Stock Codes: 000037, 200037
Stock Abbreviation: Shennan Power A, Shennan Power B Announcement No.: 2026-050
Shenzhen Nanshan Power Co., Ltd.
August 25, 2026
Section I Important Notes, Table of Contents and Interpretations
The Board of Directors, directors, and senior executives of the Company guarantee the authenticity, accuracy
and completeness of the contents of the semi-annual report, and bear individual and joint legal liabilities for any
false records, misleading statements or major omissions.
Kong Guoliang, Principal and Person in Charge of Accounting of the Company, Zhang Xiaoyin, Chief Finance
Officer of the Company, and Lin Xiaojia, Chief Accountant (accounting officer) of the Company, hereby declare
that they guarantee the authenticity, accuracy, and completeness of the financial report in this Semi-annual Report.
All the Company's directors have attended the board meeting for the review of this Semi-Annual Report.
The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into
share capital.
Any plans for the future or other forward-looking statements mentioned in this Semi-Annual Report shall not
be considered as absolute promises of the Company to investors. Therefore, investors are reminded to exercise
caution when making investment-related decisions.
This Semi-Annual Report is prepared in both Chinese and English. In case of any discrepancy in the
understanding of the two versions, the Chinese version shall prevail. Investors are advised to read the full text
of this Semi-Annual Report carefully.
Table of Contents
Documents Available for Reference
I. The original of the 2026 Semi-Annual Report with the signature of the Company's legal representative.
II. Financial statements signed and sealed by the Company's legal representative, Person in Charge of Accounting, Chief
Finance Officer, and Head of Accounting (accounting officer).
III. The originals of all the Company's documents and announcements that have been publicly disclosed in the
designated media during the Reporting Period.
IV. Place of reference: Office of the Board of Directors of the Company.
Interpretations
Content Refer to Definition
Company, the Company, Shennan Power, Listed
Refer to Shenzhen Nanshan Power Co., Ltd.
Company
Nanshan Thermal Power Station of Shenzhen
Nanshan Thermal Power Station Refer to
Nanshan Power Co., Ltd.
Shennan Power (Zhongshan) Electric Power Co.,
Shennan Power Zhongshan Company Refer to
Ltd.
Shenzhen Shennan Power Gas Turbine
Shennan Power Engineering Company Refer to
Engineering Technology Co., Ltd.
Shennan Power Environmental Protection Shenzhen Shennan Power Environmental
Refer to
Company Protection Co., Ltd.
Shennan Power Xiwan Energy (Zhongshan) Co.,
Shennan Power Xiwan Company Refer to
Ltd.
Shennan Power Energy Technology (Sichuan) Co.,
Energy Technology Company Refer to
Ltd.
Shennan Power Zhengmai Energy Technology
Shennan Power Zhengmai Energy Company Refer to
(Shenzhen) Co., Ltd.
Shennan Power Shangao Smart Energy
Smart Energy Company Refer to
(Shenzhen) Co., Ltd.
Xiefu Company Refer to Shenzhen Xiefu Energy Co., Ltd.
New Power Company Refer to Shenzhen New Power Industrial Co., Ltd.
Shenzhen Yuanzhi Ruixin New Generation
Yuanzhi Ruixin Information Technology Fund Refer to Information Technology Private Equity Investment
Fund Partnership (Limited Partnership)
Except as otherwise specifically described, the
RMB, RMB 10,000, and RMB 100 million Refer to monetary unit is RMB, RMB 10,000, and RMB
Reporting Period Refer to January 1, 2026 to June 30, 2026
Section II Company Profile and Financial Indicators
I. Company Profile
Shennan Power A,
Stock Name Stock Code 000037、200037
Shennan Power B
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name (in
Shenzhen Nanshan Power Co., Ltd.
Chinese)
Short name of the
Company in Chinese (if 深南电
any)
Company name (in
Shenzhen Nanshan Power Co., Ltd.
English, if any)
Legal Representative Kong Guoliang
II. Contact Information
Secretary of the Board of Directors Securities Representative
Name Zou Yi Lu Yindi
Address Building, OCT, Nanshan District, Building, OCT, Nanshan District,
Shenzhen City, Guangdong Province Shenzhen City, Guangdong Province
Tel. 0755-26003611 0755-26003611
Fax 0755-26003684 0755-26003684
E-mail investor@nspower.com.cn investor@nspower.com.cn
III. Other Information
Whether the registered address, office address and postal code, website, and email of the Company changed during the
Reporting Period
□ Applicable ? Not applicable
The registered address, office address and postal code, website, and email of the Company remained unchanged during
the Reporting Period. For details, please refer to the 2025 Annual Report.
Whether the media for information disclosure and the place where this Report is lodged changed during the Reporting
Period
□ Applicable ? Not applicable
The name and website of the stock exchange and media where the Company discloses its semi-annual report, and the
place where the semi-annual report is lodged remained unchanged during the Reporting Period. For details, please refer
to the 2025 Annual Report.
Whether other related information changed during the Reporting Period
□ Applicable ? Not applicable
IV. Key Accounting Information and Financial Indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of previous years
□ Yes ? No
Year-on-year change for
The Reporting Period Same period last year
the Reporting Period
Operating revenue (RMB) 201,808,302.33 166,389,954.25 21.29%
Net profit attributable to the
listed company’s 19,833,302.46 -21,739,509.64 191.23%
shareholders (RMB)
Net profit attributable to the
listed company’s
shareholders before non- 8,654,845.29 -28,327,017.35 130.55%
recurring gains and losses
(RMB)
Net cash generated
from/used in operating -113,682,778.37 -62,253,765.51 -82.61%
activities (RMB)
Basic earnings per share
(RMB/share)
Diluted earnings per share
(RMB/share)
Weighted average return Increased by 2.65
on equity percentage points
Changes from the end of
End of the Reporting the previous year to the
End of the previous year
Period end of the Reporting
Period
Total assets (RMB) 2,298,027,445.24 2,313,750,813.45 -0.68%
Net assets attributable to
the listed company’s 1,678,234,206.99 1,677,559,728.27 0.04%
shareholders (RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
accounting standards and Chinese accounting standards
□ Applicable ? Not applicable
During the Reporting Period, there were no differences in net profit and net assets in the financial reports disclosed by
the Company in accordance with both international accounting standards and Chinese accounting standards.
standards and Chinese accounting standards
□ Applicable ? Not applicable
During the Reporting Period, there were no differences in net profit and net assets in the financial reports disclosed by
the Company in accordance with both overseas accounting standards and Chinese accounting standards.
VI. Items and Amounts of Non-recurring Gains/Losses
?Applicable □Not applicable
Unit: RMB
Item Amount Description
Profit or losses on disposal of non-
This was mainly caused by the asset
current assets (including the portion
offset for provisions for asset
disposal of non-current assets.
impairment)
Government grants included in profit
and loss of the current period (except
for government subsidies that are
This was mainly because the
closely related to the Company's
Company received government
normal business operation, comply 17,099.11
grants related to income during the
with national policies and are enjoyed
Reporting Period.
in accordance with defined criteria,
and have a continuing impact on the
Company's profit or loss)
Gains/losses on fair-value changes in This was mainly attributed to the
financial assets and liabilities held by investment income obtained from
a non-financial enterprise, as well as holding structured deposits in
on disposal of financial assets and commercial banks and monetary
liabilities (exclusive of the effective funds, as well as the income from
portion of hedges that arise in the changes in fair value generated
Company’s ordinary course of during the holding period of financial
business) assets held for trading.
This was mainly caused by the
Non-operating revenue and
expenses other than the above
during the current period.
Less: Income tax effects 51,938.99
Minority equity effects (after tax) 230,296.98
Total 11,178,457.17
Particulars about other gains/losses that meet the definition of non-recurring gains/losses:
□ Applicable ? Not applicable
The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.
Explanation on the definition of non-recurring profit and loss items as recurrent profit and loss items in the Explanatory
Announcement No. 1 on Information Disclosure of Companies Publicly Issuing Securities - Non-recurring Gains/Losses
□ Applicable ? Not applicable
The Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive
Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or
Loss" as recurring profit or loss items.
Section III Discussion and Analysis of the Management
I. Principal Activities of the Company during the Reporting Period
In the first half of 2026, the cumulative total electricity consumption of the society totaled 5.0999 trillion kWh, a year-
on-year increase of 5.3%. In terms of electricity consumption by industry, the electricity consumption of the primary industry
was 71.1 billion kWh, a year-on-year increase of 4.9%. The electricity consumption of the secondary industry was 3.3057
trillion kWh, a year-on-year increase of 5.1%, among which the industrial electricity consumption was 3.2760 trillion kWh,
a year-on-year increase of 5.3%, and the electricity consumption of the high-tech and equipment manufacturing industry
was 600.8 billion kWh, a year-on-year increase of 9.8%. The electricity consumption of the tertiary industry was 991.6
billion kWh, a year-on-year increase of 8.0%, among which the electricity consumption of the charging and swapping
service industry and the Internet data service industry was 81.0 billion kWh and 49.4 billion kWh respectively, with growth
rates of 56.9% and 44.0% respectively. The electricity consumption of urban and rural residents was 731.5 billion kWh, a
year-on-year increase of 3.1%.
The main businesses of the Company cover electricity generation and sales, as well as comprehensive energy
services. By the end of the Reporting Period, the Nanshan Thermal Power Station had 3 sets of 9E gas-steam combined
cycle power generation units with a total installed capacity of 540MW. The power station is located in the power load center
of Shenzhen and serves as a peak-shaving power source in the region. During the Reporting Period, Nanshan Thermal
Power Station actively fulfilled its responsibility for stable power supply, strictly maintained safety standards, scientifically
coordinated gas and electricity matching, dynamically adjusted electricity marketing and fuel procurement strategies,
completed an on-grid power generation of 119 million kWh, purchased a total of 83 million kWh as an agent, and achieved
a medium and long-term contract power of 176 million kWh. Its subsidiary Shennandian Environmental Protection
Company fully expanded its electricity sales business and acted as an agent for a total of 27.19 million kWh for users. The
cumulative charging and discharging capacities of the Zhongshan Independent Energy Storage Station (Phase I) project
of Shennandian Xiwan Company were 50.67 million kWh and 45.39 million kWh respectively, and the cumulative mileage
of participation in frequency regulation was 2,215,830MW.
In the first half of 2026, focusing on the annual targets, the Company systematically promoted the market expansion,
project construction, and industrial landscape of its affiliates, actively expanded comprehensive energy service businesses
such as new energy and energy storage, continuously improved the integrated industrial chain of "investment, construction,
operation, management, and maintenance", and steadily enhanced the business synergy and value creation ability of the
entire comprehensive energy service chain. In terms of project construction and operation, Shennandian Xiwan Company
continued to optimize the operation efficiency of the Zhongshan Independent Energy Storage Station (Phase I) project,
and accumulated full-cycle management experience in energy storage projects, while efficiently promoting the construction
preparation of the Zhongshan Independent Energy Storage Station (Phases II and III) project, continuously expanding the
Company's energy storage industry layout. In terms of engineering and technical services, Shennandian Engineering
Company gave full play to its technological and resource accumulation advantages in the field of gas turbine power plant
engineering, and orderly implemented the relevant work of the operation and maintenance service project for the 2×450MW
gas combined cycle power station in Koh Kong Province, Cambodia. In terms of industrial investment layout, the Company
jointly established Shennandian Shangao Smart Energy (Shenzhen) Co., Ltd. with Shandong Hi-Speed (Shenzhen)
Investment Co., Ltd. as the core cooperation platform for both parties to conduct investment, operation, and management
in the fields of new energy and energy storage industries. Through the establishment of a specialized industrial cooperation
platform, industrial synergy and linkage were deepened, project development channels were broadened, and the industrial
chain layout was improved, empowering and advancing the momentum for the subsequent development of new energy
and energy storage businesses.
During the Reporting Period, the Company realized an operating income of RMB 201,808,300, a net profit attributable
to shareholders of the listed company of RMB 19,833,300, and earnings per share of RMB 0.0329.
The Company shall comply with the disclosure requirements for the Power Supply Industry as set out in the Guidelines
for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
II. Core Competitiveness Analysis
In recent years, affected by the macroeconomic conditions and common problems in the gas turbine electricity
generation industry, the main business of the Company - electricity generation has been in face of difficulties and
challenges. However, the basic core competitiveness formed through more than 30 years of operation and development,
the strong support of the Company's major shareholders, and the operation and management innovation adopted by the
Company's Board of Directors and Management have laid a solid foundation for the Company's continuous operation and
transformation and development. During the Reporting Period, the Company adhered to a prudent development philosophy,
firmed up its strategic belief, flexibly adjusted its operating strategies, carefully optimized resource allocation, successfully
overcame a series of development difficulties, and further consolidated and enhanced the Company's core competitiveness.
talents with innovative awareness and fighting spirit. By deepening human resource reform and building a performance-
oriented performance appraisal and incentive mechanism, the Company advocates and creates a management culture of
unity, struggle, innovation, and progress. Meanwhile, the Company vigorously promotes the construction of institutional
system, management system, and compliance system, adheres to standard management in accordance with laws and
regulations, scientific rigor, and high efficiency and orderliness, which lays a good foundation to deeply explore internal
potential and actively seek external opportunities through process-oriented, refined, and standardized management
orientation.
generation industry for over 30 years. Relying on its industry influence, it has gathered and cultivated a group of
professional technical experts and key talents, and holds rich practical experience in the construction and operation
management of gas-fired power plants. In order to adapt to the market-oriented reform of the power market in Guangdong
Province, the Company has set up a professional power marketing team, continuously optimized trading strategies and
marketing models, and has mature market-oriented operation capabilities of the electricity market. In addition, thanks to its
strong technical strength, Shennan Power Engineering Company provides comprehensive professional services such as
technical consultation, commissioning, and operation guarantee for dozens of gas-fired power stations at home and abroad;
the Company has successively undertaken the technical personnel training business of dozens of domestic and overseas
power plants. Backed up by high-quality training and a professional teaching team, the Company built a well-known
professional talent training base in the domestic gas turbine industry and established a good reputation and a professional
brand image in the industry.
innovation-driven development, has been steadily promoting technological innovation. Based on the self-owned
independent invention patents, utility model patents, and software copyrights, the Company jointly drafted and prepared
one national standard, offering strong support for the Company's high-quality development. During the Reporting Period,
the Company declared a total of two invention patents, six utility model patents, and one software copyright to the China
National Intellectual Property Administration, and five utility model patents and one software copyright were authorized.
The total number of authorized patents of the Company reached 51 (including 5 invention patents) and 14 software
copyrights, which greatly enhanced the Company's brand image and industry competitiveness.
effort to develop comprehensive energy service business, while fostering experience in the construction and operation of
the new energy and energy storage industries. Based on the construction and operation of projects such as energy storage
black start, photovoltaics, and MTC industrial and commercial energy storage, the construction and commissioning of
Zhongshan independent energy storage power station, and the implementation of integrated solar-storage-charging
projects, combined with the continuous expansion of off-site and overseas power station operation and maintenance
businesses in Qinghai, Hainan, Cambodia, etc., the Company has accumulated rich practical experience in the
construction, commissioning, and operation and maintenance of new energy and energy storage projects, and cultivated
a group of professional technical talents. Superimposing the talent reserves and technical advantages of the traditional
power industry, the Company has reserved sufficient technical and talent resources for the Company to deeply engage in
the comprehensive energy service field, laying a solid foundation.
gas as fuel. The CO2 emission in the flue gas is about 42% of that of coal-fired power plants, providing strong support for
the national "dual carbon" goals. The nitrogen oxide emissions of each of the Company's units are all within 15mg/m 3,
reaching the world's most advanced level.
III. Main Business Analysis
Overview
Please refer to the relevant content in "I. Main Businesses of the Company during the Reporting Period".
Year-on-year changes in key financial data
Unit: RMB
YoY
The Reporting
Same period last year change Reason for changes
Period
(%)
This was mainly due to the Company's
continued promotion of the strategic
layout of comprehensive energy
services, and the independent energy
Operating storage project of Shennan Energy
revenue Xiwan Company was put into
commercial operation and became
profitable, boosting the increase of
income from the comprehensive energy
service segment.
Cost of sales 137,515,768.78 162,096,776.61 -15.16%
This was mainly owing to the expansion
of comprehensive energy service
Selling
expense
in a year-on-year increase in selling
expenses.
Administrative
expense
This was mainly because the
independent energy storage project of
Finance costs 5,232,946.26 1,412,373.17 270.51%
Shennan Energy Xiwan Company was
completed and put into operation. The
interest of specific fixed asset loans
related to the project was recognized as
an expense instead of being capitalized,
resulting in a year-on-year increase in
interest expenses. Affected by the
declining market interest rates, interest
income decreased.
This was mainly because the
independent energy storage project of
Income tax Shennan Energy Xiwan Company
expense became profitable, resulting in an
increase in corresponding income tax
expenses.
R&D
Investment
This was mainly resulted from the rapid
growth of the comprehensive energy
Net cash service business. The performance
generated guarantee margin paid in the current
from/used in -113,682,778.37 -62,253,765.51 -82.61% period was approximately RMB 120
operating million, resulting in a year-on-year
activities increase in operating cash outflows and
a year-on-year decrease in net cash
flows from operating activities.
First, the existing monetary funds
deposited in commercial banks as
structured deposits decreased in the
current period, and the cash outflows
from investing activities decreased
accordingly; second, the equipment
Net cash
procurement and engineering payment
generated
for the construction of Phase I of the
from/used in 128,083,077.50 -222,110,234.68 157.67%
Company's Zhongshan independent
investing
energy storage project occurred
activities
intensively in the same period of last
year. The cash outflows of the project in
the current period decreased year-on-
year, affecting the year-on-year
increase in net cash flows from
investing activities.
This was mainly due to the Company's
Net cash optimization of its asset-liability
generated structure, reduction of its financing
from/used in -32,885,993.28 -82,535,939.48 60.16% scale, and decrease of cash paid for
financing debt repayment year-on-year, resulting
activities in a year-on-year increase in net cash
flows from financing activities.
This was mainly resulted from the
increase of the net cash flows from
Net increase in
investing activities year-on-year, which
cash and cash -18,608,519.10 -366,926,252.82 94.93%
caused the net increase in cash and
equivalents
cash equivalents to increase
accordingly.
Material changes in the composition or sources of the Company's profits during the Reporting Period
□ Applicable ? Not applicable
No material change was found in the composition or sources of the Company's profits during the Reporting Period.
Composition of operating income
Unit: RMB
The Reporting Period Same period last year
As % of As % of YoY change (%)
Amount operating Amount operating
revenue revenue
Total operating
revenue
By industry
Electricity 200,425,269.14 99.31% 162,292,199.47 97.54% 23.50%
Others 1,383,033.19 0.69% 4,097,754.78 2.46% -66.25%
Total 201,808,302.33 100.00% 166,389,954.25 100.00% 21.29%
By product
Electricity
generation and 140,852,547.67 69.79% 145,150,536.76 87.24% -2.96%
sales
Comprehensive
energy services
Others 1,383,033.19 0.69% 4,333,656.63 2.60% -68.09%
Offset upon
-9,110,726.44 -4.51% -10,192,599.22 -6.13% 10.61%
consolidation
Total 201,808,302.33 100.00% 166,389,954.25 100.00% 21.29%
By region (based on customer location)
Domestic 199,486,835.48 98.85% 166,389,954.25 100.00% 19.89%
Overseas 2,321,466.85 1.15% 100.00%
Total 201,808,302.33 100.00% 166,389,954.25 100.00% 21.29%
Industries, products, or regions that account for over 10% of the Company's operating income or operating profit
?Applicable □Not applicable
Unit: RMB
Gross YoY change YoY change
Operating YoY change in
Cost of sales profit in operating in gross
revenue cost of sales
margin revenue profit margin
By industry
Electricity 200,425,269.14 137,223,915.86 31.53% 23.50% -14.15% 30.02%
Others 1,383,033.19 291,852.92 78.90% -66.25% -87.06% 33.93%
Total 201,808,302.33 137,515,768.78 31.86% 21.29% -15.16% 29.28%
By product
Electricity
generation and 140,852,547.67 111,003,693.03 21.19% -2.96% -24.60% 22.62%
sales
Comprehensive
energy services
Others 1,383,033.19 291,852.92 78.90% -68.09% -87.60% 33.21%
Offset upon
-9,110,726.44 -9,072,194.33 10.61% -5.03%
consolidation
Total 201,808,302.33 137,515,768.78 31.86% 21.29% -15.16% 29.28%
By region (based on customer location)
Domestic 199,486,835.48 136,700,079.55 31.47% 19.89% -15.67% 28.89%
Overseas 2,321,466.85 815,689.23 64.86% 100.00% 100.00% 64.86%
Total 201,808,302.33 137,515,768.78 31.86% 21.29% -15.16% 29.28%
The Company's main business data for the last period adjusted according to the data at the end of the Reporting Period
after the statistics of the Company's principal business data was adjusted during the Reporting Period
□ Applicable ? Not applicable
IV. Analysis of Non-Core Businesses
?Applicable □Not applicable
Unit: RMB
Amount As % of total profit Reason Sustainable or not
This was mainly caused by
the investment income
obtained from holding The investment
transferable certificates of income recognized
deposits, structured by the Company
Investment income 17,140,509.64 51.08%
deposits, and monetary under the equity
funds, as well as the method is
investment income sustainable.
recognized by the Company
by the equity method.
This was mainly resulted
from the increase in income
from changes in fair value
Gains/losses on
changes in fair value assets held for trading by
the Company during the
current period.
This was mainly due to the
expected credit losses
based on the aging portfolio
according to the actual
Credit impairment
-2,159,157.71 -6.43% collection of accounts No
loss receivable, and
corresponding bad debt
provisions that have been
made.
This was mainly caused by
the asset disposal
Gains from disposal
of assets disposal of non-current
assets.
This was mainly caused by
Non-operating the recovery of historical
revenue legacy funds during the
current period.
Non-operating
expense
V. Analysis of Assets and Liabilities
Unit: RMB
End of the Reporting Period End of the previous year
Change in
As % of As % of Reason for any
percentage
Amount total Amount total significant change
(%)
assets assets
This was mainly because
Monetary the Company continued
assets to expand its
comprehensive energy
service business, and the
deposits for performance
guarantees increased in
the current period.
This was mainly because
the stock monetary funds
deposited in commercial
banks as structured
Trading deposits gradually
financial assets matured and were
redeemed during the
current period, resulting
in a decrease in financial
assets held for trading.
Notes
receivable
Accounts
receivable
Prepayments 27,031,243.97 1.18% 11,052,982.80 0.48% 0.70%
Other
receivables
Inventories 38,810,872.76 1.69% 37,972,909.48 1.64% 0.05%
This was mainly because
the settlement of
progress payments for
comprehensive energy
Contract assets 7,209,277.31 0.31% 21,441,671.72 0.93% -0.62% service projects was
completed in the current
period, resulting in a
corresponding decrease
in contract assets.
This was mainly due to
the increase in
transferable certificates
Other current of deposit deposited by
assets the Company in the
current period, which led
to an increase in other
current assets.
This was mainly because
the Company exited from
some of its external
equity investment
Long-term
projects in the current
equity 166,565,065.15 7.25% 196,827,515.83 8.51% -1.26%
period, resulting in a
investments
corresponding decrease
in the carrying amount of
long-term equity
investments.
Other equity
instrument 234,179,057.20 10.19% 234,179,057.20 10.12% 0.07%
investments
Investment
properties
Fixed assets 530,531,149.52 23.09% 544,902,436.89 23.55% -0.46%
Construction in
progress
Right-of-use
assets
Intangible
assets
Long-term
deferred 5,673,825.94 0.25% 6,567,159.05 0.28% -0.03%
expenses
Deferred tax
assets
Other non-
current assets
Short-term
borrowings
Accounts
payable
Contract
liabilities
This was mainly due to
the payment of the
previous year's annual
Employee performance-based
benefits 5,024,073.81 0.22% 24,759,553.78 1.07% -0.85% remuneration in the
payable current period, resulting
in a decrease in
employee benefits
payable.
Taxes payable 11,348,667.34 0.49% 8,531,798.19 0.37% 0.12%
Other payables 27,224,007.81 1.18% 33,323,386.05 1.44% -0.26%
Non-current
liabilities
maturing within
one year
Other current
liabilities
Long-term
borrowings
Lease liabilities 32,461,101.64 1.41% 24,668,020.16 1.07% 0.34%
Estimated
liabilities
Deferred
income
Deferred tax
liabilities
□ Applicable ? Not applicable
?Applicable □Not applicable
Unit: RMB
Item Beginning Gain/loss Cumula Impair Purchased in Sold in the Other Ending
amount on fair- tive fair- ment the current current period chang amount
value value allowa period es
changes in change nce for
the s the
Reporting charged current
Period to period
equity
Financial
assets
financial
assets
(excluding 643,644.40
derivative
financial
assets)
Derivative
financial
assets
Investmen
ts in other
debt
obligation
s
Investmen
ts in other 234,179,05 234,179,0
equity 7.20 57.20
instrument
s
non-
current
financial
assets
Subtotal
of 575,179,05 919,768,587. 1,048,168,134. 447,423,1
financial 7.20 91 27 55.24
assets
Investmen
t
properties
Productive
biological
assets
Others
Total of 575,179,05 919,768,587. 1,048,168,134. 447,423,1
the above 7.20 91 27 55.24
Financial
liabilities
Other changes
Not applicable
Whether there is any significant change to the measurement attributes of the major assets in the Reporting Period
□ Yes ? No
Item Closing balance (RMB) Opening balance (RMB)
Guarantee deposits, etc. 127,729,947.70 8,334,730.76
Co-managed account funds 4,619,341.40
Total 132,349,289.10 8,334,730.76
VI. Investments Analysis
?Applicable □Not applicable
Investment amount in the Reporting Investment amount of the same
Change (%)
Period (RMB) period of last year (RMB)
?Applicable □Not applicable
Unit: RMB
Profit
or
Prog
loss
ress Whet
Shar from Discl Discl
Inve Inve as of Esti her
Nam ehol Sour Inve inves osur osur
Main stme stme Prod the mate invol
e of ding ce of Part stme tmen e e
busi nt nt uct bala d ved
inves perc fund ner nt t in date inde
ness meth amo type nce retur in
tee enta s term the (if x (if
od unt shee ns litigat
ge curre any) any)
t ion
nt
date
perio
d
Shen Indu
nan strial
Pow and
er Shen com
Zhen zhen Limit merc Anno
Newl
gmai Ener Zhen ed ial unce
y 6,12 Self- July
Ener gy 51.0 gmai Long liabili regis ment
esta 0,00 fund No 02,
gy stora 0% Ener -term ty tratio No.:
blish 0.00 ed 2026
Tech ge gy com n 2026
ed
nolo Co., pany com -041
gy Ltd. plete
(She d on
nzhe May
n) 22,
Co., 2026
Ltd.
Shen Indu
nan Shan strial
Pow dong and
er Hi- com
New Anno
Shan Spee merc
ener Limit July unce
gao Newl d ial
gy 102, ed 2, ment
Sma y Self- (She regis
and 000, 51.0 Long liabili 2026 No.:
rt esta fund nzhe tratio No
ener 000. 0% -term ty , July 2026
Ener blish ed n) n
gy 00 com 24, -041,
gy ed Inve com
stora pany 2026 2026
(She stme plete
ge -044
nzhe nt d on
n) Co., July
Co., Ltd. 21,
Ltd. 2026
Total -- -- -- -- -- -- -- -- -- -- --
?Applicable □Not applicable
Unit: RMB
Reaso
Accu ns for
Cumul
mulati failure
ative
ve to
Amou realiz
actual achiev
nt ed
Fixed input e the Disclo Disclo
Invest Indust invest Projec Estim return
assets amou Sourc plann sure sure
Projec ment ry ed in t ated s by
invest nt by e of ed date index
t metho involv the progre return the
ment the funds progre (if (if
d ed Repor ss s end of
or not end of ss any) any)
ting the
the and
Period Repor
Repor estim
ting
ting ated
Period
Period return
s
Zhong
shan
Cuihe
ng
New Indep
Self?fu Annou
Area enden
nded ncem
Self- and ent
W/600 Yes energ 311.9 591.4 0.56% 0.00 applic 7,
build bank?f No.:
MWh y 2 3 able 2026
inanc 2026-
indep storag
ed 016
enden e
t
energ
y
storag
e
power
statio
n
(Phas
es II
and
III)
Total -- -- -- 311.9 591.4 -- -- -- -- --
(1) Securities Investments
□ Applicable ? Not applicable
The Company had no securities investment during the reporting period.
(2) Investments in Derivatives
□ Applicable ? Not applicable
The Company had no investments in derivatives during the Reporting Period.
□ Applicable ? Not applicable
The Company had no use of funds raised during the reporting period.
VII. Sale of Major Assets and Equity Interests
□ Applicable ? Not applicable
The Company did not sell any major assets during the Reporting Period.
□ Applicable ? Not applicable
VIII. Major Controlling and Joint-stock Companies
?Applicable □Not applicable
Major subsidiaries and joint-stock companies with an over 10% effect on the Company’s net profit
Unit: RMB10,000
Company Company Main Registered Total Net Operating Operating Net
name type business capital assets assets revenue profit profit
Shenzhen Technology
New Power development
Subsidiary 11,385 36,836.61 35,883.80 0.00 733.43 733.43
Industrial of waste
Co., Ltd. heat
utilization
(excluding
restricted
projects);
waste heat
power
generation;
gas turbine
power
generation;
investment
activities with
self-owned
funds.
Engineering
technical
consulting
services for
the
construction
of gas-steam
combined
cycle power
plants
(stations),
and
maintenance
and overhaul
of operating
equipment
for gas-
steam
combined
cycle power
Shenzhen
plants
Shennan
(stations);
Power Gas
engineering
Turbine Subsidiary 15,000 10,990.80 6,517.59 2,464.94 -359.99 -361.15
management
Engineering
services,
Technology
engineering
Co., Ltd.
technical
services,
power
generation
technical
services,
solar power
generation
technical
services,
energy
storage
technical
services,
electrical
equipment
repair,
general
equipment
repair, etc.
Gas turbine
Shennan
power
Power
generation,
(Zhongshan)
Subsidiary waste heat 74,680 67,798.77 -7,800.89 3,891.02 1,703.56 1,190.22
Electric
power
Power Co.,
generation,
Ltd.
power supply
and heat
supply
(excluding
heating pipe
network),
and leasing
of terminals,
oil depots
(excluding
refined oil,
hazardous
chemicals,
and
flammable
and
explosive
items) and
power
equipment
and facilities;
land use
right leasing;
non-
residential
real estate
leasing.
Note: The net profit of the subsidiary Shennan Power Zhongshan Company is mainly derived from the business
operations of the independent energy storage project of its subsidiary Shennan Power Xiwan Company.
Subsidiaries obtained or disposed of in the Reporting Period
?Applicable □Not applicable
Method of
obtaining
and
disposing of
Company name Effects on overall operation and business performance
subsidiaries
during the
Reporting
Period
Under the premise of ensuring the Company's daily operations
and capital safety, using self-owned funds to establish a
controlling subsidiary will not have an impact on the Company's
Shennan Power Zhengmai Energy Newly daily capital turnover and normal development of production and
Technology (Shenzhen) Co., Ltd. established operation. The company completed its industrial and
commercial registration on May 22, 2026, and has been stated
as the scope of the Company's consolidated financial
statements since that date.
Shennan Power Shangao Smart Energy (Shenzhen) Co., Ltd.
will serve as the core cooperation platform for the Company and
Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. to carry
out investment, operation, and management in the new energy
and energy storage industry fields. This will help enhance the
Company's market competitiveness and promote its
Shennan Power Shangao Smart Newly
transformational development. Under the premise of ensuring
Energy (Shenzhen) Co., Ltd. established
the Company's daily operations and capital safety, using self-
owned funds to establish a controlling subsidiary will not have
an impact on the Company's daily capital turnover and normal
development of production and operation. The company
completed its industrial and commercial registration on July 21,
consolidated financial statements since that date.
About the major controlling and joint-stock companies
Not applicable
IX. Structured Entities Controlled by the Company
□ Applicable ? Not applicable
X. Risks and Countermeasures
tremendous pressure from high fuel costs and outdated unit energy efficiency. The 9E units became profitable under the
competitive pressure from more efficient and lower-cost units. The Company will continue to strengthen the operation and
management of existing assets, actively respond to the requirements and changes of the power market, and make every
effort to improve the profitability and overall operating efficiency of main businesses. With Zhongshan Independent Energy
Storage Project as a starting point, the Company will coordinately promote comprehensive energy services and traditional
power generation businesses, actively explore diversified business models, and create better conditions for the sustainable
operation and healthy development of the Company.
superimposed. The Company will continue to strengthen the overall planning and coordination of safety management,
combine the risk characteristics and work requirements of each business segment, focus on prominent problems and
difficulties, efficiently analyze the root causes, and formulate practical solutions to ensure that safety management
conforms to business development needs and effectively prevents various safety risks. In response to the aging of power
generation equipment, the Company will scientifically prepare maintenance and technological transformation plans, and
apply supporting funds and technical resources to continuously improve the maintenance and governance level of
equipment. Facing new risks brought by new equipment and new technologies in the process of transformation, the
Company will strengthen safety technical training, improve control measures, reinforce the accountability of production
safety, and ensure the safe and stable operation of production facilities. Meanwhile, the Company will further strengthen
training and emergency capability building to ensure that the "five in-places" of production safety responsibilities,
management, input, training, and emergency rescue are achieved, avoid any safety accidents due to human factors within
the Company's system, and continue to play the supporting role of a peak-shaving power source.
the international fuel market and the pricing strategies of existing suppliers. In the first half of 2026, affected by geopolitical
conflicts in the Middle East, the maritime passage through the Strait of Hormuz was blocked, and the natural gas
procurement presented a severe "tight volume and high price". In addition, the Company's relatively single gas source
structure has adversely affected the stability of gas supply, the flexibility of gas volume coordination, and the economy of
gas prices. With the improvement of trading rules in the electricity spot market, the increase in capacity pricing, and the
successive commissioning of power sources in areas surrounding Shenzhen, higher requirements have been placed on
the stability and flexibility of natural gas supply for electricity production. In face of the aforesaid conditions, the Company
will continue to optimize upstream cooperation relationships, coordinate all parties concerned to ensure the gas supply
given the single gas source, and try its best to reduce natural gas procurement costs while ensuring the gas demand for
electricity production.
Shenzhen Municipal Planning and Natural Resources Bureau about the Notice of the Municipal Planning and Natural
Resources Bureau on Issuing the Shenzhen 2026 Annual Land Preparation Plan (hereinafter referred to as the Land
Preparation Plan). According to the Land Preparation Plan and appendixes thereof, the land reserve and related contents
of the Nanshan Thermal Power Station affiliated with the Company are still within the Shenzhen 2026 Annual Land
Preparation Plan, with no material change from the contents stated in the land preparation plans disclosed in recent years.
The Company will continue to contact relevant authorities to get a clear picture, conduct in-depth discussions with legal
counsel, keep monitoring and timely report our opinions and demands to relevant government departments, and safeguard
the legitimate rights and interests of the listed company and all shareholders.
XI. Formulation and Implementation of Market Capitalization Management System and Valuation Enhancement
Plan
Whether the Company has formulated a market capitalization management system
□ Yes ? No
Whether the Company has disclosed its valuation enhancement plan.
□ Yes ? No
XII. The implementation of the action plan of "Double improvement of quality and return".
Whether the Company has disclosed an announcement on "Quality and Return Dual Enhancement" Action Plan.
□ Yes ? No
Section IV Corporate Governance, Environment, and Society
I. Changes of Directors and Senior Executives of the Company
?Applicable □Not applicable
Name Position(s) Type Date Reason
Deputy General
Lin Yongzheng Employment February 2, 2026
Manager
Resignation upon
Du Wei Independent Director February 27, 2026 Personal reasons
expiration of term
Lin Yongzheng Director Elected February 27, 2026
Chen Yongchong Independent Director Elected February 27, 2026
Huang Qing Director Former May 13, 2026 Job adjustment
Gao Xi Director Elected May 13, 2026
II. Profit Distribution and Conversion of Capital Reserve into Share Capital during the Reporting Period
□ Applicable ? Not applicable
The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital for
half of the year.
III. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan (ESOP) or Other
Employee Incentives
□ Applicable ? Not applicable
None.
IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose
environmental information by law
?Yes □No
Number of enterprises on the list of enterprises required to
disclose environmental information by law
Search index for the Environmental Information
No. Name of enterprise
Disclosure Report
Legal Disclosure System of Enterprise Environmental
Nanshan Thermal Power Station of Shenzhen Information of Department of Ecology and Environment
Nanshan Power Co., Ltd. of Guangdong Province
https://www-app.gdeei.cn/gdeepub/front/dal/report/list
The Company shall comply with the disclosure requirements for the Power Supply Industry as set out in the Guidelines
for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Name of Type Name Numbe Distribu Dischar
Approv Excessi
the of of Way of r of tion of ge Discharge Total
ed total ve
Company major major dischar dischar dischar concent standards dischar
dischar dischar
or polluta pollut ge ge ge ration/i implemented ge
ge ge
Subsidiary nts ants outlets outlets ntensity
Centrali Within Subject to
zed the the
Shenzhen Nitrog "Shenzhen
Nitrog emissio Nansha
Nanshan en ＜15 17.03 686.25
en n from 3 n Blue" None
Power oxide mg/m? emission Tons tons
oxides boiler Therma
Co., Ltd. s standard (
chimne l Power
ys Station ＜15mg/m?)
Information on environmental accidents of the listed company
None
V. Social Responsibilities
In the first half of 2026, regardless of the challenges in production, operation, and management, the Company bravely
assumed social responsibilities through stabilizing power supply in face of unit aging, efficiency decline, and high costs, to
the best of its ability. In terms of production safety, the Company persistently tried its best to ensure safe and stable power
production, actively explored the establishment of a production safety management model adapted to transformation,
optimized and improved the internal production safety management system and mechanism, successfully carried out
various tasks of production safety, technical supervision, and innovation management, and achieved the "five-zero" goal
of production safety. In terms of environmental protection, the Company strictly observed national and local environmental
protection laws and regulations, consistently adhered to the development concept of clean power generation, effectively
implemented all environmental protection work, met environmental emission standards, and had no environmental pollution
accidents. In terms of care and support, the Company thoroughly implemented the decisions and deployments of the
central government on the rural revitalization strategy, carried out the designated assistance tasks of stationing in towns
and villages for rural revitalization, and dispatched a stationed assistant for such purpose. Meanwhile, the Company
actively played a role in consumption assistance. By purchasing poverty-alleviation agricultural products and other means,
the cumulative amount of consumption assistance reached over RMB 80,000 during the Reporting Period.
Section V Important Matters
I. Commitments of the Company’s de facto controller, shareholders, related parties and acquirers, as well as the
Company itself and other entities fulfilled in the reporting period or ongoing as of the end of the Reporting
Period
□ Applicable ? Not applicable
None.
II. Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related Parties for Non-
Operating Purposes
□ Applicable ? Not applicable
None.
III. Irregularities in the Provision of Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.
IV. Engagement and Disengagement of Independent Auditors
Whether the semi-annual financial report has been audited
□ Yes ? No
The semi-annual financial report was not audited.
V. Explanations by the Board of Directors Regarding the "Modified Audit Report" Issued by the Independent
Auditor for the Reporting Period
□ Applicable ? Not applicable
VI. Explanations by the Board of Directors Regarding the "Modified Audit Report" Issued for the Previous Year
□ Applicable ? Not applicable
VII. Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.
VIII. Litigation
Major litigation and arbitration matters
□ Applicable ? Not applicable
The Company had no major litigation or arbitration matters during the Reporting Period.
Other litigation matters
?Applicable □Not applicable
Amount Whether an
General involved estimated Decisions Execution of Disclosure Disclosure
Progress
information (RMB10,000 liability is and effects decisions date index
) recognized
Summary of
other
litigations
Standard
not meeting Recognized Filing,
No material Partially Not for special
the 1,194.92 for certain hearing or
impact executed applicable disclosure
disclosure litigation execution
not reached
standards
for major
litigations
IX. Punishments and Rectifications
□ Applicable ? Not applicable
None.
X. Credit Quality of the Company and its Controlling Shareholder and De Facto Controller
?Applicable □Not applicable
During the Reporting Period, neither the Company nor its largest shareholder failed to fulfill effective court judgments
or failed to repay large amounts of debts due, indicating good credit quality. During the Reporting Period, the Company
had no controlling shareholder or de facto controller.
XI. Major Related-Party Transactions
?Applicable □Not applicable
Obtai
Amou As %
nable
Type Conte nt of of Appro
Rela mark
of nt of relate total ved Over
tions et Disc
relate relate Pricin d- value trans the Meth
Relat hip Trans price Disclo losu
d- d- g party of all action appro od of
ed with action for sure re
party party princi transa same line ved settle
party the price same date inde
trans trans ple ction -type (RMB line or ment
Com -type x
action action (RMB trans 10,00 not
pany trans
s s 10,00 action 0)
action
s
Provi Energ Ann
Shen Rela
de y Mont oun
zhen ted Mark Not April
servic mana Fair 0.33 hly cem
MTC legal et 67.09 170 No applic 15,
es to geme value % settle ent
Co., pers price able 2026
relate nt ment No.:
Ltd. on
d servic 202
partie es 6-
s 026
Total -- -- 67.09 -- 170 -- -- -- -- --
Large-amount sales return in
None
detail
Given the actual situation in
the Reporting Period (if any)
The daily related-party transactions between the Company and the aforementioned
where an estimate had been
related parties conform to the actual needs of the Company's production, operation,
made for the total value of
and business development, and the actual transaction amounts are within the
continuing related-party
approved quota.
transactions by type to occur in
the Reporting Period
Reason for any significant
difference between the
transaction price and the Not applicable
market reference price (if
applicable)
□ Applicable ? Not applicable
During the reporting period, the Company had no related party transactions arising from the acquisition or sale of assets
or equity.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
During the reporting period, the Company had no related debt transactions.
□ Applicable ? Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business
with any related finance company or any other related parties.
□ Applicable ? Not applicable
The finance company controlled by the Company did not make any deposits, receive loans or credit from, and was not
involved in any other finance business with any related parties.
□ Applicable ? Not applicable
The Company had no other major related party transactions during the reporting period.
XII. Major Contracts and Execution thereof
(1) Entrustment
□ Applicable ? Not applicable
None.
(2) Contracting
□ Applicable ? Not applicable
None.
(3) Leases
□ Applicable ? Not applicable
During the reporting period, the Company had no leases.
?Applicable □Not applicable
Unit: RMB10,000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclos
ure date Guaran
Counte
of the Actual Actual tee for
Line of Type of Collater r Term of
announ occurre guarant Fulfilled a
Obligor guarant guarant al (if guarant guarante
cement nce ee or not related
ee ee any) ee (if e
on date amount party
any)
guarant or not
ee line
Total approved line Total actual
for external amount of external
guarantees in the 0 guarantees in the 0
Reporting Period Reporting Period
(A1) (A2)
Total approved line Total balance of
for external external
guarantees at the guarantees by the
end of the end of the
Reporting Period Reporting Period
(A3) (A4)
Guarantees provided by the Company to its subsidiaries
Disclos Guaran
Counte
ure date Actual Actual tee for
Line of Type of Collater r Term of
of the occurre guarant Fulfilled a
Obligor guarant guarant al (if guarant guarante
announ nce ee or not related
ee ee any) ee (if e
cement date amount party
any)
on or not
guarant
ee line
Shenzh
en New
Power April 15,
Industri 2026
al Co.,
Ltd.
Shenzh
en
Shenna
n
Power April 15,
Environ 2026
mental
Protecti
on Co.,
Ltd.
To
February
Shenzh 2035
en (The
Shenna actual
n maturity
Power date
April 15, Joint
Gas April subject to
Turbine 10,000 30, the No No
May 7, 1 guarant
Engine 2026 agreed
ering terms
Technol and
ogy condition
Co., s
Ltd. under the
letter of
guarante
e)
Shenna
n
Power
Energy
April 15,
Technol 4,500 0
ogy
(Sichua
n) Co.,
Ltd.
Total actual
Total approved line
amount of the
for the guarantees
guarantees to
to subsidiaries in 32,500 3,538.41
subsidiaries in the
the Reporting
Reporting Period
Period (B1)
(B2)
Total approved line Total balance of
for the guarantees the guarantees to
to subsidiaries at 32,500 subsidiaries by the 3,538.41
the end of the end of the
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclos
ure date Guaran
Counte
of the Actual Actual tee for
Line of Type of Collater r Term of
announ occurre guarant Fulfilled a
Obligor guarant guarant al (if guarant guarante
cement nce ee or not related
ee ee any) ee (if e
on date amount party
any)
guarant or not
ee line
Total actual
Total approved line
amount of the
for the guarantees
guarantees to
to subsidiaries in 0 0
subsidiaries in the
the Reporting
Reporting Period
Period (C1)
(C2)
Total approved line Total balance of
for the guarantees the guarantees to
to subsidiaries at subsidiaries by the
the end of the end of the
Reporting Period Reporting Period
(C3) (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee Total actual
line approved in guarantee amount
the Reporting 32,500 in the Reporting 3,538.41
Period Period
(A1+B1+C1) (A2+B2+C2)
Total approved Total guarantee
guarantee line at balance by the end
the end of the 32,500 of the Reporting 3,538.41
Reporting Period Period
(A3+B3+C3) (A4+B4+C4)
Total guarantee balance (A4+B4+C4)
as % of the Company’s net assets
Including:
Balance of guarantees provided for
shareholders, de facto controller and 0
their related parties (D)
Balance of debt guarantees provided
directly or indirectly for obligors with an 0
over 70% debt/asset ratio (E)
Amount by which the total guarantee
amount exceeds 50% of the Company’s 0
net assets (F)
Total of the three guarantee amounts
above (D+E+F)
Explanation of the situation in which the
guarantee liability occurs or there is
evidence that it may bear joint and
None
several repayment liability during the
reporting period in respect of unexpired
guarantee contracts (if any)
Explanation on the provision of external
guarantees in breach of the prescribed None
procedures (if any)
Note: 1. The Company convened the fifth meeting of the Tenth Session of the Board of Directors on April 13, 2026, which
reviewed and approved the Proposal on Applying for Comprehensive Credit Line for Financing and Providing Guarantees
for 2026, specifying that the Company will provide a maximum guarantee line of not more than RMB 325 million or other
equivalent foreign currencies (including financing guarantees and non-financing guarantees) in total for its holding
subsidiaries Shenzhen New Power Industrial Co., Ltd., Shenzhen Shennan Power Environmental Protection Co., Ltd.,
Shenzhen Shennan Power Gas Turbine Engineering Technology Co., Ltd., and Shennan Power Energy Technology
(Sichuan) Co., Ltd. for the year 2026 (from the date this proposal is approved by the 2025 Board of Directors to the
convening date of the 2026 Board of Directors). The quota can be used on a rolling basis within the validity period approved
by the Board of Directors. For details, please refer to the Announcement on Providing Guarantees for Holding Subsidiaries
in 2026 (Announcement No.: 2026-025) disclosed by the Company on Securities Times and CNINFO on April 15, 2026.
Up to the disclosure date of this report, the guarantees provided by the Company to Shenzhen New Power Industrial Co.,
Ltd., Shenzhen Shennan Power Environmental Protection Co., Ltd., and Shennan Power Energy Technology (Sichuan)
Co., Ltd. have not actually occurred.
Gas Turbine Engineering Technology Co., Ltd. is USD 5.1559 million. Based on the central parity rate of 6.8628 announced
on the official website of the People's Bank of China on April 30, it is equivalent to approximately RMB 35.3841 million. For
details, please refer to the Progress Announcement on Providing Guarantees for Holding Subsidiaries in 2026
(Announcement No.: 2026-033) disclosed by the Company on Securities Times and CNINFO on May 7, 2026.
Compound guarantees:
None
?Applicable □Not applicable
Unit: RMB10,000
Balance of entrusted
Unrecovered overdue
Product category Risk characteristics wealth management during
amount
the Reporting Period
Monetary market funds Low risk 3,400.05 0.00
High-risk entrusted wealth management where the Company, as a sole trustor, entrusts a financial institution to carry out
asset management, or invests in products with low security and poor liquidity
□ Applicable ? Not applicable
?Applicable □Not applicable
Nam Nam Book Appr Exec
Nam
e of e of valu aise Tran ution
Subj e of Relat Relat
the the e of d Appr sacti by
ect Cont the ed- ions Discl
com coun the valu aisal Prici on the Discl
matt ract appr party hip osur
pany terpa asse e of base ng price end osur
er of signi aisal trans with e
enter rty ts the date princ (US of e
the ng instit actio the inde
ing enter invol asse (if iples D the date
contr date ution n or Com x
into ing ved ts any) 10,0 Rep
act (if not pany
the into in invol 00) ortin
any)
contr the the ved g
act contr contr in Perio
act act the d
(RM contr
B act
(if 10,0
any) 00)
(if
any)
Oper
ation
and
Main
tena
nce
Servi
Shen ce
The
zhen Proje
contr
Shen ct of
act
nan 2×45
Botu has
Pow 0MW
m been
er Gas
Sako sign Anno
Gas Turbi
r Janu Not Not ed, Janu unce
Turbi ne Fair 10,4
Ener ary appli appli and ary ment
ne Com valu 05.6 No
gy 29, cabl cabl vario 30, No.:
Engi bine e 8
Com 2026 e e us 2026 2026
neeri d
pany tasks -004
ng Cycl
Limit of
Tech e
ed the
nolo Pow
proje
gy er
ct
Co., Plant
are
Ltd. in
progr
Koh
essin
Kong
g in
Provi
an
nce,
order
Cam
ly
bodi
man
a
ner
Cam Oper
acco
bodi ation
rding
a and
to
Bran Botu Main
the
ch, m tena
esta
Shen Sako nce Anno
blish
zhen r Servi Not Not unce
Marc Fair 10,4 ed April
Shen Ener ce appli appli ment
h 29, valu 05.6 No plan. 1,
nan gy Proje cabl cabl No.:
Pow Com ct of e e 2026
er pany 2×45 -014
Gas Limit 0MW
Turbi ed Gas
ne Turbi
Engi ne
neeri Com
ng bine
Tech d
nolo Cycl
gy e
Co., Pow
Ltd. er
Plant
in
Koh
Kong
Provi
nce,
Cam
bodi
a
Shen
zhen
Shen
nan
Pow Oper
er ation
Gas and
Turbi Main
ne tena
Engi nce
neeri Servi
ng ce
Tech Proje
nolo ct of
gy 2×45
Botu
Co., 0MW
m
Ltd.; Gas
Sako Anno
Cam Turbi
r Not Not unce
bodi ne Marc Fair April
Ener appli appli ment
a Com h 29, valu No 1,
gy cabl cabl No.:
Bran bine 2026 e 2026
Com e e 2026
ch, d
pany -014
Shen Cycl
Limit
zhen e
ed
Shen Pow
nan er
Pow Plant
er in
Gas Koh
Turbi Kong
ne Provi
Engi nce,
neeri Cam
ng bodi
Tech a
nolo
gy
Co.,
Ltd.
Note: The three contracts mentioned above are all related contracts for the Operation and Maintenance Service Project of
Engineering Company. The total contract amount of USD 208,113,545 is an estimated amount based on the operation and
maintenance cycle, and the actual amount is subject to the amount confirmed during the contract execution process. For
details, please refer to the relevant announcements disclosed by the Company on Securities Times and CNINFO.
(Announcement No.: 2026-001, 2026-004, 2026-014)
XIII. Reception of Researches, Communications, Interviews and other Activities during the Reporting Period
?Applicable □Not applicable
Object
Main points of Index of basic
Reception Place of Method of Type of object of
discussion and information of
time reception reception of reception receptio
information provided researches
n
Inquiry about the
Online Company's
All written
communicatio performance,
Value Online Institution/indi replies
May 8, 2026 n on the 11 operating measures,
Platform vidual provided by
network competitive
the Company
platform advantages, project
progress, etc.
Inquiry about the All received
Office Area of Company's dividend by the
the distribution, Company in
May 14, 2026 Field survey Individual 1
Company's progress of energy accordance
Headquarters storage projects, with laws and
etc. regulations
Inquiry about the
Company's
performance,
operating measures, All written
January - irm.cninfo.co energy storage replies
Written inquiry Individual 19
June 2026 m.cn business layout, provided by
progress of the Company
investment matters,
land reserve
progress, etc.
Inquiry about the
Company's
production and
operation, All replied by
Telephone Telephone performance, the Company
January -
communicatio communicatio Individual 14 development of in accordance
June 2026
n n comprehensive with laws and
energy service regulations
business, land
reserve progress,
etc.
XIV. Other Significant Events
?Applicable □Not applicable
Land-related matters of Nanshan Thermal Power Station: In March 2026, the Company again learned from the official
website of the Shenzhen Municipal Planning and Natural Resources Bureau about the Notice of the Municipal Planning
and Natural Resources Bureau on Issuing the Shenzhen 2026 Annual Land Preparation Plan. According to such notice
and its appendixes, the land reserve and related contents of the Nanshan Thermal Power Station affiliated with the
Company are still within the Shenzhen 2026 Annual Land Preparation Plan, with no material change from the contents
stated in the land preparation plans disclosed in recent years. (For details, please refer to the relevant announcements
disclosed by the Company on Securities Times and CNINFO, Announcement No.: 2026-013)
Except for the foregoing, the refund payable for the Company's "Project Technical Transformation Beneficiary Fund"
had no progress or change during the Reporting Period.
XV. Significant Events of the Company's Subsidiaries
□ Applicable ? Not applicable
Section VI. Share Changes and Shareholders
I. Share Changes
Unit: share
Before the Change Increase/decrease during the period (+, -) After the Change
Shares
Shares as
as dividen
dividen d
Proporti New d conver Proporti
Quantity Others Subtotal Quantity
on issues conver ted on
ted from
from capital
profit reserv
es
I. Restricted
shares
owned
shares
held by the
state-owned
legal
persons
domestic
holdings
Includin
g: shares
held by
domestic
legal
persons
Shares
held by
domestic
natural
persons
shareholding
Includin
g: shares
held by
overseas
legal
persons
Shares
held by
overseas
natural
persons
II.
Unrestricted 602,762,596 602,762,596
% %
shares
denominated
ordinary
shares
Domestically
listed foreign
shares
shares listed
overseas
III. Total 100.00 100.00
shares % %
Reasons for the change
□ Applicable ? Not applicable
Approval of the change
□ Applicable ? Not applicable
Transfer of share ownership
□ Applicable ? Not applicable
Progress on any share repurchases
□ Applicable ? Not applicable
Progress on reducing the repurchased shares by means of centralized bidding
□ Applicable ? Not applicable
Effects of the share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s
ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□ Applicable ? Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed
□ Applicable ? Not applicable
□ Applicable ? Not applicable
II. Issuance and Listing of Securities
□ Applicable ? Not applicable
III. Number of Shareholders and Shareholdings of the Company
Unit: share
Number of ordinary Total number of preferred
shareholders as at the shareholders with restoration of
end of the Reporting voting rights at the end of the
Period reporting period (if any) (see Note 8)
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through
refinancing)
Number of Shares in pledge,
Increase/de
Sharehol shares Restrict marked or frozen
Name of Nature of crease in Unrestrict
ding held by the ed
shareholde sharehol the ed shares
percenta end of the shares
r der Reporting held Status Quantity
ge Reporting held
Period
Period
Hong Kong
Foreign
Nam Hoi 92,123,24 Not
legal 15.28% 92,123,248 0 0 0
(Internation 8 applicable
person
al) Limited
Shenzhen State-
Guangju owned 73,666,82 Not
Industrial legal 4 applicable
Co., Ltd. person
Shenzhen State-
Energy owned 65,106,13 Not
Group Co., legal 0 applicable
Ltd. person
Domestic
Not
Zeng Ying natural 1.19% 7,159,600 0 0 7,159,600 0
applicable
person
CHINA
MERCHAN
Foreign
TS Not
legal 0.87% 5,230,654 -231,500 0 5,230,654 0
SECURITI applicable
person
ES (HK)
LIMITED
LISHERYN Foreign
Not
ZHANMIN natural 0.72% 4,320,000 156,400 0 4,320,000 0
applicable
G person
BOCI
Foreign
SECURITI Not
legal 0.72% 4,310,566 0 0 4,310,566 0
ES applicable
person
LIMITED
GUOTAI
JUNAN
SECURITI Foreign
Not
ES legal 0.68% 4,110,632 -1,269,248 0 4,110,632 0
applicable
（HONG person
KONG）
LIMITED
Domestic
Huang Not
natural 0.64% 3,866,500 0 0 3,866,500 0
Yilong applicable
person
Zhang Domestic Not
Yuexiang natural applicable
person
Strategic investor or
general legal person
becoming a top-10
None
ordinary shareholder
due to rights issue (if
any) (see note 3)
Related or acting-in-
(International) Limited.
concert parties among
the shareholders above
or act in concert.
Involvement of any
shareholder above in
entrusting/being
None
entrusted with voting
rights or waiving voting
rights
Special account for
share repurchases (if
any) among the top 10 None
shareholders (see note
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and
shares locked by senior management)
Type
Name of shareholder Unrestricted shares held by the end of the Reporting Period
Type Quantity
Domestica
Hong Kong Nam Hoi lly listed 92,123,24
(International) Limited foreign 8
stock
RMB-
denominat
Shenzhen Guangju 73,666,82
Industrial Co., Ltd. 4
ordinary
stock
RMB-
denominat
Shenzhen Energy 65,106,13
Group Co., Ltd. 0
ordinary
stock
Domestica
lly listed
Zeng Ying 7,159,600 7,159,600
foreign
stock
Domestica
CHINA MERCHANTS
lly listed
SECURITIES (HK) 5,230,654 5,230,654
foreign
LIMITED
stock
Domestica
lly listed
LISHERYNZHANMING 4,320,000 4,320,000
foreign
stock
Domestica
BOCI SECURITIES
LIMITED
foreign
stock
Domestica
GUOTAI JUNAN
lly listed
SECURITIES（HONG 4,110,632 4,110,632
foreign
KONG） LIMITED
stock
RMB-
denominat
Huang Yilong 3,866,500 ed 3,866,500
ordinary
stock
Domestica
lly listed
Zhang Yuexiang 3,290,053 3,290,053
foreign
stock
Related or acting-in-
concert parties among
top 10 shareholders of 1. Shenzhen Energy Group Co., Ltd. holds 100% equity interest in Hong Kong Nam Hoi
unrestricted shares, as (International) Limited.
well as between top 10 2. It remains unknown to the Company that whether other social shareholders are related
shareholders of or act in concert.
unrestricted shares and
top 10 shareholders
Top 10 ordinary
shareholders involved
in securities margin None
trading (if any) (see
note 4)
Participation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders
of unrestricted tradable shares in refinancing business and lending shares
□ Applicable ? Not applicable
Changes to the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the
previous period due to refinancing lending/repayment
□ Applicable ? Not applicable
Whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company
conducted any promissory repo during the Reporting Period.
□ Yes ? No
The company's top 10 common stock shareholders and top 10 unrestricted common stock shareholders did not engage
in any repurchase transactions during the reporting period.
IV. Changes in Shareholdings of Directors and Senior Executives
□ Applicable ? Not applicable
There was no change in the shareholding of the Company's directors and senior executives during the Reporting Period.
Please refer to the 2025 Annual Report for details.
V. Changes in Controlling Shareholders or De Facto Controllers
If the Company previously disclosed that the actual controller was planning a change of control, which has not been
completed, please explain the progress of such change.
□ Applicable ? Not applicable
Change to the controlling shareholder in the Reporting Period
□ Applicable ? Not applicable
None.
Change of the de facto controller during the Reporting Period
□ Applicable ? Not applicable
None.
VI. Preference Shares
□ Applicable ? Not applicable
No Preference shares in the Reporting Period.
Section VII Bonds
□ Applicable ? Not applicable
Section VIII Financial Report
I. Independent Auditor’s Report
Whether the semi-annual report has been audited
□ Yes ? No
The semi-annual financial report of the Company was unaudited.
II. Financial Statements
Unit of the currency for the financial statements and the notes thereto: RMB
Prepared by: Shenzhen Nanshan Power Co., Ltd.
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 246,996,378.28 141,590,339.04
Settlement reserve
Interbank loans granted
Trading financial assets 213,244,098.04 341,000,000.00
Derivative financial assets
Notes receivable 400,000.00
Accounts receivable 109,320,305.12 109,831,397.29
Receivables financing
Prepayments 27,031,243.97 11,052,982.80
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 362,387,516.84 361,729,062.93
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 38,810,872.76 37,972,909.48
Including: Data resources
Contract assets 7,209,277.31 21,441,671.72
Assets held for sale
Current portion of non-current assets
Other current assets 302,711,134.68 266,262,387.12
Total current assets 1,308,110,827.00 1,290,880,750.38
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 166,565,065.15 196,827,515.83
Other equity instrument investments 234,179,057.20 234,179,057.20
Other non-current financial assets
Investment properties 1,248,174.70 1,331,453.08
Fixed assets 530,531,149.52 544,902,436.89
Construction in progress 3,283,591.43 3,113,338.75
Productive biological assets
Oil and gas assets
Right-of-use assets 36,824,287.82 28,785,337.19
Intangible assets 1,860,921.06 2,041,770.36
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term deferred expenses 5,673,825.94 6,567,159.05
Deferred tax assets 4,263,047.69 4,264,858.88
Other non-current assets 5,487,497.73 857,135.84
Total non-current assets 989,916,618.24 1,022,870,063.07
Total assets 2,298,027,445.24 2,313,750,813.45
Current liabilities:
Short-term borrowings 172,102,811.10 172,094,604.45
Borrowings from the central bank
Interbank loans obtained
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 27,353,787.90 42,661,594.09
Advances from customers
Contract liabilities 5,185,301.61 130,796.46
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 5,024,073.81 24,759,553.78
Taxes payable 11,348,667.34 8,531,798.19
Other payables 27,224,007.81 33,323,386.05
Including: Interest payable
Dividends payable 15,000,000.00 22,500,000.00
Handling charges and commissions
payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities maturing within
one year
Other current liabilities 896,949.44 2,425,298.89
Total current liabilities 259,271,140.29 291,267,842.65
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 165,631,166.72 168,421,492.31
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 32,461,101.64 24,668,020.16
Long-term payables
Long-term employee benefits payable
Estimated liabilities 364,945.00 364,945.00
Deferred income 38,740,507.31 41,913,447.41
Deferred tax liabilities 14,977,656.19 9,846,034.15
Other non-current liabilities
Total non-current liabilities 252,175,376.86 245,213,939.03
Total liabilities 511,446,517.15 536,481,781.68
Owners' equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 362,767,402.38 362,767,402.38
Less: Treasury stock
Other comprehensive income 31,060,128.85 31,064,057.20
Specific reserve 544,085.30 410,577.62
Surplus reserves 332,908,397.60 332,908,397.60
General risk reserves
Retained earnings 348,191,596.86 347,646,697.47
Total equity attributable to owners of the
parent company
Minority equity 108,346,721.10 99,709,303.50
Total owners’ equity 1,786,580,928.09 1,777,269,031.77
Total liabilities and owners' equity 2,298,027,445.24 2,313,750,813.45
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:
Zhang Xiaoyin Head of Accounting: Lin Xiaojia
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 19,051,233.12 23,174,572.46
Trading financial assets 213,244,098.04 341,000,000.00
Derivative financial assets
Notes receivable
Accounts receivable 61,744,388.17 42,375,469.95
Receivables financing
Prepayments 21,017,021.41 21,412,712.54
Other receivables 609,229,534.27 568,495,288.27
Including: Interest receivable
Dividends receivable 15,000,000.00 22,500,000.00
Inventories 36,025,768.04 36,421,637.94
Including: Data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 284,660,856.67 242,489,343.26
Total current assets 1,244,972,899.72 1,275,369,024.42
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 724,951,271.46 721,590,421.11
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 329,500,553.57 336,942,043.04
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets 10,610,930.37 1,811,770.63
Intangible assets 1,716,245.24 1,874,171.18
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term deferred expenses 5,673,825.94 6,567,159.05
Deferred tax assets
Other non-current assets 4,993,779.38 857,135.84
Total non-current assets 1,077,446,605.96 1,069,642,700.85
Total assets 2,322,419,505.68 2,345,011,725.27
Current liabilities:
Short-term borrowings 142,083,227.77 142,071,687.79
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 4,165,466.26 4,789,658.17
Advances from customers
Contract liabilities 130,796.46
Employee benefits payable 2,641,970.51 15,991,534.16
Taxes payable 10,469,444.01 6,898,103.90
Other payables 309,833,435.08 323,690,071.27
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities maturing within
one year
Other current liabilities
Total current liabilities 472,633,705.32 495,697,761.90
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 7,497,585.34
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 38,114,037.57 41,223,194.07
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 45,611,622.91 41,223,194.07
Total liabilities 518,245,328.23 536,920,955.97
Owners' equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 289,963,039.70 289,963,039.70
Less: Treasury stock
Other comprehensive income
Specific reserve 477,807.20 410,577.62
Surplus reserves 332,908,397.60 332,908,397.60
Retained earnings 578,062,336.95 582,046,158.38
Total owners’ equity 1,804,174,177.45 1,808,090,769.30
Total liabilities and owners' equity 2,322,419,505.68 2,345,011,725.27
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:
Zhang Xiaoyin Head of Accounting: Lin Xiaojia
Unit: RMB
Item First half of 2026 First half of 2025
I. Total operating revenue 201,808,302.33 166,389,954.25
Including: Operating revenue 201,808,302.33 166,389,954.25
Interest revenue
Premiums earned
Service fee and commission
income
II. Total operating costs 187,773,883.55 209,522,013.90
Including: Cost of sales 137,515,768.78 162,096,776.61
Interest expense
Service fee and commission
expense
Surrenders
Net claims paid
Net change in insurance
reserves
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 1,635,481.20 2,225,967.73
Selling expense 2,344,744.33 1,048,176.93
Administrative expense 33,344,820.84 34,186,284.20
R&D expense 7,700,122.14 8,552,435.26
Finance costs 5,232,946.26 1,412,373.17
Including: Interest expense 5,189,789.59 3,740,764.90
Interest revenue -166,746.53 -2,386,769.54
Add: Other income 3,266,675.89 3,313,058.58
Investment income ("-" for loss) 17,140,509.64 13,771,642.72
Including: Investment income
from associates and joint ventures
Income from the
derecognition of financial assets at
amortized cost
Exchange gains ("-" for loss)
Net gains on exposure hedges ("-"
for loss)
Gains from changes in fair value ("-
" for loss)
Credit impairment loss ("-" for loss) -2,159,157.71
Asset impairment loss ("-" for loss)
Gains from disposal of assets ("-"
for loss)
III. Operating profit ("-" for loss) 33,291,594.54 -24,890,625.83
Add: Non-operating income 263,914.26 0.00
Less: Non-operating expenses 270.20 92,279.19
IV. Total profit ("-" for total loss) 33,555,238.60 -24,982,905.02
Less: Income tax expense 5,148,197.51 53,667.86
V. Net profit ("-" for net loss) 28,407,041.09 -25,036,572.88
(I) By operating continuity
operations ("-" for net loss)
operations ("-" for net loss)
(II) By ownership
shareholders of the parent company ("-" 19,833,302.46 -21,739,509.64
for net loss)
VI. Other comprehensive income (net of
-3,928.35 2,719,216.40
tax)
Other comprehensive income
attributable to owners of the parent -3,928.35 2,719,216.40
company (net of tax)
(I) Other comprehensive income not
reclassified to gains/losses
benefit plans
not reclassified to gains/losses under the
equity method
investments in other equity instruments
from changes in own credit risk
(II) Other comprehensive income
-3,928.35
reclassified to gains/losses
reclassified to gains/losses under the
equity method
investments in other debt obligations
arising from the reclassification of
financial assets
investments in other debt obligations
translation of foreign currency- -3,928.35
denominated financial statements
Other comprehensive income
attributable to the minority shareholders
(net of tax)
VII. Total comprehensive income 28,403,112.74 -22,317,356.48
Total comprehensive income
attributable to owners of the parent 19,829,374.11 -19,020,293.24
company
Total comprehensive income
attributable to non-controlling interests
VIII. Earnings per share:
(I) Basic earnings per share 0.0329 -0.0361
(II) Diluted earnings per share 0.0329 -0.0361
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:
Zhang Xiaoyin Head of Accounting: Lin Xiaojia
Unit: RMB
Item First half of 2026 First half of 2025
I. Operating revenue 141,374,845.61 145,467,624.06
Less: Cost of sales 111,216,000.11 147,248,786.41
Taxes and surcharges 912,685.18 1,148,347.31
Selling expense 549,312.70 196,802.11
Administrative expense 22,994,587.50 24,209,669.19
R&D expense 5,781,090.02 6,740,933.81
Finance costs -1,974,236.28 -5,324,191.89
Including: Interest expense 3,401,800.09 3,275,257.75
Interest revenue -5,242,279.79 -8,601,235.68
Add: Other income 3,167,615.42 3,184,551.84
Investment income ("-" for loss) 9,597,915.44 7,829,332.02
Including: Investment income
from associates and joint ventures
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gains on exposure hedges ("-"
for loss)
Gains from changes in fair value ("-
" for loss)
Credit impairment loss ("-" for loss)
Asset impairment loss ("-" for loss)
Gains from disposal of assets ("-"
for loss)
II. Operating profit ("-" for loss) 15,304,581.64 -17,738,839.02
Add: Non-operating income
Less: Non-operating expenses 66,432.06
III. Total profit ("-" for total loss) 15,304,581.64 -17,805,271.08
Less: Income tax expense 6,187.80
IV. Net profit ("-" for net loss) 15,304,581.64 -17,811,458.88
(I) Net profit from continuing operations
("-" for net loss)
(II) Net profit from discontinued
operations ("-" for net loss)
V. Other comprehensive income (net of
tax)
(I) Other comprehensive income not
reclassified to gains/losses
benefit plans
not reclassified to gains/losses under the
equity method
investments in other equity instruments
from changes in own credit risk
(II) Other comprehensive income
reclassified to gains/losses
reclassified to gains/losses under the
equity method
investments in other debt obligations
arising from the reclassification of
financial assets
investments in other debt obligations
translation of foreign currency-
denominated financial statements
VI. Total comprehensive income 15,304,581.64 -17,811,458.88
VII. Earnings per share:
(I) Basic earnings per share 0.0254 -0.0295
(II) Diluted earnings per share 0.0254 -0.0295
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:
Zhang Xiaoyin Head of Accounting: Lin Xiaojia
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from the sale of commodities
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums in proceeds received on
original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, service fee, and commissions
received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates
Cash generated from other operating
activities
Subtotal of cash generated from
operating activities
Cash paid for commodities and
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments in cash for claims on original
insurance contracts
Net increase in interbank loans granted
Interest, service fee, and commissions
paid
Policy dividends paid
Cash paid to and for employees 79,460,941.24 60,121,803.88
Taxes paid 12,743,094.75 12,132,329.68
Cash used in other operating activities 134,408,727.65 9,480,912.54
Subtotal of cash used in operating
activities
Net cash generated from/used in
-113,682,778.37 -62,253,765.51
operating activities
II. Cash flows from investing activities:
Proceeds from disinvestment 29,999,995.08 8,698,892.26
Return on investment in cash 29,425,960.16 8,148,076.97
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 13,000.00 62,511,559.15
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from investing
activities
Payments in cash for the acquisition of
fixed assets, intangible assets and other 6,314,474.69 120,888,761.27
long-lived assets
Cash paid for investments 1,950,000.00
Net increase in pledged loans granted
Net payments in cash for the
acquisition of subsidiaries and other
business units
Cash used in other investing activities 193,645,193.91
Subtotal of cash used in investing
activities
Net cash generated from/used in
investing activities
III. Cash flows from financing activities:
Proceeds in cash from disinvestment
Including: Capital contributions by non-
controlling interests to subsidiaries
Borrowings raised in cash 97,154,742.83
Cash generated from other financing
activities
Subtotal of cash generated from financing
activities
Repayment of borrowings 1,289,801.14 175,558,036.22
Cash payments for distribution of
dividends or profit and interest
Including: Dividends and profits paid to
minority shareholders by subsidiaries
Cash used in other financing activities 2,292,033.43 2,142,680.00
Subtotal of cash used in financing
activities
Net cash generated from/used in
-32,885,993.28 -82,535,939.48
financing activities
IV. Effect of foreign exchange rates
-122,824.95 -26,313.15
changes on cash and cash equivalents
V. Net increase in cash and cash
-18,608,519.10 -366,926,252.82
equivalents
Add: Cash and cash equivalents,
beginning of the period
VI. Cash and cash equivalents, end of the
period
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:
Zhang Xiaoyin Head of Accounting: Lin Xiaojia
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from the sale of commodities
and rendering of services
Tax rebates
Cash generated from other operating
activities
Subtotal of cash generated from operating
activities
Cash paid for commodities and services 110,785,730.75 144,922,149.77
Cash paid to and for employees 49,979,310.11 37,070,418.47
Taxes paid 6,950,844.27 1,560,645.13
Cash used in other operating activities 65,539,768.97 6,775,403.82
Subtotal of cash used in operating activities 233,255,654.10 190,328,617.19
Net cash generated from/used in operating
activities
II. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment in cash 25,760,060.01 2,548,076.97
Net proceeds from the disposal of fixed
assets, intangible assets and other long-
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from investing
activities
Payments in cash for the acquisition of
fixed assets, intangible assets and other 190,216.51 2,050,686.91
long-lived assets
Cash paid for investments
Net payments in cash for the acquisition
of subsidiaries and other business units
Cash used in other investing activities 59,843,173.66 224,447,253.82
Subtotal of cash used in investing activities 60,033,390.17 226,497,940.73
Net cash generated from/used in investing
activities
III. Cash flows from financing activities:
Proceeds in cash from disinvestment
Borrowings raised in cash
Cash generated from other financing
activities
Subtotal of cash generated from financing
activities
Repayment of borrowings 145,558,036.22
Cash payments for distribution of
dividends or profit and interest
Cash used in other financing activities 115,516,057.17 21,854,159.41
Subtotal of cash used in financing activities 135,980,303.66 168,708,565.43
Net cash generated from/used in financing
-101,980,303.66 -152,708,565.43
activities
IV. Effect of foreign exchange rates
changes on cash and cash equivalents
V. Net increase in cash and cash
-18,023,339.34 -336,393,349.66
equivalents
Add: Cash and cash equivalents,
beginning of the period
VI. Cash and cash equivalents, end of the
period
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer:
Zhang Xiaoyin Head of Accounting: Lin Xiaojia
Current amount
Unit: RMB
First half of 2026
Equity attributable to owners of the parent company
Other equity
instruments Gen Total
Item Less: Other Minorit
Capital eral Retaine Ot owners’
Share Prefer Perp Treas compreh Specific Surplus y equity
reserve risk d her Subtotal equity
capital red etual Othe ury ensive reserve reserves
s rese earnings s
share bond rs stock income
rves
s s
I. Balance as at the end 602,762, 31,064, 410,57 1,677,55 99,709, 1,777,26
of the previous year 596.00 057.20 7.62 9,728.27 303.50 9,031.77
Add: Changes in
accounting policies
Correction of
previous error
Others
II. Balance at the 602,762, 31,064, 410,57 1,677,55 99,709, 1,777,26
beginning of the year 596.00 057.20 7.62 9,728.27 303.50 9,031.77
III. Changes in the -
current period ("-" for 3,928.3
decrease) 5
(I) Total comprehensive 19,833, 19,829,3 8,573,7 28,403,11
income 302.46 74.11 38.63 2.74
(II) Capital increased and
reduced by the owner
contributed by owners
holders of other equity
instruments
based payments included
in owners' equity
- - -
(III) Profit distribution 19,288, 19,288,4 19,288,4
surplus reserves
general risk reserves
- - -
(or shareholders)
(IV) Transfers within
owners’ equity
share capital) from
capital reserves
share capital) from
surplus reserves
reserves
benefit schemes
transferred to retained
earnings
income converted into
retained earnings
(V) Special reserves
current period 92.87 2.87 67 8.54
period 85.19 5.19 0 1.89
(VI) Others
IV. Balance at the end of 602,762, 31,060, 544,08 1,678,23 1,786,58
the current period 596.00 128.85 5.30 4,206.99 0,928.09
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin
Xiaojia
Amount for the previous period
Unit: RMB
First half of 2025
Equity attributable to owners of the parent company
Other equity
instruments Gen Total
Item Less: Other Minorit
Capital eral y owners
Share Prefer Perp Treas compreh Specific Surplus Retained Othe
reserve risk Subtotal equity ’ equity
capital red etual Othe ury ensive reserve reserves earnings rs
s rese
share bond rs stock income
rves
s s
I. Balance as at the end 602,762, 1,683,0 185,255, 22,543,
of the previous year 596.00 54.57 604.81 265.62
Add: Changes in
accounting policies
Correction of
previous error
Others
II. Balance at the 602,762, 1,683,0 185,255, 22,543,
beginning of the year 596.00 54.57 604.81 265.62
III. Changes in the - - - -
current period ("-" for 20,386,6 17,712, 3,297,0 21,009,
decrease) 17.38 420.14 63.24 483.38
- - - -
(I) Total comprehensive 2,719,2
income 16.40 09.64 293.24 63.24 356.48
(II) Capital increased and
reduced by the owner
contributed by owners
holders of other equity
instruments
based payments included
in owners' equity
(III) Profit distribution
surplus reserves
general risk reserves
(or shareholders)
(IV) Transfers within
owners’ equity
share capital) from
capital reserves
share capital) from
surplus reserves
reserves
benefit schemes
transferred to retained
earnings
income converted into
retained earnings
(V) Special reserves
current period 49.98 49.98 49.98
period 76.88 76.88 76.88
(VI) Others
,892. 2.26
IV. Balance at the end of 602,762, 3,049,3 1,307,8 164,868, 19,246,
the current period 596.00 78.71 73.10 987.43 202.38
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin
Xiaojia
Current amount
Unit: RMB
First half of 2026
Other equity instruments Other
Item Less: Total
Share Capital compre Specific Surplus Retained Oth
Preferr Perpetu Other Treasury owners’
capital reserves hensive reserve reserves earnings ers
ed al s stock equity
income
shares bonds
I. Balance as at the end of 602,762,59 289,963,0 410,577. 332,908, 582,046,1 1,808,090,
the previous year 6.00 39.70 62 397.60 58.38 769.30
Add: Changes in
accounting policies
Correction of
previous error
Others
II. Balance at the beginning 602,762,59 289,963,0 410,577. 332,908, 582,046,1 1,808,090,
of the year 6.00 39.70 62 397.60 58.38 769.30
- -
III. Changes in the current 67,229.5
period ("-" for decrease) 8 .43 85
(I) Total comprehensive 15,304,58 15,304,581
income 1.64 .64
(II) Capital increased and
reduced by the owner
contributed by owners
holders of other equity
instruments
payments included in
owners' equity
- -
(III) Profit distribution 19,288,40 19,288,403
reserves
- -
(or shareholders)
(IV) Transfers within owners’
equity
share capital) from capital
reserves
share capital) from surplus
reserves
reserves
benefit schemes transferred
to retained earnings
income converted into
retained earnings
(V) Special reserves 67,229.58
period 3.35 35
(VI) Others
IV. Balance at the end of the 602,762,59 289,963,0 477,807. 332,908, 578,062,3 1,804,174,
current period 6.00 39.70 20 397.60 36.95 177.45
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin
Xiaojia
Amount for the previous period
Unit: RMB
First half of 2025
Item
Share Other equity instruments Capital Less: Other Specific Surplus Retaine Othe Total
capital Preferr Perpetu reserves Treasury compre reserve reserves d rs owners’
Other stock hensive earnings equity
ed al
s income
shares bonds
I. Balance as at the end of 602,762,59 289,963,0 332,908, 622,717, 1,848,351,
the previous year 6.00 39.70 397.60 765.31 798.61
Add: Changes in
accounting policies
Correction of
previous error
Others
II. Balance at the beginning 602,762,59 289,963,0 332,908, 622,717, 1,848,351,
of the year 6.00 39.70 397.60 765.31 798.61
- -
III. Changes in the current 1,307,87
period ("-" for decrease) 3.10 58.88 .78
- -
(I) Total comprehensive
income 58.88 .88
(II) Capital increased and
reduced by the owner
contributed by owners
holders of other equity
instruments
payments included in
owners' equity
(III) Profit distribution
reserves
(or shareholders)
(IV) Transfers within owners’
equity
share capital) from capital
reserves
share capital) from surplus
reserves
reserves
benefit schemes transferred
to retained earnings
income converted into
retained earnings
(V) Special reserves
period 9.98 98
(VI) Others
IV. Balance at the end of the 602,762,59 289,963,0 1,307,87 332,908, 604,906, 1,831,848,
current period 6.00 39.70 3.10 397.60 306.43 212.83
Legal Representative: Kong Guoliang Person in Charge of Accounting: Kong Guoliang Chief Finance Officer: Zhang Xiaoyin Head of Accounting: Lin
Xiaojia
III. Company profile
Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as the "Company" or "this Company") is a joint stock
limited company reorganized from a foreign-invested enterprise and incorporated on November 25, 1993, with the approval
of the General Office of Shenzhen Municipal People's Government (SFBF [1993] No. 897).
With the approval of the Shenzhen Securities Management Office (Doc. SZBF [1993] No. 179), the Company issued
respectively on January 3, 1994. On July 1, 1994 and November 28, 1994, the RMB ordinary shares (A shares) and
domestically listed foreign shares (B shares) issued by the Company were successfully listed for trading on the Shenzhen
Stock Exchange.
The Company is mainly engaged in power production and sales and comprehensive energy services. The Company
is registered at No. 2097, Yueliangwan Avenue, Nanshan District, Shenzhen City, Guangdong Province, and
headquartered at16/F and 17/F, Hantang Building, OCT, Nanshan District, Shenzhen City, Guangdong Province.
These financial statements were approved for issue by the Board of Directors of the Company on August 21, 2026.
As of June 30, 2026, the subsidiaries in the scope of the consolidated financial statements of the Company are as
follows:
Shareholding
Name of subsidiary (enterprise) Remarks
percentage (%)
Shennan Power (Zhongshan) Electric Power Co., Ltd. (hereinafter referred to
as "Shennan Power Zhongshan Company")
Shenzhen Shennan Power Gas Turbine Engineering Technology Co., Ltd.
(hereinafter referred to as "Shennan Power Engineering Company")
Shenzhen Shennan Power Environmental Protection Co., Ltd. (hereinafter
referred to as "Shennan Power Environmental Protection Company")
Shenzhen Xiefu Energy Co., Ltd. (hereinafter referred to as "Xiefu Company") 50.00
Shenzhen New Power Industrial Co., Ltd. (hereinafter referred to as "New
Power Company")
Shennan Energy (Singapore) Pte. Ltd. (hereinafter referred to as "Singapore
Company")
Hong Kong Xingdesheng Co., Ltd. (hereinafter referred to as "Xingdesheng") 100.00
Shennan Power Xiwan Energy (Zhongshan) Co., Ltd. (hereinafter referred to
as "Shennan Power Xiwan Company")
Shennan Power Energy Technology (Sichuan) Co., Ltd. (hereinafter referred
to as "Energy Technology Company")
Shennan Power Zhengmai Energy Technology (Shenzhen) Co., Ltd.
(hereinafter referred to as "Shennan Power Zhengmai Energy Company")
Note: During the current period, the Company invested and established a controlling subsidiary, Shennan Power
Zhengmai Energy Technology (Shenzhen) Co., Ltd., which completed its industrial and commercial registration on May 22,
IV. Basis for preparation of financial statements
The Company prepares these Financial Statements based on the assumption of going concern, according to actual
transactions and events, in accordance with the Accounting Standards for Business Enterprises - Basic Standard and other
specific accounting standards, application guidance for accounting standards for business enterprises, interpretations of
accounting standards for business enterprises and other relevant regulations promulgated by the Ministry of Finance
(hereinafter collectively referred to as the "Accounting Standards for Business Enterprises"), and the disclosure-related
provisions of the Rules for the Information Disclosure and Compilation of Companies Offering Securities to the Public No.
The Company has no events or conditions that raise significant doubts about its ability to continue as a going-concern
ability for the twelve months following the end of the reporting period.
V. Significant accounting policies and accounting estimates
Based on actual production and operation characteristices, the Company has formulated a number of specific
accounting policies and accounting estimates in accordance with the relevant accounting standards for business
enterprises, mainly reflected in the provision for bad debts of receivables (see Section VIII, V, 11 (4)), inventories (see
Section VIII, V, 12), fixed assets (see Section VIII, V, 18), long-term deferred expenses (see Section VIII, V, 24), revenue
recognition and measurement (see Section VIII, V, 28), specific reserve (see Section VIII, V, 32), etc.
These Financial Statements comply with the requirements of the Accounting Standards for Business Enterprises, and
truly and completely reflect the consolidated and parent company's financial position of the Company as of June 30, 2026,
as well as the consolidated and parent company's operating results and cash flows for the half year of 2026 and other
relevant information.
The accounting year starts from January 1 to December 31 on the Gregorian calendar.
The operating cycle of the Company is 12 months, which serves as the criterion for classifying the liquidity of assets
and liabilities.
The Company uses RMB as the recording currency.
Item Importance criteria
Significant individually bad debt provisioned
Original carrying amount is greater than RMB 1,000,000.
receivables
Recovery or reversal of provision for bad
Amount of recovery or reversal of bad debts for a single account
debts of significant accounts receivable in the
receivable exceeds RMB 1,000,000.
current period
Write-off of significant receivables Write-off amount of a single account receivable exceeds RMB
Significant construction in progress Single amount is greater than RMB 5,000,000.
Significant provisions Single amount is greater than RMB 5,000,000.
The carrying amount of long-term equity investment in a single joint
Significant joint ventures and associates venture or associate accounts for 5% or more of the consolidated total
assets.
control
(1) Business combinations under common control
A business combination involving entities under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and
that control is not transitory.
The assets and liabilities (including goodwill arising from the acquisition of the acquiree by the ultimate controller)
acquired by the Company as the merging party in a business combination involving enterprises under common control are
measured at the carrying amounts of the acquiree in the consolidated financial statements of the ultimate controller at the
date of combination. The difference between the carrying amount of the net assets acquired in the combination and the
carrying amount of the consideration paid for the combination (or the total par value of shares issued) is adjusted to the
capital premium in the capital reserve; if the capital premium in the capital reserve is insufficient to be offset, the retained
earnings shall be adjusted accordingly.
(2) Business combinations not under common control
A business combination involving entities not under common control is a business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the combination.
The identifiable assets, liabilities, and contingent liabilities of the acquiree acquired by the Company as the acquirer
in a business combination not involving enterprises under common control are measured at fair value on the date of
acquisition. The difference by which the combination cost exceeds the fair value share of the identifiable net assets of the
acquiree acquired in the combination is recognized as goodwill. If the combination costs are less than the fair value share
of the identifiable net assets of the acquiree acquired in the combination, the fair value of the identifiable assets, liabilities
and contingent liabilities acquired in the combination, as well as the combination cost, shall be reviewed first. If, after the
review, the combination costs remain less than the fair value of the identifiable net assets of the acquiree acquired in the
combination, the difference shall be stated as the current non-operating revenue of the combination.
Directly related expenses incurred for the business combination are recorded in the current gains/losses when incurred;
transaction expenses for issuing equity securities or debt securities for the business combination are stated as the initial
recognition amount of the equity securities or debt securities.
(1) Scope of Consolidation
The scope of consolidation for the consolidated financial statements of the Company is based on the control, including
the Company and all subsidiaries controlled by the Company. The criteria for the Company to judge control are that the
Company has the power over the investee, enjoys variable returns by participating in the relevant activities of the investee,
and has the ability to use its power over the investee to affect its return amount.
(2) Procedures of Consolidation
The Company prepares consolidated financial statements based on the financial statements of the Company and its
subsidiaries, and according to other relevant information. When preparing the consolidated financial statements, the
Company treats the entire group as an accounting entity and reflects the overall financial position, operating results and
cash flows of the group in accordance with the recognition, measurement, and presentation requirements of the relevant
accounting standards for business enterprises and the unified accounting policies.
The accounting policies and periods adopted by all subsidiaries stated as the consolidation scope of the consolidated
financial statements are consistent with those of the Company. If the accounting policies and periods adopted by a
subsidiary are inconsistent with those of the Company, necessary adjustments shall be made in accordance with the
Company's accounting policies and periods in preparing the consolidated financial statements. For subsidiaries acquired
through business combinations not involving enterprises under common control, their financial statements shall be adjusted
based on the fair value of identifiable net assets on the acquisition date. For subsidiaries acquired through business
combination involving enterprises under common control, their financial statements shall be adjusted based on the carrying
amount of their assets and liabilities (including goodwill arising from the ultimate controller's acquisition of the subsidiary)
in the ultimate controller's financial statements.
The portion of a subsidiary's equity, current net gains/losses, and current comprehensive income attributable to
minority shareholders is presented separately under the equity item in the consolidated balance sheet, the net profit item
in the consolidated income statement, and the total comprehensive income item, respectively. If the current losses shared
by the minority shareholders of a subsidiary exceed the minority shareholders' share of the subsidiary's beginning equity,
the balance offsets the minority shareholders' equity.
During the Reporting Period, if a subsidiary or business is added due to a business combination under common control,
the beginning balance of the consolidated balance sheet is adjusted; the income, expenses, and profits of the subsidiary
or business from the beginning of combination to the end of the Reporting Period are stated as the consolidated income
statement; the cash flows of the subsidiary or business from the beginning of combination to the end of the Reporting
Period are stated as the consolidated cash flow statement, and the relevant items of the comparative statements are
adjusted simultaneously, as if the consolidated reporting entity has existed since the time when ultimate controlling party
starts to exercise control.
If the Company can exercise control over an investee under common control due to additional investment or other
reasons, adjustments are made as if the parties involved in the combination existed in current status when the ultimate
controlling party began to exercise control. The relevant gains/losses, other comprehensive income, and other changes in
net assets recognized from the later of the date of obtaining the original equity and the date when the combining party and
the combined party are under common control to the combination date for the equity investment held before obtaining
control of the combined party, reduce the beginning retained earnings or current gains/losses during the comparative
statement period respectively.
During the Reporting Period, if a subsidiary or business is added due to a business combination not under common
control, the beginning balance of the consolidated balance sheet is not adjusted; the income, expenses, and profits of the
subsidiary or business from the acquisition date to the end of the reporting period are stated as the consolidated income
statement; the cash flows of the subsidiary or business from the acquisition date to the end of the Reporting Period are
stated as the consolidated cash flow statement.
If the Company can exercise control over an investee not under common control due to additional investment or other
reasons, the equity of the acquiree held before the acquisition date is remeasured by the Company at the fair value of the
equity at the acquisition date, and the difference between the fair value and its book value is stated as the current
investment income. If the equity of the acquiree held before the acquisition date involves other comprehensive income
under the equity method and other changes in owners' equity other than net gains/losses, other comprehensive income,
and profit distribution, the other related comprehensive income and other changes in owners' equity are transferred to the
current investment income to which the acquisition date belongs, except for other comprehensive income arising from the
investee's remeasurement of changes in the net liabilities or net assets of the defined benefit plan.
① General treatment method
During the Reporting Period, if the Company disposes of a subsidiary or business, the income, expenses, and profits
of the subsidiary or business from the beginning of the period to the disposal date are stated as the consolidated income
statement; the cash flows of the subsidiary or business from the beginning of the period to the disposal date are stated as
the consolidated cash flow statement.
When control over an investee is lost due to the disposal of a portion of an equity investment or other reasons, the
remaining equity investment after disposal is remeasured by the Company at its fair value on the date of loss of control.
The difference between the sum of the consideration received for the disposal of the equity and the fair value of the
remaining equity, less the sum of the share of net assets and goodwill of the original subsidiary calculated continuously
from the acquisition date or combination date based on the original shareholding ratio, is stated as the investment income
in the period when control is lost. Other comprehensive income or other changes in owners' equity other than net
gains/losses, other comprehensive income, and profit distribution related to the equity investment in the original subsidiary
are transferred to current investment income when control is lost, except for other comprehensive income arising from the
investee's remeasurement of changes in the net liabilities or net assets of the defined benefit plan.
If the Company's shareholding ratio decreases due to capital injection by other investors into the subsidiary, resulting
in loss of control, accounting treatment is performed in accordance with the above-mentioned principles.
① Disposal of subsidiaries in stages
If the terms, conditions, and economic effects of multiple transactions involving the disposal of equity in a subsidiary
in stages until loss of control meet one or more of the following conditions, it usually indicates that the multiple transactions
are accounted for as a package of transactions:
a) The transactions are entered into either simultaneously or in contemplation of one another;
b) The transactions as a whole are necessary to achieve a complete commercial outcome;
c) The occurrence of one transaction is contingent on the occurrence of at least one other transaction;
d) A transaction is not economically viable when considered individually, but is economically viable when considered
together with the others.
If the transactions involving the disposal of equity investment in a subsidiary until loss of control belong to a package
of transactions, the Company shall account for the transactions as a single transaction involving the disposal of a subsidiary
and loss of control; however, the difference between the disposal consideration for each disposal before the loss of control
and the share of the subsidiary's net assets corresponding to the disposed investment is recognized as other
comprehensive income in the consolidated financial statements, and is transferred to the profit or loss of the period of
losing control.
If the transactions involving the disposal of equity investment in a subsidiary until loss of control do not belong to a
package of transactions, prior to the loss of control, accounting treatment is conducted in accordance with the policies on
the partial disposal of equity investment in a subsidiary without loss of control; upon the loss of control, accounting
treatment is conducted in accordance with the general treatment method for the disposal of a subsidiary.
The difference between the newly acquired long-term equity investment due to the purchase of minority equity by the
Company and the share of net assets of the subsidiary calculated continuously from the acquisition date (or combination
date) based on the newly added shareholding ratio, the share premium in the capital reserve under the consolidated
balance sheet is adjusted. If the share premium in the capital reserve is insufficient to absorb the difference, retained
earnings are adjusted.
The difference between the disposal proceeds obtained from the partial disposal of a long-term equity investment in
a subsidiary without losing control and the share of the subsidiary's net assets calculated continuously from the acquisition
date or combination date corresponding to the disposed long-term equity investment, the share premium in the capital
reserve under the consolidated balance sheet is adjusted. If the share premium in the capital reserve is insufficient to
absorb the difference, retained earnings are adjusted.
When the Company is a joint venturer in a joint arrangement, enjoys the assets related to the arrangement, and bears
the liabilities related to the arrangement, a joint operation constitutes.
The Company recognizes the following items related to its share of interests in a joint operation and accounts for the
same in accordance with the provisions of relevant accounting standards for business enterprises:
(1) Recognize the assets held separately by the Company and the jointly held assets according to the Company's
share;
(2) Recognize individually incurred liabilities and jointly incurred liabilities based on the Company's share;
(3) Recognize the revenue generated from the sale of the Company's share of the output of the joint operations;
(4) Recognize the Company's share of the revenue generated by the joint operation from the sale of output;
(5) Recognize individually incurred expenses and expenses of the joint operations based on the Company's share.
For the accounting policies of the Company's investments in joint ventures, please refer to Section VIII, V, (16) Long-
term Equity Investments.
Cash in the Company's cash flow statement refers to cash on hand and deposits that can be readily drawn on demand.
Cash equivalents in the cash flow statement refers to the investments with a holding period of no more than 3 months that
are highly liquid, readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value.
（1） Foreign Currency Transaction
Foreign currency transactions of the Company are converted into the functional currency at the spot exchange rate
on the transaction date at initial recognition. On the balance sheet date, monetary items denominated in foreign currencies
are converted into the functional currency at the spot exchange rate on the balance sheet date. The resulting exchange
differences are recognized directly in gains/losses for the current period, except for exchange differences arising from
specific foreign currency borrowings for the construction or production of assets qualifying for capitalization, which are
treated according to the principle of capitalization.
（2） Translation of Foreign Currency Financial Statements
When preparing consolidated financial statements, the Company converts the financial statements of overseas
operations into RMB., among which assets and liabilities in the foreign currency balance sheet are converted at the spot
exchange rate on the balance sheet date; shareholders' equity items, except for "undistributed profits", are converted at
the spot exchange rate at the time of the transaction; income and expense items in the income statement are converted at
the spot exchange rate on the transaction date. Upon disposal of an overseas operation, the exchange differences arising
from the translation of foreign currency financial statements related to the overseas operation are transferred from
shareholders' equity to profit or loss for the period of disposal. Cash flows in foreign currency are converted at the spot
exchange rate on the date the cash flows occur. The effect of exchange rate changes on cash is presented separately in
the cash flow statement.
（1） Recognition and Derecognition of Financial Instruments
The Company recognizes financial assets or financial liabilities when it becomes a party to financial instruments
contracts.
A financial asset (or a part of a financial asset, or a part of a group of similar financial assets) is derecognized, that is
removed from the balance sheet, when the following conditions are met: 1) The contractual rights to receive cash flows
from the financial asset have expired; 2) the rights to receive cash flows from the financial asset have been transferred, or
an obligation to pay the received cash flows in full without material delay to a third party under a "pass-through
arrangement" has been assumed; and substantially all the risks and rewards of ownership of the financial asset have been
transferred, or although substantially all the risks and rewards of ownership of the financial asset have neither been
transferred nor retained, the control over the financial asset has been relinquished.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled, or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability, with the difference recognized in the gains/losses for the current period.
Purchases or sales of financial assets in a regular manner are recognized and derecognized by accounting method
at the transaction date. The transaction date refers to the date on which the Company commits to purchase or sell the
financial asset.
（2） Classification and measurement of financial assets
At initial recognition, the Company's financial assets are classified into financial assets measured at amortized cost,
financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value
through gains/losses for the current period, based on the Company's business model for managing financial assets and
the contractual cash flow characteristics of the financial assets. The Company reclassifies all affected financial assets only
when it changes its business model for managing financial assets.
In determining the business model, the Company considers how the performance of the financial assets is evaluated
and reported to key senior executives, the risks affecting the performance of the financial assets and how they are managed,
and how relevant business managers are compensated. In evaluating whether the objective is to collect contractual cash
flows, the Company analyzes and judges the reasons for, timing, frequency, and value of sales before the maturity date of
the financial assets.
Financial assets are initially measured at fair value, while accounts receivable or notes receivable arising from the
sale of goods or provision of services that do not contain a significant financing component or do not consider financing
components not exceeding one year are initially measured at the transaction price.
For financial assets measured at fair value through gains/losses for the current period, related transaction costs are
directly recognized in the gains/losses for the current period. For other categories of financial assets, related transaction
costs are stated as their initially recognized amount.
The subsequent measurement of financial assets depends on their classification.
Financial assets are classified as those measured at amortized cost if both of the following conditions are met: ① The
business model for managing the financial asset is to collect contractual cash flows; ① the contract terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. Such financial assets are recognized for interest income by the effective interest method, and the gains/losses
arising from their derecognition, modification, or impairment are recognized gains/losses for the current period. The
Company's financial assets in this category mainly include monetary funds, accounts receivable, notes receivable, and
other receivables.
income
Financial assets are classified as those measured at fair value through other comprehensive income if both of the
following conditions are met: ① The Company's business model for managing the financial asset aims to collect contractual
cash flows and sell the financial asset; ① the contract terms of the financial asset specify that the cash flows generated on
the specific date that are solely payments of principal and interest on the principal amount outstanding. Such financial
assets are recognized for interest income by the effective interest method. Except for interest income, impairment losses,
and exchange differences which are recognized in profit or loss for the current period, other changes in fair value are
recognized in other comprehensive income. Upon derecognition of the financial asset, the cumulative gains/losses
previously recognized in other comprehensive income are reclassified from other comprehensive income to gains/losses
for the current period.
income
The Company irrevocably designates certain non-trading equity instrument investments as financial assets measured
at fair value through other comprehensive income. The Company only recognizes relevant dividend income (except for
those clearly recovered as part of the investment costs) in the gains/losses for the current period, and subsequent changes
in fair value are recognized in other comprehensive income without the need for impairment provision. Upon derecognition
of the financial asset, the cumulative gains/losses previously recognized in other comprehensive income are reclassified
from other comprehensive income to retained earnings. The Company's financial assets in this category are investments
in other equity instruments.
Except for the financial assets classified as those measured at amortized cost and those classified or designated as
financial assets measured at fair value through other comprehensive income as mentioned above, the Company classifies
the same as financial assets measured at fair value through current gains/losses. Such financial assets are subsequently
measured at fair value, and all changes in fair value are stated as the current gains/losses, except those related to hedge
accounting. The financial assets classified in this category by the Company mainly include trading financial assets.
The contingent consideration recognized by the Company in business merger not under the same control which
constitutes a financial asset is classified as the financial assets measured at fair value through current gains/losses.
（3） Classification, recognition and measurement of financial liabilities
Financial liabilities measured at fair value through current gains/losses include trading financial liabilities and derivative
financial liabilities, which are initially measured at fair value, and related transaction costs are stated as the current
gains/losses. Such financial liabilities are subsequently measured at fair value, and changes in fair value are stated as the
current gains/losses.
Upon derecognition, the difference between its book value and the consideration paid is stated as the current
gains/losses.
Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts payable, other
payables, long-term borrowings, bonds payable, and long-term payables, which are initially measured at fair value, and
related transaction costs are stated as the initial recognition amount.
Interest calculated using the effective interest method during the holding period is stated as current gains/losses.
Upon derecognition, the difference between the consideration paid and the book value of the financial liability is stated
as current gains/losses.
（4） Impairment of financial instruments
The Company considers all reasonable and supportable information, including forward-looking information, to estimate
the expected credit losses of financial assets measured at amortized cost and financial assets (debt instruments) measured
at fair value through other comprehensive income on an individual or portfolio basis. The expected credit losses are
measured on whether the credit risk of financial assets increases significantly since initial recognition.
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by the risk
of default. Credit loss refers to the difference between all contractual cash flows receivable under the contract (discounted
by the Company using the original effective interest rate) and all expected cash flows to be collected, i.e., the present value
of all cash shortfalls.
For all notes receivable, contract assets, accounts receivable, and lease receivables generated from daily operations
such as sale of goods and provision of services regulated by the income standard, the Company uses a simplified method
to measure the loss provision based on the expected credit loss over the entire lifetime; for other notes receivable,
receivables financing, and other receivables divided into portfolios, the Company calculates the expected credit loss
through the exposure at default and the expected credit loss rate within the next 12 months or over the entire lifetime, by
referring to historical credit loss experience, current conditions, and forecasts of future economic conditions.
Except for the other various receivables and temporary payments adopting the simplified measurement method and
purchased or originated credit-impaired financial assets mentioned above, the Company assesses whether the credit risk
of relevant financial instruments has increased significantly since initial recognition on the balance sheet date, and
measures their loss provisions, recognizes expected credit losses and changes.
amount and individual withdrawal for bad debts
The Company conducts an impairment test separately on receivables with a significant single amount and also
financial assets without impairment, including test in a portfolio of financial assets with similar credit risk characteristics.
Receivables for which impairment losses have been recognized in a single test are no longer stated as a portfolio of
receivables with similar credit risk characteristics for impairment testing.
For receivables with an insignificant single amount but possessing the following characteristics, such as receivables
that fall in disputes with the counterparty or are involved in litigation or arbitration; receivables for which contact with the
debtor has been lost and there is no third-party recovering person; receivables with obvious indications that the debtor is
likely unable to fulfill the repayment obligation, etc., a separate impairment test is conducted. If there is an objective
evidence that impairment occurs, an impairment loss is recognized and an impairment provision is accrued based on the
difference by which the present value of its future cash flows is lower than its book value.
risk portfolio
If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost by individual instruments, the
Company refers to historical credit loss experience, current conditions, and judgments on future economic conditions,
divides notes receivable, accounts receivable, other receivables, and contract assets into several portfolios based on credit
risk characteristics, and calculates expected credit losses on a portfolio basis.
Name Basis
Portfolio 1 Bank Acceptance Bills Portfolio
Portfolio 2 Receivables from Power Production and Sales
Portfolio 3 Receivables from Comprehensive Energy Services
Accounts Receivable, other Receivables and Contract Assets
Portfolio 4
Portfolio of Related Parties within the Consolidation
Portfolio 5 Margin, Deposit and Petty Cash Portfolio
Export Tax Rebate, Value-added Tax Refund upon Collection and
Portfolio 6
other Taxes Portfolio
Other Receivables and Temporary Payments Excluding the above
Portfolio 7
Portfolios
Where the Company no longer reasonably expects to recover the contractual cash flows of a financial asset in whole
or in part, the Company directly writes down the book balance of the financial asset. If the written-down financial asset is
subsequently recovered, it is recognized as a reversal of impairment loss in gains or losses for the period of recovery.
（5） Recognition and measurement of financial asset transfers
For any transaction on financial asset transfer, if the Company has transferred substantially all the risks and rewards
of ownership of the financial asset to the transferee, the financial asset is derecognized; if substantially all the risks and
rewards of ownership of the financial asset are retained, the financial asset is not derecognized; if the Company neither
transfers nor retains substantially all the risks and rewards of ownership of the financial asset, and has relinquished control
of the financial asset, the financial asset is derecognized and the resulting assets and liabilities are recognized; if the
control of the financial asset is not relinquished, the relevant financial asset is recognized to the extent of its continuing
involvement in the transferred financial asset, and the relevant liabilities are recognized accordingly.
If the transfer of a financial asset in its entirety satisfies the conditions for derecognition, the difference between the
sum of the consideration received for the transfer and the amount of the cumulative changes in fair value previously
recognized in other comprehensive income corresponding to the derecognized part (where the transferred financial asset
simultaneously meets the following conditions: ① the Company's business model for managing the financial asset aims to
collect contractual cash flows and sell the financial asset; ① the contractual terms of the financial asset stipulate that the
cash flows generated on specific dates are solely payments of principal and interest on the outstanding principal amount)
and the book value of the transferred financial asset at the date of derecognition is recognized in the current gains/losses.
If the transfer of a financial asset in part satisfies the conditions for derecognition, the entire book value of the
transferred financial asset is allocated between the derecognized part and the non-derecognized part based on their
respective relative fair values, and the difference between the sum of the consideration received for the transfer and the
amount corresponding to the derecognized part of the cumulative changes in fair value previously recognized in other
comprehensive income that shall be allocated to the derecognized part (where the transferred financial asset
simultaneously meets the following conditions: ① the Company's business model for managing the financial asset aims to
collect contractual cash flows and sell the financial asset; ① the contractual terms of the financial asset stipulate that the
cash flows generated on specific dates are solely payments of principal and interest on the outstanding principal amount)
and the allocated overall book value of the aforementioned financial asset is recognized in the current gains/losses.
Where continuing involvement is achieved by providing a financial guarantee for the transferred financial asset, the
asset resulting from continuing involvement is recognized at the lower of the book value of the financial asset and the
amount of financial guarantee. The amount of financial guarantee refers to the maximum amount of the consideration
received that the Company shall be required to repay.
（6） Conditions for Derecognition of Financial Liabilities
If the present obligations of a financial liability are fully or partially discharged, the financial liability or the respective
part thereof is derecognized. If the Company enters into an agreement with a creditor to replace an existing financial liability
with a new one, and the contractual terms of the new financial liability are substantially different from those of the existing
financial liability, the existing financial liability is derecognized, and the new financial liability is recognized at the same time.
If the Company makes substantial modifications to the contractual terms of an existing financial liability in whole or in
part, the existing financial liability or a part thereof is derecognized, and the financial liability with modified terms is
recognized as a new one.
Upon derecognition of a financial liability in full or in part, the difference between the book value of the derecognized
financial liability and the consideration paid (including any non-cash assets transferred out or new financial liabilities
assumed) is recognized in the current gains/losses.
If the Company repurchases in part a financial liability, the book value of the financial liability as a whole is allocated
on the repurchase date based on the relative fair values of the part that continues to be recognized and the derecognized.
The difference between the book value allocated to the derecognized part and the consideration paid (including any non-
cash assets transferred out or new financial liabilities assumed) is recognized in the current gains/losses.
（7） Methods to determine the fair value of financial assets and liabilities
For any financial instrument on the active market, its fair value is determined based on the quoted prices in the active
market. For any financial instrument not on an active market, valuation techniques are used to determine its fair value. In
valuation, the Company uses such techniques that are applicable in the current circumstances and supported by sufficient
available data and other information, selects inputs that are consistent with the characteristics of the asset or liability
considered by market participants in transactions involving the relevant asset or liability, and prioritizes the use of relevant
observable inputs. Unobservable inputs are used only when relevant observable inputs are unavailable or impractical to
obtain.
（8） The distinction between financial liabilities and equity instruments and related treatment methods
The Company distinguishes financial liabilities from equity instruments in the following principles: 1) If the Company
cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or another financial asset, that contractual
obligation meets the definition of a financial liability. Although some financial instruments do not explicitly include terms and
conditions imposing an obligation to deliver cash or another financial asset, they may indirectly create a contractual
obligation through other terms and conditions. 2) If a financial instrument must or may be settled in any of equity instruments
owned by the Company, it is necessary to consider whether the instrument owned by the Company used for the settlement
of such instrument serves as a substitute for cash or other financial assets, or is intended to give the holder of the instrument
a residual interest in the assets of the issuer after deduction of all its liabilities. In the former case, the instrument is a
financial liability of the issuer; while in the latter case, the instrument is an equity instrument of the issuer. In certain
circumstances, a financial instrument contract requires that the Company must or may settle the financial instrument using
its own equity instrument, where the amount of the contractual right or obligation is equal to the number of its own equity
instruments to be obtained or delivered multiplied by their fair value at settlement. Whether the amount of the contractual
right or obligation is fixed, or fluctuates entirely or partially based on changes in variables other than the market price of
the equity instruments owned by the Company (such as interest rates, the price of a certain commodity, or the price of a
certain financial instrument), the contract is classified as a financial liability.
In classifying the financial instruments (or components thereof) in the consolidated financial statements, the Company
considers all terms and conditions agreed upon between members of the Company and the holders of the financial
instruments. If the Company as a whole assumes an obligation due to the instrument to deliver cash, other financial assets,
or to settle in any other way that causes the instrument to become a financial liability, the instrument shall be classified as
a financial liability.
(1) Classification of inventories
The Company is mainly engaged in power production and sales, for which purpose its inventories are mainly materials
and supplies consumed during production or the provision of services, including fuel, raw materials, spare parts, and
maintenance equipment.
(2) Pricing method of inventories dispatched
Inventories are initially measured at cost upon acquisition and are valued by the specific identification method upon
issuance.
(3) Basis to determine the net realizable value for different categories of inventories
For finished goods, materials for sale, and other commodity inventories directly for sale, the net realizable value is
determined in the normal course of production and operation by the estimated selling price of the inventory less the
estimated selling expenses and related taxes; for material inventories requiring processing, the net realizable value is
determined in the normal course of production and operation by the estimated selling price of the finished products less
the estimated costs to be incurred upon completion, estimated selling expenses, and related taxes;
For inventories held to execute sales contracts or service contracts, the net realizable value is calculated based on
the contract price; if the quantity of inventories held exceeds the quantity ordered in the sales contracts, the net realizable
value of the excess inventories is calculated based on the general sales price.
By the end of the period, the inventory depreciation provision is withdrawn based on individual inventory items.
However, for inventories with a large quantity and a low unit price, the inventory depreciation provision is withdrawn based
on inventory categories; for inventories related to product series produced and sold in the same region, having the same
or similar final uses or purposes, and difficult to measure separately from other items, the inventory depreciation provision
is withdrawn on a consolidated basis.
After the withdrawal of the depreciation reserves for inventories, if the factors, which cause any write-down of the
inventories, have disappeared, causing the net realizable value of inventories is higher than its book value; the amount of
write-down shall be reversed from the original amount of depreciation reserve for inventories. The reversed amount shall
be included in the profits and losses of the current period.
(4) Inventory system of inventories
The perpetual inventory system is adopted.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by the one-off amortization method, and packaging materials are amortized by
the one-off amortization method.
（1） Contract assets
Contract assets refer to the Company's right to consideration in exchange for goods that has been transferred to
customers, where such right is conditioned on factors other than the passage of time. The Company's unconditional right
to receive consideration from the customers (i.e., depending solely on the passage of time) is separately presented as
receivables.
For the determination method and accounting treatment method of expected credit losses on contract assets, please
refer to Section VIII, Item V, (11, 4) Accounting Treatment of Accounts Receivable in Impairment of Financial Instruments.
（2） Contract liabilities
Liabilities of contracts refer to the Company's obligation to transfer goods to customers due to the consideration
received or receivable from customers.
Contract assets and contract liabilities under the same contract are presented by their net amounts.
The Company's assets related to contract costs include the costs for contract performance and contract acquisition.
Based on the liquidity, contract performance costs are presented in inventories and other non-current assets, while contract
acquisition costs are presented in other current assets and other non-current assets, respectively.
(1) Contract performance costs
Contract performance costs, namely the costs incurred by the Company to perform a contract, which fall out of the
scope of relevant accounting standards such as inventories, fixed assets, or intangible assets and satisfy all the following
conditions, are recognized as asset as contract performance costs: Such costs are directly related to a current or expected
contract, including direct labor, direct materials, manufacturing overheads (or similar costs), costs explicitly borne by the
customer, and other costs incurred solely for the contract; the costs generate or enhance resources of the Company that
will be used in satisfying performance obligations in the future; and the costs are expected to be recovered.
(2) Contract acquisition costs
If the incremental costs (i.e., costs that would not be incurred if the contract fails to be obtained) incurred by the
Company to obtain a contract are expected to be recovered, they are recognized as assets and amortized on the same
basis as the recognition of revenue from goods or services related to the assets, and stated as the current gains/losses. If
the amortization period of the assets does not exceed one year, they are stated as the current gains/losses when incurred.
Other expenditures incurred by the Company to obtain a contract are stated as the current gains/losses when incurred,
except those explicitly borne by the customer.
(3) Impairment of contract costs
If the carrying amount of an asset related to contract cost is higher than the difference between the following two items,
the Company makes an impairment provision for the excess and recognizes it as an asset impairment loss: ① The
remaining consideration that the enterprise expects to receive in exchange for the goods related to the asset; ① the cost
estimated to be incurred to transfer the related goods. After the impairment provision is made, if the factors of impairment
in previous periods change, resulting in the difference between the above two items higher than the carrying amount of the
asset, the previously recognized asset impairment provision is reversed and stated as the current gains/losses, while the
carrying amount of the asset after reversal shall not exceed the carrying amount of the asset on the reversal date assuming
no impairment provision is made.
(1) The Company classifies non-current assets or disposal groups that meet all the following conditions into
the held-for-sale category:
customary for sales of such assets or disposal groups in similar transactions;
commitment, and the sale is expected to be completed within one year. Where relevant regulations require approval from
the relevant competent authority or regulator of the Company before the sale can be made, approval has been obtained.
(2) The Company separates a component that can be separately distinguished and meets one of the following
conditions, and that component has been disposed of or classified into the held-for-sale category:
sole major business area; or
(3) Presentation method
The Company presents the non-current assets held for sale or assets in the disposal group held for sale separately
from other assets in the balance sheet, and presents the liabilities in the disposal group held for sale separately from other
liabilities. The non-current assets held for sale or assets in the disposal group held for sale and the liabilities in the disposal
group held for sale shall not be offset against each other, and shall be presented as current assets and current liabilities
respectively. The Company presents the gains/losses from continuing operations and those from discontinued operations
separately in the income statement. For non-current assets or disposal groups held for sale that fail to meet the definition
of discontinued operations, their impairment losses, reversal amounts, and disposal gains/losses shall be presented as
gains/losses from continuing operations. Operating gains/losses such as impairment losses and reversal amounts, and
disposal gains/losses of discontinued operations shall be presented as gains/losses from discontinued operations.
The Company's long-term equity investments mainly consist of investments in subsidiaries, associated enterprises,
and joint ventures.
(1) Judgment of Significant Influence and Common Control
The Company's equity investments that have a significant influence on the investee are investments in associated
enterprises. Significant influence refers to the power of the Company to participate in decisions on an investee's financial
and operating policies, but not to control or commonly control the formation of those policies.
The Company's equity investments in an investee over which it exercises common control with other joint venturers
and has rights to the net assets of the investee are investments in joint ventures. Common control refers to the shared
control over an arrangement in accordance with the relevant agreement, and decisions on relevant activities of the
arrangement must be made with the unanimous consent of the parties sharing the control. The Company's judgment of
common control is based on the collective control of the arrangement by all parties or a combination of parties, and
decisions on relevant activities of the arrangement must be unanimously agreed upon by the parties that collectively control
the arrangement.
(2) Accounting Treatment Method
The Company initially measures the acquired long-term equity investments at the initial investment cost.
For long-term equity investments acquired through business merger involving enterprises under common control, the
share of the book value of the merged party's net assets in the consolidated financial statements of the ultimate controlling
party on the date of merger is taken as the initial investment cost; if the book value of the merged party's net assets on the
date of merger is negative, the initial investment cost is determined as zero.
For long-term equity investment acquired through business combination not under the same control, the initial
investment cost shall be the consolidation cost.
Except for long-term equity investments formed by business merger, for long-term equity investments acquired by
cash payment, the actual purchase price paid and the expenses, taxes, and other necessary expenditures directly related
to the acquisition of the long-term equity investments are taken as the initial investment cost; for long-term equity
investments acquired by issuing equity securities, the fair value of the issued equity securities is taken as the investment
cost.
The Company's investments in subsidiaries are accounted for by the cost method in its separate financial statements.
When the cost method is adopted, long-term equity investments are valued at the initial investment cost. When additional
investments are made, the book value of the long-term equity investment cost is increased along with the fair value of the
costs paid for the additional investment and the related transaction costs incurred. Cash dividends or profits declared and
distributed by the investee are recognized as current investment income according to the entitled amount.
The Company's investments in joint ventures and associated enterprises are accounted for by the equity method.
When the equity method is adopted, if the initial investment cost of the long-term equity investment is greater than the
share of the fair value of the investee's identifiable net assets to which the Company is entitled at the time of investment,
the book value of the long-term equity investment is not adjusted; if the initial investment cost of the long-term equity
investment is less than the share of the fair value of the investee's identifiable net assets to which the Company is entitled
at the time of investment, the difference is adjusted to increase the book value of the long-term equity investment and
stated as the gains/losses for the period in which the investment is acquired.
For long-term equity investments subsequently measured by the equity method, during the holding period, the book
value of the long-term equity investment is increased or decreased in response to the changes to the owners' equity of the
investee. In recognizing the share of the investee's net profit or loss to which the Company is entitled, the net profit of the
investee is adjusted and recognized based on the fair value of the investee's identifiable assets at the acquisition of the
investment, in accordance with the Company's accounting policies and accounting periods, and following the offset of
unrealized internal transaction gains/losses generated from transactions that do not constitute a business with associated
enterprises and joint ventures attributable to the Company according to the entitled proportion (internal transaction losses
belonging to asset impairment losses are fully recognized). The net loss incurred by the investee recognized by the
Company is limited to reducing the book value of the long-term equity investment and other long-term equities that in
substance constitute a net investment in the investee to zero, except where the Company has an obligation to bear
additional losses.
For the long-term equity investment with equity method for subsequent measurement, the book value of the long-term
equity investment will increase or decrease with the change of the owner's equity of the invested entity.
For long-term equity investments accounted for by the equity method, other related comprehensive income originally
accounted for by the equity method is treated on the same basis as if the investee had directly disposed of related assets
or liabilities when the equity method is terminated, and the owners' equity recognized due to changes in other owners'
equity of the investee other than net gains/losses, other comprehensive income, and profit distribution is fully transferred
to current investment income when the equity method is terminated.
If the remaining equity after the disposal of partial equity is still accounted for by the equity method, the other related
comprehensive income originally accounted for by the equity method is treated on the same basis as if the investee had
directly disposed of related assets or liabilities and carried forward proportionately, and the owners' equity recognized due
to changes in other owners' equity of the investee other than net gains/losses, other comprehensive income, and profit
distribution is carried forward proportionately to current investment income.
If the common control or significant influence over an investee is lost due to the disposal of a part of equity, the
remaining equity after disposal is recognized as a financial asset, and the difference between the fair value and the book
value of the remaining equity on the date of loss of common control or significant influence is stated as the current
gains/losses.
If the control over an investee is lost due to the disposal of long-term equity investments in part, and the remaining
equity after disposal may help exercise common control or exert significant influence over the investee, it is instead
accounted for by the equity method, the difference between the book value of the disposed equity and the disposal
consideration is stated as investment income, and the remaining equity is adjusted as if it had been accounted for by the
equity method since its acquisition; if the remaining equity after disposal cannot help exercise common control or exert
significant influence over the investee, it is recognized as a financial asset, the difference between the book value of the
disposed equity and the disposal consideration is stated as investment income, and the difference between the fair value
and the book value of the remaining equity on the date of loss of control is stated as the current gains/losses.
For all transactions involving the disposal of equity by stage until loss of control, if they fall out of the package of
transactions, each transaction is accounted for separately; if they fall in the package, each transaction is accounted for as
a single transaction involving the disposal of a subsidiary and loss of control. The difference between the disposal
consideration for each transaction before the loss of control and the book value of the long-term equity investment
corresponding to the disposed equity is recognized as other comprehensive income and transferred to the gains/losses of
the period in which control is lost when control is lost.
An investment property is real estate property purchased with the intention of earning a return on the investment either
through rental income, the future resale of the property, or both, including leased land use rights, land use rights held and
prepared for transfer after appreciation, and leased buildings (including buildings built or developed for lease after
completion and buildings under construction or development for lease in the future).
The Company measures existing investment properties by the cost model. For investment property buildings for lease
measured by the cost model, the same depreciation policy as the Company's fixed assets is adopted, and land use rights
for lease are executed according to the same amortization policy as intangible assets.
(1) Recognition criteria for fixed assets
The Company's fixed assets are tangible assets held for commodity manufacturing, labor provisions, leasing, or
management with a service life exceeding one year.
Fixed assets are recognized if it is likely that the economic benefits associated therewith might flow to the Company
and their costs can be reliably measured. The Company's fixed assets include houses and buildings, machinery and
equipment, electronic equipment, transportation equipment, office equipment, etc.
(2) Depreciation methods
Depreciation of fixed assets is provided on a category basis by the straight-line method (or unit-of-production method,
double declining balance method, sum-of-the-years'-digits method, etc.). The depreciation rate is determined based on the
category, estimated service life, and estimated net residual value rate of the fixed assets. If the components of a fixed asset
hold different useful lives or provide economic benefits to the enterprise in different patterns, different depreciation rates or
depreciation methods are chosen for depreciation separately.
The depreciation method, service life, residual value rate, and annual depreciation rate of various fixed assets are as
follows:
Annual
Depreciation Depreciation Residual value
Type depreciation rate
method period (year) rate (%)
(%)
Housing and building Straight-line
depreciation method
Housing decoration Straight-line
depreciation method
Machinery and equipment - Gas Unit-of-production
- 0-10 -
turbine generator sets method
Machinery and equipment (excluding Straight-line
gas turbine generator sets) depreciation method
Means of transportation Straight-line
depreciation method
Electronic equipment Straight-line
depreciation method
Other equipment Straight-line
depreciation method
(3) Subsequent expenditures
Subsequent expenditures on fixed assets refer to the expenditures for renewal, transformation, repair, etc. incurred
during the use of fixed assets. Subsequent expenditures such as renewal and transformation of fixed assets that meet the
capitalization conditions shall be stated as the cost of fixed assets, and the book value of the replaced part shall be
deducted at the same time; repair expenses for fixed assets that do not meet the capitalization conditions shall be stated
as current gains/losses when incurred.
The cost of construction in progress is determined based on actual project expenditures, including all necessary project
expenditures incurred during construction, borrowing costs to be capitalized before the project reaches its predetermined
usable state, and other related expenses, etc.
The Company's construction in progress is classified into capital construction projects, technical transformation
projects, comprehensive energy services, informatization construction, etc.
For construction in progress, the necessary expenditures incurred before the asset reaches its intended usable state
are recorded as the book value of the fixed asset. If the constructed fixed asset has reached its intended usable state but
the final completion settlement has not been handled, it is transferred to fixed assets at the estimated value based on the
project budget, cost or actual cost of the project from the date it reaches the intended usable state, and the depreciation
of fixed assets is provided in accordance with the Company's depreciation policies for fixed assets. Following the settlement
for completion, the original estimated value is adjusted based on the actual cost, while the previously provided depreciation
amount is not adjusted.
Construction in progress is transferred to fixed assets upon reaching the intended usable state, with the criteria as
follows:
Item Criteria and timing of transfer to fixed assets
(1) The main construction projects and supporting projects have been substantially
completed; (2) the construction project has met the intended design requirements and have
been accepted following the inspection by survey, design, construction, supervision and
other authorities; (3) the housing and buildings have been accepted upon inspection by
Housing and building external authorities such as fire protection, land and resources, and planning; (4) where the
construction project has reached the intended state of use but the final completion
settlement has not been handled, it shall be converted into fixed asset at the estimated
value based on the actual project cost from the date it reaches the intended state of use.
(1) The relevant equipment and other supporting facilities have been installed; (2) the
equipment can maintain normal and stable operation for a period of time after
Machinery equipment commissioning; (3) the production equipment can stably produce qualified products for a
period of time; (4) the equipment has been accepted upon inspection by asset management
personnel and users.
(1) Recognition principles of capitalization of borrowing costs
Borrowing costs include borrowing interest, amortization of discount or premium, supporting expenses, and exchange
differences arising from borrowings in foreign currency.
Borrowing costs are directly attributable to the acquisition, construction, or production of qualifying assets are
capitalized as part of the cost of those assets; other borrowing costs are recognized as expenses in the period in which
they are incurred and stated as the current gains/losses.
Assets qualified for capitalization ("qualifying assets") are fixed assets, investment properties, inventories, etc. that
necessarily take a substantial period of time to get ready for intended use or sale.
Capitalization of borrowing costs commences when the following three conditions are satisfied at the same time:
cash assets or bearing of interest-bearing liabilities for the acquisition, construction or production of a qualifying asset;
or sale have commenced.
(2) Capitalization period of borrowing costs
The capitalization period refers to the period from the time when the capitalization of borrowing costs commences to
the time when it ceases, excluding the period when the capitalization of borrowing costs is suspended.
When the acquired, constructed, or produced assets eligible for capitalization reaches its intended states of use or
sale, the capitalization of borrowing costs ceases.
When some projects of the acquired, constructed, or produced qualifying assets are completed separately and can
be used individually, the capitalization of borrowing costs for such assets ceases.
If each part of the acquired, constructed, or produced asset is completed separately but can only be used or sold after
the entire asset is completed, the capitalization of borrowing costs ceases when the entire asset is completed.
(3) Period of suspended capitalization
If an abnormal interruption occurs during the acquisition, construction, or production of a qualifying asset and the
interruption lasts for more than three consecutive months, the capitalization of borrowing costs is suspended; if the
interruption is a necessary procedure for the acquired, constructed, or produced qualifying asset to reach its intended state
of use and sale, the capitalization of borrowing costs continues. Borrowing costs incurred during the interruption period are
recognized in the current gains/losses until the acquisition, construction, or production activities of the asset restart, at
which time the capitalization of borrowing costs continues.
(4) Calculation methods for the capitalization rate and capitalized amount of borrowing costs
For specific borrowings obtained for the acquisition, construction, or production of qualifying assets, the capitalized
amount of borrowing costs is determined based on the actual borrowing costs incurred for the specific borrowings in the
current period, less the interest income from depositing the unused borrowed funds in banks or the investment income
from temporary investments.
Where general borrowings are occupied for the acquisition, construction, or production of qualifying assets, the amount
of borrowing costs to be capitalized for general borrowings is calculated and determined by multiplying the weighted
average of accumulated asset expenditures exceeding the specific borrowings by the capitalization rate of the occupied
general borrowings. The capitalization rate is calculated and determined based on the weighted average interest rate of
the general borrowings.
Except for short-term leases and leases of low-value assets, the Company recognizes right-of-use assets for leases
at the lease commencement date. The lease commencement date refers to the date when the lessor starts to provide the
leased asset to make it available for use by the Company. Right-of-use assets are initially measured at cost. Such costs
include
(1) The initial measurement amount of the lease liability;
(2) Lease payments made on or before the lease commencement date, less any lease incentives enjoyed (if any);
(3) Initial direct costs incurred by the Company; and
(4) Costs expected to be incurred by the Company for dismantling and removing the leased asset, restoring the site
where the leased asset is located, or restoring the leased asset to the condition agreed in the lease terms, excluding the
costs incurred for the production of inventories.
The Company calculates the depreciation for right-of-use assets with reference to the depreciation-related provisions
under the Accounting Standard for Business Enterprises No. 4 - Fixed Assets. If the Company can reasonably determine
that the ownership of the leased asset will be obtained at the end of the lease term, the right-of-use asset is depreciated
over the remaining service life of the leased asset. If it is impossible to reasonably determine that the ownership of the
leased asset will be obtained at the end of the lease term, the right-of-use asset is depreciated over the shorter of the lease
term and the remaining service life of the leased asset.
The Company determines whether the right-of-use asset is impaired in accordance with the Accounting Standard for
Business Enterprises No. 8 - Impairment of Assets, and performs accounting treatment for the identified impairment losses.
Intangible assets include land use rights, patented technologies, software, etc., which are initially measured at actual
cost.
(1) Valuation methods for intangible assets
Costs of purchased intangible assets include the purchase price, relevant taxes and fees, and other expenditures
directly attributable to causing the asset to its intended use. If the payment for the purchase of an intangible asset is
deferred beyond normal credit terms and has a financing nature in substance, the cost of the intangible asset is subject to
the present value of the purchase price.
For an intangible asset acquired from a debtor for debt settlement through debt restructuring, its book value is
determined based on the fair value of the relinquished debt and other costs such as taxes that are directly attributable to
causing the asset to its intended use, and the difference between the fair value and the carrying amount of the relinquished
debt is recognized in the current gains/losses.
Provided that the non-monetary asset exchange has commercial substance and the fair values of both the received
asset and the surrendered asset can be measured reliably, the book value of the intangible asset received in a non-
monetary asset exchange is determined based on the fair value of the surrendered asset, unless there is conclusive
evidence that the fair value of the received asset is more reliable. For non-monetary asset exchanges that fall out of the
above prerequisites, the carrying amount of the surrendered asset and the relevant taxes and fees payable are taken as
the cost of the received intangible asset, and no gains/losses are recognized.
The service life of an intangible asset is analyzed and judged upon acquisition.
For an intangible asset with a finite service life, it is amortized on a straight-line basis over the period in which it brings
economic benefits to the enterprise; if it is impossible to foresee the period during which the intangible asset will bring
economic benefits to the enterprise, it is regarded as an intangible asset with an indefinite service life and is not amortized.
(2) Estimation of the service life of intangible assets with finite service life
Type Amortization Amortization period Basis
method (years)
Average straight-line Within the validity period of the
Land use right 30-50
method land ownership certificate
Average straight-line
Patented technology 10 Patent certificate
method
Average straight-line
Software 5 Service life of software
method
(3) Basis for determining intangible assets with indefinite service life and procedures for reviewing the service
life
The service life of an intangible asset with an indefinite service life is reviewed. If there is evidence that the period
during which the intangible asset brings economic benefits to the enterprise is foreseeable, its service life is estimated and
amortized in accordance with the amortization policy for intangible assets with finite service life.
(4) Specific criteria for distinguishing between the research stage and development stage
The expenditures of the Company's internal research and development projects are classified into research
expenditures and development expenditures.
Research stage: The stage of original and planned investigation and research activities undertaken to acquire and
clarify new scientific or technical knowledge.
Development stage: The stage of applying research findings or other knowledge to a plan or design to produce new
or substantially improved materials, devices, products, etc., prior to commercial production or use.
Specific criteria for capitalizing expenditures in the development stage
Expenditures in the development stage of an internal research and development project are recognized as intangible
assets when all the following conditions are met:
market for the products produced by applying the intangible asset or the intangible asset itself has a market, and, if the
intangible asset is to be used internally, the ability to prove its usefulness;
the ability to use or sell the intangible asset; and
Long-term assets such as long-term equity investments, investment properties measured by the cost model, fixed
assets, construction in progress, right-of-use assets, and intangible assets with finite service life are tested for impairment
if there is any indication of impairment at the balance sheet date. If the result of the impairment test indicates that the
recoverable amount of the asset is less than its carrying amount, a provision for impairment is made for the difference and
recognized as an impairment loss. The recoverable amount is the higher of the fair value of an asset less the costs of
disposal and the present value of the expected cash flows of the asset in the future. The provision for asset impairment is
calculated and recognized on an individual basis. If it is difficult to estimate the recoverable amount of an individual asset,
the recoverable amount of the asset group to which the asset belongs is determined. An asset group is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets
or groups of assets.
Goodwill, intangible assets with indefinite service life, and intangible assets not yet available for use are tested for
impairment at least at the end of each year.
The Company conducts goodwill impairment testing. The carrying amount of goodwill arising from business merger is
allocated to relevant asset groups on a reasonable basis from the acquisition date; if it is difficult to allocate it to relevant
asset groups, it is allocated to relevant asset group portfolios. In allocating the carrying amount of goodwill, the Company
allocates it based on the relative benefits that the relevant asset groups or portfolios of asset groups can obtain from the
synergies of the business merger, and conducts the goodwill impairment testing on such basis.
In testing a relevant asset group or a portfolio of asset groups containing goodwill for impairment, if there is any
indication of impairment for the group or the portfolio related to goodwill, such group or portfolio not containing goodwill is
tested for impairment first to calculate its recoverable amount, which is compared with the relevant carrying amount to
recognize the corresponding impairment loss. Then, the asset group or the portfolio of asset groups containing goodwill is
tested for impairment, and the carrying amount of such groups or portfolios (including the allocated carrying amount of
goodwill) is compared with its recoverable amount. If the recoverable amount of the relevant group or portfolio is lower
than its carrying amount, an impairment loss on goodwill is recognized. Once the above asset impairment loss is
recognized, it will not be reversed in subsequent accounting periods.
After the asset impairment loss is determined, recoverable value amounts would not be returned in future.
(1) Amortization methods
The Company's long-term prepaid expenses include major repair expenditures, renovation costs, etc. Long-term
prepaid expenses refer to the expenses that have already been incurred with a benefit period of more than one year
(excluding one year). Long-term prepaid expenses are amortized in installments over the benefit period of the expense
items. If a long-term prepaid expense item cannot benefit subsequent accounting periods, the unamortized carrying value
of the item is fully transferred to the current gains/losses.
The renovation of premises rented under operating leases is recognized as long-term prepaid expenses and amortized
over the shorter of the following two periods:
Subsequent expenditures that fall out of the recognition criteria for fixed assets, such as major repair expenses, are
recognized as long-term prepaid expenses in the year of occurrence and amortized in installments over the benefit period
subsequently.
(2) Amortization period
Item Amortization period
Renovation of leased fixed assets The shorter of the estimated service life of the renovation and the estimated remaining
Item Amortization period
service life of the main structure of the building
Major repair expenditure on fixed
Major overhaul cycle of gas generator sets
assets
The employee benefits of the Company include short-term employee remuneration, post-employment benefits,
termination benefits, and other long-term benefits.
(1) Accounting treatments of short-term compensation
During the accounting period when employees provide services to the Company, the Company recognizes the actual
short-term employee remuneration incurred as a liability and includes the same in the current gains/losses or the cost of
related assets.
For social insurance premiums and housing provident funds paid by the Company for its employees, as well as trade
union funds and employee education funds withdrawn in accordance with regulations, the Company calculates and
determines the corresponding amount of employee benefits based on the prescribed basis and percentage during the
accounting period when employees provide services to the Company.
If the employee benefits are non-monetary benefits and can be reliably measured, they are measured at fair value.
(2) Accounting treatments of post-employment benefits
Defined contribution plans
The Company pays basic pension insurance and unemployment insurance for its employees in accordance with
relevant regulations of the local government. During the accounting period when employees provide services to the
Company, the amount payable is calculated based on the local payment basis and proportion, recognized as a liability,
and stated as the current gains/losses or the cost of related assets.
In addition to basic pension insurance, the Company has also established an enterprise annuity payment system and
enterprise annuity plan in accordance with relevant policies of the national enterprise annuity system. The Company makes
contributions to the local social insurance institution / annuity plan in a certain percentage of the total wages of employees,
where the corresponding expenditures are stated as the current gains/losses or the cost of related assets.
(3) Accounting treatments of dismissal benefits
The Company recognizes the employee benefits liability arising from termination benefits and states the same as the
current gains/losses when it fails to unilaterally withdraw the termination benefits arising from the labor relationship
termination plan or reduction proposal, or when it recognizes the costs or expenses related to a restructuring involving the
payment of termination benefits, whichever is earlier.
Except for short-term leases and leases of low-value assets, the Company initially measures the lease liability at the
present value of the lease payments that are not paid at the lease commencement date. In calculating the present value
of the lease payments, the Company uses the interest rate implicit in the lease as the discount rate; if the interest rate
implicit in the lease cannot be determined, the Company uses the incremental borrowing rate as the discount rate.
Lease payments refer to the payments made by the Company to the lessor in connection with the right to use the
leased assets during the lease term, including:
(1) Fixed payment (including substantial fixed payment), and the relevant amount after deducting the lease incentive
if any;
(2) Variable lease payment amount depending on index or ratio;
(3) The Company reasonably determines the exercise price of purchase option to be exercised;
(4) Lease term reflects the amount that needs to be paid if the Company exercises the option to termination of leases;
and
(5) The amount expected to be paid according to the residual value of the guarantee provided by the Company.
Variable lease payments that depend on an index or a rate are determined at initial measurement based on the index
or rate as at the lease commencement date. Variable lease payments not stated as the measurement of the lease liability
are recognized in the gains/losses or the cost of underlying assets in the period in which they are incurred.
After the lease commencement date, the Company calculates the interest expenses of the lease liabilities for each
period of the lease term at a fixed cyclical interest rate and includes it in the current profit or loss or related asset costs.
After the lease commencement date, if any of the following circumstances occurs, the Company shall remeasure the
lease liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been
reduced to zero, but the lease liabilities still needs to be further reduced, the Company shall state the difference in the
current gains/losses:
(1) If lease term changes or the valuation result of purchase option changes, the Company remeasures lease liabilities
based on the present value of the changed lease payments and the revised discount rate;
(2) If the estimated payable amount according to the guarantee residual value or the index or proportion used to
determine the lease payment changes, the Company remeasures the lease liabilities according to the present value
calculated by the changed lease payment amount and the original discount rate. If the change in lease payments results
from a change in floating interest rates, a revised discount rate is used to calculate the present value.
Lease liabilities are presented as current liabilities or non-current liabilities in the balance sheet based on their liquidity.
The closing carrying amount of non-current lease liabilities due for settlement within one year from the balance sheet date
is reflected in the item "Non-current Liabilities due within One Year".
(1) Recognition criteria for estimated liabilities
When obligations related to contingencies such as pending litigation or arbitration and product quality warranties
simultaneously meet the following conditions, the Company recognizes the same as liabilities: the obligation is a present
obligation of the Company; the fulfillment of obligation is likely to result in the outflow of economic benefits; and the amount
of the obligation can be measured reliably.
(2) Measurement methods for estimated liabilities
Estimated liabilities are initially measured in accordance with the optimal estimate of the necessary expenses for the
fulfillment of the current obligation, with the risks related to contingent matters, uncertainty, the time value of money, and
other factors taken into consideration. The Company reviews the best estimate at the balance sheet date and adjusts the
carrying amount of the estimated liability.
The best estimate is handled in the following circumstances:
In the case of a continuous range (or interval) for the necessary expenses and probabilities for all the outcomes within
this range are equal, the best estimate is determined at the median of the range, which is the average of the upper and
lower limits.
In the case of no continuous range (or interval) for the necessary expenses, or in the case of a continuous range
where the probabilities for all outcomes within this range are not equal, if the contingency involves a single item, the best
estimate is determined based on the most likely outcome; if the contingency involves multiple items, the best estimate is
calculated and determined based on all possible outcomes and the associated probabilities.
When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is expected to be
compensated by a third party, the compensation should be separately recognized as an asset only when it is virtually
certain that the reimbursement will be obtained. Besides, the amount recognized for the reimbursement should not exceed
the book value of the estimated liabilities.
Estimated liabilities expected to be paid within one year from the balance sheet date are presented as current liabilities.
Accounting policies adopted for revenue recognition and measurement disclosed by business type. The Company's
income is mainly derived from the following business types:
① Income from electricity generation and sales; ① Income from comprehensive energy services ① Other income.
（1） General principles
The Company recognizes income when it has fulfilled its performance obligations in the contract, that is, when a
customer obtains control of the relevant goods or services. Obtaining control over related goods or services means being
able to lead the use of the goods or the provision of such services and obtain almost all of the economic benefits from it.
Performance obligation refers to the commitment of the Company to transfer distinct goods to the customer in the
contract. The Company's performance obligation falls within a period of time if one of the following conditions is met;
otherwise, it belongs to a point in time: ① The customer obtains and consumes the economic benefits brought by the
Company's performance at the same time as the Company performs; ① the customer can control the goods under
construction during the Company's performance; ① the goods produced during the Company's performance have
irreplaceable uses, and the Company has the right to collect payments for the cumulative completed performance portion
during the entire contract term.
For performance obligations over a period of time, the Company recognizes the income according to the performance
progress during such period. When the performance progress cannot be reasonably determined, if the costs already
incurred by the Company are expected to be compensated, the income is recognized based on the amount of costs already
incurred until the performance progress can be reasonably determined.
For performance obligations at a point in time, the Company recognizes the income at the point when the customer
obtains control of the relevant goods. When judging whether the customer has obtained control over the goods, the
Company comprehensively considers the following indicators: ① The Company has a right to receive the payment for the
goods, that is, the customer has a obligation to pay for the goods; ① the Company has transferred the legal title of the
goods to the customer, that is, the customer has the legal title of the goods; ① the Company has transferred physical
possession of the goods to the customer, that is, the customer has physical possession of the goods; ① the Company has
transferred the significant risks and rewards of ownership of the goods to the customer, that is, the customer has obtained
the significant risks and rewards of ownership of the goods; ① the customer has accepted the goods; ① other indicators
showing that the customer has obtained the control over the goods.
If the contract contains two or more performance obligations, at the commencement date of the contract, the Company
allocates the transaction price to each single performance obligation based on the relative proportion of the stand-alone
selling price of the goods or services promised under each single performance obligation. Income is measured at the
transaction price of each single performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer, excluding amounts collected on behalf of third parties and amounts expected
to be refunded to the customer. In determining the transaction price, the Company considers the impact of factors such as
variable consideration and the existence of a significant financing component in the contract.
In case of variable consideration in the contract, the Company determines the best estimate of the variable
consideration based on the expected value or the most likely amount. The transaction price including variable consideration
shall not exceed the amount for which it is very likely that a significant reversal in the amount of cumulative income
recognized may not occur when the uncertainty associated with the variable consideration is subsequently resolved. At
each balance sheet date, the Company re-estimates the amount of variable consideration to be stated as the transaction
price.
In case of a significant financing component in the contract, the Company determines the transaction price based on
the payable amount assumed to be paid in cash by the customer when obtaining control over the goods, and amortizes
the difference between the determined transaction price and the consideration amount promised in the contract during the
contract period using the effective interest method at the discount rate that discounts the nominal amount of the contract
consideration to the cash selling price of the goods. On the commencement date of the contract, no significant financing
component in the contract is taken into account if the interval between the customer obtaining control over the goods or
services and the customer's payment is expected to be no more than one year.
（2） Principal Person in Charge and Agent
The Company determines its identity in transactions is a principal person in charge or an agent based on whether it
has control over the goods before transfer to customers. If the Company is able to control the goods before transfer to
customers, the Company is the principal person in charge and recognizes income based on the total amount of
consideration received or receivable; otherwise, it is an agent and recognizes income based on the amount of commission
or fees it expects to be entitled to, which shall be determined based on the net amount of the total consideration received
or receivable after deducting the price payable to other relevant parties, or based on the established commission amount
or proportion.
（3） Sales with Quality Warranty Terms
For sales with quality assurance clauses, if the quality assurance provides a separate service in addition to assuring
the customer that the goods or services sold meet the established standards, the quality assurance constitutes a single
performance obligation. Otherwise, the Company conducts accounting treatment for the quality warranty liabilities in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.
(4) Specific principles
The Company recognizes income when it has fulfilled its performance obligations in the contract, that is, when a
customer obtains control of the relevant goods or services. Obtaining control over related goods or services means being
able to lead the use of the goods or the provision of such services and obtain almost all of the economic benefits from it.
When the electricity is transmitted to the power grid company stipulated in the power sales contract, that is, the power
grid company obtains control of the power, the Company recognizes the realization of sales income.
The Company's comprehensive energy services are mainly divided into energy storage power station business,
electricity facilities commissioning, installation, and construction business, and power project operation and maintenance
business. The relevant service content and main business entities are as follows:
Business type Service content
(1) Independent energy storage power station business (for grid companies): As a
participant in frequency regulation and spot markets, the Company seeks returns
by providing ancillary services such as frequency regulation and spot energy
trading, and settles with the power trading center. Frequency regulation returns are
the main source of income for independent energy storage power stations in
Guangdong at the current stage.
business
(2) Commercial and industrial energy storage power station business (for
commercial and industrial enterprises): The Company reduces the electricity cost
of commercial and industrial enterprises through peak-valley arbitrage, and shares
energy-saving benefits proportionally with commercial and industrial enterprises
through Energy Management Contracting (EMC).
(1) Specialized contracting projects such as power transmission and
transformation projects and electromechanical installation projects;
(2) Electrical equipment calibration, relay protection setting, subsystem and entire
commissioning, installation, and reconstructed generator sets, substations, and energy storage systems; and
construction business (3) EPC general contracting business for energy storage and photovoltaic power
stations ("turnkey project" management model adopted in execution of contracts
with the construction unit and general contracting for the engineering project
design, procurement, construction, or design and construction stages).
With "technical labor export + professional management" as the core, the
Company provides a package of services such as operation and maintenance,
maintenance business
overhaul, and production management for power plant and power grid customers.
① Specific Accounting Policies, Recognition Timing, and Basis for Recognition of all Types of Business
Income
Income Income
Business type Income recognition policy recognition recognition
timing basis
In each period
of FM auxiliary Settlement
services and statement of
commercial and the power
(1) Such contracts are generally single performance industrial exchange
obligations. energy storage center
(2) The customer receives and consumes the services, Electricity
benefits arising from the Company's performance, income is quantity
station business a period of time. when the form
(3) Such contracts are regarded as service contracts customer Electricity bill
with clear output indicators, and the Company concerned settlement
determines the performance progress of providing obtains the statement
services according to the output method. control of the Energy-saving
services and sharing income
the confirmation
performance is form
completed.
(1) In distinguishing between a single performance
obligation and multiple performance obligations, the
Company's power engineering construction business The Company
Engineering
generally belongs to a single performance obligation. recognizes the
progress
(2) From the perspective of the point-in-time method monthly income
settlement
and over-time method for income recognition, the during the
Company's power engineering construction business construction
commissioning, Engineering
is generally deemed as the customer being able to period
installation, and node
control the goods in progress during the Company's according to the
construction business acceptance
performance, making it a performance obligation completion
form
over time, hence the application of over-time method progress and
Supervision
in income recognition. contract
report, etc.
(3) From the perspective of the input method or amount.
output method for performance progress, the
Company's power engineering construction business
generally involves the participation of engineering
supervision and cost consulting agencies to
calculate the engineering workload and output value,
where the Company adopts the "output method" to
confirm the performance.
(4) From the perspective of the gross method or net
method for income recognition, if acting as the
principal person in charge, the Company recognizes
revenue based on the total amount of consideration
received or receivable (i.e., the gross method); if
acting as an agent, income shall be recognized
based on the amount of commission or handling fee
expected to be entitled to receive (i.e., the net
method). For the business of materials supplied by
the construction party, since the materials supplied
by the construction party are purchased and
provided to the contractor by the construction party,
and the construction party is responsible for their
quality and price, the contractor does not assume
the quality risk, price fluctuation risk, etc. Under this
type of business, the contractor acts as an agent
and recognizes revenue according to the
commission or handling fee it expects to be entitled
to receive, that is, recognizes revenue based on the
net amount of the total consideration received or
receivable after deducting the price payable to other
related parties.
(1) Such contracts are generally single performance In each period
obligations. of operation and
(2) The customer receives and consumes the maintenance
benefits arising from the Company's performance, services,
Service review
which is deemed as the performance obligation over income is
form,
a period of time. recognized
(3) Such contracts are regarded as service contracts when the
operation and sheet
with clear output indicators, and the Company customer
maintenance business confirmed by
determines the performance progress of providing obtains the
both parties,
services according to the output method. control of the
etc.
services and
the
performance is
completed.
② Methods and basis for estimated income recognition
For energy storage power station business, at the end of each settlement period, the Company estimates the
income realized in the current period without a formal settlement documents, based on the accomplishment of charge
and discharge and FM service volume, as well as the data such as market clearing price and performance coefficient.
For electricity facility commissioning, installation, and construction business, at the end of each settlement period,
the Company recognizes estimated income based on the output value of the actual performance progress completed at
the project site in the current period.
For power project operation and maintenance business, at the end of each settlement period, the Company
estimates the income based on the number of man-days occurred at the project site in the current period, as well as the
man-day unit price of personnel at all levels under the relevant contract.
On the balance sheet date, if the performance progress cannot be reasonably determined, and the costs incurred
are expected to be recovered, the income shall be recognized based on the amount of costs incurred until the
performance progress can be reasonably determined. In the period when the Company obtains the formal settlement
documents, it shall offset the operating income recognized previously on an estimated basis, and recognize the operating
income for the current period based on the formal settlement amount. The difference between the estimated amount and
the formal settlement amount shall be used to adjust the operating income in the period when the settlement documents
are obtained.
(1) Type
Government grants are monetary assets and non-monetary assets obtained by the Company from the government
without consideration, and are divided into government grants related to assets and government grants related to income.
Among them, government grants related to assets refer to government grants obtained by the Company to purchase,
construct, or otherwise form long-term assets, while government grants related to income refer to government grants other
than those related to assets. If the target of the grant is not clearly specified in the government documents, the Company
makes judgement in line with the above-mentioned principles, and if it is difficult to distinguish, it is classified as a
government grant related to income as a whole.
(2) Timing
If there is evidence at the end of the period that the Company can meet the conditions under the financial support
policies and it is expected to receive the financial support funds, the government grant are recognized as per the receivable
amount. Otherwise, government grants are recognized when actually received.
If a government grant is a monetary asset, it is measured at the amount received or receivable. If a government grant
is a non-monetary asset, it is measured at fair value; if the fair value cannot be reliably obtained, it is measured at a nominal
amount (RMB 1). A government grant measured at a nominal amount is directly stated as the current gains/losses.
(3) Accounting treatment
Government grants related to assets are offset against the carrying amount of the relevant assets or recognized as
deferred income. If recognized as deferred income, the grants are stated as current gains/losses in installments on a
reasonable and systematic basis over the service life of the said assets (those related to the daily activities of the Company
stated as other income; those not related to the daily activities of the Company stated as non-operating income).
Government grants related to income, if used to compensate for the relevant costs, expenses, or losses of the
Company in subsequent periods, are recognized as deferred income, and are recognized as current gains/losses during
the period when such costs, expenses, or losses are recognized (those related to the daily activities of the Company stated
as other income; those not related to the daily activities of the Company are stated as non-operating income) or offset
against such costs, expenses, or losses; if used to compensate for the relevant costs, expenses, or losses already incurred
by the Company, are directly stated as current gains/losses (those related to the daily activities of the Company stated as
other income; those not related to the daily activities of the Company stated as non-operating income) or offset against
such costs, expenses, or losses.
The Company obtains interest grants on policy-related concessional loans in two different ways: the interest subsidy
funds are allocated by the government either to the lending bank or directly to the Company. The respective accounting
treatment is carried out as follows:
policy-related preferential interest rate, the actual amount of the loan received is taken as the entry value, and the borrowing
costs are calculated based on the loan principal and the policy-related preferential interest rate.
Deferred tax assets that can be recognized for deductible temporary differences are subject to the taxable profit
available in the future against which the deductible temporary differences can be utilized. For deductible losses and tax
credits that can be carried forward to subsequent years, the corresponding deferred tax assets are recognized to the extent
that it is probable that future taxable profit will be available against which the deductible losses and tax credits can be
utilized.
For taxable temporary differences, deferred tax liabilities are recognized except in special circumstances.
Special circumstances where deferred tax assets or deferred tax liabilities are not recognized include the initial
recognition of goodwill, and other transactions or events occurred outside of a business merger and affect neither
accounting profit nor taxable profit (or deductible losses) at the time of occurrence.
When the Company has a legal right to settle on a net basis and intends to settle with net amount or acquire assets
and pay off liabilities simultaneously, the Company reports the net amount of current income tax assets and current tax
liabilities after offsetting.
When the Company has the legal right to settle current income tax assets and current income tax liabilities on a net
basis, and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection
authority on the same taxpayer or on different taxpayers, but in each important future period of reversal of deferred tax
assets and liabilities, the involved taxpayer intends to settle current income tax assets and liabilities on a net basis or to
obtain assets and settle liabilities at the same time, the deferred tax assets and deferred tax liabilities of the Company are
presented at the net amount after offset.
（1） Identification of Leases
On the commencement date of the contract, the Company assesses whether the contract is, or contains, a lease. If a
party to the contract transfers the right allowing the control over the use of one or more assets that have been identified
within a certain period, in exchange for a consideration, such contract is a lease or includes a lease.
If a contract contains several separate leases, the Company separates the contract and accounts for each separate
lease. If a contract contains both lease and non-lease components, the Company separates the lease and non-lease
components and accounts for them respectively. Each lease component is accounted for in accordance with the lease
standard, and the non-lease components are accounted for in accordance with other applicable accounting standards for
business enterprises.
（2） The Company as a lessee
Except for short-term leases and leases of low-value assets, the Company recognizes right-of-use assets and lease
liabilities for leases on the lease commencement date.
The right-of-use asset refers to the right of the Company as a lessee to use the leased asset during the lease term,
which is initially measured at cost. The cost includes: ① The initial measurement amount of the lease liability; ① the lease
payments made on or before the lease commencement date, less the amount of lease incentives enjoyed; ① the initial
direct costs incurred; ① the expected costs to be incurred for dismantling and removing the leased asset, restoring the site
where the leased asset is located, or restoring the leased asset to the state agreed in the lease terms (except those
incurred for the production of inventories). If the Company remeasures the lease liability in accordance with the relevant
provisions of the lease standard, the carrying amount of the right-of-use asset is adjusted accordingly.
The Company calculates and withdraws depreciation for right-of-use assets on a straight-line basis according to the
expected consumption pattern of economic benefits related to such assets. If it can be reasonably determined that the
ownership of the leased asset can be obtained at the end of the lease term, the depreciation is withdrawn over the
remaining service life of the leased asset; if it is impossible to reasonably determine that the ownership of the leased asset
can be obtained at the end of the lease term, the depreciation is calculated and withdrawn over the shorter of the lease
term and the remaining service life of the leased asset. The amount of depreciation withdrawn is stated as the cost of
relevant assets or the current gains/losses according to the purpose of the right-of-use assets.
The Company initially measures the lease liabilities at the present value of the lease payments that are not paid on
the commencement date of the lease. The lease payments include: (1) Fixed payments and in-substance fixed payments,
less any lease incentives receivable; (2) variable lease payments depending on an index or a rate; (3) exercise price of a
purchase option if the Company is reasonably certain to exercise that option; (4) payments of penalties for terminating the
lease, if the lease term reflects the Company exercising an option to terminate the lease; and (5) amounts expected to be
paid by the Company as per the balance of value guarantees.
In calculating the present value of lease payments, the Company uses the interest rate implicit in the lease as the
discount rate. If the interest rate implicit in the lease cannot be determined, the Company's incremental borrowing rate is
used as the discount rate. The Company calculates the interests on the lease liabilities for each period during the lease
term with a constant periodic rate of interest, and states the same as current gains/losses, except for those that shall be
capitalized.
Subsequent to the commencement date of the lease, the Company increases the carrying amount of the lease liability
when recognizing the interest on such liability, and reduces the carrying amount of such liability when making lease
payments. The Company remeasures the lease liability at the present value of the modified lease payments in case of any
change to in-substance fixed payments, any change to the amounts expected to be payable under a residual value
guarantee, any change to future lease payments resulting from the change in an index or a rate used to determine those
payments, or any change to the assessment or actual exercise of a purchase option, an renewal option, or a termination
option.
For short-term leases with a term of not more than 12 months and leases of low-value assets where the individual
leased asset is of low value when it is brand new, the Company chooses not to recognize right-of-use assets and lease
liabilities. The Company recognizes the lease payments associated with short-term leases and leases of low-value assets
as expenses on a straight-line basis or another systematic and rational basis over the lease term in the cost of relevant
assets or current gains/losses.
（3） The Company as a lessor
As a lessor, the Company classifies a lease as a finance lease if it transfers substantially all the risks and rewards
incidental to the ownership of an underlying asset, while all other leases are classified as operating leases.
On the commencement date of the lease, the Company recognizes a finance lease receivable for a finance lease and
derecognizes the finance lease asset. When the Company initially measures the finance lease receivable, the net
investment in the lease is used as the entry value of the finance lease receivable.
The net investment in the lease is the sum of the unguaranteed residual value and the present value of the lease
payments receivable that are not received on the commencement date of the lease discounted at the interest rate implicit
in the lease. The Company calculates and recognizes interest income for each period during the lease term at a constant
periodic rate of interest. Variable lease payments received by the Company that are not stated as the net investment for
measurement in the lease are recognized in the gains/losses for the period of occurrence.
During each period of the lease term, the Company recognizes lease receipts from operating leases as rental income
on a straight-line basis.
Initial direct costs incurred by the Company in relation to an operating lease are capitalized to the cost of the underlying
asset, and are recognized as an expense over the lease term on the same basis as the lease income. Variable lease
payments received by the Company in relation to an operating lease that are not stated as the lease receipts are stated
as gains/losses for the period of occurrence.
In case of any modification to the operating lease, the Group regards it as a new lease for accounting treatment from
the effective date of the change. The advance receipt or the lease receivable related to the lease prior to the change is
recognized as the payment receivable of the new lease.
The production safety expenses withdrawn by the Company for its electricity generation business in accordance with
national regulations are stated as the cost of relevant products or current gains/losses, and also stated as the "special
reserve" account. The current provision standard is based on the operating income of the previous year, and the amount
to be withdrawn for the current year is determined by adopting the excess regressive method, and is withdrawn evenly on
a monthly basis, stated as the cost of relevant products or current gains/losses, and also stated as the "special reserve"
account. When the Company uses the special reserve, if it is an expenditure, it directly offsets the special reserve; if it
forms a fixed asset, it is recognized as a fixed asset when the relevant asset reaches the intended state of use; while the
special reserve is offset against the cost of forming the fixed asset, and the accumulated depreciation of the same amount
is recognized. The fixed asset is no longer depreciated in subsequent periods.
There was no material change in accounting policies and accounting estimates during the Reporting Period.
VI. Taxation
Taxation Tax basis Tax rate
The output tax is calculated on the basis of the sales of goods
and taxable labor income calculated in accordance with the tax
Value-added tax 13% 、9% 、6%、
law. After deduction of the input tax that can be deducted in the 5% 、3%
current period, the difference is the value-added tax payable.
Urban maintenance Calculated and paid based on the value-added tax and
and construction tax consumption tax actually paid
Calculated and paid based on the value-added tax and
Education surcharge 3%
consumption tax actually paid
Local education Calculated and paid based on the value-added tax and
surcharge consumption tax actually paid
Calculated and paid at
income, except for the
Enterprise income tax Calculated and paid based on taxable income enterprises enjoying tax
preferences as described
below.
(1) Private use of a self-owned property: Based on the original
value of the property, less 10%-30%; 1.2% (ad valorem) or 12%
Property tax (based on rent)
(2) Lease of a self-owned property: Based on the rental income
of the property
Land use tax in urban Calculated and paid at RMB 2-8/square meter of the land area
Taxation Tax basis Tax rate
areas actually occupied by industrial land in Nanshan District,
Shenzhen; calculated and paid at RMB 1/square meter of the
land area actually occupied by industrial land in Zhongshan City
Overseas taxes are calculated in accordance with the tax laws
Overseas taxes
and regulations of the country or region concerned
The taxpayers with different corporate income tax rates are as follows:
Name of entity Income tax rate
The Company 15%
(1) Enterprise income tax
The Company obtained the National High-tech Enterprise Certificate (No. GR202444200365) valid for 3 years from
income tax at a reduced rate of 15%.
(2) Value-added tax
Approval
Company Basis of relevant laws Approval Reduction/exemption Validity
Taxation document
name and policies authority range period
number
Taxation
Bureau for
Announcement of the Qianhai
Ministry of Finance Shenzhen-
Announcement
and the State Hong Kong
No. 11 of the Effective
Shennan
Taxation Modern VAT exemption for
Value- Ministry of from
Power
Administration on Service cross-border
added tax Engineering Finance and January 1,
Value-added Tax and Industry taxable behaviors
the State 2026
Company
Consumption Tax Cooperation
Taxation
Policies for Export Zone, the
Administration
Businesses State
Taxation
Administration
VII. Notes to items in consolidated financial statements
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 29,648.02 30,635.37
Bank deposits 115,534,685.53 133,266,301.05
Other monetary assets 131,432,044.73 8,293,402.62
Total 246,996,378.28 141,590,339.04
Of which: Total amount of funds deposited
overseas
The details of monetary funds that are restricted from use due to mortgage, pledge or freezing, as well as monetary
funds kept overseas with restricted repatriation are as follows:
Item Ending balance Beginning balance
Guarantee deposits, etc. 127,729,947.70 8,334,730.76
Co-managed account funds 4,619,341.40
Total 132,349,289.10 8,334,730.76
Besides, there are no other funds with restricted use due to mortgage, pledge or freezing, or with potential recovery
risks in the balance of monetary funds as of June 30, 2026.
Unit: RMB
Beginning
Item Ending balance
balance
Financial assets measured at fair value through current profit or loss 162,600,453.64 291,000,000.00
Including: Investment in debt instruments
Investment in equity instruments
Derivative financial instruments
Others (Note 1) 162,600,453.64 291,000,000.00
Financial assets designated to be measured at fair value through current
gains/losses
Including: Investment in debt instruments
Investment in hybrid instruments
Others (Note 2) 50,643,644.40 50,000,000.00
Total 213,244,098.04 341,000,000.00
Note 1: Other tradable financial assets of the Company refer to structural deposits and monetary funds reserved in
commercial banks. As of June 30, 2026, the balance of structural deposits and monetary funds was RMB 162,600,453.64.
Note 2: Other financial assets of the Company designated to be measured at fair value through current gains/losses
refer to the investments in private equity funds.
(1) Presentation of notes receivable by category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 400,000.00
Total 400,000.00
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance
Book balance Provision for bad debts
Type
Provision Book value
Percenta
Amount Amount percentage
ge (%)
(%)
Provision set aside for bad
debts by the single item
Provision for bad debts
accrued by credit risk 400,000.00 100.00 400,000.00
portfolio
Including: Bank acceptance
bills
Total 400,000.00 100.00 400,000.00
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percenta Book value
Amount Amount percentage
ge (%)
(%)
Provision set aside for bad
debts by the single item
Provision for bad debts
accrued by credit risk
Beginning balance
Book balance Provision for bad debts
Type Provision
Percenta Book value
Amount Amount percentage
ge (%)
(%)
portfolio
Including: Bank acceptance
bills
Total
period
Ending balance
Name Provision for bad Provision percentage
Book balance
debts (%)
Portfolio 1: Bank Acceptance Bills
Portfolio
Total 400,000.00
(3) Provision for bad debts of notes receivable withdrawn, recovered, or reversed for the current period
(4) No pledged notes receivable of the Company by the end of the current period
(5) No notes receivable endorsed or discounted by the Company and not yet due on the balance sheet date
by the end of the current period
(6) No actual write-off of notes receivable for the current period
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 84,387,550.20 81,840,666.05
Over 3 years 27,989,666.65 18,100,707.87
Total 131,787,469.28 130,139,403.74
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance
Book balance Provision for bad debts
Type
Provision Book value
Percentag
Amount Amount percentage
e (%)
(%)
Provision set aside for
bad debts by the single 17,208,128.63 13.06 17,208,128.63 100.00
item
Provision for bad debts
accrued by credit risk 114,579,340.65 86.94 5,259,035.53 4.59 109,320,305.12
portfolio
Total 131,787,469.28 100.00 22,467,164.16 17.05 109,320,305.12
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Provision Book value
Percentag
Amount Amount percentage
e (%)
(%)
Provision set aside for
bad debts by the single 17,208,128.63 13.22 17,208,128.63 100.00
item
Provision for bad debts
accrued by credit risk 112,931,275.11 86.78 3,099,877.82 2.74 109,831,397.29
portfolio
Total 130,139,403.74 100.00 20,308,006.45 15.60 109,831,397.29
Accounts receivable with provision for bad debts on an individual basis:
Ending balance
Name Provision for Provision Reasons for the
Book balance
bad debts percentage (%) provision
China Machinery Engineering Estimated to be
Corporation (CMEC) irrecoverable
PowerChina Hubei Electric Estimated to be
Engineering Co., Ltd. irrecoverable
Historical legacy
Shenzhen Petrochemical Bonded
Oil Trade Co., Ltd.
time ago
Estimated to be
Other small-amount receivables 53,040.50 53,040.50 100.00
irrecoverable
Total 17,208,128.63 17,208,128.63 100.00
Accounts receivable with provision for bad debts on a portfolio basis:
Ending balance
Project
Book balance Provision for bad debts Provision percentage (%)
Portfolio 2: Receivables from
electricity generation and sales
Portfolio 3: Receivables from
comprehensive energy services
Total 114,579,340.65 5,259,035.53 4.59
(3) Provision for bad debts accrued, recovered or reversed for the current period
Unit: RMB
Changes in the current period
Beginning
Type Recovered or Charge-off or Ending balance
balance Provision
reversed write-off
Accounts
receivable with
expected credit
losses 17,208,128.63 17,208,128.63
withdrawn on
an individual
basis
Accounts
receivable with
expected credit
losses accrued
by credit risk
portfolio
Total 20,308,006.45 2,159,157.71 22,467,164.16
Of which, there was no recovery or reversal of provision for bad debts with significant amounts in the current period.
(4) No actual write-off of accounts receivable for the current period
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets
Unit: RMB
Ratio to the Ending balance
total amount of provision for
Ending Ending balances of ending bad debts of
Ending balance of
balance of of accounts balance of accounts
Unit accounts
contract receivable and accounts receivable and
receivable
assets contract assets receivable provision for
and contract impairment of
assets (%) contract assets
Shenzhen Power
Supply Bureau 61,744,388.17 61,744,388.17 44.42
Co., Ltd.
China Machinery
Engineering
Corporation
(CMEC)
Guangdong 7,796,560.54 7,796,560.54 5.61
Ratio to the Ending balance
total amount of provision for
Ending Ending balances of ending bad debts of
Ending balance of
balance of of accounts balance of accounts
Unit accounts
contract receivable and accounts receivable and
receivable
assets contract assets receivable provision for
and contract impairment of
assets (%) contract assets
Power Grid Co.,
Ltd.
Shenzhen Energy
Group Co., Ltd.
China
Construction
Science and
Industry
Corporation
Limited
Total 117,426,518.48 4,104,518.04 121,531,036.52 87.43 15,956,994.97
(1) Details of contract assets
Unit: RMB
Ending balance Beginning balance
Provision Provision
Item
Book balance for bad Book value Book balance for bad Book value
debts debts
Project
progress 5,428,612.88 5,428,612.88 20,224,907.48 20,224,907.48
payment
Engineering
quality 1,780,664.43 1,780,664.43 1,216,764.24 1,216,764.24
deposit
Total 7,209,277.31 7,209,277.31 21,441,671.72 21,441,671.72
(2) Major changes of book value during the reporting period and reasons
Unit: RMB
Item Changes Reason for changes
The ending balance of contract assets decreased from the
Project progress payment -14,996,747.54
beginning of the period, mainly because the 150MW/300MWh
Item Changes Reason for changes
independent energy storage power station project in Guzhen
Town, Zhongshan City, and the construction general
contracting building and installation construction project of
Section #2 of the Zhengdou Photovoltaic Empirical
Experiment Base Project in Garze Prefecture have completed
settlement and met the conditions for unconditional right to
receive payments, which were transferred from contract
assets to accounts receivable.
Total -14,996,747.54
(3).Disclosure by provision method for bad debts
Unit: RMB
Ending balance
Book balance Provision for bad debts
Type Provision
Percenta Book value
Amount Amount percentage
ge (%)
(%)
Provision set aside for bad
debts by the single item
Provision for bad debts
accrued by credit risk 7,209,277.31 100.00 7,209,277.31
portfolio
Total 7,209,277.31 100.00 7,209,277.31
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percenta Book value
Amount Amount percentage
ge (%)
(%)
Provision set aside for bad
debts by the single item
Provision for bad debts
accrued by credit risk 21,441,671.72 100.00 21,441,671.72
portfolio
Total 21,441,671.72 100.00 21,441,671.72
period
Ending balance
Name Provision for bad Provision percentage
Book balance
debts (%)
Portfolio 3: Receivables from
comprehensive energy services
Total 7,209,277.31
(4) No provision for bad debts of contract assets was accrued, recovered or reversed in the current period
(5) No actual write-off of contract assets for the current period
Unit: RMB
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 362,387,516.84 361,729,062.93
Including: Land resumption compensation
receivable (Note)
Total 362,387,516.84 361,729,062.93
Note: Land resumption compensation receivable refers to the government compensation receivable arising from the
land resumption of the Company's subsidiary, Shennandian Zhongshan. The total compensation price for the land
resumption of Shennandian Zhongshan in Cuiheng New District is RMB 584.45 million, involving Parcel A and Parcel B:
The total compensation for Parcel A is RMB 224.71 million, of which RMB 112.41 million has been recovered in the
early stage, including an initial payment of RMB 67.41 million and a progress payment of RMB 45.00 million. The
cancellation of the land ownership certificate and the confirmation of the parcel handover for Parcel A were completed in
the payment will be recovered by December 31, 2026 at the latest.
The total compensation for Parcel B is RMB 359.74 million, of which an initial payment of RMB 107.92 million has
been received. The cancellation of the land ownership certificate for Parcel B was completed in 2024, and the
confirmation of the parcel handover was completed in 2025. During the actual handover confirmation process of Parcel
B, RMB 9.15 million was deducted from the compensation price accordingly due to the expiration and cancellation of the
right to use the sea area in relation to the wharf and the inability to hand over the covered bridge due to demolition. At the
end of the period, the remaining receivables totaled RMB 242.67 million. Pursuant to relevant agreement, the settlement
deadline for the payment is December 31, 2027.
By the end of the Reporting Period, the unrecovered land resumption compensation for Parcels A and B totaled
RMB 354.97 million. The Company continues to communicate with the Management Committee of Cuiheng New District
to actively promote the recovery of funds. All remaining land resumption receivables are within the payment credit period
under the relevant agreement.
(1) Classification of other receivables by nature of payment
Unit: RMB
Nature of funds Ending book balance Beginning book balance
Transactions with external agencies 375,508,681.73 375,874,499.74
Historical legacy funds 11,724,938.94 11,724,938.94
Margin, deposit and petty cash 5,846,533.33 4,930,362.46
Others 717,918.88 609,817.83
Total 393,798,072.88 393,139,618.97
(2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 246,961,373.29 245,361,010.04
Over 3 years 31,428,464.43 31,428,464.43
Total
(3).Disclosure by provision method for bad debts
Ending balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set 31,410,556.04 7.98 31,410,556.04 100.00
Ending balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
aside for bad
debts by the single
item
Provision for bad
debts accrued by 362,387,516.84 92.02 362,387,516.84
credit risk portfolio
Total 393,798,072.88 100.00 31,410,556.04 7.98 362,387,516.84
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
debts by the single
item
Provision for bad
debts accrued by 361,729,062.93 92.01 361,729,062.93
credit risk portfolio
Total 393,139,618.97 100.00 31,410,556.04 7.99 361,729,062.93
Ending balance
Provision
Name Provision for Reasons for the
Book balance percentage
bad debts provision
(%)
Huiyang Kangtai Industrial Co., Ltd. 14,311,626.70 14,311,626.70 100.00 Historical legacy
Dividends and taxes receivable issues from a
from employee benefit fund long time ago,
Ending balance
Provision
Name Provision for Reasons for the
Book balance percentage
bad debts provision
(%)
Shandong Ji'nan Power Generation which are
Equipment Factory Co., Ltd. expected to be
Receivables from the purchase of unrecoverable.
employee dormitories
Receivables from Zhongshan
Cogeneration Project
Others 813,990.40 813,990.40 100.00
Total 31,410,556.04 31,410,556.04 100.00 —
Ending balance
Project Provision for bad Provision percentage
Book balance
debts (%)
Portfolio 5: Margin, deposit, and petty
cash portfolio
Portfolio 7: Other various receivables
and temporary payments
Total 362,387,516.84
Phase I Phase II Phase III
Expected credit Expected credit
Expected
loss during the loss during the
Provision for bad debts credit loss Total
whole outstanding whole outstanding
for the next
maturity (without maturity (with
credit impairment) credit impairment)
Balance as of January 1, 31,410,556.04 31,410,556.04
Balance as of January 1,
-- Transfer to Stage II
-- Transfer to Stage III
-- Reversal to Stage II
Phase I Phase II Phase III
Expected credit Expected credit
Expected
loss during the loss during the
Provision for bad debts credit loss Total
whole outstanding whole outstanding
for the next
maturity (without maturity (with
credit impairment) credit impairment)
-- Reversal to Stage I
Provision for the current
period
Reversal in this period
Charge-off in the current
period
Write-off in the current
period
Other changes
Balance as of June 30, 2026 31,410,556.04 31,410,556.04
(4) Provision for bad debts accrued, recovered or reversed for the current period
Unit: RMB
Changes in the current period
Beginning
Type Recovered Charge-off or Ending balance
balance Provision Others
or reversed write-off
Provision
set aside
for bad
debts by
the single
item
Provision
for bad
debts
accrued by
credit risk
portfolio
Total 31,410,556.04 31,410,556.04
Of which, there was no recovery or reversal of provision for bad debts with significant amounts in the current period.
(5) No actual write-off of other receivables for the current period
(6) Other receivables of the top five ending balances collected by debtor
Unit: RMB
Ratio to the total
Provision for bad
ending balance
Unit Nature of funds Ending balance Aging debts
of other
Ending balance
receivables (%)
Zhongshan Xiwan Land resumption Within 1
Construction payment 354,967,762.00 year, 1 to 2 90.14
Investment Co., Ltd. receivable years
Transactions
Huiyang Kangtai Over 5
with external 14,311,626.70 3.63 14,311,626.70
Industrial Co., Ltd. years
agencies
Dividends and taxes
receivable from Receivables Over 5
employee benefit from employees years
fund
Shandong Ji'nan
Transactions
Power Generation Over 5
with external 3,560,000.00 0.90 3,560,000.00
Equipment Factory years
agencies
Co., Ltd.
Zhongshan Nanlang
Within 1
Construction
Deposit 1,888,742.00 year, 1 to 2 0.48
Development Co.,
years
Ltd.
Total — 384,717,065.48 — 97.69 27,860,561.48
(1) Advances to suppliers are listed by aging
Unit: RMB
Ending balance Beginning balance
Item
Amount Percentage (%) Amount Percentage (%)
Within 1 year 26,976,189.75 99.80 10,983,662.40 99.37
Over 3 years 5,887.44 0.05
Total 27,031,243.97 100.00 11,052,982.80 100.00
There was no prepayment aged over one year and of significant amount at the end of the period.
(2) Prepayment status of the top five year-end balances collected by prepaid objects
Unit: RMB
Ratio to the total ending
Unit Ending balance
balance of prepayment (%)
Shenzhen Gas Corporation Ltd. 10,066,955.06 37.24
Tianjin Anqiju Construction Technology
Co., Ltd.
Shanghai Turbine Plant Co., Ltd. 3,521,400.00 13.03
Hunan Yineng Electric Power
Construction Co., Ltd.
The Hong Kong University - Shenzhen
Hospital
Total 25,445,730.03 94.13
(1) Inventories Classification
Unit: RMB
Ending balance
Provision for inventory
Item impairment/for contract
Book balance Book value
fulfilment cost
impairment
Spare parts, etc. 111,592,995.58 75,698,689.83 35,894,305.75
Auxiliary materials
and low-value 300,184.02 300,184.02
consumables, etc.
Contract fulfilment
costs
Others 47,646.11 47,646.11
Total 114,509,562.59 75,698,689.83 38,810,872.76
(Continued)
Beginning balance
Provision for inventory
Item
Book balance impairment/for contract Book value
fulfilment cost impairment
Spare parts, etc. 112,064,370.81 75,758,884.19 36,305,486.62
Auxiliary materials
and low-value 302,731.04 302,731.04
consumables, etc.
Contract fulfilment
costs
Others 47,196.59 47,196.59
Total 113,731,793.67 75,758,884.19 37,972,909.48
(2) Provision for inventory depreciation and provision for impairment of contract performance costs
Increase in the current Decrease in the current
Beginning year year
Item Ending balance
balance Reversal or
Provision Others Others
write-off
Spare parts,
etc.
Auxiliary
materials and
low-value
consumables,
etc.
Total 75,758,884.19 60,194.36 75,698,689.83
Unit: RMB
Item Ending balance Beginning balance
Transferable large-denomination
certificates of deposit and accrued 279,648,785.85 238,230,831.36
interest
VAT input tax to be deducted 22,912,202.32 23,972,945.62
Prepaid income tax 142,330.79 4,050,115.85
Others 7,815.72 8,494.29
Item Ending balance Beginning balance
Total 302,711,134.68 266,262,387.12
(1) Other equity instrument investments
Unit: RMB
Increase/decrease in this period
Losses included
Beginning Gains included in
Item Additional Decrease in in other Ending balance
balance other comprehensive Others
investment investment comprehensive
income
income
Sunpower Technology
(Jiangsu) Group Co., Ltd.
Jiangxi Nuclear Power Co.,
Ltd.
Shenzhen Petrochemical
Products Bonded Trading
Co., Ltd.
Total 234,179,057.20 234,179,057.20
(2) Non-trading equity instrument investments
Unit: RMB
Dividend Amount Reason for assigning Reasons for the
Accumulative losses
income Accumulative gains transferred from to measure at fair value transfer of other
accrued to other
Item recognized accrued to other the other of which changes comprehensive
comprehensive
during the comprehensive income comprehensive included other income into retained
income
current income to retained comprehensive income earnings
period earnings
Sunpower Technology
Planned for long-term
(Jiangsu) Group Co., 30,869,466.58
holding
Ltd.
Jiangxi Nuclear Power Planned for long-term
Co., Ltd. holding
Shenzhen
Petrochemical Products Planned for long-term
Bonded Trading Co., holding
Ltd.
Total 33,564,057.20 2,500,000.00 —
Unit: RMB
Increase/decrease in this period Balance
Beginnin
Profit or of
g Cash
loss of provisio
Beginning balance Chang dividends Ending
Addition investmen Adjustment Provisio n for
balance of Decrease es in or profits balance
Investee al t s to other n for Othe impairme
(book provisio Investmen Other declared (book
investme recognize comprehens impairme rs nt as at
value) n for t Equitie to be value)
nt d by the ive income nt the end
impairme s distribute
equity of the
nt d
method period
I. Associates
Jiangsu
Liaoyuan
Environme
ntal 97,697,539.
Protection 79
Technology
Co., Ltd.
Shenzhen
Yuanzhi
Ruixin New 40,737,926 7,114,625.5
Generation .61 8
Information
Technology
Increase/decrease in this period Balance
Beginnin
Profit or of
g Cash
loss of provisio
Beginning balance Chang dividends Ending
Addition investmen Adjustment Provisio n for
balance of Decrease es in or profits balance
Investee al t s to other n for Othe impairme
(book provisio Investmen Other declared (book
investme recognize comprehens impairme rs nt as at
value) n for t Equitie to be value)
nt d by the ive income nt the end
impairme s distribute
equity of the
nt d
method period
Private
Equity
Investment
Fund
Partnership
(Limited
Partnership
) (Note)
Shenzhen
Yuanzhi
Zhongkai
Energy
Storage 1,950,000.0 1,950,000.0
Technology 0 0
Innovation
Private
Fund
Increase/decrease in this period Balance
Beginnin
Profit or of
g Cash
loss of provisio
Beginning balance Chang dividends Ending
Addition investmen Adjustment Provisio n for
balance of Decrease es in or profits balance
Investee al t s to other n for Othe impairme
(book provisio Investmen Other declared (book
investme recognize comprehens impairme rs nt as at
value) n for t Equitie to be value)
nt d by the ive income nt the end
impairme s distribute
equity of the
nt d
method period
Partnership
(Limited
Partnership
)
Total
.83 .61 93 00 .15
Note: The decrease in the book value of the long-term equity investment in Yuanzhi Ruixin Information Technology Fund is mainly due to the exit from some underlying
investment projects during the current period, returning the project investment principal to the Company and distributing the returns, which resulted in a decrease in the book
value of the long-term equity investment.
(1) Investment properties measured at the cost mode
Unit: RMB
Item Houses and buildings Total
I. Original book value
II. Accumulated depreciation and
accumulated amortization
(1) Provision or amortization 83,278.38 83,278.38
III. Provision for impairment
IV. Book value
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 530,531,149.52 544,902,436.89
Liquidation of fixed assets
Total 530,531,149.52 544,902,436.89
(1) Fixed assets
Unit: RMB
Houses, buildings, and Means of Electronic equipment
Item Machinery equipment Total
decoration transportation and other equipment
I. Original book value
period
(1) Purchase 21,251.06 116,805.07 138,056.13
(2) Transfer-in of
construction in progress
(3) Increase in business
combination
period
(1) Disposal or write-off 219,164.95 219,164.95
(2) Others 86,242.15 125,915.02 212,157.17
II. Accumulated
depreciation
period
(1) Provision 2,904,207.42 13,516,378.17 3,984.19 388,507.54 16,813,077.32
(2) Increase in business
combination
period
(1) Disposal or write-off 197,248.45 197,248.45
(2) Others
III. Provision for
impairment
period
(1) Provision
period
(1) Disposal or write-off
IV. Book value
end of the period
beginning of the period
(2) Fixed assets without certificate of title
Unit: RMB
Reason that the certificate of
Item Book value
title was not completed
Comprehensive office building of
power plant 8,057,294.17
Turbine room 1,895,345.65
New power house (four-control
building) 865,000.00
Supporting production houses
Cooling tower 673,259.25 and historical legacy matters
Water treatment workshop 232,960.00
Circulating water pump room 196,984.54
Oil depot comprehensive building 443,246.19
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 3,283,591.43 3,113,338.75
Total 3,283,591.43 3,113,338.75
(1) Construction in progress situation
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Oil-to-gas project of
Nanshan Thermal Power 9,441,286.39 9,441,286.39 9,441,286.39 9,441,286.39
Station
Technical transformation
project of Nanshan 2,675,000.00 1,605,000.00 1,070,000.00 2,675,000.00 1,605,000.00 1,070,000.00
Thermal Power Station
Zhongshan Independent
Energy Storage Power
Station (Phases II and III)
Project
Zhongshanwan Solar-
Storage-Charging 1,576,059.24 1,576,059.24
Energy Service Project
Total 14,329,877.82 11,046,286.39 3,283,591.43 14,159,625.14 11,046,286.39 3,113,338.75
(2) Changes of significant construction in progress in the current period
Unit: RMB
Decrease in the current period
Name Beginning balance Increase in the current period Ending balance
Transfer to fixed assets Other decreases
Zhongshan
Independent Energy
Decrease in the current period
Name Beginning balance Increase in the current period Ending balance
Transfer to fixed assets Other decreases
Storage Power Station
(Phases II and III)
Project
Total 467,279.51 1,746,311.92 2,213,591.43
(Continued)
Accumulated Including: Capitalization
Proportion of the
Budget amount Engineering amount of Capitalized amount rate of the
project Source of
Name (RMB ten thousand Schedule interest of interest in the interests for
accumulative input funds
yuan) (%) capitalization current period the current
in budget (%)
(RMB 10,000) (RMB 10,000) period (%)
Zhongshan Independent
Energy Storage Power
Station (Phases II and III)
Project
Total 39,272 - - -
(1) Right-of-use assets status
Unit: RMB
Properties and Land use right and others
Item Total
buildings
I. Original book value
period
(1) New lease contracts 10,914,099.81 10,914,099.81
(2) Lease modification and
others
period
(1) Disposal
(2) Expiration of lease 8,696,499.48 8,696,499.48
contracts
II. Accumulated depreciation
period
(1) Provision 2,172,741.54 702,407.64 2,875,149.18
period
(1) Disposal
(2) Expiration of lease 8,696,499.48 8,696,499.48
contracts
III. Provision for impairment
period
period
Properties and Land use right and others
Item Total
buildings
IV. Book value
the period
beginning of the period
Note: (1) The increase in the right-of-use assets for houses and buildings in the current period is caused by the renting
of properties on the 16th and 17th floors of Hantang Building as office space under an operating lease with a new three-
year lease agreement to recognize the right-of-use assets; the decrease in the current period is due to the expiration and
termination of the original house lease terms.
(2) The right-of-use assets for land use right and others are mainly related to the construction of the Zhongshan
Independent Energy Storage Project by Shennan Power Xiwan Company, for which the project land and above-ground
buildings were leased, and the right-of-use assets were recognized.
(1) Intangible assets situation
Unit: RMB
Item Land use right Patent right Software Others Total
I. Original book
value
balance
current period
(1) Purchase 72,574.26 21,839.62 1,980.20 96,394.08
(2) Increase
through business
merger
current period
II. Accumulated
amortization
Item Land use right Patent right Software Others Total
balance
current period
(1) Provision 3,295.56 6,398.10 267,516.72 33.00 277,243.38
(2) Increase
through business
merger
current period
balance
III. Provision for
impairment
balance
current period
current period
IV. Book value
at the end of the 35,697.30 121,522.47 1,701,754.09 1,947.20 1,860,921.06
period
at the beginning 38,992.86 55,346.31 1,947,431.19 2,041,770.36
of the period
Unit: RMB
Beginning Increase in the Amortization in Other
Item Ending balance
balance current period the current period decreases
Overhaul
expenditur 6,497,593.73 148,763.21 972,531.00 5,673,825.94
e
Beginning Increase in the Amortization in Other
Item Ending balance
balance current period the current period decreases
Decoration
expenses
Total 6,567,159.05 148,763.21 1,042,096.32 5,673,825.94
(1) Deferred tax assets without offset
Unit: RMB
Ending balance Beginning balance
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
Assets Assets
differences differences
Fair value changes of
investments in other 2,500,000.00 625,000.00 2,500,000.00 625,000.00
equity instruments
Provision for bad debts 42,481.92 10,620.48 42,481.92 10,620.48
Estimated liabilities 345,106.00 86,276.50 345,106.00 86,276.50
Lease liabilities 25,814,315.97 6,453,578.99 25,839,468.05 6,459,867.02
Deductible losses 74,141,565.14 18,535,391.28 101,792,854.16 25,448,213.52
Total 102,843,469.03 25,710,867.25 130,519,910.13 32,629,977.52
(2) Deferred tax liabilities without offset
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences Liabilities differences Liabilities
Carrying amount of right-
of-use assets
One-off deduction for
fixed assets
Total 145,701,903.02 36,425,475.76 152,844,611.20 38,211,152.79
(3) Deferred tax assets or liabilities listed net amount after write-offs
Unit: RMB
Ending balance Beginning balance
Balance of
Offset amount Balance of deferred
Offset amount of deferred tax
Item of deferred tax tax assets or
deferred tax assets assets or
assets and liabilities after
and liabilities liabilities after
liabilities offset
offset
Deferred tax assets 21,447,819.57 4,263,047.69 28,365,118.64 4,264,858.88
Deferred tax liabilities 21,447,819.57 14,977,656.19 28,365,118.64 9,846,034.15
(4) Details of unconfirmed deferred tax assets
Item Ending balance Beginning balance
Deductible temporary differences (Note) 746,532,145.60 747,666,656.06
Deductible losses 570,969,455.61 582,960,196.13
Total 1,317,501,601.21 1,330,626,852.19
Note: Deductible temporary differences are the aggregate of all taxpaying entities within the consolidation scope,
without elimination, mainly formed due to the provision for impairment of long-term equity investments, inventory valuation
allowance, provision for impairment of fixed assets and provision for impairment of receivables, etc.
(5) Deductible losses from unrecognized deferred tax assets will be expired in the following years
Year Ending amount Beginning amount Remarks
Total 570,981,116.43 582,960,196.13
Unit: RMB
Ending balance Beginning balance
Provision Provision
Item Book
Book balance for Book value for Book value
balance
impairment impairment
Overhaul
expenditure on
generator sets of
Nanshan Thermal
Power Station
(Note 1)
Expenses related
to functional
replacement of 857,135.84 857,135.84 857,135.84 857,135.84
Nanshan Thermal
Power Station
Prepayments for
decoration 283,969.92 283,969.92
engineering
Cost of contract
acquisition
Total 5,487,497.73 5,487,497.73 857,135.84 857,135.84
Note: It was mainly due to the overhaul expenditure on generator sets of Nanshan Thermal Power Station occurred
during the Reporting Period. Since the repair project had not been completed and failed to meet the capitalization
conditions, it was stated as another non-current asset and would be converted into long-term prepaid expense after
capitalization conditions are met.
Unit: RMB
Ending balance Beginning balance
Item Type of Restriction Type of Restriction
Book balance Book value Book balance Book value
restriction details restriction details
Guarantee
deposits
Managed
Monetary Co-managed according to Guarantee
assets accounts, the use of deposits
payment specific
restricted project
funds
Subtotal 132,349,289.10 132,349,289.10 8,334,730.76 8,334,730.76
Accounts Pledge for Pledge for
receivable 7,796,560.54 7,796,560.54 Pledge bank 20,975,701.75 20,975,701.75 Pledge bank
(Note) borrowings borrowings
Fixed Pledge for Pledge for
assets 81,695,172.60 81,695,172.60 Pledge bank 81,695,172.60 81,695,172.60 Pledge bank
(Note) borrowings borrowings
Total 221,841,022.24 221,841,022.24 — — 111,005,605.11 111,005,605.11 — —
Note: The restriction to the ownership of the Company's assets during the Reporting Period were mainly due to the fact that Shennan Power Xiwan Company, a subsidiary
of the Company, pledged the fixed assets of its independent Energy Storage Power Station Project (Phase I) and 47.62% of the accounts receivable generated from its
operation to the Postal Savings Bank of China for a borrowing limit of RMB 88,995,600, and pledged 52.38% of the accounts receivable generated from the operation of its
Zhongshan Cuiheng New District 300MW/600MWh Independent Energy Storage Power Station Project (Phase I) to Shenzhen Branch of Shanghai Pudong Development Bank
for a borrowing limit of RMB 82,108,200.
(1) Classification of short-term borrowings
Unit: RMB
Type of borrowings Ending balance Beginning balance
Unsecured loan 142,000,000.00 142,000,000.00
In pledge for loan 30,000,000.00 30,000,000.00
Accrued interest on short-term
borrowings
Total 172,102,811.10 172,094,604.45
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Payment for goods, labor, and services 26,062,784.04 41,864,909.45
Electricity expenses 1,291,003.86 796,684.64
Total 27,353,787.90 42,661,594.09
(2) Significant accounts payable aged over 1 year or overdue
Unit: RMB
Reason for non-repayment or
Unit Ending balance
carry-over
Shenzhen Fenghui Technology Co., Ltd. 5,133,354.18 Payment period not expired
Guangzhou Zike Environmental
Protection Technology Co., Ltd.
Shenzhen Yongtai Digital Energy
Technology Co., Ltd.
Total 7,447,780.53 —
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 15,000,000.00 22,500,000.00
Other payables 12,224,007.81 10,823,386.05
Total 27,224,007.81 33,323,386.05
Unit: RMB
Item Ending balance Beginning balance
Ordinary shares dividends 15,000,000.00 22,500,000.00
Total 15,000,000.00 22,500,000.00
(1) Presentation of other payables by nature of payment
Unit: RMB
Nature of funds Ending balance Beginning balance
Labor and service fees 5,522,357.32 8,995,374.51
Cash deposit 851,095.72 1,254,325.72
Others 5,850,554.77 573,685.82
Total 12,224,007.81 10,823,386.05
(2) Other significant accounts payable aged over 1 year or overdue
Unit: RMB
Unit Ending balance Reason for non-repayment or carry-over
Zhongshan Xiwan Construction Investment
Co., Ltd.
Zhongshan Environmental Protection
Science Research Institute Co., Ltd.
Shenzhen Shennong Kitchen Co., Ltd. 300,000.00 Deposit not yet due for payment
Shenzhen Jinzhixin Investment Co., Ltd. 250,000.00 Deposit not yet due for payment
Zhongshan Nanlang Construction
Development Co., Ltd.
Total 5,668,300.78 —
(1) Details of contract liabilities
Unit: RMB
Item Ending balance Beginning balance
Advances for comprehensive energy
services 5,185,301.61
Advances for disposal of waste
materials 130,796.46
Total 5,185,301.61 130,796.46
(2) No significant contract liabilities aged over 1 year
(1) Presentation of employee compensation payable
Unit: RMB
Beginning Increase in the Decrease in the
Item Ending balance
balance current period current period
Short-term remuneration 19,496,493.95 52,060,175.15 66,732,085.95 4,824,583.15
Post-employment benefits-
defined contribution plans
Dismissal benefits
Other benefits due within one
year
Total 24,759,553.78 60,534,616.94 80,270,096.91 5,024,073.81
(2) Presentation of short-term compensation
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Salaries, bonuses,
allowances and subsidies
Employee benefits 639,003.62 1,566,529.45 1,960,531.57 245,001.50
Social insurance premiums 4,780.79 2,670,759.89 2,675,401.73 138.95
Including: Medical insurance
premiums
Work injury insurance
premiums
Maternity insurance 392.89 215,923.27 216,316.16
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
premiums
Housing fund 4,592,174.56 4,592,174.56
Labour union funds and
education funds
Short-term compensated
absences
Short-term profit sharing plan
Total 19,496,493.95 52,060,175.15 66,732,085.95 4,824,583.15
(3) Presentation of defined contribution plans
Unit: RMB
Beginning Increase in the Decrease in the
Item Ending balance
balance current period current period
Basic endowment
management insurance
Unemployment insurance
premiums
Enterprise annuity
payment
Total 5,263,059.83 8,474,441.79 13,538,010.96 199,490.66
Unit: RMB
Item Ending balance Beginning balance
Value-added tax 9,580,490.01 7,325,234.37
Enterprise income tax 115,538.36 590,069.41
Personal income tax 608,601.23 389,405.86
Land use tax 515,328.95
Property tax 453,733.31
Stamp duty 58,514.65 160,274.65
Urban maintenance and construction tax 9,727.15 31,046.65
Education surcharge 4,040.21 13,305.70
Local education surcharge 2,693.47 8,870.47
Item Ending balance Beginning balance
Others 13,591.08
Total 11,348,667.34 8,531,798.19
Unit: RMB
Item Ending balance Beginning balance
Long-term borrowings due within one year 5,620,014.06 4,156,564.01
Lease liabilities due within one year 4,515,527.22 3,184,246.73
Total 10,135,541.28 7,340,810.74
(1) Classification of other current liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 896,949.44 2,425,298.89
Total 896,949.44 2,425,298.89
(1) Classification of long-term borrowings
Unit: RMB
Type of borrowings Ending balance Beginning balance
In pledge for loan 165,631,166.72 168,421,492.31
Total 165,631,166.72 168,421,492.31
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 36,976,628.85 27,852,266.89
Non-current liabilities maturing within
-4,515,527.21 -3,184,246.73
one year
Total 32,461,101.64 24,668,020.16
Note: For details of matters related to new lease liabilities during the Reporting Period, please refer to the note
description of VII. 15 Right-of-use assets in the notes to the financial statements.
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Pending litigation (Note) 345,106.00 345,106.00
Others 19,839.00 19,839.00
Total 364,945.00 364,945.00 —
Note: It is mainly caused by the service agreement dispute between the Energy Technology Company, a subsidiary of
the Company, and Xinjiang Shizilu Information Consulting Co., Ltd. The pending litigation involves present obligations, and
the fulfillment of such obligations is likely to lead to an outflow of economic benefits from the Company. Since the relevant
amount can be measured reliably, estimated liability of RMB 345,106.00 is accrued accordingly.
(1) Classification of deferred income
Unit: RMB
Increase in
Decrease in the Reason for
Item Beginning balance the current Ending balance
current period formation
period
Government See Table (2)
Grants for details
Total 41,913,447.41 3,172,940.10 38,740,507.31 —
(2) Government subsidy projects
Unit: RMB
Subsidy Amount
increase recognized as Related to
Liabilities Beginning Others Ending
in the other income assets/inco
Item Balance Change Balance
current in the current me
period period
Shenzhen
Atmospheric Related to
Environment Quality assets
Improvement Subsidy
Subsidy Amount
increase recognized as Related to
Liabilities Beginning Others Ending
in the other income assets/inco
Item Balance Change Balance
current in the current me
period period
Technical
transformation Related to
investment project assets
funding for 2021-2022
Sludge Drying
Equipment Circular Related to
Economy Support assets
Fund
Green Development
Supporting and
Industrial "Carbon
Peaking" Support
Related to
Plan to fund industrial 547,500.00 273,750.00 273,750.00
assets
energy resource
conservation and
comprehensive
utilization projects
Government
subsidies for low Related to
nitrogen equipment assets
transformation
Industrial
Related to
development fund 375,000.00 187,500.00 187,500.00
assets
subsidy
Motor energy
efficiency Related to
improvement support assets
plan subsidy
Total 41,913,447.41 3,172,940.10 38,740,507.31
Unit: RMB
Changes during the period (+, -)
Shar
es
as Shares as
divid dividend
Beginning
Item New end converted Othe Subtot Ending balance
balance
issues conv from rs al
erted capital
from reserves
profi
t
Total shares 602,762,596.00 602,762,596.00
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Equity premium 233,035,439.62 233,035,439.62
Other capital reserves 129,731,962.76 129,731,962.76
Total 362,767,402.38 362,767,402.38
Unit: RMB
Amount in the current period
Less: Amount Less: Amount
recognized as recognized as
other other
Amount comprehensive comprehensive
Less: Attributable Attributable
Beginning before income in the income in the Ending
Item Income to the parent to minority
Balance income tax in previous previous period Balance
tax company shareholders
the current period and and transferred to
expense after tax after tax
period transferred to retained earnings
profit or loss in in the Reporting
the Reporting Period
Period
I. Other
comprehensive income
that cannot be 31,064,057.20 31,064,057.20
reclassified as profits
or losses
Including: changes in
fair value of other
equity instrument
investments
II. Other
-3,928.35 -3,928.35 -3,928.35
comprehensive income
Amount in the current period
Less: Amount Less: Amount
recognized as recognized as
other other
Amount comprehensive comprehensive
Less: Attributable Attributable
Beginning before income in the income in the Ending
Item Income to the parent to minority
Balance income tax in previous previous period Balance
tax company shareholders
the current period and and transferred to
expense after tax after tax
period transferred to retained earnings
profit or loss in in the Reporting
the Reporting Period
Period
reclassified as profits
and losses
Including:
Translation differences
-3,928.35 -3,928.35 -3,928.35
of financial statements
in foreign currency
Total of other
comprehensive 31,064,057.20 -3,928.35 -3,928.35 31,060,128.85
income
Unit: RMB
Beginning Increase in the Decrease in the Ending
Item
balance current period current period balance
Safety
production 410,577.62 2,141,792.87 2,008,285.19 544,085.30
fund
Total 410,577.62 2,141,792.87 2,008,285.19 544,085.30
Note: Pursuant to the Administrative Measures for the Extraction and Use of Enterprise Work Safety
Funds (Cai Zi [2022] No. 136) (issued on December 12, 2022), the Company's electricity generation
business extracts work safety funds and recognizes the same in current gains/losses, and simultaneously
recognizes the same as special reserves.
Unit: RMB
Increase in
Decrease in the
Item Beginning balance the current Ending balance
current period
period
Statutory surplus
reserves
Discretionary
surplus reserves
Total 332,908,397.60 332,908,397.60
Unit: RMB
Item Current period Previous period
Retained earnings as at the end of the previous period 347,646,697.47
before the adjustment
Adjustment to total undistributed profits at the beginning
of the period (+ for increase and - for decrease)
Including: retroactive adjustment to the Accounting
Standards for Business Enterprises and relevant new
regulations
Change to accounting policies
Item Current period Previous period
Correction of prior period errors
Changes in the scope of consolidation
under common control
Other adjustment factors
Undistributed profits at the beginning of the period after
adjustment
Plus: Net profit attributable to owners of the parent
company in this period
Less: Appropriation of statutory surplus reserves
Appropriation of discretionary surplus reserve
Appropriation to general risk reserves
Ordinary share dividends payable 19,288,403.07
Ordinary share dividends transferred to capital
stock
Transfer of other comprehensive income into
retained earnings
Others -1,352,892.26
Undistributed profits as at the end of the period 348,191,596.86 164,868,987.43
(1) Operating income and cost of sales
Unit: RMB
Amount in the current period Amount in the previous period
Item
Income Cost Income Cost
Principal activity 200,425,269.14 137,223,915.86 162,292,199.47 159,841,635.44
Other businesses 1,383,033.19 291,852.92 4,097,754.78 2,255,141.17
Total 201,808,302.33 137,515,768.78 166,389,954.25 162,096,776.61
(2) Breakdown by type of goods or services
Amount in the previous
Item Amount in the current period period
Income Cost Income Cost
Electricity generation and 140,852,547.6 111,003,693.0 145,150,536.7 147,223,840.4
sales 7 3 6 7
Comprehensive energy 68,683,447.91 35,292,417.16 27,098,360.08 21,157,322.09
services
Others 1,383,033.19 291,852.92 4,333,656.63 2,353,720.95
-9,110,726.44 -9,072,194.33 - -8,638,106.90
Offset upon consolidation
Total 3 8 5 1
(3) Breakdown by region
Amount in the current period Amount in the previous period
Item
Income Cost Income Cost
Domestic 199,486,835.48 136,700,079.55 166,389,954.25 162,096,776.61
Overseas 2,321,466.85 815,689.23 0.00 0.00
Total 201,808,302.33 137,515,768.78 166,389,954.25 162,096,776.61
(4) Income from contracts
Amount in the current Amount in the previous
Item period period
Income Income
By contract performance obligation
Including: Income recognized at a point
of time
Income recognized over a period
of time
Total 201,808,302.33 166,389,954.25
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Property tax 702,206.55 1,056,802.56
Land use tax 306,112.50 392,509.86
Urban maintenance and
construction tax
Stamp duty 124,932.48 185,091.20
Education surcharge 123,563.47 145,567.18
Amount in the current Amount in the previous
Item
period period
Local education surcharge 82,375.66 97,044.77
Environmental protection tax 7,091.77 8,829.56
Vehicle and vessel tax 1,080.00 360.00
Total 1,635,481.20 2,225,967.73
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Employee Compensation 1,780,038.05 871,824.28
Entertainment fees 252,461.08 34,674.90
Travel expenses 220,431.31 63,490.48
Technical service fees 38,173.59
Intermediary fees 27,987.42 64,150.94
Office expenses 10,246.02 1,603.77
Lease expense 3,069.31
Others 12,337.55 12,432.56
Total 2,344,744.33 1,048,176.93
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Employee Compensation 24,160,521.87 23,431,922.15
Depreciation charges 2,709,128.99 3,078,250.26
Lease expense 2,199,837.54 2,458,091.14
Intermediary fees 687,168.92 1,155,172.36
Water, electricity, and property
management fees
Greening and cleaning fees 459,191.10 361,632.93
Vehicle usage fees 338,809.28 453,043.27
Travel expenses 307,770.07 194,065.01
Amount in the current Amount in the previous
Item
period period
Amortization of intangible assets 257,515.50 178,015.80
Entertainment fees 250,067.57 534,218.98
Labor and technical service fees 248,593.75 103,763.73
Repair fees 180,411.71 212,903.23
Office expenses 162,875.03 156,835.02
Communication and information fees 133,391.10 373,785.16
Securities registration fees 47,098.05 21,366.15
Board of Directors' expenses 5,036.14 5,792.50
Others 715,368.95 740,712.06
Total 33,344,820.84 34,186,284.20
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Employee Compensation 7,462,171.98 8,153,835.98
Depreciation charges 235,745.16 394,879.28
Others 2,205.00 3,720.00
Total 7,700,122.14 8,552,435.26
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Interest expense 5,189,508.63 3,740,764.90
Less: Interest income 167,431.10 2,386,769.54
Add: Exchange loss 121,956.41 25,370.15
Other expenses 88,912.32 33,007.66
Total 5,232,946.26 1,412,373.17
Unit: RMB
Amount in the current Amount in the previous
Sources of other income
period period
Government Grants 3,181,039.21 3,172,940.10
Individual income tax refund 76,636.68 110,868.48
Others 9,000.00 29,250.00
Total 3,266,675.89 3,313,058.58
Government grants recognized as other income
Related
to assets/
Amount in the Amount in the
Grants Related
current period previous period
to
income
Shenzhen Atmospheric Environment Quality Related to
Improvement Subsidy assets
Green Development Supporting and Industrial
"Carbon Peaking" Support Plan Related to
to fund industrial energy resource conservation assets
and comprehensive utilization
Government subsidies for low nitrogen Related to
equipment transformation assets
Related to
Industrial development fund subsidy 187,500.00 187,500.00
assets
Sludge Drying Equipment Circular Economy Related to
Support Fund assets
Technical transformation investment project Related to
funding for 2021-2022 assets
Motor energy efficiency improvement support Related to
plan subsidy assets
Project subsidy to encourage profit-making 5,099.11 Related to
service enterprises to expand and strengthen income
One-time job expansion subsidy 3,000.00 Related to
income
Total 3,181,039.21 3,172,940.10
Unit: RMB
Sources of gains from changes in Amount in the current Amount in the previous
the fair value period period
Trading financial assets 643,644.40
Total 643,644.40
Unit: RMB
Amount in the Amount in the
Item
current period previous period
Investment income from financial assets held for
trading during the holding period
Returns on long-term equity investments calculated
by the equity method
Dividend income from investments in other equity
instrument during the holding period
Total 17,140,509.64 13,771,642.72
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Bad debt loss of accounts receivable -2,159,157.71
Total -2,159,157.71
Unit: RMB
Source of gains from disposal Amount in the previous
Amount in the current period
of assets period
Gains on disposal of non-current
assets
Total 365,503.54 1,156,732.52
Unit: RMB
Amount included
Amount in the Amount in the in the current non-
Item
current period previous period recurring profit or
loss
Recovery of historical legacy
funds
Total 263,914.26 263,914.26
Unit: RMB
Amount included
Amount in the Amount in the in the current
Item
current period previous period non-recurring
profit or loss
Payment for liquidated
damages and other funds
Total 270.20 92,279.19 270.20
(1) Income tax expenses schedule
Unit: RMB
Amount in the Amount in the
Item
current period previous period
Deferred income tax expense 5,133,433.23
Income tax expenses for the current period 14,764.28 53,667.86
Total 5,148,197.51 53,667.86
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Item Amount in the current period
Total consolidated profit in the current period 33,555,238.60
Income tax expense calculated at legal/applicable tax
rate
Impact of different tax rates applied by subsidiaries 2,158,732.49
Impact of income tax in the periods before adjustment
Impact of non-taxable income -2,434,602.70
Item Amount in the current period
Impacts of non-deductible costs, expenses, and losses 138,116.44
Impact of additional deduction for R&D expenses -1,155,018.32
Impact of using deductible losses on the deferred tax
-932,204.58
assets not recognized previously
Effect of deductible temporary differences or
deductible losses from deferred tax assets -31,215,350.21
unrecognized in the current period
Income tax expense 5,148,197.51
For details, please refer to "Note VII. 35 Other comprehensive income".
(1) Cash related to operating activities
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Received current accounts, etc. 5,397,518.13 9,681,785.94
Recovered guarantee deposits 3,700,000.00
Interest revenue 225,983.15 676,917.86
Income from government grants 75,193.90 110,868.48
Total 9,398,695.18 10,469,572.28
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Paid guarantee deposits 123,136,578.90
Expenses during payment term 9,989,384.72 7,982,293.72
Paid current accounts, etc. 1,282,764.03 1,498,618.82
Total 134,408,727.65 9,480,912.54
(2) Cash related to investing activities
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Cash from redemption of structural deposits,
large-denomination certificates of deposit, etc.
Recovery of principal and interest of loans from
non-related parties
Total 74,958,596.95 15,015,192.12
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Savings for structural deposits, large-
denomination certificates of deposit, etc.
Cash paid for liquidation and deregistration of
subsidiaries
Total 193,645,193.91
(3) Cash related to financing activities
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Payment for principal and interest of lease
liabilities
Total 2,292,033.43 2,142,680.00
Unit: RMB
Increase in the current period Decrease in the current period
Item Beginning balance Non-cash Non-cash Ending balance
Cash changes Cash changes
Change Change
Short-term borrowings 172,094,604.45 1,929,824.39 1,921,617.74 172,102,811.10
Long-term borrowings 168,421,492.31 2,790,325.59 165,631,166.72
Non-current liabilities
maturing within one 7,340,810.74 9,216,090.49 5,961,617.92 459,742.03 10,135,541.28
year
Lease liabilities 24,668,020.16 7,852,966.54 59,885.06 32,461,101.64
Total 372,524,927.66 18,998,881.42 7,883,235.66 3,309,952.68 380,330,620.74
(1) Supplementary information to the statement of cash flows
Unit: RMB
Amount for the
Supplementary information Current amount
previous period
— —
from operating activities:
Net profit 28,407,041.09 -25,036,572.88
Add: Provision for asset impairment
Credit impairment loss 2,159,157.71
Depreciation of fixed assets and investment
property
Depreciation of right-of-use assets 2,875,149.18 2,876,532.54
Amortization of intangible assets 277,243.38 188,865.06
Amortization of long-term prepaid expense 1,042,096.32 854,717.25
Amortization of deferred income -3,172,940.10 -3,172,940.10
Losses on disposal of fixed assets, intangible
assets and other long-lived assets (" " indicates -365,503.54 -1,156,732.52
income)
Losses on scrap of fixed assets (" " indicates
income)
Losses on changes in fair value (" " indicates
-643,644.40
income)
Finance costs (" " indicates income) 5,232,946.26 1,412,373.17
Investment loss (" " indicates income) -17,140,509.64 -13,771,642.72
Decrease in deferred tax assets ("-" for increase) 1,811.19
Increase in deferred income tax liabilities (" "
indicates decrease)
Decrease in inventories (" " indicates increase) -837,963.28 1,846,599.47
Decrease in accounts receivable generated from
-116,719,238.51 318,259.02
operating activities (" " indicates increase)
Increase in accounts payable used in operating
-36,826,401.77 -38,073,551.74
activities (" " indicates decrease)
Others
Net cash generated from/used in operating -113,682,778.37 -62,253,765.51
Amount for the
Supplementary information Current amount
previous period
activities
activities not involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
Ending balance of cash 114,647,089.18 104,140,868.84
Less: beginning balance of cash 133,255,608.28 471,067,121.66
Plus: ending balance of cash equivalents
Less: beginning balance of cash equivalents
Net increase in cash and cash equivalents -18,608,519.10 -366,926,252.82
(2) Breakdowns of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 114,647,089.18 133,255,608.28
Including: Cash on hand 29,648.02 30,635.37
Bank deposits available for payment at any time 113,605,282.34 133,224,939.08
Other monetary funds available for payment at
any time
Deposits with central bank available for
payment
Deposits with banks and other financial
institutions
Placements with banks and other financial
institutions
II. Cash equivalents
Including: investments in bonds maturing within
three months
III. Ending balance of cash and cash
equivalents
Including: Cash and cash equivalents with
restricted use right by the parent company or
Item Ending balance Beginning balance
subsidiaries of the Company
(3) Monetary funds not classified as cash and cash equivalents
Unit: RMB
Reasons for not
classifying the
Amount for the
Item Current amount funds as cash
previous period
and cash
equivalents
Frozen,
Guarantee deposits, etc. 127,729,947.70 5,112,100.00
restricted
Co-managed
accounts,
Co-managed account funds 4,619,341.40
payment
restricted
Total 132,349,289.10 5,112,100.00
(1) Foreign currency monetary items
Unit: RMB
Ending balance of Exchange Ending balance of
Item
foreign currency rate translated RMB
Monetary assets — — 7,016,903.90
Including: USD 952,264.41 6.8109 6,485,777.67
EUR 1,018.00 7.7671 7,906.91
HKD 589,516.82 0.8685 512,024.82
Singapore Dollar 2,128.03 5.2605 11,194.50
(2) Description of foreign operating entities, including, for significant foreign operating
entities, disclosure of their principal place of business outside of the country, the recording
currency and the basis of selection, and disclosure of the reasons for any change in the
recording currency
Significant business Main place of Recording
Basis of selection
entities overseas business Currency
Cambodia Branch,
Settlement currency for local
Shenzhen Shennan Power Cambodia USD
business activities
Gas Turbine Engineering
Significant business Main place of Recording
Basis of selection
entities overseas business Currency
Technology Co., Ltd.
(1) The Company acted as lessee:
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Interest expense on lease liabilities 390,186.22 470,748.87
Total cash outflow related to leases 2,253,512.11 2,142,680.00
(2) The Company acted as the lessor
Including: revenue related to
Item Lease income variable lease payments not
included in lease receipts
House leasing 969,914.75
Total 969,914.75
VIII. R&D expenditures
Unit: RMB
Amount in the previous
Item Amount in the current period
period
Employee Compensation 7,462,171.98 8,153,835.98
Depreciation charges 235,745.16 394,879.28
Others 2,205.00 3,720.00
Total 7,700,122.14 8,552,435.26
Including: Expensed R&D
expenditure
Capitalized R&D
expenditure
IX. Changes in Consolidation Scope
(1) The Company invested and established a controlling subsidiary, Shennan Power Zhengmai
Energy Technology (Shenzhen) Co., Ltd., which completed its industrial and commercial registration on
May 22, 2026, and has been stated as the scope of the Company's consolidated financial statements
since then.
(2) On June 30, 2026, the Company signed the Capital Contribution and Cooperation Agreement on
the Joint Establishment of Shennan Power Shangao Smart Energy (Shenzhen) Co., Ltd. with Shandong
Hi-Speed (Shenzhen) Investment Co., Ltd. to jointly establish Shennan Power Shangao Smart Energy
(Shenzhen) Co., Ltd., which completed its industrial and commercial registration on July 21, 2026, and
has been included in the scope of the Company's consolidated statements since then.
The Company disclosed the Announcement on External Investment to Establish a Controlling
Subsidiary (Announcement No.: 2026-041) on the Shenzhen Stock Exchange on July 2, 2026, fulfilling its
information disclosure obligations regarding the above matters.
X. Equity in other entities
(1) Compositions of the Group
Shareholding percentage
Main place
(%) Acquisition
Name of subsidiary of
method
business Direct Indirect
Shennan Power (Zhongshan)
Zhongshan 80.00 Establishment
Electric Power Co., Ltd.
Shenzhen Shennan Power Gas
Turbine Engineering Technology Shenzhen 100.00 Establishment
Co., Ltd.
Shenzhen Shennan Power
Shenzhen 100.00 Establishment
Environmental Protection Co., Ltd.
Shenzhen Xiefu Energy Co., Ltd. Shenzhen 50.00 Establishment
Shenzhen New Power Industrial
Shenzhen 100.00 Establishment
Co., Ltd.
Shennan Energy (Singapore) Pte.
Singapore 100.00 Establishment
Ltd.
Shareholding percentage
Main place
(%) Acquisition
Name of subsidiary of
method
business Direct Indirect
Hong Kong Xingdesheng Co., Ltd. Hong Kong 100.00 Establishment
Shennan Power Xiwan Energy
Zhongshan 51.00 Establishment
(Zhongshan) Co., Ltd.
Shennan Power Energy Technology
Chengdu 75.00 Acquisition
(Sichuan) Co., Ltd.
Shennan Power Zhengmai Energy
Shenzhen 51.00 Establishment
Technology (Shenzhen) Co., Ltd.
(2) Significant non-wholly-owned subsidiaries
Unit: RMB
Dividends
Profit or loss
Shareholding declared to be Balance of
attributable to
of minority distributed to minority interests
Name of subsidiary minority
shareholders minority as at the end of the
shareholders
(%) shareholders period
in this period
in this period
Shennan Power
(Zhongshan) Electric 20.00 766,201.52 -12,438,227.04
Power Co., Ltd.
Shennan Power Energy
Technology (Sichuan) 25.00 -203,526.65 5,354,768.39
Co., Ltd.
(3) Key financial information of significant non-wholly-owned subsidiaries
Unit: RMB
Ending balance
Name of subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Shennan Power (Zhongshan) Electric Power Co., 471,991,978.71 205,995,685.90 677,987,664.61 550,503,474.38 205,493,090.82 755,996,565.20
Ltd.
Shennan Power Energy Technology (Sichuan) Co., 99,249,823.85 4,013,659.55 103,263,483.40 81,121,027.96 444,193.39 81,565,221.35
Ltd.
(Continued)
Beginning balance
Name of subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Shennan Power (Zhongshan) Electric Power Co.,
Ltd.
Shennan Power Energy Technology (Sichuan) Co.,
Ltd.
(Continued)
Amount in the current period
Net cash generated
Name of subsidiary Total comprehensive
Operating revenue Net profit from/used in operating
income
activities
Shennan Power (Zhongshan) Electric Power Co.,
Ltd.
Shennan Power Energy Technology (Sichuan) Co.,
Ltd.
(Continued)
Amount in the previous period
Net cash generated
Name of subsidiary
Operating revenue Net profit Total comprehensive income from/used in operating
activities
Shennan Power (Zhongshan) Electric Power Co.,
Ltd.
Shennan Power Energy Technology (Sichuan) Co.,
Ltd.
(1) Summarized financial insignificant of unimportant joint ventures and associates
Unit: RMB
Ending balance/amount incurred Beginning balance/amount
in the current period incurred in previous period
Associates:
Total book value of investments 166,565,065.15 196,827,515.83
The total of following items according
to the shareholding proportions
-Net profit 11,248,316.94 8,867,883.86
-Other comprehensive income
-Total comprehensive income 11,248,316.94 8,867,883.86
XI. Government grants
Unit: RMB
Subsidy Amount recognized
Amount transferred to other
increase in as non-operating
Account title Beginning balance income for the current
the current income for the
period
period current period
Deferred
income
(Continued)
Other changes in the current Related to assets/
Account title Ending balance
period income
Deferred income 38,740,507.31 Related to assets
Unit: RMB
Account title Amount in the current period Amount in the previous period
Other income 3,172,940.10 3,172,940.10
XII. Risks associated with financial instruments
The Company's main financial instruments are equity investments, long-term and short-term borrowings, accounts
receivable, accounts payable, other receivables, etc., which result in various financial instrument risks in its daily business
operations, mainly including exchange rate risks, interest rate risks, price risks, credit risks, and liquidity risks. The risks
associated with these financial instruments and the risk management policies adopted by the Company to mitigate such
risks are described below. The Management of the Company manages and monitors risk exposures to keep such risks
under control within the limited scope.
The Company adopts sensitivity analysis to analyze the possible impact of reasonable and possible changes of risk
variables on the current gains/losses or shareholders' equity. As any risk variable seldom changes in isolation, and the
correlation between the variables will have a significant effect on the final affected amount of the change of a risk variable,
the following contents are carried out under the assumption that the change of each variable is independently.
The Company's objective in engaging in risk management is to achieve an appropriate balance between risks and
returns, minimize the negative impact of risks on the Company's operation, and maximize the interests of shareholders
and other equity investors. Based on such risk management objective, the Company's basic risk management strategy is
to determine and analyze risks , establish an appropriate risk tolerance bottom line and risk management, and timely and
reliable supervision of all risks, to control the risks within the limited scope.
(1) Market risks
Exchange rate risks refer to the risks that the fair value or future cash flows of a financial instrument may fluctuate due
to changes in foreign exchange rates. The Company tries to align foreign currency income with foreign currency
expenditures to mitigate exchange rate risks. In addition, the Company may also sign forward foreign exchange contracts
or currency swap contracts to achieve the purpose of hedging exchange rate risks. During the current and previous periods,
the Company did not sign any forward foreign exchange contract or currency swap contract.
The exchange rate risks faced by the Company mainly arise from financial assets and liabilities denominated in foreign
currencies. The amount of financial assets and liabilities in foreign currencies converted into RMB are presented as follows:
Unit: RMB
Item Ending balance Beginning balance
Monetary funds - USD 6,485,777.67 5,924,483.72
Monetary funds - Other foreign currencies 531,126.23 125,117.98
Total 7,016,903.90 6,049,601.70
Interest rate risks refer to the risks that the fair value or future cash flows of a financial instrument may fluctuate due
to changes in market interest rates. The risk of changes in cash flows of financial instruments caused by interest rate
changes is mainly related to bank borrowings with floating interest rates. The sensitivity analysis of interest rate risks is
based on the following assumptions:
Changes in market interest rates may affect the interest income or expense of variable-rate financial instruments; for
fixed-rate financial instruments measured at fair value, changes in market interest rates only affect the interest income or
expense; for derivative financial instruments designated as hedging instruments, changes in market interest rates affect
the fair value, and all interest rate hedges are expected to be highly effective; the discounted cash flow method is used to
calculate the fair value changes of derivative financial instruments and other financial assets and liabilities based on the
market interest rates on the balance sheet date.
(2) Credit risk
Credit risks refer to the risks that one party to a financial instrument fails to discharge an obligation, resulting in
financial losses to the other party. The Company is mainly exposed to customer credit risks caused by sales on credit.
Before signing a new agreement, the Company evaluates the credit risks of new customers, including external credit
ratings and, in some cases, bank reference letters (if available). The Company has set a credit limit for each customer,
namely the maximum amount without requisite additional approval.
The Company keeps overall credit risks under control through quarterly monitoring of the credit ratings of existing
customers and monthly review of the aging analysis of accounts receivable. In monitoring the credit risks of customers,
they are grouped according to credit characteristics. Customers rated as "high risk" are placed on the restricted customer
list, and only with additional approval may the Company sell on credit in future periods; otherwise, customers are
required to pay in advance.
(3) Liquidity risks
Liquidity risks refer to the risks that an enterprise may encounter a shortage of funds when performing obligations
settled by delivering cash or other financial assets. The Company's policy is to ensure that it has sufficient cash to repay
mature debts. Liquidity risks are managed and controlled by the Financial Department of the Company to ensure
sufficient funds to repay debts under all reasonably foreseeable circumstances by monitoring cash balances, marketable
securities that can be realized at any time and roll forecasts of cash flows for the next 12 months.
The Company adopts sensitivity analysis to analyze the possible impact of reasonable and possible changes of risk
variables on the current gains/losses or shareholders' equity. As any risk variable seldom changes in isolation, and the
correlation between the variables will have a significant effect on the final affected amount of the change of a risk variable,
the following contents are carried out under the assumption that the change of each variable is independently.
(1) Sensitivity analysis of foreign exchange risks
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow hedging of overseas
operations are highly effective.
On the basis of the above assumption, provided that other variables remain unchanged, the impact of reasonable
changes in the exchange rate on current gains/losses and equity after tax is as follows:
Unit: RMB
Amount in the current period Amount in the previous period
Item Exchange rate Impact on net Impact on Impact on net Impact on
fluctuations profit shareholders' profit shareholders'
equity equity
All foreign Revaluation against
currencies RMB by 5%
All foreign Depreciation against
-350,845.19 -350,845.19 -308,890.90 -308,890.90
currencies RMB by 5%
(2) Sensitivity analysis of interest rate risks
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with variable interest
rates;
For financial instruments with fixed interest rates measured at fair value, market interest rate changes affect only
their interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets and liabilities are calculated
at the market interest rate on the balance sheet date by discounted cash flow.
As of June 30, 2026, the interests of the Company's bank borrowings with floating interest rates totaled RMB
those of long-term borrowings were RMB 2,431,171.18. On the basis of the above assumptions, if other variables remain
unchanged, the pre-tax impact of an assumed change in interest rates of 50 basis points on the current gains/losses and
shareholders' equity is as follows:
Unit: RMB
Amount in the current period Amount in the previous period
Interest
Impact on Impact on
Item rate Impact on net Impact on net
shareholders' shareholders'
fluctuations profit profit
equity equity
Borrowings Increased by
at floating 50 basis -218,049.78 -218,049.78 -67,598.13 -67,598.13
interest points
rates
Borrowings
Decreased
at floating
by 50 basis 218,049.78 218,049.78 67,598.13 67,598.13
interest
points
rates
XIII. Disclosure of fair value
The input values used for fair value measurement are divided into three levels:
The Level-1 input is an unadjusted quoted price in an active market for the same assets and liabilities available on
the measurement date.
Level 2 input value is the directly or indirectly observable input value of the relevant assets or liabilities except for the
level 1 input value.
The Level-3 inputs are the unobservable inputs of related assets and liabilities.
The level to which the fair value measurement result belongs is determined by the lowest level that is significant to
the fair value measurement as a whole.
Unit: RMB
F a i r va l u e a s a t t h e e n d o f t h e p e r i o d
Level-1 fair
Item value Level-2 fair value Level-3 fair value
Total
measureme measurement measurement
nt
I. Continuous fair value
— — — —
measurement
(I) Trading financial assets 50,643,644.40 50,643,644.40
at fair value through current
profit or loss
designated to be measured at
fair value through current
gains/losses
(1) Investments in debt
F a i r va l u e a s a t t h e e n d o f t h e p e r i o d
Level-1 fair
Item value Level-2 fair value Level-3 fair value
Total
measureme measurement measurement
nt
instruments
(2) Investments in equity
instruments
(II) Other debt investments
(III) Other equity instrument
investments
Total assets continuously
measured at fair value
sustainable items measured on the basis of fair value of level 2
The fair value of ending structural deposits is subject to the forecast of future cash flows according to the product
type and yield.
continuously and non-continuously measured at Level-3 fair value
For non-trading equity instrument investments and private equity investments, the Company uses valuation
techniques to determine their fair value. The valuation models used are mainly discounted cash flow model and market
comparable company model. The inputs of valuation techniques mainly include risk-free interest rate, benchmark interest
rate, exchange rate, credit spread, liquidity premium, and illiquidity discount.
XIV. Related parties and related party transactions
No shareholder of the Company holds 50% or more shares, and none forms a control over the Company through other
means. Therefore, the Company does not have a parent company.
Please refer to "Note X.1. (1) Subsidiaries" for the information of subsidiaries.
Names of other related parties Relationship between other related parties with the COOEC
Shenzhen Energy Group Co., Ltd. Legal persons holding 5% or more shares of the Company
Hong Kong Nam Hoi (International) Limited Legal persons holding 5% or more shares of the Company
Shenzhen Guangju Industrial Co., Ltd. Legal persons holding 5% or more shares of the Company
Shenzhen Capital Holdings Co., Ltd. Legal persons indirectly holding 5% or more shares of the Company
Shenzhen Guangju Energy Co., Ltd. and its Shenzhen Guangju Energy Co., Ltd. is a legal person indirectly
subsidiaries holding 5% or more shares of the Company.
Shenzhen MTC Co., Ltd. An enterprise controlled by Shenzhen Capital Holdings Co., Ltd.
An affiliate in which Shenzhen Capital Holdings Co., Ltd. holds
Shenzhen Clou Electronics Co., Ltd.
shares
Shenzhen IBE Green Technology Culture Co., An affiliate ultimately controlled by Shenzhen Capital Holdings Co.,
Ltd. Ltd.
Directors and senior executives of the Company Key management personnel
(1) Related party transactions on purchase and sales of goods, rendering and receipt of services
Unit: RMB
Content of related-party Amount in the Amount in the
Related party
transactions current period previous period
Shenzhen Institute of Building
Provision of event venues,
Research Co., Ltd. and its 6,080.00
materials, etc.
subsidiaries
Shenzhen Clou Electronics Co., Ltd. Energy management
and its subsidiaries services
Total 2,164,080.00
Unit: RMB
Content of related- Amount in the current Amount in the previous
Related party
party transactions period period
Energy management
Shenzhen MTC Co., Ltd. 670,905.29 780,548.34
services
Total 670,905.29 780,548.34
(2) Guarantee of related parties
During the Reporting Period, the Company had no related party guarantee.
(3) Remuneration of key management personnel
Amount in the previous
Item Amount in the current period
period
Remuneration for key management personnel RMB 2,371,200 RMB 2,725,500
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Project Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts Shenzhen Energy
receivable Group Co., Ltd.
Accounts Shenzhen MTC Co.,
receivable Ltd.
Contract Shenzhen MTC Co.,
assets Ltd.
China Technology
Contract
Development Group 1,664.15
assets
Corporation
Shenzhen Clou
Accounts
Electronics Co., Ltd. 8,502.00 66,264.00
receivable
and its subsidiaries
Contract Shenzhen Clou
assets Electronics Co., Ltd.
Other Shenzhen Clou
receivables Electronics Co., Ltd.
Total 7,042,035.93 7,435,210.62
(2) Payables
Unit: RMB
Ending balance Beginning balance
Provision Provision
Project Related party
Book balance for bad Book balance for bad
debts debts
Shenzhen Clou
Accounts
Electronics Co., Ltd. 16,950.00 900,000.00
payable
and its subsidiaries
Total 16,950.00 900,000.00
XV. Commitments and Contingencies
(1) Information on letters of guarantee issued as of June 30, 2026
The Company's subsidiary, Energy Technology Company, issued a performance guarantee of RMB 68.2071 million
through Shenzhen Yuncheng Branch of China Merchants Bank, of which RMB 36.7269 million will expire on December 24,
The Company's subsidiary, Shennandian Engineering Company, issued a performance guarantee of USD 5.1559
million through Shenzhen Branch of China Merchants Bank (equivalent to approximately RMB 35.9734 million, based on
the central parity rate of 6.9771 announced on the official website of the People's Bank of China on January 29, 2026),
which will expire on February 28, 2035.
The Company issued a performance guarantee of USD 5.1559 million for Shennandian Engineering Company through
Shenzhen Branch of China Merchants Bank (equivalent to approximately RMB 35.3841 million, based on the central parity
rate of 6.8628 announced on the official website of the People's Bank of China on April 30, 2026), which will expire on
February 28, 2035. For details, please refer to the Progress Announcement on Providing Guarantees for Holding
Subsidiaries in 2026 (Announcement No.: 2026-033) disclosed by the Company on Securities Times and CNINFO on May
The Company applied to Shenzhen Branch of Industrial Bank Co., Ltd. for the issuance of a payment guarantee of
RMB 30,000,000 within the credit line, which will expire on July 10, 2026.
(2) Other Commitments
As of June 30, 2026, except for the above-mentioned matters, the Company had no other important commitments
subject to disclosure.
As of June 30, 2026, the Company had no important contingencies subject to disclosure.
XVI. Matters following the Balance Sheet Date
As of June 30, 2026, the Company had no other subsequent matters subject to disclosure.
XVII. Other Significant Matters
According to the enterprise annuity plan, the Company accrues and pays enterprise annuities at 8% of employees'
salaries.
Determination basis and accounting policies for reporting segments
For management purposes, the Company and its subsidiaries are divided into business units based on products and
services, and the Company has the following three reporting segments:
① Electricity generation and sales segment;
① Comprehensive energy services segment;
① Other segments.
The Management of the Company regularly evaluates the operating results of the segments to determine the allocation
of resources and evaluate their performance.
Information on segment reporting is disclosed according to the accounting policies and measurement standards
adopted by each segment when reporting to the management, and these measurement bases are consistent with the
accounting and measurement bases when preparing the financial statements.
Financial information of reporting segments
Unit: RMB
Electricity Comprehensive
Inter-segment
Item generation and energy services Other segments Total
offset
sales segment segment
Operating
revenue
Cost of
sales
Total
assets
Total
liabilities
XVIII. Notes to the main items of the parent company's financial statements
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 61,744,388.17 42,375,469.95
Total
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance
Provision for bad
Book balance
debts
Type
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
debts by the
single item
Provision for bad
debts accrued by
credit risk
portfolio
Total 61,744,388.17 100.00 61,744,388.17
(Continued)
Beginning balance
Provision for bad
Book balance
debts
Type
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
Beginning balance
Provision for bad
Book balance
debts
Type
Provision Book value
Percentage
Amount Amount percentage
(%)
(%)
debts by the
single item
Provision for bad
debts accrued by
credit risk
portfolio
Total 42,375,469.95 100.00 42,375,469.95
Unit: RMB
Ending balance
Aging Provision for bad Provision percentage
Book balance
debts (%)
Portfolio 2: Receivables from
electricity generation and sales
Total 61,744,388.17
(3) No provision for bad debts accrued, recovered, or reversed in the current period
(4) No actual write-off of accounts receivable for the current period
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets
Unit: RMB
Ending
balance of
Ratio to the total provision
Ending Ending balances of amount of ending for bad
Ending balance of
balance of accounts balance of debts of
Unit accounts
contract receivable and accounts accounts
receivable
assets contract assets receivable and receivable
contract assets (%) and
contract
assets
Shenzhen
Power Supply
Bureau Co.,
Ltd.
Total 61,744,388.17 61,744,388.17 100.00
Unit: RMB
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 15,000,000.00 22,500,000.00
Other receivables 594,229,534.27 545,995,288.27
Total 609,229,534.27 568,495,288.27
(1) Dividends receivable
Unit: RMB
Project (or investees) Ending balance Beginning balance
Shenzhen Xiefu Energy Co., Ltd. 15,000,000.00 22,500,000.00
Total 15,000,000.00 22,500,000.00
(2) Other receivables
Unit: RMB
Nature of funds Ending book balance Beginning book balance
Transactions with related parties within the
consolidation scope
Other receivables and temporary payments 15,000,581.55 14,992,669.25
Historical legacy funds 11,724,938.94 11,724,938.94
Margin and deposit 1,498,563.54 1,545,040.06
Receivables from employees 109,076.26 76,062.20
Total 620,274,446.91 572,040,200.91
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 85,184,758.06 35,229,834.56
Over 3 years 26,062,821.03 26,062,821.03
Total
Unit: RMB
Ending balance
Book balance Provision for bad debts Book value
Type Provision
Percentag
Amount Amount percentag
e (%)
e (%)
Provision set
aside for bad
debts by the
single item
Ending balance
Book balance Provision for bad debts Book value
Type Provision
Percentag
Amount Amount percentag
e (%)
e (%)
Provision set
aside for bad 594,229,534.27 95.80 594,229,534.27
debts by portfolio
Total 620,274,446.91 100.00 26,044,912.64 4.20 594,229,534.27
(Continued)
Beginning balance
Book balance Provision for bad debts Book value
Type Provision
Percentag
Amount Amount percentag
e (%)
e (%)
Provision set
aside for bad
debts by the
single item
Provision set
aside for bad 545,995,288.27 95.45 545,995,288.27
debts by portfolio
Total 572,040,200.91 100.00 26,044,912.64 4.55 545,995,288.27
Provision for bad debts of other receivables by single item
Unit: RMB
Beginning balance Ending balance
Provision
Name Provision for bad Provision for Reasons for
Book balance Book balance percentage
debts bad debts the provision
(%)
Huiyang Historical
Kangtai legacy issues,
Industrial which are
Co., Ltd. expected to
Dividends be
and taxes unrecoverable
Beginning balance Ending balance
Provision
Name Provision for bad Provision for Reasons for
Book balance Book balance percentage
debts bad debts the provision
(%)
receivable
from
employee
benefit fund
Receivables
from the
purchase of 1,736,004.16 1,736,004.16 1,736,004.16 1,736,004.16 100.00
employee
dormitories
Others 8,347.00 8,347.00 8,347.00 8,347.00 100.00
Total 26,044,912.64 26,044,912.64 26,044,912.64 26,044,912.64 — —
② Provision set aside for bad debts of other receivables by portfolio
Unit: RMB
Ending balance
Aging Provision for bad Provision percentage
Book balance
debts (%)
Portfolio 4: Transactions with related
parties within the consolidation scope
Portfolio 5: Margin, deposit, and petty
cash portfolio
Portfolio 7: Other receivables and
temporary payments
Total 594,229,534.27 —
② Provision set aside for bad debts of other receivables by the general expected credit loss model
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit
Provision for bad Expected credit loss during the loss during the
Total
debts loss for the next whole outstanding whole outstanding
credit impairment) credit impairment)
Balance as of January 1, 26,044,912.64 26,044,912.64
Balance as of January 1,
period
-- Transfer to Stage II
-- Transfer to Stage III
-- Reversal to Stage II
-- Reversal to Stage I
Provision for the current
period
Reversal in this period
Charge-off in the current
period
Write-off in the current
period
Other changes
Balance as of June 30,
Unit: RMB
Changes in the current period
Beginning
Type Recovered Charge-off or Ending balance
balance Provision Others
or reversed write-off
Provision
set aside
for bad
debts by
the single
item
Changes in the current period
Beginning
Type Recovered Charge-off or Ending balance
balance Provision Others
or reversed write-off
Provision
for bad
debts
accrued by
credit risk
portfolio
Total 26,044,912.64 26,044,912.64
Of which, there was no recovery or reversal of provision for bad debts with significant amounts in the current
period.
Unit: RMB
Ratio to the
total ending
Provision for bad
Nature of balance of
Unit Ending balance Aging debts
funds other
Ending balance
receivables
(%)
Transaction
s with
Shennan Power
related
(Zhongshan) Within 1 year, 1-2
parties 526,007,448.55 84.80
Electric Power Co., years, 2-3 years
within the
Ltd.
consolidatio
n scope
Transaction
s with
Shennan Power related
Energy Technology parties 56,827,500.23 Within 1 year 9.16
(Sichuan) Co., Ltd. within the
consolidatio
n scope
Huiyang Kangtai Transaction 14,311,626.70 Over 5 years 2.31 14,311,626.70
Ratio to the
total ending
Provision for bad
Nature of balance of
Unit Ending balance Aging debts
funds other
Ending balance
receivables
(%)
Industrial Co., Ltd. s with
external
agencies
Dividends and
Receivable
taxes receivable
s from 9,988,934.78 Over 5 years 1.61 9,988,934.78
from employee
employees
benefit fund
Transaction
Shennan Power s with
Gas Turbine related
Engineering parties 6,013,355.81 Within 1 year 0.97
Technology Co., within the
Ltd. consolidatio
n scope
Total — 613,148,866.07 — 98.85 24,300,561.48
Unit: RMB
Amount reported as other receivables due to
centralized fund management
Due to the centralized fund management of the Company, the
principal and interest receivable from subsidiaries is RMB
Description 531,035,025.34, and the principal and interest payable to
subsidiaries is RMB 51,000,286.90.
Unit: RMB
Ending balance
Item
Book balance Provision for impairment Book value
Investment in
subsidiaries
Ending balance
Item
Book balance Provision for impairment Book value
Investments in
associates and joint 101,058,390.14 101,058,390.14
ventures
Total 1,169,953,516.72 445,002,245.26 724,951,271.46
(Continued)
Beginning balance
Item
Book balance Provision for impairment Book value
Investment in
subsidiaries
Investments in
associates and joint 97,697,539.79 97,697,539.79
ventures
Total 1,166,592,666.37 445,002,245.26 721,590,421.11
(1) Investment in subsidiaries
Unit: RMB
Provision for Increase/decrease in this period Provision for
Beginning balance impairment Provision Ending balance impairment
Investee Additional Decrease in
(Book value) Beginning for Others (Book value) Ending
investment investment
balance impairment balance
Shenzhen
Shennan Power
Environmental 49,639,016.04 20,552,688.77 49,639,016.04 20,552,688.77
Protection Co.,
Ltd.
Shenzhen Xiefu
Energy Co., Ltd.
Shennan Power
Gas Turbine
Engineering 94,460,360.00 94,460,360.00
Technology Co.,
Ltd.
Shennan Power
(Zhongshan)
Electric Power
Co., Ltd.
Shennan Energy
(Singapore) Pte.
Provision for Increase/decrease in this period Provision for
Beginning balance impairment Provision Ending balance impairment
Investee Additional Decrease in
(Book value) Beginning for Others (Book value) Ending
investment investment
balance impairment balance
Ltd.
Shennan Power
Energy
Technology 16,540,285.02 16,540,285.02
(Sichuan) Co.,
Ltd.
Shenzhen New
Power Industrial 429,899,419.26 13,709,556.49 429,899,419.26 13,709,556.49
Co., Ltd.
Total 623,892,881.32 445,002,245.26 623,892,881.32 445,002,245.26
Investments in associates and joint ventures
Unit: RMB
Increase/decrease in this period
Beginning
Profit or loss of
Beginning balance balance of Adjustments to other
Investee (book value) Additional Decrease in investment
provision for comprehensive
investment investment recognized by the
impairment income
equity method
I. Associates
Increase/decrease in this period
Beginning
Profit or loss of
Beginning balance balance of Adjustments to other
Investee (book value) Additional Decrease in investment
provision for comprehensive
investment investment recognized by the
impairment income
equity method
Jiangsu Liaoyuan Environmental 4,372,975.35
Protection Technology Co., Ltd.
Total 97,697,539.79 4,372,975.35
(Continued)
Increase/decrease in this period Balance of
Cash dividends or Ending balance provision for
Investee Changes in Provision for
profits declared to Others (book value) impairment as at the
Other Equities impairment
be distributed end of the period
I. Associates
Jiangsu Liaoyuan Environmental
Protection Technology Co., Ltd.
Total 1,012,125.00 101,058,390.14
(1) Operating income and cost of sales
Unit: RMB
Amount in the current period Amount in the previous period
Item
Income Cost Income Cost
Principal
activity
Other
businesses
Total 141,374,845.61 111,216,000.11 145,467,624.06 147,248,786.41
(2) Breakdown of operating revenue and cost of sales
Unit: RMB
Current amount Amount for the previous period
Item
Income Cost Income Cost
Electricity
generation 140,852,547.67 111,003,693.03 145,150,536.76 147,170,247.98
and sales
Others 522,297.94 212,307.08 317,087.30 78,538.43
Total 141,374,845.61 111,216,000.11 145,467,624.06 147,248,786.41
(3) Breakdown by region
Unit: RMB
Current amount Amount for the previous period
Item
Income Cost Income Cost
Domestic 141,374,845.61 111,216,000.11 145,467,624.06 147,248,786.41
Total 141,374,845.61 111,216,000.11 145,467,624.06 147,248,786.41
(4) Income from contracts
Unit: RMB
Current amount Amount for the previous period
Item
Income Income
By contract performance obligation
Including: Income recognized at a point of time 141,183,749.66 145,293,499.38
Income recognized over a period of time 191,095.95 174,124.68
Total 141,374,845.61 145,467,624.06
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Returns on long-term equity investments calculated
by the equity method
Investment income from financial assets held for
trading during the holding period
Investment income generated from liquidation and
-342,310.70
deregistration of subsidiaries
Total 9,597,915.44 7,829,332.02
XIX. Supplementary Information
Unit: RMB
Item Current amount Description
Profit or losses on disposal of non-current assets (including the portion
offset for provisions for asset impairment)
Government grants included in profit and loss of the current period
(except for government subsidies that are closely related to the
Company's normal business operation, comply with national policies 17,099.11
and are enjoyed in accordance with defined criteria, and have a
continuing impact on the Company's profit or loss)
Gains/losses on fair-value changes in financial assets and liabilities
held by a non-financial enterprise, as well as on disposal of financial
assets and liabilities (exclusive of the effective portion of hedges that
arise in the Company’s ordinary course of business)
Dispossession surcharge to non-financial institutions included in the
current gains/losses
Gains/ losses on entrusting others with investments or asset
management
Gains/losses on loan entrustment
Losses on assets resulted from force majeure such as natural disasters
Reversed portions of impairment allowances for receivables which are
tested individually for impairment
Item Current amount Description
Gains arising from business combination when the investment cost is
less than the recognized fair value of net assets of the investee
Current net gains/losses of subsidiaries acquired in business merger
under the same control from period-beginning to combination date
Gains/losses on non-monetary asset swap
Gains/losses on debt restructuring
Non-recurring expenses incurred by the enterprise as a result of the
discontinuation of a related operating activity, such as expenses for
relocating employees
One-time impact on the current gains/losses due to adjustments in tax,
accounting and other laws and regulations
One-time recognition of share-based payment expense due to
cancellation and modification of equity incentive plans
Cash-settled share-based payments, gains and losses arising from
changes in the fair value of employee compensation payable after the
date of exercisability
Gains/losses on change in fair value of investment property subject to
follow-up measurement at fair value method
Gains from transactions at significantly unfair prices
Gains/losses arising from contingencies unrelated to the normal
operation of the Company's business
Custodian fees earned from entrusted operation
Non-operating revenue and expenses other than the above 263,644.06
Other gains/losses that meet the definition of non-recurring
gains/losses
Subtotal 11,460,693.14
Less: Income tax effects 51,938.99
Minority equity effects (after tax) 230,296.98
Total 11,178,457.17 —
Earnings per share (RMB/share)
Weighted average
Profit for the reporting period Basic earnings Diluted earnings
Return on net assets (%)
per share per share
Net profit attributable to ordinary 1.18% 0.0329 0.0329
Earnings per share (RMB/share)
Weighted average
Profit for the reporting period Basic earnings Diluted earnings
Return on net assets (%)
per share per share
shareholders of the parent company
Net profit attributable to ordinary
shareholders of the parent company
before non-recurring gains and
losses
Shenzhen Nanshan Power Co., Ltd.
August 21, 2026
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