Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2019-52
Hangzhou Steam Turbine Co., Ltd.
SEMIANNUAL FINANCIAL REPORT 2019
（Stock Code：200771）
August 2019
I. Auditors’ Report
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd
June 30,2019
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 1,819,859,022.91 1,382,392,009.59
Settlement provision
Outgoing call loan
Transactional financial assets 578,769,000.00
Financial assets measured at fair value with variations accounted into
current income account
Derivative financial assets
Notes receivable 480,606,384.84 595,089,175.22
Account receivable 2,060,368,351.36 1,940,798,255.26
Financing of receivables
Prepayments 415,291,957.37 370,958,990.74
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable 102,819,441.41 32,552,458.76
Including：Interest receivable 0.00 0.00
Dividend receivable 84,526,094.10 16,557,292.60
Repurchasing of financial assets
Inventories 2,222,781,933.26 2,188,121,342.87
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 65,115,936.29 1,188,747,955.74
Total of current assets 7,745,612,027.44 7,698,660,188.18
Non-current assets：
Loans and payment on other’s behalf disbursed
Debt investment
Available for sale of financial assets 0.00 2,130,076,555.20
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 10,261,439.29 8,221,439.29
Other equity instruments investment 2,264,720,465.98 0.00
Other non-current financial assets 131,881,883.86 0.00
Property investment
Fixed assets 761,603,992.58 783,740,928.49
Construction in progress 659,588,447.28 454,767,328.93
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 276,098,586.15 279,740,756.49
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 214,788,537.17 213,962,707.23
Other non-current asset
Total of non-current assets 4,318,943,352.31 3,870,509,715.63
Total of assets 12,064,555,379.75 11,569,169,903.81
Current liabilities
Short-term loans 97,500,000.00 139,600,000.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair value with variations accounted into
current income account
Derivative financial liabilities
Notes payable 237,870,569.88 263,897,462.79
Account payable 1,188,329,724.43 1,086,685,918.74
Advance receipts 2,555,520,011.33 2,582,234,158.36
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 65,138,079.59 86,390,955.29
Tax payable 22,926,791.79 62,405,200.62
Other account payable 37,609,410.52 36,904,303.01
Including：Interest payable 100,958.90 437,314.72
Dividend payable 0.00 0.00
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1 year 100,100,000.00 100,100,000.00
Other current liability
Total of current liability 4,304,994,587.54 4,358,217,998.81
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 22,600,000.00 22,700,000.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 785,666,859.28 474,876,451.26
Long-term remuneration payable to staff
Expected liabilities
Deferred income 42,773,215.20 44,675,128.30
Deferred income tax liability 282,127,222.10 244,169,946.57
Other non-current liabilities
Total non-current liabilities 1,133,167,296.58 786,421,526.13
Total of liability 5,438,161,884.12 5,144,639,524.94
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 151,684,419.65 151,684,419.65
Less：Shares in stock
Other comprehensive income 1,592,318,152.64 1,377,168,522.74
Special reserve 20,236,633.76 21,020,671.47
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Retained profit 3,092,067,160.53 3,082,544,107.52
Total of owner’s equity belong to the parent company 6,231,429,574.36 6,007,540,929.16
Minority shareholders’ equity 394,963,921.27 416,989,449.71
Total of owners’ equity 6,626,393,495.63 6,424,530,378.87
Total of liabilities and owners’ equity 12,064,555,379.75 11,569,169,903.81
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Chan
2.Parent Company Balance Sheet
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 1,186,805,183.26 877,357,020.98
Transactional financial assets 270,000,000.00
Financial assets measured at fair value with variations accounted into
current income account
Derivative financial assets
Notes receivable 183,102,369.76 302,284,986.43
Account receivable 1,518,779,763.11 1,374,628,210.45
Financing of receivables
Prepayments 209,504,216.64 208,498,421.20
Other account receivable 89,097,232.56 19,984,760.06
Including：Interest receivable
Dividend receivable 84,526,094.10 16,557,292.60
Inventories 1,555,631,232.70 1,584,030,951.83
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 19,651,815.47 890,000,000.00
Total of current assets 5,032,571,813.50 5,256,784,350.95
Non-current assets：
Debt investment
Available for sale of financial assets 2,090,631,297.62
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 860,732,321.62 502,919,378.03
Other equity instruments investment 2,264,720,465.98
Other non-current financial assets 92,436,626.28
Property investment
Fixed assets 439,398,797.03 448,890,495.75
Construction in progress 236,257,765.82 142,310,055.48
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 163,711,361.27 165,734,347.73
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 163,692,893.96 163,871,631.81
Other non-current asset
Total of non-current assets 4,220,950,231.96 3,514,357,206.42
Total of assets 9,253,522,045.46 8,771,141,557.37
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair value with variations accounted into
current income account
Derivative financial liabilities
Notes payable 14,000,000.00 24,200,000.00
Account payable 654,106,514.35 630,653,099.86
Advance receipts 1,780,682,848.49 1,877,069,335.29
Contract Liabilities
Employees’ wage payable 38,755,706.92 43,332,523.01
Tax payable 480,555.24 37,809,874.53
Other account payable 22,183,637.69 24,708,959.22
Including：Interest payable 100,958.90 212,010.69
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year 100,000,000.00 100,000,000.00
Other current liability
Total of current liability 2,610,209,262.69 2,737,773,791.91
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 575,788,940.88 264,512,388.24
Long-term remuneration payable to staff
Expected liabilities
Deferred income 41,269,230.20 41,944,793.30
Deferred income tax liability 282,127,222.10 244,169,946.57
Other non-current liabilities
Total non-current liabilities 899,185,393.18 550,627,128.11
Total of liability 3,509,394,655.87 3,288,400,920.02
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 138,953,250.09 138,953,250.09
Less：Shares in stock
Other comprehensive income 1,592,701,462.08 1,377,784,111.74
Special reserve 7,391,229.80 7,609,505.31
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 2,648,714,644.97 2,602,026,967.56
Total of owners’ equity 5,744,127,389.59 5,482,740,637.35
Total of liabilities and owners’ equity 9,253,522,045.46 8,771,141,557.37
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Chan
3.Consolidated Income Statement
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 1,920,181,703.03 2,284,130,982.13
Incl：Business income 1,920,181,703.03 2,284,130,982.13
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,814,433,246.91 2,107,752,481.78
Incl：Business cost 1,366,404,401.26 1,612,116,152.26
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 13,458,140.99 29,819,229.04
Sales expense 86,895,939.32 77,008,302.22
Administrative expense 235,168,325.98 237,456,060.16
R & D expense 116,760,942.52 151,349,561.03
Financial expenses -4,254,503.16 3,177.07
Including：Interest expense 7,163,329.72 5,903,346.62
Interest income 13,686,150.29 6,286,823.72
Add：Other income 15,761,589.03 20,337,694.45
Investment gain（“-”for loss） 99,460,322.66 37,144,607.44
Including: investment gains from affiliates
Financial assets measured at amortized cost cease to be recognized as
income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value -1,474,755.34
Credit impairment loss
Impairment loss of assets 6,423,806.70 -43,111,352.82
Assets disposal income -1,183.02
III. Operational profit（“-”for loss） 225,918,236.15 190,749,449.42
Add ：Non-operational income 744,839.16 4,189,726.48
Less: Non-operating expense 5,220,762.28 2,591,154.54
IV. Total profit(“-”for loss) 221,442,313.03 192,348,021.36
Less：Income tax expenses 36,775,399.29 31,977,871.82
V. Net profit 184,666,913.74 160,370,149.54
(I) Classification by business continuity
1.Net continuing operating profit
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 160,325,133.00 128,510,594.01
2.Minority shareholders’ equity 24,341,780.74 31,859,555.53
VI. Net after-tax of other comprehensive income 215,462,868.76 -72,709,845.63
Net of profit of other comprehensive income attributable to owners of the 215,149,629.90 -72,663,722.00
parent company.
（I）Other comprehensive income items that will not be reclassified into
gains/losses in the subsequent accounting period 214,917,350.34 0.00
1.Re-measurement of defined benefit plans of changes in net debt or net a
ssets
2.Other comprehensive income under the equity method investee can not
be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments 214,917,350.34
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
232,279.56 -72,663,722.00
Other comprehensive income that will be reclassified into profit or loss.
1.Other comprehensive income under the equity method investee can be r
eclassified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
3.Gains and losses from changes in fair value available for sale financial -72,629,519.42
assets
4. Other comprehensive income arising from the reclassification of
financial assets
5.Held-to-maturity investments reclassified to gains and losses of availabl
e for sale financial assets
6. Allowance for credit impairments in investments in other debt
obligations
7. Reserve for cash flow hedges
8. Translation differences in currency financial statements 232,279.56 -34,202.58
9.Other
Net of profit of other comprehensive income attributable to Minority
shareholders’ equity 313,238.86 -46,123.63
VII. Total comprehensive income 400,129,782.50 87,660,303.91
Total comprehensive income attributable to the owner of the parent
company 375,474,762.90 55,846,872.01
Total comprehensive income attributable minority shareholders 24,655,019.60 31,813,431.90
VIII. Earnings per share
（I）Basic earnings per share 0.21 0.17
(II)Diluted earnings per share 0.21 0.17
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Chan
4. Income statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 1,201,433,732.23 1,490,738,884.48
Incl：Business cost 868,692,769.43 1,092,425,706.34
Business tax and surcharge 6,969,423.29 19,980,875.77
Sales expense 48,049,960.92 42,075,448.13
Administrative expense 159,919,647.14 154,842,987.96
R & D expense 72,044,163.87 112,115,169.45
Financial expenses -7,258,639.20 -1,279,101.79
Including：Interest expenses 3,304,641.54 2,904,737.05
Interest income 12,022,468.87 4,229,484.01
Add：Other income 5,455,874.12 18,256,287.33
Investment gain（“-”for loss） 152,548,740.20 97,645,790.91
Including: investment gains from affiliates
Financial assets measured at amortized cost cease to be recognized as
income
Net exposure hedging income
Changing income of fair value -1,474,755.34
Credit impairment loss
Impairment loss of assets -2,195,339.82 32,973,333.00
Assets disposal income
II. Operational profit（“-”for loss） 211,741,605.58 153,506,543.86
Add ：Non-operational income 631,962.46 4,125,525.27
Less：Non -operational expenses 2,904,084.35 991,089.95
III. Total profit(“-”for loss) 209,469,483.69 156,640,979.18
Less：Income tax expenses 11,979,726.29 14,024,749.88
IV. Net profit 197,489,757.40 142,616,229.30
1.Net continuing operating profit 197,489,757.40 142,616,229.30
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 214,917,350.34 -72,629,519.42
（I）Other comprehensive income items that will not be reclassified into
214,917,350.34
gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be rec
lassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments 214,917,350.34
4. Changes in the fair value of the company’s credit risks
5.Other
（II） -72,629,519.42
Other comprehensive income that will be reclassified into profit or loss.
1.Other comprehensive income under the equity method investee can be reclass
ified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Gains and losses from changes in fair value available for sale financial assets -72,629,519.42
4. Other comprehensive income arising from the reclassification of financial -72,629,519.42
assets
5.Held-to-maturity investments reclassified to gains and losses of available for
sale financial assets
6. Allowance for credit impairments in investments in other debt obligations
7. Reserve for cash flow hedges
8. Translation differences in currency financial statements
9.Other
VI. Total comprehensive income 412,407,107.74 69,986,709.88
VII. Earnings per share
（I）Basic earnings per share 0.26 0.19
(II)Diluted earnings per share 0.26 0.19
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Chan
5. Consolidated Cash flow statement
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,518,810,866.20 1,990,685,784.21
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
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 5,744,179.17 2,343,735.23
Other cash received from business operation 26,127,131.84 21,813,193.03
Sub-total of cash inflow 1,550,682,177.21 2,014,842,712.47
Cash paid for purchasing of merchandise and services 898,280,785.94 848,782,286.99
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 379,575,581.35 354,090,861.86
Taxes paid 180,054,533.44 170,805,653.61
Other cash paid for business activities 102,111,872.85 83,376,719.28
Sub-total of cash outflow from business activities 1,560,022,773.58 1,457,055,521.74
Net cash generated from /used in operating activities -9,340,596.37 557,787,190.73
II. Cash flow generated by investing
Cash received from investment retrieving 0.00 100,000,000.00
Cash received as investment gains 31,491,521.16 37,144,607.44
Net cash retrieved from disposal of fixed assets, intangible assets, and other
long-term assets 24,493.28 0.00
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 2,050,778,164.28 2,054,176,329.00
Sub-total of cash inflow due to investment activities 2,082,294,178.72 2,191,320,936.44
Cash paid for construction of fixed assets, intangible assets and other
long-term assets 228,526,111.45 207,219,715.24
Cash paid as investment 13,440,000.00 16,000,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 1,157,904,000.00 2,477,114,000.00
Sub-total of cash outflow due to investment activities 1,399,870,111.45 2,700,333,715.24
Net cash flow generated by investment 682,424,067.27 -509,012,778.80
III.Cash flow generated by financing
Cash received as investment 0.00 0.00
Including: Cash received as investment from minor shareholders
Cash received as loans 77,700,000.00 115,000,000.00
Cash received from bond placing
Other financing –related cash received 0.00 0.00
Sub-total of cash inflow from financing activities 77,700,000.00 115,000,000.00
Cash to repay debts 119,900,000.00 72,600,000.00
Cash paid as dividend, profit, or interests 203,426,853.46 70,365,668.92
Including: Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities 2,530,666.67 2,530,666.67
Sub-total of cash outflow due to financing activities 325,857,520.13 145,496,335.59
Net cash flow generated by financing -248,157,520.13 -30,496,335.59
IV. Influence of exchange rate alternation on cash and cash equivalents -707,669.86 -516,323.71
V.Net increase of cash and cash equivalents 424,218,280.91 17,761,752.63
Add: balance of cash and cash equivalents at the beginning of term 1,262,186,817.20 1,137,492,834.83
VI ..Balance of cash and cash equivalents at the end of term 1,686,405,098.11 1,155,254,587.46
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Chan
6. Cash flow statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 771,903,511.87 1,092,421,368.98
Tax returned
Other cash received from business operation 13,952,892.56 5,955,302.39
Sub-total of cash inflow 785,856,404.43 1,098,376,671.37
Cash paid for purchasing of merchandise and services 469,234,191.52 437,942,428.63
Cash paid to staffs or paid for staffs 246,224,211.20 227,570,629.51
Taxes paid 109,451,334.92 90,652,184.51
Other cash paid for business activities 43,083,180.34 26,292,496.98
Sub-total of cash outflow from business activities 867,992,917.98 782,457,739.63
Net cash generated from /used in operating activities -82,136,513.55 315,918,931.74
II. Cash flow generated by investing
Cash received from investment retrieving 100,000,000.00
Cash received as investment gains 84,579,938.70 97,645,790.91
Net cash retrieved from disposal of fixed assets, intangible assets,
and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 1,236,201,629.52 1,510,049,339.73
Sub-total of cash inflow due to investment activities 1,320,781,568.22 1,707,695,130.64
Cash paid for construction of fixed assets, intangible assets and
other long-term assets 102,779,580.07 67,740,573.08
Cash paid as investment 369,212,943.59 16,000,000.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 302,000,000.00 1,780,000,000.00
Sub-total of cash outflow due to investment activities 773,992,523.66 1,863,740,573.08
Net cash flow generated by investment 546,789,044.56 -156,045,442.44
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts
Cash paid as dividend, profit, or interests 154,217,773.32 40,616,895.37
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities 154,217,773.32 40,616,895.37
Net cash flow generated by financing -154,217,773.32 -40,616,895.37
IV. Influence of exchange rate alternation on cash and cash
equivalents -976,692.26 -333,572.64
V.Net increase of cash and cash equivalents 309,458,065.43 118,923,021.29
Add: balance of cash and cash equivalents at the beginning of
term 842,347,117.83 650,546,455.53
VI ..Balance of cash and cash equivalents at the end of term 1,151,805,183.26 769,469,476.82
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Chan
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Semi-annual of 2019
Owner’s equity Attributable to the Parent Company
Other Equity Less
instrument Com
: Minor
Items Other mon Total of owners’
Shar Specialized Surplus Oth shareholders’
share Capita Capital reserves Comprehens risk Retained profit Subtotal equity
preferre Sustai Othe es in reserve reserves er equity
ive Income provi
d stock nable r stoc
sion
debt k
754,010,400 1,377,168,5 621,112,8 3,082,544,107.5 6,007,540,929.1 416,989,449.7 6,424,530,378.8
I.Balance at the end of last year 151,684,419.65 21,020,671.47
.00 22.74 07.78 2 6 1 7
Add: Change of accounting policy 0.00 0.00
Correcting of previous errors 0.00 0.00
Merger of entities under common
0.00 0.00
control
Other 0.00 0.00
II.Balance at the beginning of 754,010,400 1,377,168,5 621,112,8 3,082,544,107.5 6,007,540,929.1 416,989,449.7 6,424,530,378.8
151,684,419.65 21,020,671.47
current year .00 22.74 07.78 2 6 1 7
215,149,629 -22,025,528.4
III.Changed in the current year 0.00 0.00 0.00 0.00 0.00 0.00 -784,037.71 0.00 0.00 9,523,053.01 0.00 223,888,645.20 201,863,116.76
.90 4
215,149,629
（1）Total comprehensive income 160,325,133.00 375,474,762.90 24,655,019.60 400,129,782.50
.90
（II）Investment or decreasing of
0.00 0.00
capital by owners
1 ． Ordinary Shares invested by s 0.00 0.00
hareholders
2 ． Holders of other equity instru
0.00 0.00
ments invested capital
3．Amount of shares paid and
0.00 0.00
accounted as owners’ equity
4．Other 0.00 0.00
-46,358,790.0
（III）Profit allotment -150,802,079.99 -150,802,079.99 -197,160,869.99
0
1.Providing of surplus reserves 0.00 0.00
2.Providing of common risk
0.00 0.00
provisions
3．Allotment to the owners (or -46,358,790.0
-150,802,079.99 -150,802,079.99 -197,160,869.99
shareholders) 0
4．Other 0.00 0.00
(IV) Internal transferring of
0.00 0.00
owners’ equity
1. Capitalizing of capital reserves
0.00 0.00
(or to capital shares)
2. Capitalizing of surplus reserves
0.00 0.00
(or to capital shares)
3．Making up losses by surplus
0.00 0.00
reserves.
4.Change amount of defined
benefit plans that carry forward 0.00 0.00
Retained earnings
5．Other comprehensive income
0.00 0.00
carry-over retained earnings
6．Other 0.00 0.00
(V). Special reserves -784,037.71 -784,037.71 -321,758.04 -1,105,795.75
1. Provided this year 434,456.69 434,456.69 434,456.69
2．Used this term 1,218,494.40 1,218,494.40 321,758.04 1,540,252.44
（VI）Other 0.00 0.00
754,010,400 1,592,318,1 621,112,8 3,092,067,160.5 6,231,429,574.3 394,963,921.2 6,626,393,495.6
IV. Balance at the end of this term 0.00 0.00 0.00 151,684,419.65 0.00 20,236,633.76 0.00 0.00
.00 52.64 07.78 3 6 7 3
Legal representative：Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept：Jin Chan
Amount in last year
In RMB
Semi-annual of 2018
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Other Minor Total of
Items Less: Common
share
preferr
Capital Comprehe Specialize Surplus Retained shareholders owners’
Shares risk Other Subtotal
Capita Sustai reserves nsive d reserve reserves profit ’ equity equity
ed Other in stock provision
nable Income
stock
debt
754,010, 139,545,089. 1,570,358, 25,369,714 621,112,80 2,774,420, 5,884,816, 335,355,637 6,220,172,4
I.Balance at the end of last year
400.00 02 510.09 .61 7.78 288.05 809.55 .35 46.90
Add: Change of accounting policy 0.00 0.00
Correcting of previous errors 0.00 0.00
Merger of entities under common control 0.00 0.00
Other 0.00 0.00
754,010, 139,545,089. 1,570,358, 25,369,714 621,112,80 2,774,420, 5,884,816, 335,355,637 6,220,172,4
II.Balance at the beginning of current year
400.00 02 510.09 .61 7.78 288.05 809.55 .35 46.90
12,139,330.6 -193,189,9 -4,349,043 308,123,81 122,724,11 81,633,812. 204,357,931
III.Changed in the current year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 87.35 .14 9.47 9.61 36 .97
（1）Total comprehensive income -193,189,9 345,824,33 152,634,3 68,232,844. 220,867,196
87.35 9.47 52.12 54 .66
（II）Investment or decreasing of capital 12,139,330.6 12,139,33 74,763,561. 86,902,891.
by owners 3 0.63 25 88
1．Ordinary Shares invested by sharehold 12,139,330.6 12,139,33 74,763,561. 86,902,891.
ers 3 0.63 25 88
2 ． Holders of other equity instruments in
0.00 0.00
vested capital
3．Amount of shares paid and accounted
0.00 0.00
as owners’ equity
4．Other 0.00 0.00
-37,700,52 -37,700,52 -60,812,795. -98,513,315.
（III）Profit allotment
0.00 0.00 00 00
1.Providing of surplus reserves 0.00 0.00
2.Providing of common risk provisions 0.00 0.00
3．Allotment to the owners (or -37,700,52 -37,700,52 -60,812,795. -98,513,315.
shareholders) 0.00 0.00 00 00
4．Other 0.00 0.00
(IV) Internal transferring of owners’
0.00 0.00
equity
1. Capitalizing of capital reserves (or to
0.00 0.00
capital shares)
2. Capitalizing of surplus reserves (or to
0.00 0.00
capital shares)
3．Making up losses by surplus reserves. 0.00 0.00
4.Change amount of defined benefit plans
that carry forward 0.00 0.00
Retained earnings
5．Other comprehensive income
0.00 0.00
carry-over retained earnings
6．Other 0.00 0.00
-4,349,043 -4,349,043 -4,898,841.5
(V). Special reserves -549,798.43
.14 .14 7
-1,141,291 -1,141,291 -1,141,291.8
1. Provided this year 0.00
.88 .88 8
3,207,751. 3,207,751. 3,757,549.6
2．Used this term 549,798.43
26 26 9
（VI）Other 0.00 0.00
754,010, 151,684,419. 1,377,168, 21,020,671 621,112,80 3,082,544, 6,007,540, 416,989,449 6,424,530,3
IV. Balance at the end of this term 0.00 0.00 0.00 0.00 0.00 0.00
400.00 65 522.74 .47 7.78 107.52 929.16 .71 78.87
Legal representative：Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept：Jin Chan
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Semi-annual of 2019
Other Equity instrument
Less: Other Ot
Items preferr Specialized Total of owners’
Share capital Sustai Capital reserves Shares Comprehensive Surplus reserves Retained profit he
ed Other reserve equity
nable in stock Income r
stock
debt
I.Balance at the end of last year 754,010,400.00 138,953,250.09 1,377,784,111.74 7,609,505.31 602,356,402.65 2,602,026,967.56 5,482,740,637.35
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current
754,010,400.00 138,953,250.09 1,377,784,111.74 7,609,505.31 602,356,402.65 2,602,026,967.56 5,482,740,637.35
year
III.Changed in the current year 214,917,350.34 -218,275.51 46,687,677.41 261,386,752.24
（I）Total comprehensive income 214,917,350.34 197,489,757.40 412,407,107.74
(II) Investment or decreasing of capital
by owners
1 ． Ordinary Shares invested by sharehol
ders
2 ． Holders of other equity instruments i
nvested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other
（III）Profit allotment -150,802,079.99 -150,802,079.99
1.Providing of surplus reserves
2．Allotment to the owners (or
-150,802,079.99 -150,802,079.99
shareholders)
3．Other
(IV) 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.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V) Special reserves -218,275.51 -218,275.51
1. Provided this year 434,456.69 434,456.69
2．Used this term 652,732.20 652,732.20
（VI）Other
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 1,592,701,462.08 7,391,229.80 602,356,402.65 2,648,714,644.97 5,744,127,389.59
Legal representative：Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept：Jin Chan
Amount in last year
In RMB
Semi-annual of 2018
Other Equity
instrument Less:
Items Shares Other Comprehensive Specialized Total of owners’
Share Capital prefe Capital reserves Surplus reserves Retained profit Other
Sust in Income reserve equity
rred Othe
aina
stoc r stock
ble
k
debt
I.Balance at the end of last year 754,010,400.00 138,953,250.09 1,570,912,609.09 9,629,800.19 602,356,402.65 2,298,641,960.41 5,374,504,422.43
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current
754,010,400.00 138,953,250.09 1,570,912,609.09 9,629,800.19 602,356,402.65 2,298,641,960.41 5,374,504,422.43
year
III.Changed in the current year -72,629,519.42 -207,180.79 104,915,709.30 32,079,009.09
（I）Total comprehensive income -72,629,519.42 142,616,229.30 69,986,709.88
(II) Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by shar
eholders
2．Holders of other equity instrumen
ts invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment -37,700,520.00 -37,700,520.00
1.Providing of surplus reserves
2．Allotment to the owners (or
-37,700,520.00 -37,700,520.00
shareholders)
3．Other
(IV) 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.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V) Special reserves -207,180.79 -207,180.79
1. Provided this year 706,095.97 706,095.97
2．Used this term 913,276.76 913,276.76
（VI）Other
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 1,498,283,089.67 9,422,619.40 602,356,402.65 2,403,557,669.71 5,406,583,431.52
Legal representative：Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept：Jin Chan
III.Company Profile
Hangzhou Steam Turbine Co., Ltd. (the Company) was incorporated as a joint stock limited company exclusively
promoted by Hangzhou Steam Turbine & Power Group Company Limited (“HSTG”) approved by the Securities
Regulatory Commission of the State Council with the Document SRC [1998] No. 8 by offering domestically
listed foreign currency ordinary shares (B Shares), with registration date: April 23, 1998, Headquartered in
Hangzhou, Zhejiang Province. The company now holds a unified social credit code for the 913300007042026204
business license, The Company’s registered capital is increased to RMB754.0104 million with total capital share
of 754.0104 million shares (face value RMB1.00). Among which state-owned legal person shares were 479.8248
million shares and 274.1856 million shares of current B shares. The shares were issued and listed for trading in
Shenzhen Stock Exchange on April 28, 1998.
The design, manufacturing, Main Business Activities: R&D, Production and Sales of Industrial Steam Turbine.
Main Products: Industrial Steam Turbine
19 subsidiaries including Zhejiang Steam Turbine Packaged Technologies Co., Ltd., Hangzhou Zhongneng Steam
Turbine Power Co., Ltd., Hangzhou Steam Turbine Casting Co., Hangzhou Steam Turbine Auxiliary Co., Ltd.,
Hangzhou Steam Turbine Machinery & Equipment Co., Ltd., Zhejiang Turbine Import & Export Co., Ltd., and
Hangzhou Steam Turbine Industry Co., Ltd., were consolidated to the Financial Statements. For details of
changing consolidation range and equity position please go to the Notes to the Financial Statements.
IV. Basis of compiling the finance report
(I) Basis of compiling
The Company adopts perpetual operation as the basis of financial statements.
(II) Assessment on perpetuation
No issue or situation, in 12 months since the end of report period, composes major doubt on the perpetuation
assumption of the Company.
V. Principal Accounting Policies and Estimations
Principal Accounting Policies and Estimations
Important prompt: The Company utilized detailed accounting polices and estimations on providing of bad debt
provisions, fixed asset depreciation, intangible asset amortization, recognition of revenue, and so forth, according
to its business practices.
1. Statement of compliance to the Enterprise Accounting Standard
The finance report produced by the Company is accordance with the Enterprise Accounting Standard, and reflects
the Company’s financial state, business performance and cash flow frankly and completely.
2. Fiscal year
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
3. Operational period
The Company’s relatively shorter operational period, which is 12 months, and is used as division of liquidity of
assets and liabilities.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
5. Accounting treatment of the entities under common control and different control
1. Treatment of entities under common control
Assets and liabilities acquired in merger of entities are measured at book values at the date of merger. The
difference between the net book value of asset and the offered price (or total of face value of shares issued) will be
adjusted into capital reserves; when the capital reserves is not enough to reduce, it will be adjusted into retained
profit.
2. Treatment of entities under different control
The difference of takeover cost over the fair value of recognizable net asset of the acquired entity is
recognized as goodwill at the day of takeover; in case the takeover cost is lower than the fair value of recognizable
net asset of the acquired entity, the measuring process over the recognizable asset, liabilities, contingent liabilities,
and takeover cost, shall be repeated, if comes out the same result, the difference shall be recorded into current
income
6. Method for preparing the consolidated financial statements
The parent company puts all of its subsidiaries under its control into the consolidated financial statements. The
consolidated financial statements are prepared according to the “Enterprise Accounting Standard No. 33 –
Consolidated Financial Statements”, basing on the accounts of the parent company and the subsidiaries, and after
adjusting the long-term investment equity in the subsidiary on equity basis.
7. Joint venture arrangements classification and Co-operation accounting treatment
Nil
8. Recognition of cash and cash equivalents
Cash equivalent refers to the investment held by the Company with short term, strong liquidity and lower risk of
value fluctuation that is easy to be converted into cash of known amount.
9. Foreign currency trade and translation of foreign currencies
1. Translation of foreign currency
Foreign currency trades are translated into RMB at the rate of the day when the trades are made. Those balances
of foreign currencies and monetary items in foreign currencies are accounted at the exchange rate of the balance
sheet date. Exchange differences, other than special loans satisfying the conditions of capitalization, are accounted
into current income account. Non-monetary items in foreign currencies and on historical cost are translated at the
rate of the trade day. Non-monetary items in foreign currencies and on fair value are translated at the rate of the
day when the fair value is recognized, where the differences are accounted as gain/loss from change of fair value.
2. Translation of foreign currency financial statements
Asset and liability items in the balance sheet are translated basing on the exchange rate of the balance sheet date;
Owners’ equities other than Retained Profit are translated at the exchange rate of the date when the trade
happened. Income and expense items in the income statement are translated at the similar rate of the date when the
trade happened. Differences generated by the above translating of foreign currencies are demonstrated separately
under the owners’ equity in the balance sheet.
10.Financial instruments
(1) Classification of financial assets and financial liabilities
Financial assets are divided into the following three categories upon initial recognition: 1) Financial assets
measured in amortized cost; 2) Financial assets measured at fair value, whose changes are included in other
comprehensive income; 3) Financial assets measured at fair value, whose changes are included in current profits
and losses.
Financial liabilities are divided into the following four categories upon initial recognition: 1) Financial
liabilities measured at fair value, whose changes are included in current profits and losses; 2) Financial liabilities
resulting from the transfer of financial assets that do not meet the conditions for derecognition or continue to be
involved in the transferred financial assets; 3) Financial guarantee contracts that do not belong to the above 1) or
2), and loan commitments that do not belong to the above 1) and lend at a lower than market interest rate; 4)
Financial liabilities measured in amortized cost.
(2) Recognition basis, measurement methods and conditions for derecognition of financial assets and
financial liabilities
However, if the accounts receivable initially recognized by the company do not contain significant financing
components or the company does not consider the financing components in the contract for less than one year, the
initial measurement shall be made according to the transaction price.
2) Subsequent measurement methods of financial assets
①Financial assets measured at amortized cost
The actual interest rate method is adopted for subsequent measurement according to amortized cost. Gains or
losses arising from financial assets measured in amortized cost that are not part of any hedging relationship are
included in current profits and losses when derecognition, reclassification, amortization according to the effective
interest rate method, or impairment recognition.
② Debt instruments investment measured at fair value, whose changes are included in other comprehensive
income
Fair value is adopted for subsequent measurement. Interest, impairment losses or gains and exchange gains
and losses calculated by the effective interest rate method are included in the current profits and losses, while
other gains or losses are included in other comprehensive income. Upon termination of recognition, the
accumulated gains or losses previously included in other comprehensive income shall be transferred out of other
comprehensive income and included in current profits and losses.
③ Equity instrument investments measured at fair value, whose changes are included in other
comprehensive income
Fair value is adopted for subsequent measurement. Dividends received (except those that belong to the part
of investment cost recovery) are included in current profits and losses, and other gains or losses are included in
other comprehensive income. Upon termination of recognition, the accumulated gains or losses previously
included in other comprehensive income shall be transferred out of other comprehensive income and included in
retained income.
④ Financial assets measured at fair value and changes included in current profits and losses
The fair value is adopted for subsequent measurement, and the resulting gains or losses (including interest
and dividend income) are included in the current profits and losses unless the financial asset is part of the hedging
relationship.
3) Subsequent measurement methods of financial liabilities
① Financial liabilities measured at fair value, whose changes are included in current profits and losses
Such financial liabilities include transactional financial liabilities (including derivatives of financial liabilities)
and financial liabilities designated to be measured at fair value, whose changes are included in current profits and
losses. Such financial liabilities are subsequently measured at fair value. Changes in the fair value of financial
liabilities designated to be measured at fair value, whose changes are included in the profits and losses of the
current period due to changes in the company's own credit risk are included in other comprehensive income,
unless such treatment will cause or expand accounting mismatch in profits and losses. Other gains or losses
arising from such financial liabilities (including interest expenses and changes in fair value except for changes in
the company's own credit risk) are included in the current profits and losses unless the financial liabilities are part
of the hedging relationship. Upon termination of recognition, the accumulated gains or losses previously included
in other comprehensive income shall be transferred out of other comprehensive income and included in retained
income.
② Financial liabilities resulting from the transfer of financial assets that do not meet the conditions for
derecognition or continue to be involved in the transferred financial assets
Measurement is conducted in accordance with the relevant provisions of the Accounting Standards for
Business Enterprises No.23-Transfer of Financial Assets.
③ Financial guarantee contracts that do not belong to the case of ① or ② above, and loan commitments that
do not belong to ① above and lend at below market interest rates
After initial recognition, subsequent measurement shall be made according to the higher of the following two
amounts: A. Loss reserve amount determined according to the impairment provisions of financial instruments; B.
The balance of the initial recognized amount after deducting the accumulated amortization amount determined in
accordance with relevant regulations.
④ Financial liabilities measured in amortized cost
The real interest rate method is adopted to measure in amortized cost. Gains or losses arising from financial
liabilities measured in amortized cost that are not part of any hedging relationship are included in current profits
and losses when derecognized and amortized according to the effective interest rate method.
4) Termination of recognition of financial assets and financial liabilities
① Financial assets are derecognized when one of the following conditions is met:
A. The contractual right to receive cash flow from the financial asset is terminated;
B. Financial assets have been transferred, and the transfer meets the provisions of the Accounting Standards
for Business Enterprises No.23-Transfer of Financial Assets on the derecognition of financial assets.
② When the current obligation of a financial liability (or part thereof) has been discharged, the financial
liability (or part thereof) shall be derecognized accordingly.
(3) Recognition basis and measurement method of financial asset transfer
If the company has transferred almost all risks and rewards in the ownership of financial assets, it shall
terminate the recognition of the financial assets and separately recognize the rights and obligations arising from or
retained in the transfer as assets or liabilities; If almost all risks and rewards on the ownership of financial assets
are retained, the transferred financial assets shall continue to be recognized. If the company neither transfers nor
retains almost all risks and rewards in the ownership of the financial asset, the following situations shall be
handled respectively: 1) If the control over the financial asset is not retained, the recognition of the financial asset
shall be terminated, and the rights and obligations generated or retained in the transfer shall be separately
recognized as assets or liabilities; 2) If the control over the financial assets is retained, the relevant financial assets
shall be recognized according to the extent of continuing involvement in the transferred financial assets, and the
relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the
following two amounts shall be included in the current profits and losses: 1) The book value of the transferred
financial assets on the derecognition date; 2) The sum of the consideration received for the transfer of financial
assets and the amount of the corresponding derecognized portion of the accumulated amount of changes in fair
value originally directly included in other comprehensive income (the financial assets involved in the transfer are
debt instrument investments measured at fair value, whose changes are included in other comprehensive income).
If a part of the financial asset is transferred and the transferred part meets the conditions for derecognition as a
whole, the book value of the financial asset before transfer shall be apportioned between the derecognition part
and the continuing recognition part according to their respective relative fair values on the transfer date, and the
difference between the following two amounts shall be included in the current profits and losses: 1) The book
value of the derecognition part; 2) The sum of the consideration of the derecognized portion and the amount of the
corresponding derecognized portion of the cumulative amount of changes in fair value originally directly included
in other comprehensive income (financial assets involved in transfer are debt instrument investments measured at
fair value, whose changes are included in other comprehensive income).
(5) Impairment of financial instruments
1) Impairment measurement and accounting treatment of financial instruments
On the basis of expected credit losses, the company carries out impairment treatment on financial assets
measured at amortized cost, debt instrument investments measured at fair value whose changes are included in
other comprehensive income, lease receivables, loan commitments other than financial liabilities classified as
financial liabilities measured at fair value, whose changes are included in current profits and losses, financial
liabilities not measured at fair value, whose changes are included in current profits and losses, or financial
guarantee contracts that are not financial asset transfers which do not meet the conditions for derecognition or
which continue to be involved in financial liabilities formed by transferred financial assets, and recognize loss
provisions.
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by
the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted according
to the original real interest rate and the expected cash flow of all contracts receivable according to the contract,
that is, the present value of all cash shortages. Among them, the Company discounts the financial assets purchased
or originated with credit impairment at the actual interest rate adjusted by credit.
For financial assets purchased or originated that have suffered credit impairment, the company will only
recognize the accumulated changes in expected credit losses during the entire duration since initial recognition as
loss reserves on the balance sheet date.
For accounts receivable that do not contain significant financing components or that the company does not
consider financing components in contracts of not more than one year, the company uses simplified measurement
methods to measure the loss reserve according to the expected credit loss amount equivalent to the entire duration.
For lease receivables and receivables containing significant financing components, the company uses
simplified measurement methods to measure the loss reserve according to the expected credit loss amount
equivalent to the entire duration.
For financial assets other than the above measurement methods, the company evaluates whether its credit risk
has increased significantly since the initial recognition on each balance sheet date. If the credit risk has increased
significantly since the initial recognition, the company shall measure the loss reserve according to the amount of
expected credit loss during the whole duration. If the credit risk has not increased significantly since the initial
recognition, the company shall measure the loss reserve according to the expected credit loss amount of the
financial instrument within the next 12 months.
The company uses the available reasonable and reliable information, including forward-looking information,
to determine whether the credit risk of financial instruments has increased significantly since the initial
recognition by comparing the risk of default on the balance sheet date with the risk of default on the initial
recognition date.
On the balance sheet date, if the company judges that the financial instrument is with only low credit risk, it
is assumed that the credit risk of the financial instrument has not increased significantly since the initial
recognition.
The company considers the following factors when evaluating whether the credit risk has increased
significantly:
① Whether the contract payment is overdue for more than (including) 30 days. If the overdue period exceeds
30 days, the company confirms that the credit risk of financial instruments has increased significantly. Unless the
company can obtain reasonable and reliable information without paying too much cost or effort, which proves that
although the payment period stipulated in the contract is over 30 days, the credit risk has not increased
significantly since the initial recognition.
② Whether the company's credit management methods for financial instruments have changed.
③ Whether the debtor's expected performance and repayment behavior have changed significantly.
④ Whether the actual or expected operating results of the debtor have changed significantly.
⑤ Whether there has been any significant adverse change in the regulatory, economic or technological
environment for the debtor.
⑥ Whether there are adverse changes in business, financial or economic conditions that are expected to lead
to significant changes in the debtor's ability to fulfill its debt-paying obligations.
⑦ Whether the internal price index has changed significantly due to changes in credit risk.
⑧ If an existing financial instrument is originated or issued as a new financial instrument on the reporting
date, whether the interest rate or other terms of the financial instrument change significantly.
⑨ Whether the external market indicators of credit risks of the same financial instrument or similar financial
instruments with the same expected duration have changed significantly. These indicators include: credit spreads,
the price of credit default swaps for borrowers, the duration and extent that the fair value of financial assets is less
than its amortized cost, and other market information related to borrowers (such as price changes of borrowers'
debt instruments or equity instruments).
⑩ Whether the actual or expected external credit rating of financial instruments has changed significantly.
Whether the actual or expected internal credit rating of the debtor is lowered.
Whether the credit risks of other financial instruments issued by the same debtor have increased
significantly.
Whether there has been any significant change in the value of collateral used as debt collateral or the
quality of guarantee or credit enhancement provided by a third party.
Whether the expected borrower's economic motivation to repay the loan within the time limit stipulated in
the contract has changed significantly.
Anticipated changes to the loan contract include whether the anticipatory breach of contract may result in
exemption or revision of contractual obligations, granting of interest-free period, sharp increase of interest rate,
demand for additional collateral or guarantees, or other changes to the contractual framework of financial
instruments.
The company evaluates expected credit risks and measures expected credit losses on the basis of individual
financial instruments or combinations of financial instruments. When based on the combination of financial
instruments, the company divides financial instruments into different combinations based on common risk
characteristics.
The company remeasures the expected credit loss on each balance sheet date, and the increase or reversal
amount of the loss reserve thus formed shall be included in the current profits and losses as impairment loss or
profit. For financial assets measured in amortized cost, the loss reserve shall be offset against the book value of
the financial assets listed in the balance sheet; For creditor's rights investments measured at fair value, whose
changes are included in other comprehensive income, the company recognizes its loss reserve in other
comprehensive income, which does not offset the book value of the financial asset.
2) Accounts receivable for expected credit losses measured by individual item
Judgment basis for individual measurement Receivables with obvious characteristics of single credit risk with
of expected credit loss evidence or can be judged based on common sense
Considering the reasonable and reliable information about past events,
current situation and future economic situation forecast, it shall
Methods of measuring expected credit loss
estimate the expected cash flow, and determine the provision for bad
debt to be accrued accordingly
3) Accounts receivable for expected credit losses measured by combination
①Methods of specific combination and measurement of expected credit loss
Items Basis for determining combination Methods of measuring expected credit loss
Referring to historical credit loss experience and adjusting
With aging as credit risk according to forward-looking estimation, a comparison
Aging portfolio characteristic, the receivables are table between the aging of receivables and loss given
combined default is prepared to determine the provision for bad debt
to be accrued
② Bill receivable with expected credit loss measured by combination-comparison table of aging of
commercial acceptance bill, accounts receivable and other receivables and expected credit loss rate for the whole
duration
Commercial acceptance bills Receivables Other receivables
Aging
receivable Expected credit loss rate (%) Expected credit loss rate (%)
Expected credit loss rate (%)
Within 1 year (inclusive, the same
5 5 5
below)
1-2 years 10 10 10
2-3 years 20 20 20
3-4 years 30 30 30
4-5 years 50 50 50
Over 5 years 100 100 100
(6) Setoff of Financial Assets and Liabilities
The financial assets and liabilities of the company are shown separately in the balance sheet which do not
offset each other. However, when the following conditions are met at the same time, the net amount after mutual
offset is shown on the balance sheet. 1. The company has the legal right to offset the recognized amount, and this
legal right is currently enforceable. 2. The company plans to settle the financial assets or liquidate the financial
liabilities at the same time for netting settlement.
If the transfer of financial assets does not meet the conditions for the termination of recognition, the company
shall not set off the transferred financial assets and related liabilities.
11.Notes receivable
For details, please refer to Section X V-10 of this report.
12.Account receivable
For details, please refer to Section X V-10 of this report.
13. Financing of receivables
Nil
14.Other account receivable
For details, please refer to Section X V-10 of this report.
15.Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Inventory classification
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and goods
in manufacturing procedure or working procedure.
(2) Pricing of inventory to be delivered
Delivered out materials are accounted by weighted average method, issued out finished products are accounted at
individual price.
(3) Recognition of realizable net value of inventory and providing of inventory impairment provision
At the balance sheet day, inventories are measured at the lower of costs and cashable net values, the individual
difference between the cashable net value and cost are provided as inventory impairment provision. For finished
product, merchandise, saleable material and other saleable merchandise inventory, their cashable net values are
recognized by their estimated sale price in normal operation deducting estimated sale expenses and related taxes;
for material inventory which need processing, it cashable net value are recognized by the estimated sale prices of
its finished products in normal operation deducting the estimated cost, sale expenses and related taxes due to the
end of processing; At the balance sheet day, for inventory item which part has contract price and part has no
contract price, the cashable net value is accounted separately, and recognize the inventory impairment provision
or returnable cash..
(4) Inventory system
Inventory system: perpetual inventory system
(5) Amortization of low-value consumables and packaging materials
1.Low price consumable
Basis of amortizing: one-off
2.Packaging materials
Basis of amortizing: one-off
16.Contract assets
Nil
17.Constract cost
Nil
18.Held-for-sale asset
Nil
19.Creditor's rights investment
Nil
20.Other Creditor's rights investment
Nil
21.Long-term account receivable
Nil
22. Long-term equity investment
1. Recognition of common control and substantial influence
According to the contract, if the invested enterprise’s main finance and operation policy need to be agreed by the
other investing party, the investment is common control investment; if only have participating decision rights in
invested enterprise’s main finance and operation policy but have no own control or common control with other
investing part, the investment is investment with substantial influence.
2. Recognition of initial investment costs
(1) For the long-term equity investment formed by corporate merger under common control, if it is the long-term
equity investment obtained from the corporate merger by paying cash, transferring non-cash asset, bear liability
and issuing equity securities, the share of book value of owner's equity of the merged party on the merger date
shall be taken as the initial investment cost. The asset reserve is adjusted according to the difference between the
initial investment cost of long-term equity investment and the book value of paid combined consideration or
issued securities; if the capital is not enough for deduction, the remain earnings are adjusted.
Recognition of “one-off” trade when long-term equity investment is composed by merger of entities under
common control by multiple steps.
Transactions under an “one-off” trade are accounted as a common trade of ownership.
Transactions which are not “one-off” trades are recognized for their initial investment cost basing on the share of
book value of net asset in the consolidated financial statement of the entities acquired. Balance between the initial
investment cost and the book value of the long-term equity investment before merger and the premium paid for
the new shares after merger, is adjusted to capital reserves; when the capital reserve is not enough to offset,
retained profit shall be adjusted thereof.
(2) For the long-term equity investments formed by merger of enterprises under different control, the initial
investment cost is recognized by the fair value of combined consideration on purchasing day and related expenses.
Long-term equity investment formed by acquisition of entities under different control by trade in multiple stages
are accounted separately in the financial statements and consolidated financial statements.
1) In individual financial account, the sum of book value of original equity investment plus new investment cost is
recognized as the initial investment cost on cost basis.
2) Recognition of “one-off” trade in consolidated financial statements
Transactions under an “one-off” trade are accounted as a common trade of ownership. Transactions which are not
“one-off” trades are re-measured for their fair value at the day of acquisition. Balance between the fair value and
the book value of the long-term equity investment is adjusted to current investment gains; other gains from equity
on equity basis before the acquisition day are written over to current gains of at the day of acquisition, but not the
gains from re-calculating of changes in net liability or asset by the invested entity.
(3) Formed by means other than entity merger:
Acquired by cash payment – initial investment cost is the actual amount of payment;
Acquired by issuing of equity certificates – initial investment cost is the fair value of equity certificate issued;
Acquired by debtor restructuring – initial cost recognized as according to the Enterprise Accounting Standard
No.12 – Debtor restructuring;
Acquired by trading of non-monetary asset - initial cost recognized as according to the Enterprise Accounting
Standard No.7 – Trade of non-monetary assets;
3. Subsequent measurement and recognition of gain/loss
Cost basis is adopted in accounting of long-term equity investment in entities under substantial control of the
Company; while equity basis is adopted in accounting of investment in affiliates and joint-ventures.
4. Treatment of disposal of subsidiaries by stages till losing of control power
(1) Individual account
The difference between the book value and the actual purchase price of the disposed equity is recorded into the
current profit and loss. With regard to the remaining equity, which still has a significant impact on the invested
entity or exercises joint control with other parties, it shall be converted to equity accounting; if the entity under
investment can no longer be controlled, jointly controlled or significantly affected, it shall be recognized as a
financial asset, Accounting shall be carried out in accordance with the relevant provisions of Accounting
Standards for Enterprises No. 22-recognition and Measurement of Financial Instruments.
(2) Basis of Consolidated Financial Statements
1) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and not recognized
as “one-off” trade:
Before losing of control power, the balance of disposal consideration and the share of net asset attributable to the
Company on continued basis since purchasing or merger, is adjusted to capital reserves (capital premium),
whereas if the capital premium is not enough to offset the amount, retained profit will be offset at corresponding
amount.
At losing of control power over a former subsidiary, the retained equity shares shall be re-calculated according to
the fair value at the day of losing power. Sum of the consideration obtained from disposal and fair value of the
retained equity shares, less the share of net asset attributable to the Company on continued basis since purchasing
or merger, is accounted into investment gains of the period when the control power is disposed, and goodwill shall
be offset meanwhile. Other gains related to the equities in formal subsidiary shall be written over to current
investment gains at the period when control power was disposed.
2) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and recognized as
“one-off” trade:
The multiple trades are treated as one trade that causes losing of control power on a subsidiary. However, the
balance between the consideration received from each trade and corresponding share of net asset is recognized as
other gains in the consolidated accounts, and transferred collectively to gain/loss account of the period in which
the control power was lost.
23. Investment property
The measurement mode of investment property
Not applicable
24. Fixed assets
1. Conditions for fixed asset recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life. Fixed assets are
recognized at satisfying of great possibility of benefit inflow and costs are accountable.
2. Depreciation
Categories Basis of depreciation Depreciation age (year) Retain value rate Annual depreciation ratio
Straight average on
Houses & buildings 20-30 4 4.8-3.2
period
Straight average on
Equipment & machinery 8-15 4 12-6.4
period
Straight average on
Transportation equipment 4-8 4 24-12
period
Office equipment Straight average on 5 4 19.2
period
（3）Recognition basis, valuation and depreciation method for financing leased fixed assets
Nil
25. Construction in process
1. Construction in process is recognized on the basis of characteristics: very possible economic benefit flow in,
cost can be measured reliably. Since the date when the construction in process reaches its useful status as expected,
the construction in process is measured by the happened cost Since the date when the construction in process
reaches its useful status as expected.
2. When the construction in process reaches its useful status as expected, it is transferred into fixed asset at actual
cost. If the construction in process has reached useful status but with completion of project settlement process, it is
transferred to fixed asset at the value estimated, and adjustment will happen after completion of project settlement
process but no adjustment on depreciation provided previously.
26. Loan expenses
1. Capitalizing of loan expenses
Loan expenses occurred in the Company, which can be categorized to purchasing or construction of assets
satisfying the conditions of capitalization, shall be capitalized and accounted into capital costs; while other loan
expenses are recognized as expenses and recorded into current income account.
2. Capitalization period of loan expenses
(1) Capitalization started as soon as all of these conditions are satisfied: 1) Capital expenditures have occurred; 2)
Loan expenses have occurred; 3) Necessary purchasing or construction processes have been started to make the
asset usable or sellable.
(2) If irregular interruption occurred in the purchasing or construction process of the assets satisfying the
capitalizing conditions, and suspended for over successive three months, capitalizing of loan expenses is
suspended; loan expenses occurred during the suspension period are recognized as current expenses until the
purchasing or construction process resumes.
(3) Capitalizing of loan expenses is terminated as soon as the asset satisfying the capitalizing conditions reaches
the state of usable or sellable as expected.
3. Rates and amounts of loan expense capitalization
Special loans raised for purchasing or construction of assets satisfying the conditions of capitalization, interest to
be capitalized will be the actual interest expenses occurred in the current period of loan (including the discount,
premium, or amortizing decided on actual interest rate basis), less the interest income from the unused loans in
bank account or provisional investment gains; common loans used for purchasing or construction of assets
satisfying the conditions of capitalization, the interest to be capitalized will be the weighted average of balance
over special loans multiply capitalization rate of common loans.
27. Biological assets
Nil
28. Oil-gas assets
Nil
29. Assets of the right to use
Nil
30. Intangible assets
（1）Pricing Method, service life and impairment test
1. Intangible assets are land using rights, patents, and non-patent technologies, which are measured at cost basis.
2. For intangible assets with limited useful life, during the use life it is amortized according to the anticipating
implementation method of the economic benefit of the intangible asset systematically and reasonably. If can’t
recognize the anticipating implementation method, the straight basis is deployed.
Items Amortiing years
Land using right 50
Patent 5-20
Software 5
(2) Accounting policy for internal research and development expenditure
Expenditures of internal researching projects are accounted into current term gain and loss when happens. The
development period expenditures are recognized as intangible assets when fulfill following conditions: (1) The
intangible asset is completed and technically possible to be used or sold; (2) With intention to complete the
intangible asset for purpose of use or sale; (3) Evidence showing that there are markets or the products produced
with using of the intangible asset, or markets of the intangible asset itself, by which the intangible asset may
produce financial benefits. Intangible assets used inside the Company must be approved for their usable characters.
(4) Developing of the intangible assets are supported by sufficient technical, financial, and other resources, and
the intangible assets can be used or sold. (5) Expenditures occurred in developing of the intangible asset may be
reliably measured.
31. Impairment of partial long-term assets
For those long-term assets such as equity investment, fixed assets measured on cost basis, construction-in-process,
intangible assets with limited service life, their recoverable amount shall be evaluated as soon as there was
evidence indicating impairment at the balance sheet day. For intangible assets such as goodwill from merger or
intangible assets with uncertain service lives, impairment test is performed each year whatever there is evidence of
impairment or not. Impairment test on goodwill is performed on combination of related assets.
When the result of prediction shows that the recoverable amount is lower than its book value, the balance shall be
provided impairment provision and accounted into current gain/loss.
32. Long-term amortizable expenses
Long-term amortizable expenses which have been paid but with amortizing period over 1 year (not included).
Long-term amortizable expenses are recorded at actual amount occurred, and straight amortized to stipulated
periods. In case a long-term expense was not benefiting the succeeding periods, then the balance of the account
shall be transferred over to current income account.
33.Constract Liabilities
Nil
34. Employees’ wage
1. Employee compensation comprises short-term compensation, post-service benefit, resignation benefit and other
long-term employee benefits.
2. Accounting of short-term wages
In the fiscal period when an employee is providing services, short-term wages actually occurred is recognized as
liability, and recorded into current gain/loss account or cost of related asset.
3.Accounting of stipulated beneficiary plan is on following steps:
1) On basis of expected accumulation of welfare, estimations on population variables and financial variables,
calculating of liabilities from stipulated beneficiary plan, and recognition of the period of related liabilities, are
performed on basis of non-bias and accordance actuary. Meanwhile, discount is performed on the liabilities from
stipulated beneficiary plan to recognize the current value and service cost of the liabilities from the stipulated
beneficiary plan.
2) When there is asset involved in the stipulated beneficiary asset, the deficit or premium from the balance of the
current value of liabilities of stipulated beneficiary plan over their fair values is recognized as its net liability or
net asset. When there is a premium with a stipulated beneficiary plan, the lower one between the premium and the
upper limit of the asset is recognized as the net asset of such stipulated beneficiary asset;
3) At end of period, employees’ wages from stipulated beneficiary plan are recognized by three parts including
service cost, net interest of net liability or net asset, and recalculated net asset or liability variation. The first two
are recorded into current gain/loss or related asset cost, the third is recorded to other gains, which will not be
written back to gain/loss in successive fiscal periods, but the amount can be transferred with the range of equity.
3. Accounting of dismissing welfare
Welfares for employees who are dismissed, the earlier one of the following is recognized as employee wage
liability, and recorded to current gain /loss:
(1) When the Company cannot, on its own call only, retrieve the dismissing welfare provided by dismissing of
service plan or suggestion;
(2) When the costs or expenses related to restructuring involved in the dismissing welfare are recognized by the
Company.
4. Accounting of other long-term employees’ welfares
As of long-term welfares provided to the employees, those which satisfy conditions of the stipulated saving plan
are treated according to related regulations of stipulated saving plan; those which other than the aforesaid, are
treated according to the stipulated beneficiary plan. In viewing of simplifying accounting treatment, employee
wage costs are recognized as service costs, the net amounts of interests of other long-term welfare net liability or
asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related asset.
35. Lease liabilities
Nil
36. Expected liabilities
(1) When it is very much likely to cause economic interests which can be reliably calculated outflow from
the company to fulfill the obligation which is due to giving security outside, contentious matter, quality guarantee
of products, onerous contract and other contingency, the company will regard the obligation as anticipation
liabilities.
(2) The company will make an initial measurement of anticipation liabilities according to needed expense
of best estimation when fulfilling related obligations and check the book value of anticipation liabilities on the
balance sheet date.
37.Share-based Payment
Nil
38 . Other financial instruments such as preferred shares and perpetual capital securities
Nil
39.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented new revenue guidelines?
No
1. Recognizing of revenue
(1) Sales of goods
Sales income is recognized when all of these conditions are satisfied: (1) Major risks and rewards attached to the
goods have been transferred to the purchaser; (2) The Company holds neither successive management power
which is normally attached to ownership, nor effective control, over the goods which have been sold out; (4)
Amount of income may be reliably measured; (5) when the costs, occurred or will occur, may be measured
reliably.
(2) Providing of services
At balance sheet day, those service trades (simultaneously satisfying the requirements of those: income can be
measured reliably, related economic benefit will flow in very possibly, transaction procedure can be confirmed
reliably, happened and happening cost can be measured reliably) which can be reliably estimated are recognized at
the percentage of completion, and progress of completion of service is decided by the portion of costs occurred
over the estimated total costs. At balance sheet day, those service trades which can not be reliably estimated, if the
happened services cost will be compensated, the services income are recognized according to happened service
cost and transited to service cost according to same amount; if the happened services cost will not be compensated,
the happened services cost are accounted into current term’s gain or loss and the services income will not be
recognized.
(3) Giving of asset using rights
Income from giving of assets is recognized when satisfying requirements: related economic benefit flows in very
possibly, income can be measured reliably. Amount of interest income is calculated according to the time and
actual interest rate of the monetary capital is used by other party. Income of using fee is calculated upon the
charge period and calculation provided by the related contract or agreement.
2. Practical basis for recognition of revenue
Particular methods for recognition of revenue. The Company is mainly engaged in designing, manufacturing,
sales, and service of steam turbines and gas turbines falling in the range of rotating and reciprocating machinery,
and parts. Recognition of sales in the country shall satisfy: products had been delivered to the buyer and the
amount had been fixed. Payment was received or documents received with great possibility of cash inflow. And
the cost of the products is able to be measured appropriately. Recognition of sales outside the country shall satisfy:
The goods had been filed by the custom with bill of lading obtained. The amount had been fixed, and payment
was received or documents received with great possibility of cash inflow. And the cost of the products is able to
be measured appropriately.
40. Government subsidy
1. Government subsidies are recognized while they meet the following conditions at the same time: (1) the
Company can meet the conditions attached to the government subsidies; (2) the Company can receive government
subsidies. Where government subsidies are monetary assets, they shall be measured by the amount received or
receivable. Where government subsidies are non-monetary assets, they shall be measured by the fair value; if the
fair value cannot be reliably obtained, they shall be measured by the nominal amount.
2. Recognition basis and accounting of asset-related government subsidy
Government subsidies used for formation of long-term assets through purchase, construction or any other
method as stipulated by government documents fall into the category of asset-related government subsidies. If
government subsidies are not defined in the government documents, a judgment shall be made on the ground of
essential conditions for obtaining the subsidies, among which, ones with an essential condition of formation of
long-term assets through purchase, construction or any other method shall be asset-related government subsidies.
For government subsidies related to assets, the book value of the relevant assets is deducted or the deferred
income is recognized. Where such subsidies are recognized as deferred income, the relevant assets shall, within
the useful life of the relevant assets, be reasonably recognized, The method of the system shall be recorded into
profit and loss by stages. The government subsidy measured according to the nominal amount shall be directly
accounted for in the profits and losses of the current period. Where the relevant assets are sold, transferred,
scrapped or damaged before the end of their useful life, Transfer the undistributed balance of deferred income to
the current profit or loss of asset disposal.
3. Recognition basis and accounting of income-related government subsidy
A government subsidy other than an asset-related government subsidy is divided into profit-related government
subsidies. It is difficult to distinguish between asset-related and revenue-related government subsidies that include
both asset-related and revenue-related components. Overall classification as government subvention related to
income. Than asset-related subsidies are recognized as income-related government subsidies. Those, which are
used to cover costs or losses in subsequent periods, are recognized as deferred income and accounted to current
gain/loss to the periods of related expenses. Those, which are used to makeup expenses or losses already occurred,
are recorded to current gain/loss account.
4. Government subsidies related to routine business activities of the Company shall be included into other incomes
or offset relevant costs and expenses by nature of economic business. Government subsidies irrelevant to routine
activities of the Company shall be included into the non-operating receipt and disbursement.
5. Accounting treatment method for interest subsidies for policy-based preferential loans
(1) If the finance allocates interest subsidy funds to a lending banks that serves a loan to the Company at a
policy-based preferential rate, the actual debit amount received shall be seen as the entry value of loan and relevant
loan costs shall be worked out pursuant to the loan principal and the policy-based preferential rate.
(2) If the finance directly allocates interest subsidy funds to the Company, corresponding interest subsidies
shall offset relevant loan costs.
41. Deferred income tax assets/ deferred income tax liabilities
1. Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or
paying the liabilities according to difference (for not recognized assets and liabilities which tax basis can be
recognized, the difference is between the tax basis and the book value) between book value of the assets or
liabilities and the tax basis.
2. Deferred income tax assets are recognized limitedly by the income tax which very possibly deduct deductible
temporary difference. At balance sheet day, the not-yet recognized deferred income tax assets in previous fiscal
term are recognized if have evidence to prove there is enough income tax very possibly to deduct deductible
temporary difference.
3. At the balance sheet day, verification will be performed on the book value of differed income tax assets. If it is
not possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the book
value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible,
the reduced amount shall be restored.
4. Current income tax and differed income tax are accounted into current gain/loss account as income tax
expenditures or gains, but exclude the following income taxes: (1) Merger of enterprises; (2) Transactions or
events recognized directly in owners’ equity.
42. Lease
(1)Accounting of operational lease
When the Company is the leasee, the amount is recorded to asset cost or recognized as gain/loss of current period
on straight basis to the periods of lease. Initial direct expenses are accounted into current gain/loss. Contingent
rentals are recorded to current gain/loss at actual occurrence.
When the Company is the leaser, the amount is recorded to current gain/loss at straight basis to the periods of
lease. Initial direct expenses are recorded to current gain/loss other than those with greater amount which are
capitalized and recorded to gain/loss of different periods. Contingent rentals are recorded to current gain/loss at
actual occurrence.
(2) Accounting Method for Financing Leases
Nil
43. Other significant accounting policies and estimates
Nil
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√Applicable □ Not applicable
The content and reason for change of accounting policy Approval process Remark
On March 27, 2019, the
Company held the 31st
meeting of the seventh
In 2017, the Ministry of Finance of the People's Republic of Board of Directors and the
China issued the revised " No. 22 Accounting Standards for 14th meeting of the
Business Enterprises-Recognition and Measurement of seventh Board of
Financial Instruments", " No. 23 Accounting Standards for Supervisors, in which the
Business Enterprises-Transfer of Financial Assets", " No. 24 “Proposal on Change in
Accounting Standards for Business Enterprises-Hedge Accounting Policy” was Announcement No.2019-24
Accounting, and " No. 37 Accounting Standards for Business reviewed and approved,
Enterprises-Financial Instruments Presentation", and it and this change of
required the domestic listed companies to implement the accounting policy did not
afore-said accounting standards from January 1, 2019. need to be submitted to
the shareholders’ general
meeting for deliberation.
(2) Change of main accounting estimations
Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases
√ Applicable □Not applicable
Consolidated balance sheet
In RMB
Items December 21,2018 January 1,2019 Adjustment amount
Current asset：
Monetary fund 1,382,392,009.59 1,382,392,009.59
Settlement provision
Outgoing call loan
Transactional financial assets 1,156,870,000.00 1,156,870,000.00
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Notes receivable 595,089,175.22 595,089,175.22
Account receivable 1,940,798,255.26 1,940,798,255.26
Financing of receivables
Prepayments 370,958,990.74 370,958,990.74
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 32,552,458.76 32,552,458.76
Including：Interest receivable 0.00
Dividend receivable 16,557,292.60 16,557,292.60
Repurchasing of financial assets
Inventories 2,188,121,342.87 2,188,121,342.87
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 1,188,747,955.74 31,877,955.74 -1,156,870,000.00
Total of current assets 7,698,660,188.18 7,698,660,188.18
Non-current assets：
Loans and payment on other’s behalf
disbursed
Debt investment
Available for sale of financial assets 2,130,076,555.20 -2,130,076,555.20
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 8,221,439.29 8,221,439.29
Other equity instruments investment 0.00 2,011,876,524.40 2,011,876,524.40
Other non-current financial assets 0.00 118,200,030.80 118,200,030.80
Property investment
Fixed assets 783,740,928.49 783,740,928.49
Construction in progress 454,767,328.93 454,767,328.93
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 279,740,756.49 279,740,756.49
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 213,962,707.23 213,962,707.23
Other non-current asset
Total of non-current assets 3,870,509,715.63 3,870,509,715.63
Total of assets 11,569,169,903.81 11,569,169,903.81
Current liabilities
Short-term loans 139,600,000.00 139,600,000.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair value
with variations accounted into current
income account
Derivative financial liabilities
Notes payable 263,897,462.79 263,897,462.79
Account payable 1,086,685,918.74 1,086,685,918.74
Advance receipts 2,582,234,158.36 2,582,234,158.36
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 86,390,955.29 86,390,955.29
Tax payable 62,405,200.62 62,405,200.62
Other account payable 36,904,303.01 36,904,303.01
Including：Interest payable 437,314.72 437,314.72
Dividend payable 0.00 0
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1 year 100,100,000.00 100,100,000.00
Other current liability
Total of current liability 4,358,217,998.81 4,358,217,998.81
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 22,700,000.00 22,700,000.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 474,876,451.26 474,876,451.26
Long-term remuneration payable to staff
Expected liabilities
Deferred income 44,675,128.30 44,675,128.30
Deferred income tax liability 244,169,946.57 244,169,946.57
Other non-current liabilities
Total non-current liabilities 786,421,526.13 786,421,526.13
Total of liability 5,144,639,524.94 5,144,639,524.94
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 151,684,419.65 151,684,419.65
Less：Shares in stock
Other comprehensive income 1,377,168,522.74 1,377,168,522.74
Special reserve 21,020,671.47 21,020,671.47
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Retained profit 3,082,544,107.52 3,082,544,107.52
Total of owner’s equity belong to the parent
6,007,540,929.16 6,007,540,929.16
company
Minority shareholders’ equity 416,989,449.71 416,989,449.71
Total of owners’ equity 6,424,530,378.87 6,424,530,378.87
Total of liabilities and owners’ equity 11,569,169,903.81 11,569,169,903.81
Notes
Balance sheet of Parent Company
In RMB
Items December 31,2018 January 1,2019 Adjustment amount
Current asset：
Monetary fund 877,357,020.98 877,357,020.98
Transactional financial assets 890,000,000.00 890,000,000.00
Financial assets measured at fair value with
variations accounted into current income
account
Derivative financial assets
Notes receivable 302,284,986.43 302284986.4
Account receivable 1,374,628,210.45 1,374,628,210.45
Financing of receivables
Prepayments 208,498,421.20 208,498,421.20
Other account receivable 19,984,760.06 19,984,760.06
Including：Interest receivable
Dividend receivable 16,557,292.60 16,557,292.60
Inventories 1,584,030,951.83 1,584,030,951.83
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 890,000,000.00 -890,000,000.00
Total of current assets 5,256,784,350.95 5,256,784,350.95
Non-current assets：
Debt investment
Available for sale of financial assets 2,090,631,297.62 -2,090,631,298.00
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 502,919,378.03 502,919,378.03
Other equity instruments investment 2,011,876,524.40 2,011,876,524.40
Other non-current financial assets 78,754,773.22 78,754,773.22
Property investment
Fixed assets 448,890,495.75 448,890,495.75
Construction in progress 142,310,055.48 142,310,055.48
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 165,734,347.73 165,734,347.73
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 163,871,631.81 163,871,631.81
Other non-current asset
Total of non-current assets 3,514,357,206.42 3,514,357,206.42
Total of assets 8,771,141,557.37 8,771,141,557.37
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair value
with variations accounted into current income
account
Derivative financial liabilities
Notes payable 24,200,000.00 24,200,000.00
Account payable 630,653,099.86 630,653,099.86
Advance receipts 1,877,069,335.29 1,877,069,335.29
Contract Liabilities
Employees’ wage payable 43,332,523.01 43,332,523.01
Tax payable 37,809,874.53 37,809,874.53
Other account payable 24,708,959.22 24,708,959.22
Including：Interest payable 212,010.69 212,010.69
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year 100,000,000.00 100,000,000.00
Other current liability
Total of current liability 2,737,773,791.91 2,737,773,791.91
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 264,512,388.24 264,512,388.24
Long-term remuneration payable to staff
Expected liabilities
Deferred income 41,944,793.30 41,944,793.30
Deferred income tax liability 244,169,946.57 244,169,946.57
Other non-current liabilities
Total non-current liabilities 550,627,128.11 550,627,128.11
Total of liability 3,288,400,920.02 3,288,400,920.02
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 138,953,250.09 138,953,250.09
Less：Shares in stock
Other comprehensive income 1,377,784,111.74 1,377,784,111.74
Special reserve 7,609,505.31 7,609,505.31
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 2,602,026,967.56 2,602,026,967.56
Total of owners’ equity 5,482,740,637.35 5,482,740,637.35
Total of liabilities and owners’ equity 8,771,141,557.37 8,771,141,557.37
Notes
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases
Not applicable
45.Other
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
VAT Sales of goods or providing of taxable labor service 16%,13%,6%
City maintenance and
Turnover tax payable 5%,7%
construction tax
Enterprise income tax Amount of income taxable 15%,25%
Educational surcharge Turnover tax payable 3%
Local education additional Turnover tax payable 2%
For those on price basis, taxes are paid
at 1.2% of the balance of original value
House tax of the property after deducting of 30%; 1.2%,12%
for those on rental basis, taxes are
paid at 12% of the rental.
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company , Zhongneng Company, Packaged Tech. Company,Casting
Company, Zhejiang Huayuan Steam Turbine Machinery Co.,Ltd. and 15%
Hangzhou Guoneng Steam Turbine Engineering Co.,Ltd.
Hangzhou Zhongneng Steam Turbine Power (Indonesia)
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd. Co., Ltd. registered in Indonesia overseas subsidiaries,
the applicable local relevant tax laws and regulations.
Other Subsidiary（Domestic） 25%
2. Preferential tax
1. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2017〕No.201) issued
by Department of Science and Technology High-tech Development Center, the Company along with Hangzhou
Zhongneng Steam Turbine Power Co., Ltd. ,Zhejiang Packaged Technologies Development Co., Ltd., Zhejiang
Huayuan Steam Turbine Machinery Co.,Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co.,Ltd. –
subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they enjoy
15% of tax for 2018.
2. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2016〕No.149) issued
by Department of Science and Technology High-tech Development Center, Hangzhou Steam Turbine Casting Co.,
Ltd– subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they
enjoy 15% of tax for 2016-2018.
3.Other
VII. Notes to the Consolidated Financial Statements
1.Monetary Capital
In RMB
Items End of term Beginning of term
Cash in stock 132,336.73 128,198.82
Bank deposit 1,721,272,261.33 1,297,059,605.97
Other monetary fund 98,454,424.85 85,204,204.80
Total 1,819,859,022.91 1,382,392,009.59
Incl: Total of accounts saved overseas 5,188,570.66 4,535,870.05
Other notes:
The ending bank deposits include a court-blocked deposit with a restricted usage of RMB 35,000,000.00;Other
monetary fund composes , Security for bank acceptance notes RMB 98,363,924.80 of security for Letter of credit,
RMB90,000.00 of security for bank guarantee letter and refundable deposit without a restricted usage of RMB
500.56.
2. Transactional financial assets
In RMB
Items End of term Beginning of term
Financial assets measured at fair value through profit or loss 578,769,000.00 1,156,870,000.00
Of which ：
Of which：
Total 578,769,000.00 1,156,870,000.00
3. Derivative financial assets
Nil
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
Bank acceptance bill 471,996,506.16 574,782,175.22
Trade acceptance bill 8,609,878.68 20,307,000.00
Total 480,606,384.84 595,089,175.22
(2) Accounts receivable withdraw, reversed or collected during the reporting period
Nil
（3）Notes receivable pledged by the Company at the end of the period
In RMB
Items Pledged amount
Bank acceptance bill 62,824,000.00
Total 62,824,000.00
（4）Notes receivable which had endorsed by the Company or had discounted and had not due on the balance
sheet date at the period-end
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance bill 715,062,076.86
Trade acceptance bill 2,542,730.25
Total 717,604,807.11
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
（6） The actual write-off accounts receivable
Nil
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Book value Proportion Proportion Book value
Amount Amount Amount Amount
% % % %
Accrual of bad debt
provision by single 29,819,607.69 0.95% 29,819,607.69 100.00% 0.00 29,819,607.69 0.99% 29,819,607.69 100.00%
item
Including：
Accrual of bad debt
3,096,045,722.22 99.05% 1,035,677,370.86 33.45% 2,060,368,351.36 2,982,887,216.78 99.01% 1,042,088,961.52 34.94% 1,940,798,255.26
provision by portfolio
Including：
Total 3,125,865,329.91 100.00% 1,065,496,978.55 34.09% 2,060,368,351.36 3,012,706,824.47 100.00% 1,071,908,569.21 35.58% 1,940,798,255.26
Accrual of bad debt provision by single item:29,819,607.69 yuan
In RMB
End of term
Name Other receivable
Bad debt provision Proportion% Reason
account
There are evidences or receivables based on
Accrual of bad debt provision by single
29,819,607.69 29,819,607.69 100.00% common sense that the credit risk is
tem:
significantly higher or lower.
Total 29,819,607.69 29,819,607.69 -- --
Accrual of bad debt provision by portfolio:1,035,677,370.86 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year （ Including 1
1,207,787,957.34 60,389,397.94 5.00%
year）
1-2 years 624,005,759.19 62,400,575.84 10.00%
2-3 years 328,553,152.78 98,565,945.84 30.00%
3-4 years 208,046,764.12 124,828,058.47 60.00%
4-5 years 190,793,480.12 152,634,784.10 80.00%
Over 5 years 536,858,608.67 536,858,608.67 100.00%
Total 3,096,045,722.22 1,035,677,370.86 --
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 1,147,398,559.40
1-2 years 561,605,183.35
2-3 years 229,987,206.94
Over 5 years 121,377,401.67
3-4 years 83,218,705.65
4-5 years 38,158,696.02
Over 5 years 0.00
Total 2,060,368,351.36
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Accrual of bad debt
29,819,607.69 29,819,607.69
provision by single item
Accrual of bad debt -6,411,590.66
1,042,088,961.52 1,035,677,370.86
provision by portfolio
Total 1,071,908,569.21 -6,411,590.66 1,065,496,978.55
(3) The actual write-off accounts receivable
In RMB
Items Amount
Uncollectible amount 0.00
The significant actual write-off accounts receivable:
（4）The ending balance of account receivables owed by the imputation of the top five parties
Name Amount Proportion(%) Bad debt provision
Client 1 670,859,810.45 21.46% 300,449,816.90
Client 2 240,631,511.27 7.70% 163,538,638.03
Client 3 161,326,729.06 5.16% 9,871,314.19
Client 4 63,427,500.00 2.03% 6,342,750.00
Client 5 53,953,673.36 1.73% 2,697,683.67
Subtotal 1,190,199,224.14 38.08% 482,900,202.79
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
6. Financing of receivables
Nil
7. Prepayments
（1）Age analysis
In RMB
Age End of term Beginning of term
Book balance Proportion(%) Book balance Proportion(%)
Within 1 year 387,035,194.27 93.20% 339,805,990.35 91.60%
1-2 years 15,114,713.00 3.64% 22,067,247.82 5.95%
2-3 years 4,009,227.00 0.97% 1,208,614.00 0.33%
Over 3 years 9,132,823.10 2.20% 7,877,138.57 2.12%
Total 415,291,957.37 -- 370,958,990.74 --
Notes：
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Name Amount Proportion(%)
Hangzhou Hangfa generation Equipment Co., ltd. 41,416,785.00 9.97
Jinling International Co., Ltd. 35,654,354.43 8.59
Siemens Industrial Turbomachinery AB 31,279,682.87 7.53
Wuhan Baiya Electric power Technology Co., Ltd. 21,154,000.00 5.09%
FORMOSA ELECTRIC POWER SYSTEM CO.,LTD. 20,954,980.57 5.05%
Subtotal 150,459,802.87 36.23
Other notes：
8. Other account receivable
In RMB
Nature Closing balance Opening balance
Interest receivable 0.00
Dividend receivable 84,526,094.10 16,557,292.60
Other 18,293,347.31 15,995,166.16
Total 102,819,441.41 32,552,458.76
（1）Interest receivable ：Nil
（2）Dividend receivable
（1）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 84,526,094.10 16,557,292.60
Total 84,526,094.10 16,557,292.60
2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Hangzhou Bank 9,657,292.60 1-2 years Equity pledge No
Hangzhou Bank 6,900,000.00 2-3 years Equity pledge No
Total 16,557,292.60 -- -- --
3）Bad-debt provision
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Export tax rebate receivable 2,153,878.45
Deposit 13,265,110.29 16,937,448.95
Provisional payment receivable 10,572,543.47 5,251,040.00
Petty cash 4,133,206.64 1,327,534.34
Other 3,713,119.52 3,730,374.47
Total 31,683,979.92 29,400,276.21
2）Bad-debt provision
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 13,046,814.07
1-2 years 2,802,463.45
2-3 years 1,271,991.21
Over 3 years 1,172,078.58
3-4 years 824,700.80
4-5 years 347,377.78
Over 5 years 0.00
Total 18,293,347.31
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the
current period
Category Opening balance Reversed or Closing balance
Accrual collected
amount
Other receivables with provision for bad debts
13,405,110.05 -14,477.44 13,390,632.61
based on credit risk characteristics
Total 13,405,110.05 -14,477.44 13,390,632.61
4) The actual write-off accounts receivable
Nil
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the total Closing balance
Name Nature Closing balance Aging year end balance of the of bad debt
accounts receivable provision
Shanghai Customs Waigaoqiao Office Deposit 3,710,320.94 Over 5 years 11.71% 3,710,320.94
Hangzhou Zhongneng Steam Turbine 10.83% 3,431,600.00
Investment 3,431,600.00 5-6 years
Power (Indonesia) Co., Ltd.
Temporary 3.49% 55,269.75
Hangzhou Intermediate People's Court,
payment 1,105,395.00 1 year
Zhejiang Province
receivable
Guoxin Tendering Group Co., Ltd Deposit 800,000.00 4 years 2.52% 480,000.00
National Central and Western Regional 2.52% 40,000.00
Cooperation Demonstration Zone Deposit 800,000.00 1 year
Bidding Management Office
Total -- 9,847,315.94 -- 31.07% 7,717,190.69
6) Accounts receivable involved with government subsidies
Nil
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
9. Inventories
Whether implemented new revenue guidelines?
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Items Provision for Provision for
inventory inventory
Book balance Book value Book balance Book value
impairment impairment
Raw materials 537,036,361.35 53,003,915.45 484,032,445.90 585,528,478.85 53,187,189.03 532,341,289.82
Goods in 25,188,298.67
progress 794,557,915.19 28,954,137.55 765,603,777.64 731,748,385.18 706,560,086.51
Stock goods 1,107,771,113.80 134,625,404.08 973,145,709.72 1,093,823,673.99 144,603,707.45 949,219,966.54
Total 2,439,365,390.34 216,583,457.08 2,222,781,933.26 2,411,100,538.02 222,979,195.15 2,188,121,342.87
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Reverse or Reverse or Closing balance
Withdrawal Other
write-off write-off
Raw materials 53,187,189.03 0.00 0.00 183,273.58 0.00 53,003,915.45
Goods in progress 28,968,721.85 0.00 0.00 14,584.30 0.00 28,954,137.55
Stock goods 140,823,284.27 0.00 0.00 6,197,880.19 0.00 134,625,404.08
Total 222,979,195.15 0.00 0.00 6,395,738.07 0.00 216,583,457.08
2) The specific basis for determining the net realizable value, and the reasons for the reversal of the inventory
depreciation reserve for the current period
Current write-off
Items Specific basis for recognition of net realizable value Reason for provision for
inventory
The net realizable value shall be recognized by the amount of the
Used for current production
Raw materials estimated selling prices minus the estimated selling costs and relevant
and use
taxes and dues
The net realizable value shall be recognized by the amount of the
estimated selling prices minus the estimated selling costs and relevant
Goods in process and taxes and dues, wherein regarding suspended projects expected not be to
Current realized sales
commodity stocks be recovered or projects whose sales agreements are released, the net
realizable value shall be recognized by the expected recoverable
compensation
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
10. Assets divided as held-to-sold
Nil
11. Non-current assets due within 1 year
Nil
12. Other current assets
Whether implemented new revenue guidelines?
No
In RMB
Items End of term Beginning of term
Input tax deductible 59,238,064.27 28,260,278.71
To verify the input tax 47,553.14
Prepaid income tax 4,992,881.54 2,804,366.47
Rent charge 837,437.34 813,310.56
Total 65,115,936.29 31,877,955.74
13.Creditor's right investment：Nil
14.Other Creditor's right investment: Nil
15. Long-term accounts receivable
Nil
16. Long-term equity investment
In RMB
Increase /decrease
Profits
and
Withdr
losses
on Cash awal Closing
Decr Other
invest balance of
ease compr Change bonus or of
Investees Opening balance ments Closing balance
Additional in ehensi s in impairment
Recog profits impair Other
investment inve ve other
nized provision
stme
under incom equity announce ment
nt e d to issue provisi
the
equity on
metho
d
I. Joint venture
2. Affiliated Company
Zhejiang
Zhongrun Gas
8,221,439.29 2,040,000.00 10,261,439.29
turbine technology
Co., Ltd.
Subtotal 8,221,439.29 2,040,000.00 10,261,439.29
Total 8,221,439.29 2,040,000.00 10,261,439.29
Other notes
17. Other equity instruments investment
In RMB
Items End of term Beginning of term
Hangzhou Bank 2,264,720,465.98 2,011,876,524.40
Total 2,264,720,465.98 2,011,876,524.40
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for being
Amount of other measured at fair Reasons for other
comprehensive value and whose comprehensive
Recognized Accumulating Accumulating
Name income changes are income
dividend income profit profit
transferred to included in other transferred to
retained earnings comprehensive retained earnings
income
The Company
takes a position
of holding the
equity instrument
for a long-term to
obtain stable
dividends, and it
does not care
Hangzhou Bank 67,968,801.50 1,873,766,425.98
about the impact
of price
fluctuations on
profit and loss.
The Cash flow is
not entirely the
principal and
interest.
Other notes：
18.Other non-current assets
In RMB
Items End of term Beginning of term
Hangzhou Jushi Investment Partnership（LP） 50,000,000.00 50,000,000.00
Hangzhou Steam Turbine Engineering Co., Ltd. 4,820,000.00 4,820,000.00
Wuxi Xinchang Steel Bube Co., ltd. 13,845,257.58 13,845,257.58
Zhejiang Zhongkong Solar Energy Technology
15,000,000.00 15,000,000.00
Co., Ltd.
Zhejiang Tianhang Steam Turbine Auxiliary
10,000,000.00 10,000,000.00
Machinery Co., Ltd.
Greenesol power systems PVT Ltd. 5,534,773.22 5,534,773.22
Zhejiang Hangzhou Steam Turbine Gas turbine
2,400,000.00 2,400,000.00
machinery innovation center
Zhejiang Sanxin Automation Engineering Co.,
600,000.00 600,000.00
Ltd.
Juyuan Xinxing No.9 private equity fund raising
16,000,000.00 16,000,000.00
special account
Sichuan Lutianhua Co., Ltd. 2,281,853.06
Turbine Company 11,400,000.00
Total 131,881,883.86 118,200,030.80
Other notes：
19. Investment property
Nil
20. Fixed assets
In RMB
Items End of term Beginning of term
Fixed assets 761,603,992.58 783,740,928.49
Total 761,603,992.58 783,740,928.49
(1) Details
In RMB
Transportation
Items Houses & buildings Machinery equipment Office equipment Total
equipment
I. Original price
1. Balance at
732,378,844.81 1,022,902,093.21 27,934,764.05 100,670,157.77 1,883,885,859.84
period-beginning
2.Increase in the current 0.00 14,065,140.36 420,882.90 964,332.12 15,450,355.38
period
(1) Purchase 0.00 7,383,988.74 420,882.90 548,836.44 8,353,708.08
（ 2 ） 0.00 6,681,151.62 0.00 415,495.68 7,096,647.30
Transferred from construct
ion in progress
(3)Increased of
0.00
Enterprise Combination
0.00
3.Decreased amount of the
0.00 5,825,250.24 140,000.00 1,693,493.76 7,658,744.00
period
（1）Dispose 0.00 5,825,250.24 140,000.00 1,693,493.76 7,658,744.00
0.00
4. Balance at period-end 732,378,844.81 1,031,141,983.33 28,215,646.95 99,940,996.13 1,891,677,471.22
II.Accumulated
0.00
amortization
1.Opening balance 205,744,672.74 782,001,809.78 21,626,415.94 84,120,061.22 1,093,492,959.68
2.Increased amount of the
12,846,518.83 22,455,549.23 415,621.91 1,271,956.33 36,989,646.30
period
(1) Withdrawal 12,846,518.83 22,455,549.23 415,621.91 1,271,956.33 36,989,646.30
0.00
3.Decrease in the reporting
0.00 4,825,001.33 133,000.00 1,632,096.51 6,590,097.84
period
（1）Disposal 0.00 4,825,001.33 133,000.00 1,632,096.51 6,590,097.84
0.00
4.Closing balance 218,591,191.57 799,632,357.68 21,909,037.85 83,759,921.04 1,123,892,508.14
III. Impairment provision 0.00
1.Opening balance 1,504,928.24 4,033,520.42 0.00 1,113,523.01 6,651,971.67
2.Increase in the reporting
0.00 0.00 0.00 0.00 0.00
period
（1）Withdrawal 0.00
0.00
3.Decrease the reporting
0.00 433,399.30 0.00 37,601.87 471,001.17
period
（1）Disposal 0.00 433,399.30 0.00 37,601.87 471,001.17
0.00
4. Closing balance 1,504,928.24 3,600,121.12 0.00 1,075,921.14 6,180,970.50
IV. Book value 0.00
1.Book value of the
525,553,099.54 214,639,129.99 6,306,609.10 15,105,153.95 761,603,992.58
period-end
2.Book value of the
525,129,243.83 236,866,763.01 6,308,348.11 15,436,573.54 783,740,928.49
period-begin
(2) List of temporarily idle fixed assets
Nil
(3) Fixed assets leased in from financing lease
Nil
(4) Fixed assets leased out from operation lease
Nil
(5) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Steam turbine power Building 217,937,640.97 In process
Complete sets of factory 40,753,085.36 In process
（6）Liquidation of fixed assets
Nil
21. Construction in progress
In RMB
Items End of term Beginning of term
Construction in progress 659,588,447.28 454,767,328.93
Total 659,588,447.28 454,767,328.93
(1) List of construction in progress
In RMB
End of term Beginning of term
Items Provision Provision
Book balance Book value Book balance Book value
for for
impairmen impairment
t
New Plant project 631,046,137.11 631,046,137.11 429,609,053.59 429,609,053.59
Steam turbine power
1,726,143.04 1,726,143.04
Building
Software project 7,779,939.24 7,779,939.24 7,779,939.24 7,779,939.24
Other project 15,116,301.15 15,116,301.15 8,457,875.95 8,457,875.95
Prepayment for
3,919,926.74 3,919,926.74 8,920,460.15 8,920,460.15
equipment or projects
Total 659,588,447.28 659,588,447.28 454,767,328.93 454,767,328.93
(2)Changes of significant construction in progress
In RMB
Including
g:
Capitaliz
Capitaliz capitaliz Source
Transferred to Other Proportion Project ation of
Name of project Budget Opening balance Increase End balance ation of ation of of
fixed assets decrease % process interest
interest interest funding
rate (%)
this
period
New Plant project 1,733,287,600.0 Under
0
429,609,053.59 201,437,083.52 631,046,137.11 39.46% Construc 5,427,195.39 1,255,268.85 1.20% Other
tion
Steam turbine power 231,425,300.00
Complet
1,726,143.04 1,726,143.04 100.00% Other
Building ed
7,970,000.00 Under
Software project 7,779,939.24 7,779,939.24 97.62% Construc Other
tion
Under
Other project 8,457,875.95 8,750,212.35 2,091,787.15 15,116,301.15 Construc Other
tion
Prepayment for Under
equipment or 8,920,460.15 4,326.74 5,004,860.15 3,919,926.74 Construc Other
projects
tion
1,972,682,900.0
Total 454,767,328.93 211,917,765.65 7,096,647.30 0.00 659,588,447.28 -- -- 5,427,195.39 1,255,268.85 --
0
(3) List of the withdrawal of the impairment provision of the construction in progress
Nil
（4）Engineering material
Nil
22. Productive biological assets
Nil
23. Oil and gas assets
Nil
24. Right to use assets
Nil
25. Intangible assets
(1) Information
In RMB
Non patent
Items Land using right Patent Software Total
technology
I. Original price
1. Balance at
332,298,312.33 309,433.96 0.00 3,240,025.87 335,847,772.16
period-beginning
2.Increase in the current
period
(1) Purchase
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of
the period
（1）Disposal
4.Closing balance 332,298,312.33 309,433.96 0.00 3,240,025.87 335,847,772.16
II.Accumulated
amortization
1.Opening balance 55,106,840.56 258,450.38 0.00 741,724.73 56,107,015.67
2.Increased amount of
3,331,432.68 2,735.10 0.00 308,002.56 3,642,170.34
the period
(1) Withdrawal 3,331,432.68 2,735.10 0.00 308,002.56 3,642,170.34
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 58,438,273.24 261,185.48 0.00 1,049,727.29 59,749,186.01
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of
the period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 273,860,039.09 48,248.48 0.00 2,190,298.58 276,098,586.15
2.Opening book value 277,191,471.77 50,983.58 0.00 2,498,301.14 279,740,756.49
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
Nil
26. R&D expenses
Nil
27. Goodwill
Nil
28. Long-term unamortized expenses
Nil
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
End of term Beginning of term
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for Asset Impairment 1,300,939,413.26 200,993,717.84 1,339,474,275.36 207,199,125.83
Internal trade profit not
61,806,771.99 9,463,856.66 41,572,138.74 6,430,832.03
realized
Deductible loss 0.00 0.00
Temporary difference such as
2,218,329.11 332,749.37 2,218,329.11 332,749.37
amortizing of software expense
Changes in fair value of other
26,654,755.34 3,998,213.30
non-current assets
Total 1,391,619,269.70 214,788,537.17 1,383,264,743.21 213,962,707.23
(2) Deferred income tax liabilities had not been off-set
In RMB
End of term Beginning of term
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of
investments in other 1,873,766,425.98 281,064,963.90 1,620,922,484.40 243,138,372.66
equity instruments
Accumulated
6,180,970.50 927,145.58 6,651,971.67 997,795.75
depreciation
Deferred income 900,750.80 135,112.62 225,187.70 33,778.16
Total 1,880,848,147.28 282,127,222.10 1,627,799,643.77 244,169,946.57
（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Deferred Income Tax Temporarily Deductable
Deferred Income Tax Temporarily Deductable
Assets or Liabilities at or Taxable Difference at
Items Assets or Liabilities at or Taxable Difference at
the Beginning of Report the Beginning of Report
the End of Report Period the End of Report Period
Period Period
Deferred income tax
214,788,537.17 213,962,707.23
assets
Deferred income tax
282,127,222.10 244,169,946.57
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible provisional differences 734,654.14 650,570.73
Deductible losses 30,691,075.97 25,565,760.83
Total 31,425,730.11 26,216,331.56
(5) The un-recognized deductible losses of deferred income tax assets will due in the following years
In RMB
Year End of term Beginning of term Remark
2020 352,606.82 439,625.66
2021 712,938.27 712,938.27
2022 5,902,717.30 5,953,854.74
2023 18,459,342.16 18,459,342.16
2024 5,263,471.42
Total 30,691,075.97 25,565,760.83 --
30. Other non-current assets
Nil
31. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Items End of term Beginning of term
Pledge Borrowing 0.00 0.00
Mortgage Borrowings 59,800,000.00 47,900,000.00
Guarantee Borrowing 37,700,000.00 37,700,000.00
Credit borrowing 0.00 0.00
Mortgage and Guarantee 0.00 54,000,000.00
Total 97,500,000.00 139,600,000.00
(2) List of the short-term borrowings overdue but not return
32. Transactional financial liabilities
Nil
33. Derivative financial liability
Nil
34.Notes payable
In RMB
Items End of term Beginning of term
Bank acceptance bill 237,870,569.88 263,897,462.79
Total 237,870,569.88 263,897,462.79
35. Accounts payable
(1) List of accounts payable
In RMB
Items End of term Beginning of term
Goods 1,088,197,720.56 1,026,275,855.39
Equipment and Engineering 100,132,003.87 60,410,063.35
Total 1,188,329,724.43 1,086,685,918.74
(2) Notes of the accounts payable aging over one year
Nil
36. Advances received
Whether implemented new revenue guidelines?
Nil
(1) List of Advances received
In RMB
Items End of term Beginning of term
Goods 2,555,520,011.33 2,582,234,158.36
Total 2,555,520,011.33 2,582,234,158.36
(2) Notes of the accounts payable aging over one year
Nil
37. Employees’ wage payable
(1) List of Payroll payable
In RMB
Items Beginning of term Increased this period Decreased this period End of term
I. Short-term wages 63,423,331.59 324,039,923.67 337,179,017.91 50,284,237.35
II. Welfare after leaving
of position-fixed 22,967,623.70 43,995,715.30 52,109,496.76 14,853,842.24
provision scheme
Total 86,390,955.29 368,035,638.97 389,288,514.67 65,138,079.59
(2) Details of short term wages
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Wage, bonus, allowance and subsidies 48,159,059.49 243,286,098.34 263,117,557.72 28,327,600.11
2. Employee welfare 0.00 18,336,994.82 13,091,480.29 5,245,514.53
3. Social insurance 6,861,555.29 26,760,752.54 26,728,272.16 6,894,035.67
Incl. Medical insurance 6,406,895.63 23,347,637.26 23,313,021.09 6,441,511.80
Labor injury insurance
96,387.91 742,611.04 740,032.75 98,966.20
Maternity insurance 358,271.75 2,670,504.24 2,675,218.32 353,557.67
4. Housing fund 111,421.96 25,731,882.00 25,726,039.00 117,264.96
5. Labour union fee and employee
8,291,294.85 8,251,195.97 6,842,668.74 9,699,822.08
education fee
6. Short-term paid absence 0.00 0.00 0.00 0.00
7.Short-term profit sharing scheme 0.00 1,673,000.00 1,673,000.00 0.00
Total 63,423,331.59 324,039,923.67 337,179,017.91 50,284,237.35
(3) Details of fixed provision scheme
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Basic pension
4,080,388.66 31,241,284.39 31,189,936.66 4,131,736.39
insurance
2. Unemployment
145,938.27 1,114,649.31 1,113,025.82 147,561.76
insurance
3. Enterprise annual fee 18,741,296.77 11,639,781.60 19,806,534.28 10,574,544.09
Total 22,967,623.70 43,995,715.30 52,109,496.76 14,853,842.24
38. Taxes Payable
In RMB
Items End of term Beginning of term
VAT 3,815,501.92 29,776,940.88
Enterprise Income tax 15,707,673.47 23,909,724.68
Individual Income tax 684,083.90 1,043,483.57
City Construction tax 260,719.16 2,366,801.27
Property tax 348,901.25 1,520,839.72
Land use tax 1,655,168.00 1,654,687.31
Education subjoin 125,288.80 1,014,509.41
Locality Education subjoin 83,525.82 676,339.74
Other 245,929.47 441,874.04
Total 22,926,791.79 62,405,200.62
39.Other account payable
In RMB
Items End of term Beginning of term
Interest payable 100,958.90 437,314.72
Dividend payable 0.00 0.00
Other account payable 37,508,451.62 36,466,988.29
Total 37,609,410.52 36,904,303.01
（1) Interest payable
In RMB
Items End of term Beginning of term
Long term interest on borrowings due in installments 100,958.90 245,102.36
Interest on short-term borrowings 192,212.36
Total 100,958.90 437,314.72
(2) Dividends payable
In RMB
Items End of term Beginning of term
Total 0.00 0.00
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items End of term Beginning of term
Deposit 11,818,556.60 12,075,403.25
Provisional account payable 24,008,353.70 22,537,821.34
Other 1,681,541.32 1,853,763.70
Total 37,508,451.62 36,466,988.29
② Significant other payables for over 1 year
Nil
40. Liabilities classified as holding for sale
Nil
41. Non-current liabilities due within 1 year
In RMB
Items End of term Beginning of term
Long-term Borrowing loans due within 1
100,100,000.00 100,100,000.00
year
Total 100,100,000.00 100,100,000.00
42. Other current-liabilities
Nil
43. Long-term borrowing
(1) Category of long-term loan
In RMB
Items End of term Beginning of term
Mortgage loan 12,600,000.00 12,700,000.00
Guarantee loan 10,000,000.00 10,000,000.00
Total 22,600,000.00 22,700,000.00
44. Bonds payable
Nil
45. Lease liability
Nil
46. Long-term payable
In RMB
Items End of term Beginning of term
Long term account payable 208,330,000.00 209,598,799.99
Special Payable 577,336,859.28 265,277,651.27
Total 785,666,859.28 474,876,451.26
(1) Long-term payable listed by nature of the account
In RMB
Items End of term Beginning of term
CDB investment fund 208,000,000.00 208,000,000.00
Income payable of CDB 1,268,799.99
Drawing in administrative restructuring 330,000.00 330,000.00
Total 208,330,000.00 209,598,799.99
Other notes：
According to the relevant agreement of the National Development Fund Investment Contract (hereinafter
referred to as the Investment Contract) jointly signed by the Company, National Development Fund Co., Ltd.
(hereinafter referred to as the NDF), Hangzhou Steam Turbine Industry Co., Ltd. and Hangzhou Steam Turbine
Group, the NDF invested RMB 208,000,000.00 in Hangzhou Steam Turbine Industry Co., Ltd., the subsidiary,
The NDF obtains 1.2% of the proceeds through dividends or repurchasing premium each year for the above
investment; under the investment contract, Hangzhou Steam Turbine Group will transfer its shares of Steam
Turbine Industry Co., Ltd from 2019 to the NDF by installment. Hangzhou Steam Turbine Industry Co., Ltd has
received the above investment on December 27, 2016, according to the agreement of the investment contract on
the relevant investment returns, The Company reports it as a long-term payables, the current accrued income is
RMB1,248,000. Cumulative recognized income payable is RMB6,281,600.01.
(3) Special Payable
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason
period
Compensation for
265,277,651.27 314,548,452.89 2,489,244.88 577,336,859.28
relocation
Total 265,277,651.27 314,548,452.89 2,489,244.88 577,336,859.28 --
47. Long term payroll payable
Nil
48. Accrued liabilities
Nil
49. Deferred income
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason
period
Receive government
Government Subsidy 44,675,128.30 2,489,244.88 4,391,157.98 42,773,215.20
subsidies
Total 44,675,128.30 2,489,244.88 4,391,157.98 42,773,215.20 --
Details of government subsidies
In RMB
Amount
Amount
transf
erred of cost Asset-rel
New subsidy Other income Other
Beginning of to deducted ated or
Items in current recorded in the change End of term
term non-op income-re
period in the
eratio current period s lated
current
nal
income period
Financial support
Related to
for industrial 230,240.00 0.00 28,780.00 201,460.00
assets
projects
Government
Related to
subsidy for 1,911,645.00 0.00 997,380.00 914,265.00
assets
casting project
Circular economy Related to
91,280.00 0.00 11,410.00 79,870.00
financial subsidy assets
Subsidy for
Related to
industrial upgrading 160,000.00 0.00 160,000.00 0.00
assets
by provincial
government
Finance for casting Related to
230,240.00 0.00 28,780.00 201,460.00
project assets
Government subsidy
for industrial entities
from Yuhang Related to
106,930.00 0.00 0.00 106,930.00
District Government assets
in the 2nd half of
2009
Compensation for
requisition and Related to
41,944,793.30 2,489,244.88 3,164,807.98 41,269,230.20
relocation-newly assets
built complete plant
Total 44,675,128.30 2,489,244.88 0.00 4,391,157.98 0.00 0.00 42,773,215.20
50. Other non-current liabilities
Nil
51. Stock capital
In RMB
Increase/decrease this time (+ , - )
Transferre
Balance Year-beginning Issuing of new Bonus Balance year-end
d from Other Subtotal
share shares
reserves
Total of capital
754,010,400.00 754,010,400.00
shares
52. Other equity instruments
Nil
53. Capital reserves
In RMB
Year-beginning balance Increase in Decrease in the current Year-end balance
Items
the current period
period
Capital premium 93,909,294.56 93,909,294.56
Other capital reserves 57,775,125.09 57,775,125.09
Total 151,684,419.65 151,684,419.65
54. Treasury stock
Nil
55. Other comprehensive income
In RMB
Occurred current term
Less：Amount Less：Prior
transferred period
into profit and included in
loss in the other
After-tax attribute
Items Opening balance Amount incurred before current period composite Less：Income tax After-tax attribute to the Closing balance
to minority
income tax that recognied income expenses parent company
shareholder
into other transfer to
comprehensiv retained
e income in income in the
prior period current period
1. Other comprehensive
income that cannot be
1,377,784,111.74 252,843,941.58 0.00 0.00 37,926,591.24 214,917,350.34 0.00 1,592,701,462.08
reclassified in the loss and
gain in the future
Changes in fair value of
investments in other equity 1,377,784,111.74 252,843,941.58 37,926,591.24 214,917,350.34 0.00 1,592,701,462.08
instruments
II. Other Comprehensive
income that will be
-615,589.00 545,518.42 0.00 0.00 0.00 232,279.56 313,238.86 -383,309.44
reclassified subsequently to
profit or loss
Difference of translating of
-615,589.00 545,518.42 232,279.56 313,238.86 -383,309.44
foreign currency accounts
Total of other
1,377,168,522.74 253,389,460.00 0.00 0.00 37,926,591.24 215,149,629.90 313,238.86 1,592,318,152.64
comprehensive income
56.Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 21,020,671.47 434,456.69 1,218,494.40 20,236,633.76
Total 21,020,671.47 434,456.69 1,218,494.40 20,236,633.76
57. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus reserves 621,112,807.78 621,112,807.78
Total 621,112,807.78 621,112,807.78
58. Retained profit
In RMB
Items Amount of this period Amount of last period
After adjustments: Retained profits at the period
3,082,544,107.52 2,774,420,288.05
beginning
Add：Net profit belonging to the owner of the
160,325,133.00 345,824,339.47
parent company
Common stock dividend payable 150,802,079.99 37,700,520.00
Retained profit at the end of this term 3,092,067,160.53 3,082,544,107.52
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
59. Business income and Business cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main Business 1,911,865,806.20 1,364,677,904.22 2,276,427,071.38 1,608,263,667.71
Other 8,315,896.83 1,726,497.04 7,703,910.75 3,852,484.55
Total 1,920,181,703.03 1,366,404,401.26 2,284,130,982.13 1,612,116,152.26
Whether implemented new revenue guidelines?
□ Yes √ No
60.Taxes and surcharges
In RMB
Items Amount of this period Amount of last period
City maintenance and construction tax 6,258,277.92 11,822,700.18
Education surtax 2,722,783.20 5,249,866.83
House tax 332,977.63 3,216,786.22
Land use tax 1,655,168.00 5,178,759.26
vehicle and vessel tax 26,793.80 24,888.00
Stamp tax 646,951.82 1,027,019.01
Locality Education surcharge 1,815,188.62 3,299,209.54
Total 13,458,140.99 29,819,229.04
61. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 35,345,136.48 32,773,059.29
Transportation 17,358,879.72 14,693,552.44
Business trips 11,000,584.22 9,452,510.07
Business reception expenses 3,518,464.60 3,399,943.75
Conferences
8,877,804.98 8,058,157.00
Consulting service fee 857,979.45 900,990.48
Three charge 2,965,403.66 1,829,961.31
Advertising fee 645,456.86 904,782.48
Office expenses 294,547.52 610,525.86
Unit premium 443,566.81 175,631.84
Other 5,588,115.02 4,209,187.70
Total 86,895,939.32 77,008,302.22
62. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 163,845,277.06 180,210,554.84
Asset depreciation and amortizing 12,905,965.64 6,891,121.59
Business reception expenses 1,341,508.33 5,547,320.26
Rental fee, House rental, property
management, water and power 11,812,826.37 5,015,031.88
Traveling fees 4,586,971.31 4,275,372.97
Material, low-value-consumable 1,755,846.28 1,720,636.69
Office expenses
1,171,344.18 904,559.60
Maintaining 1,822,902.87 1,375,919.85
Other 35,925,683.94 31,515,542.48
Total 235,168,325.98 237,456,060.16
63. R&D Expense
In RMB
Items Amount of this period Amount of last period
Labor cost 50,307,098.47 52,135,762.31
Direct materials 51,643,451.05 85,259,892.10
Depreciation expenses 6,273,507.75 6,939,770.84
Test and inspection fee 5,852,855.49 3,476,581.20
Commissioned research & development 906,393.74 1,738,575.99
Other 1,777,636.02 1,798,978.59
Total 116,760,942.52 151,349,561.03
64. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expense
7,347,036.95 6,422,483.44
Less: Incoming interests
13,761,463.96 6,343,865.32
Exchange gains/losses
1,120,184.65 -1,251,354.77
Commission 1,072,945.23 1,032,189.81
Other -33,206.03 143,723.91
Total -4,254,503.16 3,177.07
65. Other income
In RMB
Items Amount of this period Amount of last period
Government subsidies 14,470,802.89 20,337,694.45
Individual tax commission refunds 1,290,786.14
Total 15,761,589.03 20,337,694.45
66. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity method 0.00
Investment income from disposal of Long-term equity investment 0.00
2,320,462.15
Investment gains from holding of sellable
financial assets
29,171,059.01
Investment income from disposal of available for sale financial
assets
Dividend income from other equity instrument investments
67,968,801.50
during the holding period
Investment income received from holding of held-to-maturity
0.00
investments during holding period
Available for sale financial assets in the holding period of
0.00 11,428,418.13
investment income
Investment income from disposal of available for sale financial
0.00
assets
Disposal of investment proceeds from hold-to-maturity investments 0.00
Investment income from the remaining equity recalculated by fair
0.00
value after losing control
Interest income earned by the debt investment during the holding
0.00
period
Interest income earned by other debt investments during the
0.00
holding period
Investment income from disposal of other debt investments 0.00
Investment income of financial products 0.00 25,716,189.31
Total 99,460,322.66 37,144,607.44
67.Net exposure hedging income
Nil
68. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
Transactional financial assets -1,474,755.34
Total -1,474,755.34
69. Credit impairment loss
Nil
70. Losses from asset impairment
Whether implemented new revenue guidelines?
□Yes √No
In RMB
Items Amount of this period Amount of last period
Losses on bad debt 6,034,889.10 -43,111,352.82
Inventory price loss 388,917.60
Total 6,423,806.70 -43,111,352.82
71. Asset disposal income
In RMB
Source Amount of this period Amount of last period
Profits of disposal of fixed assets -1,183.02
Total -1,183.02
72. Non-operating income
In RMB
Recorded in the amount of the non-recurring
Items Amount of this period Amount of last period
gains and losses
Compensation income 576,158.72 3,727,204.67 576,158.72
167,716.46
Others 168,680.44 462,521.81
Total 744,839.16 4,189,726.48 743,875.18
73. Non-operational expenditure
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Debt restructuring loss 526,315.79 526,315.79
Donations 70,000.00 10,000.00 70,000.00
Penalty paid out 3,681,180.41 2,488,554.74 3,681,180.41
Local water source foundation 66.99 770.69
Fine, late payment 87,175.73 4,673.35 87,175.73
Non-current assets scrapping
497,573.36 3,031.08 497,573.36
loss
Other 358,450.00 84,124.68 353,800.00
Total 5,220,762.28 2,591,154.54 5,216,045.29
74. Income tax expenses
(1) Details
In RMB
Items Amount of this period Amount of last period
Income tax of current
37,570,544.94 27,761,803.39
term
Deferred income tax -795,145.65 4,216,068.43
Total 36,775,399.29 31,977,871.82
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Amount of this period
Total profit 221,442,313.03
Income tax expense at statutory / applicable tax rates 33,216,346.96
Effect of different tax rates applicable to subsidiaries 3,268,612.11
Adjustment for income tax in prior year 6,658,104.43
Income not subject to tax -7,388,913.37
Expenses not deductible for tax purposes 230,138.89
Affect the use of deferred tax assets early unconfirmed
-34,539.07
deductible losses
The current period does not affect the deferred tax assets
825,649.34
recognized deductible temporary differences or deductible loss
Income tax expenses 36,775,399.29
75. Other Comprehensive income
Please find the statement in the notes of consolidated balance sheet.
76. Notes Cash flow statement
(1) Other cash received from business operation
In RMB
Items Amount of this period Amount of last period
Deposit interest(Notes) 12,657,033.86 6,343,865.32
Government subsidies received 8,849,942.78 2,161,611.71
Recovery of operating bank deposits 3,376,150.00
Compensation income 63,697.10 11,483,287.56
Receipt of operating current account 900,072.19 1,000.00
Other 280,235.91 1,823,428.44
Total 26,127,131.84 21,813,193.03
Notes：
2. Other cash paid for Operating activities
In RMB
Items Amount of this period Amount of last period
Transportation 1,852,243.48 2,761,048.87
16,200,400.44 13,727,883.04
Travel expenses
Business trips 4,675,551.83 8,947,264.01
Maintaining 932,917.88 991,158.80
Property management and civil services 14,459,646.16 6,043,553.85
Deposit for bidding and others 7,002,407.01 4,967,366.64
Office expenses 1,125,869.55 2,365,249.57
Conferences 1,012,286.97 1,286,844.32
Consulting service fee 4,134,383.92 9,460,726.55
Transportation and vehicles 1,800,422.55 2,693,178.46
Other 48,915,743.06 30,132,445.17
Total 102,111,872.85 83,376,719.28
3.Other investment-related cash received
In RMB
Items Amount of this period Amount of last period
Repurchasing of trusteeship 1,736,229,711.39 2,054,176,329.00
Receipt of levy and relocation
314,548,452.89
compensation
Total 2,050,778,164.28 2,054,176,329.00
4. Other cash paid for investment activities
In RMB
Items Amount of this period Amount of last period
Purchasing of financial
1,157,904,000.00 2,477,114,000.00
products
Total 1,157,904,000.00 2,477,114,000.00
5. Other financing-related cash received
In RMB
Items Amount of this period Amount of last period
Total 0.00 0.00
(6) Other cash paid relevant to financing activities
In RMB
Items Amount of this period Amount of last period
Payment of CDB investment interest 2,530,666.67 2,530,666.67
Total 2,530,666.67 2,530,666.67
77. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplementary Info. Amount of this period Amount of last period
I. Adjusting net profit to cash flow from operating activities -- --
Net profit 184,666,913.74 160,370,149.54
Add: Impairment loss provision of assets -6,423,806.70 43,111,352.82
Depreciation of fixed assets, oil and gas assets and consumable
30,399,548.46 34,665,195.13
biological assets
Amortization of intangible assets 3,642,170.34 3,549,845.84
Amortization of Long-term deferred expenses 126,943.44
Loss on disposal of fixed assets, intangible assets and other
1,183.02
long-term deferred assets
Loss on scrap of fixed assets 497,573.36 3,031.08
Loss to changes in fair value 1,474,755.34
Financial cost 8,467,221.60 5,171,128.67
Loss on investment -99,460,322.66 -37,144,607.44
Decrease of deferred income tax assets -825,829.94 4,216,068.43
Increased of deferred income tax liabilities 37,957,275.53
Decrease of inventories -28,264,852.32 36,950,352.31
Decease of operating receivables -127,219,533.71 -206,949,145.32
Increased of operating Payable -12,688,968.55 514,803,440.92
Other -1,563,923.88 -1,086,564.69
Net cash flows arising from operating activities -9,340,596.37 557,787,190.73
II. Significant investment and financing activities that without cash
-- --
flows:
III. Net changes in cash and cash equivalents: -- --
Cash at end of year 1,686,405,098.11 1,155,254,587.46
Less: cash equivalents at beginning of year 1,262,186,817.20 1,137,492,834.83
Net increase of cash and cash equivalents 424,218,280.91 17,761,752.63
(2) Net Cash paid of obtaining the subsidiary
Nil
(3) Net Cash receive of disposal of the subsidiary
Nil
(4) Component of cash and cash equivalents
In RMB
Items End of term Beginning of term
I. Cash 1,686,405,098.11 1,262,186,817.20
Of which: Cash in stock 132,336.73 128,198.82
Bank savings could be used at any time 1,686,272,261.33 1,262,057,605.97
Other unrestricted monetary funds 500.05 1,012.41
III. Closing balance of cash and cash equivalents 1,686,405,098.11 1,262,186,817.20
78. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.
79. Assets with limitation on ownership or using rights
In RMB
Items Closing book value Causation o limitation
Used as security for issuing of
Monetary capital 133,453,924.80 acceptance drafts and bill of
guarantees
Used as security for issuing of
Note receivable 62,824,000.00
acceptance drafts
Collateral for obtaining bank loans and
Fixed assets 118,662,101.07
investment funds from CDB
Collateral for obtaining bank loans and
Intangible assets 84,981,463.59
investment funds from CDB
Construction in process Used for mortgage to obtain bank loan and
420,170,711.42
guarantee investment fund for CDB
Used for mortgage to obtain bank loan and
Dividend receivable 27,827,292.60
guarantee investment fund for CDB
Used for mortgage to obtain bank loan and
Other Equipment instrument Investment 375,516,399.00
guarantee investment fund for CDB
Total 1,223,435,892.48 --
Other notes：
80. Monetary items in foreign currencies
(1) Foreign currency monetary items
In RMB
Translated to RMB at end of
Items Balance at end of period Exchange rate
period
Monetary capital -- -- 164,396,901.76
Incl：USD 23,148,814.88 6.8742 159,129,583.25
Euro 9,828.56 7.8170 76,829.86
HKD 0.00 0.00
Yen 30,055.00 0.063816 1,917.99
Rupiah 10,992,734,449.92 0.000472 5,188,570.66
Account receivable -- -- 224,759,835.13
Incl：USD 31,461,943.71 6.8742 216,275,693.45
Euro 551,673.43 7.8170 4,312,431.20
HKD
Rupiah 8,324,656,609.57 0.000472 3,929,237.92
SGD 47,726.12 5.0805 242,472.56
Long-term borrowing -- --
Incl：USD
Euro
HKD
Account payable 10,413,054.69
Incl：USD 951,442.96 6.8742 6,540,409.20
Euro 381,143.86 7.8170 2,979,401.55
Rupiah 1,892,465,980.00 0.000472 893,243.94
Other receivable 3,437,100.00
Incl：USD 500,000.00 6.8742 3,437,100.00
Other notes:
(2) Note to overseas operating entities, including important overseas operating entities, which should be disclosed
about its principal business place, function currency for bookkeeping and basis for the choice. In case of any
change in function currency, the cause should be disclosed.
Not applicable
81. Hedging
Hedging According to Hedging category to disclose arbitrage item, relevant Hedging tools and the Hedging risk
qualitative and quantitative information:
82. Government subsidy
1) Government subsidies related to assets
In RMB
Amount included in current
Items Amount Project
profit and loss
Social security fee refund 8,859,468.01 Other income 8,859,468.01
Relocation compensation -
3,164,807.98 Other income 3,164,807.98
relocation costs
Incentive for scientific and
1,000,000.00 Other income 1,000,000.00
technological innovation
Forging project financial
997,380.00 Other income 997,380.00
resources
Provincial industrial
transformation and upgrading 160,000.00 Other income 160,000.00
financial support
Economic work reward 126,500.00 Other income 126,500.00
Refund for land use tax 49,703.56 Other income 49,703.56
Social insurance subsidy for 9,513.34 Other income 9,513.34
post stabilization and
employment
Other incidental government
103,430.00 Other income 103,430.00
subsidies
Total 14,470,802.89 14,470,802.89
（2）Government subsidy return
□ Applicable √ Not applicable
83.Other ：Nil
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Nil
(2) Merger of enterprises under the same control
Nil
3. Counter purchase
Nil
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Nil
6. Other :Nil
IX. Equities in Other Entities
(I) Equity in major subsidiaries
(1) The structure of the enterprise group
Main Share proportion %
Name of the Business
business Reg. Add.
subsidiaries property Way of obtain
location Direct Indirect
Zhejiang Steam
Trubine Packaged
Hangzhou Hangzhou Incorporatio
Technologies Commerce 70.86%
Zhejiang Zhejiang
Development Co., n
Ltd.
Hangzhou
Zhongneng Steam
Manufacturin
Turbine Power Hangzhou Hangzhou
g 60.83% Incorporation
Co., Ltd. Zhejiang Zhejiang
Zhongneng Co.)
Hangzhou Steam
Hangzhou Hangzhou Incorporatio
Turbine Casting
Zhejiang Zhejiang Manufacturing 38.03%
Co., Ltd. n
Hangzhou Steam
Turbine
Hangzhou Hangzhou Manufacturin
Machinery
Zhejiang Zhejiang g 52.00% Incorporation
Equipment Co.,
Ltd.
Hangzhou Steam
Turbine
Auxiliary Hangzhou Hangzhou Incorporatio
Machinery Co., Zhejiang Zhejiang Manufacturing 87.53%
n
Ltd. (Auxiliary
Machinery Co.)
Zhejiang Turbine
Hangzhou Hangzhou Incorporatio
Import & Export Co., Commerce 100.00%
Zhejiang Zhejiang
Ltd. (Turbine Co.) n
Hangzhou Steam
Hangzhou Hangzhou
Turbine Heavy Industry
Zhejiang Zhejiang Manufacturing 100.00% Incorporation
Co., Ltd.
(2) Basis for holding 50% or less than 50% of the voting power but still controlling the invested organizations
In December 2018, the subsidiary Casting Company introduced external strategic investors, leading to a
decrease in the shareholding ratio of the Company from 51% to 38.03%. Since the Company still held more than 1/3
of shares and took four seats in the board of seven directors, it still had power of control over the Casting &
Forging Company.
2.Major non-fully-Owned subsidiaries
In RMB
Gains/loss of the period Balance of equity of
Name of the Share portion of minor Dividend announced in the
attributable to minor minor shareholders at
subsidiaries shareholders period to minor shareholders
shareholders end of period
Zhejiang Steam
Trubine
Packaged
29.14% 4,304,870.88 2,972,790.00 27,302,058.72
Technologies
Development
Co., Ltd.
Hangzhou
Zhongneng Steam
39.17% 7,733,747.67 21,786,000.00 136,358,773.38
turbine Power Co.,
Ltd.
Hangzhou Steam 61.97% -3,050,916.73 148,321,569.19
Turbine Casting Co.,
Ltd.
Hangzhou Steam
Turbine Machinery 48.00% 15,340,505.79 21,600,000.00 67,661,649.67
Equipment Co., Ltd.
Hangzhou Steam
Turbine Auxiliary 12.47% 791,423.70 26,150,764.23
Machinery Co., Ltd.
3. Material financial information of major non-fully-owned subsidiaries
In RMB
End of term Beginning of term
Subsidiaries
Non-current Current Non-current Total of Non-current Current Non-current Total of
Name Current assets Total of assets Current assets Total of assets
assets liabilities liabilities liability assets liabilities liabilities liability
Zhejiang
Steam
Trubine
285,022,490.1 191,345,843.2 248,134,781.8 272,775,507.8 183,669,390 183,669,390.7
Packaged 260,418,141.15 24,604,348.96 191,345,843.28 0.00 24,640,726.05 0.00
1 8 3 8 .74 4
Technologies
Development
Co., Ltd.
Hangzhou
Zhongneng Steam
1,141,670,374 818,409,077.1 1,105,955,992 1,177,919,594 819,218,843 819,548,843.0
1,071,372,607.22 70,297,767.42 818,079,077.13 330,000.00 71,963,602.76 330,000.00
turbine PowerCo., .64 3 .17 .93 .06 6
Ltd.
Hangzhou Steam
165,407,628.4 517,297,871.1 277,938,658.3 441,396,913.8 172,078,042.9 613,474,956.7 343,698,819 369,022,224.5
Turbine Casting 351,890,242.72 253,941,603.34 23,997,055.00 25,323,405.00
6 8 4 2 1 3 .51 1
Co., Ltd.
Hangzhou Steam
Turbine
279,213,048.5 138,251,278.4 232,419,338.5 253,677,936.6 98,910,290.
Machinery 257,731,414.27 21,481,634.32 136,703,360.04 1,547,918.40 21,258,598.11 765,263.03 99,675,553.57
9 4 4 5 54
Equipment Co.,
Ltd.
Hangzhou Steam 659,262,621.68 107,914,924.1 767,177,545.8 557,361,199.37 106,930.00 557,468,129.3 642,467,713.4 110,484,194.2 752,951,907.6 549,240,066 106,930.00 549,346,996.2
Turbine Auxiliary 6 4 7 1 8 9 .20 0
Machinery Co.,
Ltd.
In RMB
Subsidiaries Amount of current period Amount of previous period
Cash flow for business Cash flow for business
Name
Turnover Net profit Total Misc Gains Turnover Net profit Total Misc Gains
activities activities
Zhejiang
Steam
Trubine
Packaged
132,931,775.76 14,770,529.69 14,770,529.69 16,677,677.17 103,740,083.15 8,964,799.55 8,964,799.55 -3,782,165.04
Technologie
s
Development
Co., Ltd.
Hangzhou
Zhongneng
434,209,306.91 17,020,437.04 17,565,955.46 25,182,061.76 404,080,803.34 13,107,189.41 13,026,863.20 81,799,842.65
Steam turbine
Power Co., Ltd.
Hangzhou
Steam Turbine
201,953,546.36 -4,923,525.49 -4,923,525.49 -4,923,310.09 217,307,955.01 11,884,986.18 11,884,986.18 -36,112,238.38
Casting Co.,
Ltd.
Hangzhou
Steam Turbine
Machinery 134,372,561.91 31,959,387.07 31,959,387.07 34,542,152.34 120,928,873.57 25,913,896.24 25,913,896.24 13,513,334.06
Equipment Co.,
Ltd.
Hangzhou
Steam Turbine
Auxiliary 238,328,136.56 6,346,621.51 6,346,621.51 1,340,271.89 225,615,296.83 5,792.82 5,792.82 33,715,715.56
Machinery Co.,
Ltd.
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Nil
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
Nil
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
Nil
3. Equity in joint venture arrangement or associated enterprise
Nil
4. Significant common operation
Nil
5. Equity of structure entity not including in the scope of consolidated financial statements
Nil
6.Other:Nil
X. Risks related to financial instruments
The objective of the Company’s risk management is to achieve a balance between the risk and gains. Constrain
the negative influence on business operation to the lowest limit, and maximum the interests of shareholders and
other equity holders. With regard to this target, the basic policies of the Company are; locate and analyse the risks,
set appropriate bottom line for risks, and manage and monitor on each risk and constrain them in a certain extent.
Risks attached to financial instruments are mainly credit risks, liquidity risks, and market risks.
The following risk managing policies have been examined and approved by the management:
(I) Credit risks
Credit risks are introduced when one party of the financial instrument failed to exercise its liabilities and then
caused financial loss to another.
The credit risks of the Company are mainly composed by bank savings and receivable accounts. Following
measurements are adopted to control these risks:
1. Bank deposit
The Company puts its bank savings in financial institutions with higher credit ranks, therefore with lower risks.
2. Account receivable
The Company performs credit assessment on the clients on periodic and constant basis. Results suggested by the
assessment are used by the Company to determine clients with higher ranks and to overlook the rest. This was
conducted to avoid risks brought by material bad debts.
As the Company only does business with recognized and reputable third parties, so no collateral is needed.
Credit risks are centralized managed in accordance with customers. As of June 30, 2019, the Company has a
characteristic of specific credit risk concentration. 38.08% (June 30, 2018: 36.50%) of the Company's accounts
receivable comes from the top five customers. The Company does not hold any collateral or other credit
enhancement for the balance of accounts receivable.
(1) Analyzing of receivable accounts neither due nor impaired, and those have due but not impaired:
Items End of term
Not overdue and not Overdue but not impaired Total
impaired Within 1 year 1-2 years Over 2 years
Note receivable 480,606,384.84 480,606,384.84
Subtotal 480,606,384.84 480,606,384.84
Items Beginning of term
Not overdue and not Overdue but not impaired Total
impaired Within 1 year 1-2 years Over 2 years
Note receivable 595,089,175.22 595,089,175.22
Subtotal 595,089,175.22 595,089,175.22
(2) Refer to Notes of the Financial Statements in conjunction with notes of the consolidated financial
statements-accounts receivable for individual accounts receivable with provision for impairment.
(II) Liquidation risks
Liquidation risks are the possibilities of short in cash at fulfilling liabilities of payment or settlement for financial
assets. They may be caused by failing to cash financial assets at fair value instantly; debtors’ failing of paying
debts due; debts due before schedule; or failing of generating expected cash flow.
To handle these risks, the Company adopted multiple measures such as note clearance and bank loans.
Long-term and short-term financing approaches were used to maintain balance between constancy and flexibility.
The Company has obtained credit from multiple banks to satisfy the needs of business operation and capital
output.
(III) Market risks
Market risks are those brought by change of fair value or expectable cash flow
of financial instruments due to change of market prices, mainly interest risks
and exchange rate risks.
1. Interest risks
Interest risks are those brought by change of fair value or expectable cash flow
of financial instruments due to change of interest rates, mainly regards the loans
at floating interest rates.
2. Foreign currency risks
Foreign currency risks (exchange rate risks) are those caused by change of fair value or expectable cash flow
of financial instruments due to fluctuation of exchange rates. These risks are mainly related to foreign currency
assets and liabilities. The Company operates in mainland China and mostly uses RMB as standard currency,
therefore no major risks regarding exchange rates. For details of foreign currency assets and liabilities, please go
to the descriptions in the notes to the consolidated financial statements.
XI Fair value disclosure
(I)Closing balance of assets and liabilities measured at fair value
In RMB
Closing fair value
Items
Level 1 Level 2 Level 3 Total
I. Consistent fair value measurement -- -- -- --
(I) Trading financial assets 2,281,853.06 16,000,000.00 692,369,030.80 710,650,883.86
1. Financial assets at fair value through
2,281,853.06 16,000,000.00 692,369,030.80 710,650,883.86
profit or loss
（1）Debt instrument investment 578,769,000.00 578,769,000.00
（2）Equity instrument investment 2,281,853.06 16,000,000.00 113,600,030.80 131,881,883.86
（3）Derivative financial assets 0.00
1. Designated Financial assets at fair
0.00 0.00 0.00 0.00
value through profit or loss
（1）Debt instrument investment 0.00
（2）Equity instrument investment 0.00
2.Other creditor's right investment 0.00
3.Other equipment instrument investment 2,264,720,465.98 2,264,720,465.98
4.Investment Real estate 0.00
1. The right to use the leased land 0.00
2. Leased buildings 0.00
3. Land use rights held and prepared for
0.00
transfer after appreciation
5. Biological assets 0.00
1. Consumable biological assets 0.00
2. Productive biological assets 0.00
Total assets of inconsistent fair value
2,267,002,319.04 16,000,000.00 692,369,030.80 2,975,371,349.84
measurement
II.Total liabilities of inconsistent fair
-- -- -- --
value measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The shares held by the Company, Hangzhou Bank Co., Ltd and Sichuan Lutianhua Co., Ltd have active market
quotations, thus those are measured at the first level fair value.
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 2
The fair value of the Juyuan Xinxing 9 Private Equity Fund held by the Company, as the quotation of same or
similar assets or liabilities can be obtained in the active or inactive market, is determined on the basis of the
quoted price and in accordance with the valuation method agreed in the subscription contract.
4. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 3
As the quotations cannot be obtained in the similar active market, the equity and debt-type financial assets held by
the Company other than the above, including wealth management products, are measured at the third-level fair
value.
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing
book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens
among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9. Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
Name of the parent Registered place Business nature Registered capital Shareholding ratio in Voting ratio in the Company
company the Company (%) (%)
Hangzhou Steam Hangzhou Manufacturin
800 million yuan 63.64% 63.64%
Turbine Group China g
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of
the Company.
2.Subsidiaries of the enterprise
For details of subsidiaries please go to the statement of equities in other entities.
3. Situation of joint ventures and associated enterprises
Nil
4. Other related parties
Name of the related parties Relationship with the Company
Hangzhou Steam turbine Automobile sales service Co., Ltd. Affiliate of the Group
Hangzhou Steam turbine Industry Trade Co., Ltd. Affiliate of the Group
Hangzhou Hangfa Power Generating Equipment Co., Ltd. Affiliate of the Group
Hangzhou Nanhua Wooden Packaging Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Engineering Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Group Equipment Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Compressor Co., Ltd. Affiliate of the Group
China Electrical and Mechanical Institute-Hangzhou Turbine Group
Affiliate of the Group
(Hangzhou) United Research Institute Co., Ltd.
Shanghai Relian Group Co., Ltd. Shareholding enterprise
Greenesol power systems PVT Ltd. Shareholding enterprise
Hangzhou Bank Shareholding enterprise
5.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
Over the
Content of related Amount of current Amount of previous Amount of last
Related parties trading limit
transaction period
or not?
period period
Hangzhou Nanhua Wooden Packaging
Packaging 7,475,985.95 18,060,000.00 No 6,153,165.35
Co., Ltd.
China Electrical and Mechanical Raw material 171,982.76 2,000,000.00 No 998,507.96
Institute-Hangzhou Turbine Group
(Hangzhou) United Research Institute
Co., Ltd.
Hangzhou Hangfa Generating
Generators 80,979,594.17 176,724,137.93 No 66,654,877.76
Equipment Co., Ltd.
Hangzhou Steam Turbine Engineering Raw material and
861,320.75 3,900,000.00 No 427,350.43
Co., Ltd. technical service
Hangzhou Steam turbine Automobile Transportation ,
30,443,515.87 45,560,000.00 No 20,047,920.03
sales service Co., Ltd. repair , etc.
119,932,399.50 246,244,137.93 94,281,821.53
Related transactions regarding sales of goods or providing of services
In RMB
Subjects of the
Related parties related Current term Same period of last term
transactions
Steam Turbine,
Hangzhou Steam Turbine Engineering
Compressor, 3,209,482.76 45,627,247.27
Co., Ltd.
Installation service
Hangzhou Hangfa Generating Cast parts
3,902,039.33 7,495,811.84
Equipment Co., Ltd.
Greenesol power systems PVT Ltd. Part 315,180.53 521,141.46
Hangzhou Steam Turbine Automobile Sales
Small amount materials 117.49 302.06
Service Co., Ltd.
Hangzhou Steam Turbine Power Group Co., Ltd. Small amount materials 1,019.70 0.00
Subtotal 7,427,839.81 53,644,502.63
(2) Related trusteeship/contract
Nil
(3) Information of related lease
- The company was lessee：
In RMB
Category of leased The lease income
Lessor Category of leased assets
assets confirmed in this year
HSTG House and Building 1,693,306.96 737,888.21
Hangzhou Steam Turbine Automobile Sales
Site leasing 1,032,514.68 1,197,365.43
Service Co., Ltd.
Subtotal 2,725,821.64 1,935,253.64
（4）Related-party guarantee
The Company was guarantor
In RMB
Guarantor Guarantee amount Start date End date Execution accomplished or not
HSTG 208,000,000.00 December 28,2016 December 22,2026 No
The Company was secured party
In RMB
Guarantor Guarantee amount Start date End date Execution accomplished or not
HSTG 100,000,000.00 November 30,2017 November 30,2019 No
Notes：
In accordance with the National Development Fund Investment Contract, jointly signed by the Company, NDF,
Turbine Industry Company and Hangzhou Steam Turbine Group, the investment of the NDF on Turbine Industry
Company, RMB 208,000,000.00, is repurchased by the Hangzhou Steam Turbine Group, and the NDF asks the
Company and Hangzhou Steam Turbine Group to provide guarantee for the fulfillment of Hangzhou Steam
Turbine Group of the transferee equity obligations. The Company and Steam Turbine Company pledge to the NDF
with a total of 45.08 million shares of Hangzhou Bank Co., Ltd. with book value of RMB
375,516,399.00,Dividend Receivable of RMB27,827,292.60, Steam Turbine heavy Industry Co., Ltd. mortgaged
the book value of65,987,061.22 yuan of land use rights and book value of 40,753,085.36 yuan of fixed assets and
book value of 420,170,711.42 yuan of construction in progress to the National Development Fund.
(5) Inter-bank lending of capital of related parties
Nil
（6）Related party asset transfer and debt restructuring
In RMB
Same period of last
Related party Content Current term
term
Hangzhou Steam Turbine Automobile Sales Service
Purchase fixed assets 131,110.93 0.00
Co., Ltd.
（7） Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 4,302,268.00 3,834,075.47
(8) Other related transactions
(1) Service and power supply
HSTG supplies water and power to the Company and some of the subsidiaries amounted
to RMB 6762513.50 this period.
HSTG. provides property management services for its subsidiary which is Complete Technology Corporation, of
which the fee of this period incurred in the property management is RMB 26050.60.
Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. provided
transportation to the Company’s employees and RMB 1050286.00 was paid this period.
(3) Expenses paid on behalf the Company
1) During the current period, Hangzhou Steam Turbine Group advanced the payment of RMB 467520.08 salaries
for the company. Advanced for paying the fees of 671,627.72 yuan for newspapers and periodicals.
(3) Bank credit and entrusted wealth-management
1) The Company applied for a line of credit of RMB 300 million to Shiqiao Sub-branch, Bank of Hangzhou Co.,
Ltd. and till June 30,2019, the balance of loan under the line of credit was still RMB 0.
2) The Company entered into a financial management agent contract with Bank of Hangzhou Co., Ltd. in the
cumulative amount of financial management of RMB 318,000,000.00 and till June 30.ber 31, 2019, the balance of
the financial management was RMB268,000,000.00.
6. Receivables and payables of related parties
（1）Receivables
In RMB
End of term Beginning of term
Name Related party
Book balance Bad debt provision Book balance Bad debt provision
Note Hangzhou Steam Turbine Engineering
6,100,000.00 1,033,180.00
receivable Co., Ltd.
Hangzhou Hangfa Generating
13,760,000.00 4,000,000.00
Equipment Co., Ltd.
Subtotal 19,860,000.00 5,033,180.00
Account Hangzhou Steam Turbine Engineering
51,242,293.87 23,846,464.78 56,048,293.87 23,796,436.58
receivable Co., Ltd.
Hangzhou Hangfa Generating
19,014,343.57 1,475,673.32 18,739,908.99 1,269,459.57
Equipment Co., Ltd.
Greenesol power systems PVT Ltd. 14,522,075.90 14,522,075.90
Hangzhou Steam Turbine Power
158,500.00 158,500.00 158,500.00 158,500.00
Group Co., Ltd.
Hangzhou Steam Turbine Compressor 59,000.00 35,400.00 59,000.00 35,400.00
Co., Ltd’
Hangzhou Steam Turbine Power
Group Complete Equipment
Engineering Co., Ltd.
Hangzhou Steam Turbine Automobile
134.42 6.72
Sales Service Co., Ltd
Subtotal 70,474,271.86 25,516,044.82 89,527,778.76 39,781,872.05
Hangzhou Hangfa Generating
Prepayment 41,416,785.00 51,691,853.97
Equipment Co., Ltd.
Hangzhou Steam Turbine Engineering
7,715,000.00 5,820,000.00
Co., Ltd.
Zhejiang Zhongrun Gas turbine
792,022.20
technology Co., Ltd.
Subtotal 49,131,785.00 58,303,876.17
Other account Hangzhou Steam Turbine Compressor
300,000.00 30,000.00 300,000.00 30,000.00
receivable Co., Ltd.
Hangzhou Steam Turbine Group 39,105.34 3,910.53
Subtotal 300,000.00 30,000.00 339,105.34 33,910.53
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Hangzhou Hangfa Generating Equipment
Note payable 11,500,000.00
Co., Ltd.
Hangzhou Steam Turbine Automobile Sales
1,680,000.00 1,650,000.00
Service Co., Ltd
Hangzhou Nanhua Wooden Packaging Co.,
450,000.00 1,660,000.00
Ltd.
Hangzhou Steam Turbine Engineering Co.,
Ltd.
Subtotal 2,130,000.00 14,810,000.00
Hangzhou Hangfa Generating Equipment
Account payable 170,999,628.32 116,462,941.48
Co., Ltd.
Hangzhou Steam Turbine Automobile Sales
13,943,743.22 11,934,956.54
Service Co., Ltd
Greenesol power systems PVT Ltd. 1,978,927.49 3,381,200.50
Hangzhou Steam Turbine Engineering Co.,
3,562,056.60 2,040,000.00
Ltd.
Hangzhou Nanhua Wooden Packaging Co.,
1,313,835.14 1,851,121.07
Ltd.
HSTG 7,237,557.51 1,652,987.82
China Electrical and Mechanical
Institute-Hangzhou Turbine Group
427,500.00
(Hangzhou) United Research Institute Co.,
Ltd.
Hangzhou Steam Turbine Industries & Trade
814,507.79 476,525.45
Co., Ltd.
Zhejiang Zongrun Gas turbine technology
158,607.00
Co., Ltd.
Subtotal 200,008,863.07 138,227,232.86
Advances Hangzhou Steam Turbine Compressor Co.,
14,190,000.00 14,190,000.00
received Ltd.
Hangzhou Steam Turbine Engineering Co.,
15,877,300.00 10,543,300.00
Ltd.
Greenesol power systems PVT Ltd. 432,983.80 103,764.63
Subtotal 30,500,283.80 24,837,064.63
Other account Hangzhou Steam Turbine Automobile Sales
100,000.00 100,000.00
payable Service Co., Ltd
HSTG 958,640.46 87,736.60
Subtotal 1,058,640.46 187,736.60
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
Not applicable
2. The Stock payment settled by equity
Not applicable
3. The Stock payment settled by cash
Not applicable
4. Modification and termination of the stock payment
Not applicable
5.Other
XIV. Commitments
1.Significant commitments
Nil
2. Contingency
The Company have no significant contingency to disclose, also should be stated
3.Other: Nil
XV. Events after balance sheet date
Nil
XVI. Other significant events
1. The accounting errors correction in previous period
Nil
2. Debt restructuring
Nil
3. Replacement of assets
Nil
4. Pension plan
Nil
5. Discontinuing operation
Nil
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
Nil
(2) The financial information of reportable segment
Nil
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
The Company is single in its business, which is mainly for production and sales of steam turbines, gas turbines
and auxiliary turbines. The company’s management regard these businesses as a whole to implement management
so as to evaluate the business performance, thus there will be no report divisions. According to the product
classifications of main business income and main business cost, the Company will make details for them as
follows:
Items Main Business Income Main Business Cost
Industrial Steam Turbine 1,465,469,922.92 1,047,420,373.19
Castings and Forging 84,257,416.72 66,391,765.42
Auxiliary Engines 78,122,117.16 67,840,098.87
Complete set of waste heat power
49,244,940.88 47,384,746.06
station
Part 135,179,927.39 70,470,421.94
Other 107,907,377.96 66,896,995.78
Subtotal 1,920,181,703.03 1,366,404,401.26
(4) Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Book value Proportion Proportion Book value
Amount Amount Amount Amount
% % % %
Accrual of bad debt
provision by single 29,819,607.69 1.26% 29,819,607.69 100.00% 29,819,607.69 1.34% 29,819,607.69 100.00%
item
Including
Accrual of bad debt
provision by 2,331,855,629.80 98.74% 813,075,866.69 34.87% 1,518,779,763.11 2,189,901,288.35 98.66% 815,273,077.90 37.23% 1,374,628,210.45
portfolio
Including：
Total 2,361,675,237.49 100.00% 842,895,474.38 35.69% 1,518,779,763.11 2,219,720,896.04 100.00% 845,092,685.59 38.07% 1,374,628,210.45
Accrual of bad debt provision by single item: 29,819,607.69
In RMB
End of term
Name
Book balance Bad debt provision Proportion Reason
Accounts receivable of individually 29,819,607.69 29,819,607.69 100.00%
withdrawing bad debt provision with
non-significant individual amount
Total 29,819,607.69 29,819,607.69 -- --
Accrual of bad debt provision by portfolio:
In RMB
End of term
Name
Book balance Bad debt provision Proportion
Account receivables provided bad
2,331,855,629.80 813,075,866.69 34.87%
debt provision in credit risk groups
Relevant information of the provision for bad debts will be disclosed with reference to the
disclosure method of other receivables if the provision for bad debts of bills receivable is accrued
according to the general model of expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging End of term
Within 1 year（Including 1 year） 715,406,019.57
1-2 years 416,495,994.31
2-3 years 169,671,066.85
Over 3 years 96,894,178.79
3-4 years 65,330,464.37
4-5 years 31,563,714.42
Over 5 years 0.00
Total 1,398,467,259.52
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Accrual of bad debt 29,819,607.69 29,819,607.69
provision by single
item
Total 815,273,077.90 -2,197,211.21 813,075,866.69
The significant actual write-off accounts receivable:
Of which the significant amount of the reversed or collected part during the reporting period
Nil
(3) The actual write-off accounts receivable
In RMB
Items Amount
Uncollectible amount 0.00
Total -- 2,392,634.79 -- -- --
（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Client 1 635,020,421.93 26.89 282,449,030.97
Client 2 240,631,511,27 10.19 163,538,638.03
Client 3 112,363,538.46 4.76 7,423,154.66
Client 4 66,736,640.63 2.83
Client 5 63,427,500.00 2.68 6,342,750.00
Subtotal 1,118,179,612.29 47.35 459,753,573.66
（5）Account receivable which terminate the recognition owning to the transfer of the financial
assets
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
2. Other account receivable
In RMB
Nature End of term Beginning of term
Dividend receivable 84,526,094.10 16,557,292.60
Other 4,571,138.46 3,427,467.46
Total 89,097,232.56 19,984,760.06
（1）Interest receivable ：Nil
（2）Dividend receivable
（1）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 84,526,094.10 16,557,292.60
Total 84,526,094.10 16,557,292.60
2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Hangzhou Bank 9,657,292.60 1-2 years Equity pledge
Hangzhou Bank 6,900,000.00 2-3 years Equity pledge
Total 16,557,292.60 -- -- --
3）Provision for bad debts
Not applicable
（3） Other accounts receivable
(1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 2,767,375.00 6,547,501.35
Provisional payment receivable 6,933,682.74 1,953,877.08
Petty cash 360,000.00 0.00
Other 108,827.71 325,106.75
Total 10,169,885.45 8,826,485.18
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1, 2019 5,399,017.72 5,399,017.72
Balance as at January 1, 2019
—— —— —— ——
in current
Current period accrual 199,729.27 199,729.27
Balance as at June 30,2019 5,598,746.99 5,598,746.99
Loss provision changes in current period, change in book balance with significant amount
Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 4,052,404.63
1-2 years 175,283.58
2-3 years 6,004.00
Over 3 years 5,936,193.24
3-4 years 979,251.00
4-5 years 745,026.90
Over 5 years 4,211,915.34
Total 10,169,885.45
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Other receivables with
provision for bad debts
5,399,017.72 199,729.27 5,598,746.99
based on credit risk
characteristics
Total 5,399,017.72 199,729.27 5,598,746.99
4) The actual write-off accounts receivable
(5) Top 5 of the closing balance of Other accounts receivable
In RMB
Account Percentage in total other
Name of the company Book balance Age Bad debt provision
property receivable %
Deposit in 3,710,320.94 36.48% 3,710,320.94
Shanghai Customs Waigaoqiao Office Over 5 years
custom
China Electric Power Complete Deposit in 1,105,395.00 10.87% 55,269.75
1 year
Equipment Co., Ltd. custom
Deposit in 800,000.00 7.87% 480,000.00
Guoxin Bidding Group Co., Ltd. 3 years
custom
Deposit in 800,000.00 7.87% 40,000.00
China Petroleum & Chemical
1 year
Corporation. Nanjing Bidding Center custom
Deposit in 500,000.00 4.92% 400,000.00
Jian Group Co., Ltd. 4years
custom
Total -- 6,915,715.94 -- 68.01% 4,685,590.69
（6）Account receivable involving government subsidies
Nil
（7）Other account receivable derecognized due to the transfer of financial assets
（8）Amount of transfer other account receivable and assets and liabilities formed by its
continuous involvement.
Other notes：
3. Long-term share equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment on
860,732,321.62 860,732,321.62 502,919,378.03 502,919,378.03
subsidiaries
Total 860,732,321.62 860,732,321.62 502,919,378.03 502,919,378.03
（1） Investments in subsidiaries
In RMB
Provided
current
Curren
term Impairment
Company Beginning of Increased this t term
End of term Impairme provision
invested in term period decrea
nt End of term
se
provisio
n
Turbine Company 20,000,000.00 20,000,000.00
Hangzhou Heavy
360,000,000.00 357,812,943.59 717,812,943.59
Industry
Hangzhou
Auxiliary Machine 46,286,513.41 46,286,513.41
Co.
Zhejiang Turbine
29,800,389.56 29,800,389.56
Packaged Co.
Zhongneng Co. 27,644,475.06 27,644,475.06
Machinery Co. 7,968,000.00 7,968,000.00
Casting Co. 11,220,000.00 11,220,000.00
Total 502,919,378.03 357,812,943.59 860,732,321.62
（2）Investments in associates and joint ventures
Nil
（3）Other notes
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main business 1,195,173,183.58 864,005,383.66 1,483,873,460.09 1,087,042,320.25
Other 6,260,548.65 4,687,385.77 6,865,424.39 5,383,386.09
Total 1,201,433,732.23 868,692,769.43 1,490,738,884.48 1,092,425,706.34
Whether implemented new revenue guidelines?
□ Yes √No
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income by Cost method 61,041,210.00 64,587,205.00
Investment income from disposal of Long-term equity investment
Investment gains from holding of sellable
1,320,462.15
financial assets
Investment income from disposal of available for sale financial
22,218,266.55
assets
Dividend income from other equity instrument investments
67,968,801.50
during the holding period
Investment income received from holding of held-to-maturity
investments during holding period
Investment income received from holding of available-for –sale
10,428,418.13
financial assets
Investment income arising from disposal of available-for-sale
financial assets
Investment income from the disposal of hold-to-maturity
investments
Investment income from the remaining equity recalculated by fair
value after losing control
Interest income earned by the debt investment during the holding
period
Interest income earned by other debt investments during the
holding period
Investment income from disposal of other debt investments
Investment income of financial products 22,630,167.78
Total 152,548,740.20 97,645,790.91
6.Other
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
In RMB
Items Amount Notes
Gains/losses from the disposal of non-current asset -498,756.38
Governmental subsidy calculated into current gains and loess（while closely
related with the normal business of the Company, excluding the fixed-amount
15,761,589.03
or fixed-proportion governmental subsidy according to the unified national
standard）
Gain/loss from debt reorganization -526,315.79
In addition to normal business with the company effective hedging related
business, holders of tradable financial assets, transactions and financial
liabilities arising from changes in fair value gains and losses, as well as the 27,696,303.67
disposal of trading of financial assets, trading financial liabilities and
available-for-sale financial assets gains return on investment
Other non-business income and expenditures other than the above -3,448,280.96
Less: Influenced amount of income tax 6,575,512.32
Amount of influence of minority interests 3,658,083.93
Total 28,750,943.32 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement
No.1 on information disclosure for Companies Offering their Securities to the
Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the
Explanatory Announcement No.1 on information Disclosure for Companies offering their
securities to the public-non-recurring Gains and losses which have been defined as recurring gains
and losses, it is necessary to explain the reason.
Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Weighted average ROE EPS（Yuan/share）
Profit as of reporting period
(%) EPS-basic EPS-diluted
Net profit attributable to common
2.62% 0.21 0.21
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
2.15% 0.17 0.17
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under
international and Chinese accounting standards
√ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas
and Chinese accounting standards
√ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas
accounting standards, for audit data adjusting differences had been foreign audited, should
indicate the name of the foreign institutions
4.Other
Nil
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 23, 2019
