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

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