China Suntien Green Energy Corporation Limited(600956) : contents of annual audit report of China Suntien Green Energy Corporation Limited(600956) 2021
Page audit report 1 – 6 audited financial statements
Consolidated balance sheet 7 – 9 consolidated income statement 10
Consolidated statement of changes in shareholders’ equity 11 – 12 consolidated cash flow statement 13 – 14 company balance sheet 15 – 16 company income statement 17
Statement of changes in shareholders’ equity 18 – 19 cash flow statement 20 – 21 notes to financial statements 22 – 209 supplementary information
1. Detailed statement of non recurring gains and losses 1
2. Return on net assets and earnings per share 2
Notes to financial statements
2021 unit: RMB
1、 Basic information China Suntien Green Energy Corporation Limited(600956) (“the company”) is a joint stock limited company established in China by the sponsor shareholder Hebei Construction Investment Group Co., Ltd. (hereinafter referred to as “Hebei Construction Investment”) with its new energy and natural gas assets and Hebei Construction Investment Water Investment Co., Ltd. (a wholly-owned subsidiary of Hebei Construction Investment, hereinafter referred to as “construction investment water”). The registered office of the company is located at No. 9, Yuhua West Road, Shijiazhuang City, Hebei Province, China. On October 13, 2010, the company made an initial public offering of shares and was listed on the main board of the stock exchange of Hong Kong Limited (“SEHK”), issuing a total of 1076900000 H shares at HK $2.66 per share for sale to Hong Kong and overseas investors. In October of the same year, after exercising the over allotment right, the company issued a total of 161535000 H shares at HK $2.66 per share. As of December 31, 2010, the total number of shares of the company was about 3238435000, including 187615600 domestic shares and 1362279000 H shares. Hebei construction investment directly and indirectly holds all domestic shares, accounting for 57.9% of the total shares, and is the controlling shareholder of the company. On January 28, 2014, the company successfully placed 476725396 H shares, increased the registered capital by RMB 476725396 and raised about HK $1597030077. After the completion of the capital increase by issuing H shares, the total issued share capital of the company is 3715160396 yuan, which is divided into 3715160396 shares with a par value of 1 yuan per share. The direct and indirect shareholding ratio of Hebei construction investment is 50.5%, and the total shareholding ratio of H-share shareholders is 49.5%. In July 2015, with the consent of the state owned assets supervision and Administration Commission of the State Council, Hebei Construction Investment and construction investment water signed an agreement to transfer the 375231200 shares of the company held by construction investment water to Hebei Construction Investment free of charge. After the equity transfer, the direct shareholding ratio of Hebei construction investment is 50.5%, and the total shareholding ratio of H-share shareholders is 49.5%. On May 28, 2020, the company was approved by the document of China Securities Regulatory Commission (zjxk [2020] No. 1012) to offer shares to the public for the first time in Shanghai Stock Exchange, and issued a total of 13475000000 ordinary shares (A shares) at RMB 3.18 per share, raising a total of RMB 42850500000. On August 19, 2021, the company issued 337182677 A-share non-public to specific objects with the approval of China Securities Regulatory Commission zjxk [2021] No. 2730. The issuing price was 13.63 yuan per share and the total amount of raised funds was 459579988751 yuan. As of December 31, 2021, the total issued share capital of the company was RMB 418709307300, with Hebei construction investment holding 49.17%, H-share shareholders holding 43.92% and A-share shareholders holding 6.91%. The company and its subsidiaries (collectively referred to as “the group”) are mainly engaged in the investment, development, management and operation of wind power and Cecep Solar Energy Co.Ltd(000591) power generation, as well as the sales of natural gas and natural gas appliances, as well as the connection and construction of natural gas pipelines. The parent company and ultimate parent company of the company is Hebei Construction Investment, a Chinese state-owned enterprise. The financial statements were approved by the board of directors of the company on March 23, 2022. The consolidation scope of the consolidated financial statements is determined on the basis of control. See note VI for the changes in this year.
Notes to financial statements (Continued)
2021 unit: RMB
2、 Preparation basis of financial statements the financial statements are prepared in accordance with the accounting standards for business enterprises – Basic Standards issued by the Ministry of Finance and the specific accounting standards, application guidelines, interpretations and other relevant provisions issued and revised later (collectively referred to as “accounting standards for business enterprises”).
The financial statements are presented on a going concern basis. As of December 31, 2021, the current liabilities of the group exceeded the current assets by about RMB 1.056 billion. The management considers the following sources of funds available in the next 12 months: (1) expected net cash inflow from operating activities; (2) The unused bank credit on December 31, 2021 was about 46.342 billion yuan; (3) The group was registered with Bank Of China Limited(601988) inter market dealers association in April 2020 with ultra short-term financing bonds of RMB 2 billion. The approved reusable financing limit can be recycled before April 2022. As of December 31, 2021, the unused limit is RMB 2 billion; In March 2021, it was registered by Bank Of China Limited(601988) inter market dealers association with ultra short-term financing bonds of RMB 2 billion. The approved reusable financing limit can be recycled before March 2023. As of December 31, 2021, the unused limit was RMB 1.3 billion.
The directors of the company believe that the group has sufficient resources to meet the capital payment needs in the next 12 months from the end of the reporting period. Therefore, the directors of the company consider it appropriate to prepare the consolidated financial statements on the basis of going concern. When preparing the financial statements, except for some financial instruments, the valuation principle is historical cost. If an asset is impaired, the corresponding impairment provision shall be withdrawn in accordance with relevant regulations. 3、 Important accounting policies and accounting estimates the group has formulated specific accounting policies and accounting estimates according to the actual production and operation characteristics, as follows: 1 In accordance with the statement of accounting standards for business enterprises, the financial statements comply with the requirements of accounting standards for business enterprises and truly and completely reflect the financial position of the company and the group as of December 31, 2021 and the operating results and cash flow of 2021. 2. The accounting period of the group is the Gregorian calendar year, i.e. from January 1 to December 31. 3. Bookkeeping base currency the bookkeeping base currency of the group and the currency used in the preparation of the financial statements are RMB. Unless otherwise specified, it is expressed in RMB. Subsidiaries of the group determine their recording currency according to the main economic environment in which they operate, and convert it into RMB when preparing financial statements.
Notes to financial statements (Continued)
2021 unit: RMB
3、 Important accounting policies and accounting estimates (Continued) Business combination business combination is divided into business combination under the same control and business combination not under the same control. Business combination under the same control: a business combination under the same control refers to a business combination in which the enterprises participating in the combination are ultimately controlled by the same party or the same parties before and after the combination, and the control is not temporary. For business combinations under the same control, the party that obtains control over other enterprises participating in the merger on the merger date is the merging party, and other enterprises participating in the merger are the merged party. The merger date refers to the date on which the combining party actually obtains control over the merged party. The assets and liabilities acquired by the combining party in the business combination under the same control (including the goodwill formed by the final controller’s acquisition of the combined party) shall be subject to relevant accounting treatment based on the book value in the final controller’s financial statements on the combination date. For the difference between the book value of the net assets obtained by the combining party and the book value of the merger consideration paid (or the total face value of the issued shares), the equity premium in the capital reserve shall be adjusted. If it is insufficient to offset, the retained earnings shall be adjusted. A business combination not under the same control is a business combination not under the same control if the enterprise participating in the combination is not ultimately controlled by the same party or the same parties before and after the combination. For business combinations not under the same control, the party that obtains control over other enterprises participating in the merger on the acquisition date is the acquirer, and other enterprises participating in the merger are the acquiree. The date of purchase refers to the date on which the purchaser actually obtains control over the acquiree. The identifiable assets, liabilities and contingent liabilities of the acquiree obtained in the business combination not under the same control shall be measured at fair value on the acquisition date. The difference between the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is greater than the fair value share of the identifiable net assets of the acquiree obtained in the merger is recognized as goodwill and subsequently measured at cost less accumulated impairment losses. If the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the identifiable assets The measurement of the fair value of liabilities and contingent liabilities, the fair value of the merger consideration paid (or the fair value of equity securities issued) and the fair value of the equity held by the acquiree before the acquisition date shall be reviewed, If the sum of the fair value of the merger consideration paid after review (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is still less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the difference shall be included in the current profit and loss.
Notes to financial statements (Continued)
2021 unit: RMB
3、 Important accounting policies and accounting estimates (Continued) Consolidated financial statements the consolidation scope of consolidated financial statements is determined on the basis of control, including the financial statements of the company and all subsidiaries. Subsidiaries refer to the entities controlled by the company (including the separable parts of enterprises and invested units, as well as the structured entities controlled by the company). When preparing the consolidated financial statements, the subsidiaries adopt the accounting year and accounting policy consistent with that of the company. Assets, liabilities, equity, income, expenses and cash flows arising from all transactions between companies within the group are fully offset at the time of consolidation. If the current loss shared by the minority shareholders of a subsidiary exceeds the share enjoyed by the minority shareholders in the opening shareholders’ equity of the subsidiary, the balance shall still be offset against the reduced shareholders’ equity. For subsidiaries acquired through business combination not under the same control, the operating results and cash flow of the acquiree shall be included in the consolidated financial statements from the date when the group obtains control until the group terminates its control. When preparing the consolidated financial statements, the financial statements of subsidiaries shall be adjusted on the basis of the fair value of all identifiable assets, liabilities and contingent liabilities determined on the acquisition date. For subsidiaries obtained through business combination under the same control, the operating results and cash flow of the combined party shall be included in the consolidated financial statements from the beginning of the current period. When preparing and comparing the consolidated financial statements, the relevant items of the previous financial statements are adjusted, which is regarded as the reporting entity formed after the merger has existed since the final controller began to implement control. If changes in relevant facts and circumstances lead to changes in one or more of the control elements, the group reassesses whether to control the investee. Under the condition of not losing control, the change of minority shareholders’ equity is regarded as equity transaction. If the equity investment in a subsidiary is disposed step by step through multiple transactions until the control right is lost, which belongs to a package deal, each transaction shall be treated as a transaction to dispose of a subsidiary and lose the control right; However, before the loss of control, the difference between each disposal price and the share of the subsidiary’s net assets corresponding to the disposal investment shall be recorded in the consolidated financial statements
