses with the event concerned predicted amounting to 27
500000.00 yuan by the Group the balance at the end of 2019 was 26646056.28 yuan.
On November 12 2020 Huidong Server and other related parties reached a preliminary settlement agreement on
the land disputes in the estimated liabilities. According to this accrual liability of 6584816.78 yuan was reversed
by Shenzhen Server. In 2020 Shenzhen Server to bear the lawyer’s and other expenses in accordance with the
agreed proportion that is 137731.22 yuan the accrual liability has 6722548.00 yuan declined in total in the
Period. Balance of 19923508.28 yuan refers to the repayment obligations that are likely to occur before the
completion of the above matters.
(24) Deferred income
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending
Balance Reasons深圳南山热电股份有限公司审计报告
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending
Balance Reasons
Government
subsidy
108507683.52 14727025.59 93780657.93
Total 108507683.52 14727025.59 93780657.93
Items with government subsidy involved:
Liability
Year-end
balance of last
year
Subsidy
amount
newly
increased
in the
current
period
Amount
included in
current profit
and loss
Other change
Ending
Balance
Assets
related/income
related
Government
subsidies for
low-nitrogen
equipment
renovation
25165130.64 516675.96 24648454.68 Assets related
Government
subsidies for
information
construction
projects
86666.60 61176.48 25490.12 Assets related
Subsidies for
the Motor
Energy
Efficiency
Improvement
Funding
Scheme
401760.00 34560.00 367200.00 Assets related
Support fund
of recycling
economy for
sludge drying
7451273.95 647002.92 6804271.03 Assets related
Treasury
subsidies for
sludge drying
2826250.00 255000.00 2571250.00 Assets related
Special funds
for energy
conservation
and emission
684223.30 114037.32 570185.98 Assets related深圳南山热电股份有限公司审计报告
reduction
Subsidy for
quality
promotion of
the air
environment
in Shenzhen
(note 1)
67262379.03 4731818.16 3736754.75 58793806.12 Assets related
Cogeneration
(note 2)
4630000.00 4630000.00 - Assets related
Total 108507683.52 - 6360270.84 8366754.75 93780657.93
Note 1: The decrease in the subsidy funds for the improvement of atmospheric environmental quality in Shenzhen
during the current period was due to the unamortized amount of deferred income corresponding to spare parts sold
to Dongguan Weimei in the previous year the relevant gains and losses have been realized after the disposal of
Dongguan Weimei in the current period and were transferred to the current profit and loss.
Note 2: The reduction in financial subsidies for cogeneration projects during the current period was because that
the subsidy was the disposed subsidy corresponding to the holding subsidiary Dongguan Weimei the reduction
was caused by the disposal of the equity.
(25) Other non-current liabilities
Item Ending Balance
Year-end balance of last
year
Amounts payable to other shareholders 7627.86
Total 7627.86
Note: In November 2020 the company and Guangdong China Science and Tech Innovation Venture Capital
Management Co. Ltd. jointly established Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership).The two parties agreed that Guangdong China Science and Tech Innovation Venture Capital Management Co. Ltd.is a general partner with a capital contribution of 100000 yuan; Shenzhen Nanshan Power Co. Ltd. is a limited
partner with a capital contribution of 279900000 yuan. Guangdong China Science and Tech Innovation Venture
Capital Management Co. Ltd. actually invested 7627.86 yuan and enjoyed a 0.0357% equity ratio. According to
the agreement between the company and Guangdong China Science and Tech Innovation Venture Capital
Management Co. Ltd. the partnership firm does not have a management organization for daily operations. Since
the date of establishment it has signed the "Entrusted Management Agreement" with the fund manager Guangdong
China Science and Tech Innovation Venture Capital Management Co. Ltd. entrusting it to operate and manage the
partnership assets for a period of 5 years; the partnership enterprise needs to pay fund management income to the
fund manager on a regular basis. Fund manager enjoys a basically fixed return and the remaining risks and returns
belong to other partners. The company assumes the obligation to guarantee the basic return to the fund manager
that the subordinate limited partnership cannot pay and cannot unconditionally avoid the delivery of cash or other
financial assets to fulfill its contractual obligations. Therefore the capital contributions of other equity holders of
the subsidiary limited partnership are classified as financial liabilities and the statement items are listed as other
non-current liabilities.深圳南山热电股份有限公司审计报告
(26) 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
Total
shares
602762596.00 602762596.00
(27) Capital reserve
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending BalanceCapital 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审计报告
(28) Other comprehensive income
Item
Year-end
balance of last
year
Balance at
year-begin
Current period
Ending
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: written in
other
comprehensive
income in
previous period
and carried
forward to
retained earnings
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
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
Total other comprehensive income -2500000.00 -2500000.00深圳南山热电股份有限公司审计报告
(29) Surplus reserve
Item
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending Balance
Legal surplus reserve 310158957.87 310158957.87
Discretionary surplus
reserve
22749439.73 22749439.73
Total 332908397.60 332908397.60
(30) Retained profit
Item Current amount Last-period amount
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
64024291.32 24900956.73
Less: withdrawal of statutory surplus reserve
Common Stock dividend payable 12055251.92
Retained profit at period-end 758799931.94 706830892.54
(31) Operating income and operating cost
Item
Current amount Last-period amount
Income Cost Income Cost
Main business 982484377.16 794326472.79 1215058062.82 1061104493.35
Other business 2769454.42 197337.60 7519891.71 812220.50
Total 985253831.58 794523810.39 1222577954.53 1061916713.85
(32) Tax and surcharge
Item Current amount Last-period amount深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Property tax 2149484.33 2821267.33
Travel tax 15266.56 31316.56
Land holding tax 785747.88 1141596.06
Stamp duty 625730.48 924912.41
Urban maintenance and
construction tax
2507916.30 1350602.20
Education surcharge 1413635.81 1120703.52
Local education surcharge 935569.77 63814.32
Environmental protection tax 112506.92 186572.43
Total 8545858.05 7640784.83
(33) Sales expense
Item Current amount Last-period amount
Sludge treatment costs 3848884.38 4031523.46
Salary welfare and social insurance 655091.29 996151.70
Social expenses 233663.28 268359.94
Agency engagement fee 68056.60 75971.70
Property insurance 55981.53 49130.74
Labor insurance fee 23561.59 27960.33
Inspection charges 21683.02 15141.51
Rental fee 18000.00 28800.00
Fleet cost 15284.63 30638.59
Housing fund 14746.52 24528.10
Food expenses 11900.00 16800.00
Travel expenses 7662.50 28899.36
Communication expenses 5400.00 5400.00
Total 4979915.34 5599305.43
(34) Administration expense
Item Current amount Last-period amount
Wages 62913189.30 58981116.34
Rental fee 7243936.24 6580207.65
Depreciation 6453519.80 5649591.19深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Social expenses 2983408.61 3771769.48
Food expenses 3217453.47 3592575.99
Agency fee 3766552.89 3095141.29
Repairing cost 1191409.25 2969577.00
Eco fee 244376.90 2106321.81
Fleet cost 4202313.60 1845751.95
Office fee 1369300.09 1814835.07
Board charges 2357575.81 1524267.12
Communication expenses 1201372.17 1215924.18
Amortization of intangible assets 292083.81 1167628.79
Corporate culture fee 1175121.33 1131607.97
Property management fee 989244.87 976311.67
Business travel expenses 710951.65 961610.72
Fee for stock certificate 676422.39 897478.35
Other 10629992.91 11260183.61
Total 111618225.09 109541900.18
(35) R&D expenses
Item Current amount Last-period amount
Employee's salary 8242704.84
Depreciation 163768.32
Amortization of intangible assets 84409.42
Total 8490882.58
(36) Financial expense
Item Current amount Last-period amount
Interest expenses 33228170.68 50574483.78
Less: capitalized interest 1213367.42 1362031.20
Expenses interest 32014803.26 49212452.58
Less: interest income 32660554.45 26884777.55
Exchange loss (gains is listed with ”-”) 407513.25 -88809.42深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Other 171579.98 71842.43
Total -66657.96 22310708.04
(37) Other Income
Item Current amount Last-period amount
Government grants 15117534.15 10137838.38
Debt restructuring income 7593783.90
Total 22711318.05 10137838.38
Government subsidies included in other income
Item Current amount Last-period amount
Asset related /
income related
VAT rebates 1283570.70 3734989.57 Income related
Subsidy for low-nitrogen
transformation
516675.96 522511.46
Asset related
Support fund of recycling economy for
sludge drying
647002.92 647002.92
Asset related
Treasury subsidies for sludge drying 255000.00 255000.00 Asset related
Subsidy for quality promotion of the
air environment in Shenzhen
4731818.16 3567560.63
Asset related
Special funds for energy conservation
and emission reduction
114037.32 114037.32
Asset related
Individual tax refund 375369.20 Income related
Enterprise unemployment
insurance premium refund
4176211.18
Income related
Information construction 61176.48 61176.48 Asset related
Funded of energy efficiency
improvement for electric machine
34560.00 34560.00
Asset related
Employment and unemployment
monitoring subsidy
1000.00 1000.00
Income related
Reward to encouraging small and
medium-sized enterprise to growth as a
scale-sized company
27816.00 200000.00
Income related
Supporting funds of office occupancy
for listed companies
1822300.00 1000000.00
Income related
Special fund for the development 500000.00 Income related深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Asset related /
income related
of independent innovation
industry
Qianhai Epidemic Prevention
Support Special Fund
448791.00
Income related
Subsidy of further stable growth 100000.00 Income related
Job stabilization subsidy 21687.31 Income related
Preferential refund of education
fees for comprehensive
utilization of resources products
and labor
517.92
Income related
Total 15117534.15 10137838.38
(38) Investment income
Item Current amount Last-period amount
Long-term equity investment income by
equity
-5725794.17 -1429841.92
Investment income from disposal
of long-term equity investments
33534881.55
Total 27809087.38 -1429841.92
(39) Credit impairment loss
Item Current amount Last-period amount
Bad debt loss of accounts receivable -568572.76
Bad debt loss of other receivables 12000.00
Total -556572.76
(40) Assets impairment loss
Item Current amount Last-period amount
Loss of inventory fall -7399234.51
Fixed asset impairment loss -14045534.44
Construction in progress
impairment loss
-22273910.43
Total -43718679.38深圳南山热电股份有限公司审计报告
(41) 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
-1109128.91 -279099.94 -1109128.91
Total -1109128.91 -279099.94 -1109128.91
(42) Non-operating revenue
Item Current amount Last-period amount
Amount reckoned into
non-recurring
gains/losses of the
Period
Reversal of accrual liabilities 6584816.78 6584816.78
Sales of carbon emissions
gains
2383489.15
Other 500.00 3217727.78 500.00
Total 6585316.78 5601216.93 6585316.78
(43) 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 10000.00
Loss of scrap from non-current
assets
34990.00 248009.08 34990.00
Other 108729.62 12339.71 108729.62
Total 153719.62 270348.79 153719.62
(44) Income tax expense
1. Income tax expense
Item Current amount Last-period amount
Current income tax 1361203.90 3213516.91深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Deferred income tax - -134725.43
Total 1361203.90 3078791.48
2. Adjustment on accounting profit and income tax expenses
Item Current amount
Total profit 69285992.39
Income tax measured by statutory/applicable tax rate 17321399.23
Impact on subsidiary with different rates adaption 148307.73
Impact on cost expenses and losses that unable to deducted -15643367.32
Effect of deductible losses of deferred tax assets unconfirmed at the earlier stage of
use
-15975634.80
Impact on deductible temporary differences or losses deductible which was
un-recognized as deferred income tax assets
30145175.59
Impact of R&D Expenses Plus Deduction -931706.20
The impact of investment income under the equity method 1431448.54
The impact of asset impairment losses from previous years recognized
in the current period
-15134418.87
Income tax expenses 1361203.90
(45) Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average number of ordinary shares
issued by the company:
Item Current amount Last-period amount
Consolidated net profit attributable to ordinary
shareholders of the parent company
64024291.32 24900956.72
Weighted average number of common shares
issued by the company
602762596.00 602762596.00
Basic earnings per share 0.1062 0.0413
2. Diluted earnings per share深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Consolidated net profit attributable to ordinary
shareholders of the parent company (diluted)
64024291.32 24900956.72
Weighted average number of common shares
issued by the company (diluted)
602762596.00 602762596.00
Diluted earnings per share 0.1062 0.0413
(46) Cash flow statement
1. Cash received with other operating activities concerned
Item Current amount Last-period amount
Interest income 30591982.78 23690836.55
Government subsidy 7639374.06 39298273.00
Intercourse funds 7399077.47 7534398.30
Other 320135.7 8214304.81
Total 45950570.01 78737812.66
2. Other cash paid in relation to operation activities
Item Current amount Last-period amount
Out-of-pocket expenses 48434930.11 48649620.63
Intercourse funds 9982836.03 9032309.97
Total 58417766.14 57681930.60
3. Other cash received in relation to investment activities
Item Current amount Last-period amount
debt repayment received from Huidong Server 1144800.00 1489600.00
Interest from financial products 6763164.80
Total 7907964.80 1489600.00
4.Other cash received in relation to financing activities
Item Current amount Last-period amount
Received from other company 170000000.00 5170000.00
Total 170000000.00 5170000.00
5. Cash paid related with financing activities深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Other account paid 887962.40
Total 887962.40
(47) 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 67924788.49 25692942.62
Add: credit impairment loss 556572.76
Assets impairment provision 43718679.38
Depreciation of fixed assets 71493650.27 105561161.38
Amortization of intangible assets 908122.77 2429067.75
Amortization of long-term deferred expenses 261513.71 85542.87
Loss from disposing fixed assets intangible assetsand other long-term assets (income listed with “-“)
1109128.91 279099.94
Loss on retirement of fixed assets (gain is listed
with “-”)
34990.00 248009.08
Loss from changes of fair value (income listedwith “-“)
Financial expense (gain listed with “-”) 32014803.26 48887169.51
Investment loss (gain listed with “-”) 27809087.38 1429841.92
Decrease of deferred income tax asset( (increase is
listed with “-”)
-134725.43
Decrease of inventory (increase is listed with “-”)
Decrease of inventory (increase is listed with “-”) 22175312.08 5650701.78
Decrease of operating receivable accounts
(increase is listed with “-”)
47614892.79 -34099159.37
Increase of operating payable accounts (decrease is
listed with “-”)
-39612534.43 13462259.61
Other -14727025.59 32895424.19深圳南山热电股份有限公司审计报告
Supplementary information Current amount Last-period amount
Net cash flow arising from operating activities 260725409.02 202943908.61
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:
Balance of cash at period end 397101272.21 381490000.96
Less: Balance of cash at end of the previous year 381490000.96 574956611.70
Add: Ending balance of cash equivalent
367500000.00
390000000.00
Less:Balance of cash equivalent at end of the previous
year
390000000.00
340000000.00
Net increasing of cash and cash equivalents -6888728.75 -143466610.74
2. Net cash received from disposal of subsidiaries in the current period
Item Amount
Cash or cash equivalents received by subsidiaries disposal in the
current period
104980000.00
Less: cash and cash equivalents held by the company on the day
when control is lost
72567163.02
Net cash received from disposal of subsidiaries 32412836.98
3. Composition of cash and cash equivalent
Item Ending Balance
Year-end balance of
last year
I. Cash 397101272.21 381490000.96
Including: Cash on hand 101163.11 84307.60
Bank savings available for payment needed
397000109.10 381339856.01
Other monetary capital available for payment
needed
65837.35
Account due from central bank available for payment深圳南山热电股份有限公司审计报告
Item Ending Balance
Year-end balance of
last year
Amount due from banks
Amount call loans to banks
II. Cash equivalent 367500000.00 390000000.00
including: bond investment due within three months
III. Balance of cash and cash equivalent at period-end 764601272.21 771490000.96
Including: Cash and cash equivalent of the parent company
or subsidiaries with use restricted
(48) Assets of ownership or use right restricted
Item Ending book value Opening book value Restricted reason
Monetary Fund 1719853.88 Cash deposit
(49) 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 839391.70 6.52 5476946.90
Euro 1017.87 8.02 8168.10
HKD 448317.53 0.84 377307.14
(50) 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
current
gain/loss or
loss resulting
from related
costs
off-setting
Current
amount
Last-period
amount
Subsidy for
low-nitrogen
transformation
458768.16
Other
income
458768.16 522511.46 458768.16
Support fund of 647002.92 Other 647002.92 647002.92 647002.92深圳南山热电股份有限公司审计报告
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
current
gain/loss or
loss resulting
from related
costs
off-setting
Current
amount
Last-period
amount
recycling economy for
sludge drying
income
Treasury subsidies for
sludge drying
255000.00
Other
income
255000.00 255000.00 255000.00
Subsidy for quality
promotion of the air
environment in
Shenzhen
4789725.96
Other
income
4789725.96 3567560.63 4789725.96
Special funds for energy
conservation and
emission reduction
114037.32
Other
income
114037.32 114037.32 114037.32
Information
construction
61176.48
Other
income
61176.48 61176.48 61176.48
Funded of energy
efficiency improvement
for electric machine
34560.00
Other
income
34560.00 34560.00 34560.00
Total 6360270.84 6360270.84 5201848.81 6360270.84
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-period
amount
VAT refund 1283570.70 1283570.70 3734989.57 1283570.70
Individual tax refund 375369.20 375369.20 - 375369.20
Enterprise unemployment
insurance premium refund
4176211.18 4176211.18 - 4176211.18
Employment and unemployment
monitoring subsidy
1000.00 1000.00 1000.00 1000.00
Reward to encouraging small
and medium-sized enterprise to
growth as a scale-sized company
27816.00 27816.00 200000.00 27816.00深圳南山热电股份有限公司审计报告
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-period
amount
Supporting funds of office
occupancy for listed companies
1822300.00 1822300.00 1000000.00 1822300.00
Special fund for the
development of independent
innovation industry
500000.00 500000.00 - 500000.00
Qianhai Epidemic
Prevention Support Special
Fund
448791.00 448791.00 - 448791.00
Subsidy of further stable
growth
100000.00 100000.00 - 100000.00
Job stabilization subsidy 21687.31 21687.31 - 21687.31
Preferential refund of
education fees for
comprehensive utilization of
resources products and labor
517.92 517.92 - 517.92
Total 8757263.31 8757263.31 4935989.57 8757263.31深圳南山热电股份有限公司审计报告
VI. Change of consolidate scope
During the reporting period the company established a new subsidiary and disposed of a holding
company. The newly established company is under the control of the company and is included in
the scope of the consolidated statement during the reporting period. For details please refer to
Note 8. (1) Equity in subsidiaries.VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
Subsidiary
Main
operation
place
Shareholding ratio (%)
Acquired way
Directly Indirectly
Shennandian (Zhongshan) Power Co.Ltd. (“Zhongshan Power”)
Zhongshan 55.00 25.00 Establishment
Shenzhen Shennandian Gas Turbine
Engineering Technology Co. Ltd.
(“Engineering Company”)
Shenzhen 60.00 40.00 Establishment
Shenzhen Shennandian EnvironmentalProtection Co. Ltd. (“EnvironmentalProtection Company”)
Shenzhen 70.00 30.00 Establishment
Shenzhen Xiefu Energy Co. Ltd.("Shenzhen Xiefu")
Shenzhen 50.00 - Establishment
Shenzhen New Power Industry Co.Ltd. ("New Power")
Shenzhen 75.00 25.00 Establishment
Shennan Energy (Singapore) Co. Ltd.("Singapore Company")
Singapore 100.00 - Establishment
Hong Kong Syndisome Co. Ltd.("Syndisome ")
Hong Kong - 100.00 Establishment
Zhongshan Shennandian Storage Co.Ltd. ("Shenzhen Storage")
Zhongshan 80.00 Establishment
Zhuhai Hengqin Zhuozhi Investment
Partnership (Limited Partnership)
Zhuhai 99.96 - Establishment
2. Important non-wholly-owned subsidiary
Subsidiary
Share-holding
ratio of
minority (%)
Gains/losses
attributable to
minority in the Period
Ending equity of
minority深圳南山热电股份有限公司审计报告
Subsidiary
Share-holding
ratio of
minority (%)
Gains/losses
attributable to
minority in the Period
Ending equity of
minority
Shennandian (Zhongshan) Power Co.Ltd. (“Zhongshan Power”)
20.00 7138144.59 -11729613.03深圳南山热电股份有限公司审计报告
3. Main finance of the important non-wholly-owned subsidiary
Subsidiar
y
Ending Balance /RMB Year-end balance of last year / RMB
Current
assets
Non-current
assets
Total assets
Current
liability
Non-curre
nt liability
Total
liability
Current
assets
Non-current
assets
Total assets
Current
liability
Non-curre
nt liability
Total
liability
Shennan
dian
(Zhongs
han)
Power
Co. Ltd.(“ZhongshanPower”)
6388751
1.26
4867930
86.63
5506805
97.89
6038629
34.78
546572
8.24
6093286
63.02
6781021
1.56
5298009
68.49
5976111
80.05
6863122
94.78
563767
3.36
6919499
68.14
Subsidiary
Current amount/ RMB Last-period amount/ RMB
Operation Income Net profit
Total
comprehensive
income
Cash flow from
operation activity
Operation Income Net profit
Total
comprehensive
income
Cash flow from
operation
activity
Shennandian
(Zhongshan) Power
Co. Ltd.(“ZhongshanPower”)
202539109.51 35690722.96 35690722.96 114269754.95 171254894.37 656087.40 656087.40 88204730.40深圳南山热电股份有限公司审计报告
(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
Name of joint
venture or joint
venture
Main
operation
place
Main business
activities
Share-holding ratio（%） Accounting treatment on
investment for joint venture
and cooperative enterprise
Directly Indirectly
Huidong Server
Port
Comprehensive
Development Co.
Ltd.Renshan
Town
Huidong
County
Wharf operation 40.00 Equity method
2. Major financial information of important joint ventures or joint ventures
Ending Balance /Current amount
Ending balance of previous
year/Last-period amount
Total book value of investment 8893408.86 14619203.03
Total numbers measured by share-holding ratio
Net profit -5725794.17 -1429841.92
Other comprehensive income
Total comprehensive income -5725794.17 -1429841.92
VIII. Risks relating to financial instruments
The Company's main financial instruments include equity investment notes receivable long-term and short-term loans accounts
receivable accounts payable other payable etc. see details of each financial instrument in related items of this annotation III (x).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.
(1) Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations causing the other party to suffer
financial losses. The Company is mainly faced with customer credit risk caused by credit sales. Before signing a new contract the深圳南山热电股份有限公司审计报告
Company will evaluate the credit risk of the new customer including the external credit rating and in some cases the bank credit
certificate (when this information is available). The company has set a credit limit for each customer which is the maximum amount
without additional approval.The company ensures that the company's overall credit risk is within a controllable range through quarterly monitoring of existing
customer credit ratings and monthly review of accounts receivable aging analysis. When monitoring the credit risk of customers they
are grouped according to their credit characteristics. Customers rated as "high risk" will be placed on the restricted customer list and
only with additional approval the company can sell them on credit in the future otherwise they must be required to pay the
corresponding amount in advance.
(2) 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 (17); Note V(36).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 -14399.25 -14399.25 -1192987.50 -1192987.50
5% decreased 14399.25 14399.25 1192987.50 1192987.50
(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 Dec. 31 2020 except for the balance of foreign currency monetary items of 49 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.深圳南山热电股份有限公司审计报告
(3) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by means of cash or other
financial assets. The Company's policy is to ensure that it has sufficient cash to repay the debts due. Liquidity risk is centrally
controlled by the Company's financial department. The financial department monitors cash balances marketable securities that can
be cashed at any time and rolling forecasts of cash flows in the next 12 months to ensure that the company has sufficient funds to
repay debts under all reasonable forecasts.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. (1) Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. (2) Equity in other entity
(4) Other related party
Other related party Relationship with the Company
Shenzhen Energy Group Co. Ltd. (“Shenzhen Energy Group” 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 Holdings Co. Ltd.Legal person indirectly holding more than 5% of the
company's shares through Shenzhen Energy Group
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
Shennandian (Dongguan) Weimei Power Co. Ltd. Other related parties
(5) Related party transaction深圳南山热电股份有限公司审计报告
1. Related party guarantees
The company as guarantor:
Guaranteed Amount guaranteed Starting date Maturity date
Whether the
guarantee has
been fulfilled
(Y/N)
Shennandian (Dongguan) Weimei Power
Co. Ltd.
200000000.00 2019/6/24 2020/4/30 Y
Shennandian (Dongguan) Weimei Power
Co. Ltd.
200000000.00 2019/6/26 2020/4/30 Y
Total 400000000.00
2. Remuneration of key manager
Item Current amount Last-period amount
Remuneration of key manager 5301000 yuan 5404200 yuan
(6) Receivable/payable items of related parties
1. Receivable
Item Related party Ending Balance Year-end balance of last year
Other account
receivable
Huidong Server 14740501.44 9060361.44
Huidong Server managed
account
6634071.38 13114012.69
…… Total 21374572.82 22174374.13
X. Commitment and Contingency
(1) Major Commitment
As of December 31 2020 the company has no commitments that need to be disclosed.
(2) Contingency
As of December 31 2020 the company has no contingencies that need to be disclosed.
XI. Events Occurring after the Balance Sheet Date深圳南山热电股份有限公司审计报告
As of the date of this report the company has no contingencies that need to be disclosed.
(1) Important non-adjusting matters
(2) Note of other events occurring after the balance sheet date
(3) Segment information
1. Determining basis and accounting policies of the report divisions
According to the Company’s internal organizational structure management requirements and internal reporting
system the Company’s operating business is divided into three business divisions i.e. power supply and heating
fuel trading and other businesses. The Company’s management regularly evaluates the business performance of
these divisions in order to determine the allocation of resources and evaluate the performance.
Divisional reporting information is disclosed in accordance with the accounting policies and measurement standards adopted when
each division reports to the management. These measurement bases are consistent with the accounting and measurement bases used
when preparing financial statements.
2. Financial information of the reportable segment
Item
Power supply &
heating
Fuel
trading
Other
Fuel
trading
Total
Operation
income
887187171.53 1186761.96
103908079.
24
7028181.15
985253831.5
8
Operation
cost
737261316.92 196137.60
69677268.1
4
12610912.27
794523810.3
9
Total assets
3678545994.41
273651683.9
5
199002480.
23
1130369228
.53
3020830930
.06
Total
liabilities
1667458834.45 25630043.74
39367001.2
0
799367470.9
2
933088408.4
7
XII. Note to main items of financial statements of the Company
(1) Account receivable
1. Age analysis
Age Ending Balance Year-end balance of last year
Within 1year 24673115.32 31821804.69
Over 3 years 2889.00
Subtotal 24673115.32 31824693.69
Less: Bad debt provision
Total 24673115.32 31824693.69深圳南山热电股份有限公司审计报告
2. According to accrual method for bad debts
Category
Ending Balance
Book balance Bad debt provision
Book value
Amount
Proportion
(%)
Amount
Accrual
proportion (%)
Bad debt by single
provision
Provision for bad debts
by portfolio of credit risk
24673115.32 24673115.32
Total 24673115.32 24673115.32
Category
Ending balance of previous year
Book balance Bad debt provision
Book value
Amount Proportion (%) Amount
Accrual
proportion (%)
Bad debt by single
provision
Provision for bad debts
by portfolio of credit
risk
31824693.69 31824693.69
Total 31824693.69 31824693.69
Provision for bad debts by portfolio：
Name
Ending Balance
Account receivable Bad debt provision Accrual ratio （%）
Grid accounts
receivable
24673115.32
Total 24673115.32
3. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 24673115.32 Yuan takes 100
percent of the total account receivable at period-end bad debt provision accrual correspondingly at period-end
amounting as 0 Yuan
(2) Other account receivable
Item Ending Balance
Year-end balance of last
year深圳南山热电股份有限公司审计报告
Item Ending Balance
Year-end balance of last
year
Interest receivable
Dividend receivable
Other account receivable 598044417.89 873861071.55
Total 598044417.89 873861071.55
1.Other account receivable
(1) Age analysis
Age Ending Balance Year-end balance of last year
Within 1year 6702182.44 239265595.88
1 to 2 years 35844839.81 89264291.59
2 to 3 years 10166211.56 100729690.00
Over 3 years 572660827.52 471931137.5
Subtotal 625374061.33 901190714.99
Less: Bad debt provision 27329643.44 27329643.44
Total 598044417.89 873861071.55
(2) By category
Category
Ending Balance
Book balance Bad debt provision
Book value
Amount Proportion (%) Amount
Accrual
proportion
(%)
Bad debt by single
provision
28023159.22 4.48 27329643.44 97.53 693515.78
Provision for bad debts
by portfolio of credit
risk
597350902.11 95.52 - 597350902.11
Total 625374061.33 100.00 27329643.44 4.37 598044417.89
Category
Ending balance of previous year
Book balance Bad debt provision
Book value
Amount Proportion (%) Amount
Accrual
proportion (%)深圳南山热电股份有限公司审计报告
Category
Ending balance of previous year
Book balance Bad debt provision
Book value
Amount Proportion (%) Amount
Accrual
proportion (%)
Bad debt by single
provision
28023159.22 3.11 27329643.44 97.53 693515.78
Provision for bad
debts by portfolio
of credit risk
873167555.77 96.89 - 873167555.77
Total 901190714.99 100.00 27329643.44 3.03 873861071.55
With single provision for bad debts:
Name
Ending Balance
Book balance Bad debt provision
Accrual ratio
（%） Accrual reasons
Individual income tax 2470039.76 2470039.76 100.00
Un-collectable in
excepted
Dormitory amount receivable 2083698.16 1736004.16 83.31
Un-collectable in
excepted
Huiyang Kangtai Industrial
Company
14311626.70 14311626.70 100.00
Un-collectable in
excepted
Beneficiary fund
dividends (personal
receivables)
7498997.87 7498997.87 100.00
Un-collectable in
excepted
Deposit receivable 1658796.73 1312974.95 79.15
Un-collectable in
excepted
Total 28023159.22 27329643.44 97.53
Provision for bad debts by portfolio：
By portfolio
Name
Ending Balance
Other account
receivable
Bad debt provision Accrual ratio （%）
Including: deposit and security
deposit
93118.19
Reserve fund 141771.66
Withholding and Payment 888853.81 -
Other 160831.32 -深圳南山热电股份有限公司审计报告
Name
Ending Balance
Other account
receivable
Bad debt provision Accrual ratio （%）
Accounts between related
parties within the scope of
consolidation
596066327.13 -
Total 597350902.11
(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
Balance at year-begin of the
period
27329643.44 27329643.44
——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
Ending Balance 27329643.44 27329643.44
(5) By nature
Nature Ending book balance Book balance at last year-end
Related party transactions 596066327.13 866978723.13
Dormitory receivable 2083698.16 2083698.16
Deposit receivable 1658753.42 1658796.73
Personal money 9969037.63 10008932.63
other 15596244.99 20460564.34
Subtotal 625374061.33 901190714.99深圳南山热电股份有限公司审计报告
Less: Bad debt provision 27329643.44 27329643.44
Total 598044417.89 873861071.55
(3) Long-term equity investment
Item
Ending Balance Year-end balance of last year
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Investmen
t in
subsidiary
597936200.0
0
347745035.0
0
250191165.0
0
691982849.7
6
388641684.7
6
303341165.0
0
Total
597936200.0
0
347745035.0
0
250191165.0
0
691982849.7
6
388641684.7
6
303341165.0
0
1. Investment to subsidiary
The invested
entity
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending
Balance
Impairment
provision
accrual in the
Period
Period-end
balance of
depreciation
reserves
Shenzhen
Xiefu Oil
Supply
Company
26650000.00 26650000.00
Shennan
Energy
Singapore
Company
6703800.00 6703800.00
Shenzhen
New Power
Industry Co.Ltd.
71270000.00 71270000.00
Shennandian
(Zhongshan)
Power Co.Ltd.
410740000.0
0
410740000.0
0
347745035.0
0
Shenzhen
Shennandian
6000000.00 6000000.00深圳南山热电股份有限公司审计报告
The invested
entity
Year-end
balance of last
year
Current
increased
Current
Decreased
Ending
Balance
Impairment
provision
accrual in the
Period
Period-end
balance of
depreciation
reserves
Gas Turbine
Engineering
Technology
Co. Ltd.
Shennandian
(Dongguan)
Weimei
Power Co.Ltd.
115319049.7
6
115319049.7
6
-40896649.7
6
Shenzhen
Shennandian
Environment
al Protection
Co. Ltd.
55300000.00 55300000.00
Zhuhai
Hengqin
Zhuozhi
Investment
Partnership
(Limited
Partnership)
21272400.0
0
21272400.00
Total
691982849.7
6
21272400.0
0
115319049.7
6
597936200.0
0
-40896649.7
6
347745035.0
0
(4) Operation revenue and operation cost
Item
Current amount Last-period amount
Revenue Cost Revenue Cost
Main business 309680939.69 344087651.19 311287934.22 377618823.17
Other business 66299908.86 6677789.32 94716587.06 10591679.27
Total 375980848.55 350765440.51 406004521.28 388210502.44
(5) Investment income深圳南山热电股份有限公司审计报告
Item Current amount Last-period amount
Investment income from disposal of long-term
equity investments
-14432400.00
Total -14432400.00
XIII. Supplementary information
(1) Statement of non-recurring gains/losses
Item Amount Note
Gains and losses from disposal of non-current assets -1144118.91
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
13833445.53
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
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 7593783.90
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
6584816.78
Switch-back of provision of impairment of account receivable which
are treated with separate depreciation test
Gains and losses obtained from external trusted loans深圳南山热电股份有限公司审计报告
Item Amount Note
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
-118229.62
Other gains and losses items complying with definition for
non-recurring gains and losses
33534881.55 Note
Subtotal 60284579.23
Less: impact on income tax 152683.61
Less: impact on minority equity 3708642.89
Total 56423252.73
Note: Other profit and loss items that meet the definition of non-recurring profit and loss are the disposal income generated by the
company's disposal of 70% of the shares of Shennandian (Dongguan) Weimei Power Co. Ltd. this year.
(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
3.1465 0.1062 0.1062
Net profit attributable to shareholders of the
listed company after deducting non-recurring
gains and losses
0.3736 0.0126 0.0126
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