TigerResearch/tigerbot-earning-plugin huggingface dataset:
A fixed asset is tested for impairment by the Group if there is any indication that it may be impaired at the balance sheet date by calculating and comparing the recoverable amount of the fixed asset with its carrying amount to check the difference. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an asset impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. The determination of the recoverable amount involves accounting estimates.
When assessing whether the above assets are impaired, management mainly evaluates and analyses: (i) whether events affecting asset impairment occurred; (ii) whether the present value of expected cash flows arising from the continuing use or disposals of the asset is lower than its carrying amount; and (iii) whether the significant assumptions used in the calculation of the present value of the estimated cash flows are appropriate.
The calculation of the present value of future cash flows involves management’s significant estimates and judgements, including the discount rate, the growth rate of the estimated on-grid electricity price, the growth rate of the estimated electricity sale and the varability rate of the estimated price of coal used in power generation. Changes in these assumptions may have material impact on the present value used in the impairment test, and cause impairment in the above-mentioned long-term assets of the Group.
(b) Critical accounting estimates and key assumptions (Cont’d)(ii) Measurement of ECL
The Group calculates ECL through exposure at default and ECL rates, and determines the ECL rates based on probability of default and loss given default. In determining the ECL rates, the Group uses data such as internal historical credit loss experience, etc., and adjusts historical data based on current conditions and forward-looking information.
When considering forward-looking information, the Group considered different macroeconomic scenarios. Significant macroeconomic assumptions and parameters related to the estimation of ECL include the risk of economic downturn, external market environment, technological environment, changes in customer conditions, Gross Domestic Product (“GDP”) and Consumer Price Index (“CPI”), etc. The Group regularly monitors and reviews assumptions and parameters related to the calculation of ECL.
(iii) Income taxes and deferred income taxes
The Group is subject to income taxes in numerous jurisdictions. There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income tax in each of these jurisdictions. Where the final tax outcomes of these matters are different from the amounts that were initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made.
As stated in Note 3(2), some subsidiaries of the Group are high-tech enterprises. The high-tech enterprise certificate is effective for three years. Upon expiration, application for high-tech enterprise identification should be submitted again to the relevant government authorities. Based on the historical experience of reassessment for high-tech enterprise upon expiration and the actual condition of the subsidiaries, the Group considers that the subsidiaries are able to obtain the qualification for high-tech enterprises in future years, and therefore a preferential tax rate of15% is used to calculate the corresponding deferred income tax. If some subsidiaries cannot obtain the qualification for high-tech enterprise upon expiration, then the subsidiaries are subject to a statutory tax rate of 25% for the calculation of the income tax, which further influences the recognised deferred tax assets, deferred tax liabilities and income tax expenses.
(b) Critical accounting estimates and key assumptions (Cont’d)(iii) Income taxes and deferred income taxes (Cont’d)
A deferred tax asset is recognised for the carryforward of unused deductible losses to the extent that it is probable that future taxable profits will be available against which the deductible losses can be utilised. Future taxable profits include taxable profits that can be achieved through normal operations and the increase in taxable profits due to the reversal of taxable temporary differences arising from previous period in future period. The Group determines the future taxable profits based on the future financial forecast, which requires management’s significant estimates and judgements, including the estimated electricity sale, estimated on-grid electricity price, the estimated price of coal used in power generation and other operating expenses. If there is any difference between the actual and the estimates, adjustment may be made to the carrying amount of deferred tax assets.
The Ministry of Finance released the Circular on Issuing Interpretation No. 15 of Accounting Standards for Business Enterprises (Interpretation No. 15) in 2021 and Q&A on Implementation of Accounting Standards for Business Enterprises and other documents in 2022. The financial statements for the year ended 31 December 2022 have been prepared by the Group and the Company in accordance with the above circulars and Q&A. The revisions have no significant impacts on the financial statements of the Group and the Company except for the following.
(a) Fixed assets - Accounting treatment of sales proceeds before intended use
The Group and the Company applied the Interpretation No. 15 related to fixed assets - accounting treatment of sales proceeds before intended use from 1 January 2022. For the sale proceeds before intended use occurred between 1 January 2021 and the implementation date, the Group applied the amendments retrospectively, and the comparative financial statements of2021 have been restated accordingly. The above changes in accounting policies have no impact on the balance sheet as of 1 January 2021.
The Company had no sale proceeds before intended use occurred between 1 January 2021 and the implementation date, and the above changes in accounting policies have no impact on the financial statements of the Company for the year ended 31 December 2021.
(30) Significant changes in accounting policies (Cont’d)
(a) Fixed assets - Accounting treatment of sales proceeds before intended use (Cont’d)
||||||||| The line items affected| The amounts affected31 December 2021 The Group (positive numbers for debit and negative numbers for credit)
 The Group’s wind power plant projects were tested for its intended use in 2021.||||||||| Long-term equity investments|1,941,486
 The| Group|||recognised||the||sale| Fixed assets|201,973,167
proceeds||and||related||cost|incurred|| Construction in progress|75,964,697
before intended use in revenue and cost||||||||| Deferred tax assets|(58,247,231)
of|sale|respectively,||||and|adjusted|| Capital surplus|18,476,872
construction|||in|progress||accordingly.||| Undistributed profits|(219,582,503)
The wind power plant projects became||||||||| Minority interests|(20,526,488)2021
available  June||for|use|in||2021.|| For||
projects||transferred|||to|fixed|assets|in||
2021, the Group adjusted fixed assets||||||||| Revenue|(290,642,655)
and|charged|||depreciation|||expenses|| Cost of sale|12,704,791
accordingly.||| The Group|||retrospectively||||
amended investment income and long- term equity investments for associates’||||||||| Investment income|(1,941,486)
||||||||| Income tax expenses|58,247,231
sale|proceeds|||before||intended||use||
accounted for using the equity method.||||||||||
 For|equity|dilution||caused||by|minority|||
shareholders’||||capital||increase|while|||
preparing||the||production||line|for|its||
intended use, the Group adjusted capital||||||||||
surplus||accordingly||||based||on||
retrospectively adjusted net assets.
In addition to the above adjustments, the Group also reclassified the cash inflow and outflow derived from the proceeds before intended use of fixed assets from cash flows from investing activities to cash flows from operating activities in 2021, of which the cash received from sale of goods or rendering of services increased by RMB 162,478,679.
3 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category| Tax base| Tax rate/levying rate
 Value-added tax(“VAT”) (a)| Taxable value-added amount (Tax payable is calculated using the taxable sale amount multiplied by the applicable tax rate less deductible input VAT of the current period)|5%, 6%, 9% and 13%
| Revenue from hydropower sales|3%
 City maintenance and construction tax| Amount of VAT paid|5% to 7%
 Educational surcharge| Amount of VAT paid|3%
 Local educational surcharge| Amount of VAT paid|2%
 Enterprise income tax| Taxable income|12.5%, 15%, 20% and25%
 Property tax| Real estate’s rental income or the residual value from original value less the deducting proportion|12% and 1.2%
 Environmental protection tax(b)| Calculated and paid based on the pollution equivalent values or the discharge of taxable pollutants multiplied by the applicable tax amounts| Calculated and paid based on the applicable tax amounts of different
pollutants
(a) Pursuant to the Announcement on Relevant Policies for Deepening the Value-added Tax Reform
(Cai Shui Haiguan [2019] No. 39) jointly issued by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs and relevant regulations, the Group’s revenue from sale of electricity, sale of by-products, maintenance and repair services, etc. and revenue arising from sale of heat energy is subject to VAT at the rate of 13% and 9% from 1 April2019. The Group’s revenue from entrusted loan business among companies and training service is subject to VAT at the rate of 6%. The operating leases of the real estates under simplified taxation method is subject to VAT at a rate of 5%.
Pursuant to Notice on the Policy of Streamlining and Combination of Value-added Tax Levy Rates jointly issued by the Ministry of Finance and the State Taxation Administration, revenue from sale of electricity generated from small hydropower units at the county level or below is subject to VAT at the rate of 3%. Three small hydropower plants of Lincang Yudean Energy Co., Ltd. (“Lincang Energy”), a subsidiary of the Group, are subject to VAT at the rate of 3%.
Pursuant to the provisions including the Circular on Enterprise Income Tax Policy concerning Deductions for Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on Extending the Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by the State Taxation Administration, during the period from 1 January 2018 to 31 December 2023, the cost of equipment with the original cost less than RMB 5,000,000 newly purchased by Guangdong Yudean Power Sales Co., Ltd. (“Power Sales”), a subsidiary of the Group, can be fully deducted against taxable profit in the next month after the asset is put into use, instead of being depreciated annually for tax filing.
3 Taxation (Cont’d)
(1) The main categories and rates of taxes applicable to the Group are set out below (Cont’d):
(b) According to the Environmental Protection Tax Law of the People’s Republic of China, the Group
has applied the environmental protection tax since 1 January 2018. The taxation objects include air pollutants, water pollutants, solid waste and noise. Taxation is based on the amount of pollutants’emissions.
(2) Tax preference
(a) Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80), the
Company and several subsidiaries are approved to engage in wind power projects and photovoltaic projects since 1 January 2008 and are exempted from enterprise income tax in the first three years counting from the year when revenue from production and operations of those projects is recorded for the first time, and can enjoy half rate reduction in the following three years(“three-year exemptions and three-year halves”).
Pursuant to the Supplementary Notice on Issues Concerning the Preferential Enterprise Income Tax Policies for Public Infrastructure Projects (Cai Shui [2014] No. 55), enterprises invest and operate public infrastructure projects in compliance with the List of Public Infrastructure Projects Enjoying Enterprise Income Tax Preferential, those which adopt one-off approval and are subject to construction in batches (such as terminals, berths, airport terminals, runways, sections, generator units, etc.) are subject to income tax calculated in units of each batch and enjoy the tax preferential policy of “three-year exemptions and three-year halves”when the following conditions are satisfied: (i) different batches are space-independent; (ii) each batch has its own revenue function; (iii) they are accounted for in units of each batch and are subject to income tax individually, while the period expenses are allocated rationally. In 2022, the Group’s subsidiary Guangdong Yudean Qujie Wind Power Co., Ltd. (“Qujie Wind Power”) and Guangdong Yudean Pingyuan Wind Power Co., Ltd. (“Pingyuan Wind Power”) met the above conditions. Therefore, Qujie Youhao wind power project (the first time for which revenue from sale of power was posted was 2017), Qujie Wailuo offshore wind power project (Phase I) (the first time for which revenue from sale of power was posted was 2019), Qujie Wailuo offshore wind power project (Phase II)(the first time for which revenue from sale of power was posted was 2021) and Xinliao offshore wind power project (the first time for which profits were posted was 2021), Pingyuan maoping project (the first time for which revenue from sale of power was posted was 2020) and Pingyuan Sishui project (the first time for which revenue from sale of power was posted was 2021) of Qujie Wind Power System and Pingyuan Wind Power are entitled to the tax preferential policy of “three- year exemptions and three-year halves”respectively according to each wind power project.
(2) Tax preference (Cont’d)
(b) In 2020 and 2022, Zhanjiang Electric Co., Ltd. (“Zhanjiang Electric”) and Guangdong Yudean
Zhanjiang Biomass Power Generation Co., Ltd. (“Biomass Power Generation”), subsidiaries of the Group, were granted High-tech Enterprise Certificate (Certificate No. GR202044010003 and Certificate No. GR202244008597) by the Department of Science and Technology of Guangdong Province, Department of Finance of Guangdong Province and Guangdong Provincial Office of the State Taxation Bureau on 9 December 2020 and 22 December 2022 respectively. The certificates are valid for three years. Under Article 28 of the Enterprise Income Tax Law of the People’s Republic of China, the enterprise income tax rate applicable to Zhanjiang Electric and Biomass Power Generation for the year of 2022 is 15%.
(c) In accordance with regulations of the Notice on Implementing the Inclusive Tax Deduction and
Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13), Announcement of the State Taxation Administration on Matters Concerning the Implementation of Preferential Income Tax Policies Supporting the Development of Small Low-Profit Enterprises and Individual Industrial and Commercial Households (STA Announcement [2021] No. 8) and Announcement on Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises ([2022] No. 13), for a small enterprise with low profits, for the part of the annual taxable income not exceeding RMB 1,000,000, the amount of taxable income is reduced to 12.5% of income and is subject to the enterprise income at the tax rate of 20%; for the part between RMB 1,000,000 and RMB 3,000,000, the amount of taxable income is reduced to 25% of income and is subject to the enterprise income at the tax rate of 20%. The aforementioned small low-profit enterprise engages in industries not restricted or prohibited by the state and concurrently meet the three conditions, that is, the annual taxable amount is not more than RMB 3,000,000, the number of its employees is not more than 300, and their total assets do not exceed RMB 50,000,000. In 2022, some of the Company's subsidiaries were entitled to the aforesaid preferential tax policy.
(d) Pursuant to Notice on Issues Concerning the Implementation of the Preferential Catalogue of
Enterprise Income Tax for Integrated Utilisation of Resources (Cai Shui [2008] No. 47), since 1 January 2008, enterprises use the resources listed in the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of Resources (2008 Edition) as the main raw materials to produce products in the above catalogue that meet national or industry related standards, and the income from above products is reduced to 90% of the total income of the enterprises for the year. The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co., Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash, which meets the above-mentioned preferential tax conditions for integrated utilisation of resources. The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co., Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash, which meets the above-mentioned preferential tax conditions for integrated utilisation of resources. Therefore, in 2022, revenue from sale of coal ash from Zhanjiang Electric and Ping Hai Power Plant was reduced to 90% of the total income for the year.
(e) Pursuant to the Notice on Issuing the Catalogue of Value-Added Tax Preferences for Products
and Labour Services Involving the Comprehensive Utilisation of Resources (Cai Shui [2015] No.78), VAT levied on self-produced products and services for comprehensive utilisation of resources will be refunded immediately, to which Biomass Power Generation’s VAT after offsetting output VAT from revenue against input VAT from cost of sale from main operations is entitled to. Biomass Power Generation is a subsidiary mainly engaged in power generation using biomass materials.
In addition, 50% of VAT levied on the sale of electricity generated by Guangdong Yudean Shibeishan Wind Power Co., Ltd. (“Shibeishan Wind Power”), Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. (“Zhanjiang Wind Power”), Guangdong Yudean Xuwen Wind Power Electricity Co., Ltd. (“Xuwen Wind Power”), Guangdong Yudean Dianbai Wind Power Co., Ltd. (“Dianbai Wind Power”), Huilai Wind Power Co., Ltd. (“Huilai Wind Power”) and Guangdong Yueneng Wind Power Co., Ltd. (“Yueneng Wind Power”) will be refunded immediately in accordance with the Notice Concerning Value-added Tax Policies on Wind Power Generation (Cai Shui [2015] No. 74).
4 Notes to the consolidated financial statements
|31 December 2022|31 December 2021
 Cash on hand|46,435|83,108
 Cash at bank|2,705,136,812|1,554,213,074
 Energy Group Finance Company (b)|8,777,022,027|6,514,354,377
- Deposits|8,728,625,253|6,468,820,757
- Interest receivable|36,396,774|39,533,620
- Other cash balances (c)|12,000,000|6,000,000
 Other cash balances (c)|21,318,344|36,670,394
|11,503,523,618|8,105,320,953
(a) As at 31 December 2022, the Group had no offshore deposit (31 December 2021: Nil).
(b) Deposits with Energy Group Finance Company refer to the deposits placed in Energy Group
Finance Company (Note 8(6)). Energy Group Finance Company is a financial institution established with the approval of the People’s Bank of China. Both the Company and Energy Group Finance Company are controlled by GEGC.
(c) As at 31 December 2022, other cash balances of RMB 33,318,344 (31 December 2021: RMB
42,670,394) mainly represented deposits for ecological protection and performance guarantees, among which other cash balances placed in Energy Group Finance Company was RMB12,000,000 (31 December 2021: RMB 6,000,000) (Note 8(6)).
|31 December 2022|31 December 2021
 Accounts receivables|7,579,203,103|7,030,948,863
 Less: Provision for bad debts|(566,859)|(263,506)
|7,578,636,244|7,030,685,357
|31 December 2022|31 December 2021
 Within 1 year|6,943,600,556|6,602,371,992
1 to 2 years|364,750,508|306,931,561
2 to 3 years|243,473,499|119,940,421
 Over 3 years|27,378,540|1,704,889
|7,579,203,103|7,030,948,863
4 Notes to the consolidated financial statements (Cont’d)
(2) Accounts receivables (Cont’d)
(b) As at 31 December 2022, the five largest accounts receivables aggregated by debtors are analysed
Total amount of the five largest accounts receivables| Balance| Provision for bad debts|% of total balance
|7,436,142,873|-|98.11%
For accounts receivables, the Group recognises the lifetime ECL regardless of whether there exists a significant financing component.
As at 31 December 2022, provision for bad debts made on a collective basis for accounts receivables is analysed as follows:
Group 1:
As at 31 December 2022, the Group’s receivables from sale of electricity amounted to RMB7,491,837,601 (31 December 2021: RMB 6,974,790,832), which mainly comprised receivables of RMB 7,357,403,891 from China Southern Power Grid Co., Ltd. and its subsidiaries (collectively referred to as “China Southern Power Grid”) and RMB 134,433,710 from State Grid Corporation of China (“State Grid”) and its subsidiaries. Considering the favourable credit history of China Southern Power Grid and State Grid, the Group held that there was no significant credit risk arising from receivables from sale of electricity. Since the possibility of material losses due to the default by China Southern Power Grid and State Grid was extremely low, the Group made no provision for the ECL of the receivables from sale of electricity (31 December 2021: Nil).
Group 2:
As at 31 December 2022, the Group’s receivables from related parties amounted to RMB39,546,687 (31 December 2021: RMB 32,237,080), and the historical loss rate was extremely low. Therefore, The Group held that there was no significant credit risk arising from receivables from related parties. Since the possibility of material losses due to the default by related parties was extremely low, the Group made no provision for the ECL for the receivables from related parties (31 December 2021: Nil).
(2) Accounts receivables (Cont’d)(c) Provision for bad debts (Cont’d)
||31 December 2022|||31 December 2021|
| Book balance| Provision for bad debts|| Book balance| Provision for bad debts|
| Amount| Lifetime ECL rates| Amount| Amount| Lifetime ECL rates| Amount
 Within 1 year|46,948,057|0.95%|(445,712)|23,836,136|0.97%|(231,175)
1 to 2 years|805,943|10.00%|(80,594)|35,568|10.00%|(3,557)
2 to 3 years|35,568|31.79%|(11,306)|29,247|30.00%|(8,774)
 Over 3 years|29,247|100.00%|(29,247)|20,000|100.00%|(20,000)
|47,818,815||(566,859)|23,920,951||(263,506)
(d) As at 31 December 2022, the right to collect electric charges of the Group’s certain subsidiaries,
were pledged to banks to obtain long-term borrowings of RMB 6,052,250,122, including current portion of long-term borrowings of RMB 512,741,564 (31 December 2021: long-term borrowings of RMB 6,002,119,898, including current portion of long-term borrowings of RMB 386,056,214).
|31 December 2022|31 December 2021
 Advances to suppliers|1,535,097,252|892,886,238
 Less: Provision for impairment|(115,000)|(115,000)
|1,534,982,252|892,771,238
|31 December 2022||31 December 2021|
| Amount|% of total balance| Amount|% of total balance
 Within 1 year|1,532,647,170|99.84%|890,361,044|99.72%
1 to 2 years|1,525,236|0.10%|1,256,263|0.14%
2 to 3 years|370,407|0.02%|563,276|0.06%
 Over 3 years|554,439|0.04%|705,655|0.08%
|1,535,097,252|100.00%|892,886,238|100.00%
As at 31 December 2022, advances to suppliers with ageing over one year amounted to RMB2,450,082 (31 December 2021: RMB 2,525,194), mainly including prepayments for spare parts and materials.
|2022|2021
 Opening balance|(115,000)|(803,017)
 Write-off in the current year|-|688,017
 Reversal in the current year|-|-
 Ending balance|(115,000)|(115,000)
(c) As at 31 December 2022, the five largest advances to suppliers aggregated by debtors are