Summary of 2022 Annual Report
Stock Code: 200771 Stock ID: Hangqilun B Announcement No.：2023-11
Hangzhou Steam Turbine Power Group Co., Ltd.
Summary of 2022 Annual Report
I. Important Notice
This Summary is based on the full Annual Report of the Company, In order for a full understanding of the
Company’s operating results, financial position and future development plans, investors should carefully read
the aforesaid full text on the media designated by the China Securities Regulatory Commission (the “CSRC”).
All of the directors attended the board meeting on which this report was examined.
Non-standard auditor’s opinion
□ Applicable √ Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed
to the Board during the reporting period.
√ Applicable □ Not applicable
Whether provident fund reserve for share capital
□ Yes √ No
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
In 2022, with the total share capital of 980,179,980 shares at the end of the year deducting 111,800 treasury
shares repurchased as of date of record by Company and 531,180 shares of share capital were cancelled due to
the retirement and resignation of equity incentive objects in December 2022, that is, 979,537,000 shares, the
Company would distribute cash dividend to all the shareholders at the rate of CNY 3.0 for every 10 shares (with
tax inclusive) , 2 bonus shares ，and no reserve would be converted into share capital.
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √ Not applicable
II. Basic information about the company
1. Company profile
Stock ID Hangqilun B Stock code 200771
Stock exchange for listing Shenzhen Stock Exchange
Modified stock ID (if any) Not applicable
Securities affairs
Contact person and contact manner Board secretary
Representative
Name Li Guiwen Li Xiaoyang
No.1188, Dongxin Road, No.1188, Dongxin Road,
Address Gongshu District, Gongshu District,
Hangzhou, Zhejiang Hangzhou, Zhejiang
Fax 0571-85780433 0571-85780433
Tel 0571-85780058 0571-85780438
Email. lgw@htc.cn lixiaoyang@htc.cn
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Summary of 2022 Annual Report
2.Major operations or products during the reporting period
During the reporting period, the Company's main business and operating model did not undergo
significant changes.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 cooperated with Siemens Energy on SGT -800, an advanced
natural gas turbine with high efficiency, high reliability and low emission, to enter the field of natural gas
distributed energy, with its models gradually expanded to SGT-300, SGT-700 and SGT-2000E. As the general
supplier of Siemens gas turbine in China, the company has carried out gas turbine business from two aspects of
project procurement and integrated implementation, and has the ability of selecting combined cycle projects for
distributed energy, has established the complete system supporting standards and material systems, and can
complete the independent processing and supporting work of equipment other than the gas turbine itself. In the
industrial fields including the cogeneration /combined cycle power plant and the oil & gas project with
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Summary of 2022 Annual Report
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. 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.
In 2022, the Company achieved an operating income of 5,518.8419 million yuan, a total profit of 707.93.1
6 million yuan, and a net profit of 522.2368 million yuan, of which the net profit attributable to shareholders of
the listed company was 379.9554million yuan. Compared with the same period of the previous year, the operati
ng income decreased by 4.66% YOY, the total profit decreased by 14.97% YOY, the net profit decreased by 19.
63% YOY, and the net profit attributable to shareholders of the listed company decreased by 11.25% YOY.
In the face of the decline in market demand, through the decomposition of goals layer by layer and the
joint efforts of all employees, the Company has achieved a very challenging annual business target. During the
reporting period, the Company further consolidated the market, steadily promoted business form transformation
and resource integration, accelerated innovative development and digital transformation, and strived to promote
high-quality development.
1. Consolidating the market
During the reporting period, in the face of the decline in market demand caused by the economic
slowdown, the "dual carbon" policy inhibiting the launch of large-scale projects, and the shrinking market
intensifying the competition situation in the industry, the Company continued to promote the key customer
management system, implemented lean marketing, and strived to achieve breakthroughs. In the field of
industrial drive, the Company has explored and integrated six core areas, covering seven national refining and
chemical bases, further achieved strategic binding with large customers, and successively achieved ideal results
in the new projects of Zhenhai Refining, Hengli New Materials, Ningbo CICC, Ningxia Baofeng and other
enterprises, of which Ningxia Baofeng coal-based new material project is the first large-scale coal chemical
project in China after the dual carbon policy, which has obtained a good demonstration effect for the subsequent
development of the coal chemical market. BASF's Zhanjiang Refining and Chemical Integrated Steam Turbine
Island Project EPC project has realized the whole process of EPC services, which is another important attempt
by the Company to explore the content of engineering services, and it’s of historic significance. In the field of
industrial power generation, the Zhejiang Xinzhonggang subcritical reheat back pressure heating project was
successfully put into operation, and the Company's advantages of forwardness of back-pressure units and its
market demonstration effect continued to appear. The undertaking of Shanghai Kangheng Hanchuan waste-to-
energy project marked that the Company has made new breakthroughs in the field of ultra-high-speed, double-
cylinder and double-speed, shaft-discharge waste-to-energy generation, which has benchmark significance in
the waste-to-energy and biomass power generation markets. In overseas markets, the feed pump sector
continued its good momentum and maintained a high winning rate in biding. In addition, the Company actively
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Summary of 2022 Annual Report
explored the overseas driving business in the Middle East market, deeply tapped the potential of the Eastern
European market, and actively participated in the competition of the new energy power generation market in
Southeast Asia.
2. Business form transformation
During the reporting period, the Company continued to promote the integration of resources related to the main
business of high-end manufacturing, and established a new energy company on the basis of the merger and
integration of the original group engineering company, The new energy company strives to build an engineering,
systematic and financial transformation platform, focuses on promoting the second phase of localization of
Siemens gas turbine SGT-800 and the localization of services, and completes the signing of the third bundle
contract with Siemens Energy; Negotiated the expansion of the cooperation model to the SGT-4000F class.thus
to build a platform for the Company to realize engineering, systematization and financial transformation. Taking
the construction of a 12MW distributed rooftop photovoltaic power station in the steam turbine manufacturing
base as a demonstration project, it actively promoted the new energy brand of Hangzhou Steam Turbine, deeply
explored the demand of customers in the petrochemical field for cogeneration of gas turbines and expanded the
Company's influence in subdivided industries. Plus, the Company has initially built a new energy gas turbine
service system based on strong technical support and effective quality management.
During the reporting period, the Company gradually promoted the cross-vergenceand integration of the
key customer management system and the large service framework. With the six pilot areas of the
corresponding key customer management system as the goal, it built a localized service team and formed a
localized service capability.It promoted the construction of the "dual framework" information system, initially
completed the collection of customer information and in-service unit information in the key customer
management pilot area, started the construction of the existing market customer demand system, and paved the
information channels for the realization of the key customer management system and large service framework.
Through organizational reshaping, the service function was extended to the front-end and to the back-end,
accelerating the construction of the "two-line team" and initially forming the service management capability of
the whole life cycle of the product. In the face of the characteristics of "large project, long cycle and many
crossovers" in the service business, the unit service responsibility contracting system was implemented, a new
performance appraisal model was created, and the awareness of active service, up-front service and
responsibility was strengthened, as well as the service efficiency and service value were improved.
3. Innovative development
During the reporting period, the Company took optimizing the efficiency of backpressure generator sets,
expanding the efficient utilization technology and application demonstration of low-quality energy, and promoting
the utilization of low-pressure and ultra-low-pressure waste heat steam as the research and development direction;
Relying on the development of key units to expand the subcritical market, it promoted the steam turbine assembly
2.0 into the stage of summary optimization and improvement. Focusing on product expansion, efficiency
improvement and process optimization, we carried out high-quality and multi-faceted scientific research to
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Summary of 2022 Annual Report
improve product economy and stability added value. 33 scientific research projects were accepted and completed.
The performance indicators of the "Zhenhai Refining and Chemical 1.2 million tons/year ethylene three-unit
development" project units have reached the international advanced level, and the "research and development of
small and medium-sized blade robot polishing system" has laid the foundation for the Company's comprehensive
promotion of polishing intelligent automation
During the reporting period, the Company promoted the development of independent gas turbines in multi
parallel directions and in a coordinated manner, overcoming the requirements of high-precision measurement in
production and manufacturing and breaking through multiple technical problems in manufacturing and
assembly processes under the mode of research and development, testing, manufacturing and verification.
Meanwhile, the Company orderly promoted the construction of project of annual output of 10 sets of gas turbine
units per year.
During the reporting period, the Company effectively integrated R&D resources, coordinated internal
technical strength, and reshaped the Hangzhou Steam Turbine scientific and technological innovation system
with high standards. Furthermore, it actively planned the scientific and technological projects and achievement
declaration, strived for external resources by multi-channel, and the "Low-quality Energy Efficient Utilization
Technology and Application" won the second prize of China Machinery Industry Science and Technology
Award; the "Key Technology and Application of Ultra-high-speed Industrial Turbine for Multiworking Syngas
Compressor Drive" won the first prize of Zhejiang Machinery Industry Science and Technology Award.
4.Digital guide
During the reporting period, the Company continued to deepen data thinking, realized the digitalization of
traditional business, and enabled the data to be the most core resource and asset of the Company. It completed a
total of 249 functional developments and 9integration testing tasks of major business scenarios in ERP projects,
cooperated with the ERP system to complete the transformation of MES, the quality platform, PMIS, OA and
other systems, and it completed more than 90 interface developments, and the ERP system was officially put
into operation on January 6, 2023.
During the reporting period, the Company continued to promote the construction of digital factories in
manufacturing bases and realized the expansion and optimization of MES system functions. It promoted the
construction of financial informatization in depth, and realized the effective management of the whole life cycle
of reimbursement and the integrated control of industry finance and taxation.
5. Manage promotion
During the reporting period, the Company adhered to the combination of lean concept and specific projects, and
the senior executives assumed leadership in four big lean projects, created a total of 12.4 million yuan of direct
economic benefits throughout the year; It actively adopted the initiative to improve the market-oriented
operation ability, managed the classification of suppliers, optimized the supplier reward and punishment system,
established a new model of quantitative selection of excellent suppliers, and continued to promote the
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Summary of 2022 Annual Report
improvement of supplier self-inspection capabilities; Combined with strategic development and market changes,
the Company continued to improve the effectiveness of system management, ensured the efficient operation of
the five major systems and the management system standards were implemented in place.
During the reporting period, the Company promoted the capital increase and share expansion of Zhongneng
Company and the equity repurchase and capital increase of Ranchuang Company, as well as supported the
corporate reform that was conducive to the development of subsidiaries; It continued to promote the
standardized operation of the listed company and effectively improved the Company's internal management
compliance; The first phase of the human resources improvement project had achieved initial results, and the
corporate culture was fully integrated with the work carriers such as party building publicity, lean production,
human resources, and groups.
3.Major accounting data and financial indicators
（1）Major accounting data and financial indicators for the last three years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□Yes No
In RMB
Changed over
End of 2022 End of 2021 End of 2020
last year（％
Gross assets（Yuan） 15,374,999,610.32 16,319,667,628.76 -5.81% 16,375,832,611.51
Net assets attributable to shareholders of
8,328,481,114.18 7,927,485,773.65 5.05% 8,163,905,778.62
the listed company（Yuan）
Changed over
2022 2021 last year 2020
（％）
Operating revenue（Yuan） 5,518,841,939.82 5,788,288,588.91 -4.66% 4,762,315,089.10
Net profit attributable to the shareholders
522,597,049.08 649,992,474.56 -19.73% 476,268,110.63
of the listed company（Yuan）
Net profit after deducting of non-
recurring gain/loss attributable to the 380,155,682.06 428,122,980.65 -11.15% 372,697,902.88
shareholders of listed company（Yuan）
Cash flow generated by business
324,140,805.63 71,809,489.02 350.42% 628,885,775.12
operation, net（Yuan）
Basic earning per share(Yuan/Share) 0.54 0.68 -20.59% 0.49
Diluted gains per share(Yuan/Share) 0.54 0.68 -20.59% 0.49
Net asset earning ratio（%） 6.47% 8.01% -1.55% 6.43%
（2） Main Financial Index by Quarters
In RMB
Second
First quarter Third quarter Fourth quarter
quarter
Operating revenue 1,788,987,236.29 1,286,993,097.29 1,204,092,736.67 1,238,768,869.57
Net profit attributable to the shareholders of
184,043,460.08 164,296,849.93 79,920,825.31 94,335,913.76
the listed company
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 138,956,828.84 131,810,741.42 62,952,498.88 46,435,612.92
listed company
Net Cash flow generated by business
-124,850,206.32 289,728,029.61 -80,686,363.23 239,949,345.57
operation
Any material difference between the financial indicators above or their summations and those which have been
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Summary of 2022 Annual Report
disclosed in quarterly or semi-annual reports?
□ Yes √ No
4.Share capital and shareholders
（1）Number of holders of ordinary shares and preference shares with restored voting right and Top
10 shareholders
In shares
Total number
of common Total shareholders Total
The total number of pr
shareholders at the end of the preferred shareholders at
eferred shareholders
at the end of 11,261 month from the 11,171 0 the end of the month from 0
the voting rights restored
date of disclosing the date of disclosing the
at period-end
reporting the annual report annual report
period
Shareholdings of Top 10 shareholders
Number or
Proport share
Number of Amount of pledged/fro
Shareholders ion of
Nature of shares shares held zen
shareholder at period - restricted A
held State
（%） end shares held m
of
ou
share
nt
State-owned
Hangzhou Steam Turbine Holdings Co., Ltd. 63.64% 623,772,240 623,772,240
legal person
Foreign legal
China Merchants Secutities(HK)Co., Ltd. 0.71% 6,966,378 0
person
Foreign legal
GUOTAIJUNAN SECURITIES（HONG KONG）LIMITED 0.67% 6,547,507 0
person
Domestic
Zhou Jie Natural 0.64% 6,302,300 0
person
VANGUARDTOTAL INTERNATIONAL STOCK INDEX Foreign legal
0.56% 5,482,009 0
FUND person
Foreign legal
ISHARESCORE MSCI EMERGING MARKETS ETF 0.54% 5,301,262 0
person
VANGUARDEMERGING MARKETS STOCK INDEX Foreign legal
0.52% 5,096,887 0
FUND person
Foreign legal
NORGESBANK 0.33% 3,268,888 0
person
Domestic
Xia Zulin Natural 0.32% 3,170,000 0
person
Domestic
Gu Yang Natural 0.21% 2,038,821 0
person
(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
Explanation on associated relationship among the Power Group Co., Ltd. and 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”.
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Summary of 2022 Annual Report
Notes to the shareholders involved in financing
Not applicable
securities (if any)
(2)Total preference shareholders and the shares held by the Top 10 Preference shareholders
□ Applicable √ Not applicable
The Company has no preferred shareholders during the reporting period.
(3)Block diagram of the ownership and control relations between the Company and the actual
controller
5.Bonds in existence as of the approval date of the annual report
□ Applicable √ Not applicable
III. Important Events
N/A
Hangzhou Steam Turbine Power Group Co., Ltd.
Chairman of the Board: Zheng Bin
March 29, 2023
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