Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2019-48
Hangzhou Steam Turbine Co., Ltd.
SEMIANNUAL REPORT 2019
（Stock Code：200771）
August 2019
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
I. Important Remarks, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
Chairman Mr. Zheng Bin, Chief Financial Officer Zhao Jiamao, and the Chief of Accounting Department Mr. Jin
Chan hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.
All of the directors attended the board meeting on which this report was examined.
Please refer to the prospects for the future development of the company in Section 4 for the risks in the
company's operations. The company's designated information disclosure media are: Shanghai Securities News
(Chinese), Securities Times (Chinese), Hong Kong Commercial Daily (English), http://www.cninfo.com.cn (In
English and Chinese), all information of the company is subject to the information published in the above selected
media. Investors are advised to pay attention to investment risks.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Table of Contents
I. Important Notice, Table of contents and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds
X. Financial Report
XI. Documents available for inspection
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Definition
Terms to be defined Defined as Definition
Company, the Company Defined as Hangzhou Steam Turbine Co., Ltd.
The Group, Hangqi Group Defined as Hangzhou Steam Turbine Power Group Co., Ltd.
The report period, In the report period Defined as January 1,2019-June 30,2019
Hangzhou Zhongneng Steam Turbine Power Co., Ltd. – the holding
Zhongneng Co. Defined as
subsidiary of the Company
Hangzhou Steam Turbine Casting Co., Ltd. – the holding subsidiary of the
Casting Co. Defined as
Company
Zhejiang Steam Turbine Packaged Technology Development Co., Ltd. –
Packaged Tech. Co. Defined as
the holding subsidiary of the Company
Hangzhou Steam Turbine Machinery Equipment Co., Ltd. - the holding
Machinery Co. Defined as
subsidiary of the Company
Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. - the holding
Auxiliary Machine Co. Defined as
subsidiary of the Company
Zhejiang Turbine Import & Export Co., Ltd. – the holding subsidiary of
Turbine Co. Defined as
the Company
Hangzhou Steam Turbine Heavy Industry Co., Ltd. - the holding
Heavy Industry Co. Defined as
subsidiary of the Company
The Board of Directors Defined as The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
The Supervisory Committee Defined as The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
The Shareholders’ Meeting Defined as The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
RMB, RMB0’000, RMB000’000’000 Defined as RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
MW Defined as Unit of power: 1000KW
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
II. Corporate Profile and Key Financial Indicators
I. Company Information
Stock ID Hangqilun B Stock Code 200771
Stock Exchange Listed Shenzhen Stock Exchange
Company Name in Chinese 杭州汽轮机股份有限公司
Short form of Company Name in Chinese 杭汽轮
Name in English(if any) HANGZHOU STEAM TURBINE CO.,LTD
Abbreviation in English(if any) HTC
Legal representative: Zheng Bin
II. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Wang Gang Wang Caihua
Address No. 357 Shiqiao Rd. Hangzhou No. 357 Shiqiao Rd. Hangzhou
Tel. 0571-85780198 0571-85780438
Fax. 0571-85780433 0571-85780433
Email. wg@htc.cn wangch@htc.cn
III. Other info.
1. Contacts
No change to the registered address, office address, postal code, official website, and email address of the Company.
For details please find the Annual Report 2018.
2. Information inquiry
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2018.
IV. Summary of Accounting Data and Financial Index
Are there any retrospective adjustment or restatement of financial information of previous year due to change of
accounting policies or correcting of accounting errors?
No
Increase/decrease
This report term Same period last year
(%)
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Turnover (yuan) 1,920,181,703.03 2,284,130,982.13 -15.93%
Net profit attributable to shareholders of the listed company
160,325,133.00 128,510,594.01 24.76%
(yuan)
Net profit attributable to the shareholders of the listed
131,574,189.68 89,470,726.72 47.06%
company and after deducting of non-recurring gain/loss(yuan)
Net Cash flow generated by business operation (yuan) -9,340,596.37 557,787,190.73 -101.67%
Basic earnings per share (Yuan/share) 0.21 0.17 23.53%
Diluted earnings per share (Yuan/share) 0.21 0.17 23.53%
Net income on asset, weighted 2.62% 2.18% 0.44%
As at the end of the As at the end of last
YoY+/-（%）
reporting period year
Gross assets (yuan) 12,064,555,379.75 11,569,169,903.81 4.28%
Shareholders’ equity attributable to shareholders of the listed
6,231,429,574.36 6,007,540,929.16 3.73%
company（yuan）
V. The differences between domestic and international accounting standards
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not existent
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not existent
VI. Non-recurring gain/loss items and amounts
In RMB
Items Amount Remarks
Non-current asset disposal gain/loss(including the write-off part for which assets impairment
-498,756.38
provision is made)
Governmental Subsidy accounted as current gain/loss, except for those subsidies at with amount or
15,761,589.03
quantity fixed by the national government and closely related to the Company’s business operation.
Debt restructuring profit or loss -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
27,696,303.67
and losses, as well as the disposal of trading of financial assets, trading financial liabilities and
available-for-sale financial assets gains return on investment
Other non-operating income and expenditure beside for the above items -3,448,280.96
Less: Influenced amount of income tax 6,575,512.32
Amount of influence of minority interests（After tax） 3,658,083.93
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
III. Outline of Company Business
I. Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
As the leading provider of turbo machinery equipment and relevant service in China, our company is mainly
famous for designing and producing rotating turbo machinery like industrial steam turbines and gas turbines. Our
company, one of the major companies drafting the industrial standard in Chinese domestic industry of industrial
steam turbine, has developed into the biggest base to research, develop and produce industrial steam turbines in
China and ranks first among industrial steam turbine producers in terms of the market occupancy. Holding the
principle “our products should be based on clients’ demands” as our business mode and characteristic, our
company designs and produces in accordance with every client’s personal demands so as to meet personalized
needs in engineering projects to the utmost. To realize the fast research and development of our products, our
company has adopted the advanced modular design technique and, on the other hand, introduces information
technique to assist the collaborative production to achieve the resource saving and flexible production. In addition,
our company also provides our clients with relevant service such as engineering programs, general engineering
contracting, operation and maintenance of our products as well as remote control and so on.
Industrial steam turbines use the steam featuring high temperature and high pressure as their working
medium so as to convert the thermal energy into mechanical energy to drive various industrial equipments through
the rotating steam turbines. As for different objects driven by industrial steam turbines, the steam turbines could
be divided into industrial driving steam turbines and industrial power-generation steam turbines. Mainly driving
rotating machines like compressors, air blowers, pumps and squeezers, industrial driving steam turbines, as the
core power part in numerous large-scale industrial equipments, are always introduced into some industries like oil
refining, chemical engineering, chemical fertilizer, building materials, metallurgy, electric power, light industry
and environmental production. The industrial power-generation steam turbines, mainly utilized to drive electric
generators and provide thermal energy, are mainly adopted in private stations, regional projects of combined heat
and power generation, power generation by recycling waste heat in industrial production, urban waster power
plants and gas-steam combined cycle power stations in various industrial sectors. The gas turbines produced by
our company are mainly used by metallurgical industry to recycle the waste heat from the blast furnace exhaust to
generate power.
In the gas turbine business, the Company has cooperated with Siemens on the advanced natural gas turbine
SGT-800 model-with features of high efficiency, high reliability and low emission, thus to enter the distributed
natural gas field. As the general whole-set maker of SGT-800 in China, the company has launched the gas turbine
business in respect of the project procurement and the integrated implementation. Hangzhou Steam Turbine has
the type selection ability for the distributed energy combined cycle project, has established a complete system of
supporting standard and material system, and it can complete the independent processing or matching work for the
equipment besides the gas turbine body. In the industrial fields including the cogeneration /combined cycle power
plant and the oil & gas project with distributed energy projects that adopt the small and medium gas turbines, the
Company not only can provide gas turbine equipment for customers, but also can provide customers with
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
complete sets of equipment for gas turbine power plant and the efficient integrated solutions. Especially, it can
provide customers with operational support services throughout the product life, and this service model is
conductive for the establishment of long-term business cooperation relationships between the company and its
customers.
As the major producer of industrial equipments in China during the report period, our company is mainly
benefited from the following factors in terms of the elements driving our business performance:
1. On the basis of market demands. The relevant market demands fluctuate differently due to various business
condition and investment cycles in different industrial fields. The company further made more specified positions
toward the market for the products, implemented the differentiated marketing strategy, and integrated the business
sectors and tapped into the potential. During the reporting period, the domestic oil refining and chemical
investment projects started at multiple points and drove the demand for related equipment manufacturing. The
company grasped the growth opportunities in the petrochemical sector, and formulated the flexible price strategies
for the fields of low-end and mid-end drive, ensured the market share and continuously consolidated and
strengthened the existing market advantages. Adhering to the "Go global" strategy, the Company continued to
expand the overseas markets, establish overseas offices and increase its market influence.
2. Innovation and further reform in difficult areas of product technology.
Our company continuously improves product technical performance and tackles hard issues in the scientific
researches of product structure, core parts, basic design, manufacturing technology, material technology, etc. In
addition, basing on clients’ demands, our company launches the study “The Demonstration and Application
Project for Packaging Technology of Steam Turbine” to push forward the intelligence of our products and the
development of the integration technology. Meantime, the company cooperated with universities, scientific
research institutes to build the technological exchange and cooperation platform.
3. Upgrading of industrial structure transformation.
The company jointed with Siemens to enter the distributed energy market and enhance the development and
utilization of natural gas distributed energy. In the industrial fields including the cogeneration /combined cycle
power plant and the oil & gas project with distributed energy projects that adopt the small and medium gas
turbines, the Company not only can provide gas turbine equipment for customers, but also can provide customers
with complete sets of equipment for gas turbine power plant and the efficient integrated solutions.
4. Brand and market position. The company’s products have a good reputation and extensive brand influence
in the domestic market, The company has maintained a leading market share in the domestic industrial drive. The
company's products have a high reputation and brand influence in the domestic market.
5.Cost controlling level. As domestic labor costs continue to rise and the price of industrial products continue to
decline, the product profitability is facing a severe test. In recent years, the company continuously improves the
level of costs controlling by improving the organizational structure, optimizing business processes, enhancing the
supply chain controlling, strengthening risk management, raising the efficiency of all the staff and so on.
6.Emphasis on quality engineering and services: promote the key project management, meticulously plan key
projects, implement dynamic quality supervision; attach importance to products’ after-sales service market,
integrate existing resources to increase after-sales service initiative, extend product value chain, and promote the
company’s transformation from manufacturing to service.
II. Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Mainly caused by the volatility in share price of Hangzhou Bank with the Company’s
Equity assets
investment and participation
Fixed assets No major changes
Intangible assets No major changes
Mainly caused by the new investment in the current period of the steam turbine Heavy
Construction in progress
industry project with the progress of the project
2. Main Conditions of Overseas Assets
Not applicable
III. Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. A complete technical innovation system was established. The Company has under its possession of national,
provincial, and municipal grade technical centers, a doctorial workstation, and an academician workstation. Close
co-operations were carried out with institutions and universities from throughout the country. As the main drafter
of national standard on industrial steam turbine, the Company has the newest technical trend under its close
observation. The Company is now providing nearly 600 different models of steam turbines to the customers and
hold the newest technical system covering the product lines up to 150 MW. Cooperating with SIEMENS in the
field of gas turbine, our company has been capable of selecting the model of the combined recycling project of
distributed energy. In addition, our company has also been able to finish the independent processing or supporting
work which doesn’t need to depend on the gas turbine machine.
Secondly ,The advantages of solutions. The modular design of industrial steam turbine and the production pattern
featuring parallelization production enable our company to give considerations to the cost, date of delivery and
clients’ demands in the process of production in accordance with clients’ personalized designs, thereby making our
company capable of advancing with the development trend of individual requirements. Our company has always
been devoting to the localization in terms of the gas turbine business so as to achieve the localized one-stop
service step by step including the sale, production, installation, debugging, operation, training and after-sale
service. Our company has always been striving to provide clients with the complete equipment of gas turbine
power station and the efficient total solutions.
Thirdly, the Company has established strategic co-operations with main customers in the country. Further
marketing approaches were carried on by involving itself in the customers’ value. A sound and steady image has
been set up in the domestic steam turbine market. In the global market, the Company has acquired multiple
important certifications and has established a primary global recognition.
Fourthly, the Company has its complete service providing system. The Company is not only capable to provide
onsite 24-hour service for the Company’s own products, but also accumulated rich experiences in technical
maintenance and reengineering of other manufacturers’ products.
Fifthly, the Company has cultivated a significant advantage in human resources. Great importance has been
attached to construction of work teams with collection of high-end workforce in the areas of research &
development, At the same time, our company values the cooperation with universities. “Zhejiang Technical
Association for Gas Turbines in Equipment Manufacturing Industry” was officially founded jointly by our
company and Zhejiang University and other scientific research institutions to build a new platform for integration
of production and research in terms of gas turbine technology. The Company has cultivated a significant
advantage in human resources. Great importance has been attached to construction of work teams with collection
of high-end workforce in the areas of research & development, designing, technique, testing, and quality control.
An excellent workforce provides a sound foundation to lift quality and services.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
IV. Performance Discussion and Analysis
1.General
During the reporting period, the company focused on the annual work policy of "cohesion strategy, overall
relocation, deepening management and rooted culture", increased technical investment, fight for market orders,
orderly promoted heavy industry construction, actively planned relocation preparations, promoted key
management work, and jointly created the core values of the enterprise. In the first half of 2019, the company
realized operating income of 1,920,181,703.03 yuan, total profit of 221,442,313.03 yuan and net profit of
184,666,913.74 yuan, of which net profit attributable to shareholders of listed companies was 160,325,133.00
yuan. Compared with the same period of last year, the operating income decreased by 15.93% year on year, total
profit increased by 15.13% year on year, net profit increased by 15.15% year on year, and net profit attributable to
shareholders of listed companies increased by 24.76% year on year.
1. Cohesion strategy
Under the guidance of the "13th Five-Year Plan" and the medium-term adjustment plan, the company has
made every effort to push forward the strategic landing. It strengthens investment and cooperation management,
studies and explores a new mode of cooperation in strategic suppliers. It pushes forward the construction of the
"service big data" platform and put it into trial operation on key projects, laying a good foundation for the
company to realize the transformation and upgrading of "manufacturing service".
2. Overall relocation
The company pushed forward the construction of major projects as planned and made full preparations for
the relocation. So far, the company's steam turbine power building has basically completed the renovation work
and is expected to be put into full use before the end of the year.
The steam turbine heavy industry construction project continues to advance. At present, the installation of
steel structures such as the assembly plant and the rotor plant has been basically completed, the construction of the
main building of the joint station has been completed, and the construction of boiler foundation, water treatment
equipment foundation and circulating water tank has been basically completed, which basically meets the
requirements for equipment mobilization and installation. As of the reporting period, the company has received a
total of 620,559,021.76 yuan in relocation compensation.
3. Innovation driven
During the reporting period, the company continued to promote the development and design of new products
and scientific research and technological research work, completing 4 new product development and 25 scientific
research and technological research projects. The main new products and research and development projects
completed include the development of NGS63/50 double-shaft high-speed back pressure turbine, the development
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
of 25MW 60HZ high-efficiency waste heat utilization turbine, the development of K5.6 axial and lower exhaust
cylinders, the development of GK3.6A high-efficiency water-cooled low-pressure stage group, etc. From January
to June 2019, the company applied for 6 invention patents, 3 utility model patents and 1 software copyright.
So far, Dalian Hengli Petrochemical, the world's largest industrial turbine with the largest power, has
successfully tested the steam turbine used to drive the cracking gas compressor in an ethylene plant with an annual
output of 1.5 million tons during the reporting period, which indicates that the design and manufacturing capacity
of the domestic industrial drive steam turbine of Hangzhou Steam Turbine has reached the world's top level, and
is also another major technological breakthrough in the localization of key equipment in the industrial plant of our
country. Meanwhile, the subcritical parameter steam turbine has been steadily progressing with the trial
production of the first set of new products, and the Qinghai central control solar Delingha photothermal project
has been running smoothly at full capacity, which further improves the company's product market
competitiveness.
During the reporting period, the company continued to carry out research on the company's intelligent
manufacturing and digital workshop, and continuously explored new technical solutions according to the
company's design and production characteristics, including design of equipment data collection, online testing,
logistics storage center, intelligent extension of after-sales service, etc. In order to meet the company's need to
transform and upgrade from manufacturing industry to manufacturing service industry and realize its strategic
vision of "becoming a world-class industrial driving service provider", the company has jointly established 5G
Intelligent Manufacturing Industrial Application Innovation Laboratory with China Mobile and Huawei, carried
out research and development on blade scanning detection and cylinder body blank shape scanning forming
projects, created an application demonstration of 5G discrete industrial intelligent manufacturing, and seized the
historic opportunity of a new round of industrial digital transformation. In order to integrate core technologies in
related fields of gas turbine machinery industry chain and drive the transformation and upgrading of high-end
equipment manufacturing industry in Zhejiang province, the company led 7 gas turbine industry chain related
enterprises to jointly invest in the establishment of Zhejiang Ranchuang Turbine Machinery Co., Ltd. and to build
a joint research platform for gas turbine manufacturing and upstream and downstream technologies.
4. Market consolidation
During the reporting period, affected by the policy adjustment of the national energy structure, the power
industry formed a market environment of excess capacity. In the face of weak international oil prices and a sharp
drop in orders in the coal chemical industry due to low investment, the company continued to consolidate the
advantages of the share of reactive power generation back-pressure units in Jiangsu, Zhejiang and Shandong,
smoothing the impact of the drop in coal chemical market demand on us.
During the reporting period, domestic oil refining investment continued to grow at a moderate rate, chemical
industry, especially the one million ton ethylene project, emerged in a concentrated way, the company
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
implemented a precise marketing strategy, using the company's product advantages to focus on consolidating the
market share in the petrochemical industry and obtaining orders for the key project of Gulei petrochemical
refining integration, which is of far-reaching significance for promoting the deep integration of cross-strait
petrochemical industries and promoting the peaceful development of the two straits. Meanwhile, around the
national "the belt and road initiative" strategy, the company should "go out and welcome in", focus on the overall
market situation, concentrate superior resources, and improve product technology and service level.
In the field of gas turbine, the company has been committed to becoming a full cycle service provider in the
field of gas turbine. The company continues to increase the breadth and depth of cooperation with Siemens, to
enhance the core competitiveness of gas turbine products according to market demand, and to further explore the
deep cooperation between the two parties in the fields of gas turbine manufacturing, research and development,
and after sales service, etc.
5. Deepening management
The company orderly pushes forward the landing of the annual "Top Ten Key Management Tasks". It
deepens the "lean production", formulates the Lean Production Management Measures, adjustS the lean
production organization structure, and carries out the production line lean team building, creative kung fu and
other lean on-site core basic work.
The company focuses on conducting special internal audit for the construction projects of steam turbine
heavy industry and steam turbine power building. It increases efforts in bidding for the disposal of waste materials
and standardize the cleaning of materials during the relocation of the company.
The company strengthens assessment management on personnel construction and training. It increases the
training of young cadres and reserve cadres, revises the assessment management methods for middle-level cadres,
and improves the cadre assessment mechanism. Meanwhile, the company pays attention to improving the
pertinence of personnel training, vigorously promotes the spirit of craftsmen, and trains outstanding national,
provincial and municipal craftsmen model workers; Optimizes the talent development environment and cultivates
professional skilled talents through various vocational skills competitions. It strengthens the cultivation of lean
talents, stimulates the innovative potential of talents, and make new contributions to the transformation and
upgrading of enterprises.
6. Rooted culture
During the reporting period, the company comprehensively promoted the corporate culture construction
project with the theme of "focus on power to secure the future", and established the company's mission: to drive
industrial civilization and sustainable China power, and the company's vision: to become a world-class industrial
drive service provider. And around the core enterprise values of "customer first, pioneering and innovative,
craftsman spirit, leading by example, team cooperation", the company continued to carry out corporate culture
creation activities, conduct in-depth analysis of corporate mission, vision and core values based on the company's
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
long-term development, and jointly explore the company's new culture in the new era.
2.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
This report period Same period last year YOY change（%） Cause change
Turnover 1,920,181,703.03 2,284,130,982.13 -15.93%
Operating cost 1,366,404,401.26 1,612,116,152.26 -15.24%
Sale expenses 86,895,939.32 77,008,302.22 12.84%
Administrative expenses 235,168,325.98 237,456,060.16 -0.96%
Mainly due to the increase in interest
Financial expenses -4,254,503.16 3,177.07 -134,012.79% income and the decrease in exchange losses
during the period
Income tax expenses 36,775,399.29 31,977,871.82 15.00%
R & D Investment 116,760,942.52 151,349,561.03 -22.85%
It is mainly due to the decrease in cash
Cash flow generated by
-9,340,596.37 557,787,190.73 -101.67% receipts of goods sold in the current period
business operation, net
compared with the same period last year.
It is mainly due to the increase in
Net cash flow generated redemption of financial products, the
682,424,067.27 -509,012,778.80 234.07%
by investment decrease in new purchases and the decrease
in total holdings.
Net cash flow generated It is mainly due to the increase in foreign
-248,157,520.13 -30,496,335.59 -713.73%
by financing dividends and the decrease in bank loans.
Net increasing of cash and
424,218,280.91 17,761,752.63 2,288.38% In combination with the above reasons
cash equivalents
It is mainly due to the year-on-year decrease
Taxes and surcharges 13,458,140.99 29,819,229.04 -54.87%
in VAT paid in the current period.
It is mainly due to the receipt of dividends
Investment income 99,460,322.66 37,144,607.44 167.77%
from Hangzhou Bank.
It is mainly due to the adjustment of the
reporting items of the new financial
Fair value changes income -1,474,755.34
standards that began to be implemented in
the current period.
It is mainly due to the return of the original
Impairment loss of assets 6,423,806.70 -43,111,352.82 114.90%
provision for impairment of assets resulted
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
from debt restructuring in the current period
and recovery of long-term accounts
receivable.
It is mainly due to the decrease in the
Non-operating income 744,839.16 4,189,726.48 -82.22% current supplier's liquidated damages and
quality compensation income.
It is mainly due to the increase in
Non-operating expenses 5,220,762.28 2,591,154.54 101.48% compensation expenditure in the current
period.
It is mainly due to the decrease of financial
Monetary funds 1,819,859,022.91 1,382,392,009.59 31.65% investment in the current period and the
receipt of compensation for demolition.
It is mainly due to the adjustment of the
Transactional financial reporting items of the new financial
578,769,000.00
assets standards that began to be implemented in
the current period.
It is mainly due to the announcement of
Dividend receivable 84,526,094.10 16,557,292.60 410.51%
dividends by Hangzhou Bank.
It is mainly due to the adjustment of the
reporting items of the new financial
Other current assets 65,115,936.29 1,188,747,955.74 -94.52%
standards that began to be implemented in
the current period.
It is mainly due to the adjustment of the
Available for sale of reporting items of the new financial
0.00 2,130,076,555.20 -100.00%
financial assets standards that began to be implemented in
the current period.
It is mainly due to the adjustment of the
Other equity Instrument reporting items of the new financial
2,264,720,465.98 0.00
investment standards that began to be implemented in
the current period.
It is mainly due to the adjustment of the
Other non-current reporting items of the new financial
131,881,883.86 0.00
Financial assets standards that began to be implemented in
the current period.
It is mainly due to the continuous
investment in the new factory construction
Construction in process 659,588,447.28 454,767,328.93 45.04%
project of heavy industry in the current
period.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
It is mainly due to the reduction of
Short-term borrowing 97,500,000.00 139,600,000.00 -30.16%
short-term loans in the current period.
It is mainly due to the reduction of unpaid
Tax payable 22,926,791.79 62,405,200.62 -63.26% VAT and enterprise income tax at the end of
the current period.
It is mainly due to the decrease in bank
loans in the current period and the
Interest payable 100,958.90 437,314.72 -76.91%
corresponding decrease in interest paid on
loans.
It is mainly due to the demolition
Long-term payable 785,666,859.28 474,876,451.26 65.45% compensation received in the current
period.
Significant changes in the profit structure or profit source of the Company during the reporting period
Nil
Main business composition
In RMB
Increase/decreas
Increase/decrease
Increase/decrease e of gross profit
Gross of business cost
of revenue in the rate over the
Turnover Operation cost profit over the same
same period of the same period of
rate(%) period of previous
previous year(%) the previous
year (%)
year (%)
On Industries
Boiler and power machine
1,728,016,908.35 1,233,115,640.06 28.64% -15.35% -12.58% -2.26%
manufacture
Nonferrous metal alloy
84,257,416.72 66,391,765.42 21.20% 26.98% 27.88% -0.55%
manufacture
Other 107,907,377.96 66,896,995.78 38.01% -38.86% -55.32% 22.84%
Subtotal 1,920,181,703.03 1,366,404,401.26 28.84% -15.93% -15.24% -0.58%
On Products
Industrial steam turbine 1,465,469,922.92 1,047,420,373.19 28.53% -16.57% -13.97% -2.16%
Casting products 84,257,416.72 66,391,765.42 21.20% 26.98% 27.88% -0.55%
Auxiliary machinery 78,122,117.16 67,840,098.87 13.16% -3.21% -3.29% 0.08%
Complete sets of waste
49,244,940.88 47,384,746.06 3.78% -8.72% 6.96% -14.10%
heat power stations
Part 135,179,927.39 70,470,421.94 47.87% -9.96% -10.28% 0.19%
Other 107,907,377.96 66,896,995.78 38.01% -38.86% -55.32% 22.84%
16
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Subtotal 1,920,181,703.03 1,366,404,401.26 28.84% -15.93% -15.24% -0.58%
District
Domestic 1,711,280,921.02 1,197,414,715.29 30.03% -21.93% -22.45% 0.47%
Overseas 208,900,782.01 168,989,685.97 19.11% 126.82% 148.04% -6.92%
Subtotal 1,920,181,703.03 1,366,404,401.26 28.84% -15.93% -15.24% -0.58%
3.Non-core business analysis
In RMB
Proportion
Sustainable
Amount in total Explanation of cause
(yes or no)
profit
Mainly due to the investment income of wealth management
Investment income 99,460,322.66 44.91%
products and dividends of Hangzhou Bank this year
Fair value changes It is mainly due to the change in fair value of the shares held in
-1,474,755.34 -0.67%
income the current period.
It is mainly due to the reversal of bad debts originally accrued for
Impairment of assets -6,423,806.70 -2.90%
current accounts receivable.
It is mainly due to the contract compensation paid by the supplier
Non-operating income 744,839.16 0.34%
received in the current period.
Non-operating expenses 5,220,762.28 2.36% It is mainly due to compensation and debt restructuring losses.
This is mainly due to the social security refund obtained in the
Other income 15,761,589.03 7.12%
current period.
IV. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of Reporting period End of same period of last year
As a As a Change in
Reason for
percentage percentage percentage(
Amount Amount significant change
of total of total %)
assets(%) assets(%)
Monetary fund 1,819,859,022.91 15.08% 1,230,803,798.79 10.83% 4.25%
Accounts receivable 2,060,368,351.36 17.08% 1,921,794,558.44 16.91% 0.17%
Inventories 2,222,781,933.26 18.42% 2,055,625,339.61 18.09% 0.33%
Long-term equity 10,261,439.29 0.09% 5,800,000.00 0.05% 0.04%
17
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
investment
Fixed assets 761,603,992.58 6.31% 540,574,836.70 4.76% 1.55%
Construction in
659,588,447.28 5.47% 400,143,683.78 3.52% 1.95%
process
Short-term-Borrowin
97,500,000.00 0.81% 140,000,000.00 1.23% -0.42%
g
Long-term borrowing 22,600,000.00 0.19% 122,800,000.00 1.08% -0.89%
18
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
2.Asset and Liabilities Measured by Fair Value
In RMB
Impairment
Profit/loss on fair value Cumulative fair value provided in
Purchased in this Sold in this reporting
Financial assets Opening balance changes in this changes charged to this Closing balance
reporting period period
reporting period equity Reporting
period
3.Available-for –sale
financial assets
1. Transactional financial
1,275,070,030.80 -1,474,755.34 0.00 0.00 1,173,060,608.40 1,736,005,000.00 710,650,883.86
assets
4．Other equity Instrument
2,011,876,524.40 252,843,941.58 1,873,766,425.98 2,264,720,465.98
investment
Subtotal of financial assets 3,286,946,555.20 251,369,186.24 1,873,766,425.98 0.00 1,173,060,608.40 1,736,005,000.00 2,975,371,349.84
Total of the above 3,286,946,555.20 251,369,186.24 1,873,766,425.98 0.00 1,173,060,608.40 1,736,005,000.00 2,975,371,349.84
Financial Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Significant changes in the measurement attributes of the main assets in this Reporting Period
No
3. Restricted asset rights as of the end of this Reporting Period
Items End of Book value Reason
Monetary fund 133,453,924.80 Utilized for issuing bank acceptance bill, L/C and L/G.
Note receivable 62,824,000.00 Utilized for issuing bank acceptance bill
19
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Fixed assets Utilized for pledging to obtain the bank loan and guaranteeing the investment
118,662,101.07
loan for China Development Funds
Invisible assets Utilized for pledging to obtain the bank loan and guaranteeing the investment
84,981,463.59
loan for China Development Funds
Construction in process 420,170,711.42 Utilized for guaranteeing the investment loan for China Development Funds
Dividend receivable 27,827,292.60 Utilized for guaranteeing the investment loan for China Development Funds
Other equity Instrument 375,516,399.00 Utilized for guaranteeing the investment loan for China Development Funds
investment
Total 1,223,435,892.48
V. Investment situation
1. General
Investments made in same period of last
Investments made in the reporting period +/- %
year
229,114,374.05 167,348,162.00 36.91%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
In RMB
Accrued Reasons for not
Accrued Actual
Turbine Anticip Realized Reaching the
Self-buil General equipment Investment Amount Capital Project Disclosure Disclosure
Project name heavy Yes ated Income up to Planned
date Index
t manufacturing up to the End of Source schedule
industry income the End of Schedule and
Reporting Period
Reporting Anticipated
20
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Period Income
Turbine heavy General equipment
Self-built Yes 201,437,083.52 683,969,135.36 Self 39.46% No
industry manufacturing
Total -- -- -- 201,437,083.52 683,969,135.36 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
Purcha
Mode of Sale
se Gain/loss
Stock accounti Book value balance at Changes in fair amount Book value balance at Sauce
Security Security Initial investment Cumulative fair value amoun of the Accounting
Abbreviatio ng the beginning of the value of the this in the the end of the reporting of the
category code cost changes in equity t in the reporting items
n: measure reporting period period this period shares
this period
ment period
period
Domesti
Other equity
c and Hangzhou Self
600926 390,954,040.00 FVM 2,011,876,524.40 252,843,941.58 1,873,766,425.98 2,264,720,465.98 Instrument
foreign Bank funds
investment
stocks
Domesti Financial
Debt
c and LUTIANHU 3,756, assets
000912 3,756,608.40 FVM 0.00 -1,474,755.34 2,281,853.06 instru
foreign A 608.40 available for
ment
stocks sale
3,756,
Total 394,710,648.40 -- 2,011,876,524.40 251,369,186.24 1,873,766,425.98 0.00 0.00 2,267,002,319.04 -- --
608.40
Disclosure Date of
Announcement on Securities
Investment Approved by the
Board of Directors
Disclosure Date of
21
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Announcement on Securities
Investment Approved by the
Shareholders Meeting(If any)
The Lutianhua shares held by the Company are obtained by debt-paying by the customer.
22
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
Not applicable
Ⅶ. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Leading
Company
Company Name products and Registered capital Total assets Net assets Operating Income Operating profit Net Profit
type
services
Trade of
Zhejiang Steam Turbine Packaged Subsidiarie
packaged 51,000,000.00 285,022,490.11 93,676,646.83 132,931,775.76 17,507,093.76 14,770,529.69
Technology Development Co., Ltd. s
equipment
Hangzhou Zhongneng Steam Turbine Power Subsidiarie
Manufacturing 92,500,000.00 1,141,670,374.64 323,261,297.51 434,209,306.91 25,091,401.15 17,020,437.04
Co., Ltd. s
Subsidiarie
Hangzhou Steam Turbine Casting Co., Ltd. Casting 29,500,000.00 517,297,871.18 239,359,212.84 201,953,546.36 -4,818,441.91 -4,923,525.49
s
23
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Hangzhou Steam Turbine Machinery & Subsidiarie
Manufacturing 30,000,000.00 279,213,048.59 140,961,770.15 134,372,561.91 44,513,298.05 31,959,387.07
Equipment Co., Ltd. s
Hangzhou Steam Turbine Auxiliary Machine Subsidiarie
Manufacturing 80,000,000.00 767,177,545.84 209,709,416.47 238,328,136.56 9,134,251.29 6,346,621.51
Co., Ltd. s
Subsidiarie Commerce &
Zhejiang Turbine Import & Export Co., Ltd. 20,000,000.00 220,674,703.32 50,481,849.46 58,411,432.33 -3,559.66 51,137.44
s trade
Hangzhou Steam Turbine Heavy Industry Co., Subsidiarie
Manufacturing 1,000,000,000.00 961,405,332.32 947,308,770.53 3,211,258.48 4,102,620.76 3,026,188.63
Ltd. s
Subsidiaries obtained or disposed in the reporting period
Not applicable
VIII．Structured vehicle controlled by the Company
Not applicable
24
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
IX. Prediction of business performance for January -September 2019
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
Not applicable
X. Risks facing the Company and countermeasures
1. Market risks
In view of distinct excess production capacity of domestic turbines, the market competition will be further
intensified, and the product distribution of the Company will be further impacted. Relying on technological
innovation, the company will actively highlight the core technology advantages, expand the marketing channels,
improve the product quality, enhance the end service capabilities, continuously increase the added-value of
products and vigorously tap into the potential demands to positively respond to the market and defuse the market
risks.
2. Contract execution risk
As the market volatility becomes more intensified, there are more frequent changes in the contract during the
execution of the contract for the company, and delays and suspensions of the project schedule happen from time to
time, which will have a large impact on the internal realization process of production of the company, and
meanwhile it also increases the cost of the company’s contract performance and the contract risk. The company
will further strengthen the connection between production and sales, improve the speed and level of the company's
response to the market, and well control the contract execution risk.
3. Accounts receivable risk
With the increasing risk in the business downturns and investment projects in some customers of the
downstream industry, the company's receivables recovery has more risk, and the average age of accounts tends to
increase, which will have a large impact on the company's operating results. The company will implement the
customer credit management, strengthen the contract signing and perform the risk control, increase the assessment
of accounts receivable, and reduce the adverse impact of overdue receivables.
4. Exchange rate risk
In 2019, the Sino-US trade friction was continuously upgraded. In 2019, the international markets remain
volatile.The expansion of the company's international procurement and international sales business will cause the
company's international balance of payments to be affected by exchange rate fluctuations, and there is a certain
risk of exchange loss. With the increase in the two-way volatility of the RMB exchange rate, the uncertainty of
foreign exchange gains and losses has been increased. The company will refer to the exchange rate volatility cycle
and adopt appropriate exchange rate risk management tools to minimize exchange loss.
5. The company's profitability decline risk
With the adjustment and changes in the market structure, the product structure of the Company in 2019 has
been changed compared with that in 2018. There is a risk that the Company's operating sales will decline in 2019
25
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
with fluctuation in the profitability of products at the same time. the Company will strive to improve the internal
management, reduce the operating costs and increase the operational efficiency to resolve the risk of declining
profitability.
6. Overseas market risk
During the "Thirteenth Five-Year Plan" period, the company will vigorously implement the "go global"
strategy, further expand overseas target markets, and increase the company's share and influence in the
international market. However, at present, the overseas target market is affected by geopolitical conflicts,
unpredictable changes of internal political and economic situation and trade barrier policies in the region, thus
there is great uncertainty in the implementation of overseas market strategies. The company will increase market
research efforts, actively demonstrate countermeasures, and explore the development path of business localization.
7. Operating environment change risk
The plant will be comprehensively relocated in 2019 for the Company with inevitable large impact and influence on
the manufacturing. Although the company will formulate the plans of relocation safety, security and emergency
countermeasures to avoid various issues arising from the equipment disassembly, cargo transportation and storage,
turnover and so on, the possibility of various types of personnel injuries, loss of goods and instability incidents
will still exist in the relocation process. Therefore, the company will ensure the smooth and orderly
implementation of all aspects of comprehensive security, safety production and logistical support in the relocation
and reconstruction process.
26
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Disclosure
Meeting Type participation Convened date Index to disclosed information
date
ratio
Resolutions of the first provisional
Provisional Shareholders’ general Meeting of 2019
First Provisional Shareholders’ Shareholder January January (Announcement No. 2019-08) released by
72.42%
general meeting of 2019 s’ general 29,2019 30,2019 Securities Times, Shanghai Securities Daily,
meeting Hong Kong Commercial Daily, and
Http://www.cninfo.com.cn
Resolutions of the Shareholders’ Annual
Annual
Meeting 2018 (Announcement No. 2019-41)
Shareholder May
2018 Shareholders’ general meeting 66.98% May 10,2019 released by Securities Times, Shanghai
s’ General 10,2019
Securities Daily, Hong Kong Commercial
Meeting
Daily, and Http://www.cninfo.com.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
Not existent
27
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
The semi-annual report was not audited.
V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
Not applicable
VII. Bankruptcy and restructuring
No such cases in the reporting period.
VIII. Lawsuit
Significant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other legal matters
Amount Litigation
Forming Date Index
involved Litigation (arbitration)
Basic conditions of litigation of the Litigation (arbitration) judgement of of
（Ten (arbitration) judgement
(arbitration) predicted result and influence disclos disclos
thousand progress execution
debt ure ure
yuan ） condition
On September 5, 2018, Henan According to the civil judgment of
Junhua Development Co., Ltd On May 22, the Intermediate People's Court of
(hereinafter referred to as Henan The Company has
2019, the Zhumadian City Henan Province
Junhua Company), on the ground of [No. 215 -(2018) Yu 17 Civil appealed to the
Intermediate
production equipment failure Action], it’s ruled that Xi'an Higher People's
People's Court
leading to production stoppage, Shangu Company and the Court of Henan
sued the equipment supply and of Zhumadian Company compensate Province,
shall and
3,220.25 No presently the case
service general contractor-China City Henan 32,202,504.572 yuan to Henan
General Mechanical Engineering Junhua Company within 15 days has not yet been
Province made a
Co., Ltd, the related equipment after the judgment came into notified of the trial
manufacturer Xi'an Shangu Power first-instance effect, with rejecting Henan time.
Co., Ltd (hereinafter referred to as civil judgment. Junhua Company’s other requests,
Xi'an Shangu Company) and the and for the case acceptance fee of
Company, claiming the equipment 272,800 yuan, Henan Junhua
28
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
manufacturer Xi'an Shangu Company shall bear 69,987 yuan
Company and the Company to and Xi'an Shangu Company and
jointly compensate the production the Company shall bear 202,813
equipment stoppage loss of 44 yuan, and Xi'an Shangu Company
million yuan and equipment and the Company shall bear the
repairing costs of 2.2 million yuan preservation fee of 5,000 yuan.
and other costs involved in the
litigation.
IX. Punishments and rectifications
Not existent
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
Not existent
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
Not existent
29
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
XII. Material related transactions
1. Related transactions in connection with daily operation
Whether
Principle Index of
Amount of Ratio in Trading limit over the Market price
Subjects of the of pricing informat
Type of Price of Way of of similar
Related parties Relationship related the related trade （ Ten similar approved（Ten approved Date of disclosure ion
trade trade payment trade
transactions transaction disclosur
available
s thousand） trades thousand） limited or e
not (Y/N)
Hangzhou Hangfa
Power Generating Affiliate of the Purchase of Fair and Market Bank Not
Generators 8,097.96 17,672.41 No January 30,2019 2019-08
Equipment Co., Group goods just price
Ltd. transfer applicable
Related
Hangzhou Steam transactions
Turbine Affiliate of the freight, repairing Fair and Market Bank Not
Automobile Sales Group to procure fee just price 3,044.35 4,556.00 No January 30,2019 2019-08
Service Co., Ltd. transfer applicable
goods /
services
Total -- -- 11,142.31 -- 22,228.41 -- -- -- --
Details of any sales return of a large amount No
Give the actual situation in the report period where a forecast had
been made for the total amounts of routine related-party No
transactions by type to occur in the current period(if any)
Reason for any significant difference between the transaction price
No
and the market refernce price (if applicable)
30
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
2. Related-party transactions arising from asset acquisition or sold
No such cases in the reporting period.
3. Related-party transitions with joint investments
For details, See 5, “other significant related transactions”.
31
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
4. Debts and credits with related parties
Nil
5. Other material related transactions
1.The company and Hangzhou Steam Turbine Power Group Co., Ltd. and Shanghai Relian Steel Trading Co., Ltd.
jointly invested Hangzhou Juyuan Asset Management Co., Ltd., signed the "Jianyuan Xinxing No.9 Private Equity
Fund" fund contract, and used its own funds to subscribe the fund-share of Jianyuan Xinxing No.9 Private Equity
Fund.
The website to disclose the interim announcements on significant related-party transactions
1. In order to develop, drive and guide the development of core technologies in the relevant fields of the gas
turbine machinery industry chain, and promote the transformation and upgrading of high-end equipment
manufacturing industry in Zhejiang Province, the Company and Hangzhou Steam Turbine Power Group Co., Ltd. ,
Hunan Chongde Industrial Technology Co., Ltd., Hengfeng Tools Co., Ltd., Mechanical Science Research
Institute Zhejiang Branch Co., Ltd., Hangzhou Bohua Laser Technology Co., Ltd and Zhejiang Hengying Power
Technology Co., Ltd initiated the establishment of Zhejiang Ranchuang Turbine Machinery Co., Ltd.
Date of disclosing Description of the website for
Description of provisional announcement
provisional announcement disclosing provisional announcements
Announcement on Joint External Investment and Related www.cninfo.com.cn) （ Announcement
February 26,2019
Transactions with Related Parties No.:2019-11）
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
No such cases in the reporting period.
（2）Contracting
No such cases in the reporting period.
32
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
（3）Leasing
No such cases in the reporting period.
2.Significant guarantees
（1）Guarantees
Ten thousand yuan
External Guarantee (Exclude controlled subsidiaries)
Com Guarant
Relevant plete ee
Date of
disclosure Amount impl for
happening Actual
date/No. of of eme associate
Name of the Company (Date of mount of Guarantee type Guarantee term
the Guarant ntati d
signing guarantee
guaranteed ee on parties
agreement)
amount or (Yes or
not no)
Two years from
Hangzhou Steam Turbine December the date of
October 22,2016 20,800 20,800 Mortgage No Yes
Power Group Co., Ltd 28,2016 expiration of the
principal debt
Total amount of outward guarantee
Total amount of outward guarantee approved
0 actually incurred in the report period 0
in the report period（A1）
（A2）
Total balance of actual
Total of external guarantee
20,800 external guarantee at 20,800
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure Amount
Name of the happening Actual implemen for
date/No. of of Guarantee
Company (Date o mount of Guarantee term tation associated
the guarante type
guaranteed signing guarantee or parties
guaranteed e
agreement) not (Yes or no)
amount
Two years
Hangzhou Steam The joint from the date
Turbine Casting May 18,2019 2,000 June 13,2019 1,050 liability of expiration of No No
Co., Ltd. guaranty the principal
debt
Hangzhou Steam The joint Two years
Turbine Casting May 18,2019 3,000 June 21,2019 820 liability from the date No No
Co., Ltd. guaranty of expiration of
33
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
the principal
debt
Total of actual guarantee
Total of guarantee for subsidiaries
5,000 for subsidiaries in the 1,870
approved in the Period (B1)
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
5,000 for subsidiaries at 1,870
approved at Period-end (B3)
Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implemen for
date/No. of Guarantee Guarantee
Company of (Date o mount of tation associated
the type term
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Two years
Hangzhou Guoneng The joint from the date
June
Steam Turbine 10,000 June 20,2019 1,778.61 liability of expiration No No
25,2019
Engineering Co., Ltd. guaranty of the
principal debt
Total amount of guarantee to
Total guarantee quota to the
the subsidiaries actually
subsidiaries approved in the reporting 10,000 1,778.61
incurred in the reporting
period (C1)
period (C2)
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries at
subsidiaries approved at the end of 10,000 1,778.61
the end of the reporting period
the reporting period (C3)
(C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
15,000 3,648.61
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
35,800 Period-end 24,448.61
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net
3.92%
assets of the company(A4+B4+C4)
Including ：
Amount of guarantee for shareholders, actual controller and its
20,800
associated parties（D）
The debts guarantee amount provided for the
10,000
Guaranteed parties whose assets-liability ratio exceed
34
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the company
0
exceed 50%（F）
Total guarantee Amount of the abovementioned guarantees（D+E+F） 30,800
Explanations on possibly bearing joint and several liquidating
Nil
responsibilities for undue guarantees ( If any)
Explanations on external guarantee against regulated procedures(If
Nil
any)
Description of the guarantee with complex method
Hangzhou Heavy Machinery Co., Ltd, which is the company's subsidiary, had made an application of special
construction funds of 208 million to China Development Fund Co.,Ltd, and it has signed the four-party China
Development Fund Investment Contract with China Development Fund ,the company and Hangzhou Steam
Turbine Group Co.,Ltd. In order to ensure the performance of the "Investment contract" by Hangzhou steam
group, the company and the Heavy Machinery Co., Ltd provide guarantee for Hangzhou Steam Group in the
forms of pledge and mortgage. The contents is detailed in the Announcement on External Guarantee of Hangzhou
Steam Turbine Co., Ltd. announced on October 22, 2016 at the website designated by the Shenzhen Stock
Exchange (http // www.cninfo.com.cn). (Announcement No. 2016-75)
（2）Illegal providing of external guarantees
No illegal providing of external guarantees in the report period.
3. Other significant contracts
No such cases in the reporting period.
XV.Social responsibilities
1.Major environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
No
Neither the company nor its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department. The company has formulated and perfected the environmental management
systems and control procedures for various types of waste water, waste gas, waste slag, and noise in accordance
with relevant environmental laws and regulations and relevant standards promulgated by the national and local
governments. The company has imported ISO14001 environmental management system since 2006 and the
system has been operated effectively for more than ten years. Currently, the company has adopted the clean
production management and launched the clean production audits, which not only reduces consumption and
increases efficiency, but also reduces the pressure and cost of end-of-pipe management. In terms of environmental
greening, after years of meticulous maintenance, the company has become a garden-style enterprise.
The company's environmental management system has been in operation for many years, and it has been
strictly abiding by the relevant laws and regulations of the state and the principle of continuous improvement.
Each year, the company formulates the annual environmental protection goals and formulates the environmental
35
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
management plans. The company also has a complete and effective management system for waste water, waste
gas, waste residue and noise and other waste management. Over the years, there has been no incident of
environmental pollution and emissions exceeding the standard.
2.Implementation of the social responsibility of precise poverty relief
(1) Precision poverty alleviation planning
The company participates in the “Lianxiangjiecun” helping and supporting activities in Hangzhou, from
2017 to 2021 for 5 years, with an annual funding of RMB 150,000 to assist Zitong Township in Chun’an County.
XVI.Other material events
1. In order to meet the capital demand for the development of steam turbine heavy industry and promote the
construction of steam turbine heavy industry projects, the Company increased the capital of 462,731,965 yuan to
the Steam Turbine Heavy Machine. During the reporting period, the Steam Turbine Heavy Machine has increased
its capital and changed its registered capital to 1 billion yuan. .The complete report is available as Announcement
2019-34 with Securities Times, Shanghai Securities Daily, Hong Kong Commercial Daily and at
www.cninfo.com.cn dated April 27,2019.
2. The Company signed the “Compensation Agreement for the Relocation of Non-residential Houses on
State-owned Land” with Hangzhou Xiacheng Urban Construction Investment Development Group Co., Ltd.，2.
The Company will receive a compensation amount of RMB 1,299,324,850.00 for the completion of the relocation.
As of the reporting period, the Company has received the accumulated compensation of 620,559,021.76 yuan for
the relocation.The complete report is available as Announcement 2019-39 with Securities Times, Shanghai
Securities Daily, Hong Kong Commercial Daily and at www.cninfo.com.cn dated April 27,2019.
XVII. Material events of subsidiaries
1. The Company's holding subsidiary, the Casting & Forging Company, increased its capital and expanded shares
to introduce strategic investors, and completed the change of registered capital of industrial and commercial
registration during the reporting period.The complete report is available as Announcement 2019-07 with
Securities Times, Shanghai Securities Daily, Hong Kong Commercial Daily and at www.cninfo.com.cn dated
January 11,2019.
36
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitaliz
Share ation of
Bonus Subt
allotm common Other Quantity Proportion
shares otal
ent reserve
fund
I. Unlisted shares 479,824,800 63.64% 0 0 0 0 0 479,824,800 63.64%
1. Founder's stock 479,824,800 63.64% 0 0 0 0 0 479,824,800 63.64%
Including：State-owned shares 479,824,800 63.64% 0 0 0 0 0 479,824,800 63.64%
Domestic Legal person shares 0 0.00% 0 0 0 0 0 0 0.00%
Overseas legal person shares 0 0.00% 0 0 0 0 0 0 0.00%
Other 0 0.00% 0 0 0 0 0 0 0.00%
2.Raising legal persons shares 0 0.00% 0 0 0 0 0 0 0.00%
3.Internal staff shares 0 0.00% 0 0 0 0 0 0 0.00%
4.Preferred shares and other 0 0.00% 0 0 0 0 0 0 0.00%
II.Non-restricted shares 274,185,600 36.36% 0 0 0 0 0 274,185,600 36.36%
1.RMB common shares 0 0.00% 0 0 0 0 0 0 0.00%
2.Domestically listed foreign
274,185,600 36.36% 0 0 0 0 0 274,185,600 36.36%
shares
3.Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4.Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total of capital shares 754,010,400 100.00% 0 0 0 0 0 754,010,400 100.00%
Causes of Change of shares
Not applicable
Approval of change of the shares
37
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Not applicable
Ownership transfer of share changes
Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
Total number of common shareholders at Total number of preferred shareholders that had restored the
13,723 0
the end of the reporting period voting right at the end of the reporting period (if any)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number or
share
Proporti
Number of Changes in Amount of Amount of pledged/froze
Shareholders Nature of on of
shares held at reporting restricted shares un-restricted n
shareholder shares
period -end period held shares held State
held（%） Amou
of
nt
share
Hangzhou Steam Turbine Power Group State-owned
legal person 63.64% 479,824,800 0 479,824,800 0
Co., Ltd.
VANGUARD TOTAL
Foreign legal
INTERNATIONAL STOCK INDEX 0.69% 5,203,236 1,704,190 0 5,203,236
person
FUND
VANGUARD EMERGING MARKETS Foreign legal
0.63% 4,722,804 0 0 4,722,804
STOCK INDEX FUND person
GUOTAI JUNAN Foreign legal 0.59% 4,479,485 1,786,122 0 4,479,485
38
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
SECURITIES(HONGKONG) person
LIMITED
Domestic
Zhou Jie 0.56% 4,200,000 0 0 4,200,000
Natural person
ISHARES CORE MSCI EMERGING Foreign legal
0.48% 3,654,159 -125,395 0 3,654,159
MARKETS ETF person
China Merchants Securities (HK)Co., State-owned
0.47% 3,549,104 229,663 0 3,549,104
Ltd. legal person
Foreign legal
NORGES BANK 0.33% 2,514,529 0 0 2,514,529
person
Domestic
Xia Zulin 0.31% 2,301,000 21,000 0 2,301,000
Natural person
Domestic
Wang Yihu 0.20% 1,488,524 47,200 0 1,488,524
Natural person
Particulars about strategic investors or general
corporations becoming among the top 10 shareholders Not applicable
due to share placing
(1) Hangzhou Steam Turbine Power Group Co., Ltd. is the holder of state-shares of the
Company, all other shareholders’ are holders of domestic listed foreign shares (B shares)
(2) There is no relationship between Hangzhou Steam Turbine Power Group Co., Ltd. and
Explanation on associated relationship among the other shareholders;
aforesaid shareholders (3) Hangzhou Steam Turbine Power Group Co., Ltd. is not an “action-in-concert” party
with any of other shareholders as described by the “Administration Rules of Informational
Disclosure about Change of Shareholding Statues of PLCs”.
Top 10 holders of shares without trading limited conditions
Amount of Category of shares
Name of the shareholder unconditional shares
Category of shares Amount
held at end of period
Foreign shares
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 5,203,236 placed in domestic 5,203,236
exchange
Foreign shares
VANGUARD EMERGING MARKETS STOCK INDEX FUND 4,722,804 placed in domestic 4,722,804
exchange
Foreign shares
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 4,479,485 placed in domestic 4,479,485
exchange
Foreign shares
Zhou Jie 4,200,000 placed in domestic 4,200,000
exchange
Foreign shares
ISHARES CORE MSCI EMERGING MARKETS ETF 3,654,159 placed in domestic 3,654,159
exchange
Foreign shares
China Merchants Securities(HK)Co., Ltd. 3,549,104 placed in domestic 3,549,104
exchange
39
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Foreign shares
NORGES BANK 2,514,529 placed in domestic 2,514,529
exchange
Foreign shares
Xia Zulin 2,301,000 placed in domestic 2,301,000
exchange
Foreign shares
Wang Yihu 1,488,524 placed in domestic 1,488,524
exchange
Foreign shares
Haitong International Securities Company Limited-Account Client 1,378,796 placed in domestic 1,378,796
exchange
1）It is unknown to the Company if there is any relationship
among the top 10 common share holders without restriction;
Explanation on associated relationship or consistent action among the top 10
(2) Hangzhou Steam Turbine Group Co., Ltd. is not an
shareholders of non-restricted negotiable shares and that between the top 10
action-in-concert” party with any of other shareholders as
shareholders of non-restricted negotiable shares and top 10 shareholders
described by the “Administration Rules of Informational
Disclosure about Change of Shareholding Statues of PLCs”.
Top ten ordinary shareholders conducting securities margin trading Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
There was no any change of the actual controller of the Company in the reporting period.
VII. Situation of the Preferred Shares
The Company had no preferred shares in the reporting period
40
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
VIII. Information about Directors, Supervisors and Senior Executives
I. Change of shareholding of directors, supervisors and senior executives
Share held by directors, supervisors and senior executive of the Company had no changes, more details can
be seen in annual report 2018.
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Recommended by Hangzhou Steam Turbine Power
Group Co., Ltd-the controlling shareholder, Ms. Li
Guiwen was nominated as a non-independent director of
Li Guiwen Director Elected January 29,2019 the Company's board of directors. After the Company
held the first provisional shareholders’ general meeting in
2019, she was elected as the non-independent director of
the seventh session board of directors of the Company.
41
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of the semi-annual report
No
42
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
X. Financial Report
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
43
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
44
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
45
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
46
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
47
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
48
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
49
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
50
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
51
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
52
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
53
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
54
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
55
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
56
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
57
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
58
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
59
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
60
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 Capital Comprehe Specialize Surplus Retained shareholders owners’
preferr 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
61
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
-193,189,9 345,824,33 152,634,3 68,232,844. 220,867,196
（1）Total comprehensive income
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
0.00 0.00
that carry forward
62
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
63
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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)
64
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
65
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
66
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
67
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
68
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
69
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 (%)
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
(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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
√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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 of the property after
House tax 1.2%,12%
deducting of 30%; 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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
(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
95
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 -- --
97
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
100
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
101
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
102
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
103
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
59,238,064.27 28,260,278.71
Input tax deductible
To verify the input tax 47,553.14
Prepaid income tax 4,992,881.54 2,804,366.47
104
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 incom equity announce ment
under
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
105
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
106
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
107
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
108
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
109
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
110
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
(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 Other
projects Construc
111
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
112
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
113
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
114
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
115
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
116
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
117
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
118
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
119
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
120
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 --
121
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
of cost
transferr Asset-related
Other income
New subsidy in ed to deducted Other or
Items Beginning of term recorded in the End of term
current period non-oper in the changes income-relate
ational current period d
current
income
period
Financial support
Related to
for industrial 230,240.00 0.00 28,780.00 201,460.00
assets
projects
Government subsidy
Related to
1,911,645.00 0.00 997,380.00 914,265.00
for casting project assets
Circular economy Related to
91,280.00 0.00 11,410.00 79,870.00
financial subsidy assets
Subsidy for
industrial upgrading Related to
160,000.00 0.00 160,000.00 0.00
by provincial assets
government
122
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
123
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
124
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
125
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
126
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
127
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
128
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
129
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
130
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
131
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 term 37,570,544.94 27,761,803.39
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
132
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
133
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 products 1,157,904,000.00 2,477,114,000.00
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
134
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
135
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 acceptance drafts
Monetary capital 133,453,924.80
and bill of guarantees
Note receivable 62,824,000.00 Used as security for issuing of 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 420,170,711.42 Used for mortgage to obtain bank loan and
136
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
137
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
post stabilization and 9,513.34 Other income 9,513.34
employment
Other incidental government
103,430.00 Other income 103,430.00
subsidies
Total 14,470,802.89 14,470,802.89
138
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
（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
139
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
6. Other :Nil
IX. Equities in Other Entities
(I) Equity in major subsidiaries
(1) The structure of the enterprise group
Name of the Main business Share proportion %
Reg. Add. Business property
subsidiaries location Way of obtain
Direct Indirect
Zhejiang Steam
Trubine Packaged Hangzhou Hangzhou
Zhejiang Zhejiang Commerce 70.86% Incorporation
Technologies
Development Co., Ltd.
Hangzhou Zhongneng
Steam Turbine Power Hangzhou Hangzhou
Manufacturing
Co., Ltd. Zhongneng 60.83% Incorporation
Zhejiang Zhejiang
Co.)
Hangzhou Steam
Hangzhou Hangzhou
Turbine Casting Co.,
Zhejiang Zhejiang Manufacturing 38.03% Incorporation
Ltd.
Hangzhou Steam
Hangzhou Hangzhou
Turbine Machinery Manufacturing
Zhejiang Zhejiang 52.00% Incorporation
Equipment Co., Ltd.
Hangzhou Steam
Turbine Auxiliary
Hangzhou Hangzhou
Machinery Co., Ltd.
Zhejiang Zhejiang Manufacturing 87.53% Incorporation
(Auxiliary Machinery
Co.)
140
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Zhejiang Turbine
Hangzhou Hangzhou
Import & Export Co., Commerce 100.00% Incorporation
Zhejiang Zhejiang
Ltd. (Turbine Co.)
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
Technologies 29.14% 4,304,870.88 2,972,790.00 27,302,058.72
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.,
141
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
142
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 Packaged
285,022,490.1 191,345,843.2 248,134,781.8 272,775,507.8 183,669,390 183,669,390.7
Technologies 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
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 107,914,924.1 767,177,545.8 557,468,129.3 642,467,713.4 110,484,194.2 752,951,907.6 549,240,066 549,346,996.2
659,262,621.68 557,361,199.37 106,930.00 106,930.00
Turbine Auxiliary 6 4 7 1 8 9 .20 0
143
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
Machinery Co.,
Ltd.
In RMB
Subsidiaries Amount of current period Amount of previous period
Name Cash flow for business Cash flow for business
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
Technologies
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 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
Machinery
144
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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.
145
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
(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.
146
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
148
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
149
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
company the Company (%) (%)
Hangzhou Steam
Hangzhou China Manufacturing 800 million yuan 63.64% 63.64%
Turbine Group
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
150
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
Related parties Current term Same period of last term
transactions
Steam Turbine,
Hangzhou Steam Turbine Engineering Co., Ltd. Compressor, Installation 3,209,482.76 45,627,247.27
service
Hangzhou Hangfa Generating Equipment Co., Cast parts
3,902,039.33 7,495,811.84
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.
151
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
Related party Content Current term Same period of last 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
152
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
153
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
154
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
155
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
156
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
157
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
158
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
withdrawing bad debt provision with
non-significant individual amount
Total 29,819,607.69 29,819,607.69 -- --
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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
161
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 Impairment
Company invested current term
Beginning of term Increased this period term End of term provision
in Impairment
decrease End of term
provision
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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 financial assets 1,320,462.15
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
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
XI. Documents available for inspection
168
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2019
(I) Financial Statements signed and sealed by the Chairman of the Board , chief accountant and director of
the financial division;
(II) All the originals of the Company’s documents and public notices disclosed in the newspapers
designated by China Securities Regulatory Commission in the report period;
(III) Original copy of Resolutions of the 35th Meeting of the 7th Term of Board.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 23, 2019
169
