2026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Stock Codes: 000037 200037

Stock Abbreviation: Shennan Power A Shennan Power B Announcement No.: 2026-050

Shenzhen Nanshan Power Co. Ltd.2026 Semi-Annual Report

August 25 2026

12026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section I Important Notes Table of Contents and Interpretations

The Board of Directors directors and senior executives of the Company guarantee the authenticity accuracy

and completeness of the contents of the semi-annual report and bear individual and joint legal liabilities for any

false records misleading statements or major omissions.Kong Guoliang Principal and Person in Charge of Accounting of the Company Zhang Xiaoyin Chief Finance

Officer of the Company and Lin Xiaojia Chief Accountant (accounting officer) of the Company hereby declare

that they guarantee the authenticity accuracy and completeness of the financial report in this Semi-annual Report.All the Company's directors have attended the board meeting for the review of this Semi-Annual Report.The Company plans not to distribute cash dividends issue bonus shares or convert capital reserve into

share capital.Any plans for the future or other forward-looking statements mentioned in this Semi-Annual Report shall not

be considered as absolute promises of the Company to investors. Therefore investors are reminded to exercise

caution when making investment-related decisions.This Semi-Annual Report is prepared in both Chinese and English. In case of any discrepancy in the

understanding of the two versions the Chinese version shall prevail. Investors are advised to read the full text

of this Semi-Annual Report carefully.

22026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Table of Contents

Section I Important Notes Table of Contents and In... 2

Section II Company Profile and Financial Indicator... 6

Section III Discussion and Analysis of the Managem... 9

Section IV Corporate Governance Environment and So.. 25

Section V Important Matters ........................ 27

Section VI. Share Changes and Shareholders ......... 38

Section VII Bonds .................................. 45

Section VIII Financial Report ...................... 46

32026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Documents Available for Reference

I. The original of the 2026 Semi-Annual Report with the signature of the Company's legal representative.II. Financial statements signed and sealed by the Company's legal representative Person in Charge of Accounting Chief

Finance Officer and Head of Accounting (accounting officer).III. The originals of all the Company's documents and announcements that have been publicly disclosed in the

designated media during the Reporting Period.IV. Place of reference: Office of the Board of Directors of the Company.

42026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Interpretations

Content Refer to Definition

Company the Company Shennan Power Listed

Refer to Shenzhen Nanshan Power Co. Ltd.Company

Nanshan Thermal Power Station of Shenzhen

Nanshan Thermal Power Station Refer to

Nanshan Power Co. Ltd.Shennan Power (Zhongshan) Electric Power Co.Shennan Power Zhongshan Company Refer to

Ltd.Shenzhen Shennan Power Gas Turbine

Shennan Power Engineering Company Refer to

Engineering Technology Co. Ltd.Shennan Power Environmental Protection Shenzhen Shennan Power Environmental

Refer to

Company Protection Co. Ltd.Shennan Power Xiwan Energy (Zhongshan) Co.Shennan Power Xiwan Company Refer to

Ltd.Shennan Power Energy Technology (Sichuan) Co.Energy Technology Company Refer to

Ltd.Shennan Power Zhengmai Energy Technology

Shennan Power Zhengmai Energy Company Refer to

(Shenzhen) Co. Ltd.Shennan Power Shangao Smart Energy

Smart Energy Company Refer to

(Shenzhen) Co. Ltd.Xiefu Company Refer to Shenzhen Xiefu Energy Co. Ltd.New Power Company Refer to Shenzhen New Power Industrial Co. Ltd.Shenzhen Yuanzhi Ruixin New Generation

Yuanzhi Ruixin Information Technology Fund Refer to Information Technology Private Equity Investment

Fund Partnership (Limited Partnership)

Except as otherwise specifically described the

RMB RMB 10000 and RMB 100 million Refer to monetary unit is RMB RMB 10000 and RMB

1000000000

Reporting Period Refer to January 1 2026 to June 30 2026

52026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section II Company Profile and Financial Indicators

I. Company Profile

Shennan Power A

Stock Name Stock Code 000037、200037

Shennan Power B

Stock exchange for stock

Shenzhen Stock Exchange

listing

Company name (in

Shenzhen Nanshan Power Co. Ltd.Chinese)

Short name of the

Company in Chinese (if 深南电

any)

Company name (in

Shenzhen Nanshan Power Co. Ltd.English if any)

Legal Representative Kong Guoliang

II. Contact Information

Secretary of the Board of Directors Securities Representative

Name Zou Yi Lu Yindi

16th and 17th Floors Hantang 16th and 17th Floors Hantang

Address Building OCT Nanshan District Building OCT Nanshan District

Shenzhen City Guangdong Province Shenzhen City Guangdong Province

Tel. 0755-26003611 0755-26003611

Fax 0755-26003684 0755-26003684

E-mail investor@nspower.com.cn investor@nspower.com.cn

III. Other Information

1. Contact Information of the Company

Whether the registered address office address and postal code website and email of the Company changed during the

Reporting Period

□ Applicable □ Not applicable

The registered address office address and postal code website and email of the Company remained unchanged during

the Reporting Period. For details please refer to the 2025 Annual Report.

2. Information Disclosure and Place where this Report is Lodged

Whether the media for information disclosure and the place where this Report is lodged changed during the Reporting

Period

□ Applicable □ Not applicable

The name and website of the stock exchange and media where the Company discloses its semi-annual report and the

place where the semi-annual report is lodged remained unchanged during the Reporting Period. For details please refer

to the 2025 Annual Report.

62026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

3. Other Related Information

Whether other related information changed during the Reporting Period

□ Applicable □ Not applicable

IV. Key Accounting Information and Financial Indicators

Whether the Company needs to retrospectively adjust or restate the accounting data of previous years

□ Yes □ No

Year-on-year change for

The Reporting Period Same period last year

the Reporting Period

Operating revenue (RMB) 201808302.33 166389954.25 21.29%

Net profit attributable to the

listed company’s 19833302.46 -21739509.64 191.23%

shareholders (RMB)

Net profit attributable to the

listed company’s

shareholders before non- 8654845.29 -28327017.35 130.55%

recurring gains and losses

(RMB)

Net cash generated

from/used in operating -113682778.37 -62253765.51 -82.61%

activities (RMB)

Basic earnings per share

0.0329-0.0361191.14%

(RMB/share)

Diluted earnings per share

0.0329-0.0361191.14%

(RMB/share)

Weighted average return Increased by 2.65

1.18%-1.47%

on equity percentage points

Changes from the end of

End of the Reporting the previous year to the

End of the previous year

Period end of the Reporting

Period

Total assets (RMB) 2298027445.24 2313750813.45 -0.68%

Net assets attributable to

the listed company’s 1678234206.99 1677559728.27 0.04%

shareholders (RMB)

V. Differences in Accounting Data under Domestic and Foreign Accounting Standards

1. Differences in net profit and net assets in financial reports disclosed in accordance with international

accounting standards and Chinese accounting standards

□ Applicable □ Not applicable

During the Reporting Period there were no differences in net profit and net assets in the financial reports disclosed by

the Company in accordance with both international accounting standards and Chinese accounting standards.

72026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

2. Differences in net profit and net assets in financial reports disclosed in accordance with foreign accounting

standards and Chinese accounting standards

□ Applicable □ Not applicable

During the Reporting Period there were no differences in net profit and net assets in the financial reports disclosed by

the Company in accordance with both overseas accounting standards and Chinese accounting standards.VI. Items and Amounts of Non-recurring Gains/Losses

□Applicable □Not applicable

Unit: RMB

Item Amount Description

Profit or losses on disposal of non-

This was mainly caused by the asset

current assets (including the portion

365503.54 disposal gains/losses from the

offset for provisions for asset

disposal of non-current assets.impairment)

Government grants included in profit

and loss of the current period (except

for government subsidies that are

This was mainly because the

closely related to the Company's

Company received government

normal business operation comply 17099.11

grants related to income during the

with national policies and are enjoyed

Reporting Period.in accordance with defined criteria

and have a continuing impact on the

Company's profit or loss)

Gains/losses on fair-value changes in This was mainly attributed to the

financial assets and liabilities held by investment income obtained from

a non-financial enterprise as well as holding structured deposits in

on disposal of financial assets and commercial banks and monetary

10814446.43

liabilities (exclusive of the effective funds as well as the income from

portion of hedges that arise in the changes in fair value generated

Company’s ordinary course of during the holding period of financial

business) assets held for trading.This was mainly caused by the

Non-operating revenue and

263644.06 recovery of historical legacy funds

expenses other than the above

during the current period.Less: Income tax effects 51938.99

Minority equity effects (after tax) 230296.98

Total 11178457.17

Particulars about other gains/losses that meet the definition of non-recurring gains/losses:

□ Applicable □ Not applicable

The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.Explanation on the definition of non-recurring profit and loss items as recurrent profit and loss items in the Explanatory

Announcement No. 1 on Information Disclosure of Companies Publicly Issuing Securities - Non-recurring Gains/Losses

□ Applicable □ Not applicable

The Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive

Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or

Loss" as recurring profit or loss items.

82026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section III Discussion and Analysis of the Management

I. Principal Activities of the Company during the Reporting Period

In the first half of 2026 the cumulative total electricity consumption of the society totaled 5.0999 trillion kWh a year-

on-year increase of 5.3%. In terms of electricity consumption by industry the electricity consumption of the primary industry

was 71.1 billion kWh a year-on-year increase of 4.9%. The electricity consumption of the secondary industry was 3.3057

trillion kWh a year-on-year increase of 5.1% among which the industrial electricity consumption was 3.2760 trillion kWh

a year-on-year increase of 5.3% and the electricity consumption of the high-tech and equipment manufacturing industry

was 600.8 billion kWh a year-on-year increase of 9.8%. The electricity consumption of the tertiary industry was 991.6

billion kWh a year-on-year increase of 8.0% among which the electricity consumption of the charging and swapping

service industry and the Internet data service industry was 81.0 billion kWh and 49.4 billion kWh respectively with growth

rates of 56.9% and 44.0% respectively. The electricity consumption of urban and rural residents was 731.5 billion kWh a

year-on-year increase of 3.1%.The main businesses of the Company cover electricity generation and sales as well as comprehensive energy

services. By the end of the Reporting Period the Nanshan Thermal Power Station had 3 sets of 9E gas-steam combined

cycle power generation units with a total installed capacity of 540MW. The power station is located in the power load center

of Shenzhen and serves as a peak-shaving power source in the region. During the Reporting Period Nanshan Thermal

Power Station actively fulfilled its responsibility for stable power supply strictly maintained safety standards scientifically

coordinated gas and electricity matching dynamically adjusted electricity marketing and fuel procurement strategies

completed an on-grid power generation of 119 million kWh purchased a total of 83 million kWh as an agent and achieved

a medium and long-term contract power of 176 million kWh. Its subsidiary Shennandian Environmental Protection

Company fully expanded its electricity sales business and acted as an agent for a total of 27.19 million kWh for users. The

cumulative charging and discharging capacities of the Zhongshan Independent Energy Storage Station (Phase I) project

of Shennandian Xiwan Company were 50.67 million kWh and 45.39 million kWh respectively and the cumulative mileage

of participation in frequency regulation was 2215830MW.In the first half of 2026 focusing on the annual targets the Company systematically promoted the market expansion

project construction and industrial landscape of its affiliates actively expanded comprehensive energy service businesses

such as new energy and energy storage continuously improved the integrated industrial chain of "investment construction

operation management and maintenance" and steadily enhanced the business synergy and value creation ability of the

entire comprehensive energy service chain. In terms of project construction and operation Shennandian Xiwan Company

continued to optimize the operation efficiency of the Zhongshan Independent Energy Storage Station (Phase I) project

and accumulated full-cycle management experience in energy storage projects while efficiently promoting the construction

preparation of the Zhongshan Independent Energy Storage Station (Phases II and III) project continuously expanding the

Company's energy storage industry layout. In terms of engineering and technical services Shennandian Engineering

Company gave full play to its technological and resource accumulation advantages in the field of gas turbine power plant

engineering and orderly implemented the relevant work of the operation and maintenance service project for the 2×450MW

gas combined cycle power station in Koh Kong Province Cambodia. In terms of industrial investment layout the Company

jointly established Shennandian Shangao Smart Energy (Shenzhen) Co. Ltd. with Shandong Hi-Speed (Shenzhen)

Investment Co. Ltd. as the core cooperation platform for both parties to conduct investment operation and management

in the fields of new energy and energy storage industries. Through the establishment of a specialized industrial cooperation

platform industrial synergy and linkage were deepened project development channels were broadened and the industrial

92026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

chain layout was improved empowering and advancing the momentum for the subsequent development of new energy

and energy storage businesses.During the Reporting Period the Company realized an operating income of RMB 201808300 a net profit attributable

to shareholders of the listed company of RMB 19833300 and earnings per share of RMB 0.0329.The Company shall comply with the disclosure requirements for the Power Supply Industry as set out in the Guidelines

for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.II. Core Competitiveness Analysis

In recent years affected by the macroeconomic conditions and common problems in the gas turbine electricity

generation industry the main business of the Company - electricity generation has been in face of difficulties and

challenges. However the basic core competitiveness formed through more than 30 years of operation and development

the strong support of the Company's major shareholders and the operation and management innovation adopted by the

Company's Board of Directors and Management have laid a solid foundation for the Company's continuous operation and

transformation and development. During the Reporting Period the Company adhered to a prudent development philosophy

firmed up its strategic belief flexibly adjusted its operating strategies carefully optimized resource allocation successfully

overcame a series of development difficulties and further consolidated and enhanced the Company's core competitiveness.

1. Hard-working and innovative management culture. The Company has a group of operation and management

talents with innovative awareness and fighting spirit. By deepening human resource reform and building a performance-

oriented performance appraisal and incentive mechanism the Company advocates and creates a management culture of

unity struggle innovation and progress. Meanwhile the Company vigorously promotes the construction of institutional

system management system and compliance system adheres to standard management in accordance with laws and

regulations scientific rigor and high efficiency and orderliness which lays a good foundation to deeply explore internal

potential and actively seek external opportunities through process-oriented refined and standardized management

orientation.

2. Professional and enterprising technical talents. The Company has been deeply engaged in the gas electricity

generation industry for over 30 years. Relying on its industry influence it has gathered and cultivated a group of

professional technical experts and key talents and holds rich practical experience in the construction and operation

management of gas-fired power plants. In order to adapt to the market-oriented reform of the power market in Guangdong

Province the Company has set up a professional power marketing team continuously optimized trading strategies and

marketing models and has mature market-oriented operation capabilities of the electricity market. In addition thanks to its

strong technical strength Shennan Power Engineering Company provides comprehensive professional services such as

technical consultation commissioning and operation guarantee for dozens of gas-fired power stations at home and abroad;

the Company has successively undertaken the technical personnel training business of dozens of domestic and overseas

power plants. Backed up by high-quality training and a professional teaching team the Company built a well-known

professional talent training base in the domestic gas turbine industry and established a good reputation and a professional

brand image in the industry.

3. Cutting-edge professionalism and techniques. In recent years the Company driven by the philosophy of

innovation-driven development has been steadily promoting technological innovation. Based on the self-owned

independent invention patents utility model patents and software copyrights the Company jointly drafted and prepared

one national standard offering strong support for the Company's high-quality development. During the Reporting Period

the Company declared a total of two invention patents six utility model patents and one software copyright to the China

National Intellectual Property Administration and five utility model patents and one software copyright were authorized.

102026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

The total number of authorized patents of the Company reached 51 (including 5 invention patents) and 14 software

copyrights which greatly enhanced the Company's brand image and industry competitiveness.

4. Abundant experience in industrial exploration. The Company gives full play to its own advantages and exerts every

effort to develop comprehensive energy service business while fostering experience in the construction and operation of

the new energy and energy storage industries. Based on the construction and operation of projects such as energy storage

black start photovoltaics and MTC industrial and commercial energy storage the construction and commissioning of

Zhongshan independent energy storage power station and the implementation of integrated solar-storage-charging

projects combined with the continuous expansion of off-site and overseas power station operation and maintenance

businesses in Qinghai Hainan Cambodia etc. the Company has accumulated rich practical experience in the

construction commissioning and operation and maintenance of new energy and energy storage projects and cultivated

a group of professional technical talents. Superimposing the talent reserves and technical advantages of the traditional

power industry the Company has reserved sufficient technical and talent resources for the Company to deeply engage in

the comprehensive energy service field laying a solid foundation.

5. Leading environmental protection effects. The Company's generator sets are all gas generator sets with natural

gas as fuel. The CO2 emission in the flue gas is about 42% of that of coal-fired power plants providing strong support for

the national "dual carbon" goals. The nitrogen oxide emissions of each of the Company's units are all within 15mg/m3

reaching the world's most advanced level.III. Main Business Analysis

Overview

Please refer to the relevant content in "I. Main Businesses of the Company during the Reporting Period".Year-on-year changes in key financial data

Unit: RMB

YoY

The Reporting

Same period last year change Reason for changes

Period

(%)

This was mainly due to the Company's

continued promotion of the strategic

layout of comprehensive energy

services and the independent energy

Operating storage project of Shennan Energy

201808302.33166389954.2521.29%

revenue Xiwan Company was put into

commercial operation and became

profitable boosting the increase of

income from the comprehensive energy

service segment.Cost of sales 137515768.78 162096776.61 -15.16%

This was mainly owing to the expansion

of comprehensive energy service

Selling

2344744.33 1048176.93 123.70% business in the current period resulting

expense

in a year-on-year increase in selling

expenses.Administrative

33344820.8434186284.20-2.46%

expense

This was mainly because the

independent energy storage project of

Finance costs 5232946.26 1412373.17 270.51%

Shennan Energy Xiwan Company was

completed and put into operation. The

112026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

interest of specific fixed asset loans

related to the project was recognized as

an expense instead of being capitalized

resulting in a year-on-year increase in

interest expenses. Affected by the

declining market interest rates interest

income decreased.This was mainly because the

independent energy storage project of

Income tax Shennan Energy Xiwan Company

5148197.5153667.869492.70%

expense became profitable resulting in an

increase in corresponding income tax

expenses.R&D

7700122.148552435.26-9.97%

Investment

This was mainly resulted from the rapid

growth of the comprehensive energy

Net cash service business. The performance

generated guarantee margin paid in the current

from/used in -113682778.37 -62253765.51 -82.61% period was approximately RMB 120

operating million resulting in a year-on-year

activities increase in operating cash outflows and

a year-on-year decrease in net cash

flows from operating activities.First the existing monetary funds

deposited in commercial banks as

structured deposits decreased in the

current period and the cash outflows

from investing activities decreased

accordingly; second the equipment

Net cash

procurement and engineering payment

generated

for the construction of Phase I of the

from/used in 128083077.50 -222110234.68 157.67%

Company's Zhongshan independent

investing

energy storage project occurred

activities

intensively in the same period of last

year. The cash outflows of the project in

the current period decreased year-on-

year affecting the year-on-year

increase in net cash flows from

investing activities.This was mainly due to the Company's

Net cash optimization of its asset-liability

generated structure reduction of its financing

from/used in -32885993.28 -82535939.48 60.16% scale and decrease of cash paid for

financing debt repayment year-on-year resulting

activities in a year-on-year increase in net cash

flows from financing activities.This was mainly resulted from the

increase of the net cash flows from

Net increase in

investing activities year-on-year which

cash and cash -18608519.10 -366926252.82 94.93%

caused the net increase in cash and

equivalents

cash equivalents to increase

accordingly.Material changes in the composition or sources of the Company's profits during the Reporting Period

□ Applicable □ Not applicable

No material change was found in the composition or sources of the Company's profits during the Reporting Period.

122026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Composition of operating income

Unit: RMB

The Reporting Period Same period last year

As % of As % of YoY change (%)

Amount operating Amount operating

revenue revenue

Total operating

201808302.33100%166389954.25100%21.29%

revenue

By industry

Electricity 200425269.14 99.31% 162292199.47 97.54% 23.50%

Others 1383033.19 0.69% 4097754.78 2.46% -66.25%

Total 201808302.33 100.00% 166389954.25 100.00% 21.29%

By product

Electricity

generation and 140852547.67 69.79% 145150536.76 87.24% -2.96%

sales

Comprehensive

68683447.9134.03%27098360.0816.29%153.46%

energy services

Others 1383033.19 0.69% 4333656.63 2.60% -68.09%

Offset upon

-9110726.44-4.51%-10192599.22-6.13%10.61%

consolidation

Total 201808302.33 100.00% 166389954.25 100.00% 21.29%

By region (based on customer location)

Domestic 199486835.48 98.85% 166389954.25 100.00% 19.89%

Overseas 2321466.85 1.15% 100.00%

Total 201808302.33 100.00% 166389954.25 100.00% 21.29%

Industries products or regions that account for over 10% of the Company's operating income or operating profit

□Applicable □Not applicable

Unit: RMB

Gross YoY change YoY change

Operating YoY change in

Cost of sales profit in operating in gross

revenue cost of sales

margin revenue profit margin

By industry

Electricity 200425269.14 137223915.86 31.53% 23.50% -14.15% 30.02%

Others 1383033.19 291852.92 78.90% -66.25% -87.06% 33.93%

Total 201808302.33 137515768.78 31.86% 21.29% -15.16% 29.28%

By product

Electricity

generation and 140852547.67 111003693.03 21.19% -2.96% -24.60% 22.62%

sales

Comprehensive

68683447.9135292417.1648.62%153.46%66.81%26.70%

energy services

Others 1383033.19 291852.92 78.90% -68.09% -87.60% 33.21%

Offset upon

-9110726.44-9072194.3310.61%-5.03%

consolidation

Total 201808302.33 137515768.78 31.86% 21.29% -15.16% 29.28%

By region (based on customer location)

Domestic 199486835.48 136700079.55 31.47% 19.89% -15.67% 28.89%

Overseas 2321466.85 815689.23 64.86% 100.00% 100.00% 64.86%

Total 201808302.33 137515768.78 31.86% 21.29% -15.16% 29.28%

The Company's main business data for the last period adjusted according to the data at the end of the Reporting Period

132026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

after the statistics of the Company's principal business data was adjusted during the Reporting Period

□ Applicable □ Not applicable

IV. Analysis of Non-Core Businesses

□Applicable □Not applicable

Unit: RMB

Amount As % of total profit Reason Sustainable or not

This was mainly caused by

the investment income

obtained from holding The investment

transferable certificates of income recognized

deposits structured by the Company

Investment income 17140509.64 51.08%

deposits and monetary under the equity

funds as well as the method is

investment income sustainable.recognized by the Company

by the equity method.This was mainly resulted

from the increase in income

from changes in fair value

Gains/losses on

643644.40 1.92% generated from financial No

changes in fair value assets held for trading by

the Company during the

current period.This was mainly due to the

expected credit losses

based on the aging portfolio

according to the actual

Credit impairment

-2159157.71 -6.43% collection of accounts No

loss receivable and

corresponding bad debt

provisions that have been

made.This was mainly caused by

the asset disposal

Gains from disposal

365503.54 1.09% gains/losses from the No

of assets disposal of non-current

assets.This was mainly caused by

Non-operating the recovery of historical

263914.26 0.79% No

revenue legacy funds during the

current period.Non-operating

270.20 0.00% No

expense

V. Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

End of the Reporting Period End of the previous year

Change in

As % of As % of

Reason for any

percentage

Amount total Amount total significant change (%)

assets assets

This was mainly because

Monetary the Company continued

246996378.2810.75%141590339.046.12%4.63%

assets to expand its

comprehensive energy

142026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

service business and the

deposits for performance

guarantees increased in

the current period.This was mainly because

the stock monetary funds

deposited in commercial

banks as structured

Trading deposits gradually

213244098.049.28%341000000.0014.74%-5.46%

financial assets matured and were

redeemed during the

current period resulting

in a decrease in financial

assets held for trading.Notes

400000.000.02%0.000.00%0.02%

receivable

Accounts

109320305.124.76%109831397.294.75%0.01%

receivable

Prepayments 27031243.97 1.18% 11052982.80 0.48% 0.70%

Other

362387516.8415.77%361729062.9315.63%0.14%

receivables

Inventories 38810872.76 1.69% 37972909.48 1.64% 0.05%

This was mainly because

the settlement of

progress payments for

comprehensive energy

Contract assets 7209277.31 0.31% 21441671.72 0.93% -0.62% service projects was

completed in the current

period resulting in a

corresponding decrease

in contract assets.This was mainly due to

the increase in

transferable certificates

Other current of deposit deposited by

302711134.6813.17%266262387.1211.51%1.66%

assets the Company in the

current period which led

to an increase in other

current assets.This was mainly because

the Company exited from

some of its external

equity investment

Long-term

projects in the current

equity 166565065.15 7.25% 196827515.83 8.51% -1.26%

period resulting in a

investments

corresponding decrease

in the carrying amount of

long-term equity

investments.Other equity

instrument 234179057.20 10.19% 234179057.20 10.12% 0.07%

investments

Investment

1248174.700.05%1331453.080.06%-0.01%

properties

Fixed assets 530531149.52 23.09% 544902436.89 23.55% -0.46%

Construction in

3283591.430.14%3113338.750.13%0.01%

progress

Right-of-use

36824287.821.60%28785337.191.24%0.36%

assets

152026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Intangible

1860921.060.08%2041770.360.09%-0.01%

assets

Long-term

deferred 5673825.94 0.25% 6567159.05 0.28% -0.03%

expenses

Deferred tax

4263047.690.19%4264858.880.18%0.01%

assets

Other non-

5487497.730.24%857135.840.04%0.20%

current assets

Short-term

172102811.107.49%172094604.457.44%0.05%

borrowings

Accounts

27353787.901.19%42661594.091.84%-0.65%

payable

Contract

5185301.610.23%130796.460.01%0.22%

liabilities

This was mainly due to

the payment of the

previous year's annual

Employee performance-based

benefits 5024073.81 0.22% 24759553.78 1.07% -0.85% remuneration in the

payable current period resulting

in a decrease in

employee benefits

payable.Taxes payable 11348667.34 0.49% 8531798.19 0.37% 0.12%

Other payables 27224007.81 1.18% 33323386.05 1.44% -0.26%

Non-current

liabilities

10135541.280.44%7340810.740.32%0.12%

maturing within

one year

Other current

896949.440.04%2425298.890.10%-0.06%

liabilities

Long-term

165631166.727.21%168421492.317.28%-0.07%

borrowings

Lease liabilities 32461101.64 1.41% 24668020.16 1.07% 0.34%

Estimated

364945.000.02%364945.000.02%0.00%

liabilities

Deferred

38740507.311.69%41913447.411.81%-0.12%

income

Deferred tax

14977656.190.65%9846034.150.43%0.22%

liabilities

2. Main overseas assets

□ Applicable □ Not applicable

3. Assets and Liabilities at Fair Value

□Applicable □Not applicable

Unit: RMB

Item Beginning Gain/loss Cumula Impair Purchased in Sold in the Other Ending

162026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

amount on fair- tive fair- ment the current current period chang amount

value value allowa period es

changes in change nce for

the s the

Reporting charged current

Period to period

equity

Financial

assets

1. Trading

financial

assets

34100000919768587.1048168134.2132440

(excluding 643644.40

0.00912798.04

derivative

financial

assets)

2.

Derivative

financial

assets

3.

Investmen

ts in other

debt

obligation

s

4.

Investmen

ts in other 23417905 2341790

equity 7.20 57.20

instrument

s

5. Other

non-

current

financial

assets

Subtotal

of 57517905 919768587. 1048168134. 4474231

643644.40

financial 7.20 91 27 55.24

assets

Investmen

t

properties

Productive

biological

assets

Others

Total of 57517905 919768587. 1048168134. 4474231

643644.40

the above 7.20 91 27 55.24

Financial

liabilities

Other changes

172026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Not applicable

Whether there is any significant change to the measurement attributes of the major assets in the Reporting Period

□ Yes □ No

4. Restricted Asset Rights at the End of the Reporting Period

Item Closing balance (RMB) Opening balance (RMB)

Guarantee deposits etc. 127729947.70 8334730.76

Co-managed account funds 4619341.40

Total 132349289.10 8334730.76

VI. Investments Analysis

1. Overview

□Applicable □Not applicable

Investment amount in the Reporting Investment amount of the same

Change (%)

Period (RMB) period of last year (RMB)

0.001950000.00-100%

2. Major equity investments made in the Reporting Period

□Applicable □Not applicable

Unit: RMB

Profit

or

Prog

loss

ress Whet

Shar from Discl Discl

Inve Inve as of Esti her

Nam ehol Sour Inve inves osur osur

Main stme stme Prod the mate invol

e of ding ce of Part stme tmen e e

busi nt nt uct bala d ved

inves perc fund ner nt t in date inde

ness meth amo type nce retur in

tee enta s term the (if x (if

od unt shee ns litigat

ge curre any) any)

t ion

nt

date

perio

d

Shen Indu

nan strial

Pow and

er Shen com

Zhen zhen Limit merc Anno

Newl

gmai Ener Zhen ed ial unce

y 612 Self- July

Ener gy 51.0 gmai Long liabili regis ment

esta 000 fund No 02

gy stora 0% Ener -term ty tratio No.:

blish 0.00 ed 2026

Tech ge gy com n 2026

ed

nolo Co. pany com -041

gy Ltd. plete

(She d on

nzhe May

n) 22

182026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Co. 2026

Ltd.Shen Indu

nan Shan strial

Pow dong and

er Hi- com

New Anno

Shan Spee merc

ener Limit July unce

gao Newl d ial

gy 102 ed 2 ment

Sma y Self- (She regis

and 000 51.0 Long liabili 2026 No.:

rt esta fund nzhe tratio No

ener 000. 0% -term ty July 2026

Ener blish ed n) n

gy 00 com 24 -041

gy ed Inve com

stora pany 2026 2026

(She stme plete

ge -044

nzhe nt d on

n) Co. July

Co. Ltd. 21

Ltd. 2026

108

120

Total -- -- -- -- -- -- -- -- -- -- --

000.

00

3. Major non-equity investments ongoing in the Reporting Period

□Applicable □Not applicable

Unit: RMB

Reaso

Accu ns for

Cumul

mulati failure

ative

ve to

Amou realiz

actual achiev

nt ed

Fixed input e the Disclo Disclo

Invest Indust invest Projec Estim return

assets amou Sourc plann sure sure

Projec ment ry ed in t ated s by

invest nt by e of ed date index

t metho involv the progre return the

ment the funds progre (if (if

d ed Repor ss s end of

or not end of ss any) any)

ting the

the and

Period Repor

Repor estim

ting

ting ated

Period

Period return

s

Zhong

shan

Cuihe

ng

New Indep

Self?fu Annou

Area enden

nded ncem

300M t 1746 2213 Not April

Self- and ent

W/600 Yes energ 311.9 591.4 0.56% 0.00 applic 7

build bank?f No.:

MWh y 2 3 able 2026

inanc 2026-

indep storag

ed 016

enden e

t

energ

y

storag

192026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

e

power

statio

n

(Phas

es II

and

III)

17462213

Total -- -- -- 311.9 591.4 -- -- -- -- --

23

4. Financial Investments

(1) Securities Investments

□ Applicable □ Not applicable

The Company had no securities investment during the reporting period.

(2) Investments in Derivatives

□ Applicable □ Not applicable

The Company had no investments in derivatives during the Reporting Period.

5. Use of raised funds

□ Applicable □ Not applicable

The Company had no use of funds raised during the reporting period.VII. Sale of Major Assets and Equity Interests

1. Sale of major assets

□ Applicable □ Not applicable

The Company did not sell any major assets during the Reporting Period.

2. Sale of major equity

□ Applicable □ Not applicable

VIII. Major Controlling and Joint-stock Companies

□Applicable □Not applicable

Major subsidiaries and joint-stock companies with an over 10% effect on the Company’s net profit

Unit: RMB10000

Company Company Main Registered Total Net Operating Operating Net

name type business capital assets assets revenue profit profit

Shenzhen Technology

New Power development

Subsidiary 11385 36836.61 35883.80 0.00 733.43 733.43

Industrial of waste

Co. Ltd. heat

202026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

utilization

(excluding

restricted

projects);

waste heat

power

generation;

gas turbine

power

generation;

investment

activities with

self-owned

funds.Engineering

technical

consulting

services for

the

construction

of gas-steam

combined

cycle power

plants

(stations)

and

maintenance

and overhaul

of operating

equipment

for gas-

steam

combined

cycle power

Shenzhen

plants

Shennan

(stations);

Power Gas

engineering

Turbine Subsidiary 15000 10990.80 6517.59 2464.94 -359.99 -361.15

management

Engineering

services

Technology

engineering

Co. Ltd.technical

services

power

generation

technical

services

solar power

generation

technical

services

energy

storage

technical

services

electrical

equipment

repair

general

equipment

repair etc.Gas turbine

Shennan

power

Power

generation

(Zhongshan)

Subsidiary waste heat 74680 67798.77 -7800.89 3891.02 1703.56 1190.22

Electric

power

Power Co.generation

Ltd.power supply

212026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

and heat

supply

(excluding

heating pipe

network)

and leasing

of terminals

oil depots

(excluding

refined oil

hazardous

chemicals

and

flammable

and

explosive

items) and

power

equipment

and facilities;

land use

right leasing;

non-

residential

real estate

leasing.Note: The net profit of the subsidiary Shennan Power Zhongshan Company is mainly derived from the business

operations of the independent energy storage project of its subsidiary Shennan Power Xiwan Company.Subsidiaries obtained or disposed of in the Reporting Period

□Applicable □Not applicable

Method of

obtaining

and

disposing of

Company name Effects on overall operation and business performance

subsidiaries

during the

Reporting

Period

Under the premise of ensuring the Company's daily operations

and capital safety using self-owned funds to establish a

controlling subsidiary will not have an impact on the Company's

Shennan Power Zhengmai Energy Newly daily capital turnover and normal development of production and

Technology (Shenzhen) Co. Ltd. established operation. The company completed its industrial and

commercial registration on May 22 2026 and has been stated

as the scope of the Company's consolidated financial

statements since that date.Shennan Power Shangao Smart Energy (Shenzhen) Co. Ltd.will serve as the core cooperation platform for the Company and

Shandong Hi-Speed (Shenzhen) Investment Co. Ltd. to carry

out investment operation and management in the new energy

and energy storage industry fields. This will help enhance the

Company's market competitiveness and promote its

Shennan Power Shangao Smart Newly

transformational development. Under the premise of ensuring

Energy (Shenzhen) Co. Ltd. established

the Company's daily operations and capital safety using self-

owned funds to establish a controlling subsidiary will not have

an impact on the Company's daily capital turnover and normal

development of production and operation. The company

completed its industrial and commercial registration on July 21

2026 and has been stated as the scope of the Company's

222026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

consolidated financial statements since that date.About the major controlling and joint-stock companies

Not applicable

IX. Structured Entities Controlled by the Company

□ Applicable □ Not applicable

X. Risks and Countermeasures

1. Main businesses: Since 2026 affected by multiple factors the power plants under the Company been facing

tremendous pressure from high fuel costs and outdated unit energy efficiency. The 9E units became profitable under the

competitive pressure from more efficient and lower-cost units. The Company will continue to strengthen the operation and

management of existing assets actively respond to the requirements and changes of the power market and make every

effort to improve the profitability and overall operating efficiency of main businesses. With Zhongshan Independent Energy

Storage Project as a starting point the Company will coordinately promote comprehensive energy services and traditional

power generation businesses actively explore diversified business models and create better conditions for the sustainable

operation and healthy development of the Company.

2. Safety management: With the increasing diversity the Company's businesses safety risks are intertwined and

superimposed. The Company will continue to strengthen the overall planning and coordination of safety management

combine the risk characteristics and work requirements of each business segment focus on prominent problems and

difficulties efficiently analyze the root causes and formulate practical solutions to ensure that safety management

conforms to business development needs and effectively prevents various safety risks. In response to the aging of power

generation equipment the Company will scientifically prepare maintenance and technological transformation plans and

apply supporting funds and technical resources to continuously improve the maintenance and governance level of

equipment. Facing new risks brought by new equipment and new technologies in the process of transformation the

Company will strengthen safety technical training improve control measures reinforce the accountability of production

safety and ensure the safe and stable operation of production facilities. Meanwhile the Company will further strengthen

training and emergency capability building to ensure that the "five in-places" of production safety responsibilities

management input training and emergency rescue are achieved avoid any safety accidents due to human factors within

the Company's system and continue to play the supporting role of a peak-shaving power source.

3. Fuel procurement: In 2026 the natural gas procurement price was mainly affected by the impacts of fluctuations in

the international fuel market and the pricing strategies of existing suppliers. In the first half of 2026 affected by geopolitical

conflicts in the Middle East the maritime passage through the Strait of Hormuz was blocked and the natural gas

procurement presented a severe "tight volume and high price". In addition the Company's relatively single gas source

structure has adversely affected the stability of gas supply the flexibility of gas volume coordination and the economy of

gas prices. With the improvement of trading rules in the electricity spot market the increase in capacity pricing and the

successive commissioning of power sources in areas surrounding Shenzhen higher requirements have been placed on

the stability and flexibility of natural gas supply for electricity production. In face of the aforesaid conditions the Company

will continue to optimize upstream cooperation relationships coordinate all parties concerned to ensure the gas supply

given the single gas source and try its best to reduce natural gas procurement costs while ensuring the gas demand for

electricity production.

4. Nanshan Thermal Power Station: In March 2026 the Company again learned from the official website of the

Shenzhen Municipal Planning and Natural Resources Bureau about the Notice of the Municipal Planning and Natural

232026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Resources Bureau on Issuing the Shenzhen 2026 Annual Land Preparation Plan (hereinafter referred to as the Land

Preparation Plan). According to the Land Preparation Plan and appendixes thereof the land reserve and related contents

of the Nanshan Thermal Power Station affiliated with the Company are still within the Shenzhen 2026 Annual Land

Preparation Plan with no material change from the contents stated in the land preparation plans disclosed in recent years.The Company will continue to contact relevant authorities to get a clear picture conduct in-depth discussions with legal

counsel keep monitoring and timely report our opinions and demands to relevant government departments and safeguard

the legitimate rights and interests of the listed company and all shareholders.XI. Formulation and Implementation of Market Capitalization Management System and Valuation Enhancement

Plan

Whether the Company has formulated a market capitalization management system

□ Yes □ No

Whether the Company has disclosed its valuation enhancement plan.□ Yes □ No

XII. The implementation of the action plan of "Double improvement of quality and return".Whether the Company has disclosed an announcement on "Quality and Return Dual Enhancement" Action Plan.□ Yes □ No

242026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section IV Corporate Governance Environment and Society

I. Changes of Directors and Senior Executives of the Company

□Applicable □Not applicable

Name Position(s) Type Date Reason

Deputy General

Lin Yongzheng Employment February 2 2026

Manager

Resignation upon

Du Wei Independent Director February 27 2026 Personal reasons

expiration of term

Lin Yongzheng Director Elected February 27 2026

Chen Yongchong Independent Director Elected February 27 2026

Huang Qing Director Former May 13 2026 Job adjustment

Gao Xi Director Elected May 13 2026

II. Profit Distribution and Conversion of Capital Reserve into Share Capital during the Reporting Period

□ Applicable □ Not applicable

The Company plans not to distribute cash dividends issue bonus shares or convert capital reserve into share capital for

half of the year.III. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership Plan (ESOP) or Other

Employee Incentives

□ Applicable □ Not applicable

None.IV. Environmental Information Disclosure

Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose

environmental information by law

□Yes □No

Number of enterprises on the list of enterprises required to

disclose environmental information by law

Search index for the Environmental Information

No. Name of enterprise

Disclosure Report

Legal Disclosure System of Enterprise Environmental

Nanshan Thermal Power Station of Shenzhen Information of Department of Ecology and Environment

1

Nanshan Power Co. Ltd. of Guangdong Province

https://www-app.gdeei.cn/gdeepub/front/dal/report/list

The Company shall comply with the disclosure requirements for the Power Supply Industry as set out in the Guidelines

for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Name of Type Name Numbe Distribu Dischar

Approv Excessi

the of of Way of r of tion of ge Discharge Total

ed total ve

Company major major dischar dischar dischar concent standards dischar

dischar dischar

or polluta pollut ge ge ge ration/i implemented ge

ge ge

Subsidiary nts ants outlets outlets ntensity

252026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Centrali Within Subject to

zed the the

Shenzhen Nitrog

Nitrog emissio Nansha "Shenzhen

Nanshan en ＜15 17.03 686.25

en n from 3 n Blue" None

Power oxide Tons tons

oxides boiler Therma mg/m3 emission

Co. Ltd. s

chimne l Power standard (

ys Station ＜15mg/m3)

Information on environmental accidents of the listed company

None

V. Social Responsibilities

In the first half of 2026 regardless of the challenges in production operation and management the Company bravely

assumed social responsibilities through stabilizing power supply in face of unit aging efficiency decline and high costs to

the best of its ability. In terms of production safety the Company persistently tried its best to ensure safe and stable power

production actively explored the establishment of a production safety management model adapted to transformation

optimized and improved the internal production safety management system and mechanism successfully carried out

various tasks of production safety technical supervision and innovation management and achieved the "five-zero" goal

of production safety. In terms of environmental protection the Company strictly observed national and local environmental

protection laws and regulations consistently adhered to the development concept of clean power generation effectively

implemented all environmental protection work met environmental emission standards and had no environmental pollution

accidents. In terms of care and support the Company thoroughly implemented the decisions and deployments of the

central government on the rural revitalization strategy carried out the designated assistance tasks of stationing in towns

and villages for rural revitalization and dispatched a stationed assistant for such purpose. Meanwhile the Company

actively played a role in consumption assistance. By purchasing poverty-alleviation agricultural products and other means

the cumulative amount of consumption assistance reached over RMB 80000 during the Reporting Period.

262026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section V Important Matters

I. Commitments of the Company’s de facto controller shareholders related parties and acquirers as well as the

Company itself and other entities fulfilled in the reporting period or ongoing as of the end of the Reporting

Period

□ Applicable □ Not applicable

None.II. Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related Parties for Non-

Operating Purposes

□ Applicable □ Not applicable

None.III. Irregularities in the Provision of Guarantees

□ Applicable □ Not applicable

No such cases in the Reporting Period.IV. Engagement and Disengagement of Independent Auditors

Whether the semi-annual financial report has been audited

□ Yes □ No

The semi-annual financial report was not audited.V. Explanations by the Board of Directors Regarding the "Modified Audit Report" Issued by the Independent

Auditor for the Reporting Period

□ Applicable □ Not applicable

VI. Explanations by the Board of Directors Regarding the "Modified Audit Report" Issued for the Previous Year

□ Applicable □ Not applicable

VII. Insolvency and Reorganization

□ Applicable □ Not applicable

No such cases in the Reporting Period.VIII. Litigation

Major litigation and arbitration matters

□ Applicable □ Not applicable

272026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

The Company had no major litigation or arbitration matters during the Reporting Period.Other litigation matters

□Applicable □Not applicable

Amount Whether an

General involved estimated Decisions Execution of Disclosure Disclosure

Progress

information (RMB10000 liability is and effects decisions date index

) recognized

Summary of

other

litigations

Standard

not meeting Recognized Filing

No material Partially Not for special

the 1194.92 for certain hearing or

impact executed applicable disclosure

disclosure litigation execution

not reached

standards

for major

litigations

IX. Punishments and Rectifications

□ Applicable □ Not applicable

None.X. Credit Quality of the Company and its Controlling Shareholder and De Facto Controller

□Applicable □Not applicable

During the Reporting Period neither the Company nor its largest shareholder failed to fulfill effective court judgments

or failed to repay large amounts of debts due indicating good credit quality. During the Reporting Period the Company

had no controlling shareholder or de facto controller.XI. Major Related-Party Transactions

1. Related-Party transactions on daily operation

□Applicable □Not applicable

Obtai

Amou As %

nable

Type Conte nt of of Appro

Rela mark

of nt of relate total ved Over

tions et Disc

relate relate Pricin d- value trans the Meth

Relat hip Trans price Disclo losu

d- d- g party of all action appro od of

ed with action for sure re

party party princi transa same line ved settle

party the price same date inde

trans trans ple ction -type (RMB line or ment

Com -type x

action action (RMB trans 1000 not

pany trans

s s 1000 action 0)

action

0) s

s

Provi Energ Ann

Shen Rela

de y Mont oun

zhen ted Mark Not April

servic mana Fair 0.33 hly cem

MTC legal et 67.09 170 No applic 15

es to geme value % settle ent

Co. pers price able 2026

relate nt ment No.:

Ltd. on

d servic 202

282026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

partie es 6-

s 026

Total -- -- 67.09 -- 170 -- -- -- -- --

Large-amount sales return in

None

detail

Given the actual situation in

the Reporting Period (if any)

The daily related-party transactions between the Company and the aforementioned

where an estimate had been

related parties conform to the actual needs of the Company's production operation

made for the total value of

and business development and the actual transaction amounts are within the

continuing related-party

approved quota.transactions by type to occur in

the Reporting Period

Reason for any significant

difference between the

transaction price and the Not applicable

market reference price (if

applicable)

2. Related-Party transactions regarding purchase or sales of assets or equity interests

□ Applicable □ Not applicable

During the reporting period the Company had no related party transactions arising from the acquisition or sale of assets

or equity.

3. Related-party transactions regarding joint investments in third parties

□ Applicable □ Not applicable

No such cases in the Reporting Period.

4. Credits and liabilities with related parties

□ Applicable □ Not applicable

During the reporting period the Company had no related debt transactions.

5. Transactions with related finance companies

□ Applicable □ Not applicable

The Company did not make deposits in receive loans or credit from and was not involved in any other finance business

with any related finance company or any other related parties.

6. Transactions with related parties by finance companies controlled by the Company

□ Applicable □ Not applicable

The finance company controlled by the Company did not make any deposits receive loans or credit from and was not

involved in any other finance business with any related parties.

7. Other major related-party transactions

□ Applicable □ Not applicable

The Company had no other major related party transactions during the reporting period.

292026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

XII. Major Contracts and Execution thereof

1. Entrustment contracting and leases

(1) Entrustment

□ Applicable □ Not applicable

None.

(2) Contracting

□ Applicable □ Not applicable

None.

(3) Leases

□ Applicable □ Not applicable

During the reporting period the Company had no leases.

2. Major guarantee

□Applicable □Not applicable

Unit: RMB10000

Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)

Disclos

ure date Guaran

Counte

of the Actual Actual tee for

Line of Type of Collater r Term of

announ occurre guarant Fulfilled a

Obligor guarant guarant al (if guarant guarante

cement nce ee or not related

ee ee any) ee (if e

on date amount party

any)

guarant or not

ee line

Total approved line Total actual

for external amount of external

guarantees in the 0 guarantees in the 0

Reporting Period Reporting Period

(A1) (A2)

Total approved line Total balance of

for external external

guarantees at the guarantees by the

00

end of the end of the

Reporting Period Reporting Period

(A3) (A4)

Guarantees provided by the Company to its subsidiaries

Disclos Guaran

Counte

ure date Actual Actual tee for

Line of Type of Collater r Term of

of the occurre guarant Fulfilled a

Obligor guarant guarant al (if guarant guarante

announ nce ee or not related

ee ee any) ee (if e

cement date amount party

any)

on or not

302026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

guarant

ee line

Shenzh

en New

Power April 15

140000

Industri 2026

al Co.Ltd.Shenzh

en

Shenna

n

Power April 15

40000

Environ 2026

mental

Protecti

on Co.Ltd.To

February

28

Shenzh 2035

en (The

Shenna actual

n maturity

Power date

April 15 Joint

Gas April subject to

2026、 3538.4 liability

Turbine 10000 30 the No No

May 7 1 guarant

Engine 2026 agreed

2026 ee

ering terms

Technol and

ogy condition

Co. s

Ltd. under the

letter of

guarante

e)

Shenna

n

Power

Energy

April 15

Technol 4500 0

2026

ogy

(Sichua

n) Co.Ltd.Total actual

Total approved line

amount of the

for the guarantees

guarantees to

to subsidiaries in 32500 3538.41

subsidiaries in the

the Reporting

Reporting Period

Period (B1)

(B2)

Total approved line Total balance of

for the guarantees the guarantees to

to subsidiaries at 32500 subsidiaries by the 3538.41

the end of the end of the

Reporting Period Reporting Period

312026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(B3) (B4)

Guarantees provided between subsidiaries

Disclos

ure date Guaran

Counte

of the Actual Actual tee for

Line of Type of Collater r Term of

announ occurre guarant Fulfilled a

Obligor guarant guarant al (if guarant guarante

cement nce ee or not related

ee ee any) ee (if e

on date amount party

any)

guarant or not

ee line

Total actual

Total approved line

amount of the

for the guarantees

guarantees to

to subsidiaries in 0 0

subsidiaries in the

the Reporting

Reporting Period

Period (C1)

(C2)

Total approved line Total balance of

for the guarantees the guarantees to

to subsidiaries at subsidiaries by the

00

the end of the end of the

Reporting Period Reporting Period

(C3) (C4)

Total guarantee amount (total of the three kinds of guarantees above)

Total guarantee Total actual

line approved in guarantee amount

the Reporting 32500 in the Reporting 3538.41

Period Period

(A1+B1+C1) (A2+B2+C2)

Total approved Total guarantee

guarantee line at balance by the end

the end of the 32500 of the Reporting 3538.41

Reporting Period Period

(A3+B3+C3) (A4+B4+C4)

Total guarantee balance (A4+B4+C4)

2.11%

as % of the Company’s net assets

Including:

Balance of guarantees provided for

shareholders de facto controller and 0

their related parties (D)

Balance of debt guarantees provided

directly or indirectly for obligors with an 0

over 70% debt/asset ratio (E)

Amount by which the total guarantee

amount exceeds 50% of the Company’s 0

net assets (F)

Total of the three guarantee amounts

0

above (D+E+F)

Explanation of the situation in which the

guarantee liability occurs or there is

evidence that it may bear joint and

None

several repayment liability during the

reporting period in respect of unexpired

guarantee contracts (if any)

322026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Explanation on the provision of external

guarantees in breach of the prescribed None

procedures (if any)

Note: 1. The Company convened the fifth meeting of the Tenth Session of the Board of Directors on April 13 2026 which

reviewed and approved the Proposal on Applying for Comprehensive Credit Line for Financing and Providing Guarantees

for 2026 specifying that the Company will provide a maximum guarantee line of not more than RMB 325 million or other

equivalent foreign currencies (including financing guarantees and non-financing guarantees) in total for its holding

subsidiaries Shenzhen New Power Industrial Co. Ltd. Shenzhen Shennan Power Environmental Protection Co. Ltd.Shenzhen Shennan Power Gas Turbine Engineering Technology Co. Ltd. and Shennan Power Energy Technology

(Sichuan) Co. Ltd. for the year 2026 (from the date this proposal is approved by the 2025 Board of Directors to the

convening date of the 2026 Board of Directors). The quota can be used on a rolling basis within the validity period approved

by the Board of Directors. For details please refer to the Announcement on Providing Guarantees for Holding Subsidiaries

in 2026 (Announcement No.: 2026-025) disclosed by the Company on Securities Times and CNINFO on April 15 2026.Up to the disclosure date of this report the guarantees provided by the Company to Shenzhen New Power Industrial Co.Ltd. Shenzhen Shennan Power Environmental Protection Co. Ltd. and Shennan Power Energy Technology (Sichuan)

Co. Ltd. have not actually occurred.

2. During the reporting period，the actual guarantee amount provided by the Company for Shenzhen Shennan Power

Gas Turbine Engineering Technology Co. Ltd. is USD 5.1559 million. Based on the central parity rate of 6.8628 announced

on the official website of the People's Bank of China on April 30 it is equivalent to approximately RMB 35.3841 million. For

details please refer to the Progress Announcement on Providing Guarantees for Holding Subsidiaries in 2026

(Announcement No.: 2026-033) disclosed by the Company on Securities Times and CNINFO on May 7 2026.

Compound guarantees:

None

3. Entrusted Wealth Management

□Applicable □Not applicable

Unit: RMB10000

Balance of entrusted

Unrecovered overdue

Product category Risk characteristics wealth management during

amount

the Reporting Period

Monetary market funds Low risk 3400.05 0.00

High-risk entrusted wealth management where the Company as a sole trustor entrusts a financial institution to carry out

asset management or invests in products with low security and poor liquidity

□ Applicable □ Not applicable

4. Other major contracts

□Applicable □Not applicable

Nam Nam Book Appr Exec

Nam

e of e of valu aise Tran ution

Subj e of Relat Relat

the the e of d Appr sacti by

ect Cont the ed- ions Discl

com coun the valu aisal Prici on the Discl

matt ract appr party hip osur

pany terpa asse e of base ng price end osur

er of signi aisal trans with e

enter rty ts the date princ (US of e

the ng instit actio the inde

ing enter invol asse (if iples D the date

contr date ution n or Com x

into ing ved ts any) 100 Rep

act (if not pany

the into in invol 00) ortin

any)

contr the the ved g

332026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

act contr contr in Perio

act act the d

(RM contr

B act

100 (RM

00) B

(if 100

any) 00)

(if

any)

Oper

ation

and

Main

tena

nce

Servi

Shen ce

The

zhen Proje

contr

Shen ct of

act

nan 2×45

Botu has

Pow 0MW

m been

er Gas

Sako sign Anno

Gas Turbi

r Janu Not Not ed Janu unce

Turbi ne Fair 104

Ener ary appli appli and ary ment

ne Com valu 05.6 No

gy 29 cabl cabl vario 30 No.:

Engi bine e 8

Com 2026 e e us 2026 2026

neeri d

pany tasks -004

ng Cycl

Limit of

Tech e

ed the

nolo Pow

proje

gy er

ct

Co. Plant

are

Ltd. in

progr

Koh

essin

Kong

g in

Provi

an

nce

order

Cam

ly

bodi

man

a

ner

Cam Oper

acco

bodi ation

rding

a and

to

Bran Botu Main

the

ch m tena

esta

Shen Sako nce Anno

blish

zhen r Servi Not Not unce

Marc Fair 104 ed April

Shen Ener ce appli appli ment

h 29 valu 05.6 No plan. 1

nan gy Proje cabl cabl No.:

2026 e 8 2026

Pow Com ct of e e 2026

er pany 2×45 -014

Gas Limit 0MW

Turbi ed Gas

ne Turbi

Engi ne

neeri Com

342026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

ng bine

Tech d

nolo Cycl

gy e

Co. Pow

Ltd. er

Plant

in

Koh

Kong

Provi

nce

Cam

bodi

a

Shen

zhen

Shen

nan

Pow Oper

er ation

Gas and

Turbi Main

ne tena

Engi nce

neeri Servi

ng ce

Tech Proje

nolo ct of

gy 2×45

Botu

Co. 0MW

m

Ltd.; Gas

Sako Anno

Cam Turbi

r Not Not unce

bodi ne Marc Fair April

Ener appli appli ment

a Com h 29 valu No 1

gy cabl cabl No.:

Bran bine 2026 e 2026

Com e e 2026

ch d

pany -014

Shen Cycl

Limit

zhen e

ed

Shen Pow

nan er

Pow Plant

er in

Gas Koh

Turbi Kong

ne Provi

Engi nce

neeri Cam

ng bodi

Tech a

nolo

gy

Co.Ltd.Note: The three contracts mentioned above are all related contracts for the Operation and Maintenance Service Project of

2×450MW Gas Turbine Combined Cycle Power Plant in Koh Kong Province Cambodia undertaken by Shennan Power

Engineering Company. The total contract amount of USD 208113545 is an estimated amount based on the operation and

352026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

maintenance cycle and the actual amount is subject to the amount confirmed during the contract execution process. For

details please refer to the relevant announcements disclosed by the Company on Securities Times and CNINFO.

(Announcement No.: 2026-001 2026-004 2026-014)

XIII. Reception of Researches Communications Interviews and other Activities during the Reporting Period

□Applicable □Not applicable

Object

Main points of Index of basic

Reception Place of Method of Type of object of

discussion and information of

time reception reception of reception receptio

information provided researches

n

Inquiry about the

Online Company's

All written

communicatio performance

Value Online Institution/indi replies

May 8 2026 n on the 11 operating measures

Platform vidual provided by

network competitive

the Company

platform advantages project

progress etc.Inquiry about the All received

Office Area of Company's dividend by the

the distribution Company in

May 14 2026 Field survey Individual 1

Company's progress of energy accordance

Headquarters storage projects with laws and

etc. regulations

Inquiry about the

Company's

performance

operating measures All written

January - irm.cninfo.co energy storage replies

Written inquiry Individual 19

June 2026 m.cn business layout provided by

progress of the Company

investment matters

land reserve

progress etc.Inquiry about the

Company's

production and

operation All replied by

Telephone Telephone performance the Company

January -

communicatio communicatio Individual 14 development of in accordance

June 2026

n n comprehensive with laws and

energy service regulations

business land

reserve progress

etc.XIV. Other Significant Events

□Applicable □Not applicable

Land-related matters of Nanshan Thermal Power Station: In March 2026 the Company again learned from the official

website of the Shenzhen Municipal Planning and Natural Resources Bureau about the Notice of the Municipal Planning

and Natural Resources Bureau on Issuing the Shenzhen 2026 Annual Land Preparation Plan. According to such notice

and its appendixes the land reserve and related contents of the Nanshan Thermal Power Station affiliated with the

362026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Company are still within the Shenzhen 2026 Annual Land Preparation Plan with no material change from the contents

stated in the land preparation plans disclosed in recent years. (For details please refer to the relevant announcements

disclosed by the Company on Securities Times and CNINFO Announcement No.: 2026-013)

Except for the foregoing the refund payable for the Company's "Project Technical Transformation Beneficiary Fund"

had no progress or change during the Reporting Period.XV. Significant Events of the Company's Subsidiaries

□ Applicable □ Not applicable

372026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section VI. Share Changes and Shareholders

I. Share Changes

1. Share changes

Unit: share

Before the Change Increase/decrease during the period (+ -) After the Change

Shares

Shares as

as dividen

dividen d

Proporti New d conver Proporti

Quantity Others Subtotal Quantity

on issues conver ted on

ted from

from capital

profit reserv

es

I. Restricted

shares

1. State-

owned

shares

2. Shares

held by the

state-owned

legal

persons

3. Other

domestic

holdings

Includin

g: shares

held by

domestic

legal

persons

Shares

held by

domestic

natural

persons

4. Foreign

shareholding

Includin

g: shares

held by

overseas

legal

persons

382026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Shares

held by

overseas

natural

persons

II.

100.00100.00

Unrestricted 602762596 602762596

%%

shares

1. RMB-

denominated

33890815056.23%33890815056.23%

ordinary

shares

2.

Domestically

26385444643.77%26385444643.77%

listed foreign

shares

3. Foreign

shares listed

overseas

4. Others

III. Total 100.00 100.00

602762596602762596

shares % %

Reasons for the change

□ Applicable □ Not applicable

Approval of the change

□ Applicable □ Not applicable

Transfer of share ownership

□ Applicable □ Not applicable

Progress on any share repurchases

□ Applicable □ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding

□ Applicable □ Not applicable

Effects of the share changes on the basic and diluted earnings per share equity per share attributable to the Company’s

ordinary shareholders and other financial indicators of the prior year and the prior accounting period respectively:

□ Applicable □ Not applicable

Other information that the Company considers necessary or is required by the securities regulator to be disclosed

□ Applicable □ Not applicable

2. Changes in restricted shares

□ Applicable □ Not applicable

II. Issuance and Listing of Securities

□ Applicable □ Not applicable

392026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

III. Number of Shareholders and Shareholdings of the Company

Unit: share

Number of ordinary Total number of preferred

shareholders as at the shareholders with restoration of

567970

end of the Reporting voting rights at the end of the

Period reporting period (if any) (see Note 8)

Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through

refinancing)

Number of Shares in pledge

Increase/de

Sharehol shares Restrict marked or frozen

Name of Nature of crease in Unrestrict

ding held by the ed

shareholde sharehol the ed shares

percenta end of the shares

r der Reporting held

ge Reporting held Status Quantity

Period

Period

Hong Kong

Foreign

Nam Hoi 9212324 Not

legal 15.28% 92123248 0 0 0

(Internation 8 applicable

person

al) Limited

Shenzhen State-

Guangju owned 7366682 Not

12.22%73666824000

Industrial legal 4 applicable

Co. Ltd. person

Shenzhen State-

Energy owned 6510613 Not

10.80%65106130000

Group Co. legal 0 applicable

Ltd. person

Domestic

Not

Zeng Ying natural 1.19% 7159600 0 0 7159600 0

applicable

person

CHINA

MERCHAN

Foreign

TS Not

legal 0.87% 5230654 -231500 0 5230654 0

SECURITI applicable

person

ES (HK)

LIMITED

LISHERYN Foreign

Not

ZHANMIN natural 0.72% 4320000 156400 0 4320000 0

applicable

G person

BOCI

Foreign

SECURITI Not

legal 0.72% 4310566 0 0 4310566 0

ES applicable

person

LIMITED

GUOTAI

JUNAN

SECURITI Foreign

Not

ES legal 0.68% 4110632 -1269248 0 4110632 0

applicable

（HONG personKONG）

LIMITED

Domestic

Huang Not

natural 0.64% 3866500 0 0 3866500 0

Yilong applicable

person

Zhang Domestic Not

0.55%3290053-10000032900530

Yuexiang natural applicable

402026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

person

Strategic investor or

general legal person

becoming a top-10

None

ordinary shareholder

due to rights issue (if

any) (see note 3)

1. Shenzhen Energy Group Co. Ltd. holds 100% equity interest in Hong Kong Nam Hoi

Related or acting-in-

(International) Limited.concert parties among

2. It remains unknown to the Company that whether other social shareholders are related

the shareholders above

or act in concert.Involvement of any

shareholder above in

entrusting/being

None

entrusted with voting

rights or waiving voting

rights

Special account for

share repurchases (if

any) among the top 10 None

shareholders (see note

11)

Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and

shares locked by senior management)

Type

Name of shareholder Unrestricted shares held by the end of the Reporting Period

Type Quantity

Domestica

Hong Kong Nam Hoi lly listed 9212324

92123248

(International) Limited foreign 8

stock

RMB-

denominat

Shenzhen Guangju 7366682

73666824 ed

Industrial Co. Ltd. 4

ordinary

stock

RMB-

denominat

Shenzhen Energy 6510613

65106130 ed

Group Co. Ltd. 0

ordinary

stock

Domestica

lly listed

Zeng Ying 7159600 7159600

foreign

stock

Domestica

CHINA MERCHANTS

lly listed

SECURITIES (HK) 5230654 5230654

foreign

LIMITED

stock

Domestica

lly listed

LISHERYNZHANMING 4320000 4320000

foreign

stock

Domestica

BOCI SECURITIES

4310566 lly listed 4310566

LIMITED

foreign

412026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

stock

Domestica

GUOTAI JUNAN

lly listedSECURITIES（HONG 4110632 4110632foreignKONG） LIMITED

stock

RMB-

denominat

Huang Yilong 3866500 ed 3866500

ordinary

stock

Domestica

lly listed

Zhang Yuexiang 3290053 3290053

foreign

stock

Related or acting-in-

concert parties among

top 10 shareholders of 1. Shenzhen Energy Group Co. Ltd. holds 100% equity interest in Hong Kong Nam Hoi

unrestricted shares as (International) Limited.well as between top 10 2. It remains unknown to the Company that whether other social shareholders are related

shareholders of or act in concert.unrestricted shares and

top 10 shareholders

Top 10 ordinary

shareholders involved

in securities margin None

trading (if any) (see

note 4)

Participation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders

of unrestricted tradable shares in refinancing business and lending shares

□ Applicable □ Not applicable

Changes to the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the

previous period due to refinancing lending/repayment

□ Applicable □ Not applicable

Whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company

conducted any promissory repo during the Reporting Period.□ Yes □ No

The company's top 10 common stock shareholders and top 10 unrestricted common stock shareholders did not engage

in any repurchase transactions during the reporting period.IV. Changes in Shareholdings of Directors and Senior Executives

□ Applicable □ Not applicable

There was no change in the shareholding of the Company's directors and senior executives during the Reporting Period.Please refer to the 2025 Annual Report for details.V. Changes in Controlling Shareholders or De Facto Controllers

If the Company previously disclosed that the actual controller was planning a change of control which has not been

completed please explain the progress of such change.□ Applicable □ Not applicable

Change to the controlling shareholder in the Reporting Period

□ Applicable □ Not applicable

422026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

None.Change of the de facto controller during the Reporting Period

□ Applicable □ Not applicable

None.

432026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

VI. Preference Shares

□ Applicable □ Not applicable

No Preference shares in the Reporting Period.

442026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section VII Bonds

□ Applicable □ Not applicable

452026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Section VIII Financial Report

I. Independent Auditor’s Report

Whether the semi-annual report has been audited

□ Yes □ No

The semi-annual financial report of the Company was unaudited.II. Financial Statements

Unit of the currency for the financial statements and the notes thereto: RMB

1. Consolidated Balance Sheet

Prepared by: Shenzhen Nanshan Power Co. Ltd.Unit: RMB

Item Ending balance Beginning balance

Current assets:

Monetary assets 246996378.28 141590339.04

Settlement reserve

Interbank loans granted

Trading financial assets 213244098.04 341000000.00

Derivative financial assets

Notes receivable 400000.00

Accounts receivable 109320305.12 109831397.29

Receivables financing

Prepayments 27031243.97 11052982.80

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 362387516.84 361729062.93

Including: Interest receivable

Dividends receivable

Financial assets purchased under

resale agreements

Inventories 38810872.76 37972909.48

Including: Data resources

Contract assets 7209277.31 21441671.72

Assets held for sale

Current portion of non-current assets

Other current assets 302711134.68 266262387.12

462026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Total current assets 1308110827.00 1290880750.38

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 166565065.15 196827515.83

Other equity instrument investments 234179057.20 234179057.20

Other non-current financial assets

Investment properties 1248174.70 1331453.08

Fixed assets 530531149.52 544902436.89

Construction in progress 3283591.43 3113338.75

Productive biological assets

Oil and gas assets

Right-of-use assets 36824287.82 28785337.19

Intangible assets 1860921.06 2041770.36

Including: Data resources

Development costs

Including: Data resources

Goodwill

Long-term deferred expenses 5673825.94 6567159.05

Deferred tax assets 4263047.69 4264858.88

Other non-current assets 5487497.73 857135.84

Total non-current assets 989916618.24 1022870063.07

Total assets 2298027445.24 2313750813.45

Current liabilities:

Short-term borrowings 172102811.10 172094604.45

Borrowings from the central bank

Interbank loans obtained

Financial liabilities held for trading

Derivative financial liabilities

Notes payable

Accounts payable 27353787.90 42661594.09

Advances from customers

Contract liabilities 5185301.61 130796.46

Financial assets sold under repurchase

agreements

Customer deposits and interbank

deposits

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 5024073.81 24759553.78

Taxes payable 11348667.34 8531798.19

472026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Other payables 27224007.81 33323386.05

Including: Interest payable

Dividends payable 15000000.00 22500000.00

Handling charges and commissions

payable

Reinsurance payables

Liabilities held for sale

Non-current liabilities maturing within

10135541.287340810.74

one year

Other current liabilities 896949.44 2425298.89

Total current liabilities 259271140.29 291267842.65

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 165631166.72 168421492.31

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 32461101.64 24668020.16

Long-term payables

Long-term employee benefits payable

Estimated liabilities 364945.00 364945.00

Deferred income 38740507.31 41913447.41

Deferred tax liabilities 14977656.19 9846034.15

Other non-current liabilities

Total non-current liabilities 252175376.86 245213939.03

Total liabilities 511446517.15 536481781.68

Owners' equity:

Share capital 602762596.00 602762596.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 362767402.38 362767402.38

Less: Treasury stock

Other comprehensive income 31060128.85 31064057.20

Specific reserve 544085.30 410577.62

Surplus reserves 332908397.60 332908397.60

General risk reserves

Retained earnings 348191596.86 347646697.47

Total equity attributable to owners of the

1678234206.991677559728.27

parent company

Minority equity 108346721.10 99709303.50

Total owners’ equity 1786580928.09 1777269031.77

482026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Total liabilities and owners' equity 2298027445.24 2313750813.45

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:

Zhang Xiaoyin Head of Accounting: Lin Xiaojia

2. Balance sheet of the parent company

Unit: RMB

Item Ending balance Beginning balance

Current assets:

Monetary assets 19051233.12 23174572.46

Trading financial assets 213244098.04 341000000.00

Derivative financial assets

Notes receivable

Accounts receivable 61744388.17 42375469.95

Receivables financing

Prepayments 21017021.41 21412712.54

Other receivables 609229534.27 568495288.27

Including: Interest receivable

Dividends receivable 15000000.00 22500000.00

Inventories 36025768.04 36421637.94

Including: Data resources

Contract assets

Assets held for sale

Current portion of non-current assets

Other current assets 284660856.67 242489343.26

Total current assets 1244972899.72 1275369024.42

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 724951271.46 721590421.11

Other equity instrument investments

Other non-current financial assets

Investment properties

Fixed assets 329500553.57 336942043.04

Construction in progress

Productive biological assets

Oil and gas assets

Right-of-use assets 10610930.37 1811770.63

Intangible assets 1716245.24 1874171.18

Including: Data resources

Development costs

492026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Including: Data resources

Goodwill

Long-term deferred expenses 5673825.94 6567159.05

Deferred tax assets

Other non-current assets 4993779.38 857135.84

Total non-current assets 1077446605.96 1069642700.85

Total assets 2322419505.68 2345011725.27

Current liabilities:

Short-term borrowings 142083227.77 142071687.79

Financial liabilities held for trading

Derivative financial liabilities

Notes payable

Accounts payable 4165466.26 4789658.17

Advances from customers

Contract liabilities 130796.46

Employee benefits payable 2641970.51 15991534.16

Taxes payable 10469444.01 6898103.90

Other payables 309833435.08 323690071.27

Including: Interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities maturing within

3440161.692125910.15

one year

Other current liabilities

Total current liabilities 472633705.32 495697761.90

Non-current liabilities:

Long-term borrowings

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 7497585.34

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 38114037.57 41223194.07

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 45611622.91 41223194.07

Total liabilities 518245328.23 536920955.97

Owners' equity:

Share capital 602762596.00 602762596.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

502026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Capital reserves 289963039.70 289963039.70

Less: Treasury stock

Other comprehensive income

Specific reserve 477807.20 410577.62

Surplus reserves 332908397.60 332908397.60

Retained earnings 578062336.95 582046158.38

Total owners’ equity 1804174177.45 1808090769.30

Total liabilities and owners' equity 2322419505.68 2345011725.27

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:

Zhang Xiaoyin Head of Accounting: Lin Xiaojia

3. Consolidated income statement

Unit: RMB

Item First half of 2026 First half of 2025

I. Total operating revenue 201808302.33 166389954.25

Including: Operating revenue 201808302.33 166389954.25

Interest revenue

Premiums earned

Service fee and commission

income

II. Total operating costs 187773883.55 209522013.90

Including: Cost of sales 137515768.78 162096776.61

Interest expense

Service fee and commission

expense

Surrenders

Net claims paid

Net change in insurance

reserves

Expenditure on policy dividends

Reinsurance premium expense

Taxes and surcharges 1635481.20 2225967.73

Selling expense 2344744.33 1048176.93

Administrative expense 33344820.84 34186284.20

R&D expense 7700122.14 8552435.26

Finance costs 5232946.26 1412373.17

Including: Interest expense 5189789.59 3740764.90

Interest revenue -166746.53 -2386769.54

Add: Other income 3266675.89 3313058.58

Investment income ("-" for loss) 17140509.64 13771642.72

Including: Investment income

11487600.932976431.04

from associates and joint ventures

512026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Income from the

derecognition of financial assets at

amortized cost

Exchange gains ("-" for loss)

Net gains on exposure hedges ("-"

for loss)

Gains from changes in fair value ("-

643644.40

" for loss)

Credit impairment loss ("-" for loss) -2159157.71

Asset impairment loss ("-" for loss)

Gains from disposal of assets ("-"

365503.541156732.52

for loss)

III. Operating profit ("-" for loss) 33291594.54 -24890625.83

Add: Non-operating income 263914.26 0.00

Less: Non-operating expenses 270.20 92279.19

IV. Total profit ("-" for total loss) 33555238.60 -24982905.02

Less: Income tax expense 5148197.51 53667.86

V. Net profit ("-" for net loss) 28407041.09 -25036572.88

(I) By operating continuity

1. Net profit from continuing

28407041.09-25036572.88

operations ("-" for net loss)

2. Net profit from discontinued

operations ("-" for net loss)

(II) By ownership

1. Net profit attributable to

shareholders of the parent company ("-" 19833302.46 -21739509.64

for net loss)

2. Minority interests ("-" for net loss) 8573738.63 -3297063.24

VI. Other comprehensive income (net of

-3928.352719216.40

tax)

Other comprehensive income

attributable to owners of the parent -3928.35 2719216.40

company (net of tax)

(I) Other comprehensive income not

2719216.40

reclassified to gains/losses

1. Remeasurement of defined

benefit plans

2. Other comprehensive income

not reclassified to gains/losses under the

equity method

3. Changes in fair value of

2719216.40

investments in other equity instruments

4. Changes in fair value arising

from changes in own credit risk

5. Others

(II) Other comprehensive income

-3928.35

reclassified to gains/losses

522026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

1. Other comprehensive income

reclassified to gains/losses under the

equity method

2. Changes in the fair value of

investments in other debt obligations

3. Other comprehensive income

arising from the reclassification of

financial assets

4. Credit impairment allowance for

investments in other debt obligations

5. Reserve for cash flow hedges

6. Differences arising from the

translation of foreign currency- -3928.35

denominated financial statements

7. Others

Other comprehensive income

attributable to the minority shareholders

(net of tax)

VII. Total comprehensive income 28403112.74 -22317356.48

Total comprehensive income

attributable to owners of the parent 19829374.11 -19020293.24

company

Total comprehensive income

8573738.63-3297063.24

attributable to non-controlling interests

VIII. Earnings per share:

(I) Basic earnings per share 0.0329 -0.0361

(II) Diluted earnings per share 0.0329 -0.0361

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:

Zhang Xiaoyin Head of Accounting: Lin Xiaojia

4. Income Statement of the parent company

Unit: RMB

Item First half of 2026 First half of 2025

I. Operating revenue 141374845.61 145467624.06

Less: Cost of sales 111216000.11 147248786.41

Taxes and surcharges 912685.18 1148347.31

Selling expense 549312.70 196802.11

Administrative expense 22994587.50 24209669.19

R&D expense 5781090.02 6740933.81

Finance costs -1974236.28 -5324191.89

Including: Interest expense 3401800.09 3275257.75

Interest revenue -5242279.79 -8601235.68

532026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Add: Other income 3167615.42 3184551.84

Investment income ("-" for loss) 9597915.44 7829332.02

Including: Investment income

4372975.352634120.34

from associates and joint ventures

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Net gains on exposure hedges ("-"

for loss)

Gains from changes in fair value ("-

643644.40

" for loss)

Credit impairment loss ("-" for loss)

Asset impairment loss ("-" for loss)

Gains from disposal of assets ("-"

for loss)

II. Operating profit ("-" for loss) 15304581.64 -17738839.02

Add: Non-operating income

Less: Non-operating expenses 66432.06

III. Total profit ("-" for total loss) 15304581.64 -17805271.08

Less: Income tax expense 6187.80

IV. Net profit ("-" for net loss) 15304581.64 -17811458.88

(I) Net profit from continuing operations

15304581.64-17811458.88

("-" for net loss)

(II) Net profit from discontinued

operations ("-" for net loss)

V. Other comprehensive income (net of

tax)

(I) Other comprehensive income not

reclassified to gains/losses

1. Remeasurement of defined

benefit plans

2. Other comprehensive income

not reclassified to gains/losses under the

equity method

3. Changes in fair value of

investments in other equity instruments

4. Changes in fair value arising

from changes in own credit risk

5. Others

(II) Other comprehensive income

reclassified to gains/losses

1. Other comprehensive income

reclassified to gains/losses under the

equity method

2. Changes in the fair value of

investments in other debt obligations

3. Other comprehensive income

arising from the reclassification of

542026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

financial assets

4. Credit impairment allowance for

investments in other debt obligations

5. Reserve for cash flow hedges

6. Differences arising from the

translation of foreign currency-

denominated financial statements

7. Others

VI. Total comprehensive income 15304581.64 -17811458.88

VII. Earnings per share:

(I) Basic earnings per share 0.0254 -0.0295

(II) Diluted earnings per share 0.0254 -0.0295

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:

Zhang Xiaoyin Head of Accounting: Lin Xiaojia

5. Consolidated Statement of Cash Flows

Unit: RMB

Item First half of 2026 First half of 2025

I. Cash flows from operating activities:

Proceeds from the sale of commodities

260302955.14154990186.28

and rendering of services

Net increase in customer deposits and

interbank deposits

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums in proceeds received on

original insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest service fee and commissions

received

Net increase in interbank loans

obtained

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax rebates

Cash generated from other operating

9398695.1810469572.28

activities

Subtotal of cash generated from

269701650.32165459758.56

operating activities

552026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Cash paid for commodities and

156771665.05145978477.97

services

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and in interbank loans granted

Payments in cash for claims on original

insurance contracts

Net increase in interbank loans granted

Interest service fee and commissions

paid

Policy dividends paid

Cash paid to and for employees 79460941.24 60121803.88

Taxes paid 12743094.75 12132329.68

Cash used in other operating activities 134408727.65 9480912.54

Subtotal of cash used in operating

383384428.69227713524.07

activities

Net cash generated from/used in

-113682778.37-62253765.51

operating activities

II. Cash flows from investing activities:

Proceeds from disinvestment 29999995.08 8698892.26

Return on investment in cash 29425960.16 8148076.97

Net proceeds from the disposal of fixed

assets intangible assets and other long- 13000.00 62511559.15

lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

74958596.9515015192.12

activities

Subtotal of cash generated from investing

134397552.1994373720.50

activities

Payments in cash for the acquisition of

fixed assets intangible assets and other 6314474.69 120888761.27

long-lived assets

Cash paid for investments 1950000.00

Net increase in pledged loans granted

Net payments in cash for the

acquisition of subsidiaries and other

business units

Cash used in other investing activities 193645193.91

Subtotal of cash used in investing

6314474.69316483955.18

activities

Net cash generated from/used in

128083077.50-222110234.68

investing activities

III. Cash flows from financing activities:

Proceeds in cash from disinvestment

Including: Capital contributions by non-

controlling interests to subsidiaries

562026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Borrowings raised in cash 97154742.83

Cash generated from other financing

activities

Subtotal of cash generated from financing

97154742.83

activities

Repayment of borrowings 1289801.14 175558036.22

Cash payments for distribution of

29304158.711989966.09

dividends or profit and interest

Including: Dividends and profits paid to

6000000.00

minority shareholders by subsidiaries

Cash used in other financing activities 2292033.43 2142680.00

Subtotal of cash used in financing

32885993.28179690682.31

activities

Net cash generated from/used in

-32885993.28-82535939.48

financing activities

IV. Effect of foreign exchange rates

-122824.95-26313.15

changes on cash and cash equivalents

V. Net increase in cash and cash

-18608519.10-366926252.82

equivalents

Add: Cash and cash equivalents

133255608.28471067121.66

beginning of the period

VI. Cash and cash equivalents end of the

114647089.18104140868.84

period

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:

Zhang Xiaoyin Head of Accounting: Lin Xiaojia

6. Statement of Cash Flows of the Parent Company

Unit: RMB

Item First half of 2026 First half of 2025

I. Cash flows from operating activities:

Proceeds from the sale of commodities

140209836.38138385701.82

and rendering of services

Tax rebates

Cash generated from other operating

136252657.5322208624.58

activities

Subtotal of cash generated from operating

276462493.91160594326.40

activities

Cash paid for commodities and services 110785730.75 144922149.77

Cash paid to and for employees 49979310.11 37070418.47

Taxes paid 6950844.27 1560645.13

Cash used in other operating activities 65539768.97 6775403.82

Subtotal of cash used in operating activities 233255654.10 190328617.19

Net cash generated from/used in operating

43206839.81-29734290.79

activities

572026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

II. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment in cash 25760060.01 2548076.97

Net proceeds from the disposal of fixed

assets intangible assets and other long-

lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

74958596.9570000000.00

activities

Subtotal of cash generated from investing

100718656.9672548076.97

activities

Payments in cash for the acquisition of

fixed assets intangible assets and other 190216.51 2050686.91

long-lived assets

Cash paid for investments

Net payments in cash for the acquisition

of subsidiaries and other business units

Cash used in other investing activities 59843173.66 224447253.82

Subtotal of cash used in investing activities 60033390.17 226497940.73

Net cash generated from/used in investing

40685266.79-153949863.76

activities

III. Cash flows from financing activities:

Proceeds in cash from disinvestment

Borrowings raised in cash

Cash generated from other financing

34000000.0016000000.00

activities

Subtotal of cash generated from financing

34000000.0016000000.00

activities

Repayment of borrowings 145558036.22

Cash payments for distribution of

20464246.491296369.80

dividends or profit and interest

Cash used in other financing activities 115516057.17 21854159.41

Subtotal of cash used in financing activities 135980303.66 168708565.43

Net cash generated from/used in financing

-101980303.66-152708565.43

activities

IV. Effect of foreign exchange rates

64857.72-629.68

changes on cash and cash equivalents

V. Net increase in cash and cash

-18023339.34-336393349.66

equivalents

Add: Cash and cash equivalents

23174572.46408963344.55

beginning of the period

VI. Cash and cash equivalents end of the

5151233.1272569994.89

period

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:

Zhang Xiaoyin Head of Accounting: Lin Xiaojia

582026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

7. Consolidated Statements of Changes in Owners’ Equity

Current amount

Unit: RMB

First half of 2026

Equity attributable to owners of the parent company

Other equity

Gen

Item instruments Less: Other Total

Capital eral Retaine Ot Minorit

Share Prefer Perp Treas compreh Specific Surplus owners’ reserve risk d her Subtotal y equity

capital equity red etual Othe ury ensive reserve reserves s rese earnings s

share bond rs stock income rves

s s

362763329034764

I. Balance as at the end 602762 31064 41057 167755 99709 177726

7402.38397.66697.4

of the previous year 596.00 057.20 7.62 9728.27 303.50 9031.77 8 0 7

Add: Changes in

accounting policies

Correction of

previous error

Others

362763329034764

II. Balance at the 602762 31064 41057 167755 99709 177726

7402.38397.66697.4

beginning of the year 596.00 057.20 7.62 9728.27 303.50 9031.77 8 0 7

III. Changes in the -

1335054489674478.863749311896

current period ("-" for 3928.3

7.689.397217.60.32

decrease) 5

-

(I) Total comprehensive 19833 198293 85737 2840311

3928.3

income 302.46 74.11 38.63 2.74

5

(II) Capital increased and

reduced by the owner

1. Ordinary shares

contributed by owners

2. Capital increased by

holders of other equity

592026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

instruments

3. Amount of share-

based payments included

in owners' equity

4. Others

---

(III) Profit distribution 19288 192884 192884

403.0703.0703.07

1. Appropriation to

surplus reserves

2. Appropriation to

general risk reserves

---

3. Distribution to owners

19288192884192884

(or shareholders)

403.0703.0703.07

4. Others

(IV) Transfers within

owners’ equity

1. Increase in capital (or

share capital) from

capital reserves

2. Increase in capital (or

share capital) from

surplus reserves

3. Loss offset by surplus

reserves

4. Changes in defined

benefit schemes

transferred to retained

earnings

5. Other comprehensive

income converted into

retained earnings

6. Others

602026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

13350133507.63678.197186.

(V) Special reserves

7.68689765

1. Appropriated in the 21417 214179 72955. 221474

current period 92.87 2.87 67 8.54

2. Used in the current 20082 200828 9276.7 201756

period 85.19 5.19 0 1.89

(VI) Others

36276332903481910834

IV. Balance at the end of 602762 31060 54408 167823 178658

7402.38397.61596.86721.1

the current period 596.00 128.85 5.30 4206.99 0928.09 8 0 6 0

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin

Xiaojia

Amount for the previous period

Unit: RMB

First half of 2025

Equity attributable to owners of the parent company

Other equity

Item instruments

Gen

Less: Other Minorit Total

Capital eral

Share Prefer Perp Treas compreh Specific Surplus Retained Othe

y owners

reserve risk Subtotal

capital red etual Othe ury ensive reserve reserves earnings rs

equity

’ equity

s rese

share bond rs stock income rves

s s

36277332901485315079

I. Balance as at the end 602762 16830 185255 22543

0922.18397.680575.23840.

of the previous year 596.00 54.57 604.81 265.62 0 0 08 70

Add: Changes in

accounting policies

Correction of

previous error

Others

36277332901485315079

II. Balance at the 602762 16830 185255 22543

0922.18397.680575.23840.

beginning of the year 596.00 54.57 604.81 265.62 0 0 08 70

612026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

III. Changes in the - - - -

1366313078

current period ("-" for 203866 17712 32970 21009

24.1473.10

decrease) 17.38 420.14 63.24 483.38

----

(I) Total comprehensive 27192

217395190203297022317

income 16.40 09.64 293.24 63.24 356.48

(II) Capital increased and

reduced by the owner

1. Ordinary shares

contributed by owners

2. Capital increased by

holders of other equity

instruments

3. Amount of share-

based payments included

in owners' equity

4. Others

(III) Profit distribution

1. Appropriation to

surplus reserves

2. Appropriation to

general risk reserves

3. Distribution to owners

(or shareholders)

4. Others

(IV) Transfers within

owners’ equity

1. Increase in capital (or

share capital) from

capital reserves

2. Increase in capital (or

share capital) from

surplus reserves

3. Loss offset by surplus

622026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

reserves

4. Changes in defined

benefit schemes

transferred to retained

earnings

5. Other comprehensive

income converted into

retained earnings

6. Others

130781307813078

(V) Special reserves

73.1073.1073.10

1. Appropriated in the 30567 30567 30567

current period 49.98 49.98 49.98

2. Used in the current 17488 17488 17488

period 76.88 76.88 76.88

-

1352135289

(VI) Others

892.2.26

26

36277332901467614869

IV. Balance at the end of 602762 30493 13078 164868 19246

0922.18397.668154.14357.

the current period 596.00 78.71 73.10 987.43 202.38 0 0 94 32

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin

Xiaojia

8. Statements of Changes in Owners’ Equity of the parent company

Current amount

Unit: RMB

First half of 2026

Other equity instruments Other

Item Less: Total Share Capital compre Specific Surplus Retained Oth

capital Preferr Perpetu Other

Treasury owners’

reserves hensive reserve reserves earnings ers

ed al s stock equity income

632026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

shares bonds

I. Balance as at the end of 60276259 2899630 410577. 332908 5820461 1808090

the previous year 6.00 39.70 62 397.60 58.38 769.30

Add: Changes in

accounting policies

Correction of

previous error

Others

II. Balance at the beginning 60276259 2899630 410577. 332908 5820461 1808090

of the year 6.00 39.70 62 397.60 58.38 769.30

--

III. Changes in the current 67229.5

39838213916591.

period ("-" for decrease) 8 .43 85

(I) Total comprehensive 1530458 15304581

income 1.64 .64

(II) Capital increased and

reduced by the owner

1. Ordinary shares

contributed by owners

2. Capital increased by

holders of other equity

instruments

3. Amount of share-based

payments included in

owners' equity

4. Others

--

(III) Profit distribution 1928840 19288403

3.07.07

1. Appropriation to surplus

reserves

--

2. Appropriation to owners

192884019288403

(or shareholders)

3.07.07

3. Others

642026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(IV) Transfers within owners’

equity

1. Increase in capital (or

share capital) from capital

reserves

2. Increase in capital (or

share capital) from surplus

reserves

3. Loss offset by surplus

reserves

4. Changes in defined

benefit schemes transferred

to retained earnings

5. Other comprehensive

income converted into

retained earnings

6. Others

67229.5

(V) Special reserves 67229.58

8

1. Appropriated in the current 166382 1663823.

period 3.35 35

1596591596593.

2. Used in the current period

3.7777

(VI) Others

IV. Balance at the end of the 60276259 2899630 477807. 332908 5780623 1804174

current period 6.00 39.70 20 397.60 36.95 177.45

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin

Xiaojia

Amount for the previous period

Unit: RMB

First half of 2025

Item

Share Other equity instruments Capital Less: Other Specific Surplus Retaine Othe Total

652026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

capital Preferr Perpetu reserves Treasury compre reserve reserves d rs owners’

Other

ed al stock hensive earnings equity

s

shares bonds income

I. Balance as at the end of 60276259 2899630 332908 622717 1848351

the previous year 6.00 39.70 397.60 765.31 798.61

Add: Changes in

accounting policies

Correction of

previous error

Others

II. Balance at the beginning 60276259 2899630 332908 622717 1848351

of the year 6.00 39.70 397.60 765.31 798.61

--

III. Changes in the current 130787

17811416503585

period ("-" for decrease) 3.10 58.88 .78

--

(I) Total comprehensive

17811417811458

income 58.88 .88

(II) Capital increased and

reduced by the owner

1. Ordinary shares

contributed by owners

2. Capital increased by

holders of other equity

instruments

3. Amount of share-based

payments included in

owners' equity

4. Others

(III) Profit distribution

1. Appropriation to surplus

reserves

2. Appropriation to owners

(or shareholders)

3. Others

662026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(IV) Transfers within owners’

equity

1. Increase in capital (or

share capital) from capital

reserves

2. Increase in capital (or

share capital) from surplus

reserves

3. Loss offset by surplus

reserves

4. Changes in defined

benefit schemes transferred

to retained earnings

5. Other comprehensive

income converted into

retained earnings

6. Others

1307871307873.

(V) Special reserves

3.1010

1. Appropriated in the current 305674 3056749.

period 9.98 98

1748871748876.

2. Used in the current period

6.8888

(VI) Others

IV. Balance at the end of the 60276259 2899630 130787 332908 604906 1831848

current period 6.00 39.70 3.10 397.60 306.43 212.83

Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin

Xiaojia

672026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

III. Company profile

1. Company Profile

Shenzhen Nanshan Power Co. Ltd. (hereinafter referred to as the "Company" or "this Company") is a joint stock

limited company reorganized from a foreign-invested enterprise and incorporated on November 25 1993 with the approval

of the General Office of Shenzhen Municipal People's Government (SFBF [1993] No. 897).With the approval of the Shenzhen Securities Management Office (Doc. SZBF [1993] No. 179) the Company issued

40 million RMB ordinary shares and 37 million domestically listed foreign shares to domestic and foreign investors

respectively on January 3 1994. On July 1 1994 and November 28 1994 the RMB ordinary shares (A shares) and

domestically listed foreign shares (B shares) issued by the Company were successfully listed for trading on the Shenzhen

Stock Exchange.The Company is mainly engaged in power production and sales and comprehensive energy services. The Company

is registered at No. 2097 Yueliangwan Avenue Nanshan District Shenzhen City Guangdong Province and

headquartered at16/F and 17/F Hantang Building OCT Nanshan District Shenzhen City Guangdong Province.These financial statements were approved for issue by the Board of Directors of the Company on August 21 2026.

2. Scope of the consolidated financial statements

As of June 30 2026 the subsidiaries in the scope of the consolidated financial statements of the Company are as

follows:

Shareholding

Name of subsidiary (enterprise) Remarks

percentage (%)

Shennan Power (Zhongshan) Electric Power Co. Ltd. (hereinafter referred to

80.00

as "Shennan Power Zhongshan Company")

Shenzhen Shennan Power Gas Turbine Engineering Technology Co. Ltd.

100.00

(hereinafter referred to as "Shennan Power Engineering Company")

Shenzhen Shennan Power Environmental Protection Co. Ltd. (hereinafter

100.00

referred to as "Shennan Power Environmental Protection Company")

Shenzhen Xiefu Energy Co. Ltd. (hereinafter referred to as "Xiefu Company") 50.00

Shenzhen New Power Industrial Co. Ltd. (hereinafter referred to as "New

100.00

Power Company")

Shennan Energy (Singapore) Pte. Ltd. (hereinafter referred to as "Singapore

100.00

Company")

Hong Kong Xingdesheng Co. Ltd. (hereinafter referred to as "Xingdesheng") 100.00

Shennan Power Xiwan Energy (Zhongshan) Co. Ltd. (hereinafter referred to

51.00

as "Shennan Power Xiwan Company")

Shennan Power Energy Technology (Sichuan) Co. Ltd. (hereinafter referred

75.00

to as "Energy Technology Company")

Shennan Power Zhengmai Energy Technology (Shenzhen) Co. Ltd.

51.00

(hereinafter referred to as "Shennan Power Zhengmai Energy Company")

Note: During the current period the Company invested and established a controlling subsidiary Shennan Power

Zhengmai Energy Technology (Shenzhen) Co. Ltd. which completed its industrial and commercial registration on May 22

2026 and has been stated as the scope of the Company's consolidated financial statements since then.

682026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

IV. Basis for preparation of financial statements

The Company prepares these Financial Statements based on the assumption of going concern according to actual

transactions and events in accordance with the Accounting Standards for Business Enterprises - Basic Standard and other

specific accounting standards application guidance for accounting standards for business enterprises interpretations of

accounting standards for business enterprises and other relevant regulations promulgated by the Ministry of Finance

(hereinafter collectively referred to as the "Accounting Standards for Business Enterprises") and the disclosure-related

provisions of the Rules for the Information Disclosure and Compilation of Companies Offering Securities to the Public No.

15 - General Provisions on Financial Reports issued by the China Securities Regulatory Commission.

The Company has no events or conditions that raise significant doubts about its ability to continue as a going-concern

ability for the twelve months following the end of the reporting period.V. Significant accounting policies and accounting estimates

Based on actual production and operation characteristices the Company has formulated a number of specific

accounting policies and accounting estimates in accordance with the relevant accounting standards for business

enterprises mainly reflected in the provision for bad debts of receivables (see Section VIII V 11 (4)) inventories (see

Section VIII V 12) fixed assets (see Section VIII V 18) long-term deferred expenses (see Section VIII V 24) revenue

recognition and measurement (see Section VIII V 28) specific reserve (see Section VIII V 32) etc.

1. Statement of compliance with the Accounting Standards for Business Enterprises

These Financial Statements comply with the requirements of the Accounting Standards for Business Enterprises and

truly and completely reflect the consolidated and parent company's financial position of the Company as of June 30 2026

as well as the consolidated and parent company's operating results and cash flows for the half year of 2026 and other

relevant information.

2. Accounting Period

The accounting year starts from January 1 to December 31 on the Gregorian calendar.

3. Operating cycle

The operating cycle of the Company is 12 months which serves as the criterion for classifying the liquidity of assets

and liabilities.

4. Recording currency

The Company uses RMB as the recording currency.

692026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

5. Determination methods and selection basis for materiality threshold

Item Importance criteria

Significant individually bad debt provisioned

Original carrying amount is greater than RMB 1000000.receivables

Recovery or reversal of provision for bad

Amount of recovery or reversal of bad debts for a single account

debts of significant accounts receivable in the

receivable exceeds RMB 1000000.current period

Write-off of significant receivables Write-off amount of a single account receivable exceeds RMB

1000000.

Significant construction in progress Single amount is greater than RMB 5000000.Significant provisions Single amount is greater than RMB 5000000.The carrying amount of long-term equity investment in a single joint

Significant joint ventures and associates venture or associate accounts for 5% or more of the consolidated total

assets.

6. Accounting treatments for business combinations under common control and those not under common

control

(1) Business combinations under common control

A business combination involving entities under common control is a business combination in which all of the

combining enterprises are ultimately controlled by the same party or parties both before and after the combination and

that control is not transitory.The assets and liabilities (including goodwill arising from the acquisition of the acquiree by the ultimate controller)

acquired by the Company as the merging party in a business combination involving enterprises under common control are

measured at the carrying amounts of the acquiree in the consolidated financial statements of the ultimate controller at the

date of combination. The difference between the carrying amount of the net assets acquired in the combination and the

carrying amount of the consideration paid for the combination (or the total par value of shares issued) is adjusted to the

capital premium in the capital reserve; if the capital premium in the capital reserve is insufficient to be offset the retained

earnings shall be adjusted accordingly.

(2) Business combinations not under common control

A business combination involving entities not under common control is a business combination in which all of the

combining enterprises are not ultimately controlled by the same party or parties both before and after the combination.The identifiable assets liabilities and contingent liabilities of the acquiree acquired by the Company as the acquirer

in a business combination not involving enterprises under common control are measured at fair value on the date of

acquisition. The difference by which the combination cost exceeds the fair value share of the identifiable net assets of the

acquiree acquired in the combination is recognized as goodwill. If the combination costs are less than the fair value share

702026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

of the identifiable net assets of the acquiree acquired in the combination the fair value of the identifiable assets liabilities

and contingent liabilities acquired in the combination as well as the combination cost shall be reviewed first. If after the

review the combination costs remain less than the fair value of the identifiable net assets of the acquiree acquired in the

combination the difference shall be stated as the current non-operating revenue of the combination.Directly related expenses incurred for the business combination are recorded in the current gains/losses when incurred;

transaction expenses for issuing equity securities or debt securities for the business combination are stated as the initial

recognition amount of the equity securities or debt securities.

7. Criteria for determining control and preparation methods for consolidated financial statements

(1) Scope of Consolidation

The scope of consolidation for the consolidated financial statements of the Company is based on the control including

the Company and all subsidiaries controlled by the Company. The criteria for the Company to judge control are that the

Company has the power over the investee enjoys variable returns by participating in the relevant activities of the investee

and has the ability to use its power over the investee to affect its return amount.

(2) Procedures of Consolidation

The Company prepares consolidated financial statements based on the financial statements of the Company and its

subsidiaries and according to other relevant information. When preparing the consolidated financial statements the

Company treats the entire group as an accounting entity and reflects the overall financial position operating results and

cash flows of the group in accordance with the recognition measurement and presentation requirements of the relevant

accounting standards for business enterprises and the unified accounting policies.The accounting policies and periods adopted by all subsidiaries stated as the consolidation scope of the consolidated

financial statements are consistent with those of the Company. If the accounting policies and periods adopted by a

subsidiary are inconsistent with those of the Company necessary adjustments shall be made in accordance with the

Company's accounting policies and periods in preparing the consolidated financial statements. For subsidiaries acquired

through business combinations not involving enterprises under common control their financial statements shall be adjusted

based on the fair value of identifiable net assets on the acquisition date. For subsidiaries acquired through business

combination involving enterprises under common control their financial statements shall be adjusted based on the carrying

amount of their assets and liabilities (including goodwill arising from the ultimate controller's acquisition of the subsidiary)

in the ultimate controller's financial statements.The portion of a subsidiary's equity current net gains/losses and current comprehensive income attributable to

minority shareholders is presented separately under the equity item in the consolidated balance sheet the net profit item

in the consolidated income statement and the total comprehensive income item respectively. If the current losses shared

by the minority shareholders of a subsidiary exceed the minority shareholders' share of the subsidiary's beginning equity

the balance offsets the minority shareholders' equity.

1) Addition of subsidiaries or businesses

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During the Reporting Period if a subsidiary or business is added due to a business combination under common control

the beginning balance of the consolidated balance sheet is adjusted; the income expenses and profits of the subsidiary

or business from the beginning of combination to the end of the Reporting Period are stated as the consolidated income

statement; the cash flows of the subsidiary or business from the beginning of combination to the end of the Reporting

Period are stated as the consolidated cash flow statement and the relevant items of the comparative statements are

adjusted simultaneously as if the consolidated reporting entity has existed since the time when ultimate controlling party

starts to exercise control.If the Company can exercise control over an investee under common control due to additional investment or other

reasons adjustments are made as if the parties involved in the combination existed in current status when the ultimate

controlling party began to exercise control. The relevant gains/losses other comprehensive income and other changes in

net assets recognized from the later of the date of obtaining the original equity and the date when the combining party and

the combined party are under common control to the combination date for the equity investment held before obtaining

control of the combined party reduce the beginning retained earnings or current gains/losses during the comparative

statement period respectively.During the Reporting Period if a subsidiary or business is added due to a business combination not under common

control the beginning balance of the consolidated balance sheet is not adjusted; the income expenses and profits of the

subsidiary or business from the acquisition date to the end of the reporting period are stated as the consolidated income

statement; the cash flows of the subsidiary or business from the acquisition date to the end of the Reporting Period are

stated as the consolidated cash flow statement.If the Company can exercise control over an investee not under common control due to additional investment or other

reasons the equity of the acquiree held before the acquisition date is remeasured by the Company at the fair value of the

equity at the acquisition date and the difference between the fair value and its book value is stated as the current

investment income. If the equity of the acquiree held before the acquisition date involves other comprehensive income

under the equity method and other changes in owners' equity other than net gains/losses other comprehensive income

and profit distribution the other related comprehensive income and other changes in owners' equity are transferred to the

current investment income to which the acquisition date belongs except for other comprehensive income arising from the

investee's remeasurement of changes in the net liabilities or net assets of the defined benefit plan.

2) Disposal of subsidiaries or businesses

* General treatment method

During the Reporting Period if the Company disposes of a subsidiary or business the income expenses and profits

of the subsidiary or business from the beginning of the period to the disposal date are stated as the consolidated income

statement; the cash flows of the subsidiary or business from the beginning of the period to the disposal date are stated as

the consolidated cash flow statement.When control over an investee is lost due to the disposal of a portion of an equity investment or other reasons the

remaining equity investment after disposal is remeasured by the Company at its fair value on the date of loss of control.

722026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

The difference between the sum of the consideration received for the disposal of the equity and the fair value of the

remaining equity less the sum of the share of net assets and goodwill of the original subsidiary calculated continuously

from the acquisition date or combination date based on the original shareholding ratio is stated as the investment income

in the period when control is lost. Other comprehensive income or other changes in owners' equity other than net

gains/losses other comprehensive income and profit distribution related to the equity investment in the original subsidiary

are transferred to current investment income when control is lost except for other comprehensive income arising from the

investee's remeasurement of changes in the net liabilities or net assets of the defined benefit plan.If the Company's shareholding ratio decreases due to capital injection by other investors into the subsidiary resulting

in loss of control accounting treatment is performed in accordance with the above-mentioned principles.* Disposal of subsidiaries in stages

If the terms conditions and economic effects of multiple transactions involving the disposal of equity in a subsidiary

in stages until loss of control meet one or more of the following conditions it usually indicates that the multiple transactions

are accounted for as a package of transactions:

a) The transactions are entered into either simultaneously or in contemplation of one another;

b) The transactions as a whole are necessary to achieve a complete commercial outcome;

c) The occurrence of one transaction is contingent on the occurrence of at least one other transaction;

d) A transaction is not economically viable when considered individually but is economically viable when considered

together with the others.If the transactions involving the disposal of equity investment in a subsidiary until loss of control belong to a package

of transactions the Company shall account for the transactions as a single transaction involving the disposal of a subsidiary

and loss of control; however the difference between the disposal consideration for each disposal before the loss of control

and the share of the subsidiary's net assets corresponding to the disposed investment is recognized as other

comprehensive income in the consolidated financial statements and is transferred to the profit or loss of the period of

losing control.If the transactions involving the disposal of equity investment in a subsidiary until loss of control do not belong to a

package of transactions prior to the loss of control accounting treatment is conducted in accordance with the policies on

the partial disposal of equity investment in a subsidiary without loss of control; upon the loss of control accounting

treatment is conducted in accordance with the general treatment method for the disposal of a subsidiary.

3) Purchase of minority shareholders' equity in a subsidiary

The difference between the newly acquired long-term equity investment due to the purchase of minority equity by the

Company and the share of net assets of the subsidiary calculated continuously from the acquisition date (or combination

date) based on the newly added shareholding ratio the share premium in the capital reserve under the consolidated

balance sheet is adjusted. If the share premium in the capital reserve is insufficient to absorb the difference retained

earnings are adjusted.

732026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

4) Partial disposal of equity investment in a subsidiary without losing control

The difference between the disposal proceeds obtained from the partial disposal of a long-term equity investment in

a subsidiary without losing control and the share of the subsidiary's net assets calculated continuously from the acquisition

date or combination date corresponding to the disposed long-term equity investment the share premium in the capital

reserve under the consolidated balance sheet is adjusted. If the share premium in the capital reserve is insufficient to

absorb the difference retained earnings are adjusted.

8. Classification of joint venture arrangements and accounting treatments for joint operations

When the Company is a joint venturer in a joint arrangement enjoys the assets related to the arrangement and bears

the liabilities related to the arrangement a joint operation constitutes.The Company recognizes the following items related to its share of interests in a joint operation and accounts for the

same in accordance with the provisions of relevant accounting standards for business enterprises:

(1) Recognize the assets held separately by the Company and the jointly held assets according to the Company's

share;

(2) Recognize individually incurred liabilities and jointly incurred liabilities based on the Company's share;

(3) Recognize the revenue generated from the sale of the Company's share of the output of the joint operations;

(4) Recognize the Company's share of the revenue generated by the joint operation from the sale of output;

(5) Recognize individually incurred expenses and expenses of the joint operations based on the Company's share.

For the accounting policies of the Company's investments in joint ventures please refer to Section VIII V (16) Long-

term Equity Investments.

9. Determination criteria for cash and cash equivalents

Cash in the Company's cash flow statement refers to cash on hand and deposits that can be readily drawn on demand.Cash equivalents in the cash flow statement refers to the investments with a holding period of no more than 3 months that

are highly liquid readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.

10. Foreign currency transactions and translation of foreign currency statements

（1） Foreign Currency Transaction

Foreign currency transactions of the Company are converted into the functional currency at the spot exchange rate

on the transaction date at initial recognition. On the balance sheet date monetary items denominated in foreign currencies

are converted into the functional currency at the spot exchange rate on the balance sheet date. The resulting exchange

differences are recognized directly in gains/losses for the current period except for exchange differences arising from

specific foreign currency borrowings for the construction or production of assets qualifying for capitalization which are

742026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

treated according to the principle of capitalization.

（2） Translation of Foreign Currency Financial Statements

When preparing consolidated financial statements the Company converts the financial statements of overseas

operations into RMB. among which assets and liabilities in the foreign currency balance sheet are converted at the spot

exchange rate on the balance sheet date; shareholders' equity items except for "undistributed profits" are converted at

the spot exchange rate at the time of the transaction; income and expense items in the income statement are converted at

the spot exchange rate on the transaction date. Upon disposal of an overseas operation the exchange differences arising

from the translation of foreign currency financial statements related to the overseas operation are transferred from

shareholders' equity to profit or loss for the period of disposal. Cash flows in foreign currency are converted at the spot

exchange rate on the date the cash flows occur. The effect of exchange rate changes on cash is presented separately in

the cash flow statement.

11. Financial instruments

（1） Recognition and Derecognition of Financial Instruments

The Company recognizes financial assets or financial liabilities when it becomes a party to financial instruments

contracts.A financial asset (or a part of a financial asset or a part of a group of similar financial assets) is derecognized that is

removed from the balance sheet when the following conditions are met: 1) The contractual rights to receive cash flows

from the financial asset have expired; 2) the rights to receive cash flows from the financial asset have been transferred or

an obligation to pay the received cash flows in full without material delay to a third party under a "pass-through

arrangement" has been assumed; and substantially all the risks and rewards of ownership of the financial asset have been

transferred or although substantially all the risks and rewards of ownership of the financial asset have neither been

transferred nor retained the control over the financial asset has been relinquished.A financial liability is derecognized when the obligation under the liability is discharged cancelled or expires. When

an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of

an existing liability are substantially modified such exchange or modification is treated as a derecognition of the original

liability and the recognition of a new liability with the difference recognized in the gains/losses for the current period.Purchases or sales of financial assets in a regular manner are recognized and derecognized by accounting method

at the transaction date. The transaction date refers to the date on which the Company commits to purchase or sell the

financial asset.

（2） Classification and measurement of financial assets

At initial recognition the Company's financial assets are classified into financial assets measured at amortized cost

financial assets measured at fair value through other comprehensive income and financial assets measured at fair value

through gains/losses for the current period based on the Company's business model for managing financial assets and

752026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

the contractual cash flow characteristics of the financial assets. The Company reclassifies all affected financial assets only

when it changes its business model for managing financial assets.In determining the business model the Company considers how the performance of the financial assets is evaluated

and reported to key senior executives the risks affecting the performance of the financial assets and how they are managed

and how relevant business managers are compensated. In evaluating whether the objective is to collect contractual cash

flows the Company analyzes and judges the reasons for timing frequency and value of sales before the maturity date of

the financial assets.Financial assets are initially measured at fair value while accounts receivable or notes receivable arising from the

sale of goods or provision of services that do not contain a significant financing component or do not consider financing

components not exceeding one year are initially measured at the transaction price.For financial assets measured at fair value through gains/losses for the current period related transaction costs are

directly recognized in the gains/losses for the current period. For other categories of financial assets related transaction

costs are stated as their initially recognized amount.The subsequent measurement of financial assets depends on their classification.

1) Financial assets measured at amortized cost

Financial assets are classified as those measured at amortized cost if both of the following conditions are met: * The

business model for managing the financial asset is to collect contractual cash flows; * the contract terms of the financial

asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount

outstanding. Such financial assets are recognized for interest income by the effective interest method and the gains/losses

arising from their derecognition modification or impairment are recognized gains/losses for the current period. The

Company's financial assets in this category mainly include monetary funds accounts receivable notes receivable and

other receivables.

2) Investments in debt instruments measured at fair value with changes recognized in other comprehensive

income

Financial assets are classified as those measured at fair value through other comprehensive income if both of the

following conditions are met: * The Company's business model for managing the financial asset aims to collect contractual

cash flows and sell the financial asset; * the contract terms of the financial asset specify that the cash flows generated on

the specific date that are solely payments of principal and interest on the principal amount outstanding. Such financial

assets are recognized for interest income by the effective interest method. Except for interest income impairment losses

and exchange differences which are recognized in profit or loss for the current period other changes in fair value are

recognized in other comprehensive income. Upon derecognition of the financial asset the cumulative gains/losses

previously recognized in other comprehensive income are reclassified from other comprehensive income to gains/losses

for the current period.

3) Investments in equity instruments measured at fair value with changes recognized in other comprehensive

762026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

income

The Company irrevocably designates certain non-trading equity instrument investments as financial assets measured

at fair value through other comprehensive income. The Company only recognizes relevant dividend income (except for

those clearly recovered as part of the investment costs) in the gains/losses for the current period and subsequent changes

in fair value are recognized in other comprehensive income without the need for impairment provision. Upon derecognition

of the financial asset the cumulative gains/losses previously recognized in other comprehensive income are reclassified

from other comprehensive income to retained earnings. The Company's financial assets in this category are investments

in other equity instruments.

4) Financial assets measured at fair values through current profit or loss

Except for the financial assets classified as those measured at amortized cost and those classified or designated as

financial assets measured at fair value through other comprehensive income as mentioned above the Company classifies

the same as financial assets measured at fair value through current gains/losses. Such financial assets are subsequently

measured at fair value and all changes in fair value are stated as the current gains/losses except those related to hedge

accounting. The financial assets classified in this category by the Company mainly include trading financial assets.The contingent consideration recognized by the Company in business merger not under the same control which

constitutes a financial asset is classified as the financial assets measured at fair value through current gains/losses.

（3） Classification recognition and measurement of financial liabilities

1) Financial liabilities measured at fair value with changes recognized in profit or loss

Financial liabilities measured at fair value through current gains/losses include trading financial liabilities and derivative

financial liabilities which are initially measured at fair value and related transaction costs are stated as the current

gains/losses. Such financial liabilities are subsequently measured at fair value and changes in fair value are stated as the

current gains/losses.Upon derecognition the difference between its book value and the consideration paid is stated as the current

gains/losses.

2) Financial liabilities measured at amortized costs

Financial liabilities measured at amortized cost include short-term borrowings notes payable accounts payable other

payables long-term borrowings bonds payable and long-term payables which are initially measured at fair value and

related transaction costs are stated as the initial recognition amount.Interest calculated using the effective interest method during the holding period is stated as current gains/losses.Upon derecognition the difference between the consideration paid and the book value of the financial liability is stated

as current gains/losses.

（4） Impairment of financial instruments

772026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

The Company considers all reasonable and supportable information including forward-looking information to estimate

the expected credit losses of financial assets measured at amortized cost and financial assets (debt instruments) measured

at fair value through other comprehensive income on an individual or portfolio basis. The expected credit losses are

measured on whether the credit risk of financial assets increases significantly since initial recognition.Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by the risk

of default. Credit loss refers to the difference between all contractual cash flows receivable under the contract (discounted

by the Company using the original effective interest rate) and all expected cash flows to be collected i.e. the present value

of all cash shortfalls.For all notes receivable contract assets accounts receivable and lease receivables generated from daily operations

such as sale of goods and provision of services regulated by the income standard the Company uses a simplified method

to measure the loss provision based on the expected credit loss over the entire lifetime; for other notes receivable

receivables financing and other receivables divided into portfolios the Company calculates the expected credit loss

through the exposure at default and the expected credit loss rate within the next 12 months or over the entire lifetime by

referring to historical credit loss experience current conditions and forecasts of future economic conditions.Except for the other various receivables and temporary payments adopting the simplified measurement method and

purchased or originated credit-impaired financial assets mentioned above the Company assesses whether the credit risk

of relevant financial instruments has increased significantly since initial recognition on the balance sheet date and

measures their loss provisions recognizes expected credit losses and changes.

1) Recognition criteria and withdrawal methods for bad debt provision of receivables with significant single

amount and individual withdrawal for bad debts

The Company conducts an impairment test separately on receivables with a significant single amount and also

financial assets without impairment including test in a portfolio of financial assets with similar credit risk characteristics.Receivables for which impairment losses have been recognized in a single test are no longer stated as a portfolio of

receivables with similar credit risk characteristics for impairment testing.

2) Receivables with insignificant single amount and individual withdrawl for bad debts

For receivables with an insignificant single amount but possessing the following characteristics such as receivables

that fall in disputes with the counterparty or are involved in litigation or arbitration; receivables for which contact with the

debtor has been lost and there is no third-party recovering person; receivables with obvious indications that the debtor is

likely unable to fulfill the repayment obligation etc. a separate impairment test is conducted. If there is an objective

evidence that impairment occurs an impairment loss is recognized and an impairment provision is accrued based on the

difference by which the present value of its future cash flows is lower than its book value.

3) Basis for determination and calculation method of receivables calculating expected credit losses by credit

risk portfolio

If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost by individual instruments the

782026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Company refers to historical credit loss experience current conditions and judgments on future economic conditions

divides notes receivable accounts receivable other receivables and contract assets into several portfolios based on credit

risk characteristics and calculates expected credit losses on a portfolio basis.Name Basis

Portfolio 1 Bank Acceptance Bills Portfolio

Portfolio 2 Receivables from Power Production and Sales

Portfolio 3 Receivables from Comprehensive Energy Services

Accounts Receivable other Receivables and Contract Assets

Portfolio 4

Portfolio of Related Parties within the Consolidation

Portfolio 5 Margin Deposit and Petty Cash Portfolio

Export Tax Rebate Value-added Tax Refund upon Collection and

Portfolio 6

other Taxes Portfolio

Other Receivables and Temporary Payments Excluding the above

Portfolio 7

Portfolios

4) Write-off of provision for impairment

Where the Company no longer reasonably expects to recover the contractual cash flows of a financial asset in whole

or in part the Company directly writes down the book balance of the financial asset. If the written-down financial asset is

subsequently recovered it is recognized as a reversal of impairment loss in gains or losses for the period of recovery.

（5） Recognition and measurement of financial asset transfers

For any transaction on financial asset transfer if the Company has transferred substantially all the risks and rewards

of ownership of the financial asset to the transferee the financial asset is derecognized; if substantially all the risks and

rewards of ownership of the financial asset are retained the financial asset is not derecognized; if the Company neither

transfers nor retains substantially all the risks and rewards of ownership of the financial asset and has relinquished control

of the financial asset the financial asset is derecognized and the resulting assets and liabilities are recognized; if the

control of the financial asset is not relinquished the relevant financial asset is recognized to the extent of its continuing

involvement in the transferred financial asset and the relevant liabilities are recognized accordingly.If the transfer of a financial asset in its entirety satisfies the conditions for derecognition the difference between the

sum of the consideration received for the transfer and the amount of the cumulative changes in fair value previously

recognized in other comprehensive income corresponding to the derecognized part (where the transferred financial asset

simultaneously meets the following conditions: * the Company's business model for managing the financial asset aims to

collect contractual cash flows and sell the financial asset; * the contractual terms of the financial asset stipulate that the

cash flows generated on specific dates are solely payments of principal and interest on the outstanding principal amount)

and the book value of the transferred financial asset at the date of derecognition is recognized in the current gains/losses.If the transfer of a financial asset in part satisfies the conditions for derecognition the entire book value of the

transferred financial asset is allocated between the derecognized part and the non-derecognized part based on their

792026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

respective relative fair values and the difference between the sum of the consideration received for the transfer and the

amount corresponding to the derecognized part of the cumulative changes in fair value previously recognized in other

comprehensive income that shall be allocated to the derecognized part (where the transferred financial asset

simultaneously meets the following conditions: * the Company's business model for managing the financial asset aims to

collect contractual cash flows and sell the financial asset; * the contractual terms of the financial asset stipulate that the

cash flows generated on specific dates are solely payments of principal and interest on the outstanding principal amount)

and the allocated overall book value of the aforementioned financial asset is recognized in the current gains/losses.Where continuing involvement is achieved by providing a financial guarantee for the transferred financial asset the

asset resulting from continuing involvement is recognized at the lower of the book value of the financial asset and the

amount of financial guarantee. The amount of financial guarantee refers to the maximum amount of the consideration

received that the Company shall be required to repay.

（6） Conditions for Derecognition of Financial Liabilities

If the present obligations of a financial liability are fully or partially discharged the financial liability or the respective

part thereof is derecognized. If the Company enters into an agreement with a creditor to replace an existing financial liability

with a new one and the contractual terms of the new financial liability are substantially different from those of the existing

financial liability the existing financial liability is derecognized and the new financial liability is recognized at the same time.If the Company makes substantial modifications to the contractual terms of an existing financial liability in whole or in

part the existing financial liability or a part thereof is derecognized and the financial liability with modified terms is

recognized as a new one.Upon derecognition of a financial liability in full or in part the difference between the book value of the derecognized

financial liability and the consideration paid (including any non-cash assets transferred out or new financial liabilities

assumed) is recognized in the current gains/losses.If the Company repurchases in part a financial liability the book value of the financial liability as a whole is allocated

on the repurchase date based on the relative fair values of the part that continues to be recognized and the derecognized.The difference between the book value allocated to the derecognized part and the consideration paid (including any non-

cash assets transferred out or new financial liabilities assumed) is recognized in the current gains/losses.

（7） Methods to determine the fair value of financial assets and liabilities

For any financial instrument on the active market its fair value is determined based on the quoted prices in the active

market. For any financial instrument not on an active market valuation techniques are used to determine its fair value. In

valuation the Company uses such techniques that are applicable in the current circumstances and supported by sufficient

available data and other information selects inputs that are consistent with the characteristics of the asset or liability

considered by market participants in transactions involving the relevant asset or liability and prioritizes the use of relevant

observable inputs. Unobservable inputs are used only when relevant observable inputs are unavailable or impractical to

obtain.

802026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

（8） The distinction between financial liabilities and equity instruments and related treatment methods

The Company distinguishes financial liabilities from equity instruments in the following principles: 1) If the Company

cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or another financial asset that contractual

obligation meets the definition of a financial liability. Although some financial instruments do not explicitly include terms and

conditions imposing an obligation to deliver cash or another financial asset they may indirectly create a contractual

obligation through other terms and conditions. 2) If a financial instrument must or may be settled in any of equity instruments

owned by the Company it is necessary to consider whether the instrument owned by the Company used for the settlement

of such instrument serves as a substitute for cash or other financial assets or is intended to give the holder of the instrument

a residual interest in the assets of the issuer after deduction of all its liabilities. In the former case the instrument is a

financial liability of the issuer; while in the latter case the instrument is an equity instrument of the issuer. In certain

circumstances a financial instrument contract requires that the Company must or may settle the financial instrument using

its own equity instrument where the amount of the contractual right or obligation is equal to the number of its own equity

instruments to be obtained or delivered multiplied by their fair value at settlement. Whether the amount of the contractual

right or obligation is fixed or fluctuates entirely or partially based on changes in variables other than the market price of

the equity instruments owned by the Company (such as interest rates the price of a certain commodity or the price of a

certain financial instrument) the contract is classified as a financial liability.In classifying the financial instruments (or components thereof) in the consolidated financial statements the Company

considers all terms and conditions agreed upon between members of the Company and the holders of the financial

instruments. If the Company as a whole assumes an obligation due to the instrument to deliver cash other financial assets

or to settle in any other way that causes the instrument to become a financial liability the instrument shall be classified as

a financial liability.

12. Inventories

(1) Classification of inventories

The Company is mainly engaged in power production and sales for which purpose its inventories are mainly materials

and supplies consumed during production or the provision of services including fuel raw materials spare parts and

maintenance equipment.

(2) Pricing method of inventories dispatched

Inventories are initially measured at cost upon acquisition and are valued by the specific identification method upon

issuance.

(3) Basis to determine the net realizable value for different categories of inventories

For finished goods materials for sale and other commodity inventories directly for sale the net realizable value is

determined in the normal course of production and operation by the estimated selling price of the inventory less the

estimated selling expenses and related taxes; for material inventories requiring processing the net realizable value is

determined in the normal course of production and operation by the estimated selling price of the finished products less

812026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

the estimated costs to be incurred upon completion estimated selling expenses and related taxes;

For inventories held to execute sales contracts or service contracts the net realizable value is calculated based on

the contract price; if the quantity of inventories held exceeds the quantity ordered in the sales contracts the net realizable

value of the excess inventories is calculated based on the general sales price.By the end of the period the inventory depreciation provision is withdrawn based on individual inventory items.However for inventories with a large quantity and a low unit price the inventory depreciation provision is withdrawn based

on inventory categories; for inventories related to product series produced and sold in the same region having the same

or similar final uses or purposes and difficult to measure separately from other items the inventory depreciation provision

is withdrawn on a consolidated basis.After the withdrawal of the depreciation reserves for inventories if the factors which cause any write-down of the

inventories have disappeared causing the net realizable value of inventories is higher than its book value; the amount of

write-down shall be reversed from the original amount of depreciation reserve for inventories. The reversed amount shall

be included in the profits and losses of the current period.

(4) Inventory system of inventories

The perpetual inventory system is adopted.

(5) Amortization method of low-value consumables and packaging materials

Low-value consumables are amortized by the one-off amortization method and packaging materials are amortized by

the one-off amortization method.

13. Contract assets and liabilities

（1） Contract assets

Contract assets refer to the Company's right to consideration in exchange for goods that has been transferred to

customers where such right is conditioned on factors other than the passage of time. The Company's unconditional right

to receive consideration from the customers (i.e. depending solely on the passage of time) is separately presented as

receivables.For the determination method and accounting treatment method of expected credit losses on contract assets please

refer to Section VIII Item V (11 4) Accounting Treatment of Accounts Receivable in Impairment of Financial Instruments.

（2） Contract liabilities

Liabilities of contracts refer to the Company's obligation to transfer goods to customers due to the consideration

received or receivable from customers.Contract assets and contract liabilities under the same contract are presented by their net amounts.

822026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

14. Contract costs

The Company's assets related to contract costs include the costs for contract performance and contract acquisition.Based on the liquidity contract performance costs are presented in inventories and other non-current assets while contract

acquisition costs are presented in other current assets and other non-current assets respectively.

(1) Contract performance costs

Contract performance costs namely the costs incurred by the Company to perform a contract which fall out of the

scope of relevant accounting standards such as inventories fixed assets or intangible assets and satisfy all the following

conditions are recognized as asset as contract performance costs: Such costs are directly related to a current or expected

contract including direct labor direct materials manufacturing overheads (or similar costs) costs explicitly borne by the

customer and other costs incurred solely for the contract; the costs generate or enhance resources of the Company that

will be used in satisfying performance obligations in the future; and the costs are expected to be recovered.

(2) Contract acquisition costs

If the incremental costs (i.e. costs that would not be incurred if the contract fails to be obtained) incurred by the

Company to obtain a contract are expected to be recovered they are recognized as assets and amortized on the same

basis as the recognition of revenue from goods or services related to the assets and stated as the current gains/losses. If

the amortization period of the assets does not exceed one year they are stated as the current gains/losses when incurred.Other expenditures incurred by the Company to obtain a contract are stated as the current gains/losses when incurred

except those explicitly borne by the customer.

(3) Impairment of contract costs

If the carrying amount of an asset related to contract cost is higher than the difference between the following two items

the Company makes an impairment provision for the excess and recognizes it as an asset impairment loss: * The

remaining consideration that the enterprise expects to receive in exchange for the goods related to the asset; * the cost

estimated to be incurred to transfer the related goods. After the impairment provision is made if the factors of impairment

in previous periods change resulting in the difference between the above two items higher than the carrying amount of the

asset the previously recognized asset impairment provision is reversed and stated as the current gains/losses while the

carrying amount of the asset after reversal shall not exceed the carrying amount of the asset on the reversal date assuming

no impairment provision is made.

15. Assets held for sale

(1) The Company classifies non-current assets or disposal groups that meet all the following conditions into

the held-for-sale category:

1) They are available for immediate sale in their present condition subject only to terms that are usual and

customary for sales of such assets or disposal groups in similar transactions;

832026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

2) The sale is highly probable that is the Company has resolved on a sale plan and obtained a firm purchase

commitment and the sale is expected to be completed within one year. Where relevant regulations require approval from

the relevant competent authority or regulator of the Company before the sale can be made approval has been obtained.

(2) The Company separates a component that can be separately distinguished and meets one of the following

conditions and that component has been disposed of or classified into the held-for-sale category:

1) The component represents a separate major business or a sole major business area;

2) The component is a part of the associated plan on the intended disposal of an independent major business or a

sole major business area; or

3) The component is a subsidiary acquired only for re-sale.

(3) Presentation method

The Company presents the non-current assets held for sale or assets in the disposal group held for sale separately

from other assets in the balance sheet and presents the liabilities in the disposal group held for sale separately from other

liabilities. The non-current assets held for sale or assets in the disposal group held for sale and the liabilities in the disposal

group held for sale shall not be offset against each other and shall be presented as current assets and current liabilities

respectively. The Company presents the gains/losses from continuing operations and those from discontinued operations

separately in the income statement. For non-current assets or disposal groups held for sale that fail to meet the definition

of discontinued operations their impairment losses reversal amounts and disposal gains/losses shall be presented as

gains/losses from continuing operations. Operating gains/losses such as impairment losses and reversal amounts and

disposal gains/losses of discontinued operations shall be presented as gains/losses from discontinued operations.

16. Long-term equity investments

The Company's long-term equity investments mainly consist of investments in subsidiaries associated enterprises

and joint ventures.

(1) Judgment of Significant Influence and Common Control

The Company's equity investments that have a significant influence on the investee are investments in associated

enterprises. Significant influence refers to the power of the Company to participate in decisions on an investee's financial

and operating policies but not to control or commonly control the formation of those policies.The Company's equity investments in an investee over which it exercises common control with other joint venturers

and has rights to the net assets of the investee are investments in joint ventures. Common control refers to the shared

control over an arrangement in accordance with the relevant agreement and decisions on relevant activities of the

arrangement must be made with the unanimous consent of the parties sharing the control. The Company's judgment of

common control is based on the collective control of the arrangement by all parties or a combination of parties and

decisions on relevant activities of the arrangement must be unanimously agreed upon by the parties that collectively control

the arrangement.

842026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(2) Accounting Treatment Method

The Company initially measures the acquired long-term equity investments at the initial investment cost.For long-term equity investments acquired through business merger involving enterprises under common control the

share of the book value of the merged party's net assets in the consolidated financial statements of the ultimate controlling

party on the date of merger is taken as the initial investment cost; if the book value of the merged party's net assets on the

date of merger is negative the initial investment cost is determined as zero.For long-term equity investment acquired through business combination not under the same control the initial

investment cost shall be the consolidation cost.Except for long-term equity investments formed by business merger for long-term equity investments acquired by

cash payment the actual purchase price paid and the expenses taxes and other necessary expenditures directly related

to the acquisition of the long-term equity investments are taken as the initial investment cost; for long-term equity

investments acquired by issuing equity securities the fair value of the issued equity securities is taken as the investment

cost.The Company's investments in subsidiaries are accounted for by the cost method in its separate financial statements.When the cost method is adopted long-term equity investments are valued at the initial investment cost. When additional

investments are made the book value of the long-term equity investment cost is increased along with the fair value of the

costs paid for the additional investment and the related transaction costs incurred. Cash dividends or profits declared and

distributed by the investee are recognized as current investment income according to the entitled amount.The Company's investments in joint ventures and associated enterprises are accounted for by the equity method.When the equity method is adopted if the initial investment cost of the long-term equity investment is greater than the

share of the fair value of the investee's identifiable net assets to which the Company is entitled at the time of investment

the book value of the long-term equity investment is not adjusted; if the initial investment cost of the long-term equity

investment is less than the share of the fair value of the investee's identifiable net assets to which the Company is entitled

at the time of investment the difference is adjusted to increase the book value of the long-term equity investment and

stated as the gains/losses for the period in which the investment is acquired.For long-term equity investments subsequently measured by the equity method during the holding period the book

value of the long-term equity investment is increased or decreased in response to the changes to the owners' equity of the

investee. In recognizing the share of the investee's net profit or loss to which the Company is entitled the net profit of the

investee is adjusted and recognized based on the fair value of the investee's identifiable assets at the acquisition of the

investment in accordance with the Company's accounting policies and accounting periods and following the offset of

unrealized internal transaction gains/losses generated from transactions that do not constitute a business with associated

enterprises and joint ventures attributable to the Company according to the entitled proportion (internal transaction losses

belonging to asset impairment losses are fully recognized). The net loss incurred by the investee recognized by the

Company is limited to reducing the book value of the long-term equity investment and other long-term equities that in

substance constitute a net investment in the investee to zero except where the Company has an obligation to bear

852026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

additional losses.For the long-term equity investment with equity method for subsequent measurement the book value of the long-term

equity investment will increase or decrease with the change of the owner's equity of the invested entity.For long-term equity investments accounted for by the equity method other related comprehensive income originally

accounted for by the equity method is treated on the same basis as if the investee had directly disposed of related assets

or liabilities when the equity method is terminated and the owners' equity recognized due to changes in other owners'

equity of the investee other than net gains/losses other comprehensive income and profit distribution is fully transferred

to current investment income when the equity method is terminated.If the remaining equity after the disposal of partial equity is still accounted for by the equity method the other related

comprehensive income originally accounted for by the equity method is treated on the same basis as if the investee had

directly disposed of related assets or liabilities and carried forward proportionately and the owners' equity recognized due

to changes in other owners' equity of the investee other than net gains/losses other comprehensive income and profit

distribution is carried forward proportionately to current investment income.If the common control or significant influence over an investee is lost due to the disposal of a part of equity the

remaining equity after disposal is recognized as a financial asset and the difference between the fair value and the book

value of the remaining equity on the date of loss of common control or significant influence is stated as the current

gains/losses.If the control over an investee is lost due to the disposal of long-term equity investments in part and the remaining

equity after disposal may help exercise common control or exert significant influence over the investee it is instead

accounted for by the equity method the difference between the book value of the disposed equity and the disposal

consideration is stated as investment income and the remaining equity is adjusted as if it had been accounted for by the

equity method since its acquisition; if the remaining equity after disposal cannot help exercise common control or exert

significant influence over the investee it is recognized as a financial asset the difference between the book value of the

disposed equity and the disposal consideration is stated as investment income and the difference between the fair value

and the book value of the remaining equity on the date of loss of control is stated as the current gains/losses.For all transactions involving the disposal of equity by stage until loss of control if they fall out of the package of

transactions each transaction is accounted for separately; if they fall in the package each transaction is accounted for as

a single transaction involving the disposal of a subsidiary and loss of control. The difference between the disposal

consideration for each transaction before the loss of control and the book value of the long-term equity investment

corresponding to the disposed equity is recognized as other comprehensive income and transferred to the gains/losses of

the period in which control is lost when control is lost.

17. Investment properties

An investment property is real estate property purchased with the intention of earning a return on the investment either

through rental income the future resale of the property or both including leased land use rights land use rights held and

862026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

prepared for transfer after appreciation and leased buildings (including buildings built or developed for lease after

completion and buildings under construction or development for lease in the future).The Company measures existing investment properties by the cost model. For investment property buildings for lease

measured by the cost model the same depreciation policy as the Company's fixed assets is adopted and land use rights

for lease are executed according to the same amortization policy as intangible assets.

18. Fixed assets

(1) Recognition criteria for fixed assets

The Company's fixed assets are tangible assets held for commodity manufacturing labor provisions leasing or

management with a service life exceeding one year.Fixed assets are recognized if it is likely that the economic benefits associated therewith might flow to the Company

and their costs can be reliably measured. The Company's fixed assets include houses and buildings machinery and

equipment electronic equipment transportation equipment office equipment etc.

(2) Depreciation methods

Depreciation of fixed assets is provided on a category basis by the straight-line method (or unit-of-production method

double declining balance method sum-of-the-years'-digits method etc.). The depreciation rate is determined based on the

category estimated service life and estimated net residual value rate of the fixed assets. If the components of a fixed asset

hold different useful lives or provide economic benefits to the enterprise in different patterns different depreciation rates or

depreciation methods are chosen for depreciation separately.The depreciation method service life residual value rate and annual depreciation rate of various fixed assets are as

follows:

Annual

Depreciation Depreciation Residual value

Type depreciation rate

method period (year) rate (%)

(%)

Housing and building Straight-line

20 years 0-10 4.5-5

depreciation method

Housing decoration Straight-line

10 years 0-5 9.5-10

depreciation method

Machinery and equipment - Gas Unit-of-production

-0-10-

turbine generator sets method

Machinery and equipment (excluding Straight-line

10-20 years 0-5 4.75-9.50

gas turbine generator sets) depreciation method

Means of transportation Straight-line

5 years 0-5 19-20

depreciation method

Electronic equipment Straight-line

5 years 0-5 19-20

depreciation method

872026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Other equipment Straight-line

5 years 0-5 19-20

depreciation method

(3) Subsequent expenditures

Subsequent expenditures on fixed assets refer to the expenditures for renewal transformation repair etc. incurred

during the use of fixed assets. Subsequent expenditures such as renewal and transformation of fixed assets that meet the

capitalization conditions shall be stated as the cost of fixed assets and the book value of the replaced part shall be

deducted at the same time; repair expenses for fixed assets that do not meet the capitalization conditions shall be stated

as current gains/losses when incurred.

19. Construction in progress

The cost of construction in progress is determined based on actual project expenditures including all necessary project

expenditures incurred during construction borrowing costs to be capitalized before the project reaches its predetermined

usable state and other related expenses etc.The Company's construction in progress is classified into capital construction projects technical transformation

projects comprehensive energy services informatization construction etc.For construction in progress the necessary expenditures incurred before the asset reaches its intended usable state

are recorded as the book value of the fixed asset. If the constructed fixed asset has reached its intended usable state but

the final completion settlement has not been handled it is transferred to fixed assets at the estimated value based on the

project budget cost or actual cost of the project from the date it reaches the intended usable state and the depreciation

of fixed assets is provided in accordance with the Company's depreciation policies for fixed assets. Following the settlement

for completion the original estimated value is adjusted based on the actual cost while the previously provided depreciation

amount is not adjusted.Construction in progress is transferred to fixed assets upon reaching the intended usable state with the criteria as

follows:

Item Criteria and timing of transfer to fixed assets

(1) The main construction projects and supporting projects have been substantially

completed; (2) the construction project has met the intended design requirements and have

been accepted following the inspection by survey design construction supervision and

other authorities; (3) the housing and buildings have been accepted upon inspection by

Housing and building external authorities such as fire protection land and resources and planning; (4) where the

construction project has reached the intended state of use but the final completion

settlement has not been handled it shall be converted into fixed asset at the estimated

value based on the actual project cost from the date it reaches the intended state of use.

(1) The relevant equipment and other supporting facilities have been installed; (2) the

equipment can maintain normal and stable operation for a period of time after

Machinery equipment commissioning; (3) the production equipment can stably produce qualified products for a

period of time; (4) the equipment has been accepted upon inspection by asset management

personnel and users.

882026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

20. Borrowing costs

(1) Recognition principles of capitalization of borrowing costs

Borrowing costs include borrowing interest amortization of discount or premium supporting expenses and exchange

differences arising from borrowings in foreign currency.Borrowing costs are directly attributable to the acquisition construction or production of qualifying assets are

capitalized as part of the cost of those assets; other borrowing costs are recognized as expenses in the period in which

they are incurred and stated as the current gains/losses.Assets qualified for capitalization ("qualifying assets") are fixed assets investment properties inventories etc. that

necessarily take a substantial period of time to get ready for intended use or sale.Capitalization of borrowing costs commences when the following three conditions are satisfied at the same time:

1) Expenditures for the asset occur including expenditures incurred in the form of payment of cash transfer of non-

cash assets or bearing of interest-bearing liabilities for the acquisition construction or production of a qualifying asset;

2) Borrowing costs have been incurred; and

3) The acquisition construction or production activities that are necessary to prepare the asset for its intended use

or sale have commenced.

(2) Capitalization period of borrowing costs

The capitalization period refers to the period from the time when the capitalization of borrowing costs commences to

the time when it ceases excluding the period when the capitalization of borrowing costs is suspended.When the acquired constructed or produced assets eligible for capitalization reaches its intended states of use or

sale the capitalization of borrowing costs ceases.When some projects of the acquired constructed or produced qualifying assets are completed separately and can

be used individually the capitalization of borrowing costs for such assets ceases.If each part of the acquired constructed or produced asset is completed separately but can only be used or sold after

the entire asset is completed the capitalization of borrowing costs ceases when the entire asset is completed.

(3) Period of suspended capitalization

If an abnormal interruption occurs during the acquisition construction or production of a qualifying asset and the

interruption lasts for more than three consecutive months the capitalization of borrowing costs is suspended; if the

interruption is a necessary procedure for the acquired constructed or produced qualifying asset to reach its intended state

of use and sale the capitalization of borrowing costs continues. Borrowing costs incurred during the interruption period are

recognized in the current gains/losses until the acquisition construction or production activities of the asset restart at

which time the capitalization of borrowing costs continues.

892026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(4) Calculation methods for the capitalization rate and capitalized amount of borrowing costs

For specific borrowings obtained for the acquisition construction or production of qualifying assets the capitalized

amount of borrowing costs is determined based on the actual borrowing costs incurred for the specific borrowings in the

current period less the interest income from depositing the unused borrowed funds in banks or the investment income

from temporary investments.Where general borrowings are occupied for the acquisition construction or production of qualifying assets the amount

of borrowing costs to be capitalized for general borrowings is calculated and determined by multiplying the weighted

average of accumulated asset expenditures exceeding the specific borrowings by the capitalization rate of the occupied

general borrowings. The capitalization rate is calculated and determined based on the weighted average interest rate of

the general borrowings.

21. Right-of-use assets

Except for short-term leases and leases of low-value assets the Company recognizes right-of-use assets for leases

at the lease commencement date. The lease commencement date refers to the date when the lessor starts to provide the

leased asset to make it available for use by the Company. Right-of-use assets are initially measured at cost. Such costs

include

(1) The initial measurement amount of the lease liability;

(2) Lease payments made on or before the lease commencement date less any lease incentives enjoyed (if any);

(3) Initial direct costs incurred by the Company; and

(4) Costs expected to be incurred by the Company for dismantling and removing the leased asset restoring the site

where the leased asset is located or restoring the leased asset to the condition agreed in the lease terms excluding the

costs incurred for the production of inventories.The Company calculates the depreciation for right-of-use assets with reference to the depreciation-related provisions

under the Accounting Standard for Business Enterprises No. 4 - Fixed Assets. If the Company can reasonably determine

that the ownership of the leased asset will be obtained at the end of the lease term the right-of-use asset is depreciated

over the remaining service life of the leased asset. If it is impossible to reasonably determine that the ownership of the

leased asset will be obtained at the end of the lease term the right-of-use asset is depreciated over the shorter of the lease

term and the remaining service life of the leased asset.The Company determines whether the right-of-use asset is impaired in accordance with the Accounting Standard for

Business Enterprises No. 8 - Impairment of Assets and performs accounting treatment for the identified impairment losses.

22. Intangible assets

Intangible assets include land use rights patented technologies software etc. which are initially measured at actual

cost.

902026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(1) Valuation methods for intangible assets

1) Initial measurement of intangible assets

Costs of purchased intangible assets include the purchase price relevant taxes and fees and other expenditures

directly attributable to causing the asset to its intended use. If the payment for the purchase of an intangible asset is

deferred beyond normal credit terms and has a financing nature in substance the cost of the intangible asset is subject to

the present value of the purchase price.For an intangible asset acquired from a debtor for debt settlement through debt restructuring its book value is

determined based on the fair value of the relinquished debt and other costs such as taxes that are directly attributable to

causing the asset to its intended use and the difference between the fair value and the carrying amount of the relinquished

debt is recognized in the current gains/losses.Provided that the non-monetary asset exchange has commercial substance and the fair values of both the received

asset and the surrendered asset can be measured reliably the book value of the intangible asset received in a non-

monetary asset exchange is determined based on the fair value of the surrendered asset unless there is conclusive

evidence that the fair value of the received asset is more reliable. For non-monetary asset exchanges that fall out of the

above prerequisites the carrying amount of the surrendered asset and the relevant taxes and fees payable are taken as

the cost of the received intangible asset and no gains/losses are recognized.

2) Subsequent measurement

The service life of an intangible asset is analyzed and judged upon acquisition.For an intangible asset with a finite service life it is amortized on a straight-line basis over the period in which it brings

economic benefits to the enterprise; if it is impossible to foresee the period during which the intangible asset will bring

economic benefits to the enterprise it is regarded as an intangible asset with an indefinite service life and is not amortized.

(2) Estimation of the service life of intangible assets with finite service life

Type Amortization Amortization period Basis

method (years)

Average straight-line Within the validity period of the

Land use right 30-50

method land ownership certificate

Average straight-line

Patented technology 10 Patent certificate

method

Average straight-line

Software 5 Service life of software

method

(3) Basis for determining intangible assets with indefinite service life and procedures for reviewing the service

life

The service life of an intangible asset with an indefinite service life is reviewed. If there is evidence that the period

912026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

during which the intangible asset brings economic benefits to the enterprise is foreseeable its service life is estimated and

amortized in accordance with the amortization policy for intangible assets with finite service life.

(4) Specific criteria for distinguishing between the research stage and development stage

The expenditures of the Company's internal research and development projects are classified into research

expenditures and development expenditures.Research stage: The stage of original and planned investigation and research activities undertaken to acquire and

clarify new scientific or technical knowledge.Development stage: The stage of applying research findings or other knowledge to a plan or design to produce new

or substantially improved materials devices products etc. prior to commercial production or use.Specific criteria for capitalizing expenditures in the development stage

Expenditures in the development stage of an internal research and development project are recognized as intangible

assets when all the following conditions are met:

1) It is technically feasible the completion of the intangible asset will make it available for use or sale;

2) There is an intention to complete the intangible asset and use or sell the same;

3) The means of generating economic benefits by the intangible asset including the ability to prove that there is a

market for the products produced by applying the intangible asset or the intangible asset itself has a market and if the

intangible asset is to be used internally the ability to prove its usefulness;

4) There are sufficient technical financial and other resources to support the development of the intangible asset and

the ability to use or sell the intangible asset; and

5) The expenditures attributable to the development phase of the intangible asset can be measured reliably.

23. Impairment of long-term assets

Long-term assets such as long-term equity investments investment properties measured by the cost model fixed

assets construction in progress right-of-use assets and intangible assets with finite service life are tested for impairment

if there is any indication of impairment at the balance sheet date. If the result of the impairment test indicates that the

recoverable amount of the asset is less than its carrying amount a provision for impairment is made for the difference and

recognized as an impairment loss. The recoverable amount is the higher of the fair value of an asset less the costs of

disposal and the present value of the expected cash flows of the asset in the future. The provision for asset impairment is

calculated and recognized on an individual basis. If it is difficult to estimate the recoverable amount of an individual asset

the recoverable amount of the asset group to which the asset belongs is determined. An asset group is the smallest

identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets

or groups of assets.Goodwill intangible assets with indefinite service life and intangible assets not yet available for use are tested for

922026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

impairment at least at the end of each year.The Company conducts goodwill impairment testing. The carrying amount of goodwill arising from business merger is

allocated to relevant asset groups on a reasonable basis from the acquisition date; if it is difficult to allocate it to relevant

asset groups it is allocated to relevant asset group portfolios. In allocating the carrying amount of goodwill the Company

allocates it based on the relative benefits that the relevant asset groups or portfolios of asset groups can obtain from the

synergies of the business merger and conducts the goodwill impairment testing on such basis.In testing a relevant asset group or a portfolio of asset groups containing goodwill for impairment if there is any

indication of impairment for the group or the portfolio related to goodwill such group or portfolio not containing goodwill is

tested for impairment first to calculate its recoverable amount which is compared with the relevant carrying amount to

recognize the corresponding impairment loss. Then the asset group or the portfolio of asset groups containing goodwill is

tested for impairment and the carrying amount of such groups or portfolios (including the allocated carrying amount of

goodwill) is compared with its recoverable amount. If the recoverable amount of the relevant group or portfolio is lower

than its carrying amount an impairment loss on goodwill is recognized. Once the above asset impairment loss is

recognized it will not be reversed in subsequent accounting periods.After the asset impairment loss is determined recoverable value amounts would not be returned in future.

24. Long-term deferred expenses

(1) Amortization methods

The Company's long-term prepaid expenses include major repair expenditures renovation costs etc. Long-term

prepaid expenses refer to the expenses that have already been incurred with a benefit period of more than one year

(excluding one year). Long-term prepaid expenses are amortized in installments over the benefit period of the expense

items. If a long-term prepaid expense item cannot benefit subsequent accounting periods the unamortized carrying value

of the item is fully transferred to the current gains/losses.The renovation of premises rented under operating leases is recognized as long-term prepaid expenses and amortized

over the shorter of the following two periods:

1) The estimated service life of the renovation (the estimated time until the next renovation);

2) The estimated remaining service life of the main structure of the building.

Subsequent expenditures that fall out of the recognition criteria for fixed assets such as major repair expenses are

recognized as long-term prepaid expenses in the year of occurrence and amortized in installments over the benefit period

subsequently.

(2) Amortization period

Item Amortization period

Renovation of leased fixed assets The shorter of the estimated service life of the renovation and the estimated remaining

932026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Amortization period

service life of the main structure of the building

Major repair expenditure on fixed

Major overhaul cycle of gas generator sets

assets

25. Employee compensation

The employee benefits of the Company include short-term employee remuneration post-employment benefits

termination benefits and other long-term benefits.

(1) Accounting treatments of short-term compensation

During the accounting period when employees provide services to the Company the Company recognizes the actual

short-term employee remuneration incurred as a liability and includes the same in the current gains/losses or the cost of

related assets.For social insurance premiums and housing provident funds paid by the Company for its employees as well as trade

union funds and employee education funds withdrawn in accordance with regulations the Company calculates and

determines the corresponding amount of employee benefits based on the prescribed basis and percentage during the

accounting period when employees provide services to the Company.If the employee benefits are non-monetary benefits and can be reliably measured they are measured at fair value.

(2) Accounting treatments of post-employment benefits

Defined contribution plans

The Company pays basic pension insurance and unemployment insurance for its employees in accordance with

relevant regulations of the local government. During the accounting period when employees provide services to the

Company the amount payable is calculated based on the local payment basis and proportion recognized as a liability

and stated as the current gains/losses or the cost of related assets.In addition to basic pension insurance the Company has also established an enterprise annuity payment system and

enterprise annuity plan in accordance with relevant policies of the national enterprise annuity system. The Company makes

contributions to the local social insurance institution / annuity plan in a certain percentage of the total wages of employees

where the corresponding expenditures are stated as the current gains/losses or the cost of related assets.

(3) Accounting treatments of dismissal benefits

The Company recognizes the employee benefits liability arising from termination benefits and states the same as the

current gains/losses when it fails to unilaterally withdraw the termination benefits arising from the labor relationship

termination plan or reduction proposal or when it recognizes the costs or expenses related to a restructuring involving the

payment of termination benefits whichever is earlier.

942026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

26. Lease liabilities

Except for short-term leases and leases of low-value assets the Company initially measures the lease liability at the

present value of the lease payments that are not paid at the lease commencement date. In calculating the present value

of the lease payments the Company uses the interest rate implicit in the lease as the discount rate; if the interest rate

implicit in the lease cannot be determined the Company uses the incremental borrowing rate as the discount rate.Lease payments refer to the payments made by the Company to the lessor in connection with the right to use the

leased assets during the lease term including:

(1) Fixed payment (including substantial fixed payment) and the relevant amount after deducting the lease incentive

if any;

(2) Variable lease payment amount depending on index or ratio;

(3) The Company reasonably determines the exercise price of purchase option to be exercised;

(4) Lease term reflects the amount that needs to be paid if the Company exercises the option to termination of leases;

and

(5) The amount expected to be paid according to the residual value of the guarantee provided by the Company.

Variable lease payments that depend on an index or a rate are determined at initial measurement based on the index

or rate as at the lease commencement date. Variable lease payments not stated as the measurement of the lease liability

are recognized in the gains/losses or the cost of underlying assets in the period in which they are incurred.After the lease commencement date the Company calculates the interest expenses of the lease liabilities for each

period of the lease term at a fixed cyclical interest rate and includes it in the current profit or loss or related asset costs.After the lease commencement date if any of the following circumstances occurs the Company shall remeasure the

lease liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been

reduced to zero but the lease liabilities still needs to be further reduced the Company shall state the difference in the

current gains/losses:

(1) If lease term changes or the valuation result of purchase option changes the Company remeasures lease liabilities

based on the present value of the changed lease payments and the revised discount rate;

(2) If the estimated payable amount according to the guarantee residual value or the index or proportion used to

determine the lease payment changes the Company remeasures the lease liabilities according to the present value

calculated by the changed lease payment amount and the original discount rate. If the change in lease payments results

from a change in floating interest rates a revised discount rate is used to calculate the present value.Lease liabilities are presented as current liabilities or non-current liabilities in the balance sheet based on their liquidity.The closing carrying amount of non-current lease liabilities due for settlement within one year from the balance sheet date

is reflected in the item "Non-current Liabilities due within One Year".

952026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

27. Estimated liabilities

(1) Recognition criteria for estimated liabilities

When obligations related to contingencies such as pending litigation or arbitration and product quality warranties

simultaneously meet the following conditions the Company recognizes the same as liabilities: the obligation is a present

obligation of the Company; the fulfillment of obligation is likely to result in the outflow of economic benefits; and the amount

of the obligation can be measured reliably.

(2) Measurement methods for estimated liabilities

Estimated liabilities are initially measured in accordance with the optimal estimate of the necessary expenses for the

fulfillment of the current obligation with the risks related to contingent matters uncertainty the time value of money and

other factors taken into consideration. The Company reviews the best estimate at the balance sheet date and adjusts the

carrying amount of the estimated liability.The best estimate is handled in the following circumstances:

In the case of a continuous range (or interval) for the necessary expenses and probabilities for all the outcomes within

this range are equal the best estimate is determined at the median of the range which is the average of the upper and

lower limits.In the case of no continuous range (or interval) for the necessary expenses or in the case of a continuous range

where the probabilities for all outcomes within this range are not equal if the contingency involves a single item the best

estimate is determined based on the most likely outcome; if the contingency involves multiple items the best estimate is

calculated and determined based on all possible outcomes and the associated probabilities.When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is expected to be

compensated by a third party the compensation should be separately recognized as an asset only when it is virtually

certain that the reimbursement will be obtained. Besides the amount recognized for the reimbursement should not exceed

the book value of the estimated liabilities.Estimated liabilities expected to be paid within one year from the balance sheet date are presented as current liabilities.

28. Income

Accounting policies adopted for revenue recognition and measurement disclosed by business type. The Company's

income is mainly derived from the following business types:

* Income from electricity generation and sales; * Income from comprehensive energy services * Other income.

（1） General principles

The Company recognizes income when it has fulfilled its performance obligations in the contract that is when a

customer obtains control of the relevant goods or services. Obtaining control over related goods or services means being

962026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

able to lead the use of the goods or the provision of such services and obtain almost all of the economic benefits from it.Performance obligation refers to the commitment of the Company to transfer distinct goods to the customer in the

contract. The Company's performance obligation falls within a period of time if one of the following conditions is met;

otherwise it belongs to a point in time: * The customer obtains and consumes the economic benefits brought by the

Company's performance at the same time as the Company performs; * the customer can control the goods under

construction during the Company's performance; * the goods produced during the Company's performance have

irreplaceable uses and the Company has the right to collect payments for the cumulative completed performance portion

during the entire contract term.For performance obligations over a period of time the Company recognizes the income according to the performance

progress during such period. When the performance progress cannot be reasonably determined if the costs already

incurred by the Company are expected to be compensated the income is recognized based on the amount of costs already

incurred until the performance progress can be reasonably determined.For performance obligations at a point in time the Company recognizes the income at the point when the customer

obtains control of the relevant goods. When judging whether the customer has obtained control over the goods the

Company comprehensively considers the following indicators: * The Company has a right to receive the payment for the

goods that is the customer has a obligation to pay for the goods; * the Company has transferred the legal title of the

goods to the customer that is the customer has the legal title of the goods; * the Company has transferred physical

possession of the goods to the customer that is the customer has physical possession of the goods; * the Company has

transferred the significant risks and rewards of ownership of the goods to the customer that is the customer has obtained

the significant risks and rewards of ownership of the goods; * the customer has accepted the goods; * other indicators

showing that the customer has obtained the control over the goods.If the contract contains two or more performance obligations at the commencement date of the contract the Company

allocates the transaction price to each single performance obligation based on the relative proportion of the stand-alone

selling price of the goods or services promised under each single performance obligation. Income is measured at the

transaction price of each single performance obligation.The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for

transferring goods or services to a customer excluding amounts collected on behalf of third parties and amounts expected

to be refunded to the customer. In determining the transaction price the Company considers the impact of factors such as

variable consideration and the existence of a significant financing component in the contract.In case of variable consideration in the contract the Company determines the best estimate of the variable

consideration based on the expected value or the most likely amount. The transaction price including variable consideration

shall not exceed the amount for which it is very likely that a significant reversal in the amount of cumulative income

recognized may not occur when the uncertainty associated with the variable consideration is subsequently resolved. At

each balance sheet date the Company re-estimates the amount of variable consideration to be stated as the transaction

price.

972026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

In case of a significant financing component in the contract the Company determines the transaction price based on

the payable amount assumed to be paid in cash by the customer when obtaining control over the goods and amortizes

the difference between the determined transaction price and the consideration amount promised in the contract during the

contract period using the effective interest method at the discount rate that discounts the nominal amount of the contract

consideration to the cash selling price of the goods. On the commencement date of the contract no significant financing

component in the contract is taken into account if the interval between the customer obtaining control over the goods or

services and the customer's payment is expected to be no more than one year.

（2） Principal Person in Charge and Agent

The Company determines its identity in transactions is a principal person in charge or an agent based on whether it

has control over the goods before transfer to customers. If the Company is able to control the goods before transfer to

customers the Company is the principal person in charge and recognizes income based on the total amount of

consideration received or receivable; otherwise it is an agent and recognizes income based on the amount of commission

or fees it expects to be entitled to which shall be determined based on the net amount of the total consideration received

or receivable after deducting the price payable to other relevant parties or based on the established commission amount

or proportion.

（3） Sales with Quality Warranty Terms

For sales with quality assurance clauses if the quality assurance provides a separate service in addition to assuring

the customer that the goods or services sold meet the established standards the quality assurance constitutes a single

performance obligation. Otherwise the Company conducts accounting treatment for the quality warranty liabilities in

accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.

(4) Specific principles

The Company recognizes income when it has fulfilled its performance obligations in the contract that is when a

customer obtains control of the relevant goods or services. Obtaining control over related goods or services means being

able to lead the use of the goods or the provision of such services and obtain almost all of the economic benefits from it.

1) Income from electricity generation and sales

When the electricity is transmitted to the power grid company stipulated in the power sales contract that is the power

grid company obtains control of the power the Company recognizes the realization of sales income.

2) Income from comprehensive energy services

The Company's comprehensive energy services are mainly divided into energy storage power station business

electricity facilities commissioning installation and construction business and power project operation and maintenance

business. The relevant service content and main business entities are as follows:

Business type Service content

982026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(1) Independent energy storage power station business (for grid companies): As a

participant in frequency regulation and spot markets the Company seeks returns

by providing ancillary services such as frequency regulation and spot energy

trading and settles with the power trading center. Frequency regulation returns are

the main source of income for independent energy storage power stations in

1. Energy storage power station

Guangdong at the current stage.business

(2) Commercial and industrial energy storage power station business (for

commercial and industrial enterprises): The Company reduces the electricity cost

of commercial and industrial enterprises through peak-valley arbitrage and shares

energy-saving benefits proportionally with commercial and industrial enterprises

through Energy Management Contracting (EMC).

(1) Specialized contracting projects such as power transmission and

transformation projects and electromechanical installation projects;

(2) Electrical equipment calibration relay protection setting subsystem and entire

2. Electricity facilities set start-up commissioning testing etc. before operation for newly built or

commissioning installation and reconstructed generator sets substations and energy storage systems; and

construction business (3) EPC general contracting business for energy storage and photovoltaic power

stations ("turnkey project" management model adopted in execution of contracts

with the construction unit and general contracting for the engineering project

design procurement construction or design and construction stages).With "technical labor export + professional management" as the core the

3. Power project operation and

Company provides a package of services such as operation and maintenance

maintenance business

overhaul and production management for power plant and power grid customers.* Specific Accounting Policies Recognition Timing and Basis for Recognition of all Types of Business

Income

Income Income

Business type Income recognition policy recognition recognition

timing basis

In each period

of FM auxiliary Settlement

services and statement of

commercial and the power

(1) Such contracts are generally single performance industrial exchange

obligations. energy storage center

(2) The customer receives and consumes the services Electricity

benefits arising from the Company's performance income is quantity

1. Energy storage power which is deemed as the performance obligation over recognized confirmation

station business a period of time. when the form

(3) Such contracts are regarded as service contracts customer Electricity bill

with clear output indicators and the Company concerned settlement

determines the performance progress of providing obtains the statement

services according to the output method. control of the Energy-saving

services and sharing income

the confirmation

performance is form

completed.

(1) In distinguishing between a single performance

obligation and multiple performance obligations the

Company's power engineering construction business The Company

Engineering

generally belongs to a single performance obligation. recognizes the

progress

(2) From the perspective of the point-in-time method monthly income

settlement

and over-time method for income recognition the during the

2. Electricity facilities statement

Company's power engineering construction business construction

commissioning Engineering

is generally deemed as the customer being able to period

installation and node

control the goods in progress during the Company's according to the

construction business acceptance

performance making it a performance obligation completion

form

over time hence the application of over-time method progress and

Supervision

in income recognition. contract

report etc.

(3) From the perspective of the input method or amount.

output method for performance progress the

Company's power engineering construction business

992026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

generally involves the participation of engineering

supervision and cost consulting agencies to

calculate the engineering workload and output value

where the Company adopts the "output method" to

confirm the performance.

(4) From the perspective of the gross method or net

method for income recognition if acting as the

principal person in charge the Company recognizes

revenue based on the total amount of consideration

received or receivable (i.e. the gross method); if

acting as an agent income shall be recognized

based on the amount of commission or handling fee

expected to be entitled to receive (i.e. the net

method). For the business of materials supplied by

the construction party since the materials supplied

by the construction party are purchased and

provided to the contractor by the construction party

and the construction party is responsible for their

quality and price the contractor does not assume

the quality risk price fluctuation risk etc. Under this

type of business the contractor acts as an agent

and recognizes revenue according to the

commission or handling fee it expects to be entitled

to receive that is recognizes revenue based on the

net amount of the total consideration received or

receivable after deducting the price payable to other

related parties.

(1) Such contracts are generally single performance In each period

obligations. of operation and

(2) The customer receives and consumes the maintenance

benefits arising from the Company's performance services

Service review

which is deemed as the performance obligation over income is

form

a period of time. recognized

3. Power project attendance

(3) Such contracts are regarded as service contracts when the

operation and sheet

with clear output indicators and the Company customer

maintenance business confirmed by

determines the performance progress of providing obtains the

both parties

services according to the output method. control of the

etc.services and

the

performance is

completed.* Methods and basis for estimated income recognition

For energy storage power station business at the end of each settlement period the Company estimates the

income realized in the current period without a formal settlement documents based on the accomplishment of charge

and discharge and FM service volume as well as the data such as market clearing price and performance coefficient.For electricity facility commissioning installation and construction business at the end of each settlement period

the Company recognizes estimated income based on the output value of the actual performance progress completed at

the project site in the current period.For power project operation and maintenance business at the end of each settlement period the Company

estimates the income based on the number of man-days occurred at the project site in the current period as well as the

man-day unit price of personnel at all levels under the relevant contract.On the balance sheet date if the performance progress cannot be reasonably determined and the costs incurred

are expected to be recovered the income shall be recognized based on the amount of costs incurred until the

1002026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

performance progress can be reasonably determined. In the period when the Company obtains the formal settlement

documents it shall offset the operating income recognized previously on an estimated basis and recognize the operating

income for the current period based on the formal settlement amount. The difference between the estimated amount and

the formal settlement amount shall be used to adjust the operating income in the period when the settlement documents

are obtained.

29. Government subsidies

(1) Type

Government grants are monetary assets and non-monetary assets obtained by the Company from the government

without consideration and are divided into government grants related to assets and government grants related to income.Among them government grants related to assets refer to government grants obtained by the Company to purchase

construct or otherwise form long-term assets while government grants related to income refer to government grants other

than those related to assets. If the target of the grant is not clearly specified in the government documents the Company

makes judgement in line with the above-mentioned principles and if it is difficult to distinguish it is classified as a

government grant related to income as a whole.

(2) Timing

If there is evidence at the end of the period that the Company can meet the conditions under the financial support

policies and it is expected to receive the financial support funds the government grant are recognized as per the receivable

amount. Otherwise government grants are recognized when actually received.If a government grant is a monetary asset it is measured at the amount received or receivable. If a government grant

is a non-monetary asset it is measured at fair value; if the fair value cannot be reliably obtained it is measured at a nominal

amount (RMB 1). A government grant measured at a nominal amount is directly stated as the current gains/losses.

(3) Accounting treatment

Government grants related to assets are offset against the carrying amount of the relevant assets or recognized as

deferred income. If recognized as deferred income the grants are stated as current gains/losses in installments on a

reasonable and systematic basis over the service life of the said assets (those related to the daily activities of the Company

stated as other income; those not related to the daily activities of the Company stated as non-operating income).Government grants related to income if used to compensate for the relevant costs expenses or losses of the

Company in subsequent periods are recognized as deferred income and are recognized as current gains/losses during

the period when such costs expenses or losses are recognized (those related to the daily activities of the Company stated

as other income; those not related to the daily activities of the Company are stated as non-operating income) or offset

against such costs expenses or losses; if used to compensate for the relevant costs expenses or losses already incurred

by the Company are directly stated as current gains/losses (those related to the daily activities of the Company stated as

other income; those not related to the daily activities of the Company stated as non-operating income) or offset against

1012026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

such costs expenses or losses.The Company obtains interest grants on policy-related concessional loans in two different ways: the interest subsidy

funds are allocated by the government either to the lending bank or directly to the Company. The respective accounting

treatment is carried out as follows:

1) Where the government allocates the funds to the lending bank and the bank provides a loan to the Company at a

policy-related preferential interest rate the actual amount of the loan received is taken as the entry value and the borrowing

costs are calculated based on the loan principal and the policy-related preferential interest rate.

2) Where the government allocates the funds directly to the Company the grants are offset against borrowing costs.

30. Deferred tax assets and deferred tax liabilities

Deferred tax assets that can be recognized for deductible temporary differences are subject to the taxable profit

available in the future against which the deductible temporary differences can be utilized. For deductible losses and tax

credits that can be carried forward to subsequent years the corresponding deferred tax assets are recognized to the extent

that it is probable that future taxable profit will be available against which the deductible losses and tax credits can be

utilized.For taxable temporary differences deferred tax liabilities are recognized except in special circumstances.Special circumstances where deferred tax assets or deferred tax liabilities are not recognized include the initial

recognition of goodwill and other transactions or events occurred outside of a business merger and affect neither

accounting profit nor taxable profit (or deductible losses) at the time of occurrence.When the Company has a legal right to settle on a net basis and intends to settle with net amount or acquire assets

and pay off liabilities simultaneously the Company reports the net amount of current income tax assets and current tax

liabilities after offsetting.When the Company has the legal right to settle current income tax assets and current income tax liabilities on a net

basis and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection

authority on the same taxpayer or on different taxpayers but in each important future period of reversal of deferred tax

assets and liabilities the involved taxpayer intends to settle current income tax assets and liabilities on a net basis or to

obtain assets and settle liabilities at the same time the deferred tax assets and deferred tax liabilities of the Company are

presented at the net amount after offset.

31. Leases

（1） Identification of Leases

On the commencement date of the contract the Company assesses whether the contract is or contains a lease. If a

party to the contract transfers the right allowing the control over the use of one or more assets that have been identified

within a certain period in exchange for a consideration such contract is a lease or includes a lease.

1022026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

If a contract contains several separate leases the Company separates the contract and accounts for each separate

lease. If a contract contains both lease and non-lease components the Company separates the lease and non-lease

components and accounts for them respectively. Each lease component is accounted for in accordance with the lease

standard and the non-lease components are accounted for in accordance with other applicable accounting standards for

business enterprises.

（2） The Company as a lessee

1） Lease recognition

Except for short-term leases and leases of low-value assets the Company recognizes right-of-use assets and lease

liabilities for leases on the lease commencement date.The right-of-use asset refers to the right of the Company as a lessee to use the leased asset during the lease term

which is initially measured at cost. The cost includes: * The initial measurement amount of the lease liability; * the lease

payments made on or before the lease commencement date less the amount of lease incentives enjoyed; * the initial

direct costs incurred; * the expected costs to be incurred for dismantling and removing the leased asset restoring the site

where the leased asset is located or restoring the leased asset to the state agreed in the lease terms (except those

incurred for the production of inventories). If the Company remeasures the lease liability in accordance with the relevant

provisions of the lease standard the carrying amount of the right-of-use asset is adjusted accordingly.The Company calculates and withdraws depreciation for right-of-use assets on a straight-line basis according to the

expected consumption pattern of economic benefits related to such assets. If it can be reasonably determined that the

ownership of the leased asset can be obtained at the end of the lease term the depreciation is withdrawn over the

remaining service life of the leased asset; if it is impossible to reasonably determine that the ownership of the leased asset

can be obtained at the end of the lease term the depreciation is calculated and withdrawn over the shorter of the lease

term and the remaining service life of the leased asset. The amount of depreciation withdrawn is stated as the cost of

relevant assets or the current gains/losses according to the purpose of the right-of-use assets.The Company initially measures the lease liabilities at the present value of the lease payments that are not paid on

the commencement date of the lease. The lease payments include: (1) Fixed payments and in-substance fixed payments

less any lease incentives receivable; (2) variable lease payments depending on an index or a rate; (3) exercise price of a

purchase option if the Company is reasonably certain to exercise that option; (4) payments of penalties for terminating the

lease if the lease term reflects the Company exercising an option to terminate the lease; and (5) amounts expected to be

paid by the Company as per the balance of value guarantees.In calculating the present value of lease payments the Company uses the interest rate implicit in the lease as the

discount rate. If the interest rate implicit in the lease cannot be determined the Company's incremental borrowing rate is

used as the discount rate. The Company calculates the interests on the lease liabilities for each period during the lease

term with a constant periodic rate of interest and states the same as current gains/losses except for those that shall be

capitalized.Subsequent to the commencement date of the lease the Company increases the carrying amount of the lease liability

1032026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

when recognizing the interest on such liability and reduces the carrying amount of such liability when making lease

payments. The Company remeasures the lease liability at the present value of the modified lease payments in case of any

change to in-substance fixed payments any change to the amounts expected to be payable under a residual value

guarantee any change to future lease payments resulting from the change in an index or a rate used to determine those

payments or any change to the assessment or actual exercise of a purchase option an renewal option or a termination

option.

2） Short-term lease and low-value asset lease

For short-term leases with a term of not more than 12 months and leases of low-value assets where the individual

leased asset is of low value when it is brand new the Company chooses not to recognize right-of-use assets and lease

liabilities. The Company recognizes the lease payments associated with short-term leases and leases of low-value assets

as expenses on a straight-line basis or another systematic and rational basis over the lease term in the cost of relevant

assets or current gains/losses.

（3） The Company as a lessor

As a lessor the Company classifies a lease as a finance lease if it transfers substantially all the risks and rewards

incidental to the ownership of an underlying asset while all other leases are classified as operating leases.

1） Finance lease

On the commencement date of the lease the Company recognizes a finance lease receivable for a finance lease and

derecognizes the finance lease asset. When the Company initially measures the finance lease receivable the net

investment in the lease is used as the entry value of the finance lease receivable.The net investment in the lease is the sum of the unguaranteed residual value and the present value of the lease

payments receivable that are not received on the commencement date of the lease discounted at the interest rate implicit

in the lease. The Company calculates and recognizes interest income for each period during the lease term at a constant

periodic rate of interest. Variable lease payments received by the Company that are not stated as the net investment for

measurement in the lease are recognized in the gains/losses for the period of occurrence.

2） Operating lease

During each period of the lease term the Company recognizes lease receipts from operating leases as rental income

on a straight-line basis.Initial direct costs incurred by the Company in relation to an operating lease are capitalized to the cost of the underlying

asset and are recognized as an expense over the lease term on the same basis as the lease income. Variable lease

payments received by the Company in relation to an operating lease that are not stated as the lease receipts are stated

as gains/losses for the period of occurrence.In case of any modification to the operating lease the Group regards it as a new lease for accounting treatment from

the effective date of the change. The advance receipt or the lease receivable related to the lease prior to the change is

recognized as the payment receivable of the new lease.

1042026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

32. Special reserves

The production safety expenses withdrawn by the Company for its electricity generation business in accordance with

national regulations are stated as the cost of relevant products or current gains/losses and also stated as the "special

reserve" account. The current provision standard is based on the operating income of the previous year and the amount

to be withdrawn for the current year is determined by adopting the excess regressive method and is withdrawn evenly on

a monthly basis stated as the cost of relevant products or current gains/losses and also stated as the "special reserve"

account. When the Company uses the special reserve if it is an expenditure it directly offsets the special reserve; if it

forms a fixed asset it is recognized as a fixed asset when the relevant asset reaches the intended state of use; while the

special reserve is offset against the cost of forming the fixed asset and the accumulated depreciation of the same amount

is recognized. The fixed asset is no longer depreciated in subsequent periods.

33. Major changes in accounting policies and accounting estimates

There was no material change in accounting policies and accounting estimates during the Reporting Period.VI. Taxation

1. Main tax types and tax rates

Taxation Tax basis Tax rate

The output tax is calculated on the basis of the sales of goods

and taxable labor income calculated in accordance with the tax

Value-added tax 13% 、9% 、6%、

law. After deduction of the input tax that can be deducted in the 5% 、3%

current period the difference is the value-added tax payable.Urban maintenance Calculated and paid based on the value-added tax and

7%

and construction tax consumption tax actually paid

Calculated and paid based on the value-added tax and

Education surcharge 3%

consumption tax actually paid

Local education Calculated and paid based on the value-added tax and

2%

surcharge consumption tax actually paid

Calculated and paid at

25% of the taxable

income except for the

Enterprise income tax Calculated and paid based on taxable income enterprises enjoying tax

preferences as described

below.

(1) Private use of a self-owned property: Based on the original

value of the property less 10%-30%; 1.2% (ad valorem) or 12%

Property tax (based on rent)

(2) Lease of a self-owned property: Based on the rental income

of the property

Land use tax in urban Calculated and paid at RMB 2-8/square meter of the land area

1052026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Taxation Tax basis Tax rate

areas actually occupied by industrial land in Nanshan District

Shenzhen; calculated and paid at RMB 1/square meter of the

land area actually occupied by industrial land in Zhongshan City

Overseas taxes are calculated in accordance with the tax laws

Overseas taxes

and regulations of the country or region concerned

The taxpayers with different corporate income tax rates are as follows:

Name of entity Income tax rate

The Company 15%

2. Tax incentives

(1) Enterprise income tax

The Company obtained the National High-tech Enterprise Certificate (No. GR202444200365) valid for 3 years from

2024 to 2026 during which the Company enjoys the high-tech enterprise income tax preference and pays enterprise

income tax at a reduced rate of 15%.

(2) Value-added tax

Approval

Company Basis of relevant laws Approval Reduction/exemption Validity

Taxation document

name and policies authority range period

number

Taxation

Bureau for

Announcement of the Qianhai

2026

Ministry of Finance Shenzhen-

Announcement

and the State Hong Kong

No. 11 of the

Shennan Effective

Taxation Modern VAT exemption for

Value- Ministry of Power from

Administration on Service cross-border

added tax Finance and Engineering January 1

Value-added Tax and Industry taxable behaviors

the State

Company 2026

Consumption Tax Cooperation

Taxation

Policies for Export Zone the

Administration

Businesses State

Taxation

Administration

1062026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

VII. Notes to items in consolidated financial statements

1. Monetary funds

Unit: RMB

Item Ending balance Beginning balance

Cash on hand 29648.02 30635.37

Bank deposits 115534685.53 133266301.05

Other monetary assets 131432044.73 8293402.62

Total 246996378.28 141590339.04

Of which: Total amount of funds deposited

6663758.896030197.06

overseas

The details of monetary funds that are restricted from use due to mortgage pledge or freezing as well as monetary

funds kept overseas with restricted repatriation are as follows:

Item Ending balance Beginning balance

Guarantee deposits etc. 127729947.70 8334730.76

Co-managed account funds 4619341.40

Total 132349289.10 8334730.76

Besides there are no other funds with restricted use due to mortgage pledge or freezing or with potential recovery

risks in the balance of monetary funds as of June 30 2026.

2. Financial assets held for trading

Unit: RMB

Beginning

Item Ending balance

balance

Financial assets measured at fair value through current profit or loss 162600453.64 291000000.00

Including: Investment in debt instruments

Investment in equity instruments

Derivative financial instruments

Others (Note 1) 162600453.64 291000000.00

Financial assets designated to be measured at fair value through current

50643644.4050000000.00

gains/losses

Including: Investment in debt instruments

Investment in hybrid instruments

Others (Note 2) 50643644.40 50000000.00

Total 213244098.04 341000000.00

1072026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Note 1: Other tradable financial assets of the Company refer to structural deposits and monetary funds reserved in

commercial banks. As of June 30 2026 the balance of structural deposits and monetary funds was RMB 162600453.64.Note 2: Other financial assets of the Company designated to be measured at fair value through current gains/losses

refer to the investments in private equity funds.

3. Notes receivable

(1) Presentation of notes receivable by category

Unit: RMB

Item Ending balance Beginning balance

Bank acceptance bill 400000.00

Total 400000.00

(2) Disclosure by provision method for bad debts

Unit: RMB

Ending balance

Book balance Provision for bad debts

Type

Provision

Percenta Book value

Amount Amount percentage

ge (%)

(%)

Provision set aside for bad

debts by the single item

Provision for bad debts

accrued by credit risk 400000.00 100.00 400000.00

portfolio

Including: Bank acceptance

400000.00100.00400000.00

bills

Total 400000.00 100.00 400000.00

(Continued)

Beginning balance

Book balance Provision for bad debts

Type Provision

Percenta Book value

Amount Amount percentage

ge (%)

(%)

Provision set aside for bad

debts by the single item

Provision for bad debts

accrued by credit risk

1082026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Beginning balance

Book balance Provision for bad debts

Type Provision

Percenta Book value

Amount Amount percentage

ge (%)

(%)

portfolio

Including: Bank acceptance

bills

Total

1） There was no provision for bad debts of notes receivable accrued on an individual basis in the current

period

2） Provision set aside for bad debts of notes receivable by portfolio

Ending balance

Name Provision for bad Provision percentage

Book balance

debts (%)

Portfolio 1: Bank Acceptance Bills

400000.00

Portfolio

Total 400000.00

(3) Provision for bad debts of notes receivable withdrawn recovered or reversed for the current period

(4) No pledged notes receivable of the Company by the end of the current period

(5) No notes receivable endorsed or discounted by the Company and not yet due on the balance sheet date

by the end of the current period

(6) No actual write-off of notes receivable for the current period

4. Accounts receivable

(1) Disclosure by aging

Unit: RMB

Aging Ending book balance Beginning book balance

Within 1 year (inclusive) 84387550.20 81840666.05

1-2 years 4197022.39 8839661.81

2-3 years 15213230.04 21358368.01

Over 3 years 27989666.65 18100707.87

Total 131787469.28 130139403.74

1092026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(2) Disclosure by provision method for bad debts

Unit: RMB

Ending balance

Book balance Provision for bad debts

Type

Provision

Percentag Book value

Amount Amount percentage

e (%)

(%)

Provision set aside for

bad debts by the single 17208128.63 13.06 17208128.63 100.00

item

Provision for bad debts

accrued by credit risk 114579340.65 86.94 5259035.53 4.59 109320305.12

portfolio

Total 131787469.28 100.00 22467164.16 17.05 109320305.12

(Continued)

Beginning balance

Book balance Provision for bad debts

Type

Provision

Percentag Book value

Amount Amount percentage

e (%)

(%)

Provision set aside for

bad debts by the single 17208128.63 13.22 17208128.63 100.00

item

Provision for bad debts

accrued by credit risk 112931275.11 86.78 3099877.82 2.74 109831397.29

portfolio

Total 130139403.74 100.00 20308006.45 15.60 109831397.29

Accounts receivable with provision for bad debts on an individual basis:

Ending balance

Name Provision for Provision Reasons for the

Book balance

bad debts percentage (%) provision

China Machinery Engineering Estimated to be

11600475.0711600475.07100.00

Corporation (CMEC) irrecoverable

PowerChina Hubei Electric Estimated to be

2080000.002080000.00100.00

Engineering Co. Ltd. irrecoverable

Historical legacy

Shenzhen Petrochemical Bonded

3474613.06 3474613.06 100.00 issues from a long

Oil Trade Co. Ltd.time ago

Estimated to be

Other small-amount receivables 53040.50 53040.50 100.00

irrecoverable

Total 17208128.63 17208128.63 100.00

Accounts receivable with provision for bad debts on a portfolio basis:

1102026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending balance

Project

Book balance Provision for bad debts Provision percentage (%)

Portfolio 2: Receivables from

61744388.17

electricity generation and sales

Portfolio 3: Receivables from

52834952.485259035.539.95

comprehensive energy services

Total 114579340.65 5259035.53 4.59

(3) Provision for bad debts accrued recovered or reversed for the current period

Unit: RMB

Changes in the current period

Beginning

Type Recovered or Charge-off or Ending balance balance Provision

reversed write-off

Accounts

receivable with

expected credit

losses 17208128.63 17208128.63

withdrawn on

an individual

basis

Accounts

receivable with

expected credit

3099877.822159157.715259035.53

losses accrued

by credit risk

portfolio

Total 20308006.45 2159157.71 22467164.16

Of which there was no recovery or reversal of provision for bad debts with significant amounts in the current period.

(4) No actual write-off of accounts receivable for the current period

(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets

Unit: RMB

Ratio to the Ending balance

total amount of provision for

Ending Ending balances of ending bad debts of

Ending balance of

balance of of accounts balance of accounts

Unit accounts

contract receivable and accounts receivable and

receivable

assets contract assets receivable provision for

and contract impairment of

assets (%) contract assets

Shenzhen Power

Supply Bureau 61744388.17 61744388.17 44.42

Co. Ltd.China Machinery

Engineering

41350479.0441350479.0429.7515956994.97

Corporation

(CMEC)

Guangdong 7796560.54 7796560.54 5.61

1112026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ratio to the Ending balance

total amount of provision for

Ending Ending balances of ending bad debts of

Ending balance of

balance of of accounts balance of accounts

Unit accounts

contract receivable and accounts receivable and

receivable

assets contract assets receivable provision for

and contract impairment of

assets (%) contract assets

Power Grid Co.Ltd.Shenzhen Energy

6535090.736535090.734.70

Group Co. Ltd.China

Construction

Science and

4104518.044104518.042.95

Industry

Corporation

Limited

Total 117426518.48 4104518.04 121531036.52 87.43 15956994.97

5. Contract assets

(1) Details of contract assets

Unit: RMB

Ending balance Beginning balance

Provision Provision

Item

Book balance for bad Book value Book balance for bad Book value

debts debts

Project

progress 5428612.88 5428612.88 20224907.48 20224907.48

payment

Engineering

quality 1780664.43 1780664.43 1216764.24 1216764.24

deposit

Total 7209277.31 7209277.31 21441671.72 21441671.72

(2) Major changes of book value during the reporting period and reasons

Unit: RMB

Item Changes Reason for changes

The ending balance of contract assets decreased from the

Project progress payment -14996747.54

beginning of the period mainly because the 150MW/300MWh

1122026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Changes Reason for changes

independent energy storage power station project in Guzhen

Town Zhongshan City and the construction general

contracting building and installation construction project of

Section #2 of the Zhengdou Photovoltaic Empirical

Experiment Base Project in Garze Prefecture have completed

settlement and met the conditions for unconditional right to

receive payments which were transferred from contract

assets to accounts receivable.Total -14996747.54

(3).Disclosure by provision method for bad debts

Unit: RMB

Ending balance

Book balance Provision for bad debts

Type Provision

Percenta Book value

Amount Amount percentage

ge (%)

(%)

Provision set aside for bad

debts by the single item

Provision for bad debts

accrued by credit risk 7209277.31 100.00 7209277.31

portfolio

Total 7209277.31 100.00 7209277.31

(Continued)

Beginning balance

Book balance Provision for bad debts

Type Provision

Percenta Book value

Amount Amount percentage

ge (%)

(%)

Provision set aside for bad

debts by the single item

Provision for bad debts

accrued by credit risk 21441671.72 100.00 21441671.72

portfolio

Total 21441671.72 100.00 21441671.72

1132026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

1） There was no provision for bad debts of contract assets accrued on an individual basis in the current

period

2） Provision set aside for bad debts of contract assets by portfolio

Ending balance

Name Provision for bad Provision percentage

Book balance

debts (%)

Portfolio 3: Receivables from

7209277.31

comprehensive energy services

Total 7209277.31

(4) No provision for bad debts of contract assets was accrued recovered or reversed in the current period

(5) No actual write-off of contract assets for the current period

6. Other receivables

Unit: RMB

Item Ending balance Beginning balance

Interest receivable

Dividends receivable

Other receivables 362387516.84 361729062.93

Including: Land resumption compensation

354967762.00354967762.00

receivable (Note)

Total 362387516.84 361729062.93

Note: Land resumption compensation receivable refers to the government compensation receivable arising from the

land resumption of the Company's subsidiary Shennandian Zhongshan. The total compensation price for the land

resumption of Shennandian Zhongshan in Cuiheng New District is RMB 584.45 million involving Parcel A and Parcel B:

The total compensation for Parcel A is RMB 224.71 million of which RMB 112.41 million has been recovered in the

early stage including an initial payment of RMB 67.41 million and a progress payment of RMB 45.00 million. The

cancellation of the land ownership certificate and the confirmation of the parcel handover for Parcel A were completed in

2024. At the end of the period the remaining receivable balance was RMB 112.30 million. According to the agreement

the payment will be recovered by December 31 2026 at the latest.The total compensation for Parcel B is RMB 359.74 million of which an initial payment of RMB 107.92 million has

been received. The cancellation of the land ownership certificate for Parcel B was completed in 2024 and the

confirmation of the parcel handover was completed in 2025. During the actual handover confirmation process of Parcel

B RMB 9.15 million was deducted from the compensation price accordingly due to the expiration and cancellation of the

right to use the sea area in relation to the wharf and the inability to hand over the covered bridge due to demolition. At the

1142026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

end of the period the remaining receivables totaled RMB 242.67 million. Pursuant to relevant agreement the settlement

deadline for the payment is December 31 2027.By the end of the Reporting Period the unrecovered land resumption compensation for Parcels A and B totaled

RMB 354.97 million. The Company continues to communicate with the Management Committee of Cuiheng New District

to actively promote the recovery of funds. All remaining land resumption receivables are within the payment credit period

under the relevant agreement.

6.1 Other receivables

(1) Classification of other receivables by nature of payment

Unit: RMB

Nature of funds Ending book balance Beginning book balance

Transactions with external agencies 375508681.73 375874499.74

Historical legacy funds 11724938.94 11724938.94

Margin deposit and petty cash 5846533.33 4930362.46

Others 717918.88 609817.83

Total 393798072.88 393139618.97

(2) Disclosure by aging

Unit: RMB

Aging Ending book balance Beginning book balance

Within 1 year (inclusive) 246961373.29 245361010.04

1-2 years 115093053.16 116034962.50

2-3 years 315182.00 315182.00

Over 3 years 31428464.43 31428464.43

393798072.88393139618.97

Total

(3).Disclosure by provision method for bad debts

Ending balance

Book balance Provision for bad debts

Type

Provision

Percentage Book value

Amount Amount percentage

(%)

(%)

Provision set 31410556.04 7.98 31410556.04 100.00

1152026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending balance

Book balance Provision for bad debts

Type

Provision

Percentage Book value

Amount Amount percentage

(%)

(%)

aside for bad

debts by the single

item

Provision for bad

debts accrued by 362387516.84 92.02 362387516.84

credit risk portfolio

Total 393798072.88 100.00 31410556.04 7.98 362387516.84

(Continued)

Beginning balance

Book balance Provision for bad debts

Type

Provision

Percentage Book value

Amount Amount percentage

(%)

(%)

Provision set

aside for bad

31410556.047.9931410556.04100.00

debts by the single

item

Provision for bad

debts accrued by 361729062.93 92.01 361729062.93

credit risk portfolio

Total 393139618.97 100.00 31410556.04 7.99 361729062.93

1） Provision for bad debts of other receivables by single item

Ending balance

Provision

Name Provision for Reasons for the

Book balance percentage

bad debts provision

(%)

Huiyang Kangtai Industrial Co. Ltd. 14311626.70 14311626.70 100.00 Historical legacy

Dividends and taxes receivable issues from a

9988934.789988934.78100.00

from employee benefit fund long time ago

1162026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending balance

Provision

Name Provision for Reasons for the

Book balance percentage

bad debts provision

(%)

Shandong Ji'nan Power Generation which are

3560000.003560000.00100.00

Equipment Factory Co. Ltd. expected to be

Receivables from the purchase of unrecoverable.

1736004.161736004.16100.00

employee dormitories

Receivables from Zhongshan

1000000.001000000.00100.00

Cogeneration Project

Others 813990.40 813990.40 100.00

Total 31410556.04 31410556.04 100.00 —

2） Provision set aside for bad debts of other receivables by portfolio

Ending balance

Project Provision for bad Provision percentage

Book balance

debts (%)

Portfolio 5: Margin deposit and petty

5842936.55

cash portfolio

Portfolio 7: Other various receivables

356544580.29

and temporary payments

Total 362387516.84

3） Provision set aside for bad debts of other receivables by the general expected credit loss model

Phase I Phase II Phase III

Expected credit Expected credit

Expected

loss during the loss during the

Provision for bad debts credit loss Total

whole outstanding whole outstanding

for the next

maturity (without maturity (with

12 months

credit impairment) credit impairment)

Balance as of January 1 31410556.04 31410556.04

2026

Balance as of January 1

2026 in the current period

-- Transfer to Stage II

-- Transfer to Stage III

-- Reversal to Stage II

1172026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Phase I Phase II Phase III

Expected credit Expected credit

Expected

loss during the loss during the

Provision for bad debts credit loss Total

whole outstanding whole outstanding

for the next

maturity (without maturity (with

12 months

credit impairment) credit impairment)

-- Reversal to Stage I

Provision for the current

period

Reversal in this period

Charge-off in the current

period

Write-off in the current

period

Other changes

Balance as of June 30 2026 31410556.04 31410556.04

(4) Provision for bad debts accrued recovered or reversed for the current period

Unit: RMB

Changes in the current period

Beginning

Type Recovered Charge-off or Ending balance

balance Provision Others

or reversed write-off

Provision

set aside

for bad

31410556.0431410556.04

debts by

the single

item

Provision

for bad

debts

accrued by

credit risk

portfolio

Total 31410556.04 31410556.04

Of which there was no recovery or reversal of provision for bad debts with significant amounts in the current period.

1182026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(5) No actual write-off of other receivables for the current period

(6) Other receivables of the top five ending balances collected by debtor

Unit: RMB

Ratio to the total

Provision for bad

ending balance

Unit Nature of funds Ending balance Aging debts

of other

Ending balance

receivables (%)

Zhongshan Xiwan Land resumption Within 1

Construction payment 354967762.00 year 1 to 2 90.14

Investment Co. Ltd. receivable years

Transactions

Huiyang Kangtai Over 5

with external 14311626.70 3.63 14311626.70

Industrial Co. Ltd. years

agencies

Dividends and taxes

receivable from Receivables Over 5

9988934.782.549988934.78

employee benefit from employees years

fund

Shandong Ji'nan

Transactions

Power Generation Over 5

with external 3560000.00 0.90 3560000.00

Equipment Factory years

agencies

Co. Ltd.Zhongshan Nanlang

Within 1

Construction

Deposit 1888742.00 year 1 to 2 0.48

Development Co.years

Ltd.Total — 384717065.48 — 97.69 27860561.48

7、 Prepayments

(1) Advances to suppliers are listed by aging

Unit: RMB

Ending balance Beginning balance

Item

Amount Percentage (%) Amount Percentage (%)

Within 1 year 26976189.75 99.80 10983662.40 99.37

1-2 years 55054.22 0.20 14932.96 0.14

1192026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

2-3 years 48500.00 0.44

Over 3 years 5887.44 0.05

Total 27031243.97 100.00 11052982.80 100.00

There was no prepayment aged over one year and of significant amount at the end of the period.

(2) Prepayment status of the top five year-end balances collected by prepaid objects

Unit: RMB

Ratio to the total ending

Unit Ending balance

balance of prepayment (%)

Shenzhen Gas Corporation Ltd. 10066955.06 37.24

Tianjin Anqiju Construction Technology

8742928.2132.34

Co. Ltd.Shanghai Turbine Plant Co. Ltd. 3521400.00 13.03

Hunan Yineng Electric Power

2514160.169.30

Construction Co. Ltd.The Hong Kong University - Shenzhen

600286.602.22

Hospital

Total 25445730.03 94.13

8. Inventories

(1) Inventories Classification

Unit: RMB

Ending balance

Provision for inventory

Item impairment/for contract

Book balance Book value

fulfilment cost

impairment

Spare parts etc. 111592995.58 75698689.83 35894305.75

Auxiliary materials

and low-value 300184.02 300184.02

consumables etc.Contract fulfilment

2568736.882568736.88

costs

Others 47646.11 47646.11

Total 114509562.59 75698689.83 38810872.76

(Continued)

1202026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Beginning balance

Provision for inventory

Item

Book balance impairment/for contract Book value

fulfilment cost impairment

Spare parts etc. 112064370.81 75758884.19 36305486.62

Auxiliary materials

and low-value 302731.04 302731.04

consumables etc.Contract fulfilment

1317495.231317495.23

costs

Others 47196.59 47196.59

Total 113731793.67 75758884.19 37972909.48

(2) Provision for inventory depreciation and provision for impairment of contract performance costs

Increase in the current Decrease in the current

Beginning year year

Item Ending balance

balance Reversal or

Provision Others Others

write-off

Spare parts

75758884.1960194.3675698689.83

etc.Auxiliary

materials and

low-value

consumables

etc.Total 75758884.19 60194.36 75698689.83

9. Other current assets

Unit: RMB

Item Ending balance Beginning balance

Transferable large-denomination

certificates of deposit and accrued 279648785.85 238230831.36

interest

VAT input tax to be deducted 22912202.32 23972945.62

Prepaid income tax 142330.79 4050115.85

Others 7815.72 8494.29

1212026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Ending balance Beginning balance

Total 302711134.68 266262387.12

1222026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

10. Other equity instrument investments

(1) Other equity instrument investments

Unit: RMB

Increase/decrease in this period

Losses included

Beginning Gains included in

Item Additional Decrease in in other Ending balance

balance other comprehensive Others

investment investment comprehensive

income

income

Sunpower Technology

170869466.58170869466.58

(Jiangsu) Group Co. Ltd.Jiangxi Nuclear Power Co.

63309590.6263309590.62

Ltd.Shenzhen Petrochemical

Products Bonded Trading

Co. Ltd.Total 234179057.20 234179057.20

(2) Non-trading equity instrument investments

Unit: RMB

Dividend Amount Reason for assigning Reasons for the

Accumulative losses

income Accumulative gains transferred from to measure at fair value transfer of other

accrued to other

Item recognized accrued to other the other of which changes comprehensive

comprehensive

during the comprehensive income comprehensive included other income into retained

income

current income to retained comprehensive income earnings

1232026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

period earnings

Sunpower Technology

Planned for long-term

(Jiangsu) Group Co. 30869466.58

holding

Ltd.Jiangxi Nuclear Power Planned for long-term

2694590.62

Co. Ltd. holding

Shenzhen

Petrochemical Products Planned for long-term

2500000.00

Bonded Trading Co. holding

Ltd.Total 33564057.20 2500000.00 —

1242026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

11. Long-term equity investments

Unit: RMB

Increase/decrease in this period Balance

Beginnin

Profit or of

g Cash

loss of provisio

Beginning balance Chang dividends Ending

Addition investmen Adjustment Provisio n for

balance of Decrease es in or profits balance

Investee al t s to other n for Othe impairme

(book provisio Investmen Other declared (book

investme recognize comprehens impairme rs nt as at

value) n for t Equitie to be value)

nt d by the ive income nt the end

impairme s distribute

equity of the

nt d

method period

I. Associates

Jiangsu

Liaoyuan

Environme

4372975.1012125.101058390

ntal 97697539.

3500.14

Protection 79

Technology

Co. Ltd.Shenzhen

Yuanzhi

Ruixin New 40737926 7114625.5

97179976.63556675.

Generation .61 8

0401

Information

Technology

1252026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Increase/decrease in this period Balance

Beginnin

Profit or of

g Cash

loss of provisio

Beginning balance Chang dividends Ending

Addition investmen Adjustment Provisio n for

balance of Decrease es in or profits balance

Investee al t s to other n for Othe impairme

(book provisio Investmen Other declared (book

investme recognize comprehens impairme rs nt as at

value) n for t Equitie to be value)

nt d by the ive income nt the end

impairme s distribute

equity of the

nt d

method period

Private

Equity

Investment

Fund

Partnership

(Limited

Partnership

) (Note)

Shenzhen

Yuanzhi

Zhongkai

Energy

Storage 1950000.0 1950000.0

Technology 0 0

Innovation

Private

Fund

1262026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Increase/decrease in this period Balance

Beginnin

Profit or of

g Cash

loss of provisio

Beginning balance Chang dividends Ending

Addition investmen Adjustment Provisio n for

balance of Decrease es in or profits balance

Investee al t s to other n for Othe impairme

(book provisio Investmen Other declared (book

investme recognize comprehens impairme rs nt as at

value) n for t Equitie to be value)

nt d by the ive income nt the end

impairme s distribute

equity of the

nt d

method period

Partnership

(Limited

Partnership

)

1968275154073792611487600.1012125.166565065

Total.83.619300.15

Note: The decrease in the book value of the long-term equity investment in Yuanzhi Ruixin Information Technology Fund is mainly due to the exit from some underlying

investment projects during the current period returning the project investment principal to the Company and distributing the returns which resulted in a decrease in the book

value of the long-term equity investment.

1272026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

12. Investment properties

(1) Investment properties measured at the cost mode

Unit: RMB

Item Houses and buildings Total

I. Original book value

1. Beginning balance 9708014.96 9708014.96

2. Increase in the current year

3. Decrease in the current year

4. Ending balance 9708014.96 9708014.96

II. Accumulated depreciation and

accumulated amortization

1. Beginning balance 8376561.88 8376561.88

2. Increase in the current year 83278.38 83278.38

(1) Provision or amortization 83278.38 83278.38

3. Decrease in the current year

4. Ending balance 8459840.26 8459840.26

III. Provision for impairment

1. Beginning balance

2. Increase in the current year

3. Decrease in the current year

4. Ending balance

IV. Book value

1. Ending book value 1248174.70 1248174.70

2. Book value at the beginning of the year 1331453.08 1331453.08

13. Fixed assets

Unit: RMB

Item Ending balance Beginning balance

Fixed assets 530531149.52 544902436.89

Liquidation of fixed assets

Total 530531149.52 544902436.89

1282026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(1) Fixed assets

Unit: RMB

Houses buildings and Means of Electronic equipment

Item Machinery equipment Total

decoration transportation and other equipment

I. Original book value

1. Beginning balance 317189970.52 1843082497.65 5275908.75 40521712.61 2206070089.53

2. Increase in the current

2559058.55116805.072675863.62

period

(1) Purchase 21251.06 116805.07 138056.13

(2) Transfer-in of

2537807.492537807.49

construction in progress

(3) Increase in business

combination

3. Decrease in the current

86242.15125915.02219164.95431322.12

period

(1) Disposal or write-off 219164.95 219164.95

(2) Others 86242.15 125915.02 212157.17

4. Ending balance 317103728.37 1845515641.18 5056743.80 40638517.68 2208314631.03

II. Accumulated

depreciation

1. Beginning balance 213100300.13 1289086842.51 5191085.31 34872877.91 1542251105.86

2. Increase in the current

2904207.4213516378.173984.19388507.5416813077.32

period

(1) Provision 2904207.42 13516378.17 3984.19 388507.54 16813077.32

1292026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(2) Increase in business

combination

3. Decrease in the current

197248.45197248.45

period

(1) Disposal or write-off 197248.45 197248.45

(2) Others

4. Ending balance 216004507.55 1302603220.68 4997821.05 35261385.45 1558866934.73

III. Provision for

impairment

1. Beginning balance 17852047.84 100972179.24 53176.48 39143.22 118916546.78

2. Increase in the current

period

(1) Provision

3. Decrease in the current

period

(1) Disposal or write-off

4. Ending balance 17852047.84 100972179.24 53176.48 39143.22 118916546.78

IV. Book value

1. Book value as at the

83247172.98441940241.265746.275337989.01530531149.52

end of the period

2. Book value as at the

86237622.55453023475.9031646.965609691.48544902436.89

beginning of the period

1302026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(2) Fixed assets without certificate of title

Unit: RMB

Reason that the certificate of

Item Book value

title was not completed

Comprehensive office building of

power plant 8057294.17

Turbine room 1895345.65

New power house (four-control

building) 865000.00

Supporting production houses

Cooling tower 673259.25 and historical legacy matters

Water treatment workshop 232960.00

Circulating water pump room 196984.54

Oil depot comprehensive building 443246.19

14. Construction in progress

Unit: RMB

Item Ending balance Beginning balance

Construction in progress 3283591.43 3113338.75

Total 3283591.43 3113338.75

1312026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(1) Construction in progress situation

Unit: RMB

Ending balance Beginning balance

Item Provision for Provision for

Book balance Book value Book balance Book value

impairment impairment

Oil-to-gas project of

Nanshan Thermal Power 9441286.39 9441286.39 9441286.39 9441286.39

Station

Technical transformation

project of Nanshan 2675000.00 1605000.00 1070000.00 2675000.00 1605000.00 1070000.00

Thermal Power Station

Zhongshan Independent

Energy Storage Power

2213591.432213591.43467279.51467279.51

Station (Phases II and III)

Project

Zhongshanwan Solar-

Storage-Charging 1576059.24 1576059.24

Energy Service Project

Total 14329877.82 11046286.39 3283591.43 14159625.14 11046286.39 3113338.75

(2) Changes of significant construction in progress in the current period

Unit: RMB

Decrease in the current period

Name Beginning balance Increase in the current period Ending balance

Transfer to fixed assets Other decreases

Zhongshan

467279.511746311.922213591.43

Independent Energy

1322026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Decrease in the current period

Name Beginning balance Increase in the current period Ending balance

Transfer to fixed assets Other decreases

Storage Power Station

(Phases II and III)

Project

Total 467279.51 1746311.92 2213591.43

(Continued)

Accumulated Including: Capitalization

Proportion of the

Budget amount Engineering amount of Capitalized amount rate of the

project Source of

Name (RMB ten thousand Schedule interest of interest in the interests for

accumulative input funds

yuan) (%) capitalization current period the current

in budget (%)

(RMB 10000) (RMB 10000) period (%)

Zhongshan Independent

Energy Storage Power

39272 0.56% 0.56% Self-funded

Station (Phases II and III)

Project

Total 39272 - - -

1332026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

15. Right-of-use assets

(1) Right-of-use assets status

Unit: RMB

Properties and Land use right and others

Item Total

buildings

I. Original book value

1. Beginning balance 9043308.31 28096305.81 37139614.12

2. Increase in the current 10914099.81 10914099.81

period

(1) New lease contracts 10914099.81 10914099.81

(2) Lease modification and

others

3. Decrease in the current 8696499.48 8696499.48

period

(1) Disposal

(2) Expiration of lease 8696499.48 8696499.48

contracts

4. Ending balance 11260908.64 28096305.81 39357214.45

II. Accumulated depreciation

1. Beginning balance 6949461.65 1404815.28 8354276.93

2. Increase in the current

2172741.54702407.642875149.18

period

(1) Provision 2172741.54 702407.64 2875149.18

3. Decrease in the current 8696499.48 8696499.48

period

(1) Disposal

(2) Expiration of lease 8696499.48 8696499.48

contracts

4. Ending balance 425703.71 2107222.92 2532926.63

III. Provision for impairment

1. Beginning balance

2. Increase in the current

period

3. Decrease in the current

period

1342026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Properties and Land use right and others

Item Total

buildings

4. Ending balance

IV. Book value

1. Book value as at the end of

10835204.9325989082.8936824287.82

the period

2. Book value as at the 2093846.66 26691490.53 28785337.19

beginning of the period

Note: (1) The increase in the right-of-use assets for houses and buildings in the current period is caused by the renting

of properties on the 16th and 17th floors of Hantang Building as office space under an operating lease with a new three-

year lease agreement to recognize the right-of-use assets; the decrease in the current period is due to the expiration and

termination of the original house lease terms.

(2) The right-of-use assets for land use right and others are mainly related to the construction of the Zhongshan

Independent Energy Storage Project by Shennan Power Xiwan Company for which the project land and above-ground

buildings were leased and the right-of-use assets were recognized.

16. Intangible assets

(1) Intangible assets situation

Unit: RMB

Item Land use right Patent right Software Others Total

I. Original book

value

1. Beginning

30800611.14138625.076362179.4339341.1737340756.81

balance

2. Increase in the

72574.2621839.621980.2096394.08

current period

(1) Purchase 72574.26 21839.62 1980.20 96394.08

(2) Increase

through business

merger

3. Decrease in the

current period

4. Ending balance 30800611.14 211199.33 6384019.05 41321.37 37437150.89

II. Accumulated

amortization

1352026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Land use right Patent right Software Others Total

1. Beginning

30761618.2883278.764414748.2439341.1735298986.45

balance

2. Increase in the

3295.566398.10267516.7233.00277243.38

current period

(1) Provision 3295.56 6398.10 267516.72 33.00 277243.38

(2) Increase

through business

merger

3. Decrease in the

current period

4. Ending

30764913.8489676.864682264.9639374.1735576229.83

balance

III. Provision for

impairment

1. Beginning

balance

2. Increase in the

current period

3. Decrease in the

current period

4. Ending balance

IV. Book value

1. Book value as

at the end of the 35697.30 121522.47 1701754.09 1947.20 1860921.06

period

2. Book value as

at the beginning 38992.86 55346.31 1947431.19 2041770.36

of the period

17. Long-term deferred expenses

Unit: RMB

Beginning Increase in the Amortization in Other

Item Ending balance

balance current period the current period decreases

Overhaul

expenditur 6497593.73 148763.21 972531.00 5673825.94

e

1362026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Beginning Increase in the Amortization in Other

Item Ending balance

balance current period the current period decreases

Decoration

69565.3269565.32

expenses

Total 6567159.05 148763.21 1042096.32 5673825.94

18. Deferred tax assets/deferred tax liabilities

(1) Deferred tax assets without offset

Unit: RMB

Ending balance Beginning balance

Deductible Deductible

Item Deferred tax Deferred tax

temporary temporary

Assets Assets

differences differences

Fair value changes of

investments in other 2500000.00 625000.00 2500000.00 625000.00

equity instruments

Provision for bad debts 42481.92 10620.48 42481.92 10620.48

Estimated liabilities 345106.00 86276.50 345106.00 86276.50

Lease liabilities 25814315.97 6453578.99 25839468.05 6459867.02

Deductible losses 74141565.14 18535391.28 101792854.16 25448213.52

Total 102843469.03 25710867.25 130519910.13 32629977.52

(2) Deferred tax liabilities without offset

Unit: RMB

Ending balance Beginning balance

Item Taxable temporary Deferred tax Taxable temporary Deferred tax

differences Liabilities differences Liabilities

Carrying amount of right-

25989082.896497270.7227085703.876771425.96

of-use assets

One-off deduction for

119712820.1329928205.04125758907.3331439726.83

fixed assets

Total 145701903.02 36425475.76 152844611.20 38211152.79

(3) Deferred tax assets or liabilities listed net amount after write-offs

Unit: RMB

1372026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending balance Beginning balance

Balance of

Offset amount Balance of deferred

Offset amount of deferred tax

Item of deferred tax tax assets or

deferred tax assets assets or

assets and liabilities after

and liabilities liabilities after

liabilities offset

offset

Deferred tax assets 21447819.57 4263047.69 28365118.64 4264858.88

Deferred tax liabilities 21447819.57 14977656.19 28365118.64 9846034.15

(4) Details of unconfirmed deferred tax assets

Item Ending balance Beginning balance

Deductible temporary differences (Note) 746532145.60 747666656.06

Deductible losses 570969455.61 582960196.13

Total 1317501601.21 1330626852.19

Note: Deductible temporary differences are the aggregate of all taxpaying entities within the consolidation scope

without elimination mainly formed due to the provision for impairment of long-term equity investments inventory valuation

allowance provision for impairment of fixed assets and provision for impairment of receivables etc.

(5) Deductible losses from unrecognized deferred tax assets will be expired in the following years

Year Ending amount Beginning amount Remarks

202656270050.5163604302.14

202780366503.7480366503.74

202864019012.2464019012.24

202926972406.8426972406.84

203067823332.3683108090.85

203148331962.8141303572.32

203273523304.1173523304.11

203315746106.2515746106.25

203431083070.3431083070.34

2035103233827.30103233827.30

20363611539.93

Total 570981116.43 582960196.13

19. Other non-current assets

Unit: RMB

1382026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending balance Beginning balance

Provision Provision

Item Book

Book balance for Book value for Book value

balance

impairment impairment

Overhaul

expenditure on

generator sets of

4136643.544136643.54

Nanshan Thermal

Power Station

(Note 1)

Expenses related

to functional

replacement of 857135.84 857135.84 857135.84 857135.84

Nanshan Thermal

Power Station

Prepayments for

decoration 283969.92 283969.92

engineering

Cost of contract

209748.43209748.43

acquisition

Total 5487497.73 5487497.73 857135.84 857135.84

Note: It was mainly due to the overhaul expenditure on generator sets of Nanshan Thermal Power Station occurred

during the Reporting Period. Since the repair project had not been completed and failed to meet the capitalization

conditions it was stated as another non-current asset and would be converted into long-term prepaid expense after

capitalization conditions are met.

1392026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

20. Assets with restrictions on the ownership or right of use

Unit: RMB

Ending balance Beginning balance

Item Type of Restriction Type of Restriction

Book balance Book value Book balance Book value

restriction details restriction details

Guarantee

127729947.70 127729947.70 Frozen

deposits

Managed

Monetary Co-managed according to Guarantee

8334730.76 8334730.76 Frozen

assets accounts the use of deposits

4619341.404619341.40

payment specific

restricted project

funds

Subtotal 132349289.10 132349289.10 8334730.76 8334730.76

Accounts Pledge for Pledge for

receivable 7796560.54 7796560.54 Pledge bank 20975701.75 20975701.75 Pledge bank

(Note) borrowings borrowings

Fixed Pledge for Pledge for

assets 81695172.60 81695172.60 Pledge bank 81695172.60 81695172.60 Pledge bank

(Note) borrowings borrowings

Total 221841022.24 221841022.24 — — 111005605.11 111005605.11 — —

Note: The restriction to the ownership of the Company's assets during the Reporting Period were mainly due to the fact that Shennan Power Xiwan Company a subsidiary

of the Company pledged the fixed assets of its independent Energy Storage Power Station Project (Phase I) and 47.62% of the accounts receivable generated from its

operation to the Postal Savings Bank of China for a borrowing limit of RMB 88995600 and pledged 52.38% of the accounts receivable generated from the operation of its

1402026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Zhongshan Cuiheng New District 300MW/600MWh Independent Energy Storage Power Station Project (Phase I) to Shenzhen Branch of Shanghai Pudong Development Bank

for a borrowing limit of RMB 82108200.

1412026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

21. Short-term borrowings

(1) Classification of short-term borrowings

Unit: RMB

Type of borrowings Ending balance Beginning balance

Unsecured loan 142000000.00 142000000.00

In pledge for loan 30000000.00 30000000.00

Accrued interest on short-term

102811.1094604.45

borrowings

Total 172102811.10 172094604.45

22. Accounts payable

(1) Presentation of accounts payable

Unit: RMB

Item Ending balance Beginning balance

Payment for goods labor and services 26062784.04 41864909.45

Electricity expenses 1291003.86 796684.64

Total 27353787.90 42661594.09

(2) Significant accounts payable aged over 1 year or overdue

Unit: RMB

Reason for non-repayment or

Unit Ending balance

carry-over

Shenzhen Fenghui Technology Co. Ltd. 5133354.18 Payment period not expired

Guangzhou Zike Environmental

1872500.00 Payment period not expired

Protection Technology Co. Ltd.Shenzhen Yongtai Digital Energy

441926.35 Warranty deposit not expired

Technology Co. Ltd.Total 7447780.53 —

23. Other payables

Unit: RMB

1422026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Ending balance Beginning balance

Dividends payable 15000000.00 22500000.00

Other payables 12224007.81 10823386.05

Total 27224007.81 33323386.05

23.1 Dividends payable

Unit: RMB

Item Ending balance Beginning balance

Ordinary shares dividends 15000000.00 22500000.00

Total 15000000.00 22500000.00

23.2 Other payables

(1) Presentation of other payables by nature of payment

Unit: RMB

Nature of funds Ending balance Beginning balance

Labor and service fees 5522357.32 8995374.51

Cash deposit 851095.72 1254325.72

Others 5850554.77 573685.82

Total 12224007.81 10823386.05

(2) Other significant accounts payable aged over 1 year or overdue

Unit: RMB

Unit Ending balance Reason for non-repayment or carry-over

Zhongshan Xiwan Construction Investment

4415015.60 Payment period not expired

Co. Ltd.Zhongshan Environmental Protection

536792.46 Payment period not expired

Science Research Institute Co. Ltd.Shenzhen Shennong Kitchen Co. Ltd. 300000.00 Deposit not yet due for payment

Shenzhen Jinzhixin Investment Co. Ltd. 250000.00 Deposit not yet due for payment

Zhongshan Nanlang Construction

166492.72 Payment period not expired

Development Co. Ltd.Total 5668300.78 —

24. Contract liabilities

(1) Details of contract liabilities

1432026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Unit: RMB

Item Ending balance Beginning balance

Advances for comprehensive energy

services 5185301.61

Advances for disposal of waste

materials 130796.46

Total 5185301.61 130796.46

(2) No significant contract liabilities aged over 1 year

25. Employee compensation payable

(1) Presentation of employee compensation payable

Unit: RMB

Beginning Increase in the Decrease in the

Item Ending balance

balance current period current period

Short-term remuneration 19496493.95 52060175.15 66732085.95 4824583.15

Post-employment benefits-

5263059.838474441.7913538010.96199490.66

defined contribution plans

Dismissal benefits

Other benefits due within one

year

Total 24759553.78 60534616.94 80270096.91 5024073.81

(2) Presentation of short-term compensation

Unit: RMB

Increase in the Decrease in the

Item Beginning balance Ending balance

current period current period

Salaries bonuses

18743848.0642307982.3256579522.114472308.27

allowances and subsidies

Employee benefits 639003.62 1566529.45 1960531.57 245001.50

Social insurance premiums 4780.79 2670759.89 2675401.73 138.95

Including: Medical insurance

3693.202206832.112210419.06106.25

premiums

Work injury insurance

694.70248004.51248666.5132.70

premiums

Maternity insurance 392.89 215923.27 216316.16

1442026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Increase in the Decrease in the

Item Beginning balance Ending balance

current period current period

premiums

Housing fund 4592174.56 4592174.56

Labour union funds and

108861.48922728.93924455.98107134.43

education funds

Short-term compensated

absences

Short-term profit sharing plan

Total 19496493.95 52060175.15 66732085.95 4824583.15

(3) Presentation of defined contribution plans

Unit: RMB

Beginning Increase in the Decrease in the

Item Ending balance

balance current period current period

Basic endowment

12888.525866117.195878923.9881.73

management insurance

Unemployment insurance

617.50305202.62305820.12

premiums

Enterprise annuity

5249553.812303121.987353266.86199408.93

payment

Total 5263059.83 8474441.79 13538010.96 199490.66

26. Taxes payable

Unit: RMB

Item Ending balance Beginning balance

Value-added tax 9580490.01 7325234.37

Enterprise income tax 115538.36 590069.41

Personal income tax 608601.23 389405.86

Land use tax 515328.95

Property tax 453733.31

Stamp duty 58514.65 160274.65

Urban maintenance and construction tax 9727.15 31046.65

Education surcharge 4040.21 13305.70

Local education surcharge 2693.47 8870.47

1452026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Ending balance Beginning balance

Others 13591.08

Total 11348667.34 8531798.19

27. Non-current liabilities maturing within one year

Unit: RMB

Item Ending balance Beginning balance

Long-term borrowings due within one year 5620014.06 4156564.01

Lease liabilities due within one year 4515527.22 3184246.73

Total 10135541.28 7340810.74

28. Other current liabilities

(1) Classification of other current liabilities

Unit: RMB

Item Ending balance Beginning balance

Tax to be charged off 896949.44 2425298.89

Total 896949.44 2425298.89

29. Long-term borrowings

(1) Classification of long-term borrowings

Unit: RMB

Type of borrowings Ending balance Beginning balance

In pledge for loan 165631166.72 168421492.31

Total 165631166.72 168421492.31

30. Lease liabilities

Unit: RMB

Item Ending balance Beginning balance

Lease liabilities 36976628.85 27852266.89

Non-current liabilities maturing within

-4515527.21-3184246.73

one year

Total 32461101.64 24668020.16

1462026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Note: For details of matters related to new lease liabilities during the Reporting Period please refer to the note

description of VII. 15 Right-of-use assets in the notes to the financial statements.

31. Estimated liabilities

Unit: RMB

Item Ending balance Beginning balance Reason for formation

Pending litigation (Note) 345106.00 345106.00

Others 19839.00 19839.00

Total 364945.00 364945.00 —

Note: It is mainly caused by the service agreement dispute between the Energy Technology Company a subsidiary of

the Company and Xinjiang Shizilu Information Consulting Co. Ltd. The pending litigation involves present obligations and

the fulfillment of such obligations is likely to lead to an outflow of economic benefits from the Company. Since the relevant

amount can be measured reliably estimated liability of RMB 345106.00 is accrued accordingly.

32. Deferred income

(1) Classification of deferred income

Unit: RMB

Increase in

Decrease in the Reason for

Item Beginning balance the current Ending balance

current period formation

period

Government See Table (2)

41913447.413172940.1038740507.31

Grants for details

Total 41913447.41 3172940.10 38740507.31 —

(2) Government subsidy projects

Unit: RMB

Subsidy Amount

increase recognized as Related to

Liabilities Beginning Others Ending

in the other income assets/inco

Item Balance Change Balance

current in the current me

period period

Shenzhen

Atmospheric Related to

38871469.922365909.0836505560.84

Environment Quality assets

Improvement Subsidy

1472026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Subsidy Amount

increase recognized as Related to

Liabilities Beginning Others Ending

in the other income assets/inco

Item Balance Change Balance

current in the current me

period period

Technical

transformation Related to

776055.5335333.34740722.19

investment project assets

funding for 2021-2022

Sludge Drying

Equipment Circular Related to

690253.3463783.60626469.74

Economy Support assets

Fund

Green Development

Supporting and

Industrial "Carbon

Peaking" Support

Related to

Plan to fund industrial 547500.00 273750.00 273750.00

assets

energy resource

conservation and

comprehensive

utilization projects

Government

subsidies for low Related to

458768.62229384.08229384.54

nitrogen equipment assets

transformation

Industrial

Related to

development fund 375000.00 187500.00 187500.00

assets

subsidy

Motor energy

efficiency Related to

194400.0017280.00177120.00

improvement support assets

plan subsidy

Total 41913447.41 3172940.10 38740507.31

33. Share capital

Unit: RMB

1482026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Changes during the period (+ -)

Shar

es

as Shares as

divid dividend

Beginning

Item New end converted Othe Subtot Ending balance

balance

issues conv from rs al

erted capital

from reserves

profi

t

Total shares 602762596.00 602762596.00

34. Capital reserve

Unit: RMB

Increase in the Decrease in the

Item Beginning balance Ending balance

current period current period

Equity premium 233035439.62 233035439.62

Other capital reserves 129731962.76 129731962.76

Total 362767402.38 362767402.38

1492026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

35. Other comprehensive income

Unit: RMB

Amount in the current period

Less: Amount Less: Amount

recognized as recognized as

other other

Amount comprehensive comprehensive

Less: Attributable Attributable

Beginning before income in the income in the Ending

Item Income to the parent to minority

Balance income tax in previous previous period Balance

tax company shareholders

the current period and and transferred to

expense after tax after tax

period transferred to retained earnings

profit or loss in in the Reporting

the Reporting Period

Period

I. Other

comprehensive income

that cannot be 31064057.20 31064057.20

reclassified as profits

or losses

Including: changes in

fair value of other

31064057.2031064057.20

equity instrument

investments

II. Other

-3928.35-3928.35-3928.35

comprehensive income

1502026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Amount in the current period

Less: Amount Less: Amount

recognized as recognized as

other other

Amount comprehensive comprehensive

Less: Attributable Attributable

Beginning before income in the income in the Ending

Item Income to the parent to minority

Balance income tax in previous previous period Balance

tax company shareholders

the current period and and transferred to

expense after tax after tax

period transferred to retained earnings

profit or loss in in the Reporting

the Reporting Period

Period

reclassified as profits

and losses

Including:

Translation differences

-3928.35-3928.35-3928.35

of financial statements

in foreign currency

Total of other

comprehensive 31064057.20 -3928.35 -3928.35 31060128.85

income

1512026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

36. Special reserves

Unit: RMB

Beginning Increase in the Decrease in the Ending

Item

balance current period current period balance

Safety

production 410577.62 2141792.87 2008285.19 544085.30

fund

Total 410577.62 2141792.87 2008285.19 544085.30

Note: Pursuant to the Administrative Measures for the Extraction and Use of Enterprise Work Safety

Funds (Cai Zi [2022] No. 136) (issued on December 12 2022) the Company's electricity generation

business extracts work safety funds and recognizes the same in current gains/losses and simultaneously

recognizes the same as special reserves.

37. Surplus reserves

Unit: RMB

Increase in

Decrease in the

Item Beginning balance the current Ending balance

current period

period

Statutory surplus

310158957.87310158957.87

reserves

Discretionary

22749439.7322749439.73

surplus reserves

Total 332908397.60 332908397.60

38. Undistributed profits

Unit: RMB

Item Current period Previous period

Retained earnings as at the end of the previous period 347646697.47

185255604.81

before the adjustment

Adjustment to total undistributed profits at the beginning

of the period (+ for increase and - for decrease)

Including: retroactive adjustment to the Accounting

Standards for Business Enterprises and relevant new

regulations

Change to accounting policies

1522026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Current period Previous period

Correction of prior period errors

Changes in the scope of consolidation

under common control

Other adjustment factors

Undistributed profits at the beginning of the period after

347646697.47185255604.81

adjustment

Plus: Net profit attributable to owners of the parent

19833302.46-21739509.64

company in this period

Less: Appropriation of statutory surplus reserves

Appropriation of discretionary surplus reserve

Appropriation to general risk reserves

Ordinary share dividends payable 19288403.07

Ordinary share dividends transferred to capital

stock

Transfer of other comprehensive income into

retained earnings

Others -1352892.26

Undistributed profits as at the end of the period 348191596.86 164868987.43

39. Operating revenue and operating costs

(1) Operating income and cost of sales

Unit: RMB

Amount in the current period Amount in the previous period

Item

Income Cost Income Cost

Principal activity 200425269.14 137223915.86 162292199.47 159841635.44

Other businesses 1383033.19 291852.92 4097754.78 2255141.17

Total 201808302.33 137515768.78 166389954.25 162096776.61

(2) Breakdown by type of goods or services

Amount in the previous

Item Amount in the current period period

Income Cost Income Cost

Electricity generation and 140852547.6 111003693.0 145150536.7 147223840.4

sales 7 3 6 7

1532026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Comprehensive energy 68683447.91 35292417.16 27098360.08 21157322.09

services

Others 1383033.19 291852.92 4333656.63 2353720.95

-9110726.44-9072194.33--8638106.90

Offset upon consolidation

10192599.22

201808302.3137515768.7166389954.2162096776.6

Total 3 8 5 1

(3) Breakdown by region

Amount in the current period Amount in the previous period

Item

Income Cost Income Cost

Domestic 199486835.48 136700079.55 166389954.25 162096776.61

Overseas 2321466.85 815689.23 0.00 0.00

Total 201808302.33 137515768.78 166389954.25 162096776.61

(4) Income from contracts

Amount in the current Amount in the previous

Item period period

Income Income

By contract performance obligation

Including: Income recognized at a point

141183749.66149248291.54

of time

Income recognized over a period

60624552.6717141662.71

of time

Total 201808302.33 166389954.25

40. Taxes and surcharges

Unit: RMB

Amount in the current Amount in the previous

Item

period period

Property tax 702206.55 1056802.56

Land use tax 306112.50 392509.86

Urban maintenance and

288118.77339762.60

construction tax

Stamp duty 124932.48 185091.20

Education surcharge 123563.47 145567.18

1542026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Amount in the current Amount in the previous

Item

period period

Local education surcharge 82375.66 97044.77

Environmental protection tax 7091.77 8829.56

Vehicle and vessel tax 1080.00 360.00

Total 1635481.20 2225967.73

41. Selling and distribution expenses

Unit: RMB

Amount in the current Amount in the previous

Item

period period

Employee Compensation 1780038.05 871824.28

Entertainment fees 252461.08 34674.90

Travel expenses 220431.31 63490.48

Technical service fees 38173.59

Intermediary fees 27987.42 64150.94

Office expenses 10246.02 1603.77

Lease expense 3069.31

Others 12337.55 12432.56

Total 2344744.33 1048176.93

42. G&A expenses

Unit: RMB

Amount in the current Amount in the previous

Item

period period

Employee Compensation 24160521.87 23431922.15

Depreciation charges 2709128.99 3078250.26

Lease expense 2199837.54 2458091.14

Intermediary fees 687168.92 1155172.36

Water electricity and property

482035.27726714.45

management fees

Greening and cleaning fees 459191.10 361632.93

Vehicle usage fees 338809.28 453043.27

Travel expenses 307770.07 194065.01

1552026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Amount in the current Amount in the previous

Item

period period

Amortization of intangible assets 257515.50 178015.80

Entertainment fees 250067.57 534218.98

Labor and technical service fees 248593.75 103763.73

Repair fees 180411.71 212903.23

Office expenses 162875.03 156835.02

Communication and information fees 133391.10 373785.16

Securities registration fees 47098.05 21366.15

Board of Directors' expenses 5036.14 5792.50

Others 715368.95 740712.06

Total 33344820.84 34186284.20

43. R&D expenses

Unit: RMB

Amount in the current Amount in the previous

Item

period period

Employee Compensation 7462171.98 8153835.98

Depreciation charges 235745.16 394879.28

Others 2205.00 3720.00

Total 7700122.14 8552435.26

44. Financial expenses

Unit: RMB

Amount in the current Amount in the previous

Item

period period

Interest expense 5189508.63 3740764.90

Less: Interest income 167431.10 2386769.54

Add: Exchange loss 121956.41 25370.15

Other expenses 88912.32 33007.66

Total 5232946.26 1412373.17

45. Other income

Unit: RMB

1562026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Amount in the current Amount in the previous

Sources of other income

period period

Government Grants 3181039.21 3172940.10

Individual income tax refund 76636.68 110868.48

Others 9000.00 29250.00

Total 3266675.89 3313058.58

Government grants recognized as other income

Related

to assets/

Amount in the Amount in the

Grants Related

current period previous period

to

income

Shenzhen Atmospheric Environment Quality Related to

2365909.082365909.08

Improvement Subsidy assets

Green Development Supporting and Industrial

"Carbon Peaking" Support Plan Related to

273750.00273750.00

to fund industrial energy resource conservation assets

and comprehensive utilization

Government subsidies for low nitrogen Related to

229384.08229384.08

equipment transformation assets

Related to

Industrial development fund subsidy 187500.00 187500.00

assets

Sludge Drying Equipment Circular Economy Related to

63783.6063783.60

Support Fund assets

Technical transformation investment project Related to

35333.3435333.34

funding for 2021-2022 assets

Motor energy efficiency improvement support Related to

17280.0017280.00

plan subsidy assets

Project subsidy to encourage profit-making 5099.11 Related to

service enterprises to expand and strengthen income

One-time job expansion subsidy 3000.00 Related to

income

Total 3181039.21 3172940.10

46. Gains from changes in fair value

Unit: RMB

1572026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Sources of gains from changes in Amount in the current Amount in the previous

the fair value period period

Trading financial assets 643644.40

Total 643644.40

47. Investment income

Unit: RMB

Amount in the Amount in the

Item

current period previous period

Investment income from financial assets held for

5652908.715195211.68

trading during the holding period

Returns on long-term equity investments calculated

11487600.932976431.04

by the equity method

Dividend income from investments in other equity

5600000.00

instrument during the holding period

Total 17140509.64 13771642.72

48. Credit loss

Unit: RMB

Amount in the current Amount in the previous

Item

period period

Bad debt loss of accounts receivable -2159157.71

Total -2159157.71

49. Gains from disposal of assets

Unit: RMB

Source of gains from disposal Amount in the previous

Amount in the current period

of assets period

Gains on disposal of non-current

365503.541156732.52

assets

Total 365503.54 1156732.52

50. Non-operating revenue

Unit: RMB

1582026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Amount included

Amount in the Amount in the in the current non-

Item

current period previous period recurring profit or

loss

Recovery of historical legacy

263914.26263914.26

funds

Total 263914.26 263914.26

51. Non-operating expenses

Unit: RMB

Amount included

Amount in the Amount in the in the current

Item

current period previous period non-recurring

profit or loss

Payment for liquidated

270.2092279.19270.20

damages and other funds

Total 270.20 92279.19 270.20

52. Income tax expense

(1) Income tax expenses schedule

Unit: RMB

Amount in the Amount in the

Item

current period previous period

Deferred income tax expense 5133433.23

Income tax expenses for the current period 14764.28 53667.86

Total 5148197.51 53667.86

(2) Adjustment process of accounting profits and income tax expenses

Unit: RMB

Item Amount in the current period

Total consolidated profit in the current period 33555238.60

Income tax expense calculated at legal/applicable tax

5033285.79

rate

Impact of different tax rates applied by subsidiaries 2158732.49

Impact of income tax in the periods before adjustment

Impact of non-taxable income -2434602.70

1592026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Amount in the current period

Impacts of non-deductible costs expenses and losses 138116.44

Impact of additional deduction for R&D expenses -1155018.32

Impact of using deductible losses on the deferred tax

-932204.58

assets not recognized previously

Effect of deductible temporary differences or

deductible losses from deferred tax assets -31215350.21

unrecognized in the current period

Income tax expense 5148197.51

53. Other comprehensive income

For details please refer to "Note VII. 35 Other comprehensive income".

54. Items of statement of cash flows

(1) Cash related to operating activities

1) Cash generated from other operating activities

Unit: RMB

Amount in the current Amount in the

Item

period previous period

Received current accounts etc. 5397518.13 9681785.94

Recovered guarantee deposits 3700000.00

Interest revenue 225983.15 676917.86

Income from government grants 75193.90 110868.48

Total 9398695.18 10469572.28

2) Cash used in other operating activities

Unit: RMB

Amount in the current Amount in the

Item

period previous period

Paid guarantee deposits 123136578.90

Expenses during payment term 9989384.72 7982293.72

Paid current accounts etc. 1282764.03 1498618.82

Total 134408727.65 9480912.54

1602026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(2) Cash related to investing activities

1) Cash generated from other investing activities

Unit: RMB

Amount in the current Amount in the

Item

period previous period

Cash from redemption of structural deposits

74958596.95

large-denomination certificates of deposit etc.Recovery of principal and interest of loans from

15015192.12

non-related parties

Total 74958596.95 15015192.12

2) Cash used in other investing activities

Unit: RMB

Amount in the current Amount in the

Item

period previous period

Savings for structural deposits large-

192463428.68

denomination certificates of deposit etc.Cash paid for liquidation and deregistration of

1181765.23

subsidiaries

Total 193645193.91

(3) Cash related to financing activities

1) Cash used in other financing activities

Unit: RMB

Amount in the current Amount in the

Item

period previous period

Payment for principal and interest of lease

2292033.432142680.00

liabilities

Total 2292033.43 2142680.00

1612026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

2) Changes in liabilities arising from financing activities

Unit: RMB

Increase in the current period Decrease in the current period

Item Beginning balance Non-cash Non-cash Ending balance

Cash changes Cash changes

Change Change

Short-term borrowings 172094604.45 1929824.39 1921617.74 172102811.10

Long-term borrowings 168421492.31 2790325.59 165631166.72

Non-current liabilities

maturing within one 7340810.74 9216090.49 5961617.92 459742.03 10135541.28

year

Lease liabilities 24668020.16 7852966.54 59885.06 32461101.64

Total 372524927.66 18998881.42 7883235.66 3309952.68 380330620.74

1622026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

55. Supplementary information to the statement of cash flows

(1) Supplementary information to the statement of cash flows

Unit: RMB

Amount for the

Supplementary information Current amount

previous period

1. Reconciliation of net profit to cash flows

——

from operating activities:

Net profit 28407041.09 -25036572.88

Add: Provision for asset impairment

Credit impairment loss 2159157.71

Depreciation of fixed assets and investment

16896355.7011460327.94

property

Depreciation of right-of-use assets 2875149.18 2876532.54

Amortization of intangible assets 277243.38 188865.06

Amortization of long-term prepaid expense 1042096.32 854717.25

Amortization of deferred income -3172940.10 -3172940.10

Losses on disposal of fixed assets intangible

assets and other long-lived assets (" " indicates -365503.54 -1156732.52

income)

Losses on scrap of fixed assets (" " indicates

income)

Losses on changes in fair value (" " indicates

-643644.40

income)

Finance costs (" " indicates income) 5232946.26 1412373.17

Investment loss (" " indicates income) -17140509.64 -13771642.72

Decrease in deferred tax assets ("-" for increase) 1811.19

Increase in deferred income tax liabilities (" "

5131622.04

indicates decrease)

Decrease in inventories (" " indicates increase) -837963.28 1846599.47

Decrease in accounts receivable generated from

-116719238.51318259.02

operating activities (" " indicates increase)

Increase in accounts payable used in operating

-36826401.77-38073551.74

activities (" " indicates decrease)

Others

Net cash generated from/used in operating -113682778.37 -62253765.51

1632026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Amount for the

Supplementary information Current amount

previous period

activities

2. Significant investment and financing

activities not involving cash

Conversion of liabilities into capital

Convertible corporate bonds due within one year

Fixed assets acquired under finance leases

3. Net changes in cash and cash equivalents:

Ending balance of cash 114647089.18 104140868.84

Less: beginning balance of cash 133255608.28 471067121.66

Plus: ending balance of cash equivalents

Less: beginning balance of cash equivalents

Net increase in cash and cash equivalents -18608519.10 -366926252.82

(2) Breakdowns of cash and cash equivalents

Unit: RMB

Item Ending balance Beginning balance

I. Cash 114647089.18 133255608.28

Including: Cash on hand 29648.02 30635.37

Bank deposits available for payment at any time 113605282.34 133224939.08

Other monetary funds available for payment at

1012158.8233.83

any time

Deposits with central bank available for

payment

Deposits with banks and other financial

institutions

Placements with banks and other financial

institutions

II. Cash equivalents

Including: investments in bonds maturing within

three months

III. Ending balance of cash and cash

114647089.18133255608.28

equivalents

Including: Cash and cash equivalents with

restricted use right by the parent company or

1642026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Ending balance Beginning balance

subsidiaries of the Company

(3) Monetary funds not classified as cash and cash equivalents

Unit: RMB

Reasons for not

classifying the

Amount for the

Item Current amount funds as cash

previous period

and cash

equivalents

Frozen

Guarantee deposits etc. 127729947.70 5112100.00

restricted

Co-managed

accounts

Co-managed account funds 4619341.40

payment

restricted

Total 132349289.10 5112100.00

56. Foreign currency monetary items

(1) Foreign currency monetary items

Unit: RMB

Ending balance of Exchange Ending balance of

Item

foreign currency rate translated RMB

Monetary assets — — 7016903.90

Including: USD 952264.41 6.8109 6485777.67

EUR 1018.00 7.7671 7906.91

HKD 589516.82 0.8685 512024.82

Singapore Dollar 2128.03 5.2605 11194.50

(2) Description of foreign operating entities including for significant foreign operating

entities disclosure of their principal place of business outside of the country the recording

currency and the basis of selection and disclosure of the reasons for any change in the

recording currency

Significant business Main place of Recording

Basis of selection

entities overseas business Currency

Cambodia Branch

Settlement currency for local

Shenzhen Shennan Power Cambodia USD

business activities

Gas Turbine Engineering

1652026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Significant business Main place of Recording

Basis of selection

entities overseas business Currency

Technology Co. Ltd.

57. Lease

(1) The Company acted as lessee:

Unit: RMB

Amount in the current Amount in the

Item

period previous period

Interest expense on lease liabilities 390186.22 470748.87

Total cash outflow related to leases 2253512.11 2142680.00

(2) The Company acted as the lessor

1） Operating lease as lessor

Including: revenue related to

Item Lease income variable lease payments not

included in lease receipts

House leasing 969914.75

Total 969914.75

VIII. R&D expenditures

Unit: RMB

Amount in the previous

Item Amount in the current period

period

Employee Compensation 7462171.98 8153835.98

Depreciation charges 235745.16 394879.28

Others 2205.00 3720.00

Total 7700122.14 8552435.26

Including: Expensed R&D

7700122.148552435.26

expenditure

Capitalized R&D

expenditure

1662026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

IX. Changes in Consolidation Scope

1. Change of consolidation scope due to other reasons

(1) The Company invested and established a controlling subsidiary Shennan Power Zhengmai

Energy Technology (Shenzhen) Co. Ltd. which completed its industrial and commercial registration on

May 22 2026 and has been stated as the scope of the Company's consolidated financial statements

since then.

(2) On June 30 2026 the Company signed the Capital Contribution and Cooperation Agreement on

the Joint Establishment of Shennan Power Shangao Smart Energy (Shenzhen) Co. Ltd. with Shandong

Hi-Speed (Shenzhen) Investment Co. Ltd. to jointly establish Shennan Power Shangao Smart Energy

(Shenzhen) Co. Ltd. which completed its industrial and commercial registration on July 21 2026 and

has been included in the scope of the Company's consolidated statements since then.The Company disclosed the Announcement on External Investment to Establish a Controlling

Subsidiary (Announcement No.: 2026-041) on the Shenzhen Stock Exchange on July 2 2026 fulfilling its

information disclosure obligations regarding the above matters.X. Equity in other entities

1. Equity in the subsidiaries

(1) Compositions of the Group

Shareholding percentage

Main place

(%) Acquisition

Name of subsidiary of

method

business Direct Indirect

Shennan Power (Zhongshan)

Zhongshan 80.00 Establishment

Electric Power Co. Ltd.Shenzhen Shennan Power Gas

Turbine Engineering Technology Shenzhen 100.00 Establishment

Co. Ltd.Shenzhen Shennan Power

Shenzhen 100.00 Establishment

Environmental Protection Co. Ltd.Shenzhen Xiefu Energy Co. Ltd. Shenzhen 50.00 Establishment

Shenzhen New Power Industrial

Shenzhen 100.00 Establishment

Co. Ltd.Shennan Energy (Singapore) Pte.Singapore 100.00 Establishment

Ltd.

1672026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Shareholding percentage

Main place

(%) Acquisition

Name of subsidiary of

method

business Direct Indirect

Hong Kong Xingdesheng Co. Ltd. Hong Kong 100.00 Establishment

Shennan Power Xiwan Energy

Zhongshan 51.00 Establishment

(Zhongshan) Co. Ltd.Shennan Power Energy Technology

Chengdu 75.00 Acquisition

(Sichuan) Co. Ltd.Shennan Power Zhengmai Energy

Shenzhen 51.00 Establishment

Technology (Shenzhen) Co. Ltd.

(2) Significant non-wholly-owned subsidiaries

Unit: RMB

Dividends

Profit or loss

Shareholding declared to be Balance of

attributable to

of minority distributed to minority interests

Name of subsidiary minority

shareholders minority as at the end of the

shareholders

(%) shareholders period

in this period

in this period

Shennan Power

(Zhongshan) Electric 20.00 766201.52 -12438227.04

Power Co. Ltd.Shennan Power Energy

Technology (Sichuan) 25.00 -203526.65 5354768.39

Co. Ltd.

1682026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(3) Key financial information of significant non-wholly-owned subsidiaries

Unit: RMB

Ending balance

Name of subsidiary Non-current Current Non-current

Current assets Total assets Total liabilities

assets liabilities liabilities

Shennan Power (Zhongshan) Electric Power Co. 471991978.71 205995685.90 677987664.61 550503474.38 205493090.82 755996565.20

Ltd.Shennan Power Energy Technology (Sichuan) Co. 99249823.85 4013659.55 103263483.40 81121027.96 444193.39 81565221.35

Ltd.

(Continued)

Beginning balance

Name of subsidiary Non-current Current Non-current

Current assets Total assets Total liabilities

assets liabilities liabilities

Shennan Power (Zhongshan) Electric Power Co.

449883274.52212738236.64662621511.16549867941.06202794601.98752662543.04

Ltd.Shennan Power Energy Technology (Sichuan) Co.

44291225.804137419.6148428645.4125372022.63544254.1325916276.76

Ltd.

(Continued)

1692026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Amount in the current period

Net cash generated

Name of subsidiary Total comprehensive

Operating revenue Net profit from/used in operating

income

activities

Shennan Power (Zhongshan) Electric Power Co.

38910196.3411902174.2311902174.2351875726.41

Ltd.Shennan Power Energy Technology (Sichuan) Co.

3520854.64-814106.60-814106.60-73728815.20

Ltd.

(Continued)

Amount in the previous period

Net cash generated

Name of subsidiary

Operating revenue Net profit Total comprehensive income from/used in operating

activities

Shennan Power (Zhongshan) Electric Power Co.

4471436.76-10630183.09-10630183.09-1672568.49

Ltd.Shennan Power Energy Technology (Sichuan) Co.Ltd.

1702026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

2. Equity in joint ventures or associates

(1) Summarized financial insignificant of unimportant joint ventures and associates

Unit: RMB

Ending balance/amount incurred Beginning balance/amount

in the current period incurred in previous period

Associates:

Total book value of investments 166565065.15 196827515.83

The total of following items according

to the shareholding proportions

-Net profit 11248316.94 8867883.86

-Other comprehensive income

-Total comprehensive income 11248316.94 8867883.86

XI. Government grants

1. Liability items involving government grants

Unit: RMB

Subsidy Amount recognized

Amount transferred to other

increase in as non-operating

Account title Beginning balance income for the current

the current income for the

period

period current period

Deferred

41913447.413172940.10

income

(Continued)

Other changes in the current Related to assets/

Account title Ending balance

period income

Deferred income 38740507.31 Related to assets

2. Government grants included in the current profit or loss

Unit: RMB

Account title Amount in the current period Amount in the previous period

Other income 3172940.10 3172940.10

1712026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

XII. Risks associated with financial instruments

The Company's main financial instruments are equity investments long-term and short-term borrowings accounts

receivable accounts payable other receivables etc. which result in various financial instrument risks in its daily business

operations mainly including exchange rate risks interest rate risks price risks credit risks and liquidity risks. The risks

associated with these financial instruments and the risk management policies adopted by the Company to mitigate such

risks are described below. The Management of the Company manages and monitors risk exposures to keep such risks

under control within the limited scope.The Company adopts sensitivity analysis to analyze the possible impact of reasonable and possible changes of risk

variables on the current gains/losses or shareholders' equity. As any risk variable seldom changes in isolation and the

correlation between the variables will have a significant effect on the final affected amount of the change of a risk variable

the following contents are carried out under the assumption that the change of each variable is independently.

1. Management objectives and policies for risks

The Company's objective in engaging in risk management is to achieve an appropriate balance between risks and

returns minimize the negative impact of risks on the Company's operation and maximize the interests of shareholders

and other equity investors. Based on such risk management objective the Company's basic risk management strategy is

to determine and analyze risks establish an appropriate risk tolerance bottom line and risk management and timely and

reliable supervision of all risks to control the risks within the limited scope.

(1) Market risks

1) Exchange rate risk

Exchange rate risks refer to the risks that the fair value or future cash flows of a financial instrument may fluctuate due

to changes in foreign exchange rates. The Company tries to align foreign currency income with foreign currency

expenditures to mitigate exchange rate risks. In addition the Company may also sign forward foreign exchange contracts

or currency swap contracts to achieve the purpose of hedging exchange rate risks. During the current and previous periods

the Company did not sign any forward foreign exchange contract or currency swap contract.The exchange rate risks faced by the Company mainly arise from financial assets and liabilities denominated in foreign

currencies. The amount of financial assets and liabilities in foreign currencies converted into RMB are presented as follows:

Unit: RMB

Item Ending balance Beginning balance

Monetary funds - USD 6485777.67 5924483.72

Monetary funds - Other foreign currencies 531126.23 125117.98

Total 7016903.90 6049601.70

2) Interest rate risk

1722026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Interest rate risks refer to the risks that the fair value or future cash flows of a financial instrument may fluctuate due

to changes in market interest rates. The risk of changes in cash flows of financial instruments caused by interest rate

changes is mainly related to bank borrowings with floating interest rates. The sensitivity analysis of interest rate risks is

based on the following assumptions:

Changes in market interest rates may affect the interest income or expense of variable-rate financial instruments; for

fixed-rate financial instruments measured at fair value changes in market interest rates only affect the interest income or

expense; for derivative financial instruments designated as hedging instruments changes in market interest rates affect

the fair value and all interest rate hedges are expected to be highly effective; the discounted cash flow method is used to

calculate the fair value changes of derivative financial instruments and other financial assets and liabilities based on the

market interest rates on the balance sheet date.

(2) Credit risk

Credit risks refer to the risks that one party to a financial instrument fails to discharge an obligation resulting in

financial losses to the other party. The Company is mainly exposed to customer credit risks caused by sales on credit.Before signing a new agreement the Company evaluates the credit risks of new customers including external credit

ratings and in some cases bank reference letters (if available). The Company has set a credit limit for each customer

namely the maximum amount without requisite additional approval.The Company keeps overall credit risks under control through quarterly monitoring of the credit ratings of existing

customers and monthly review of the aging analysis of accounts receivable. In monitoring the credit risks of customers

they are grouped according to credit characteristics. Customers rated as "high risk" are placed on the restricted customer

list and only with additional approval may the Company sell on credit in future periods; otherwise customers are

required to pay in advance.

(3) Liquidity risks

Liquidity risks refer to the risks that an enterprise may encounter a shortage of funds when performing obligations

settled by delivering cash or other financial assets. The Company's policy is to ensure that it has sufficient cash to repay

mature debts. Liquidity risks are managed and controlled by the Financial Department of the Company to ensure

sufficient funds to repay debts under all reasonably foreseeable circumstances by monitoring cash balances marketable

securities that can be realized at any time and roll forecasts of cash flows for the next 12 months.

2. Sensitivity analysis

The Company adopts sensitivity analysis to analyze the possible impact of reasonable and possible changes of risk

variables on the current gains/losses or shareholders' equity. As any risk variable seldom changes in isolation and the

correlation between the variables will have a significant effect on the final affected amount of the change of a risk variable

the following contents are carried out under the assumption that the change of each variable is independently.

(1) Sensitivity analysis of foreign exchange risks

Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow hedging of overseas

1732026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

operations are highly effective.On the basis of the above assumption provided that other variables remain unchanged the impact of reasonable

changes in the exchange rate on current gains/losses and equity after tax is as follows:

Unit: RMB

Amount in the current period Amount in the previous period

Item Exchange rate Impact on net Impact on Impact on net Impact on

fluctuations profit shareholders' profit shareholders'

equity equity

All foreign Revaluation against

350845.19350845.19308890.90308890.90

currencies RMB by 5%

All foreign Depreciation against

-350845.19-350845.19-308890.90-308890.90

currencies RMB by 5%

(2) Sensitivity analysis of interest rate risks

Sensitivity analysis of interest rate risk is based on the following assumptions:

Changes in market interest rates affect the interest income or expense of financial instruments with variable interest

rates;

For financial instruments with fixed interest rates measured at fair value market interest rate changes affect only

their interest income or expense;

Changes in the fair values of derivative financial instruments and other financial assets and liabilities are calculated

at the market interest rate on the balance sheet date by discounted cash flow.As of June 30 2026 the interests of the Company's bank borrowings with floating interest rates totaled RMB

4360995.62 of which the interests of short-term borrowings with floating interest rates were RMB 1929824.44 and

those of long-term borrowings were RMB 2431171.18. On the basis of the above assumptions if other variables remain

unchanged the pre-tax impact of an assumed change in interest rates of 50 basis points on the current gains/losses and

shareholders' equity is as follows:

Unit: RMB

Amount in the current period Amount in the previous period

Interest

Impact on Impact on

Item rate Impact on net Impact on net

shareholders' shareholders'

fluctuations profit profit

equity equity

Borrowings Increased by

at floating 50 basis -218049.78 -218049.78 -67598.13 -67598.13

interest points

1742026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

rates

Borrowings

Decreased

at floating

by 50 basis 218049.78 218049.78 67598.13 67598.13

interest

points

rates

XIII. Disclosure of fair value

The input values used for fair value measurement are divided into three levels:

The Level-1 input is an unadjusted quoted price in an active market for the same assets and liabilities available on

the measurement date.Level 2 input value is the directly or indirectly observable input value of the relevant assets or liabilities except for the

level 1 input value.The Level-3 inputs are the unobservable inputs of related assets and liabilities.The level to which the fair value measurement result belongs is determined by the lowest level that is significant to

the fair value measurement as a whole.

1.Year-end fair value of assets and liabilities measured at fair value

Unit: RMB

Fair value as at the end of the per iod

Level-1 fair

Item value Level-2 fair value Level-3 fair value

Total

measureme measurement measurement

nt

I. Continuous fair value

————

measurement

(I) Trading financial assets 50643644.40 50643644.40

1. Financial assets measured

at fair value through current

profit or loss

2. Financial assets

designated to be measured at

50643644.4050643644.40

fair value through current

gains/losses

(1) Investments in debt

1752026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Fair value as at the end of the per iod

Level-1 fair

Item value Level-2 fair value Level-3 fair value

Total

measureme measurement measurement

nt

instruments

(2) Investments in equity

50643644.4050643644.40

instruments

(II) Other debt investments

(III) Other equity instrument

234179057.20234179057.20

investments

Total assets continuously

284822701.60284822701.60

measured at fair value

2. Qualitative and quantitative valuation techniques and important parameters of sustainable and non-

sustainable items measured on the basis of fair value of level 2

The fair value of ending structural deposits is subject to the forecast of future cash flows according to the product

type and yield.

3、 Qualitative and quantitative data on valuation techniques and important parameters adopted for projects

continuously and non-continuously measured at Level-3 fair value

For non-trading equity instrument investments and private equity investments the Company uses valuation

techniques to determine their fair value. The valuation models used are mainly discounted cash flow model and market

comparable company model. The inputs of valuation techniques mainly include risk-free interest rate benchmark interest

rate exchange rate credit spread liquidity premium and illiquidity discount.XIV. Related parties and related party transactions

1. Parent company

No shareholder of the Company holds 50% or more shares and none forms a control over the Company through other

means. Therefore the Company does not have a parent company.

2. Subsidiaries of the Company

Please refer to "Note X.1. (1) Subsidiaries" for the information of subsidiaries.

1762026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

3. Other related parties

Names of other related parties Relationship between other related parties with the COOEC

Shenzhen Energy Group Co. Ltd. Legal persons holding 5% or more shares of the Company

Hong Kong Nam Hoi (International) Limited Legal persons holding 5% or more shares of the Company

Shenzhen Guangju Industrial Co. Ltd. Legal persons holding 5% or more shares of the Company

Shenzhen Capital Holdings Co. Ltd. Legal persons indirectly holding 5% or more shares of the Company

Shenzhen Guangju Energy Co. Ltd. and its Shenzhen Guangju Energy Co. Ltd. is a legal person indirectly

subsidiaries holding 5% or more shares of the Company.Shenzhen MTC Co. Ltd. An enterprise controlled by Shenzhen Capital Holdings Co. Ltd.An affiliate in which Shenzhen Capital Holdings Co. Ltd. holds

Shenzhen Clou Electronics Co. Ltd.shares

Shenzhen IBE Green Technology Culture Co. An affiliate ultimately controlled by Shenzhen Capital Holdings Co.Ltd. Ltd.Directors and senior executives of the Company Key management personnel

4. Related party transactions

(1) Related party transactions on purchase and sales of goods rendering and receipt of services

1) Purchase of goods/receipt of services

Unit: RMB

Content of related-party Amount in the Amount in the

Related party

transactions current period previous period

Shenzhen Institute of Building

Provision of event venues

Research Co. Ltd. and its 6080.00

materials etc.subsidiaries

Shenzhen Clou Electronics Co. Ltd. Energy management

2158000.00

and its subsidiaries services

Total 2164080.00

2) Sales of goods/ rendering of services

Unit: RMB

1772026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Content of related- Amount in the current Amount in the previous

Related party

party transactions period period

Energy management

Shenzhen MTC Co. Ltd. 670905.29 780548.34

services

Total 670905.29 780548.34

(2) Guarantee of related parties

During the Reporting Period the Company had no related party guarantee.

(3) Remuneration of key management personnel

Amount in the previous

Item Amount in the current period

period

Remuneration for key management personnel RMB 2371200 RMB 2725500

5. Balance of amount receivable and payable by related parties

(1) Receivables

Unit: RMB

Ending balance Beginning balance

Project Related party Provision for Provision for

Book balance Book balance

bad debts bad debts

Accounts Shenzhen Energy

6535090.736535090.73

receivable Group Co. Ltd.Accounts Shenzhen MTC Co.

125852.94250027.10

receivable Ltd.Contract Shenzhen MTC Co.

233260.26112005.13

assets Ltd.China Technology

Contract

Development Group 1664.15

assets

Corporation

Shenzhen Clou

Accounts

Electronics Co. Ltd. 8502.00 66264.00

receivable

and its subsidiaries

Contract Shenzhen Clou

139330.00139330.00

assets Electronics Co. Ltd.Other Shenzhen Clou

330829.51

receivables Electronics Co. Ltd.Total 7042035.93 7435210.62

1782026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(2) Payables

Unit: RMB

Ending balance Beginning balance

Provision Provision

Project Related party

Book balance for bad Book balance for bad

debts debts

Shenzhen Clou

Accounts

Electronics Co. Ltd. 16950.00 900000.00

payable

and its subsidiaries

Total 16950.00 900000.00

XV. Commitments and Contingencies

1. Significant commitments

(1) Information on letters of guarantee issued as of June 30 2026

The Company's subsidiary Energy Technology Company issued a performance guarantee of RMB 68.2071 million

through Shenzhen Yuncheng Branch of China Merchants Bank of which RMB 36.7269 million will expire on December 24

2026 and RMB 31.4802 million will expire on June 24 2027.

The Company's subsidiary Shennandian Engineering Company issued a performance guarantee of USD 5.1559

million through Shenzhen Branch of China Merchants Bank (equivalent to approximately RMB 35.9734 million based on

the central parity rate of 6.9771 announced on the official website of the People's Bank of China on January 29 2026)

which will expire on February 28 2035.The Company issued a performance guarantee of USD 5.1559 million for Shennandian Engineering Company through

Shenzhen Branch of China Merchants Bank (equivalent to approximately RMB 35.3841 million based on the central parity

rate of 6.8628 announced on the official website of the People's Bank of China on April 30 2026) which will expire on

February 28 2035. For details please refer to the Progress Announcement on Providing Guarantees for Holding

Subsidiaries in 2026 (Announcement No.: 2026-033) disclosed by the Company on Securities Times and CNINFO on May

72026.

The Company applied to Shenzhen Branch of Industrial Bank Co. Ltd. for the issuance of a payment guarantee of

RMB 30000000 within the credit line which will expire on July 10 2026.

(2) Other Commitments

As of June 30 2026 except for the above-mentioned matters the Company had no other important commitments

subject to disclosure.

2. Contingencies

As of June 30 2026 the Company had no important contingencies subject to disclosure.

1792026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

XVI. Matters following the Balance Sheet Date

As of June 30 2026 the Company had no other subsequent matters subject to disclosure.XVII. Other Significant Matters

1. Annuity plan

According to the enterprise annuity plan the Company accrues and pays enterprise annuities at 8% of employees'

salaries.

2. Segment

Determination basis and accounting policies for reporting segments

For management purposes the Company and its subsidiaries are divided into business units based on products and

services and the Company has the following three reporting segments:

* Electricity generation and sales segment;

* Comprehensive energy services segment;

* Other segments.The Management of the Company regularly evaluates the operating results of the segments to determine the allocation

of resources and evaluate their performance.Information on segment reporting is disclosed according to the accounting policies and measurement standards

adopted by each segment when reporting to the management and these measurement bases are consistent with the

accounting and measurement bases when preparing the financial statements.Financial information of reporting segments

Unit: RMB

Electricity Comprehensive

Inter-segment

Item generation and energy services Other segments Total

offset

sales segment segment

Operating

141374845.6168683447.91860735.259110726.44201808302.33

revenue

Cost of

111216000.1135292417.1679545.849072194.33137515768.78

sales

Total

2322419505.68615615961.201007180497.301647188518.942298027445.24

assets

Total

518245328.23349800629.34567467224.23924066664.65511446517.15

liabilities

1802026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

XVIII. Notes to the main items of the parent company's financial statements

1. Accounts receivable

(1) Disclosure by aging

Unit: RMB

Aging Ending book balance Beginning book balance

Within 1 year (inclusive) 61744388.17 42375469.95

61744388.1742375469.95

Total

(2) Disclosure by provision method for bad debts

Unit: RMB

Ending balance

Provision for bad

Book balance

debts

Type

Provision Book value

Percentage

Amount Amount percentage

(%)

(%)

Provision set

aside for bad

debts by the

single item

Provision for bad

debts accrued by

61744388.17100.0061744388.17

credit risk

portfolio

Total 61744388.17 100.00 61744388.17

(Continued)

Beginning balance

Provision for bad

Book balance

debts

Type

Provision Book value

Percentage

Amount Amount percentage

(%)

(%)

Provision set

aside for bad

1812026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Beginning balance

Provision for bad

Book balance

debts

Type

Provision Book value

Percentage

Amount Amount percentage

(%)

(%)

debts by the

single item

Provision for bad

debts accrued by

42375469.95100.0042375469.95

credit risk

portfolio

Total 42375469.95 100.00 42375469.95

1) Provision for bad debts of accounts receivable by portfolio

Unit: RMB

Ending balance

Aging Provision for bad Provision percentage

Book balance

debts (%)

Portfolio 2: Receivables from

61744388.17

electricity generation and sales

Total 61744388.17

(3) No provision for bad debts accrued recovered or reversed in the current period

(4) No actual write-off of accounts receivable for the current period

(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets

Unit: RMB

1822026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending

balance of

Ratio to the total provision

Ending Ending balances of amount of ending for bad

Ending balance of

balance of accounts balance of debts of

Unit accounts

contract receivable and accounts accounts

receivable

assets contract assets receivable and receivable

contract assets (%) and

contract

assets

Shenzhen

Power Supply

61744388.1761744388.17100.00

Bureau Co.Ltd.Total 61744388.17 61744388.17 100.00

2. Other receivables

Unit: RMB

Item Ending balance Beginning balance

Interest receivable

Dividends receivable 15000000.00 22500000.00

Other receivables 594229534.27 545995288.27

Total 609229534.27 568495288.27

(1) Dividends receivable

1) Classification of dividends receivable

Unit: RMB

Project (or investees) Ending balance Beginning balance

Shenzhen Xiefu Energy Co. Ltd. 15000000.00 22500000.00

Total 15000000.00 22500000.00

2) No significant dividends receivable aged over 1 year in the current period

3) No provision for bad debts accrued recovered or reversed in the current period

4) No actual write-off of dividends receivable for the current period

(2) Other receivables

1832026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

1) Classification of other receivables by nature of payment

Unit: RMB

Nature of funds Ending book balance Beginning book balance

Transactions with related parties within the

591941286.62543701490.46

consolidation scope

Other receivables and temporary payments 15000581.55 14992669.25

Historical legacy funds 11724938.94 11724938.94

Margin and deposit 1498563.54 1545040.06

Receivables from employees 109076.26 76062.20

Total 620274446.91 572040200.91

2) Disclosure by aging

Unit: RMB

Aging Ending book balance Beginning book balance

Within 1 year (inclusive) 85184758.06 35229834.56

1-2 years 49766118.54 51486796.04

2-3 years 459260749.28 459260749.28

Over 3 years 26062821.03 26062821.03

620274446.91572040200.91

Total

3) Disclosure by provision method for bad debts

Unit: RMB

Ending balance

Book balance Provision for bad debts Book value

Type Provision

Percentag

Amount Amount percentag

e (%)

e (%)

Provision set

aside for bad

26044912.644.2026044912.64100.00

debts by the

single item

1842026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending balance

Book balance Provision for bad debts Book value

Type Provision

Percentag

Amount Amount percentag

e (%)

e (%)

Provision set

aside for bad 594229534.27 95.80 594229534.27

debts by portfolio

Total 620274446.91 100.00 26044912.64 4.20 594229534.27

(Continued)

Beginning balance

Book balance Provision for bad debts Book value

Type Provision

Percentag

Amount Amount percentag

e (%)

e (%)

Provision set

aside for bad

26044912.644.5526044912.64100.00

debts by the

single item

Provision set

aside for bad 545995288.27 95.45 545995288.27

debts by portfolio

Total 572040200.91 100.00 26044912.64 4.55 545995288.27

Provision for bad debts of other receivables by single item

Unit: RMB

Beginning balance Ending balance

Provision

Name Provision for bad Provision for Reasons for

Book balance Book balance percentage

debts bad debts the provision

(%)

Huiyang Historical

Kangtai legacy issues

14311626.7014311626.7014311626.7014311626.70100.00

Industrial which are

Co. Ltd. expected to

Dividends be

9988934.789988934.789988934.789988934.78100.00

and taxes unrecoverable

1852026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Beginning balance Ending balance

Provision

Name Provision for bad Provision for Reasons for

Book balance Book balance percentage

debts bad debts the provision

(%)

receivable

from

employee

benefit fund

Receivables

from the

purchase of 1736004.16 1736004.16 1736004.16 1736004.16 100.00

employee

dormitories

Others 8347.00 8347.00 8347.00 8347.00 100.00

Total 26044912.64 26044912.64 26044912.64 26044912.64 — —

* Provision set aside for bad debts of other receivables by portfolio

Unit: RMB

Ending balance

Aging Provision for bad Provision percentage

Book balance

debts (%)

Portfolio 4: Transactions with related

591941286.62

parties within the consolidation scope

Portfolio 5: Margin deposit and petty

1498563.54

cash portfolio

Portfolio 7: Other receivables and

789684.11

temporary payments

Total 594229534.27 —

* Provision set aside for bad debts of other receivables by the general expected credit loss model

Unit: RMB

1862026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Phase I Phase II Phase III

Expected credit Expected credit

Provision for bad Expected credit loss during the loss during the

Total

debts loss for the next whole outstanding whole outstanding

12 months maturity (without maturity (with

credit impairment) credit impairment)

Balance as of January 1 26044912.64 26044912.64

2026

Balance as of January 1

2026 in the current — — — —

period

-- Transfer to Stage II

-- Transfer to Stage III

-- Reversal to Stage II

-- Reversal to Stage I

Provision for the current

period

Reversal in this period

Charge-off in the current

period

Write-off in the current

period

Other changes

Balance as of June 30

26044912.6426044912.64

2026

4） Provision for bad debts accrued recovered or reversed in the current period

Unit: RMB

Changes in the current period

Beginning

Type Recovered Charge-off or Ending balance

balance Provision Others

or reversed write-off

Provision

set aside

for bad

26044912.6426044912.64

debts by

the single

item

1872026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Changes in the current period

Beginning

Type Recovered Charge-off or Ending balance

balance Provision Others

or reversed write-off

Provision

for bad

debts

accrued by

credit risk

portfolio

Total 26044912.64 26044912.64

Of which there was no recovery or reversal of provision for bad debts with significant amounts in the current

period.

5) No actual write-off of other receivable for the current period

6) Other receivables of the top five ending balances collected by debtor

Unit: RMB

Ratio to the

total ending

Provision for bad

Nature of balance of

Unit Ending balance Aging debts

funds other

Ending balance

receivables

(%)

Transaction

s with

Shennan Power

related

(Zhongshan) Within 1 year 1-2

parties 526007448.55 84.80

Electric Power Co. years 2-3 years

within the

Ltd.consolidatio

n scope

Transaction

s with

Shennan Power related

Energy Technology parties 56827500.23 Within 1 year 9.16

(Sichuan) Co. Ltd. within the

consolidatio

n scope

Huiyang Kangtai Transaction 14311626.70 Over 5 years 2.31 14311626.70

1882026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ratio to the

total ending

Provision for bad

Nature of balance of

Unit Ending balance Aging debts

funds other

Ending balance

receivables

(%)

Industrial Co. Ltd. s with

external

agencies

Dividends and

Receivable

taxes receivable

s from 9988934.78 Over 5 years 1.61 9988934.78

from employee

employees

benefit fund

Transaction

Shennan Power s with

Gas Turbine related

Engineering parties 6013355.81 Within 1 year 0.97

Technology Co. within the

Ltd. consolidatio

n scope

Total — 613148866.07 — 98.85 24300561.48

7) Centralized fund management

Unit: RMB

Amount reported as other receivables due to

582035312.24

centralized fund management

Due to the centralized fund management of the Company the

principal and interest receivable from subsidiaries is RMB

Description 531035025.34 and the principal and interest payable to

subsidiaries is RMB 51000286.90.

3. Long-term equity investments

Unit: RMB

Ending balance

Item

Book balance Provision for impairment Book value

Investment in

1068895126.58445002245.26623892881.32

subsidiaries

1892026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Ending balance

Item

Book balance Provision for impairment Book value

Investments in

associates and joint 101058390.14 101058390.14

ventures

Total 1169953516.72 445002245.26 724951271.46

(Continued)

Beginning balance

Item

Book balance Provision for impairment Book value

Investment in

1068895126.58445002245.26623892881.32

subsidiaries

Investments in

associates and joint 97697539.79 97697539.79

ventures

Total 1166592666.37 445002245.26 721590421.11

1902026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

(1) Investment in subsidiaries

Unit: RMB

Provision for Increase/decrease in this period Provision for

Beginning balance impairment Provision Ending balance impairment

Investee Additional Decrease in

(Book value) Beginning for Others (Book value) Ending

investment investment

balance impairment balance

Shenzhen

Shennan Power

Environmental 49639016.04 20552688.77 49639016.04 20552688.77

Protection Co.Ltd.Shenzhen Xiefu

26650000.0026650000.00

Energy Co. Ltd.Shennan Power

Gas Turbine

Engineering 94460360.00 94460360.00

Technology Co.Ltd.Shennan Power

(Zhongshan)

1.00410740000.001.00410740000.00

Electric Power

Co. Ltd.Shennan Energy

6703800.006703800.00

(Singapore) Pte.

1912026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Provision for Increase/decrease in this period Provision for

Beginning balance impairment Provision Ending balance impairment

Investee Additional Decrease in

(Book value) Beginning for Others (Book value) Ending

investment investment

balance impairment balance

Ltd.Shennan Power

Energy

Technology 16540285.02 16540285.02

(Sichuan) Co.Ltd.Shenzhen New

Power Industrial 429899419.26 13709556.49 429899419.26 13709556.49

Co. Ltd.Total 623892881.32 445002245.26 623892881.32 445002245.26

Investments in associates and joint ventures

Unit: RMB

Increase/decrease in this period

Beginning

Profit or loss of

Beginning balance balance of Adjustments to other

Investee (book value) Additional Decrease in investment

provision for comprehensive

investment investment recognized by the

impairment income

equity method

I. Associates

1922026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Increase/decrease in this period

Beginning

Profit or loss of

Beginning balance balance of Adjustments to other

Investee (book value) Additional Decrease in investment

provision for comprehensive

investment investment recognized by the

impairment income

equity method

Jiangsu Liaoyuan Environmental 4372975.35

97697539.79

Protection Technology Co. Ltd.Total 97697539.79 4372975.35

(Continued)

Increase/decrease in this period Balance of

Cash dividends or Ending balance provision for

Investee Changes in Provision for

profits declared to Others (book value) impairment as at the

Other Equities impairment

be distributed end of the period

I. Associates

Jiangsu Liaoyuan Environmental

1012125.00101058390.14

Protection Technology Co. Ltd.Total 1012125.00 101058390.14

1932026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

4. Operating revenue and operating costs

(1) Operating income and cost of sales

Unit: RMB

Amount in the current period Amount in the previous period

Item

Income Cost Income Cost

Principal

140852547.67111003693.03145150536.76147170247.98

activity

Other

522297.94212307.08317087.3078538.43

businesses

Total 141374845.61 111216000.11 145467624.06 147248786.41

(2) Breakdown of operating revenue and cost of sales

Unit: RMB

Current amount Amount for the previous period

Item

Income Cost Income Cost

Electricity

generation 140852547.67 111003693.03 145150536.76 147170247.98

and sales

Others 522297.94 212307.08 317087.30 78538.43

Total 141374845.61 111216000.11 145467624.06 147248786.41

(3) Breakdown by region

Unit: RMB

Current amount Amount for the previous period

Item

Income Cost Income Cost

Domestic 141374845.61 111216000.11 145467624.06 147248786.41

Total 141374845.61 111216000.11 145467624.06 147248786.41

(4) Income from contracts

Unit: RMB

Current amount Amount for the previous period

Item

Income Income

By contract performance obligation

Including: Income recognized at a point of time 141183749.66 145293499.38

Income recognized over a period of time 191095.95 174124.68

Total 141374845.61 145467624.06

1942026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

5. Investment income

Unit: RMB

Amount in the current Amount in the previous

Item

period period

Returns on long-term equity investments calculated

4372975.352976431.04

by the equity method

Investment income from financial assets held for

5224940.095195211.68

trading during the holding period

Investment income generated from liquidation and

-342310.70

deregistration of subsidiaries

Total 9597915.44 7829332.02

XIX. Supplementary Information

1. Breakdown of current non-recurring profit or loss

Unit: RMB

Item Current amount Description

Profit or losses on disposal of non-current assets (including the portion

365503.54

offset for provisions for asset impairment)

Government grants included in profit and loss of the current period

(except for government subsidies that are closely related to the

Company's normal business operation comply with national policies 17099.11

and are enjoyed in accordance with defined criteria and have a

continuing impact on the Company's profit or loss)

Gains/losses on fair-value changes in financial assets and liabilities

held by a non-financial enterprise as well as on disposal of financial

10814446.43

assets and liabilities (exclusive of the effective portion of hedges that

arise in the Company’s ordinary course of business)

Dispossession surcharge to non-financial institutions included in the

current gains/losses

Gains/ losses on entrusting others with investments or asset

management

Gains/losses on loan entrustment

Losses on assets resulted from force majeure such as natural disasters

Reversed portions of impairment allowances for receivables which are

tested individually for impairment

1952026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Item Current amount Description

Gains arising from business combination when the investment cost is

less than the recognized fair value of net assets of the investee

Current net gains/losses of subsidiaries acquired in business merger

under the same control from period-beginning to combination date

Gains/losses on non-monetary asset swap

Gains/losses on debt restructuring

Non-recurring expenses incurred by the enterprise as a result of the

discontinuation of a related operating activity such as expenses for

relocating employees

One-time impact on the current gains/losses due to adjustments in tax

accounting and other laws and regulations

One-time recognition of share-based payment expense due to

cancellation and modification of equity incentive plans

Cash-settled share-based payments gains and losses arising from

changes in the fair value of employee compensation payable after the

date of exercisability

Gains/losses on change in fair value of investment property subject to

follow-up measurement at fair value method

Gains from transactions at significantly unfair prices

Gains/losses arising from contingencies unrelated to the normal

operation of the Company's business

Custodian fees earned from entrusted operation

Non-operating revenue and expenses other than the above 263644.06

Other gains/losses that meet the definition of non-recurring

gains/losses

Subtotal 11460693.14

Less: Income tax effects 51938.99

Minority equity effects (after tax) 230296.98

Total 11178457.17 —

2. Return on net assets and earnings per share

Earnings per share (RMB/share)

Weighted average

Profit for the reporting period Basic earnings Diluted earnings

Return on net assets (%)

per share per share

Net profit attributable to ordinary 1.18% 0.0329 0.0329

1962026 Semi-Annual Report of Shenzhen Nanshan Power Co. Ltd.

Earnings per share (RMB/share)

Weighted average

Profit for the reporting period Basic earnings Diluted earnings

Return on net assets (%)

per share per share

shareholders of the parent company

Net profit attributable to ordinary

shareholders of the parent company

0.56%0.01570.0157

before non-recurring gains and

losses

Shenzhen Nanshan Power Co. Ltd.August 21 2026

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