Datang Huayin Electric Power Co.Ltd(600744)
Notes to financial statements of 2021
(unless otherwise noted, all amounts are in RMB)
1、 Basic information of the company
(I) place of registration, headquarters address, legal representative and organizational form of the company
Datang Huayin Electric Power Co.Ltd(600744) (hereinafter referred to as “the company” or “the company”) was officially established on March 22, 1993. The registered address of the company is Huayin shihaoyuan office building, No. 35, heishipu Road, Tianxin District, Changsha City, Hunan Province. The company is a listed company controlled by a wholly state-owned company. The office address of the company’s headquarters is located in Huayin shihaoyuan office building, No. 35, heishipu Road, Tianxin District, Changsha City, Hunan Province. The legal representative is he Zibo.
Organizational structure of the company: the company has established the corporate governance structure of the general meeting of shareholders, the board of directors and the board of supervisors, with general manager’s office, party masses work department, human resources department, production and operation Department, financial management department, board of directors office, investment development department, securities compliance department, engineering construction department, procurement department, new energy department and other departments, It has 19 wholly-owned secondary subsidiaries, 2 holding secondary subsidiaries and 1 tertiary wholly-owned subsidiary.
(II) business nature and main business activities of the company
The industry of the company is power industry, and its main business scope is power production.
(III) name of parent company and ultimate parent company
The controlling shareholder of the company is China Datang Group Co., Ltd., which holds 53.533% of the shares of the company as of the end of the period.
The ultimate actual controller of the company is the state owned assets supervision and Administration Commission of the State Council.
(IV) approval and submission institution of financial report and approval and submission date of financial report
The financial statements of the company were approved by the board of directors on April 13, 2022.
(V) scope and changes of current consolidated financial statements
The consolidated financial statements of the company and its subsidiaries are the basis for determining the scope of control. Subsidiaries refer to enterprises or entities controlled by the company. There are 22 subsidiaries included in the scope of consolidated financial statements in this period, including:
Subsidiary name subsidiary type level shareholding ratio (%)
Level II subsidiary of Datang Huayin Yuanjiang new energy Co., Ltd. 51
Class II 100, a wholly-owned subsidiary of Datang Xiangtan Power Generation Co., Ltd
Level II 100, a wholly-owned subsidiary of Datang Huayin Hunan Energy Marketing Co., Ltd
Subsidiary name subsidiary type level shareholding ratio (%)
Hunan Datang Fuel Development Co., Ltd. wholly owned subsidiary level II 100
Inner Mongolia Datang Huayin Xidong Energy Development Co., Ltd., a wholly-owned subsidiary, level II 100
Level II 100, a wholly-owned subsidiary of Datang Huayin Zhuzhou Power Generation Co., Ltd
Hunan Datang Xianyi Technology Co., Ltd., a wholly-owned subsidiary, level II 100
Class II 100, a wholly-owned subsidiary of Datang Huayin Hunan Electric Power Engineering Co., Ltd
Datang Huayin Huaihua Wushui Basin Hydropower Development Co., Ltd. wholly owned subsidiary level II 100
Datang Huayin and Xiaohong hydropower Co., Ltd., a wholly-owned subsidiary, class II 100
Class II 100, a wholly-owned subsidiary of Datang Huayin Zhang Jia Jie Tourism Group Co.Ltd(000430) hydropower Co., Ltd
Datang Huayin Yiyang jintangchong Reservoir Power Generation Co., Ltd., a wholly-owned subsidiary, class II 100
Datang Huayin Suining new energy Co., Ltd. wholly owned subsidiary level II 100
Level II 100, a wholly-owned subsidiary of Datang Huayin (Hunan) new energy Co., Ltd
Datang Huayin Mayang new energy Co., Ltd. wholly owned subsidiary level II 100
Datang Huayin Zhijiang New Energy Development Co., Ltd. wholly owned subsidiary level II 100
Datang huayinxinzheng Xilingole Wind Power Co., Ltd. holding subsidiary level II 60
Level II 100, a wholly-owned subsidiary of Datang Huayin Lianyuan new energy Co., Ltd
Datang Huayin Hengnan new energy Co., Ltd. wholly owned subsidiary level II 100
Datang Huayin Liling new energy Co., Ltd. wholly owned subsidiary level II 100
Datang Huayin Xiangtan new energy Co., Ltd. wholly owned subsidiary level II 100
Hunan Datang Energy Saving Technology Co., Ltd., a wholly-owned subsidiary, level 3 100
VII. Changes in the scope of the company’s consolidated financial statements and other changes in the consolidated financial statements are detailed in note 1.
Note 2: the company invested in the newly established wholly-owned secondary subsidiary Datang Huayin Hongjiang new energy Co., Ltd. this year. The subsidiary completed the industrial and commercial registration on December 9, 2021. As of December 31, 2021, there was no actual business operation, and the company had not actually invested. 2、 Preparation basis of financial statements
(I) preparation basis
The financial statements are prepared based on the assumption of the company’s going concern, according to the actual transactions, in accordance with the relevant provisions of the accounting standards for business enterprises, and based on the following important accounting policies and accounting estimates.
(II) going concern
Within 12 months from the end of the reporting period, the company has no factors that significantly affect the company’s sustainable operation ability. This financial statement is prepared on the basis of the company’s assumption of sustainable operation.
3、 Important accounting policies and accounting estimates
(I) statement of compliance with accounting standards for business enterprises
The financial statements prepared by the company based on the above preparation basis comply with the requirements of the latest accounting standards for business enterprises and Its Application guide, interpretation and other relevant regulations issued by the Ministry of Finance (collectively referred to as “accounting standards for business enterprises”), and truly and completely reflect the company’s financial position, operating results, cash flow and other relevant information.
In addition, the preparation of this financial report refers to the presentation and disclosure requirements of the rules for the preparation of information disclosure of companies offering securities to the public No. 15 – General Provisions on financial reports (revised in 2014) and the notice on matters related to the implementation of the new accounting standards for business enterprises by listed companies (Accounting Department letter [2018] No. 453) issued by the CSRC.
(II) accounting period and business cycle
The accounting year of the company is from January 1 to December 31 of the Gregorian calendar.
(III) recording currency
The company adopts RMB as the bookkeeping base currency.
(IV) statement items whose measurement attributes have changed in the current period and the measurement attributes adopted in the current period
The measurement attributes adopted by the company include historical cost, replacement cost, net realizable value, present value and fair value.
There are no report items with changes in measurement attributes in the current period.
(V) business combination
1. Accounting treatment method of business combination under the same control
The company obtains business combination under the same control in one transaction or through multiple transactions step by step. The assets and liabilities obtained in the business combination shall be measured according to the book value of the combined party in the consolidated financial statements of the final controller on the combination date. The difference between the book value of the net assets obtained by the company and the book value of the merger consideration paid (or the total face value of the issued shares) shall be adjusted to the capital reserve; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
2. Accounting treatment methods for business combinations not under the same control
On the acquisition date, the company recognizes the difference between the combination cost and the fair value of the identifiable net assets of the acquiree obtained in the combination as goodwill; If the merger cost is less than the fair value of the identifiable net assets of the acquiree obtained in the merger, the fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree obtained and the measurement of the merger cost shall be reviewed first. If the merger cost is still less than the fair value of the identifiable net assets of the acquiree obtained in the merger after review, the difference shall be included in the current profit and loss.
The business combination not under the same control realized step by step through multiple transactions shall be handled in the following order:
(1) Adjust the initial investment cost of long-term equity investment. If the equity held before the purchase date is accounted by the equity method, it shall be re measured according to the fair value of the equity on the purchase date, and the difference between the fair value and its book value shall be included in the current investment income; If the equity of the acquiree held before the acquisition date involves changes in other comprehensive income and other owner’s equity accounted by the equity method, it shall be transferred to the current income on the acquisition date, except for other comprehensive income arising from the changes in net liabilities or net assets of the investee’s remeasurement of the defined benefit plan and the changes in the fair value of other equity instrument investments held.
(2) Recognize goodwill (or the amount included in the current profit and loss). Comparing the initial investment cost of the long-term equity investment adjusted in the first step with the fair value share of the identifiable net assets of the subsidiary on the acquisition date, the former is greater than the latter, and the difference is recognized as goodwill; The former is less than the latter, and the difference is included in the current profit and loss.
Disposal of equity step by step through multiple transactions until loss of control over subsidiaries
(1) Judge whether the transactions in the process from step-by-step disposal of equity to loss of control over subsidiaries belong to the principle of “package deal”
The terms, conditions and economic impact of various transactions for the disposal of equity investment in subsidiaries meet one or more of the following conditions, which generally indicates that multiple transactions should be accounted for as a package deal:
1) These transactions are concluded at the same time or in consideration of mutual influence;
2) These transactions as a whole can achieve a complete business result;
3) The occurrence of one transaction depends on the occurrence of at least one other transaction;
4) A transaction is uneconomical alone, but it is economical when considered together with other transactions.
(2) All transactions in the process from step-by-step disposal of equity to loss of control over subsidiaries belong to the accounting treatment method of “package deal”
If all transactions from the disposal of equity investment in subsidiaries to the loss of control are package transactions, they shall be accounted for as a transaction for the disposal of subsidiaries and the loss of control; However, before the loss of control, the difference between each disposal price and the share of net assets of the subsidiary corresponding to the disposal of investment shall be recognized as other comprehensive income in the consolidated financial statements, and shall be transferred to the profits and losses of the current period when the control is lost.
In the consolidated financial statements, the remaining equity shall be remeasured according to its fair value on the date of loss of control. The difference between the sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the share of the net assets of the atomic company continuously calculated from the purchase date calculated according to the original shareholding ratio shall be included in the investment income of the current period when the control right is lost. Other comprehensive income related to the equity investment of the atomic company shall be transferred to the current investment income or retained income when the control right is lost.
(3) All transactions in the process from step-by-step disposal of equity to loss of control over subsidiaries do not belong to the accounting treatment method of “package deal”
If the disposal of the investment in a subsidiary does not lose control, the difference between the disposal price in the consolidated financial statements and the share of the net assets of the subsidiary corresponding to the disposal of the investment shall be included in the capital reserve (capital premium or equity premium). If the capital premium is insufficient to offset, the retained income shall be adjusted.
If the investment in a subsidiary loses control, the remaining equity shall be remeasured according to its fair value on the date of loss of control in the consolidated financial statements. The difference between the sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the share of the net assets of the original subsidiary continuously calculated from the purchase date calculated according to the original shareholding ratio shall be included in the investment income of the current period when the control right is lost. Other comprehensive income related to the equity investment of the original subsidiary shall be transferred to the current investment income or retained income when the control right is lost.
(VI) preparation method of consolidated financial statements
1. Principles for determining the scope of consolidated financial statements
Consolidation scope of consolidated financial statements
