Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
1
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2010-33
Hangzhou Steam Turbine Co., Ltd.
Interim Report 2010 (Summary)
§1 Important Declaration
1.1 The Board of Directors and the directors of the Company guarantee that there are no significant omissions,
fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for
the truthfulness, accuracy and completeness of the Report.
This is the summary abstracted from the complete version of Semi-Annual Report 2004, which is published
synchronously on the Internet (http://www.cninfo.com.cn) for details please refer to the complete version.
1.3 Directors other than the followings presented the Board Meeting on which this report was examined:
Name of the director
absented Position Reason for not presenting the meeting Name of
consignee
Zhen Bin Vice Chairman Out on business Wang Hongkang
1.3 The financial statements carried in this report are not audited.
1.4 Chairman Mr. Nie Zhonghai, General Manager Mr. Yan Jianhuan, Chief Financial Officer Mr. Bai Ronghua, and the Chief of
Accounting Department Mr. Wu Guomei hereby declares: the Financial Statement in the report is guaranteed to be truthful and
complete.
§2 Company Profile
2.1 Company Profile
Stock ID Hangqilun B
Stock Code 200771
Stock Exchange Shenzhen Stock Exchange
Secretary of the Board Representative of Stock Affairs
Name Yu Changquan Wang Gang
Address No. 357 Shiqiao Rd. Hangzhou No. 357 Shiqiao Rd. Hangzhou
Tel. （0571）85780432 （0571）85780198
Fax. （0571）85780433 （0571）85780433
Email. ychq@htc.cn wg@htc.cn
2.2 Financial Highlights
2.2.1 Financial Highlights
In RMB Yuan
Ended this report Ended previous year Increase/decrease (%)Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
2
term
Gross Assets 5,473,877,595.45 4,910,772,244.30 11.47%
Owners’ equity to shareholders of the listed
company 2,443,214,287.92 2,336,109,466.46 4.58%
Share capital 483,340,000.00 371,800,000.00 30.00%
Net asset per share attributable to the shareholders
of the listed company (Yuan/share) 5.05 6.28 -19.59%
Report term (Jan-Jun) Same period last year Increase/decrease (%)
Turnover 1,840,515,550.97 1,646,527,768.37 11.78%
Operation profit 364,532,652.81 337,811,535.69 7.91%
Total profit 361,682,077.81 338,432,212.27 6.87%
Net profit attributable to the shareholders of the
listed company 255,824,821.46 238,780,981.80 7.14%
Net profit after deducting of non-recurring gain/loss
attributable to the shareholders of the listed
company
257,610,164.37 239,412,809.45 7.60%
Basic earnings per share (Yuan/share) 0.5293 0.6422 -17.58%
Diluted earnings per share (Yuan/share) 0.5293 0.6422 -17.58%
Net return on equity (%) 10.47% 11.99% -1.52%
Cash flow generated by business operation, net 209,974,963.27 -9,773,984.93 -2,248.30%
Net Cash flow per share generated by business
operation (yuan/share) 0.43 -0.03 -1,533.33%
2.2.2. Non-recurring gain and loss items
√ applicable □ not applicable
In RMB Yuan
Non-recurring gain and loss items Amount Note (if applicable)
Gain/loss of non-current assets 48,907.71
Government subsidies accounted into current gain/loss account, other
than those closely related to the Company’s common business, comply
with the national policy and continues to enjoy at certain fixed rate or
amount.
1,300,412.00
Other non-business income and expenditures other than the above -4,199,894.71
Influenced amount of minority shareholders’ equity 508,618.57
Influenced amount of income tax 556,613.52
Total -1,785,342.91 -
2.2.3 Diversity between the Domestic and the International Accounting Standards
√ applicable □ not applicable
In RMB Yuan
Net profit attributable to the shareholders of the
listed company
Owners’ equity to shareholders of the listed
company
Current term Amount of last term End of term Beginning of term
On IAS 255,824,821.46 238,780,981.80 2,443,214,287.92 2,336,109,466.46
On domestic accounting
standard 255,824,821.46 238,780,981.80 2,443,214,287.92 2,336,109,466.46
Individual and total of adjustment according to IAS
Total of differences
between the IAS and
0.00 0.00 0.00 0.00Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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domestic accounting
standard
Statement on differences
between the IAS and
Chinese Accounting
Standard
None
§3 Changes in Share Capital & Particulars about Shareholders
3.1. Statement of Changes in Shares
√ applicable □ not applicable
in shares
Before the change Changed (+,-) After the change
Amount Proportion Issuing of
new shares
Bonus
shares
Transferred
from reserves Others Sub-total Amount Proportion
I. None negotiable
shares 236,600,000 63.64% 70,980,000 70,980,000 307,580,000 63.64%
1. Promoter’s
shares 236,600,000 63.64% 70,980,000 70,980,000 307,580,000 63.64%
Including:
State-owned shares 236,600,000 63.64% 70,980,000 70,980,000 307,580,000 63.64%
Domestic legal
person shares
Overseas legal
person shares
Others
2. Legal person
shares placed
3. Employees’
shares
4. Preference shares
or others
II. Negotiable
shares 135,200,000 36.36% 40,560,000 40,560,000 175,760,000 36.36%
1. Common shares
in RMB
2. Foreign shares in
domestic market 135,200,000 36.36% 40,560,000 40,560,000 175,760,000 36.36%
3. Foreign shares in
overseas market
4. Others
III. Total of capital
shares 371,800,000 100.00% 111,540,000 111,540,000 483,340,000 100.00%
3.2 Particulars about the top 10 shareholders and top 10 current share holders
in shares
Total of shareholders 15,783
Top 10 Shareholders
Name of the shareholder Properties of
shareholder
Share
proportion % Total shares Non-negotiable
shares held
Pledged or
frozen
Hangzhou Steam Turbine Power Group Co., Ltd. State-owned 63.64% 307,580,000 307,580,000 91,000,000Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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legal person
SCHRODER INTL SELECTION FD-GREATER
CN FD GTI 25287
Overseas legal
person 1.69% 8,173,716 0 0
NORGES BANK Overseas legal
person 0.72% 3,470,039 0 0
TOYO SECURITIES ASIA LIMITED-A/C
CLIENT.
Overseas legal
person 0.37% 1,787,326 0 0
Xia Zulin Domestic natural
person 0.35% 1,673,000 0 0
BOCHK INVESTMENT FUNDS-BOCHK
CHINA GOLDEN DRAGON FUND
Overseas legal
person 0.34% 1,659,836 0 0
AUSTRALIANSUPER PTY LTD Overseas legal
person 0.28% 1,351,488 0 0
Natio Securities Co.,Ltd. Overseas legal
person 0.25% 1,186,909 0 0
INVESTERINGSFORENINGEN DANSKE
INVEST
Overseas legal
person 0.22% 1,067,033 0 0
Hu Xiaofeng Domestic natural
person 0.21% 1,004,127 0 0
Top 10 Negotiable Share Holders
Name of the shareholder Current shares held Category of shares
SCHRODER INTL SELECTION
FD-GREATER CN FD GTI 2528 8,173,716 Foreign shares placed in domestic exchange
NORGES BANK 3,470,039 Foreign shares placed in domestic exchange
TOYO SECURITIES ASIA
LIMITED-A/C CLIENT. 1,787,326 Foreign shares placed in domestic exchange
Xia Zulin 1,673,000 Foreign shares placed in domestic exchange
FUNDS-BOCHK CHINA GOLDEN
DRAGON FUND 1,659,836 Foreign shares placed in domestic exchange
AUSTRALIANSUPER PTY LTD 1,351,488 Foreign shares placed in domestic exchange
Natio Securities Co.,Ltd. 1,186,909 Foreign shares placed in domestic exchange
INVESTERINGSFORENINGEN
DANSKE 1,067,033 Foreign shares placed in domestic exchange
Hu Xiaofeng 1,004,127 Foreign shares placed in domestic exchange
GUOTAI JUNAN
SECURITIES(HONGKONG) LIMITED 737,504 Foreign shares placed in domestic exchange
Notes to relationship or “action in
concert” among the top ten
shareholders.
(1) Of top ten shareholders, Hangzhou Steam Turbine Group Co., Ltd. holds shares on
behalf of the State and the others are to B-Share shareholders.
(2) Hangzhou Steam Turbine Group Co., Ltd. is not related to any of the other 9
shareholders. It is unknown whether there is any relationship among the 9 shareholders.
(3) None of the other shareholders are regarded as Act in Concert relationship according to
the Administrative Regulations of Information Disclosing of Public Companies.
(4) Hangzhou Steam Turbine Group Co., Ltd. (HSTG) entered the share equity collateral
contract with Communication Bank Zhejiang Branch on April 30, 2010. Basing on the
original “Highest Value Pledge Contract”, the collateral subject will stay unchanged at 91
million shares. In return, HSTG will have the annual credit up to RMB300 million. The
collateral term will start from April 30, 2010 and ended at March 31, 2012. As of the
report date, the total of capital shares of the Company was 483.34 million shares, 307.58
were held by HSTG, the 91 million shares were state-owned promoter’s shares, accounted
for 29.60% of the shares held by HSTG, and 18.83% of the Company’s total capital shares.
3.3 Change in Controlling Shareholder and the Substantial Dominator
□applicable √ not applicableHangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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§4 Directors, Supervisors and Senior Executives
4.1 Changes in Shares Held by Directors, Supervisors and Senior Executives
√ applicable □ not applicable
Name Position
Shares held
at the
beginning of
term
Amount of
shares
increased in
the report
term
Amount of
shares
decreased in
the report
term
Shares held
at the end of
term
Incl.
Conditional
shares
Share option
held at end
of term
Cause of
change
Zhang Shutan Vice General
Manager 44,000 13,200 0 57,200 0 0
3 bonus shares
to each 10
shares
§5 Report of the Board of Directors
5.1 Principal business segments on industries/products
In RMB10 thousand
Segments on industries
On industry or product Turnover Operation cost Gross profit ratio
(%)
Increase/decreas
e of turnover
over the same
period of last
year (%)
Increase/decreas
e of operation
cost over the
same period of
last year (%)
Increase/decrease
of gross profit
ratio over the
same period of
last year (%)
Boiler and power
machine manufacture 151,592.38 94,798.54 37.46% 11.46% 13.96% -1.38%
Casting 2,799.84 2,237.01 20.10% -22.49% -1.55% -17.00%
Petrochemical and other
special machineries 3,651.03 3,528.72 3.35% -45.79% -25.94% -25.91%
Packaged equipment for
waste heat power plant 5,799.90 4,730.90 18.43% -43.56% -26.35% -19.06%
Other special equipment 19,182.17 11,980.24 37.54% 211.31% 302.29% -14.13%
Total 183,025.32 117,275.41 35.92% 12.43% 17.71% -2.88%
Segments on products
Industrial steam turbine 151,592.38 94,798.54 37.46% 11.46% 13.96% -1.38%
Casting products 2,799.84 2,237.01 20.10% -22.49% -1.55% -17.00%
Auxiliary machinery 3,651.03 3,528.72 3.35% -45.79% -25.94% -25.91%
Packaged equipment for
waste heat power plant 5,799.90 4,730.90 18.43% -43.56% -26.35% -19.06%
Others 19,182.17 11,980.24 37.54% 211.31% 302.29% -14.13%
Total 183,025.32 117,275.41 35.92% 12.43% 17.71% -2.88%
5.2 Major businesses segment on regions In RMB10 thousand
Regions Turnover Change of income over last year %
Domestic 158,919.54 6.46%
Overseas 24,105.77 78.24%
Total 183,025.32 12.43%Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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5.3 Major Change in the Principal Business or its Structure
□applicable √ not applicable
5.4 Major Change in the Profitability (Gross Profit Rate) of the Major Business over the Previous Year
□applicable √ not applicable
5.5 Cause of Major Change in the Profit Composition over the Previous Year
□applicable √ not applicable
5.6 Using of proceeds from financing actions
5.6.1 Application of Proceeds Raised through Share Offering
□applicable √ not applicable
5.6.2 Change of Projects
□applicable √ not applicable
5.7 Revising of business plan for the 2nd half of year by the Board of Directors
□applicable √ not applicable
5.8 Estimated accumulative profit from the year beginning to the end of the next report period may be of
deficits; or in comparison with the same period of the previous year, give the warning of great change and
the notice to the reasons.
□applicable √ not applicable
5.9 Statement of the Board on the Non-standard Opinion Presented by the Certified Public Accountants
□applicable √ not applicable
5.10 Statement of the Management on the Change and the Treatment Result of the Issues Involved in the
Non-standard Opinion Presented by the Certified Public Accountants in the Previous Year.
□applicable √ not applicable
§6 Significant Events
6.1 Acquisition and disposal of assets, reorganization of assets
6.1.1 Acquisition of assets
□applicable √ not applicableHangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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6.1.2 Selling of assets
□applicable √ not applicable
6.1.3 Since the Report on Assets Reorganization or Public Notice on Acquisition/Sales of Assets has been
published, the progress of the event and the influence upon the operation result and financial position in the
report period.
□applicable √ not applicable
6.2 Guarantees
□applicable √ not applicable
6.3 Non-operational credit/debt with related parties
√ applicable □ not applicable
In RMB10 thousand
Fund provided to the related parties Accept money from the related parties
Related parties
Amount occurred Balance Amount occurred Balance
Hangzhou Relian International Trading Co. 0.00 0.00 5,000.00 5,000.00
Total 0.00 0.00 5,000.00 5,000.00
Including: capital provided by the Company to the holding shareholder and its subsidiaries was RMB0.00 in the report term, and
balance was RMB0.00.
6.4 Material Lawsuits/Arbitrations
□applicable √ not applicable
6.5 Notes to the other Significant Events and their Influences and Analysis on the Solutions
□applicable √ not applicable
6.5.1 Securities investment
□applicable √ not applicable
6.5.2 Particulars about shareholding in other listed companies
□applicable √ not applicable
6.5.3 Statement of capital adoption by the main shareholder and its affiliates
□applicable √ not applicable
6.5.4 Fulfilling of commitment issues by the Company, shareholders, and substantial controller
□applicable √ not applicable
6.5.5 Profit distribution or capitalizing of common reserves proposed by the Board for the current term
□applicable √ not applicableHangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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6.5.6 Misc. income items
In RMB Yuan
Items Occurred current
term
Amount occurred in
same period last
year
1. Gains (losses) from sellable financial assets
Less: Income tax influence of sellable financial assets
Net amount written into other gains and transferred into gain/loss in previous terms
Sub-total
2. Shares in the other misc. income subjects in the investee on equity basis
Less: Income tax influence of shares in other gains of investees on equity basis
Net amount written into other gains and transferred into gain/loss in previous terms
Sub-total
3. Amount of gains (or losses) from cash flow hedge instrument
Less: Income tax influence of cash flow hedge instruments
Net amount written into other gains and transferred into gain/loss in previous terms
Adjusted amount transferred to initial amount of the target project
Sub-total
4. Difference from translating of foreign currency financial statements
Less: Net amount of disposing overseas business and transferred to current gain/loss
Sub-total
5. Others
Less: Income tax influence by other accounted into other misc. incomes
Net amount accounted into other misc. income and transferred into current gain/loss in
previous terms
Sub-total
Total 0.00 0.00
6.6 Reception of investigations, communications, or interviews
Time/date Place Way Visitors Main content involved and material provided
Feb 04,
2010 HTC Face to face talk Dahe Securities Capital expenditure of recent years, possibility of issuing H shares
Mar 15,
2010 HTC Face to face talk Zhongjin Co.
Hong Kong
Hangzhou Bank Share, order trend, influence of financial crisis,
productivity, competitors, share equity reformation
April 17,
2010 HTC Telephone
communication
Huale
Investment
Production circle, order source, influence of material price, financing
resource
Apr 1,
2010 HTC Face to face talk Orient Securities Product introduction, industry profile, route of B shares, orders, future
development
Apr 21,
2010 HTC Face to face talk Individual
shareholder
Business structure, employee wages, residue heat power plant, investor
relationship, preferable policies
May 13,
2010 HTC Face to face talk J.P. Morgan
Growth point of 2010, competitions, advantages of the Company, price
comparison, energy-saving advantage, employees, market share, overseas
market, productivity
May 14
2010 HTC Face to face talk China Fund Raw material, orders, 3-year expectation, advantages, overseas market
Jun 25,
2010 HTC Face to face talk Haitong
Securities
Industrial and international trend, the holding shareholder, services, residue
heat recycling productsHangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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§7 Financial Report
7.1 Auditor’s Opinion
Financial Report √Not audited □ Audited
7.2 Financial Statements
7.2.1 Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd. Ended June 30, 2010 in RMB Yuan
Balance at the end of term Balance at the beginning of year
Items
Consolidated Parent company Consolidated Parent company
Current asset:
Monetary capital 468,533,578.69 149,989,673.29 486,439,602.82 100,717,329.17
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 569,736,165.06 363,217,504.37 585,510,190.21 434,620,525.22
Account receivable 1,589,408,947.69 1,322,963,582.45 1,329,433,302.65 1,115,063,042.90
Prepayment 318,739,151.06 123,948,075.50 219,791,399.56 78,676,643.13
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 29,050,437.43 24,249,125.64 17,333,756.04 16,869,617.12
Repurchasing of financial assets
Inventories 1,174,826,940.07 869,692,814.01 1,009,100,047.12 774,155,875.55
Non-current asset due in 1 year
Other current asset 108,275.80
Total of current asset 4,150,295,220.00 2,854,060,775.26 3,647,716,574.20 2,520,103,033.09
Non-current assets
Loans and payment on other’s behalf disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 402,586,451.62 472,280,099.47 402,586,451.62 472,280,099.47
Investment properties
Fixed assets 516,774,651.56 336,300,049.36 528,315,267.49 350,458,537.59
Construction in process 181,058,362.57 39,587,413.97 133,993,100.65 14,507,898.96
Engineering goods 411,981.80
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 160,138,182.23 46,724,159.17 141,444,716.26 47,902,806.89Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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R&D expense
Goodwill 187,501.55
Long-term amortizable expenses 9,716,028.93 7,438,801.13 8,092,318.74 7,438,801.13
Differed income tax asset 52,709,215.19 39,114,576.96 48,623,815.34 39,114,576.96
Other non-current asset
Total of non-current assets 1,323,582,375.45 941,445,100.06 1,263,055,670.10 931,702,721.00
Total of assets 5,473,877,595.45 3,795,505,875.32 4,910,772,244.30 3,451,805,754.09
Current liabilities
Short-term loans 195,000,000.00 136,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 70,004,809.92 47,141,782.92 103,656,815.22 155,170,592.22
Account payable 536,270,437.77 387,235,375.67 320,766,161.48 202,453,257.90
Prepayment received 1,387,427,722.19 961,417,044.87 1,233,884,154.03 872,137,702.04
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 35,749,491.69 23,286,688.39 23,241,197.54 14,713,270.72
Tax payable 76,686,730.39 66,942,907.15 89,484,573.70 62,319,098.96
Interest payable 195,250.00
Dividend payable
Other account payable 88,031,611.00 31,969,193.39 24,231,372.13 14,582,847.36
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year
Other current liability
Total of current liability 2,389,170,802.96 1,517,992,992.39 1,931,459,524.10 1,321,376,769.20
Non-current liabilities
Long-term borrowings 260,463,800.00 190,463,800.00 247,463,800.00 190,463,800.00
Bond payable
Long-term payable 330,000.00 330,000.00
Special payable
Contingent liabilities
Differed income tax liability 1,225,366.39 1,225,366.39 1,225,366.39 1,225,366.39
Other non-recurring liabilities 8,004,440.00 6,362,250.00 3,322,740.00 1,942,250.00
Total of non-current liabilities 270,023,606.39 198,051,416.39 252,341,906.39 193,631,416.39
Total of liability 2,659,194,409.35 1,716,044,408.78 2,183,801,430.49 1,515,008,185.59
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 483,340,000.00 483,340,000.00 371,800,000.00 371,800,000.00
Capital reserves 138,953,250.09 138,953,250.09 138,953,250.09 138,953,250.09
Less: Shares in stock
Special reserves
Surplus reserves 327,932,742.87 309,176,337.74 327,932,742.87 309,176,337.74Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
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Common risk provision
Retained profit 1,492,988,294.96 1,147,991,878.71 1,497,423,473.50 1,116,867,980.67
Different of foreign currency translation
Total of owner’s equity belong to the parent company 2,443,214,287.92 2,079,461,466.54 2,336,109,466.46 1,936,797,568.50
Minor shareholders’ equity 371,468,898.18 390,861,347.35
Total of owners’ equity 2,814,683,186.10 2,079,461,466.54 2,726,970,813.81 1,936,797,568.50
Total of liabilities and owners’ equity 5,473,877,595.45 3,795,505,875.32 4,910,772,244.30 3,451,805,754.09
7.2.2 Income Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan - Jun 2010 in RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Total revenue 1,840,515,550.97 1,315,034,718.53 1,646,527,768.37 1,073,162,456.36
Incl. Business income 1,840,515,550.97 1,315,034,718.53 1,646,527,768.37 1,073,162,456.36
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,477,083,633.93 1,086,383,790.37 1,338,614,316.66 897,083,253.50
Incl. Business cost 1,180,414,236.98 882,879,318.32 1,012,507,507.68 647,775,737.01
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 5,129,818.23 1,947,356.38 5,160,353.50 1,470,364.64
Sales expense 54,567,107.05 35,616,211.64 45,458,660.63 31,560,637.45
Administrative expense 177,912,362.66 122,113,732.45 249,922,132.65 201,008,922.60
Financial expenses 9,719,615.00 4,603,057.83 -6,368,268.96 -8,223,147.20
Asset impairment loss 49,340,494.01 39,224,113.75 31,933,931.16 23,490,739.00
Plus: Gains from change of fair value (“-“ for loss)
Investment gain (“-“ for loss) 1,100,735.77 98,297,793.27 29,898,083.98 74,878,300.00
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 364,532,652.81 326,948,721.43 337,811,535.69 250,957,502.86
Plus: Non business income 2,207,680.04 891,907.71 3,489,025.96 274,985.76
Less: Non-business expenses 5,058,255.04 2,382,712.61 2,868,349.38 1,673,162.45
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 361,682,077.81 325,457,916.53 338,432,212.27 249,559,326.17
Less: Income tax expenses 55,770,552.85 34,074,018.49 50,301,587.28 26,202,153.93
V. Net profit (“-“ for net loss) 305,911,524.96 291,383,898.04 288,130,624.99 223,357,172.24
Net profit attributable to the owners of parent company 255,824,821.46 291,383,898.04 238,780,981.80 223,357,172.24
Minor shareholders’ equity 50,086,703.50 49,349,643.19
VI. Earnings per share:Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
12
(I) Basic earnings per share 0.5293 0.6422
(II) Diluted earnings per share 0.5293 0.6422
VII. Other misc. incomes
VIII. Total of misc. incomes 305,911,524.96 291,383,898.04 288,130,624.99 223,357,172.24
Total of misc. incomes attributable to the owners of the
parent company 255,824,821.46 291,383,898.04 238,780,981.80 223,357,172.24
Total misc gains attributable to the minor shareholders 50,086,703.50 49,349,643.19
7.2.3 Cash Flow Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan - Jun 2010 in RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Net cash flow from business operation
Cash received from sales of products and providing of
services 1,762,387,472.25 1,107,857,783.61 1,406,430,485.49 938,720,443.94
Net increase of customer deposits and capital kept for
brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial
bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 1,069,300.00 15,999,725.87 14,407,182.93
Other cash received from business operation 28,631,978.56 5,500,330.14 20,064,437.32 2,191,871.00
Sub-total of cash inflow from business activities 1,792,088,750.81 1,113,358,113.75 1,442,494,648.68 955,319,497.87
Cash paid for purchasing of merchandise and services 1,074,285,012.58 665,615,592.59 1,042,124,631.51 839,332,022.58
Net increase of client trade and advance
Net increase of savings in central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 207,469,163.90 164,121,586.78 191,294,908.68 152,196,676.51
Taxes paid 191,337,679.45 115,386,353.49 160,723,076.96 100,812,561.79
Other cash paid for business activities 109,021,931.61 35,380,449.46 58,126,016.46 20,394,180.04
Sub-total of cash outflow from business activities 1,582,113,787.54 980,503,982.32 1,452,268,633.61 1,112,735,440.92
Cash flow generated by business operation, net 209,974,963.27 132,854,131.43 -9,773,984.93 -157,415,943.05
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 1,100,735.77 98,197,057.50 30,114,561.65 92,090,800.00
Net cash retrieved from disposal of fixed assets,
intangible assets, and other long-term assets 92,900.00 72,950.00 146,400.00 146,400.00Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
13
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received 90,868.96 100,735.77
Sub-total of cash inflow due to investment activities 1,284,504.73 98,370,743.27 30,260,961.65 92,237,200.00
Cash paid for construction of fixed assets, intangible
assets and other long-term assets 123,511,525.92 28,680,728.15 24,019,009.01 7,944,707.66
Cash paid as investment 700,000.00 1,937,647.85 1,937,647.85
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment
activities 124,211,525.92 28,680,728.15 25,956,656.86 9,882,355.51
Net cash flow generated by investment -122,927,021.19 69,690,015.12 4,304,304.79 82,354,844.49
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor
shareholders
Cash received as loans 193,000,000.00 287,463,800.00 140,463,800.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 193,000,000.00 287,463,800.00 140,463,800.00
Cash to repay debts 71,000,000.00 105,000,000.00
Cash paid as dividend, profit, or interests 226,621,543.69 152,939,465.11 210,780,258.38 151,503,175.10
Incl. Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities 3,000,000.00
Subtotal of cash outflow due to financing activities 297,621,543.69 152,939,465.11 318,780,258.38 151,503,175.10
Net cash flow generated by financing -104,621,543.69 -152,939,465.11 -31,316,458.38 -11,039,375.10
IV. Influence of exchange rate alternation on cash and cash
equivalents -332,422.52 -332,337.32 13,042,975.99 13,042,967.12
V. Net increase of cash and cash equivalents -17,906,024.13 49,272,344.12 -23,743,162.53 -73,057,506.54
Plus: Balance of cash and cash equivalents at the
beginning of term 486,439,602.82 100,717,329.17 450,103,030.94 158,711,304.02
VI. Balance of cash and cash equivalents at the end of term 468,533,578.69 149,989,673.29 426,359,868.41 85,653,797.48Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
14
7.2.4 Change in Owners’ Equities (Consolidated)
Prepared by: Hangzhou Steam Turbine Co., Ltd. The 1st Half of 2010 in RMB Yuan
Amount of the Current Term Amount of Last Year
Owners’ Equity Attributable to the Parent Company Owners’ Equity Attributable to the Parent Company
Items Capital
paid in (or
share
capital)
Capital
reserves
Less:
Shares in
stock
Special
reserves
Surplus
reserves
Common
risk
provision
Retained
profit Others
Minor
shareholde
rs’ equity
Total of
owners’
equity
Capital
paid in (or
share
capital)
Capital
reserves
Less:
Shares in
stock
Special
reserves
Surplus
reserves
Common
risk
provision
Retained
profit Others
Minor
shareholde
rs’ equity
Total of
owners’
equity
I. Balance at the end of last year 371,800,0
00.00
138,953,2
50.09
327,932,7
42.87
1,497,423,
473.50
390,861,3
47.35
2,726,970,
813.81
371,800,0
00.00
138,953,2
50.09
279,205,8
27.20
1,111,352,
798.36
306,483,9
27.77
2,207,795,
803.42
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current
year
371,800,0
00.00
138,953,2
50.09
327,932,7
42.87
1,497,423,
473.50
390,861,3
47.35
2,726,970,
813.81
371,800,0
00.00
138,953,2
50.09
279,205,8
27.20
1,111,352,
798.36
306,483,9
27.77
2,207,795,
803.42
III. Changed in the current year (“-“ for
decrease)
111,540,0
00.00 -4,435,178
.54
-19,392,44
9.17
87,712,37
2.29
48,726,91
5.67
386,070,6
75.14
84,377,41
9.58
519,175,0
10.39
(I) Net profit 255,824,8
21.46
50,086,70
3.50
305,911,5
24.96
583,517,5
90.81
121,356,2
41.00
704,873,8
31.81
(II) Other misc. income
Total of (I) and (II) 255,824,8
21.46
50,086,70
3.50
305,911,5
24.96
583,517,5
90.81
121,356,2
41.00
704,873,8
31.81
(III) Investment or decreasing of
capital by owners 6,585,711.
86
6,585,711.
86
1. Capital inputted by owners 18,067,56
4.86
18,067,56
4.86
2. Amount of shares paid and
accounted as owners’ equity
3. Others -11,481,85
3.00
-11,481,85
3.00
(IV) Profit allotment 111,540,0
00.00 -260,260,0
00.00
-69,479,15
2.67
-218,199,1
52.67
48,726,91
5.67
-197,446,9
15.67
-43,564,53
3.28
-192,284,5
33.28
1. Providing of surplus reserves 48,726,91
5.67
-48,726,91
5.67
2. Common risk provision
3. Allotment to the owners (or
shareholders)
111,540,0
00.00 -260,260,0
00.00
-69,479,15
2.67
-218,199,1
52.67
-148,720,0
00.00
-43,564,53
3.28
-192,284,5
33.28
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
IV. Balance at the end of this term 483,340,0
00.00
138,953,2
50.09
327,932,7
42.87
1,492,988,
294.96
371,468,8
98.18
2,814,683,
186.10
371,800,0
00.00
138,953,2
50.09
327,932,7
42.87
1,497,423,
473.50
390,861,3
47.35
2,726,970,
813.81Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
15
7.2.5 Change in Owners’ Equities (Parent Co.)
Prepared by: Hangzhou Steam Turbine Co., Ltd. The 1st Half of 2010 in RMB Yuan
Amount of the Current Term Amount of Last Year
Items Capital paid
in (or share
capital)
Capital
reserves
Less: Shares
in stock
Special
reserves
Surplus
reserves
Common risk
provision
Retained
profit
Total of
owners’
equity
Capital paid
in (or share
capital)
Capital
reserves
Less: Shares
in stock
Special
reserves
Surplus
reserves
Common risk
provision
Retained
profit
Total of
owners’
equity
I. Balance at the end of last year 371,800,000.
00
138,953,250.
09
309,176,337.
74
1,116,867,98
0.67
1,936,797,56
8.50
371,800,000.
00
138,953,250.
09
260,449,422.
07
827,045,739.
68
1,598,248,41
1.84
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current
year
371,800,000.
00
138,953,250.
09
309,176,337.
74
1,116,867,98
0.67
1,936,797,56
8.50
371,800,000.
00
138,953,250.
09
260,449,422.
07
827,045,739.
68
1,598,248,41
1.84
III. Changed in the current year (“-“ for
decrease)
111,540,000.
00 31,123,898.0
4
142,663,898.
04
48,726,915.6
7
289,822,240.
99
338,549,156.
66
(I) Net profit 291,383,898.
04
291,383,898.
04
487,269,156.
66
487,269,156.
66
(II) Other misc. income
Total of (I) and (II) 291,383,898.
04
291,383,898.
04
487,269,156.
66
487,269,156.
66
(III) Investment or decreasing of
capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment 111,540,000.
00 -260,260,000
.00
-148,720,000
.00
48,726,915.6
7
-197,446,915
.67
-148,720,000
.00
1. Providing of surplus reserves 48,726,915.6
7
-48,726,915.
67
2. Common risk provision
3. Allotment to the owners (or
shareholders)
111,540,000.
00 -260,260,000
.00
-148,720,000
.00
-148,720,000
.00
-148,720,000
.00
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
IV. Balance at the end of this term 483,340,000.
00
138,953,250.
09
309,176,337.
74
1,147,991,87
8.71
2,079,461,46
6.54
371,800,000.
00
138,953,250.
09
309,176,337.
74
1,116,867,98
0.67
1,936,797,56
8.50Hangzhou Steam Turbine Co., Ltd. Interim Report 2010 (Summary)
16
7.3 Notes to the financial statements
7.3.1 In case of change in accounting policies, accounting estimation, or correction of accounting errors,
please provide details of the change and the influence on data.
□applicable √ not applicable
7.3.2 If the consolidation range of the financial report has changed significantly, please provide details and
the influences on financial data
□applicable √ not applicable
7.3.3 If the certified public accounts has issued a non-standard qualified opinion auditor’s report, list the
relevant notes to the issues involved in the report.
□applicable √ not applicable
Hangzhou Steam Turbine Co., Ltd.
Legal representative: Mr. Nie Zhonghai
August 28, 2010
