Stock Code: 200771       Stock ID: Hangqilun B           Announcement No. 2018-40



                            Hangzhou Steam Turbine Co., Ltd.

                Announcement of Dividend Distribution for Year 2017



     The members of the Board and the Company acknowledge being responsible for the

truthfulness, accuracy, and completeness of the announcement. Not any false record, misleading

statement or significant omission carried in this announcement.




Hangzhou Steam Turbine Co., Ltd. dividend distribution plan has been approved by the 2017

annual shareholders’ meeting held on April 27, 2018.The details as followed:
1. The dividend plan
      The dividend plan for Year 2017: Based on 754,010,400 shares, the Company decided to
distribute the before-tax cash dividend of RMB 0.5 per 10 shares (tax included), the foreign
non-residential enterprise distributed the after -tax cash dividend of RMB 0.45 per 10 shares, for
churchyard individual of B shareholders are subject different tax ratio, distributed cash dividend of
RMB 0.5 per 10 shares firstly, and tax shall be paid according to the actual term of shareholding
after reducing of shares1.

 [Note 1: On first –in –first –out basis, shareholding periods are calculated upon each
shareholders’ account ,namely RMB 0.1 of tax per 10 shares for under
1month(include);RMB0.05 of tax per share for between 1 month and 1year(include);no tax is
payable for over one year. ]
      Special note: Since the company is a Sino-foreign joint venture, individual foreign investors
may temporarily be exempted from dividend income tax.
      Dividend for B shares will be distributed in Hong Kong Dollar. The exchange rate will be the
medial rate between RMB and HKD (HKD1.00 = RMB0.8111) published by People’s Bank of
China at the 1st bank day (May 2, 2018) after the Shareholders’ Annual Meeting , Future
withholding of B shares, personal shareholders need to pay taxes, reference to the above exchange
rate translation.
2. Registration day and Ex-dividend day
The final trading day: May 25, 2018(T)
Ex-dividend date: May 28, 2018(T+1)
      B share registration date: May 30, 2018(T+3)
The equity registration date for the equity distribution of domestic shares is: May 30, 2018.
3. Qualifications for the dividend
All of the B shareholders registered by China Securities Depository & Clearing Corporation
Ltd.Shenzhen Branch upon the closing of Shenzhen Stock Exchange in the afternoon of May 30,
2018(T+3) (The final trading day is May 25, 2018). By the close of the Shenzhen Stock Exchange
on the afternoon of May 30, 2018, all shareholders of the company's domestic shares registered in
the China Clearing Shenzhen Branch.

4. Way of distribution
The circulation B shares dividend will be directly transferred on May 30, 2018 into the
shareholder’s accounts of entrusted Security agency or entrusted bank; Shareholders whose B
shares are entrusted on May 30, 2018, they can still withdraw their dividends at the former
entrusted security agency or the entrusted banks.
Dividends for the shareholders with state-owned legal-person shares and executives locked shares
will be distributed directly by the company;
The sponsor's state-owned legal person shares cash bonus will be distributed by the company on
its own.
5. Others
If the B shareholder is not belong to the churchyard individual and non-residential enterprise ,but
their bonuses tax are deducted, please contact with the Company before June 30, 2018 (including
the date ), and provide related materials requested by the Tax bureau, company will help to refund
the tax after affirmed.
6. Consulting agencies and contacts
1. Consulting agency: Securities Regulatory Office of Hangzhou Steam Turbine Co., Ltd.
2. Consulting address:No.375, Shiqiao Road, Hangzhou City, Zhejiang.
3. Consulting contact: Wang Caihua, Fang Zixi
4.Consulting telephone: 0571-85780438、0571-85784758
5. Fax: 0571-85780433




                           Hangzhou Steam Turbine Co., Ltd.

                                 May 22, 2018