深圳南山热电股份有限公司 2016 年半年度报告全文
深圳南山热电股份有限公司
Shenzhen Nanshan Power Co., Ltd.
SEMI-ANNUAL REPORT 2016
Notice No.:2016-058
August 2016
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深圳南山热电股份有限公司 2016 年半年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as the
Company) hereby confirm that there are no any fictitious statements, misleading
statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion
of the whole contents.
Chairman Yang Haixian, principal of the Company, Director GM Wu
Dongxiang, person in charger of accounting works, CFO Huang Jian and
Financial Manager Leng Jiwei(acting manager of the financial management
dept.), person in charge of accounting organ (accounting principal) hereby
confirm that the Financial Report of Semi-Annual Report 2016 is authentic,
accurate and complete.
Title of the director not present
Director not present in person Reasons of absent Attorney
in person
Zhou Qun Director Cause for work Yu Chunling
Wang Junsheng Independent director Cause for work Pan Chengwei
Tang Tianyun Independent director Cause for work Pan Chengwei
Concerning the forward-looking statements with future planning involved in the
Semi-Annual Report, they do not constitute a substantial commitment for
investors. Investors are advised to exercise caution of investment risks.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
The Company’s audited net profits have a consecutively negative value in both
2014 and 2015 annual fiscal years, in accordance with relevant provisions of
"Rules Governing the Stock Listing in Shenzhen Stock Exchange ", the
Company's stock has been given a *ST risk admonition since 5 April 2016. If the
Company continues to have a deficit in 2016, stock of the Company will be
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深圳南山热电股份有限公司 2016 年半年度报告全文
suspended from listing. The Company warns the investors to pay attention to
risks and prudently make rational investment decisions.
In order to plan for major events, being applied to the Shenzhen Stock Exchange,
stock of the Company has been suspended since the market hours on 31 May
2016. On 15 June 2016, the major event prepared by the Company in suspension
was recognized as material assets reorganization, than stock of the Company
turns to material assets reorganization suspension. On 30 June 2016 and 29 July,
the Company applying for continued suspension one after another for one
month. On 12 August 2016, the Proposal of Application of Continued Suspension
for Planning Material Assets Reorganization was deliberated and approved by
the 10th extraordinary meeting of 7th BOD, agreed the Company to applying for
suspension with three months at most after deliberated and approved by
shareholders general meeting. The Company plans to holding the first
extraordinary shareholders general meeting 2016 on 30 August 2016 for
deliberating the Proposal of Application of Continued Suspension for Planning
Material Assets Reorganization; in view of the relatively big uncertainties in this
material assets reorganization, investors are advise to pay attention on
investment risks.
The report has been prepared in both Chinese and English, for any
discrepancies, the Chinese version shall prevail. Please read the full report
seriously
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深圳南山热电股份有限公司 2016 年半年度报告全文
Content
Semi-Annual Report 2016 ................................................................................................................. 1
Section I Important Notice, Contents and Paraphrase .................................................................. 4
Section II Company Profile ............................................................................................................... 7
Section III Accounting data and summary of finnaical indexes .................................................... 9
Section IV Report of the Board of Directors ................................................................................. 11
Section V Important Events ............................................................................................................ 25
Section VI Changes in shares and particular about shareholders............................................... 40
Section VII Preferred Stock………………………………………………………………...……..44
Section VIII Directors, Supervisors and Senior Executives ....................................................... 45
Section IX Financial Report ............................................................................................................ 46
Section X Documents Available for Reference ............................................................................ 46
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深圳南山热电股份有限公司 2016 年半年度报告全文
Paraphrase
Items Refers to Definition
Company, the Company, Shen Nan Dian Refers to Shenzhen Nanshan Power Co., Ltd.
Shen Nan Dian Zhongshan Co Refers to Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.
Shen Nan Dian Dongguan Co Refers to Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd
Shen Nan Dian Engineering Co., Refers to Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.
Shen Nan Dian Envionment Protection Co., Refers to Shenzhen Shen Nan Dian Envionment Protection Co., Ltd.
Server Co., Refers to Shenzhen Server Petrochemical Supplying Co., Ltd.
New Power Co., Refers to Shenzhen New Power Industrial Co., Ltd.
Singapore Company Refers to Shen Nan Energy (Singapore) Co., Ltd.
Nanshan Power Factory Refers to Nanshan Power Factory of Shenzhen Nanshan Power Co., Ltd.
Zhongshan Nam Long Power Plant of Shen Nan Dian (Zhongshan)
Zhongshan Nam Long Power Plant Refers to
Electric Power Co., Ltd.
Dongguan Gaobu Power Plant of Shen Nan Dian (Dongguan)
Dongguan Gaobu Power Plant Refers to
Weimei Electric Power Co., Ltd.
Shenzhong Properties Company Refers to Zhongshan Shenzhong Real Estate Investment Properties Co., Ltd.
Shenzhong Development Company Refers to Zhongshan Shenzhong Real Estate Development Co., Ltd.
Syndisome Company Refers to Hong Kong Syndisome Co., Ltd.
Jiangxi Nuclear Power Company Refers to CPI Jiangxi Nuclear Power Co.,Ltd.
NAM HOI Refers to HONG KONG NAM HOI (INTERNATIONAL) LTD.
Hong Kong Energy Refers to Shenzhen Energy (Hong Kong) International Co.,LTD.
Shen Energy Group Refers to Shenzhen Energy Co., Ltd.
Energy Group Refers to Shenzhen Energy Group Co., Ltd.
Guangju Industrial Refers to Shenzhen Guangju Industrial Co., Ltd.
Guangju Holding Refers to Shenzhen Guangju Investment Holding (Group) Co., Ltd.
Guangju Energy Refers to Shenzhen Guangju Energy Co., Ltd.
Kehuitong Refers to Shenzhen Kehuitong Investment Holding Co., Ltd.
Paipu Technology Refers to Shenzhen Paipu Energy Technology Development Co.,LTD.
Audit unit, Ruihua Refers to Ruihua Certified Public Accountant (LLP)
Dengheng, Perennial Legal Adviser Refers to Beijing City Deheng (Shenzhen) Law Firm
Jin Du, Special Legal Adviser Refers to Beijing City Jin Du (Shenzhen) Law Firm
CSRC Refers to China Securities Regulatory Commission
Shenzhen Securities Regulatory Commission of China Securities
Securities regulatory bureau Refers to
Regulation Commission
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深圳南山热电股份有限公司 2016 年半年度报告全文
SZ Stock Exchange， Exchange Refers to Shenzhen Stock Exchange
Company Law Refers to Company Law of The People’s Republic of China
Securities Law Refers to Securities Law of The People’s Republic of China
Rules of Listing Refers to Rules of Shenzhen Stock Exchange for the Listing of Stocks
Articles of association Refers to Article of Association of Shenzhen Nanshan Power Co., Ltd.
Except the special description of the monetary unit, the rest of the
RMB: Yuan, ten thousand Yuan Refers to
monetary unit is RMB Yuan, ten thousand Yuan
Reporting period Refers to 2016-1-1 to 2016-6-30
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深圳南山热电股份有限公司 2016 年半年度报告全文
Section II. Company profile
I. Company Profile
*ST Nan Dian A
Short form for share Code for share 000037, 200037
*ST Nan Dian B
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 深圳南山热电股份有限公司
Short form of the Company
深南电
(in Chinese) (if applicable)
Foreign name of the Company
Shenzhen Nanshan Power Co., Ltd.
(if applicable)
Legal Representative Chairman Yang Haixian
II. Contact person and ways
Secretary of the Board Rep. of securities affairs
Name Zhang Jie Jiang YuanYuan
16/F-17/F, Hantang Building, OCT, 16/F-17/F, Hantang Building, OCT,
Contact adds. Nanshan District, Shenzhen, Guangdong Nanshan District, Shenzhen, Guangdong
Province Province
Tel. 0755-26948888 0755-26948888
Fax. 0755-26003684 0755-26003684
E-mail investor@nspower.com.cn investor@nspower.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2015.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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深圳南山热电股份有限公司 2016 年半年度报告全文
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2015.
3. Registration changes of the Company
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2015.
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深圳南山热电股份有限公司 2016 年半年度报告全文
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 697,688,267.08 650,557,237.18 7.24%
Net profit attributable to shareholders of
-56,454,746.24 -102,546,073.06 -44.95%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting -66,068,598.18 -135,090,642.01 -51.09%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
183,680,275.33 318,855,299.19 -42.39%
activities(RMB)
Basic earnings per share (RMB/Share) -0.09 -0.17 -47.06%
Diluted earnings per share (RMB/Share) -0.09 -0.17 -47.06%
Weighted average ROE -10.96% -11.23% -2.40%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 4,597,811,157.97 4,579,853,736.04 0.39%
Net assets attributable to shareholder of
579,564,321.22 636,006,699.57 -8.87%
listed company(RMB)
II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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深圳南山热电股份有限公司 2016 年半年度报告全文
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
III. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the Mainly for the loss on disposal of fixed
-203,276.08
write-off that accrued for impairment of assets) assets
Governmental subsidy calculated into current gains and Subsidy of gas& fuel processing
losses(while closely related with the normal business of the charges for Jan. to Sept. of 2015
9,839,892.03
Company, excluding the fixed-amount or fixed-proportion received by Yue Fa Gai Price [2016]
governmental subsidy according to the unified national standard) No. 221
Other non-operating income and expenditure except for the
1,961,448.64
aforementioned items
Less: impact on income tax 246,556.08
Impact on minority shareholders’ equity (post-tax) 1,737,656.57
Total 9,613,851.94 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss.
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深圳南山热电股份有限公司 2016 年半年度报告全文
Section IV. Report of the Board of Directors
I. Introduction
In the first half of 2016, the global economic recovery has been weak, China's economic downward pressure was
increasing, growth in power demand was slowing down, in addition, the reform of electricity market has further
intensified industry competition, power generation enterprises have very fierce competition, as the gas turbine
generator sets for peaking power source, power generation is still severely limited, the Company has been
struggling in the operation of main business. Because the Company’s audited net profits have a consecutively
negative value in both 2014 and 2015 annual fiscal years, in accordance with relevant provisions of the "Stock
Listing Rules", the Company's stock has been given a *ST risk admonition. If the Company continues to incur
losses in 2016, the Company's stock may be suspended from listing, so the Company is facing unprecedented
challenges.
In the extremely difficult business situation, on the one hand, the Company strives to improve the operating
efficiency of the stock main business assets through its own efforts, vitalizes some non-core assets, and spares no
efforts to turn losses into gains within the year; on the other hand, the Company actively cooperates to carry out
related work of major assets restructuring, seeks for the Company's long-term sound development. During the
reporting period, the Company has been focusing on the following aspects:
1. Corporate governance and standardized management: strengthen the Company’s internal standardized operation
and fine management, and further enhance the level of corporate governance and management performance.
During the reporting period, the Company has revised the "financial administration regulations", "security
administration regulations", "financial approval authority and payment administration regulations", "fixed assets
management regulations" and other management systems; completed the self-evaluation work of internal control
in 2015, established the self-evaluation work program of internal control in 2016, and effectively controlled the
risks; after the retirements of original directors and senior management, timely elected and engaged new directors
and senior management; continuously improved the quality of information disclosure and investor relations
management, and earnestly maintained the investors’ legitimate rights and interests. After the Company's stock
being given a *ST risk admonition on April 5, 2016, the Company's stock has been suspended since May 31, and
turned into a major asset restructuring suspension from June 15. The Company has timely accurately, completely,
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深圳南山热电股份有限公司 2016 年半年度报告全文
and truly carried out the obligations of information disclosure and reminded the investors of investment risks in
strict accordance with relevant laws and regulations and regulatory documents.
2. Main business management and administration of power: pay close attention to the safety, environmental
protection and economic performance of the stock power assets, and fight for more power at a maximum limit. At
the same time, try the best to reduce production costs and improve operational efficiency by implementing fine
management and technical transformation; strengthen the management of non-power assets, make efforts to
improve the profitability of certain assets, and strictly control the operational risks. During the reporting period,
the Company subordinate power plants have totally completed on-grid energy of 1.042 billion kWh, an increase of
85.39% on a year-on-year basis; achieved operating revenue of 697,688,300 Yuan, an increase of 7.24% on a
year-on-year basis; net profits of -56,454,700 Yuan attributable to shareholders of listed Company, reducing losses
of 46,091,400 Yuan compared with -102,546,100 Yuan in the same period of last year.
3. Capital planning and assets management: actively expand the financing channels, make efforts to improve the
fund structure, plan for the financing and deployment of intra-system funds, and guarantee the Company’s fund
chain security; carefully check the situation of the Company’s stock non-power assets, track and study the relevant
regulations and policies, and make preparations for timely vitalization of underlying assets and transformation of
non-power business; continue to track and study Qianhai regional planning and related policies, and make
preparations for the demonstration and estimation to various schemes of the removal of Nanshan Power Plant.
While closely tracking Qianhai regional development, actively keep contact and communication with relevant
government departments and Qianhai Authorities, and make relevant preparations.
4. Strategic restructuring and sustainable development: in order to plan for major events, the Company applied to
the Shenzhen Stock Exchange, the Company's stock has been suspended since May 31 and turned into a major
asset restructuring suspension from June 15. On June 15, the Company sent "invitation to bid of the intention
restructuring party" to nine potential restructuring units, and currently the China Gas Holdings Limited
(hereinafter referred to as China Gas) has been confirmed as a potential restructuring party and shall carry out the
consultations and negotiations with China Gas in aspect of the material assets reorganization. The Company shall
actively cooperate with the shareholders and promote the related work of this major asset restructuring as soon as
possible with the relevant parties, and seek for the Company's healthy and sustainable development.
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深圳南山热电股份有限公司 2016 年半年度报告全文
II. Main business analysis
Introduction
During the reporting period, the Company's main business, gas-steam combined cycle power generation business,
has been affected by the economy downward pressure and the great restriction on generating capacity, utilization
hours of generator sets in Company's subordinates Nanshan Power Plant, Zhongshan Nanlang Power Plant and
Dongguan Gaobu Power Plant are respectively only 1,030 hours, 805 hours and 569 hours.
During the reporting period, Dongguan Gaobu Power Plant has obtained the "Power Business License" issued by
South China Energy Regulatory Bureau of National Energy Administration of the People’s Republic of China, and
has returned to normal electricity production. From January to June 2016, the on-grid energy of the Company’s
subordinate power plants amounted to 1.042 billion kWh, an increase of 85.39% on a year-on-year basis,
accomplishing 42.08% of the annual plan, thereinto, Nanshan Power Plant accomplished 551 million kWh,
Zhongshan Nanlang Power Plant accomplished 288 million kWh, and Dongguan Gaobu Power Plant
accomplished 203 million kWh. The power business has achieved incomes of 665,806,000 Yuan, an increase of
85.88% on a year-on-year basis
Y-o-y changes of main financial data
In RMB
Y-o-y
Same period of Reasons for changes with over 30% on a y-o-y
Current period increase/d
last year basis
ecrease
Operating revenue 697,688,267.08 650,557,237.18 7.24% -
Operating costs 639,919,822.75 746,907,771.86 -14.32% -
Sales expenses 2,453,390.26 2,183,711.61 12.35% -
Administration expenses 44,677,104.53 43,210,635.07 3.39%
Finance expenses 96,448,656.12 115,851,533.93 -16.75%
Total profit of the Shen Nan Dian Envionment
Income tax expenses 1,085,010.53 488,647.17 122.04% Protection Co., and Shen Nan Dian Engineering
Co., increased on a y-o-y basis
Operational net cash flow increased to RMB 140
million resulted by the increase of electric
Net cash flow arising from
183,680,275.33 318,855,299.19 -42.39% quantity, the declined of subsidy makes the
operating activities
operational net cash flow decreased RMB 250
million
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深圳南山热电股份有限公司 2016 年半年度报告全文
Net cash flow arising from
-10,793,452.51 -11,332,937.87 -4.76% -
investment activities
Net cash flow arising from
-94,007,456.64 -16,020,069.86 486.81% The net financing amount decreased
financing activities
Net cash flow from operation activities decreased
Net increase of cash and cash
78,992,283.10 291,495,149.10 -72.90% RMB 135 million and the RMB 78 million
equivalent
declined in net cash flow from financing activities
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period.
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement.
Review on the previous business plan and its progress during reporting period
During the reporting period, the Company has been adhering to safety first, standard-oriented, giving considerations to efficiency and
pursuing benefits, actively seeking for outside supports by tapping internal potential deeply, earnestly implementing the business
plans for production, operation, management and other aspects issued by the Board:
1. The Company achieved "Four No" goal of safety and ensured the safety of capital chain; the three subordinate power plants totally
accomplished on-grid energy of 1.042 billion kWh, an increase of 85.39% on a year-on-year basis; the Company achieved net profits
of -56,454,700 Yuan attributable to shareholders of listed Company, reducing losses of 46,091,400 Yuan compared with -102,546,100
Yuan in the same period of last year.
2. The gas-steam combined cycle power generation project of the Company’s subordinate holding subsidiary, Shennandian Dongguan
Company Dongguan Gaobu Power Plant, has been approved earlier this year and has obtained the "Power Business License",
Shennandian Zhongshan Company has launched the related work for heat supply network phase I project of the combined heat and
power generation project, the production conditions of the Company’s main business shall be further improved.
3. The Company further to improve the internal standardized management, amended and improved relevant rules and regulations,
and has completed the self-evaluation work of internal control for year of 2015 as planned, amended and improved the relevant rules
and regulations, and strengthened the supervision to subordinate enterprises, so that the internal management performance and risk
prevention and control level have been improved.
Furthermore, Since Nanshan Power Plant is located in Qianhai Shenzhen-Hong Kong modern service industry cooperation zone, the
Company has been paying close attention to the regional planning of Qianhai. On 5 June 2013, the Shenzhen Municipal People’s
Government approved the Comprehensive Planning of Qianhai Shenzhen HK Modern Service Industry Cooperation Zone(hereinafter
referred to as Qianhai Comprehensive Planning) [Shen Fu Han (2013) No. 112], the Planning propose that Nanshan Power move to
the Tianliao quarry in Gongming Street, Guangming New District, and requires the Qianhai Administration and related department
raid up the establishment and improve vary specific plans, on the principle of rigid-oriented and elasticity remaining, carrying out the
Qianhai Comprehensive Planning. On 14 July 2016, Shenzhen Municipal People’s Government holding a meeting, research the land
disposal of the Nanshan Power Plant and propose the work requirements. The Company will keep in touch with Qianhai
Administration for work arrangements prepared, the Company will implemented information disclosure obligation in time when
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深圳南山热电股份有限公司 2016 年半年度报告全文
receiving official notification from relevant department of Qianhai Administration and start related works.
(Additional remarks: on September 25, 1992, the Company signed a land use contract of 100,000 square meters land [Land ID:
T102-0011] belonging to Nanshan Power Plant with Urban Planning and Land Bureau of Shenzhen Municipality, the tenure of use is
from January 2, 1990 to January 1, 2020. On June 8, 2010, the Company signed the supplementary agreement of the grant contract of
land use right for this land with the second direct authority of Urban Planning, Land & Resources Commission of Shenzhen
Municipality to prolong the tenure of use of this land to January 1, 2040, and paid the land cost of 9,312,166.00 Yuan[No. of the real
estate certificate: Shen Fang Di Zi No. 40000381236].
To reduce the pollution to surrounding environment, the Company changes the fuel from heavy oil to natural gas, on December 14,
2005, the Company and the Shenzhen Municipal Bureau of Land Resources and Housing Authority signed a grant contract of land
use right of 2000 square meters of land [Land ID: T102-0155] used for the construction of natural gas transfer regulator station, the
tenure of use is from December 14, 2005 to December 13, 2055, the Company has paid the land-transferring fees 177,509.00 Yuan,
the land development fund of 200,016.00 Yuan and the municipal administration supporting facilities of 805,866.00 Yuan, with a
total of 1,183,391.00 Yuan.[ No. of the real estate certificate: Shen Fang Di Zi No. 40000277947])
III. Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Operating
Operating cost Gross profit ratio operating revenue operating cost profit ratio over
revenue
over same period over same period same period of
of last year of last year last year
According to industries
Energy industry 665,806,019.13 617,567,493.64 7.25% 7.58% -14.34% 23.74%
Engineering labor 5,115,111.97 5,470,520.75 -6.95% 666.88% 57.50% 413.78%
Sludge drying 25,511,359.61 16,881,808.36 33.83% -15.55% -23.85% 7.21%
According to products
Power marketing 665,806,019.13 617,567,493.64 7.25% 85.88% 33.35% 36.54%
Fuel oil
0.00% -100.00% -100.00% -1.08%
marketing
Engineering labor 5,115,111.97 5,470,520.75 -6.95% 666.88% 57.50% 413.78%
Sludge drying 25,511,359.61 16,881,808.36 33.83% -15.55% -23.85% 7.21%
According to region
Shenzhen 382,345,332.72 321,990,324.23 15.79% -20.82% -37.98% 23.31%
Zhongshan 184,156,891.45 184,578,525.00 -0.23% 10.36% -8.73% 20.97%
Dongguan 129,930,266.54 133,350,973.52 -2.63% 291,108.29% 428.97% 56,399.03%
IV. Core competitive-ness analysis
In twenty years of development, the Company has been adhering to the traditional spirits of being innovative and
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深圳南山热电股份有限公司 2016 年半年度报告全文
enterprising, after completing the transformation of its gas turbine power plant from fuel to clean energy, the
Company takes the lead in implementing the technical modification project of energy-saving and emission
reduction like low-nitrogen combustion so as to reduce the influence of power generation to environment to a
minimum. The Company strives to realize the transformation from a single power generation enterprise to an
enterprise of comprehensive utilization of resources and an energy integrated service provider by implementing
the cyclic economy projects such as sludge drying and CCHP projects such as recycling economy. Under the
influence of the macro-economic situation and the common problems of gas turbine industry in recent years, the
Company has been facing great pressure on operation, but the core competitiveness formed in twenty years of
management and development is still the basis of the Company’s sustainable survival and development. (See 2015
Annual Report)
Although the Company's stock has been given a *ST risk admonition, the Company has not given up the hopes
and efforts, on the one hand through, the Company has been making the greatest efforts to try to turn losses into
gains in this year through production management and asset management; on the other hand, the Company has
been actively promoting the major asset restructuring jointly with other organization concerned, seeking to realize
complementary advantages through the introduction of strategic investors so as to create better conditions for the
Company's healthy and sustainable development.
V. Investment analysis
1. External equity investment
(1) External investment
□ Applicable √ Not applicable
The Company has no external equity investment in the Period.
(2) Holding equity of financial enterprise
□ Applicable √ Not applicable
The Company has no equity of financial enterprise held in the Period.
(3) Securities investment
□ Applicable √ Not applicable
The Company has no securities investment in the Period.
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深圳南山热电股份有限公司 2016 年半年度报告全文
(4) Explanation on equity of other listed company held
□ Applicable √ Not applicable
The Company had no equity of other listed company held in Period.
2. Trust management, derivative investment and entrust loans
(1) Trust financing
□ Applicable √ Not applicable
The Company has no trust financing in the Period.
(2) Investment of derivatives
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period.
(3) Trust loans
□ Applicable √ Not applicable
No trust loans in Period.
3. Application of raised proceeds
□ Applicable √ Not applicable
The Company has no application of raised proceeds in the Period.
4. Main subsidiaries and joint-stock companies analysis
√ Applicable □ Not applicable
Main subsidiaries and joint-stock companies
In RMB
Main
Industry Registered Operation Operation
Name Type products or Total assets Net assets Net profit
involved capital revenue profit
service
Technology
development
Shen Nan regarding to
RMB
Dian New Power application of 172,247,335 75,933,884. 209,679,75 38,932,77 38,932,774.8
Subsidiary 113.85
Power industry remaining .29 73 9.7 4.87 7
million
Company heat
(excluding
restricted
17
深圳南山热电股份有限公司 2016 年半年度报告全文
items) and
power
generation
with
remaining
heat. Add:
power
generation
through
burning
machines.
Shenzhen
Shen Nan
Environm
Dian RMB 79 140,750,607 92,240,935. 25,511,359. 4,364,042
Subsidiary ental Sludge drying 5,995,431.3
Environmen million .86 78 61 .6
protection
t Protection
Co., Ltd.
Engaged in
the
technology
consultant
service of
gas-steam
combined
cycle power
plant
(station),
maintenance
Shenzhen
Engineeri and overhaul
Shennandia
ng and of running
n Turbine RMB 10 113,915,361 28,439,598. 5,115,111.9
Subsidiary technical equipment for 702,013.8 509,927.07
Engineering million .35 24 7
advisory gas-steam
Technology
services combined
Co., Ltd.
cycle power
plant
(station).
Import and
export of
goods and
technology
(excluding
distribution
and
monopolized
18
深圳南山热电股份有限公司 2016 年半年度报告全文
commodity of
the State)
Self-operatio
n of fuel oil
or import
agent
business;
Trading(man
ufacture,
storage and
transportation
excluded) of
diesel,
lubricating,
liquefied
petroleum
gas, natural
gas,
compressed
gas &
Shenzhen liquefied gas
Server and chemical
Petrochemi products(che RMB 53.3 145,791,006 104,133,20 -4,840,67
Subsidiary Energy 514,136 -4,840,672.99
cal mical hazard million .67 1.42 2.99
Supplying excluded);
Co., Ltd investment,
construction
and technical
assistance of
relevant
supporting
facility of
liquefied
petroleum gas
and natural
gas; import
and export of
cargo and
technologies,
domestic
trading(mono
polized
commodity
and
19
深圳南山热电股份有限公司 2016 年半年度报告全文
commodity
under special
government
control
excluded);
leasing
business.
Licensing
project: fuel
oil
warehousing
(refined oil
products
excluded);
ordinary
freight, cargo
specific
transportation
(container)
and cargo
specific
transportation
(pot-type)
Power
generation by
burning
machines,
power
generation by
remaining
heat, power
Shen Nan supply and
Dian heat supply
RMB 746.8 877,480,858 -12,925,332 184,769,85 -24,553,2 -17,740,015.1
(Zhongshan Subsidiary Electricity (excluding
million .69 .74 4.45 45.53 1
) Power pipeline
Co., Ltd. network of
heat supply),
lease of dock
and oil
storage
(excluding oil
products,
dangerous
chemicals
20
深圳南山热电股份有限公司 2016 年半年度报告全文
and
inflammable
and explosive
materials).
Shen Nan
Dian
Construction
(Dongguan)
and operation US $ 35.04 874,719,002 140,164,10 130,208,92 -26,261,8
Weimei Subsidiary Power -25,003,456.6
of natural gas million .55 1.73 8.16 24.9
Electric
power plants.
Power Co.,
Ltd
Oil product
Shen Nan
trading, spare
Energy US $ 0.9 348,176,506 345,663,32 1,015,244.1 462,256.6
Subsidiary Trade part of the 361,394.26
(Singapore) million .53 8.23 7 6
gas turbine
Co., Ltd.
agent
Development,
building &
operating and
management
of the nuclear
power
project;
producing
electricity
and relevant
products;
foreign trade
CPI Jiangxi
operation(exc RMB
Nuclear Stock jointly Nuclear 3，120，471，1,129,270,0
luding the 1127.27 / / /
Power Co., company power 553.02 00
import and million
Ltd.
export
business of
cargo
exercise
state-run
trading
management)
; (except for
the projects
with special
permission
from the
21
深圳南山热电股份有限公司 2016 年半年度报告全文
State)
Development
Zhongshan of real estate,
City property
Shenzhong management,
RMB
Real Real leasing and 462,424,399 -829,381,44 -36,608,3 -36,608,341.3
Subsidiary 177.80 /
Estate Estate sales of own .4 5.91 41.37 7
million
Developm commercial
ent Co., housing and
Ltd. investment of
real estate
Investment of
real estate
and property
management
(the above
projects shall
operate with
the
qualification
Zhongshan
certificate),
Shenzhong
sale and
Real Estate Real RMB 60 349,424,985 22,638,372. -1,608,36
Subsidiary leasing / -1,618,361.24
Investment estate million .61 49 1.24
business of
Properties
the
Co., Ltd
self-owned
commercial
housing.
branch
operations:
Fuel oil, the
storage and
sales of
engine oil
5. Major project with non raised fund
□ Applicable √ Not applicable
The company had no major projects invested by non-raised fund in the reporting period.
VI. Prediction of business performance from January – September 2016
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
22
深圳南山热电股份有限公司 2016 年半年度报告全文
□ Applicable √ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from
the CPA of this year’s
□ Applicable √ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
□ Applicable √ Not applicable
The profit distribution plan in semi-annual year was: no cash dividend distributed any bonus shares and has no share converted from
capital reserve either.
X. Profit distribution and capitalization of capital reserves in the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year
XI. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Contents discussed and
Time Place Way Type Reception
material provided
In the premise of not
violating the principles of
information disclosure and
the confidential system of
significant information, the
Company seriously and
Investor relation timely responded to the
Jan. to Jun. of 2016 Written inquiries Individual Investors (3)
interactive platform investors’ inquiries about
the Company's basic
business circumstances,
financial management
situation, and relevant
information of subordinate
companies.
23
深圳南山热电股份有限公司 2016 年半年度报告全文
In the premise of not
violating the principles of
information disclosure and
the confidential system of
significant information, the
Company seriously and
timely responded to the
2016-4-25 The Company Field research Individual Investor
investors’ inquiries about
the Company's basic
business circumstances,
financial management
situation, and relevant
information of subordinate
companies.
24
深圳南山热电股份有限公司 2016 年半年度报告全文
Section V. Important Events
I. Corporate governance
During the reporting period, in accordance with "Company Law", "Securities Law", "Corporate Governance Code
for Listed Companies", "Stock Listing Rules" and guidelines of normative documents of supervision departments,
the Company has followed the articles of association and the rules of procedure, constantly optimized the
corporate governance structure, continued to improve the modern enterprise management system, further improve
the system of checks and balances among “Three Meetings” (general meeting of shareholders, board of directors
meeting, board of supervisors meeting), standardized the operations and decision-making procedures of “Three
Meetings” and management layer, seriously fulfilled the obligations of important information privacy and
information disclosure, strengthened the internal audit and risk control, strived to improve normalized governance
and fine management level, and effectively protected the benefits and legitimate rights and interests of listed
companies, investors and employees.
During the reporting period, the Company held one shareholders' meeting, three board meetings and three board
of supervisors meeting and also held a number of specialized committee meetings of the board, which seriously
deliberated and made decisions for the events to be submitted to the meeting for deliberation, all the meetings are
convened legally and all decision-making processes are open, fair and just.
Because the Company’s audited net profits have a consecutively negative value in both 2014 and 2015 annual
fiscal years, the Company's stock has been implemented the *ST risk admonition since the opening on April 5,
2016. The Company has timely, accurately, completely, and truly fulfilled the obligation of information disclosure
and reminded investors of investment risks in strict accordance with relevant laws and regulations and regulatory
documents.
In order to plan major events, the Company disclosed the "Suspension notice of major events" on 31 May 2016;
the Company’s stock was suspended since the opening on that day after applying to the Shenzhen Stock Exchange.
On June 15, the Company disclosed the "Suspension notice of major assets restructuring", confirmed that the
major events the Company was planning were major assets restructuring, the Company’s stock was turned into
suspension of major asset restructuring. During the stock suspension, the Company has strictly fulfilled the
obligation of information disclosure in strict accordance with relevant regulations by disclosing the progress
notice of major assets restructuring once for every five trading days and carrying out the declaration procedures to
apply for continued suspension once the Company stock’s suspension expires according to relevant regulations.
There is no difference between the actual situation of corporate governance and the "Company Law" and relevant
provisions of China Securities Regulatory Commission
II. Lawsuits
Material lawsuits and arbitration
√ Applicable □ Not applicable
Lawsuits (arbitrations) Amount Resulted an Progress Trial result and Execution of Disclosure Disclosure
25
深圳南山热电股份有限公司 2016 年半年度报告全文
involved (in accrual influence judgment date index
10 thousand liability
Yuan) (Y/N)
Xiefu Company
started to trade oil
products with China
Shipping & Sinopec
Suppliers Co., Ltd
(hereinafter referred to
as China Shipping &
Sinopec) since August For details,
2014. In specific, please refer
Xiefu purchased fuel to the
oil from Guangzhou announcem
Zhongyuan Petroleum ent of the
Chemistry Company Company
and sold the same to relating to
China Shipping & proceeding
Sinopec. During of Shenzhen
Since the suit is
August to end of Xiefu
subject to final
September 2015, Energy
ruling, it is
Xiefu entered into two Company
unlikely for the
Fuel Oil Purchase Obtained no Obtained no Limited
Company to
Agreements (No. 5,112.82 No decision in decision in the 2016-03-01 (No.2016-0
predict the effect
GRG150804002X and the Period Period 07) dated 1
of this suit on the
No. March 2016
profit for the
GRG150907004X) published
period or
with China Shipping on China
subsequent period.
& Sinopec with total Securities,
contract amount of Securities
RMB72.35 million. Times,
Pursuant to which, Hong Kong
Xiefu delivered the Commercial
fuel oil concerned to Daily and
China Shipping & Juchao
Sinopec as scheduled, information
while the latter failed website.
to pay off the required
amount after its
issuance of Receipt
Confirmation to
Xiefu. Till now, the
outstanding payment
was RMB51,
26
深圳南山热电股份有限公司 2016 年半年度报告全文
128,173.60 in total.
Xiefu submitted civil
complaint and other
supporting materials
to the People’s Court
of Huangpu district,
Guangzhou on 24
February 2016, and
received the
Acceptance Notice
from the court. On 16
May, the above court
held hearings for this
suit.
Other lawsuits
□ Applicable √ Not applicable
III. Questions by media
□Applicable √ Not applicable
No questions by media in Period.
IV. Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization in Period.
V. Transaction in assets
1. Assets acquisition
□Applicable √ Not applicable
The Company had no assets acquisition in the Period.
2. Assets sold
□Applicable √ Not applicable
No assets sold in Period.
3. Enterprise combination
□Applicable √ Not applicable
27
深圳南山热电股份有限公司 2016 年半年度报告全文
No enterprise combination in Period.
VI. Implementation and its influence of equity incentive plan
□Applicable √ Not applicable
No implementation of equity incentive plan in Period.
VII. Material related transaction
1. Related transaction with daily operation concerned
□Applicable √ Not applicable
The Company has no related transaction with routine operation concerned in Period.
2. Related transaction incurred by purchase or sales of assets
□Applicable √ Not applicable
No related transaction incurred by purchase or sales of assets in Period.
3. Related transaction from jointly investment outside
□Applicable √ Not applicable
No related transaction from jointly investment outside occurred in Period.
4. Current related liabilities and debts
√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
√ Yes □ No
Financial claim receivable from related party:
Newly
Exist added Balance at
Amount of
Balance at amount in Interest in
non-operatin recovery in period-end
period-begin the Period
Related the Period the Period
Relationship Reason g occupation (in 10 Interest rate (in 10 (in 10
parties (in 10
thousand thousand
of funds (in 10 thousand thousand
Yuan) Yuan)
Yuan)
(Y/N) thousand Yuan)
Yuan)
Shen Nan Profit
Dian
Subsidiary distributio N 7,949.53 7,949.53
Engineering
Co., n
Routine
New Power
Subsidiary operation N 7,702.8 29,154.69 37,103.75 -246.26
Co.,
open credit
28
深圳南山热电股份有限公司 2016 年半年度报告全文
Shen Nan Routine
Dian
Subsidiary operation N 54,717.43 5.00 67.61 7.00% 1,447.4 56,102.22
Zhongshan
Co open credit
Shenzhong Routine
Real Estate Subsidiary operation N 90,469.72 7.00% 2,870.02 93,339.74
Company open credit
Shenzhong Routine
Properties Subsidiary operation N 10,497.04 7.00% 317.61 10,814.65
Company open credit
Shen Nan Routine
Dian
Subsidiary operation N 19,388.57 7.00% 637 20,025.57
Dongguan
Co open credit
Shen Nan
Routine
Dian
Envionment Subsidiary operation N 444.74 720.75 442.12 723.37
Protection
open credit
Co.,
Routine
Singapore
Subsidiary operation N 21.23 124.46 145.69
Company
open credit
Routine
Syndisome
Subsidiary operation N 8.55 0.24 0.08 8.71
Company
open credit
Influence on business
performance and financial
Decreased current assets RMB 23,363,800 in the period.
status of the Company
from related liabilities
Debt payable to related party:
Newly The return
Balance at
amount in the
Balance at added amount Interest in the
Period period-end
period-begin in the Period Period
Related
Relationship Reason (in 10 (in 10 Interest rate (in 10 (in 10
parties (in 10
thousand thousand
thousand thousand
Yuan) thousand Yuan)
Yuan) Yuan)
Yuan)
Shen Nan Routine
Dian
Subsidiary operation 9,532.25 222.02 5.60% 265.84 9,576.07
Engineering
Co., open credit
Routine
Server Co., Subsidiary operation 3,102.36 3.54 143.86 5.60% 84.25 3,046.29
open credit
Syndisome Routine
Subsidiary 368.18 15.04 7.2 376.02
Company operation
29
深圳南山热电股份有限公司 2016 年半年度报告全文
open credit
Influence on business
performance and financial
Decreased current liabilities RMB 44,100 in the period.
status of the Company from
related debts
5. Other related transactions
□Applicable √ Not applicable
The company had no other related transactions in reporting period.
VIII. Non-business capital occupying by controlling shareholders and its related parties
□Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
IX. Significant contracts and its implementation
1. Trusteeship, contract and lease
(1) Trusteeship
As for the Assets Custody Operation Contract in Connection with Burning Machine-Stream Joint Cycle Heat Power Generation
Machine Unit entered into in February 2003, the Company was entrusted to operate and manage the power generation machine unit
owned by its wholly-owned subsidiary New Power Company. The custody business service charge RMB 8.2609 million was
obtained by the Company in reporting period.
(2) Contract
□Applicable √ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
□Applicable √ Not applicable
The Company had no leasing in the reporting period.
2. Guarantees
√ Applicable □ Not applicable
In ten thousand Yuan
External guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
Related
Actual date of Guarante
Name of the Announce Implemen
Guarantee happening (Date Actual Guarantee Guarantee
Company ment e for
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure
agreement) related
date
30
深圳南山热电股份有限公司 2016 年半年度报告全文
party
(Y/N)
Guarantee of the Company for the subsidiaries
Guarante
Related
e for
Name of the Announce Actual date of Actual Implemen
Guarantee Guarantee Guarantee
Company ment happening (Date of guarantee related
limit type term ted (Y/N)
guaranteed disclosure signing agreement) limit
party
date
(Y/N)
Shen Nan Dian
General
Zhongshan 2016-04-01 20,000 2016-05-11 19,040 2 years N Y
guarantee
Company
Shen Nan Dian
General
Zhongshan 2015-04-25 10,000 2015-07-13 2,955 1 year Y Y
guarantee
Company
Shen Nan Dian
General
Zhongshan 2016-04-01 10,000 2016-06-08 3,229 1 year N Y
guarantee
Company
Shen Nan Dian
General
Zhongshan 2015-04-25 10,000 2015-11-25 5,000 1 year N Y
guarantee
Company
Shen Nan Dian
General
Zhongshan 2016-04-01 5,000 2016-06-14 2,242 1 year N Y
guarantee
Company
Shen Nan Dian
General
Dongguan 2016-04-01 15,000 2016-05-26 12,000 1 year N Y
guarantee
Company
Shen Nan Dian
General
Dongguan 2016-04-01 21,000 2016-06-24 9,151 1 year N Y
guarantee
Company
Shen Nan Dian
General
Dongguan 2015-04-25 20,000 2015-09-22 20,000 2 years N Y
guarantee
Company
Shen Nan Dian
General
Dongguan 2015-04-25 5,000 2015-11-25 5,000 1 year N Y
guarantee
Company
Shen Nan Dian
General
Dongguan 2015-04-25 6,500 2016-03-03 6,500 1 year N Y
guarantee
Company
Shen Nan Dian General
2015-04-25 2,500 2015-12-11 2,000 1 year N Y
Environment guarantee
31
深圳南山热电股份有限公司 2016 年半年度报告全文
Protection Co.
New Power General
2015-04-25 10,000 2015-11-30 5,000 1 year N Y
Company guarantee
New Power General
2016-04-01 10,000 2016-06-24 2,740 1 year N Y
Company guarantee
Shenzhong Real
General
Estate Investment 2015-12-29 30,000 2016-02-03 11,100 3 years N Y
guarantee
Property Co., Ltd
Total amount of approving Total amount of actual
guarantee for subsidiaries in 175,000 occurred guarantee for 105,958
report period subsidiaries in report period
Total amount of approved Total balance of actual
guarantee for subsidiaries at the 175,000 guarantee for subsidiaries at 105,958
end of reporting period the end of reporting period
Guarantee of the subsidiaries for the subsidiaries
Guarante
Related
Actual date of e for
Name of the Announce Implemen
Guarantee happening (Date Actual Guarantee Guarantee
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure
agreement) party
date
(Y/N)
Total amount of guarantee of the Company
Total amount of actual
Total amount of approving
175,000 occurred guarantee in report 105,958
guarantee in report period
period
Total amount of approved Total balance of actual
guarantee at the end of report 175,000 guarantee at the end of report 105,958
period period
The proportion of the total amount of actually guarantee in the
182.82%
net assets of the Company
Including:
Amount of guarantee for shareholders, actual controller and its
-
related parties
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 96,218
indirectly
Proportion of total amount of guarantee in net assets of the
82,485.88
Company exceed 50%
Total amount of the aforesaid three guarantees 178,703.88
Explanations on possibly bearing joint and several liquidating
N/A
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated
N/A
procedures (if applicable)
(1) Guarantee outside against the regulation
□ Applicable √ Not applicable
32
深圳南山热电股份有限公司 2016 年半年度报告全文
No guarantee outside against the regulation in Period.
3. Other significant contract
√ Applicable □Not applicable
Book Appraisa
value of l value
amount for assets Base
Whether
involved involved Appraisa date of Trading Impleme
Compan constitut
Name of subject in in l agency assets price (in Related ntation
y entered Date of Pricing e related
counterp matter of contract contract( (if evaluatio 10 relations ended as
into a contract principle transacti
art contract (in 10 in 10 applicabl n (if thousand hip reporting
contract on or
thousand thousand e) applicabl Yuan) period
not
Yuan) (if Yuan) (if e)
applicabl applicabl
e) e)
Consisti
ng three
Guangdo
parts:
ng Trade
price of
Branch Impleme
The Liquefie LNG,
of 2013-01- nting
Compan d natural - compreh - No No
CNOOC 15 relevant
y gas ensive
Gas & contracts
service
Power
charge
Group
and
taxes.
Consisti
ng three
Guangdo
Shen parts:
ng Trade
Nan price of
Branch Impleme
Dian Liquefie LNG,
of 2013-12- nting
Donggua d natural - compreh - No No
CNOOC 21 relevant
n gas ensive
Gas & contracts
Compan service
Power
y charge
Group
and
taxes.
Shen Guangdo Consisti
Impleme
Nan ng Trade Liquefie ng three
2014-05- nting
Dian Branch d natural - parts: - No No
31 relevant
Zhongsh of gas price of
contracts
an CNOOC LNG,
33
深圳南山热电股份有限公司 2016 年半年度报告全文
Compan Gas & compreh
y Power ensive
Group service
charge
and
taxes.
Zhongsh Shui Mu Contract
an Nian amount
Zhonghe
Shenzho Hua + design
ng Impleme
ng Real Garden change
Construc 2015-07- 37,923.4 nting
Estate project - and visa No No
tion 02 8 relevant
Investme (building amount -
Group contracts
nt size: deductibl
Co.,Ltd.
Property 157,951. e
2
Co., Ltd 71 M ) expenses
4. Other material transactions
□ Applicable √ Not applicable
No other material transaction of the Company in the reporting period.
X. Commitments made by the Company or shareholders holding above 5% shares of the Company in
reporting period or extending to reporting period
√ Applicable □ Not applicable
Commitment
Commitments Accepter Contents Commitment time Implementation
period
Commitments for Share Merger Reform
Commitments in report of acquisition or
equity change
Commitments in assets replacement
Commitments make in Initial public
offering or re-financing
HONG KONG
Promise not to
NAM HOI
preparing the
(INTERNATIO
material events
NAL)
as material
LIMITED;
Other commitments for minority assets
Shenzhen 2015-12-01 3 months Completed
shareholders reorganization,
Guangju
acquisition,
Industrial Co.,
stock placement
Ltd.;
in later three
SHENZHEN
months
ENERGY
34
深圳南山热电股份有限公司 2016 年半年度报告全文
(GROUP) CO.,
LTD.; the
Company
Promise not to
Shenzhen reducing the
Guangju stock in over In normal
2016-05-09 6 months
Industrial Co., weight period completion
Ltd.; and the legal
time limit
Commitments for Share Merger Reform Yes
XI. Engagement and dismissal of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual report was no audited.
XII. Penalty and rectification
□ Applicable √ Not applicable
The Company had no penalty or rectification in the reporting period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period.
XIV. Explanation on other significant events
√ Applicable □ Not applicable
1. On 9 December and 28 December 2015, the Company convened the 6th extraordinary meeting of the 7th board
of directors and the 5th extraordinary general meeting for 2015, respectively, to consider and approve the proposal
relating to government acceptance of a land parcel with an area of 346 mu by Zhongshan Shenzhong Real Estate
Development Company (details were disclosed in the relevant announcements (No. 2015-080 and No. 2015-086)
of the Company dated 10 December and 29 December 2015 published on China Securities, Securities Times,
Hong Kong Commercial Daily and Juchao information website). However, by the disclosure of 2015 annual
report, the Company had not reached unanimous agreement with Zhongshan government in respect of the
acceptance conditions for such land of 346 mu. According to relevant provisions of financial management system,
the Company has made inventory impairment provision of RMB576, 291,300 for such land based on existing
information and progress of acceptance works. Details were disclosed in the relevant announcement (No.
2016-016) of the Company dated 1 April 2016 published on China Securities, Securities Times, Hong Kong
Commercial Daily and Juchao information website, concerning impairment provision for each asset of the
Company and its subsidiaries for 2015. During the reporting period, the Company, together with Shenzhong
35
深圳南山热电股份有限公司 2016 年半年度报告全文
Development Company , negotiated with Zhongshan Municipal People’s government and related functions.
However, due to the relatively dispute between both parties in specific acceptance price, they failed to reach
agreement on acceptance conditions. On 21 April 2016, the Company issued visiting letter to competent
authorities of Zhongshan government, requesting for negotiation for acceptance of the parcel of land of 346 mu by
Shenzhong Development Company. On 20 July, the Company issued a Referendum of Land Purchasing &
Storage on the 346 mu Lands of Shenzhong Real Estate Company to Zhongshan Municipal People’s government.
On 18 August, the Company received a Reply of Land Purchasing & Storage on the 346 mu Lands of Shenzhong
Company from Land Reserve Center of Zhongshan, the Center has a willing to negotiate with the Company in
aspect of the land reserve, and specific land reserve will determine before 30 September 2016. Up to the Report
disclosed, the Company has not yet reaches an agreement with Zhongshan Municipal People’s government on the
346 mu lands purchasing & storage
2. On 14 January 2016, the Company’s subsidiary Shennandian Dongguan Company received approval issued by
Guangdong Development and Reform Commission in relation to the fuel-gas and steam consolidated cycle power
generation project by Gaobu Natural Gas Power Plant (YFGNDH[2016]140). The approval stated that “with
reference to consideration by Guangdong Development and Reform Commission, and taking into account the
safety operation of power system and energy supply requirement of the whole province, in order to facilitate
approval procedure of this project, it is agreed to approve the fuel-gas and steam consolidated cycle power
generation project with capacity of 2×180 MW by Gaobu Natural Gas Power Plant under administration of
Shennandian Dongguan Company”. For details, please refer to the announcement (No. 2016-001) dated 16
January 2016 published by the Company on China Securities, Securities Times, Hong Kong Commercial Daily
and Juchao information website, concerning the subsidiary Shennandian (Dongguan) Weimei Power Company
Limited’s receipt of approval in relation to the fuel-gas and steam consolidated cycle power generation project by
Gaobu Natural Gas Power Plant. During the reporting period, Shennandian Dongguan Company signed Power
Allocation Agreement with relevant grid company, and obtained power business license from the state energy
bureau, southern supervision bureau on 7 March. Two 9Emachine sets of the company have been in official
operation for power generation.
3. In order to improve relevant procedures, realize industrial upgrade, acquire power quantity and seek for
conditions benefiting for sustainable development, the Company held the 8th extraordinary meeting of the 7th
board of directors on 22 January 2016 to consider and approve the proposal relating to investment by the
subsidiary Shennandian (Zhongshan) Power Company in constructing phase I thermal network of thermal-power
combination project. Details were disclosed in the announcement (No. 2016-004) dated 23 January 2016
published by the Company on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao
information website, concerning investment by the subsidiary Shennandian (Zhongshan) Power Company in
constructing phase I thermal network of thermal-power combination project. During the reporting period, it
obtained construction planning permit, completed design of construction drawing and bidding for supervision
institution. Currently, it is in the process of offering bidding for construction contractor.
4. On 28 January 2016, our subsidiary Shennandian Dongguan Company received the approval from Guangdong
Development and Reform Commission in relation to determining temporary grid price of Gaobu Power Plant
under administration of Shennandian (Dongguan) Weimei Power Company (YFGJGH[2016]379), pursuant to
which, the aforesaid temporary grid price was RMB0.745 (tax included) per kwh which would be adopted since 1
36
深圳南山热电股份有限公司 2016 年半年度报告全文
February 2016. Details were disclosed in the announcement (No. 2016-006) dated 30 January 2016 published by
the Company on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao information
website, concerning our subsidiary Shennandian (Dongguan) Weimei Power Company’s receipt of approval in
relation to determining temporary grid price of Gaobu Power Plant under administration of Shennandian
(Dongguan) Weimei Power Company.
5. The Company disclosed relevant particulars about the project-oriented technology upgrade beneficial fund in
the first quarterly report of 2016 on 27 April 2016. (Found more in the First Quarterly Report of 2016 (Notice No.:
2016-026) released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao
Website) During the reporting period, the Company held several meetings to study relevant issues, to make further
verification of the project-oriented technology upgrade beneficial fund, and to appoint specified person to be
liable for implementation of the requirements by relevant authorities and documents, and it is managing to
communicate with relevant persons to facilitate serve of notice.
6. Our subsidiary Xiefu Company failed for several times to collect the outstanding payment from China Shipping
& Sinopec. In order to accelerate the trade receivables owed by China Shipping & Sinopec and thus to maintain
legal interests of Xiefu and its shareholders, Xiefu begun legal proceedings. It submitted civil complaint and other
supporting materials to the People’s Court of Huangpu district, Guangzhou on 24 February 2016, and the court
has decided to hold hearing in respect thereof. For details, please refer to the announcement (No. 2016-007) dated
1 March 2016 published by the Company on China Securities, Securities Times, Hong Kong Commercial Daily
and Juchao information website, concerning the law suit of Shenzhen Xiefu Energy Company Limited. On 16
May, the above court held hearings for this law suit. During the reporting period, the suit was pending for final
ruling. The Company will pay close attention to progress of this law suit and perform disclosure as required.
7. Taking into consideration the audited net profit of the Company for 2014 and 2015 accounting years being
RMB-330,513,284.99 and RMB-634,623,667.06, respectively, the Company was required to suspend trading for
its shares on 1 April 2016 on which its 2015 annual report was disclosed under relevant requirements of the
Listing Rules of Shenzhen Stock Exchange. Since 5 April when resumption of trading began (2, 3 and 4 April
were legal holidays), shares of the Company were traded with warning for delisting, which meant that
abbreviation of our stock would be added *ST and the daily increase/decrease cap for trading price was subject to
5%. In case the Company continues to record loss for 2016, it may be required to delist temporarily. Investors are
hereby warned to pay attention to investment risks. For details, please refer to the announcement (No. 2016-015)
dated 1 April 2016 published by the Company on China Securities, Securities Times, Hong Kong Commercial
Daily and Juchao information website, in relation to issuance of delisting warning against the shares of the
Company.
8. In 2015, pursuant to the notice relating to increase of shareholding in the Company by its substantial
shareholders, directors, supervisors and senior management (ZJF[2015]51) issued by the CSRC, our shareholder
Guangju Industrial planned to increase shareholding in the Company with the own capital not less than
RMB25.12 million since 9 July 2015, by means of asset management through securities companies and fund
management companies, and it undertook not to decrease its shareholding within 6 months upon implementation
of this capital increase plan. For details, please refer to the announcement (No. 2015-052) dated 9 July 2016
published by the Company on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao
37
深圳南山热电股份有限公司 2016 年半年度报告全文
information website, in relation to increase of shareholding by the shareholders and chairman of the board. From
16 September 2015 to 9 May 2016, Guangju Industrial has in aggregate increased shareholding of 2,908,201
A-shares of the Company by means of asset management plan, accounting for 0.48% of the total shares of the
Company, and the amount subject this increase was approximately RMB25,127,900. The shareholding increase
plan has been completed. Upon this increase of shareholding, Guangju Industrial holds in aggregate 73,666,824
A-shares of the Company directly or through asset management account, accounting for 12.22% of the total shares
of the Company. This increase of shareholding complied with relevant laws, regulations and provisions of
Shenzhen Stock Exchange. For details, please refer to the 3rd quarterly report for 2015 (No. 2015-072) and the
announcement (No. 2016-030) relating to completion of shareholding in the Company by a shareholder dated 23
October 2015 and 10 May 2016 published by the Company on China Securities, Securities Times, Hong Kong
Commercial Daily and Juchao information website.
9. On 9 May 2016, the Company received the notice issued by Guangdong Development and Reform Commission,
Guangdong Economy and Information Commission and Guangdong Finance Bureau in relation to subsidy for fuel
gas and oil processing fee for the period from January to September 2015 (YFGJG[2016]221). According to
relevant requirement of the notice in relation to temporary collection of fuel gas and oil processing fee
(YFH[2008]31) issued by Guangdong People’s Government, it was verified that, for the period from January to
September 2015, the revenue from power generation of Zhongshan Nanlang Power Plant which our subsidiary
Shennandian Zhongshan Company belonged to was RMB0.913 per kwh, and RMB0.89 per kwh for Dongguan
Gaobu Power Plant which Shennandian Dongguan Company belonged to. Part of such power revenue generated
by the aforesaid plants was settled by Guangdong Grid Company directly with the plants by reference to the
power offered by the plants into grid and the agreed price, and the remaining part was compensated by means of
fuel gas and oil processing fee. According to the notice, Shennandian Zhongshan Company will increase revenue
of RMB6,643,200 for this period and RMB1,257,900 for Shennandian Dongguan Company. For details, please
refer to the announcement (No. 2016-031) dated 10 May 2016 published by the Company on China Securities,
Securities Times, Hong Kong Commercial Daily and Juchao information website, in relation to receipt of notice
concerning subsidy for fuel gas and oil processing fee for the period from January to September 2015.
10. In order to prepare significant issues, ensure fair information disclosure, avoid abnormal fluctuation of trading
price and maintain investors’ interests, subject to application to Shenzhen Stock Exchange, the Company began to
suspend trading of shares from the morning trading session on 31 May 2016. On the same day, the Company
published a suspending announcement due to significant issues (No. 2016-032). On 15 June 2016, the Company
issued a suspending announcement due to reorganization of material assets (No. 2016-034), confirming that the
significant issue prepared for this suspension referred to reorganization of material assets. Besides, it issued bid
invitation for potential party for reorganization to nine companies and institutions, so as to identify those parties
which were interested in participating reorganization of the Company’s material assets. Upon application, the
shares of the Company continued to be suspended for trading since the morning trading hours on 15 June 2016.
Up to the bid closing date of 4 July 2016, the Company has received three tender documents; other six units are
expressly to give up the tender by means of letter and e-mail. Ended before the Report disclosed, China Gas was
determined as the intention restructuring party and have entered the Framework Agreement of Material Assets
Reorganization, the Company will communicate and negotiate with China Gas in aspect of this material assets
reorganization. During the period of suspension, the Company performed its obligation on information disclosure
to provide an announcement indicating relevant progress at least every five business days. The information
regarding to this reorganization has been disclosed by the Company on China Securities, Securities Times, Hong
38
深圳南山热电股份有限公司 2016 年半年度报告全文
Kong Commercial Daily and Juchao information website(announcement No.: 2016-032, 2016-033, 2016-034,
2016-035, 2016-036, 2016-037, 2016-038, 2016-041, 2016-042, 2016-044, 2016-046, 2016-047, 2016-048,
2016-051 and 2016-054)
Except for the above issues, the other issues disclosed by the Company in the section of “Explanation for Other
Significant Issues” in the 2015 annual report witnesses no progress or change during this reporting period
XV. Issuance of corporate bonds
The Company has no corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but not
fully cashed on the approval date of annual report
39
深圳南山热电股份有限公司 2016 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
In share
Before the Changes Increase/Decrease in the Change (+, -) After the Changes
Public
Newly
reserve- Proportio
- Bonus
Amount Proportion converte Others Subtotal Amount
issued shares n
d
shares
shares
I. Restricted shares 12,993 0.0022% 12,993 0.0022%
1. Other domestic
12,993 0.0022% 12,993 0.0022%
shareholding
Domestic nature
12,993 0.0022% 12,993 0.0022%
person shares
II. Unrestricted shares 602,749,603 99.9978% 602,749,603 99.9978%
1.RMB ordinary shares 338,895,157 56.2249% 338,895,157 56.2249%
2.Domestically listed
263,854,446 43.7751% 263,854,446 43.7751%
foreign shares
III. Total shares 602,762,596 100.00% 602,762,596 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company
□ Applicable √ Not applicable
II. Number of shares and shares held
In Share
Total preference shareholders
Total common shareholders at
31,645 with voting rights recovered at N/A
period-end
end of reporting period (if
40
深圳南山热电股份有限公司 2016 年半年度报告全文
applicable)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Proportio Number of Amount of Amount of Number of share
Changes in
Nature of n of common shares restricted un-restricted pledged/frozen
Shareholders reporting
shareholder shares held at common common State of Amoun
period
held period-end shares held shares held share t
HONG KONG NAM
HOI Overseas
15.28% 92,123,248 92,123,248
(INTERNATIONAL) corporate
LTD
Shenzhen Guangju State-owned
12.22% 73,666,824 +1,215,701 73,666,824
Industrial Co., Ltd. corporate
SHENZHEN ENERGY State-owned
10.80% 65,106,130 65,106,130
(GROUP) CO., LTD. corporate
National Council for
Social Security Fund – Other 1.52% 9,159,257 9,159,257
604
Domestic
Zeng Ying nature 1.00% 6,049,070 6,049,070
person
China Merchants
Overseas
Securities (HK) Co., 0.88% 5,319,687 5,319,687
corporate
Limited
GUOTAI JUNAN
Overseas
SECURITIES(HONGK 0.81% 4,854,318 4,854,318
corporate
ONG) LIMITED
BOCI SECURITIES Overseas
0.73% 4,403,014 4,403,014
LIMITED corporate
Domestic
Zhang Heping nature 0.72% 4,351,900 4,351,900
person
Overseas
YAO XIU GUANG 0.65% 3,939,000 3,939,000
corporate
1. Shenzhen Energy (Group) Co., Ltd. holds indirectly 100% equities of Hong Kong Nam
Explanation on associated relationship
Hoi (International) Limited; 2. Among other social public shareholders, the Company did
among the aforesaid shareholders
not know whether there were associated relationships or belonging to consistent actors.
Particular about top ten common shareholders with un-restrict shares held
Amount of un-restrict common shares held at Type of shares
Shareholders
period-end Type Amount
41
深圳南山热电股份有限公司 2016 年半年度报告全文
Domestically
HONG KONG NAM HOI
92,123,248 listed foreign 92,123,248
(INTERNATIONAL) LTD
shares
Shenzhen Guangju Industrial Co., RMB ordinary
73,666,824 73,666,824
Ltd. shares
SHENZHEN ENERGY (GROUP) RMB ordinary
65,106,130 65,106,130
CO., LTD. shares
National Council for Social Security RMB ordinary
9,159,257 9,159,257
Fund – 604 shares
Domestically
Zeng Ying 6,049,070 listed foreign 6,049,070
shares
Domestically
China Merchants Securities (HK)
5,319,687 listed foreign 5,319,687
Co., Limited
shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 4,854,318 listed foreign 4,854,318
LIMITED shares
Domestically
BOCI SECURITIES LIMITED 4,403,014 listed foreign 4,403,014
shares
RMB ordinary
Zhang Heping 4,351,900 4,351,900
shares
Domestically
YAO XIU GUANG 3,939,000 listed foreign 3,939,000
shares
Expiation on associated relationship
or consistent actors within the top
1. Shenzhen Energy (Group) Co., Ltd. holds indirectly 100% equities of Hong Kong Nam Hoi
10 un-restrict common shareholders
(International) Limited; 2. Among other social public shareholders, the Company did not
and between top 10 un-restrict
know whether there were associated relationships or belonging to consistent actors.
common shareholders and top 10
common shareholders
Explanation on top ten common
shareholders involving margin N/A
business (if applicable)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealing in reporting period
√ Yes □ No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in
reporting period
42
深圳南山热电股份有限公司 2016 年半年度报告全文
III. Changes of controlling shareholders or actual controller
Pursuit to the definition of controlling shareholder in Rules Governing the Stock Listing, the Company has no controlling shareholder
and actual control, and there are no changes in such condition during the Period
IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
√ Applicable □ Not applicable
Numbers Ratio
Numbers Ratio
Shareholder/ persons acting actually actually Initial disclosure date Disclosure date for
overweight by overweight by
in concert overweigh overweigh for overweight overweight plan closed
plan plan
t t
Shenzhen Guangju Industrial
- - 2,908,201 0.48% 2015-07-09 2016-05-10
Co., Ltd.
Other notes
Pursuant to the notice relating to increase of shareholding in the Company by its substantial shareholders, directors, supervisors and
senior management (ZJF[2015]51) issued by the CSRC, our shareholder Guangju Industrial increased shareholding in the Company
with the own capital not less than RMB25.12 million by purchasing A shares of the Company through asset management plan by
securities companies and fund management companies. From 16 September 2015 to 9 May 2016, Guangju Industrial has in aggregate
increased shareholding of 2,908,201 A-shares of the Company by means of asset management plan, accounting for 0.48% of the total
shares of the Company, and the amount subject this increase was approximately RMB25, 127,900. The shareholding increase plan
has been completed. Upon this increase of shareholding, Guangju Industrial holds in aggregate 73,666,824 A-shares of the Company
directly or through asset management account, accounting for 12.22% of the total shares of the Company. This increase of
shareholding complied with relevant laws, regulations and provisions of Shenzhen Stock Exchange. Meanwhile, the Company
performed its obligation to disclose relevant information under relevant requirement. For details, please refer to the announcement
(No. 2016-030) relating to completion of shareholding in the Company by a shareholder dated 10 May 2016 published by the
Company on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao information website.
43
深圳南山热电股份有限公司 2016 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
44
深圳南山热电股份有限公司 2016 年半年度报告全文
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2015.
II. Resignation and dismissal of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Director Elected 2016-04-25 Change of directors
Wu Guowen Executive Vice
Appointment 2016-03-30 Change of senior executives
General Manager
Director Leave office 2016-03-30 Retired
Ji Ming Executive Vice
Leave office 2016-03-30 Retired
General Manager
45
深圳南山热电股份有限公司 2016 年半年度报告全文
Section IX. Financial Report (Un-audited)
The financial report of the semi-annual report 2016 has not been audited (attached)
X. Documents Available for Reference
I. Original semi-annual Report of 2016 carried with the personnel signature of Legal Representative;
II. Accounting Statements carried with the signature and seals of the Legal Representative, General Manager and CFO;
II. Financial statement with signature and seal of Person in charge of the company (legal person), person in charge of accounting works
(General manager and chief financial officer) and person in charge of accounting organ(accountant in charge);
III. All the original Company’s documents and public notices disclosed in Securities Times, China Securities Journal and Hong Kong
Commercial Daily in the report period;
IV. Place for inspection: Secretariat of the Board of Director of the Company.
46
深圳南山热电股份有限公司 2016 年半年度报告全文
Consolidated Balance Sheet
In RMB/CNY
Liabilities and owners’
Asset 2016-6-30 2015-12-31 2016-6-30 2015-12-31
equity:
Current assets: Current liabilities:
Monetary funds 1,111,628,721.76 1,026,626,480.06 Short-term loans 1,910,804,173.08 2,385,300,000.00
Notes receivable - 1,200,000.00 Notes payable 397,664,067.79 340,000,000.00
Accounts
390,666,298.24 405,391,442.85 Accounts payable 70,931,890.75 38,014,729.22
receivable
Accounts paid in Accounts received
12,613,065.69 254,557.09 - 58,575.45
advance in advance
Interest
- - Wage payable 47,680,179.43 47,521,710.84
receivable
Dividend
- - Taxes payable 10,122,944.13 13,444,485.85
receivable
Other
45,219,808.35 30,685,319.69 Interest payable 72,230,183.46 63,142,049.81
receivables
Inventories 687,949,261.61 672,683,049.42 Dividend payable - -
Long-term debt
Other accounts
investment due - - 363,679,730.25 371,926,173.24
payable
within 1 year
Long-term liabilities
Other current assets 566,569,538.51 604,426,110.04 179,000,000.00 -
due within 1 year
Total current
Total current assets 2,814,646,694.16 2,741,266,959.15 3,052,113,168.89 3,259,407,724.41
liabilities
Non-current assets: Non-current liabilities:
Financial assets
59,315,000.00 57,315,000.00 Long-term loans 1,002,400,000.00 696,000,000.00
available for sale
Long-term
- - Accrual liabilities 27,100,000.00 27,100,000.00
account receivable
Long-term
21,437,414.94 22,520,274.78 Deferred income 46,755,614.32 48,435,206.35
equity investment
Investment Other non-current
3,096,646.71 3,194,715.51 - -
property liabilities
Total non-current
Fixed assets 1,611,857,719.89 1,667,494,083.42 1,076,255,614.32 771,535,206.35
liabilities
Construction in
9,225,042.62 8,473,276.90 Total liabilities 4,128,368,783.21 4,030,942,930.76
progress
Disposal of fixed
- - Owners’ equity:
asset
Intangible assets 52,444,689.18 53,801,475.81 Share capital 602,762,596.00 602,762,596.00
Long-term
Capital public
expenses to be - - 362,770,922.10 362,758,554.21
reserve
apportioned
Deferred income Other
2,905,768.69 2,905,768.69 - -
tax asset comprehensive income
Other Surplus public
22,882,181.78 22,882,181.78 332,908,397.60 332,908,397.60
non-current asset reserve
Total non-current
1,783,164,463.81 1,838,586,776.89 Retained profit -718,877,594.48 -662,422,848.24
asset
47
深圳南山热电股份有限公司 2016 年半年度报告全文
Total owner’s
equity attributable to 579,564,321.22 636,006,699.57
parent Company
Minority interests -110,121,946.46 -87,095,894.29
Total shareholders’
469,442,374.76 548,910,805.28
equity
Total liabilities and
Total assets 4,597,811,157.97 4,579,853,736.04 4,597,811,157.97 4,579,853,736.04
shareholders’ equity
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Balance sheet of parent company
In RMB/CNY
Liabilities and owners’
Asset 2016-6-30 2015-12-31 2016-6-30 2015-12-31
equity:
Current assets: Current liabilities:
Monetary funds 630,192,080.91 685,708,711.65 Short-term loans 1,444,000,000.00 2,024,000,000.00
Notes receivable - - Notes payable 370,259,698.61 340,000,000.00
Accounts
244,873,310.69 309,114,888.65 Accounts payable 40,901,129.67 24,793,826.11
receivable
Accounts paid Accounts received
328,236.20 215,431.80 - -
in advance in advance
Interest
- - Wage payable 22,867,340.62 25,958,401.01
receivable
Dividend
79,495,331.17 79,495,331.17 Taxes payable 2,699,709.84 2,488,252.98
receivable
Other
1,250,614,881.95 1,260,619,190.09 Interest payable 3,269,651.39 4,072,366.54
receivables
Inventories 72,823,135.67 73,381,539.62 Dividend payable - -
Long-term debt
Other accounts
investment due - - 168,341,174.38 167,136,669.31
payable
within 1 year
Non current
Other current assets 446,564,949.85 460,714,889.70 liabilities due within one 73,000,000.00 -
year
Total current
Total current assets 2,724,891,926.44 2,869,249,982.68 2,125,338,704.51 2,588,449,515.95
liabilities
Non-current assets: Non-current liabilities:
Financial assets
59,315,000.00 57,315,000.00 Long-term loans 607,000,000.00 250,000,000.00
available for sale
Long-term
691,982,849.76 691,982,849.76 Deferred income 27,376,824.93 28,425,205.59
equity investment
Investment Other non-current
- - - -
property liabilities
Total non-current
Fixed assets 235,682,685.23 240,657,379.95 634,376,824.93 278,425,205.59
liabilities
Construction in
893,783.25 744,725.65 Total liabilities 2,759,715,529.44 2,866,874,721.54
progress
Disposal of fixed - - Owners’ equity:
48
深圳南山热电股份有限公司 2016 年半年度报告全文
asset
Intangible assets 4,749,332.75 5,469,452.93 Share capital 602,762,596.00 602,762,596.00
Long-term
Capital public
expenses to be - - 288,869,612.11 288,857,244.22
reserve
apportioned
Deferred Other
- - - -
income tax asset comprehensive income
Other Surplus public
- - 332,908,397.60 332,908,397.60
non-current asset reserve
Total non-current
992,623,650.99 996,169,408.29 Retained profit -266,740,557.72 -225,983,568.39
asset
Total shareholders’
957,800,047.99 998,544,669.43
equity
Total liabilities and
Total assets 3,717,515,577.43 3,865,419,390.97 3,717,515,577.43 3,865,419,390.97
shareholders’ equity
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Consolidated Profit Statement
In RMB/CNY
Item Jan-Jun 2016 Jan-Jun 2015
I. Total operation income 697,688,267.08 650,557,237.18
Including: operation income 697,688,267.08 650,557,237.18
II. Total operation cost 786,599,259.71 911,655,231.49
Including: operation cost 639,919,822.75 746,907,771.86
Operation tax and surcharge 3,100,286.05 3,501,579.02
Sales expense 2,453,390.26 2,183,711.61
Management expense 44,677,104.53 43,210,635.07
Financial expense 96,448,656.12 115,851,533.93
Loss of assets impairment - -
Add: Changing income of fair value(Loss is
- -
listed with “-”)
Investment income (Loss is listed with “-”) -1,082,859.84 -883,344.35
Including: Investment income on affiliated
- -
company and joint venture
III. Operating profit (Loss is listed with “-”) -89,993,852.47 -261,981,338.66
Add: Non-operating income 11,821,340.67 133,689,250.30
Including: Disposal gains of non-current
- 36,000.00
asset
Less: Non-operating expense 223,276.08 28,760.53
Including: Disposal loss of non-current
203,276.08 18,676.42
asset
49
深圳南山热电股份有限公司 2016 年半年度报告全文
IV. Total Profit (Loss is listed with “-”) -78,395,787.88 -128,320,848.89
Less: Income tax expense 1,085,010.53 488,647.17
V. Net profit (Net loss is listed with “-”) -79,480,798.41 -128,809,496.06
Net profit attributable to owner’s of parent
-56,454,746.24 -102,546,073.06
company
Minority shareholders’ gains and losses -23,026,052.17 -26,263,423.00
VI. Net after-tax of other comprehensive income - -
VII. Total comprehensive income -79,480,798.41 -128,809,496.06
Total comprehensive income attributable to
-56,454,746.24 -102,546,073.06
owners of parent Company
Total comprehensive income attributable to
-23,026,052.17 -26,263,423.00
minority shareholders
VIII. Earnings per share: - -
(i) Basic earnings per share -0.09 -0.17
(ii) Diluted earnings per share Not applicable Not applicable
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Profit statement of parent company
In RMB/CNY
Item Jan-Jun 2016 Jan-Jun 2015
I. Operation income 157,986,763.09 182,088,549.77
Less: Operation cost 166,953,311.54 217,358,344.02
Operation tax and surcharge 2,292,405.28 2,959,810.77
Sales expense - -
Management expense 10,141,654.95 24,707,310.79
Financial expense 20,469,396.42 27,775,396.75
Loss of assets impairment - -
Add: Changing income of fair value(Loss
- -
is listed with “-”)
Investment income (Loss is listed with
- -
“-”)
Including: Investment income on
- -
affiliated company and joint venture
II. Operating profit (Loss is listed with “-”) -41,870,005.10 -90,712,312.56
Add: Non-operating income 1,307,580.66 89,225,899.66
Including: Disposal gains of
- -
non-current asset
Less: Non-operating expense 194,564.89 -
Including: Disposal loss of 194,564.88 -
50
深圳南山热电股份有限公司 2016 年半年度报告全文
non-current asset
III. Total Profit (Loss is listed with “-”) -40,756,989.33 -1,486,412.90
Less: Income tax expense - -
IV. Net profit (Net loss is listed with “-”) -40,756,989.33 -1,486,412.90
V. Other comprehensive income
VI. Total comprehensive income -40,756,989.33 -1,486,412.90
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Consolidated Cash Flow Statement
In RMB/CNY
Item Jan-Jun 2016 Jan-Jun 2015
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 695,513,877.94 635,241,959.31
Write-back of tax received 1,743,744.64 -
Other cash received concerning operating activities 160,068,046.28 416,649,345.72
Subtotal of cash inflow arising from operating activities 857,325,668.86 1,051,891,305.03
Cash paid for purchasing commodities and receiving labor service 555,303,978.14 622,618,355.79
Cash paid to/for staff and workers 61,305,844.68 67,601,183.05
Taxes paid 30,835,131.42 10,935,597.84
Other cash paid concerning operating activities 26,200,439.29 31,880,869.16
Subtotal of cash outflow arising from operating activities 673,645,393.53 733,036,005.84
Net cash flows arising from operating activities 183,680,275.33 318,855,299.19
II. Cash flows arising from investing activities:
Cash received from recovering investment - -
Cash received from investment income - -
Net cash received from disposal of fixed, intangible and other
- 1,134.00
long-term assets
Subtotal of cash inflow from investing activities - 1,134.00
Cash paid for purchasing fixed, intangible and other long-term assets 8,793,452.51 11,334,071.87
Cash paid for investment 2,000,000.00 -
Net cash received from subsidiaries and other units paid - -
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 10,793,452.51 11,334,071.87
Net cash flows arising from investing activities -10,793,452.51 -11,332,937.87
III. Cash flows arising from financing activities
Cash received from absorbing investment - -
Cash received from loans 1,280,654,173.08 1,953,510,000.00
Other cash received concerning financing activities 5,300,000.00 -
51
深圳南山热电股份有限公司 2016 年半年度报告全文
Subtotal of cash inflow from financing activities 1,285,954,173.08 1,953,510,000.00
Cash paid for settling debts 1,269,750,000.00 1,859,000,000.00
Cash paid for dividend and profit distributing or interest paying 98,901,671.12 110,530,069.86
Other cash paid concerning financing activities 11,309,958.60 -
Subtotal of cash outflow from financing activities 1,379,961,629.72 1,969,530,069.86
Net cash flows arising from financing activities -94,007,456.64 -16,020,069.86
IV. Influence on cash due to fluctuation in exchange rate 112,916.92 -7,142.36
V. Net increase of cash and cash equivalents 78,992,283.10 291,495,149.10
Add: Balance of cash and cash equivalents at the period -begin 1,016,326,480.06 568,494,957.02
VI. Balance of cash and cash equivalents at the period -end 1,095,318,763.16 859,990,106.12
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Cash flow statement of parent company
In RMB/CNY
Item Jan-Jun 2016 Jan-Jun 2015
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 342,239,636.46 166,247,138.21
Write-back of tax received - -
Other cash received concerning operating activities 151,825,184.86 544,519,386.74
Subtotal of cash inflow arising from operating activities 494,064,821.32 710,766,524.95
Cash paid for purchasing commodities and receiving labor service 174,513,170.41 187,901,365.88
Cash paid to/for staff and workers 36,039,930.28 41,440,816.51
Taxes paid 8,352,022.41 6,082,353.51
Other cash paid concerning operating activities 107,008,226.49 253,855,525.27
Subtotal of cash outflow arising from operating activities 325,913,349.59 489,280,061.17
Net cash flows arising from operating activities 168,151,471.73 221,486,463.78
II. Cash flows arising from investing activities:
Net cash received from disposal of fixed, intangible and other
- -
long-term assets
Subtotal of cash inflow from investing activities - -
Cash paid for purchasing fixed, intangible and other long-term assets 240,505.60 389,316.98
Cash paid for investment 2,000,000.00 -
Net cash received from subsidiaries and other units obtained - -
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 2,240,505.60 389,316.98
Net cash flows arising from investing activities -2,240,505.60 -389,316.98
III. Cash flows arising from financing activities
Cash received from absorbing investment - -
Cash received from loans 1,020,000,000.00 1,470,000,000.00
Other cash received concerning financing activities 5,300,000.00 -
52
深圳南山热电股份有限公司 2016 年半年度报告全文
Subtotal of cash inflow from financing activities 1,025,300,000.00 1,470,000,000.00
Cash paid for settling debts 1,170,000,000.00 1,389,000,000.00
Cash paid for dividend and profit distributing or interest paying 71,429,240.83 78,180,586.79
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 1,241,429,240.83 1,467,180,586.79
Net cash flows arising from financing activities -216,129,240.83 2,819,413.21
IV. Influence on cash due to fluctuation in exchange rate 1,643.96 -620.31
V. Net increase of cash and cash equivalents -50,216,630.74 223,915,939.70
Add: Balance of cash and cash equivalents at the period -begin 675,408,711.65 332,803,493.04
VI. Balance of cash and cash equivalents at the period -end 625,192,080.91 556,719,432.74
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
53
深圳南山热电股份有限公司 2016 年半年度报告全文
Consolidated Statement on Changes of Owners’ Equity
In RMB/CNY
Amount in Jan-Jun 2015 Amount in 2015
Equity attributable to Shareholder of parent company Total Equity attributable to Shareholder of parent company
Item Minority’s Minority’s Total owners’
Share Capital Surplus Retained owners’ Share Capital Surplus Retained
equity equity equity
capital reserve reserves profit equity capital reserve reserves profit
I. Balance
at the end 602,762,59 362,758,55 332,908,39 -662,422,84 -87,095,894. 548,910,80 602,762,59 362,670,44 332,908,39 -27,799,181. 107,604,935 1,378,147,19
of the last 6.00 4.21 7.60 8.24 29 5.28 6.00 2.46 7.60 18 .67 0.55
year
Add:
Changes of
- - - - - - - - - - - -
accounting
policy
II. Balance
at the 602,762,59 362,758,55 332,908,39 -662,422,84 -87,095,894. 548,910,80 602,762,59 362,670,44 332,908,39 -27,799,181. 107,604,935 1,378,147,19
beginning 6.00 4.21 7.60 8.24 29 5.28 6.00 2.46 7.60 18 .67 0.55
of this year
III.
Increase/ -56,454,746. -23,026,052. -79,468,430 -634,623,66 -194,700,82 -829,236,385
- 12,367.89 - - 88,111.75 -
Decrease in 24 17 .52 7.06 9.96 .27
this year
(i) Total
comprehen -56,454,746. -23,026,052. -79,480,798 -634,623,66 -194,700,82 -829,324,497
- - - - - -
sive 24 17 .41 7.06 9.96 .02
income
(ii)
- - - - - - - - - - - -
Owners’
54
深圳南山热电股份有限公司 2016 年半年度报告全文
devoted
and
decreased
capital
1.
Owners’
- - - - - - - - - - - -
devoted
and capital
2. Other - - - - - - - - - - - -
(III) Profit
- - - - - - - - - - - -
distribution
1.
Withdrawal
- - - - - - - - - - - -
of surplus
reserves
2.
Distributio
n for
- - - - - - - - - -
owners (or
shareholder
s)
3. Other - - - - - - - - - - - -
(IV)
Carrying
forward
- - - - - - - - - - - -
internal
owners’
equity
(V)Other - 12,367.89 - - - 12,367.89 - 88,111.75 - - - 88,111.75
IV. Balance 602,762,59 362,770,92 332,908,39 -718,877,59 -110,121,94 469,442,37 602,762,59 362,758,55 332,908,39 -662,422,84 -87,095,894. 548,910,805.
at the end 6.00 2.10 7.60 4.48 6.46 4.76 6.00 4.21 7.60 8.24 29 28
55
深圳南山热电股份有限公司 2016 年半年度报告全文
of the
Period
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
56
深圳南山热电股份有限公司 2016 年半年度报告全文
Statement on Changes of Owners’ Equity of Parent Company
In RMB/CNY
Amount in Jan-Jun 2016 Amount in 2015
Item
Capital Surplus Total owners’ Capital Surplus Retained Total owners’
Share capital Retained profit Share capital
reserve reserves equity reserve reserves profit equity
I. Balance at the end of 602,762,596.0 288,857,244.2 332,908,397.6 -225,983,568.3 288,769,132.4 332,908,397.6 367,087,691.5 1,591,527,817.5
998,544,669.43 602,762,596.00
the last year 0 2 0 9 7 0 1 8
Add: Changes of
- - - - - - - - - -
accounting policy
II. Balance at the 602,762,596.0 288,857,244.2 332,908,397.6 -225,983,568.3 288,769,132.4 332,908,397.6 367,087,691.5 1,591,527,817.5
998,544,669.43 602,762,596.00
beginning of this year 0 2 0 9 7 0 1 8
III. Increase/ Decrease -593,071,259.
- 12,367.89 - -40,756,989.33 -40,744,621.44 - 88,111.75 - -592,983,148.15
in this year 90
(i) Total -593,071,259.
- - - -40,756,989.33 -40,756,989.33 - - - -593,071,259.90
comprehensive income 90
(ii) Owners’ devoted
- - - - - - - - - -
and decreased capital
1. Owners’ devoted
- - - - - - - - - -
and capital
2. Other - - - - - - - - - -
(III) Profit distribution - - - - - - - - - -
1. Withdrawal of
- - - - - - - - - -
surplus reserves
2. Other - - - - - - - - - -
(IV) Carrying forward
- - - - - - - - - -
internal owners’ equity
1. Capital reserves
conversed to share - - - - - - - - - -
capital)
2. Surplus reserves
conversed to share - - - - - - - - - -
capital
(V)Other - 12,367.89 - - 12,367.89 - 88,111.75 - - 88,111.75
57
深圳南山热电股份有限公司 2016 年半年度报告全文
IV. Balance at the end 602,762,596.0 288,869,612.1 332,908,397.6 -266,740,557.7 288,857,244.2 332,908,397.6 -225,983,568.
957,800,047.99 602,762,596.00 998,544,669.43
of the year 0 1 0 2 2 0 39
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
58
深圳南山热电股份有限公司 2016 年半年度报告全文
Shenzhen Nanshan Power Co., Ltd.
Notes to financial statement semi-annual 2016
I. Company Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter called as “Company”) was reorganized to be a joint-stock enterprise from a foreign
investment enterprise on 25 November 1993, upon the approval of General Office of Shenzhen Municipal Government with Document Shen
Fu Ban Fu [1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.897 issued by Shenzhen Securities Regulatory Office, on 3 January 1994, the
Company offered 40,000,000 RMB common shares and 37,000,000 domestically listed foreign shares in and out of China. And the RMB
common shares (A-stock) and domestically listed foreign listed shares (B-stock) were listed in Shenzhen Securities Exchange successively
on July 1, 1994 and Nov. 28, 1994.
Headquarter of the Company located in Shenzhen Guangdong Province.
The financial statement was approved and decided by the Broad of the Company on 19 August 2016.
Totally 11 subsidiaries included in consolidate scope for year of 2016, the consolidated scope of the company in this year has not changed
compared with the last year. Found more in Note 8.-“equity in other body”.
The Company together with its subsidiaries (hereafter referred as the Company) is mainly engaged in businesses as production of power and
heat, plant constructional, oil trader, property developmental, construction technology consultation and sludge drying.
II．Preparation basis of Financial Statements
1. Basis of preparation
The Group’s financial statements have been prepared based on the going concern assumption. The financial statements have been prepared
based on actual transactions and events, in accordance with the Accounting Standards for Business Enterprises- Basic Norms(Ministry of
Finance Order No.33 Issued, Ministry of Finance Order No.76 Revised) promulgated by the Ministry of Finance of PRC on 15 February
2006 and 41 specific accounting standards, the subsequently promulgated application guidelines of the Accounting Standards for Business
Enterprises, interpretations and other related rules of the Accounting Standards for Business Enterprises (hereinafter referred to as “ASBEs”),
and the disclosure requirements of the “Regulation on the Preparation of Information Disclosures of Companies Issuing Public Shares, No.
15- General Requirements for Financial Reports” (revised in 2010) of China Securities Regulatory Commission.
The Group’s financial statements have been prepared on an accrual basis in accordance with the ASBEs. Except for certain financial
instruments, the financial statements are prepared under the historical cost convention. In the event that depreciation of assets occurs, a
provision for impairment is made accordingly in accordance with the relevant regulations.
III. Declaration of obedience to corporate accounting principles
The Financial Statements are up to requirements of corporate accounting principles, and also a true and thorough reflection to the Group
together with its financial information as financial position on 30th June 2016, and the Company together with its operation results, and
cash flow for the semi-annual of 2016. In addition, the financial statements of the Group also comply with, in all material respects, the
disclosure requirements of the “Regulation on the Preparation of Information Disclosures of Companies Issuing Public Shares, No.
15--General Requirements for Financial Reports” revised by the China Securities Regulatory Commission in 2014 and the notes thereto.
IV. The main accounting policies and accounting estimates
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深圳南山热电股份有限公司 2016 年半年度报告全文
The Company and its subsidiaries are mainly engaged in power and thermal generation, construction of power plant, fuel trading, property
development, engineering technology consultancy and sludge desiccation operation. According to the actual production and operation
characteristics, the Company and its subsidiaries establish certain specific accounting policies and accounting estimates in respect of their
transactions and matters such as sales revenue recognition pursuant to relevant business accounting principles. Details are set out in Note 25
Description of revenue items under section IV. For explanation on material accounting judgment and estimate issued by the management,
please refer to note 31 Material accounting judgment and estimate under section IV.
1. Accounting period
Accounting period of the Group divide into annual and medium-term, and the medium-term is the reporting period that shorter than one
completed accounting year. The Group’s accounting year is Gregorian calendar year, namely from 1st January to 31st December.
2. Operating cycle
Normal operating cycle refers to the period from purchase of assets used for processing to realization of cash or cash equivalents. Our
operation cycle is 12 months which is also serving as the standard for current or non- current assets and liabilities.
3．Bookkeeping standard currency
RMB is the currency in the Group’s main business economic environment and the bookkeeping standard one, which is adopted in
preparation of the financial statements.
4. Accounting treatment on enterprise combine under the same control and under the different control
Enterprise combination refers to a trading or event that two or over two independent enterprise/s combined to one reporting body. The
combination was divided into enterprise consolidation under the same control and the one not under the same control.
(1) Consolidation of enterprises under the same control
The enterprises involved in the consolidation are all under the final control of one party or parties and the control is not temporary. That is
the corporate consolidation under the common control. For a business combination involving enterprises under common control, the party
that, on the combination date, obtains control of another enterprise participating in the combination is the absorbing party, while that other
enterprise participating in the combination is a party being absorbed. The combination date is the date on which one combining enterprise
effectively obtains control of the other combining enterprises.
Assets and liabilities obtained by the absorbing party are measured at their carrying amount at the combination date as recorded by the party
being merged. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for
the combination (or the aggregate nominal value of shares issued as consideration) is charged to the capital reserve (share capital premium).
If the capital reserve (share capital premium) is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Cost incurred by the absorbing party that is directly attributable to the business combination shall be charged to profit or loss in the period in
which they are incurred.
(2) Consolidation of enterprises not under the same control
The enterprises involved in the consolidation are ones not under the same final control of the common party or parties before and after the
consolidation. That is the corporate consolidation under the different control. For a business combination not involving enterprises under
common control, the party that, on the acquisition date, obtains control of another enterprise participating in the combination is the acquirer,
while that other enterprise participating in the combination is the acquiree. The acquisition date is the date on which the acquirer effectively
obtains control of the acquiree.
For business combination involving entities not under common control, the cost of a business combination is the aggregate of the fair values,
on the date of acquisition, of assets given, liabilities incurred or assumed, and equity instruments issued by the acquirer to be paid by the
acquirer, in exchange for control of the acquire plus agency fee such as audit, legal service and evaluation consultation and other
management fees charged to the profit or loss for the period when incurred. As equity or bond securities are issued by the acquirer as
consideration, any attributable transaction cost is included in their initial costs. Involved or contingent consideration charged to the
combination cost according to its fair value on the date of acquisition, the combined goodwill would be adjusted if new or additional
evidence existed about the condition on the date of acquisition within twelve months after the acquisition date, which is required to adjust
the contingent consideration. The combination cost incurred by the acquirer and the identifiable net assets acquired from the combination are
measured at their fair values. Where the cost of a business combination exceeds the acquirer’s interest in the fair value of the acquiree’s
- 60 -
深圳南山热电股份有限公司 2016 年半年度报告全文
identifiable net assets on the acquisition date, the difference is recognized as goodwill. Where the cost of a business combination is less than
the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the acquirer shall first reassess the measurement of the fair
value of the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of combination. If after such
reassessment the cost of combination is still less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the
difference is charged to profit or loss for the period.
Where the acquiree’s deductible temporary difference acquired by the acquirer is not yet recognized as it does not satisfy the recognition
conditions of the deferred income tax assets on the acquisition date, but new or additional information proves that the relevant circumstances
have already existed on the acquisition date within twelve months after the acquisition date, which estimates that the economic benefits
incurred from the deductible temporary difference at the acquisition date of acquirer can be realized, then the relevant deferred income tax
assets will be recognized, and the goodwill will be reduced at the same time, if the goodwill is not sufficient to be absorbed, any excess shall
be recognized in the profit or loss for the period. Except as disclosed above, the deferred income tax assets related to the business
combination are charged to the profit or loss for the period.
For a business combination not under common control is finished by a stage-up approach with several transactions, these several transactions
will be judged whether they fall within “transactions in a basket” in accordance with the judgment standards on “transactions in a basket” as
set out in the Notice of the Ministry of Finance on Issuing Accounting Standards for Business Enterprises Interpretation No. 5 (Cai Kuai
[2012] No. 19) and Article 51 of the “Accounting Standards for Business Enterprise No.33- Consolidated Financial Statement” (see Note IV.
5(2)). If they fall within “transactions in a basket”, they are accounted for with reference to the descriptions as set out in the previous
paragraphs of this section and Note IV. 13 “Long-term equity investments”, and if they do not fall within “transactions in a basket”, they are
accounted for in separate financial statements and consolidated financial statements:
In separate financial statement, the sum between carrying value of the equity investment prior to acquisition date and cost of additional
investment made on the acquisition date is deemed to be the initial investment cost of this investment. Other comprehensive income
recognized for equity investment held prior to combination date under equity method shall be accounted for when the Company disposes of
this investment on the same basis as the investee directly disposes of relevant assets or liabilities, which means that other than the changes
arising from re-measuring the acquiree’s net liabilities or net assets under defined benefit plan under equity method, it shall be included in
investment income of the current period.
In consolidated financial report, for equity of bought party held before purchasing, re-measured by fair value on purchased date, and the
difference of fair value and its book value should reckoned into current investment income; Other comprehensive income recognized for
equity investment held prior to combination date under equity method shall be accounted for when the Company disposes of this investment
on the same basis as the investee directly disposes of relevant assets or liabilities, which means that other than the changes arising from
re-measuring the acquiree’s net liabilities or net assets under defined benefit plan under equity method, it shall be included in investment
income of the current period dated purchasing day.
5. Preparation methods for corporate consolidated statements
(1) Determining principle for consolidated financial report scope
The scope is determined on the basis of control. Control refers to the Company possess rights over the investee party, and enjoyed variable
return through participate in the relevant activities of the investee party, and the Company has ability to impact the amount of returns by
using the rights over investee party. The consolidated scope includes the Group and all the subsidiaries. Subsidiary is referring to the
enterprise or the subject controlled by the Company.
Once change of relevant facts and conditions results in change to relevant factors involved in the above definition, the Company will make
further assessment.
(2) Preparation methods for corporate consolidated statements
- 61 -
深圳南山热电股份有限公司 2016 年半年度报告全文
Subsidiaries are consolidated from the date on which the Group obtains net assets and the effective control of decision making of production
and operation are deconsolidated from the date that such control ceases. For disposal of subsidiaries, the operating results and cash flows of
such subsidiaries before the date of disposal are properly included in the consolidated income statement and consolidated cash flow
statements; for disposal of subsidiaries during the reporting period, no adjustment shall be made to the opening balance of the consolidated
balance sheet. For those subsidiaries acquired through business combination not under common control, the operating results and cash flows
after the acquisition date have been properly included in the consolidated income statements and consolidated cash flow statements. No
adjustments shall be made to the opening balance and the comparative figures of the consolidated financial statements. For those subsidiaries
acquired through business combination under common control and acquiree absorbed through combination, the operating results and cash
flows from the beginning of the consolidation period to the consolidation date are also presented in the consolidated income statement and
the consolidated cash flow statements. The comparative figures presented in the consolidated financial statements are also adjusted
accordingly.
The financial statements of the subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Company in
the preparation of the consolidated financial statements, where the accounting policies and the accounting periods are inconsistent between
the Company and the subsidiaries. For subsidiaries acquired from business combination not under common control, the financial statements
of the subsidiaries will be adjusted according to the fair value of the identifiable net assets at the acquisition date.
All intra-group significant balances, transactions and unrealized profit are eliminated in the consolidated financial statements.
As for the subsidiary’s shareholders’ equity and the parts that does not owned the Group in current net gains/losses, listed out independently
as minority shareholders’ equity and minority shareholders gains/losses in item of shareholders’ equity and net profit contained in
consolidated financial statement separately. The amount attributable to minority shareholders’ equity of current net loss/gains of subsidiaries
is listed in the net profit item of consolidated profit as minority shareholders’ equity. When the share of losses attributable to the minor
shareholders has exceeded their shares in the owners’ equity at the beginning of term attributable to minority shareholders in the subsidiary,
the balance shall offset the minor shareholders’ equity.
For control rights loss in original subsidiary for partial equity investment disposal or other reasons, the remained equity should re-measured
based on the fair value at date of control losses. The difference between the net assets of original subsidiary share by proportion held that
sustainable calculated since purchased date and sum of consideration obtained by equity disposal and fair value of remain equity, reckoned
into the current investment income of control rights loss. Other comprehensive income relating to equity investment in original subsidiary
shall be accounted for, upon lost of control, under the same basis as the acquiree would otherwise adopt when relevant assets or liabilities are
disposed directly by the acquiree, which means that other than the changes arising from re-measuring the original subsidiary’s net liabilities
or net assets under defined benefit plan, it shall be included in investment income of the current period. The remaining equity interests are
measured subsequently according to “Accounting Standard for Business Enterprises No. 2 – Long-term Equity Investments” or “Accounting
Standard for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments”. See Note IV.13 “Long-term equity
investments” or Note IV.9 “Financial instruments” for details.
When the Company disposes of equity investment in a subsidiary by a stage-up approach with several transactions until the control over the
subsidiary is lost, it shall determine whether these several transactions related to the disposal of equity investment in a subsidiary until the
control over the subsidiary is lost fall within “transactions in a basket”. Usually, these several transactions related to the disposal of equity
investment in a subsidiary are accounted for as transactions in a basket when the terms, conditions and economic impacts of these several
transactions meet the following one or more conditions: ① these transactions are entered into at the same time or after considering their
impacts on each other; ② these transactions as a whole can reach complete business results; ③ the occurrence of a transaction depends on at
least the occurrence of an other transaction; ④ an individual transaction is not deemed as economic, but is deemed as economic when
considered with other transactions. If they are not transactions in a basket, each of which are accounted for in accordance with applicable
rules in “partial disposal of long-term equity investment of a subsidiary without losing control over a subsidiary” (see Note IV. 13 (2) ④)
separately, and “the control over a subsidiary is lost due to partial disposal of equity investment or other reasons” (see the preceding
paragraph). When several transactions related to the disposal of equity investment in a subsidiary until the control over the subsidiary is lost
fall within transactions in a basket, each of which is accounted for as disposal of a subsidiary with a transaction until the control over a
subsidiary is lost; however, the different between the amount of disposal prior to the loss of control and the net assets of a subsidiary
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attributable to the disposal investment shall be recognized as other comprehensive income in consolidated financial statements and
transferred to profit or loss for the period at the time when the control is lost.
6. Classification of joint arrangement and accounting treatment on conduct joint operation
Joint arrangement refers to such arrangement as jointly controlled by two or more participators. The Company classifies joint arrangement
into joint operation and joint venture according to the rights it is entitled to and obligations it assumes. Under joint operation, the Company
is entitled to relevant assets under the arrangement and assumes relevant liabilities under the arrangement. Joint venture refers to such joint
arrangement under which the Company is only entitled to the net assets of the arrangement.
Equity method is adopted for investment in joint ventures, and it is accounted for under the accounting policies set out in note 13(2) ② “long
term equity investment under equity method” under section IV.
As a joint party under joint operation, the Company recognizes the assets and liabilities it separately holds and assumes, the assets and
liabilities it jointly holds and assumes under the proportion, the revenue from disposal of the output which the Company is entitled to under
the proportion, the revenue from disposal of the output under the proportion and the separately occurred expenses as well as expenses
occurred for joint operations under its proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation) or for purchase of assets
from joint operations, gain or loss arising from the transaction is only recognized to the extent it is attributable to other parties to the joint
operation before the joint operation is sold to any third party. In case that assets occur asset impairment loss under Business Accounting
Principle No.8-Assets Impairment, the Company recognizes this loss in full in connection with injection to or disposal of assets of joint
operations, and recognizes this loss based on the proportion in connection with purchase of assets from joint operations.
7. Determination criteria of cash and cash equivalent
Cash and cash equivalents of the Group include cash on hand, deposits readily available for payment purpose and short-term (normally fall
due within three months from the date of acquisition) and highly liquid investments held the Group which are readily convertible into known
amounts of cash and which are subject to insignificant risk of value change.
8. Foreign currency business and foreign currency statement translation
(1) Foreign currency business translation
Foreign currency transactions are translated into the Company’s functional currency at the spot rate on transaction date (generally refers to
the middle rate of prevailing foreign exchange rate released by the PBOC) when the transactions are initially measured. However, foreign
currency exchange business or transaction involving foreign currency exchange occurred by the Company are translated into functional
currency at the effective exchange rate adopted.
(2) Translation of foreign currency monetary items and foreign currency non-monetary items
On balance sheet date, foreign currency monetary items are translated at the spot rate as of balance sheet date, and the exchange difference
shall be included in current period gains and losses, except①exchange difference arising from foreign currency special borrowings relating
to purchasing assets satisfying capitalization conditions is stated under capitalization principle of borrowing expenses; ②exchange
difference arising from hedge instruments used as effective hedging of net investment in overseas operation (such difference shall be
included in other comprehensive income and recognized as current period gains and losses when the net investment is disposed); and
③exchange difference arising from change of carrying balance of available for sale foreign currency monetary items other than amortized
cost is included in other comprehensive income.
When preparing consolidated financial statement involving overseas operation, in case there is foreign currency monetary items which
substantially constitute net investment in overseas operation, the exchange difference arising from exchange rate fluctuation shall be
included in other comprehensive income; and shall transfer to gains and losses from disposal for the current period when the overseas
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operation is disposed of.
Non-monetary items measured in historical cost are still measured by sum on the bookkeeping standard currency at the current exchange rate.
The items measured by the fair value are converted at the current rate on the fair value recognition day. The difference is dealt as the fair
value change and reckoned into the current loss/gain or recognized as the other consolidated income and reckoned into the reserve.
(3) Translation of foreign currency financial statement
When preparing consolidated financial statement involving overseas operation, in case there is foreign currency monetary items which
substantially constitute net investment in overseas operation, the exchange difference arising from exchange rate fluctuation shall be
included in other comprehensive income as “translation difference of foreign currency statement”; and shall transfer to gains and losses from
disposal for the current period when the overseas operation is disposed of.
Foreign currency financial statement for overseas operation is translated into RMB statement by the following means: assets and liabilities in
balance sheet are translated at the spot rate as of balance sheet date; owner’s equity items (other than undistributed profit) are translated at
the spot rate prevailing on the date of occurrence. Income and expense items in profit statement are translated at the spot rate prevailing on
the date of transactions. Beginning undistributed profit represents the translated ending undistributed profit of previous year; ending
undistributed profit is allocated and stated as several items upon translation. Upon translation, difference between assets, liabilities and
shareholders’ equity items shall be recorded as foreign currency financial statement translation difference and recognized as other
comprehensive income. In case of disposal of overseas operation where control is lost, foreign currency financial statement translation
difference relating to the overseas operation as stated under shareholders’ equity in balance sheet shall be transferred to current gains and
losses of disposal in full or under the proportion it disposes.
Foreign currency cash flow and cash flow of overseas subsidiary are translated at the spot rate prevailing on the date of occurrence of cash
flow. Influence over cash from exchange rate fluctuation is taken as adjustment items to separately stated in cash flow statement.
The beginning figure and previous year actual figures are stated at the translated figures in previous year financial statement.
If the Company loses control over overseas operation due to disposal of all the owners’ equity or part equity investment in the overseas
operation or other reasons, foreign currency financial statement translation difference relating to the overseas operation attributable to
owners’ equity of parent company as stated under shareholders’ equity in balance sheet shall be transferred to current gains and losses of
disposal in full.
If the Company reduces equity proportion while not loses control over overseas operation due to disposal of part equity investment in the
overseas operation or other reasons, foreign currency financial statement translation difference relating to the disposed part will be vested to
minority interests and will not transfer to current gains and losses. When disposing part equity interests of overseas operation which is
associate or joint venture, foreign currency financial statement translation difference relating to the overseas operation shall transfer to
current disposal gains and losses according to the disposed proportion.
9. Financial instruments
Financial asset or financial liability is recognized when the Company becomes a party to financial instrument contract. Financial assets and
liabilities are initially measured at fair value. For financial assets and liabilities at fair value through profit or loss, the relevant transaction
fee shall be included in profit or loss directly. For other types of financial assets and liabilities, the relevant transaction fee is included in
initial measurement amount.
(1) Recognition of fair value for financial assets and financial liabilities
Fair value represents the price that market participator can receive for disposal of an asset or he should pay for transfer of a liability in an
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orderly transaction happened on the measurement date. As for instrument in active market, the fair value is adopted according to the
quotation in the active market. Quote in active market refers to the price easy to obtain regularly from exchange; broker’s agency, industry
association and pricing service authority etc., and such quote represent a price that actually occurred in market trading during the fair
transaction. As for the instruments not in the active market, the fair value is recognized by the estimation technology. The technology is
composed of the price in the latest fair trade, fair value according to the fundamentally same instruments, cash flow discount and stock
price-setting model.
(2) Classification, recognition and measurement of financial assets
By way of buying and selling the financial assets in a regular way, recognition and derecognition are carried out according to the accounts on
the transaction day. Financial assets are divided into financial assets at fair value through profit or loss, held-to-maturity investments, loans
and accounts receivable and available for-sale financial assets when they are initially recognized. Financial assets are initially recognized at
fair value. For financial assets classified as fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss
for the period. For financial assets classified as other categories, relevant transaction costs are included in the amount initially recognized.
① Financial assets carried at fair value through profit or loss for the current period
They include financial assets held for trading and financial assets designated as at fair value through profit or loss for the current period.
Financial assets may be classified as financial assets held for trading if one of the following conditions is met: A. the financial assets is
acquired or incurred principally for the purpose of selling it in the near term; B. the financial assets is part of a portfolio of identified
financial instruments that are managed together and for which there is objective evidence of a recent pattern of short-term profit-taking; or C.
the financial assets is a derivative, excluding the derivatives designated as effective hedging instruments, the derivatives classified as
financial guarantee contract, and the derivatives linked to an equity instrument investment which has no quoted price in an active market nor
a reliably measured fair value and are required to be settled through that equity instrument.
A financial asset may be designated as at fair value through profit or loss upon initial recognition only when one of the following conditions
is satisfied: A. Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result
from measuring assets or recognizing the gains or losses on them on different bases; or B. The financial asset forms part of a group of
financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis,
in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is reported to key
management personnel on that basis.
Financial assets carried at fair value through profit or loss for the current period is subsequently measured at fair value. The gain or loss
arising from changes in fair value and dividends and interest income related to such financial assets are charged to profit or loss for the
current period.
② Held-to-maturity investments
They are non-derivative financial assets with fixed maturity dates and fixed or determinable payments that the Company has positive intent
and ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. Gain or loss on derecognition,
impairment or amortization is recognized through profit or loss for the current period.
The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income or expense
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over each period based on the effective interest of a financial asset or a financial liability (including a group of financial assets or financial
liabilities). The effective interest is the rate that discounts future cash flows from the financial asset or financial liability over its expected life
or (where appropriate) a shorter period to the carrying amount of the financial asset or financial liability.
In calculating the effective interest rate, the Company will estimate the future cash flows (excluding future credit losses) by taking into
account all contract terms relating to the financial assets or financial liabilities whilst considering various fees, transaction costs and
discounts or premiums which are part of the effective interest rate paid or received between the parties to the financial assets or financial
liabilities contracts.
③ Loans and receivables
They are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets,
including bills receivable, accounts receivable, the Group classifies interest receivable, dividends receivable and other receivables as loans
and receivables.
Loans and receivables are measured subsequently at the amortized cost by using the effective interest rate method. Gains or losses incurred
at the time of derecognition, impairment or amortization are charged to profit or loss for the current period.
④ Available-for-sale financial assets
They include non-derivative financial assets that are designated in this category on initial recognition, and the financial assets other than the
financial assets at fair value through profit and loss, loans and receivables and held-to-maturity investments.
The closing cost of available-for-sale debt instruments are determined based on amortized cost method, which means the amount of initial
recognition less the amount of principle already repaid, add or less the accumulated amortized amount arising from the difference between
the amount initially recognized and the amount due on maturity using effective interest rate method, and less the amount of impairment
losses recognized. The closing cost of available-for-sale equity instruments is equal to its initial acquisition cost.
Available-for-sale financial assets are subsequently measured at fair value. The gain or loss on change in fair value are recognized as other
comprehensive income and charged to capital reserves, except for impairment loss and exchange differences arising from foreign monetary
financial assets and amortized cost which are accounted for through profit or loss for the current period. The financial assets will be
transferred out of the financial assets on derecognition and accounted for through profit or loss for the current period. However, equity
instrument investment which is not quoted in active market and whose fair value cannot be measured reliably, and derivative financial asset
which is linked to the equity instrument and whose settlement is conditional upon delivery of the equity instrument, shall be subsequently
measured at cost.
Interests received from available-for-sale financial assets held and the cash dividends declared by the investee are recognized as investment
income.
(3) Impairment of financial assets
Except for financial assets accounted at fair value and variation accounted into current gain/loss account, the Group undertakes inspection on
the book value of other financial assets at each balance sheet day, whenever practical evidence showing that impairment occurred with them,
impairment provisions are provided.
The Group performs impairment test separately on individual financial assets with major amounts; for financial assets without major
amounts, the Group performs impairment test separately or inclusively in a group of financial assets with similar characteristics of risks.
Those financial assets (individual financial assets with or without major amounts) tested separately with no impairment found shall be tested
again along with the group of financial assets with similar risk characteristics. Financial assets confirmed for impairment individually shall
not be tested along with the group of financial assets with similar risk characteristics.
① Impairment of held-to-maturity investments and loans and receivables
The carrying amount of financial assets measured as costs or amortized costs are subsequently reduced to the present value discounted from
its projected future cash flow. The reduced amount is recognized as impairment loss and recorded as profit or loss for the period. After
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recognition of the impairment loss from financial assets, if there is objective evidence showing recovery in value of such financial assets
impaired and which is related to any event occurring after such recognition, the impairment loss originally recognized shall be reversed to
the extent that the carrying value of the financial assets upon reversal will not exceed the amortized cost as at the reversal date assuming
there is no provision for impairment.
② Impairment of available-for-sale financial assets
In the event that decline in fair value of the available-for-sale equity instrument is regarded as “severe decline” or “non-temporary decline”
on the basis of comprehensive related factors, it indicates that there is impairment loss of the available-for-sale equity instrument.
When the available-for-sale financial assets impair, the accumulated loss originally included in the capital reserve arising from the decrease
in fair value was transferred out from the capital reserve and included in the profit or loss for the period. The accumulated loss that
transferred out from the capital reserve is the balance of the acquired initial cost of asset, after deduction of the principal recovered,
amortized amounts, current fair value and the impairment loss originally included in the profit or loss.
After recognition of the impairment loss, if there is objective evidence showing recovery in value of such financial assets impaired and
which is related to any event occurring after such recognition in subsequent periods, the impairment loss originally recognized shall be
reversed. The impairment loss reversal of the available-for-sale equity instrument will be recognized as other consolidated income, and the
impairment loss reversal of the available-for-sale debt instrument will be included in the profit or loss for the period.
When an equity investment that is not quoted in an active market and the fair value of which cannot be measured reliably, or the impairment
loss of a derivative financial asset linked to the equity instrument that shall be settled by delivery of that equity instrument, then it will not be
reversed.
(4) Recognition basis and measurement method for transfer of financial assets
As for the financial assets up to the following conditions, the recognition termination is available: ①Termination of the contract right to take
the cash flow of the financial assets; ② transferred to the transferring-in part nearly all risk and compensation; ③ all risk and compensation
neither transferred nor retained, and with the give-up of the control over the financial assets.
As for financial assets of almost all risk and compensation neither transferred nor retained, and without the give-up of the control over the
financial assets, it was recognized according to the extension of the continual entry into the transferred financial assets and relevant liabilities
are correspondingly recognized. The continual entry into the transferred financial assets is risk level which the enterprise faces up to due to
the assets changes.
As for the whole transfer of the financial assets up to the recognition termination conditions, the book value of the transferred assets,
together with the difference between the consideration value and the accumulative total of the fair value change of the other consolidated
income, is reckoned into the current gain/loss.
As for the partial transfer of the financial assets up to the recognition termination conditions, the book value of the transferred assets is
diluted on the relative fair value between the terminated part and the un-terminated part; and reckoned into the current loss/gain is the
difference between the sum of the consideration value and the accumulative sum of the valuation change ought to be diluted into the
recognition termination part but into the other consolidated income, and the above diluted book value, is reckoned into the current loss/gain.
For financial assets that are transferred with recourse or endorsement, the Group needs to determine whether the risk and rewards of
ownership of the financial asset have been substantially transferred. If the risk and rewards of ownership of the financial asset have been
substantially transferred, the financial assets shall be derecognized. If the risk and rewards of ownership of the financial asset have been
retained, the financial assets shall not be derecognized. If the Group neither transfers nor retains substantially all the risks and rewards of
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ownership of the financial asset, the Group shall assess whether the control over the financial asset is retained, and the financial assets shall
be accounted for according to the above paragraphs.
(5) Categorizing and measuring of financial liabilities
At initial recognition, financial liabilities are classified into financial liabilities measured by fair value with changes counted into current
gains/losses and other financial liabilities. Financial liabilities are initially recognized at fair value. For financial liabilities classified as fair
value through profit or loss, relevant transaction costs are directly recognized in profit or loss for the period. For financial liabilities
classified as other categories, relevant transaction costs are included in the amount initially recognized.
① Financial liabilities at fair value through profit or loss for the period
The criteria for a financial liability to be classified as held for trading and designated as financial liabilities at fair value through profit or loss
are the same as those for a financial asset to be classified as held for trading and designated as financial assets at fair value through profit or
loss.
Financial liabilities at fair value through profit or loss for the period are subsequently measured at fair value. The gain or loss arising from
changes in fair value and dividends and interest income related to such financial liabilities are included in profit or loss for the period.
② Other financial liabilities
Derivative financial liabilities which are linked to equity instruments that are not quoted in an active market and the fair value of which
cannot be measured reliably measured, and which shall be settled by delivery of equity instruments are subsequently measured at cost. Other
financial liabilities are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from
derecognition or amortization is recognized in profit or loss for the period.
③ Financial Guarantee Contracts and loan commitment
Financial guarantee contracts other than those designated as financial liabilities at fair value through profit or loss or loan commitment other
than those designated measured by fair value and with its variation for gains/losses reckoned as well as the loans lower than the market rates
are initially recognized at fair value, and shall be subsequently measured at the higher of the following: the amount determined in accordance
with Accounting Standard for Business Enterprises No. 13 “Contingencies” and the amount initially recognized less cumulative amortization
recognized in accordance with the principles set out in “Accounting Standard for Business Enterprises No. 14- Revenue”.
(6)Termination recognition of financial liabilities
Only is released the whole or part of the current duties, the termination of the liabilities or part of it is available. The Group (the creditor)
signed the agreement with the debtor: the existing liabilities are replaced by the bearing of the new liabilities; and the contract terms are
fundamentally different of the new liabilities and the existing ones; the termination of the recognition of the existing ones is available; and
the recognition of new ones is available.
As for the whole or partial termination of the recognition of the liabilities, the difference between the book value of the part of recognition
termination and the consideration value paid (including the non-cash assets transferred out or the liabilities newly beard) is reckoned into the
current loss/gain.
(7) Derivatives and embedded derivatives
Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently
measured at fair value. Any gains or losses arising from changes in fair value of derivatives are taken directly to profit or loss for the period,
except for derivative instruments that are designated as hedging instruments and which are highly effective in hedging, gains or losses
arising from changes in their fair value are taken to the profit or loss for the period in accordance with the hedge accounting requirement
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based on the nature of hedging relationships.
For combined instruments contain embedded derivatives which are not designated as financial assets or financial liabilities at fair value
through profit or loss, and the embedded derivative and the main contract does not have a material relation in terms of risk and economic
attributes, and when an individual instrument which is the same as the embedded derivative can be defined as derivative, the embedded
derivative shall be separated from the combined instrument and treated as an individual derivative. If the embedded derivative cannot be
separately measured at acquisition or subsequent balance sheet date, the combined instrument shall be designated as financial assets or
financial liabilities at fair value through profit or loss.
(8) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets, the balance-out sum
between the financial assets and liabilities is listed in the balance sheet. In addition, the financial assets and liabilities are listed in the balance
sheet without being balanced out.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the deduction of all liabilities in the Group.
The Company issues (including refinancing), repurchases, sells or cancels equity instruments as movement of equity. No fair value change of
equity instrument would be recognized by the Company. Transaction fees relating to equity transactions are deducted from equity.
The Group’s all distribution (shares dividend excluded) to the holders of the stock instrument will decrease the shareholders’ equity. The
Group does not recognize the fair value change sum of the stock instrument.
10. Account receivable
Account receivable included account receivable and other account receivable.
(1) Recognition of bad debt provision
The Group reviews carrying value of account receivables on balance sheet date, and make impairment provision for account receivables
which are proven to be impaired by the following objective evidences: ①debtor experiences material financial difficulties; ②debtor is in
breach of contract terms (for instance: default or expiration of payment for principal or interest); ③ debtor is likely to face bankruptcy or
other financing restructuring; ④other objective evidence showing account receivables are impaired.
(2) Provision for bad debt reserves
①Recognition criteria and accrual method on accounts with major amount and withdrawal bad debt provision independely
The single account receivable above RMB 2 million is recognized as single substantive account receivable
The Company takes the independent impairment test on the single substantive account. As for the account receivable without the impairment
in the test, it is included in the account receivable portfolio of the similar credit risk characters for the impairment test. As for the account
receivable with the recognition of impairment loss, it is not included in the account receivable portfolio of the similar credit risk characters
for the impairment test
②Determination bases for account receivables for which bad debt provision is made according to category of credit risks, and provision for
bad debt
The Group determines categories of account receivables according to the similarity of credit risk characteristics. Account receivables consist
of those with insignificant single amount and those with significant single amount which is not impaired based on separate impairment test.
The Group is of the view that account receivables with insignificant single amount and those with significant single amount which is not
impaired based on separate impairment test are exposed to low credit risks, thus it is not necessary to make bad debt provision, unless there
is evidence showing that account receivables have relatively substantial credit risks.
③Account receivables with insignificant single amount for which bad debt provision is made separately
For account receivables with insignificant single amount, if there is evidence showing that account receivables are exposed to relatively
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substantial credit risks, bad debt provision shall be made for such account receivables under specific identification method.
(3) Reversal of bad debt
If there is objective evidence showing recovery in value of account receivables impaired and which is related to any event occurring after
such recognition, the impairment loss originally recognized shall be reversed to the extent that the carrying value of the account receivables
upon reversal will not exceed the amortized cost as at the reversal date assuming there is no provision for impairment.
11. Inventory
(1) Categories of inventory
The Company’s inventory mainly consists of fuels, raw materials and developing products in process and so on.
(2) Valuation method of inventory delivered
The inventories are initially measured at cost. The costs of developing products include land grant fee, expenditures
for auxiliary facilities, expenses on construction and installation, borrowing costs incurred before the completion of
the subject project and other related expenses during the course of the development. Other cost of inventories
comprises purchase costs, processing costs and other costs incurred in bringing the inventories to their present
location and condition.
The actual cost of the property development products delivered is recognized by the individual valuation method. The actual cost of other
inventories delivered is recognized by the weighted average method.
(3) Recognition of net realizable value of inventory, and accrual methods of preparation for depreciation
On the balance sheet day, the inventory is measured by the lower one between the cost and the net realizable value.
As the net realizable value is lower than the cost, the inventory depreciation provision is accrued. The net realizable
value is balance of the estimated sale price less the estimated forthcoming cost upon the completion, the estimated
sale expense, and the relevant tax in the daily activities. Upon the recognition of net realizable value of the
inventory, the concrete evidence is based on and the purpose of holding the inventory and the influence of events
after the balance sheet day are considered.
As for the inventory of large sum and lower price, the inventory depreciation provision is accrued by the inventory categories. As for the
inventory related to the product series produced and sold in the same district, of the same or similar final use or purpose and impossible to be
separated from the other items, the provision is consolidated and accrued. The provision for other inventory is accrued by the difference
between the cost and net realizable value.
Upon the accrual of the inventory depreciation provision, if the previous influence factors on the inventory deduction disappeared, which
resulted in the net realizable value being higher than its book value; the accrual is transferred back within the previous accrual of the
provision and reckoned into the current gain/loss.
(4) The inventory system is perpetual inventory system.
12. Classified as assets held for sale
If a non-current asset can be promptly sold at its existing status only according to the practice terms in connection with disposal of this kind
of assets, and the Company has already made resolution on disposal of the non-current asset and entered into irrevocable transfer agreement
with the transferee, and this transfer will be completed within one year, then the non-current asset would be calculated as non-current asset
held for sale which would be not applicable to depreciation or amortisation since the date of classification as asset held for sale, and would
be measured at the lower of its carrying value less disposal cost and fair value less disposal cost. Non-current asset held for sale consists of
single item asset and disposal group. If a disposal group is a group of assets as defined by No.8 of Business Accounting Standards-Assets
Impairment, and goodwill arising from business combination shall be allocated to the group of assets under this accounting principle, or the
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disposal group constitutes one operation of the group of assets, then the disposal group includes the goodwill arising from business
combination.
For single non-current asset and asset in disposal group classified as assets held for sale, they shall be presented in balance sheet separately
as current assets. For liabilities in disposal group relating to the transferred assets classified as assets held for sale, they shall be presented in
balance sheet separately as current liabilities.
If an asset or disposal group classified as held for sale no longer meets the recognition condition as non-current asset held for sale, the
Company will cease such recognition and measure the asset at the lower of (1)the carrying value of the asset or disposal group prior to being
classified as held for sale, based on the amount adjusted with the depreciation, amortisation or impairment which should have been
recognized assuming it had not been classified as held for sale; (2)the recoverable amount on the date when the Company decides to cease
disposal.
13. Long-term equity investment
Long-term equity investments under this section refer to long-term equity investments in which the Company has control, joint control or
significant influence over the investee. Long-term equity investment without control or joint control or significant influence of the Group is
accounted for as available-for-sale financial assets or financial assets measured at fair value with any change in fair value charged to profit or
loss. Details on its accounting policy please refer to Note 9. “Financial instruments” under section IV.
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant activities of such arrangement
must be decided by unanimously agreement from parties who share control. Significant influence is the power of the Company to participate
in the financial and operating policy decisions of an investee, but to fail to control or joint control the formulation of such policies together
with other parties.
(1) Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under
the consolidated financial statements of the ultimate controlling party on the date of combination. The difference between the initial cost of
the long-term equity investment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by the absorbing
party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. If the
consideration of the merger is satisfied by issue of equity securities, the initial investment cost of the long-term equity investment shall be
the absorbing party’s share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. With the total face value of the shares issued as share capital, the difference between the initial
cost of the long-term equity investment and total face value of the shares issued shall be used to offset against the capital reserve. If the
capital reserve is insufficient to offset, the retained earnings shall be adjusted. For business combination resulted in an enterprise under
common control by acquiring equity of the absorbing party under common control through a stage-up approach with several transactions,
these transactions will be judged whether they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these
transactions will be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initial investment
cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under the
consolidated financial statements of the ultimate controlling party on the date of combination. The difference between the initial cost of the
long-term equity investment and the aggregate of the carrying amount of the long-term equity investment before merging and the carrying
amount the additional consideration paid for further share acquisition on the date of combination shall offset against the capital reserve. If
the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other comprehensive income recognized as a result of the
previously held equity investment accounted for using equity method on the date of combination or recognized for available-for-sale
financial assets will not be accounted for.
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For a long-term equity investment acquired through a business combination involving enterprises not under common control, the initial
investment cost of the long-term equity investment shall be the cost of combination on the date of acquisition. Cost of combination includes
the aggregate fair value of assets paid by the acquirer, liabilities incurred or borne and equity securities issued. For business combination
resulted in an enterprise not under common control by acquiring equity of the acquiree under common control through a stage-up approach
with several transactions, these transactions will be judged whether they shall be treat as “transactions in a basket”. If they belong to
“transactions in a basket”, these transactions will be accounted for a transaction in obtaining control. If they are not belong to “transactions
in a basket”, the initial investment cost of the long-term equity investment accounted for using cost method shall be the aggregate of the
carrying amount of equity investment previously held by the acquiree and the additional investment cost. For previously held equity
accounted for using equity method, relevant other comprehensive income will not be accounted for. For previously held equity investment
classified as available-for-sale financial asset, the difference between its fair value and carrying amount, as well as the accumulated
movement in fair value previously included in the other comprehensive income shall be transferred to profit or loss for the current period.
Agent fees incurred by the absorbing party or acquirer for the acquisition such as audit, legal service, and valuation and consultation fees,
and other related administration expenses are charged to profit or loss in the current period at the time such expenses incurred.
The long-term equity investment acquired through means other than a business combination shall be initially measured at its cost. Such cost
is depended upon the acquired means of long-term equity investments, which is recognized based on the purchase cost actually paid by the
Company in cash, the fair value of equity securities issued by the Group, the agreed value of investment contract or agreement, the fair value
or original carrying amounts of the non-monetary asset exchange transaction which the asset will be transferred out of the Company, and the
fair value of long-term equity investment itself. The costs, taxes and other necessary expenses that are directly attributable to the acquisition
of the long-term equity investments are also included in the investment cost. For additional equity investment made in order to obtain
significant influence or common control over investee without resulted in control, the relevant cost for long-term equity investment shall be
the aggregate of fair value of previously held equity investment and additional investment cost determined according to “Accounting
Standard for Business Enterprises No. 22 – Recognition and measurement of Financial Instruments”.
(2) Follow-up measurement and gain/loss recognition
As for the long-term equity investment with common control (except for the common operators ) over or significant influence on the
invested units, measured by the cost method. In addition, long-term equity investment to the invested units that control by the Company
adopted the cost method for calculation in financial statement.
① Long-term equity investment checked by the cost
Upon the cost check, the investment is valuated on the initial cost. In addition to the actual prices or the announced but yet undistributed cash
dividend or profit in consideration valuation, the current investment return is recognized by the announced cash dividend or profit by the
invested units.
② Long-term equity investment checked by the equity
When equity basis is adopted, if the initial cost of the long-term equity investment is greater than the share of fair value of the receiver’s
recognizable net asset, the initial investment cost of the long-term equity investment will not be adjusted; if the initial cost of the long-term
equity investment is less than the share of fair value of the receiver’s recognizable net asset, the balance shall be counted into current income
account, and the cost of long-term equity investment shall be adjusted.
Under the equity method, investment gain and other comprehensive income shall be recognized based on the Group’s share of the net profits
or losses and other comprehensive income made by the investee, respectively. Meanwhile, the carrying amount of long-term equity
investment shall be adjusted. The carrying amount of long-term equity investment shall be reduced based on the Group’s share of profit or
cash dividend distributed by the investee. In respect of the other movement of net profit or loss, other comprehensive income and profit
distribution of investee, the carrying value of long-term equity investment shall be adjusted and included in the capital reserves. The Group
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shall recognize its share of the investee’s net profits or losses based on the fair values of the investee’s individual separately identifiable
assets at the time of acquisition, after making appropriate adjustments thereto. In the event of inconformity between the accounting policies
and accounting periods of the investee and the Company, the financial statements of the investee shall be adjusted in conformity with the
accounting policies and accounting periods of the Company. Investment gain and other comprehensive income shall be recognized
accordingly. In respect of the transactions between the Group and its associates and joint ventures in which the assets disposed of or sold are
not classified as operation, the share of unrealized gain or loss arising from inter-group transactions shall be eliminated by the portion
attributable to the Company. Investment gain shall be recognized accordingly. However, any unrealized loss arising from inter-group
transactions between the Group and an investee is not eliminated to the extent that the loss is impairment loss of the transferred assets. In the
event that the Group disposed of an asset classified as operation to its joint ventures or associates, which resulted in acquisition of long-term
equity investment by the investor without obtaining control, the initial investment cost of additional long-term equity investment shall be the
fair value of disposed operation. The difference between initial investment cost and the carrying value of disposed operation will be fully
included in profit or loss for the current period. In the event that the Group sold an asset classified as operation to its associates or joint
ventures, the difference between the carrying value of consideration received and operation shall be fully included in profit or loss for the
current period. In the event that the Company acquired an asset which formed an operation from its associates or joint ventures, relevant
transaction shall be accounted for in accordance with “Accounting Standards for Business Enterprises No. 20 “Business combination”. All
profit or loss related to the transaction shall be accounted for.
Recognition of the share of net loss by the investment receiver shall be limited to when the book value of long-term equity investment and
other long-term equity forms substantial net investment has been reduced to zero. Beside, if the Company is responsible for other losses of
the investment receiver, predicted liability shall be recognized upon the prediction of responsibilities and recorded into current investment
loss account. If the receiver realized net profit in the period thereafter, the share of gains is recovered after making up of share of losses
which has not been recognized.
For long equity investment in associate and joint venture held by the Company prior to first implementation of the new accounting principles
on 1 January 2007, equity investment debtor difference relating to the investment (if any) shall be amortized and included in current gains
and losses against the remaining period under straight line method.
③Acquisition of minority equity
When preparing consolidated financial statements, the difference between the increase in long-term equity investment due to acquisition of
minority interest of a subsidiary and the share of net asset of the subsidiary since the acquisition date (or combination date) calculated under
the new ownership ratio shall be adjusted to the capital surplus, when capital surplus is insufficient, the excess shall be adjusted to retained
profits.
④ Disposal of long-term equity investment
In these consolidated financial statements, where the parent company disposes part of its subsidiary without loss of control, the difference
between the consideration received and the share of net asset for the disposed portion of long-term equity investment shall be recognized in
shareholders’ equity; where the parent company disposes part of its subsidiary with loss of control, the accounting treatment should be in
accordance with the accounting policies stated at Note IV 5 (2) “Preparation of consolidated financial statements”.
For disposal of long-term equity investment in other situations, the difference between the considerations received and the carrying amount
of the disposed investment shall be recognized in profit or loss.
In respect of long-term equity investment at equity with the remaining equity interest after disposal also accounted for using equity method,
other comprehensive income previously under owners’ equity shall be accounted for in accordance with the same accounting treatment for
direct disposal of relevant asset or liability by investee on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution of investee) shall be
transferred to profit or loss for the current period on pro rata basis.
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In respect of long-term equity investment at cost with the remaining equity interest after disposal is also accounted for at cost, other
comprehensive income recognized due to measurement at equity or recognition and measurement for financial instruments prior to obtaining
control over investee shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability
by investee and carried forward to current gains and losses on pro rata basis. The movement of other owners’ equity (excluding net profit or
loss, other comprehensive income and profit distribution of investee) shall be transferred to profit or loss for the current period on pro rata
basis.
In the event of loss of control over investee due to partial disposal of equity investment by the Group, in preparing separate financial
statements, the remaining equity interest which can apply common control or impose significant influence over the investee after disposal
shall be accounted for using equity method. Such remaining equity interest shall be treated as accounting for using equity method since it is
obtained and adjustment was made accordingly. For remaining equity interest which cannot apply common control or impose significant
influence over the investee after disposal, it shall be accounted for using the recognition and measurement standard of financial instruments.
The difference between its fair value and carrying amount as at the date of losing control shall be included in profit or loss for the current
period. In respect of other comprehensive income recognized using equity method or the recognition andmeasurement standard of financial
instruments before the Group obtained control over the investee, it shall be accounted for in accordance with the same accounting treatment
for direct disposal of relevant asset or liability by investee at the time when the control over investee is lost. Movement of other owners’
equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of investee accounted for and
recognized using equity method) shall be transferred to profit or loss for the current period at the time when the control over investee is lost.
Of which, for the remaining equity interest after disposal accounted for using equity method, other comprehensive income and other owners’
equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for using the recognition and
measurement standard of financial instruments, other comprehensive income and other owners’ equity shall be fully transferred.
In the event of loss of common control or significant influence over investee due to partial disposal of equity investment by the Group, the
remaining equity interest after disposal shall be accounted for using the recognition and measurement standard of financial instruments. The
difference between its fair value and carrying amount as at the date of losing common control or significant influence shall be included in
profit or loss for the current period. In respect of other comprehensive income recognized under previous equity investment using equity
method, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability by
investee at the time when equity method was ceased to be used. Movement of other owners’ equity (excluding net profit or loss, other
comprehensive income and profit distribution under net asset of investee accounted for and recognized using equity method) shall be
transferred to profit or loss for the current period at the time when equity method was ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the control over the subsidiary
is lost. If the said transactions belong to “transactions in a basket”, each transaction shall be accounted for as a single transaction of
disposing equity investment of subsidiary and loss of control. The difference between the disposal consideration for each transaction and the
carrying amount of the corresponding long-term equity investment of disposed equity interest before loss of control shall initially recognized
as other comprehensive income, and subsequently transferred to profit or loss arising from loss of control for the current period upon loss of
control.
14. Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both, including the rented land use
rights and the land use rights which are held and prepared for transfer after appreciation, the rented buildings. Besides, vacant buildings held
by the Company for operating or lease purposes would be also stated as investment property provided that board of directors (or similar
authority) pass written resolution which definitely expresses that the buildings will be held for operating or lease purposes and the intention
for holding will not change shortly.
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Investment real estate is measured according to the initial cost. The follow-up expenses that are related to investment real estate, if the
economic interests related to the assets are is likely to inflow cost and its costs can be reliably measured, shall be included in the cost of
investment real estate. The other follow-up expense shall be included in the current gains/losses.
The Company adopts the cost model to have follow-up measurements of the investment real estate, and to conduct depreciation or
amortization according to the policies that are in consistent with the land use rights.
Impairment test method and impairment provision method in relation to investment property is detailed in note IV.20 “Long term assets
impairment”.
Where property for own use or inventory transfers to investment property, or investment property transfers to property for own use, carrying
value before such transfer shall be taken as book value after such transfer.
In the event that an investment property is converted to an owner-occupied property, such property shall become fixed assets or intangible
assets since the date of its conversion. In the event that an owner-occupied property is converted to real estate held to earn rentals or for
capital appreciation, such fixed assets or intangible assets shall become an investment property since the date of its conversion. Upon the
conversion, investment property which is measured at cost is accounted for with the carrying value prior to conversion, and investment
property which is measured at fair value is accounted for with the fair value as of the conversion date.
If an investment property is disposed of or if it withdraws permanently from use and no economic benefit will be obtained from the disposal,
the recognition of it as an investment property shall be terminated. When an investment property is sold, transferred, retired or damaged, the
amount of proceeds on disposal of the property net of the carrying amount and related tax and surcharges is recognized in profit or loss for
the current period.
15. Fixed assets
(1) Recognition conditions for the fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for operation &
management, and have more than one fiscal year of service life. The fixed assets recognized on the condition of economy benefit probably
in-flow into the Company and the cost should measured reliably only. Initial measurement shall be conducted on fixed assets according to
the actual cost when obtain them and also considering the expected costs for disposal.
(2) Depreciation of various fixed assets
From the next month since reaching the intended use state, depreciations on fixed assets shall be accounted by using the method of average
life length except the steam turbine generating unit that accounted by withdrawal the working volume method.
Life expectancy, expected net impairment value and annual depreciation rate of all assets are as follows:
Item Life expectancy Salvage value rate Annual depreciation rate
Houses and buildings 20 years 10% 4.50%
Equipment(fuel machinery group excluded) 15-20 years 10% 4.5%-6%
Equipment-fuel machinery group(note) 10% The work quantity method
Transportation tools 5 years 10% 18%
Other equipment 5 years 10% 18%
Estimated salvage value refers to the amount of value retrieved after deducting of predicted disposal expense when the expected using life of
a fixed asset has expired and in the expected state of termination.
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Note: gas turbine generator set is provided with depreciation under workload method, namely to determine the depreciation amount per hour
of gas turbine generator set based on equipment value, predicted net remaining value and predicted generation hours. Details are set out as
follows:
Name of the Company Fixed assets Depreciation amount (RMB/Hour)
Generating unit 1# 4,225.09
The Company Generating unit 3# 4,401.76
Generating unit 7# 4,407.11
Shenzhen New Power Industrial Co., Ltd(“New Power”) Generating unit 10# 3,954.47
Generating unit 1# 3,856.98
Shen Nan Dian (Zhongshan) Power Co., Ltd.(“Zhongshan
Power”)
Generating unit 3# 3,799.49
Generating unit 1# 4,107.76
Shen Nan Dian (Dongguan) Weimei Power Co., Ltd.(“Weimei
Power”)
Generating unit 3# 3,850.07
(3) Impairment test on fixed asset and providing of impairment provision
Found more in Note IV-20.”Impairment of long-term assets”
(4) Recognition basis and measurement method of fixed assets under finance lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the
lessee. Title may or may not eventually be transferred. The depreciation policy for fixed asset held under finance lease is consistent with that
for its owned fixed asset. When a leased asset can be reasonably determined that its ownership will be transferred at the end of the lease term,
it is depreciated over the period of expected use; otherwise, the leased asset is depreciated over the shorter period of the lease term and the
period of expected use.
(5) Other remarks
Concerning the follow-up expenses related to fixed assets, if the relevant economy benefit of fixed assets probably
in-flow into the Company and can be measured reliably, reckoned into cost of fixed assets and terminated the
recognition of the book value of the parts that been replaced. Others follow-up expenses should reckoned into current
gains/losses while occurred.
Terminated the recognition of fixed assts that in the status of disposal or pass through the predicted usage or without any economy benefits
arising from disposal. Income from treatment of fixed asset disposing, transferring, discarding or damage, the balance after deducting of
book value and relative taxes is recorded into current income account.
The Company re-reviews useful life, expected net residual value and depreciation method of fixed assets at least at each year end. Any
change thereof would be recorded as change of accounting estimates.
16. Construction-in-progress
Cost of construction in process is determined at practical construction expenditures, including all expenses during the construction,
capitalized loan expenses before the construction reaches useful status, and other relative expenses. It is transferred to fixed asset as soon as
the construction reaches the useful status.
Impairment testing method and accrual method for impairment reserves found in Note IV-20”Impairment of long-term assets”
17. Borrowing expenses
Borrowing expenses include interest, amortisation of discounts or premiums related to borrowings, ancillary costs incurred in connection
with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings. Borrowing expenses that can be
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directly attributed for purchasing or construction of assets that are complying with capitalizing conditions start to be capitalized when the
payment of asset and borrowing expenses have already occurred, and the purchasing or production activities in purpose of make the asset
usable have started; Capitalizing will be terminated as soon as the asset that complying with capitalizing conditions has reached its usable or
saleable status. The other borrowing expenses are recognized as expenses when occurred.
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of the bank saving interest of
unused borrowed fund or provisional investment gains; Capitalization amounts of common borrowings are decided by the weighted average
of exceeding part of accumulated asset expenses over the special borrowing assets multiply the capitalizing rate of common borrowings
adopted. Capitalization rates are decided by the weighted average of common borrowings.
During the capitalization period, exchange differences on a specific purpose borrowing denominated in foreign currency shall be capitalized.
Exchange differences related to general-purpose borrowings denominated in foreign currency shall be included in profit or loss for the
current period.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial period of time for
acquisition, construction or production to get ready for their intended use or sale.
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or production of a qualifying asset
is interrupted abnormally, when the interruption is for a continuous period of more than 3 months, until the acquisition, construction or
production of the qualifying asset is resumed.
18. Intangible assets
(1) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the Company.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall be recognized as cost of the
intangible asset only if it is probable that economic benefits associated with the asset will flow to the Company and the cost of the asset can
be measured reliably. Other expenditures on an item asset shall be charged to profit or loss when incurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants), related land use right
and the buildings shall be separately accounted for as an intangible asset and fixed asset. For buildings and structures purchased, the
purchase consideration shall be allocated among the land use right and the buildings on a reasonable basis. In case there is difficulty in
making a reasonable allocation, the consideration shall be recognized in full as fixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any accumulated impairment loss
provision and amortized using the straight-line method over its useful life when the asset is available for use. Intangible assets with indefinite
life are not amortized.
The Group shall review the useful life of intangible asset with a finite useful life and the amortization method applied at least at each
financial year-end. A change in the useful life or amortization method used shall be accounted for as a change in accounting estimate. For an
intangible asset with an indefinite useful life, the Group shall review the useful life of the asset in each accounting period. If there is
evidence indicating that the useful life of that intangible asset is finite, the Company shall estimate the useful life of that asset and apply
the accounting policies accordingly.
(2) Impairment test method of intangible assets & calculation method of depreciation reserve
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Found more in Note IV-20”Impairment of long-term assets”
19. Long-term expenses to be amortized
Long-term amortizable expenses are those already occurred and amortizable to the current term and successive terms for over one year.
Long-term amortizable expenses are amortized by straight-line method to the benefit period.
20. Impairment of long-term assets
The Group will judge if there is any indication of impairment as at the balance sheet date in respect of non-current non-financial assets such
as fixed assets, construction in progress, intangible assets with an infinite useful life, investment properties measured at cost, and long-term
equity investments in subsidiaries, joint ventures and associates. If there is any evidence indicating that an asset may be impaired,
recoverable amount shall be estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets
beyond working conditions will be tested for impairment annually, regardless of whether there is any indication of impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the impairment provision will be
made according to the difference and recognized as an impairment loss. The recoverable amount of an asset is the higher of its fair value less
costs of disposal and the present value of the future cash flows expected to be derived from the asset. An asset’s fair value is the price in a
sale agreement in an arm’s length transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall be
determined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall be based on the best
available information. Costs of disposal are expenses attributable to disposal of the asset, including legal fee, relevant tax and surcharges,
transportation fee and direct expenses incurred to prepare the asset for its intended sale. The present value of the future cash flows expected
to be derived from the asset over the course of continued use and final disposal is determined as the amount discounted using an
appropriately selected discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it is not
possible to estimate the recoverable amount of the individual asset, the Group shall determine the recoverable amount of the asset group to
which the asset belongs. The asset group is the smallest group of assets capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial statements shall be allocated to
the asset groups or group of assets benefiting from synergy of business combination. If the recoverable amount is less than the carrying
amount, the Group shall recognize an impairment loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill
allocated to the asset group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the asset
group or set of asset groups, pro rata on the basis of the carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of the restorable value.
21. Staff remuneration
Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit and other long term staff
benefits, among which:
Short term staff remuneration mainly consists of salary, bonus, allowance and subsidy, staff benefits, medical insurance,
maternity insurance, work related injury insurance, housing funds, labor unit fee and education fee, non-monetary
benefits, etc. short term staff remuneration actually happened during the accounting period in which staff provides
services to the Company is recognized as liability, and shall be included in current gains and losses or relevant asset cost.
Non-monetary benefits are measured at fair value.
Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdraw plan mainly
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includes basic pension insurance, unemployment insurance and annuity, and the contribution payable is included in
relevant asset cost or current gains and losses when occurs.
When the Company terminates the employment relationship with employees before the end of the employment contracts or provides
compensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognize employee compensation
liabilities arising from compensation for staff dismissal and included in profit or loss for the current period, when the Company cannot
revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the
Company recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is earlier. However, if
the compensation for termination of employment is not expected to be fully paid within 12 months from the reporting period, it shall be
accounted for other long-term staff remuneration.
The early retirement plan shall be accounted for in accordance with the accounting principles for compensation for termination of
employment. The salaries or wages and the social contributions to be paid for the employees who retire before schedule from the date on
which the employees stop rendering services to the scheduled retirement date, shall be recognized (as compensation for termination of
employment) in the current profit or loss by the Group if the recognition principles for provisions are satisfied.
For other long-term employee benefits provided by the Company to its employees, if satisfy with the established withdraw plan, then the
benefits are accounted for under the established withdraw plan, otherwise accounted for under defined benefit scheme.
22. Accrued liabilities
When responsibilities connected to contingent issues meet the follow conditions at the same time, than recognized as accrued liability: (1)
the liability is the current liability that undertaken by the Company; (2) the liability has the probability of result in financial benefit outflow;
and (3) the responsibility can be measured reliably for its value.
At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that connected to the contingent issues, the
predicted liabilities are measured according to the best estimation on the payment to fulfill the current responsibility.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the compensated amount can be
definitely received, it is recognized separated as asset. The compensated amount shall not be greater than the book value of the predictive
liability.
(1)Contact in loss
Contact in loss is identified when the inevitable cost for performance of the contractual obligation exceeds the inflow of expected economic
benefits. When a contract in loss is identified and the obligations thereunder are qualified by the aforesaid recognition criterion for
contingent liability, the difference of estimated loss under contract over the recognized impairment loss (if any) of the subject matter of the
contract is recognized as contingent liability.
(2) Restructuring obligations
For detailed, official and publicly announced restructuring plan, the direct expenses attributable to the restructuring are recognized as
contingent liabilities, provided that the aforesaid recognition criterion for contingent liability is met. For restructuring obligations arising
from disposal of part business, the Company will recognise the obligations relating to restructuring only when it undertakes to dispose part
business (namely entering into finalized disposal agreement).
23. Share-based Payments
(1) Accounting treatment
Share-based payment refers to a transaction in which an enterprise grants equity instruments or undertakes equity-instrument- based
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liabilities in return for services from employee or other parties. The share-based payments shall consist of equity-settled share-based
payments and cash-settled share-based payments.
① Equity-settled Share-based Payment
The equity-settled share-based payment in return for employee services shall be measured at the fair value of the equity instruments granted
to the employees as at the date of grant. For equity instruments that cannot be exercised until the services are fully rendered during vesting
period or specified performance targets are met, within the vesting period, the fair value of such instrument shall, based on the best estimate
of the number of exercisable instruments, be calculated with the straight- line method and recognized in relevant costs or expenses. For
equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall, on the date of the grant, be
recognized in relevant costs or expenses with the increase in the capital reserve accordingly.
On each balance sheet date during the vest period, the Company makes the best estimate based on subsequent information such as the latest
available information about change of number of exercisable employees, thus to amend the number of equity instruments which are expected
to be exercisable. Impact of the above estimate is included in relevant cost or expense for the current period, with corresponding adjustment
in capital reserve.
The equity-settled share-based payment in return for services from other parties, if the fair value of services from other parties can be
reliably measured, shall be measured at the fair value of such services as at the date of acquisition; if the fair value of services from other
parties cannot be reliably measured but the fair value of equity instruments can be reliably measured, shall be measured at the fair value of
such equity instruments as at the date of acquisition of such services recognized in relevant costs or expenses with the increase in the capital
reserve accordingly.
②Cash-settled Share-based Payment
The cash-settled share-based payment shall be measured at the fair value of liabilities identified on the basis of shares or other equity
instruments undertaken by the Group. For the instruments that may be exercised immediately after the grant, the fair value shall, on the date
of the grant, be recognized in relevant costs or expenses and the liabilities shall be increased accordingly. For instruments that cannot be
exercised until the services are fully provided during vesting period or specified performance targets are met, on each balance sheet date
within the vesting period, the services acquired in the current period shall, based on the best estimate of the number of exercisable
instruments, be recognized in relevant costs or expenses and the corresponding liabilities at the fair value of the liability incurred by the
Group.
The Group shall, on each balance sheet date and on each account date prior to the settlement of the relevant liabilities, re-measure the fair
values of the liabilities and include the changes in the profit or loss for the period.
(2) Accounting treatment in respect of themodification and termination of share-based payment scheme
If any modification made by the Group to the share-based payment scheme increases the fair value of the equity instrument awarded,
services obtained shall be increased accordingly. The increase in fair value of such equity instrument equals to the difference between the fair
values before and after the date of modification. If any modification reduces the total fair value of share-based payment or is otherwise
unfavorable to employees, services obtained shall be treated as if such modification had never been made, unless the Group has canceled
part or the entire equity instrument award.
During the vesting period, where an equity instrument award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognized for the award is included immediately into the profit or loss for the period and capital reserve is recognized.
Where employees or other parties are permitted to choose to fulfill non-vesting conditions but have not fulfilled during the vesting period,
equity instrument award are deemed cancelled.
(3) Accounting for share based payment concerning the Company, its shareholders or actual controllers
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As for share based payment concerning the Company, its shareholders or actual controllers, with either the settlement entity or
service-acceptance entity in the Company or not, it is accounted for in our consolidated financial statement under the following provisions:
①for settlement entity making settlement with its own equity instruments, the transaction is accounted for as equity settled share based
payment, otherwise it shall be accounted for as cash settled share based payment.
If the settlement entity is an investor of the service-acceptance entity, the transaction is recognized as long term equity investment in the
service-acceptance entity based on the fair value of the equity instruments as at the grant date or the fair value of assumed liabilities, with
recognition of capital reserve (other capital reserve) or liabilities.
②If service-acceptance entity is not obliged to settle or grant its own equity instruments to its employees, the share based payment
transaction is accounted for as equity settled share based payment. If service-acceptance entity is obliged to settle or the equity instruments
granted to its employee are not the own instruments of the entity, the share based payment transaction is accounted for as cash settled share
based payment.
For intra-company share based payment transactions, if the service-acceptance entity and settlement entity are not the same enterprise, the
share based payment transaction shall be recognized and measured in the respective financial statement of the two entities under the
aforesaid principles.
24. Income
When significant risks and rewards of ownership of goods have been transferred to buyer, no continuous management right regularly related
to ownership is retained, no effective control is conducted on goods sold, moreover, amount of income may be measured in a reliable way,
relevant economic profit may have flown into enterprise and relevant incurred cost or to be incurred may be measured in a reliable way,
implementation of goods sales revenue will be confirmed. Detail recognization according to specific revenue:
(1) Power sales revenue
The Group generates electricity by thermal power, and realizes sales through incorporation into Guangdong power grid. As for power sales,
the Group realizes revenue when it produces electricity and obtains the grid power statistics table confirmed by the power bureau.
(2) Real estate sales revenue
① Developed products
Completed and passed the acceptance inspection, signed the sales contract and performed the contractual obligations, namely the main risks
and rewards of ownership of developed products are transferred to the buyer; the company no longer reserves the continuous management
right usually associated with the ownership, nor implements any effective control over the sold goods; the amount of revenue can be
measured reliably; relevant economic benefits are likely to inflow; and when the cost incurred or to be incurred of the project can be
measured reliably, confirm the realization of sales revenue.
② Installment sales
The developed products have been completed and passed the acceptance inspection, signed the installment sales contract and performed the
contractual obligations, relevant economic benefits are likely to inflow, and when the cost of this developed product can be measured reliably,
confirm the amount of revenue in accordance with the receivable contract or the fair value of agreement cost; the balance between the
receivable contract or agreement cost and its fair value is amortized and reckoned in the current profit and loss by effective interest method
during the contract or agreement period.
(3) Revenue from Providing Labor Service
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Under the condition of service providing business can be estimated in a reliable way, relevant economic benefit is likely to flow into
enterprise, completion degree of business may be estimated in a reliable way and relevant incurred cost and to be incurred may be measured
in a reliable way, the revenue from labor service providing recognized. Relevant service revenue may be confirmed by the Company as
percentage-of-completion method on balance sheet date. Completion degree of service business will be determined as share of incurred
service cost in estimated general cost.
If result of service providing business can’t be estimated in a reliable way, service revenue should be confirmed as amount of incurred
service cost expected to be compensated, where incurred service cost is taken as period charge. If no compensation is expected for incurred
service cost, income won’t be confirmed.
25. Government grant
Government subsidies are those monetary and/or non-monetary assets obtained from the government by free, not including the capital
invested by the government as owner. Government grant divided into the government grant related to assets and the government grant
related to income.
Those government grants of monetary assets are measured at the amount received or receivable. Non-monetary government grants are
measured at fair value. If no fair value is available, nominal amount will be adopted. Government subsidies measured at nominal amount are
accounted into current gains/losses directly.
Asset-related government grants are recognized as deferred income and accounted into current gains/losses evenly upon their service life.
Those income-related government grants used to neutralize relative expenses and losses of successive periods are recognized as deferred
income and accounted into current income at the period when the expenses are recognized; those used to neutralize relative expenses and
losses which have already occurred are accounted into current gains/losses directly.
If confirmed government grant needs to be surrendered，for government grant with relevant balance of deferred income, book balance of
relevant deferred income will be offset while remnant will be included in current profit and loss. On the contrary, for government grant
without relevant deferred income, it will be directly in current gain and loss.
The recognition basis of government subsidy for the Company's subsidiary Shennandian (Zhongshan) Power Co., Ltd. (hereinafter referred
to as "Zhongshan Power") and Shennandian (Dongguan) Weimei Power Co., Ltd. (hereinafter referred to as "Weimei Power")
In accordance with YFH No. [2008]31 “Notice on a temporary collection for fuel gas and oil processing charges” of People's Government of
Guangdong Province and provisions of relevant documents of Price Bureau of Guangdong Province, Zhongshan Power and Weimei Power
should confirm the government subsidy when received the subsidy payments of fuel gas and oil processing charges or obtained the vouchers
related to subsidy payments of fuel gas and oil processing charges.
26. Deferred income tax asset/ deferred income tax liability
(1) Current income tax
On balance sheet date, current income tax liability (or asset) formed during and before current period will be measured as amount of income
tax payable (or repayable) as specified by tax law. Assessable income on which current income expense is based represents the profit before
tax for the year upon adjustment against relevant tax rules.
(2) Deferred income tax asset & deferred income tax liability
For balance of book value of some asset/liability item and its tax base, or temporary difference derived from balance of book value and tax
base of the item, which is not confirmed as asset or liability but tax base can be fixed as specified by tax law, deferred income tax asset &
deferred income tax liability will be confirmed in balance sheet liability approach.
Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initial recognition of goodwill; and the
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initial recognition of an asset or liability in a transaction which is neither a business combination nor affects accounting profit or taxable
profit (or deductible loss) at the time of the transaction. In addition, the Group recognizes the corresponding deferred income tax liability for
taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, except when both of the following
conditions are satisfied: the Company able to control the timing of the reversal of the temporary difference; and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognition of an asset or liability in
a transaction which is neither a business combination nor affects accounting profit or taxable profit (or deductible loss) at the time of the
transaction. In addition, the Group recognizes the corresponding deferred income tax asset for deductible temporary differences associated
with investments in subsidiaries, associates and joint ventures to the extent that it is probable that taxable profits will be available against
which the deductible temporary differences can be utilized, except when both of the following conditions are satisfied: it is not probable that
the temporary difference will reverse in the foreseeable future; and it is not probable that taxable profits will be available in the future,
against which the temporary difference can be utilized.
For deductible loss and taxation decrease which can be carried over to following fiscal year, relevant deferred income tax asset may be
confirmed subject to amount of taxable income which is likely to be acquired to deduct deductible loss and taxation decrease in the future.
On balance sheet day, those deferred income tax assets and income tax liabilities, according to the tax law, calculation will be on tax rate
applicable to retrieving period of assets or clearing of liabilities.
On balance sheet day, verification will be performed on the book value of differed income tax assets. If it is not possible to obtain enough
taxable income to neutralize the benefit of differed income tax assets, then the book value of the differed income tax assets shall be reduced.
Whenever obtaining of taxable income became possible, the reduced amount shall be restored.
(3) Income tax expenses
Income tax expense includes current income tax and deferred income tax.
Current deferred income tax and deferred income tax expenses or income shall reckoned into current gains/losses other that those current
income tax and deferred income tax with transactions and events concerned, that reckoned into shareholder’s equity directly while
recognized as other comprehensive income; and the book value of the goodwill adjusted for deferred income tax arising from enterprise
combination
(4) Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets and settle the
liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either
to settle current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously, in each future period in which
significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset
and presented on a net basis.
27. Leasing
Finance lease is to virtually transfer all risks and rewards related to ownership of asset, the ownership is may transfer ultimately or not.
Leases other than finance lease are operating leases.
(1) Lease business with the Company as the rentee
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The rental is reckoned into the relevant assets cost or the current loss/gain in the straight-line method. The initial direct expenses are
reckoned into the current gain/loss, or the actual rental into the current loss/gain.
(2) Lease business with the Company as the renter
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct substantive expenses are
capitalized and reckoned into the current gain/loss, or the actual rental into the current loss/gain. The initial direct small expenses are
reckoned into the current actual gain/loss, or the actual rental into the current loss/gain.
(3) Financing lease business with the Group recorded as lessee
On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of the leased asset and the present
value of minimum lease payment at the beginning date of the lease. Minimum lease payment shall be the entry value of long-term accounts
payable, with difference recognized as unrecognized financing expenses. In addition, initial direct costs attributable to leased items incurred
during the process of lease negotiation and signing of lease agreement shall be included in the value of leased assets. The balance of
minimum lease payment after deducting unrecognized financing expenses shall be accounted for long-term liability and long-term liability
due within one year.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using effective interest method during the
leasing period. Contingent rent shall be included in profit or loss for the current period at the time it incurred.
(4) Financing lease business with the Group recorded as lessor
On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum lease receivable and initial direct
costs at the beginning date of the lease. The unsecured balance shall be recorded. The aggregate of minimum lease receivable, initial direct
costs and unsecured balance and the different between their present value shall be recognized as unrealised financing income. The balance of
lease receivable after deducting unrecognized financing income shall be accounted for long-term debt and long-term debt due within one
year.
Unrecognized financing income shall be recognized as financing income for the current period using effective interest method during the
leasing period. Contingent rent shall be included in profit or loss for the current period
28 Other Main Accounting Policies and Estimations
Debt restructures
(1) Obligation of recording debt restructuring as debtor
For debt liquidated with cash, balance between book value of debt to be restructured and amount of actual payment will be included in
current gain and loss. On the contrary, for debt liquidated with non-cash asset, balance between book value of debt to be restructured and fair
value of non-cash asset transferred will be included in current gain and loss. Balance between fair value of non-cash asset transferred and
book value of debt to be restructured will be included in current gains and loss.
When debt is transferred to capital, balance between book value of debt to be restructured and fair value of loaner’s share derived from
disclaim will be included in current gains and loss.
When other terms of debt are modified, fair value of debt after modification will be taken as entry value of restructured debt. Balance
between book value of debt prior to restructuring and debt restructured will be included in current gain and loss.
When combination of multiple modes is applied, book value of debt to be restructured will be offset by cash for payment, fair value of
non-cash asset transferred and fair value of loaner’s share successively, then applicable method under modification mentioned above will be
applied.
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(2) Obligation of recording debt restructuring as loaner
For debt liquidated with cash, balance between book balance of credit to be restructured and cash received will be included in current gain
and loss. On the contrary, for debt liquidated with non-cash asset, balance between book balance of credit to be restructured and fair value of
non-cash asset received will be included in current gain and loss.
When debt is transferred to capital, balance between fair value of loaner’s share and book balance of credit to be restructured will be
included in current gain and loss.
When other terms of debt are modified, fair value of credit after modification will be taken as book value of credit to be restructured.
Balance between book balance of debt prior to restructuring and book value of credit restructured will be included in current gain and loss.
When combination of multiple modes is applied, book balance of credit to be restructured will be offset by cash received, fair value of]
non-cash asset received and fair value of loaner’s share successively, applicable method under modification mentioned above will be
applied.
When depreciation reserve has been accrued in credit to be restructured, accrual depreciation reserve will be offset by
balances above. Remnant after offset will be included in current gain and loss.
29. Changes of main accounting policy and accounting estimation
(1) Change of accounting policy
There was no change of accounting policy in the reporting period.
(2) Change of accounting estimation
There was no change of accounting estimation in the reporting period.
30. Major accounting judgment and estimation
When using the accounting policies discussed in note IV, the Group needs to made judgment, estimation and assumption for carrying value
of certain items which cannot be measured adequately due to inherent uncertainty of economic activities. Such judgment, estimation and
assumption are based on historical experiences of the Group’s management, together with consideration of other relevant factors. These
judgments, estimations and assumption would affect the reported amount of income, expense, asset and liability and disclosure of contingent
liabilities on balance sheet date. However, actual results resulting from the uncertainty of these estimates may differ from the current
estimation made by management of the Company, which would in turn lead to material adjustments to the carrying value of assets or
liabilities which will be affected in future.
The Group conducts regular re-review on the aforesaid judgment, estimation and assumption on a continued operation basis. If the change of
accounting estimation only affect current period, the affected amount is recognized in the period when change occurs. If the change affects
current and future periods both, the affected amount is recognized in the period when change occurs and future periods.
On balance sheet date, major aspects in the statement need to judge, estimate and consumption by the Company are as:
(1) Fixed assets are provided for depreciation by output method
The Group recognizes depreciation for unit electricity based on values of power generation machine sets, projected power sales volume and
projected net remaining value, and provides for depreciation according to depreciation of unit electricity and actual power sales volume.
Taking into account the prevailing industry policies, technologies, consumption, allocation method of power management authorities and
past experiences, and the Group management believes that it is adequate for utilization life of such power generation machine sets, projected
power sales volume, projected net remaining value and provision method for depreciation. If the future actual power sales volume differs
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substantially from the projected one, the Group would make adjustment to unit electricity depreciation, which would bring affects to the
depreciation expenses included in profit and loss for the current and future periods.
(2) The provisional estimated value of fixed assets
As for the power generation machine sets and related buildings reaching the condition for intended use, due to the long construction period
of power plant projects, high prices and long completion settlement time, they are accounted provisional based on project budget, project
pricing or project actual costs before process of project completion settlement. And upon such settlement, the Company adjusts the original
provisional value according to the actual costs. If provisional estimated values of power generation machine sets and related buildings differ
materially from the actual costs, the Company may have to make corresponding adjustments to the values of fixed assets.
(3) Provision for bad debts
The Group use allowance method to state bad debt losses according to the accounting policies of accounts receivable. Impairment of
receivables is based on the assessment of the recoverability of accounts receivable. Identification of impairment of receivables requires
management judgments and estimates. The differences between actual results and the original estimate will affect the book value of accounts
receivable as well as the recognition or reversal of provision for bad debts in the period in which the estimate is changed.
(4) Allowance for inventories
Under the accounting policies of inventories and by measuring at the lower of cost and net realizable value, the Group makes allowance for
inventories that have costs higher than net realizable value or become obsolete and slow moving. Write-down of inventories to their net
realizable values is based on the salability of the evaluated inventory and their net realizable values. Identification of inventories requires
management to make judgments and estimates on the basis of obtaining conclusive evidence, and considering the purpose of holding
inventory and the events after balance sheet date. The differences between actual results and the original estimate will affect the book value
of inventories as well as the recognition or reversal of provision for inventories in the period in which the estimate is changed.
(5) Impairment provision for non-financial non-current assets
The Company makes judgment on each balance sheet date on whether there is indication of impairment in respect of non-current assets other
than financial assets. Intangible assets with indefinite useful life shall also be further tested for impairment when there is indication of
impairment, in addition to the annual impairment test. Other non-current assets other than financial assets would be test for impairment when
there is indication showing its carrying value in not likely to be recovered.
Impairment exists when carrying value of asset or assets group is higher than recoverable amount, namely the higher of fair value less
disposal cost and present value of expected future cash flow.
The calculation of the fair value less costs of disposal is based on available data from binding sales transactions in an arm’s length
transaction of similar assets or observable market prices less incremental costs for disposing of the asset.
In assessing value in use, significant judgments are exercised over the asset’s production, selling price, related operating expenses and
discount rate to calculate the present value. All relevant materials which can be obtained are used for estimation of the recoverable amount,
including the estimation of the production, selling price and related operating expenses based on reasonable and supportable assumptions.
The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value in use of the
cash-generating units to which the goodwill is allocated. Estimating the value in use requires the Group to make an estimate of the expected
future cash flows from the cash-generating units and also to choose a suitable discount rate in order to calculate the present value of those
cash flows.
(6) Depreciation and amortisation
Assets such as investment properties, fixed assets and intangible assets are depreciated and amortised over their useful lives under straight
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line method after taking into account residual value. The estimated useful lives of the assets are regularly reviewed to determine the
depreciation and amortisation costs charged in each reporting period. The useful lives of the assets are determined based on historical
experience of similar assets and the estimated technical changes. If there have been significant changes in the factors used to determine the
depreciation or amortisation, the rate of depreciation or amortisation is revised prospectively.
(7) Deferred income tax assets
Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which
the losses can be utilised. Significant management judgment is required to determine the amount of deferred income tax assets that can be
recognized, based upon the likely timing and level of future taxable profits together with future tax planning strategies.
(8) Early retirement pension plan and supplementary social pension plan
Expense and liability resulted from early retirement pension plan and supplementary social pension plan are determined based on a variety of
assumptions, including the discount rate, the growth rate of average medical cost, the growth rate of retired employees’ subsidies and other
factors. Differences between actual and estimated results will be recognized accordingly as current expense. Although management believes
that the assumptions are reasonable, the changes in actual empirical value and assumptions will affect the amount of expenses and the
balance of liabilities resulted from early retirement pension plan and supplementary social pension plan.
(9) Projected liability
Provision for product quality guarantee, estimated onerous contracts, and delay delivery penalties shall be recognized in terms of contract,
current knowledge and historical experience. If the contingent event has formed a practical obligation which probably results in outflow of
economic benefits from the Group, a projected liability shall be recognized on the basis of the best estimate of the expenditures to settle
relevant practical obligation. Recognition and measurement of the projected liability significantly rely on the management’s judgments
inconsideration of the assessment of relevant risks, uncertainties, time value of money and other factors related to the contingent events.
In addition, the Company would project liabilities for after-sale quality maintenance commitment provided to customers in respect of goods
sold, maintained and reconstructed by the Company. Recent maintenance experience of the Company has been considered when projecting
liabilities, while the recent maintenance experience may not reflect the future maintenance. Any increase or decrease of this provision may
affect profit or loss for future years.
V. Taxes
1. Main taxation items and its tax rate
Taxation items Tax rate
Output tax calculated based on the 6%, 11%, 13% or 17% of the taxable income, VAT based on the difference after
VAT
deducted the current input tax
Business tax Taxed by 3% and 5% of the taxable turnover
City maintenance
tax Taxed by 1% , 5% and 7% of the turnover tax actually paid
Education surtax Taxed by 3% of the turnover tax actually paid
Local education
surtax Taxed by 2% of the turnover tax actually paid
Enterprise income
tax Taxed by 16.5% to 25% of the taxable income amount (note 1)
Real estate tax As for the taxed by residual value, paid with the 1.2% of the residual value after original value deducted 30%; as for
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深圳南山热电股份有限公司 2016 年半年度报告全文
Taxation items Tax rate
the taxed by house rental, taxed with 12% of the rental income
Land-use tax of
town 2.5 Yuan ~ 9Yuan per square meter for the land area actually occupied
Tax by the Value-added amount from transferring state-owned land use right , landing construction and its affiliates
Land VAT
with four super-rate progressive tax rate
(Note 1) Rate for the income tax for the Company and subsidiaries as:
Taxpaying body Rate of income tax
Shenzhen Nanshan Power Co.,Ltd. (“the Company”) 25%
Shenzhen New Power Industrial Co., Ltd (“New Power Company”) 25%
Shenzhen Shennan Power Gas Turbine Engineering Technique Co., Ltd. (“Engineering Co”) 25%
Shenzhen Server Energy Co., Ltd. (“Shenzhen Server”) 25%
Shenzhen Shennan Power Environment Protection Co., Ltd(“Environment Protection Co., ”) 12.5%
Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power Company”) 25%
Shennandian (Dongguan) Weimei Power Company Limited (“ Weimei Power Company”) 25%
SHENNAN ENERGY (SINGAPORE) PTE LTD(“ Singapore company”) 20%
Zhongshan Shenzhong Real Estate Development Co., Ltd. (“Shen Development”) 25%
Zhongshan Shenzhong Real Estate Investment Property Co., Ltd. (“Shen Investment Property”) 25%
Zhongshan Shennandian Storage Co., Ltd. (“Shen Storage ”) 25%
HONG KONG SYNDISOME CO., LIMITED(“SYNDISOME”) 16.5%
2. Taxes preferential and approvals
Name of the Relevant regulation and Approval Approval Exemption Period of
Tax company policies basis institution documents range validity
” Notice of adjustment and
perfection on resources VAT free for
Environment Not
VAT comprehensive usage and labor Not applicable Not applicable sludge
Protection Co., applicable
VAT policy”(CS treatment
No.115[2011])
Notice on "contents of
Shenzhen
products with comprehensive Resource
Provincial
Environment utilization of resources and SGSQHBA comprehensiv 2015-8-1 to
VAT Office, SAT
Protection Co., value-added tax privilege of No.[2015]0002 e utilization 2018-7-31
(Qianhai SAT)
labour service" (CS No. [2015] of VAT refund
78)
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深圳南山热电股份有限公司 2016 年半年度报告全文
Name of the Relevant regulation and Approval Approval Exemption Period of
Tax company policies basis institution documents range validity
” Arrangement of avoidance of
Enterpri double-taxation and prevention Levy income
se of tax free in mainland China tax by 10% of Not
SYNDISOME Not applicable Not applicable
income and Hong Kong Special total share applicable
tax Administrative Region”(GSH interests
No. 884[2006])
No enterprise
income tax
Enterpri State Tax Shen Guo Sui should pay
se ’Enterprise Income Tax Law of Bureau of Nan Kou Jiao for the Not
SYNDISOME
income People’s Republic of China” Nanshan Distict Bei Zi No.: dividend applicable
tax Shenzhen [2011]0011 before 31
December
2007
Note: 1. "Notice about adjusting and improving the products with comprehensive utilization of resources and value-added tax policy of
labour service" (CS No. [2011] 115) has been abolished since July 1, 2015, the preferential policy of exempting environmental companies
from added-value tax of labour services for sludge treatment has been abolished since August 2015, and environmental companies enjoy the
drawback policy of added-value tax for comprehensive utilization of resources in accordance with the notice about printing and distributing
"contents of products with comprehensive utilization of resources and value-added tax privilege of labour service" (CS No. [2015] 78).
2. In accordance with the tax preference notification SGSSJMBA No. [2013]128 of Shenzhen Provincial Office, State Administration of
Taxation, environmental companies enjoy the preferential tax policy of two exemptions and three halve, i.e. exempting the corporate income
tax from 2012 to 2013, and halving the corporate income tax from 2014 to 2016.
VI. Annotation of the items in consolidate financial statement
With respect to the notes item (including Main item annotations of Financial Statements) disclosed below, unless
otherwise specified, “year-beginning” refers to 1 January 2016
1. Monetary fund
In RMB/CNY
Item 2016-6-30 Year-beginning balance
Cash on hand 182,118.71 190,537.37
Bank savings 1,090,492,069.20 1,014,404,258.41
Other monetary fund 20,954,533.85 12,031,684.28
Total 1,111,628,721.76 1,026,626,480.06
Including: total amount saving aboard 6,652,382.50 6,182,638.41
Note: among the above other monetary capital, there are totally 16,309,958.6 Yuan guarantee draft margin and
guarantee deposit included (on 31 December 2015: 10,300,000 Yuan).
2. Note receivable
In RMB/CNY
Item 2016-6-30 Year-beginning balance
Bank acceptance - 1,200,000.00
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3. Account receivable
(1) Account receivable classified according to types:
In RMB/CNY
2016-6-30
Book Balance Bad debt provision
Type Book
Proporti Amoun Proporti
Amount value
on (%) t on (%)
Account receivable with individual major amount and withdrawal bad debt 54,602,7 6,031,0 48,571,7
13.73 11.05
provision independently 86.66 21.74 64.92
Accounts receivable with minor amount and accounts receivable with major 340,992, 340,992,
85.73 - -
amount found no devaluation after individual devaluation test 145.09 145.09
Account receivable with individual minor amount but withdrawal bad debt 2,153,96 1,051,5 1,102,38
0.54 48.82
provision independently 0.71 72.48 8.23
397,748, 7,082,5 390,666,
Total 100.00 1.78
892.46 94.22 298.24
(Continued)
Year-beginning
Type Book Balance Bad debt provision
Book
Proporti Amoun Proporti value
Amount
on (%) t on (%)
Account receivable with individual major amount and withdrawal bad debt 54,602,7 6,031,0 48,571,7
13.24 11.05
provision independently 86.66 21.74 64.92
Accounts receivable with minor amount and accounts receivable with major 355,717, 355,717,
86.24 - -
amount found no devaluation after individual devaluation test 289.70 289.70
Account receivable with individual minor amount but withdrawal bad debt 2,153,96 1,051,5 1,102,38
0.52 48.82
provision independently 0.71 72.48 8.23
412,474, 7,082,5 405,391,
Total 100.00 1.72
037.07 94.22 442.85
(2) Age analysis of account receivable:
In RMB/CNY
2016-6-30 Year-beginning
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 305,198,189.13 76.73 275,368,307.23 66.76
1 to 2years 87,918,319.00 22.11 132,473,345.51 32.12
2 to 3years - - -
Over 3 years 4,632,384.33 1.16 4,632,384.33 1.12
Total 397,748,892.46 100.00 412,474,037.07 100.00
(3) Accrual for bad debt provision
① Other account receivable with individual major amount and withdrawal bad debt provision independently
In RMB/CNY
Withdrawal
Account receivable Carrying amount Bad debt provision Reasons
proportion (%)
- 90 -
深圳南山热电股份有限公司 2016 年半年度报告全文
Shenzhen Petrochemical Products
3,474,613.06 3,474,613.06 100.00 Un-collectible
Bonded Trading Co., Ltd.
Sinopec Shipping Fuel Supply Co., Litigation acceptance stage,
51,128,173.60 2,556,408.68 5.00
Ltd. caring provision
Total 54,602,786.66 6,031,021.74 11.05
② Account receivable with individual minor amount but withdrawal bad debt provision independently at period-end
In RMB/CNY
Withdrawal
Account receivable Book Balance Bad debt provision Reasons
proportion (%)
Account of engineering receivable 1,937,145.51 834,757.28 43.09 Un-collectible for overdue
Amount of oil sales receivable 146,915.10 146,915.10 100.00 Un-collectible for overdue
Amount of dry mud sales
69,900.10 69,900.10 100.00 Un-collectible for overdue
receivable
Total 2,153,960.71 1,051,572.48 48.82
(4) There are no account receivable of the shareholders or related party who hold over 5 %( 5% included) voting rights in report period.
(5)Top 5 companies in account receivables
In RMB/CNY
Proportion in total
Name of the company Relationship Amount Age account receivable
(%)
Guangdong Power Grid Company Non-related 177,554,521.78 Within 1year 44.64
Bureau of Finance of Shenzhen
Non-related 148,382,476.71 1-2 year 37.31
Municipality
Sinopec Shipping Fuel Supply Co.,
Non-related 51,128,173.60 Within 1year 12.85
Ltd.
Shenzhen Water Bureau Non-related 10,045,082.88 Within 1year 2.53
Bureau of Finance of Dongguan
Non-related 1,023,600.00 Within 1year 0.26
Municipality
Total 388,133,854.97 97.58
4. Account paid in advance
(1) Account paid in advance classified according to age:
In RMB/CNY
2016-6-30 Year-beginning
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1year 12,526,478.74 99.31 168,131.80 66.05
1 to 2years 19,082.75 0.15 37,225.29 14.62
2 to 3years - - - -
Over 3 years 67,504.20 0.54 49,200.00 19.33
- 91 -
深圳南山热电股份有限公司 2016 年半年度报告全文
Total 12,613,065.69 100.00 254,557.09 100.00
(2) No shareholders’ with over 5% (including 5%) voting rights of the Company held in account paid in advance in Period
5. Other account receivable
(1) Other account receivable classified according to type:
In RMB/CNY
2016-6-30
Book Balance Bad debt provision
Type Book
Proporti Proporti
Amount Amount value
on (%) on (%)
Other account receivable with individual major amount and withdrawal bad debt 20,341, 20,341,
29.23 100.00 -
provision independently 666.46 666.46
Other accounts receivable with minor amount and accounts receivable with major 44,781, 44,781,
64.36 - -
amount found no devaluation after individual devaluation test 114.35 114.35
Other account receivable with individual minor amount but withdrawal bad debt 4,460,4 4,021,7 438,694
6.41 90.16
provision independently 50.11 56.11 .00
69,583, 24,363, 45,219,
Total 100.00 35.01
230.92 422.57 808.35
(Continued)
Year-beginning
Book Balance Bad debt provision
Type Book
Proporti Proporti
Amount Amount value
on (%) on (%)
Other account receivable with individual major amount and withdrawal bad debt 20,341, 20,341,
36.95 100.00 0.00
provision independently 666.46 666.46
Other accounts receivable with minor amount and accounts receivable with major 30,246, 30,246,
54.95 - -
amount found no devaluation after individual devaluation test 625.69 625.69
Other account receivable with individual minor amount but withdrawal bad debt 4,460,4 4,021,7 438,694
8.10 90.16
provision independently 50.11 56.11 .00
55,048, 24,363, 30,685,
Total 100.00 44.26
742.26 422.57 319.69
(2) Other account receivable classified according to age:
In RMB/CNY
2016-6-30 Year-beginning
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1year 18,961,011.14 27.25 5,941,853.01 10.80
1 to 2years 969,650.00 1.39 756,215.01 1.37
2 to 3years 24,850,453.21 35.72 23,754,125.80 43.15
- 92 -
深圳南山热电股份有限公司 2016 年半年度报告全文
Over 3 years 24,802,116.57 35.64 24,596,548.44 44.68
Total 69,583,230.92 100.00 55,048,742.26 100.00
(3) Withdrawal of bad debt provision
① Other account receivable with single major amount and withdrawal bad debt provision for single item
In RMB/CNY
Withdrawal
Item Carrying amount Bad debt provision Reasons
proportion (%)
Huiyang County Kangtai
14,311,626.70 14,311,626.70 100.00 Un-collectible
Industrial Company
Shandong Jinan Power
3,560,000.00 3,560,000.00 100.00 Un-collectible
Equipment Factory
Individual income tax 2,470,039.76 2,470,039.76 100.00 Un-collectible
Total 20,341,666.46 20,341,666.46 100.00
②Account receivable with individual minor amount but withdrawal bad debt provision independently at Period-end:
In RMB/CNY
Withdrawal
Item Book Balance Bad debt provision Reasons
proportion (%)
Un-collectible for those
Dormitory amount receivable 2,083,698.16 1,736,004.16 83.31
which was overdue
Un-collectible for those
Deposit receivable 1,312,974.95 1,312,974.95 100.00
which was overdue
Bureau of Finance of Zhongshan Un-collectible for those
219,192.00 219,192.00 100.00
Municipality which was overdue
Administrative Office of Nanshan Un-collectible for those
50,000.00 5,000.00 10.00
District Shenzhen which was overdue
Un-collectible for those
GE COMPANY 35,000.00 7,000.00 20.00
which was overdue
Un-collectible for those
Other 759,585.00 741,585.00 97.63
which was overdue
Total 4,460,450.11 4,021,756.11 90.16
(4) There are no other account receivable of the shareholders who hold over 5 %( 5% included) voting rights in report period.
(5) Account receivable from relatd parties found more in Note 9-6. Account receivable/payable with related party
(6) Top five other account receivables at year-end balance listed by arrears party
In RMB/CNY
Proportion in
Year-end balance
Name of the company Relationship Amount Duration total other
of bad debt
account
- 93 -
深圳南山热电股份有限公司 2016 年半年度报告全文
receivable (%) provision
Managed account of Huidong Server Related party 12,847,031.77 2-3 year 18.46
-
Huidong Server Harbor
Comprehensive Development Co., Related party 12,003,421.44 2-3 year 17.25
-
Ltd ( “Huidong Server”)
Within
Non-related party 3,790,975.95 5.45
Asset insurance fee 1year -
Shandong Jinan Power Equipment Over 3
Non-related party 3,560,000.00 5.12 3,560,000.00
Factory years
Bureau of Finance of Zhongshan Over 3
Non-related party 219,192.00 0.32 219,192.00
Municipality years
Total 32,420,621.16 46.59 3,779,192.00
6. Inventory
(1) Classification of inventory
In RMB/CNY
2016-6-30 Year-beginning
Item Depreciation Depreciation
Book Balance Book value Book Balance Book value
provision provision
Fuels 10,249,232.73 9,190,295.09 1,058,937.64 9,785,383.29 9,190,295.09 595,088.20
Raw materials 131,008,737.58 42,417,645.34 88,591,092.24 131,377,979.93 42,417,645.34 88,960,334.59
Development
248,880,031.71 4,690,455.68 244,189,576.03 234,664,841.89 4,690,455.68 229,974,386.21
cost
Land Space
Needed to
1,031,435,085.64 677,325,429.94 354,109,655.70 1,030,478,670.36 677,325,429.94 353,153,240.42
Development
(Note)
Total 1,421,573,087.66 733,623,826.05 687,949,261.61 1,406,306,875.47 733,623,826.05 672,683,049.42
Note: 1) The land cost for development of Shenzhong Development Co., and Shenzhong Property Investment.
2) In the balance of land space needed to development at period-end, the capitalizing loan expenses amounting to RMB 168,902,319.91 (as
at 31 December 2015: RMB 168,902,319.91). The capitalizing loan expense of this year was 0 yuan.
(2) Development cost
2016-6-30
Item
Including：the Depreciation
Book Balance Book value
capitalizing loan provision of
- 94 -
深圳南山热电股份有限公司 2016 年半年度报告全文
expenses inventory
Development cost 248,880,031.31 12,553,899.05 4,690,455.28 244,189,576.03
(Continued)
Year-beginning amount
Depreciation
Item Including: he capitalizing
Book Balance provision of Book value
loan expenses
inventory
Development cost 234,664,841.89 2,828,615.72 4,690,455.68 229,974,386.21
7. Other current assets
In RMB/CNY
Item 2016-6-30 Year-beginning balance
VAT input tax deductible 559,956,448.53 597,813,020.06
Enterprise income tax deductible 6,583,089.98 6,583,089.98
Other 30,000.00 30,000.00
Total 566,569,538.51 604,426,110.04
8. Financial assets available for sale
(1) Financial assets available for sale
In RMB/CNY
2016-6-30 Year-beginning balance
Item Depreciation Depreciation
Book Balance Book value Book Balance Book value
reserves reserves
Equity instrument available for sale 61,815,000.00 2,500,000.00 59,315,000.00 59,815,000.00 2,500,000.00 57,315,000.00
Including: measured by cost 61,815,000.00 2,500,000.00 59,315,000.00 59,815,000.00 2,500,000.00 57,315,000.00
Total 61,815,000.00 2,500,000.00 59,315,000.00 59,815,000.00 2,500,000.00 57,315,000.00
In RMB/CNY
Book Balance Depreciation reserves
Investee company
+,
Year-begin +,- 2016-6-30 Year-begin 2016-6-30
-
57,315,000.0 2,000,000.0 59,315,000.0
CPI Jiangxi Nuclear Power Co., Ltd. - - -
0 0 0
Shenzhen Petrochemical Products Bonded Trading Co., 2,500,000.0 2,500,000.0
2,500,000.00 - 2,500,000.00 -
Ltd. 0 0
59,815,000.0 2,000,000.0 61,815,000.0 2,500,000.0 2,500,000.0
Total -
0 0 0 0 0
- 95 -
深圳南山热电股份有限公司 2016 年半年度报告全文
Continued
Investee company Shareholding ratio in investee company(%) Cash bonus
CPI Jiangxi Nuclear Power Co., Ltd. 5.00
-
Shenzhen Petrochemical Products Bonded Trading Co., Ltd. 4.00
-
9. Long-term equity investment
+,-
Investment Year-end balance
Year-beginning
Investee company gains/losses 2016-6-30 of depreciation
balance Other
recognized by reserves
equity method
Affiliated business
Huidong Server(Note) 22,520,274.78 -1,082,859.84 - 21,437,414.94 -
Total 22,520,274.78 -1,082,859.84 - 21,437,414.94 -
Note: up to 30 June 2016, 20% equity of the Huidong Server was pledged to Jiahua Building Product (Shenzhen) Co., Ltd. with 2-year term;
found more in Note VI-25. Accrual liability.
- 96 -
深圳南山热电股份有限公司 2016 年半年度报告全文
10. Investment real estate
In RMB/CNY
Item House, buildings Land use right Construction in process Total
I. Original book value
1. Year-beginning balance 9,708,014.96 - - 9,708,014.96
2.Current increased - - - -
3.Current decreased - - - -
4. Balance on 30 June 2016 9,708,014.96 - - 9,708,014.96
II. accumulated depreciation and accumulated amortization -
1. Year-beginning balance 6,513,299.45 - - 6,513,299.45
2. Current increased 98,068.80 - - 98,068.80
(1) accrual or amortization 98,068.80 - - 98,068.80
3. Current decreased - - - -
4. Balance on 30 June 2016 6,611,368.25 - - 6,611,368.25
III. depreciation provision -
1. Year-beginning balance - - - -
2. Current increased - - - -
3.Current decreased - - - -
4. Balance on 30 June 2016 - - - -
IV. Book value -
1. Balance on 30 June 2016 3,096,646.71 - - 3,096,646.71
2. Year-begin book value 3,194,715.51 - - 3,194,715.51
11. Fixed assets
In RMB/CNY
House and Machinery Transportati
Item Other equipment Total
buildings equipment on tools
I. Original book value
4,024,735,303 27,098,867. 4,553,563,851
1. Year-beginning balance 451,404,394.88 50,325,285.65
.81 59 .93
2. Current increased
(1) Purchase - 222,394.85 48,000.00 419,468.90
149,074.05
(2) Construction in process
311,965.81 6,202,846.16 - 23,500.00 6,538,311.97
transfer-in
(3) increased by enterprise
combination
3. Current decreased
- 97 -
深圳南山热电股份有限公司 2016 年半年度报告全文
(1) Disposal or scrap 11,794.87 78,651.00 2,178,337.77 2,268,783.64
4,031,148,749 27,068,216. 4,558,252,849
4. balance dated 30 June 2016 451,716,360.69 48,319,521.93
.95 59 .16
II. Accumulated depreciation
2,423,152,082 22,460,764. 2,743,332,616
1. Year-beginning balance 256,597,717.49 41,122,051.94
.73 48 .64
2. Current increased
(1) accrual 6,844,464.57 54,676,855.55 410,741.41 458,473.39 62,390,534.92
3. Current decreased
(1) Disposal or scrap 10,615.38 70,785.90 1,983,772.88 2,065,174.16
2,477,818,322 22,800,719. 2,803,657,977
4. balance dated 30 June 2016 263,442,182.06 39,596,752.45
.90 99 .40
III. impairment provision
126,472,148.7 142,737,151.8
1. Year-beginning balance 15,902,481.55 236,722.13 125,799.41
8 7
2. Current increased
(1) accrual
3. Current decreased
(1) Disposal or scrap
126,472,148.7 142,737,151.8
4. balance dated 30 June 2016 15,902,481.55 236,722.13 125,799.41
8 7
IV. Book value
1,426,858,278 4,030,774.4 1,611,857,719
1. balance dated 30 June 2016 172,371,697.08 8,596,970.07
.27 7 .89
1,475,111,072 4,401,380.9 1,667,494,083
2. Year-begin book value 178,904,195.84 9,077,434.30
.30 8 .42
- 98 -
深圳南山热电股份有限公司 2016 年半年度报告全文
12. Construction in process
(1) Construction in process
In RMB/CNY
2016-6-30 Year-beginning
Item
Book Balance Impairment provision Net book value Book Balance Impairment provision Net book value
Oil to Gas Works 32,871,600.26 32,871,600.26 - 32,871,600.26 32,871,600.26 -
Cogeneration of heat and electricity Project 8,308,828.61 - 8,308,828.61 7,272,947.48 - 7,272,947.48
Others 916,214.01 - 916,214.01 1,200,329.42 - 1,200,329.42
Total 42,096,642.88 32,871,600.26 9,225,042.62 41,344,877.16 32,871,600.26 8,473,276.90
(2) Changes of significant projects in construction
In RMB/CNY
Transferred fixed assets
Projects Budget Year-beginning Increase of this year Other decrease 2016-6-30
in this year
Oil to Gas Works 74,400,000.00 32,871,600.26 32,871,600.26
Cogeneration of heat and electricity Project 70,000,000.00 7,272,947.48 1,035,881.13 8,308,828.61
Others - 6,254,196.56 6,254,196.56 0.00
Total 1,200,329.42 284,115.41 916,214.01
(3) Construction in process Impairment provision
In RMB/CNY
Item Year-beginning Increase of this year Decrease of this year 2016-6-30 Reasons of accrual
Oil to Gas Works 32,871,600.26 - - 32,871,600.26 In idle condition
99
深圳南山热电股份有限公司 2016 年半年度报告全文
13. Intangible assets
In RMB/CNY
Item Land use right Software Total
I. Original book value
1. Year-beginning balance 91,253,625.27 3,745,009.85 94,998,635.12
2. Current increased -
(1) purchase - 15,000.00 15,000.00
3. Current decreased -
(1) diposal - - -
4. balance dated 30 June 2016 91,253,625.27 3,760,009.85 95,013,635.12
II. accumulated amortization
1. Year-beginning balance 38,013,098.05 3,184,061.26 41,197,159.31
2. Current increased -
(1) accrual 1,155,494.52 216,292.11 1,371,786.63
3. Current decreased -
(1) disposal - - -
4. balance dated 30 June 2016 39,168,592.57 3,400,353.37 42,568,945.94
III. Impairment provision
1. Year-beginning balance - - -
2. Current increased
3. Current decreased
4. balance dated 30 June 2016 - - -
IV. Book value
1. balance dated 30 June 2016 52,085,032.70 359,656.48 52,444,689.18
2. Year-begin book value 53,240,527.22 560,948.59 53,801,475.81
14. Deferred income tax assets
In RMB/CNY
Item 2016-6-30 Year-beginning
Deferred income tax assets:
100
深圳南山热电股份有限公司 2016 年半年度报告全文
Bad debt provision of account receivable 1,122,808.87 1,122,808.87
Other provision for bad debts of accounts receivable 185,396.25 185,396.25
Staff salary payable 830,621.00 830,621.00
Provision for devaluation of long-term equity investment 625,000.00 625,000.00
Others 141,942.57 141,942.57
Total 2,905,768.69 2,905,768.69
15.Other non-current assets
In RMB/CNY
Item 2016-6-30 Year-beginning
PROJECT OF LNG (Note) 22,882,181.78 22,882,181.78
Note: the project was jointly constructed by Weimei Power Company and Guangdong Dapeng Liquid Natural Gas Co.,
Ltd.(hereinafter referred to as Dapeng LNG). According to the contract signed between the two parties, before the project involved
by this construction acquired approval from the relevant national authorities, the ownership belongs to both parties. After such
approval, Dapeng LNG will acquire LNG project. Thus, Weimei Power Company recorded it under the item of “other non-current
assets”.
16. Short-term loans
In RMB/CNY
Item 2016-6-30 Year-beginning
Guarantee loans 416,804,173.08 361,300,000.00
Credit loans 1,494,000,000.00 2,024,000,000.00
Total 1,910,804,173.08 2,385,300,000.00
17. Note payable
In RMB/CNY
Classification 2016-6-30 Year-beginning
Trade acceptance 347,664,067.79 290,000,000.00
Bank acceptance 50,000,000.00 50,000,000.00
Total 397,664,067.79 340,000,000.00
18. Account payable
(1) Details of account payable:
In RMB/CNY
Item 2016-6-30 Year-beginning balance
101
深圳南山热电股份有限公司 2016 年半年度报告全文
Natural gas 64,316,998.52 21,979,035.90
Materials 1,832,471.53 7,969,367.98
Electricity 982,048.59 782,677.40
Engineering funds 3,181,536.42 7,051,271.55
Others 618,835.69 232,376.39
Total 70,931,890.75 38,014,729.22
(2)There is no fund of shareholders with 5 %( including 5%) or more of the voting shares in the Group in the report period.
19. Account received in advance
In RMB/CNY
Item 2016-6-30 Year-beginning
Loan - 58,575.45
Total - 58,575.45
20. Wages payable
(1) Wages payable
In RMB/CNY
Decrease this
Item Year-beginning balance Increase this year 2016-6-30
year
I. Short-term remuneration 43,933,162.23 62,351,840.75 62,442,070.98 43,842,932.00
II. Post-employment welfare-defined
3,588,548.61 7,037,305.03 6,788,606.21 3,837,247.43
contribution plans
III. Severance Pay - - - -
IV. Other welfare due within one year - - - -
Total 47,521,710.84 69,389,145.78 69,230,677.19 47,680,179.43
(2) Short-term remuneration
In RMB/CNY
Decrease this
Item Year-beginning balance Increase this year 2016-6-30
year
1. Wages, bonuses, allowances and
42,093,605.46 50,931,010.14 51,772,315.21 41,252,300.39
subsidies
2. Welfare for employee - 110,320.00 110,320.00 -
3. Social insurance 130,591.64 3,255,477.48 3,028,435.10 357,634.02
102
深圳南山热电股份有限公司 2016 年半年度报告全文
Including: Medical insurance 105,198.12 2,903,928.30 2,717,355.48 291,770.94
Work injury insurance 10,794.79 247,345.02 228,928.34 29,211.47
Maternity insurance 14,598.73 104,204.16 82,151.28 36,651.61
4. . Housing provident fund 368,027.68 7,294,619.31 6,814,956.90 847,690.09
5. Union funds and staff education
1,340,937.45 760,413.82 716,043.77 1,385,307.50
expenses
Total 43,933,162.23 62,351,840.75 62,442,070.98 43,842,932.00
(3) Defined contribution plans
In RMB/CNY
Decrease this
Item Year-beginning balance Increase this year 2016-6-30
year
1. Basic Endowment insurance 259,050.33 6,924,129.67 6,678,883.57 504,296.43
2. Unemployment insurance 7,056.28 113,175.36 109,722.64 10,509.00
3. Enterprise annuities 3,322,442.00 0.00 0.00 3,322,442.00
Total 3,588,548.61 7,037,305.03 6,788,606.21 3,837,247.43
21. Taxes payable
In RMB/CNY
Item 2016-6-30 Year-beginning
VAT 4,507,437.03 4,017,606.83
Business tax 127,922.08 1,524,768.70
Enterprise income tax 352,376.21 1,158,352.34
Individual income tax 2,981,971.77 1,437,961.50
Land-use tax of town 464,871.05 2,476,219.87
Real estate tax 1,386,357.26 2,148,885.14
Others 302,008.73 680,691.47
Total 10,122,944.13 13,444,485.85
22. Interest payable
In RMB/CNY
Item 2016-6-30 Year-beginning
Long-term loan interest of installment and interest charges 1,283,472.22 1,091,270.14
Interest payable of short-term loan 70,946,711.24 62,050,779.67
103
深圳南山热电股份有限公司 2016 年半年度报告全文
Total 72,230,183.46 63,142,049.81
23. Other account payable
In RMB/CNY
Item 2016-6-30 Year-beginning
Loan (note) 280,495,875.99 280,495,875.99
Project expense 29,197,478.78 31,054,000.75
Quality guarantee deposit 9,568,868.86 6,226,638.33
Equipment amount 2,419,449.33 6,178,674.04
Materials funds 406,850.01 1,159,289.75
Land use right charge 532,838.78 1,065,676.50
Fund of the Board 596,720.27 567,770.27
Other 40,461,648.23 45,178,247.61
Total 363,679,730.25 371,926,173.24
Note : represented the amounts borrowed by Shenzhong Development Company from Xingzhong Group with the land use right and
fixed assets owned by it as the pledge and represented the amounts borrowed by Shenzhong Development Company from the
Treasury bureau of Zhongshan city.
24. Long-term loans
In RMB/CNY
Item 2016-6-30 Year-beginning
Mortgage loan 111,000,000.00 91,000,000.00
Guarantee loans 390,400,000.00 250,000,000.00
Credit loans 680,000,000.00 355,000,000.00
Less: Long-term loans due within one year 179,000,000.00 -
Total 1,002,400,000.00 696,000,000.00
25. Accrued liabilities
In RMB/CNY
Current
Item Year-beginning Current increased Balance dated 30 June 2016
decreased
Guarantee offering outside 27,100,000.00 - - 27,100,000.00
Note: On 29 November 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd. (Jiahua Building) signed a
supplementary term aiming at equity transfer over equity attribution and division of Yapojiao Dock, which belongs to Shenzhen
104
深圳南山热电股份有限公司 2016 年半年度报告全文
Server, Huidong Server, and Huidong Nianshan Town Government as well as its subordinate Nianshan Group. In order to solve this
remaining historic problem, Shenzhen Server saved RMB 12,500,000.00 in condominium deposit account as guarantee. In addition,
Server pledged its 20% of equity holding from Huidong Server to Jiahua Architecture with pledge duration of 2 years. The amount of
collateral on loans could not exceed RMB 15,000,000.00. Relevant losses with the event concerned predicted amounting to
RMB27,100,000.00 by the Group up to 30 June 2016.
26. Deferred income
In RMB/CNY
Item Content 2016-6-30 Year-beginning
Government grants Government grants with assets-concerned 46,755,614.32 48,435,206.35
Including the deferred income:
In RMB/CNY
Amount
Assets
Year-beginning Subsidies reckoned in Other
Item 2016-6-30 related/income
balance increased non-operation changes
related
revenue
Subsidy for
energy-saving 6,124,465.53 - 180,209.91 - 5,944,255.62 Assets related
technology reform
Treasury subsidies for
3,846,250.00 - 127,500.00 - 3,718,750.00 Assets related
sludge drying
Support fund of
recycling economy for 10,039,285.23 - 323,501.46 - 9,715,783.77 Assets related
sludge drying
Subsidy for project of
low-nitrogen
transformation for 28,093,833.07 - 1,276,992.42 - 26,816,840.65 Assets related
welcoming the
Universiade
Support fund of 331,372.52 - 30,588.24 - 300,784.28 Assets related
105
深圳南山热电股份有限公司 2016 年半年度报告全文
enterprise
informationalization
Subsidy for promotion
of energy efficiency of 259,200.00 - 259,200.00
electric machine
Total 48,435,206.35 259,200.00 1,938,792.03 - 46,755,614.32
27. Share capital
In RMB/CNY
Changes in this year(+ -)
Year-beginning New Capitalizing
Item Bonus Balance dated 30 June 2016
balance shares from Other Subtotal
shares
issued reserves
Total shares 602,762,596.00 - - - - - 602,762,596.00
28. Capital reserve
In RMB/CNY
Item Year-beginning balance Increase in the year Decrease in the year Balance dated 30 June 2016
Capital premium 233,035,439.62 - - 233,035,439.62
Other capital surplus 129,723,114.59 12,367.89 - 129,735,482.48
Total 362,758,554.21 12,367.89 - 362,770,922.10
29. Surplus reserve
In RMB/CNY
Item Year-beginning balance Increase in the year Decrease in the year Balance dated 30 June 2016
Legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus reserve 22,749,439.73 - - 22,749,439.73
Total 332,908,397.60 - - 332,908,397.60
30. Retained profit
In RMB/CNY
Item Current period Last year
Retained profit of last year before adjusted -662,422,848.24 -27,799,181.18
Total retained profit adjusted (increased with +, decreased with -) - -
106
深圳南山热电股份有限公司 2016 年半年度报告全文
Retained profit at beginning of the year after adjusted -662,422,848.24 -27,799,181.18
Add: net profit attributable to shareholders of parent company -56,454,746.24 -634,623,667.06
Retained profit at period-end -718,877,594.48 -662,422,848.24
31. Operating income, operating cost
In RMB/CNY
Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Item
Income Cost Income Cost
Main business 696,432,490.71 639,919,822.75 649,768,357.04 746,631,864.79
Other business 1,255,776.37 - 788,880.14 275,907.07
Total 697,688,267.08 639,919,822.75 650,557,237.18 746,907,771.86
32. Operating tax and surcharge
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Business tax 2,293,256.16 3,120,482.66
City maintenance tax 588,923.60 218,481.87
Others 218,106.29 162,614.49
Total 3,100,286.05 3,501,579.02
33. Management expenses
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Salary 18,521,671.62 18,273,577.39
Taxes 1,732,410.66 2,042,357.27
Leasing expenses 3,059,267.02 2,691,565.32
Entertainment expense 2,291,471.63 1,426,673.40
Expenses for agency appointment 1,431,405.29 2,127,655.45
Vehicles expenses 1,787,476.46 2,094,377.74
Expenses from the Board 831,272.04 690,280.07
Housing fund 1,631,837.77 1,418,120.32
Depreciation expense 1,393,866.06 1,331,600.58
Amortization of intangible assets 996,580.98 1,728,910.98
107
深圳南山热电股份有限公司 2016 年半年度报告全文
Specific expenses 725,901.21 191,324.51
Environmental expense 881,445.19 852,813.80
Sundry expenses 1,513,103.98 1,359,981.23
Expenses for enterprise culture 206,852.84 559,909.00
Property expense 440,711.08 519,750.52
Office expenses 222,645.08 209,775.39
Endowment insurance 1,939,815.87 1,671,242.45
Communication charge 656,333.14 668,438.64
Business traveling charge 315,788.30 341,368.12
Stock charge 364,249.31 269,820.00
Health insurance 803,609.31 808,325.91
Labor-union expenditure 391,539.68 371,231.19
Personnel education 248,847.24 80,481.35
Other 2,289,002.77 1,481,054.44
Total 44,677,104.53 43,210,635.07
34. Financial expenses
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Interest expenditure 99,068,132.04 117,842,846.34
Less : interest income 3,436,770.19 3,429,481.88
Exchange gains/losses 142,337.41 -22,875.76
Others 674,956.86 1,461,045.23
Total 96,448,656.12 115,851,533.93
35. Investment income
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Income of long-term equity investment measured by
-1,082,859.84 -883,344.35
equity method
Investment income from the disposal of long-term equity
- -
investment
Subtotal -1,082,859.84 -883,344.35
36.Non-operating income
In RMB/CNY
108
深圳南山热电股份有限公司 2016 年半年度报告全文
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Government grants 9,839,892.03 89,733,937.14
Natural gas import VAT refund - 43,717,420.50
Profits of disposal of he non-current assets - 36,000.00
Others 1,981,448.64 201,892.66
Total 11,821,340.67 133,689,250.30
Government grants :
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Income from fuel subsidies - 87,918,336.36
Subsidies income of fuel processing fee (Note) 7,901,100.00 -
Subsidy for project of low-nitrogen transformation for
1,276,992.42 1,276,992.46
welcoming the Universiade
Support fund of enterprise informationalization 30,588.24 30,588.20
Subsidy for energy-saving technology reform 180,209.91 57,018.66
Government bond subsidy for sludge drying 127,500.00 127,500.00
Support fund of recycling economy for sludge drying 323,501.46 323,501.46
Total 9,839,892.03 89,733,937.14
Note: The subsidy of gas & fuel processing required by Weimei Power and Zhongshan Power according to the regulation of Yue Fa
Gai Price [2016] No. 221 Accouncement of Gas& Fuel Processing Subsidy for Jan. – Sept. of 2015
37. Non-operating expense
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Expenses from external donation 20,000.00 10,000.00
Total loss from disposal of non-current assets 203,276.08 18,676.42
Including: Gains and loss of disposal of fixed assets 203,276.08 18,676.42
Others - 84.11
Total 223,276.08 28,760.53
38. Income tax expenses
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
109
深圳南山热电股份有限公司 2016 年半年度报告全文
Current income tax measured by tax laws and
1,085,010.53 488,647.17
relevant regulations
39. Item of cash flow statement
(1) Cash received with other operating activities concerned
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Natural gas import refunds received - 42,571,847.87
Fuels subsidy income 143,718,571.29 353,732,500.00
Others 16,349,474.99 20,344,997.85
Total 160,068,046.28 416,649,345.72
(2) Cash paid for other operating activities
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Expense on agency appointment 1,431,405.29 2,127,655.45
Board expenses 831,272.04 690,280.07
Leasing expense 3,499,978.10 3,211,315.84
Entertainment expense 2,291,471.63 1,426,673.40
Motorcade charge 1,787,476.46 2,094,377.74
Corporate culture fee 206,852.84 559,909.00
Communication fee 656,333.14 668,438.64
Environmental protection fees 881,445.19 852,813.80
Others 14,614,204.60 20,249,405.22
Total 26,200,439.29 31,880,869.16
(3) Cash received from other financing activities
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Received deposit 5,300,000.00 0.00
(4) Cash piad for other financing activities
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
110
深圳南山热电股份有限公司 2016 年半年度报告全文
Paid deposit 11,309,958.60 0.00
40. Supplementary information on cash flow statement
(1) Regulate the net profit into the cash flow of operating activities
In RMB/CNY
Supplementary information Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
1. Regulate the net profit into the cash flow of operating
activities
Net profit -79,480,798.41 -128,809,496.06
Add: Asset impairment provision - -
Depreciation of fixed assets 60,423,429.56 60,736,817.30
Amortization of long-term deferred expenses 1,371,786.63 1,368,925.51
Loss from disposing fixed assets, intangible assets and other
203,276.08 17,323.58
long-term assets (income listed with “-“)
Financial expenses (income) 93,011,885.93 112,422,052.05
Investment loss (income) 1,082,859.84 883,344.35
Decrease of inventory (increased) -15,266,212.19 12,440,648.82
Decrease of receivable operating items (increased) 25,688,718.89 153,511,662.92
Increase of payable operating items (decreased) 96,645,329.00 106,284,020.72
Net cash flow from operation activities 183,680,275.33 318,855,299.19
2. Major investment and financing activities not involving cash
income and expenditure:
3. Net change of cash and cash equivalents:
Year-end balance of cash and cash equivalent 1,095,318,763.16 859,990,106.12
Less: Year-beginning balance of cash and cash equivalent 1,016,326,480.06 568,494,957.02
Net increase of cash and cash equivalents 78,992,283.10 291,495,149.10
(2) Composition of cash and cash equivalent
In RMB/CNY
Item Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
I. cash 1,095,318,763.16 859,990,106.12
Including: Cash on hand 182,118.71 177,656.64
Bank savings available for payment needed 1,090,492,069.20 859,130,274.52
111
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Other monetary capital available for payment needed 4,644,575.25 682,174.96
II. Cash equivalent
III. Balance of cash and cash equivalent at period-end 1,095,318,763.16 859,990,106.12
41. Foreign currency
In RMB/CNY
Item Balance of foreign currency at 30 June 2016 Conversion rate Balance of RMB converted at 30 June 2016
Monetary fund
Including: USD 932,972.45 6.631 6,186,911.94
Euro 1,017.87 7.375 7,507.24
HKD 790,706.69 0.855 675,813.02
SGD 8,879.81 4.924 43,723.30
VII. Change of consolidate scope
There are no changes in consolidated scope.
VIII. Equity in other entity
1. Equity in subsidiaries
Main operation Registration Business Shareholding
Subsidiary Acquired way
place place nature ratio (%)
Shenzhen Server(Note) Shenzhen Shenzhen Trading 50 Establishment
Power
New Power Shenzhen Shenzhen 100 Establishment
generation
Power
Zhongshan Power Zhongshan Zhongshan 80 Establishment
generation
Engineering
Engineering Co., Shenzhen Shenzhen 100 Establishment
consulting
Power
Weimei Power Dongguan Dongguan 70 Establishment
generation
Environment Protection
Shenzhen Shenzhen Engineering 100 Establishment
Co.,
SINGAPORE LTD Singapore Singapore Trading 100 Establishment
Shen Development Zhongshan Zhongshan Real estate 75 Not under the same control
112
深圳南山热电股份有限公司 2016 年半年度报告全文
development
Real estate
Shen Investment Property Zhongshan Zhongshan 75 Not under the same control
development
Shen Storage Zhongshan Zhongshan Storage 80 Establishment
Import &
SYNDISOME Hong Kong Hong Kong 100 Not under the same control
export trading
Note : The Company holds 50% equity of Shenzhen Server, and takes majority voting rights in Shenzhen Server, thus, the Company
owes substantial control; Shenzhen Server included in the consolidate scope of the financial statement.
2. Equity in joint venture and cooperative enterprise
Main operation Registered Business Share-holding ratio (%)
Name Accounting treatment
place place nature
Directly Indirectly
Huidong Server Huizhou Huizhou Wharf 40 Equity method
Note: On 9th December 2013, controlling subsidiary of the Company Shenzhen Server holds 60% equity of Huidong Server, on date
when control rights loss, rests of the 40% equity of Huidong Server held by Shenzhen Server are measure again by appraisal value.
IX. Related party and related transactions
1. Parent company of the Group
Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't form a holding relationship of the
Company through any methods. The Company has no parent company.
2. Subsidiaries of the Company
Found more in 1. Equity in subsidiary in Note VIII.
3. Joint venture and affiliated enterprise of the Group
Found more in 2. Equity in joint venture or affiliate business in Note VIII.
4. Other related part
Other related party Relationship with the Company Organization code
Shenzhen Energy Group Co., Ltd. (“Energy Shareholders have major influence on the
19218918-5
Group ”) Company
Dongguan Weimei Ceramics Industrial Park Co.,
Minority shareholders of the subsidiaries 72919361X
Ltd. (” Weimei Ceramics”)
113
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Zhongshan Xingzhong Group Co., Ltd.(”
Minority shareholders of the subsidiaries 733112675
XINGZHONG GROUP”)
Shenzhen Mawan Powr Co., Ltd. (“Mawan Power Subsidiary of ultimate controller of
618816706
Company”)
Energy Group
Shenzhen Moon Bay Oil Harbour Co., Ltd. Subsidiary of ultimate controller of
618849428
(“Moon Bay Oil Company”)
Energy Group
Shenzhen Energy Group Holding Co., Ltd. (” Subsidiary of ultimate controller of
19224115-8
Energy Holding”)
Energy Group
Shenzhen Pipe Energy Technology Development
Others Related party 77877487-5
Co., ltd. (“Pipe Technology”)
Director of the Company and other senior
Key management staff Not applicable
executives
5. Related Transactions
(1) Lending money of related party
In RMB/CNY
Related party Amount of lending money Commencement date Maturity Date Note
Borrowing:
Xingzhong Group 125,316,816.85 2016.01.01 2016.12.31 Renewal
Xingzhong Group 14,335,291.80 2016.01.01 2016.12.31 Renewal
Xingzhong Group 2,500,000.00 2016.01.01 2016.12.31 Renewal
Xingzhong Group 16,250,000.00 2016.01.01 2016.12.31 Renewal
Xingzhong Group 23,750,000.00 2016.01.01 2016.12.31 Renewal
Xingzhong Group 74,022,567.34 2015.07.01 2016.07.01 Renewal
(2) Fund occupation expenses
In RMB/CNY
Amount in Jan.-Jun. 2016 Amount in Jan.-Jun. 2015
Proportion in Proportion in
Price
Transaction Transaction amount of amount of
Related party setting
type content Amount similar Amount similar
principal
transaction transaction
(%) (%)
Xingzhong Interest
Fund Note 9,065,737.12 100.00 9,015,925.40 100.00
Group occupation expenses
114
深圳南山热电股份有限公司 2016 年半年度报告全文
expenses
Note: payment for the use of state funds is calculated according to loan rate of current capital of peer banks.
6. Account payable/receivable from related parties
(1) Item receivable
In RMB/CNY
Amount dated 30 June 2016 Year-begin balance
Item Book balance Bad debt Book balance Bad debt
provision provision
Other account receivable:
Huidong Server 12,003,421.44 - 11,822,401.44 -
Huidong Server managed account 12,847,031.77 - 12,739,493.82 -
Total 24,850,453.21 - 24,561,895.26 -
(2) Item payable
In RMB/CNY
Item Amount dated 30 June 2016 Year-begin balance
Other account payable:
Xingzhong Group 256,174,675.99 256,174,675.99
Interest payable:
Xingzhong Group 36,307,636.78 27,241,899.66
X. Commitment
1. Major commitment
Till the balance sheet day, the condition of irrevocable operating lease contract the Group externally signed is as follow:
In RMB/CNY
Item 2016-6-30 Year-beginning
Minimum lease payments of irrevocable operating lease:
The first year after balance sheet day 1,588,216.50 3,728,646.50
The second year after balance sheet day 1,504,396.50 1,504,396.50
The third year after balance sheet day 1,517,717.46 1,504,396.50
Subsequent years 60,534,263.79 61,299,783.00
115
深圳南山热电股份有限公司 2016 年半年度报告全文
Total 65,144,594.25 68,037,222.50
2. Contingency
Up to 30th June 2016, the Company has no important contingency that need to disclosed
XI. Events Occurring after the Balance Sheet Date
The Company has no events occurring after balance sheet date that need to disclosed up to 30th June 2016.
XII. Other important events
The Company has no other important events that need to disclosed up to to 30th June 2016.
XIII. Note to items of financial statements of the Parent Company
1. Account receivable
(1) Accounts receivable classifying according to the category:
In RMB/CNY
2016-6-30
Bad debt
Category Book Balance provision Book
Proporti Am Proporti value
Amount
on(%) ount on(%)
Account receivable with individual major amount and withdrawal bad debt
- - - - -
provision independently
Accounts receivable with minor amount and accounts receivable with major 244,873, 244,873,
100.00 - -
amount found no devaluation after individual devaluation test 310.69 310.69
Account receivable with individual minor amount but withdrawal bad debt
- - - - -
provision independently
244,873, 244,873,
Total 100.00 - -
310.69 310.69
(Continued)
Category Year-beginning
116
深圳南山热电股份有限公司 2016 年半年度报告全文
Bad debt
Book Balance provision Book
Proporti Am Proporti value
Amount
on(%) ount on(%)
Account receivable with individual major amount and withdrawal bad debt
- - - - -
provision independently
Accounts receivable with minor amount and accounts receivable with major 309,114, 309,114,
100.00 - -
amount found no devaluation after individual devaluation test 888.65 888.65
Account receivable with individual minor amount but withdrawal bad debt
- - - - -
provision independently
309,114, 309,114,
Total 100.00 - -
888.65 888.65
(2) Age analysis of account receivable:
In RMB/CNY
2016-6-30 Year-beginning
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 156,922,102.69 64.08 177,333,799.65 57.37
1 to 2years 87,948,319.00 35.92 131,778,200.00 42.63
2 to 3years - - - -
Over 3 years 2,889.00 0.00 2,889.00 -
Total 244,873,310.69 100.00 309,114,888.65 100.00
(3) There are no account receivable of the shareholders who hold over 5 %( 5% included) voting rights in report period.
(4) Main amount of Account receivable
In RMB/CNY
Relationship with the Proportion in total account
Name of the company Amount Age
Company
receivable (%)
Bureau of Finance of Shenzhen 148,382,476 Within 1-2
Government institution 60.60
Municipality .71 year
96,487,944. Within
Guangdong Power Grid Company The 3rd party 39.40
98 1year
244,870,421
Total 100.00
.69
2. Other account receivable
(1) Other account receivable classified according to type:
117
深圳南山热电股份有限公司 2016 年半年度报告全文
In RMB/CNY
2016-6-30
Book Balance Bad debt provision
Category Book
Proport Proport
value
Amount ion (%) Amount ion (%)
Other account receivable with individual major amount and withdrawal bad 921,478, 589,863 331,615,
49.98 64.01
debt provision independently 861.10 ,195.84 665.26
Other accounts receivable with minor amount and accounts receivable with 918,651, 918,651,
49.83 - -
major amount found no devaluation after individual devaluation test 522.69 522.69
Other account receivable with individual minor amount but withdrawal bad 3,396,67 3,048,9 347,694.
0.18 89.76
debt provision independently 3.11 79.11 00
1,843,52 592,912 1,250,61
Total 100.00 32.16
7,056.90 ,174.95 4,881.95
(Continued)
Year-beginning
Book Balance Bad debt provision
Category Book
Proport Proport
value
Amount ion (%) Amount ion (%)
Other account receivable with individual major amount and withdrawal bad 921,478, 589,863 331,615,
49.72 64.01
debt provision independently 861.10 ,195.84 665.26
Other accounts receivable with minor amount and accounts receivable with 928,655, 928,655,
50.10 - -
major amount found no devaluation after individual devaluation test 830.83 830.83
Other account receivable with individual minor amount but withdrawal bad 3,396,67 3,048,9 347,694.
0.18 89.76
debt provision independently 3.11 79.11 00
1,853,53 592,912 1,260,61
Total 100.00 31.99
1,365.04 ,174.95 9,190.09
(2) Other account receivable classified according to age:
In RMB/CNY
2016-6-30 Year-beginning
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 1,085,070,521.37 58.86 1,103,554,538.35 59.54
1 to 2years 295,858,143.53 16.05 295,858,143.53 15.96
2 to 3years 172,621,681.78 9.36 172,621,681.78 9.31
Over 3 years 289,976,710.22 15.73 281,497,001.38 15.19
Total 1,843,527,056.90 100.00 1,853,531,365.04 100.00
(3) Accrual for bad debt provision
118
深圳南山热电股份有限公司 2016 年半年度报告全文
①Other account receivable with single major amount and withdrawal bad debt provision for single item
In RMB/CNY
Accruing
Other account receivable Book amount Bad debt provision Accrual reason
proportion(%)
Huiyang County Kangtai Industrial Company 14,311,626.70 14,311,626.70 100.00 Un-recover
Individual income tax 2,470,039.76 2,470,039.76 100.00 Un-recover
Un-recover the total
Shen Development Company 904,697,194.64 573,081,529.38 63.35
amount
Total 921,478,861.10 589,863,195.84 64.01
②Other account receivable with individual minor amount but withdrawal bad debt provision independently:
In RMB/CNY
Accruing
Other account receivable Book Balance Bad debt provision
proportion(%)
Dormitory amount receivable 2,083,698.16 1,736,004.16 83.31
Deposit receivable 1,312,974.95 1,312,974.95 100.00
Total 3,396,673.11 3,048,979.11 89.76
(4) Receivable from related parties
In RMB/CNY
proportion in
total balance
Relationship with the of other
Name of the company Year-end balance Age at year-end
Company account
receivable(%
)
Shen Development Subsidiary of the Company 933,397,371.58 1-3 years 50.63%
Within 1 year to over 3
Zhongshan Power Subsidiary of the Company 561,022,214.98 30.43%
years
Shen Investment Property Subsidiary of the Company 108,146,511.98 1-2 year 5.87%
Weimei Power Subsidiary of the Company 200,255,689.01 1-3 years 10.86%
Environment Protection
Subsidiary of the Company 7,233,701.10 1-2 years 0.39%
Co.,
SINGAPORE LTD Subsidiary of the Company 1,456,971.99 Over 3 years 0.08%
119
深圳南山热电股份有限公司 2016 年半年度报告全文
HONG KONG SYNDISOME Subsidiary of the Company 87,057.21 Over 3 years 0.00%
1,811,599,517.8
Total 98.27%
5
3. Long-term equity investment
(1) Category of long-term equity investment
In RMB/CNY
2016-6-30 Year-beginning balance
Impairme Impairme
Item Book Book
nt Book value nt Book value
Balance Balance
provision provision
691,982,849. 691,982,849. 691,982,849. 691,982,849.
Investment to subsidiary - -
76 76 76 76
Investment to joint venture and affiliate
- - - - - -
enterprise
691,982,849. 691,982,849. 691,982,849. 691,982,849.
Total - -
76 76 76 76
(2) Investment to subsidiary
In RMB/CNY
Impairment Impairment
Year-beginning Increased in Decreased in provision provision
Investee company 2016-6-30
balance
the Year the Year accrual in the Year-end
Year balance
Shenzhen Server 26,650,000.00 - - 26,650,000.00 - -
New Power 71,270,000.00 - - 71,270,000.00 - -
Zhongshan Power 410,740,000.00 - - 410,740,000.00 - -
Engineering Co., 6,000,000.00 - - 6,000,000.00 - -
Weimei Power 115,319,049.76 - - 115,319,049.76 - -
SINGAPORE
6,703,800.00 - - 6,703,800.00 - -
LTD
Environment
55,300,000.00 - - 55,300,000.00 - -
Protection Co.,
Shen
- - - - - -
Development
Shen Investment
- - - - - -
Property
120
深圳南山热电股份有限公司 2016 年半年度报告全文
Total 691,982,849.76 - - 691,982,849.76 - -
4. Operation revenue/operation cost
In RMB/CNY
Amount in Jan.- Jun. 2016 Amount in Jan.- Jun. 2015
Item
Revenue Cost Revenue Cost
Main business 142,039,101.44 166,953,311.54 172,227,786.19 217,322,254.11
Other business 15,947,661.65 - 9,860,763.58 36,089.91
Total 157,986,763.09 166,953,311.54 182,088,549.77 217,358,344.02
5. Supplement of cash flow statement
Amount in Jan.- Jun. Amount in Jan.- Jun.
Item
2016 2015
1. Net profit adjusted as cash flow from operation activities:
Net profit -40,756,989.33 -1,486,412.90
Add: Assets for impairment - -
Depreciation of fixed assets 5,041,783.76 7,816,237.71
Amortization of intangible assets 720,120.18 720,120.18
Amortization of long-term expenses to be amortized - -
Loss from disposal of fixed assets, intangible assets and other long-term
194,564.88 -
assets income)
Abandonment loss from fixed assets -
Financial expenses (income) 70,526,525.68 77,153,552.06
Decrease of inventory ( increased ) -558,403.95 -1,909,029.38
Decrease of operational receivable ( increased ) 88,283,021.55 211,798,431.12
Increase of operational payable ( decreased ) 44,700,848.96 -72,606,435.01
Other - -
Net cash flow from operation activities 168,151,471.73 221,486,463.78
2. Major investment and financing activities not involved with cash
income and expenses:
3. Net changes of cash and cash equivalent:
Ending balance of cash and cash equivalent 625,192,080.91 556,719,432.74
Less: Year-beginning balance of cash and cash equivalent 675,408,711.65 332,803,493.04
121
深圳南山热电股份有限公司 2016 年半年度报告全文
Net increase of cash and cash equivalent -50,216,630.74 223,915,939.70
In RMB/CNY
XIV. Supplementary information
1. Statement of non-recurring gains/losses
In RMB/CNY
Item Amount in Jan.- Jun. 2016 Amount in Jan.- Jun. 2015
Gains/losses from the disposal of non-current asset -203,276.08 17,323.58
Governmental subsidy calculated into current gains and losses, with
closely related with the normal business of the Company, excluding the
9,839,892.03 1,815,600.78
fixed-amount or fixed-proportion governmental subsidy according to
the unified national standard)
Switch-back of the impairment reserves of receivables that has
- -
impairment test independently
Natual gas import VAT refund - 43,717,420.50
Other non-operating income and expenditure except for the
1,961,448.64 191,808.55
aforementioned items
Subtotal 11,598,064.59 45,742,153.41
Impact on income tax 246,556.08 -
Impact on minority shareholders’ equity (post-tax) 1,737,656.57 13,197,584.46
Total 9,613,851.94 32,544,568.95
2. ROE and EPS
In RMB/CNY
EPS
Weighted average
Profit in the Period
ROE (%) Basic EPS Diluted EPS
Net profit attributable to shareholders of the listed
-9.29% -0.09 Not applicable
company
Net profit attributable to shareholders of the listed
-10.96% -0.11 Not applicable
company after deducting non-recurring gains and losses
122
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