深南电B:2020年半年度报告(英文版)

来源:巨灵信息 2020-08-14 00:00:00
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    Stock Code: 000037, 200037 Short Form of Stock: Shen Nan DianA, Shen Nan Dian B No.: 2020-039
    
    深圳南山热电股份有限公司
    
    ShenzhSeenmiN-aannnsuhaalnRePpoowrte2r0C20o., Ltd.
    
    August 2020
    
    Section I. Important Notice, Contents and Interpretation
    
    Board of Directors, Supervisory Committee, all directors, supervisors and senior
    
    officers of Shenzhen Nanshan Power Co., Ltd. (hereinafter, the Company)
    
    guarantee that the Semi-Annual Report contains no misrepresentations,
    
    misleading statements or material omissions, and take all responsibilities,
    
    individual and/or joint, for the reality, accuracy and completion of the whole
    
    contents.
    
    Principal of the Company- Chairman Li Xinwei, person in charger of
    
    accounting works- Director and GM Chen Yuhui, CFO Dai Xiji and person in
    
    charge of accounting organ (chief accountants)- deputy GM Wang Yi(act for
    
    financial works) guarantee that the Financial Report of the semi-annual report
    
    disclosed is truthful, accurate and complete.
    
    All directors are attended the Board Meeting for semi-annual report
    
    deliberation.
    
    Concerning the forward-looking statements with future planning involved in the
    
    Semi-Annual Report, they do not constitute a substantial commitment for
    
    investors. Investors are advised to exercise caution of investment risks.
    
    The Company has no plans of cash dividend distributed, no bonus shares and
    
    has no share converted from capital reserve either in the mid-term.
    
    The semi-annual report has been prepared in both Chinese and English, for any
    
    discrepancies, the Chinese version shall prevail. Please read the full semi-annual
    
    report seriously.
    
    Contents
    
    Section I Important Notice, Contents and Interpretation................................................................. 2
    
    Section II Company Profile and Main Financial Indexes..................................................................6
    
    Section III Summary of Company Business.........................................................................................9
    
    Section IV Discussion andAnalysis of the Operation....................................................................... 11
    
    Section V Important Events.................................................................................................................. 23
    
    Section VI Changes in shares and particular about shareholders................................................. 35
    
    Section VII Preferred Stock.................................................................................................................. 40
    
    Section VIII Convertible Bonds............................................................................................................41
    
    Section IX Particulars about Directors, Supervisors and Senior Officers....................................42
    
    Section X Corporate-bond.....................................................................................................................43
    
    Section XI Financial Report..................................................................................................................44
    
    Section XII Documents available for referenc................................................................................... 45
    
    Interpretation
    
                  Items                Refersto                       Contents
    Company, the Company, Shen Nan Dian, The  Refersto  ShenzhenNanshanPowerCo.,Ltd.
    listed company
    Shen NanDianZhongshanCompany         Refersto  ShenNanDian(Zhongshan) ElectricPowerCo.,Ltd.
    Shen NanDianDongguan Company          Refersto  ShenNanDian(Dongguan)WeimeiElectricPowerCo.,Ltd
    Shen NanDianEngineering Company        Refersto  ShenzhenShennandian TurbineEngineeringTechnologyCo.,Ltd.
    Shen NanDianEnvironment Protection       Refersto  ShenzhenShenNanDianEnvironment ProtectionCo.,Ltd.
    Company
    Server Company                      Refersto  ShenzhenServerPetrochemical Supplying Co.,Ltd
    New PowerCompany                   Refersto  ShenzhenNewPowerIndustrial Co.,Ltd.
    Singapore Company                    Refersto  ShenNanEnergy(Singapore) Co.,Ltd.
    Nanshan PowerFactory                  Refersto  NanshanPowerFactoryofShenzhenNanshanPowerCo.,Ltd.
    Zhongshan NanlangPowerPlant            Refersto  ZhongshanNanlangPowerPlantofShenNanDian(Zhongshan) Electric
                                             Power Co.,Ltd
    Shenzhen CapitalHoldings                Refersto  ShenzhenCapitalHoldingsCo.,Ltd.,thenamebeforechangedon3
                                             March 2020wasShenzhenCapitalCo.,Ltd.
    Shenzhen Gas                        Refersto  ShenzhenGasGroupCo.,Ltd.
    Shenzhen QianhaiAuthority               Refersto  QianhaiShenzhen-Hongkong ModernServiceIndustryCooperation Zone
                                             of ShenzhenAuthority
    Audit institution, LIXINZHONGLIAN,       Refersto  LIXINZHONGLIAN CPAS(SPECIALGENERALPARTNERSHIP)
    accounting organ
    Articles ofAssociation                   Refersto  ArticleofAssociation ofShenzhenNanshanPowerCo.,Ltd.
    Yuan, tenthousandYuan,onehundredmillion   Refersto  Exceptthespecialdescriptionofthemonetaryunit,therestofthe
                                             monetary unitisRMBYuan,tenthousandYuan,onehundredmillionYuan
    Reporting period                      Refersto  1January2020to30June2020
    
    
    Section II. Company Profile and Main Financial Indexes
    
    I. Company information
    
    Short formofthestock      ShenNanDianA,ShenNanDianB   Stockcode            000037,200037
    Stock exchangeforlisting    ShenzhenStockExchange
    Name oftheCompany(in    深圳南山热电股份有限公司
    Chinese)
    Short formoftheCompany   深南电
    (in Chinese)(ifapplicable)
    Foreign nameoftheCompany ShenzhenNanshanPowerCo.,Ltd.
    (if applicable)
    Legal representative        LiXinwei
    
    
    II. Contact person/ways
    
                                        Secretary oftheBoard              Rep.ofsecuritiesaffairs
    Name                         ZhangJie
    Contact adds.                    N16a/nFs-h1a7n/FD,Histarnictat,nSghBenuzilhdeinng,,GOuCanTg,dong
                                 Province
    Tel.                           0755-26003611
    Fax.                          0755-26003684
    E-mail                         investor@nspower.com.cn
    
    
    III. Others
    
    1. Way of contact
    
    Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
    
    not
    
    □ Applicable √ Not applicable
    
    Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
    
    found more details in Annual Report 2019.
    
    2. Information disclosure and preparation place
    
    Whether information disclosure and preparation place changed in reporting period or not
    
    □ Applicable √ Not applicable
    
    The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
    
    place for semi-annual report have no change in reporting period, found more details in Annual Report 2019.
    
    IV. Main accounting data and financial indexes
    
    Whether it has retroactive adjustment or re-statement on previous accounting data or not
    
    □ Yes √ No
    
                                      Currentperiod       Sameperiodoflastyear   Increase/decrease inthis
                                                                             report y-o-y
    Operating revenue(RMB)                     518,150,606.21         408,124,616.38              26.96%
    Net profitattributabletoshareholders of            52,040,498.42         -25,283,190.82             -305.83%
    the listedCompany(RMB)
    Net profitattributabletoshareholders of
    the listedCompanyafterdeducting                10,149,730.42         -28,106,510.82             -136.11%
    non-recurring gainsandlosses(RMB)
    Net cashflowarisingfromoperating              69,936,561.46          56,217,376.89              24.40%
    activities(RMB)
    Basic earningspershare(RMB/Share)                    0.09                -0.04             -325.00%
    Diluted earningspershare  (RMB/Share)                 0.09                -0.04             -325.00%
    Weighted averageROE                            0.51%               -1.43%               1.94%
                                                                         Increase/decrease inthis
                                    Endofcurrentperiod      Endoflastperiod     report-endoverthatoflast
                                                                              period-end
    Total assets(RMB)                        3,051,547,885.42        3,219,261,720.55               -5.21%
    Net assets attributable to shareholder of        2,042,758,054.74        2,002,772,808.24               2.00%
    listed Company (RMB)
    
    
    V. Difference of the accounting data under accounting rules in and out of China
    
    1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
    
    Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
    
    □ Applicable √ Not applicable
    
    The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
    
    Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
    
    2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
    
    rules and Chinese GAAP (Generally Accepted Accounting Principles)
    
    □ Applicable √ Not applicable
    
    The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
    
    Chinese GAAP (Generally Accepted Accounting Principles) in the period.
    
    VI. Items and amounts of extraordinary profit (gains)/loss
    
    √Applicable □ Not applicable
    
    In RMB
    
                        Item                            Amount                 Note
    Gains/losses fromthedisposal ofnon-current asset(includingthe                     Theinvestment incomefromsold
    write-off thataccruedforimpairmentofassets)                       34,363,417.21 outthe70%equityofShenNan
                                                                    Dian Dongguan Company
    Governmental subsidycalculatedintocurrentgainsand                            Receiveunemployment insurance
    losses(while closelyrelatedwiththenormalbusinessofthe                7,621,471.38 premiumrefundsand
    Company, excludingthefixed-amount orfixed-proportion                          apportionment ofgovernment
    governmental subsidyaccording totheunifiednationalstandard)                      subsidiesrelatedtoassets
    Other non-operatingrevenue andexpenditureexceptforthe                  -6,356.16
    aforementioned items
    Less: impactonincometax                                       67,935.50
        Impactonminorityshareholders’equity(post-tax)                     19,828.93
    Total                                                   41,890,768.00           --
    
    
    Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
    
    Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
    
    the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
    
    Securities to the Public --- Extraordinary Profit/loss, explain reasons
    
    □ Applicable √ Not applicable
    
    Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
    
    Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
    
    the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
    
    Securities to the Public --- Extraordinary Profit/loss, the Company has no such items in the reporting period for the aforesaid
    
    Section III. Summary of Company Business
    
    I. Main businesses of the Company in the reporting period
    
    The company is specialized in power and thermal supply, as well as providing technical consulting and technical services for power
    
    plant (stations). At beginning of the period, the company has three wholly-owned or holding gas turbine plants, which are all located
    
    in the power load center of Pearl River Delta area. In reporting period, the 70% equity of Shen Nan Dian Dongguan Company,
    
    directly or indirectly hold by the Company are transfer to Shenzhen Gas by agreement. Therefore, up to the reporting period-end, the
    
    company has two wholly-owned or holding gas turbine plants, which equipped with five sets of 9E gas steam combine cycle power
    
    generating units, with total installed capacity to 900000 KW (Nanshan Power Factory: 3×180000 KW, Zhongshan Nanlang Power
    
    Plant: 2×180000 KW). During the reporting period, the Company mainly engaged in the combined cycle power generation business
    
    with gas-steam, the subordinate Nanshan Power Factory and Zhongshan Nanlang Power Plant are operates in a normal station. From
    
    January to June 2020, the company withstood the pressure of the rapid shrinking of the electricity demand of the whole society
    
    caused by the novel coronavirus pneumonia epidemic, and completed the full power scale (on-grid power + electricity marketing
    
    power) of 893 million KWH(data of Shen Nan Dian Dongguan Company is not included), completing the actual on-grid power of
    
    333 million KWH and the electricity marketing power of 560 million KWH. Completion of the electricity for subordinate power
    
    plants are as: Nanshan Power Factory (New Power Company included) completed 272 million KWH of on-grid electricity, the full
    
    electricity quantity totaled 466 billion KWH, with a year-on-year down of 7.72%; Zhongshan Nanlang Power Plant completed 61
    
    million KWH of on-grid electricity, the full electricity quantity totaled 427 million KWH, with a year-on-year growth of 18.61%.
    
    During the reporting period, the company not only strive to improve the operating efficiency of its main business of electric power,
    
    but also made great efforts to the operation and expansion of related businesses. In response to the impact of the epidemic, the
    
    subordinate Shen Nan Dian Engineering Company changed its thinking pattern in a timely manner, adjusted its business strategy, and
    
    strived to turn crises into opportunities. While continuing to manage existing overseas projects, it rapidly increased investment in the
    
    domestic technical service markets and actively explored the technical consulting and technical service business for gas turbine
    
    power station construction projects in domestic and foreign markets; Shen Nan Dian Environment Protection Company took the
    
    initiative, actively communicated, made every effort to ensure the stable operation of the sludge treatment production line, and
    
    earnestly performed environmental protection responsibilities. In the first half of the year, a total of 64,300 tons of sludge were
    
    processed, and realized sludge reduction, harmless treatment and comprehensive utilization of resources.
    
    II. Major changes in main assets
    
    1. Major changes in main assets
    
              Majorassets                                Noteofmajorchanges
    Equity assets                   Nomajorchanges
                                Duringthereportingperiod,70%equityofShenNanDianDongguan Companyaresold
    Fixed assets                    outbytheCompany,andatendofperiod,ShenNanDianDongguan Companyexcluded
                                inconsolidatescope,thusthefixedassetshave30.88%declinedoverthatof
                                year-beginning
                                Duringthereportingperiod,70%equityofShenNanDianDongguan Companyaresold
    Intangible assets                 outbytheCompany,andatendofperiod,ShenNanDianDongguan Companyexcluded
                                inconsolidatescope,thustheintangible assetshave51.07%declinedoverthatof
                                year-beginning
                                Duringthereportingperiod,70%equityofShenNanDianDongguan Companyaresold
    Construction inprocess            outbytheCompany,andatendofperiod,ShenNanDianDongguan Companyexcluded
                                inconsolidatescope,thustheconstruction inprocesshave8.49%declinedoverthatof
                                year-beginning
                                Duringthereportingperiod,70%equityofShenNanDianDongguan Companyaresold
    Monetary fund                  outbytheCompany,receivedequitytransferamountandborrowingrefund,thusthe
                                monetaryfundhas40.31%upoverthatofyear-beginning
                                Duringthereportingperiod,70%equityofShenNanDianDongguan Companyaresold
    Inventory                      outbytheCompany,andatendofperiod,ShenNanDianDongguan Companyexcluded
                                inconsolidatescope,thustheinventories have12.94%declinedoverthatof
                                year-beginning
    
    
    2. Main overseas assets
    
    □ Applicable √ Not applicable
    
    III. Core Competitiveness Analysis
    
    In recent years, due to the impact of the macroeconomic situation and the common problems of gas turbine industry, the Company’s
    
    main business has been facing increasing difficulties and challenges. However, the basic core competitiveness formed by 30 years of
    
    operation and development, the strong support of the company’s major shareholders, and the operating and management innovation
    
    of the company’s new board of directors and leadership team have laid the essential foundation for the company’s sustainable
    
    survival and for seeking transformation and development. (core competitiveness analysis found more in the Annual Report 2019)
    
    Section IV. Discussion andAnalysis of the Operation
    
    I. Introduction
    
    In the first half of 2020, the sudden outbreak of novel coronavirus pneumonia brought an unprecedentedly huge impact on China and
    
    the global economy. Affected by the novel coronavirus pneumonia epidemic, the demand for power in the whole society has shrunk
    
    sharply. According to statistics from relevant departments, from January to June, the province’s total electricity consumption was
    
    296.484 billion kWh, a year-on-year decrease of 2.07%.
    
    Facing the dual test of the epidemic and the industry situation, the company withstood the pressure, forged ahead against the trend,
    
    strictly implemented the overall deployment and requirements of the Central Committee of the Communist Party of China, the State
    
    Council, provincial, municipal, and district governments and higher-level units to respond to the epidemic, and earnestly
    
    implemented epidemic prevention and control work, while overcoming difficulties to do a good job in production and operation
    
    management, and go all out to minimize the negative impact of the epidemic on the company. After the full resumption of work and
    
    production, the company intensified its efforts to take serious measures to safe production, stock operation and transformation
    
    development. On the premise of ensuring safety and epidemic prevention and control, the company has achieved good results in
    
    production, operation, and management.
    
    The first was industrial coordination and strategic cooperation for common development. The company negotiated and transferred
    
    the 70% equity of Shen Nan Dian Dongguan Company it held directly and indirectly to Shenzhen Gas and signed the Resource
    
    Strategic Cooperation Agreement to give full play to the advantages of the two parties in terms of resources, technology, market and
    
    facilities to achieve resource complementarity, enhance the overall competitiveness of both parties in their respective fields, and
    
    create conditions for the company to reduce burdens, increase efficiency and generate income, and seek transformation and
    
    development. The second was one factory one policy, and scientific marketing created good results. In the face of the difficult
    
    production situation that the demand for electricity in the society continued to be insufficient from February to April this year, on the
    
    one hand, the company paid close attention to improving the efficiency and reducing consumption of power generation equipment,
    
    and on the other hand, it adopted marketing measures such as market-based competition calculation models and "one factory one
    
    policy" marketing strategy, strived to seize market opportunities, and actively strived for more economic electricity share. At the
    
    same time, through strategic cooperation and healthy competition, strived to minimize the cost of natural gas procurement. The third
    
    was capital-driven, rejected the dross and assimilated the essence to seek transformation. Guided by the annual working ideas of
    
    actively exploring advanced manufacturing, life and health, new-generation information technology, technology and finance and
    
    other high-end manufacturing industry and innovative industry project resources and business fields, on the one hand, relying on the
    
    platform advantages of major shareholders, it’s planned to participate in the investment of Yuanzhi Ruixin New Generation
    
    Information Technology Equity Investment Fund as a limited partner. On the other hand, extensively sought opportunities for
    
    high-quality projects and explored effective paths for transformation and development. The fourth was stability and long-term
    
    development, guaranteed long-term security to promote development. While doing a good job in fighting the novel coronavirus
    
    pneumonia epidemic, the company strived to lay a solid foundation for safe production, established and completed a series of safety
    
    index management and production guarantee systems, and further strengthened risk classification control and hidden danger
    
    investigation and treatment. As of the end of this reporting period, the company has achieved a total of 5,895 days of safe production,
    
    creating a new situation with the best safety record in the company's history, the epidemic prevention and control work has also
    
    achieved phased results.
    
    During the reporting period, the Company has achieved a revenue in operation of 5181.5 million Yuan, the net profit attributable to
    
    shareholders of the listed company amounted as 52.04 million Yuan and basic EPS was 0.09 Yuan.
    
    II. Main business analysis
    
    Found more in I. Introduction in Discussion and Analysis of the Operation
    
    Y-o-y changes of main financial data
    
    In RMB
    
                                       Sameperiodoflast     Y-o-y
                         Currentperiod          year       increase/decre        Reasonsforchanges
                                                         ase
    Operating revenue           518,150,606.21     408,124,616.38     26.96% Mainlyduetotheincrease ofrevenue
                                                                fromgenerating
    Operating costs             453,109,436.14     382,997,137.69     18.31% Mainlyduetotheincrease ofcostfrom
                                                                generating
    Sales expenses               2,527,403.66       2,566,269.52      -1.51%
    Administration expenses       43,036,872.15      44,931,864.50      -4.22%
    Finance expenses             5,064,722.20      10,639,267.42     -52.40% Theinterestrateofloansandloansize
                                                                havefallen.
    Income taxexpenses            610,366.52       1,157,865.76     -47.29% Taxableincomeamountdecreased
    Net cashflowarising          69,936,561.46      56,217,376.89     24.40% Theelectricitybillsarehigherthanthe
    from operatingactivities                                           gaspayment
    Net cashflowarising                                             Expensesforpurchasingthefinancial
    from investment            -70,404,614.02      -20,841,164.69     237.82% productsincreased
    activities
    Net cashflowarising         313,780,839.64      79,547,879.58     294.46% Borrowingsincreased
    from financingactivities
    Net increase ofcashand       313,413,965.85     114,927,228.73     172.71% Thenetcashflowarisingfromfinancing
    cash equivalent                                                 activitiesincreased
    
    
    Major changes on profit composition or profit resources in reporting period
    
    □Applicable √Not applicable
    
    No changes on profit composition or profit resources in reporting period
    
    Constitution of operating revenue
    
    In RMB
    
                            Current period                Sameperiodoflastyear       Y-o-ychanges(+,-)
                       Amount      Ratioinoperating      Amount      Ratioinoperating
                                      revenue                       revenue
    Totaloperating        518,150,606.21           100%    408,124,616.38           100%         26.96%
    revenue
    According toindustries
    Energy industry        470,093,812.79          90.73%    347,598,428.46          85.17%         35.24%
    Engineering labor       16,697,226.83          3.22%     25,197,504.31          6.17%         -33.73%
    Sludge drying          29,975,302.78          5.79%     34,487,375.32          8.45%         -13.08%
    Other                1,384,263.81          0.27%       841,308.29          0.21%         64.54%
    According toproducts
    Power marketing       470,093,812.79          90.73%    347,598,428.46          85.17%         35.24%
    Engineering labor       16,697,226.83          3.22%     25,197,504.31          6.17%         -33.73%
    Sludge drying          29,975,302.78          5.79%     34,487,375.32          8.45%         -13.08%
    Other                1,384,263.81          0.27%       841,308.29          0.21%         64.54%
    According toregion
    Shenzhen            227,995,512.76          44.00%    231,432,149.90          56.71%          -1.48%
    Zhongshan            85,765,596.92          16.55%     66,364,051.74          16.26%         29.24%
    Dongguan            204,389,496.53          39.45%    110,328,414.74          27.03%         85.26%
    
    
    The industries, products, or regions accounting for over 10% of the Company’s operating revenue or operating profit
    
    √Applicable □ Not applicable
    
    In RMB
    
                    Operating                            Increase/decrease Increase/decrease Increase/decrease
                    revenue     Operatingcosts  Grossprofitratio   ofoperating   of operating costof  gross  profit
                                                        revenuey-o-y  y-o-y         ratioy-o-y
    According toindustries
    Energy industry    470,093,812.79  416,716,914.41        11.35%       35.24%       21.60%        9.94%
    Engineering labor   16,697,226.83   13,814,797.57       17.26%       -33.73%       -15.41%       -17.93%
    Sludge drying      29,975,302.78   22,479,655.36       25.01%       -13.08%        -5.85%        -5.75%
    According toproducts
    Power marketing   470,093,812.79  416,716,914.41        11.35%       35.24%       21.60%        9.94%
    Engineering labor   16,697,226.83   13,814,797.57       17.26%       -33.73%       -15.41%       -17.93%
    Sludge drying      29,975,302.78   22,479,655.36       25.01%       -13.08%        -5.85%        -5.75%
    According toregion
    Shenzhen        226,611,248.95  200,431,777.94        11.55%        -1.73%        -6.27%        4.28%
    Zhongshan        85,765,596.92   53,279,999.22       37.88%       29.24%        -9.34%       26.43%
    Dongguan        204,389,496.53  199,299,590.18        2.49%       85.26%       80.68%        2.47%
    
    
    Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
    
    latest one year’s scope of period-end
    
    √ Applicable □ Not applicable
    
    In RMB
    
                   Operating                             Increase/decrease Increase/decrease Increase/decrease
                    revenue     Operatingcosts  Grossprofitratio   ofoperating   of operating costof  gross  profit
                                                       revenue y-o-y  y-o-y         ratioy-o-y
    According toindustries
    Energy industry    265,704,316.26  217,417,324.23        18.17%       11.92%        -6.44%       16.06%
    Engineering labor   16,697,226.83   13,814,797.57       17.26%       -33.73%       -15.41%       -17.92%
    Sludge drying      29,975,302.78   22,479,655.36       25.01%       -13.08%        -5.85%        -5.76%
    According toproducts
    Power marketing   265,704,316.26  217,417,324.23        18.17%       11.92%        -6.44%       16.06%
    Engineering labor   16,697,226.83   13,814,797.57       17.26%       -33.73%       -15.41%       -17.92%
    Sludge drying      29,975,302.78   22,479,655.36       25.01%       -13.08%        -5.85%        -5.76%
    According toregion
    Shenzhen        226,611,248.95  200,431,777.94        11.55%        -1.73%        -6.27%        4.28%
    Zhongshan        85,765,596.92   53,279,999.22       37.88%       29.24%        -9.34%       26.43%
    
    
    Causes for the statistic scope changed
    
    The 70% equity of Shen Nan Dian Dongguan Company are sold out in the reporting period, and change for the industrial and
    
    commercial has completed in April 2020, the Shen Nan Dian Dongguan Company no longer included in the consolidate scope at end
    
    of the period.
    
    Reasons for y-o-y relevant data with over 30% changes
    
    √Applicable □ Not applicable
    
    Energy industry/Power marketing has 35.24% up in revenue from a year earlier, mainly because the revenue fro generating
    
    increased.
    
    Revenue from engineering labor has 33.73% declined on a y-o-y basis, mainly because the overseas project was suspended due to the
    
    COVID-19 pneumonia outbreak.
    
    Other revenue as 65.54% up on a y-o-y basis, mainly due to the increase of technical service.
    
    III. Analysis of the non-main business
    
    √Applicable □ Not applicable
    
    In RMB
    
                        Amount       Ratiointotalprofit         Note         Whether besustainable(Y/N)
                                                  Investment incomefrom
    Investment income         33,291,259.12          62.98% soldoutthe70%equityof  N
                                                  Shen NanDianDongguan
                                                  Company
    Non-operating                4,753.84           0.01%                    N
    income
    Non-operating               11,110.00          0.02% Donation              N
    expenditure
    
    
    IV. Assets and liability
    
    1. Major changes of assets composition
    
    In RMB
    
                     EndofthePeriod      Endofsameperiodoflast
                                              year          Ratio
                               Ratioin               Ratioin   changes       Notesofmajorchanges
                    Amount      total      Amount    totalassets   (+,-)
                               assets
    Monetary fund    1,084,903,966.81  35.55% 1,033,453,294.31   30.27%   5.28% Increaseofthebankloansandreceive
                                                                 partoftheamountfromequitytransfer
    Account          132,037,467.25   4.33%  161,302,717.77    4.72%   -0.39%
    receivable
    Inventory         108,553,898.22   3.56%  124,479,548.95    3.65%   -0.09%
    Investment real      2,303,258.20   0.08%    2,499,395.80    0.07%   0.01%
    estate
    Long-term equity    14,375,580.60   0.47%   15,371,492.58    0.45%   0.02%
    investment
                                                                 Duringthereportingperiod,70%
                                                                 equityofShenNanDianDongguan
    Fixed assets       954,992,268.00  31.30% 1,410,660,332.99   41.32%  -10.02% CompanyaresoldoutbytheCompany,
                                                                 andatendofperiod,ShenNanDian
                                                                 DongguanCompanyexcludedin
                                                                 consolidatescope
    Construction in     60,831,928.29   1.99%   67,646,496.22    1.98%   0.01%
    process
    Short-term loans    755,480,134.11  24.76% 1,100,000,000.00   32.22%   -7.46% Repaymentofshort-term bankloans
    Long-term loans                 0.00%   21,940,000.00    0.64%   -0.64% Repaymentoflong-term bankloans
    
    
    2. Assets and liability measured by fair value
    
    □ Applicable √ Not applicable
    
    3. Assets rights restricted till end of the period
    
    V. Investment
    
    1. Overall situation
    
    □ Applicable √ Not applicable
    
    2. The major equity investment obtained in the reporting period
    
    □ Applicable √ Not applicable
    
    3. The major non-equity investment caring in the reporting period
    
    □ Applicable √ Not applicable
    
    4.Financial assets measured by fair value
    
    □ Applicable √ Not applicable
    
    5. Financial assets investment
    
    (1) Securities investment
    
    □ Applicable √ Not applicable
    
    The Company had no securities investment in Period.
    
    (2) Derivative investment
    
    □ Applicable √ Not applicable
    
    The Company has no derivatives investment in Period.
    
    VI. Sales of major assets and equity
    
    1. Sales of major assets
    
    □ Applicable √ Not applicable
    
    2. Sales of major equity
    
    √Applicable □Not applicable
    
     Cou Asse  Sales  Trading  Net  Impact  Ratio   Pricing  Whe Relatio Owne Debt Impleme Disclosu  Disclosure index
    nterp  ts   day   price  profit  onthe  ofthe  principal  ther  nship  rship /liab  ntedon  reday
     art  sold        (10  contrib Compa  net            it   with  transf ility schedule
                  thousan utedby   ny   profit          was   the   erred trans  (Y/N),
                  dYuan) thesold       from           a  counter comp  fer explained
                        assets        assets          relat  party  letely com   the
                         from        sales           ed       ornot plete reasons
                        period-       intotal         trans       (Y/N) lyor   and
                        begin         net           actio            not counterm
                        to date        profit           n             (Y/ easurefor
                         for         ofthe          (Y/N            N)    not
                         sales       Compa           )                complete
                        (in 10         ny                               don
                        thousan                                       schedule
                        dYuan)
        70%        10,498      The                                                 Notice  including:
        equit       (price        transact       Pricing                                   70%  Equity  of
        y of       of          ionis        principlein                                Shen  Nan  Dian
        Shen       equity        conduct      the                                      (Dongguan)
        Nan 9April transfer       iveto        agreement                                 Weimei   Electric
        Dian 2020   amount       revitali       isthatthe                                  Power  Co.,  Ltd
        Don (change edas        zingthe      negotiated                                 Transfer,
        ggua of    87.5         Compa       transfer                                   Resolution of the
        n   industri million       ny’s         priceof                                   First Extraordinary
        Com aland  Yuan,        stock        underlying                                 Shareholders
        pany comme 17.48        assets,       assets(70%                          7March General Meeting of
    Shen (40  rcial   million       reducin       equityof                            2020,24 2020, Progress of
    zhen %  registra Yuan        gthe        ShenNan                           March  Transfer  of  70%
    Gas  equit tionfor gains/lo      operati       Dian         Not                   2020,11 EquityofShenNan
    Grou y   the    sses   -445.29 ng    64.44% Dongguan  N   applica Y   Y   Y      April   Dian  (Dongguan)
    p   held equity  during       pressur       Company)i    ble                   2020,   Weimei   Electric
    Co., direc transfer the          e,          shigher                            and4   Power Co., Ltd and
    Ltd.  tly  complet transiti       increasi       thanthe                            July    Completion of the
        by  edby  onal         ng          appraisal                            2020   70%  Equity  of
        the  Shen   period       current       valueofthe                                Shen  Nan  Dian
        Com Nan   from        earning       underlying                                 (Dongguan)
        pany Dian   the          softhe       assets                                    Weimei   Electric
        , and Donggu base         Compa       issuedby                                  Power  Co.,  Ltd
        30% an    dateof       nyand       Watson                                   Transferred; Notice
        equit Compa assets        promoti      (Beijing)                                  No.:   (2020-006,
        y   ny)   apprais       ngthe        Internation                                 2020-019,
        held       alto         realizati      alAssets                                  2020-023    and
        thro       Decem       onof        Appraisal                                  2020-032);
        ugh       ber31,       the          Co.,Ltd.                                  Released   on   :
        whol       2019))      strategi                                               China   Securities
        ly-o                   c                                                   Journal, Securities
        wne                   transfor                                              Times, Hong Kong
        d                     mation                                               Commercial Daily
        subs                   goals.                                                and      Juchao
        idiar                                                                      Website.
        y
        Syn
        diso
        me
        Com
        pany
        indir
        ectly
        )
    
    
    VII. Analysis of main Holding Company and stock-jointly companies
    
    √Applicable □Not applicable
    
    Particular about main subsidiaries and stock-jointly companies net profit over 10%
    
    In RMB
    
       Name      Type      Mainbusiness      Register   Totalassets  NetAssets   Operating  Operating  Netprofit
                                         capital                        revenue    profit
                      Technology
                      development regarding
                      to application of
    Shenzhen            remaining heat
    New Power          (excluding restricted    RMB113.85 189,619,543. 150,307,261. 56,347,610.0 -5,225,752. -5,225,752.7
    Industrial Co., Subsidiary items)andpower          million        19        85         4       70        0
    Ltd.                generation with
                      remaining heat.Add:
                      power generation
                      through burning
                      machines.
                      Sludge   drying;   the
    Shenzhen            mdeasnigangemaenndtoopfersaltuidognes
    Shen Nan            treatment and disposal
    Dian       Subsidiary facilities        and RMB    79 155,293,267. 128,501,691. 29,999,302.7 4,082,731.
    Environment          engineering;      themillion            60        99         8       80 3,505,763.71
    Protection            technology
    Co., Ltd.            development,
                      technology    transfer,
                      technical      advice,
                      technical  services  of
                      environmental pollution
                      control          and
                      comprehensive
                      utilization     domain;
                      (Except for the projects
                      required to be approved
                      before  registration  by
                      laws,    administrative
                      regulations, or decisions
                      and  stipulation of the
                      State   Council,   the
                      restricted items must be
                      approved      before
                      operating)
                      Engage in the technical
                      advisory service for the
                      construction projects of
                      gas-steam    combined
                      cycle   power   plant
    Shenzhen            (station), and undertake
    Shennandian          the  maintenance  and
    Turbine     Subsidiary overhaul    of    theRMB    10 51,466,814.3 36,144,584.8 16,697,226.8
    Engineering          operation equipment ofmillion             2         1         3 125,986.28   94,489.69
    Technology           gas-steam   combined
    Co., Ltd.            cycle   power   plant
                      (station).  Import  and
                      export  of  goods  and
                      technologies (excluding
                      distribution  and  state
                      monopoly commodities)
                      Self-supporting     or
                      import agent business of
                      fuel oil;trade(excluding
    Shenzhen            production and storage
    Server              and  transportation)  in
    Petrochemical Subsidiary diesel, lubricating  oil,RMB   53.3 121,784,714. 92,397,733.0  535,619.08 -1,340,725. -1,337,873.2
    Supplying            liquefied petroleum gas,million            52         3                24        4
    Co., Ltd             natural gas, compressed
                      gas and liquefied gas,
                      chemical     products
                      (excluding   dangerous
                      chemicals);  investment,
                      construction      and
                      technical  supports  in
                      liquefied petroleum gas,
                      natural gas and related
                      facilities;  import  and
                      export  businesses and
                      domestic trade of goods
                      and      technologies
                      (excluding   franchise,
                      exclusive  control, and
                      monopoly   products);
                      leasing      business.
                      Licensed projects: fuel
                      oil       warehousing
                      business  (except  for
                      refined  oil);  general
                      freight transport, special
                      transportation of goods
                      (containers),    special
                      transportation of goods
                      (tank)
                      Gas   turbine   power
                      generation,  waste heat
                      power     generation,
                      power   supply   and
    Shen Nan            heating     (excluding
    Dian               heating pipe network), RMB  746.8 596,024,563. -80,396,382. 85,765,596.9 13,952,405 13,942,405.2
    (Zhongshan)  Subsidiary leasing of wharf and oilmillion            19        80         2      .29        9
    Electric Power        depots     (excluding
    Co., Ltd.            refined oil, dangerous
                      chemicals, or flammable
                      and explosivegoods).
    Shen Nan            Agent for oils trade and
    Energy                              US  $  0.9spareparts  of  gas          139,835,443. 137,146,953.           -10,476,57 -10,476,573.Subsidiary
    (Singapore)                           millionturbine        67        87               3.86        86
    Co., Ltd.
    
    
    Subsidiary disposes and acquired in the period
    
    √ Applicable □ Not applicable
    
             Company name           Wayacquiredanddisposedinreporting   Impactonoverallproduction,operation
                                             period                      andperformance
                                 The 70%equityofShenNanDian      Thetransaction isconductive to
    Shen NanDian(Dongguan)Weimei     Dongguan Company,directlyorindirectly revitalizingtheCompany’sstockassets,
    Electric PowerCo.,Ltd              holdbytheCompanyaretransferby     reducingtheoperatingpressure and
                                 agreement.                      achievingtheincomefromequitytransfer
    
    
    Statement of main holding company and stock-jointly companies
    
    VIII. Structured vehicle controlled by the Company
    
    □ Applicable √ Not applicable
    
    IX. Prediction of business performance from January – September 2020
    
    Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
    
    warning of its material change compared with the corresponding period of the last year and explanation on reason
    
    □ Applicable √ Not applicable
    
    X. Risks and countermeasures
    
    1. In terms of main business, although the company has accumulated certain experience through vigorously focusing on power
    
    market marketing, due to the high cost of power generation by 9E gas turbines, the on-grid power price is at a high level among all
    
    types of power generation units. With the increasingly fierce competition in power trading market, coupled with the upcoming
    
    implementation of the power spot trading policy, the company’s main business of gas turbine power generation will face greater
    
    challenges. The company will actively communicate with relevant provincial and municipal departments to reflect the difficulties of
    
    the enterprise and seek government support, and will try its utmost to improve the profitability of the main business and the overall
    
    operating efficiency by strengthening the management of existing assets. At the same time, the company will actively explore
    
    diversified business models and transformation and development opportunities to create better conditions for the company's
    
    sustainable operation and healthy development.
    
    2. In terms of safety production, the power generation equipment of the company's power plants all have different degrees of aging,
    
    and the hidden troubles and safety risks are increasing year by year, which put forward higher requirements for equipment
    
    management and maintenance investment. In addition, the age structure of the company’s technical personnel is aging and the
    
    problem of temporary shortages is also becoming increasingly apparent, making the company's safety management face greater
    
    challenges. The company will strengthen the regular inspection and maintenance of equipment, strengthen the safety education and
    
    training of employees, intensify the responsibility system for safety production, and strictly implement the safety management system,
    
    and enhance the safety awareness and responsibility awareness of personnel at all levels by combining assessment and rewards and
    
    punishments to ensure production safety.
    
    3. In terms of fuel procurement, on the one hand, the uncertainty of the actual power generation will further increase the possible
    
    difference between the planned purchase of natural gas and the actual purchase, resulting in difficulty in the execution of the contract
    
    volume or a shortage of natural gas supply due to an expected shortage; on the other hand, in the first half of the year, natural gas
    
    prices were at a low level due to factors such as the epidemic and disputes among oil-producing countries, however, with the
    
    recovery of international crude oil prices, natural gas prices have shown an upward trend in the second half of 2020, and the company
    
    will face pressure from a sharp increase in fuel costs. The company will continue to leverage its advantages in large-scale
    
    procurement and the adjustment function of multiple gas sources, while ensuring to meet the demand for electricity production, it
    
    will try its best to reduce the cost of natural gas procurement.
    
    The Company reminds investors to pay attention to the above major risks and other risks that the Company may face, and prudently
    
    make rational investment decisions.
    
    Section V. Important Events
    
    Ie.xtIrnaorthdeinarreyposhrtarpeheroilodde,rst’hgeenCeroaml pmaeneytinhgeld annual shareholders’ general meeting and
    
    1. Shareholders’ General Meeting in the report period
    
     Session ofmeeting       Type       Ratioofinvestor     Openingdate    Dateofdisclosure  Indexofdisclosure
                                    participation
                                                                             “ResolutionNotice
                                                                             ofFirst
                                                                             extraordinary
                                                                             shareholders’general
    First extraordinary     Extraordinary                                               meetingin2020”
    shareholders’ general shareholders’general          42.09% 2020-03-23       2020-03-24       No.:2020-019,
    meeting in2020        meeting                                                releasedon“China
                                                                             SecuritiesJournal”
                                                                             “SecuritiesTimes”
                                                                             “HongKong
                                                                             CommercialDaily”
                                                                             andJuchaoWebsite
                                                                             “ResolutionNotice
                                                                             ofAnnualGeneral
                                                                             Meeting2019”
    Annual General                                                              No.:2020-021,
    Meeting (AGM)of       AGM               38.72% 2020-04-10       2020-04-11       releasedon“China
    2019                                                                      SecuritiesJournal”
                                                                             “SecuritiesTimes”
                                                                             “HongKong
                                                                             CommercialDaily”
                                                                             andJuchaoWebsite
    
    
    2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
    
    □ Applicable √ Not applicable
    
    II. Profit distribution plan and capitalizing of common reserves plan for the Period
    
    □ Applicable √ Not applicable
    
    The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
    
    the semi-annual year.
    
    pIIaIr.tyC,obmumyeitrmaenndtsththeaCt otmhepacnoymmhaitvteedfuplfailrlteyd adsurthinegatchteuarlepcoonrttirnogllepre,risohdaraenhdoldhearvse, nreoltatyeedt
    
    fulfilled by the end of reporting period
    
    □ Applicable √ Not applicable
    
    There are no commitments that the committed party as the actual controller, shareholders, related party, buyer and the Company have
    
    fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
    
    IV. Appointment and non-reappointment (dismissal) of CPA
    
    Financial report has been audited or not
    
    □ Yes √ No
    
    Not been audited
    
    Vth.atEixspsulaendabtiyonCPfrAom Board of Directors, Supervisory Committee for “Qualified Opinion”
    
    □ Applicable √ Not applicable
    
    VI. Explanation from the Board for “Qualified Opinion” of last year’s
    
    □ Applicable √ Not applicable
    
    VII. Bankruptcy reorganization
    
    □ Applicable √ Not applicable
    
    No bankruptcy reorganization for the Company in Period.
    
    VIII. Lawsuits
    
    Material lawsuits and arbitration
    
    □Applicable √Not applicable
    
    There are no material lawsuits or arbitration in the period
    
    Other lawsuits
    
    □Applicable √Not applicable
    
    IX. Media questioning
    
    □Applicable √Not applicable
    
    During the reporting period, the company had no media generally questioned matters.
    
    X. Penalty and rectification
    
    □ Applicable √ Not applicable
    
    No penalty and rectification for the Company in Period.
    
    XI. Integrity of the Company and its controlling shareholders and actual controllers
    
    □ Applicable √ Not applicable
    
    XorIIo.thImerpelemmpelonytaeteioinnceonf ttihveesCompany’s stock incentive plan, employee stock ownership plan
    
    □ Applicable √ Not applicable
    
    The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
    
    XIII. Major related transaction
    
    1. Related transaction with routine operation concerned
    
    √Applicable □ Not applicable
    
                                                       Trading Whether
                       RelatedRelation TreylpaeteodfConotfentPricing  Related tRraenolasnatecdtiProonpoinrtiaplipmroitveoapvperrotvheeCfolremarifnogreAsviamilialbalrDateof Indexof
     party    ship  tranosnactitrraenlastaecdtiprinecipltornanpsraiccteia(mino1u0nttrsaimnsialacrtid(in10   d   trraenlastaecdtimarket disclosu disclosur
                         on                tdhYouusaann)ons   thousan loimrnitoetd on    price    re      e
                                                       dYuan)  (Y/N)
                       The                                                             The
    Shenzhe              Compan                                                          Noticeof
    n                  y,  New In     In                                                 OEMfor
    Energy              Power  principl principl                                             Equity
    Gas                 Compan e,the   e,the                                               Gas
    Investm              y   and price   price                                               Purchase
    ent                 Shen   shallnot shallnot                                             and
    Holding              Nan    be     be                                                 Related
    Co.,    Associat       Dian   higher  higher                           By                 Transacti
    Ltd.,   edlegal Purchas (Dongg thanthe thanthe 1,366.01  100.00   8,867 No    agreeme --     2019-06 on
    Fuel    person  efuel   uan)   market  market             %             nt           -25    (Notice
    Branch              Compan priceof priceof                                             No.:
    of                  y   are natural  natural                                              2019-033
    Shenzhe              entered  gaswith gaswith                                             )released
    n                  into the referenc referenc                                             onChina
    Energy              Natural etothe  etothe                                              Securities
    Group               Gas    market  market                                              Journal,
    Co.,                Sales   standard standard                                             Securities
    Ltd.                and                                                             Times,
                       Purchas                                                          Hong
                       e                                                              Kong
                       Contract                                                          Commerc
                       with SZ                                                         ialDaily
                       Energy                                                          and
                       Gas                                                             Juchao
                       Holding                                                          Website
                       respecti
                       vely,
                       and
                       entered
                       in   the
                       Purchas
                       e   and
                       Sale
                       Manage
                       ment
                       Service
                       Agreem
                       ent   of
                       LNG
                       with
                       Fuel
                       Branch
    Total                        --     --   1,366.01   --     8,867   --     --     --     --      --
    Detail ofsalesreturnwithmajor    N/A
    amount involved
    Report the actual implementation of
    the daily related transactions which
    were  projected  about  their  totalNotapplicable
    amount by types during the reporting
    period
    Reasons formajordifferences
    between tradingpriceandmarket   Notapplicable
    reference price
    
    
    2. Related transactions by assets acquisition and sold
    
    □ Applicable √ Not applicable
    
    No related transactions by assets acquisition and sold for the Company in Period.
    
    3. Main related transactions of mutual investment outside
    
    □ Applicable √ Not applicable
    
    No main related transactions of mutual investment outside for the Company in Period.
    
    4. Contact of related credit and debt
    
    √Applicable □ Not applicable
    
    Whether has non-operational contact of related liability and debts or not
    
    √ Yes □ No
    
    Claim receivable from related party:
    
                              Whether has Balanceat   Current    Current            Current    Ending
      Related                   non-busines period-begin newlyadded  recovery            interest  balance(10
       party   Relationship  Causes   scapital     (10       (10       (10    Interestrate    (10    thousand
                               occupying   thousand   thousand   thousand           thousand    Yuan)
                              or not(Y/N)   Yuan)     Yuan)     Yuan)             Yuan)
    Shen Nan
    Dian               Routine
    Environmen Subsidiary  current   N            388.98    770.12    777.90                      381.2
    t Protection          account
    Company
    Shen Nan            Routine
    Dian      Subsidiary  current   N          18,234.42    271.98  18,506.40    4.82%    255.92      0.00
    Dongguan           account
    Company
    Shen Nan            Routine
    Dian      Subsidiary  current   N            66,759   1,556.45   3,500.00    4.82%   1,556.45  64,815.45
    Zhongshan           account
    Company
    Shen Nan            Routine
    Dian      Subsidiary  current   N          1,649.49    137.45   1,366.50    4.82%     18.12    420.44
    Engineering          account
    Company
    Singapore            Routine
    Company   Subsidiary  current   N            152.19                                       152.19
                      account
    Influence onbusiness
    performance andfinancial Nomajorinfluenceonbusinessperformance andfinancialstatusoftheCompanyfromrelatedliabilities
    status oftheCompany
    from relatedliabilities
    
    
    Debts payable to related party:
    
                                  Balanceat    Current     Current               Current     Ending
     Relatedparty Relationship   Causes   period-begin  newlyadded   recovery   Interestrate    interest    balance(10
                                 (10thousand (10thousand (10thousand           (10thousand   thousand
                                   Yuan)      Yuan)      Yuan)                Yuan)      Yuan)
    New Power  Subsidiary   Disburseme     8,861.83    30,939.4   32,088.96                        7,712.27
    Company             ntfee
    Server      Subsidiary   Money          6,600     120.12      60.06      3.60%      60.06    6,660.06
    Company             lending
    Shen Nan
    Dian                Money
    Environment  Subsidiary   lending        2,522.78     550.85               3.60%      50.85    3,073.63
    Protection
    Company
    Syndisome   Subsidiary   Disburseme      386.69       5.63                                   392.32
    Company             ntfee
    Influence onbusiness
    performance andfinancial  Nomajorinfluenceonbusinessperformance andfinancialstatusoftheCompanyfromrelateddebts
    status oftheCompany from
    related debts
    
    
    5. Other major related transactions
    
    □Applicable √Not applicable
    
    There are no other major related transactions in the period
    
    XIV. Non-business capital occupying by controlling shareholders and its related parties
    
    □ Applicable √ Not applicable
    
    No non-business capital occupied by controlling shareholders and its related parties in Period.
    
    XV. Significant contract and implementations
    
    1. Trusteeship, contract and leasing
    
    (1) Trusteeship
    
    √Applicable □ Not applicable
    
    Note of trusteeship
    
    In line with the Genset Asset Trusteeship Contract of Shenzhen New Power Industrial Co., Ltd. signed with New Power Company,
    
    the Company was entrusted to operate and manage the power generation machine unit owned by its wholly-owned subsidiary New
    
    Power Company. The custody business service charge RMB 5.8711 million was obtained by the Company in reporting period.
    
    Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
    
    □ Applicable √ Not applicable
    
    No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting period.
    
    (2) Contract
    
    □ Applicable √ Not applicable
    
    No contract for the Company in Period.
    
    (3) Leasing
    
    □ Applicable √ Not applicable
    
    No leasing for the Company in Period.
    
    2. Major guarantees
    
    □ Applicable √ Not applicable
    
    No major guarantees for the Company in Period.
    
    3. Trust financing
    
    √Applicable □Not applicable
    
    In 10 thousand Yuan
    
           Type           Capitalsources       Amount occurred     Outstandingbalance     Overdueamount
    Bank financial products Ownfunds                      5,367.42           13,967.42                0
    Total                                           5,367.42           13,967.42                0
    
    
    Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
    
    □Applicable √Not applicable
    
    Entrust financial expected to be unable to recover the principal or impairment might be occurred
    
    □ Applicable √ Not applicable
    
    4. Other material contracts
    
    √Applicable □Not applicable
    
                       Th   The   The   Nam                         Wh      Th
                        e  book   asses   eof   The                    eth       e
      The    The         da  value   sed    the   base                    er   In  pe
     name   name        te  ofthe  value  evalu   date            Bargain  con  ci   rf   The
     of the  ofthe  contr   of  assets  ofthe  ation  evalu           price(in  nec  de  or  date
     contra   contr   act   si   invol  assets  organ  ation   Pricing     10    ted  nc  m   of       Index
      cting  acted  objec  gn   ved   invol  izatio   (if   principles   thousan   tra   e   an  discl
     Comp   Com    t    at  inthe   ved   n(if   appli            dyuan)   nsa  rel  ce  osur
      any   pany        ur  contr  inthe  appli  cable                   ctio  ati  by   e
                        e   act   contr  cable    )                     n   on  th
                       of    (in    act     )                          (Y/       e
                       th    10    (in                                N)      en
                        e  thous   10                                        d
                       co   and   thous                                       of
                       ntr  yuan)   and                                        th
                       act   (if   yuan)                                       e
                           appli    (if                                        ter
                           cable   appli                                       m
                             )   cable
                                  )
           Shen         20              N/A                  Itwasa  N   N
           zhen         18                          Itwasa   framew       ot
           Gas          -0                          framewor    ork        ap
           Grou         5-                             k     agreeme       pli
           p           14                          agreement   nt,the       ca
      The   Co.,                                    ,theprice   priceof       bl   In       Failtoreleasefor
     Comp   Ltd.   Pipeli                               ofNG    NGwill       e   pr           special
      any,          ne                               willmake  makeby           og          disclosure
      New         gas                              bythetwo   thetwo           re          condition
     Power                                          parties    parties           ss         un-qualified
      Co.,                                          according  accordin
                                                    tothe    gtothe
                                                   suppleme  supplem
                                                    ntary     entary
                                                  agreement   agreeme
                                                             nt
     The    Shen   70%   20  5,841  8,329  Wats  2019-  Pricing     10,498(  N   N   C   7    Notice including:
     Comp   zhen   equit   20    .18    .92  on    6-30   principle    priceof      ot   o   Mar  70% Equity of
     any,    Gas   yof   -3-              (Beiji        inthe       equity       ap  m   ch    Shen Nan Dian
     Syndis  Grou  Shen   11              ng)         agreement   transfer      pli  pl   202   (Dongguan)
     ome    p     Nan                   Inter         isthatthe   amounte       ca  et   0,    Weimei Electric
     Comp   Co.,   Dian                  natio        negotiated     das      bl   ed  24    Power Co., Ltd
     any    Ltd.   Dong                  nal          transfer       87.5       e   on  Mar  Transfer,
                 guan                  Asset        priceof     million          Ju  ch    Resolution of the
                 Com                  s           underlyin     Yuan,          ly   202   First
                 pany                  Appr        gassets      17.48          2,   0,    Extraordinary
                 (40%                  aisal         (70%      million          20  11    Shareholders
                 equit                  Co.,         equityof      Yuan          20  Apri  General Meeting
                 y                     Ltd.         ShenNan   gains/lo              l     of2020, Progress
                 held                              Dian         sses              202   of  Transfer  of
                 direct                             Dongguan    during              0,    70% Equity of
                 ly by                              Company      the              and   Shen Nan Dian
                 the                               )ishigher   transitio              4    (Dongguan)
                 Com                              thanthe        nal              July  Weimei Electric
                 pany,                              appraisal     period              202   Power Co., Ltd
                 and                               valueof    fromthe                   and  Completion
                 30%                              the          base              0    of   the   70%
                 equit                              underlyin    dateof                   Equity of Shen
                 y                                gassets      assets                   Nan      Dian
                 held                              issuedby   appraisa                   (Dongguan)
                 throu                              Watson        lto                   Weimei Electric
                 gh                                (Beijing)    Decemb                   Power Co., Ltd
                 wholl                             Internatio     er31,                   Transferred;
                 y-ow                              nalAssets    2019)                   Notice    No.:
                 ned                               Appraisal                            (2020-006,
                 subsi                              Co.,Ltd.                            2020-019,
                 diary                                                                2020-023   and
                 Syndi                                                               2020-032);
                 some                                                                Released  on  :
                 Com                                                                China Securities
                 pany                                                                Journal,
                 indire                                                               Securities Times,
                 ctly)                                                                Hong    Kong
                                                                                    Commercial
                                                                                    Daily and Juchao
                                                                                    Website.
    
    
    XVI. Social responsibility
    
    1. Major environmental protection
    
    The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
    
    Yes
    
                                       Distribution           Pollutant
     Enterprise    Main     Wayof   Numberof   ofthe    Emission   discharge    Total     Total    Excessive
        or     pollutant   discharge  discharge  discharge  concentratio  standard   discharge   approved   emission
     subsidiary andfeatures            outlet     outlet      n    implemente          emissions
                                                            d
                                                         Implementa
    Shenzhen            Concentrate         Inplantarea           tionof
    Nanshan             emission           ofNanshan          “Shenzhen
    Power  Co., Oxynitride  fromboiler 2         Thermal  <15mg/m3   Blue”   19.04ton   457.5ton   0
    Ltd.                 uptake              Plant             emission
                                                         standard<15
                                                          mg/m3
    Shenzhen            Concentrate         Inplantarea         Implementa
    New Power  Oxynitride  emission  1        ofNanshan <15mg/m3   tionof  3.24ton   228.75ton  0
    Industrial            fromboiler           Thermal           “Shenzhen
    Co., Ltd.              uptake              Plant              Blue”
                                                          emission
                                                         standard<15
                                                          mg/m3
                                                        Emission
                                                        standards
    Shen Nan                                              forair
    Dian               Concentrate         Inplantarea         pollutants
    (Zhongshan  Oxynitride  emission  2        ofNanshan <25mg/m3 from      4.97ton   324.50ton  0
    ) Electric            fromboiler           Thermal           thermal
    Power Co.,            uptake              Plant            power
    Ltd.                                                  plants
                                                        GB13223-2
                                                        011
    
    
    Construction and operation of the pollution controlling instruments
    
    All pollution prevention and control facilities are operating normally, and all pollutant discharges are stable and up to standard.
    
    Environmental impact assessment of construction projects and other environmental protection administrative licenses:
    
    All the above three legal entities have passed the environmental impact assessment and have been filed in Guangdong Environmental
    
    Protection Department.
    
    Emergency plan for sudden environmental incidents:
    
    The emergency plan for sudden environmental incidents has been filed in Guangdong Environmental Protection Department and the
    
    corresponding Municipal Environmental Protection Bureau.
    
    Environmental self-monitoring program:
    
    The environmental self-monitoring program has been prepared and reviewed by the environmental protection department; the
    
    information on the monitoring data is disclosed on the website of the environmental protection department on time.
    
    Other environmental information that should be disclosed:
    
    Nil
    
    Relevant other information
    
    Nil
    
    2. Fulfill the precise social responsibility for poverty alleviation
    
    During the reporting period, the company has not yet carried out targeted poverty alleviation.
    
    XVII. Other major events
    
    √Applicable □ Not applicable
    
    1. Matters related to the agreement to transfer 70% of the shares of Shen Nan Dian Dongguan Company. On March 5 and March 23,
    
    2020, the Eleventh Extraordinary Meeting of the Company’s Eighth Board of Directors and the 2020 First Extraordinary General
    
    Meeting of Shareholders respectively reviewed and approved the Proposal on the Agreement to Transfer 70% Equity of Shen Nan
    
    Dian (Dongguan) Weimei Electric Power Co., Ltd.", agreeing to transfer 70% equity of Shen Nan Dian Dongguan Company directly
    
    and indirectly held by the company to Shenzhen Gas at a total price of 104.98 million yuan (including the equity agreement price of
    
    87.5 million yuan and the transition period gains and losses of 17.48 million yuan). According to the equity transfer agreement
    
    signed between the company and Shenzhen Gas, after the company received 40% of equity transfer fund, i.e. 59.99 million yuan, of
    
    Shen Nan Dian Dongguan Company from Shenzhen Gas, Shen Nan Dian Dongguan Company has completed the industrial and
    
    commercial change registration on April 9, 2020. Since then, the total loan of 300 million yuan applied by Shen Nan Dian Dongguan
    
    Company from Ningbo Bank Shenzhen Branch and Industrial Bank Shenzhen Branch has been repaid, and the joint guarantee and
    
    liability guarantee provided by the company for the above loan of Shen Nan Dian Dongguan Company has been lifted; Shen Nan
    
    Dian Dongguan Company has fully repaid the principal and interest of the company's 180 million yuan of financial assistance. On
    
    July 2, 2020, the company's wholly-owned subsidiary Hong Kong Syndisome Co., Ltd. received the remaining 30% equity transfer
    
    payment of RMB 44.99 million from Shenzhen Gas. So far, the company has received all the equity transfer payments paid by
    
    Shenzhen Gas, and the transfer of 70% equity of Shen Nan Dian Dongguan Company was completed. (Found more in the Notice
    
    released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website, including 70% Equity of
    
    Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd Transfer, Resolution of the First Extraordinary Shareholders General
    
    Meeting of 2020, Progress of Transfer of 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd and
    
    Completion of the 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd Transferred (Notice No.: 2020-006,
    
    2020-019, 2020-023 and 2020-032))
    
    2. Matters concerning the company’s investment in Yuanzhi Ruixin New Generation Information Technology Equity Investment
    
    Fund. On March 5, 2020 and March 23, 2020, the Eleventh Extraordinary Meeting of the Company’s Eighth Board of Directors, and
    
    the 2020 First Extraordinary General Meeting of Shareholders respectively reviewed and approved the Proposal on Investing in
    
    Yuanzhi Ruixin New Generation Information Technology Equity Investment Fund and Related Transactions, agreed that the company
    
    would invest 200 million yuan with its own funds in Yuanzhi Ruixin New Generation Information Technology Equity Investment
    
    Fund. In view of the fact that Shenzhen Capital Holdings Co., Ltd, one of the limited partners of the fund, and Shenzhen Yuanzhi
    
    Ruixin Equity Investment Management Co.,Ltd., the general partner of the fund, are all related legal persons of the company, the
    
    company fulfills relevant approval procedures and information disclosure obligations in accordance with relevant regulations of
    
    related transactions. As of the end of the reporting period, the related work is in progress. The company and related parties have
    
    neither signed the Partnership Agreement for Yuanzhi Ruixin New Generation Information Technology Equity Investment Fund
    
    nor invested funds. The company will follow the progress of the matter and fulfill information disclosure obligations in accordance
    
    with the law and regulations. (Found more in the Notice released on China Securities Journal, Securities Times, Hong Kong
    
    Commercial Daily and Juchao Website, including Notice on Investing in Yuanzhi Ruixin New Generation Information Technology
    
    Equity Investment Fund and Related Transactions and Resolution of the First Extraordinary Shareholders General Meeting of 202
    
    (Notice No.: 2020-007 and 2020-019))
    
    3. T102-0011, T102-0155 Land related matters
    
    (1) On April 2, 2020, the company received the Notice of Shenzhen Qianhai Authority Regarding Resumption of Land Use Rights of
    
    T102-0011 Parcel from Shenzhen Qianhai Authority. The company fulfilled its information disclosure obligations in a timely manner,
    
    and immediately worked with special legal advisors to study the Shenzhen Qianhai Authority’s plan to take back the land use rights
    
    of the T102-0011 parcel and its countermeasures. At the same time, it organized Shen Nan Dian Environment Protection Company,
    
    the company’s wholly-owned subsidiary, and Nanshan Power Factory, a subsidiary of the company, carefully assessed the impact of
    
    this matter on their normal production and operation. On April 24, the company delivered the "Reply to the Notice of Shenzhen
    
    Qianhai Authority Regarding the Resumption of Land Use Rights of T102-0011 Parcel" (SNDHZ [2020 ] No. 4), which analyzed
    
    and calculated the impact of Shenzhen Qianhai Authority's plan to recover the land use rights of 2531 square meters within
    
    T102-0011 parcel on Shen Nan Dian Environment Protection Company and Nanshan Power Factory, and made a compensation
    
    request for the resumption of land use rights. (For details, please refer to the company’s Announcement About Receipt of the Notice
    
    of Shenzhen Qianhai Authority Regarding Resumption of Land Use Rights of T102-0011 Parcel, the Announcement About Reply to
    
    the Notice of Shenzhen Qianhai Authority Regarding the Resumption of Land Use Rights of T102-0011 Parcel disclosed on China
    
    Securities Journal, Securities Times, Hong Kong Commercial Daily and cninfo, Announcement No.: 2020-020, 2020-029).
    
    (2)On April 10, 2020, the company received the Letter of Notice Regarding the Selection of the Surveying, Mapping and Evaluation
    
    Agency for the Land Preparation Project (Legal Buildings and Structures) of the Rapid Reconstruction Project of Yueliangwan
    
    Avenue from Shenzhen Qianhai Development Investment Holding Co., Ltd. The company fulfilled its obligation of information
    
    disclosure in a timely manner (for details, please refer to the company’s Announcement About Receipt of Letter of Notice Regarding
    
    the Selection of the Surveying, Mapping and Evaluation Agency for the Land Preparation Project (Legal Buildings and Structures) of
    
    the Rapid Reconstruction Project of Yueliangwan Avenue from Shenzhen Qianhai Development Investment Holding Co., Ltd.
    
    disclosed on China Securities Journal, Securities Times, Hong Kong Commercial Daily and cninfo, Announcement No.: 2020-024).
    
    (3)On June 19, 2020, Shenzhen Qianhai Authority issued the Announcement of Shenzhen Qianhai Authority on the Public
    
    Presentation of the Development Unit Planning Revision (Draft) of Qianhai Area on its official website (hereinafter referred to as
    
    "the Announcement"), and publicly presented the development unit planning revision (draft) for the three areas of Qianhai (Guiwan,
    
    Qianwan and Mawan). The company fulfilled its obligation of information disclosure in a timely manner, and submitted the Opinions
    
    of Shenzhen Nanshan Power Co., Ltd. on the Development Unit Planning Revision (Draft) of Qianhai Area to the Shenzhen Qianhai
    
    Authority, put forward relevant issues concerning planning content of the company's Nanshan Power Factory (Development Unit 13)
    
    in the Announcement, and raised an objection to the planning for Development Unit 13, hoping that Shenzhen Qianhai Authority will
    
    fully consider the contributions the company made to Shenzhen and Qianhai area for more than 30 years, based on the principle of
    
    “respect for history, cooperation and win-win”, taking the successful land preparation model and mature experience of Qianhai for
    
    example, and properly solve the related issues of the company’s Nanshan Power Factory (Development Unit 13), so that the
    
    legitimate rights and interests of listed companies and their shareholders shall be effectively protected (Found more in the Notice
    
    released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website, including the Notice on
    
    Shenzhen Qianhai Authority issued the Announcement of Shenzhen Qianhai Authority on the Public Presentation of the Development
    
    Unit Planning Revision (Draft) and Development Unit Planning Revision (Draft) of Qianhai Area to the Shenzhen Qianhai Authority
    
    (Notice No.: 2020-031 and 2020-034))
    
    The company will continue to follow up the progress of matters related to the land where Nanshan Power Factory is located, maintain
    
    close communication with relevant functional departments in Shenzhen and Shenzhen Qianhai Authority, and do its best to protect
    
    the legitimate rights and interests of the listed company and all shareholders.
    
    Except for the above matters, the collection of refundable money of the "Guangdong Xinjiang Aid Project" and the "Project
    
    Technical Reform Benefit Fund" that the company participated in in 2013 had no progress or change during the reporting period.
    
    XVIII. Major event of the subsidiaries
    
    □Applicable √Not applicable
    
    Section VI. Changes in Shares and Particulars about Shareholders
    
    I. Changes in Share Capital
    
    1. Changes in Share Capital
    
    In Share
    
                           BeforetheChange      Increase/Decrease intheChange(+,-)      AftertheChange
                                           New         Capitaliz
                          Amount   Proportio  shares  Bonus  ationof  Others  Subtotal  Amount  Proportio
                                     n     issued   shares  public                          n
                                                       reserve
    I. Restricted shares            14,139  0.0023%                                     14,139 0.0023%
    1. State-ownedshares
    2. State-owned legal person’s
    shares
    3. Otherdomesticshares         14,139  0.0023%                                     14,139 0.0023%
    Including:  Domestic  legal
    person’s shares
    Domestic  natural  person’s     14,139  0.0023%                                     14,139 0.0023%
    shares
    4. Foreignshares
    Including:   Foreign  legal
    person’s shares
    Foreign   natural  person’s
    shares
    II. Unrestrictedshares       602,748,457 99.9977%                                 602,748,457 99.9977%
    1. RMBordinaryshares     338,894,011 56.2235%                                 338,894,011 56.2235%
    2. Domestically listed foreign 263,854,446 43.7742%                                 263,854,446 43.7742%
    shares
    3.  Overseas  listed foreign
    shares
    4. Others
    III. Totalshares           602,762,596  100.00%                                 602,762,596 100.00%
    
    
    Reasons for share changed
    
    □ Applicable √ Not applicable
    
    Approval of share changed
    
    □ Applicable √ Not applicable
    
    Ownership transfer of share changes
    
    □ Applicable √ Not applicable
    
    Implementation progress of shares buy-back
    
    □ Applicable √ Not applicable
    
    Implementation progress of the reduction of repurchases shares by centralized bidding
    
    □ Applicable √ Not applicable
    
    Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
    
    shareholders of Company in latest year and period
    
    □ Applicable √ Not applicable
    
    Other information necessary to disclose or need to disclosed under requirement from security regulators
    
    □ Applicable √ Not applicable
    
    2. Changes of restricted shares
    
    □ Applicable √ Not applicable
    
    II. Securities issuance and listing
    
    □ Applicable √ Not applicable
    
    III. Number of shares and shares held
    
    In Share
    
                                               Totalpreferenceshareholders
    Total commonshareholdersat                  23,874 withvotingrightsrecoveredat                       0
    period-end                                    endofreportingperiod(if
                                               applicable) (seenote8)
                Particularsaboutcommonsharesheldabove5%byshareholders ortoptencommonshareholders
                                      Numberof  Changes  Amountof  Amountof     Numberofshare
                    Natureof   Proportion  common     in     restricted  un-restricted      pledged/frozen
      Shareholders    shareholder   ofshares  sharesheld reporting   common   common
                               held       at     period   sharesheld  sharesheld  Stateofshare   Amount
                                      period-end
    HONG KONG      Overseas      15.28% 92,123,248                  92,123,248
    NAM HOI        corporate
    (INTERNATION
    AL) LTD
    Shenzhen        State-owned
    Guangju Industrial   corporate      12.22% 73,666,824                  73,666,824
    Co., Ltd.
    Shenzhen Energy   State-owned     10.80% 65,106,130                  65,106,130
    Group Co.,Ltd.     corporate
    Gaohua-HSBC
    -GOLDMAN,     Overseas       2.13% 12,839,723                  12,839,723
    SACHS &        corporate
    CO.LLC
    BOCI            Overseas
    SECURITIES      corporate       1.72% 10,389,282                  10,389,282
    LIMITED
    Liu Fang       Domesticnature     1.70% 10,237,134                  10,237,134
                     person
    China Merchants   State-owned
    Securities (HK)     corporate       1.32%  7,955,128                   7,955,128
    Co., Limited
    Zeng Ying      Domesticnature     1.25%  7,559,600                   7,559,600
                     person
    Meiyi Investment    Domestic
    Property Co.,Ltd. non-state-owned     0.87%  5,216,700                   5,216,700
                    corporate
    LI SHERYN     Overseasnature     0.84%  5,067,200                   5,067,200
    ZHAN MING       person
    Explanation onassociated       1.ShenzhenEnergyGroupCo.,Ltd.holdsindirectly100%equitiesofHongKongNamHoi
    relationship amongtheaforesaid   (International) Limited;2.Amongothersocialpublicshareholders,theCompany didnot
    shareholders                 knowwhether therewereassociated relationships orbelonging toconsistent actors.
                       Particular abouttoptencommonshareholders withun-restrict sharesheld
            Shareholders            Amountofun-restrictcommonsharesheldat            Typeofshares
                                            period-end                   Type        Amount
    HONG KONGNAMHOI                                            Domestically
    (INTERNATIONAL) LTD                                    92,123,248 listedforeign         92,123,248
                                                                  shares
    Shenzhen GuangjuIndustrialCo.,                                73,666,824 RMBordinary        73,666,824
    Ltd.                                                           shares
    Shenzhen EnergyGroupCo.,Ltd.                                65,106,130 RMBordinary        65,106,130
                                                                  shares
    Gaohua-HSBC-GOLDMAN,                                 12,839,723 RMBordinary        12,839,723
    SACHS &CO.LLC                                                 shares
                                                                  Domestically
    BOCI SECURITIES LIMITED                                 10,389,282 listedforeign         10,389,282
                                                                  shares
                                                                  RMBordinary         7,176,334
                                                                  shares
    Liu Fang                                                10,237,134 Domestically
                                                                  listedforeign          3,060,800
                                                                  shares
    China Merchants Securities(HK)                                        Domestically
    Co., Limited                                              7,955,128 listedforeign          7,955,128
                                                                  shares
                                                                  Domestically
    Zeng Ying                                                7,559,600 listedforeign          7,599,600
                                                                  shares
    Meiyi InvestmentPropertyCo.,Ltd.                               5,216,700 RMBordinary         5,216,700
                                                                  shares
                                                                  Domestically
    LI SHERYNZHANMING                                     5,067,200 listedforeign          5,067,200
                                                                  shares
    Expiation on associated relationship
    or consistent actors within the top1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED was held by
    10  un-restrict  shareholders  andShenzhenEnergyGroupCo.,Ltd.
    between   top   10   un-restrict 2. Among other social public shareholders, the Company did not know whether there were
    shareholders    and   top   10associatedrelationships orbelongingtoconsistentactors.
    shareholders
    Explanation ontop10shareholders Amongthetoptenshareholders, Ms.LiuFangholds4,031,688sharesthroughcredit
    involving marginbusiness(if     transaction guaranteesecuritiesaccount
    applicable) (seenote4)
    
    
    Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
    
    agreement dealing in reporting period
    
    □ Yes √ No
    
    The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
    
    buy-back agreement dealing in reporting period.
    
    IV. Changes of controlling shareholders or actual controller
    
    Change of controlling shareholders in reporting period
    
    □ Applicable √ Not applicable
    
    No changes of controlling shareholder for the Company in reporting period
    
    Change of actual controller in the period
    
    □Applicable √Not applicable
    
    Actual controller of the Company has no changes in the reporting period.
    
    Section VII. Preferred Stock
    
    □ Applicable √ Not applicable
    
    The Company had no preferred stock in the reporting period.
    
    Section VIII. Convertible Bonds
    
    □ Applicable √ Not applicable
    
    The Company had no convertible bonds in the Period.
    
    Section IX. Particulars about Directors, Supervisors and Senior
    
    Officers
    
    I. Changes of shares held by directors, supervisors and senior officers
    
    □ Applicable √ Not applicable
    
    Shares held by directors, supervisors and senior officers have no changes in reporting period, found more details in Annual Report
    
    2019.
    
    II. Resignation and dismissal of directors, supervisors and senior officers
    
    □ Applicable √ Not applicable
    
    The directors, supervisors and senior officers of the company did not change during the reporting period, found more details in
    
    Annual Report 2019.
    
    Section X. Corporate-bond
    
    Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
    
    annual report approved for released or fail to cash in full on due
    
    No
    
    Section XI. Financial Report
    
    Financial statements and notes are attached.
    
    Section XII. Documents Available for Reference
    
    I. Original semi-annual Report of 2020 carried with the personnel signature of Legal
    
    Representative;
    
    II. Accounting Statements carried with the signature and seals of the person in charge of the
    
    Company (Legal Representative), person in charge of accounting (General Manager and CFO) and
    
    person in charge of accounting department (chief accountants).
    
    III.All the originalCompany’s documents and publicnotices disclosed in SecuritiesTimes,China Securities
    
    Journal andHongKongCommercialDaily in the report period.
    
    IV.Place for inspection: ShenzhenStockExchange, Secretariat of theBoardofDirector of theCompany.
    
    Financial Report
    
    I. Auditing report
    
    Whether the semi-annual report have been audited or not
    
    □ Yes √ No
    
    The financial report of the semi-annual report has not been audited.
    
    II. Financial Statement
    
    Statement in Financial Notes are carried in RMB/CNY
    
    1. Consolidated balance sheet
    
    Shenzhen Nanshan Power Co., Ltd.
    
    2020-06-30
    
    In RMB
    
                Item                        2020-6-30                       2019-12-31
    Current assets:
        Monetaryfunds                               1,084,903,966.81                    773,209,854.84
        Settlementprovisions
        Capitallent
        Tradablefinancial assets
        Derivativefinancialassets
        Notereceivable                                  2,900,000.00
        Accountreceivable                              132,037,467.25                    178,150,580.32
        Receivablefinancing
        Accountspaidinadvance                           32,848,698.89                     70,005,681.50
        Insurancereceivable
        Reinsurancereceivables
    receivCaobnletractreserveofreinsurance
        Otheraccountreceivable                            80,837,116.58                     32,321,826.94
         Including: Interestreceivable
              Dividend receivable
    assetsBuyingbackthesaleoffinancial
        Inventories                                   108,553,898.22                    124,686,443.61
        Contractual assets
        Assetsheldforsale
    year Non-current assetduewithinone
        Othercurrentassets                              491,760,334.29                    445,236,731.33
    Total currentassets                                1,933,841,482.04                   1,623,611,118.54
    Non-current assets:
        Loansandpayments onbehalf
        Debtinvestment
        Otherdebtinvestment
        Long-termaccountreceivable
        Long-termequityinvestment                         14,375,580.60                     14,619,203.03
    instruImnveensttmentinotherequity                           60,615,000.00                     60,615,000.00
        Othernon-currentfinancial assets
        Investmentrealestate                              2,303,258.20                      2,401,327.00
        Fixedassets                                   954,992,268.00                   1,381,675,872.68
        Constructioninprogress                            60,831,928.29                     66,474,630.23
        Productivebiologicalasset
        Oilandgasasset
        Right-of-use assets
        Intangibleassets                                 21,334,118.82                     43,602,166.44
    DeveEloxppmenesnetonResearchand
        Goodwill
    apporLtioonnge-dtermexpensestobe                            1,048,199.78                      1,174,171.16
        Deferredincometaxasset                            2,206,049.69                      2,206,049.69
        Othernon-currentasset                                                          22,882,181.78
    Total non-currentasset                              1,117,706,403.38                   1,595,650,602.01
    Total assets                                     3,051,547,885.42                   3,219,261,720.55
    Current liabilities:
        Short-termloans                                755,480,134.11                    881,075,378.48
        Loanfromcentralbank
        Capitalborrowed
        Tradingfinancialliability
        Derivativefinancialliability
        Notepayable
        Accountpayable                                 13,361,192.95                     19,871,102.41
        Accountsreceivedinadvance
        Contractual liability
    repurSchelalsinegfinancialassetof
    deposAitbsorbingdepositandinterbank
        Securitytradingofagency
        Securitysalesofagency
        Wagepayable                                   41,045,198.56                     55,208,432.53
        Taxespayable                                   11,824,882.40                     21,769,273.77
        Otheraccountpayable                             34,163,258.96                     43,691,472.06
         Including: Interestpayable
                 Dividendpayable
    commCiossmiomnispsaioyanbclehargeand
        Reinsurancepayable
        Liabilityheldforsale
    one yNeaorn-currentliabilitiesduewithin
        Othercurrentliabilities
    Total currentliabilities                               855,874,666.98                   1,021,615,659.25
    Non-current liabilities:
        Insurancecontractreserve
        Long-termloans
        Bondspayable
         Including: Preferredstock
    securities      Perpetualcapital
        Lease liability
        Long-termaccountpayable
        Long-termwagespayable
        Accrualliability                                 26,646,056.28                     26,646,056.28
        Deferredincome                                 96,957,757.04                    108,507,683.52
        Deferredincometaxliabilities
        Othernon-currentliabilities
    Total non-currentliabilities                            123,603,813.32                    135,153,739.80
    Total liabilities                                    979,478,480.30                   1,156,769,399.05
    Owner’s equity:
        Sharecapital                                   602,762,596.00                    602,762,596.00
        Otherequityinstrument
         Including: Preferredstock
    securities      Perpetualcapital
        Capitalpublicreserve                             362,770,922.10                    362,770,922.10
        Less:Inventory shares
        Othercomprehensive income                         -2,500,000.00                     -2,500,000.00
        Reasonablereserve
        Surpluspublicreserve                            332,908,397.60                    332,908,397.60
        Provisionofgeneralrisk
        Retainedprofit                                 746,816,139.04                    706,830,892.54
    pTaorteanltocwonmepr’asnyequityattributableto                      2,042,758,054.74                   2,002,772,808.24
        Minorityinterests                                29,311,350.38                     59,719,513.26
    Total owner’sequity                               2,072,069,405.12                   2,062,492,321.50
    Total liabilitiesandowner’sequity                      3,051,547,885.42                   3,219,261,720.55
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    2. Balance Sheet of Parent Company
    
    In RMB
    
                Item                        2020-6-30                       2019-12-31
    Current assets:
        Monetaryfunds                               1,012,488,905.86                    632,948,706.11
        Tradingfinancialassets
        Derivativefinancialassets
        Notereceivable
        Accountreceivable                               61,629,518.43                     31,824,693.69
        Receivablefinancing
        Accountspaidinadvance                           27,966,084.58                     46,152,700.57
        Otheraccountreceivable                           660,835,522.34                    873,861,071.55
         Including: Interestreceivable
                 Dividendreceivable
        Inventories                                    97,843,620.07                    101,728,367.43
        Contractualassets
        Assetsheldforsale
    one yNeaorn-currentassetsmaturingwithin
        Othercurrentassets                              485,147,244.31                    438,613,774.49
    Total currentassets                                2,345,910,895.59                   2,125,129,313.84
    Non-current assets:
        Debtinvestment
        Otherdebtinvestment
        Long-termreceivables
        Long-termequityinvestments                       228,918,765.00                    303,341,165.00
    instruImnveensttmentinotherequity                           60,615,000.00                     60,615,000.00
        Othernon-currentfinancial assets
        Investmentrealestate
        Fixedassets                                   315,117,782.13                    321,395,526.04
        Constructioninprogress                             2,355,233.61                      1,949,450.23
        Productivebiologicalassets
        Oilandnaturalgasassets
        Right-of-useassets
        Intangible assets                                  229,435.21                       404,104.06
        Researchanddevelopment costs
        Goodwill
        Long-termdeferredexpenses                           709,967.63                       790,841.39
        Deferredincometaxassets
        Othernon-currentassets
    Total non-currentassets                               607,946,183.58                    688,496,086.72
    Total assets                                     2,953,857,079.17                   2,813,625,400.56
    Current liabilities
        Short-termborrowings                            755,480,134.11                    580,640,114.59
        Tradingfinancialliability
        Derivativefinancialliability
        Notespayable
        Accountpayable                                  1,756,794.04                       864,016.74
        Accountsreceivedinadvance
        Contractualliability
        Wagepayable                                   26,769,914.84                     33,840,544.53
        Taxespayable                                   1,279,402.89                       718,630.17
        Otheraccountspayable                            193,871,721.75                    203,332,331.14
         Including: Interestpayable
              Dividend payable
        Liabilityheldforsale
    one yNeaorn-currentliabilitiesduewithin
        Othercurrentliabilities
    Total currentliabilities                               979,157,967.63                    819,395,637.17
    Non-current liabilities:
        Long-termloans
        Bondspayable
         Including: preferredstock
    securities    Perpetualcapital
        Leaseliability
        Long-termaccountpayable
    payabLloengtermemployee compensation
        Accruedliabilities
        Deferredincome                                 56,533,398.56                     58,261,356.20
        Deferredincometaxliabilities
        Othernon-currentliabilities
    Total non-currentliabilities                             56,533,398.56                     58,261,356.20
    Total liabilities                                   1,035,691,366.19                    877,656,993.37
    Owners’ equity:
        Sharecapital                                   602,762,596.00                    602,762,596.00
        Otherequityinstrument
         Including: preferredstock
    securities    Perpetualcapital
        Capitalpublicreserve                             289,963,039.70                    289,963,039.70
        Less:Inventory shares
        Othercomprehensive income
        Specialreserve
        Surplusreserve                                 332,908,397.60                    332,908,397.60
        Retainedprofit                                 692,531,679.68                    710,334,373.89
    Total owner’sequity                                1,918,165,712.98                   1,935,968,407.19
    Total liabilitiesandowner’sequity                      2,953,857,079.17                   2,813,625,400.56
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    3. Consolidated Profit Statement
    
    In RMB
    
                 Item                     2020semi-annual                  2019semi-annual
    I. Totaloperatingincome                              518,150,606.21                    408,124,616.38
        Including:Operating income                        518,150,606.21                    408,124,616.38
            Interest income
            Insurance gained
    commission Cinocmommeissionchargeand
    II. Totaloperatingcost                                508,157,542.84                    443,959,972.56
        Including:Operating cost                          453,109,436.14                    382,997,137.69
            Interest expense
    commission Cexopmemnsiessionchargeand
        Cashsurrendervalue
    compNenestaatmioonuntofexpenseof
    insuraNnecteacmoonutrnatcotfrewseitrhvderawalof
        Bonusexpenseofguaranteeslip
            Reinsurance expense
            Tax andextras                              4,419,108.69                     2,825,433.43
            Sales expense                               2,527,403.66                     2,566,269.52
            Administrative expense                        43,036,872.15                    44,931,864.50
            R&D expense
            Financial expense                            5,064,722.20                    10,639,267.42
    expenses    Including:Interest                         18,187,759.13                    23,542,971.21
                     Interest income                    -13,142,285.32                    -13,189,605.67
        Add:otherincome                                 8,755,536.55                     4,962,155.46
    listed withIn“v-”e)stmentincome(Lossis                       33,291,259.12                      -677,552.37
    on affiliateIdnccluomdinpgan:yInavnedstjmoiennttviennctoumree            -243,622.43                      -677,552.37
    recognition forTfihneantecrimalinaasstieotnsmofeianscuoremde
    by amortizedcost(Lossislistedwith“-”)
    listed withE“x-c”h)angeincome(Lossis
    (Loss islisNteedtewxipthos“u-r”e)hedgingincome
    value (LosIsncisomlisetefdrowmitchh“a-n”g)eoffair
    (Loss islisLtoedsswoifthcr“e-d”i)timpairment
    (Loss islisLtoedsswesitohf“d-e”v)aluationofasset
    (Loss islisIntecdomweithfr“o-m”)assetsdisposal                        828,535.66                      -417,926.32
    “II-I”.)Operatingprofit(Lossislistedwith                     52,868,394.70                    -31,968,679.41
        Add:Non-operating income                             4,753.84                      103,166.50
        Less:Non-operating expense                            11,110.00                       46,124.97
    IV.Totalprofit(Lossislistedwith“-”)                      52,862,038.54                    -31,911,637.88
        Less:Incometaxexpense                             610,366.52                     1,157,865.76
    V.Netprofit(Netlossislistedwith“-”)                     52,251,672.02                    -33,069,503.64
      (i)Classifybybusinesscontinuity
    (net l1o.scsolnistitneudowusithop‘e-”ra)tingnetprofit                       52,251,672.02                    -33,069,503.64
    listed2w.teitrhm‘i-n”a)tionofnetprofit(netloss
      (ii)Classifybyownership
    of par1e.Nntectopmropfaitnayttributabletoowner’s                     52,040,498.42                    -25,283,190.82
    losses2.Minorityshareholders’gainsand                       211,173.60                     -7,786,312.82
    VinIc.oNmeetafter-taxofothercomprehensive
    incNometeafattetrr-ibtauxtaobfleotthoeorwconmerpsroefhepnasrievnet
    company
    items(Iw)hOicthhewrcilolmnoptrebheernescilvaessiinfcieodme
    subsequently toprofitofloss
    benefit plans1t.hCahtarneg-meseaosfutrheeddefined
    income unde2r.eOqtuhietrycmomethporedhtehnastivceannot
    be transfertogain/loss
    investment in3.oCthhaenrgeequoiftyfaiinrsvtraulumeeonft
    enterprise's c4r.eFdaiitrrivsakluechangeof
            5. Other
    items w(iih)icOhthweirllcboemrpercelhaesnsisfiiveedincome
    subsequently toprofitorloss
    income unde1r.eOqtuhietrycmomethporedhtehnastivcean
    transfer togain/loss
    other debtin2v.eCsthmanegnetoffairvalueof
    re-classify to3o.Athmerouconmtopfrefihneannsciviaelassets
    income
    provision for4o.Cthreerdidteibmtpinaivremstemntent
            5.Cash flowhedgingreserve
    arising ontra6n.sTlraatniosnlatoifonfodreififgenrecnucreresncy
    financial statements
            7.Other
    incNometeafattetrr-ibtauxtaobfleotthoemrcinoomriptryehensive
    shareholders
    VII. Totalcomprehensive income                         52,251,672.02                    -33,069,503.64
    attributaTboltealtocoomwpnreerhseonfspivaereinntcoCmomepany                    52,040,498.42                    -25,283,190.82
    attribTutoatballecotommprienhoernitsyivsehairnechoomldeers         211,173.60                     -7,786,312.82
    VIII. Earningspershare:
        (i) Basicearnings pershare                                0.09                          -0.04
        (ii)Dilutedearningspershare                               0.09                          -0.04
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    4. Profit Statement of Parent Company
    
    In RMB
    
                Item                     2020semi-annual                  2019semi-annual
    I. Operatingincome                                 145,767,015.34                    165,514,051.23
        Less:Operating cost                              137,936,919.09                    172,328,135.53
           Taxesandsurcharge                            1,043,521.78                      1,087,030.23
           Salesexpenses
           Administrationexpenses                        20,573,683.41                     24,673,677.93
           R&Dexpenses
           Financialexpenses                            -15,583,586.02                    -14,339,507.18
    expenses    Including:interest                         14,003,693.17                     22,030,984.10
                   Interestincome                      -29,739,688.14                    -36,594,234.59
        Add:otherincome                                6,061,054.97                      1,973,036.55
    listed withIn“v-”e)stmentincome(Lossis                      -14,432,400.00
    on affiliateIdncCluodminpga:nIynvaensdtmjoeinnttvinecnotumree
    income recogniTtihoentfeorrmfiinnaatniocnialofassets
    lmisetaesduwreidthb“y-”a)mortizedcost(Lossis
    (Loss islisNteedtewxipthos“u-r”e)hedgingincome
    value (LosCshisanligsitnegdiwncitohm“e-”o)ffair
    (Loss islisLtoedsswoifthcr“e-d”i)timpairment
    (Loss islisLtoedsswesitohf“d-e”v)aluationofasset
    (Loss islisIntecdomweithon“-d”i)sposalofassets                        828,535.66                      -231,373.37
    I“I-.”O)peratingprofit(Lossislistedwith                      -5,746,332.29                    -16,493,622.10
        Add:Non-operating income
        Less:Non-operating expense                             1,110.00
    III. TotalProfit(Lossislistedwith“-”)                      -5,747,442.29                    -16,493,622.10
        Less:Incometax                                                               -2,246,824.86
    “IV-”.)Netprofit(Netlossislistedwith                        -5,747,442.29                    -14,246,797.24
        ((in)ectolnotsinsuliosutesdowpeirthati‘n-”g)netprofit                      -5,747,442.29                    -14,246,797.24
    loss l(iisit)edterwmitihna‘t-i”o)nofnetprofit(net
    Vin.cNometeafter-taxofothercomprehensive
    items(Iw)hOicthhewrcilolmnoptrebheernescilvaessiinfcieodme
    subsequently toprofitofloss
    benefit plans1t.hCahtarneg-meseaosfutrheeddefined
    income unde2r.eOqtuhietrycmomethporedhtehnastivceannot
    be transfertogain/loss
    investment in3.oCthhaenrgeequoiftyfaiinrsvtraulumeeonft
    enterprise's c4r.eFdaiitrrivsakluechangeof
            5. Other
    items w(IhI)icOhthweirllcboemrpercelahsesnisfiivedeincome
    subsequently toprofitorloss
    income unde1r.eOqtuhietrycmomethporedhtehnastivcean
    transfer togain/loss
    other debtin2v.eCsthmanegnetoffairvalueof
    assets re-clas3s.iAfymtoouontthoerffinancial
    comprehensive income
    provision for4o.Cthreerdidteibmtpinaivremstemntent
    reserve    5.Cashflowhedging
    arising ontra6n.sTlraatniosnlatoifonfodreififgenrences
    currency financial statements
            7.Other
    VI. Totalcomprehensive income                          -5,747,442.29                    -14,246,797.24
    VII. Earningspershare:
        (i) Basicearnings pershare
        (ii)Dilutedearningspershare
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    5. Consolidated Cash Flow Statement
    
    In RMB
    
                Item                     2020semi-annual                  2019semi-annual
    Ia.cCtivaisthiefsl:owsarisingfromoperating
    commCoadsihtireescaenivdepdrforvoimdinseglllianbgor          546,650,431.87                    428,898,326.58
    services
    and inNteetrbinancrkeadseepoosfitcustomerdeposit
    bank Netincreaseofloanfromcentral
    insuraCnacsehcroencetriavcetdfefreomoriginal
    businNesestcashreceived fromreinsurance
    and inNveetsitnmcerenatseofinsuredsavings
    commCiassshiorneccehiavregdefarnodmcionmtemreissts,ion
        Netincrease ofcapitalborrowed
    capitaNletincrease ofreturned business
    and pNurecthcaassehorfecseeicvuerditibeysagentsinsale
        Write-backoftaxreceived                            825,437.15                      1,346,224.12
    operaOtitnhgeracctaisvhitireesceivedconcerning                       22,506,294.89                     70,033,512.82
    oSpuebrtaottianlgoafcctaivshitiiensflowarisingfrom                       569,982,163.91                    500,278,063.52
    commCoadsihtipeasiadnfdorrepcuericvhinagsinlagbor           375,599,637.22                    333,819,040.13
    service
    advanNceetsincreaseofcustomerloansand
    bankNanedtiinnctreerabsaenkofdeposits incentral
    contrCacatschopmapidenfosartoioringinalinsurance
        Netincrease ofcapitallent
        Cashpaidforinterest,commission
    charge andcommission
    slip  Cashpaidforbonusofguarantee
        Cashpaidto/forstaffandworkers                      75,085,663.24                     66,444,597.80
        Taxespaid                                     28,204,829.24                     17,292,868.12
    operaOtitnhgeracctaisvhitipeasidconcerning                          21,155,472.75                     26,504,180.58
    oSpuebrtaottianlgoafcctaivshitioeustflowarisingfrom                      500,045,602.45                    444,060,686.63
    aNcettivciatisehsflowsarisingfromoperating                      69,936,561.46                     56,217,376.89
    IaIc.tiCvaitsihesf:lowsarisingfrominvesting
    invesCtmasehntreceivedfromrecovering
    incomCeashreceived frominvestment                          254,147.93
    fixedN,ienttacnagshibrleecaenivdeodthfreormlodnigs-pteorsmalof                                                    1,989,560.00
    assets
    subsiNdieatriceasshanrdecoetihveerdufnriotsmdisposalof
    invesOtinthgeracctaivshitireesceivedconcerning                         800,000.00
    Sacutbivtoittiaelsofcashinflowfrominvesting                       1,054,147.93                      1,989,560.00
    intangCiabslhepanaiddoftohreprulorcnhga-tseinrmgfaixsseedt,s                    5,447,277.81                     22,830,724.69
        Cashpaidforinvestment                           53,434,321.12
        Netincrease ofmortgaged loans
    subsiNdieatriceasshanrdecoetihveerdufnriotsmobtained
    invesOtinthgeracctaivshitipeasidconcerning                          12,577,163.02
    aScutbivtoittiaelsofcashoutflowfrominvesting                     71,458,761.95                     22,830,724.69
    aNcettivciatisehsflowsarisingfrominvesting                      -70,404,614.02                    -20,841,164.69
    IaIcIt.ivCiatisehsflowsarisingfromfinancing
    invesCtmasehntreceivedfromabsorbing
    absorbIinncglumdiinnogr:itCyasshharreecheoilvdeedrsf’rom
    investment bysubsidiaries
        Cashreceived fromloans                          844,233,285.00                    730,000,000.00
    finanOcitnhgeracctaisvhitireesceivedconcerning                      170,000,000.00                      7,303,338.86
    aScutbivtoittiaelsofcashinflowfromfinancing                    1,014,233,285.00                    737,303,338.86
        Cashpaidforsettlingdebts                         670,000,000.00                    634,000,000.00
    distriCbuatsihngpaoirdifnoterrdeisvtidpaeynidngandprofit                      30,452,445.36                     23,755,459.28
        Including:Dividendandprofitof
    msuibnsoidriitayrisehsareholderpaidby
    finanOcitnhgeracctaisvhitipeasidconcerning
    aScutbivtoittiaelsofcashoutflowfromfinancing                    700,452,445.36                    657,755,459.28
    aNcettivciatisehsflowsarisingfromfinancing                      313,780,839.64                     79,547,879.58
    IeVqu.Iivnafllueenntsceduoentcoafslhucatnudatcioasnhin              101,178.77                        3,136.95
    exchange rate
    eVq.uNiveatliennctrseaseofcashandcash                         313,413,965.85                    114,927,228.73
    equivAaldedn:tsBaatlathnecepoerfiocadsh-baengdincash          771,490,000.96                    914,956,611.70
    VeqIu.iBvaalleanntcseaotfthceasphearinoddc-aesnhd             1,084,903,966.81                   1,029,883,840.43
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    6. Cash Flow Statement of Parent Company
    
    In RMB
    
                Item                     2020semi-annual                  2019semi-annual
    Ia.cCtivaisthiefsl:owsarisingfromoperating
    commCoadsihtireescaenivdepdrforvoimdinseglllianbgor          175,122,223.90                    179,341,203.60
    services
        Write-backoftaxreceived                            171,207.01
    operaOtitnhgeracctaisvhitireesceivedconcerning                      255,646,269.06                    472,584,897.62
    oSpuebrtaottianlgoafcctaivshitiiensflowarisingfrom                       430,939,699.97                    651,926,101.22
    commCoadsihtipeasiadnfdorrepcuericvhinagsinlagbor            117,118,694.51                    166,269,024.94
    service
        Cashpaidto/forstaffandworkers                      47,301,346.15                     37,380,527.03
        Taxespaid                                       222,887.49                      9,889,753.49
    operaOtitnhgeracctaisvhitipeasidconcerning                         275,229,334.87                    180,626,305.78
    oSpuebrtaottianlgoafcctaivshitioeustflowarisingfrom                      439,872,263.02                    394,165,611.24
    Net cashflowsarisingfromoperating                       -8,932,563.05                    257,760,489.98
    activities
    IaIc.tiCvaitsihesf:lowsarisingfrominvesting
    invesCtmasehntreceivedfromrecovering                        59,990,000.00
    incomCeashreceived frominvestment                          254,147.93
    fixedN,ienttacnagshibrleecaenivdeodthfreormlodnigs-pteorsmalof                                                    1,794,800.00
    assets
    subsiNdieatriceasshanrdecoetihveerdufnriotsmdisposalof
    invesOtinthgeracctaivshitireesceivedconcerning                      230,318,617.98
    aScutbivtoittiaelsofcashinflowfrominvesting                     290,562,765.91                      1,794,800.00
    intangCiabslhepanaiddoftohreprulorcnhga-tseinrmgfaixsseedt,s                    1,915,256.43                     15,789,275.99
        Cashpaidforinvestment                           53,434,321.12
    subsiNdieatriceasshanrdecoetihveerdufnriotsmobtained
    invesOtinthgeracctaivshitipeasidconcerning
    aScutbivtoittiaelsofcashoutflowfrominvesting                     55,349,577.55                     15,789,275.99
    aNcettivciatisehsflowsarisingfrominvesting                      235,213,188.36                    -13,994,475.99
    IaIcIt.ivCiatisehsflowsarisingfromfinancing
    invesCtmasehntreceivedfromabsorbing
        Cashreceived fromloans                          544,233,285.00                    430,000,000.00
    finanOcitnhgeracctaisvhitireesceivedconcerning                        5,000,000.00
    aScutbivtoittiaelsofcashinflowfromfinancing                     549,233,285.00                    430,000,000.00
        Cashpaidforsettlingdebts                         370,000,000.00                    530,000,000.00
    distriCbuatsihngpaoirdifnoterrdeisvtidpaeynidngandprofit                      25,373,959.23                     20,895,394.22
    finanOcitnhgeracctaisvhitipeasidconcerning                            600,600.00
    aScutbivtoittiaelsofcashoutflowfromfinancing                    395,974,559.23                    550,895,394.22
    aNcettivciatisehsflowsarisingfromfinancing                      153,258,725.77                   -120,895,394.22
    IeVqu.Iivnafllueenntsceduoentcoafslhucatnudatcioasnhin                 848.67                          391.81
    exchange rate
    eVq.uNiveatliennctrseaseofcashandcash                         379,540,199.75                    122,871,011.58
    equivAaldedn:tsBaatlathnecepoerfiocadsh-baengdincash          632,948,706.11                    766,041,463.01
    VeqIu.iBvaalleanntcseaotfthceasphearinoddc-aesnhd             1,012,488,905.86                    888,912,474.59
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    7. Statement of Changes in Owners’ Equity (Consolidated)
    
    This Period
    
    In RMB
    
                                               2020 semi-annual
                               Owners’ equityattributabletotheparentCompany
                        Other
                    equity instrument            Other                                 Minori Total
        Item     Share     Pteuraple  Capital ILnevsesn:tecohemnpsriReaso Surplu PornovoifsiRetain      Subtot   ty  owners
                capitaPrefe         reserve            nable   s          ed   Other   al   interes   ’
                 l   rred caaplitOther      shoarryesincvoemreserve reserve glernisekraprofit              ts   equity
                    stock secur                  e
                         ities
    I. Balance at the 602,7              362,77
    end of the last 62,59              0,922.      -020,500.000,  383,329,970.  700,869,823.  727,200,820,5,591,731.29429,026,322,
    year          6.00                10                    60         54        8.24    6  1.50
            Add:
    Changes    of
    accounting
    policy
            Error
    correction ofthe
    last period
     Enterprise
     combine under
     the     same
     control
         Other
    II.  Balance  at 602,7              362,77      -2,500,      332,90      706,83       2,002, 59,719 2,062,thebeginning of 62,59              0,922.      000.00       8,397.       0,892.      772,80 ,513.2 492,32
    this year       6.00                10                    60         54        8.24    6  1.50
    III.   Increase/
    Decrease in this                                                  39,985      39,985 -30,40
    year  (Decrease                                                  ,246.5       ,246.5 8,162. 9,577,083.62
    is  listed  with                                                      0          0    88
    “-”)
     (i)     Total                                                  52,040      52,040 211,17 52,251
    comprehensive                                                    ,498.42      ,498.42  3.60 ,672.0
    income                                                                                 2
     (ii)   Owners’
    devoted    and                                                                  -30,61 -30,619,336.9,336.
    decreased                                                                         48    48
    capital
    1.Common
    shares  invested
    by shareholders
    2.     Capital
    invested    by
    holders of other
    equity
    instruments
    3.     Amount
    reckoned   into
    owners  equity
    with
    share-based
    payment
    4. Other                                                                        -93,303,661.-93,303,661.
                                                                                    48   48
    (III)     Profit                                                  -12,05      -12,05      -12,055,251.5,251.       5,251.
    distribution                                                        92         92         92
    1.  Withdrawal
    of     surplus
    reserves
    2.  Withdrawal
    of general risk
    provisions
    3.  Distribution                                                  -12,05      -12,05      -12,05
    for owners (or                                                  5,251.       5,251.       5,251.
    shareholders)                                                       92         92         92
    4. Other
    (IV)   Carrying
    forward internal
    owners’ equity
    1.     Capital
    reserves
    conversed   to
    capital   (share
    capital)
    2.     Surplus
    reserves
    conversed   to
    capital   (share
    capital)
    3.  Remedying
    loss      with
    surplus reserve
    4.Carry-over
      retained
      earningsfrom
      thedefined
      benefitplans
    5.Carry-over
    retained
    earnings from
    other
    comprehensive
    income
    6. Other
    (V) Reasonable
    reserve
    1in. tWheithdrreapwoarlt
    period
    2re.pUorstapgeerioindthe
    (VI)Others
    IV. Balance at 602,7              362,77      -2,500,      332,90      746,81       2,042, 29,311 2,072,
    the end of the 62,59              0,922.      000.00       8,397.       6,139.      758,05 ,350.3 069,40
    report period    6.00                10                    60         04        4.74    8  5.12
    
    
    Last Period
    
    In RMB
    
                                               2019 semi-annual
                               Owners’equityattributabletotheparentCompany
                        Other
                    equity instrument            Other                                 Minorit
        Item    Share     ePteurapl  Capital ILnvesesn:tecohemnpsriReaso Surplu PornovoifsiRetain      Subtot   y   owTontearls’
               capita Prefe         reserve            nable   s         ed   Other      interest
                 l   rred caaplitOther      shoarryesincvoemreserve reserve glernieskraprofit        al     s    equity
                    stocksecur                  e
                        ities
    I.  Balance  at 602,7             362,77                 332,90      679,42      1,977,       2,036,7
    the end of the 62,59              0,922.                 8,397.       9,935.      871,85 58,927, 99,378.
    last year       6.00                10                   60         81       1.51 527.37    88
            Add:
    Changes    of
    accounting
    policy
           Error
    correction   of
    the lastperiod
     Enterprise
     combine
     under    the
     same control
         Other
    II.  Balance at 602,7             362,77                 332,90      679,42      1,977,       2,036,7
    the  beginning 662.,0509           0,92120.               8,39670.     9,93851.    8711.,58155582,79.2377,99,378.
    of thisyear                                                                              88
    III.   Increase/                                                  -25,28      -25,28 -7,786, -33,069
    Decrease inthis                                                  3,190.      3,190. 312.82 ,503.64
    year  (Decrease                                                    82         82
    is  listed  with
    “-”)
     (i)     Total                                                  -25,28      -25,28
    icnocmopmreehensive                                              3,19802.     3,19802.-371,728.862,-,53033,0.6649
     (ii)  Owners’
    devoted   and
    decreased
    capital
    1.Common
    shares invested
    by shareholders
    2.     Capital
    invested    by
    holders of other
    equity
    instruments
    3.    Amount
    reckoned  into
    owners  equity
    with
    share-based
    payment
    4. Other
    (III)    Profit
    distribution
    1.  Withdrawal
    of     surplus
    reserves
    2.  Withdrawal
    of general risk
    provisions
    3.  Distribution
    for owners (or
    shareholders)
    4. Other
    (IV)  Carrying
    forward
    internal
    owners’ equity
    1.     Capital
    reserves
    conversed   to
    capital   (share
    capital)
    2.     Surplus
    reserves
    conversed   to
    capital   (share
    capital)
    3.  Remedying
    loss     with
    surplus reserve
    4.Carry-over
      retained
      earnings
      fromthe
      defined
      benefitplans
    5.Carry-over
    retained
    earnings from
    other
    comprehensive
    income
    6. Other
    (V) Reasonable
    reserve
    1in. Wtheithdrreapwoarlt
    period
    2re.pUorstapgeeriiondthe
    (VI)Others
    IV. Balance at 602,7             362,77                 332,90      654,14      1,952,       2,003,7
    the end of the 662.,0509           0,92120.               8,39670.     6,74949.    5808.,66965211,41.4515,29,875.
    report period                                                                            24
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    8. Statement of Changes in Owners’ Equity (Parent Company)
    
    This Period
    
    In RMB
    
                                                2020semi-annual
                      Otherequityinstrument
                            Perpet                     Other
        Item      Share  Preferr  ual        CpaupbiltiaclInLveesnst:orcompreh ReabsleonaSurplus Retaine  Other   owTontearls’
                 capital  ed   capital Other  reserve  yshares  ensive  reserve  reserve dprofit         equity
                       stock securiti                    income
                             es
    I. Balance at the 602,76                                                   710,33
    end of the last 2,596.00                 28093,996.730,                33329,970.680,4,373.8       1,93450,976.189,
    year                                                                     9
            Add:
    Changes     of
    accounting
    policy
            Error
    correction of the
    last period
         Other
    II. Balance atthe 602,76                                                   710,33
    beginning of this 2,596.00                 28093,996.730,                33329,970.680,4,373.8       1,935,968,
    year                                                                     9          407.19
    III.    Increase/
    Decrease in this                                                        -17,802       -17,802,69
    year (Decrease is                                                        ,694.21            4.21
    listed with“-”)
     (i)      Total                                                        -5,747,       -5,747,442
    comprehensive                                                          442.29            .29
    income
     (ii)   Owners’
    devoted    and
    decreased capital
    1.Common
    shares  invested
    by shareholders
    2.      Capital
    invested     by
    holders of other
    equity
    instruments
    3.     Amount
    reckoned   into
    owners   equity
    with share-based
    payment
    4. Other
    (III)     Profit                                                        -12,055       -12,055,25
    distribution                                                            ,251.92            1.92
    1. Withdrawal of
    surplus reserves
    2.   Distribution                                                        -12,055       -12,055,25
    for  owners (or                                                        ,251.92            1.92
    shareholders)
    3. Other
    (IV)   Carrying
    forward  internal
    owners’ equity
    1.      Capital
    reserves
    conversed    to
    capital   (share
    capital)
    2.     Surplus
    reserves
    conversed    to
    capital   (share
    capital)
    3.   Remedying
    loss with surplus
    reserve
    4.Carry-over
    retained earnings
    from thedefined
    benefit plans
    5.Carry-over
    retained earnings
    from other
    comprehensive
    income
    6. Other
    (V)  Reasonable
    reserve
    1th.eWreipthodrtrapwerailodin
    2re.poUrstapgeerioidnthe
    (VI)Others
    IV.  Balance  at 602,76
                trhepeoretnpderioofdthe 2,596.00                 28093,996.730,                33329,970.680,16,69729,5.638  1,91781,126.958,
    
    
    Last period
    
    In RMB
    
                                               2019 semi-annual
                        Other equity
                         instrument                  Other
        Item     Share Preferr Peuraplet     CpuapbiltiaclInLveesnst:orcompre Reasonab Surplus Retained   Other   owTontearls’
                capital  ed  capital Other  reserve yshares hensive lereserve reserve  profit           equity
                     stock  securit                   income
                           ies
    I. Balance atthe 602,76
    eyneadrof the last 2,59060.               2,08399,9.7603                3,33927,9.6008709,55801.6,34    1,935,28135.9,34
            Add:
    Changes    of
    accounting
    policy
            Error
    correction   of
    the lastperiod
         Other
    II.  Balance at 602,76
    tohfethisbyeegairnning2,59060.               2,08399,9.7603                3,33927,9.6008709,55801.6,34    1,935,28135.9,34
    III.   Increase/
    Decrease in this                                                      -14,246,7        -14,246,79797.24.24
    year  (Decrease
    is  listed  with
    “-”)
     (i)     Total                                                      -14,246,7        -14,246,797
    comprehensive                                                          97.24              .24
    income
     (ii)   Owners’
    devoted   and
    decreased
    capital
    1.Common
    shares  invested
    by shareholders
    2.     Capital
    invested    by
    holders of other
    equity
    instruments
    3.    Amount
    reckoned  into
    owners  equity
    with
    share-based
    payment
    4. Other
    (III)     Profit
    distribution
    1.  Withdrawal
    of     surplus
    reserves
    2.  Distribution
    for owners (or
    shareholders)
    3. Other
    (IV)  Carrying
    forward internal
    owners’ equity
    1.     Capital
    reserves
    conversed   to
    capital   (share
    capital)
    2.     Surplus
    reserves
    conversed   to
    capital   (share
    capital)
    3.  Remedying
    loss      with
    surplus reserve
    4.Carry-over
    retained
    earnings from
    the defined
    benefit plans
    5.Carry-over
    retained
    earnings from
    other
    comprehensive
    income
    6. Other
    (V) Reasonable
    reserve
    1in. Wtheithdrreapwoartl
    period
    2re.pUorstapgeeriiondthe
    (VI)Others
    IV. Balance at 602,76
                rthepeoretnpderioofdthe 2,59060.               2,08399,9.7603                3,33927,9.6008695,35334.4,50    1,920,98668.7,50
    
    
    Legal Representative: Li Xinwei
    
    General Manager: Chen Yuhui
    
    CFO: Dai Xiji
    
    Person in charge of financial dept.: Wang Yi
    
    Tabulator: Liu Yan
    
    Shenzhen Nanshan Power Co., Ltd.Notes to financial statement of Semi-Annual 2020I. Company Profile
    
    (1) Profile
    
    Shenzhen Nanshan Power Co., Ltd (hereinafter, the “Company”) was reorganized to be a joint-stock enterprise
    
    from a foreign investment enterprise on 25 November 1993, upon the approval of General Office of Shenzhen
    
    Municipal Government with Document Shen Fu Ban Fu [1993] No.897.
    
    After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office,
    
    on 3 January 1994, the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listed
    
    foreign shares in and out of China. And the RMB common shares (A-stock) and domestically listed foreign listed
    
    shares (B-stock) were listed in Shenzhen Stock Exchange successively on July 1, 1994 and Nov. 28, 1994.
    
    Headquarter of the Company located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District, Shenzhen City,
    
    Guangdong Province, P.R.C.
    
    The financial statement has approved for report by the Board on 12 August 2020.
    
    (2) Scope of consolidate financial statement
    
    Subsidiary included in the consolidate financial statement of the Company up to 30 June 2020 are as:
    
    Subsidiary
    
    Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.(“Zhongshan Electric Power”)
    
    Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.(“Engineering Company”)
    
    Shenzhen Shen Nan Dian Environment Protection Co., Ltd.(“Environment Protection Company”)
    
    Shenzhen Server Petrochemical Supplying Co., Ltd(“Shenzhen Server”)
    
    Shenzhen New Power Industrial Co., Ltd.(“New Power”)
    
    Shen Nan Energy (Singapore) Co., Ltd.(“Singapore Company”)
    
    Hong Kong Syndisome Co., Ltd.(“Syndisome ”)
    
    Zhongshan Shen Nan Dian Storage Co., Ltd.(“Shen Storage”)
    
    Scope of the consolidate financial statement and its changes found more in the VI. Change of Consolidate Scope
    
    and VII. Equity in other entity carry in the Note
    
    II. Preparation basis of Financial statement
    
    (1) Preparation basis
    
    The Company’s financial statements have been prepared based on the going concern and the actual transactions
    
    and events. In accordance with the Accounting Standards for Business Enterprises- Basic Norms and every
    
    specific accounting rules, the application guidelines of the Accounting Standards for Business Enterprises,
    
    interpretations and other related rules of the Accounting Standards for Business Enterprises (hereinafter referred to
    
    as “ASBEs”), and the disclosure requirements of the “Regulation on the Preparation of Information Disclosures of
    
    Companies Issuing Public Shares, No. 15- General Requirements for Financial Reports” of China Securities
    
    Regulatory Commission.
    
    (2)Going concern
    
    The Company is capable of going concern for 12 months from the end of the reporting period, and there are no
    
    major issues affecting the ability to go concern.
    
    III.MajorAccounting Policies and Estimation
    
    The Company together with its subsidiaries is mainly engaged in businesses as production of power and heat,
    
    power plant construction, fuel trading, engineering consulting and and sludge drying.According to the actual
    
    production and operation characteristics, the Company and its subsidiaries establish certain specific accounting
    
    policies and accounting estimates in respect of their transactions and matters such as sales revenue recognition
    
    pursuant to relevant business accounting principles. Details are set out in (16) Fixed assets and the (25) Revenue
    
    under Note III. For explanation on material accounting judgment and estimate issued by the management, please
    
    refer to (32) Major accounting judgment and estimation under Note III.
    
    (1) Statement on observation of Accounting Standard for Business Enterprises
    
    The Financial Statements are up to requirements of Accounting Standards for Business Enterprises, and reflect the
    
    financial status, operation outcomes and cash flows of the Company in reporting period in truthfulness and
    
    completeness.
    
    (2) Accounting period
    
    Accounting period of the Company divide into annual and medium-term, and the medium-term is the reporting
    
    period that shorter than one completed accounting year. The Company’s accounting year is Gregorian calendar
    
    year, namely from 1st January to 31stDecember.
    
    (3) Operating cycle
    
    The operating cycle of the Company is 12 months.
    
    (4) Book-keeping standard currency
    
    Book-keeping standard of the Company is RMB(CNY)
    
    (5) Accounting treatment on enterprise combine under the same control and under the
    
    different control
    
    Enterprise combination under the same control: The assets and liabilities obtained by the Company in enterprise
    
    combination are measured at the book value of the consolidated financial statements of the ultimate controlling
    
    party in accordance with the assets and liabilities of the combined party on the date of combination. The difference
    
    between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the
    
    combination (or the aggregate nominal value of shares issued as consideration) is charged to the share capital
    
    premium in capital reserve. If the share capital premium in capital reserve is not sufficient to absorb the difference,
    
    any excess shall be adjusted against retained earnings.
    
    Enterprise combinations not under the same control: The Company's assets paid and liabilities incurred or assumed
    
    on the date of purchase as a consideration of enterprise combination are measured at fair value, and the difference
    
    between the fair value and its book value is included in the current profit and loss. Where the cost of a business
    
    combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference
    
    is recognized as goodwill; where the cost of a business combination less than the acquirer’s interest in the fair
    
    value of the acquiree’s identifiable net assets, reckoned into current gains/losses after double-check.
    
    The intermediary fees, such as auditing, legal services, consultation and other directly relevant incurred in the
    
    merger of enterprises shall be reckon into the current gains/losses when incurred; the transaction costs of issuing
    
    equity securities for the purpose of enterprise combination should be charge-off.
    
    (6) Preparation methods for consolidated statement
    
    1.Consolidate scope
    
    Scope of the consolidate financial statement is determined on a control basis, all subsidiaries (including the part of
    
    the enterprise under control of the investee that can be divided) are included in the consolidated financial
    
    statement.
    
    2. Consolidate procedures
    
    Based on the financial statements of itself and its subsidiaries, the Company compiles the consolidated financial
    
    statements in line with other relevant information. The Company compiles consolidated financial statements,
    
    considers the entire enterprise group as an accounting entity, and reflects the overall financial position, operating
    
    results and cash flow of the enterprise group in accordance with the relevant accounting standards' recognition,
    
    measurement and presentation requirements and in accordance with unified accounting policies.
    
    The accounting policies and accounting periods adopted by all subsidiaries included in the consolidation scope of
    
    the consolidated financial statements are consistent with the Company. If the accounting policies and accounting
    
    periods adopted by the subsidiaries are inconsistent with the Company, when preparing the consolidated financial
    
    statements, make necessary adjustments according to the accounting policies and accounting periods of the
    
    Company. For a subsidiary acquired through a business combination not under the same control, its financial
    
    statements are adjusted based on the fair value of the identifiable net assets at the acquisition date. For a subsidiary
    
    acquired through a business combination under the same control, its financial statements are adjusted based on the
    
    book value of its assets and liabilities (including the goodwill formed by the ultimate controlling party's acquisition
    
    of the subsidiary) in the ultimate controlling party's financial statements.
    
    The subsidiary's owner's equity, current net profit or loss and the share of current comprehensive income belonging
    
    to minority shareholders are separately listed under the owner's equity item in the consolidated balance sheet,
    
    under the net profit item in the consolidated income statement and under the total comprehensive income item. If
    
    the current loss shared by the minority shareholders of a subsidiary exceeds the minority shareholder' share in the
    
    owner's equity of the subsidiary at the beginning of the period, the balance shall offset against the minority
    
    shareholders' equity.
    
    (1) Increase subsidiaries or businesses
    
    During the reporting period, if a subsidiary or business is added due to a business combination under the same
    
    control, adjust the opening balance of the consolidated balance sheet; incorporate the income, expenses, and profits
    
    of the subsidiary or business combination from the beginning of the current period to the end of the reporting
    
    period into the consolidated income statement; incorporate the cash flows of the subsidiary or business
    
    combination from the beginning of the current period to the end of the reporting period into the consolidated cash
    
    flow statement, and adjust the relevant items of the comparative statement as if the consolidated reporting entity
    
    had been existing since the time when the ultimate controlling party began controlling.
    
    Where it is possible to exercise control over an investee under the same control due to additional investment, all
    
    parties participating in the combination are deemed to have adjusted in their current state when the ultimate
    
    controlling party commenced control. The equity investment held before the control of the combined party is
    
    obtained, the relevant profit or loss and other comprehensive income that have been confirmed between the date of
    
    acquisition of the original equity and the date on which the combining party and the combined party are under the
    
    same control until the combining date, as well as other changes in net assets respectively write down the retained
    
    earnings at the beginning of period or the current profits and losses in the comparative statements.
    
    During the reporting period, if a subsidiary or business is added due to a business combination not under the same
    
    control, the opening balance of the consolidated balance sheet period will not be adjusted; the income, expenses,
    
    and profits of the subsidiary or business from the acquisition date to the end of the reporting period will be
    
    included in the consolidated income statement; the cash flows of the subsidiary or business from the acquisition
    
    date to the end of the reporting period are included in the consolidated statement of cash flow.
    
    For reasons such as additional investments that can control an investee not under the same control, the Company
    
    remeasures the equity of the acquiree held before the purchase date according to the fair value of the equity on the
    
    purchase date, and the balance between the fair value and its book value is included in the current investment
    
    income. If the equity of the acquiree held before the purchase date involves other comprehensive income under the
    
    equity method and other changes in owner's equity other than net profit or loss, other comprehensive income and
    
    profit distribution, other comprehensive income and other changes in owner's equity related to it shall be converted
    
    into the investment income of the current period on the date of purchase, except for other comprehensive income
    
    arising from the re-measurement of the net liabilities or changes in net assets of the defined benefit plan of the
    
    investee.
    
    (2) Disposal of subsidiaries or businesses
    
    ①General treatment method
    
    During the reporting period, when the Company disposes of a subsidiary or business, the income, expenses and
    
    profits of the subsidiary or business from the beginning of the period to the disposal date are included in the
    
    consolidated income statement, while the cash flow of the subsidiary or the business from the beginning of the
    
    period to the disposal date is included in the consolidated statement of cash flow.
    
    For control rights loss in original subsidiary for partial equity investment disposal or other reasons, the remained
    
    equity should re-measured based on the fair value at date of control losses. The difference between the net assets of
    
    original subsidiary share by proportion held that sustainable calculated since purchased date (or combination date)
    
    and sum of consideration obtained by equity disposal and fair value of remain equity, reckoned into the current
    
    investment income of control rights loss. Other comprehensive income related to the original subsidiary's equity
    
    investment or other changes in owner's equity other than net profit and loss, other comprehensive income and
    
    profit distribution will be converted to current investment income when the control is lost, except for other
    
    comprehensive income arising from the remeasurement of the net liabilities or changes in net assets of the defined
    
    benefit plan of the investee.
    
    If other investors’ capital increases in the subsidiary results in a decline in the Company's shareholding ratio and
    
    thus loss of control power, accounting shall be conducted in accordance with the above principles.
    
    ② Dispose subsidiary step-by-step
    
    When the Company disposes of equity investment in a subsidiary by a stage-up approach with several transactions
    
    until the control over the subsidiary is lost, these several transactions related to the disposal of equity investment in
    
    a subsidiary are accounted for as transactions in a basket when the terms, conditions and economic impacts of
    
    these several transactions meet the following one or more conditions:
    
    i. these transactions are entered into at the same time or after considering their impacts on each other;
    
    ii. these transactions as a whole can reach complete business results;
    
    iii the occurrence of a transaction depends on at least the occurrence of an other transaction;
    
    iv.an individual transaction is not deemed as economic, but is deemed as economic when considered with other
    
    transactions.
    
    When several transactions related to the disposal of equity investment in a subsidiary until the control over the
    
    subsidiary is lost fall within transactions in a basket, each of which is accounted for as disposal of a subsidiary
    
    with a transaction until the control over a subsidiary is lost; however, the different between the amount of disposal
    
    prior to the loss of control and the net assets of a subsidiary attributable to the disposal investment shall be
    
    recognized as other comprehensive income in consolidated financial statements and transferred to profit or loss for
    
    the period at the time when the control is lost.
    
    If the transactions that dispose of the equity investment in the subsidiary until the loss of control do not belong to
    
    the package transaction, before the loss of control, the relevant policies for partial disposal of the equity investment
    
    in the subsidiary shall be accounted for without losing control. When the control right is lost, the accounting
    
    treatment shall be carried out according to the general treatment method for disposing of the subsidiary.
    
    (3) Purchase of minority shares in subsidiaries
    
    The difference between the Company's newly acquired long-term equity investment due to the purchase of
    
    minority shares and the net assets share calculated continuously by the subsidiary from the date of purchase (or
    
    merger date) in accordance with the calculation of the newly increased shareholding ratio, adjust the equity
    
    premium in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve is
    
    insufficient to offset, adjust the retained earnings.
    
    (4) Partial disposal of equity investment in subsidiaries without losing control
    
    The difference between the disposal cost obtained as a result of partial disposal of long-term equity investment in a
    
    subsidiary without losing control and the net assets share calculated continuously by the subsidiary from the date
    
    of purchase or merger corresponding to the disposal of the long-term equity investment, adjust the equity premium
    
    in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve is insufficient
    
    to offset, adjust the retained earnings.
    
    (7) Classification of joint arrangement and accounting treatment
    
    Joint arrangement is divided into joint operation and joint venture.
    
    As a joint party of the joint arrangement, it is a joint operation when the Company enjoys assets related to the
    
    arrangement and bears the liabilities related to the arrangement.
    
    The company confirms the following items related to the share of interests in its joint operations, and in
    
    accordance with the provisions of the relevant accounting standards for accounting treatment:
    
    (1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company in
    
    appropriation to the share of the Company;
    
    (2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the
    
    Company in appropriation to the share of the Company;
    
    (3) Recognize revenue from disposal of the share of joint operations of the Company;
    
    (4) Recognize fees solely occurred by Company;
    
    (5) Recognize fees from joint operations in appropriation to the share of the Company.
    
    Accounting policy for the joint venture investment found more in (14) Long-term equity investment under Note
    
    III.
    
    (8) Determination criteria of cash and cash equivalent
    
    While preparing the cash flow statement, the stock cash and savings available for payment at any time are
    
    recognized as cash. The investments meets the follow four conditions at the same time are recognized as cash
    
    equivalent, that is short-term (normally fall due within three months from the date of acquisition) and highly liquid
    
    investments held the Group which are readily convertible into known amounts of cash and which are subject to
    
    insignificant risk of value change.
    
    (9) Foreign currency business and foreign currency statement translation
    
    1.Foreign currency business
    
    Foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convert
    
    foreign currency amounts into RMB for accounting.
    
    The balance of foreign currency monetary items at the balance sheet date is converted at the spot exchange rate on
    
    the balance sheet date, the resulting exchange difference is included in current profit and loss, except that the
    
    exchange difference arising from foreign currency special borrowings related to the acquisition or construction of
    
    assets eligible for capitalization is disposed with the principle of borrowing costs capitalization.
    
    2. Foreign currency statement translation
    
    Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; the
    
    owners' equity items are converted at the spot exchange rate at the time of occurrence, except for the "undistributed
    
    profit" item. The income and expense items in the income statement are converted at the spot exchange rate on the
    
    transaction date.
    
    When disposing of an overseas operation, the translation difference in the foreign currency financial statements
    
    related to the overseas operation is transferred from the owner's equity item to the disposal of current profit or loss.
    
    (10) Financial instrument
    
    Financial instrument consist of financial assets, financial liability and equity instrument.
    
    1.Classification of financial instrument
    
    Based on the Company's business model for managing financial assets and the contractual cash flow characteristics
    
    of financial assets, financial assets are classified as the financial assets measured at amortized cost, the financial
    
    assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income
    
    and the financial assets measured at fair value and whose changes are included in current profit and loss at initial
    
    recognition.
    
    Business model to collect the contractual cash flow, and the contractual cash flow is only the payment of the
    
    principal and the interest based on the outstanding principal amount, is classified as a financial asset measured at
    
    amortized cost; business model to collect the contractual cash flow and sell the financial asset, and the contractual
    
    cash flow is only the payment of principal and the interest based on the outstanding principal amount, is classified
    
    as a financial asset measured at fair value and whose changes are included in other comprehensive income (debt
    
    instruments); other financial assets other than these are classified as financial assets measured at fair value and
    
    whose changes are included in the current profit and loss.
    
    For a non-tradable equity instrument investment, the Company determines at the time of initial recognition
    
    whether to designate it as a financial asset (equity instrument) measured at fair value and whose changes are
    
    included in other comprehensive income. At the time of initial recognition, in order to eliminate or significantly
    
    reduce accounting mismatches, financial assets can be designated as financial assets that are measured at fair value
    
    and whose changes are included in the current profit and loss.
    
    At the time of initial recognition, financial liabilities are classified into financial liabilities that are measured at fair
    
    value and whose changes are included in the current profit and loss and financial liabilities that are measured at
    
    amortized cost.
    
    A financial liability that meets one of the following conditions can be designated as a financial liability measured
    
    at fair value and whose changes are included in current profit and loss at initial measurement:
    
    1) This designation can eliminate or significantly reduce accounting mismatches.
    
    2) In accordance with the corporate risk management or investment strategy stated in formal written documents,
    
    make management and performance evaluation to financial liability portfolios or financial assets and financial
    
    liability portfolios based on fair value, and report to the key management personnel within the enterprise based on
    
    this.
    
    3) The financial liability includes embedded derivatives that need to be split separately.
    
    2. Recognition basis and measurement method of financial instruments
    
    (1) Financial assets measured at amortized cost
    
    Financial assets measured at amortized cost include bills receivable, accounts receivable, other receivables,
    
    long-term receivables, debt investment, etc., which are initially measured at fair value, and related transaction costs
    
    are included in the initially recognized amount; accounts receivable excluding significant financing components
    
    and accounts receivable with financing components not exceeding one year that the Company decides not to
    
    consider are initially measured at the contract transaction price.
    
    The interest calculated by using the effective interest method during the holding period is included in the current
    
    profit and loss.
    
    When taking back or disposing, the difference between the cost obtained and the book value of the financial asset
    
    is included in the current profit and loss.
    
    (2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned into other
    
    comprehensive income
    
    The financial assets (debt instrument) measured at fair value and whose changes are reckoned into other
    
    comprehensive income consist of receivable financing and other debt investment and initially measured at fair
    
    value, relevant transaction fees are included in initial recognized amount. The financial assets are subsequently
    
    measured at fair value, and the fair value changes are reckoned into other comprehensive income except for the
    
    interest, impairment loss or gain and exchange gain or loss calculated by actual interest rate method.
    
    Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensive
    
    income shall be transferred out and reckoned into current profit and loss.
    
    (3) Financial assets (equity instrument) measured at fair value and whose changes are reckoned into other
    
    comprehensive income
    
    The financial assets (equity instrument) measured at fair value and whose changes are reckoned into other
    
    comprehensive income consist of the equity instrument investment etc. and initially measured at fair value,
    
    relevant transaction fees are included in initial recognized amount. The financial assets are subsequently measured
    
    at fair value, and the fair value changes are reckoned into other comprehensive income. The dividend obtained
    
    should reckoned into current gains/losses.
    
    Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensive
    
    income shall be transferred out and reckoned into retained earnings.
    
    (4) Financial assets measured at fair value and whose changes are reckoned into current gains/losses
    
    The financial assets measured at fair value and whose changes are reckoned into current gains/losses consist of
    
    trading financial assets, derivative financial assets and other non-current financial assets etc. and initially measured
    
    at fair value, relevant transaction fees are included in current gains/losses. The financial assets are subsequently
    
    measured at fair value, and the fair value changes are reckoned into current gains/losses.
    
    Upon termination of the recognition, the difference between its fair value and initial entry amount is recognized as
    
    investment income, and adjust the gains/losses from fair value changes at the same time.
    
    (5) Financial liability measured at fair value and whose changes are reckoned into current gains/losses
    
    The financial liability measured at fair value and whose changes are reckoned into current gains/losses consist of
    
    trading financial liability and derivative financial liability etc. and initially measured at fair value, relevant
    
    transaction fees are included in current gains/losses. The financial liabilities are subsequently measured at fair
    
    value, and the fair value changes are reckoned into current gains/losses.
    
    Upon termination of the recognition, the difference between its fair value and initial entry amount is recognized as
    
    investment income, and adjust the gains/losses from fair value changes at the same time.
    
    (6) Financial liability measured at amortized cost
    
    The financial liabilities measured at amortized cost consist of short-term loans, note payable, account payable,
    
    other account payable, long-term loans, bond payable and long-term account payable, and initially measured at fair
    
    value, relevant transaction fees are included in initial recognized amount.
    
    The interests calculated by effective interest rate method during the holding period is reckoned into current
    
    gains/losses.
    
    Upon termination of the recognition, the difference between consideration paid and the book value of financial
    
    liability is reckoned into current gains/losses.
    
    3. Recognition basis and measurement method for transfer of financial assets
    
    When the Company transfers financial assets, if almost all risks and rewards of ownership of financial assets have
    
    been transferred to the transferee, derecognize the financial assets; if almost all risks and rewards of ownership of
    
    financial assets have been retained, don’t derecognize the financial assets.
    
    When determining whether the transfer of financial assets meets the above conditions for the termination of
    
    recognition of financial assets, adopt the principle of substance over form. The Company distinguishes the transfer
    
    of financial assets into overall transfers and partial transfers of financial assets. If the overall transfer of financial
    
    assets meets the conditions for derecognition, the difference between the following two amounts is included in the
    
    current profit and loss:
    
    (1) The book value of the transferred financial assets;
    
    (2) The sum of the consideration received as a result of the transfer and the cumulative amount of changes in the
    
    fair value that were directly credited to the owner's equity (the transferred financial asset is an available-for-sale
    
    financial asset).
    
    If partial transfer of financial assets meets the conditions for derecognition, the entire book value of the transferred
    
    financial assets is apportioned between the derecognized parts and non-derecognized parts according to their
    
    relative fair values, and the difference between the following two amounts is included in the current profit and loss:
    
    (1) The book value of the derecognition part;
    
    (2) The sum of the consideration of the derecognition part and the amount corresponding to the derecognition part
    
    of the cumulative total of changes in fair value that were directly credited to the owner's equity (the transferred
    
    financial asset is an available-for-sale financial asset).
    
    If the transfer of financial assets does not meet the conditions for derecognition, the financial assets are
    
    continuously recognized, and the consideration received is recognized as a financial liability.
    
    4. Termination recognition of financial liability
    
    Where the current obligation of a financial liability have been discharged in whole or in part, the recognition of the
    
    financial liability or part thereof shall be terminated; If the Company entered into an agreement with its creditors to
    
    replace its existing financial liabilities with the new financial liability, and the contract terms of the new financial
    
    liabilities and the existing financial liabilities are substantially different, the existing financial liabilities shall be
    
    terminated for recognition and the new ones shall be recognized at the same time. As for substantive changes made
    
    to the contract terms (in whole or in part) of the existing financial liabilities, the existing financial liabilities (or
    
    part of it) will be terminated for recognition, and the financial liabilities after term revision will be recognized as a
    
    new financial liability.
    
    When a financial liability is derecognized in whole or in part, the difference between the book value of the
    
    financial liability derecognized and the consideration paid (including the non-cash assets transferred out or the new
    
    financial liabilities assumed) is included in the current profit and loss.
    
    If the Company repurchases part of the financial liabilities, the entire book value of the financial liabilities will be
    
    allocated on the repurchase date according to the relative fair value of the continuing recognition part and the
    
    derecognition part. The difference between the book value allocated to the derecognition part and the consideration
    
    paid (including the transferred non-cash assets or assumed new financial liabilities) is included in the current profit
    
    and loss.
    
    5. Methods for determining the fair value of financial assets and financial liabilities
    
    For financial instruments that have an active market, their fair values are determined by using quotes in the active
    
    market. For financial instruments that do not have an active market, valuation techniques are used to determine
    
    their fair values. In the valuation, the Company adopts valuation techniques that are applicable under the current
    
    circumstances and have sufficient available data and other information support, chooses the input values consistent
    
    with the characteristics of assets or liabilities considered by market participants in the transactions of related assets
    
    or liabilities, and prioritizes the relevant observable input values. The Company uses unobservable input values
    
    only if the relevant observable input values cannot be obtained or are not practicable.
    
    6. Test methods and accounting treatment methods for impairment of financial assets (excluding receivables)
    
    The Company considers all reasonable and evidence-based information, including forward-looking information,
    
    and estimates the expected credit losses of financial assets measured at amortized cost by the single or combined
    
    way and financial assets (debt instruments) measured at fair value and whose changes are included in other
    
    comprehensive income. The measurement of expected credit losses depends on whether a significant increase in
    
    credit risk has occurred since the initial recognition of a financial asset.
    
    If the credit risk of the financial instrument has increased significantly since initial recognition, the Company shall
    
    measure its loss provision at an amount equivalent to the expected credit loss throughout the life of the financial
    
    instrument. If the credit risk of the financial instrument has not increased significantly since initial recognition, the
    
    Company shall measure its loss provision at an amount equivalent to the expected credit loss of the financial
    
    instrument in the next 12 months. The increased or reversed amount of the loss provision thus formed shall be
    
    included in the current profit and loss as impairment losses or gains.
    
    Usually, the Company considers that the credit risk of the financial instrument has increased significantly when it
    
    is overdue for more than 30 days, unless there is conclusive evidence that the credit risk of the financial instrument
    
    has not increased significantly after initial recognition.
    
    If the credit risk of a financial instrument at the balance sheet date is low, the Company will consider that the credit
    
    risk of the financial instrument has not increased significantly since initial recognition.
    
    (11) Bad deb provision of account receivable
    
    Regarding account receivables, whether or not it contains a significant financing component, the Company always
    
    measures its loss provisions at an amount equivalent to the expected credit loss throughout the duration, and the
    
    resulting increase and reversed amount of loss provisions is included in the current profit and loss as impairment
    
    losses or gains.
    
    In addition to receivables that individually assess credit risk, based on their credit risk characteristics, they are
    
    divided into different portfolios:
    
    Item Accrual ratio for account receivable (%)
    
    Group 1: low-risk The portfolio is determined based on the similarity
    
    of credit risk characteristics, the Company believes
    
    Item Accrual ratio for account receivable (%)
    
    that the credit risk of a receivable that has not been
    
    impaired in a single assessment of credit risk is low,
    
    and no provision for bad debts is made unless there
    
    is evidence that the credit risk of a certain
    
    receivable is high.
    
    If there is objective evidence that a certain account receivable has suffered credit impairment, the Company shall
    
    make provision for bad debts on that account receivable and confirm the expected credit loss.
    
    (12) Inventory
    
    1. Categories of inventory
    
    Inventory consists of fuels and raw materials etc.
    
    2. Valuation method of delivered inventory
    
    The inventories are initially measured at cost. When the inventory is delivered, the actual cost of delivered
    
    inventory shall be determined by weighted average method.
    
    3.Basis for determining the net realizable value of different types of inventories
    
    On the balance sheet day, the inventory is measured by the lower one between the cost and the net realizable
    
    value. As the net realizable value is lower than the cost, the inventory depreciation provision is accrued. The
    
    net realizable value is balance of the estimated sale price less the estimated forthcoming cost upon the
    
    completion, the estimated sale expense, and the relevant tax in the daily activities. Upon the recognition of
    
    net realizable value of the inventory, the concrete evidence is based on and the purpose of holding the
    
    inventory and the influence of events after the balance sheet day are considered.
    
    As for the inventory of large sum and lower price, the inventory depreciation provision is accrued by the inventory
    
    categories. As for the inventory related to the product series produced and sold in the same district, of the same or
    
    similar final use or purpose and impossible to be separated from the other items, the provision is consolidated and
    
    accrued. The provision for other inventory is accrued by the difference between the cost and net realizable value.
    
    Upon the accrual of the inventory depreciation provision, if the previous influence factors on the inventory
    
    deduction disappeared, which resulted in the net realizable value being higher than its book value; the accrual is
    
    transferred back within the previous accrual of the provision and reckoned into the current gain/loss.
    
    4. Inventory system
    
    Perpetual inventory system required
    
    5. Amortization method of low-value consumables and packaging
    
    (1) Low-value consumables-one pass method
    
    (2) Packaging- one pass method
    
    (13) Contract assets
    
    1. Confirmation methods and standards of contract assets
    
    If the Company has transferred goods to customers and has the right to receive consideration, and the right depends
    
    on factors other than the time lapses, it is recognized as contract assets. The Company's unconditional (that is, only
    
    depending on the time lapses) right to collect consideration from customers are separately listed as receivables.
    
    2. Determination method and accounting treatment method of expected credit loss of contract assets
    
    The Company's determination method and accounting treatment method for the expected credit loss of contract
    
    assets are detailed in Note III/(11) Provision for bad debts of receivables
    
    (14) Long-term equity investment
    
    1. Criteria judgement for joint control and significant influence
    
    Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant
    
    activities of such arrangement must be decided by unanimously agreement from parties who share control. Where
    
    the Company and other joint ventures exercise joint control over the investee and enjoy the rights to the net assets
    
    of the investee, the investee is a joint venture of the Company.
    
    Significant influence is the right of the Company to participate in the financial and operation decision-making of
    
    an enterprise, but not to control or jointly control the formulation of such policies with other parties. Where the
    
    Company is able to exert significant influence on the investee, the investee shall be a joint venture of the Company.
    
    2. Determination of initial investment cost
    
    (1) Long-term equity investment resulting from enterprise combination
    
    Enterprise combination under the same control: If the Company pays cash, transfers non-cash assets or assumes
    
    debt, and issues equity securities as the consideration for the merger, the share of the book value of the owner's
    
    equity of the combined party in the consolidated financial statements of the ultimate controlling party on the
    
    combining date shall be used as the initial investment cost of long-term equity investment. If it is possible to
    
    control the investee under the same control due to additional investments, etc., the initial investment cost of
    
    long-term equity investment shall be determined based on the share of the book value of the net assets of the
    
    combined party in the consolidated financial statements of the ultimate controlling party on the merger date. The
    
    difference between the initial investment cost of the long-term equity investment on the merger date and the sum of
    
    the book value of the long-term equity investment before the merger plus the book value of the new share payment
    
    consideration obtained on the merger date adjusts the equity premium. If the equity premium is insufficient to be
    
    offset, the retained earnings shall be offset.
    
    Business combination not under the same control: The Company uses the combination cost determined on the
    
    purchase date as the initial investment cost of the long-term equity investment. If it is possible to exercise control
    
    over an investee that is not under the same control due to additional investments, etc., the sum of the book value of
    
    the original equity investment plus the newly increased investment cost is used as the initial investment cost
    
    calculated by the cost method.
    
    (2) Long-term equity investment obtained through other methods
    
    For a long-term equity investment obtained by paying cash, the actually paid purchase price is taken as the initial
    
    investment cost.
    
    For a long-term equity investment obtained by issuing equity securities, the fair value of the issued equity
    
    securities is taken as the initial investment cost.
    
    On the premise that the non-monetary asset exchange has commercial substance and that the fair value of the
    
    assets swapped in or out can be reliably measured, the initial investment cost of the long-term equity investment
    
    swapped in by non-monetary assets exchange is determined by the fair value of assets swapped out and the
    
    relevant payable taxes and fees, unless there is conclusive evidence that the fair value of the assets swapped in is
    
    more reliable; for non-monetary assets exchange that do not meet the above preconditions, the book value of the
    
    assets swapped out and the relevant taxes and fees payable are used as the initial investment cost of the long-term
    
    equity investment swapped in.
    
    For a long-term equity investment obtained through debt restructuring, its entry value is determined based on the
    
    fair value of the abandoned creditor's rights and other costs such as taxes directly attributable to the asset, and the
    
    difference between the fair value of the abandoned creditor's rights and the book value is included in the current
    
    profit and loss.
    
    3. Follow-up measurement and gain/loss recognition
    
    (1) Long-term equity investment measured at cost
    
    The long-term equity investment in subsidiaries shall be measured at cost. In addition to the actual prices or the
    
    announced but yet undistributed cash dividend or profit in consideration valuation, the current investment return is
    
    recognized by the announced cash dividend or profit by the invested units.
    
    (2) Long-term equity investment measured at equity
    
    The long-term equity investment in associated enterprise and joint ventures shall be measured at cost. If the initial
    
    investment cost is greater than than the share of fair value of the invested entity’s identifiable net assets, the initial
    
    investment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less than
    
    than the share of fair value of the invested entity’s identifiable net assets, the difference shall reckoned in current
    
    gains/losses.
    
    The investment gain and other comprehensive income shall be recognized based on the Company’s share of the net
    
    profits or losses and other comprehensive income made by the investee, respectively. Meanwhile, the carrying
    
    amount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investment
    
    shall be reduced based on the Group’s share of profit or cash dividend distributed by the investee. In respect of the
    
    other movement of net profit or loss, other comprehensive income and profit distribution of investee, the carrying
    
    value of long-term equity investment shall be adjusted and included in the owners’ equity.
    
    The Company shall recognize its share of the investee’s net profits or losses based on the fair values of the
    
    investee’s individual separately identifiable assets at the time of acquisition, after making appropriate adjustments
    
    thereto during the accounting period and according to the accounting policy of the Company. During the period of
    
    holding the investment, the investee prepares the consolidated financial statements based on the net profit, other
    
    comprehensive income, and the amount attributable to the investee in changes in other owners' equity in the
    
    consolidated financial statements for business accounting.
    
    When the Company confirms that it should share the losses incurred by the investee, it shall proceed in the
    
    following order. Firstly, write off the book value of the long-term equity investment. Secondly, if the book value of
    
    the long-term equity investment is not sufficient to offset, the investment loss shall continue to be recognized
    
    within the limit of the book value of long-term equity that substantially constitutes a net investment in the investee,
    
    and offset the book value of long-term receivables. Finally, after the above-mentioned treatment, if the enterprise
    
    still bears additional obligations as stipulated in the investment contract or agreement, the estimated liabilities are
    
    recognized according to the estimated obligations and included in the current investment loss.
    
    (3) Disposal of long-term equity investment
    
    When disposing of a long-term equity investment, the difference between its book value and the actual purchase
    
    price is included in the current profit and loss.
    
    When disposing of a long-term equity investment accounted for by using the equity method, use the same basis as
    
    the investee directly disposes of related assets or liabilities, and make accounting treatment to the portion that was
    
    originally included in other comprehensive income according to the corresponding proportion. The owner's equity
    
    recognized as a result of changes in other owner's equity of the investee other than net profit or loss, other
    
    comprehensive income, and profit distribution is carried forward to the current profit and loss on a pro rata basis,
    
    except for other comprehensive income arising from the remeasurement of the net liabilities or net assets changes
    
    of the defined benefit plan by the investee.
    
    If the joint control or significant influence on the investee is lost due to the disposal of part of the equity
    
    investment, etc., the remaining equity after disposal shall be calculated in accordance with the financial instrument
    
    recognition and measurement standards, and the difference between the fair value and the book value on the day of
    
    losing the joint control or significant influence is included in the current profit and loss. Other comprehensive
    
    income of the original equity investment recognized due to using the equity method for accounting shall adopt the
    
    accounting treatment on the same basis as the investee directly disposes of related assets or liabilities when
    
    terminating the adoption of equity method for accounting. The owner's equity recognized as a result of changes in
    
    the owner's equity other than net profit or loss, other comprehensive income and profit distribution of the investee
    
    is transferred to current profit and loss when terminating the adoption of equity method for accounting.
    
    The control over the investee is lost due to the disposal of part of the equity investment and the capital increase in
    
    the subsidiary by other investors resulting in a decline in the shareholding ratio of the Company, in preparing
    
    separate financial statements, the remaining equity interest which can apply common control or impose significant
    
    influence over the investee shall be accounted for using equity method. Such remaining equity interest shall be
    
    treated as accounting for using equity method since it is obtained and adjustment was made accordingly. For
    
    remaining equity interest which cannot apply common control or impose significant influence over the investeel, it
    
    shall be accounted for using the recognition and measurement standard of financial instruments. The difference
    
    between its fair value and carrying amount as at the date of losing control shall be included in profit or loss for the
    
    current period.
    
    The disposed equity is obtained through business combination due to additional investment and other reasons,
    
    when preparing individual financial statements, if the remaining equity after disposal uses cost method or equity
    
    method for accounting, the equity investments held before the acquisition date shall be carried forward in
    
    proportion to other comprehensive income and other owner's equity recognized through equity method accounting;
    
    For the remaining equity interest after disposal accounted for using the recognition and measurement standard of
    
    financial instruments, other comprehensive income and other owners’ equity shall be fully transferred.
    
    (15) Investment real estate
    
    Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,
    
    including the rented land use rights and the land use rights which are held and prepared for transfer after
    
    appreciation, the rented buildings. (Including buildings for lease after self-construction or development activities
    
    completed and buildings under construction or development for lease in the future)
    
    Investment real estate of the Company are measured at cost model. The Investment real estate- rental buildings
    
    measured at cost model has the same depreciation policy as fixed assets, the land use right for lease is exercise the
    
    amortization policy as intangible assets.
    
    (16) Fixed assets
    
    1. Recognition conditions for the fixed assets
    
    Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services,
    
    lease or for operation & management, and have more than one fiscal year of service life. Fixed assets are
    
    recognized when the following conditions are simultaneously met:
    
    (1) The economic benefits with the fixed assets concerned are likely to flow into the enterprise; and
    
    (2) cost of the fixed assets can be measured reliably.
    
    2. Depreciation method
    
    From the next month since reaching the intended use state, depreciation on fixed assets shall be accounted by using
    
    the method of average life length except the steam turbine generating unit that accounted by withdrawal the
    
    working volume method.
    
    Life expectancy, expected net impairment value and annual depreciation rate of all assets are as follows:
    
               Category     Depreciation  Depreciation life(Year)  Residualsrate(%)  Annualdepreciation rate(%)
       method
                  Houses and        Straight-line  20-year                       10                   4.5
                  buildings
                  Equipment (fuel    Straight-line  15-20-year                    10                  4.5-6
                  machinery sets
               Category     Depreciation  Depreciation life(Year)  Residualsrate(%)  Annualdepreciation rate(%)
       method
                  excluded)
                  Equipment-fuel     Thework
                  machinery        quantity                                 10    Theworkquantitymethod
                  sets(Note)         method
                  Transportation      Straight-line  5-year                       10                   18
                  tools
                  Other equipment    Straight-line  5-year                       10                   18
    
    
    Estimated salvage value refers to the amount of value retrieved after deducting of predicted disposal expense when
    
    the expected using life of a fixed asset has expired and in the expected state of termination.
    
    Note: gas turbine generator set is provided with depreciation under workload method, namely to determine the
    
    depreciation amount per hour of gas turbine generator set based on equipment value, predicted net remaining value
    
    and predicted generation hours. Details are set out as follows:
    
                         Name oftheCompany              Fixedassets          Depreciation amount(RMB/Hour)
          Generatingunit1#                          538.33
                               TheCompany                                                              601.20
          Generatingunit3#
                               NewPower                         Generatingunit10#                          520.61
          Generatingunit1#                         4,246.00
                               ZhongshanElectricPower                                                     4,160.83
          Generatingunit3#
    
    
    3. Recognition basis and measurement method of fixed assets under finance lease
    
    Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
    
    rewards of ownership to the lessee. Title may or may not eventually be transferred. The depreciation policy for
    
    fixed asset held under finance lease is consistent with that for its owned fixed asset. When a leased asset can be
    
    reasonably determined that its ownership will be transferred at the end of the lease term, it is depreciated over the
    
    period of expected use; otherwise, the leased asset is depreciated over the shorter period of the lease term and the
    
    period of expected use.
    
    4. Other explanation
    
    Concerning the follow-up expenses related to fixed assets, if the relevant economy benefit of fixed assets probably
    
    in-flow into the Company and can be measured reliably, reckoned into cost of fixed assets and terminated the
    
    recognition of the book value of the parts that been replaced. Others follow-up expenses should reckoned into
    
    current gains/losses while occurred.
    
    Terminated the recognition of fixed assets that in the status of disposal or pass through the predicted usage or
    
    without any economy benefits arising from disposal. Income from treatment of fixed asset disposing, transferring,
    
    discarding or damage, the balance after deducting of book value and relative taxes is recorded into current income
    
    account.
    
    The Company re-reviews useful life, expected net residual value and depreciation method of fixed assets at least at
    
    each year end. Any change thereof would be recorded as change of accounting estimates.
    
    (17) Construction in process
    
    Cost of construction in process is determined at practical construction expenditures, including all expenses during
    
    the construction, capitalized loan expenses before the construction reaches useful status, and other relative
    
    expenses. It is transferred to fixed asset as soon as the construction reaches the useful status.
    
    (18) Borrowing expenses
    
    Borrowing expenses include interest, amortization of discounts or premiums related to borrowings, ancillary costs
    
    incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign
    
    currency borrowings. Borrowing expenses that can be directly attributed for purchasing or construction of assets
    
    that are complying with capitalizing conditions start to be capitalized when the payment of asset and borrowing
    
    expenses have already occurred, and the purchasing or production activities in purpose of make the asset usable
    
    have started; Capitalizing will be terminated as soon as the asset that complying with capitalizing conditions has
    
    reached its usable or saleable status. The other borrowing expenses are recognized as expenses when occurred.
    
    Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of
    
    the bank saving interest of unused borrowed fund or provisional investment gains; Capitalization amounts of
    
    common borrowings are decided by the weighted average of exceeding part of accumulated asset expenses over
    
    the special borrowing assets multiply the capitalizing rate of common borrowings adopted. Capitalization rates are
    
    decided by the weighted average of common borrowings.
    
    During the capitalization period, exchange differences on a specific purpose borrowing denominated in foreign
    
    currency shall be capitalized. Exchange differences related to general-purpose borrowings denominated in foreign
    
    currency shall be included in profit or loss for the current period.
    
    Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial
    
    period of time for acquisition, construction or production to get ready for their intended use or sale.
    
    Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or
    
    production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more
    
    than 3 months, until the acquisition, construction or production of the qualifying asset is resumed.
    
    (19) Intangible assets
    
    An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
    
    Company.
    
    An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall be
    
    recognized as cost of the intangible asset only if it is probable that economic benefits associated with the asset will
    
    flow to the Company and the cost of the asset can be measured reliably. Other expenditures on an item asset shall
    
    be charged to profit or loss when incurred.
    
    Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants),
    
    related land use right and the buildings shall be separately accounted for as an intangible asset and fixed asset. For
    
    buildings and structures purchased, the purchase consideration shall be allocated among the land use right and the
    
    buildings on a reasonable basis. In case there is difficulty in making a reasonable allocation, the consideration shall
    
    be recognized in full as fixed assets.
    
    An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any
    
    accumulated impairment loss provision and amortized using the straight-line method over its useful life when the
    
    asset is available for use. Intangible assets with indefinite life are not amortized.
    
    The Group shall review the useful life of intangible asset with a finite useful life and the amortization method
    
    applied at least at each financial year-end. A change in the useful life or amortization method used shall be
    
    accounted for as a change in accounting estimate. For an intangible asset with an indefinite useful life, the Group
    
    shall review the useful life of the asset in each accounting period. If there is evidence indicating that the useful life
    
    of that intangible asset is finite, the Company shall estimate the useful life of that asset and apply the accounting
    
    policies accordingly.
    
    (20) Impairment of long-term assets
    
    The Group will judge if there is any indication of impairment as at the balance sheet date in respect of non-current
    
    non-financial assets such as fixed assets, construction in process, intangible assets with an infinite useful life,
    
    investment properties measured at cost, and long-term equity investments in subsidiaries, joint ventures and
    
    associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall be estimated
    
    for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets beyond working
    
    conditions will be tested for impairment annually, regardless of whether there is any indication of impairment.
    
    If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the
    
    impairment provision will be made according to the difference and recognized as an impairment loss. The
    
    recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the
    
    future cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an
    
    arm’s length transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall be
    
    determined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall
    
    be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset,
    
    including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the asset
    
    for its intended sale. The present value of the future cash flows expected to be derived from the asset over the
    
    course of continued use and final disposal is determined as the amount discounted using an appropriately selected
    
    discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it is not
    
    possible to estimate the recoverable amount of the individual asset, the Group shall determine the recoverable
    
    amount of the asset group to which the asset belongs. The asset group is the smallest group of assets capable of
    
    generating cash flows independently.
    
    For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial
    
    statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
    
    combination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairment
    
    loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
    
    group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the
    
    asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.
    
    Once an impairment loss of these assets is recognized, it is not allowed to be reversed even if the value can be
    
    recovered in subsequent period.
    
    (21) Long-term unamortized expenses
    
    Long-term unamortized expenses are those already occurred and amortizable to the current term and successive
    
    terms for over one year. Long-term amortizable expenses are amortized by straight-line method to the benefit
    
    period.
    
    (22)Contract liabilities
    
    1. Confirmation method of contract liabilities
    
    The Company's obligation to transfer goods or provide services to customers for consideration received or
    
    receivable from customers is listed as contract liabilities.
    
    (23) Staff remuneration
    
    Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit and other long term
    
    staff benefits, among which:
    
    Short term staff remuneration mainly consists of salary, bonus, allowance and subsidy, staff benefits, medical
    
    insurance, maternity insurance, work related injury insurance, housing funds, labor unit fee and education fee,
    
    non-monetary benefits, etc. short term staff remuneration actually happened during the accounting period in which
    
    staff provides services to the Company is recognized as liability, and shall be included in current gains and losses
    
    or relevant asset cost. Non-monetary benefits are measured at fair value.
    
    Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdraw plan
    
    mainly includes basic pension insurance, unemployment insurance and annuity, and the contribution payable is
    
    included in relevant asset cost or current gains and losses when occurs.
    
    When the Company terminates the employment relationship with employees before the end of the employment
    
    contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
    
    Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
    
    included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
    
    dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
    
    recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
    
    earlier. However, if the compensation for termination of employment is not expected to be fully paid within 12
    
    months from the reporting period, it shall be accounted for other long-term staff remuneration.
    
    The early retirement plan shall be accounted for in accordance with the accounting principles for compensation for
    
    termination of employment. The salaries or wages and the social contributions to be paid for the employees who
    
    retire before schedule from the date on which the employees stop rendering services to the scheduled retirement
    
    date, shall be recognized (as compensation for termination of employment) in the current profit or loss by the
    
    Group if the recognition principles for provisions are satisfied.
    
    For other long-term employee benefits provided by the Company to its employees, if satisfy with the established
    
    withdraw plan, then the benefits are accounted for under the established withdraw plan, otherwise accounted for
    
    under defined benefit scheme.
    
    (24) Accrual liability
    
    1. Recognition criteria
    
    The obligations with contingencies concerned as litigation, debt guarantee and contract in loss are recognized as
    
    accrual liability when the following conditions are met simultaneously:
    
    (1) the liability is the current liability that undertaken by the Company;
    
    (2) the liability has the probability of result in financial benefit outflow; and
    
    (3) the responsibility can be measured reliably for its value.
    
    Measurement on vary accrual liability
    
    At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that connected to the
    
    contingent issues, the predicted liabilities are measured according to the best estimation on the payment to fulfill
    
    the current responsibility.
    
    If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the
    
    compensated amount can be definitely received, it is recognized separated as asset. The compensated amount shall
    
    not be greater than the book value of the predictive liability.
    
    (1) Contact in loss
    
    Contact in loss is identified when the inevitable cost for performance of the contractual obligation exceeds the
    
    inflow of expected economic benefits. When a contract in loss is identified and the obligations there under are
    
    qualified by the aforesaid recognition criterion for contingent liability, the difference of estimated loss under
    
    contract over the recognized impairment loss (if any) of the subject matter of the contract is recognized as
    
    contingent liability.
    
    (2) Restructuring obligations
    
    For detailed, official and publicly announced restructuring plan, the direct expenses attributable to the restructuring
    
    are recognized as contingent liabilities, provided that the aforesaid recognition criterion for contingent liability is
    
    met. For restructuring obligations arising from disposal of part business, the Company will recognize the
    
    obligations relating to restructuring only when it undertakes to dispose part business (namely entering into
    
    finalized disposal agreement).
    
    (25) Revenue
    
    The Company’s revenue is recognized after it has fulfilled the performance obligations in the contract, that is,
    
    when the customer obtains control of the relevant assets (goods or services). Whether the performance obligation is
    
    fulfilled within a certain period of time or at a certain time point depends on the terms of the contract and relevant
    
    legal provisions. If the Company meets one of the following conditions, it belongs to the performance obligation
    
    within a certain period of time:
    
    1. The customer obtains and consumes the economic benefits brought by the Company's performance when the
    
    Company fulfills its performance.
    
    2. The client can control the assets under construction during the performance of the Company.
    
    3. The assets produced by the Company during the performance have irreplaceable uses, and the Company has the
    
    right to collect payment for the cumulative performance that has been completed so far during the entire contract
    
    period.
    
    If the performance obligation is performed within a certain period of time, the Company recognizes revenue
    
    according to the performance progress. Otherwise, the Company recognizes revenue at a certain point when the
    
    customer obtains control of the relevant assets. The performance progress is measured by the Company's
    
    expenditure or investment in fulfilling the performance obligations, and the progress is determined based on the
    
    proportion of the cumulative cost incurred as of the balance sheet date of each contract to the estimated total cost.
    
    When determining the contract transaction price, if there is a variable consideration, the Company shall determine
    
    the best estimate of the variable consideration based on the expected value or the most likely amount, and the
    
    amount that does not exceed the cumulatively recognized revenue when the relevant uncertainty is eliminated and
    
    that is very likely not to have significant reversal is included in the transaction price. If there is a major financing
    
    component in the contract, the Company will adjust the transaction price according to the financing component in
    
    the contract; if the interval between the transfer of control and the payment by the customer is less than one year,
    
    the Company will not consider the financing component.
    
    Detail recognition according to specific revenue:
    
    1. Power marketing revenue
    
    The Group generates electricity by thermal power, and realizes sales through incorporation into Guangdong power
    
    grid. As for power sales, the Group realizes revenue when it produces electricity and obtains the grid power
    
    statistics table confirmed by the power bureau.
    
    2. Specific criteria for revenue recognition of the Environment Protection Company
    
    At the end of each month, the company confirms the monthly income based on the initially confirmed sludge
    
    transportation volume and sludge treatment price, and revises the revenue confirmed last month after checking
    
    with the relevant units in the next month, and the correction proportion is relatively small.
    
    3. Specific criteria for revenue recognition of the Engineering Company
    
    (1)Debugging projects: When the debugging is successful, obtain the confirmation of successful debugging, and
    
    confirm the income according to the contract;
    
    (2) Operation and maintenance and management projects: Temporarily estimate and confirm the income every
    
    month according to the attendance time and labor service price of attendance staff, and adjust the temporarily
    
    estimated income after obtaining the monthly settlement statement sealed and signed by suppliers, the confirmation
    
    of progress, and the attendance form.
    
    (26)Contract costs
    
    Contract costs are divided into contract performance costs and contract acquisition costs.
    
    The cost incurred by the Company to perform the contract is recognized as an asset as the contract performance
    
    cost when meeting the following conditions:
    
    1. The cost is directly related to a current or expected contract.
    
    2. The cost increases the Company's future resources for fulfilling contract performance obligations.
    
    3. The cost is expected to be recovered.
    
    The incremental cost incurred by the Company for obtaining the contract is expected to be recovered, and it is
    
    recognized as an asset as the cost of obtaining the contract.
    
    Assets related to contract costs are amortized on the same basis as the revenue of goods or services related to the
    
    asset; however, if the amortization period of contract acquisition costs does not exceed one year, the Company will
    
    include them in the current profits and losses when they occur.
    
    If the book value of assets related to contract costs is higher than the difference between the following two items,
    
    the Company will make provisions for impairment for the excess part and recognize it as an asset impairment loss:
    
    1. The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;
    
    2. Costs estimated to incur for the transfer of the related goods or services.
    
    If the aforementioned asset impairment provision is subsequently reversed, the book value of the asset after
    
    reversal shall not exceed the book value of the asset on the date of reversal under the assumption that no
    
    impairment provision is made.
    
    (27) Government subsidy
    
    Government subsidy refers to the monetary asset and non-monetary asset that the Company obtains from the
    
    government free of charge, excluding the capital that the government invests as an investor and enjoys the
    
    corresponding owner's equity. Government subsidies are divided into the asset-related government subsidy and the
    
    income-related government subsidy.
    
    If the government subsidy is a monetary asset, it shall be measured according to the received or receivable amount.
    
    If the government subsidy is a non-monetary asset, it shall be measured at fair value. If the fair value cannot be
    
    obtained reliably, it shall be measured according to the nominal amount. Government subsidy measured by
    
    nominal amount is directly included in the current profits and losses.
    
    The government subsidy related to the assets is recognized as deferred income and is recorded into the current
    
    profits and losses or the book value of the relevant assets in a reasonable and systematic manner within the useful
    
    life of the relevant assets. Revenue-related government grants are used to compensate for the related costs or losses
    
    incurred during the subsequent period and are recognized as deferred income and are recognized in the current
    
    profit or loss or related expenses during the period of recognition of the relevant cost expense or loss; Incurred
    
    costs or losses incurred, directly included in the current profits and losses or offset the relevant costs.
    
    For the government subsidy containing both asset-related parts and income-related parts at the same time,
    
    distinguish the different parts and make the accounting treatment, classify the parts which are difficult to be
    
    distinguished as the income-related government subsidy.
    
    The government subsidy related to the Company’s daily activities is included in other incomes or offsets related
    
    costs in accordance with the essence of economic business; while the government subsidy unrelated to the
    
    Company’s daily activities is included in non-operating income and expenditure.
    
    When the recognized government subsidy needs to be refunded or has balance of related deferred income, offset
    
    the book balance of related deferred income, and include the excess parts in the current profits and losses or (the
    
    asset-related government subsidy for offsetting the book value of underlying assets in initial recognition) adjust the
    
    book value of assets; directly include these belong to other situations in the current profits and losses.
    
    (28) Deferred income tax asset/ deferred income tax liability
    
    1. Current income tax
    
    On balance sheet date, current income tax liability (or asset) formed during and before current period will be
    
    measured as amount of income tax payable (or repayable) as specified by tax law. The taxable income for
    
    calculating the current income tax expenses is based on the pre-tax accounting profit of the current year after
    
    adjustment according to relevant regulations of taxation.
    
    2. Deferred income tax asset & deferred income tax liability
    
    For balance of book value of some asset/liability item and its tax base, or temporary difference derived from
    
    balance of book value and tax base of the item, which is not confirmed as asset or liability but tax base can be
    
    fixed as specified by tax law, deferred income tax asset & deferred income tax liability will be confirmed in
    
    balance sheet liability approach.
    
    Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initial
    
    recognition of goodwill; and the initial recognition of an asset or liability in a transaction which is neither a
    
    business combination nor affects accounting profit or taxable profit (or deductible loss) at the time of the
    
    transaction. In addition, the Group recognizes the corresponding deferred income tax liability for taxable
    
    temporary differences associated with investments in subsidiaries, associates and joint ventures, except when both
    
    of the following conditions are satisfied: the Company able to control the timing of the reversal of the temporary
    
    difference; and it is probable that the temporary difference will not reverse in the foreseeable future.
    
    Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognition
    
    of an asset or liability in a transaction which is neither a business combination nor affects accounting profit or
    
    taxable profit (or deductible loss) at the time of the transaction. In addition, the Group recognizes the
    
    corresponding deferred income tax asset for deductible temporary differences associated with investments in
    
    subsidiaries, associates and joint ventures to the extent that it is probable that taxable profits will be available
    
    against which the deductible temporary differences can be utilized, except when both of the following conditions
    
    are satisfied: it is not probable that the temporary difference will reverse in the foreseeable future; and it is not
    
    probable that taxable profits will be available in the future, against which the temporary difference can be utilized.
    
    For deductible loss and taxation decrease which can be carried over to following fiscal year, relevant deferred
    
    income tax asset may be confirmed subject to amount of taxable income which is likely to be acquired to deduct
    
    deductible loss and taxation decrease in the future.
    
    On balance sheet day, those deferred income tax assets and income tax liabilities, according to the tax law,
    
    calculation will be on tax rate applicable to retrieving period of assets or clearing of liabilities.
    
    On balance sheet day, verification will be performed on the book value of differed income tax assets. If it is not
    
    possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the book
    
    value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible,
    
    the reduced amount shall be restored.
    
    3. Income tax expenses
    
    Income tax expense includes current income tax and deferred income tax.
    
    Current deferred income tax and deferred income tax expenses or income shall reckoned into current gains/losses
    
    other that those current income tax and deferred income tax with transactions and events concerned, that reckoned
    
    into shareholder’s equity directly while recognized as other comprehensive income; and the book value of the
    
    goodwill adjusted for deferred income tax arising from enterprise combination.
    
    4. Offset of income tax
    
    When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the
    
    assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented
    
    on a net basis.
    
    When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets
    
    and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable
    
    entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to
    
    realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax
    
    assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and
    
    presented on a net basis.
    
    (29) Leasing
    
    Finance lease is to virtually transfer all risks and rewards related to ownership of asset, the ownership is may
    
    transfer ultimately or not. Leases other than finance lease are operating leases.
    
    1.Lease business with the Company as the rentee
    
    The rental is reckoned into the relevant assets cost or the current loss/gain in the straight-line method. The initial
    
    direct expenses are reckoned into the current gain/loss, or the actual rental into the current loss/gain.
    
    2.Lease business with the Company as the renter
    
    The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct
    
    substantive expenses are capitalized and reckoned into the current gain/loss, or the actual rental into the current
    
    loss/gain. The initial direct small expenses are reckoned into the current actual gain/loss, or the actual rental into
    
    the current loss/gain.
    
    3. Financing lease business with the Group recorded as lessee
    
    On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of the
    
    leased asset and the present value of minimum lease payment at the beginning date of the lease. Minimum lease
    
    payment shall be the entry value of long-term accounts payable, with difference recognized as unrecognized
    
    financing expenses. In addition, initial direct costs attributable to leased items incurred during the process of lease
    
    negotiation and signing of lease agreement shall be included in the value of leased assets. The balance of minimum
    
    lease payment after deducting unrecognized financing expenses shall be accounted for long-term liability and
    
    long-term liability due within one year.
    
    Unrecognized financing expenses shall be recognized as financing expenses for the current period using effective
    
    interest method during the leasing period. Contingent rent shall be included in profit or loss for the current period
    
    at the time it incurred.
    
    4.Financing lease business with the Group recorded as lessor
    
    On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum lease
    
    receivable and initial direct costs at the beginning date of the lease. The unsecured balance shall be recorded. The
    
    aggregate of minimum lease receivable, initial direct costs and unsecured balance and the different between their
    
    present value shall be recognized as unrealized financing income. The balance of lease receivable after deducting
    
    unrecognized financing income shall be accounted for long-term debt and long-term debt due within one year.
    
    Unrecognized financing income shall be recognized as financing income for the current period using effective
    
    interest method during the leasing period. Contingent rent shall be included in profit or loss for the current period
    
    (30) Other major accounting policies and estimations
    
    The discontinued operation refers to the component that meets one of following conditions and has been disposed
    
    by the Company or classified as held-for-sale and can be individually distinguished when operating and preparing
    
    the financial statements: 1- the component represents an independent main Business or a major operating area; 2-
    
    the component is a parts that intends to dispose or arrange an independent main business or a major operating area;
    
    3- the component is a subsidiary obtained only for re-sale.
    
    (31) Changes of major accounting policy and accounting estimation
    
    1. Change of major accounting policies
    
    The Accounting Standards for Business Enterprises No. 14 - Revenue was revised by Ministry of Finance in 2017.
    
    In accordance with the Revised Standard, the cumulative impact of the first implementation of the standard is
    
    adjusted for the amount of retained earnings and other related items in the financial statements at the beginning of
    
    the first implementation period (January 1, 2020), and no adjustment is made to the comparable period information.
    
    Main influence while exercising the above provision are as:
    
                               Content/causesforthechangesof               Approvalprocedures
                         accounting policies                                                Note
                                  STthaendCaordmspfaonryBiumspinleesmseEntnetderpthreiseAsccNoou.n1ti4ng-                 No
                                  R20e1ve7nsuinecere1viJsaend.2b0y20Ministryof Finance inDeliberatedandapprovedby6thsessionof8thBOD   siingfnluifeicnacnet
    
    
    2. Change of accounting estimation
    
    No change of accounting estimation occurred in the reporting period
    
    (32)Major accounting judgment and estimation
    
    When using the accounting policies, the Company needs to made judgment, estimation and assumption for
    
    carrying value of certain items which cannot be measured adequately due to inherent uncertainty of economic
    
    activities. Such judgment, estimation and assumption are based on historical experiences of the Group’s
    
    management, together with consideration of other relevant factors. These judgments, estimations and assumption
    
    would affect the reported amount of income, expense, asset and liability and disclosure of contingent liabilities on
    
    balance sheet date. However, actual results resulting from the uncertainty of these estimates may differ from the
    
    current estimation made by management of the Company, which would in turn lead to material adjustments to the
    
    carrying value of assets or liabilities which will be affected in future.
    
    The Group conducts regular re-review on the aforesaid judgment, estimation and assumption on a continued
    operation basis. If the change of accounting estimation only affect current period, the affected amount is
    recognized in the period when change occurs. If the change affects current and future periods both, the affected
    amountisrecognized intheperiodwhenchangeoccursandfutureperiods.
    
    
    On balance sheet date, major aspects in the statement need to judge, estimate and consumption by the Company
    
    are as:
    
    1.Fixedassetsareprovidedfordepreciation byoutputmethod
    The Grouprecognizes depreciation forunitelectricity based onvaluesofpowergeneration machine sets,projected
    power sales volume and projected net remaining value, and provides for depreciation according todepreciation of
    unit electricity and actual power sales volume. Takinginto account the prevailing industry policies, technologies,
    consumption, allocation method of power management authorities and past experiences, and the Group
    management believes that itisadequateforutilization lifeofsuchpowergeneration machine sets,projected power
    salesvolume, projected netremaining value andprovision methodfordepreciation. Ifthefuture actualpowersales
    volume differs substantially from the projected one, the Group would make adjustment to unit electricity
    depreciation, whichwouldbring affectstothedepreciation expenses included inprofitand lossfor thecurrent and
    futureperiods.
    
    
    2.Provision for bad debts
    
    The Group use allowance method to state bad debt losses according to the accounting policies of accounts
    
    receivable. Impairment of receivables is based on the assessment of the collectibility of accounts receivable.
    
    Identification of impairment of receivables requires management judgments and estimates. The differences
    
    between actual results and the original estimate will affect the book value of accounts receivable as well as the
    
    recognition or reversal of provision for bad debts in the period in which the estimate is changed.
    
    3.Allowance for inventories
    
    Under the accounting policies of inventories and by measuring at the lower of cost and net realizable value, the
    
    Group makes allowance for inventories that have costs higher than net realizable value or become obsolete and
    
    slow moving. Write-down of inventories to their net realizable values is based on the salability of the evaluated
    
    inventory and their net realizable values. Identification of inventories requires management to make judgments and
    
    estimates on the basis of obtaining conclusive evidence, and considering the purpose of holding inventory and the
    
    events after balance sheet date. The differences between actual results and the original estimate will affect the book
    
    value of inventories as well as the recognition or reversal of provision for inventories in the period in which the
    
    estimate is changed.
    
    4. Impairment provision for long-term assets
    
    The Company makes judgment on each balance sheet date on whether there is indication of impairment in respect
    
    of non-current assets other than financial assets. Intangible assets with indefinite useful life shall also be further
    
    tested for impairment when there is indication of impairment, in addition to the annual impairment test. Other
    
    non-current assets other than financial assets would be test for impairment when there is indication showing its
    
    carrying value in not likely to be recovered.
    
    Impairment exists when carrying value of asset or assets group is higher than recoverable amount, namely the
    
    higher of fair value less disposal cost and present value of expected future cash flow.
    
    The calculation of the fair value less costs of disposal is based on available data from binding sales transactions in
    
    an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of the
    
    asset.
    
    In assessing value in use, significant judgments are exercised over the asset’s production, selling price, related
    
    operating expenses and discount rate to calculate the present value. All relevant materials which can be obtained
    
    are used for estimation of the recoverable amount, including the estimation of the production, selling price and
    
    related operating expenses based on reasonable and supportable assumptions.
    
    The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the
    
    value in use of the cash-generating units to which the goodwill is allocated. Estimating the value in use requires the
    
    Group to make an estimate of the expected future cash flows from the cash-generating units and also to choose a
    
    suitable discount rate in order to calculate the present value of those cash flows.
    
    5. Depreciation and amortization
    
    Assets such as investment real estate and intangible assets are depreciated and amortized over their useful lives
    
    under straight line method after taking into account residual value. The estimated useful lives of the assets are
    
    regularly reviewed to determine the depreciation and amortization costs charged in each reporting period. The
    
    useful lives of the assets are determined based on historical experience of similar assets and the estimated technical
    
    changes. If there have been significant changes in the factors used to determine the depreciation or amortization,
    
    the rate of depreciation or amortization is revised prospectively.
    
    6. Deferred income tax assets
    
    Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will
    
    be available against which the losses can be utilized. Significant management judgment is required to determine
    
    the amount of deferred income tax assets that can be recognized, based upon the likely timing and level of future
    
    taxable profits together with future tax planning strategies.
    
    7. Accrual liability
    
    Provision for product quality guarantee, estimated onerous contracts, and delay delivery penalties shall be
    
    recognized in terms of contract, current knowledge and historical experience. If the contingent event has formed a
    
    practical obligation which probably results in outflow of economic benefits from the Group, a projected liability
    
    shall be recognized on the basis of the best estimate of the expenditures to settle relevant practical obligation.
    
    Recognition and measurement of the accrual liability significantly rely on the management’s judgments
    
    inconsideration of the assessment of relevant risks, uncertainties, time value of money and other factors related to
    
    the contingent events.
    
    In addition, the Company would accrual liability for after-sale quality maintenance commitment provided to
    
    customers in respect of goods sold, maintained and reconstructed by the Company. Recent maintenance experience
    
    of the Company has been considered when projecting liabilities, while the recent maintenance experience may not
    
    reflect the future maintenance. Any increase or decrease of this provision may affect profit or loss for future years.
    
    IV. Taxes
    
    (1) Main taxation and rates
    
                 Taxation items                    Taxationbasis                   Taxrate
      Calculate the output tax based on the sales of goods and  6%,9%,10%,
      taxable service income calculated according to the tax
                    VAT               law,afterdeducting theinput taxallowable fordeduction  11%,13%,
      in thecurrentperiod,thedifferenceistheVATpayable.    16%
                 Taxation items                    Taxationbasis                   Taxrate
                    Citymaintenance tax    According  to  the  actual  payment  of  VAT and  5%,7%
      consumption tax
                    Educationsurtax       According  to  the  actual  payment  of  VAT and  3%
      consumption tax
                    Localeducationsurtax   According  to  the  actual  payment  of  VAT and  2%
      consumption tax
                    Enterpriseincometax    Accordingtothetaxableincomeamount             16.5%,17%,
                                              25%, 15%
    
    
    2 Yuan ~ 8Yuan per square meter of the actual occupied are for the industrial
    
    Land-use tax of town land located in Nanshan District, Shenzhen City; 1Yuan per square meter of
    
    the actual occupied are for the industrial land located in Zhongshan City
    
    Tax by the Value-added amount from transferring state-owned land use right,
    
    Land VAT landing construction and its affiliates with four super-rate progressive tax
    
    rate
    
    As for the taxpaying bodies have different enterprise income tax rate, explanation as:
    
    Taxpaying body Rate of income tax
    
    The Company 25%
    
    New Power Company 25%
    
    Engineering Company 25%
    
    Shenzhen Server 25%
    
    Environment Protection Company 15%
    
    Zhongshan Electric Power 25%
    
    Singapore Company 17%
    
    Shen Storage 25%
    
    Syndisome 16.5%
    
    (2) Taxes preferential
    
    1. VAT
    
       Ta   Nameofthe    Relevantregulationand    Approval     Approval    Exemption   Periodof
      x     company        policiesbasis        institution     documents     range      validity
                 Notice on "contents of  Shenzhen                Resource
                 products         with   Provincial               comprehen
       VA   Environment   comprehensive utilization   Office, SAT  SQSST[2018]  sive       31   Aug.
       T     Protection    ovfalue-adredseodurtcaexsprivilaengde(Qianhai     No.:18302    utilization   J2u0l1y820to2231
       Company    of labor service" (CS No.   SAT)                  of    VAT
                 [2015]78)                                   refund
    
    
    A2.ccIonrcdoinmgetotathxe announcement (No. 60 of 2019) of the Ministry of Finance, the State Administration of Taxation,
    
    the National Development and Reform Commission, and the Ministry of Ecological Environment, and the
    
    Announcement on Issues Concerning Income Tax Policies for Third-Party Enterprises Engaged in Pollution
    
    Prevention and Control of the Ministry of Finance and the State Administration of Taxation, from January 1, 2019
    
    to December 31, 2021, the corporate income tax will be levied at a reduced rate of 15% on eligible third-party
    
    enterprises engaged in pollution prevention and control. The Company’s subordinate Environment Protection
    
    Company enjoys the above preferential policy and levies corporate income tax at a rate of 15%
    
    V.Annotation of the items in consolidate financial statement
    
    (1) Monetary fund
    
                     Item                        EndingBalance    Year-endbalanceoflastyear
                                   Cashonhand                                    65,138.88                84,307.60
                                   Banksavings                                 467,274,657.16             731,339,856.01
                                   Othermonetary fund                            617,564,170.77             41,785,691.23
                     Total                        1,084,903,966.81             773,209,854.84
                                   Including:totalamountsavingaboard                  6,292,429.36              6,242,072.77
    
    
    Note: among the above mentioned “other monetary fund”, the restricted monetary fund including cash deposit of 0
    
    Yuan in total (on 31 Dec. 2019, the restricted monetary fund include cash deposit of 1,719,853.88 Yuan)
    
    (2) Bill receivable
    
                  Item                    EndingBalance                Year-endbalanceoflast
                                             year
                             Bankacceptance note                           2,900,000.00                       0.00
                             CommercialAcceptanceNotes                           0.00                       0.00
                  Total                           2,900,000.00                       0.00
    
    
    (3) Account receivable
    
    1. Age analysis
    
                  Account age          EndingBalance              Year-endbalanceoflastyear
                              Within oneyear                       132,034,578.25                      178,147,691.32
                              1 to2years
                              2 to3years
                              Over 3years                          5,769,529.84                        5,769,529.84
                              Subtotal                            137,804,108.09                      183,917,221.16
                              Less: Baddebtprovision                   5,766,640.84                        5,766,640.84
                Total                132,037,467.25                      178,150,580.32
    
    
    2. According to accrual method for bad debts
    
    Category Ending Balance
    
              Book balance         Baddebtprovision       Bookvalue
       Amount      Proportion    Amount      Accrual
                    (%)                proportion (%)
                      With single provision for    5,766,640.84       4.18   5,766,640.84       100.00
                      bad debts
                      With baddebtprovision
                      accrual basedonsimilar    132,037,467.25      95.82                         132,037,467.25
                      credit riskcharacteristics
                      of aportfolio
               Total          137,804,108.09     100.00   5,766,640.84         4.18   132,037,467.25
    
    
    Year-end balance of last year
    
                 Category                  Bookbalance           Baddebtprovision    Bookvalue
        Amount      Ratio(%)     Amount     Accrual
                                        ratio (%)
                        With single provision for      5,766,640.84      3.14   5,766,640.84     100.00
                        baddebts
                        Withbaddebtprovision
                        accrualbasedonsimilar       178,150,580.32     96.86                       178,150,580.32
                        creditriskcharacteristics of
                        aportfolio
                Total            183,917,221.16     100.00   5,766,640.84      3.14  178,150,580.32
    
    
    With single provision for bad debts:
    
    Ending Balance
    
              Name       Bookamount   Baddebtprovision  Accrualproportion (%)        Causes
                   Shenzhen
                   Petrochemical       3,474,613.06      3,474,613.06             100.00  Uncollectible inexcepted
                   Products   Bonded
                   TradingCo.,Ltd.
                   Zhongji           1,137,145.51      1,137,145.51             100.00  Uncollectible inexcepted
                   Construction
                   Development  Co.,
    
    
    Ending Balance
    
              Name       Bookamount   Baddebtprovision  Accrualproportion (%)        Causes
                   Ltd.
                   Shenzhen  Fuhuade    800,000.00       800,000.00             100.00  Uncollectible inexcepted
                   PowerCo.,Ltd
                   Other              354,882.27       354,882.27             100.00  Uncollectible inexcepted
              Total        5,766,640.84      5,766,640.84             100.00
    
    
    Provision for bad debts by portfolio:
    
    Provision by portfolio:
    
    Ending balance
    
            Name           Accountreceivable         Baddebtprovision         Accrualproportion(%)
              With   minor           132,037,467.25                                          0.00
              credit risk
    
    
    Recognition standards and specifications on provisions by portfolio:
    
    The account receivable with provision for bad debts by portfolio mainly refers to the amount from
    
    Guangdong Power Grid Co., Ltd., Shenzhen Power Supply Bureau Co., Ltd. and Shenzhen Water
    
    Bureau etc., which have minor credit risk and no provision for bad debts.
    
    3. Bad debt provision accrual collected or switch back
    
                               Current amountchanged
              Category     Year-endbalanceof    Accrual     Collectedor    Rewriteor  EndingBalance
         lastyear                  switchback     write-off
                 With     single      5,766,640.84                                     5,766,640.84
                 provision for bad
                 debts
    
    
    There is no receivable with significant recovery or reversal amount of bad debt provision in the
    
    current period.
    
    4. Account receivable without actual charge off in the period
    
    5. Top 5 receivables at ending balance by arrears party
    
    T12o9ta,0l63p,8e4r7io.5d4-eYnduanb,atlaaknecse 93o.f66tpopercfeinvte ofrethceeivtoatballesaccboyuntarrreecaerivsabplaeratyt pearmioodu-netnidn,gbatdo
    
    debt provision accrual correspondingly at period-end amounting as 0 Yuan
    
    6. No accounts receivable terminated recognition due to transfer of financial assets at the end
    
    of the period
    
    (14.)AAcccocouunnt tppaaididininaaddvvaanncececlassified according to age
    
           Age                 EndingBalance                Year-endbalanceoflastyear
      Book balance     Proportion(%)          Bookbalance    Proportion(%)
               Within1year      28,934,955.72           88.09         69,896,494.56            99.84
               1to2years        3,820,156.23           11.63           15,600.00             0.02
               2to3years                                          32,000.00             0.05
               Over3years         93,586.94           0.28           61,586.94             0.09
            Total       32,848,698.89          100.00         70,005,681.50           100.00
    
    
    2. Top five accounts paid in advance at period-end balance listed by object
    
                            Proportionintotalbook
                          Paidinadvanceto                   Bookbalance    balanceofaccountspaidin
                                advance(%)
                                   Guangdong sales branch of CNOOC Gas            22,631,736.13                  68.90
                                   PowerGroupCo.,Ltd.
                                   Shenzhen GasGroupCo.,Ltd.                       3,820,156.23                  11.63
                                   Guangzhou Zike Environmental Protection              802,500.00                  2.44
                                   TechnologyCo.,Ltd.
                                   Xinao EnergyTradingCo.,Ltd.                       351,988.63                  1.07
                                   Yongcheng  Property Insurance Co., Ltd.              161,674.43                  0.49
                                   Shenzhen Branch
                      Total                         27,768,055.42                  84.53
    
    
    (5) Other account receivable
    
                  Item                   Bookbalance         Year-endbalanceoflastyear
                             Interestreceivable
                             Dividendreceivable
                             Otheraccountreceivable                80,837,116.58                  32,321,826.94
                   Total                  80,837,116.58                  32,321,826.94
    
    
    1. Other account receivable
    
    (1) Age analysis
    
                   Accountage                Bookbalance           Year-endbalanceoflastyear
                        Within oneyear                      50,107,926.26                   4,589,653.32
                        1 to2years                          1,215,311.98                   1,223,336.54
                        2 to3years                         2,758,753.80                   3,414,019.37
                        Over 3years                        58,587,544.98                  54,927,238.15
                        Subtotal                           112,669,537.02                  64,154,247.38
                        Less: Baddebtprovision                31,832,420.44                  31,832,420.44
                Total                     80,837,116.58                  32,321,826.94
    
    
    (2) By category
    
    Book balance
    
                Bookbalance              Baddebtprovision
                Category                                               Accrual
        Amount       Proportion      Amount      proportion     Bookvalue
                       (%)                     (%)
                     With single provision     32,525,936.22        28.87    31,832,420.44       97.87      693,515.78
                     forbaddebts
                     Withbaddebt            80,143,600.80        71.13                           80,143,600.80
                     provisionaccrualbased
                     onsimilarcreditrisk
                     characteristicsofa
                     portfolio
               Total          112,669,537.02       100.00    31,832,420.44       28.25    80,837,116.58
    
    
    Year-end balance of last year
    
          Book balance            Baddebtprovision
                Category                   Proportion                Accrual        Bookvalue
       Amount       (%)      Amount    proportion(%)
                     With single provision  32,525,936.22       50.70   31,832,420.44        97.87       693,515.78
                     forbaddebts
                     Withbaddebtprovision  31,628,311.16       49.30                             31,628,311.16
    
    
    Year-end balance of last year
    
          Bookbalance            Baddebtprovision
                Category                   Proportion                Accrual        Bookvalue
       Amount       (%)      Amount    proportion(%)
                     accrual basedonsimilar
                     credit risk
                     characteristics ofa
                     portfolio
     64,154,247.38      100.00   31,832,420.Total44          49.62     32,321,826.94
    
    
    With single provision for bad debts:
    
    Book balance
    
               Name
     Book balance  Baddebtprovision  Accrualratio (%)       Accrualreasons
                     HuiyangKangtai
                     IndustrialCompany     14,311,626.70     14,311,626.70           100.00 Un-collectable inexcepted
                     ShandongJinan
                     GenerationEquipment    3,560,000.00      3,560,000.00           100.00 Un-collectable inexcepted
                     Plant
                     Individualincometax     2,470,039.76      2,470,039.76           100.00 Un-collectable inexcepted
                     Dormitory    amount   2,083,698.16      1,736,004.16            83.31 Someun-collectable inexcepted
                     receivable
                     Personalreceivables      7,498,997.87      7,498,997.87           100.00 Un-collectable inexcepted
                     Depositreceivable       1,658,796.73      1,312,974.95            79.15 Someun-collectable inexcepted
                     Other                942,777.00       942,777.00           100.00 Un-collectable inexcepted
               Total        32,525,936.22     31,832,420.44            97.87
    
    
    Provision for bad debts by portfolio:
    
    Provision by portfolio:
    
    Ending balance
    
               Name         Otheraccountreceivable     Baddebtprovision    Accrualproportion(%)
                     Withminorcreditrisk             80,143,600.80
    
    
    Recognition standards and specifications on provisions by portfolio:
    
    The Company believes that the credit risk of other account receivable with no impairment in the
    
    single assessment is relatively low, no provision for bad debts, unless there is an evidence that a
    
    certain other account receivable is at greater credit risk.
    
    (3) Accrual of bad debt provision
    
        Phases I        PhasesII       PhasesIII
                    Expectedcredit   Expectedcredit
                                  lossesforthe
                     Bad debtprovision      loEssxepseocvteedrncreexdti1t2  lodsusreastifoonr(twheitehnotuirteentireduration       Total
        months      creditimpairment    (withcredit
                      occurred)      impairment
                                   occurred)
                          Balanceatlastyear-end                                     31,832,420.44     31,832,420.44
                          Bookbalance of other account
                          receivableatyear-begin
                          ——TurntophaseII
                          ——TurntophaseIII
                          ——ReturntoPhaseII
                          ——ReturntoPhaseI
                          Currentaccrual
                          Currentswitchback
                          Rewriteintheperiod
                          Write-off intheperiod
                          Otherchanges
                          Bookbalance                                           31,832,420.44     31,832,420.44
    
    
    (4) Bad debt provision accrual collected or switch-back in the period
    
                               Current amountchanged
              Category     Year-endbalance     Accrual     Collectedor     Rewriteor    Bookbalance
       of lastyear                  switchback     write-off
                 Baddebt
                 provisionfor        31,832,420.44                                       31,832,420.44
                 otherreceivables
    
    
    (5) No other accounts receivable that had actually written off in the period
    
    (6) By nature
    
                  Nature               Endingbookbalance          Bookbalanceatlastyear-end
                          Dormitoryreceivables                        2,083,698.16                  2,083,698.16
                          Depositreceivable                           8,114,769.72                  8,114,769.72
                          Personalreceivables                         10,625,884.03                 10,625,884.03
                          Comanagement account                      13,243,635.56                 13,114,012.69
                          Accounts   receivable   of                  8,432,761.42                  9,060,361.44
                          HuidongServer
                           Receivablesfromequitytransfer                  44,990,000.00                          -
                          Other                                  25,178,788.13                 21,155,521.34
                 Total                         112,669,537.02                  64,154,247.38
    
    
    (7) Top five other account receivables at period-end balance listed by arrears party
    
                                       Proportion in
                                      total period-end    Period-end
                     Nameofthecompany      Nature     Endingbalance     Age     balanceof    balanceofbad
                                       otheraccount   debtprovision
                                       receivable(%)
                       ShenzhenGas Group Co.,  Equity          44,990,000.00  Within1         39.93
                       Ltd.                transfer                     years
                       HuidongServerHarbor    Intercourse       21,676,396.98  Over  3         19.24
                       Comprehensive         fund                       years
                       DevelopmentCo.,Ltd.
                       HuiyangCountyKangtai   Other          14,311,626.70  Over  3         12.70   14,311,626.70
                       IndustrialCompany                                years
                       China      Machinery  Guarantee        4,906,822.44  Within3          4.36
                       EngineeringCorporation   money                     years
                       Shandong Jinan  Power  Other           3,560,000.00  Over  3         3.16    3,560,000.00
                       EquipmentFactory                                 years
                   89,444,846.12                 79.39   17,871,626.70
    
    
    (8) No receivables involving government subsidies at the end of the period
    
    (9) No other receivables terminated recognition due to transfer of financial assets
    
    (6) Inventory
    
    1. Classification
    
                Ending Balance                        Year-endbalanceoflastyear
         Item                 Inventory                             Inventory
     Book balance   fallingprice    Bookvalue   Bookbalance   fallingprice    Bookvalue
                   reserves                             reserves
           Raw     150,562,248.7   42,008,350.5   108,553,898.2   171,828,426.1   47,141,982.5   124,686,443.6
           material           6          4           2           9          8           1
           s
    
    
    Note: After the sale of the equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd. this year, Shen
    
    Nan Dian (Dongguan) Weimei Electric Power Co., Ltd. will no longer be included in the scope of consolidation
    
    from April 30, 2020, and the original assets and liabilities have been transferred out.
    
    2. Inventory falling price reserves
    
                     Currentincreased       Currentdecreased       EndingBalance
           Item     Year-endbalance                   Switch-back   Changesin
       of lastyear      Accrual   Other   orwrite-off     scopeof
                                              consolidation
              Raw           47,141,982.58                              5,133,632.04    42,008,350.54
              materials
    
    
    3. Accrual basis for the depreciation provision of inventory and reasons of switch-back or
    
    write-off in the year
    
              Item                Accrualbasis             Reasonsof       Reasonsofwrite-off
                                  switch-back
                    Raw materials        Costhigherthenetrealizablevalue     Notapplicable       Sparepartsonsale
    
    
    (7) Other current assets
    
                        Item                      EndingBalance          OpeningBalance
                                        VATinputtaxdeductible                             341,415,281.38          349,953,491.34
                                        Enterpriseincometaxpaidinadvance                      6,583,089.98            6,583,089.98
                                        Financialproducts                                 139,674,162.93           86,000,000.00
                        Item                      EndingBalance          OpeningBalance
                                        Accrualinterestoftimedeposit                          4,057,800.00            2,670,150.01
                                        Other                                             30,000.00              30,000.00
                        Total                          491,760,334.29          445,236,731.33
    
    
    (8) Long-term equity investment
    
                                                    Changes+,-
                                                                                                      Period-end
       Year-end                         Investment        Other     Other  Declaration   Provision          Ending     balanceof
                  The investedentity   balanceoflast Additional               gains/losses    comprehensive changes  ofcash
        year     investment  Disinvestment   recognizedby      income     in   dividends     for    Other    Balance    depreciation
                                                                            impairment                   reserves
                                     equitymethod     adjustment   equity  orprofits
                   1.Jointventure
                   HuidongServer      14,619,203.03                         -243,622.43                                           14,375,580.60
                   Harbor
                   Comprehensive
                   Development
                   Company(“Huidong
                   Server”forshort)
              Total       14,619,203.03                         -243,622.43                                           14,375,580.60
    
    
    (9) Other equity instrument investment
    
    1. Other equity instrument investment
    
    Item Book balance
    
    CPI Jiangxi Nuclear Power Company 60,615,000.00
    
    Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - 2,500,000.00
    
    investment cost
    
    Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - -2,500,000.00
    
    change in fair value
    
    Total 60,615,000.00
    
    2. Non trading equity instrument investment
    
                                                              Reasons  of
    Dividend                       Retained       Designatedasthe     retained
     income                       earnings    investment measuredatfair  earnings
           Item   recogniz  Accumulat   Accumulat   transferred    valueandwhosechanges  transferred
    ed inthe    edgain     edloss     fromother      reckonedintoother    from  other
     current                      comprehensi    comprehensive income   comprehensi
     period                       veincome       (explainreasons)     veincome
             Jiangxi
             Nuclear                                          intents to holding for a
             Power Co.,
             Ltd.                                            long-term
             Shenzhen
             Petrochemi
             cal    Oil                   -2,500,000.             intents to holding for a
             Bonded                            00            long-term
             Trade  Co.,
             Ltd.
             Total                        -2,500,000.
                            00
    
    
    (10) Investment real estate
    
    1. Investment real estate measured at cost
    
     Houseandbuilding    Landuse    Construction inItem    Total
                       right        progress
                           1.Originalbookvalue
                           (1)Year-endbalanceoflastyear       9,708,014.96                               9,708,014.96
                           (2)Currentincreased
                           (3)Currentdecreased
                           (4)EndingBalance               9,708,014.96                               9,708,014.96
                           2.Accumulated depreciation and                                          -
                           accumulatedamortization
                           (1)Year-endbalanceoflastyear       7,306,687.96                               7,306,687.96
                           (2)Currentincreased                98,068.80                                 98,068.80
                       —Accrualoramortization         98,068.80                                 98,068.80
                           (3)Currentdecreased                      -                                       -
                           (4)Bookbalance                 7,404,756.76                               7,404,756.76
                           3.Depreciation provision
                           (1)Year-endbalanceoflastyear
                           (2)Currentincreased
                           (3)Currentdecreased
                           (4)Bookbalance
                           4.Bookvalue
                           (1)Period-endbookvalue           2,303,258.20                               2,303,258.20
                           (2)Year-beginbookvalue           2,401,327.00                               2,401,327.00
    
    
    (11) Fixed assets
    
    1. Fixed assets and disposal of fixed assets
    
                   Item                   EndingBalance          Year-endbalanceoflastyear
                               Fixedassets                               954,992,268.00               1,381,675,872.68
                               Disposaloffixedassets
                    Total                        954,992,268.00               1,381,675,872.68
    
    
    2. Fixed assets
    
              Item               Houseand           Machinery          Transportation           Other              Total
             buildings            equipment             tools            equipment
                    I.Originalbookvalue
                    1.Openingbalance         501,321,101.48       4,079,001,987.60         16,336,684.19       55,807,562.91       4,652,467,336.18
                    2. Increased in the
                    year                                       3,270,619.85            71,238.94         873,334.63          4,215,193.42
                    (1)Purchase                                   823,506.59                           167,066.26           990,572.85
                    (2)Construction in                              2,447,113.26            71,238.94         706,268.37          3,224,620.57
                    progresstransfer-in
                    (3)   Increase   in
                    businesscombination
                    3. Decreased in the
                    year                    75,311,278.51         912,852,652.58          1,677,249.73        1,101,001.76         990,942,182.58
                    (1)Disposalor                                                        0.00          11,100.00            11,100.00
                    scrapping
                    (2)Reductionof
                    consolidationscope          75,311,278.51         912,852,652.58          1,677,249.73        1,089,901.76         990,931,082.58
                    changes
              Item               Houseand           Machinery          Transportation           Other              Total
             buildings            equipment             tools            equipment
                    4.EndingBalance          426,009,822.97       3,169,419,954.87         14,730,673.40       55,579,895.78       3,665,740,347.02
                    II.Accumulated
                    depreciation
                    1.Openingbalance         308,704,855.95       2,768,225,963.03          9,246,358.34       43,480,376.06       3,129,657,553.38
                    2. Increased in the         5,651,134.50         18,473,218.63           726,108.03         954,942.33         25,805,403.49
                    year
                    (1)Accrual                5,651,134.50         18,473,218.63           726,108.03         954,942.33         25,805,403.49
                    3.Decreased inthe          44,544,371.88         505,772,982.44          1,268,277.91         780,774.36         552,366,406.59
                    year
                    (1)Disposalor                                                                      9,990.00             9,990.00
                    scrapping
                    (2)Reductionof
                    consolidationscope          44,544,371.88         505,772,982.44          1,268,277.91         770,784.36         552,356,416.59
                    changes
                    4.Bookbalance           269,811,618.57       2,280,926,199.22          8,704,188.46       43,654,544.03       2,603,096,550.28
                    III.Impairment
                    provision
                    1.Openingbalance          14,860,025.13         126,273,884.99                                           141,133,910.12
              Item               Houseand           Machinery          Transportation           Other              Total
             buildings            equipment             tools            equipment
                    2. Increased in the
                    year
                    (1)Accrual
                    3.Decreased inthe           5,059,785.83         28,422,595.55                                            33,482,381.38
                    year
                    (1)Disposalor
                    scrapping
                    (2)Reductionof
                    consolidationscope           5,059,785.83         28,422,595.55                                            33,482,381.38
                    changes
                    4.Bookbalance             9,800,239.30         97,851,289.44                                           107,651,528.74
                    IV.Bookvalue
                    (1)  Closing  book       146,397,965.10         790,642,466.21          6,026,484.94       11,925,351.75         954,992,268.00
                    value
                    (2)Openingbook          177,756,220.40       1,184,502,139.58          7,090,325.85       12,327,186.85       1,381,675,872.68
                    value
    
    
    3. Idle fixed assets temporary
    
             Item       Original book    Accumulated     Impairment     Bookvalue       Note
         value       depreciation      provision
                 Housing &
                 buildings         127,893,412.10    98,010,753.95   13,948,439.04   15,934,219.11
                 Machinery
                 equipment         523,528,339.27   452,630,912.68    32,087,951.59   38,809,475.00
                 Transportation         256,300.00      230,670.00                   25,630.00
                 equipment
             Total       651,678,051.37   550,872,336.63    46,036,390.63   54,769,324.11
    
    
    4. No fixed assets acquired by financing lease
    
    5. No fixed assets acquired by operating lease
    
    6. Fixed assets without property rights certificate
    
                  Item                   Bookvalue          Reasonsforfailingtocompletethe
                                  propertyrightscertificate
                            Boosterstation                              3,962,705.44     Proceduresuncompleted
                            Steamturbineworkshop                        1,437,359.56     Proceduresuncompleted
                            Chemicalwatertower                         2,363,171.86     Proceduresuncompleted
                            Treatmentshopforheavyoil                      464,359.97     Proceduresuncompleted
                            Start-upboilerhouse                           104,559.07     Proceduresuncompleted
                            Firepumproom                              242,318.01     Proceduresuncompleted
                            Circulatingwaterpumphouse                    1,520,701.82     Proceduresuncompleted
                            Comprehensivebuilding                        2,589,240.59     Proceduresuncompleted
                            Production   and   inspection
                            building                                  4,396,371.57     Proceduresuncompleted
                            Administrativebuilding                        4,520,121.49     Proceduresuncompleted
                            Mailroomofthemainentrance                    183,112.49     Proceduresuncompleted
                            Chemical   water   treatment                  232,960.00     Proceduresuncompleted
                            workshop
                            Coolingtower                                673,259.25     Proceduresuncompleted
                            Comprehensivebuilding canteen                   276,091.29     Proceduresuncompleted
                            Comprehensivebuilding                         443,246.19     Proceduresuncompleted
                  Total                          23,409,578.60
    
    
    (11.2C)oCnostnrsutrcuticotnioinnipnrporgorgesrsesasnd Engineering materials
    
                    Item                     EndingBalance          Year-endbalanceoflastyear
                               Construction inprogress                       60,831,928.29                  66,474,630.23
                               Engineering materials
                    Total                        60,831,928.29                  66,474,630.23
    
    
    2. Construction in progress
    
               Ending Balance                  Year-endbalanceoflastyear
           Item                Impairment                         Impairment
     Bookbalance    provision    Bookvalue   Bookbalance    provision    Bookvalue
              Cogeneratio   57,946,875.6              57,946,875.6   63,151,182.6              63,151,182.6
              n                  3                     3          4                     4
              OiltoGas    13,230,574.5   13,230,574.5              32,871,600.2   32,871,600.2
              Works              3          3                     6          6
              Technical    2,217,378.76              2,217,378.76   3,061,557.07              3,061,557.07
              innovation
              Other        667,673.90               667,673.90    261,890.52               261,890.52
           Total     74,062,502.8   13,230,574.5   60,831,928.2   99,346,230.4   32,871,600.2   66,474,630.2
             2           3          9          9          6          3
    
    
    3. Changes of significant projects in construction in the year
    
                                                                      Proportion
                                          Reduction                        of          Accumulati
                          Increase  Transferred    of       Other             accumulat  Project  veamount  Including:   Rateof
          Item     Budget     Opening     ofthis   fixedassets consolidati  decrease in   Cbalolasnincgeiveproject progress    of    capitalizati   interest   Capital
                balance      period    inthis    onscope   theperiod            investmen   (%)  capitalizatio   onof    capitalizat  sources
                                   period    changes                     tinbudget        nofinterest  interest    ion(%)
                                                                        (%)
        Self-rais
            Cogenerat  60,000,000.  63,151,182.  45,871.71           5,250,178            57,946,875                                          edand
            ion             00         64                        .72                 .63           96.58  6,476,1.8456                borrowi
        ng
            OiltoGas   74,400,000.  32,871,600.                            19,641,025  13,230,574                                          Self-rais
            Works           00         26                                  .73       .53     63.76   63.76                           ed
            Technical                                                                              Not
            innovatio             3,061,557.07 1,066,3.71991,910,4.1908                   2,217,37786.    Not  applica                           Self-rais
            n                                                                         applicable     ble                           ed
            Other                          1,719,905  1,314,122                                                                      Self-rais261,890.52.85       .47                    667,673.90
        ed
          Total     134,4000,.000099,346,23409. 2,832,0.39573,224,6.52705,250,1.778219,641,0.725374,062,5.0822               6,476,1.8456
    
    
    4. No accrual of impairment provision for Construction in progress in the period
    
    (13) Intangible assets
    
    1. Intangible assets
    
               Item                 Landuseright           Software              Total
                     I. Original bookvalue
                     1. Openingbalance                91,355,995.46        3,577,588.80           94,933,584.26
                     2. Increasedintheyear                                                            -
                     (1) Purchase                             -                                     -
                      3.Decreasedintheyear             30,542,000.70                -           30,542,000.70
                     (1) Reduction of
                     consolidation scope                30,542,000.70                -           30,542,000.70
                     changes
                     4. EndingBalance                 60,813,994.76        3,577,588.80           64,391,583.56
                     II. Accumulated
                     depreciation
                     1. Openingbalance                48,080,331.33        3,251,086.49           51,331,417.82
                     2. Increasedintheyear               388,916.55          97,067.10             485,983.65
                     (1) Accrual                       388,916.55          97,067.10             485,983.65
                      3.Decreasedintheyear              8,759,936.73                -            8,759,936.73
                     (1) Reduction of
                     consolidation scope                8,759,936.73                -            8,759,936.73
                     changes
                     4. Bookbalance                  39,709,311.15        3,348,153.59           43,057,464.74
                     III. Impairment
                     provision
                     1. Openingbalance                         -                -                    -
                     2. Increasedintheyear
                     (1) Accrual                              -                -                    -
                     3. Decreasedintheyear
                     (1) Disposal                             -                -                    -
                     4. Bookbalance                           -                -                    -
    
    
    IV. Book value
    
                     (1) Closing bookvalue             21,104,683.61         229,435.21           21,334,118.82
                     (2) Openingbookvalue             43,275,664.13         326,502.31           43,602,166.44
    
    
    2. Land use rights without property rights certificate
    
                                 Reasonsforfailingto
                     Item                          Bookvalue       completethepropertyrights
                                    certificate
                                  Land use right of the wharf and pipe                  530,733.25  Propertyrightscertificateis
                                  gallery                                                         undergoing
    
    
    (14) Long-term deferred expenses
    
    ItemYear-endbalance  CurreanmtoinucnrteasedAmorPtiezreioddinthe   Otherdecrease    Bookbalance
      of lastyear
                Exhibitionhall      1,174,171.16                   125,971.38                 1,048,199.78
                decoration
                amount
    
    
    (15) Deferred income tax assets and deferred income tax liabilities
    
    1. Deferred income tax assets without offsetting
    
             EndingBalance               Year-endbalanceoflastyear
               Item            Deductible      Deferredincome      Deductible      Deferredincome
    temporary difference     taxassets        temporary        taxassets
                                     difference
                      Bad  debt provision for                                    5,628,573.77     1,400,153.44
                      account receivable            5,628,573.77     1,400,153.44
                      Bad debtprovisionfor                                        723,585.00       180,896.25
                      other receivable               723,585.00       180,896.25
                      Changes in fair value of
                      other  equity  instrument                                    2,500,000.00       625,000.00
                      investments                 2,500,000.00       625,000.00
                      Other
                Total              8,852,158.77     2,206,049.69       8,852,158.77     2,206,049.69
    
    
    (16) Other non-current assets
    
             Ending Balance                     Year-endbalanceoflastyear
          Item              Depreciation                           Depreciation
    Book balance   reserve    Bookvalue     Bookbalance      reserve      Bookvalue
             Projectof
             LNG                                      22,882,181.78                22,882,181.78
           Total                                   22,882,181.78                22,882,181.78
    
    
    1(1.7C)lSahssoirfitc-atetriomn loans
    
                    Item                     EndingBalance           Year-endbalance
                                    oflastyear
                               Guarantee loans                                                300,000,000.00
                               Credit loans                              754,233,285.00           580,000,000.00
                               Accrued interest                            1,246,849.11             1,075,378.48
                    Total                       755,480,134.11           881,075,378.48
    
    
    (18) Account payable
    
    1. Account payable
    
                  Item                     EndingBalance           Year-endbalanceof
                                       lastyear
                             Materials                               2,854,019.71             12,180,417.48
                             Electricity                              1,884,315.07              1,760,985.99
                             Labor                                 6,101,200.00              3,102,530.32
                             Others                                 2,521,658.17              2,827,168.62
                  Total                        13,361,192.95             19,871,102.41
    
    
    2. There is no major amount payable with over one year age at end of the period
    
    (19)Payroll payable
    
    1. Payroll payable
    
                 Item           Year-endbalance  Currentincreased      Current      EndingBalance
       of lastyear                     Decreased
                          Short-term remuneration          54,801,004.42    57,502,762.80    73,035,130.07    39,268,637.15
                          Post-employment                 407,428.11     6,482,783.84     5,113,650.54     1,776,561.41
                 Item           Year-endbalance  Currentincreased      Current      EndingBalance
       oflastyear                     Decreased
                          welfare-defined   contribution
                          plans
                          Severance Pay
                          Other welfare due within one
                          year
                 Total              55,208,432.53    63,985,546.64    78,148,780.61    41,045,198.56
    
    
    2. Short-term remuneration
    
                 Item           Year-endbalance  Currentincreased     Current       Bookbalance
       of lastyear                    Decreased
                          (1) Wages,bonuses,allowancesand    53,579,116.98    44,870,304.70    59,821,822.13    38,627,599.55
                          subsidies
                          (2) Welfareforworkersand           63,050.00      413,654.74      378,393.74       98,311.00
                          staff
                          (3) Socialinsurance               199,344.99     2,418,356.33     2,569,608.69       48,092.63
                       Including:Medical            167,818.74     2,351,191.23     2,476,620.10       42,389.87
                          insurance
                  Workinjury             13,139.34        7,859.44       20,962.00          36.78
                          insurance
                  Maternity              18,386.91       59,305.66       72,026.59        5,665.98
                          insurance
                          (4) Housingaccumulation fund        614,780.58     9,085,609.07     9,549,296.93      151,092.72
                          (5) Laborunionexpenditure          344,711.87      714,837.96      716,008.58      343,541.25
                          and personneleducation
                          expense
                 Total              54,801,004.42    57,502,762.80    73,035,130.07    39,268,637.15
    
    
    3. Defined contribution plans
    
                 Item           Year-endbalance  Currentincreased     Current       Bookbalance
       oflastyear                    Decreased
                 Item           Year-endbalance  Currentincreased     Current       Bookbalance
       oflastyear                    Decreased
                           Basicendowmentinsurance         394,280.13     3,829,721.67     4,201,766.55       22,235.25
                           Unemploymentinsurance            12,849.98       22,162.21       34,888.99         123.20
                           Enterpriseannuity                   298.00     2,630,899.96      876,995.00     1,754,202.96
                 Total                407,428.11     6,482,783.84     5,113,650.54     1,776,561.41
    
    
    (20) Taxes payable
    
                  Item                     EndingBalance           Year-endbalanceof
                                       lastyear
                                   Enterprise incometax                               475,248.33              3,407,074.02
                                   Real estatetax                                   1,957,956.15                996,166.86
                                   Individual incometax                              1,043,897.37              1,550,858.52
                                   Land-use taxoftown                                452,439.30
                                   VAT                                         7,538,071.86             15,053,172.64
                                   Other                                          357,269.39               762,001.73
                  Total                        11,824,882.40             21,769,273.77
    
    
    (21) Other account payable
    
                 Item                   EndingBalance         Year-endbalanceoflastyear
                           Interestpayable
                           Dividendspayable
                           Otheraccountpayable                  34,163,258.96                  43,691,472.06
                  Total                   34,163,258.96                  43,691,472.06
    
    
    1. Other account payable
    
    (1) Other payable by nature
    
                  Item                      Bookbalance            Year-endbalanceof
                                       lastyear
                             Engineeringfunds                         11,861,176.64              13,045,165.88
                             Qualityassurance                          6,633,006.27               6,825,475.53
                  Item                      Bookbalance            Year-endbalanceof
                                       lastyear
                             Accruedexpenses                         10,143,950.69              10,301,185.40
                             Equipmentfund                                                  3,718,050.65
                             Other                                 5,525,125.36               9,801,594.60
                  Total                        34,163,258.96              43,691,472.06
    
    
    (2) Other account payable of more than one year is of 18,271,785.62 Yuan (December 31, 2019:
    
    18,303,816.84 Yuan), which is mainly the engineering equipment fund payable and guarantee
    
    money.
    
    (22)Accrual liability
    
                 Item                Bookbalance       Year-endbalanceoflast       Reason
                                year
                           Guaranteeofferingoutside               26,646,056.28          26,646,056.28
                  Total                   26,646,056.28          26,646,056.28
    
    
    Note: On 29 November 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd. (Jiahua
    
    Building) signed a supplementary term aiming at equity transfer over equity attribution and division of Yapojiao
    
    Dock, which belongs to Shenzhen Server, Huidong Server, and Huidong Nianshan Town Government as well as its
    
    subordinate Nianshan Group. In order to solve this remaining historic problem, Shenzhen Server saved RMB
    
    12,500,000.00 in condominium deposit account as guarantee. In addition, Server pledged its 20% of equity holding
    
    from Huidong Server to Jiahua Architecture with pledge duration of 2 years. The amount of collateral on loans
    
    could not exceed RMB 15,000,000.00. Relevant losses with the event concerned predicted amounting to RMB 27,
    
    500,000.00 by the Group. The costs for lawyers from 2014 to June 2020 and the costs for problem left over by
    
    history amounting to 853,943.72 Yuan, ending balance amounted as 26,646,056.28 Yuan.
    
    (23) Deferred income
    
           Item     Year-endbalanceof  Currentincreased     Current    EndingBalance    Reasons
        lastyear                      decreased
                Government       108,507,683.52                 11,549,926.48    96,957,757.04
                subsidy
    
    
    Items with government subsidy involved:
    
                                            Reducti
              Liability                   Subsidyamount   Amountincluded  onof                 Assets
        Opening    newlyincreasedin  incurrentprofit  consoli  Bookbalance   related/income
        balance     thecurrentperiod     andloss     dation                 related
                                             scope
                                            changes
                 Subsidy for
                 low-nitrogen        25,165,130.64                    261,374.29  3,736,754.7521,167,001.60  Assetsrelated
                 transformation
                 Information           86,666.60                     30,588.24            56,078.36
                 construction                                                                 Assetsrelated
                 Support fundof
                 recycling
                 economy for        7,451,273.95                    323,501.46          7,127,772.49  Assetsrelated
                 sludge drying
                 Treasury subsidies
                 for sludgedrying     2,826,250.00                    127,500.00          2,698,750.00  Assetsrelated
                 Special fundsfor
                 energy
                 conservation and       684,223.30                     57,018.66           627,204.64  Assetsrelated
                 emission
                 reduction
                 Funded ofenergy
                 efficiency
                 improvement for       401,760.00                     17,280.00           384,480.00  Assetsrelated
                 electric machine
                 Subsidy for
                 quality promotion
                 of theair          67,262,379.03                   2,365,909.08         64,896,469.95  Assetsrelated
                 environment in
                 Shenzhen
                 Cogeneration        4,630,000.00                              4,630,000.00          Assetsrelated
             Total       108,507,683.52                   3,183,171.73  785,346.765,96,957,757.04
    
    
    (24) Share capital
    
                                   Changesinthisperiod(+-)            EndingBalance
           Item   Year-endbalance New shares  Bonus     Capitalizing
      of lastyear                                   Other   Subtotal
                 issued      shares     from  reserves
                                   Changesinthisperiod(+-)            EndingBalance
           Item   Year-endbalance New shares  Bonus     Capitalizing
      of lastyear                                   Other   Subtotal
                 issued      shares     from  reserves
             Total shares 602,762,596.00                                                  602,762,596.00
    
    
    (25) Capital reserve
    
            Item      Year-endbalanceoflast         Current          Current   Bookbalance
           year               increased         decreased
                Capital premium
                (Share              233,035,439.62                                233,035,439.62
                premium)
                Other capital
                reserve              129,735,482.48                                129,735,482.48
            Total            362,770,922.10                                362,770,922.10
    
    
    (26) Other comprehensive income
    
                                        Current period
                             Less: writtenin
                                 other
       Year-end                 comprehensive                           Belongto
                        Item                   balanceoflast   Accountbefore    incomein   Less:incometax Belongtoparent    minority       Bookbalance
         year     incometaxinthe  previousperiod    expense   companyaftertax shareholdersafter
                     year       andcarried                              tax
                             forward togains
                              and lossesin
                              currentperiod
                                        1. Othercomprehensive incomeitemswhichwillnot    -2,500,000.00                                                               -2,500,000.00
                                        be reclassified subsequently toprofitofloss
                                        Including: changesofthedefinedbenefitplansthat
                                        re-measured
                                    Other comprehensive incomeunderequity
                                        method thatcannotbetransfertogain/loss
                                    Change offairvalueofinvestment inother       -2,500,000.00                                                               -2,500,000.00
                                        equity instrument
                                    Fair valuechangeofenterprise'screditrisk
                                        Current period
                             Less: writtenin
                                 other
       Year-end                 comprehensive                           Belongto
                        Item                   balanceoflast   Accountbefore    incomein   Less:incometax Belongtoparent    minority       Bookbalance
         year     incometaxinthe  previousperiod    expense   companyaftertax shareholdersafter
                     year       andcarried                              tax
                             forward togains
                              and lossesin
                              currentperiod
                                        2. Othercomprehensive incomeitemswhichwillbe
                                        reclassified subsequently toprofitorloss
                                        including: othercomprehensive incomeunderequity
                                        method thatcantransfertogain/loss
                                    Change offairvalueofotherdebtinvestment
                                    Amount of financial assets re-classify to other
                                        comprehensive income
                                    Credit impairment provisionforotherdebt
                                        investment
                                    Cash flowhedgingreserve
                                        Current period
                             Less: writtenin
                                 other
       Year-end                 comprehensive                           Belongto
                        Item                   balanceoflast   Accountbefore    incomein   Less:incometax Belongtoparent    minority       Bookbalance
         year     incometaxinthe  previousperiod    expense   companyaftertax shareholdersafter
                     year       andcarried                              tax
                             forward togains
                              and lossesin
                              currentperiod
                                    Translation differencesarisingontranslation of
                                        foreign currencyfinancialstatements
                                  Totalothercomprehensive income          -2,500,000.00                                                               -2,500,000.00
    
    
    (27) Surplus reserve
    
              Item        Year-endbalanceof   Currentincreased    Currentdecreased    Bookbalance
         lastyear
                    Legalsurplusreserve      310,158,957.87                                   310,158,957.87
                    Discretionarysurplus       22,749,439.73                                    22,749,439.73
                    reserve
              Total           332,908,397.60                                   332,908,397.60
    
    
    Note: according to the Company Law and the Articles of Association, the Company takes 10% of the net profit
    
    aside as legal surplus reserve. No more provision is made when the accumulated legal surplus reserve exceeds
    
    50% of the registered capital.
    
    After provision for legal surplus reserve, the Company can make provision for other surplus reserve. As approved,
    
    other surplus reserve can be used to make up for previous loss or increase share capital.
    
    (28) Retained profit
    
                         Item                          Currentamount   Year-endbalanceoflast
                               year
                                          Retainedprofitoflastyearbeforeadjusted                  706,830,892.54         679,429,935.81
                                          Totalretained profitadjusted (increasedwith+,                                    2,500,000.00
                                          decreasedwith-)
                                          Retainedprofitatbeginningoftheyearafteradjusted           706,830,892.54         681,929,935.81
                                          Add:netprofitattributabletoshareholders ofparent             52,040,498.42          24,900,956.73
                                          company
                                          Less:withdrawalofstatutorysurplusreserve
                                          Surplusreserveswithdrawal
                                          Generalriskreservewithdrawal
                                          CommonStockdividendpayable                         12,055,251.92
                                          Dividendofcommonsharestransferassharecapital
                                          Retainedprofitatperiod-end                           746,816,139.04         706,830,892.54
    
    
    (29) Operating income and operating cost
    
    Item Current amount Last-period amount
    
          Income            Cost             Income             Cost
               Main business       516,766,342.40      453,011,367.34       407,283,308.09       382,899,068.89
               Other business        1,384,263.81         98,068.80         841,308.29          98,068.80
            Total         518,150,606.21      453,109,436.14       408,124,616.38       382,997,137.69
    
    
    (30) Tax and surcharge
    
                  Item                     Currentamount           Last-periodamount
                             Citymaintenancetax                        1,383,140.70               347,935.14
                             Educationsurtax                            994,801.55               239,773.87
                             Realestatetax                            1,208,396.49              1,299,068.45
                             Stamptax                                249,088.14               223,246.10
                             Environmentalprotectiontax                     52,684.43                71,377.28
                             Landholdingtax                            528,926.56               622,976.03
                             Other                                     2,070.82                21,056.56
                   Total                        4,419,108.69              2,825,433.43
    
    
    (31) Sales expense
    
                  Item                     Currentamount        Last-periodamount
                                   Sludgetreatmentcosts                             1,759,061.64              2,091,758.08
                                   Salary,welfareandsocialinsurance                      483,096.28                211,222.62
                                   Communicationexpenses                              3,600.00                 3,600.00
                                   Socialexpenses                                   102,828.00                115,344.00
                                   Fleetcost                                        14,862.00                15,559.00
                                   Inspectioncharges                                   8,254.72                 5,707.55
                                   Laborinsurancefee                                 12,146.33                10,530.68
                                   Rentalfee                                        14,400.00                14,400.00
                                   Propertyinsurance                                  55,981.53                49,130.74
                                   Agencyengagementfee                              49,056.60                37,735.85
                                   Other                                           24,116.56                11,281.00
                            Total                                   2,527,403.66              2,566,269.52
    
    
    (32)Administration expense
    
                   Item                    Currentamount        Last-periodamount
                                    Wages                                       22,642,057.64             23,892,967.48
                                    Rentalfee                                      3,190,390.04              3,288,377.42
                                    Socialexpenses                                  1,215,245.44              1,532,058.32
                                    Intermediaryagencyfee                              769,240.68              1,231,759.70
                                    Fleetcost                                      1,544,894.98              1,007,200.26
                                    Boardcharges                                    643,383.04               588,713.32
                                    Depreciation                                    3,219,527.40              2,735,952.70
                                    Amortizationofintangibleassets                        438,195.11               924,080.54
                                    Environmentalprotection fee                           112,454.45               985,970.24
                                    Foodfee                                       1,683,299.91              1,636,173.21
                                    Corporateculturefee                                466,986.30               416,397.26
                                    Propertymanagement fee                             476,391.32               473,682.63
                                    Officefee                                       451,606.20               351,693.34
                                    Communicationexpenses                             584,900.66               555,998.52
                                    Businesstravelexpenses                             150,697.01               309,115.10
                                    Feeforstockcertificate                              268,361.53                86,822.94
                                    Unionfunds                                      296,122.92               303,547.56
                                    Employeeeducationexpenses                           25,496.98                55,175.25
                                    Other                                        4,857,620.54              4,556,178.71
                             Total                                  43,036,872.15             44,931,864.50
    
    
    (33) Financial expense
    
                  Item                     Currentamount           Last-periodamount
                            Interest expenses                          18,800,827.68             23,542,971.21
                            Less: capitalized interest                       613,068.55
                            Expenses interest                         18,187,759.13             23,542,971.21
                            Less: interestincome                       13,142,285.32             13,189,605.67
                  Item                     Currentamount           Last-periodamount
                                   Exchangeloss(gainsislistedwith”-”)                    -56,923.92                 -6,301.58
                            Other                                     76,172.31               292,203.46
                  Total                         5,064,722.20             10,639,267.42
    
    
    (34) Other Income
    
                        Item                     Currentamount     Last-periodamount
                                         Governmentgrants                                8,588,818.18        4,962,155.46
                                         Additionaldeduction oninputtax
                                         Commissionforwithholdingtheindividualincometax          166,718.37
                                         Incomefromdebtrestructuring
                         Total                        8,755,536.55        4,962,155.46
    
    
    Government subsidies included in other income
    
     Current   Last-period     Assetrelated/
                        Item                   amount    amount      incomerelated
                                               Special   Fund  Subsidy   for  Shenzhen  Atmospheric  2,365,909  1,201,651.5  Assetrelated
                                               Environmental QualityImprovement                        .08         4
                                               Subsidy forlow-nitrogen transformation                  261,374.2  251,403.55  Assetrelated
           9
                                               Enterprise information construction projectfunding          30,588.24   30,588.24  Assetrelated
                                               Subsidies  for  energy-saving  technological  transformation  57,018.66   57,018.66  Assetrelated
                                               projects
                                               Treasurysubsidiesforsludgedrying                    127,500.0  127,500.00  Assetrelated
           0
                                               Support fundofrecyclingeconomyforsludgedrying         323,501.4  323,501.46  Assetrelated
           6
                                               Funded ofenergyefficiencyimprovementforelectricmachine   17,280.00   17,280.00  Assetrelated
              1,753,212.0  Incomerelated
                                               VATrebates                                    1,134,065         1
         .17
                                               Unemployment insurance refundofaffectedenterprises                       -  Incomerelated
     Current   Last-period     Assetrelated/
                        Item                   amount    amount      incomerelated
     4,171,581
          .28
                                               Subsidies forfurthersteadygrowthoffundingprojects                          Incomerelated
     100,000.0
           0
                       Income related
                                               Supporting fundsofofficeoccupancy forlistedcompanies              1,000,000.0
                     0
                                               Reward to encouraging small and medium-sized enterprise to                    Incomerelated
                                               growthasascale-sized company                                200,000.00
                         Total                  8,588,818  4,962,155.4
          .18        6
    
    
    (35) Investment income
    
                       Item                          Current           Last-period
              amount            amount
                                             Long-term equityinvestment incomebyequity                   -243,622.43          -677,552.37
                                             Investment incomefromdisposaloflong-terminvestments          33,534,881.55
                        Total                       33,291,259.12          -677,552.37
    
    
    (36)Income from disposal of assets
    
                   Item             Current   Last-period      Amount reckonedintonon-recurring
      amount    amount           gains/losses ofthePeriod
                             Profit andlossondisposaloffixed             -417,926.32
                             assets
                              Pcoronfsittrucatinodninlopsrsoceosnsdisposal  of  828,535.66                                  828,535.66
                Total          828,535.66  -417,926.32                        828,535.66
    
    
    (37) Non-operating revenue
    
                                        Amount reckonedinto
                  Item              Currentamount      Last-periodamount      non-recurring
                                          gains/lossesofthe
                                             Period
                            Sales ofwastematerials                                    98,666.50
                            Other                               4,753.84            4,500.00            4,753.84
                  Total                      4,753.84          103,166.50            4,753.84
    
    
    (38) Non-operating expenditure
    
                                       Amount reckonedinto
                   Item               Currentamount      Last-periodamount      non-recurring
                                         gains/lossesofthe
                                             Period
                             External donation                       10,000.00                            10,000.00
                             Loss ofscrapfromnon-current               1,110.00                             1,110.00
                             assets
                             Other                                                46,124.97
                   Total                     11,110.00           46,124.97           11,110.00
    
    
    (39) Income tax expense
    
                  Item                     Currentamount           Last-periodamount
                                   aCcucrorrednatnincecowmitehttaaxxclaalwcuslaanteddrienlated610,366.52             1,157,865.76
                                   regulations
    
    
    (40) Cash flow statement
    
    1. Cash received with other operating activities concerned
    
                        Item                      Currentamount         Last-periodamount
                                       Government subsidycollected                           4,688,786.13           39,297,273.00
                                       Intercourse fundscollected                                                13,431,789.29
                                       Interest income                                    10,929,678.85           12,982,668.91
                                        Other                                          6,887,829.91            4,321,781.62
                        Total                           22,506,294.89           70,033,512.82
    
    
    2. Other cash paid in relation to operation activities
    
                   Item              Currentamount             Last-periodamount
                               Hiringintermediaryagencyfee        769,240.68                           1,231,759.70
                               Boardfee                       643,383.04                             588,713.32
                               Rentalfees                     3,850,120.43                           3,762,060.05
                               Communicationfee               1,215,245.44                           1,532,058.32
                               Fleetcost                      1,544,894.98                           1,007,200.26
                               Corporateculturefee               466,986.30                             416,397.26
                               Communicationfee                584,900.66                             555,998.52
                               Environmentalprotectionfee         112,454.45                             985,970.24
                               Other                        11,968,246.77                          16,424,022.91
                    Total             21,155,472.75                          26,504,180.58
    
    
    3. Cash received from other investment activities
    
                        Item                      Currentamount         Last-periodamount
                                        Repayment ofloanfromHuidongServe                      800,000.00
    
    
    4. Other cash paid related to investment activities
    
                        Item                      Currentamount         Last-periodamount
                                        Thecashdifferencebewteen thecashbalanceof
                                        Shen NanDian(Dongguan)WeimeiElectricPower            12,577,163.02
                                        Co., Ltdandthecashreceivedfromthedisposalof
                                        the equityonthedatewhendisposing
    
    
    5. Other cash received in relation to financing activities
    
                        Item                      Currentamount         Last-periodamount
                                        Margin received                                                        7,303,338.86
                                        Received aloanfromShenzhenGasGroupCo.,Ltd.           170,000,000.00
                        Total                          170,000,000.00            7,303,338.86
    
    
    (41) Supplementary information to statement of cash flow
    
    1. Supplementary information to statement of cash flow
    
                                  Supplementary information                Currentamount      Last-periodamount
                                              1.Netprofitadjustedtocashflowofoperationactivities
                                              Netprofit                                         52,251,672.02      -33,069,503.64
                                              Add:Assetsimpairmentprovision
                                           Depreciationoffixedassets                          25,805,403.49       44,801,828.95
                                           Amortizationofintangibleassets                         485,983.65        1,232,100.02
                                           Amortizationoflong-termdeferredexpenses                 125,971.38          22,548.81
                                           Lossfrom disposing fixed assets, intangible assets and        -828,535.66         417,926.32
                                              otherlong-term assets(income)
                                           Lossonretirementoffixedassets
                                              Financialexpense(income)                              18,800,827.68       23,542,971.21
                                              Investmentloss(income)                               33,291,259.12         677,552.37
                                              Decreaseofdeferredincometaxasset((increase)
                                           Decreaseofinventory(increase)                       16,132,545.39         278,786.02
                                           Decreaseofoperatingreceivable accounts(increase)          -18,919,356.88        4,043,360.79
                                           Increaseofoperatingpayableaccounts(decrease)           -57,209,208.73       14,269,806.04
                                              Netcashflowarisingfromoperatingactivities                 69,936,561.46       56,217,376.89
                                              2.Material investment and financing not involved in cash
                                              flow
                                              Debtcapitalization
                                            Convertible companybondduewithinoneyear
                                            Fixed assetsacquiredunderfinanceleases
                                              3.Netchangeofcashandcashequivalents:
                                              Closingbalanceofcashandcashequivalent                 1,084,903,966.81    1,029,883,840.43
                                              Less:Openingbalanceofcashandcashequivalent              771,490,000.96      914,956,611.70
                                              Netincreasing ofcashandcashequivalents                  313,413,965.85      114,927,228.73
    
    
    2. Composition of cash and cash equivalent
    
                          Item                        Bookbalance      Year-endbalanceoflast
                             year
                                             I.Cash                                           324,903,966.81        381,490,000.96
                                             Including:Cashonhand                                   65,138.88           84,307.60
                                            Banksavingsavailableforpaymentneeded                  317,274,657.16        381,339,856.01
                                            Othermonetarycapitalavailableforpaymentneeded              7,564,170.77           65,837.35
                                             Accountduefromcentralbankavailableforpayment
                                             Amountduefrombanks
                                             Amountcallloanstobanks
                                             II.Cashequivalent                                   760,000,000.00        390,000,000.00
                                             including:bondinvestment duewithinthreemonths
                                             III.Balanceofcashandcashequivalent atperiod-end           1,084,903,966.81        771,490,000.96
                                            Including:Cash andcashequivalent ofthe parentcompany
                                             orsubsidiaries withuserestricted
    
    
    (42) Foreign currency
    
    1. Foreign currency
    
        Balanceofforeign                  BalanceofRMBconverted
                  Item            currencyatperiod-end    Conversionrate        atperiod-end
                           Monetaryfund
                           Including:USD                        840,153.18          7.08            5,947,607.19
                      HKD                            976.71          7.96               7,775.59
                      Euro                          466,204.75          0.91              425,833.72
                      SGD                           5,558.03          5.08               28,242.02
    
    
    VI. Change of consolidate scope
    
    1. Disposal of subsidiary
    
                  Equity     Equity     Timepoint   Basis      for  Consolidated
            Nameof    Equitydisposal   disposal   disposal   of loss of  determining   the  statement   level
            subsidiary       price       ratio     method   control     time point of loss  corresponding  to
                   (%)                        ofcontrol        disposal price and
                                                            disposal
                                                            investment enjoys
                                                            the difference  of
                                                            thesubsidiary’s net
                                                            assetshare
                                              Thesalehasbeen
                                              approved bythe
                                             general meeting of
            Shen Nan                                           shareholders, more
           Dian                                              than50%ofthe
             (Dongguan)                       Assignment             disposalpayment
            Weimei    104,980,000.00    70%      by      2020/4/30   hasbeenreceived,    33,534,881.55
            Electric                        agreement             theequitytransfer
             PowerCo.,                                            procedureshave
          Ltd                                               beencompleted,
                                              and theboardof
                                              directorshasbeen
                                                completely
                                                 replaced
    
    
    Cont.
    
                                                              Amountofother
                   Book    Fair  value   Gains   or  Determination     comprehensive
       Proportion of  value  of  of     the  losses       method and main  income  related
     remaining      remaining  remaining    arising from  assumptions ofthe  to  the  equity
             sNubasmideiaorfyequity  on  the  equity on  equity   on  trheecalculatingfair value of the  ithnevestmenortiginoafl
     day of loss of  the date of  the date of  remaining    remaining  equity  subsidiary  that
     control(%)     loss   of  loss    of  equity atfair  on the date of loss  transferred   to
                  control    control      value       ofcontrol        the  investment
                                                              profitandloss
             ShDeniaNnan
              (DWonegimgueain)  N/A        N/A       N/A        N/A          N/A           N/A
             PoEwleecrtrCico.,
           Ltd
    
    
    VII. Equity in other entity
    
    (1) Equity in subsidiaries
    
    1. Composition of the Group
    
             Subsidiary      Main    Registration    Business    Shareholdingratio          Acquiredway
      operation      place       nature           (%)
    
    
    place
    
                                     Directly  Indirectly
              Shenzhen      Shenzhen    Shenzhen     Trading
              Server (note)                                     50                    Establishment
              New Power    Shenzhen    Shenzhen     Power
                          generation      75       25           Establishment
              Zhongshan                          Power
              Electric       Zhongshan   Zhongshan    generation      55       25           Establishment
              Power
              Engineering    Shenzhen    Shenzhen     Engineering
              Company                          consulting      60       40           Establishment
              Environment
              Protection     Shenzhen    Shenzhen     Engineering     70       30           Establishment
              Company
              Singapore     Singapore   Singapore    Trading
              Company                                       100                   Establishment
              Shenzhen      Zhongshan   Zhongshan    Storage
              Storage                                                 80           Establishment
                          Exp.&imp.                          Under
              Syndisome     HongKong  HongKong   Trading                100           different
                                                            control
    
    
    Note : The Company holds 50% equity of Shenzhen Server, and holds a majority of voting rights in the company's
    
    board of directors at the same time. Therefore, the Company has substantive control over it, and it is included in
    
    the consolidation scope of the consolidated financial statements.
    
    2. Important non-wholly-owned subsidiary
    
                       Gains/losses        Dividend
     Share-holding ratio     attributableto      announced to    Endingequityof
                 Subsidiary                                       distributefor
       ofminority(%)     minorityinthe     minorityinthe       minority
                         Period           Period
                     Zhongshan    Electric            20.00       2,788,481.06                   -16,079,276.55
                     Power
    
    
    3. Main finance of the important non-wholly-owned subsidiary
    
                           EndingBalance                                        Year-endbalanceoflastyear
            Subsidiar                                    Non-cu
      Current  Non-curr    Total    Current            Total     Current    Non-curren             Current    Non-curren    Totalyrrent                               Totalassets
      assets   entassets    assets    liability   liability   liability     assets      tassets               liability    tliability    liability
            Zhongsha   78,383,34  517,641,21  596,024,56   670,872,28   5,548,66  676,420,94  67,810,211.56   529,800,968.  597,611,180.0   686,312,294.   5,637,673.36   691,949,968.
            n Electric      8.34      4.85      3.19      1.50     4.49      5.99                  49         5        78                  14
            Power
                            Currentamount                                         Last-yearamount
               Subsidiary                                   Total      Cashflowfrom                                Total      CashflowfromOperation
     Operation Income    Netprofit    comprehensive     operation       Income       Netprofit     comprehensive     operation
                                  income        activity                                 income        activity
                  Zhongshan Electric    85,765,596.92   13,942,405.29   13,942,405.29   31,248,237.34   66,364,051.74   -11,987,240.04   -11,987,240.04   30,421,274.57
                  Power
    
    
    (2) Equity in joint venture and cooperative enterprise
    
    1. Major joint venture and cooperative enterprise
    
                                     Share-holdingratio(%)    Accounting
        Main                                               treatmenton
            Name       operation    Registered    Business                        investment for
                   place      nature     Directly    Indirectly   jointventureandplace
                                                          cooperative
                                                           enterprise
               Huidong Server    Huizhou     Huizhou      Wharf             40.00       Equitymethod
                            operation
    
    
    2. Financial summary for un-important joint venture or cooperative enterprise
    
             Ending Balance           Year-endbalanceof
             /Current amount           lastyear/Last-year
                                       amount
                             Jointventure:
                             Totalbookvalueoftheinvestment              14,375,580.60             14,619,203.03
                             Totalnumbersmeasuredby
                             share-holdingratio
                             —Netprofit                              -243,622.43               -677,552.37
                             —Othercomprehensive income
                             —Totalcomprehensive income                  -243,622.43               -677,552.37
    
    
    VIII. Risks relating to financial instruments
    
    The Company's main financial instruments include equity investment, borrowings, accounts receivable, accounts
    
    payable, etc., see details of each financial instrument in related items of this annotation V. The risks associated with
    
    these financial instruments and the risk management policies adopted by the Company to reduce these risks are
    
    described as below. The management of the Company manages and monitors these risk exposures to ensure that
    
    the above risks are controlled within the limit range.
    
    The Company uses the sensitivity analysis technique to analyze the possible impact of the risk variable on the
    
    current profit and loss or the shareholders' equity. Since any risk variable rarely changes in isolation, and the
    
    correlation existing among the variables shall have a significant effect on the final amount of changes about a
    
    certain risk variable, therefore, the following proceeds by assuming that the change in each variable is independent.
    
    The objective of the Company's risk management is to gain a proper balance between risks and profits, minimize
    
    the negative impact of risks on the Company's operating results, and maximize the benefits of shareholders and
    
    other equity investors. Based on the risk management objective, the basic strategy of the Company's risk
    
    management is to identify and analyze the risks faced by the Company, establish appropriate bottom line to bear
    
    the risks and carry out risk management, and timely and reliably supervise the risks so as to control the risks within
    
    the limit range.
    
    (I) Credit risk
    
    On 30 June 2020, the maximum credit risk exposure that could cause financial loss to the Company is mainly due
    
    to the failure of the other party to fulfill the obligations, resulting in losses to the Company's financial assets,
    
    including:
    
    Carrying value of financial assets recognized in consolidated balance sheet. As for financial instrument at fair
    
    value, carrying value reflects its risk exposure, while not the largest risk exposure. The largest risk exposure will
    
    vary as fair value changes in future.
    
    In order to bring down credit risk, the Company establishes a special working team to take charge of determining
    
    credit limit, making credit approval and implementing other monitor procedures to ensure necessary measures are
    
    adopted to collect overdue debts. In addition, recovery of each single account receivable is reviewed on each
    
    balance sheet date to ensure adequate bad debt provision is made for unrecoverable amount. Therefore,
    
    management believes that the Company has substantially reduced the credit risks it assumes.
    
    Our current capital is deposited with highly-rated banks, thus credit risk arising from current capital is relatively
    
    low.
    
    (II) Market risk
    
    Market risks of financial instruments refers to the risks that the fair value or future cash flow of
    
    such financial instruments will fluctuate due to the changes in market prices, including FX risks,
    
    interest rate risks and other price risks.
    
    1. Interest rate risk
    
    The Company's cash flow change risk of financial instruments arising from interest rate change is mainly related to
    
    the floating interest rate bank loans (see details in Note V (16);
    
    Interest rate risk sensitivity analysis:
    
    The interest rate risk sensitivity analysis is based on the following assumptions:
    
    Changes in market interest rates affect the interest income or expense of financial instruments with
    
    variable interest rate; For financial instruments with fixed rate by fair value measurement, the
    
    changes in market interest rates only affect their interest income or expense; For derivative
    
    financial instruments designated as hedging instruments, the changes in market interest rates affect
    
    their fair value, and all interest rate hedging prediction is highly effective; Calculate the changes in
    
    fair value of derivative financial instruments and other financial assets and liabilities by using the
    
    cash flow discount method at the market interest rate at the balance sheet date.
    
    On the basis of above assumptions, in case that other variables keep unchanged, the pre-tax effect of possible
    
    reasonable changes in interest rates on current profits and losses and shareholders' equity is as follows:
    
                   Currentyear                          Lastyear
          Rate                                                            Impacton
            changes   Impactonprofit   Impactonshareholders’ equity    Impactonprofit   shareholders’equity
             5%           878,221.61                 800,563.02     1,177,083.56       1,139,067.58
             increased
                   Currentyear                          Lastyear
          Rate                                                            Impacton
            changes   Impactonprofit   Impactonshareholders’ equity    Impactonprofit   shareholders’equity
             5%           -878,221.61                 -800,563.02    -1,177,083.56       -1,139,067.58
             decreased
    
    
    2. FX risks
    
    Foreign exchange risk refers to the risk of losses due to exchange rate changes. The Company’s foreign exchange
    
    risk is mainly related to the US dollar. On 30 June 2020, except for the balance of foreign currency monetary items
    
    of 42. Foreign currency monetary in Note V, the assets and liabilities of the Company are RMB balance. The
    
    foreign exchange risk arising from the assets and liabilities of such foreign currency balances may have an impact
    
    on the Company's operating results.
    
    (III) Liquidity risk
    
    In managing the liquidity risk, the Company keeps the cash and cash equivalents that the management considers to
    
    be sufficient and supervise them so as to meet the Company's operating needs and reduce the impact of
    
    fluctuations in cash flows. The Company’s management monitors the use of bank loans and ensures to comply
    
    with the loan agreement.
    
    The Company uses bank loans as the main source of funds.
    
    IX. Related party and related party transactions
    
    (1) Parent company of the Group
    
    Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't form a holding
    
    relationship of the Company through any methods. The Company has no parent company.
    
    (2) Subsidiaries of the Company
    
    See details in Note VII. Equity in other entity
    
    (3) Joint venture and affiliated enterprise of the Group
    
    See details in Note VII. Equity in other entity
    
    (4) Other related party
    
    Other related party Relationship with the Company
    
    Shenzhen Energy Group Co., Ltd. (“Shenzhen Energy Legal person holding more than 5% of the company's
    
    Group” for short) shares
    
    Shenzhen Guangju Industrial Co., Ltd. Legal person holding more than 5% of the company's
    
    shares
    
    HONG KONG NAM HOI (INTERNATIONAL) Legal person holding more than 5% of the company's
    
    LTD. shares
    
    Shenzhen Capital Co., Ltd. Legal person indirectly holding more than 5% of the
    
    company's shares through Shenzhen Energy Group
    
    Other related party Relationship with the Company
    
    Wanhe Securities Co., Ltd. Other related parties
    
    Shenzhen Energy Group Co., Ltd. Other related parties
    
    Fuel branch of Shenzhen Energy Group Co., Ltd. Other related parties
    
    Shenzhen Energy and Gas Investment Holding Co., Other related parties
    
    Ltd.
    
    Directors, supervisors and senior management of the Key managers
    
    company
    
    (5) Receivable/payable items of related parties
    
    1. Receivable
    
                            EndingBalance         Year-endbalanceoflastyear
            Item          Relatedparty      Bookbalance    Baddebt     Bookbalance     Baddebt
                                    provision                  provision
                Other account
                receivable
     HuidongServer         8,432,761.42                9,060,361.44
     HuidongServer        13,243,635.56               13,114,012.69
     managedaccount
                Total                             21,676,396.98               22,174,374.13
    
    
    X. Government subsidies
    
    (1) Government subsidies related to assets
    
                           Theamountincludedincurrent   Itemofthe
                           gain/loss orlossresultingfrom     amount
                              relatedcostsoff-setting      includedin
                   Type              Amount    Balancesheet                           current
                                                   gain/lossor
                              Current     Lastamount  lossresulting
                              amount                fromrelated
                                                     costs
    
    
    off-setting
    
                           Theamountincludedincurrent   Itemofthe
                           gain/loss orlossresultingfrom     amount
                              relatedcostsoff-setting      includedin
                                                    current
                   Type              Amount    Balancesheet                          gain/lossor
                              Current     Lastamount  lossresulting
                              amount                fromrelated
                                                     costs
                                                   off-setting
                              Subsidyforlow-nitrogen           43,032,780.  Deferred         261,374.29   251,403.55  Other
                              transformation                       00  income                              income
                              Information                    520,000.00  Deferred          30,588.24    30,588.24  Other
                              construction                             income                              income
                              Supportfundofrecyclingeconomy    10,000,000.  Deferred         127,500.00   127,500.00  Other
                              forsludgedrying                      00  income                              income
                              Treasurysubsidiesforsludgedrying   5,100,000.0  Deferred         323,501.46   323,501.46  Other
             0  income                              income
                              Specialfundsforenergy           1,530,000.0  Deferred          57,018.66    57,018.66  Other
                              conservationandemissionreduction          0  income                              income
                              Fundedofenergyefficiency         518,400.00  Deferred          17,280.00    17,280.00  Other
                              improvementforelectricmachine               income                              income
                              Subsidyforqualitypromotionofthe   70,977,273.  Deferred        2,365,909.08  1,201,651.54  Other
                              airenvironment inShenzhen               00  income                              income
                   Total             131,678,453                3,183,171.73  2,008,943.45
           .00
    
    
    (2) Government subsidies related to income
    
               The amountincludedin    Itemoftheamount
               current gain/lossorloss    includedincurrent
              resulting fromrelatedcosts    gain/lossorloss
                      Type                Amount         off-setting          resultingfrom
                Current      Last       relatedcosts
                amount     amount       off-setting
               The amountincludedin    Itemoftheamount
               current gain/lossorloss    includedincurrent
              resulting fromrelatedcosts    gain/lossorloss
                      Type                Amount         off-setting          resultingfrom
                Current      Last       relatedcosts
                amount     amount       off-setting
                                    VATrefund                          1,134,065.   1,134,065.1  1,753,212.         Other
           17         7        01         income
                                    eUnnteermpprilsoeysmentinsurance refund of affected  4,171,581.   4,171,581.2                  Other
           28         8                  income
                                    pSruobjseicdtisesfor further steady growth of funding  100,000.00   100,000.00                  Other
                                         income
                                    cOofmficpeaniehsousingsupport  funds  for  listed                      1,000,00000.       Other
                                         income
                                    Encourage SMEstoscaleuprewards                                            Other200,000.00
                                         income
                                    Total                              455,405,646. 55,405,646.4  20,1953,212.
    
    
    XI. Commitment and Contingency
    
    (1) Major Commitment
    
    (N2i)l Contingency
    
    Nil
    
    XII. Events Occurring after the Balance Sheet Date
    
    On March 5 and March 23, 2020, the Eleventh Extraordinary Meeting of the Company’s Eighth
    
    Board of Directors and the 2020 First Extraordinary General Meeting of Shareholders under the
    
    name of Shenzhen Nanshan Power Co., Ltd (hereinafter referred to as the Company) respectively
    
    reviewed and approved the Proposal on the Agreement to Transfer 70% Equity of Shen Nan Dian
    
    (Dongguan) Weimei Electric Power Co., Ltd.", agreeing to transfer 70% equity of Shen Nan Dian
    
    Dongguan Company directly and indirectly held by the company to Shenzhen Gas Group Co., Ltd.
    
    (hereinafter referred to as Shenzhen Gas) at a total price of 104.98 million yuan. According to the
    
    equity transfer agreement signed between the company and Shenzhen Gas, after the company
    
    received 40% of equity transfer fund, i.e. 59.99 million yuan, of Shen Nan Dian Dongguan
    
    Company from Shenzhen Gas, Shen Nan Dian Dongguan Company has completed the industrial
    
    and commercial change registration on April 9, 2020. Since then, the total loan of 300 million
    
    yuan applied by Shen Nan Dian Dongguan Company from Bank of Ningbo Shenzhen Branch and
    
    Industrial Bank Shenzhen Branch has been repaid, and the joint guarantee and liability guarantee
    
    provided by the company for the above loan of Shen Nan Dian Dongguan Company has been
    
    lifted; Shen Nan Dian Dongguan Company has fully repaid the principal and interest of the
    
    company's 180 million yuan of financial assistance.
    
    On July 2, 2020, the company's wholly-owned subsidiary Hong Kong Syndisome Co., Ltd.
    
    received the remaining 30% equity transfer payment of 44.99 million yuan from Shenzhen Gas.
    
    So far, the company has received all the equity transfer payments paid by Shenzhen Gas, and the
    
    transfer of 70% equity of Shen Nan Dian Dongguan Company was completed.
    
    XIII. Other important events
    
    (1) Segment information
    
    1. Determining basis and accounting policies of reportable segments
    
    According to the Group's internal organization structure, management requirements and internal reporting system, the
    
    Group's business is divided into three operating segments including power and heat supply, fuel oil trade and other
    
    business, the Group's management periodically evaluates the operating results of these segments so as to determine
    
    the allocation of resources and assess their performances.
    
    Segmental reporting information is disclosed in accordance with the accounting policies and measurement standards
    
    adopted by each segment for reporting to the management, the measurement basis keep pace with the accounting and
    
    measurement basis used for preparing financial statements.
    
    2. Financial information of the reportable segment
    
             Item       Powersupply&heating   Fueltrading     Other     Fueltrading      Total
                  Operationincome           492,269,718.83     535,619.08   46,696,529.61    21,351,261.31   518,150,606.21
                  Operationcost             443,625,551.12     98,068.80   36,294,452.93    26,908,636.71   453,109,436.14
                  Totalassets              3,739,501,185.55  121,784,714.52  346,595,525.59  1,156,333,540.24  3,051,547,885.42
                  Totalliabilities            1,751,424,593.52   29,386,981.49   44,802,294.92   846,135,389.63   979,478,480.30
    
    
    XIV. Note to main items of financial statements of the Company
    
    (1) Account receivable
    
    1. Age analysis
    
    Account age Book balance Year-end balance of last year
    
                   Accountage                Bookbalance           Year-endbalanceoflastyear
                        Within oneyear                      61,626,629.43                  31,821,804.69
                        1 to2years
                        2 to3years
                        Over 3years                            2,889.00                      2,889.00
                        Subtotal                           61,629,518.43                  31,824,693.69
                        Less: Baddebtprovision
                Total                     61,629,518.43                  31,824,693.69
    
    
    2. According to accrual method for bad debts
    
    Book balance
    
             Bookbalance              Baddebtprovision
               Category                                              Accrual
         Amount       Proportion      Amount      proportion    Bookvalue
                       (%)                     (%)
                   With       single
                   provision  for  bad
                   debts
                   With baddebt
                   provision accrual
                   based onsimilar
                   credit risk
                   characteristics ofa
                   portfolio              61,629,518.43       100.00                          61,629,518.43
              Total           61,629,518.43       100.00                          61,629,518.43
    
    
    Year-end balance of last year
    
              Bookbalance            Baddebtprovision
             Category                        P                      A         Book
            Amou  roportion         Amount    ccrual        value
          nt         (%)                   proportion
                                           (%)
                      With single provision for
    
    
    Year-end balance of last year
    
              Bookbalance            Baddebtprovision
             Category                        P                      A         Book
            Amou  roportion         Amount    ccrual        value
          nt         (%)                   proportion
                                           (%)
                      bad debts
                      With baddebtprovision
                      accrual basedonsimilar     31,824,693.69       100                           31,824,693.69
                      credit riskcharacteristics
                      of aportfolio
            Total       31,824,693.69       100                           31,824,693.69
    
    
    3. No account receivable with single provision for bad debts
    
    Provision for bad debts by portfolio:
    
    Provision by portfolio:
    
    Book balance
    
            Name                                Baddebtprovision         Accrualproportion (%)
            Accountreceivable
               With  minor            61,629,518.43
               creditrisk
    
    
    Recognition standards and specifications on provisions by portfolio:
    
    The account receivable with provision for bad debts by portfolio mainly refers to the amount from
    
    Shenzhen Power Supply Bureau Co., Ltd etc., which has minor credit risk and no provision for
    
    bad debts.
    
    4. No provision for bad debts in the current period
    
    5. Top 5 receivables at ending balance by arrears party
    
    Total period-end balance of top five receivables by arrears party amounting to 61,629,518.43 Yuan, takes 100
    
    percent of the total account receivable at period-end, bad debt provision accrual correspondingly at period-end
    
    amounting as 0 Yuan
    
    6. No accounts receivable terminated recognition due to transfer of financial assets at the
    
    period
    
    (2) Other account receivable
    
                   Item                    EndingBalance         Lastyear-endbalance
                               Interestreceivable
                               Dividendreceivable
                   Item                    EndingBalance         Lastyear-endbalance
                               Otheraccountreceivable                 660,835,522.34              873,861,071.55
                    Total                    660,835,522.34              873,861,071.55
    
    
    1. Other account receivable
    
    (1) Disclosure by age
    
                    Accountage                  EndingBalance            Lastyear-endbalance
                          Within oneyear                        181,599,583.37              239,265,595.88
                          1 to2years                           262,147,773.68               89,264,291.59
                          2 to3years                           136,709,590.00              100,729,690.00
                          Over 3years                           107,708,218.73              471,931,137.52
                          Subtotal                              688,165,165.78              901,190,714.99
                          Less: Baddebtprovision                    27,329,643.44               27,329,643.44
                 Total                       660,835,522.34              873,861,071.55
    
    
    (2) Disclosure by category
    
    Book balance
    
            Bookbalance             Baddebtprovision
               Category                                             Accrual
         Amount      Proportion     Amount      proportion     Bookvalue
                       (%)                    (%)
                   With single
                   provision forbad         28,023,159.22       4.07   27,329,643.44       97.53      693,515.78
                   debts
                   With baddebt
                   provision accrual
                   based onsimilar        660,142,006.56      95.93                          660,142,006.56
                   credit risk
                   characteristics ofa
                   portfolio
                   Total                688,165,165.78     100.00   27,329,643.44        3.97   660,835,522.34
    
    
    Category Year-end balance of last year
    
            Bookbalance            Baddebtprovision
                    Proportion                Accrual      Bookvalue
         Amount        (%)       Amount     proportion
                                            (%)
                   With singleprovision      28,023,159.22      3.11   27,329,643.44     97.53        693,515.78
                   for baddebts
                   With baddebt
                   provision accrual
                   based onsimilar
                   credit risk
                   characteristics ofa
                   portfolio              873,167,555.77     96.89                           873,167,555.77
              Total          901,190,714.99     100.00   27,329,643.44      3.03      873,861,071.55
    
    
    With single provision for bad debts:
    
    Name Book amount Bad debt provision AccBruooalkpbraolpaonrcteion (%) Causes
    
             Huiyang    14,311,626.70      14,311,626.70             100.00  Un-collectable inexcepted
             Kangtai
             Industrial
             Company
             Individual   2,470,039.76      2,470,039.76             100.00  Un-collectable inexcepted
             incometax
             Dormitory   2,083,698.16      1,736,004.16              83.31  Someun-collectable inexcepted
             amount
             receivable
             Personal    7,498,997.87      7,498,997.87             100.00  Un-collectable inexcepted
             receivables
             Deposit     1,658,796.73      1,312,974.95              79.15  Someun-collectable inexcepted
             receivable
           Total    28,023,159.22     27,329,643.44              97.53
    
    
    Provision for bad debts by portfolio:
    
    Provision by portfolio:
    
    Name Book balance
    
     Other accountreceivable     Baddebtprovision           Accrualproportion (%)
                  With  minor credit         660,142,006.56
                  risk
    
    
    Recognition standards and specifications on provisions by portfolio:
    
    The Company believes that the credit risk of other account receivable with no impairment in the single assessment
    
    is relatively low, no provision for bad debts, unless there is evidence that a certain other account receivable is at
    
    greater credit risk.
    
    (3) Accrual of bad debt provision
    
        Phases I         PhasesII       PhasesIII
                    Expected credit   Expectedcredit
                     lossesforthe     lossesforthe
                    Bad debtprovision      lEoxsspeesctoevdecrrneedxittentireduration    entireduration       Total
        12months      (withoutcredit     (withcredit
                      impairment      impairment
                      occurred)       occurred)
                       Balanceatyear-begin                                   27,329,643.44     27,329,643.44
                       Book balance  of  other
                       account  receivable   at
                       year-begin
                       ——TurntophaseII
                       ——TurntophaseIII
                       ——ReturntoPhaseII
                       ——ReturntoPhaseI
                       Currentaccrual
                       Currentswitchback
                       Rewriteintheperiod
                       Write-offintheperiod
                       Otherchanges
                       Bookbalance                                         27,329,643.44     27,329,643.44
    
    
    (4) No provision for bad debts in the current period
    
    (5) No other accounts receivable that had actually written off in the period
    
    (6) By nature
    
                  Nature                Endingbookbalance          Bookbalanceatlastyear-end
                           Dormitoryreceivables                          2,083,698.16                  2,083,698.16
                           Depositreceivable                            1,738,810.86                  1,658,796.73
                           Relatedpartytransactions                      656,170,887.94                 866,978,723.13
                           Personalaccount                            10,008,932.63                 10,008,932.63
                           Other                                    18,162,836.19                 20,460,564.34
                  Total                         688,165,165.78                 901,190,714.99
    
    
    (7) Top 5 other account receivables at period-end listed by arrears party
    
      Relationship                          Proportionin      Ending
                    Name ofthecompany      withthe     EndingBalance    Age      totalother     balanceofbad
       Company                            account      debtprovision
                                        receivable(%)
                     Shen    Nan    Dian   Intercourse     648,154,459.86  0-3year,          94.19
                     (Zhongshan)    Electric  funds                      Over3
                     Power Co.,Ltd.                                  years
                     Huiyang County Kangtai   Other          14,311,626.70   Over3            2.08   14,311,626.70
                     Industrial Company                                years
                     Shenzhen  Shennandian   Intercourse       4,204,379.85  Within1           0.61
                     Turbine    Engineering  funds                      year
                     Technology Co.,Ltd.
                     Shenzhen   Shen  Nan  Intercourse        3,812,048.23  Within1           0.55
                     Dian     Environment  funds                      year
                     Protection Co.,Ltd.
                     Dormitory receivables     Intercourse       2,083,698.16   Over3            0.30   1,736,004.16
     funds                       years
               Total                      672,566,212.80                  97.73  16,047,630.86
    
    
    (8) No receivables involving government subsidies
    
    (9) No other receivables terminated recognition due to transfer of financial assets
    
    (3) Long-term equity investment
    
    Item Ending Balance Last year-end balance
    
       Book     Impairment   Bookvalue   Bookbalance    Impairment     Bookvalue
       balance     provision                            provision
            Investment  576,663,800.00  347,745,035.00  228,918,765.00    691,982,849.76    388,641,684.76    303,341,165.00
            to
            subsidiary
            Investment
            to joint
            venture
            and
            affiliate
            enterprise
          Total    576,663,800.00  347,745,035.00  228,918,765.00    691,982,849.76    388,641,684.76    303,341,165.00
    
    
    1. Investment to subsidiary
    
                  Increase                          Impairment    Period-end
              Theinvested   Lastyear-end    inthe   Decreaseinthe     Ending     provision    balanceof
           entity        balance      period      period        Balance     accrualin    depreciation
                                                  the Period     reserves
              Shenzhen      26,650,000.00                      26,650,000.00
              Server
              NewPower     71,270,000.00                      71,270,000.00
              Company
              Zhongshan     410,740,000.00                      410,740,000.00            347,745,035.00
              Electric
              Power
              Engineering      6,000,000.00                       6,000,000.00
              Company
              Weimei       115,319,049.76         115,319,049.76
              Electric
              Power
              Singapore       6,703,800.00                       6,703,800.00
              Company
                  Increase                          Impairment    Period-end
              Theinvested   Lastyear-end    inthe   Decreaseinthe     Ending     provision    balanceof
           entity        balance      period      period        Balance     accrualin    depreciation
                                                  the Period     reserves
              Environment    55,300,000.00                      55,300,000.00
              Protection
              Company
           Total      691,982,849.76          115,319,049.76  576,663,800.00            347,745,035.00
    
    
    (4) Operation revenue/operation cost
    
              Current amount                   Last-periodamount
              Item
         Revenue           Cost           Revenue           Cost
                    Mainbusiness          118,119,714.73     133,626,167.32     127,282,753.58     166,390,507.99
                    Otherbusiness           27,647,300.61       4,310,751.77      38,231,297.65       5,937,627.54
              Total           145,767,015.34     137,936,919.09     165,514,051.23     172,328,135.53
    
    
    XV. Supplementary information
    
    (1) Statement of non-recurring gains/losses
    
                          Item                           Amount              Note
                                            Gains andlossesfromdisposalofnon-current assets                34,363,417.21
                                            Taxrefundormitigateduetoexamination-and-approval
                                            beyond powerorwithoutofficialapprovaldocument
                                            Governmental   subsidy   reckoned   into   current            7,621,471.38
                                            gains/losses(not including the subsidy enjoyed in quota or
                                            ration, which are closely relevant to enterprise’s normal
                                            business
                                            Capital occupancy expense, collected from non-financial
                                            enterprises andrecordedincurrentgainsandlosses
                                            Income from the exceeding part between investment cost
                                            of the Company paid for obtaining subsidiaries, associates
                                            and joint-ventures and recognizable net assets fair value
                                            attributable totheCompanywhenacquiringtheinvestment
                                            Gains andlossesfromexchangeofnon-monetary assets
                                            Gains and losses from assets under trusted investment or
                          Item                           Amount              Note
                                            management
                                            Various provision for impairment of assets withdrew due to
                                            act ofGod,suchasnaturaldisaster
                                            Gains andlossesfromdebtrestructuring
                                            Enterprise restructuring costs,suchasexpensesforstaff
                                            placement, integration costs,etc
                                            Gains and losses of the part arising from transaction in
                                            which priceisnotfairandexceedingfairvalue
                                            Current net gains and losses occurred from period-begin to
                                            combination day by subsidiaries resulting from business
                                            combination undercommoncontrol
                                            Gains  and losses arising from contingent proceedings
                                            irrelevant tonormaloperationoftheCompany
                                            Except  for effective hedge business relevant to normal
                                            operation oftheCompany,gains andlosses arising fromfair
                                            value  change of tradable financial assets and tradable
                                            financial liabilities, and investment income from disposal of
                                            tradable financial assets, tradable financial liabilities and
                                            financial assetsavailableforsale
                                            Switch-back  of provision  of  impairment  of  account
                                            receivable whicharetreatedwithseparatedepreciation test
                                            Gains andlossesobtainedfromexternal trustedloans
                                            Gains  and losses arising from change of fair value of
                                            investment real estate whose follow-up measurement are
                                            conducted accordingtofairvaluepattern
                                            Affect  on current gains and losses after an one-time
                                            adjustment  according  to  requirements  of  laws  and
                                            regulations regardingtotaxationandaccounting
                                            Trust feeobtainedfromtrustoperation
                                            Other non-operating income and expenditure except forthe
                                            aforementioned items                                       -6,356.16
                                            Other gainsandlossesitemscomplyingwithdefinition for
                                            non-recurring gainsandlosses
                                            Impactonincometax                                      -67,935.50
                                            Impactonminorityshareholders’equity                          -19,828.93
                          Item                           Amount              Note
                          Total                             41,890,768.00
    
    
    (2) ROE and EPS
    
                          Profit inthePeriod           WeightedaverageROE             EPS
           (%))           BasicEPS      DilutedEPS
                                   Net profit attributable to shareholders of the               2.57            0.09          0.09
                                   listed company
                                   Net profit attributable to shareholders of the               0.51            0.02          0.02
                                   listed company after deducting non-recurring
                                   gains andlosses

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