2012 Interim Report of Wuhan Boiler Company Limited
WUHAN BOILER COMPANY LIMITED
2012 INTERIM REPORT
I. Important Notes
The Board of Directors, the Board of Supervisors as well as directors, supervisors and senior management of Wuhan Boiler Company
Limited (hereinafter referred to as “the Company”) hereby confirm that there are no misstatements, misleading statements or material
omissions in this Interim Report and will take individual and/or joint and several liabilities for the authenticity, accuracy and
completeness of this Interim Report.
Statement: All directors have attended the board meeting for reviewing this Interim Report and have no disagreement about this
Interim Report.
The Interim Financial Report of the Company has not been audited by a CPA firm.
Mr. YEUNG Kwok Wei Richard, Company Principal, Mr. Chin Wee Hua, Accounting Principle, and Mr. Li Yihao, the Accounting
Division’s Principal (Accounting Manager), hereby ensure that the Financial Report enclosed in this Interim Report is true and
complete.
II. Company Profile
（I）Basic information
）
A-share code B-share code 200770
A-share abbreviation B-share abbreviation *ST WUGUO-B
Stock exchange listed with Shenzhen Stock Exchange
Legal Chinese name of the
Company
司公限有份股炉锅汉武
Abbr. of the legal Chinese
name of the Company
份股锅武
Legal English name of the
WUHAN BOILER COMPANY LIMITED
Company
Abbr. of the legal English
WBC
name of the Company
Legal representative of the
YEUNG Kwok Wei Richard
Company
Registered address No.1, Liufangyuan Road, East Lake New Technology Development Zone, Wuhan, Hubei, P.R.C.
Postal code for the registered
430205
address
Office address No.1, Liufangyuan Road, East Lake New Technology Development Zone, Wuhan, Hubei, P.R.C.
Postal code for the office
430205
address
Internet website of the
http://www.wbcl.com.cn
Company
Email address cnwhu.wbc @ power.alstom.com
（II）Contact information
）
Board Secretary Securities Affairs Representative
Name Kevin QIN XU Youlan
No.1, Liufangyuan Road, East Lake New No.1, Liufangyuan Road, East Lake New
Contact address Technology Development Zone, Wuhan, Technology Development Zone, Wuhan,
Hubei Hubei
Tel. 027 81994266
） （ 027 81993700
） （
Fax 027 81994273
） （ 027 81993701
） （
E-mail kevin.qin@power.alstom.com youlan.xu@power.alstom.com
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2012 Interim Report of Wuhan Boiler Company Limited
（III）About information disclosure and where the interim report is placed
）
Newspapers designated by the Company for
Domestic: Securities Times; Overseas: Ta Kung Pao
information disclosure
Internet website designated by CSRC for
http://www.cninfo.com.cn
disclosing the interim report
Where the interim report is placed Securities Department of the Company
III. Summary of Major Accounting Data and Business Data
（I）Major accounting data and financial indexes
）
Any retrospective adjustment in previous financial statements?
□ Yes √ No
Major accounting data
Major accounting data Report period (Jan.-Jun.) Same period of last year Increase/decrease (%)
Gross revenue (RMB Yuan) 376,577,702.30 248,332,052.00 51.64%
Operating profit (RMB Yuan) 1,309,462.77 -123,996,189.42 101.06%
Total profit (RMB Yuan) 2,720,301.06 -123,936,456.89 102.19%
Net profit attributable to shareholders of
-24,383,589.49 -118,548,726.65 79.43%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after deducting non-recurring -25,794,427.78 -118,608,459.18 78.25%
gains and losses (RMB Yuan)
Net cash flow from operating activities
27,329,130.34 -132,879,861.93 120.57%
(RMB Yuan)
As at the end of this report
As at the end of last year Increase/decrease (%)
period
Total assets (RMB Yuan) 1,330,804,811.84 1,749,077,941.25 -23.91%
Owners’ equity attributable to shareholders
-1,173,261,971.36 -1,148,878,381.87 -2.12%
of the Company (RMB Yuan)
Share capital (share) 297,000,000.00 297,000,000.00 0.00%
Major financial indexes
Major financial indexes Report period (Jan.-Jun.) Same period of last year Increase/decrease (%)
Basic EPS (RMB Yuan/share) -0.08 -0.40 80%
Diluted EPS (RMB Yuan/share) -0.08 -0.40 80%
Basic EPS after deducting non-recurring
-0.09 -0.40 77.5%
gains and losses (RMB Yuan/share)
Fully diluted ROE % ） （ --- ---
Weighted average ROE %
） （ --- ---
Fully diluted ROE after deducting
--- ---
non-recurring gains and losses %
） （
Weighted average ROE after deducting
--- ---
non-recurring gains and losses %
） （
Net cash flow per share from operating
0.09 -0.45 120%
activities (RMB Yuan/share)
As at the end of this report
As at the end of last year Increase/decrease (%)
period
Net assets per share attributable to
shareholders of the Company (RMB -3.95 -3.87 -2.07%
Yuan/share)
Liability/asset ratio %
） （ 188.03% 165.55% 22.48%
Notes to major accounting data and financial indexes before the end of this report period (please make an adjustment note if there’s
any retrospective adjustment)
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2012 Interim Report of Wuhan Boiler Company Limited
Gross operating revenue increased 51.64% as compared to same period last year, mainly due to the increase in recognition from
overseas projects during the period;
Net cash flow from operating activities increased 120.57% as compared to same period last year, mainly due to increase in the cash
received from sales of goods;
Total assets decreased 23.91% as compared to closing balance of last year, mainly resulted from 97.95% of decrease in inventories.
The 97.95% decrease in inventories mainly due to the production progress of projects under execution is slower than the progress
billing which resulted in negative balance of construction contract assets.
（II）Accounting data differences under the domestic and overseas accounting standards
）
1. Net profit and net asset differences between financial reports disclosed according to the international and
Chinese accounting standards respectively
□Applicable √Inapplicable
2. Net profit and net asset differences between financial reports disclosed according to the overseas and
Chinese accounting standards respectively
□Applicable √Inapplicable
3. Specific items involving significant difference
Involved provisions of
Items involving significant
Amount (RMB Yuan) Reason for the difference international and/or overseas
difference
accounting standards
--
4. Notes to accounting data differences under the domestic and overseas accounting standards
No differences.
（III）Items of non-recurring gains and losses
）
√Applicable □Inapplicable
Items Amount (RMB Yuan) Note
Gains and losses on disposal of non-current assets 7,286.49
Tax rebate, reduction or exemption due to un-authorized
approval or the lack of formal approval documents
Government grants recognized in the current year, except
for those acquired in the ordinary course of business or
138,888.00
granted at certain quotas or amounts according to the
country’s unified standards
Capital occupation fees received from non-financial
enterprises that are included in current gains and losses
Gains generated when the investment costs of the
Company’s acquiring subsidiaries, associates and joint
ventures are less than the fair value of identifiable net assets
in the investees attributable to the Company in the
acquisition of the investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or
manage assets
Various asset impairment provisions due to force majeure
such as natural disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on
employee settlement and integration
Gains and losses on the parts exceeding the fair value when
prices of transactions obviously unfair
Net current gains and losses from the period-begin to the
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2012 Interim Report of Wuhan Boiler Company Limited
combination date of subsidiaries due to business merger
under the same control
Gains and losses on contingency which are irrelevant to the
normal operation of the Company
Gains and losses on fair value changes of transactional
financial assets and liabilities, and investment gains on
disposal of transactional financial assets and liabilities and
available-for-sale financial assets, except for the effective
hedging business related to the Company’s normal operation
Reversal of impairment provisions for accounts receivable
which are separately tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing
properties for which the fair value method is adopted for
subsequent measurement
Current gain and loss effect due to a just-for-once
adjustment to current gains and losses according to
requirements of taxation and accounting laws and
regulations
Custodian fee income from entrusted operations with the
Company
Other non-operating incomes and expenses besides the
1,853,384.46
items above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects -588,720.66
Income tax effects
Total 1,410,838.29 --
Explanation given by the Company to “other gain and loss items that meet the definition of non-recurring gains and losses” and when
it recognizes a non-recurring gain and loss item as a recurring one according to the nature and features of its ordinary business
Amount involved (RMB
Item Notes
Yuan)
Not applicable
IV. Changes in Share Capital and Particulars about Shareholders
（I）Changes in share capital
）
1. Statement of changes of shares
√Applicable □Inapplicable
Before the change Increase/decrease (+, -) After the change
Conversion
Issuance
Proportion Bonus of capital Proportion
Amount of new Others Subtotal Amount
(%) shares surplus to (%)
shares
shares
172,000,0 172,000,0
Ⅰ . Non-tradable shares 57.91% 57.91%
00 00
172,000,0 172,000,0
1. Sponsors’ shares 57.91% 57.91%
00 00
Including: shares held by
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2012 Interim Report of Wuhan Boiler Company Limited
the State
Shares held by domestic 20,530,00 20,530,00
6.91% 6.91%
corporations 0 0
Shares held by foreign 151,470,0 151,470,0
51% 51%
corporations 00 00
Others
2. Raised corporate shares
3. Employee shares
4. Preference shares or
others
125,000,0 125,000,0
Ⅱ . Tradable shares 42.09% 42.09%
00 00
1. RMB ordinary shares
2. Domestically listed 125,000,0 125,000,0
42.09% 42.09%
foreign shares 00 00
3. Overseas listed foreign
shares
4. Others
297,000,0 297,000,0
Ⅲ . Total shares 100% 100%
00 00
Approval of share changes (if applicable)
Not applicable
Transfers in share changes
Not applicable
Influence of share changes on the latest financial indexes such as EPS and net assets per share (if any)
Not applicable
Other contents that the Company thinks necessary or is asked by securities regulators to be disclosed
Not applicable
2. Changes of shares subject to trading moratorium
□Applicable √Inapplicable
（II）Issuance and listing of securities
）
1. Securities issuance in the previous three years
□Applicable √Inapplicable
2. Changes of the Company’s share and structure, as well as the corresponding changes in its asset-liability
structure
□Applicable √Inapplicable
3. Existing employee shares
□Applicable √Inapplicable
（III）Shareholders and actual controller
）
1. Total number of shareholders at the end of the report period
The Company had 9,073 shareholders in total at the end of the report period.
2. Shareholding of the top ten shareholders
√Applicable □Inapplicable
Particulars about shares held by the top ten shareholders
Nature of Shareholdin Number of Pledged or frozen shares
Name of shareholder (full name) Total shares held
shareholder g non-tradable Status of Number of
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2012 Interim Report of Wuhan Boiler Company Limited
percentage shares held shares shares
(%)
ALSTOM (CHINA)
Foreign
INVESTMENT COMPANY 51% 151,470,000 151,470,000
shareholder
LIMITED
WUHAN BOILER GROUP CO., State-owned
6.91% 20,530,000 20,530,000
LTD. shareholder
CHINA MERCHANTS
Other 0.48% 1,411,694 0
SECURITIES (HK) CO., LTD.
CHEN CHUYUN Other 0.46% 1,372,450 0
HSBC BROKING SECURITIES
Other 0.42% 1,234,114 0
(ASIA) LIMITED-CLIENTS A/C
WU ZHENFA Other 0.38% 1,138,028 0
ZHUANG CHANGXIONG Other 0.35% 1,035,000 0
TANG JUAN Other 0.3% 887,236 0
GUOTAI JUNAN
SECURITIES(HONGKONG) Other 0.29% 860,551 0
LIMITED
ZHUANG YAOHUA Other 0.28% 821,150 0
Among the top ten shareholders of the Company, Alstom (China) Investment Co., Ltd. (the first
Notes to particulars about principal shareholder of the Company) and Wuhan Boiler Group Co., Ltd. (the second principal
shareholders shareholder of the Company) hold non-tradable shares of the Company; the other eight
shareholders are public shareholders.
Particulars about shares held by the top ten shareholders holding tradable shares
√Applicable □Inapplicable
Number of tradable Type and number of shares
Name of shareholder shares held at the
Type Number
period-end
CHINA MERCHANTS SECURITIES (HK)
1,411,694 B-shares 1,411,694
CO., LTD.
CHEN CHUYUN 1,372,450 B-shares 1,372,450
HSBC BROKING SECURITIES (ASIA)
1,234,114 B-shares 1,234,114
LIMITED-CLIENTS A/C
WU ZHENFA 1,138,028 B-shares 1,138,028
ZHUANG CHANGXIONG 1,035,000 B-shares 1,035,000
TANG JUAN 887,236 B-shares 887,236
GUOTAI JUNAN SECURITIES(HONGKONG)
860,551 B-shares 860,551
LIMITED
ZHUANG YAOHUA 821,150 B-shares 821,150
LI SHUHUI 808,552 B-shares 808,552
ZHOU YONGYI 759,850 B-shares 759,850
Explanation on affiliated relationship among the abovementioned shareholders or/and persons acting in concert:
Among the top ten shareholders of the Company, no affiliated relationship exists between Alstom (China) Investment Co., Ltd. (the
first principal shareholder of the Company), Wuhan Boiler Group Co., Ltd. (the second principal shareholder of the Company) and
the other shareholders, and they are not persons acting in concert as defined in the Administrative Rules on Information Disclosure
about Changing of Shareholding Status. The Company is not aware of whether there is any affiliated relationship among the top ten
shareholders with tradable shares or whether there are persons acting in concert among them. The Company is not aware of whether
there is any affiliated relationship among the top ten shareholders and the top ten shareholders with tradable share.
A strategic investor or corporation becomes one of the top ten shareholders due to new share placement:
□Applicable √Inapplicable
3. Controlling shareholder and actual controller
1 Change of the controlling shareholder and actual controller
）））） （（（（
□Applicable √Inapplicable
2 Particulars about the controlling shareholder and actual controller
）））） （（（（
Is there a new actual controller?
□ Yes √ No
Name of the actual controller ALSTOM S.A.
Type of the actual controller Foreign investor
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2012 Interim Report of Wuhan Boiler Company Limited
Particulars:
ALSTOM S.A. is a company listed in France.
Chairman and CEO: Mr. Patrick KRON
Date of foundation: Nov. 17, 1992
Share capital: EUR 2,061,487,064 in total as at Dec. 31, 2011
Business scope: the conduct of transactions in France and abroad, notably in the following fields: energy, transmission and
distribution of energy, transport, industrial equipment, naval construction & repair work and engineering and consultancy, design
and/or production studies and general contracting associated with public or private works and construction; and all the activities
related or incidental to the above.
3 Illustration on the relationship between the Company and its actual controller
）））） （（（（
Bouygues FRANKLIN RESOURCES Other shareholders
30.75% 4.92% 64.33%
ALSTOM S.A.
(Listed in France)
100%
Alstom Holdings
100%
Alstom (China) Investment Co., Ltd
51%
Wuhan Boiler Company Limited
4 The actual controller controls the Company via trust or other ways of asset management.
）））） （（（（
□Applicable √Inapplicable
4. Other corporate shareholders with a shareholding over 10%
□Applicable √Inapplicable
（IV）Convertible corporate bonds
）
□Applicable √Inapplicable
V. Directors, Supervisors and Senior Management
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2012 Interim Report of Wuhan Boiler Company Limited
（I）Shareholding changes of directors, supervisors and senior management
）
Receives
Shareholding Shareholding Share payment
Shareholding Shareholding Including:
Beginning Ending date increase decrease options held from
at the at the restricted Reasons for
Name Position Gender Age date of office of office during this during this at the shareholder
period-begin period-end shares held change
term term report period report period period-end entities or
(share) (share) (share)
(share) (share) (share) other related
entities?
YEUNG
Kwok Wei Chairman Male 63 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- Yes
Richard
LIU Yi Director Female 43 Oct. 15, 2010 Jun. 5, 2012 0 0 0 0 0 0- Yes
Ian Andrew
Director Male 40 Jun. 5, 2012 Oct. 15, 2013 - Yes
Johnson
Dominique
Director Male 52 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- Yes
Pouliquen
Guy Chardon Director Male 63 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- Yes
XIONG
Director Male 55 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- Yes
Gang
XIANG
Director Male 59 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- Yes
Rongwei
SHEN Independent
Male 42 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- No
Weixing director
André Independent
Male 59 Oct. 15, 2010 Jun. 5, 2012 0 0 0 0 0 0- No
CHIENG director
TANG Independent
Male 48 Jun. 5, 2012 Oct. 15, 2013 - No
Guoping director
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2012 Interim Report of Wuhan Boiler Company Limited
YANG Independent
Male 52 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- No
Xiongsheng director
SHI Ziling Supervisor Male 49 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- Yes
SUN Tong Supervisor Female 42 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- Yes
PEI Hanhua Supervisor Male 53 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- No
Sept. 28,
Jay CHEN GM Male 50 Oct. 15, 2013 0 0 0 0 0 0- No
2011
Vice GM;
CHIN Wee
Finance Male 41 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- No
Hua
Director
Vice GM;
Kevin QIN Board Male 32 Oct. 15, 2010 Oct. 15, 2013 0 0 0 0 0 0- No
Secretary
Total -- -- -- -- -- -- --
Equity incentives granted to directors, supervisors and senior management during the report period
□Applicable √Inapplicable
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2012 Interim Report of Wuhan Boiler Company Limited
（II）Position-holding particulars
）
Position-holding in shareholders entities
√Applicable □Inapplicable
Name of the
Receives payment
person holding Position in the
Beginning date Ending date of from the
any position in Name of the shareholder entity shareholder
of office term office term shareholder
any shareholder entity
entity?
entity
President of
YEUNG Kwok Alstom (China) Investment Company
ALSTOM Jan. 15, 2009 Yes
Wei Richard Limited
Power China
Dominique Alstom (China) Investment Company Legal
Jan. 15, 2010 Yes
Pouliquen Limited representative
Vice President
Alstom (China) Investment Company
XIONG Gang of ALSTOM Sep. 1, 2010 Yes
Limited
Power China
Finance
Alstom (China) Investment Company Director for
SUN Tong Nov. 1, 2010 Yes
Limited Special
Projects China
XIANG
Wuhan Boiler Group Co., Ltd. Chairman Sep. 28, 2007 Yes
Rongwei
Notes to
position-holding The rest of the Company’s directors, supervisors or senior management do not hold any position in the
in shareholder controlling shareholder or other shareholders of the Company.
entities
Post-holding in other units
□Applicable √Inapplicable
（III）Remuneration for directors, supervisors and senior management
）
Decision-making
The decision-making procedure for the remuneration of the Company’s directors, supervisors and senior
procedure for the
management is pursuant to relevant provisions in the Company’s Articles of Association. The
remuneration of directors,
Shareholders’ Meeting decides the remuneration for directors and supervisors while the Board of
supervisors and senior
Directors decides the remuneration for senior management.
management
Basis for determining the
The remuneration of directors, supervisors and senior management is determined on the basis of the
remuneration of directors,
Remuneration & Incentive and Constraint Plan for Senior Management approved by the Shareholders’
supervisors and senior
Meeting.
management
Actual payment of the
remuneration of directors, The Company now has 15 directors, supervisors and senior management in total, 7 of which receive
supervisors and senior monthly payments from the Company according to the remuneration plan.
management
（IV）Change of directors, supervisors and senior management
）
Name Position Way of change Date of change Reason for change
Ian Andrew Elected through
Director Jun. 5, 2012 Supplementary director
Johnson cumulative votes
TANG Elected through
Independent director Jun. 5, 2012 Supplementary director
Guoping cumulative votes
Resigned from Due to her work arrangement, Ms. LIU Yi applied to
LIU Yi Director Jun. 5, 2012
Director resign from Director of the Board of Directors.
Resigned from Due to his work arrangement, Mr. André CHIENG
André
Independent director Independent Jun. 5, 2012 applied to resign from Independent Director of the Board
CHIENG
Director of Directors.
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2012 Interim Report of Wuhan Boiler Company Limited
（V）Employees
）
Number of on-job employees 2,003
Number of retired employees for whom the Company shall bear
0
expenses
Function structure
Type of function Number of personnel
Production personnel 1,045
Sales personnel 18
Technician 363
Financial personnel 26
Administration personnel 202
Level of education
Level of education Number of personnel
Undergraduate 385
3-year regular college graduate 470
Senior high school and lower 1,148
Notes to the employee particulars:
The Company now has 1,555 retired employees, whose pensions are covered by social security.
VI. Report of the Board of Directors
（I）Discussion and analysis by the management
）
1. Power industry development situation in this report period
According to statistics from the power industry, thermal power investment continued to decrease, with the new installed
power-generating capacity and new thermal power projects showing a considerable drop as compared with the same period of last
year. For Jan.-May 2012, the national new installed power-generating capacity was 18,310 MW, a decrease of 5,790 MW on a
year-on-year basis, among which the thermal installed capacity was 12,280 MW, a decrease of 3,790 MW over the same period of
last year. Meanwhile, as of the end of May 2012, on-going power supply projects in the country reached about 180,060 MW,
representing a decrease of 15,550 MW over the same period of last year, among which on-going thermal power projects amounted to
around 63,900 MW, decreasing 9,500 MW on a year-on-year basis.
2. Discussion and analysis about the Company’s operation in this report period
In this report period, the management and all employees of the Company made concerted efforts to implement the following 5
Priorities of 2012. (1) On the basis of completion of the technology transfer for 1000MW class Ultra-Supercritical pulverized coal
boiler, 600 MW class Supercritical pulverized coal boilers, 350 MW class Supercritical pulverized coal boiler technology
development and design, and the improvement of the technology for the 300MW class pulverized coal boilers, the Company is
actively bidding in domestic market to expand market share and improve market position; (2) With the supports from Alstom, the
Company will get more export orders for assemblies of boilers and deliver qualified products according to different quality standards.
The Company will focus on products quality control and delivery schedule management of overseas projects, such as Sostanj, Narva,
Manjung and etc. in order to improve its international competitiveness and consolidate the achievement of the technology transfer; (3)
The Company will startup boiler island engineering and project execution preparation for oversea projects, and improve research
ability of laboratory to pave the way for the Company’s business growth and future development; (4) The Company will optimize the
structure of production employees and nonproduction employees, provide more training to on-the-job employees, speed up new
technologies and new procedures adaption and improve labor productivity so as to satisfy various requirements of different quality
standards from different orders; (5) The Company will improve business operation management, strengthen project management and
supply chain management, continue with inventory control, cost control and cash flow management so as to complete orders with
good quality and timely delivery.
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2012 Interim Report of Wuhan Boiler Company Limited
In this report period, the main business scope of the Company didn’t change. The Company mainly develops, manufactures and sells
utility boilers, special boilers, desulfurization equipments, other pressure vessels and auxiliary equipments. During the report period,
the operating revenue of the Company recorded RMB 376, 577,702.30, increased 51.64% as compared to the same period last year;
operating profit was RMB 1,309,462.77, increased 101.06% over the same period last year; net profit attributable to the owners of
the Company registered RMB -24,383,589.49, increased 79.43% as compared to the same period last year.
During the report period, the operating loss incurred was mainly due to finance cost incurred by shareholders’ entrusted loan, the
postponement of domestic projects and domestic order intake lower than expectation.
Brief analysis on operating results and financial status in this report period Unit: RMB Yuan
Increase/decrease compared
Items Jan.-Jun., 2012 Jan.-Jun., 2011 with the same period last year
(%)
Operating revenue 376,577,702.30 248,332,052.00 51.64%
Operating profit 1,309,462.77 -123,996,189.42 101.06%
Net profit attributable to
-24,383,589.49 -118,548,726.65 79.43%
the owners of the
Company
Net increase in cash and
-1,347,952.08 -50,715.39 -2557.88%
cash equivalents
Note:
Operating revenue increased as compared to same period last year, mainly due to increase in revenue recognition from overseas
project during period;
Operating profit increased as compared to same period last year, mainly due to increase in project margin and decrease in impairment
loss;
Net profit increased as compared to same period last year, mainly due to increase in operating profit;
Net increase in cash and cash equivalents decreased as compared to same period last year, mainly due to increase in payment for
acquisition of fixed assets and repayment of shareholders’ entrusted loan.
Unit: RMB Yuan
Increase/decrease
Items Jun. 30, 2012 Dec. 31, 2011
(+, -) %
Total assets 1,330,804,811.84 1,749,077,941.25 -23.91%
Shareholders’ equity (not -2.12%
-1,173,261,971.36 -1,148,878,381.87
including the minority
equity)
Note:
Shareholders’ equity (not including the minority equity) decreased as compared to same period last year, mainly due to decrease in
net profit;
Is the Company’s actual business performance 20% lower or higher than any earning forecast or business plan for the report period
which has been publicly disclosed earlier?
□ Yes √ No
Analysis to the business and performances of the Company’s main subsidiaries and stock-participating companies:
1. Wuhan Lanxiang Energy & Environmental Protection Technologies Inc. (hereinafter referred to as “Lanxiang Company”) was
established on Jun. 4, 2002 with a registered capital of RMB 20 million, of which Wuhan Boiler Company Limited holds 95% equity.
The registration No. of Lanxiang Company is 420100000094025. And its business scope covers: R&D, design, consultation and
technology services related to boilers, energy & environmental protection products, steel structures, thermal energy-related products
and their auxiliary equipments; marketing of products developed; energy project (non-land construction projects) contracting and
12
2012 Interim Report of Wuhan Boiler Company Limited
technical service (special-purpose projects subject to governmental approval). In the report period, Lanxiang Company generated an
operation revenue of RMB 0 and a net profit reaching RMB -1,826,580.47.
2. On August 25, 2008, the Proposal on to Terminate and Liquidate Wuhan Boiler Boyu Industrial Co., Ltd. was reviewed and
approved by the 8th Meeting of the 4th Board of Directors of the Company. In May 2012, the Company completed the cancellation
formalities for Wuhan Boiler Boyu Industrial Co., Ltd., which was thus not included in the consolidated statements for this report
period.
All risk factors that might have adverse impact on the Company’s effort to realize its future development strategy and business goals:
In the first half year of 2012, the main problems the Company met in operation were financial costs resulted from entrustment loans
from shareholders, delay of domestic projects and lower-than-expected order intake in domestic markets.
In the second half year, the Company will continue to focus on the 5 Priorities decided at the beginning of 2012 and to solve
operation problems. Besides, the Company will give priority to manufacturing of overseas orders and tendering of domestic orders.
The Company will also strengthen internal management, strictly control the cost and strive to improve its profitability.
1. Main business and operation status
1 Main business classified by industries and products
）））） （（（（
Unit: RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
of operating of gross profit
of operating cost
Industries/product Operating Gross profit rate revenue rate compared
Operating cost compared with
s revenue (%) compared with with the same
the same period
the same period period last year
last year (%)
last year (%) (%)
Industries
Machinery
359,625,071.80 328,741,905.36 8.59% 55.97% 24.70% 22.92%
manufacturing
Products
Boilers 359,625,071.80 328,741,905.36 8.59% 55.97% 24.70% 22.92%
Explanation to the main business performances classified by industries and products:
Not applicable
Explanation to the reasons for any significant year-on-year change of the gross profit rate:
Not applicable
2 Main business classified by regions
）））） （（（（
Unit: RMB Yuan
Increase/decrease compared with the same
Region Operating revenue
period last year (%)
Domestic 90,248,828.49 -47.81%
Overseas 269,376,243.31 367.21%
Explanation to the main business performances classified by regions:
Not applicable
Explanation to the main business structure:
Not applicable
3 Reasons for significant changes in main business and its structure
）））） （（（（
□Applicable √Inapplicable
13
2012 Interim Report of Wuhan Boiler Company Limited
4 Reasons for significant changes in profitability of main business (gross profit rate) compared with that
）））） （（（（
in the last year
□Applicable √Inapplicable
5 Analysis on reasons of significant changes in profit breakdown compared with the last year
）））） （（（（
□Applicable √Inapplicable
6 Business nature, main products/services and net profit of joint ventures contributing over 10% to the
）））） （（（（
Company’s net profit
□ Applicable √ Inapplicable
7 Difficulties and problems encountered in operation
）））） （（（（
In the first half year of 2012, the main problems the Company faced in operation were financial costs resulted from entrustment loans
from shareholders, delay of domestic projects and lower-than-expected order intake in domestic markets.
2. Internal control rules in relation to fair value measurement
□Applicable √Inapplicable
3. Foreign-currency financial assets and liabilities held
□Applicable √Inapplicable
（II）Investments
）
1. General utilization of the raised funds
□Applicable √Inapplicable
2. Projects promised to be invested with raised funds
□Applicable √Inapplicable
3. Change of projects invested with raised funds
□Applicable √Inapplicable
4. Significant projects invested with non-raised funds
□Applicable √Inapplicable
（III）Revision of the Board of Directors’ business plan for the second half of the year
）
□Applicable √Inapplicable
（IV）Business performance estimate for Jan.-Sep. 2012
）
Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period from the beginning
of the year to the end of the next report period compared with the same period of last year, as well as the reasons
□Applicable √Inapplicable
14
2012 Interim Report of Wuhan Boiler Company Limited
（V）Explanation of the Board of Directors on “Non-standard Auditing Report” issued by the
）
CPA firm for the report period
□Applicable √Inapplicable
（VI）Explanation of the Board of Directors on changes and solutions of the issues involved in
）
the “Non-standard Auditing Report” issued by the CPA firm for last year
□Applicable √Inapplicable
（VII）State the discussion results of the Board of Directors on the reasons and influence of
）
the Company’s accounting policy and estimate alterations or significant accounting error
correction
□Applicable √Inapplicable
（VIII）Formulation and execution of the Company’s cash dividend policy
）
In order to further emphasize cash dividend distribution, make its cash dividend distribution in line with regulations and more
transparent, and improve rational return for shareholders, according to the Notice on Further Implementing Cash Dividend
Distribution of Listed Companies promulgated by CSRC, the Company convened the 11th Meeting of the 5th Board of Directors to
review the proposal for amending some dividend-related articles of the Company’s Articles of Association. The amendments are as
follows:
1. “Section 2 Profit Distribution” is added into Chapter VIII of the Company’s Articles of Association. The following article numbers
shall be adjusted accordingly.
2. Delete Article 209 and Article 210 in Articles of Association.
Article 209 in Articles of Association: When the Company’s Shareholders’ Meeting makes a resolution about the profit distribution
plan, the Board of Directors shall complete the distribution of dividends (or issuance of shares) within 2 months after that.
Article 210 in Articles of Association: The Company may distribute dividends in cash or in stocks. The dividends of the Company
shall be declared in RMB and paid in HKD. The exchange rate of RMB and HKD shall be in accordance with the average exchange
rate announced by the People’s Bank of China on the first working day following the day when the dividend resolution is made at the
Shareholders’ Meeting.
In order to provide reasonable investment returns for investors, the Company shall formulate and implement a stable and consistent
system of profit distribution, which shall not affect the Company’s continuous operation.
The profit distribution policy of the Company is as follows:
(1) Emphasis shall be placed on reasonable investment returns for investors in the Company’s profit distribution policy, which shall
maintain continuity and stability. The accumulative profit which has been distributed in cash in the recent three years shall not be less
than 30% of the average annual distributable profits achieved in the recent three years;
(2) The Company may distribute the interim dividend in cash or in stocks;
(3) For a profitable year, if the Board of Directors doesn’t put forward a preplan of cash profit distribution, the reasons for not
distributing profits and the use of the undistributed capital shall be disclosed in the Company’s periodical reports. And independent
directors shall express their independent opinions on this issue.
Newly-added “Section 2 Profit Distribution”:
Article 209 The profit distribution policy of the Company is as follows:
(1) The Company adopts an active profit distribution policy and attaches importance to rational investment return for investors. The
Company may distribute profit in cash, stocks, combination of cash and stocks or other ways allowed by laws and regulations. The
distributed profit shall not exceed the accumulative distributable profit and shall not harm the continuous operation ability of the
Company.
(2) The Company shall keep a consistent and steady profit distribution policy. For any consecutive three years, the accumulative
15
2012 Interim Report of Wuhan Boiler Company Limited
profit distributed by the Company in cash shall not be less than 30% of the average annual distributable profit achieved in the recent
three years.
(3) If the distributable profit achieved by the Company in a year is positive, and during the year there is no significant investment
plan or significant cash expenditure (excluding investments with raised funds), the Company shall conduct cash dividend distribution
for the year. If the Board of Directors doesn’t put forward a preplan of cash dividend distribution due to significant investment plan
and significant cash expenditure etc, the Board of Directors shall disclose in detail in the profit distribution preplan and the annual
report the reason for not conducting cash dividend distribution, as well as the use plan of the undistributed capital.
(4) If the Company is in good operation, under the pre-condition of making sure a rational share capital size and equity structure, the
Company may put forward a stock dividend distribution preplan.
(5) The Board of Directors may propose interim profit distribution according to the Company’s profit situation and capital needs.
(6) The Company shall formulate a three-year return for shareholders plan and review the plan at least once every three years.
(7) Where a shareholder occupies the Company’s capital against laws or regulations, the Company shall, in profit distribution, deduct
the occupied amount from the cash dividend distributable to the shareholder.
Article 210 The decision-making mechanism for the Company’s profit distribution policy is as follows:
(1) Every year, the Company’s Board of Directors puts forward the profit distribution preplan and the three-year return for
shareholders plan according to the Company’s Articles of Association and based on the Company’s profit condition, development
plan, return for shareholders, capital needs, social capital cost and external financing environment etc. Upon respective review and
approval of the Board of Directors and the Board of Supervisors, the profit distribution preplan and the three-year return for
shareholders plan shall be submitted to the Shareholders’ Meeting for review.
(2) When the Board of Directors reviews the profit distribution preplan and the three-year return for shareholders plan, these plans
shall be approved by more than half of all the directors. Independent directors shall issue their independent opinions on the profit
distribution preplan. The Company shall keep a detailed record of management suggestions, speaking points of directors, opinions of
independent directors and voting results when the Board of Directors reviews the profit distribution preplan. And the record shall be
kept properly as part of the Company’s files.
(3) When the Board of Supervisors reviews the profit distribution preplan and the three-year return for shareholders plan, these plans
shall be approved by more than half of all the supervisors. The Board of Supervisors supervises the execution and decision-making
procedures of the dividend policy and the return for shareholders plan.
(4) The dividend preplan and the three-year return for shareholders plan proposed by the Board of Directors shall be submitted to the
Shareholders’ Meeting for review. These plans shall be approved by more than half of the voting rights held by the shareholders
(including shareholder proxies) present at the Shareholders’ Meeting. The Company safeguards minority shareholders’ right to
participant in the Shareholders’ Meeting. The Board of Directors, independent directors and shareholders with certain qualifications
may solicit voting rights for the Shareholders’ Meeting from shareholders. For a profitable report period, if the Company doesn’t put
forward a cash dividend preplan, the Company shall provide an on-line voting platform for its shareholders besides the on-site
Shareholders’ Meeting.
(5) If the Company needs to adjust the dividend policy or the return for shareholders plan due to significant changes of the external
operation environment or its own situation, it shall, based on safeguarding shareholders’ interests, demonstrate and explain the
reasons in detail. And the Board of Directors shall submit the adjustment proposal to the Shareholders’ Meeting for approval.
(6) After the Shareholders’ Meeting makes a resolution on the profit distribution plan, the Board of Directors shall complete the
dividend/stock distribution within 2 months.
(7) Dividends of the Company are declared in RMB and paid in HKD. The exchange rate of RMB and HKD shall be in accordance
with the average exchange rate announced by the People’s Bank of China on the first working day following the day when the
dividend resolution is made at the Shareholders’ Meeting.
The aforesaid proposed amendments to the Company’s Articles of Association shall be submitted to the Shareholders’ Meeting for
approval. The Company’s accumulative undistributed profit has been negative for the recent consecutive years, which does not meet
16
2012 Interim Report of Wuhan Boiler Company Limited
the condition for cash dividend distribution, so no cash dividend distribution has been carried out in the recent few years.
（IX）Preplan for profit distribution or conversion of capital surplus to shares
）
□Applicable √Inapplicable
（X）The accumulative undistributed profit as at the end of 2011 is positive but the Company
）
has not put forward a cash dividend preplan.
□Applicable √Inapplicable
（XI）Formulation and execution of the insider registration and management rules
）
In accordance with the requirements of Shenzhen Stock Exchange, China Securities Regulatory Commission and Hubei Securities
Regulatory Bureau, the Company has built up the Insider Dealing Code, which defines the scope, reporting procedures, registration
& record management and confidential management of inside information, as well as liabilities claim for 2011 Annual Report
disclosure; standardizes the activities on investor relations, such as external reception and online road show, etc.. Besides, the
Company made strict management of insiders in accordance with the above code and relevant stipulations, and avoided the leak of
inside information and the occurrence of insider dealings.
During the report period, the Company has neither found leak of significant sensitive information from insiders, nor received any
investigation and rectification order issued by regulatory authorities for the above reasons. The Company recorded and submitted
relevant information in accordance with the Insider Dealing Code.
Does the Company investigate to find insiders trading the Company’s stock and its derivatives and claim their responsibilities?
□ Yes √ No
Have regulatory authorities impose any regulatory measure or administrative punishment on the Company and relevant personnel due
to the execution of the insider registration and management rules or their involvement in insider dealings?
□ Yes √No
（XII）Other matters that need to be disclosed
）
Up to Aug. 30, 2012, the Company has not carried out any equity incentive plan.
（ XIII ） The Company’s liabilities, credit changes and future cash arrangements for
debt-clearing (Only listed companies with convertible corporate bonds are required to fill the
table below.)
□Applicable √Inapplicable
VII. Significant Events
（I）Corporate governance
）
During the report period, according to the Company Law, the Securities Law, the Basic Norms for Internal Control of Enterprises
and other applicable laws and regulations, as well as the internal control planning by CSRC and CSRC Hubei Bureau and the
Company’s Work Plan for Implementation of Internal Control Standards, the Company continued to proactively and steadily push
forward the implementation of the internal control regulation system. It divided main tasks and responsibilities and straightened out
internal control items such as the organization structure, human resources, the corporate culture, capital activities and internal
17
2012 Interim Report of Wuhan Boiler Company Limited
information transmission. Meanwhile, it put in greater effort in examining and straightening its existing internal control rules, and
arranged, proactively revised and formulated internal control rules, with the purpose of laying a foundation for the implementation of
the internal control rules and the Company’s healthy and sustainable development. So far, the actual governance of the Company is
in line with CSRC regulatory documents in relation to corporate governance of listed companies.
（II）Execution of the plans for profit distribution, conversion of capital surplus to shares or
）
new share issuance which had been made in the previous period and were carried out in the
report period
□Applicable √Inapplicable
18
2012 Interim Report of Wuhan Boiler Company Limited
(III) Significant litigations and arbitrations
√ Applicable □ Inapplicable
Amount involved
Party to Trial result and Enforcement on
Basic situation of in the litigation Progress of the Disclosure date
Plaintiff Defendant undertake joint Type of litigation influence of the the judgment of Announcement
the litigation (arbitration) litigation of relevant
(Applicant) (Respondent) and several and arbitration litigation the litigation No.
(arbitration) (RMB Ten (arbitration) announcement
liability (arbitration) (arbitration)
thousand)
Wuhan Boiler Wuhan Boiler
Company Company
Limited, Limited,
Shandong Shandong
Weiqiao Weiqiao
Aluminum & Aluminum &
Electricity Co., Electricity Co.,
Ltd.), Binzhou Ltd., Binzhou Reaching
Gaoxin Gaoxin - - - Closed Win-win mediation March 29, 2012 2012-007
Aluminum & Aluminum & agreement
Electricity Co., Electricity Co.,
Ltd. (formerly Ltd. (formerly
known as known as
“Zouping Gaoxin “Zouping Gaoxin
Aluminum & Aluminum &
Electricity Co., Electricity Co.,
Ltd.”) Ltd.”)
Wuhan Boiler Wuhan Boiler
Company Company Reaching a
- - - Closed Win-win April 27, 2012 2012-018
Limited, GSE Limited, GSE reconciliation
China Limited China Limited
19
2012 Interim Report of Wuhan Boiler Company Limited
The significant litigations and arbitrations occurred after preparing the last annual report amounts to RMB 265.00 million.
The significant litigations and arbitrations included in the last annual report but not yet closed amounts to RMB 222.29 million.
The estimated liabilities occurred for the litigations and arbitrations amounts to RMB 0.
The detailed explanation on the significant litigations and arbitrations
1. The Announcement on Progress of Significant Litigations and Arbitrations of Wuhan Boiler Company Limited (Announcement No. 2012-007) was disclosed on March 29, 2012.
Main concerned parties:
Wuhan Boiler Company Limited (hereinafter referred to as “Wuhan Boiler”)
Shandong Weiqiao Aluminum & Electricity Co., Ltd. (hereinafter referred as “Weiqiao A&E”)
Binzhou Gaoxin Aluminum & Electricity Co., Ltd. (formerly known as “Zouping Gaoxin Aluminum & Electricity Co., Ltd.”) (hereinafter referred to as “Gaoxin A&E”)
Case briefing:
In July 2010, Wuhan Boiler received three summons from Binzhou Intermediate Court. Based on the reason that Wuhan Boiler failed to execute the contracts, Weiqiao A&E and Gaoxin A&E requested
the court to rule a contract breach of Wuhan Boiler, terminate the three boiler supply contracts and order Wuhan Boiler to return double deposits over RMB 70 million in total.
Since October 2010, based on the reasons that Weiqiao A&E and Gaoxin A&E defaulted on payments of the boiler supply contracts, Wuhan Boiler filed 5 lawsuits to Shandong Higher Court, requesting
Weiqiao A&E and Gaoxin A&E to pay for the 5 boiler supply contracts of RMB 135 million in total and the corresponding liquidated damages and interest. Information about the aforesaid 8 cases is as
follows:
Trial court Case No.
（ 2010 ） Bin-Zhong-Shang-Chu-Zi No. 23
Shandong Binzhou Intermediate Court （ 2010 ） Bin-Zhong-Shang-Chu-Zi No. 24
（ 2010 ） Bin-Zhong-Shang-Chu-Zi No. 25
2010
） （ Lu-Shang-Chu-Zi No. 8
2010
） （ Lu-Shang-Chu-Zi No. 13
Shandong High Court 2010
） （ Lu-Shang-Chu-Zi No. 14
2011
） （ Lu-Shang-Chu-Zi No. 3
2011
） （ Lu-Shang-Chu-Zi No. 12
The Company has disclosed the basic information about the 8 cases above on Securities Times and Ta Kung Pao since July 14, 2010, with Announcement No. being 2010 － 026, 2010 － 038, 2010 046,
－
2010 － 047, 2011 － 006, 2011 026, 2011 033 and 2011
－ － － 038.
20
2012 Interim Report of Wuhan Boiler Company Limited
Ruling or arbitration result:
Upon open trials by the courts, the concerned parties finally reached a mediation agreement. The courts sent the Civil Mediation Statement to the concerned parties, with the main contents as follows:
◆ The three concerned parties have agreed to terminate the three boiler supply contracts signed respectively in May 2006, February 2007 and June 2007.
◆ The three concerned parties have agreed that Weiqiao A&E and Gaoxin A&E should pay RMB 105,003,000 to Wuhan Boiler, of which RMB 52,501,500 should be paid within 15 days after the
mediation statement comes into effect and the remaining RMB52,501,500 should be paid monthly since April 2012 (RMB 5,833,500 per month).
◆ As part of the mediation, when signing the mediation statement, Shandong Weiqiao Pioneering Group Co., Ltd. (note: Weiqiao Pioneering Group and Weiqiao A&E have the same final actual
controller) and Binzhou Beihai New Materials Co., Ltd. signed a new contract with Wuhan Boiler to purchase 4 sub-critical pulverized coal boilers from Wuhan Boiler. The three concerned parties have
explicitly agreed that if Weiqiao Pioneering Group and Binzhou Beihai New Materials Co., Ltd. fail to execute the new contract, Weiqiao A&E and Gaoxin A&E shall pay RMB 40 million to Wuhan
Boiler due to its loss caused by the 5 contracts involved in lawsuits; and if Wuhan Boiler fails to execute the new contract, it shall pay RMB 40 million to Weiqiao A&E and Gaoxin A&E due to their
loss caused by the 5 contracts involved in lawsuits.
◆ Besides the aforesaid contract, the three concerned parties have also agreed to sign another supply contract of 4 boilers and they will discuss the specific contents of such contract within 6 months
after the mediation statement comes into effect.
◆ It has been decided that the three concerned parties shall bear their own lawsuit expenses. Except for the aforesaid terms, Weiqiao A&E, Gaoxin A&E and Wuhan Boiler shall not claim liquidated
damages, deposits or other losses against each other. No other disputes under the aforesaid 5 supply contracts involved in lawsuits.
2. The Announcement on Progress of Significant Litigations and Arbitrations of Wuhan Boiler Company Limited (Announcement No. 2012-018) was disclosed on April 27, 2012.
Main concerned parties:
Wuhan Boiler Company Limited (hereinafter referred to as “Wuhan Boiler”)
GSE China Limited (hereinafter referred to as “GSE”)
Case briefing:
In Jun. 2011, based on the reason that Wuhan Boiler defaulted on payments of the construction contracts, GSE filed an arbitration application to China International Economic and Trade Arbitration
Commission, requesting Wuhan Boiler to make the remaining payment and interest over RMB 30 million in total. In Aug. 2011, based on the reason that GSE subcontracted the construction in violation
of laws and violated other contractual stipulations, Wuhan Boiler filed a lawsuit to Wuhan Intermediate Court, requesting a payment return of RMB30 million from GSE.
The 2 cases above were disclosed by the Company on Securities Times and Ta Kung Pao on Jun. 30, 2011 and Aug. 12, 2011 respectively, with Announcement No. being 2011-023 and 2011-028
respectively.
Ruling or arbitration result:
Upon equal and friendly negotiation, the two parties reached an amicable settlement on the said two cases. Wuhan Boiler submitted a withdrawal application to Wuhan Intermediate Court and GSE
submitted a withdrawal application to China International Economic and Trade Arbitration Commission, both of which were approved. Now the said two cases were closed.
21
2012 Interim Report of Wuhan Boiler Company Limited
(IV) Bankruptcy reorganization events
□Applicable √Inapplicable
(V) Shareholding of other listed companies and financial enterprises
1. Securities investment
□Applicable √Inapplicable
Particulars about securities investment
2. Shareholding of other listed companies
□Applicable √Inapplicable
Particulars about shareholding of other listed companies
3. Shareholding of non-listed financial enterprises
□Applicable √Inapplicable
Particulars about shareholding of non-listed financial enterprises
4. Trading stocks of other listed companies
□Applicable √Inapplicable
Particulars about trading stocks of other listed companies
(VI) Assets transaction events
1. Purchase of assets
□Applicable √Inapplicable
Particulars about purchase of assets
2. Sale of assets
□Applicable √Inapplicable
Particulars about sale of assets
3. Replacement of assets
□Applicable √Inapplicable
Particulars about replacement of assets
4. Business merger
□Applicable √Inapplicable
5. Progress of these events after the publication of the assets reorganization report or
announcements on the purchases or sales of assets, as well as the influences of these events on the
operation results and financial status of the Company in this report period
□Applicable √Inapplicable
(VII) Explanation on shareholding increase scheme during the report period proposed
or implemented by the principal shareholders and act-in-concert persons
□Applicable √Inapplicable
(VIII) Implementation situation and influence of equity incentive plan of the Company
□Applicable √Inapplicable
(IX) Significant related transactions
22
2012 Interim Report of Wuhan Boiler Company Limited
1. Related transactions relevant to routine operation
√ Applicable □ Inapplicable
Reason for
significant
Pricing Proportion in Settlement
Type of the Content of the Transaction Transaction Influence on Market price difference
principle of the same kind of method of the
Related party Relationship related related price (RMB amount (RMB the profits of (RMB Ten between the
related transactions related-party
transaction transaction Ten thousand) Ten thousand) the Company thousand) transaction
transaction (%) transaction
price and the
market price
ALSTOM
A subsidiary of Settlement as
Boiler
ultimate Purchase Raw materials Market price 43.54 43.54 0.22% per contract Low 43.54
Deutschland
controller term
GmbH
A subsidiary of Settlement as
ALSTOM
ultimate Sales Boiler Products Market price 15,777.55 15,777.55 43.87% per contract Median 15,777.55
Power Inc
controller term
ALSTOM Settlement as
A subsidiary of
Boiler per contract
ultimate Sales Boiler Products Market price 10,388.48 10,388.48 28.89% Median 10,388.48
Deutschland term
controller
GmbH
A subsidiary of Settlement as
ALSTOM
ultimate Sales Boiler Products Market price 1,800.19 1,800.19 5.01% per contract Median 1,800.19
Estonia AS
controller term
ALSTOM Settlement as
(Wuhan) A subsidiary of per contract
Rendering of
Engineering & ultimate Sales Market price 212.16 212.16 100% term Low 212.16
service
Technology controller
Co.,Ltd
23
2012 Interim Report of Wuhan Boiler Company Limited
ALSTOM A subsidiary of PMX financial
Service
(Switzerland) ultimate software Market price 169.48 169.48 19% Credit term Low 169.48
received
Ltd controller support fees
ALSTOM A subsidiary of PDMS software
Service
(Switzerland) ultimate application Market price 18.16 18.16 2.04% Credit term Low 18.16
received
Ltd controller service fees
A subsidiary of
ALSTOM Service
ultimate ITSAS fees Market price 340.44 340.44 38.16% Credit term Low 340.44
IS&T SAS received
controller
ALSTOM A subsidiary of
(Wuhan) ultimate
Service
Engineering & controller Temporary staff Market price 27.21 27.21 7.3% Credit term Low 27.21
received
Technology
Co.,Ltd
ALSTOM A subsidiary of
(Wuhan) ultimate
Service
Engineering & controller Translation Market price 18.75 18.75 64.74% Credit term Low 18.75
received
Technology
Co.,Ltd
ALSTOM A subsidiary of
(China) ultimate Service
Training Market price 20.61 20.61 73.71% Credit term Low 20.61
Investment controller received
Co.,Ltd
ALSTOM A subsidiary of
(China) ultimate Service
ITSSC fees Market price 214.19 214.19 24.01% Credit term Low 214.19
Investment controller received
Co.,Ltd
24
2012 Interim Report of Wuhan Boiler Company Limited
Total -- -- 29,030.76 -- -- -- --
Details of large amount of sales returns None
Related transactions in sales and procurement between the Company and related parties were the result of long-term business
Necessity and continuity of related transaction as well as reason
partnership and supplementary business, which was necessary to the business development of the Company, and will continue in
of choosing the related party (but not other transaction parties) to
certain periods. The pricing strategy of the related party transactions was fair and reasonable in accordance with market price, which
conduct the said transaction
did not harm the interest of the Company and shareholders.
Impacts of related transaction on independency of the Company Related transactions took place fairly; there was no influence on the independence of the Company.
Dependant degree of the Company on related party and relevant Related transactions did not influence the independence of the Company, the Company did not rely on related parties to survive. And
solutions for the dependence (if any) the Company actively exploits domestic market and strives to taking in more domestic contracts.
As for the estimation on the total amount of routine related 1. Purchase of raw materials: actual transaction amount less than forecasted figure, mainly due to lost of some expected contracts;
transactions to be occurred in the report period by relevant types, 2. Sales of products: actual transaction amount less than forecasted figure, mainly due to i)postponement of overseas project resulted
the actual performance in the report period in less revenue recognized; ii) lost of some expected contracts.
Explanation on related transaction
Related transactions relevant to routine operation
Selling products and providing labor services to related parties Purchasing products and receiving labor services from related parties
Related party Transaction amount (RMB Ten Proportion in same kind of Transaction amount (RMB Ten Proportion in same kind of
thousand) transactions (%) thousand) transactions (%)
ALSTOM Power Inc 15,777.55 43.87%
ALSTOM Boiler Deutschland GmbH 10,388.48 28.89%
ALSTOM Estonia AS 1,800.19 5.01%
ALSTOM (Wuhan) Engineering &
212.16 100%
Technology Co.,Ltd
ALSTOM Boiler Deutschland GmbH 43.54 0.22%
Total 28,178.38 43.54
Of which: the total amount of related transactions of the Company selling products or providing labor services to the controlling shareholder and its subsidiaries during the report period is
RMB281,783,852.50.
25
2012 Interim Report of Wuhan Boiler Company Limited
Note: 1. Sales to overseas related party took up 103.82% of total overseas sales, mainly due to reversal of revenue from Perawang project during the report period caused by postponement of this project,
which resulted in increase in estimated project costs and decrease in project margin;
2. Alstom (China) Investment Co., Ltd., the controlling shareholder of the Company, entrusted China Construction Bank to provide a shareholder loan of RMB 1,602,000,000.00 to the Company at 10%
discount off the benchmark interest rate. The Company paid RMB 47,476,945.50 loan interest in this report period.
2. Related transactions regarding purchase and sales of assets
□Applicable √Inapplicable
3. Significant related transactions with joint investments
□Applicable √Inapplicable
4. Significant credits and liabilities with related parties
□Applicable √Inapplicable
Capital occupation during the report period and debt-clearing progress
□Applicable √Inapplicable
The liabilities claiming plan put forward by the Board of Directors when the Company had not completed collecting the capital occupied for non-operating purposes by the end of the report period
□Applicable √Inapplicable
5. Other significant related transactions
None
(X) Significant contracts and execution
1. The trust, contract and lease whose profits reaching more than 10% (including 10%) of the total profits of the Company in the report period
26
2012 Interim Report of Wuhan Boiler Company Limited
(1) Status of trust
□Applicable √Inapplicable
(2) Status of contract
□Applicable √Inapplicable
(3) Status of lease
□Applicable √Inapplicable
2. Status of guarantee
□Applicable √Inapplicable
3. Entrusted financial management
□Applicable √Inapplicable
4. Performance of significant contracts relevant to routine operation
□Applicable √Inapplicable
5. Other significant contracts
□Applicable √Inapplicable
(XI) Explanation on issuing corporate bonds
□Applicable √Inapplicable
(XII) Fulfillment of commitments
1. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the
report period, or such commitments carried down into the report period
□Applicable √Inapplicable
2. The Company’s assets or projects exist profitable prediction and the report period is in such prediction
period, please state the profits from the assets or projects reaching original prediction and relevant reasons
□Applicable √Inapplicable
(XIII) Items of other comprehensive income
Unit: RMB Yuan
Items 2012 Jan-Jun 2011 Jan-Jun
1. Profits/(losses) from available-for-sale financial assets 0.00 0.00
Less: Effects on income tax generating from available-for-sale
0.00 0.00
financial assets
Net amount transferred into profit and loss in the current period that
0.00 0.00
recognized into other comprehensive income in prior period
Subtotal 0.00 0.00
2. Interests in the investee entities’ other comprehensive income as per
0.00 0.00
equity method
Less: Effects on income tax generating from the interests in the
0.00 0.00
investee entities’ other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
0.00 0.00
recognized into other comprehensive income in prior period
Subtotal 0.00 0.00
3. Profits/(losses) from cash flow hedging instrument 0.00 0.00
Less: Effects on income tax generating from cash flow hedging
0.00 0.00
instrument
Net amount transferred into profit and loss in the current period that
0.00 0.00
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount of
0.00 0.00
arbitrage project
Subtotal 0.00 0.00
4. Converted amount of foreign currency financial statements 0.00 0.00
Less: Net value of disposal of oversea operations that recognized into 0.00 0.00
27
2012 Interim Report of Wuhan Boiler Company Limited
current profit and loss
Subtotal 0.00 0.00
5. Other 0.00 0.00
Less: Effects on income tax generating from the others that included
0.00 0.00
into other comprehensive income
Net amount transferred into profit and loss in the current period that
0.00 0.00
recognized into other comprehensive income in prior period
Subtotal 0.00 0.00
Total 0.00 0.00
(XIV) Particulars about researches, visits and interviews received in this report period
Way of Type of Main discussion and materials provided by
Time Place Visitor
reception visitor the Company
The Company made a profit in the first
2 shareholders with
April 19, 2012 The Company By telephone Individual quarter this year. Will it make a profit for the
tradable shares
whole year?
3 shareholders with
May 7, 2012 The Company By telephone Individual How about the listing restoration progress?
tradable shares
How about the listing restoration progress?
3 shareholders with
May 8, 2012 The Company By telephone Individual How about the progress on the joint venture
tradable shares
of Shanghai Electric and Alstom?
1 shareholder with What’s operation status of the Company?
May 10, 2012 The Company By telephone Individual
tradable shares How about the listing restoration progress?
How about the listing restoration progress?
3 shareholders with
May 11, 2012 The Company By telephone Individual Questions about attending the Annual
tradable shares
Shareholders’ Meeting.
How about the listing restoration progress?
2 shareholders with What’s the business performance for 2012?
May 16, 2012 The Company By telephone Individual
tradable shares Questions about attending the Annual
Shareholders’ Meeting.
1 shareholder with Questions about attending the Annual
June 6, 2012 The Company By telephone Individual
tradable shares Shareholders’ Meeting.
1 shareholder with Questions about attending the Annual
June 11, 2012 The Company By telephone Individual
tradable shares Shareholders’ Meeting.
1 shareholder with
June 12, 2012 The Company By telephone Individual How about the listing restoration progress?
tradable shares
What’s the operation status of the Company
1 shareholder with
June 13, 2012 The Company By telephone Individual in 2012? How about the listing restoration
tradable shares
progress?
1 shareholder with
June 19, 2012 The Company By telephone Individual How about the listing restoration progress?
tradable shares
1 shareholder with
June 20, 2012 The Company By telephone Individual How about the listing restoration progress?
tradable shares
2 shareholders with How about the listing restoration progress? Is
June 25, 2012 The Company By telephone Individual
tradable shares there any material progress plan?
(XV) Particulars about engagement and disengagement of CPAs firm
Has this interim report been audited?
□ Yes √ No
Has the CPA firm been changed?
□ Yes √ No
(XVI) Particulars about punishment and rectification order received by the Company, its
directors, supervisors, senior management, shareholders, actual controller and acquirer
□Applicable √Inapplicable
(XVII) Explanation on other significant events
√Applicable □Inapplicable
Due to three years’ consecutive losses in 2007, 2008 and 2009, Shenzhen Stock Exchange decided to suspend listing of the stocks of
the Company since April 9, 2010 according to Article 14.1.1 and Article 14.1.3 of the Rules Governing the Listing of Stocks on
28
2012 Interim Report of Wuhan Boiler Company Limited
Shenzhen Stock Exchange. The Listing Suspension Announcement of Wuhan Boiler Company Limited was disclosed on Securities
Times, Ta Kung Pao and http://www.cninfo.com.cn on April 2, 2010.
As audited and confirmed by Zhonghuan Haihua Certified Public Accountants Co., Ltd., the Company achieved net profit
attributable to its shareholders of RMB 8,535,924.33 for the year 2010 and was issued a standard Auditor’s Report with unqualified
opinion. On May 4, 2011, the Company submitted the Application for Listing Restoration of Wuhan Boiler Company Limited and
relevant documents to Shenzhen Stock Exchange. And the Announcement on Submitting the Application for Listing Restoration of
Wuhan Boiler Company Limited to Shenzhen Stock Exchange was disclosed on Securities Times and Ta Kung Pao on May 5, 2011,
with the Announcement No. 2011-017.
On May 9, 2011, the Company received the Decision on Acceptance of the Application for Listing Restoration of Wuhan Boiler
Company Limited issued by the Shenzhen Stock Exchange, which requested the Company to provide more other information. The
Announcement of Shenzhen Stock Exchange Accepting the Application for Listing Restoration of Wuhan Boiler Company Limited was
disclosed on Securities Times and Ta Kung Pao on May 11, 2011, with the Announcement No. 2011-020.
On April 27, 2012, the Company disclosed 2011 Annual Report and 2012 Quarterly One Report. As audited and confirmed by
Zhonghuan Haihua Certified Public Accountants Co., Ltd., the net profit attributable to shareholders achieved by the Company in
2011 was RMB -263,452,709.03. And the CPA firm issued a standard Auditor’s Report with unqualified opinion. For the first quarter
of 2012, the net profit attributable to shareholders achieved by the Company was RMB 56,012.99.
On June 28, 2012, Shenzhen Stock Exchange issued the Instruction for Improvement and Amendment of Current Delisting Policy and
the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange (Revised in 2012). According to relevant regulations,
Shenzhen Stock Exchange will make a decision before December 31, 2012 on whether to approve the listing restoration of
companies whose stocks were suspended listing before January 1, 2012. If the Company’s fails to get the approval from Shenzhen
Stock Exchange on its listing restoration application by December 31, 2012, the Company will face the risk of listing termination.
(XVIII) Particulars about significant changes in the profitability, asset status and credit status
of the Company’s convertible bonds guarantor
□Applicable √Inapplicable
(XIX) Index for information disclosure
Internet website for disclosing
Newspapers for disclosing
Announcement Publishing date information and the searching
information and relevant page
approach
Announcement on Listing Restoration Securities Times and Ta Kung
January 5, 2012 http://www.cninfo.com.cn
Progress of Wuhan Boiler Company Limited Pao, B4
Announcement of 2011 Business Performance Securities Times and Ta Kung
January 17, 2012 http://www.cninfo.com.cn
Forecast of Wuhan Boiler Company Limited Pao, B5
Announcement on Listing Restoration
Progress of Wuhan Boiler Company Limited; Securities Times and Ta Kung
February 3, 2012 http://www.cninfo.com.cn
Announcement of Name Changing of the CPA Pao, B17
Firm
Announcement on Listing Restoration Securities Times and Ta Kung
March 2, 2012 http://www.cninfo.com.cn
Progress of Wuhan Boiler Company Limited Pao, B7
Announcement of Resolutions of the 8th
Securities Times and Ta Kung
Meeting of the 5th Board of Directors of March 27, 2012 http://www.cninfo.com.cn
Pao, B6
Wuhan Boiler Company Limited
Announcement on Progress of Significant
Securities Times and Ta Kung
Litigations and Arbitrations of Wuhan Boiler March 29, 2012 http://www.cninfo.com.cn
Pao, B9
Company Limited
Announcement on Listing Restoration Securities Times and Ta Kung
April 6, 2012 http://www.cninfo.com.cn
Progress of Wuhan Boiler Company Limited Pao, A19
Brief Announcement of 2011 Annual Business
Performance Forecast; Securities Times and Ta Kung
April 12, 2012 http://www.cninfo.com.cn
Announcement of the Business Performance Pao, 13
Forecast for the First Quarter of 2012
2011 Annual Report and Its Summary of
Wuhan Boiler Company Limited;
Announcement of Resolutions of the 9th
Meeting of the 5th Board of Directors of
Wuhan Boiler Company Limited;
Announcement of Resolutions of the 7th
Securities Times and Ta Kung
Meeting of the 5th Board of Supervisors of April 27, 2012 http://www.cninfo.com.cn
Pao, B6/B7
Wuhan Boiler Company Limited;
Announcement on Daily Execution of 2011
Related Transactions and Estimation of 2012
Related Transactions;
Notice for Convening 2011 Annual
Shareholders’ Meeting;
29
2012 Interim Report of Wuhan Boiler Company Limited
Announcement on Nomination of Candidate
Independent Director and Nominator’s
Statements;
2012 Quarterly One Report;
Announcement on Progress of Significant
Litigations and Arbitrations of Wuhan Boiler
Company Limited
Announcement on Listing Restoration Securities Times and Ta Kung
May 8, 2012 http://www.cninfo.com.cn
Progress of Wuhan Boiler Company Limited Pao, B3
Announcement of 2011 Annual Shareholders’ Securities Times and Ta Kung
June 6, 2012 http://www.cninfo.com.cn
Meeting of Wuhan Boiler Company Limited Pao, B19
Announcement on Listing Restoration Securities Times and Ta Kung
June 7, 2012 http://www.cninfo.com.cn
Progress of Wuhan Boiler Company Limited Pao, B2
VIII. Financial Report
(I) Auditor’s report
Has this interim report been audited?
□ Yes √ No
(II) Financial statements
Consolidated statements or not?
√Yes □No
The monetary unit in the financial statements of the financial report is RMB Yuan if not specified.
Monetary unit of notes to financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
Item Note Balance as at Jun. 30, 2012 Balance as at Dec. 31, 2011
Current assets:
Monetary funds 21,651,423.52 22,999,242.02
Deposit reservation for balance
Outgoing call loans
Trading financial assets
Notes receivable 9,700,000.00 30,800,000.00
Accounts receivable 259,885,963.59 371,210,285.79
Prepayment 47,558,803.54 39,005,432.77
Insurance receivables
Reinsurance receivables
Provision of reinsurance contract
reserve receivable
Interest receivable
Dividend receivable
Other receivables 101,120,596.74 103,236,840.39
Financial assets purchased under
agreement to resell
Inventories 4,930,415.73 240,116,922.49
Non-current assets due within
1-year
Other current assets
Total current assets 444,847,203.12 807,368,723.46
30
2012 Interim Report of Wuhan Boiler Company Limited
Non-current assets ：
Loan and payment on other’s
behalf disbursed
Available-for-sale financial assets
Investment held to maturity
Long-term receivables
Long-term equity investment
Investment property
Fixed assets 748,591,340.70 766,802,430.73
Construction in progress 2,265,946.22 2,398,543.47
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 81,897,456.21 85,835,314.34
R&D expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets 53,202,865.59 80,882,420.54
Other non-current assets
Total non-current assets 885,957,608.72 941,709,217.79
Total assets 1,330,804,811.84 1,749,077,941.25
Current liabilities:
Short-term loans 1,602,000,000.00 1,563,000,000.00
Loans from central bank
Deposits received and held for
others
Call loans received
Held-for-trading financial
liabilities
Notes payable 45,548,201.49
Accounts payable 269,376,764.59 309,278,906.64
Advance from customers 601,060,601.00 912,493,449.25
Financial assets sold under
agreements to repurchase
Fees and commissions payable
Payroll payable 50,979,144.34 57,680,171.01
Taxes payable -112,694,559.63 -108,883,733.20
Interest payable 2,016,270.00 2,016,270.00
dividend payable 562,000.00 562,000.00
Other payables 81,096,416.41 97,831,275.42
Amount due to reinsurance
Insurance contract provision
Entrusted trading of securities
Amount payable under security
underwriting
Non-current liabilities due within
1-year
31
2012 Interim Report of Wuhan Boiler Company Limited
Other current liabilities 2,494,396,636.71 2,879,526,540.61
Total current liabilities:
Non-current liabilities:
Long-term loans
Bonds payable
Long-term payables
Specific payables
Provision for liabilities
Deferred income tax liabilities
Other non-current liabilities 7,948,033.33 16,132,004.95
Total non-current liabilities : 7,948,033.33 16,132,004.95
Total liabilities 2,502,344,670.04 2,895,658,545.56
Owners’ equity (or shareholders’
equity)
Paid-in capital (or share capital) 297,000,000.00 297,000,000.00
Capital reserve 174,659,407.46 174,659,407.46
Less Treasury Stock
：
Specific reserve
Surplus reserve 39,418,356.83 39,418,356.83
General risk provision
Retained earnings -1,684,339,735.65 -1,659,956,146.16
Foreign exchange difference
Total owners’ equity attributable
-1,173,261,971.36 -1,148,878,381.87
to the Company
Minority interests 1,722,113.16 2,297,777.56
Total owners’ (or shareholders’)
-1,171,539,858.20 -1,146,580,604.31
equity
Total liabilities & owners’ (or
1,330,804,811.84 1,749,077,941.25
shareholders’) equity
Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua
Chief of the accounting division: LI Yihao
2. Balance sheet of the Company
Unit: RMB Yuan
Item Note Balance as at Jun. 30, 2012 Balance as at Dec. 31, 2011
Current assets:
Monetary funds 20,119,402.31 21,560,606.33
Trading financial assets
Notes receivable 9,700,000.00 30,800,000.00
Accounts receivable 258,170,788.73 369,042,511.88
Prepayment 47,558,803.54 39,005,432.77
Interest receivable
Dividend receivable
Other receivables 101,364,225.24 103,457,164.68
Inventories 4,930,415.73 240,116,922.49
32
2012 Interim Report of Wuhan Boiler Company Limited
Non-current assets due within
1-year
Other current assets
Total current assets 441,843,635.55 803,982,638.15
Non-current assets ：
Available-for-sale financial assets
Investment held to maturity
Long-term receivables
Long-term equity investment 24,984,500.00 39,234,287.13
Investment property
Fixed assets 748,748,317.69 766,959,407.72
Construction in progress 2,265,946.22 2,398,543.47
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 81,897,456.21 85,835,314.34
R&D expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets 53,202,865.59 80,882,420.54
Other non-current assets 5,790,508.71
Total non-current assets 911,099,085.71 981,100,481.91
Total assets 1,352,942,721.26 1,785,083,120.06
Current liabilities:
Short-term loans 1,602,000,000.00 1,563,000,000.00
Trading financial liabilities
Notes payable 45,548,201.49
Accounts payable 269,812,764.59 314,236,789.08
Advance from customers 601,060,601.00 912,493,449.25
Payroll payable 50,778,504.80 57,479,531.47
Taxes payable -112,694,559.63 -108,883,733.20
Interest payable 2,016,270.00 2,016,270.00
dividend payable
Other payables 117,896,369.17 135,779,767.30
Non-current liabilities due within
1-year
Other current liabilities
Total current liabilities: 2,530,869,949.93 2,921,670,275.39
Non-current liabilities:
Long-term loans
Bonds payable
Long-term payables
Specific payables
Provision for liabilities
Deferred income tax liabilities
Other non-current liabilities 7,948,033.33 16,132,004.95
33
2012 Interim Report of Wuhan Boiler Company Limited
Total non-current liabilities : 7,948,033.33 16,132,004.95
Total liabilities 2,538,817,983.26 2,937,802,280.34
Owners’ equity (or shareholders’
equity)
Paid-in capital (or share capital) 297,000,000.00 297,000,000.00
Capital reserve 174,854,304.12 174,854,304.12
Less Treasury Stock
：
Specific reserve
Surplus reserve 39,418,356.83 39,418,356.83
Retained earnings -1,697,147,922.95 -1,663,991,821.23
Foreign exchange difference
Total owners’ (or shareholders’)
-1,185,875,262.00 -1,152,719,160.28
equity
Total liabilities & owners’ (or
1,352,942,721.26 1,785,083,120.06
shareholders’) equity
3. Consolidated income statement
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total sales 376,577,702.30 248,332,052.00
Including: Sales 376,577,702.30 248,332,052.00
Interest income
Premium income
Handling charges and commission
income
II. Total cost of sales 378,118,924.89 360,781,143.47
Including: Cost of sales 345,842,634.98 277,531,191.13
Interest expenses
Service charge and commission
income
Cash surrender value
Claim expenses-net
Provision for insurance contract
reserves-net
Insurance policy dividend paid
Reinsurance expense
Business taxes and surcharges 1,130.00 126,648.93
Distribution expenses 3,748,312.10 5,269,724.87
Administrative expenses 9,044,200.97 16,311,884.19
Financial costs 56,374,275.12 31,503,275.97
Impairment loss -36,891,628.28 30,038,418.38
Add: gain/(loss) from change in fair
2,850,685.36 -11,547,097.95
value (“-” means loss)
Gain/(loss) from investment (“-”
means loss)
Including: income form investment
on associates and joint ventures
Foreign exchange difference (“-”
means loss)
34
2012 Interim Report of Wuhan Boiler Company Limited
III. Business profit (“-” means loss) 1,309,462.77 -123,996,189.42
Add: non-business income 1,420,624.61 173,611.26
Less: non-business expense 9,786.32 113,878.73
Including: loss from non-current
1,786.32 113,878.73
asset disposal
IV. Total profit (“-” means loss) 2,720,301.06 -123,936,456.89
Less: income tax expense 27,679,554.95 -5,331,741.08
V. Net profit (“-” means loss) -24,959,253.89 -118,604,715.81
Including: net profit achieved by the
merged parties before business
mergers
Attributable to owners of the
-24,383,589.49 -118,548,726.65
Company
Minority interest income -575,664.40 -55,989.16
VI. Earnings per share -- --
(I) Basic earnings per share -0.08 -0.40
(II) Diluted earnings per share -0.08 -0.40
VII. Other comprehensive income
VIII. Total comprehensive income -24,959,253.89 -118,604,715.81
Attributable to owners of the
-24,383,589.49 -118,548,726.65
Company
Attributable to minority
-575,664.40 -55,989.16
shareholders
Where business mergers under the same control occurred in this report period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua
Chief of the accounting division: LI Yihao
4. Income statement of the Company
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total sales 376,577,702.30 248,332,052.00
Less: cost of sales 345,842,634.98 277,531,191.13
Business taxes and surcharges 1,130.00 126,648.93
Distribution expenses 3,748,312.10 5,269,724.87
Administrative expenses 9,028,422.97 16,311,271.39
Financial costs 56,377,660.64 31,503,921.68
Impairment loss -37,044,968.54 30,118,486.29
Add: gain/(loss) from change in fair
2,850,685.36 -11,547,097.95
value (“-” means loss)
Gain/(loss) from investment (“-”
-14,249,787.13 0.00
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) -12,774,591.62 -124,076,290.24
Add: non-business income 7,299,831.17 173,611.26
Less: non-business expense 1,786.32 113,878.73
Including: loss from non-current 1,786.32 113,878.73
35
2012 Interim Report of Wuhan Boiler Company Limited
asset disposal
III. Total profit (“-” means loss) -5,476,546.77 -124,016,557.71
Less: income tax expense 27,679,554.95 -5,331,741.08
IV. Net profit (“-” means loss) -33,156,101.72 -118,684,816.63
V. Earnings per share -- --
(I) Basic earnings per share -0.11 -0.40
(II) Diluted earnings per share -0.11 -0.40
VI. Other comprehensive income
VII. Total comprehensive income -33,156,101.72 -118,684,816.63
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
1. Cash flows from operating activities
Cash received from sales of goods
314,945,019.71 147,700,506.03
or rending of services
Net increase of deposits received
and held for others
Net increase of loans from central
bank
Net increase of inter-bank loans
from other financial institutions
Cash received against original
insurance contracts
Cash received from reinsurance
Net increase of client deposit and
investment
Net increase of disposal of
held-for-trading financial assets
Cash received as interest, fees and
commissions
Net increase of inter-bank fund
received
Net increase of cash received
under repurchasing
Tax returned
Other cash received from operating
800,000.00 32,632.99
activities
Sub-total of cash inflow from
315,745,019.71 147,733,139.02
operating activities
Cash paid for goods and services 163,159,120.20 163,374,505.77
Net increase of loans and advances
Net increase of deposit in central
bank, banks and other financial
institutions
Cash paid for original contract
claim
Cash paid for interest, fees and
commissions
Cash paid for policy dividend
Cash paid to and for employees 83,458,190.76 76,022,293.85
36
2012 Interim Report of Wuhan Boiler Company Limited
Cash paid for all types of taxes 6,812,448.29 4,721,188.75
Other cash paid relating to
34,986,130.12 36,495,012.58
operating activities
Sub-total of cash outflows from
288,415,889.37 280,613,000.95
operating activities
Net cash flows from operating
27,329,130.34 -132,879,861.93
activities
2. Cash flows from investing activities
Cash received from retraction of
investment
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets and other 11,000.00 5,660.00
long-term assets
Net cash received from disposal of
subsidiaries and other operating units
Other cash received relating to
87,166.13 950,669.73
investing activities
Sub-total of cash inflows of
98,166.13 956,329.73
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 16,370,791.26 8,468,737.97
long-term assets
Cash paid for acquisition of
investments
Net increase of pledge loans
Net cash paid for acquisition of
subsidiaries and other operating units
Other cash paid relating to
220,250.34 155,198.50
investing activities
Sub-total of cash outflows of
16,591,041.60 8,623,936.47
investing activities
Net cash flow from investing
-16,492,875.47 -7,667,606.74
activities
3. Cash flows from financing activities
Cash received from investment
Including: cash received from
minority shareholders of subsidiaries
Cash received from borrowings 408,000,000.00 340,000,000.00
Cash received from bonds issuing
Other cash received relating to
financing activities
Sub-total of cash inflows of
408,000,000.00 340,000,000.00
financing activities
Cash paid for repayment of
369,000,000.00 167,000,000.00
borrowings
Cash paid for dividends, profit
47,476,945.50 32,103,844.25
distribution or interest
Including: dividends or profits paid
to minority shareholders by subsidiaries
Other cash paid relating to
financing activities
Sub-total of cash outflows of 416,476,945.50 199,103,844.25
37
2012 Interim Report of Wuhan Boiler Company Limited
financing activities
Net cash flow from financing
-8,476,945.50 140,896,155.75
activities
4. Effect of foreign exchange rate
-3,707,261.45 -399,402.47
changes on cash and cash equivalents
5. Net increase in cash and cash
-1,347,952.08 -50,715.39
equivalents
Add: cash and cash equivalents at
20,388,030.03 10,491,275.05
the beginning of this period
6. Cash and cash equivalents at the end
19,040,077.95 10,440,559.66
of this period
6. Cash flows statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
1. Cash flows from operating activities
Cash received from sales of goods
314,855,019.71 147,161,671.29
or rending of services
Tax returned
Other cash received from operating
800,000.00 443,632.99
activities
Sub-total of cash inflow from
315,655,019.71 147,605,304.28
operating activities
Cash paid for goods and services 163,159,120.20 162,962,652.97
Cash paid to and for employees 83,458,190.76 76,022,293.85
Cash paid for all types of taxes 6,812,448.29 4,721,188.75
Other cash paid relating to
34,986,130.12 37,537,318.30
operating activities
Sub-total of cash outflows from
288,415,889.37 281,243,453.87
operating activities
Net cash flows from operating
27,239,130.34 -133,638,149.59
activities
2. Cash flows from investing activities
Cash received from retraction of
investment
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets and other 11,000.00 5,660.00
long-term assets
Net cash received from disposal of
subsidiaries and other operating units
Other cash received relating to
83,520.61 949,601.02
investing activities
Sub-total of cash inflows of
94,520.61 955,261.02
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 16,370,791.26 8,468,737.97
long-term assets
Cash paid for acquisition of
investments
Net cash paid for acquisition of
subsidiaries and other operating units
38
2012 Interim Report of Wuhan Boiler Company Limited
Other cash paid relating to
219,990.34 155,015.50
investing activities
Sub-total of cash outflows of
16,590,781.60 8,623,753.47
investing activities
Net cash flow from investing
-16,496,260.99 -7,668,492.45
activities
3. Cash flows from financing activities
Cash received from investment
Cash received from borrowings 408,000,000.00 340,000,000.00
Other cash received relating to
financing activities
Sub-total of cash inflows of
408,000,000.00 340,000,000.00
financing activities
Cash paid for repayment of
369,000,000.00 167,000,000.00
borrowings
Cash paid for dividends, profit
47,476,945.50 32,103,844.25
distribution or interest
Other cash paid relating to
financing activities
Sub-total of cash outflows of
416,476,945.50 199,103,844.25
financing activities
Net cash flow from financing
-8,476,945.50 140,896,155.75
activities
4. Effect of foreign exchange rate
-3,707,261.45 -399,402.47
changes on cash and cash equivalents
5. Net increase in cash and cash
-1,441,337.60 -809,888.76
equivalents
Add: cash and cash equivalents at
18,949,394.34 9,827,144.54
the beginning of this period
6. Cash and cash equivalents at the end
17,508,056.74 9,017,255.78
of this period
7. Consolidated statement of changes in owners’ equity
June 30, 2012
Unit: RMB Yuan
June 30, 2012
Owners’ equity attributable to the Company
Item Paid-in General Total
Less: Retaine Minority
capital Capital Specific Surplus risk owners’
Treasur d others interests
(share reserve reserve reserve provisio equity
y stock earnings
capital) n
-1,659,9
I. Balance at the end of last 297,000 174,659, 39,418, 2,297,777 -1,146,580,
56,146.1
year ,000.00 407.46 356.83 .56 604.31
6
Plus: change in accounting
policies
Correction of errors in
previous periods
Others
-1,659,9
II. Balance at the beginning of 297,000 174,659, 39,418, 2,297,777 -1,146,580,
56,146.1
this year ,000.00 407.46 356.83 .56 604.31
6
III. Increase/ decrease during -24,383, -575,664. -24,959,25
39
2012 Interim Report of Wuhan Boiler Company Limited
this report period (“-”for loss) 589.49 40 3.89
-24,383, -575,664. -24,959,25
(I) Net profit
589.49 40 3.89
(II) Other comprehensive
incomes
-24,383, -575,664. -24,959,25
Subtotal of (I) and (II)
589.49 40 3.89
(III) Contributions and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock
and included in owners’ equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners
(or shareholders)
4. Others
(V) Transfer within owners'
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capital reserve
transferred to capital (or share
capital)
2. Surplus reserve
transferred to capital (or share
capital)
3. Surplus reserve offsetting
losses
4. Others
( Ⅵ ) Specific reserve
1. Withdrawn in this
period
2. Used in this period
(VII) Others
-1,684,3
IV. Balance at the end of this 297,000 174,659, 39,418, 1,722,113. -1,171,539,
39,735.6
period ,000.00 407.46 356.83 16 858.20
5
Dec. 31, 2011
Unit: RMB Yuan
Dec. 31, 2011
Owners’ equity attributable to the Company
Item Paid-in General Total
Less: Retaine Minority
capital Capital Specific Surplus risk owners’
Treasur d others interests
(share reserve reserve reserve provisio equity
y stock earnings
capital) n
-1,396,5
I. Balance at the end of last 297,000 174,659, 39,418, 2,382,148 -883,043,5
03,437.1
year ,000.00 407.46 356.83 .42 24.42
3
Plus: retrospective
adjustment due to business
combinations under the same
control
40
2012 Interim Report of Wuhan Boiler Company Limited
Plus: change in accounting
policies
Correction of errors in
previous periods
Others
-1,396,5
II. Balance at the beginning of 297,000 174,659, 39,418, 2,382,148 -883,043,5
03,437.1
this year ,000.00 407.46 356.83 .42 24.42
3
III. Increase/ decrease during -263,45 -84,370.8 -263,537,0
this report period (“-”for loss) 2,709.03 6 79.89
-263,45 -84,370.8 -263,537,0
(I) Net profit
2,709.03 6 79.89
(II) Other comprehensive
incomes
-263,45 -84,370.8 -263,537,0
Subtotal of (I) and (II)
2,709.03 6 79.89
(III) Contributions and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock
and included in owners’ equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners
(or shareholders)
4. Others
(V) Transfer within owners'
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capital reserve
transferred to capital (or share
capital)
2. Surplus reserve
transferred to capital (or share
capital)
3. Surplus reserve offsetting
losses
4. Others
( Ⅵ ) Specific reserve
1. Withdrawn in this
period
2. Used in this period
(VII) Others
-1,659,9
IV. Balance at the end of this 297,000 174,659, 39,418, 2,297,777 -1,146,580,
56,146.1
period ,000.00 407.46 356.83 .56 604.31
6
8. Statement of changes in owners’ equity of the Company
Jun. 30, 2012
Unit: RMB Yuan
41
2012 Interim Report of Wuhan Boiler Company Limited
Jun. 30, 2012
Paid-in
Item Less: General Total
capital Capital Specific Surplus Retained
Treasury risk owners’
(share reserve reserve reserve earnings
stock provision equity
capital)
297,000,00 174,854,30 39,418,356 -1,663,991, -1,152,719,
I. Balance at the end of last year
0.00 4.12 .83 821.23 160.28
Plus: change in accounting
policies
Correction of errors in
previous periods
Others
II. Balance at the beginning of 297,000,00 174,854,30 39,418,356 -1,663,991, -1,152,719,
this year 0.00 4.12 .83 821.23 160.28
III. Increase/ decrease during this -33,156,10 -33,156,10
report period (“-”for loss) 1.72 1.72
-33,156,10 -33,156,10
(I) Net profit
1.72 1.72
(II) Other comprehensive
incomes
-33,156,10 -33,156,10
Subtotal of (I) and (II)
1.72 1.72
(III) Contributions and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock and
included in owners’ equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners (or
shareholders)
4. Others
(V) Transfer within owners'
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capital reserve transferred
to capital (or share capital)
2. Surplus reserve transferred
to capital (or share capital)
3. Surplus reserve offsetting
losses
4. Others
( Ⅵ ) Specific reserve
1. Withdrawn in this period
2. Used in this period
(VII) Others
IV. Balance at the end of this 297,000,00 174,854,30 39,418,356 -1,697,147, -1,185,875,
period 0.00 4.12 .83 922.95 262.00
Dec. 31, 2011
Unit: RMB Yuan
Items Dec. 31, 2011
42
2012 Interim Report of Wuhan Boiler Company Limited
Paid-in
Less: General Total
capital Capital Specific Surplus Retained
Treasury risk owners’
(share reserve reserve reserve earnings
stock provision equity
capital)
297,000,00 174,854,30 39,418,356 -1,400,836, -889,563,7
I. Balance at the end of last year
0.00 4.12 .83 375.53 14.58
Plus: change in accounting
policies
Correction of errors in
previous periods
Others
II. Balance at the beginning of 297,000,00 174,854,30 39,418,356 -1,400,836, -889,563,7
this year 0.00 4.12 .83 375.53 14.58
III. Increase/ decrease during this -263,155,4 -263,155,4
report period (“-”for loss) 45.70 45.70
-263,155,4 -263,155,4
(I) Net profit
45.70 45.70
(II) Other comprehensive
incomes
-263,155,4 -263,155,4
Subtotal of (I) and (II)
45.70 45.70
(III) Contributions and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock and
included in owners’ equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners (or
shareholders)
4. Others
(V) Transfer within owners'
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capital reserve transferred
to capital (or share capital)
2. Surplus reserve transferred
to capital (or share capital)
3. Surplus reserve offsetting
losses
4. Others
( Ⅵ ) Specific reserve
1. Withdrawn in this period
2. Used in this period
(VII) Others
IV. Balance at the end of this 297,000,00 174,854,30 39,418,356 -1,663,991, -1,152,719,
period 0.00 4.12 .83 821.23 160.28
(III) Company profile
Wuhan Boiler Company Limited was formerly Wuhan Boiler Factory established in 1954, and it started to list in Shenzhen Stock
Exchange in Apr. 1998 with a registered capital of RMB297 million. In Aug. 2007, Alstom (China) Investment Co., Ltd. finished
acquiring 51% state-owned shares of the Company. In Sept. 2009, the Company moved to the new factory located at East Lake New
43
2012 Interim Report of Wuhan Boiler Company Limited
Technology Development Zone, Wuhan. The new factory occupies 463,000 with a total investment of RMB900 million and an
㎡
annual production capacity of 4,500,000 kw. Up to the end of 2011, the Company has 2,003 staffs. And other information of the
Company is as follows:
Initial registration date of the company: Apr. 8, 1988
Initial registration place of the company: No. 586 Wuluo Road, Wuhan, Hubei
Date of changing the registration of the Company: On Oct. 26, 2007, the Company changed its registration as a joint-stock company
(a sino-foreign joint venture and listed company) in Hubei Administration for Industry & Commerce
Place of changing the registration of the Company: No. 586 Wuluo Road, Wuhan, Hubei
Latest registration date of the company: On Oct. 30, 2009, the Company changed its registration as a joint-stock company (a
sino-foreign joint venture and listed company) in Hubei Administration for Industry & Commerce
Latest registration place of the company: No.1, Liufangyuan Road, East Lake New Technology Development Zone, Wuhan, Hubei
Business License No 420000400000568
：
Tax Registration No 420101271756432
：
(IV) Main accounting policies and estimates as well as correction of previous accounting
errors
1. Basis for preparation of financial statements
The consolidated financial statements of the Company and its subsidiaries are prepared based on assumption of the Company’s
continuing operations, according to transactions and events actually occurred, and based on the following preparation basis,
important accounting policies and accounting estimates.
2. Statement of compliance with corporate accounting standards
The financial statements prepared by the Company are truly and completely reflect the financial positon, operation result and cash
flow of the Company.
3. Fiscal year
The fiscal year of the Company is the solar calendar year, which is from January 1 to December 31.
4. Recording currency
Recording currency is RMB.
5. Accounting method of business combination under the same control and not under the same control
(1) Business combination under the same control
Business combination under the common control refers to that parties involved in the merger are subject to the ultimate control of the
same party or same multi parties before & after the merger and such control is not temporary. Assets and liabilities acquired by
merging parties in a business combination are measured at the book value of the combined parties at the merge date. Upon any
difference between book value of net assets obtained by merging parties and book value the merging price they pay (or the aggregate
nominal amount of issued shares), it should adjust the capital surplus (share premium), and if capital surplus (share premium) isn’t
sufficient to dilute, then adjust retained earnings. Merger date refers the date that the merging parties actually gain the control of the
combined parties.
(2) Business combination not under the same control
Business combination not under the common control refers to that parties involved in the merger are not subject to the ultimate
control of the same party or same multi parties before & after the merger.
Costs of the combination paid by the purchasers are the sum of assets paid to obtain the control of the combined parties, liabilities
incurred or assumed, the fair value of equity securities issued at the purchase date, and various direct costs occurred in the business
combination. The difference between the fair value of its assets paid and the book value thereof is accrued to current profit or loss.
Purchase date refers to the date that the purchasers actually gain the control of the purchased parties.
The purchasers allocate the costs of combination on the purchase date, and confirm the fair values of identifiable assets, liabilities
and contingent liabilities of the purchased parties they obtain. The difference that costs of combination exceed the fair value of
identifiable assets of the purchased parties obtained in the merger will be recognized as goodwill; the difference that costs of
combination are less than the fair value of identifiable assets of the purchased parties obtained in the merger will be accrued in
current profit or loss.
6. Compilation method for consolidated financial statements
(1) Compilation method for consolidated financial statements
The combined scope of consolidated financial statements includes the Company and its subsidiaries. Subsidiary’s operating results
and financial position are included in the consolidated financial statements from the controlled date until the end date.
As for subsidiary obtained by the Company through business combination under the common control, in the preparation of current
consolidated financial statements, it will be deemed that the combined subsidiary is incorporated into the consolidation scope when
the ultimate controlling party of the Company implements the control right, and the beginning balance of consolidated financial
statements and comparative statements will be adjusted accordantly.
44
2012 Interim Report of Wuhan Boiler Company Limited
As for subsidiary obtained by the Company through business combination not under the common control, in the preparation of
current consolidated financial statements, the financial statements of such subsidiary will be adjusted based on the fair value of the
identifiable assets and liabilities determined at the purchase date, and since the purchase date, the consolidated subsidiary will be
incorporated into the consolidation scope.
If the accounting period or accounting policy adopted by subsidiary and parent company are not consistent, a necessary adjustment
shall be made to the financial statements of subsidiary in accordance with the accounting period or accounting policy of parent
company when the consolidated financial statements are prepared. All major transactions, balances and unrealized profit or loss
among enterprises within the consolidation scope will be offset in the preparation of consolidated financial statements.
Interests and income attributable to minority shareholders of subsidiary will be listed separately respectively under the Shareholders’
Equity in the Consolidated Balance Sheet and under the Net Profit in the Consolidated Income Statement.
If the losses attributable to the minority shareholders exceed the share of minority shareholders enjoyed in the ownership interest of
the subsidiary, in addition to the part that the minority shareholders have the obligation and the ability to take, the balance will offset
against the shareholders’ equity of parent company. If the subsidiary makes a profit subsequently, before making up the loss
attributed to relevant minority shareholders beard by shareholders’ equity of parent company, all the profits are attributable to
shareholders’ equity of parent company.
7. Recognition standards for cash and cash equivalents
In preparing the cash flow statement, the cash equivalents of the Company include the investments with short period (it usually
expires within three months from the purchase date), characteristics of high liquidity, easy conversion to certain amount of cash and
little risk of value change.
8. Foreign currency business and translations of financial statements in foreign currencies
(1) Foreign currency business
Foreign currency transactions are converted into RMB for recording purpose at the exchange rate on the first day of the period when
the transaction occurs.
Adjustments are made to foreign currency accounts in accordance with the exchange rate prevailing on the balance sheet date. Value
of non-currency item accrued at fair value by foreign currency is adjusted in accordance with the exchange rate prevailing on fair
value confirm date. Conversion differences arising from those specific borrowings are to be capitalized as part of the cost of the
construction in progress in the period before the fixed assets being acquired and constructed has not yet reached working condition
for its intended use. Conversion differences arising from other accounts are charged to financial expenses.
(2) Translations of financial statements in foreign currencies
In balance sheet, assets and liabilities items are converted into RMB at the exchange rate prevailing on the consolidated balance sheet
date. Owner’s equity items (excluding undistributed profit item) are converted into RMB at the exchange rate when the transaction
occurs. In income statement, revenue and expenses items are accrued by the proper method and the approximate rate when the
transaction occurs. Translation difference occurred for above reason is disclosed in the consolidated balance sheet as a separate item.
9. Financial instrument
(1) Classification of financial instrument
Based on the purposes of obtaining the financial assets and assuming the liabilities, the Company’s management classifies the
financial instruments into: the financial assets or financial liabilities that are calculated in the fair values and whose changes are
accrued to current profit or loss, including trading financial assets or financial liabilities, and those directly designated to be
calculated in the fair values and whose changes are accrued to current profit or loss; the held-to-maturity investments; loans and
receivables; available-for-sale financial assets; and other financial liabilities, etc.
(2) Recognition basis and measurement method of financial instrument
A. The financial assets (or financial liabilities) that are calculated in the fair values and whose changes are accrued to current profit or
loss
The fair values (excluding cash dividends that have been declared but have not been distributed and bond interests that have
exceeded the expiry dates but have not been drawn) are deemed as the initial confirmation amount on acquisition. Relevant
transaction expenses are charged to profit or loss of the period.
The interests or cash dividends obtained during the holding period are recognized as investment income. Change of fair values is
charged to profit or loss of the period at the year end.
Difference between the fair value and initial book value is recognized as investment income upon disposal. Adjustment is made to
gain or loss from changes in fair values.
B. Held-to-maturity investments
The sum of fair values (excluding bond interests that have exceeded the expiry dates and have not been drawn) and relevant
transaction expenses are deemed as the initial confirmation amount.
During the holding period, interest income is recognized as investment income based on the amortized cost and actual interest rate (if
the difference between the actual interest rate and the nominal interest rate is tiny, calculation is based on the nominal interest rate).
The actual interest rates are determined upon acquisition and remain unchanged during the expected holding period or a shorter
period applicable.
Difference between the amount received and book value of the investment is charged to investment income upon disposal.
If the Company sells or re-classifies a large amount of held to maturity investments prior to maturity (large amount refers to the total
amount relative to such investments prior to the sale or re-classification), then the Company will re-classify the rest of such type of
investment as financial assets available for sale, and the Company will not re-classify any financial assets as held to maturity in the
current accounting period or following two full fiscal years, but the following is excepted: the sale date or re-classification date is
45
2012 Interim Report of Wuhan Boiler Company Limited
near to the maturity or redemption date of such investment (such as three months before maturity), and the market interest rate
changes have no significant effect on the fair value of the investment; all the initial principal of such investment is nearly recovered
according to the periodic payments or early repayment under the contract, resell or re-classify the remaining; sale or re-classification
is caused by independent matters the Company can’t control, not expected to recur and difficult to predict reasonably.
C. Receivables and loans
Receivables primarily are the amount receivable formed from sales of goods or service provision of the Company and other claims,
which initial recognition amount, will be confirmed according to the contract or agreement price receivable from the purchasers. For
recovery or disposal of loans and receivables, the difference between the price obtained and the book value of loans and receivables
is charged to current profit or loss.
Loans are mainly loans issued by financial companies. For loans issued by financial institutions according to the current market
conditions, the initial recognition amount will be confirmed according to the principal of loans issued and related transaction
expenses. Interest income recognized during the holding period of the loan will be calculated at the actual rate. Real interest rate will
be determined upon obtaining loans, and will be unchanged within the expected duration of the loan or applicable shorter period. If
the difference between real interest rate and the contract interest rate is small, then the income will be calculated at the contract
interest rate.
D. Available-for-sale financial assets
The sum of fair values (excluding cash dividends that have been declared but have not been distributed and bond interests that have
exceeded the expiry dates but have not been drawn) and relevant transaction expenses is deemed as the initial confirmation amount.
The interests and cash dividends generated during the holding period are accrued to investment income. At year end,
available-for-sale financial assets are calculated in the fair values and the changes in fair values are accrued to the capital reserves
(other capital reserves).
Difference between the amount received and the book value of the financial assets is recognized as investment gain or loss upon
disposal. At the same time, the accumulated changes in fair value previously recognized in the owners’ equity are transferred into
investment gain or loss.
E. Other financial liabilities
The sum of fair values and relevant transaction expenses is deemed as the initial confirmation amount. The subsequent calculation
adopts the amortized cost method. Method for determining fair value: directly refer to quotations in active markets (or using
valuation techniques, etc.).(For using valuation techniques, it should disclose relevant valuation assumptions in accordance with
various types of financial assets or financial liabilities, including prepayment rates, expected credit loss rate, interest rate or discount
rate.)
(3) Recognition basis and measurement method of financial assets transfer
The Company should terminate recognizing these financial assets when the transform occurs and almost all risk and return of the
financial assets ownership have been transferred to the transferee; The Company should not terminate recognizing this financial
assets if almost all risk and return of the financial assets ownership have been remained. Essence is more important than form when
judging whether the transform meets the requirements of the financial assets termination recognition conditions mentioned above.
The Company divides the transform of financial assets into entire transfer and partial transfer.
A. If the transfer of an entire financial asset satisfies the conditions for stopping recognition; the difference between the amounts of
the following two items shall be recorded in current profit or loss:
① The book value of the transferred financial asset;
② The sum of consideration received from the transfer, and the accumulative amount of the changes in the fair values originally
recorded in the owners’ equities (in the case that the financial asset involved in the transfer is an available-for-sale financial asset).
B. For partial transfers of financial assets that meet the recognition conditions of termination in recognition, the book value of the
whole financial assets are spitted into the derecognized portion and the derecognized portion according to their respective relative fair
values (under this situation, the retained service assets are deemed as a part of the exterminated financial assets), and the difference
between the following two items shall be recorded in the current profit or loss:
① Book value of the derecognized portion;
② The sum of the consideration of the derecognized portion and the accumulated changes in fair value previously recognized in the
owners’ equity related to the derecognized portion (in the case that the assets transferred are available-for-sale financial assets).
For transfers of financial assets that do not meet the conditions of termination in recognition, the financial assets remain recognition
and the consideration received is recognized as financial liabilities.
(4) Derecognized condition of financial liabilities
If the existing obligations of financial liabilities have been discharged in whole or in part, then the Company will derecognize such
financial liability or part thereof.
If all or part of the financial liabilities is derecognized, the difference between the book value of the derecognized financial liabilities
and payment will be charged into current profit or loss.
(5) Recognition method of the fair value of financial assets and liabilities
For financial assets or financial liabilities measured at fair value by the Company, the Company will use all or part of the quotations
in the market (or use valuation techniques) as their fair values.
(6) Withdrawal of impairment provision of financial assets (excluding accounts receivable)
A. Impairment of available-for-sale financial assets:
46
2012 Interim Report of Wuhan Boiler Company Limited
If at the year end the fair values of the available-for-sale financial assets decline significantly, or the trend of the decline is expected
to be non-temporary after consideration of all relevant factors, the assets are deemed impaired and impairment loss is recognized
together with the amount transferred from the accumulated decreases in fair values previously recognized in the owners’ equity.
B. Impairment of held-to-maturity financial assets and loans:
For held-to-maturity investments and loans, if there is objective evidence on the incidence of impairment, then the impairment loss
will be calculated and recognized according to the difference between the book value and the present value of estimated future cash
flows.
(7) As for event about reclassifying the undue held-to-maturity investment into available-for-sale financial
assets, the Company shall state the basis of changes in holding purpose or ability
Not applicable.
10. Recognition standards and withdrawal method of bad debt provision for accounts receivable
Receivables (including accounts receivable and other receivables etc) are recognized at contract or agreement price. Receivables
which are irrecoverable due to i) debtor’s bankruptcy or liquidation; ii) death of debtor which resulted in insolvency; iii) long
overdue, shall be classified as bad debt loss after going through approval procedures. In case the Company transfers or mortgages or
discounts receivables to financial institutes like bank, according to the terms in relevant agreements when debtors cannot pay back
the amount due and if the Company has the obligation to pay back the financial institutes, this receivables should be treated as
mortgage loan; if the Company has no obligation to pay back the financial institutes, this receivables should be treated as
transference and recognize the loss and gain arising from the transference. When the receivables are recovered, the difference
between the amount recovered and book value of receivables is charged in the current profit and loss.
(1) Bad debt provision for individually significant accounts receivable
Judgement basis or monetary standards of provision for bad debts of Top 5 of account receivables at year end
the individually significant accounts receivable
The impairment test is carried on individually for each
individually significant receivable.
A. If there are substantive evidences indicated that a
receivable has been impaired, it should make a provision for
Method of individual provision for bad debts of the individually
bad debts.
significant account receivable
B. If a receivable is found not to be individually impaired,
it should be included in a group of similar credit risk
characteristics receivables and make a collective assessment
of impairment.
(2) Accounts receivable for which bad debt provisions are made on the group basis
Withdrawal method of bad
Name of group debt provision on the group Recognition basis of group
basis
Besides the receivables which are individually impaired, the
Company determines measurement of bad debt provision for
groups of receivables on the basis of analyzing actual situation,
Group A Aging analysis method
and assessing the same or similar actual impairment rate of
groups of receivables with similar credit risk characteristics,
which divided by aging analysis in previous periods
Receivables with confirmed letter credit or guarantee from the
Group B No bad debt provision bank and provision for sales tax which is to be paid as stipulated
in contract are not classified as provision for bad debts
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Aging of receivables Proportion of Accounts receivables (%) Proportion of Other receivables (%)
Within 1 year (including 1 year) 3% 3%
3% 3%
1-2 years
6% 6%
2-3 years
Over 3 years
47
2012 Interim Report of Wuhan Boiler Company Limited
20% 20%
3-4 years
20% 20%
4-5 years
100% 100%
Over 5 years
In the groups, adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
In the groups, adopting other methods to withdraw bad debt provision
√ Applicable □ Inapplicable
Name of Group Remark
Receivables with confirmed letter credit or guarantee from
the bank and provision for sales tax which is to be paid as
Group B: No bad debt provision
stipulated in contract are not classified as provision for bad
debts
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
individually
Reason of individually withdrawing bad debt provision:
If there are substantive evidences shown there is a special impairment of insignificant receivables, then they need individually
impairment tests.
Withdrawal method for bad debt provision: Measurement of the percentage of bad debts provision is based on current situation.
11. Inventory
(1) Classification of inventories
Inventories include goods purchased raw materials, finished goods, work-in-progress, and goods for processing on consignment.
(2) Pricing method for distributed inventories
□ First-in first-out method √ Weighted average method □ Specific identification method □ Other
Raw materials and circulating materials are measured at actual cost method. The moving weighted average method shall be used
when sending out these materials. Finished goods and work-in-progress are measured at actual cost which is allocated according to
the job reference.
(3) Recognition basis of net realizable value of inventories and withdrawal method for impairment
provision of inventories
At the end of the year, after overall check of the inventory, draw or adjust provision for inventory devaluation according to the lower
of the cost of inventory and net realizable values of inventory.
In normal operation process, net realizable values of commodities inventories for direct sales including finished goods, commodities
and materials for sales are determined by the estimated selling prices minus the estimated selling expenses and relevant taxes and
fees; In normal operation process, net realizable values of materials that need further processing are determined by the estimated
selling prices of the finished goods minus estimated cost to completion, estimated selling expenses and relevant taxes. For the
inventory held to implement sales contract or work contract, its net realizable value is calculated on the basis of contract price. For
the balance of inventory beyond the amount of the sales contract, its net realizable value is calculated on the basis of general selling
price.
Provision for inventory devaluation is provided for based on individual inventory item at end of the period. For inventory that has
large quantity and low unit price, the provision for inventory devaluation is provided for based on categories of the inventory. For
inventory related to the products manufactured and sold in the same district, with same or similar use or purpose, and difficult to
account for separately from other items, the provision for inventory devaluation is provided for on a consolidated basis.
When the factors that influence the decreased bookkeeping of inventory value have disappeared, switch back from the provision for
inventory devaluation amount that previously appropriated and the amount that switched back is charged to profit or loss of current
period.
(4) Inventory system of inventories
√ Perpetual inventory system □ Periodic inventory system □ other
(5) Amortization method of low-value consumption goods and packages
Low-value consumption goods
48
2012 Interim Report of Wuhan Boiler Company Limited
Amortization method: lump-sum amortization method
Packages
Amortization method: lump-sum amortization method
12. Measurement of construction contracts
Construction contracts are measured at the actual cost, including the direct and indirect costs incurred and attributable to a contract
for the period from the date the contract is signed to the final completion of the contract. The construction contract in progress should
be presented in the balance sheet at the net amount of payment amount after deducting the sum of the accumulated costs occurred and
the accumulated margin profit (loss) recognized. The excess of the sum of the accumulated costs occurred and the accumulated
margin profit (loss) recognized over the payment amount should be presented as inventory. The excess of the payment amount over
the sum of the accumulated costs occurred and the accumulated margin profit (loss) should be presented as advanced from customers.
Costs such as travelling expenses and tender charges incurred relating to the signing of the contract should be included as contract
costs when the contract is acquired, where the costs could be recognized individually and measured reliably and the contract is
probably signed; otherwise it should be charged into the profit and loss for the period.
13. Long-term equity investment
(1) Recognition for initial cost
A. Long-term equity investment caused by the enterprise merger
In case the long-term equity investment are made to obtain the equities of the enterprises under the common control and the
Company pays the cash, transfers the non-cash assets or bears the liabilities as the consideration for the merger, the book value share
on the merging date to obtain the owners’ equities of the merging party will be deemed as the initial investment cost of long-term
equity investment. The difference between the initial investment cost of long-term equity investment and paid cash, transferred
non-cash assets and book values of liabilities will be supplemented by the capital reserve; in case the capital reserve is not enough,
the remaining gains will be adjusted. In case the Company issues the equity securities as the merger consideration, the book value
share on the merging date to obtain the owners’ equities of the merging party will be deemed as the initial investment cost of
long-term equity investment. If the book value amount of the issued shares is deemed as the capital, the difference between the initial
investment cost of long-term equity investment and the book value amount of the issued shares will be supplemented by the capital
reserve; in case the capital reserve is not enough, the remaining gains will be adjusted. All direct expenses related to the enterprise
merger, including the auditing expense, evaluation expense, legal service expense, etc will be accrued to the current profit or loss.
In case the long-term equity investment are made to obtain the equities of the merging enterprises which are not under the common
control, the consolidation cost determined according to ‘Accounting Standard for Business Enterprises No. 20 – Business
Combinations’ on the purchase date will be deemed as the initial investment cost.
B. Other types of long-term equity investment
In case the long-term equity investment is made by cash payment, the actual payment amount will be deemed as the initial
investment cost.
In case the long-term equity investment is made by issuing the equity securities, the fair values of issued equity securities will be
deemed as the initial investment cost.
For the long-term equity investment made by the investors, the values agreed in the investment contracts or agreements (deducting
the cash dividends or profits that have been declared but have not been dismissed) will be deemed as the initial investment cost,
except that the contracts or agreements provide that the values are not fair.
In case the long-term equity investment is made by exchanging the non-currency assets, and this exchange has the commercial
substance and the fair values of exchanged assets can be reliably calculated, the fair values of assets surrendered will be deemed as
the initial investment cost, unless there is conclusive evidence that the fair values of assets received are more reliable; for exchange
of non-currency assets that do not satisfy the above conditions, the sum of book value of assets surrendered and relevant taxes
payable will be deemed as the initial investment cost.
In case the long-term equity investment is made by the mode of liability restructure, the fair values of the obtained equities will be
deemed as the initial investment cost.
(2) Subsequent measurement and recognition of gains and losses
When the Company is able to exercise significant influence or joint control, the difference of cost of initial investment in excess of
the proportion of the fair value of the net identifiable assets in the invested companies is not adjusted against the initial cost of
long-term equity investment. The difference of cost of initial investment in short of the proportion of the fair value of the net
identifiable assets in the invested companies is charged into the current profit or loss statement. .
The Company’s long-term equity investments in subsidiaries are accounted for by the cost method and adjusted according to the
equity method when preparing consolidated financial statements. When the Company has neither joint control nor significant
influence in the invested companies, there is no quotation available on the active market, and the fair value of the investment cannot
be reliably measured, the long-term equity investment is accounted for under the cost method.
When the Company has joint control or significant influence over the invested companies, the long-term equity investment is
accounted for under the equity method.
For profit or loss of internal transactions occurred among the Company and joint ventures, the proportion attributable to the Company
will be calculated according to shareholdings and offset in the application of equity method.
Recognition of share of losses of the invested companies under the equity method is treated in the following steps:
49
2012 Interim Report of Wuhan Boiler Company Limited
First, reduce the book value of the long-term equity investment. Second, when the book value is insufficient to cover the share of
losses, investment losses are recognized up to a limit of book values of other long-term equity which form net investment in
substance by reducing the book value of long term receivables, etc. Finally, after all the above treatments, if the Company is still
responsible for any additional liabilities in accordance with the provisions stipulated in the investment contracts or agreements,
estimated liabilities are recognized and charged into current investment loss according to the liabilities estimated.
If the invested company achieve profit in subsequent periods, the treatment is in the reversed steps described above after deduction of
any unrecognized investment losses, i.e., reduce book value of estimated liabilities recognized, restore book values of other long-term
equity which form net investment in substance, and in long-term equity investment, and recognize investment income at the same
time.
Treatment of other equity changes except for net profit or loss in the invested companies: For other equity changes except for net
profit or loss in the invested companies, if the proportion of investments remain unchanged, the Company calculates the proportion it
shall enjoy or bear and adjust book value of long-term equity investment, and increase or decrease capital reserves – other capital
reserves at the same time.
(3) Recognition basis of jointly control and significant influence in invested units
If, in accordance with provisions in the contracts, the Company enjoys joint control over certain economic activities only when
taking part in significant financial and operational decisions with investors in need of share of control who unanimously agree, the
Company is deemed to enjoy joint control with other parties over the invested companies. If the Company is authorized to take part
in decision making with regard to the financial and operational policies, but is unable to control or control jointly with other parties
over the invested company, the Company is deemed to be able to exercise significant influence over the invested companies.
(4) Impairment test method and withdrawal method for impairment provision
A. In case the cost method is used to calculate the long-term equity investments which are not quoted in the active market or whose
fair values cannot be reliably calculated, the depreciation loss will be determined based on the difference between the book values
and current values determined by the discounting of future cash flow in line with the current market return rate of similar financial
assets.
B. For other long-term equity investments, in case the calculation results of receivable amounts indicate that the receivable amount of
this long-term equity investment is less than their book values, the difference will be confirmed as the asset depreciation losses.
Once the depreciation loss of long-term equity investment is confirmed, they will not be reversed.
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to others, or for administrative
purposes; they have useful lives over one fiscal year. And they shall be recognized only when both of the following conditions are
satisfied:
A. It is probable that economic benefits associated with the assets will flow to the enterprise; and
B. The cost of the fixed assets can be measured reliably.
(2) Recognition basis and pricing method for fixed assets acquired under finance lease
The Company identifies a lease of asset as finance lease when substantially all the risks and rewards incidental to legal ownership of
the asset are transferred.
A fixed asset acquired under finance lease shall be valued at the lower of the fair value of the leased asset and the present value of the
minimum lease payments at the inception of lease.
The depreciation method of fixed assets acquired under finance lease is consistent with that for depreciable assets owned by the
Company. If the Company can reasonably confirm that it will obtain the ownership of leased asset at the end of lease term, the leased
asset shall be depreciated during the useful life of the leased asset. If the Company cannot reasonably confirm that it will obtain the
ownership of leased asset at the end of lease term, the leased asset shall be depreciated during shorter of the useful life of the leased
asset and the lease term.
(3) Depreciation methods of fixed assets
The categories Estimated useful life (years) Residual value (%) Annual depreciation rate (%)
Houses and buildings 40 0 2.50
Machineries 7-20 0 14.29-5.00
Electronic equipment and office
3-18 0 33.33-5.56
equipment
Vehicles 6 0 16.67
Other equipments
Fixed assets acquired under
-- -- --
finance lease
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2012 Interim Report of Wuhan Boiler Company Limited
Of which: houses and buildings
Machineries
Electronic equipment
Vehicles
Other equipments
(4) Impairment test method and withdrawal method for impairment provision of fixed assets
At balance sheet date, the Company judges if there is indication to the impairment. If the indications like continuing decrease in the
fixed assets values, or obsolete technologies, damages, long-idle extra exist, net realizable value must be estimated. When net
realizable value of the fixed asset is lower than its book value, reduce fixed asset’s book value to its net realizable value. The reduced
amount is recognized as fixed asset impairment and charged to current period of profit and loss, and fixed asset impairment must be
provided accordingly. Once fixed asset impairment loss is recognized, it cannot be reversed in future accounting period.
(5) Other explanations
Subsequent expenditures of fixed asset shall be recognized as the cost of fixed assets if the expenditures can bring in economic
benefit to the Company and the expenditures can be measured reliably. If the expenditures are to replace part of fixed asset, it should
deduct the fixed asset’s book value; otherwise it is charged to current period profit and loss.
15. Construction in progress
(1) Categories of construction in process
Construction in progress of the Company includes constructing property, building installation, equipment installation, prepaid
expenses, as well as individual projects.
(2) Standards and time of transferring construction in process into fixed asset
For the construction in progress, all expenses occurring before they are ready for the use will be the book values as the fixed assets.
In case the construction in progress has been ready for use but the final accounts for completion have not been handled, from the date
when such projects has been ready for use, the Company will evaluate the values and determine the costs based on the project
budgets, prices or actual costs of projects, etc and the depreciation amount will also be withdrawn; when the final accounts for
completion are handled, the Company will adjust the originally evaluated values subject to the actual costs, but will not adjust the
withdrawn depreciation amount.
(3) Impairment test method and withdrawal method for impairment provision of construction in process
At balance sheet date the Company exams all the construction in progress to judge if there is indication of impairment. If indications
exist: i) long suspension of construction in progress and will not recommence in future 3 years; ii) project under construction has no
advantages in technologies and capacity and the economic benefit brought to the Company is uncertain, the net realizable value
should be estimated. If the net realizable value of construction in progress is lower than its book value, reduce its book value to net
realizable value, the reduced amount is recognized as impairment loss and charged to current period profit and loss, and the
construction in progress impairment is provided accordingly. Once impairment provision of construction in process is recognized, it
should not be reversed in future accounting period.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
In case the borrowing expenses occurring in the Company may directly be attributable to the construction and productions of assets
complying with the capitalization conditions, they will be capitalized and accrued to the relevant capital costs; other borrowing
expenses will be confirmed as the expenses based on the actual amount at the time of occurrence and accrued to the current profit or
loss.
The assets complying with the capitalization conditions mean the assets such as fixed assets, investment real estates and inventory,
etc that need a long time of construction and production activities before they are ready for use or for sales.
The borrowing expenses begin to be capitalized under the following circumstances:
A. The asset payment have been made which include the payment such as the paid cashes, transferred non-currency assets or borne
liabilities with the interests to construct or produce the assets complying with the capitalization conditions;
B. The borrowing expenses have occurred;
C. The necessary construction or production activities to make the assets ready for use or sales have been launched.
In case during the construction or production period the assets complying with the capitalization conditions are abnormally
suspended and the suspension period exceeds 3 months continuously, the capitalization of borrowing expenses will also be
suspended.
The capitalization of borrowing expenses for the assets that have been constructed or produced and are ready for use or sales will be
stopped.
When parts of the purchased assets or assets whose production satisfies the capitalization conditions are completed respectively and
can be used individually, the capitalization of the borrowing expenses of these parts will be stopped.
(2) Capitalization period of borrowing costs
The capitalization period means the period from the moment that the borrowing expenses start to be capitalized to the moment that
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2012 Interim Report of Wuhan Boiler Company Limited
the capitalization is stopped, which does not include the period that the capitalization of borrowing expenses is suspended.
(3) Period for suspending capitalization of borrowing costs
Capitalization of borrowing costs should be suspended during periods in which the acquisition or construction is interrupted
abnormally, and the interruption period is three months or longer. These borrowing costs should be recognized directly in profit or
loss during the current period. However, capitalization of borrowing costs during the suspended periods should continue when the
interruption is a necessary part of the process of bringing the asset to working condition for its intended use.
Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed is substantially ready for its
intended use. Subsequent borrowing costs should be expensed off during the period in which they are incurred.
(4) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of
borrowing costs eligible for capitalization on that asset is determined as the actual borrowing costs incurred on that borrowing during
the period less any investment income on the temporary investment of the borrowing.
To the extent that funds are borrowed generally and used for the purpose of acquiring or constructing a qualifying asset, the amount
of borrowing costs eligible for capitalization shall be determined by applying a capitalization rate to the weighted average of excess
of accumulated expenditures on qualifying asset over that on specific purpose borrowing. The capitalization rate is the weighted
average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than
borrowings made specifically for the purpose of acquiring or constructing a qualifying asset.
17. Intangible assets
(1) Pricing method of intangible assets
Intangible asset is measured initially at actual cost when it is acquired. Acquisition costs of intangible asset include purchase cost,
related taxes and attributable costs which are incurred to make the intangible asset reach intended useful condition. For those the
price of intangible assets deferred paid exceed normal credit condition so substantively has financing character, the cost of intangible
assets is confirmed on the basis of present value of purchasing price.
(2) Estimated useful life of intangible assets with finite useful life
For intangible asset with finite useful life, the Company estimates useful life of intangible useful life upon acquisition and amortize it
systematically among the useful life, the amortized amount is charged to current period profit and loss based on benefited item, and
the specific amortized amount is cost after estimated residual value. The accumulated impairment provision should be deducted for
intangible asset with impairment provision and residual value is zero, except that: i) third party commits to purchase the intangible
asset; ii) estimated residual value of intangible asset can be obtained from the active market and the existence of the market at the end
of useful life of the intangible asset is probable.
Item Estimated useful life Basis
Software 3 years Based on the cycle of software update
Proprietary technology 6 years -15 years Contract
Land use right 50 years Law, useful life for industry land is 50 years
(3) Judgment basis of intangible assets with uncertain useful life
For intangible asset with infinite useful life, the Company reviews the useful life and amortization method of intangible asset. The
amortization period and amortization method are changed when useful life and amortization method are different from pervious
estimation.
(4) Withdrawal of impairment provision of intangible assets
Net realizable value is estimated when the indications of impairment exist:
A.The Company estimates net realizable value based on single intangible asset when there is indications of impairment for that single
intangible asset;
B.The Company estimates net realizable value base on the asset group when it is difficult to estimate net realizable value of single
intangible asset;
C. Net realizable value is the higher amount between the net amount of intangible asset fair value minus disposal expenses and
estimated present value of future cash flow.
When net realizable value is lower than its book value, reduce the book value to net realizable value, the deducted amount is
recognized as impairment loss and charged to current period profit and loss, impairment is provided accordingly.
18. Amortization method of long-term deferred expenses
A. Long-term deferred expenses refer to the expenses which ought to be allocated in current period and future periods.
B. Long-term deferred expenses are measured at initial costs, commencement costs are charged to current period profit and loss when
incurred; installation expenses of operating leased fixed asset are allocated evenly during the leasing period or 5 years which ever is a
lower, other long-term deferred expense are allocated evenly during the benefited period based on project. Those long-term deferred
expenses which cannot generate economic benefit in future accounting period are charged to current period of profit and loss.
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2012 Interim Report of Wuhan Boiler Company Limited
19. Estimated liabilities
Estimated liabilities are recognized i) when the Company is involved in litigation or debt warrant, lost making contract or
restructuring event; ii) it is possible to pay asset or render service in foreseeable future; iii) the amount can be measured reliably.
(1) Criteria of estimated liabilities
When businesses related to external security, pending litigation or arbitration, product quality assurance, retrenchment plan, contract
of loss, reconstruction obligation, disposing obligation of fixed assets and other contingencies satisfy all the following conditions, the
Company will recognize them as liabilities:
A. The obligation is the present obligation of the Company;
B. The performance of such obligation is likely to lead to an outflow of economic benefits;
C. The amount of the obligation can be reliably measured.
(2) Measurement of estimated liabilities
Estimated liabilities shall be initially measured according to the best estimated amount required to be paid when current obligations
are fulfilled.
When determining the best estimated amount, it should take full consideration of the risks, uncertainties and time value of money
related to contingencies.
Best estimated amount is handled under the following circumstances:
A. If the amount required is in a continuous range, and the likelihood of various outcomes within the scope is same, then the
estimated amount is determined according to the median of the range, that is the average amount of upper and lower caps.
B. If the amount required isn’t in a continuous range, or there isn‘t such a continuous range but the likelihood of various outcomes
within the scope isn’t same, such as the contingency involves a single item, then the best estimated amount is determined in
accordance with the amount with most likelihood; if the contingency involves several items, then the best estimated amount is
determined according to various possible outcomes and associated probabilities.
If expenses required to settle all or part of estimated debt are expected to be compensated by a third party, then the amount of
compensation will be separately recognized as an asset upon basically being identified to be received, and the amount of
compensation recognized will not exceed the book value of projected liabilities.
20. Revenue
(1) Criteria for recognition time of revenue from sale of goods
The Company recognises revenue from sale of goods when all the following conditions have been satisfied:
A.The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
B.The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective
control over the goods sold;
C.The relevant amount of revenue can be measured reliably; and
D.The economic benefits associated with the transaction will flow to the Company;
E.The relevant amount of costs can be measured reliably
The collection method of contract or agreement adopts deferred method, it has financing character, the revenue is determined at the
fair value of contract price.
The timing to recognize revenue: for domestic sales revenue is recognized upon goods received and goods receipt note signed by
customer; for overseas sales revenue is recognized upon custom declaration vouch issued by custom.
(2) Recognition basis of revenue from transferring use rights of assets
Revenue arising from the use by others of the Company’s assets includes interest revenue and royalty revenue. The Company
recognized revenue arising from the use by others of the Company’s assets when (a) it is probable that the economic benefits
associated with the transaction will flow to the Company and (b) the amount of the revenue can be measured reliably.
(3) Recognition basis and method for the schedule of contracted project when recognizing the revenue from
providing labour services and construction contract by percentage-of-completion method
The Company adopts percentage-of-completion method which is calculated based on accumulated costs incurred divided by
estimated total costs in order to determine the percentage-of-completion of contracted project. At balance sheet date The Company
recognizes project revenue by contract price times percentage-of-completion then deducts the accumulated revenue recognized in
previous accounting periods. And project costs are recognized by estimated project total costs time percentage-of-completion then
deduct accumulated project costs recognized in previous accounting periods.
When project outcome can not be estimated reliably at balance sheet date, it shall be handled:
A. When incurred project costs can be recovered, project revenue shall be recognized based on costs incurred and project costs are
recognized accordingly;
B. When incurred project costs can not be recovered, project revenue shall not be recognized and project costs shall be charged to
current period profit and loss.
21. Accrued costs
The Company accrues warranty cost at 0.5% of total contract revenue pro-rate for the first 12-month warranty period and additional
0.25% pro-rate for each subsequent 12-month period and charges it into cost of sales for the period.
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2012 Interim Report of Wuhan Boiler Company Limited
22. Government grants
(1) Types
A government subsidy means the monetary or non-monetary assets obtained free by the Group from the government, but excluding
the capital invested by the government as the owner of the enterprise. Government subsidies consist of the government subsidies
pertinent to assets and government subsidies pertinent to income.
(2) Accounting treatment method
If a government grant pertinent to non-monetary asset, the non-monetary asset shall be recognized as deferred revenue, evenly
distributed within the useful life of the relevant assets and included in the current profits and losses from the point that the asset
reaches its intended use condition. If the relevant asset is sold or transferred or disposed or damaged before the end of its useful life,
the balance of deferred revenue shall be charged to current period. If a government grant pertinent to monetary asset and to
compensate the relevant expenditures or losses to be incurred in future periods, it shall be recognized as deferred revenue and
charged to current period profit and loss when the relevant expenditures or losses are recognized; if a government grant is to
compensate expenditures or losses already incurred, it shall be charged to current period profit and loss upon received.
23. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
Where there are deductible temporary differences between the carrying amount of assets or liabilities in the balance sheet and their
tax bases, a deferred tax asset shall be recognized for all those deductible temporary differences to the extent that it is probable that
taxable profit will be available against which the deductible temporary difference can be utilized.
(2) Recognition basis of deferred income tax liabilities
Deferred tax liability shall be recognized for all taxable temporary differences, which are differences between the carrying amount of
an asset or liability in the balance sheet and its tax base, and measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled.
24. Hedging accounting
The company uses fair value hedging for its hedging.
(1) For derivative instruments as the hedging instrument, the profit or loss resulted from the changes of fair value is included in the
profit/loss of the current period; for non-derivative instruments as the hedging instrument, the profit or loss resulted from the change
of book value due to foreign exchange rate is included in the profit/loss of the current period.
(2) The profit or loss resulted from the hedged risk of the hedged items is included in the profit/loss of the current period. The book
value of the hedged items is adjusted at the same time.
(3) In a fair value hedging of a firm commitment of a purchased asset or assumed liability, the accumulated amount in the change
of fair value (profit or loss being confirmed) caused by the hedging risk of this firm commitment should be used to adjust the initial
confirmed amount of the purchased assets of assumed liability of the firm commitment.
(4) When the following conditions are satisfied, the company stop using the fair value hedging:
A. Hedging instruments expired, sold, contract terminated or executed.
B. The hedge can no longer satisfy the conditions in using the method of hedging accounting.
C. Cancellation of the designation of the hedging.
25. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the report period?
□ Yes √ No
(1) Change of accounting policies
Were the main accounting policies changed during the report period?
□ Yes √ No
(2) Change of accounting estimates
Were the main accounting estimates changed during the report period?
□ Yes √ No
26. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the report period?
□ Yes √ No
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the report period?
□ Yes √ No
(2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the report period?
□ Yes √ No
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2012 Interim Report of Wuhan Boiler Company Limited
27. Other main accounting policies and estimates as well as compilation method of financial statements
None
(V) Taxation
1. Main taxes and tax rates
Category of taxes Tax basis Tax rate
VAT Taxable revenue 17%
Consumption tax
Business tax Taxable revenue 5 ％
Urban maintenance and construction tax Taxable VAT, taxable business tax 7 ％
Enterprise income tax Taxable income 25 ％
Education surtax Taxable VAT, taxable business tax 3 ％
Local education surtax Taxable VAT, taxable business tax 2 ％
The income tax rates adopted by each subsidiary and branch factory
Subsidiary Wuhan Lanxiang Power Environmental Protection Technology Co.,.Ltd has ceased operating, there was no taxable profit
during the report period.
2. Tax preference and official documents
3. Other explanation
(VI) Business combination and consolidated financial statements
General instruction of business combination and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
55
2012 Interim Report of Wuhan Boiler Company Limited
Unit: RMB Yuan
Balance of
parent
company’s
equity after
The deducting the
Actual The
Other proportion proportion Included in Deductible difference
Registered Business Registered amount of Minority
Subsidiaries Type Business scope essential of holding of voting consolidated minority that loss of
place nature capital investments at interest
investment shares statement interests minority
the period-end rights %
） （
%
） （ interests
exceed equity
obtained by
minority
shareholders
Boiler, energy
environmental
protection
products, Steel
structures,
technology
research of heat
energy products
and its accessorial
equipment, design,
technical
Wuhan Lan Consultancy,
Xiang Power technical service,
586 sales of developed
Environmental Limited
Wuluo
Protection liability Manufacturing 20,000,000.00 products, energy 24,984,500.00 95% 95% Yes 1,722,113.36 0.00 0.00
Rd., project
Technology Company
Wuhan (non-construction
Company
Limited project)
Gas-steam
Combined Cycle
Heat Recovery
Boiler, Circulating
fluidized bed
Boiler, Production
and sale of the
boiler’s
components and
the energy saving
Other notes to subsidiaries obtained by establishment and investment: none.
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2012 Interim Report of Wuhan Boiler Company Limited
2. Special purpose entities or operating entities with control right formed by entrusted operation or lease
□ Applicable √ Inapplicable
Other explanation on special purpose entities or operating entities with control right formed by entrusted operation or lease:
3. Explanation on changes in consolidated scope
Explanation on changes in consolidated scope:
√ Applicable □ Inapplicable
In May 2012, business registration certificate of Wuhan boiler BoYu Industrial Co., Ltd was formally cancelled, therefore it is no
longer included in the consolidation scope at the end of reporting period.
4. The changes of consolidated scope in the report period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that newly
included in the consolidated scope
Unit: RMB Yuan
Name Net asset at period-end Net profit in the period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that not
longer included in the consolidated scope
Unit: RMB Yuan
Net profit from period-begin to
Name Net asset on disposal date
disposal date
Wuhan Boiler Boyu Industrial Co.,Ltd 5,673,540.76 0.00
Other notes to changes in consolidated scope:
In May 2012, business registration certificate of Wuhan boiler BoYu Industrial Co., Ltd was formally cancelled; therefore it is no
longer included in the consolidation scope at the end of reporting period.
(VII) Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Closing balance Opening balance
Item Amount in foreign Exchan Amount in Exchange
Amount in RMB Amount in RMB
currency ge rate foreign currency rate
Cash: -- -- 0.00 -- -- 0.00
RMB -- -- -- --
Bank deposit: -- -- 19,040,077.95 -- -- 20,388,030.03
RMB -- -- -- --
USD 4,407.37 6.3249 27,876.17 4,409.68 6.3009 27,784.95
EUR 26,160.38 7.871 205,908.34 45,601.99 8.1625 372,226.25
JPY 54.00 0.0796 4.30 2.00 0.0811 0.16
Other monetary funds: -- -- 2,611,345.57 -- -- 2,611,211.99
RMB -- -- 2,611,345.57 -- -- 2,611,211.99
Total -- -- 21,651,423.52 -- -- 22,999,242.02
Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen, deposited overseas or with
potential collecting risks:
Other monetary funds were bill guarantee deposit, no funds is with limited use or potential risk of collection back due to mortgage or
frozen.
2. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance 9,700,000.00 30,800,000.00
Total 9,700,000.00 30,800,000.00
57
2012 Interim Report of Wuhan Boiler Company Limited
(2) Notes receivable pledged at period-end
None
(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or
agreement, and undue notes endorsed to other parties at the end of the period
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- --
Note:
Undue notes endorsed to other parties (Top 5)
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Fuan Central South
Electric Motor Co.,Ltd 2012/3/22 2012/9/22 5,000,000.00
Gansu Diantou Jinchang
Generating Co.,Ltd 2012/5/24 2012/11/23 2,300,000.00
Gansu Diantou Jinchang
Generating Co.,Ltd 2012/5/24 2012/11/23 2,000,000.00
Gansu Diantou Jinchang
Generating Co.,Ltd 2012/5/24 2012/11/23 2,000,000.00
Gansu Diantou Jinchang
Generating Co.,Ltd 2012/5/24 2012/11/23 2,000,000.00
Total -- -- 13,300.000.00 --
Note:
The closing balance of notes receivable decreased 68.51% as compared to last year, mainly due to endorsement to settle vendors’
payments.
3. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable with
significant single amount
31,160,000. 8,542,474.9 62,049,07 14,302,475.0
and individually 7.15% 27.41% 10.3% 23.05%
00 9 8.35 0
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
Group A (using aging 316,143,56 120,547,95 425,648,4 139,555,835.
analysis) 72.5% 38.13% 70.68% 32.79%
0.79 9.51 17.47 03
Group B (No bad debt
15,455,137.
provision for account 3.54%
30
receivables)
331,598,69 120,547,95 425,648,4 139,555,835.
Subtotal of the groups 76.04% 38.13% 70.68% 32.79%
8.09 9.51 17.47 03
Accounts receivable with
insignificant single
73,281,854. 47,064,154. 114,547,6 77,176,541.9
amount and individually 16.81% 64.22% 19.02% 67.38%
60 60 41.91 1
withdrawn bad debt
provision
436,040,55 176,154,58 602,245,1 231,034,851.
Total -- -- -- --
2.69 9.10 37.73 94
Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision
√ Applicable □ Inapplicable
58
2012 Interim Report of Wuhan Boiler Company Limited
Item Closing balance Bad debt provision Proportion Note
Difficult to collect
Guodian Lanzhou Thermopower Co., Ltd. 31,160,000.00 8,542,474.99 27.41%
due to quality issue
Total 31,160,000.00 8,542,474.99 --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Closing balance Opening balance
Balance Balance
Aging of receivables
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Within 1 year (including 1 year)
including ： -- -- -- -- -- --
Within 1 year (including
108,328,518.42 34.27% 3,278,905.51 153,994,058.92 36.18% 4,619,821.77
1 year)
Sub-total (Within 1 year) 108,328,518.42 34.27% 3,278,905.51 153,994,058.92 36.18% 4,619,821.77
1-2 years(including 2
52,911,443.56 16.74% 1,587,865.17 5,654,629.94 1.33% 169,638.90
year)
2-3 years(including 3
113,100.00 0.04% 6,786.00 76,422,460.00 17.95% 4,585,347.60
year)
Above 3 years 154,790,498.81 48.95% 115,674,402.83 189,577,268.61 44.54% 130,181,026.76
3-4 years(including 4
30,132,555.28 9.52% 6,026,511.06 53,323,414.86 12.53% 10,664,682.98
year)
4-5 years(including 5
18,762,558.22 5.93% 3,752,511.65 20,921,887.46 4.92% 4,184,377.49
year)
Above 5 years 105,895,385.31 33.5% 105,895,380.12 115,331,966.29 27.09% 115,331,966.29
Total 316,143,560.79 -- 120,547,959.51 425,648,417.47 -- 139,555,835.03
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
√ Applicable □ Inapplicable
Group name Closing balance Bad debt provision
No bad debt provision for account receivables 15,455,137.30 0.00
Total 15,455,137.30 0.00
Accounts receivable with insignificant single amount and individually withdrawn bad debt provision at the end of report period
√ Applicable □ Inapplicable
Company Closing balance Bad debt provision Proportion (%) Reasons for provision
Luoyang Golden Dragon Deduction for equipment
16,000.00 16,000.00 100%
Power Construction HQ maintenance
Shanxi Datang
Deduction for equipment
International Yungang 12,512,000.00 6,753,600.00 53.98%
maintenance
Thermal Power Co.Ltd
59
2012 Interim Report of Wuhan Boiler Company Limited
Retention is difficult to
Shandong Power No.3
2,091,395.00 2,091,395.00 100% collect due to the quality
Project Company (India)
issue
The Company is required
to bear part of the
Dongfang Xiwang
subsequent costs and thus
Baotou Xitu Aluminium 24,820,000.00 8,000,000.00 32.23%
the receivable amount is
Co., Ltd.
not expected to be fully
recoverable
Retention is difficult to
China Machine Import
4,086,723.05 4,086,723.05 100% collect due to the quality
and Export Company
issue
Retention is difficult to
China Machine Import
4,086,723.05 4,086,723.05 100% collect due to the quality
and Export Company
issue
Gansu Diantou Jinchang Retention is difficult to
2,678,000.00 580,000.00 21.66%
Generating Co.Ltd collect
The customer has
disputes over the contract
Wuhan Zhongjia Natural settlement and the
385,000.00 203,000.00 52.73%
Gas Compressor Co.Ltd receivable amount is not
expected to be fully
recoverable.
Datang Liaoyuan Power Deduction for equipment
Plant 10,245,000.00 10,245,000.00 100%
maintenance
Datang Liaoyuan Power Deduction for equipment
Plant 11,245,000.00 10,519,300.00 93.55%
maintenance
Dongfang Xiwang Retention is difficult to
Baotou Xitu Aluminium 960,000.00 326,400.00 34% collect due to the quality
Co., Ltd. issue
38,000.00 38,000.00 Deduction for equipment
Guiyang Crystal Co.,Ltd 100%
maintenance
118,013.50 118,013.50 Deduction for equipment
Anshan Xinli Co.,Ltd 100%
maintenance
Total 73,281,854.60 47,064,154.60 64.22% --
(2) Accounts receivable reversed or collected in the report period
Unit: RMB Yuan
Bad debt provision
Basis for bad Amount reversed or
Item Reason for reversed or collected before reversal or
debt provision collected
collection
Shanxi Hongdong Huashi Management took measures to
Thermopower Co., Ltd. Aging above 5
strengthen the collection and 4,807,084.45 4,807,084.45
years
increase collection efforts
Dongfang Electrics Group Management took measures to
Beijing Branch Aging above 5
strengthen the collection and 250,000.00 250,000.00
years
increase collection efforts
Shuangyashan Thermopower Management took measures to
Co.Ltd Aging above 5
strengthen the collection and 1,500,000.00 1,500,000.00
years
increase collection efforts
Shanxi Hexiang Project Management took measures to
Management Co., Ltd. Aging above 5
strengthen the collection and 3,439,000.00 3,439,000.00
years
increase collection efforts
Xinjiang Huadian Changji Management took measures to
Thermopower Company Aging above 5
strengthen the collection and 500,000.00 500,000.00
years
increase collection efforts
60
2012 Interim Report of Wuhan Boiler Company Limited
Shanxi Lu'an Yuwu Management took measures to
Thermopower Co., Ltd. Aging above 5
strengthen the collection and 500,000.00 500,000.00
years
increase collection efforts
Xinxiang Yuxin Generating Management took measures to
Co.,Ltd. Aging above 5
strengthen the collection and 1,300,000.00 1,300,000.00
years
increase collection efforts
Total -- -- 12,296,084.45 --
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount but
individually made impairment test at the end of report period:
Content of accounts Withdrawing proportion
Book balance Bad debt amount Reason
receivable % ） （
Total 0.00 0.00 -- --
Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics:
(3) The write-off accounts receivable
Unit: RMB Yuan
Nature of accounts Related party
Name of entity Write-off time Write-off amount Write-off reason
receivable transaction
Total -- -- 0.00 -- --
Notes to write off of accounts receivable
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting rights of
the Company
□ Applicable √ Inapplicable
(5)Information of top 5 accounts receivable:
Unit: RMB Yuan
The relationship with the
Company Amount Age Proportion
Company
Guodian Xian thermoelectric project
Non-affiliated 61,708,600.00 1-2 years 14.15%
preparatory office
ALSTOM Power Inc. Affiliated 44,355,218.42 Within 1 year 10.17%
Shanxi Zhenxing Group Non-affiliated 39,820,000.00 Above 5 years 9.13%
Shandong Weiqiao Aluminium Co., Ltd. Non-affiliated 35,000,999.99 1-2 years 8.03%
Guodian Lanzhou Thermopower Co., Ltd. Non-affiliated 31,160,000.00 1-2 years 7.15%
Total -- 212,044,818.41 -- 48.63%
(6)The amounts due from related parties
Unit: RMB Yuan
Company The relationship with the Company Amount Proportion
ALSTOM Power Inc A subsidiary of the ultimate holding company 44,355,218.42 10.17%
Wuhan Boiler (Group) Special Boiler
A subsidiary of the second largest shareholder 9,954,995.28 2.28%
Engineering Co., Ltd.
ALSTOM Boiler Deutschland GmbH A subsidiary of the ultimate holding company 121,143.57 0.03%
Total -- 54,431,357.27 12.48%
(7) Information of accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount
recognition
Total 0.00
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2012 Interim Report of Wuhan Boiler Company Limited
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount of
assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Period-end
Assets:
Subtotal of assets 0.00
Liabilities
Subtotal of liabilities 0.00
4. Other accounts receivable
(1)Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Balance Balance
Category debts debts
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Other accounts
receivable that is
26,673,222.3 26,673,222.3 26,673,222.3
individually significant 19.29% 100% 19.1% 26,673,222.30 100%
1 1 0
and provisions for bad
debts individually
Other accounts receivable that provisions for bad debts by group
Group A (using aging 85,332,569.0 85,239,498.1
analysis) 61.71% 7,854,175.42 9.2% 61.03% 7,124,402.55 8.36%
8 2
Group B (No bad debt
23,642,203.0 25,121,744.8
provision for account 17.1% 17.98%
8 2
receivables)
108,974,772. 110,361,242.
Subtotal of group 78.81% 7,854,175.42 9.2% 79.01% 7,124,402.55 8.36%
16 94
Other accounts
receivable that is
individually insignificant 2,636,308.95 1.9% 2,636,308.95 100% 2,636,308.95 1.89% 2,636,308.95 100%
but provisions for bad
debts individually
138,284,303. 37,163,706.6 139,670,774.
Total -- -- -- 36,433,933.80 --
42 8 19
Notes for categories of other accounts receivable:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√ Applicable □ Inapplicable
Item Closing balance Bad debt provision Proportion Note
Shanxi Zhenxing Group 6,722,635.47 6,722,635.47 100% Projects are suspended
Shandong Luneng and the amount is not
Material Group Co. 19,950,586.84 19,950,586.84 100% expected to be
Limited recoverable
Total 26,673,222.31 26,673,222.31 -- --
In the group, other accounts receivable that provision for bad debts by aging analysis:
√ Applicable □ Inapplicable
Closing balance Opening balance
Balance
Aging of receivables
Proportio Bad debt provision Proportio Bad debt provision
Amount Amount
n(%) n(%)
Within 1 year (including 1 year)
Including:
62
2012 Interim Report of Wuhan Boiler Company Limited
Within 1 year (including 1
6,755,276.27 7.92% 202,657.83 4,416,898.14 5.18% 132,506.94
year)
Sub-total (Within 1 year) 6,755,276.27 7.92% 202,657.83 4,416,898.14 5.18% 132,506.94
2,879,697.20 3.37% 86,390.92 4,580,229.37 5.37% 137,406.88
1-2 years(including 2 year)
54,102,803.27 63.4% 3,246,168.20 63,012,895.74 73.93% 3,780,773.75
2-3 years(including 3 year)
Above 3 years 21,594,792.34 25.31% 4,318,958.47 13,229,474.87 15.52% 3,073,714.98
21,594,792.34 25.31% 4,318,958.47 12,684,699.87 14.88% 2,536,939.98
3-4 years(including 4 year)
10,000.00 0.01% 2,000.00
4-5 years(including 5 year)
Above 5 years 534,775.00 0.63% 534,775.00
Total 85,332,569.08 -- 7,854,175.42 85,239,498.12 -- 7,124,402.55
In the group, other accounts receivable that provision for bad debts by balance percentage:
□ Applicable √ Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
√ Applicable □ Inapplicable
Group name Closing balance Bad debt provision
No bad debt provision for account receivables 23,642,203.08 0.00
Total 23,642,203.08 0.00
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√ Applicable □ Inapplicable
Company Closing balance Bad debt provision Proportion Reason
3RC Company Limited 336,604.05 336,604.05 100% Bankruptcy
Pingtai Power Development
424,514.70 424,514.70 100% Project suspended
Co.,LTD
Henan Dengfeng Xiangyang
32,430.77 32,430.77 100% Project suspended
Power Co.,Ltd
Qindao Houhai Themal Power
518,227.71 518,227.71 100% Project suspended
Co.,Ltd
Jiangsu Wangda Paper Co.,Ltd 723,504.31 723,504.31 100% Project suspended
Qingtongxia Aluminium
5,736.41 5,736.41 100% Project suspended
Co.,Ltd
Henan Zhongmai Power Difficult to execute the court judge
173,411.00 173,411.00 100%
Co.,Ltd
Shanmenxia Huineng Themal Difficult to execute the court judge
143,897.00 143,897.00 100%
Power Co.,Ltd
Shanxi Zhenxin Group Co.,Ltd 277,983.00 277,983.00 100% Difficult to execute the court judge
计合 2,636,308.95 2,636,308.95 100% --
(2) Information of other accounts receivable reversed or recovered in the report period
Unit: RMB Yuan
Reason for reversed or Basis for determination Accrued amount before Amount of reversed or
Other accounts receivable
recovered of provision reversal or recovery recovered
Total -- -- --
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable:
Accounts receivable Balance Bad debt provision Accrual percentage Reason
Total -- --
Notes of individually insignificant but was of big risk after grouped by credit risk other accounts receivable:
63
2012 Interim Report of Wuhan Boiler Company Limited
(3) Information of other accounts receivable written off in the report period
Unit: RMB Yuan
Whether arising from
Nature of other
Name of company Date of written off Amount Reason related-party
accounts receivable
transactions or not
Subsidiary
Wuyu Alloy Plant Loan 2012/06/30 504,775.00 cancelled, not No
recoverable
Wuhan Boiler Group Subsidiary
Power Machinery
Sale of goods 2012/06/30 30,000.00 cancelled, not No
Manufacturing recoverable
Co.,Ltd
Subsidiary
Wuhan Boiler Steel
Deposit 2012/06/30 10,000.00 cancelled, not No
Structure Plant
recoverable
Total -- -- 544,775.00 -- --
Notes of written-off of other accounts receivable:
In May 2012, the business registration certificate of Wuhan Boiler Boyu Industrial Co.,Ltd is cancelled, it is not included in the
consolidation scope at the end of the reporting period.
(4) Accounts receivable is due from shareholders with more than 5% (including 5%) of the voting shares of
the Company
√ Applicable □ Inapplicable
Closing balance Opening balance
Company
Amount Bad debt provision Amount Bad debt provision
Wuhan Boiler Group Co., Ltd. 64,030,488.11 5,355,117.11 64,030,488.11 4,586,848.27
ALSTOM (China) Investment Co., Ltd. 3,547,208.20 106,416.25 3,529,700.20 105,891.01
Total 67,577,696.31 5,461,533.36 67,560,188.31 4,692,739.28
(5) Nature or details of other significant accounts receivable
Unit: RMB Yuan
Nature or details of the
Name of company Amount Proportion of the total (%)
amount
compensation for the
Wuhan Boiler Group Co., Ltd. 64,030,488.11 relocation of the old 46.3%
factory
Total 64,030,488.11 -- 46.3%
Note:
(6)Information of top five other accounts receivable
Unit: RMB Yuan
Company The relationship with the Amount Aging Proportion of the
Company total (%)
The company's
Wuhan Boiler Group Co., Ltd 64,030,488.11 3-4 years 46.3%
second-largest shareholder
Shandong Luneng Material Group Co. Ltd Non-affiliated 25,659,390.26 2-3 years 18.56%
Donghu Development Zone Committee Non-affiliated 10,774,265.00 7.79%
Shanxi Zhengxin Group Co., Ltd. Non-affiliated 6,722,635.47 4.86%
Binzhou Beihai New Material Co.,Ltd Non-affiliated 4,068,376.07 2.94%
Total -- 111,255,154.91 -- 80.45%
(7)Information of the amounts due from related parties
Unit: RMB Yuan
64
2012 Interim Report of Wuhan Boiler Company Limited
The relationship with the
Name of company Amount Proportion
Company
A subsidiary of the ultimate
ALSTOM Boiler Deutschland GmbH 2,203,068.25 1.59%
holding company
ALSTOM (Wuhan) Engineering & A subsidiary of the ultimate
2,121,588.32 1.53%
Technology Co., Ltd holding company
A subsidiary of the ultimate
ALSTOM Power Service GmbH 874,487.00 0.63%
holding company
A subsidiary of the ultimate
ALSTOM Boiler France S.A 704,506.43 0.51%
holding company
A subsidiary of the ultimate
ALSTOM (Switzerland) Ltd 193,639.50 0.14%
holding company
Subsidiary of Second largest
Wuhan Boiler Group Valve Co., Ltd 240,571.49 0.17%
shareholder
Subsidiary of Second largest
Wuhan Boiler Group YunTong Co., Ltd. 10,171.01 0.01%
shareholder
Total -- 6,348,032.00 4.58%
(8)Information of other accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount
recognition
Total
(9) If securitization is carried out on other accounts receivable as the underlying assets, please list amount
of assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Closing balance
Assets:
Subtotal of assets 0.00
Liabilities:
Subtotal of liabilities 0.00
5. Prepayment
(1)List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Less than 1
year (including 25,032,936.14 52.64% 21,345,726.59 54.73%
1 year)
1 year to 2
years
4,866,161.22 10.23% 616,453.62 1.58%
(including 2
years)
2 years to 3
years
666,453.62 1.4% 17,039,052.56 43.68%
(including 3
years)
Over 3 years 16,993,252.56 35.73% 4,200.00 0.01%
Total 47,558,803.54 -- 39,005,432.77 --
Notes of aging of prepayment: the prepayments aged more than 1 year was for the contract purchase which has not yet to settle.
(2)Details of the top 5 prepayment
Unit: RMB Yuan
65
2012 Interim Report of Wuhan Boiler Company Limited
Name of company The relationship with the Amount Aging Reasons
Company
Project has not yet
Howden Hua Engineering Co., Ltd. Non-affiliated 7,400,000.00 2009
completed
Wuhan ZhiMiao Machinery Project has not yet
Non-affiliated 6,807,692.30 2009
Manufacturing Co., Ltd., completed
Changzhi Tsinghua Steel Structure Project has not yet
Non-affiliated 4,277,499.98 2011
Co.,Ltd completed
Project has not yet
NIRONIT Edelstahlhandel Non-affiliated 3,372,512.40 2011
completed
Project has not yet
Sumitomo (Shanghai) Co.,Ltd Non-affiliated 3,344,512.65 2011
completed
Project has not yet
Howden Hua Engineering Co., Ltd. Non-affiliated 3,442,500.00 2012
completed
Total -- 28,644,717.33 -- --
Notes of important companies of prepayment:
The above prepayments were mainly for raw material purchased.
(3)There is no amount due from shareholders with more than 5% (including 5%) of the voting shares of the
Company in prepayment
□ Applicable √ Inapplicable
(4) Notes of prepayment
Closing balance of prepayment increased 21.93% as compared to last year, mainly due to the increase in the volume of materials
purchased for export projects.
6. Inventory
(1)Categories
Unit: RMB Yuan
Closing balance Opening balance
Category Impairment of Impairment of
Original value Book value Original value Book value
inventories inventories
Raw materials 126,169,310.25 30,097,328.90 96,071,981.35 251,754,730.97 77,838,517.97 173,916,213.00
Construction
-69,498,403.44 21,643,162.18 -91,141,565.62 152,978,904.28 86,778,194.79 66,200,709.49
contract assets
Inventory goods
Turnover material
Consumable
biological assets
Total 56,670,906.81 51,740,491.08 4,930,415.73 404,733,635.25 164,616,712.76 240,116,922.49
(2)Impairment of inventories
Unit: RMB Yuan
Decrease
Category Opening balance Increase Closing balance
Reversal Written off
Raw materials 77,838,517.97 47,741,189.07 30,097,328.90
Construction contract
86,778,194.79 16,722,086.68 81,857,119.29 21,643,162.18
assets
Inventory goods
Turnover material
Consumable biological
assets
Total 164,616,712.76 16,722,086.68 0.00 129,598,308.36 51,740,491.08
66
2012 Interim Report of Wuhan Boiler Company Limited
(3)Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for falling price
Item Reasons for reversal provision for impairment of
of inventories
inventories to closing balance
Raw materials Net realizable value in the market
Inventory goods
Construction contract assets Expected loss from contract loss
Turnover material
Consumable biological assets
Notes:
1. Closing balance of raw materials decreased by 49.88, mainly due to i) raw materials were used in production for projects under
execution; ii) disposal of obsolete materials.
2. Construction contract assets decreased by 145.43%, mainly due to production progress of projects under execution is slower than
progress billing which resulted in negative balance of construction contract assets.
3. The impairment of the raw materials is written off because of the disposal of obsolete raw materials and materials issued to
production for projects.
4. Write-off of the asset impairment from Construction contract is according to the Accounting Standards on Construction Contract to
release the loss provision based on completion progress.
7. Fixed assets
(1)Fixed assets details:
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Total original book value 939,919,239.58 3,017,988.64 310,968.25 942,626,259.97
Including: Property and
518,974,561.23 1,024,435.90 519,998,997.13
building
Machineries 381,755,907.80 1,265,747.76 123,968.25 382,897,687.31
Vehicles 1,330,874.64 187,000.00 1,143,874.64
Electronic equipment and
37,857,895.91 727,804.98 38,585,700.89
office equipment
-- Opening balance Increase Withdraw this period Decrease Closing balance
II. Accumulated
170,648,724.33 21,226,963.46 0.00 268,003.18 191,607,684.61
depreciation:
Including: Property and
28,658,679.63 6,494,317.32 0.00 35,152,996.95
building
Machineries 124,147,740.04 10,077,894.71 0.00 121,853.04 134,103,781.71
Vehicles 718,153.86 69,241.66 0.00 146,150.14 641,245.38
Electronic equipment and
17,124,150.80 4,585,509.77 0.00 21,709,660.57
office equipment
-- Opening balance -- Closing balance
III. The net book value of
769,270,515.25 -- 751,018,575.36
fixed assets
Including: Property and
490,315,881.60 -- 484,846,000.18
building
Machineries 257,608,167.76 -- 248,793,905.60
Vehicles 612,720.78 -- 502,629.26
Electronic equipment and
20,733,745.11 -- 16,876,040.32
office equipment
--
IV. Total impairment
2,468,084.52 -- 2,427,234.66
provision
Including: Property and
--
building
Machineries 2,307,942.56 -- 2,307,942.56
Vehicles 102,424.14 -- 61,574.28
Electronic equipment and
57,717.82 -- 57,717.82
office equipment
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2012 Interim Report of Wuhan Boiler Company Limited
--
V. Total book value of fixed
766,802,430.73 -- 748,591,340.70
assets
Including: Property and
490,315,881.60 -- 484,846,000.18
building
Machineries 255,300,225.20 -- 246,485,963.04
Vehicles 510,296.64 -- 441,054.98
Electronic equipment and
20,676,027.29 -- 16,818,322.50
office equipment
--
Depreciation amount of this report period was RMB21, 226,963.46; RMB590, 367.59 was transferred into fixed assets from
construction project.
(2) Temporary idle fixed assets
Unit: RMB Yuan
Accrued Impairment
Item Original book value Net book value Note
depreciation provision
Including: Property
and building
Machineries
Vehicles
(3) Fixed assets leased in from financing lease
□ Applicable √ Inapplicable
(4) Fixed assets leased out from operation lease
□ Applicable √ Inapplicable
(5) Details of holding-for-sale fixed assets at period-end
Unit: RMB Yuan
Item Book value Fair value Estimated disposal cost Estimated settle date
(6) Details of fixed assets failed to accomplish certification of property
Item Reason Estimated accomplish date
New plant and office building In progress of approval of certificate of property 2012
Notes of fixed assets: none.
8. Construction in progress
(1)
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
1. Newly established base of
the company
2.Equipment for New base of
2,265,946.22 2,265,946.22 2,398,543.47 2,398,543.47
the Company
3.Purchased technology
Total 2,265,946.22 0.00 2,265,946.22 2,398,543.47 0.00 2,398,543.47
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2012 Interim Report of Wuhan Boiler Company Limited
(2)Significant changes in construction in progress
Unit: RMB Yuan
Including:
Project input Capitalization
Name of Opening Transferred to Other Project Capitalization capitalization Source of Closing
Budget Increase percentage of of interest rate
project balance fixed assets decrease process of interest of interest funding balance
budget (%)
this period
1.Newly
established 500,700,000.0
100% 100% 19,649,371.90
base of the 0
company:
Including:
Capitalized
amount of
borrowing
costs
2.Equipment
for New base 400,000,000.0 Self-funding,
2,398,543.47 492,266.71 590,367.59 34,496.37 100% 100 8,999,350.34 0.00 0% 2,265,946.22
of the 0 loans
Company
Including:
Capitalized
amount of
borrowing
costs
3.Purchased 900,700,000.0
2,398,543.47 492,266.71 590,367.59 34,496.37 -- -- 28,648,722.24 0.00 -- -- 2,265,946.22
technology 0
Notes:
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2012 Interim Report of Wuhan Boiler Company Limited
(3)Impairment provision of construction in progress
Unit: RMB Yuan
Reason for
Item Opening amount Increase Decrease Closing balance
withdrawal
Total 0.00 0.00 0.00 0.00 --
(4)Details of procedures of significant construction in progress
Item Project process Note
New base construction The new base is completed and in use
Equipment purchased for new base All of equipment are in use
(5) Notes of construction in progress
1. Closing balance of construction in progress decreased by 5.53%, mainly due to transference to fixed assets;
2. As of June 30 2012, the construction in progress did not have indication of impairment, therefore no impairment for
construction in progress.
9. Intangible assets
(1) Details of intangible assets
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Total original book
149,249,188.70 105,945.88 0.00 149,355,134.58
value
Land use right 41,599,836.72 41,599,836.72
Proprietary technology 91,294,640.41 91,294,640.41
Software 16,354,711.57 105,945.88 16,460,657.45
II. Total accrued
63,413,874.36 4,043,804.01 0.00 67,457,678.37
amortization
Land use right 3,055,423.82 415,946.90 3,471,370.72
Proprietary technology 47,380,537.87 2,291,569.54 49,672,107.41
Software 12,977,912.67 1,336,287.57 14,314,200.24
III. Total net book value of
85,835,314.34 -3,937,858.13 0.00 81,897,456.21
intangible assets
Land use right 38,544,412.90 -415,946.90 38,128,466.00
Proprietary technology 43,914,102.54 -2,291,569.54 41,622,533.00
Software 3,376,798.90 -1,230,341.69 2,146,457.21
IV. Total impairment
0.00 0.00 0.00 0.00
provision
Land use right
Proprietary technology
Software
Total book value of
85,835,314.34 -3,937,858.13 0.00 81,897,456.21
intangible assets
Land use right 38,544,412.90 -415,946.90 38,128,466.00
Proprietary technology 43,914,102.54 -2,291,569.54 41,622,533.00
Software 3,376,798.90 -1,230,341.69 2,146,457.21
Amortized RMB4, 043,804.01 in the report period.
(2)Company development expense
Unit: RMB Yuan
Decrease
Item Opening balance Increase Recognized into Recognized as Closing balance
current gains/losses intangible assets
Total 0.00 0.00 0.00 0.00 0.00
Development expense percentage of total expenditure of R&D projects in the report period.
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2012 Interim Report of Wuhan Boiler Company Limited
Percentage intangible assets arising from inner R&D of the Company of closing book value of intangible assets.
Notes of R&D projects of the Company, those that includes individual value of more than RMB 1 million and recognized with a
basis of assessed value, please disclose name of evaluation authority and method of evaluation:
(3)List of intangible assets that failed to accomplish certification of property
None
10. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
√ Applicable □ Inapplicable
Item Closing balance Opening balance
Deferred tax assets ：
Impairment of assets 53,202,865.59 80,882,420.54
Commencement fees
Deductible tax losses
Sub-total 53,202,865.59 80,882,420.54
Deferred tax liabilities ：
Fair value of tradable financial instruments,
derivatives
Movement of hold-for-sale financial assets that
charged to capital surplus
Sub-total
Unrecognized deferred income tax assets
Item Closing balance Opening balance
Deductible temporary differences 97,722,456.03 156,695,381.00
Tax losses 1,150,266,368.12 1,383,594,551.62
Total 1,247,988,824.15 1,540,289,932.62
The tax losses unrecognized as deferred tax assets will expire in the following year
Year Closing balance Opening balance Notes
2012 322,036,470.99 2007 tax losses will expire in 2012
2013 239,354,518.41 300,367,116.96 Closing balance is from updated tax report issue by auditor
2014 393,652,796.06 364,372,073.45 Closing balance is from updated tax report issue by auditor
2015 137,224,338.68 138,617,290.31 Closing balance is from updated tax report issue by auditor
2016 268,882,531.70 258,201,599.91 Closing balance is from updated tax report issue by auditor
2017 111,152,183.27
Total 1,150,266,368.12 1,383,594,551.62 --
Temporary difference
Temporary difference
Item
Closing balance Opening balance
Taxable differences
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2012 Interim Report of Wuhan Boiler Company Limited
Sub-total 0.00 0.00
Deductible temporary difference
1 Provision for bad debt
、 188,741,065.54 234,283,402.84
2 、 Impairment of inventories 21,643,162.18 86,778,194.79
3 、 Impairment of fixed assets 2,427,234.66 2,468,084.52
Sub-total 212,811,462.38 323,529,682.15
(2) Deferred tax assets and liabilities are listed as the net value after offset
□ Applicable √ Inapplicable
Notes:
11. List of assets impairment
Unit: RMB Yuan
Decrease
Item Opening balance Increase Closing balance
Reversal Written off
I. Provision for bad debt 267,468,785.74 -53,613,714.96 536,775.00 213,318,295.78
II. Provision for inventory
164,616,712.76 16,722,086.68 0.00 129,598,308.36 51,740,491.08
falling price
III. Impairment provision of
available-for-sale financial
assets
IV. Impairment provision of
held-to-maturity investment
V. Impairment provision of
long-term equity investment
VI. Impairment provision of
investment property
VII. Impairment provision of
2,468,084.52 40,849.86 2,427,234.66
fixed assets
VIII. Impairment provision of
engineering materials
IX. Impairment provision of
0.00 0.00
construction in progress
X. Impairment provision of
productive biological assets
Including: mature
productive biological assets
XI. Impairment provision of
oil gas assets
XII. Impairment provision of
0.00 0.00 0.00
intangible assets
XIII. Impairment provision of
goodwill
XIV. Others
Total 434,553,583.02 -36,891,628.28 0.00 130,175,933.22 267,486,021.52
Notes of list of assets impairment:
None.
12. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Hedging 5,790,508.71
Total 5,790,508.71
Notes of other non-current assets
Closing balance of other non-current assets decreased by 100%, mainly due to settlement of unexpired forward contracts.
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2012 Interim Report of Wuhan Boiler Company Limited
13. Short-term loan
(1)Category
Unit: RMB Yuan
Category Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Entrusted loan 1,602,000,000.00 1,563,000,000.00
Total 1,602,000,000.00 1,563,000,000.00
Notes: The entrust borrowings are supplies by Alstom (China) Investment Co., Ltd, and the maximum amount is RMB
1,800,000,000.00.
(2)List of unsettled mature short-term loan
Unit: RMB Yuan
Reason for
Name of creditor Amount of loan Rate of loan Usage Estimated settle date
unsettlement
Total 0.00 -- -- -- --
RMB000 was paid back after the Balance Sheet Date.
Notes of short-term loan, for those gaining extended term, notes term of extension and new mature date:
14. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
Trade acceptance
Bank acceptance 45,548,201.49
Total 45,548,201.49
RMB0.00 will be due in next fiscal period.
Notes of notes payable:
1. Closing balance of notes payable decreased by 100.00%, mainly due to endorsement of received bank notes to pay vendors;
2. There was no notes payable due from shareholders with more than 5% (including 5%) of the voting shares of the Company.
15. Accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year (including 1 year) 148,666,911.6
1-2 years (including 2 years) 108,655,871.00
2-5 years (including 5 years) 49,185,154.00
Above 5 years 2,770,970.00
Total 269,376,764.59 309,278,906.64
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of the
Company
√ Applicable □ Inapplicable
Company Closing balance Opening balance
ALSTOM Boiler Deutschland GmbH 1,040,641.06 1,003,018.90
ALSTOM Power Energy Systems Indonesia 29,822.65 10,614.19
ALSTOM Power Inc 1,180,640.62 1,176,160.65
ALSTOM s.r.o 82,223.70 989,816.18
ALSTOM (Switzerland) Ltd 331,361.30
ALSTOM Power Service GmbH 11,772,599.40
ALSTOM (Wuhan) Engineering & Technology
187,452.00
Co.,Ltd
ALSTOM Technical Services (Shanghai) Ltd 4,767,000.00 4,767,000.00
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2012 Interim Report of Wuhan Boiler Company Limited
Wuhan Boiler (Group) Yuntong Co.,Ltd 17,440.01 383,570.01
Wuhan Boiler (Group) Valve Co.,Ltd 441,310.80 1,099,530.54
Wuhan Boiler (Group) Special Boiler
15,903,704.17 24,225,755.73
Engineering Co.,Ltd
Total 23,650,235.01 45,759,426.90
Notes of the account payable aged longer than 1 year:
The accounts payable aged longer than 1 year is mainly for retrofit processing fees. As the project has yet to complete, it can’t be
settled until the warranty period of the boiler is expired.
16. Advance from customers
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year (including 1 year) 81,149,519.55 196,542,446.97
Above 1 year 519,911,081.45 715,951,002.28
Total 601,060,601.00 912,493,449.25
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the voting shares of
the Company
√ Applicable □ Inapplicable
Notes of significant advance from customers aged longer than 1 year:
Advanced from customers with aging over 1 year, were unsettled contract payments on projects under execution. According to the
Company’s accounting method on construction contract in progress, the account shall be carried forward after the settlement of
contract payments on construction contract in progress.
17. Payroll payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Salary, bonus, allowance, subsidy 8,862,594.52 57,772,847.27 62,027,207.27 4,608,234.52
II. Employee welfare 31,043.56 31,043.56
III. Social insurance 0.00 12,460,993.13 12,460,993.13 0.00
including ①： Medical insurance 23,795,615.42 23,795,615.42
② Retirement pension 6,168,422.86 6,168,422.86
③ Unemployment insurance 15,223,836.34 15,223,836.34
④ injury insurance premium 1,334,810.42 1,334,810.42
⑤ Pregnancy insurance 538,294.45 538,294.45
IV. Housing fund 530,251.35 530,251.35
V. Redemption for terminations of labor contract 45,671,480.14 -777,034.81 1,854,083.80 43,040,361.53
VI. Others 3,115,052.79 1,937,298.43 1,752,846.49 3,299,504.73
Labor union fee and employee education fee 3,115,052.79 1,937,298.43 1,752,846.49 3,299,504.73
Total 57,680,171.01 74,481,882.02 81,182,908.69 50,979,144.34
RMB0.00 of payroll payable was in default.
RMB1, 752,846.49 was of labor union fee and employee education fee, RMB0.00 was of non-monetary welfare, RMB0.00 was of
redemption for termination of labor contract.
Arrangement of estimated distribution date and amount on payroll payable:
Closing balance of salary, bonus, allowance, and subsidy was mainly accrued 2012 bonus which is expected to be paid in Jun 2013.
18. Taxes payable
Unit: RMB Yuan
74
2012 Interim Report of Wuhan Boiler Company Limited
Item Closing balance Opening balance
Value-added tax -115,716,618.28 -112,642,915.78
Consumption tax 0.00 0.00
Business tax 485.87
Corporate income tax 215.21 3,439,443.40
Personal income tax 157,107.65 17,217.84
Urban maintenance and construction tax 34.01
Levee fee 4.86
Education surtax 14.58
Local education development fee 9.72
Stamp duty 4,939.56 8,638.30
Land use tax 391,112.01 293,334.00
Property tax 2,468,684.22
Total -112,694,559.63 -108,883,733.20
Notes of taxes payable, for those branches and single plants received permission of adjustment from their local tax authorities on
income taxes payable, they shall specified their calculation procedure.
19. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Interest payable on long-term borrowings that interest
was paid by stages and principle was repay when due
Interest of corporate bond
Interest payable on short-term borrowings 2,016,270.00 2,016,270.00
Total 2,016,270.00 2,016,270.00
Notes: Closing balance of interest payable was accrued interest for 10 days calculated according to interest rated issued by central
bank.
20. Dividends payable
Unit: RMB Yuan
Reason of fail to unsettle more than
Name of company Opening balance Closing balance
1 year
HIT East Power Electric Co., Ltd. 108,000.00 108,000.00 The company is in liquidation
West Jiaotong University Star Source Dynamics 166,000.00 166,000.00 The company is in liquidation
Shanghai Power Equipment Research Institute 144,000.00 144,000.00 The company is in liquidation
Wuhan Urban Environmental Engineering 144,000.00 144,000.00 The company is in liquidation
Company
Total 562,000.00 562,000.00 --
Notes:
Dividends payable was the unpaid dividend of Wuhan Lanxiang Energy Environmental Protection Technology Co., Ltd
21. Other accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year (including 1 year) 25,630,366.32 74,602,701.33
1-2 years (including 2 years) 49,623,689.42 8,126,459.94
2-5 years (including 5 years) 5,842,360.67 15,102,114.15
Above 5 years
Total 81,096,416.41 97,831,275.42
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting shares of
the Company
√ Applicable □ Inapplicable
75
2012 Interim Report of Wuhan Boiler Company Limited
Company Closing balance Opening balance
ALSTOM Power Inc 505,832.36 515,415.55
ALSTOM TP Transverse Technologies Rugby 86,278.57
ALSTOM (Switzerland) Ltd 156,522.71 4,258,401.06
ALSTOM Technology Ltd (Switzerland) 29,599,128.00 30,903,465.60
ALSTOM IS&T SAS 6,145,127.63 6,054,216.36
ALSTOM Holdings 41,270.38
ALSTOM (China) Investment Co.,Ltd 3,041,026.98 5,110,602.37
ALSTOM Beizhong Power (Beijing) Co.,Ltd 1,358,071.60 1,356,789.48
Wuhan Boiler Group Co.,Ltd 974,056.13 974,056.13
Total 41,907,314.36 49,172,946.55
(3)Notes of the other large amount accounts payable aged more than 1 year.
The other large amount accounts payable aged more than 1 year was mainly the amount collected from employees on behalf to
purchase ALSTOM stocks.
(4)Details of the significant amount of other accounts payable
Item Amount The nature or content
ALSTOM Technology Ltd (Switzerland) 29,599,128.00 TOT technology transfer fee
ALSTOM IS&T SAS 6,145,127.63 ITSAS service fee
Stock deductions 5,669,059.49 Collected and remit on behalf of employees
ALSTOM (China) Investment Co.,Ltd 3,041,026.98 ITSSC service fee
Wuhan Fesco Human Resource Service Co.,Ltd 1,961,416.89 Service fee
Total 46,415,758.99
22. Other non-current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
1. Deferred income 12,731,400.00 12,870,288.00
2. Hedged items 4,086,205.78 12,727,399.85
3. Unrecognized finance cost -8,869,572.45 -9,465,682.90
Total 7,948,033.33 16,132,004.95
Notes of other non-current liabilities, including each government subsidy pertinent to assets, government subsidy pertinent to
incomes received in report period and their closing balance:
1. The government subsidies were amortized deferred income related to land use right of new factory;
2. The unrecognized financing cost is the discount fees of employee retirement benefits in accordance with the regulations stipulated
in ‘Employee Benefits’ Accounting Standards
3. Closing balance of other non-current liabilities decreased by 67.89%, mainly due to increase in unrealized gain resulted from
unexpired forward contracts.
23. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Reserves Closing
Issuing new
balance Bonus shares transferred to Others Subtotal balance
shares
shares
Total shares 297,000,000.00 0.00 297,000,000.00
Notes of changes in share capital, for those action of increasing capital or decreasing capital in the report period, the Company shall
publish name of law firm that conducted capital verification and document number of verification report; for limited liability
companies running for less than three years, only net assets on the establishing year shall be specified; while for causes of limited
liability companies completely changed into joint-stock company, capital verification on the establishment shall be specified:
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2012 Interim Report of Wuhan Boiler Company Limited
24. Capital surplus
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium (share
144,909,718.58 0.00 0.00 144,909,718.58
capital premium)
Other capital surplus 29,749,688.88 0.00 0.00 29,749,688.88
Total 174,659,407.46 0.00 0.00 174,659,407.46
Notes: None
25. Surplus reserve
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Legal surplus 39,418,356.83 0.00 0.00 39,418,356.83
Discretional surplus
Reserve fund
Enterprises development fund
Other
Total 39,418,356.83 0.00 0.00 39,418,356.83
Notes: if surplus reserve is applied to increasing share capital, compensating losses and dividends distribution, please notes.
26. Retained earnings
Unit: RMB Yuan
Period-end
Item Extraction or allocation
Amount
proportion
Opening balance of retained earnings before adjustments -1,659,956,146.16 --
Adjustments of opening balance of retained earnings (“+”
--
means add, “-” means reduce)
Opening balance of retained earnings after adjustments -1,659,956,146.16 --
Add: Net profit attributable to owners of the Company -24,383,589.49 --
Less: Withdrawal of statutory surplus reserves
Withdrawal of discretional surplus reserves
Withdrawal of provision for general risk
Dividend of common stock payable
Dividend of common stock converted into share capital
Closing retained earnings -1,684,339,735.65 --
List of adjustment of opening retained earnings:
1) RMB0.00 opening retained earnings was affected by retroactive adjustment conducted on Accounting Standards of Business
Enterprises and its relevant new regulations.
2) RMB0.00 opening retained earnings was affected by changes on accounting policies.
3) RMB0.00 opening retained earnings was affected by correction of significant accounting errors.
4) RMB0.00 opening retained earnings was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained earnings was affected by a total of other adjustment.
27. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
Sales of main business 359,625,071.80 230,575,383.58
Other operating income 16,952,630.50 17,756,668.42
Cost of sales 345,842,634.98 277,531,191.13
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2012 Interim Report of Wuhan Boiler Company Limited
(2)Main business (Classified by industry)
√Applicable □ Inapplicable
2012 Jan-Jun 2011 Jan-Jun
Industries
Operating revenue Cost of sales Operating revenue Cost of sales
Machinery
359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
manufacturing
Total 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
(3)Main business (Classified by product)
√ Applicable □ Inapplicable
2012 Jan-Jun 2011 Jan-Jun
Products
Operating revenue Cost of sales Operating revenue Cost of sales
Boiler 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
Total 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
(4) Main business (Classified by area)
√ Applicable □ Inapplicable
2012 Jan-Jun 2011 Jan-Jun
Area
Operating revenue Cost of sales Operating revenue Cost of sales
Domestic 90,248,828.49 89,513,240.29 172,919,183.58 197,710,044.94
Overseas 269,376,243.31 239,228,665.07 57,656,200.00 65,922,182.01
Total 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
(5)List of the top five customers
Unit: RMB Yuan
Customers Sales of main business Proportion of total revenue (%)
ALSTOM Power Inc. 157,775,532.14 41.90%
ALSTOM Boiler Deutschland GmbH 103,884,831.13 27.59%
Gansu Diantou Jinchang Generating Co.,Ltd 78,619,870.86 20.88%
Shandong Weiqiao Aluminum and Electricity Co.,Ltd 20,467,321.07 5.44%
ALSTOM Estonia AS 18,001,900.91 4.78%
Total 378,749,456.11 100.58%
Notes
During report period reversed revenue RMBM10.286 from Perawang project mainly due to postponement of this project, which
resulted in increase in estimated project costs and decrease in project margin.
28. Revenue from the construction contracts
√ Applicable □ Inapplicable
Recognized profits
Accumulated
to date (recognized
Fixed price contract Project Amount Construction costs Progress billings
losses as negative
incurred to date
figure)
ALSTOM Boiler
387,696,107.22 262,036,329.55 52,703,488.33 290,335,822.31
Deutschland GmbH
Shandong Weiqiao
Aluminum and 478,632,478.63 2,716,181.42 367,584.95 23,931,623.94
Electricity Co.,Ltd
ALSTOM Power
694,012,940.19 148,202,107.48 14,258,710.24 248,782,542.94
Inc.
Gansu Diantou
Jinchang Generating 258,974,358.97 105,945,467.63 7,416,061.13 142,435,897.45
Co.,Ltd
Others 1,468,742,106.51 1,187,186,285.77 14,869,429.52 1,159,714,162.82
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2012 Interim Report of Wuhan Boiler Company Limited
Sub-total 3,288,057,991.52 1,706,086,371.85 89,615,274.17 1,865,200,049.46
Recognized profits
Accumulated
Straight cost plus to date (recognized
Project Amount Construction costs Progress billings
contract losses as negative
incurred to date
figure)
Sub-total 0.00 0.00 0.00 0.00
Notes:
The loss of the current construction contracts was estimated RMB16, 722,086.68. The main reason for this estimated loss was mainly
due to the change in estimates for raw material and labour cost for onerous contracts.
29. Business tax and surcharges
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun Base of payment
Consumption tax
Business tax 1,000.00 112,009.76 Refer to VIII (V) 1.
Urban maintenance and construction tax 70.00 1,197.98 Refer to VIII (V) 1.
Education surtax 30.00 3,360.30 Refer to VIII (V) 1.
Resources tax
Levee fee 10.00 7,840.69 Refer to VIII (V) 1.
Local education surtax 20.00 2,240.20 Refer to VIII (V) 1.
Total 1,130.00 126,648.93 --
Notes:
Business tax and surcharges reduced by 99.11% as compared to last year same period, main due to decrease in taxable revenue.
30. Gains and losses from changes of fair value
Unit: RMB Yuan
Source 2012 Jan-Jun 2011 Jan-Jun
Trading financial assets
Including: Fair value changes arising from
derivative instruments
Trading financial liabilities
Investment property calculated in fair value
Other 2,850,685.36 -11,547,097.95
Hedge accounting 2,850,685.36 -11,547,097.95
Total 2,850,685.36 -11,547,097.95
Notes:
Hedging increased by 124.96% as compared to last year same period, mainly due to increase in unrealized gain incurred by hedge
accounting.
31. Impairment losses
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
I. Bad debts losses -53,613,714.96 30,027,268.95
II. Inventory falling price losses 16,722,086.68 11,149.43
III. Impairment losses of available-for-sale financial
assets
IV. Impairment losses of held-to-maturity of investment
V. Impairment losses of long-term equity investment
VI. Impairment losses of investment property
VII. Impairment losses of fixed assets
VIII. Impairment losses of engineering materials
IX. Impairment loss of construction in progress
X. Impairment losses of productive biological assets
XI. Impairment losses of oil and gas assets
XII. Impairment losses of intangible assets
XIII. Goodwill impairment losses of
XIV. Other
79
2012 Interim Report of Wuhan Boiler Company Limited
Total -36,891,628.28 30,038,418.38
32. Non-operating gains
(1)
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
Total gains from disposal of non-current assets 9,072.82 1,957.30
Including Gains from disposal of fixed assets
： 9,072.82 1,957.30
Gains from disposal of intangible assets
Gains from debt reconstruction
Gains from non-monetary assets exchange
Acceptance of donations
Government subsidies 138,888.00 138,888.00
Write-off payables 1,272,663.79
Penalties 26,632.99
Others 6,132.97
Total 1,420,624.61 173,611.26
(2)List of government subsidies
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun Note
The government subsidies are
Deferred revenue of land use right of new factory 138,888.00 138,888.00 amortized deferred income related to
land use right of new factory.
Total 138,888.00 138,888.00 --
Notes
Non-operating income increased 718.28% as compared to last year same period, mainly due to write-off of some payables due to
close-out of subsidiary Wuhan Boiler Boyu Industrial Co.,Ltd.
33. Non-operating expenses
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
Loss on disposal of non-current assets 1,786.32 113,878.73
Including: Loss on disposal of fixed assets 1,786.32 113,878.73
Loss on disposal of intangible assets
Loss on debt reconstruction
Loss on exchange of non-monetary assets
External donation
Others 8,000.00
Total 9,786.32 113,878.73
Notes
1.Non-operating expenses decreased 91.41% as compared to last year same period, mainly due to decrease in losses incurred by
disposal of fixed assets;
2. Others was write-off of receivables due to close-out of subsidiary Wuhan Boiler Boyu Industrial Co.,Ltd.
34. Income tax expense
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
Current income tax expense accounted by tax and relevant
regulations
Adjustment of income tax 27,679,554.95 -5,331,741.08
Total 27,679,554.95 -5,331,741.08
80
2012 Interim Report of Wuhan Boiler Company Limited
35. Calculation procedure of basic earnings per share and diluted earnings per share
Item 2012 Jan-Jun 2011 Jan-Jun
Basic earnings per share -0.08 -0.40
Diluted earnings per share -0.08 -0.40
Notes: Basic earnings per share and diluted earnings per share calculation process ：
A Basic earnings per share=P÷S= -24,383,589.49 ÷ 297,000,000.00= -0.08
．
S=S0+S1+Si×Mi÷MO-Sj×Mj÷MO-Sk
In the equation above, P represents the net profit or profit after deducting extraordinary gain or loss attributable to ordinary
shareholders. S represents the weighted average number of ordinary shares during the period. S0 represents the number of ordinary
shares at the beginning of the period. S1 represents the number of additional ordinary shares issued on capital surplus transfer or share
dividends appropriation; Si represents the number of ordinary shares issued in exchange for cash or issued as a result of the
conversion of a debt instrument to ordinary shares during the period. Sj represents reduced number of ordinary shares such as shares
buy back. Sk represents the number of a reverse share split. Mo represents the months during the period. Mi represents the months
from the following month after issuing incremental shares to the end of the period. Mj represents the months from the following
month after reducing shares to the end of the period.
(A) Diluted Earnings Per Share =[P+(Diluted potential common stock dividends-convert cost) /(S0 ＋ S1 ＋
Si×Mi÷M0–Sj×Mj÷M0–Sk+ The weighted average number of incremental ordinary shares on warrants, options, convertible debt and
so on）
In the equation above, P represents the net profit or profit after deducting extraordinary gain or loss attributable to ordinary
shareholders. When calculating the diluted Earnings per Share, company considered in sequence from dilutive potential ordinary
shares to get the lowest earnings per share.
For business combination under the same control during the reporting period and the combing party issue new shares as
consideration, when calculating the EPS at the end of reporting period, company should treat these shares as they are normal
outstanding shares at the beginning of combining date (Weighting coefficient is 1). When calculation the EPS during the comparing
period, should treat these shares as they are normal outstanding shares at the beginning of comparing period. When calculation the
EPS after deducting extraordinary gain or loss at the end of reporting period, should treat these new shares as they are issued one
month after the combing date. When calculation the EPS after deducting extraordinary gain or loss during the comparing period
should ignore these new shares (Weighting coefficient is 0).
For business combination under the same control at the accounting period and the combing party issue new shares as consideration,
when calculating the EPS at the accounting period or the comparing period, company should use the basic EPS method to treat these
new shares.
Unlisted company purchase listed company by issue share to become a listed company indirectly, when calculating the EPR during
the reporting period:
Weighted average number of ordinary shares during the period = (Weighted average number of shares from the beginning of
reporting period to the end of the month which combination happened) + (Weighted average number of shares from the next month
of the combination to the end of the reporting period)
Weighted average number of shares from the beginning of reporting period to the end of the month which combination happened =
Weighted average number of share of the acquirer (subsidiary in law) × Share exchange rate in the acquisition agreement ×number of
months from the beginning to the month which acquisition happens ÷ number of months during the period
Weighted average number of shares from the next month of the combination to the end of the reporting period = Weighted average
number of share of the acquiree (parent in law) ×number of months from the next month to the end of period ÷ number of months
during the period
Unlisted company purchase listed company by issue share to become a listed company indirectly, when calculating the EPR during
the comparing period:
Weighted average number of ordinary shares during the period = Weighted average number of share of the acquirer (subsidiary in
law) × Share exchange rate in the acquisition agreement.
36. Other comprehensive income
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
1. Gains (losses) arising from available-for-sale financial assets
Less: Income tax effect arising from available-for-sale
financial assets
Net amount that was early recognized into other
comprehensive income transferred into current gains and losses
Subtotal 0.00 0.00
2. Proportion enjoyed in other comprehensive income of
investee that was accounted by equity method
81
2012 Interim Report of Wuhan Boiler Company Limited
Less: Income tax effect arising from proportion enjoyed in
other comprehensive income of investee that was accounted by
equity method
Net amount that was early recognized into other
comprehensive income transferred into current gains and losses
Subtotal 0.00 0.00
3. Gains (or losses) arising from cash flow hedging instrument
Less: Income tax effect arising from cash flow hedging
instrument
Net amount that early recognized into other comprehensive
income transferred into current gains and losses
Adjustment on initial recognition amount that transferred into
hedged project
Subtotal 0.00 0.00
4. Foreign exchange differences
Less: Net amount of disposal of overseas operation that
transferred into current gains and losses
Subtotal 0.00 0.00
5. Other
Less: Income tax effect arising from others recognized into
other comprehensive income
Net amount of others recognized into other comprehensive
income transferred into current gains and losses
Subtotal 0.00 0.00
Total 0.00 0.00
Notes
37. Notes of Cash Flow Statement
(1)Other cash received relevant to operating activities
Unit: RMB Yuan
Item Amount
Refund of tendering deposit 800,000.00
Total 800,000.00
Notes: none.
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Amount
Employee external training 398,182.00
Energy expenses 1,587,686.30
Food expenses 2,724,777.20
Lease expenses 4,911,701.84
Recruitment expenses 317,173.06
Travel expenses 5,333,718.85
Cleaning service expenses 611,440.00
Security expenses 625,100.00
Consultant service expenses 1,852,005.00
Insurance expenses 2,904,851.60
Business entertainment expenses 1,887,864.60
Maintenance and repair cost 1,106,469.66
Office expenses 554,409.37
Book expenses 73,887.90
Listing expenses 425,950.92
Litigation costs 1,883,633.00
82
2012 Interim Report of Wuhan Boiler Company Limited
IT service fees 4,576,378.32
Testing fees 2,690,223.11
Stock deductions 225,254.64
Meeting expenses 272,266.80
Advertising expenses 23,155.95
Total 34,986,130.12
Notes: none.
(3) Other cash received relevant to investment activities
Unit: RMB Yuan
Item Amount
Interest income 87,166.13
Total 87,166.13
Notes: none.
(4) Other cash paid relevant to investment activities
Unit: RMB Yuan
Item Amount
Bank charges 220,250.34
Total 220,250.34
Notes: none.
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes: none.
(6) Other cash paid relevant to financing activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes: none
38. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
Unit: RMB Yuan
Supplemental information 2012 Jan-Jun 2011 Jan-Jun
1. Reconciliation of net profit to net cash flows generated from
-- --
operations：
Net profit -24,959,253.89 -118,604,715.81
Add: Provision for assets impairments -166,489,936.64 29,761,633.67
Depreciation of fixed assets, oil-gas assets and productive
biological assets 21,226,963.46 19,936,384.19
Amortization of intangible assets 4,043,804.01 3,484,908.98
Amortization of long-term deferred expense
Losses/gains on disposal of property, intangible asset and other
long-term assets (gains: negative) -7,286.49 111,921.43
Losses/gains on scrapped of fixed assets (gains: negative)
Losses/gains from variation of fair value (gains: negative) -2,850,685.36 11,547,097.95
Financial cost (income: negative) 56,374,275.12 31,503,275.97
Investment loss (gains: negative)
Decrease in deferred tax assets (increase: negative) 27,679,554.95 -5,331,741.08
83
2012 Interim Report of Wuhan Boiler Company Limited
Increase in deferred tax liabilities (decrease: negative)
Decrease in inventory (increase: negative) 348,062,728.44 -70,932,043.52
Decrease in accounts receivable from operating activities (increase:
negative) 148,130,556.20 -116,266,476.06
Increase in accounts payable from operating activities (decrease:
negative) -383,881,589.46 81,909,892.35
Others
Net cash flows generated from operating activities 27,329,130.34 -132,879,861.93
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
Debt converted into capital
Convertible company bonds due within 1 year
Financing leased fixed assets
3. Change of cash and cash equivalent: -- --
Closing balance of Cash 19,040,077.95 10,440,559.66
Less: opening balance of cash 20,388,030,.03 10,491,275.05
Plus: closing balance of cash equivalent
Less: opening balance of cash equivalents
The net increase in cash and cash equivalents -1,347,952.08 -50,715.39
(2)Relevant information of acquisition or disposal of subsidiaries and other operation entities in the report
period
Unit: RMB Yuan
Supplemental information 2012 Jan-Jun 2011 Jan-Jun
I. Relevant information on acquisition of subsidiaries and
-- --
other operation entities:
1. Price of acquisition of subsidiaries and other operation
entities
2. Cash and cash equivalents paid for acquisition of
subsidiaries and other operation entities
Less: Cash and cash equivalents held by subsidiaries
and other operation entities
3. Net cash acquired from subsidiaries and other operation
entities
4. Net assets acquired from subsidiaries
Current assets
Non-current assets
Current liabilities
Non-current liabilities
II. Relevant information on disposal of subsidiaries and
-- --
other operation entities
1. Price of disposal of subsidiaries and other operation
entities
2 Cash and cash equivalents received for disposal of
．
subsidiaries and other operation entities
Less: Cash and cash equivalents held by subsidiaries
and other operation entities
3. Net cash received from disposal of subsidiaries and other
operation entities
4. Net assets on disposal of subsidiaries 5,673,540.76 0.00
Current assets 6,928,746.21
Non-current assets
Current liabilities 1,255,205.45
Non-current liabilities
(3)Composition of cash and cash equivalents
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
I. Cash 19,040,077.95 20,388,030.03
84
2012 Interim Report of Wuhan Boiler Company Limited
Including: Cash on hand
Bank deposit on demand 19,040,077.95 20,388,030.03
Other cash and cash equivalent on demand
Central Bank deposit on demand
Due from banks
Call loan to banks
II. Cash equivalents
Including: bond investments due in three months
III. Closing balance of cash and cash equivalents 19,040,077.95 20,388,030.03
Notes: none.
39. Notes of statement of shareholders’ equity
Notes of issues such as name of project that made adjustment in closing balance of 2011, amount that adjusted and retroactive
adjustment generated from enterprises combination under the same control:
(VIII) Accounting of assets securitization business
1. Notes of main trade arrangement and its accounting of assets securitization business as well as articles of
bankruptcy remote
As of Jun 30 2012 the Company was not involved in assets securitization business.
2. Main information about the Company that without control right but actually bear specific goals of its
risk
Unit: RMB Yuan
Total closing Total closing Operating
Name Net closing assets Net profit in 2012 Note
assets liabilities revenue in 2012
(IX) Related Party Relationships and Transactions
1. Information of the parent company of the Company
Unit: RMB Yuan
The
The parent The parent ultimate
Legal Nature of
Parent Relationsh Business Registratio Registered company's company's controlling Organizati
Representa the
company ip Type n Capital shareholdi voting party of on Code
tive business
ng (%) right (%) the
Company
ALSTOM Shareholde Foreign-o Fifth floor. Dominique Lawfully USD60,96 51% 51% ALSTOM 71092378-
(China) r wned QianKun Pouliquen investing 4,400.00 Holdings 2
Investment enterprises building , in fields in
Co., Ltd. No. 6 , which
West No 6 foreign
street, investment
Sanlitun, is
chaoyang permitted
district, by the
Beijing State
2. Information of subsidiaries of the Company
Unit: RMB Yuan
Percentage
Legal Percentage
Business Registered Nature of Registered of Organizatio
Full name Type representati of voting
type address the business capital Shareholdin n code
ve right (%)
g (%)
Wuhan Control Control 586 Wuluo Guowei Boiler, RMB20,000 95% 95% 73753132-4
Lan Xiang shareholder shareholder Rd., Wuhan Yang energy ,000.00
Power environmen
Environmen tal
tal protection
Protection products,
Technology Steel
Company structures,
Limited technology
85
2012 Interim Report of Wuhan Boiler Company Limited
research of
heat energy
products
and its
accessorial
equipment,
design,
technical
Consultancy
, technical
service,
sales of
developed
products,
energy
project
(non-constr
uction
project)
86
2012 Interim Report of Wuhan Boiler Company Limited
3. Information of joint ventures and partnership enterprises
Unit: RMB Yuan
Percentage Total
Legal Percentage Total Total Total
Name of Business Registered Nature of Registered of operating Net profit in Relationshi Organizatio
representati of voting closing closing closing net
investee type address the business capital shareholdin revenue in 2012 p n code
ve rights (%) assets liabilities assets
g (%) 2012
I. Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- --
ventures
II.
Partnership -- -- -- -- -- -- -- -- -- -- -- -- -- --
enterprises
87
2012 Interim Report of Wuhan Boiler Company Limited
4. Information of other related parts of the Company
Name Relationship Organization code
ALSTOM Power INC A subsidiary of ultimate holding company
ALSTOM Projects India Limited A subsidiary of ultimate holding company
ALSTOM Power Systems S.A Establishment Boilers A subsidiary of ultimate holding company
ALSTOM Boiler Deutschland GmbH A subsidiary of ultimate holding company
PT ALSTOM Power Energy Systems Indonesia A subsidiary of ultimate holding company
ALSTOM Power Energy A subsidiary of ultimate holding company
ALATOM Estonia AS A subsidiary of ultimate holding company
ALSTOM IS&T SAS A subsidiary of ultimate holding company
ALSTOM Technology Ltd (Switzerland) A subsidiary of ultimate holding company
ALSTOM s.r.o A subsidiary of ultimate holding company
ALSTOM Holdings Ultimate holding company
ALSTOM (Switzerland) Ltd A subsidiary of ultimate holding company
ALSTOM Sizhou Electric Power Equipment A subsidiary of ultimate holding company 70649461-2
(Qingdao) Co. Ltd
ALSTOM Beizhong Power(Beijing)Co.,Ltd A subsidiary of ultimate holding company 76935519-3
ALSTOM (Wuhan) Engineering & Technology Co., A subsidiary of ultimate holding company 77459437-5
Ltd.
ALSTOM (China) Investment Co., Ltd. The company's largest shareholder 71092378-2
ALSTOM Technical Services (Shanghai) Co., Ltd. A subsidiary of ultimate holding company 60742241-0
Wuhan Boiler Group Co., Ltd. The second largest shareholder 17771651-4
Wuhan Boiler Group Valve Co., Ltd. Subsidiary of the second largest shareholder 30024542-1
Wuhan Boiler (Group) Special Boiler Engineering Subsidiary of the second largest shareholder 87769907-3
Co., Ltd.
Wuhan Boiler (Group) Yuntong Co., Ltd Subsidiary of the second largest shareholder 30024726-7
5. Related party transactions
(1)Goods purchased and service received
Unit: RMB Yuan
Rule of price setting 2012 Jan-Jun 2011 Jan-Jun
Details of
Related parties and decision Proportio Proportio
transaction Amount Amount
procedures n (%) n (%)
ALSTOM Power Systems S.A
Raw materials Market price 2,837,547.00 1.7%
Etablissement Boilers
ALSTOM s.r.o Raw materials Market price 182,087.76 0.11%
ALSTOM s.r.o Equipment Market price 303,013.75 20.65%
ALSTOM Power Boiler GmbH Raw materials Market price 435,430.33 0.22%
ALSTOM Power Service Gmbh Technology service Market price 4,695,444.56 49.25%
Wuhan Boiler (Group) Yuntong
Transportation Market price 4,985,600.00 64.51%
Co., Ltd
ALSTOM Technical Services Boiler parts Market price
24,600,000.00 14.77%
(Shanghai) Co., Ltd.
Sales and service provided
Unit: RMB Yuan
Rule of price setting 2012 Jan-Jun 2011 Jan-Jun
Details of
Related parties and decision Proportion Proportio
transaction Amount Amount
procedures (%) n (%)
ALTOM Power Inc Products Market price 157,775,532.14 43.87%
ALSTOM Boiler Deutschland Products Market price 103,884,831.13 28.89%
GmbH
Alstom Estonia AS Products Market price 18,001,900.91 5.01%
ALSTOM (Wuhan) Engineering
Products Market price 2,121,588.32 100%
& Technology Co., Ltd.
88
2012 Interim Report of Wuhan Boiler Company Limited
(2)Information of related party trusteeship/contract
Information of trusteeship management/contract
Unit: RMB Yuan
Pricing Income of
Name of Information Amount Begin date basis on trusteeship/i
Name of Type of End date of Trust/contra
entrusting of involving in of income of ncome of
trustee trust/contrac trust/contrac ct income
party/contra trusted/cont trust/contrac trust/contrac trusteeship/i contract
/contractor t asset t effect
ctee ract assets t t ncome of recognized
contract in 2012
Information of entrusting/contrustee
Unit: RMB Yuan
Pricing Income of
Name of Information Amount Begin date
Name of Type of End date of basis on entrust/trust Entrust/trust
entrusting of involving in of
trustee entrust/trust entrust/trust income of ed assets ed income
party/contra entrust/trust entrust/trust entrust/trust
/contractor ed assets ed assets entrust/trust recognized effect
ctee ed assets ed assets ed assets
ed assets in 2012
Notes: none.
(3)Information of related party lease
Information of lease of the Company
Unit: RMB Yuan
Income
Information Amount Income
Name of Name of Category of Pricing effect on
of lease involving in Begin date End date recognized
leasor leasee lease assets basis the
assets lease assets in 2012
Company
Information of lease of the Company
Unit: RMB Yuan
Income
Information Amount Income
Name of Name of Category of Pricing effect on
of lease involving in Begin date End date recognized
leasor leasee lease assets basis the
assets lease assets in 2012
Company
Notes: none.
(4)Information of related party guarantee
Unit: RMB Yuan
Whether the
Guarantor Secured party Guarantee amount Begin date Due date guarantee was
accomplished or not
Notes: none.
(5)Related party call loan
Unit: RMB Yuan
Related party Amount of call loan Begin date Due date Note
Loan from banks and other financial institutions
Lending to banks and other financial institutions
(6)Information about assets transfer, debt reorganization of related parties
Unit: RMB Yuan
Pricing method 2012 2011
Type of
and decision
related Details of the
Related party procedures of Proportio Proportio
party transaction Amount Amount
related party n (%) n (%)
transaction
transaction
(7)Other related party transaction
Related party Transactions Amount
89
2012 Interim Report of Wuhan Boiler Company Limited
ALSTOM (Switzerland) Ltd PMX Financial software support fees 1,694,750.52
ALSTOM (Switzerland) Ltd PDMS software application service fees 181,648.83
ALSTOM IS&T SAS ITSAS fees 3,404,448.87
ALSTOM (Wuhan) Engineering & Technology Co., Ltd. Temporary staff 272,140.00
ALSTOM (Wuhan) Engineering & Technology Co., Ltd. Translation fees 187,452.00
ALSTOM (China) Investment Co.,Ltd Training 206,081.46
ALSTOM (China) Investment Co.,Ltd ITSSC service fees 2,141,874.22
Note: Alstom (China) Investment Co., Ltd., the controlling shareholder of the Company, entrusted China Construction Bank to
provide a shareholder loan of RMB 1,602,000,000.00 to the Company at 10% discount off the benchmark interest rate. The Company
paid RMB 47,476,945.50 loan interest in this report period.
6. Amounts due from/to related parties
Amount due from related parties
Unit: RMB Yuan
Name Related party Closing balance Opening balance
Accounts receivable ALSTOM Boiler Deutschland GmbH 121,143.57 125,629.94
Accounts receivable ALSTOM Power Inc 44,355,218.42 56,139,758.93
Accounts receivable ALSTOM Sizhou Electric Power Equipment (Qingdao)
0.00 40,000.00
Co. Ltd
Accounts receivable Wuhan Boiler (Group) Special Boiler Engineering Co.,
9,954,995.28 9,954,995.28
Ltd.
Prepayment ALSTOM Technical Services (Shanghai) Co., Ltd. 3,260,000.00 3,260,000.00
Other receivables ALSTOM Boiler Deutschland GmbH 2,203,068.25 1,929,580.66
Other receivables ALSTOM (Switzerland) Ltd 193,639.50 254,359.93
Other receivables ALSTOM Power GmbH 874,487.00 0.00
Other receivables ALSTOM Boiler France S.A 704,506.43 0.00
Other receivables ALSTOM Power Systems S.A Etablissement Boilers 0.00 35,836.70
Other receivables ALSTOM (Wuhan) Engineering & Technology Co., Ltd 2,121,588.32 0.00
Other receivables ALSTOM (China) Investment Co. Ltd 3,547,208.20 3,529,700.20
Other receivables Wuhan Boiler Group Co.,Ltd 64,030,488.11 64,030,488.11
Other receivables Wuhan Boiler Group Valve Co., Ltd. 240,571.49 240,571.49
Other receivables Wuhan Boiler Group Yuntong Co., Ltd. 10,171.01 10,171.01
Amount due to related parties
Unit: RMB Yuan
Name Related party Closing balance Opening balance
Accounts payable ALSTOM Boiler Deutschland GmbH 1,040,641.06 1,003,018.90
Accounts payable ALSTOM Power Energy Systems Indonesia 29,822.65 10,614.19
Accounts payable ALSTOM Power Inc 1,180,640.62 1,176,160.65
Accounts payable ALSTOM s.r.o 82,223.70 989,816.18
Accounts payable ALSTOM (Switzerland) Ltd 331,361.30
Accounts payable ALSTOM Power Service GmbH 11,772,599.40
Accounts payable ALSTOM (Wuhan) Engineering & Technology Co., Ltd 187,452.00
Accounts payable ALSTOM Technical Services (Shanghai) Co., Ltd. 4,767,000.00 4,767,000.00
Accounts payable Wuhan Boiler Group Yuntong Co., Ltd. 17,440.01 383,570.01
Accounts payable Wuhan Boiler Group Valve Co., Ltd. 441,310.80 1,099,530.54
Accounts payable Wuhan Boiler (Group) Special Boiler Engineering Co., Ltd. 15,903,704.17 24,225,755.73
Advance from customers ALSTOM Estonia AS 38,415,853.47 38,415,853.47
Advance from customers ALSTOM Boiler Deutschland GmbH 519,911,081.45 808,650,445.76
Other payable ALSTOM Power Inc 505,832.36 515,415.55
90
2012 Interim Report of Wuhan Boiler Company Limited
Other payable ALSTOM TP Transverse Technologies Rugby 86,278.57
Other payable ALSTOM (Switzerland) Ltd 156,522.71 4,258,401.06
Other payable ALSTOM Technologie Ltd (Switzerland) 29,599,128.00 30,903,465.60
Other payable ALSTOM IS&T SAS 6,145,127.63 6,054,216.36
Other payable ALSTOM Holdings 41,270.38
Other payable ALSTOM (China) Investment Co., Ltd 3,041,026.98 5,110,602.37
Other payable ALSTOM Beizhong Power(Beijing)Co.,Ltd 1,358,071.60 1,356,789.48
Other payable Wuhan Boiler Group Co.,Ltd 974,056.13 974,056.13
(X)Stock Payment
1. Overview of stock payment
Total of each equity instrument granted by the Company 0.00
Total of each equity instrument excised by the Company 0.00
Total of each equity instrument expired in 2012 0.00
Scope of excising price and remaining contract term of
stock options that externally published as at the
period-end
Scope of excising price and remaining contract term of
other equity instruments as at the period-end
Notes: none.
2. Information of stock payment settled by equity
Unit: RMB Yuan
Recognition method on fair value of equity instruments at the grant
date
Recognition method on the best estimate of the number of vesting
equity instruments
Reason for significant differences of estimate between 2012 and 2011
Accumulated amount of stock payment in capital reserves that settled
0.00
by equity
Total expense on recognition of stock payment that settled by equity
Notes: none.
3. Information of stock payment settled by cash
Unit: RMB Yuan
Recognition method of fair value of liabilities that bear by the
Company and base on stock or other equity instruments
Accumulated amount of liabilities that arising from stock payment
0.00
that settled by cash
Total expenses recognized from stock payment settled by cash 0.00
Notes: none.
4. Information of stock payment service
Unit: RMB Yuan
Total employee service exchanged by stock payment 0.00
Total other service exchanged by stock payment 0.00
5. Modification, termination of stock payment
(XI) Contingency
1. Contingent liabilities and its fiscal effect arising from unsettled lawsuit or arbitration
None
2. Contingent liabilities and its fiscal effect arising from guarantee offered to other companies
Other contingent liabilities and its fiscal effect: none.
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2012 Interim Report of Wuhan Boiler Company Limited
(XII)Commitments
1. Significant commitments
(1)Capital commitments
Up to 30 Jun 2012, the commitment related to purchases of long-term assets which the contract were signed but not reflected in the
financial statements amounted to RMB1, 490,400.67, USD105, 213.20 EUR1, 921.50.
，
(2)Other commitments
Up to 30 Jun 2012, the performance bond, tender bond and warranty bond issued by the Company remain unexpired amounted to
RMB68, 260,965.50, USD3, 126,923.00.
2. Fulfillment of previous commitments
(1)The performance of previous year's capital commitments from 2012 Jan to Jun: the newly increased capital commitments was
RMB435, 400.00, EUR1, 921.50; the amount of prior year's capital commitments fulfilled was RMB1,163,930.18 USD51,871.80
， ，
EUR15,071.50.
(2)The performance of previous year's other commitments from 2012 Jan to Jun: the newly increased performance bond RMB20,
556,105.50, USD3, 126,923.00. The amount of bond expired performance bond RMB29, 563,500.00, USD3, 126,923.00 and tender
bond RMB800, 000.00.
(XIII)Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
Unit: RMB Yuan
Influence number on financial Reason for fail to make
Item Details
conditions and operating results influence number
2. Notes of profit distribution after Balance Sheet Date
Unit: RMB Yuan
Drafted distributed profit or dividends
Profit or dividends proclaimed to distribute after review and
approval
3. Notes of other events after Balance Sheet Date
None.
(XIV)Notes of other significant events
1. Exchange of non-monetary assets
2. Debt reorganization
3. Enterprises combination
4. Lease
5. Closing financial instruments that externally published and able to convert into shares
6. Details of annuity plan and significant changes
7. Other significant events
Former controlling shareholder, Wuhan Boiler Group Co., Ltd, entered into a Share Transfer Agreement with Alstom (China)
Investment Co., Ltd on April 14, 2006. The transaction was completed on August 24, 2007 after approval from relevant authorities.
At present Alstom (China) Investment Co., Ltd is the controlling shareholder of the Company with 51% shareholdings.
The transaction includes the following key elements according to the Share Transfer Agreement (hereinafter as the “SPA”) signed on
April 14, 2006:
(1)License, Technical Transfer and Assistance Agreement between Alstom Technology Ltd and the Company about Steam Generator;
(2)Relocation and Relocation Team Agreement, Relocation Compensation Agreement;
(3)Statements and guarantee about related assets and liabilities, and further compensation guarantee, with the Company as the
92
2012 Interim Report of Wuhan Boiler Company Limited
beneficiary under SPA.
To the extent applicable, the value of the elements described above has been included in the preparation of 2012 Interim Financial
Statements. The full execution of above Agreement is critical to the future financial viability of the Company.
(XV) Notes of financial statements of parent company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable with
significant single amount
31,160,000. 8,542,474.9 62,049,07 14,302,475.0
and individually 7.21% 27.41% 10.38% 23.05%
00 9 8.35 0
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
Group A (using aging 313,203,53 118,689,50 422,516,5 137,823,743.
analysis) 72.5% 37.9% 70.67% 32.62%
0.28 3.86 51.97 44
Group B (No bad debt
15,455,137.
provision for account 3.58%
30
receivables)
328,658,66 118,689,50 422,516,5 137,823,743.
Subtotal of the groups 76.08% 37.9% 70.67% 32.62%
7.58 3.86 51.97 44
Accounts receivable with
insignificant single
72,165,841. 46,581,741. 113,324,6 76,721,578.4
amount and individually 16.71% 64.55% 18.95% 67.7%
10 10 78.40 0
withdrawn bad debt
provision
431,984,50 173,813,71 597,890,3 228,847,796.
Total -- -- -- --
8.68 9.95 08.72 84
Notes of category:
Closing accounts receivable that is individually significant and provisions for bad debts individually:
√ Applicable □ Inapplicable
Item Closing balance Bad debt provision Proportion Note
Difficult to collect
Guodian Lanzhou Thermopower Co., Ltd. 31,160,000.00 8,542,474.99 27.41%
due to quality issue
Total 31,160,000.00 8,542,474.99 --
In the group, accounts receivable that provision for bad debts by aging analysis:
√ Applicable □ Inapplicable
Closing balance Opening balance
Balance Balance
Aging of receivables
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Within 1 year (including 1 year)
including ： -- -- -- -- -- --
Within 1 year (including
108,328,518.42 34.59% 3,278,905.51 153,994,058.92 36.45% 4,619,821.77
1 year)
Sub-total (Within 1 year) 108,328,518.42 34.59% 3,278,905.51 153,994,058.92 36.45% 4,619,821.77
1-2 years(including 2
52,911,443.56 16.89% 1,587,865.17 5,654,629.94 1.34% 169,638.90
year)
113,100.00 0.04% 6,786.00 76,422,460.00 18.09% 4,585,347.60
2-3 years(including 3
93
2012 Interim Report of Wuhan Boiler Company Limited
year)
Above 3 years 151,760,468.30 48.45% 113,815,947.18 186,445,403.11 44.13% 128,448,935.17
3-4 years(including 4
29,652,555.28 9.47% 5,930,505.87 52,497,995.28 12.43% 10,499,599.06
year)
4-5 years(including 5
17,890,589.64 5.71% 3,578,117.93 19,997,589.64 4.73% 3,999,517.92
year)
Above 5 years 104,307,323.38 33.3% 104,307,323.38 113,949,818.19 26.96% 113,949,818.19
Total 313,203,530.28 -- 118,689,503.86 422,516,551.97 -- 137,823,743.44
In the group, accounts receivable that provision for bad debts by balance percentage:
□ Applicable √ Inapplicable
In the group, accounts receivable that provision for bad debts by other methods:
√ Applicable □ Inapplicable
Group name Closing balance Bad debt provision
No bad debt provision for account receivables 15,455,137.30 0.00
Total 15,455,137.30 0.00
Closing accounts receivable that is individually insignificant but provisions for bad debts individually:
√ Applicable □ Inapplicable
Company Closing balance Bad debt provision Proportion (%) Reasons for provision
Luoyang Golden Dragon Deduction for equipment
16,000.00 16,000.00 100%
Power Construction HQ maintenance
Shanxi Datang
Deduction for equipment
International Yungang 12,512,000.00 6,753,600.00 53.98%
maintenance
Thermal Power Co.Ltd
Retention is difficult to
Shandong Power No.3
2,091,395.00 2,091,395.00 100% collect due to the quality
Project Company (India)
issue
The Company is required
to bear part of the
Dongfang Xiwang
subsequent costs and thus
Baotou Xitu Aluminium 24,820,000.00 8,000,000.00 32.23%
the receivable amount is
Co., Ltd.
not expected to be fully
recoverable
Retention is difficult to
China Machine Import
4,086,723.05 4,086,723.05 100% collect due to the quality
and Export Company
issue
Retention is difficult to
China Machine Import
4,086,723.05 4,086,723.05 100% collect due to the quality
and Export Company
issue
Gansu Diantou Jinchang Retention is difficult to
2,678,000.00 580,000.00 21.66%
Generating Co.Ltd collect
The customer has
disputes over the contract
Wuhan Zhongjia Natural settlement and the
385,000.00 203,000.00 52.73%
Gas Compressor Co.Ltd receivable amount is not
expected to be fully
recoverable.
Datang Liaoyuan Power Deduction for equipment
Plant 10,245,000.00 10,245,000.00 100%
maintenance
Datang Liaoyuan Power Deduction for equipment
Plant 11,245,000.00 10,519,300.00 93.55%
maintenance
94
2012 Interim Report of Wuhan Boiler Company Limited
Total 72,165,841.10 46,581,741.10 64.55% --
(2)Information of accounts receivable reversed or recovered in the report period
Unit: RMB Yuan
Bad debt provision
Basis for bad Amount reversed or
Item Reason for reversed or collected before reversal or
debt provision collected
collection
Shanxi Hongdong Huashi Management took measures to
Thermopower Co., Ltd. Aging above 5
strengthen the collection and 4,807,084.45 4,807,084.45
years
increase collection efforts
Dongfang Electrics Group Management took measures to
Beijing Branch Aging above 5
strengthen the collection and 250,000.00 250,000.00
years
increase collection efforts
Shuangyashan Thermopower Management took measures to
Co.Ltd Aging above 5
strengthen the collection and 1,500,000.00 1,500,000.00
years
increase collection efforts
Shanxi Hexiang Project Management took measures to
Management Co., Ltd. Aging above 5
strengthen the collection and 3,439,000.00 3,439,000.00
years
increase collection efforts
Xinjiang Huadian Changji Management took measures to
Thermopower Company Aging above 5
strengthen the collection and 500,000.00 500,000.00
years
increase collection efforts
Shanxi Lu'an Yuwu Management took measures to
Thermopower Co., Ltd. Aging above 5
strengthen the collection and 500,000.00 500,000.00
years
increase collection efforts
Xinxiang Yuxin Generating Management took measures to
Co.,Ltd. Aging above 5
strengthen the collection and 1,300,000.00 1,300,000.00
years
increase collection efforts
Total -- -- 12,296,084.45 --
Withdrawal of closing accounts receivable that is individually significant or insignificant but provisions for bad debts individually:
Details Book balance Provision for bad debts Withdraw proportion (%) Reason
Total 0.00 0.00 -- --
Notes of individually insignificant but was of big risk after grouped by credit risk accounts receivable: none.
(3)Information of accounts receivable that written off in the report period
Unit: RMB Yuan
Whether arising
Name of company Nature Date Amount Reason from related party
transaction or not
Total -- -- -- --
Notes: none.
(4)Information of shareholders with more than 5% (including 5%) of the voting shares of the Company in
account receivable in report period
□ Applicable √ Inapplicable
(5)Nature or details of other significant accounts receivable
(6)Information of top five
Unit: RMB Yuan
The relationship with the
Company Amount Age Proportion
Company
Guodian Xian thermoelectric project
Non-affiliated 61,708,600.00 1-2 years 14.15%
preparatory office
95
2012 Interim Report of Wuhan Boiler Company Limited
ALSTOM Power Inc. Affiliated 44,355,218.42 Within 1 year 10.17%
Shanxi Zhenxing Group Non-affiliated 39,820,000.00 Above 5 years 9.13%
Shandong Weiqiao Aluminium Co., Ltd. Non-affiliated 35,000,999.99 1-2 years 8.03%
Guodian Lanzhou Thermopower Co., Ltd. Non-affiliated 31,160,000.00 1-2 years 7.15%
Total -- 212,044,818.41 -- 48.63%
(7)Information of related parties accounts receivable
Unit: RMB Yuan
Company The relationship with the Company Amount Proportion
ALSTOM Power Inc A subsidiary of the ultimate holding company 44,355,218.42 10.27%
Wuhan Boiler (Group) Special Boiler
A subsidiary of the second largest shareholder 9,954,995.28 2.3%
Engineering Co., Ltd.
ALSTOM Boiler Deutschland GmbH A subsidiary of the ultimate holding company 121,143.57 0.03%
Total -- 54,431,357.27 12.6%
(8)
RMB0.00 was of money transfer of accounts receivable that was no in compliance with conditions of termination recognition.
(9) If securitization is carried out on accounts receivable as the underlying asset, please brief on the
arrangement of relevant transactions.
2. Other accounts receivable
(1) Other accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Balance Balance
Category debts debts
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Other accounts
receivable that is
26,673,222.3 26,673,222.3 26,673,222.3
individually significant 19.25% 100% 19.14% 26,673,222.30 100%
1 1 0
and provisions for bad
debts individually
Other accounts receivable that provisions for bad debts by group
Group A (using aging 85,583,732.9 84,930,108.9
analysis) 61.78% 7,861,710.78 9.19% 60.94% 6,594,689.12 7.76%
4 8
Group B (No bad debt
23,642,203.0 25,121,744.8
provision for account 17.07% 18.03%
8 2
receivables)
109,225,936. 110,051,853.
Subtotal of group 78.85% 7,861,710.78 9.19% 78.97% 6,594,689.12 7.76%
02 80
Other accounts
receivable that is
individually insignificant 2,636,308.95 1.9% 2,636,308.95 100% 2,636,308.95 1.89% 2,636,308.95 100%
but provisions for bad
debts individually
138,535,467. 37,171,242.0 139,361,385.
Total -- -- -- 35,904,220.37 --
28 4 05
Notes of category:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√ Applicable □ Inapplicable
Item Closing balance Bad debt provision Proportion Note
Shanxi Zhenxing Group 6,722,635.47 6,722,635.47 100% Projects are suspended
96
2012 Interim Report of Wuhan Boiler Company Limited
Shandong Luneng and the amount is not
Material Group Co. 19,950,586.84 19,950,586.84 100% expected to be
Limited recoverable
Total 26,673,222.31 26,673,222.31 -- --
In the group, other accounts receivable that provision for bad debts by aging analysis:
√ Applicable □ Inapplicable
Closing balance Opening balance
Balance
Aging of receivables
Proportio Bad debt provision Proportio Bad debt provision
Amount Amount
n(%) n(%)
Within 1 year (including 1 year)
Including:
Within 1 year (including 1
7,006,440.13 8.19% 210,193.20 4,652,284.00 5.48% 139,568.52
year)
Sub-total (Within 1 year) 7,006,440.13 8.19% 210,193.20 4,652,284.00 5.48% 139,568.52
2,879,697.20 3.36% 86,390.92 4,580,229.37 5.39% 137,406.88
1-2 years(including 2 year)
54,102,803.27 63.22% 3,246,168.20 63,012,895.74 74.19% 3,780,773.74
2-3 years(including 3 year)
Above 3 years
21,594,792.34 25.23% 4,318,958.47 12,684,699.87 14.94% 2,536,939.98
3-4 years(including 4 year)
4-5 years(including 5 year)
Above 5 years
Total 85,583,732.94 -- 7,861,710.78 84,930,108.98 -- 6,594,689.12
In the group, other accounts receivable that provision for bad debts by balance percentage:
□ Applicable √ Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
√ Applicable □ Inapplicable
Group name Closing balance Bad debt provision
No bad debt provision for account receivables 23,642,203.08 0.00
Total 23,642,203.08 0.00
Other closing accounts receivable that is individually insignificant but provisions for bad debts individually:
√ Applicable □ Inapplicable
Company Closing balance Bad debt provision Proportion Reason
3RC Company Limited 336,604.05 336,604.05 100% Bankruptcy
Pingtai Power Development
424,514.70 424,514.70 100% Project suspended
Co.,LTD
Henan Dengfeng Xiangyang
32,430.77 32,430.77 100% Project suspended
Power Co.,Ltd
Qindao Houhai Themal Power
518,227.71 518,227.71 100% Project suspended
Co.,Ltd
Jiangsu Wangda Paper Co.,Ltd 723,504.31 723,504.31 100% Project suspended
Qingtongxia Aluminium
5,736.41 5,736.41 100% Project suspended
Co.,Ltd
Henan Zhongmai Power Difficult to execute the court judge
173,411.00 173,411.00 100%
Co.,Ltd
Shanmenxia Huineng Themal Difficult to execute the court judge
143,897.00 143,897.00 100%
Power Co.,Ltd
97
2012 Interim Report of Wuhan Boiler Company Limited
Shanxi Zhenxin Group Co.,Ltd 277,983.00 277,983.00 100% Difficult to execute the court judge
计合 2,636,308.95 2,636,308.95 100% --
(2)Information of other accounts receivable of reversed or recovered in report period
Unit: RMB Yuan
Amount of reversed or
Reason for reversal or Basis on recognition of recovered that previously Amount of reversed or
Details
recovery provision for bad debts recognized as provision recovered
for bad debts
Total -- -- 0.00 --
Withdrawal of other closing accounts receivable that is individually significant or insignificant but provisions for bad debts
individually:
Details Book balance Provision for bad debts Withdraw proportion (%) Reason
Total 0.00 0.00 -- --
Notes of other accounts receivable that is individually insignificant but was of big risk after grouped by credit risk:
(3)Information of written off other accounts receivable
Unit: RMB Yuan
Whether arising from
Nature of other
Name of company Date of written off Amount Reason related-party
accounts receivable
transactions or not
Subsidiary
Wuyu Alloy Plant Loan 2012/06/30 504,775.00 cancelled, not No
recoverable
Wuhan Boiler Group Subsidiary
Power Machinery
Sale of goods 2012/06/30 30,000.00 cancelled, not No
Manufacturing recoverable
Co.,Ltd
Subsidiary
Wuhan Boiler Steel
Deposit 2012/06/30 10,000.00 cancelled, not No
Structure Plant
recoverable
Total -- -- 544,775.00 -- --
Notes:
In May 2012, the business registration certificate of Wuhan Boiler Boyu Industrial Co.,Ltd is cancelled, it is not included in the
consolidation scope at the end of the reporting period.
(4) Information of shareholders with more than 5% (including 5%) of the voting shares of the Company in
other accounts receivable in report period
√ Applicable □ Inapplicable
Closing balance Opening balance
Company
Amount Bad debt provision Amount Bad debt provision
Wuhan Boiler Group Co., Ltd. 64,030,488.11 5,355,117.11 64,030,488.11 4,586,848.27
ALSTOM (China) Investment Co., Ltd. 3,547,208.20 106,416.25 3,529,700.20 105,891.01
Total 67,577,696.31 5,461,533.36 67,560,188.31 4,692,739.28
(5)Nature or details of significant other accounts receivable
(6)Information of the top five
Unit: RMB Yuan
Company The relationship with the Amount Aging Proportion of the
Company total (%)
Wuhan Boiler Group Co., Ltd The company's 64,030,488.11 3-4 years 46.3%
98
2012 Interim Report of Wuhan Boiler Company Limited
second-largest shareholder
Shandong Luneng Material Group Co. Ltd Non-affiliated 25,659,390.26 2-3 years 18.56%
Donghu Development Zone Committee Non-affiliated 10,774,265.00 7.79%
Shanxi Zhengxin Group Co., Ltd. Non-affiliated 6,722,635.47 4.86%
Binzhou Beihai New Material Co.,Ltd Non-affiliated 4,068,376.07 2.94%
Total -- 111,255,154.91 -- 80.45%
(7)Information of other account receivable
Unit: RMB Yuan
The relationship with the Amount
Company Proportion of the total (%)
Company
ALSTOM Boiler Deutschland A subsidiary of the ultimate
2,203,068.25 1.59%
GmbH holding company
ALSTOM (Wuhan) A subsidiary of the ultimate
Engineering & Technology holding company 2,121,588.32 1.53%
Co., Ltd
A subsidiary of the ultimate
Alstom Power Service GmbH 874,487.00 0.63%
holding company
A subsidiary of the ultimate
ALSTOM Boiler France S.A 704,506.43 0.51%
holding company
A subsidiary of the ultimate
ALSTOM (Switzerland) Ltd 193,639.50 0.14%
holding company
Wuhan Boiler Group Valve The company's second-largest
240,571.49 0.17%
Co.,Ltd shareholder
Wuhan Boiler Group Yuntong The company's second-largest
10,171.01 0.01%
Co.,Ltd shareholder
计合 -- 6,348,032.00 4.58%
(8)
RMB0.00 was of money transfer of other accounts receivable that is not in compliance with conditions of termination recognition.
(9)If securitization is carried out with underlying of other accounts receivable, please brief on arrangement
of relevant transactions.
3. Long-term equity investments
Unit: RMB Yuan
Explanati
ons on
difference
Withdraw
s between
al of
Sharehold Voting sharehold Provision
Accounti Initial provision Cash
Opening Increase/ Closing ing right ing for
Company ng investmen for bonus in
balance decrease balance Proportio Proportio proportio impairme
method t cost impairme 2012
n n n and nt loss
nt loss in
voting
2012
right
proportio
n
Wuhan
Lan
Xiang
Power
Environm
ental Cost 14,000,00 24,984,50 24,984,50
95% 95% 0.00 0.00 0.00
Protectio method 0.00 0.00 0.00
n
Technolo
gy
Company
Limited
99
2012 Interim Report of Wuhan Boiler Company Limited
Wuhan
Boiler Bo
Cost 14,249,78 14,249,78 -14,249,7
Yu
method 7.13 7.13 87.13
Industrial
Co., Ltd.
28,249,78 39,234,28 -14,249,7 24,984,50
Total -- -- -- -- 0.00 0.00 0.00
7.13 7.13 87.13 0.00
Notes:
1. As of 30 Jun 2012 Wuhan Lan Xiang Power Environmental Protection Technology Company Limited has ceased its business
activities;
2. In May 2012 business registration certificate of Wuhan Boiler Bo Yu Industrial Co., Ltd was cancelled, which resulted in decrease
of long-term equity investment 14,249,787.13.
4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
Main business sales 359,625,071.80 230,575,383.58
Other operating income 16,952,630.50 17,756,668.42
Cost of sales 345,842,634.98 277,531,191.13
Total 722,420,337.28 525,863,243.13
(2)Main business (Classified by industry)
√ Applicable □ Inapplicable
2012 Jan-Jun 2011 Jan-Jun
Industries
Operating revenue Cost of sales Operating revenue Cost of sales
Machinery
359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
manufacturing
Total 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
(3)Main business (Classified by product)
√ Applicable □ Inapplicable
2012 Jan-Jun 2011 Jan-Jun
Products
Operating revenue Cost of sales Operating revenue Cost of sales
Boiler 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
Total 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
(4) Main business (Classified by area)
√ Applicable □ Inapplicable
2012 Jan-Jun 2011 Jan-Jun
Area
Operating revenue Cost of sales Operating revenue Cost of sales
Domestic 90,248,828.49 89,513,240.29 172,919,183.58 197,710,044.94
Overseas 269,376,243.31 239,228,665.07 57,656,200.00 65,922,182.01
Total 359,625,071.80 328,741,905.36 230,575,383.58 263,632,226.95
(5)List of the top five customers
Unit: RMB Yuan
Customers Sales of main business Proportion of total revenue (%)
ALSTOM Power Inc. 157,775,532.14 43.87%
ALSTOM Boiler Deutschland GmbH 103,884,831.13 28.89%
Gansu Diantou Jinchang Generating Co.,Ltd 78,619,870.86 21.86%
Shandong Weiqiao Aluminum and Electricity Co.,Ltd 20,467,321.07 5.69%
ALSTOM Estonia AS 18,001,900.91 5.01%
Total 378,749,456.11 105.32%
Notes:
100
2012 Interim Report of Wuhan Boiler Company Limited
During report period reversed revenue RMBM10.286 from Perawang project mainly due to postponement of this project, which
resulted in increase in estimated project costs and decrease in project margin.
5. Investment income
(1)List of investment income
Unit: RMB Yuan
Item 2012 Jan-Jun 2011 Jan-Jun
Long-term equity investment income accounted by cost
method
Long-term equity investment income accounted by equity
method
Investment income arising from disposal of long-term equity
-14,249,787.13 0.00
investments
Investment income received from holding of trading financial
assets
Investment income received from holding of held-to-maturity
investments
Investment income received from holding of
available-for-sale financial assets
Investment income received from disposal of trading
financial assets
Investment income received from holding of held-to-maturity
investments
Investment income received from available-for-sale financial
assets
Other
Total -14,249,787.13 0.00
(2)Long-term equity investment income accounted by cost method
Unit: RMB Yuan
Name of investee 2012 Jan-Jun 2011 Jan-Jun Reason for increase/decrease YoY
Total --
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Name of investee 2012 Jan-Jun 2011 Jan-Jun Reason for increase/decrease YoY
Total --
Notes:
In May 2012 business registration certificate of Wuhan Boiler Boyu Industrial Co.,Ltd was cancelled, it is no longer included in
consolidation scope.
6. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
Supplemental information 2012 Jan-Jun 2011 Jan-Jun
1. Reconciliation of net profit to net cash flows generated from
-- --
operations：
Net profit -33,156,101.72 -118,684,816.63
Add: Provision for assets impairments -166,643,276.90 29,841,701.58
Depreciation of fixed assets, oil and gas assets and productive
biological assets 21,226,963.46 19,936,384.19
Amortization of intangible assets 4,043,804.01 3,484,908.98
Amortization of long-term deferred expense
Losses/gains on disposal of property, intangible asset and other
long-term assets (gains: negative) -7,286.49 111,921.43
Losses/gains on scrapped of fixed assets (gains: negative)
Losses/gains from variation of fair value (gains: negative) -2,850,685.36 11,547,097.95
Financial cost (income: negative) 56,377,660.64 31,503,921.68
Investment loss (gains: negative) 14,249,787.13
101
2012 Interim Report of Wuhan Boiler Company Limited
Decrease in deferred tax assets (increase: negative) 27,679,554.95 -5,331,741.08
Increase in deferred tax liabilities (decrease: negative)
Decrease in inventory (increase: negative) 348,062,728.44 -70,932,043.52
Decrease in accounts receivable from operating activities (increase:
negative) 148,016,778.20 -120,908,433.07
Increase in accounts payable from operating activities (decrease:
negative) -389,760,796.02 85,792,948.90
Others
Net cash flows generated from operating activities 27,239,130.34 -133,638,149.59
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
Debt converted into capital
Convertible company bonds due within 1 year
Financing leased fixed assets
3. Change of cash and cash equivalent: -- --
Closing balance of cash 17,508,056.74 9,017,255.78
Less: opening balance of cash 18,949,394.34 9,827,144.54
Plus: closing balance of cash equivalent
Less: opening balance of cash equivalents
The net increase in cash and cash equivalents -1,441,337.60 -809,888.76
7. Information of counter purchase of assets and liabilities recognized by evaluation value
Unit: RMB Yuan
Name Evaluation value Original book value
Asset
Liabilities
(XVI)Supplemental information
1. Return on equity and earnings per share
Unit: RMB Yuan
The weighted average ROE EPS
Profit in 2012
(%) Basic EPS Diluted EPS
Net profit attributable to the Company's
-0.11 -0.11
common stock shareholders
Net profit after deducting non-recurring gains
and losses attributable to shareholders of the -0.14 -0.14
Company's common stock
2. Explanation on abnormal conditions of items in main accounting statements of the Company and reasons
(1) Notes receivable decreased by 68.51%, mainly due to endorsement to pay vendors;
(2) Closing balance of inventory decreased by 97.95%, of which i) raw materials decreased by 49.88, mainly due to raw materials
were used in production for projects under execution, and disposal of obsolete materials; ii) Construction contract assets decreased by
145.43%, mainly due to production progress of projects under execution is slower than progress billing which resulted in negative
balance of construction contract assets;
(3) Deferred tax assets decreased by 34.22%, mainly due to settlement of project and collection of receivables which resulted in
reducing in contract loss provision and bad debt provision respectively;
(4) Other non-current assets decreased by 100%, mainly due to the settlement of unexpired forward contract;
(5) Notes payables decreased by 100%, mainly due to endorsement of received notes to pay vendors;
(6) Advance from customers decreased by 34.13%, mainly due to settlement of contract payment of Sostanj project on construction
contract in progress;
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2012 Interim Report of Wuhan Boiler Company Limited
(6) Other non-current liabilities decreased by 50.73%, mainly due to the increase in unrealized gain incurred by newly increased
forward contracts;
(7) Revenue increased by 51.64% as compared to last year same period, mainly due to increase in recognition of revenue from
overseas projects;
(8) Business taxes and surcharges decreased by 99.11% as compared to last year same period, mainly due to decrease in taxable other
operating income;
(9) Administration expenses decreased by 44.65% as compared to last year same period, mainly due to decrease in consultancy fess,
maintenance fees and travel expenses etc;
(10) Finance expenses increased by 78.95% as compared to last year same period, mainly due to increase in i) interest expense
resulted from increase in entrusted loan; ii) increase in foreign exchange loss;
(11) Impairment loss decreased by 223.00% as compared to last year same period, mainly due to collection of receivables which
resulted in decrease in bad debt provision;
(12) Fair value gains increased by 124.69% as compared to last year same period, mainly due to increase in unrealized gain incurred
by hedge accounting;
(13) Non-operating income increased by 718.28% as compared to last year same period, mainly due to write-off of payables in
subsidiary Wuhan Boiler Boyu Industrial Co.,Ltd which was not in consolidation scope at the end of the report period;
(14) Non-operating expenses decreased by 91.41% as compared to last year same period, mainly due to decrease in loss incurred
from disposal of fixed assets.
IX. Documents for Reference
Documents for Reference
1. Original copy of 2012 Interim Report with the signature of Chairman of the Board of Directors of the Company;
2. Original copy of Financial Report with the signatures of Legal Representative, Finance Director and Accounting Manager and
the Company Seal;
3. All documents of the Company disclosed on newspapers designated by CSRC in the report period;
4. Articles of Association of the Company.
Chairman of the Board of Directors: YEUNG Kwok Wei Richard
Date for submission approved by the Board of Directors: August 27, 2012
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