2013 Interim Report of Wuhan Boiler Company Limited
Wuhan Boiler Company Limited
2013 Interim Report
2013-034
August 2013
1
2013 Interim Report of Wuhan Boiler Company Limited
Section I Important Notes, Contents & Definition
The Board of Directors, the Board of Supervisors as well as all Board Directors, Supervisors and Senior
Management of Wuhan Boiler Company Limited (hereinafter referred to as “the Company”) hereby warrant that
this Interim Report is authentic, accurate and complete without any misstatement, misleading statement or
material omission and will take individual and joint and several liabilities for that..
1. Net profit attributable to shareholders of the Company was negative for both 2011 and 2012 and net assets as at
the end of 2012 were negative. According to the Stock Listing Rules of Shenzhen Stock Exchange (2012
Revision), the stocks of the Company still adopted a delisting risk warning (*ST) after relisted since Feb. 8, 2013.
2. On Apr. 27, 2013, the Company disclosed 2012 Annual Report and 2013 Quarterly One Report. As audited by
Zhonghuan Haihua Certified Public Accountants Co., Ltd., net profit attributable to shareholders of the Company
was RMB -94,341,156.10 for 2012. A standard Auditor’s Report with unqualified opinion was issued by
Zhonghuan Haihua Certified Public Accountants Co., Ltd. for the Company. For the first quarter of 2013, net
profit attributable to shareholders of the Company was RMB -11,982,520.40. If the result of 2013 is loss with
negative net assets, there will be a risk of listing suspension of the stock of the Company. 3. The Board of
Directors of the Company hereby reminds investors that Securities Times, Ta Kung Pao and www.cninfo.com.cn
are designated by the Company as information disclosure media and all information of the Company shall be
subject to the disclosure of the Company on the said media. The Company will perform its duty of information
disclosure in time in strict compliance with relevant laws and regulations. And investors are kindly reminded to
invest rationally and pay attention to possible risks.
All Board Directors attended the Board Meeting for reviewing this Report.
The Company planned not to distribute cash dividends, or grant bonus shares, or transfer capital reserves into
share capital.
Mr. YEUNG Kwok Wei Richard, Company Principal, Mr. Chin Wee Hua, Accounting Principal, and Mr. Li Yihao,
the Accounting Division’s Principal (Accounting Manager), hereby ensure that the Financial Report enclosed in
this Interim Report is true, accurate and complete.
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2013 Interim Report of Wuhan Boiler Company Limited
Contents
2013 Interim Report...........................................................................................................................1
Section I Important Notes, Contents & Definition..........................................................................2
Section II Company Profile...............................................................................................................5
Section III Summary of Accounting Data and Financial Indexes .................................................7
Section IV Report of the Board of Directors ...................................................................................9
Section V Significant Events ...........................................................................................................15
Section VI Changes in Shares and Particulars about Shareholders ...........................................24
Section VII Particulars about Directors, Supervisors and Senior Management .......................27
Section VIII Financial Report.........................................................................................................28
Section IX Documents Available for Reference...........................................................................104
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2013 Interim Report of Wuhan Boiler Company Limited
Definition
Term Refers to Definition
CSRC Refers to China Securities Regulatory Commission
Hubei CSRC Refers to Hubei Securities Regulatory Bureau under China Securities
Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
The Company Law Refers to The Company Law of the People’s Republic of China
The Securities Law Refers to The Securities Law of the People’s Republic of China
The Stock Listing Rules Refers to The Stock Listing Rules of Shenzhen Stock Exchange
(Revised in 2012)
The Articles of Association Refers to The Articles of Association of Wuhan Boiler Company
Limited
Controlling shareholder Refers to Alstom (China) Investment Company Limited
WBG Refers to Wuhan Boiler Group Co., Ltd
Lanxiang Company Refers to Wuhan Lanxiang Energy & Environmental Protection
Technologies Inc.
Alstom Refers to Alstom S.A. (a France-listed company)
Alstom Holdings Refers to Alstom Holdings S.A.
Company, the Company Refers to Wuhan Boiler Company Limited
The cninfo website Refers to http://www.cninfo.com.cn
Report period Refers to Jan. 1, 2013- Jun. 30, 2013
Yuan, Thousand Yuan, Million Yuan, Refers to RMB Yuan, RMB Thousand Yuan, RMB Million Yuan,
Billion Yuan RMB Billion Yuan
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2013 Interim Report of Wuhan Boiler Company Limited
Section II Company Profile
I. Basic information of the Company
Stock abbreviation *ST WuguoB Stock code 200770
Stock abbreviation after
change (if any)
Stock exchange listed with Shenzhen Stock Exchange
Chinese name of the Company 司公限有份股炉锅汉武
Abbr. of the Chinese name of
the Company (if any)
份股锅武
English name of the Company
WUHAN BOILER COMPANY LIMITED
(if any)
Abbr. of the English name of
WBC
the Company (if any)
Legal representative of the
YEUNG Kwok Wei Richard
Company
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
III. Other information
1. Contact information of the Company
Did any change occur to the registered address, office address and the postal code, website address and email
address of the Company during the report period?
□ Applicable √ Inapplicable
The registered address, office address and the postal code, website address and email address of the Company did
not change during the report period. The said information can be found in 2012 Annual Report.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the report period?
□ Applicable √ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this Interim Report and the location where this Interim Report is placed did not change during the
report period. The said information can be found in 2012 Annual Report.
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2013 Interim Report of Wuhan Boiler Company Limited
3. Change of the registered information
Did any change occur to the registered information during the report period?
□ Applicable √ Inapplicable
The registration date and place of the Company, its business license No., taxation registration No. and
organizational code did not change during the report period. The said information can be found in the 2012
Annual Report.
4. Other relevant information
Did any change occur to other relevant information during the report period?
□ Applicable √ Inapplicable
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2013 Interim Report of Wuhan Boiler Company Limited
Section III Summary of Accounting Data and Financial Indexes
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
□ Yes √ No Unit: RMB Yuan
Report period Same period of last year Year-on-year change ）％（
Operating revenues (RMB Yuan) 462,281,106.75 376,577,702.30 22.76%
Net profit attributable to shareholders of
-36,438,887.02 -24,383,589.49 -49.44%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after deducting non-recurring -39,283,319.56 -25,794,427.78 -52.29%
gains and losses (RMB Yuan)
Net cash flows from operating activities
-249,198,005.65 27,329,130.34 -1,011.84%
(RMB Yuan)
Basic EPS (RMB Yuan/share) -0.12 -0.08 -50%
Diluted EPS (RMB Yuan/share) -0.12 -0.08 -50%
As at the end of the report
As at the end of last year Year-on-year change ）％（
period
Total assets (RMB Yuan) 1,292,483,390.86 1,623,377,051.66 -20.38%
Net assets attributable to shareholders of
-1,279,658,424.99 -1,243,219,537.97 -2.93%
the Company (RMB Yuan)
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
Report period Same period of last year Closing amount Opening amount
According to Chinese
-36,438,887.02 -24,383,589.49 -1,279,658,424.99 -1,243,219,537.97
accounting standards
Items and amounts adjusted according to international accounting standards
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
Report period Same period of last year Closing amount Opening amount
According to Chinese
-36,438,887.02 -24,383,589.49 -1,279,658,424.99 -1,243,219,537.97
accounting standards
Items and amounts adjusted according to overseas accounting standards
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2013 Interim Report of Wuhan Boiler Company Limited
3. Explain reasons for the differences between accounting data under domestic and overseas accounting
standards
□ Applicable √ Inapplicable
III. Items and amounts of non-recurring gains and losses
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the Scrap and gain/loss on disposal
333,430.15
offset part of asset impairment provisions) of fixed assets
The policy prize from the
Government grants recognized in the current period, except for
Municipal Bureau of Finance for
those acquired in the ordinary course of business or granted at
538,888.00 2012 and deferred revenue
certain quotas or amounts according to the country’s unified
related to new factory land use
standards
right
Indemnity from supplier for
Other non-operating income and expenses other than the above 1,972,114.39
product quality issue
Total 2,844,432.54 --
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Public Listed Companies – Non-recurring
Gains and Losses, or classifies any non-recurring gain/loss item mentioned in the said explanatory announcement
as a recurrent gain/loss item
□ Applicable √ Inapplicable
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2013 Interim Report of Wuhan Boiler Company Limited
Section IV Report of the Board of Directors
I. Overview
Developments in the industry during the report period:
According to the National Bureau of Statistics, in the first half of 2013, the power output of power plants above
the designated size in the country totaled 2.43 trillion kwh, increased 4.4% from the same period of last year.
Power generating equipment operation reached 2,173 hours, down 64 hours when compared with the same period
of last year. A total investment of RMB 306.5 billion was made, representing a year-on-year growth of 7.4%, with
the power source investment and the power grid investment down 3.8% and up 19.1% respectively on the
year-on-year basis. With a newly-added installed capacity of 32.43 million kw in the report period, the installed
capacity of power plants of 6,000 kw or above in the country reached 1.142 billion kw up to the end of Jun. 2013,
up 9.3% from a year earlier, with the installed power generation capacity from renewable energy reaching 293
million kw, representing a year-on-year growth of 14%.
Hydropower investment dropped while the equipment operation hours increased from a year earlier. In the first
six months of this year, hydropower investment registered a year-on-year drop of 7.3%; the newly-added installed
hydropower generation capacity reached 8.89 million kw; the installed capacity of hydropower plants of 6,000 kw
or above in the country reached 222 million kw by the end of Jun. 2013, up 9.6% from a year earlier; and the
output of hydropower plants of 6,000 kw or above in the country increased 15.6% from the same period of last
year, with the average operation hours being 1,532, representing a year-on-year increase of 76 hours.
Wind power investment and the equipment operation hours were both increased as compared with the same period
of last year. In the first six months of the year, wind power investment registered a year-on-year increase of 5.3%
and the newly-added installed grid-connected wind power generation capacity reached 4.10 million kw. By the
end of Jun. 2013, the installed grid-connected wind power generation capacity of the country reached 66.18
million kw, up 25.9% from a year earlier. The output of grid-connected wind power increased 39.3% as compared
with the same period of last year, with the equipment operation hours being 1,101, a year-on-year increase of 91
hours, representing an increase of the wind power equipment utilization rate. At the end of Jun., the installed
capacity of grid-connected solar power plants of 6,000 kw or above in the country reached 4.64 million kw, with
the first half of the year witnessing a newly-added installed capacity of 1.38 million kw and a power output of 3
billion kwh.
Investments and equipment operation hours of nuclear power and thermal power both decreased from a year
earlier. In the first six months of the year, nuclear power investment registered a year-on-year drop of 18.2% and
the newly-added installed nuclear power generation capacity reached 2.21 million kw. At the end of June, the
installed nuclear power generation capacity reached 14.61 million kw, representing a year-on-year growth of
16.7%. The nuclear power output increased 3.0% from the same period of last year, with the equipment operation
hours being 3,543, decreased 195 hours on the year-on-year basis.
In the first half of 2013, thermal power investment registered a year-on-year decrease of 4.2% and the
newly-added installed thermal power generation capacity reached 15.85 million kw. At the end of June, the
installed capacity of thermal power plants of 6,000 kw or above in the country reached 834 million kw, increased
7.6% from the same period of last year. The thermal power output increased 2.6% from a year earlier, with the
equipment operation hours being 2,412, decreased 86 hours when compared with the same period of last year.
Discussion and analysis about the operation in the report period:
In the report period, the Management and all employees of the Company dedicated to the following four priorities
for 2013: 1. With Alstom technologies, the Company dedicated to expand its share in domestic market, capture
export orders for main boiler parts, and improve its market position. 2. The Company continued to strengthen its
core competitiveness to provide high quality products cater for Global market including EN/ASME/IBR code with
the strength of technology, brand and manufacturing capacity, and improve the manufacturing level. 3. The
Company provided more training to on-the-job employees, speeded up new technologies and new procedures
adaption and improved labor productivity so as to satisfy various requirements of different quality standards form
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2013 Interim Report of Wuhan Boiler Company Limited
different orders. 4. The Company continued to improve business operation management, focus on preparation of
technologies and raw materials, continue with cost control, and strengthen project execution and quality control so
as to complete orders with good quality and timely delivery.
The main business scope of the Company remained the same in the report period. It is mainly engaged in
development, production and sales of station boilers, special boilers, desulfuration equipment, other pressure
vessels and auxiliary equipment. Operating revenue achieved during the report period was RMB 462, 281,106.75,
increased by 22.76% over the same period of last year; operating profit was RMB -36,187,962.97, decreased by
2863.57% as compared to same period of last year; net profit attributable to shareholders of the Company was
RMB-36,438,887.02, decreased 49.44% over the same period of last year.
II. Main business analysis
Overview
In the report period, the Company was mainly engaged in production and sales of station boilers, with no major
change to the profit structure and sources.
Year-on-year changes in major financial data:
Unit: RMB Yuan
Report period Same period of last year YOY change ( %) Main reasons for change
Operating revenues 462,281,106.75 376,577,702.30 22.76%
Operating costs 449,540,053.90 345,842,634.98 29.98%
Selling expenses 6,460,847.20 3,748,312.10 72.37% Bid projects increased.
Insurance and other
Administrative expenses 13,059,491.70 9,044,200.97 44.4%
expenses increased.
Financial expenses 40,200,193.10 56,374,275.12 -28.69%
Less bad-debt provisions
Income tax expenses 3,103,374.39 27,679,554.95 -88.79%
reversed
R&D input 0.00 0.00 0%
Refund of down payment
Net cash flows from received from customer
-249,198,005.65 27,329,130.34 -1,011.84%
operating activities due to the changes in
project scope.
Net cash flows from Cash paid to acquire
-1,557,553.65 -16,492,875.47 90.56%
investing activities fixed assets decreased.
Net cash flows from Cash received as
133,805,900.00 -8,476,945.50 1,678.47%
financing activities borrowings increased.
Affected by changes of
Net increase in cash and net cash flows from
-114,387,590.26 -1,347,952.08 -8,386.03%
cash equivalents operating, investing and
financing activities
Major changes to the profit structure or sources of the Company during the report period:
□ Applicable √ Inapplicable
No major changes occurred to the profit structure or sources of the Company during the report period.
Progress in the report period of the future development planning in the disclosed documents of the Company such
as IPO prospectus, share offer prospectus, asset reorganization report, etc.:
□ Applicable √ Inapplicable
No future development and plan disclosed in the Company’s IPO prospectus, share offer prospectus and asset
reorganization report is carried down into this report period.
Review the progress of the previously disclosed business plan in the report period:
The Company actively explored domestic market; two major contracts were signed in the first half of 2013. One is
Taian project signed in Mar 2013, supplying 350MW supercritical boilers; with the help of Alstom platform,
Yanbu project signed in Jun 2013, supplying parts for 620MW boilers. During the report period, the Company
provided more training to on-the-job employees, improved labor productivity, strictly controlled expenses and
costs, strengthened project execution and quality control so as to complete orders with good quality and timely
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2013 Interim Report of Wuhan Boiler Company Limited
delivery.
III. Breakdown of main business
Unit: RMB Yuan
Increase/decrease Increase/decrease Increase/decrease
of operating of operating costs of gross profit
Operating Gross profit rate
Operating costs revenues over the over the same rate over the same
revenues (%)
same period of period of last year period of last year
last year (%) (%) (%)
Classified by industry:
Manufacturing 459,095,994.70 447,650,406.19 2.49% 27.66% 36.17% -6.09%
Total 459,095,994.70 447,650,406.19 2.49% 27.66% 36.17% -6.09%
Classified by product:
Boilers and
459,095,994.70 447,650,406.19 2.49% 27.66% 36.17% -6.09%
auxiliary
Total 459,095,994.70 447,650,406.19 2.49% 27.66% 36.17% -6.09%
Classified by region:
Domestic 107,191,166.56 124,808,687.05 -16.44% 18.77% 39.43% -17.25%
Overseas 351,904,828.14 322,841,719.14 8.26% 30.64% 34.95% -2.93%
Total 459,095,994.70 447,650,406.19 2.49% 27.66% 36.17% -6.09%
IV. Core competitiveness analysis
Core competitiveness represents the ability of a company to stay competitive in competition for a long time and is
the key for the sustainable development of a company. Amid domestic and overseas markets and development
opportunities, the Company is competitive in terms of brand, technology, marketing channel, etc.
1. Supported by the brand and technology advantages of Alstom
As a leader in the global power industry, Alstom has a history over 100 years in R&D of the boiler technology and
a history of 50 years in technology licenses and products export, with footprints in about 100 countries and
regions around the world. Its advanced thermal power boiler technologies mainly include subcritical, supercritical
and ultra-supercritical utility boiler technologies, as well as supercritical and subcritical circulating fluidized bed
boiler technologies.
2. Overall upgrade of the Company’s core technologies
Officially acquired the Company in 2007, Alstom (China) Investment Co., Ltd. has 51% shares in the Company.
Up until now, the core part of Alstom’s technology transfer to the Company has been completed and the Company
has been provided the latest (ultra) supercritical boiler technology, materials, software and standards, as well as
relevant personnel training. The Company is now able to produce utility boilers and their relevant products that
are in line with ASME standard, EN standard and domestic GB standard.
3. Sharing the global marketing network of Alstom
Main utility boiler producers within Alstom are: Alstom Power System GmbH (in Germany), with the 1,000MW
ultra-supercritical tower boiler technology; Alstom Power Systems SA. Etablissements Boilers (in France), with
the large-sized circulating fluidized bed boiler technology; and Alstom Power Inc. (in the US), with the 600MW
supercritical two pass boiler technology. The overall objective of Alstom towards the Company is to bring the
Company into Alstom’s global boiler market and improve its design, manufacture and management to globally
advanced levels so that it can effectively provide products for the Chinese and overseas markets.
4. Expansion of the domestic market
At present, the Company has the strong core technology and the latest technological achievements of Alstom, as
well as the world-leading production facilities and technologies, making it to be a competitor of Harbin Electric,
Shanghai Electric and Dongfang Electric in the domestic utility boiler market.
5. Increase of export orders
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2013 Interim Report of Wuhan Boiler Company Limited
The controlling shareholder of the Company and its related parties have provided all-rounded business support for
the Company by helping it secure many main component subcontracting orders of overseas projects to expand the
export market. Along with the overall upgrade of its technologies, the Company has gradually solidified its
position in the domestic market.
V. Investment analysis
1. Investments in equities of external parties
）））） （（（（
1 Investments in external parties
□ Applicable √ Inapplicable
）））） （（（（
2 Shareholdings in financial enterprises
□ Applicable √ Inapplicable
）））） （（（（
3 Securities investments
□ Applicable √ Inapplicable
Shareholding in other listed companies
□ Applicable √ Inapplicable
2. Entrusted financial management, derivative investments and entrusted loans
）））） （（（（
1 Entrusted financial management
□ Applicable √ Inapplicable
）））） （（（（
2 Derivative investments
Unit: RMB Ten thousand
Proportion
of the
closing
Related Type of Impairme investmen Actual
Initial Opening Closing
party derivative Beginning Ending nt t amount gain/loss
Operator Relation investmen investmen investmen
transactio investmen date date provision in the in report
t amount t amount t amount
n or not t (if any) Company’ period
s closing
net assets
(%)
Forward
Non-Rela
BNP No FX 2011-8-18 2013-4-2 0.00%
tion 4,866.40 4,866.40 - 45.13
contract
Forward
Non-Rela 2014-5-2
HSBC No FX 2013-4-24 0.87%
tion 26,468.19 7 26,468.19 1,115.41 87.38
contract
Forward
Non-Rela 2014-5-2
SCB No FX 2012-3-29 17.55%
tion 27,637.98 1 27,637.98 22,460.41 62.14
contract
Total 58,972.57 -- -- 58,972.57 23,575.82 18.42% 194.65
Capital source for derivative investment Self-funded
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2013 Interim Report of Wuhan Boiler Company Limited
）））） （（（（
3 Entrusted loans
□ Applicable √ Inapplicable
3. Utilization of the raised funds
）））） （（（（
1 General utilization of the raised funds
□ Applicable √ Inapplicable
）））） （（（（
2 Projects invested with raised funds as promised
□ Applicable √ Inapplicable
）））） （（（（
3 Change of projects invested with raised funds
□ Applicable √ Inapplicable
）））） （（（（
4 Projects invested with raised funds
□ Applicable √ Inapplicable
4. Analysis to main subsidiaries and shareholding companies
Main subsidiaries and shareholding companies:
Unit: RMB Yuan
Company Company Main Registered Operating Operating
Industry Total assets Net assets Net profit
name variety products/services capital revenues profit
R&D, design,
consultation and
technology
services related
to boilers, energy
& environmental
protection
products, steel
structures,
thermal
energy-related
Wuhan
products and
Lanxiang
their auxiliary
Environment
Subsidiary Boiler equipments; 20,000,000 35,257,462.26 34,050,668.13 -160,356.02 -160,356.02
Protection
marketing of
Technology
products
Co., Ltd
developed;
energy project
(non-land
construction
projects)
contracting and
technical service
(special-purpose
projects subject
to governmental
approval).
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2013 Interim Report of Wuhan Boiler Company Limited
5. Significant projects of investments with non-raised funds
□ Applicable √ Inapplicable
VI. Business performance estimate for Jan.-Sep. 2013
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
VII. Explanation of the Board of Directors and the Board of Supervisors on the
“Non-standard Auditing Report” issued by the CPA firm for the report period
□ Applicable √ Inapplicable
VIII. Explanation of the Board of Directors about the “Non-standard Auditing Report” of last
year
□ Applicable √ Inapplicable
IX. Implementation of profit distribution during the report period
During the report period, particulars about the execution of profit distribution plan, especially cash bonus plan, the
execution of transferring capital reserve to share capital or any adjustment.
□ Applicable √Inapplicable
The profit distribution plan approved by 2012 Annual Shareholders’ Meeting is no profit distribution and no
transfer of capital reserve to share capital.
X. Preplan for profit distribution and transferring capital reserve into share capital for the
report period
□ Applicable √ Inapplicable
XI. Particulars about researches, visits and interviews received in this report period
Place of Main discussion and materials
Time of reception Way of reception Visitor type Visitor
reception provided by the Company
1 shareholder with To visit the factory and see the
April 12, 2013 Wuhan Field research Individual
tradable shares Company situation
2 shareholders with Registration method for 2012
June 17, 2013 Wuhan By phone Individual
tradable shares Annual Shareholders’ Meeting
2 shareholders with Registration method for 2012
June 18, 2013 Wuhan By phone Individual
tradable shares Annual Shareholders’ Meeting
3 shareholders with Registration method for 2012
June 19, 2013 Wuhan By phone Individual
tradable shares Annual Shareholders’ Meeting
2 shareholders with Registration method for 2012
June 20, 2013 Wuhan By phone Individual
tradable shares Annual Shareholders’ Meeting
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2013 Interim Report of Wuhan Boiler Company Limited
Section V Significant Events
I. Corporate governance
The Board of Directors of the Company continuously improved its corporate governance and standardized the
Company’s operation strictly according to the requirements of the Company Law, the Securities Law and other
relevant laws and regulations. The Board of Directors thinks that the actual situation of corporate governance of
the Company is in compliance with the requirements of Guiding Principle on Governing Listed Companies.
(1) About shareholders and Shareholders’ Meeting:
The Company convenes and holds Shareholders’ Meetings according to requirements of Opinions on
Standardization of Shareholders’ Meeting of Listed Companies and Rules of Procedure for the Shareholders’
Meeting of Listed Companies, the Company treats all shareholders equally, especially minority shareholders are
insured to be equally treated and they can fully exercise their lawful rights.
(2) About relationship between controlling shareholder and the Company:
The controlling shareholder complies with laws while exercising their rights as investors through the
Shareholders’ Meeting and doesn’t, directly and indirectly, intervene the Company’s decision-making and
operation through other channels. The human resources, assets, finance, organizations and operations of the
Company are independent from the controlling shareholder. The Company and the controlling shareholder
maintain different financial accounts, and independently undertake commercial liabilities and market risks.
Related transactions between the Company and the controlling shareholder are reasonable and fair, and its
decision-making procedures comply with related regulations. The controlling shareholder doesn’t occupy any
fund of the Company and the Company doesn’t provide any guarantee to the controlling shareholder and its
subsidiaries.
(3) About directors and the Board of Directors:
The Company elects and engages directors strictly in accordance with procedure on director election, the
Company Law and Articles of Association of the Company, ensuring that the director election is public, just, fair
and independent. The Company ensures that the number and structure of directors is in compliance with
provisions stipulated in laws and regulations. The meetings of the Board of Directors are convened and held
according to the Rules of Procedure for the Board of Directors. Members of the Board of Directors perform and
fulfill their duties honestly, diligently and responsibly. The Board of Directors establishes special committees,
each of which performs its own duty and improves the efficiency of the Board of Directors.
(4) About supervisors and the Board of Supervisors:
The Company elects and engages supervisors strictly in accordance with procedure on supervisor election, the
Company Law and Articles of Association of the Company. The Company ensures that the number and structure
of supervisors is in compliance with provisions stipulated in laws and regulations. The Board of Supervisors
inspects and supervises the legitimacy of activities of the Company finance, directors, senior management and
other managers, safeguards the benefits and interests of shareholders.
(5) About information disclosure and its transparency:
Secretary of the Board of Directors is responsible for information disclosure and investor relationship
management, including reception of visits and consultations from investors. Securities Times and Hong Kong Ta
Kung Pao are designated by the Company as the newspapers for disclosing relevant information. According to
laws, regulations and requirements of the Management Rules on Information Disclosure of the Company, the
Company discloses the information authentically, accurately, timely and completely to ensure all shareholders
have equal opportunity to acquire information.
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2013 Interim Report of Wuhan Boiler Company Limited
II. Significant lawsuits or arbitrations
√Applicable □ Inapplicable
Amount Forming Trial result Enforcement
involved in the Progress of and influence on the
Basic situation of the Disclosure
the litigation estimated the litigation of the judgment of Disclosure index
litigation (arbitration) date
(arbitration) liabilities (arbitration) litigation the litigation
(RMB 0’000) or not? (arbitration) (arbitration)
In November 2001,
Shenzhen Wangda Color
Printing Packaging Co.,
LTD. signed a boiler supply
contract with the Company
(Contract No. 2001D011). In
Sep. 2003, both parties
signed a supplementary
agreement that Jiangsu
Wangda Paper Co., LTD.
(“Jiangsu Wangda”) would
perform rights and
obligations of the Contract.
In Feb. 2004, after receiving
the deposit of the Contract, The
the Company organized Announcement
design, manufacturing and of Wuhan Boiler
purchasing. In Nov. 2004, Company
The effect of
Jiangsu Wangda requested Limited on
this case on
the Company to postpone Significant
delivery and stopped paying This case has profit in or This case has Lawsuit or
the rest payments, which not yet been after the not yet been April 27, Arbitration
No heard. report period heard.
caused the project 2013 (Announcement
is subject to
suspension till now. In Apr. No. 2013-019)
the final
2011, Jiangsu Wangda sent a was published
judgment of
letter to the Company, on the Securities
this case.
asking to cancel the Contract Times, Ta Kung
and return the deposit. Pao and
However, some costs and http://www.cnin
expenses were incurred fo.com.cn
during design,
manufacturing and
purchasing of the Company.
The Company agreed to
terminate the Contract on the
basis of no deposit return
and sufficient compensation
of losses. But Jiangsu
Wangda didn't agree.
Because no consensus was
achieved on contract
termination, Jiangsu Wangda
sued the Company before
Wuhan Intermediate Court.
III. Particulars on media’s queries
□Applicable √ Inapplicable
There was no media’s common query during the report period.
IV. Bankruptcy reorganization
□Applicable √ Inapplicable
16
2013 Interim Report of Wuhan Boiler Company Limited
V. Asset transactions
1. Acquisition of assets
□Applicable √ Inapplicable
2. Sale of assets
□Applicable √ Inapplicable
3. Business combination
□Applicable √ Inapplicable
VI. Implementation of equity incentive and its influence
In the report period, there was no equity incentive plan.
VII. Significant related party transactions
1. Related party transactions relevant to routine operation
Available
Transacti Proportio market
Type of Contents on n in the price for
Related Relations the of the Pricing Transacti amount same kind Mode of the Disclosur Disclosur
party hip transactio transactio principle on price (RMB of settlement transacti e date e index
n n Ten transactio on of the
thousand) ns (%) same
kind
A
ALSTOM subsidiary Settlement
http://ww
Boiler of the Sale of Sale of Market as per April. 27,
－ 174.77 0.38% － w.cninfo.
Deutschla ultimate products products price contract 2013
com.cn
nd GmbH actual term
controller
A
subsidiary Settlement
ALSTOM http://ww
of the Sale of Sale of Market as per April. 27,
Power － 34,314.52 74.74% － w.cninfo.
ultimate products products price contract 2013
Inc. com.cn
actual term
controller
A
subsidiary Settlement
ALSTOM http://ww
of the Sale of Sale of Market as per April. 27,
Estonia － 647.61 1.41% － w.cninfo.
ultimate products products price contract 2013
AS com.cn
actual term
controller
ALSTOM
A
(Wuhan)
subsidiary Settlement
Engineeri
of the offering offering Market as per
ng － 61.32 69.84% －
ultimate service service price contract
&Technol
actual term
ogy Co.,
controller
Ltd.
17
2013 Interim Report of Wuhan Boiler Company Limited
A
Wuhan subsidiary Purchasin
Settlement
Boiler of the Purchase g boiler
Market as per
Group second of raw accessorie － 14.98 0.06% －
price contract
Valve largest material s
term
Co., Ltd. sharehold
er
ALSTOM A
Technical subsidiary Settlement
Purchase Purchase http://ww
Services of the Market as per April. 27,
of raw of raw － 3,260 12.56% － w.cninfo.
(Shanghai ultimate price contract 2013
material material com.cn
) Co., actual term
Ltd. controller
A
subsidiary Settlement
ALSTOM Purchase Purchase
of the Market as per
Power of raw of raw － 1.17 0.01% －
ultimate price contract
Energy material material
actual term
controller
A
subsidiary Settlement
ALSTOM http://ww
of the Received Market as per April. 27,
(Switzerla IT service － 115.77 9.13% － w.cninfo.
ultimate service price contract 2013
nd) Ltd com.cn
actual term
controller
ALSTOM
A
Beizhong
subsidiary Settlement
Power
of the Received Training Market as per
(Beijing) － 1 0.08% －
ultimate service expense price contract
Electric
actual term
Equipmen
controller
t Co., Ltd.
A
subsidiary Settlement
ALSTOM http://ww
of the Received Market as per April. 27,
IS&T IT service － 270.12 21.3% － w.cninfo.
ultimate service price contract 2013
SAS com.cn
actual term
controller
ALSTOM
Controllin Settlement
(China) http://ww
g Received Market as per April. 27,
Investme IT service － 182.57 14.39% － w.cninfo.
sharehold service price contract 2013
nt Co., com.cn
er term
Ltd.
A
subsidiary Settlement
ALSTOM
of the Received Training Market as per
Boiler － 4.45 0.35% －
ultimate service expense price contract
France
actual term
controller
ALSTOM
A
(Wuhan) Materials
subsidiary Settlement
Engineeri
of the Received testing Market as per
ng & service － 10 0.79% －
ultimate service price contract
Technolo
actual term
gy Co.,
controller
Ltd.
ALSTOM
Controllin Fall 10% Settlement
(China) http://ww
g Payment of PBOC as per April. 27,
Investme Interest － 4,159.41 97.42% － w.cninfo.
sharehold of interest benchmar contract 2013
nt Co., com.cn
er k rate term
Ltd.
Total -- -- 43,217.69 -- -- -- -- --
18
2013 Interim Report of Wuhan Boiler Company Limited
Details of large amount of sales returns No.
As for the estimation on the total amount
of routine related party transactions to be 1 Purchase of raw material: The actual amount is less than the estimated amount
、
occurred in the report period by relevant
types, the actual performance in the report 2. sale of boiler products: The actual amount is less than the estimated amount
period (if any)
Reason for significant difference between
the transaction price and the market price No.
(if applicable)
2. Related party transactions arising from acquisition and sale of assets
□Applicable √ Inapplicable
3. Significant related party transactions arising from joint investments
□Applicable √ Inapplicable
4. Significant credits and liabilities with related parties
Was there any non-operating credit or liability with any related party?
□ Yes √ No
Amount
Non-operating
Variety of Opening incurred in Closing
capital
Related party Relationship credit or Reason balance (RMB report period balance (RMB
occupation or
liability Ten thousand) (RMB Ten Ten thousand)
not?
thousand)
A subsidiary
of ultimate Sale of
ALSTOM Power Inc Receivables No 7,403.26 -5,819.8 1,583.46
holding product
company
A subsidiary
of ultimate Sale of
ALSTOM Estonia AS Receivables No 650.87 -650.87 0
holding product
company
ALSTOM Technical A subsidiary
Services (Shanghai) of ultimate Purchase of
Co., Ltd. Receivables No 1,635.5 -309.5 1,326
holding material
company
The relocation
WUHAN BOILER second largest compensation
Receivables No 6,403.05 0 6,403.05
GROUP shareholder
Wuhan Boiler Group A subsidiary
Engineering of the second Sale of
Technology Co., Ltd. Receivables No 485.5 0 485.5
largest product
shareholder
Wuhan Boiler Group A subsidiary
Received
Express Co., LTD of the second No
Payables transportation 1.74 0 1.74
largest
service
shareholder
A subsidiary Purchase of
Wuhan Boiler Group
of the second boiler No
Valve Co., LTD Payables 43.25 3.29 46.54
largest accessories
shareholder
19
2013 Interim Report of Wuhan Boiler Company Limited
Wuhan Boiler Group A subsidiary Purchase of
Engineering of the second boiler No
Technology Co., LTD Payables accessories 1,912.58 0 1,912.58
largest
shareholder
ALSTOM Technical A subsidiary
Services (Shanghai) of ultimate Purchase of No
Co., LTD Payables 476.7 326 802.7
holding material
company
A subsidiary
TSI Integrated DE of ultimate Purchase of No
Payables 103 1.06 104.06
Mannheim holding material
company
ALSTOM (China)
investment co., LTD Controlling
Payables IT service No 229.06 -67.5 161.56
shareholder
A subsidiary
of ultimate Purchase of
ALSTOM Power Inc Payables No 48.88 0 48.88
holding material
company
A subsidiary
of ultimate Purchase of No
ALSTOM s.r.o Payables 1.18 0 1.18
holding material
company
A subsidiary
ALSTOM of ultimate No
Payables IT service 277.65 -185.4 92.25
(Switzerland) Ltd holding
company
A subsidiary
ALSTOM Power of ultimate Purchase of No
Payables 3 -1.94 1.06
Energy holding material
company
A subsidiary
ALSTOM Power of ultimate Purchase of No
Payables 8.42 -8.42 0
Service GmbH holding material
company
ALSTOM (Wuhan) A subsidiary
Engineering of ultimate Received No
&Technology Co., Ltd. Payables 0 10 10
holding service
company
WUHAN BOILER Second largest Received
Payables 97.41 0 97.41
GROUP shareholder service No
A subsidiary
of ultimate No
ALSTOM IS&T SAS Payables IT service 948.78 -834.83 113.95
holding
company
A subsidiary
of ultimate Received No
ALSTOM Power Ltd Payables 8.79 0 8.79
holding service
company
A subsidiary
ALSTOM Holdings of ultimate No
Payables Training 0 1.51 1.51
France holding
company
A subsidiary
of ultimate Down No
ALSTOM Estonia AS Payables 0 430.5 430.5
holding payment
company
20
2013 Interim Report of Wuhan Boiler Company Limited
A subsidiary
ALSTOM Boiler of ultimate Down No
Payables 34,470.37 -23,595.26 10,875.11
Deutschland GmbH holding payment
company
A subsidiary
of ultimate Down No
ALSTOM Power Inc. Payables 37,428.41 -18,207.95 19,220.46
holding payment
company
A subsidiary
ALSTOM Boiler of ultimate Sales of No
Payables 12.8 1.05 13.85
Deutschland GmbH holding product
company
Wuhan Boiler Group A subsidiary
Valve Co., LTD of the second Sales of No
Receivables 24.06 0 24.06
largest materials
shareholder
Wuhan Boiler Group A subsidiary
Express Co., LTD of the second Service No
Receivables 1.02 0 1.02
largest rendered
shareholder
A subsidiary
ALSTOM Boiler of ultimate Service No
Receivables 131.43 36.92 168.35
France holding rendered
company
A subsidiary
ALSTOM of ultimate Service No
Receivables 56.84 -41.72 15.12
(Switzerland) Ltd holding rendered
company
A subsidiary
ALSTOM Boiler of ultimate Sales of No
Receivables 355.9 -6.34 349.56
Deutschland GmbH holding materials
company
ALSTOM (China)
investment co., LTD Controlling Service
Receivables No 320.03 -318.09 1.94
shareholder rendered
ALSTOM (Wuhan) A subsidiary
Engineering of ultimate Service No
&Technology Co., Ltd. Receivables 125.07 -76.71 48.36
holding rendered
company
A subsidiary
of ultimate Sales of No
ALSTOM Power Inc. Receivables 3.62 0 3.62
holding materials
company
5. Other significant related party transactions
□Applicable √ Inapplicable
VIII Significant contracts and execution
1. Trusteeship, contract and lease
）））） （（（（
1 Trusteeship
□Applicable √ Inapplicable
Explanation about trusteeship
None.
21
2013 Interim Report of Wuhan Boiler Company Limited
Items generated over 10% gains/losses in total profit in the report period for the Company
□ Applicable √ Inapplicable
(2) Contract
□Applicable √ Inapplicable
Explanation about contract
None.
Items generated over 10% gains/losses in total profit in the report period for the Company
□Applicable √Inapplicable
(3) Lease
□Applicable √ Inapplicable
Explanation about lease
None.
Items generated over 10% gains/losses in total profit in the report period for the Company
□Applicable √Inapplicable
2. Guarantees provided by the Company
□Applicable √ Inapplicable
Explanation about composite guarantee
□Applicable √ Inapplicable
3. Other significant contracts
□Applicable √ Inapplicable
4. Other significant transactions
□Applicable √ Inapplicable
IX. 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
Commitment Time of making Period of
Commitment Contents Fulfillment
maker commitment commitment
Commitment on share reform - - - - -
Commitment in the acquisition report or
- - - - -
the report on equity changes
Commitments made in assets
- - - - -
reorganization
Commitments made in IPO or refinancing - - - - -
Other commitments made to minority
- - - - -
shareholders
X. Engagement and dismissal of CPA firm
Has the Interim Financial Report been audited or not?
22
2013 Interim Report of Wuhan Boiler Company Limited
□ Yes √ No
XI. Punishment and rectification
□Applicable √ Inapplicable
XII. Explanation on other significant events
Approved by Shenzhen Stock Exchange, the trading of the Company’s stocks was resumed since February 8,
2013.
23
2013 Interim Report of Wuhan Boiler Company Limited
Section VI Changes in Shares and Particulars about Shareholders
I. Particulars about the changes in shares
Before the change Increase/decrease (+, -) After the change
Issuance Capitalizati
Proportion Bonus Proportion
Amount of new on of public Others Subtotal Amount
(%) shares (%)
shares reserve fund
I. Non tradable shares 172,000,000 57.91% 172,000,000 57.91%
1. Sponsors’ shares 172,000,000 57.91% 172,000,000 57.91%
Share held by domestic
20,530,000 6.91% 20,530,000 6.91%
corporations
Share held by foreign
151,470,000 51% 151,470,000 51%
corporations
II. Tradable shares 125,000,000 42.09% 125,000,000 42.09%
3. Domestically listed
125,000,000 42.09% 125,000,000 42.09%
foreign shares
III. Total shares 297,000,000 100% 297,000,000 100%
Reason for the change in shares
□ Applicable √ Inapplicable
Approval of the change in shares
□ Applicable √ Inapplicable
Transfer of the change in shares
□ Applicable √ Inapplicable
Effects of the change in shares on the basic EPS, diluted EPS, net assets per share attributable to common
shareholders of the Company and other financial indexes over the last year and last period
□ Applicable √ Inapplicable
Other contents that the Company considered necessary or were required by the securities regulatory authorities to
disclose
□ Applicable √ Inapplicable
Explanation on changes in total shares, shareholder structure, and the structure of assets and liabilities
□ Applicable √ Inapplicable
II. Total number of shareholders and their shareholdings
Unit: share
Total number of shareholders at the end of the report period 8,533
Particulars about shares held by shareholders with a shareholding percentage over 5%
Increase / Pledged or frozen shares
Shareholding Total shares decrease Number of Number of
Name of Nature of
percentage held at the during the non-tradable tradable Status of Number of
shareholder shareholder
(%) period-end report shares held shares held shares shares
period
ALSTOM
(CHINA) Domestic
INVESTMENT non-state-owned 51% 151,470,000 0 151,470,000 0
COMPANY corporation
LIMITED
24
2013 Interim Report of Wuhan Boiler Company Limited
WUHAN
State-owned
BOILER GROUP 6.91% 20,530,000 0 20,530,000 0
corporation
CO., LTD
Domestic natural
Wang Xiao 0.87% 2,633,644 0 0 2,633,644
person
Domestic natural
Chen Peng 0.77% 2,283,845 0 0 2,283,845
person
Domestic natural
Chen Chuyun 0.46% 1,372,450 0 0 1,372,450
person
HSBC BROKING
SECURITIES
Domestic natural
(ASIA) 0.42% 1,244,114 0 0 1,244,114
person
LIMITED-CLIEN
TS A/C
Domestic natural
Wu Zhenfa 0.38% 1,138,028 0 0 1,138,028
person
Zhuang Domestic natural
0.35% 1,045,000 0 0 1,045,000
Changxiong person
Domestic natural
Sun Weiwei 0.33% 967,567 0 0 967,567
person
Domestic natural
Qin Hui 0.31% 909,286 0 0 909,286
person
Strategic investor or corporation
becoming a top ten shareholder due Not applicable
to placing of new shares (if any)
Alstom (China) Investment Co., Ltd. (the first principal shareholder of the Company) and
Wuhan Boiler Group Co., Ltd. (the second principal shareholder of the Company) hold
non-tradable shares of the Company. No affiliated relationship exists between Alstom (China)
Investment Co., Ltd. (the first principal shareholder of the Company), Wuhan Boiler Group
Explanation on affiliated
Co., Ltd. (the second principal shareholder of the Company) and the other shareholders with
relationship or persons acting in
tradable shares, and they are not persons acting in concert as defined in the Administrative
concert among the above-mentioned
Rules on Information Disclosure about Changing of Shareholding Status. The Company is not
shareholders:
aware of whether there is any affiliated relationship among the top ten shareholders with
tradable shares and 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.
Particulars about shareholdings of the top ten shareholders holding tradable shares
Number of tradable shares held at the Type of shares
Name of shareholder
period-end Type Number
Wang Xiao 2,633,644 Domestically listed foreign shares 2,633,644
Chen Peng 2,283,845 Domestically listed foreign shares 2,283,845
Chen Chuyun 1,372,450 Domestically listed foreign shares 1,372,450
HSBC BROKING SECURITIES
1,244,114 Domestically listed foreign shares 1,244,114
(ASIA) LIMITED-CLIENTS A/C
Wu Zhenfa 1,138,028 Domestically listed foreign shares 1,138,028
Zhuang Changxiong 1,045,000 Domestically listed foreign shares 1,045,000
Sun Weiwei 967,567 Domestically listed foreign shares 967,567
Qin Hui 909,286 Domestically listed foreign shares 909,286
Tang Juan 887,236 Domestically listed foreign shares 887,236
Zhuang Yaohua 821,150 Domestically listed foreign shares 821,150
25
2013 Interim Report of Wuhan Boiler Company Limited
Explanation on affiliated
relationship or persons acting in The top ten shareholders of the Company are public shareholders with tradable B shares. The
concert among the top ten Company is not aware of whether there is any affiliated relationship among the top ten
shareholders with tradable shares shareholders with tradable shares and whether there are persons acting in concert among
and between the top ten shareholders them. The Company is not aware of whether there is any affiliated relationship among the top
with tradable shares and the top ten ten shareholders and the top ten shareholders with tradable share.
shareholders
Explanation on shareholders
participating in the margin trading Not applicable
business (if any)
Whether shareholders of the Company reach agreement of buy back trading in the report period?
□ Yes √ No
III. Change in the controlling shareholder or the actual controller
Change of the controlling shareholder in the report period
□ Applicable √ Inapplicable
Change of the actual controller in the report period
□ Applicable √ Inapplicable
26
2013 Interim Report of Wuhan Boiler Company Limited
Section VII Particulars about Directors, Supervisors
and Senior Management
I. Changes in shareholding of Directors, Supervisors and Senior Management
□ Applicable √ Inapplicable
Shareholding of the Company’s Directors, Supervisors and Senior Management remained unchanged during the
report period. For details, please refer to 2012 Annual Report.
II. Resignation or dismissal of Directors, Supervisors and Senior Management
Name Position Type Date Reason
Dominique Pouliquen Director Resignation June 28, 2013 Personal work arrangement
Xiang Rongwei Director Resignation June 28, 2013 Reaching retire age
Newly
Kevin Qin Director June 28, 2013 Supplement Director
appointed
Newly
Jiang Hong Director June 28, 2013 Supplement Director
appointed
27
2013 Interim Report of Wuhan Boiler Company Limited
Section VIII Financial Report
I. Auditor’s Report
Whether the semi-report is audited?
□ Yes √ No
The interim financial statements have not been audited.
II. Financial statements
Monetary unit of Notes to financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 18,515,082.56 133,682,569.38
Deposit reservation for balance
Outgoing call loans
Trading financial assets
Notes receivable 2,000,000.00 16,778,857.08
Accounts receivable 163,769,405.05 231,207,704.44
Prepayment 62,671,653.33 117,776,137.51
Insurance receivables
Reinsurance receivables
Provision of reinsurance contract
reserve receivable
Interest receivable
Dividend receivable
Other receivables 80,959,433.16 90,356,030.52
Financial assets purchased under
agreement to resell
Inventories 108,985,591.72 143,098,165.73
Non-current assets due within 1-year
Other current assets
Total current assets 436,901,165.82 732,899,464.66
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 722,377,671.85 741,586,739.40
28
2013 Interim Report of Wuhan Boiler Company Limited
Construction in progress 2,084,089.93 1,562,224.98
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 76,674,586.91 79,968,814.31
R&D expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets 54,445,876.35 57,549,250.74
Other non-current assets 9,810,557.57
Total non-current assets 855,582,225.04 890,477,587.00
Total assets 1,292,483,390.86 1,623,377,051.66
Current liabilities:
Short-term loans 1,880,400,000.00 1,705,000,000.00
Loans from central bank
Deposits received and held for others
Call loans received
Held-for-trading financial liabilities
Notes payable 94,800,000.00 42,532,000.00
Accounts payable 153,910,402.64 285,438,535.15
Advance from customers 406,376,839.91 796,939,508.66
Financial assets sold under
agreements to repurchase
Fees and commissions payable
Payroll payable 41,625,055.47 53,438,610.86
Taxes payable -69,217,568.31 -94,610,129.10
Interest payable 3,542,575.34 2,442,575.34
dividend payable 562,000.00 562,000.00
Other payables 51,929,064.32 60,502,521.10
Amount due to reinsurance
Insurance contract provision
Entrusted trading of securities
Amount payable under security
underwriting
Non-current liabilities due within
1-year
Other current liabilities
Total current liabilities: 2,563,928,369.37 2,852,245,622.01
Non-current liabilities:
Long-term loans
Bonds payable
Long-term payables
Specific payables
Provision for liabilities
Deferred income tax liabilities
Other non-current liabilities 6,510,913.06 12,640,416.40
Total non-current liabilities : 6,510,913.06 12,640,416.40
Total liabilities 2,570,439,282.43 2,864,886,038.41
29
2013 Interim Report of Wuhan Boiler Company Limited
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 -1,790,736,189.28 -1,754,297,302.26
Foreign exchange difference
Total owners’ equity attributable to
-1,279,658,424.99 -1,243,219,537.97
the Company
Minority interests 1,702,533.42 1,710,551.22
Total owners’ (or shareholders’) equity -1,277,955,891.57 -1,241,508,986.75
Total liabilities & owners’ (or
1,292,483,390.86 1,623,377,051.66
shareholders’) equity
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
Accounting manager: LI Yihao
2. Balance sheet of the Company
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 16,957,392.10 132,147,573.37
Trading financial assets
Notes receivable 2,000,000.00 16,778,857.08
Accounts receivable 162,751,805.05 229,913,768.78
Prepayment 62,671,653.33 117,776,137.51
Interest receivable
Dividend receivable
Other receivables 81,253,795.21 90,643,677.76
Inventories 108,985,591.72 143,098,165.73
Non-current assets due within 1-year
Other current assets
Total current assets 434,620,237.41 730,358,180.23
Non-current assets ：
Available-for-sale financial assets
Investment held to maturity
Long-term receivables
Long-term equity investment 24,984,500.00 24,984,500.00
Investment property
Fixed assets 722,534,648.84 741,743,716.39
Construction in progress 2,084,089.93 1,562,224.98
Engineering materials
Disposal of fixed assets
Production biological assets
30
2013 Interim Report of Wuhan Boiler Company Limited
Oil-gas assets
Intangible assets 76,674,586.91 79,968,814.31
R&D expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets 54,445,876.35 57,549,250.74
Other non-current assets 9,810,557.57
Total non-current assets 880,723,702.03 915,619,063.99
Total assets 1,315,343,939.44 1,645,977,244.22
Current liabilities:
Short-term loans 1,880,400,000.00 1,705,000,000.00
Trading financial liabilities
Notes payable 94,800,000.00 42,532,000.00
Accounts payable 154,346,402.64 285,874,535.15
Advance from customers 406,376,839.91 796,939,508.66
Payroll payable 41,455,459.49 53,269,014.88
Taxes payable -69,217,568.31 -94,610,129.10
Interest payable 3,542,575.34 2,442,575.34
dividend payable
Other payables 89,029,017.08 97,502,473.86
Non-current liabilities due within
1-year
Other current liabilities
Total current liabilities: 2,600,732,726.15 2,888,949,978.79
Non-current liabilities:
Long-term loans
Bonds payable
Long-term payables
Specific payables
Provision for liabilities
Deferred income tax liabilities
Other non-current liabilities 6,510,913.06 12,640,416.40
Total non-current liabilities : 6,510,913.06 12,640,416.40
Total liabilities 2,607,243,639.21 2,901,590,395.19
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
Preparation for ordinary risks
Retained earnings -1,803,172,360.72 -1,766,885,811.92
Foreign exchange difference
Total owners’ (or shareholders’) equity -1,291,899,699.77 -1,255,613,150.97
Total liabilities & owners’ (or
1,315,343,939.44 1,645,977,244.22
shareholders’) equity
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
31
2013 Interim Report of Wuhan Boiler Company Limited
Accounting manager: LI Yihao
3. Consolidated income statement
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
Item Closing balance Opening balance
I. Total sales 462,281,106.75 376,577,702.30
Including: Sales 462,281,106.75 376,577,702.30
Interest income
Premium income
Handling charges and commission
income
II. Total cost of sales 495,921,774.26 378,118,924.89
Including: Cost of sales 449,540,053.90 345,842,634.98
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
Distribution expenses 6,460,847.20 3,748,312.10
Administrative expenses 13,059,491.70 9,044,200.97
Financial costs 40,200,193.10 56,374,275.12
Impairment loss -13,338,811.64 -36,891,628.28
Add: gain/(loss) from change in fair
-2,547,295.46 2,850,685.36
value (“-” means loss)
Gain/(loss) from investment (“-” means
loss)
Including: income from investment on
associates and joint ventures
Foreign exchange difference (“-” means
loss)
III. Business profit (“-” means loss) -36,187,962.97 1,309,462.77
Add: non-business income 2,913,166.75 1,420,624.61
Less: non-business expense 68,734.21 9,786.32
Including: loss from non-current asset
67,734.21 1,786.32
disposal
IV. Total profit (“-” means loss) -33,343,530.43 2,720,301.06
Less: income tax expense 3,103,374.39 27,679,554.95
V. Net profit (“-” means loss) -36,446,904.82 -24,959,253.89
Including: net profit achieved by the
merged parties before business mergers
Attributable to owners of the Company -36,438,887.02 -24,383,589.49
Minority interest income -8,017.80 -575,664.40
VI. Earnings per share -- --
(I) Basic earnings per share -0.12 -0.08
(II) Diluted earnings per share -0.12 -0.08
32
2013 Interim Report of Wuhan Boiler Company Limited
VII. Other comprehensive income
VIII. Total comprehensive income -36,446,904.82 -24,959,253.89
Attributable to owners of the
-36,438,887.02 -24,383,589.49
Company
Attributable to minority
-8,017.80 -575,664.40
shareholders
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
Accounting manager: LI Yihao
4. Income statement of the Company
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
Item Amount this period Amount last period
I. Total sales 462,281,106.75 376,577,702.30
Less: cost of sales 449,540,053.90 345,842,634.98
Business taxes and surcharges 1,130.00
Distribution expenses 6,460,847.20 3,748,312.10
Administrative expenses 13,052,776.89 9,028,422.97
Financial costs 40,202,887.55 56,377,660.64
Impairment loss -13,495,147.30 -37,044,968.54
Add: gain/(loss) from change in fair
-2,547,295.46 2,850,685.36
value (“-” means loss)
Gain/(loss) from investment (“-” means
-14,249,787.13
loss)
Including: income from investment on
associates and joint ventures
II. Business profit (“-” means loss) -36,027,606.95 -12,774,591.62
Add: non-business income 2,913,166.75 7,299,831.17
Less: non-business expense 68,734.21 1,786.32
Including: loss from non-current asset
67,734.21 1,786.32
disposal
III. Total profit (“-” means loss) -33,183,174.41 -5,476,546.77
Less: income tax expense 3,103,374.39 27,679,554.95
IV. Net profit (“-” means loss) -36,286,548.80 -33,156,101.72
V. Earnings per share -- --
(I) Basic earnings per share -0.12 -0.11
(II) Diluted earnings per share -0.12 -0.11
VI. Other comprehensive income
VII. Total comprehensive income -36,286,548.80 -33,156,101.72
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
Accounting manager: LI Yihao
5. Consolidated cash flow statement
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
33
2013 Interim Report of Wuhan Boiler Company Limited
Item Amount this period Amount last period
1. Cash flows from operating activities
Cash received from sales of goods
81,525,868.41 314,945,019.71
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 48,045,125.30
Other cash received from operating
1,280,000.00 800,000.00
activities
Sub-total of cash inflow from
130,850,993.71 315,745,019.71
operating activities
Cash paid for goods and services 259,358,216.56 163,159,120.20
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 86,455,366.68 83,458,190.76
Cash paid for all types of taxes 5,807,751.97 6,812,448.29
Other cash paid relating to
28,427,664.15 34,986,130.12
operating activities
Sub-total of cash outflows from
380,048,999.36 288,415,889.37
operating activities
Net cash flows from operating
-249,198,005.65 27,329,130.34
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 519,600.00 11,000.00
long-term assets
Net cash received from disposal of
subsidiaries and other operating units
34
2013 Interim Report of Wuhan Boiler Company Limited
Other cash received relating to
152,850.86 87,166.13
investing activities
Sub-total of cash inflows of
672,450.86 98,166.13
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 1,795,500.78 16,370,791.26
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
434,503.73 220,250.34
investing activities
Sub-total of cash outflows of
2,230,004.51 16,591,041.60
investing activities
Net cash flow from investing
-1,557,553.65 -16,492,875.47
activities
3. Cash flows from financing activities
Cash received from investment
Including: cash received from
minority shareholders of subsidiaries
Cash received from borrowings 739,000,000.00 408,000,000.00
Cash received from bonds issuing
Other cash received relating to
financing activities
Sub-total of cash inflows of
739,000,000.00 408,000,000.00
financing activities
Cash paid for repayment of
563,600,000.00 369,000,000.00
borrowings
Cash paid for dividends, profit
41,594,100.00 47,476,945.50
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
605,194,100.00 416,476,945.50
financing activities
Net cash flow from financing
133,805,900.00 -8,476,945.50
activities
4. Effect of foreign exchange rate
2,562,069.04 -3,707,261.45
changes on cash and cash equivalents
5. Net increase in cash and cash
-114,387,590.26 -1,347,952.08
equivalents
Add: cash and cash equivalents at
131,071,052.35 20,388,030.03
the beginning of this period
6. Cash and cash equivalents at the end
16,683,462.09 19,040,077.95
of this period
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
Accounting manager: LI Yihao
6. Cash flows statement of the Company
Prepared by Wuhan Boiler Company Limited
35
2013 Interim Report of Wuhan Boiler Company Limited
Unit: RMB Yuan
Item Amount this period Amount last period
1. Cash flows from operating activities
Cash received from sales of goods
81,505,868.41 314,855,019.71
or rending of services
Tax returned 48,045,125.30
Other cash received from operating
1,280,000.00 800,000.00
activities
Sub-total of cash inflow from
130,830,993.71 315,655,019.71
operating activities
Cash paid for goods and services 259,358,216.56 163,159,120.20
Cash paid to and for employees 86,455,366.68 83,458,190.76
Cash paid for all types of taxes 5,807,751.97 6,812,448.29
Other cash paid relating to
28,427,664.15 34,986,130.12
operating activities
Sub-total of cash outflows from
380,048,999.36 288,415,889.37
operating activities
Net cash flows from operating
-249,218,005.65 27,239,130.34
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 519,600.00 11,000.00
long-term assets
Net cash received from disposal of
subsidiaries and other operating units
Other cash received relating to
149,852.41 83,520.61
investing activities
Sub-total of cash inflows of
669,452.41 94,520.61
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 1,795,500.78 16,370,791.26
long-term assets
Cash paid for acquisition of
investments
Net cash paid for acquisition of
subsidiaries and other operating units
Other cash paid relating to
434,199.73 219,990.34
investing activities
Sub-total of cash outflows of
2,229,700.51 16,590,781.60
investing activities
Net cash flow from investing
-1,560,248.10 -16,496,260.99
activities
3. Cash flows from financing activities
Cash received from investment
Cash received from borrowings 739,000,000.00 408,000,000.00
Cash received from issuing bonds
Other cash received relating to
financing activities
Sub-total of cash inflows of
739,000,000.00 408,000,000.00
financing activities
Cash paid for repayment of 563,600,000.00 369,000,000.00
36
2013 Interim Report of Wuhan Boiler Company Limited
borrowings
Cash paid for dividends, profit
41,594,100.00 47,476,945.50
distribution or interest
Other cash paid relating to
financing activities
Sub-total of cash outflows of
605,194,100.00 416,476,945.50
financing activities
Net cash flow from financing
133,805,900.00 -8,476,945.50
activities
4. Effect of foreign exchange rate
2,562,069.04 -3,707,261.45
changes on cash and cash equivalents
5. Net increase in cash and cash
-114,410,284.71 -1,441,337.60
equivalents
Add: cash and cash equivalents at
129,536,056.34 18,949,394.34
the beginning of this period
6. Cash and cash equivalents at the end
15,125,771.63 17,508,056.74
of this period
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
Accounting manager: LI Yihao
7. Consolidated statement of changes in owners’ equity
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
Amount in this period
Owners’ equity attributable to the Company Total
owners’
Minority
equity
interests
Paid-in
Less:
Item Paid-in Paid-in Paid-in capital
Less: Less: Treasury
capital Capital capital Capital capital Capital (share
Treasur Treasur stock
(share reserve (share reserve (share reserve capital)
y stock y stock Less:
capital) capital) capital) Paid-in
Treasury
capital
stock
(share
capital)
-1,754,2
297,000 174,659, 39,418, 1,710,551 -1,241,508,
I. Balance at the end of 2011 97,302.2
,000.00 407.46 356.83 .22 986.75
6
Plus: change in accounting
policies
Correction of errors in
previous periods
Others
-1,754,2
II. Balance at the beginning of 297,000 174,659, 39,418, 1,710,551 -1,241,508,
97,302.2
this year ,000.00 407.46 356.83 .22 986.75
6
III. Increase/ decrease during -36,438, -36,446,90
-8,017.80
this report period (“-”for loss) 887.02 4.82
-36,438, -36,446,90
(I) Net profit -8,017.80
887.02 4.82
(II) Other comprehensive
incomes
-36,438, -36,446,90
Subtotal of (I) and (II) -8,017.80
887.02 4.82
37
2013 Interim Report of Wuhan Boiler Company Limited
(III) Contributions and
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock
and included in owners’ equity
3. Others
(IV) Profit distribution
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners
(or shareholders)
4. Others
(V) Transfer within owners'
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
-1,790,7
IV. Balance at the end of this 297,000 174,659, 39,418, 1,702,533 -1,277,955,
36,189.2
period ,000.00 407.46 356.83 .42 891.57
8
Unit: RMB Yuan
Amount last year
Owners’ equity attributable to the Company Total
owners’
Minority equity
interests Paid-in
Less: capital
Treasury (share
Item Paid-in Paid-in Paid-in stock capital)
Less: Less: Less: Paid-in
capital Capital capital Capital capital Capital
Treasur Treasur
(share reserve (share reserve (share reserve Treasury capital
y stock y stock stock (share
capital) capital) capital)
Less: capital)
Treasury Paid-in
stock capital
(share
capital)
-1,659,9
297,000 174,659, 39,418, 2,297,777 -1,146,580,
I. Balance at the end of 2010 56,146.1
,000.00 407.46 356.83 .56 604.31
6
Plus: retrospective
adjustment due to business
combinations under the same
control
Plus: change in accounting
38
2013 Interim Report of Wuhan Boiler Company Limited
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 -94,341, -587,226. -94,928,38
this report period (“-”for loss) 156.10 34 2.44
-94,341, -587,226. -94,928,38
(I) Net profit
156.10 34 2.44
(II) Other comprehensive
incomes
-94,341, -587,226. -94,928,38
Subtotal of (I) and (II)
156.10 34 2.44
(III) Contributions and
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock
and included in owners’ equity
3. Others
(IV) Profit distribution
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners
(or shareholders)
4. Others
(V) Transfer within owners'
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
-1,754,2
297,000 174,659, 39,418, 1,710,551 -1,241,508,
IV. Balance at the period-end 97,302.2
,000.00 407.46 356.83 .22 986.75
6
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
Accounting manager: LI Yihao
8. Statement of changes in owners’ equity of the Company
Prepared by Wuhan Boiler Company Limited
39
2013 Interim Report of Wuhan Boiler Company Limited
Unit: RMB Yuan
Amount in this period
Total Total
owners’ owners’
Minority Minority Minority
equity equity
interests interests interests
Owners’ Paid-in Owners’ Paid-in Owners’
Less: Less: Less:
Item equity capital equity capital equity
Treasury Treasury Treasury
attributable (share attributable (share attributable
stock stock stock
to the capital) to the capital) to the
Company Less: Company Less: Company Less:
Paid-in Paid-in
Treasury Treasury Treasury
capital capital
stock stock stock
(share (share
capital) capital)
297,000,00 174,854,30 39,418,356 -1,766,885, -1,255,613,
I. Balance at the end of 2011 0.00 0.00 0.00
0.00 4.12 .83 811.92 150.97
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 -1,766,885, -1,255,613,
0.00 0.00 0.00
this year 0.00 4.12 .83 811.92 150.97
III. Increase/ decrease during this -36,286,54 -36,286,54
0.00 0.00 0.00 0.00
report period (“-”for loss) 8.80 8.80
-36,286,54 -36,286,54
(I) Net profit
8.80 8.80
(II) Other comprehensive
incomes
-36,286,54 -36,286,54
Subtotal of (I) and (II)
8.80 8.80
(III) Contributions and
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock and
included in owners’ equity
3. Others
(IV) Profit distribution
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners (or
shareholders)
4. Others
(V) Transfer within owners'
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
40
2013 Interim Report of Wuhan Boiler Company Limited
297,000,00 174,854,30 39,418,356 -1,803,172, -1,291,899,
IV. Balance at the end of 2012 0.00
0.00 4.12 .83 360.72 699.77
Amount last period
Unit: RMB Yuan
Amount last period
Owners’ Owners’ Owners’ Owners’
Item equity equity equity equity
attributable attributable attributable attributable
to the to the to the to the
Company Company Company Company
297,000,00 174,854,30 39,418,356 -1,663,991, -1,152,719,
I. Balance at the end of 2010 0.00 0.00 0.00
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,
0.00 0.00 0.00
this year 0.00 4.12 .83 821.23 160.28
III. Increase/ decrease during this -102,893,9 -102,893,9
0.00 0.00 0.00 0.00
report period (“-”for loss) 90.69 90.69
-102,893,9 -102,893,9
(I) Net profit
90.69 90.69
(II) Other comprehensive
incomes
-102,893,9 -102,893,9
Subtotal of (I) and (II) 0.00 0.00 0.00 0.00
90.69 90.69
(III) Contributions and
decrease of capital by owners
1. Contributions by owners
2. Amount paid by stock and
included in owners’ equity
3. Others
(IV) Profit distribution
1. Surplus reserve accrued
2. General risk provision
accrued
3. Distribution to owners (or
shareholders)
4. Others
(V) Transfer within owners'
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
297,000,00 174,854,30 39,418,356 -1,766,885, -1,255,613,
IV. Balance at the end of 2011 0.00
0.00 4.12 .83 811.92 150.97
41
2013 Interim Report of Wuhan Boiler Company Limited
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua
Accounting manager: LI Yihao
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 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 report and statements are prepared with compliance to the requirement of the Enterprise
Accounting Standard. They reflect the financial position as of 30.06.13, and business performance and
cash flow situation in the first half of year 2013 of the Company frankly and completely.
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
42
2013 Interim Report of Wuhan Boiler Company Limited
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.
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.
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2013 Interim Report of Wuhan Boiler Company Limited
(2) Buy and sell same subsidiary's equity, or sell and buy it in two consecutive fiscal year should
disclose the accounting treatment
Inapplicable
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
Inapplicable
9. 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.
Notes: The Company shall explain the classification of financial instrument, recognition basis and
calculating method; recognition basis and calculating method of transfer of financial assets; recognized
condition of termination of financial liabilities; affirmation method of fair value of financial assets and
liabilities, including affirmation method of fair value of financial assets and liabilities due to continued
involvement; impairment testing method and withdrawing method of financial assets (excluding account
receivables).
(1) Classification of financial instrument
Financial instrument includes financial assets and financial liabilities.
(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
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2013 Interim Report of Wuhan Boiler Company Limited
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 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
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2013 Interim Report of Wuhan Boiler Company Limited
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:
①The book value of the transferred financial asset;
②The 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:
①Book value of the derecognized portion;
②The 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:
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
Inapplicable
10. Recognition standards and 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.
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2013 Interim Report of Wuhan Boiler Company Limited
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
Judgment basis or monetary standards of provision for bad Top 5 of account receivables at year end
debts of the individually significant accounts receivable
The impairment test is carried on individually for
each individually significant receivable. If there are
substantive evidences indicated that a receivable has
Method of individual provision for bad debts of the been impaired, it should make a provision for bad
individually significant account receivable debts. 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
Name of group bad debt provision on Recognition basis of group
the 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
Group 1 Aging analysis method analyzing actual situation, 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 bank and provision for sales tax which is to be
Group 2 No bad debt provision
paid as stipulated in contract are not classified as
provision for bad debts
According to specific group name, affirmation basis of group and withdrawing method of bad debt
provision need to be filled in respectively.
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Proportion of Accounts
Aging of receivables Proportion of Other receivables (%)
receivables (%)
Within 1 year (including 1
3% 3%
year)
3% 3%
1-2 years
6% 6%
2-3 years
Over 3 years
20% 20%
3-4 years
20% 20%
4-5 years
100% 100%
Over 5 years
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2013 Interim Report of Wuhan Boiler Company Limited
In the groups, adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
Proportion of withdrawing account Proportion of withdrawing other
Name of Group receivables (%) account receivables (%)
Notes: Fill the specific name of group.
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
Group 2: 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
Notes: Fill the specific name of group.
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
individually
Reason of individually withdrawing If there are substantive evidences shown there is a special impairment of
bad debt provision: insignificant receivables, then they need individually impairment tests.
Withdrawal method for bad debt Measurement of the percentage of bad debts provision is based on
provision: 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
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2013 Interim Report of Wuhan Boiler Company Limited
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
Method: Perpetual inventory system
(5) Amortization method of low-value consumption goods and packages
Low-value consumption goods
Amortization method: lump-sum amortization method
Notes: If choose others, explanation need to be made.
Packages
Amortization method: lump-sum amortization method
Notes: If choose others, explanation need to be made.
12. 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.
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2013 Interim Report of Wuhan Boiler Company Limited
(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:
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
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2013 Interim Report of Wuhan Boiler Company Limited
will be confirmed as the asset depreciation losses.
Once the depreciation loss of long-term equity investment is confirmed, they will not be reversed.
13. Investment properties
1. Investment property is property held to earn rental or for capital appreciation or both. It includes a land
use right that is leased out, a land use right held for transfer upon capital appreciation, and a building that
is leased out.
2. The investment properties shall be initially measured in light of their cost when getting it and make a
follow-up measurement to the investment real estate through the cost pattern on the date of the balance
sheet. The test method of depreciation or impairment of the buildings is the same as fixed assets, the test
method of depreciation or impairment of the land use rights is the same as intangible assets. The details of
assess method and impairment provision for investment properties are in Notes4.17 ―Impairment of
non-current non-financial assets.
Where an investment property is disposed or no longer in use permanently and no economic benefits shall
be obtained from the disposal, derecognized the investment property. The income from sale, transfer or
disposal of the investment property is recorded in the profit or loss after deduction of its carrying amount
and related tax.
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
Estimated useful life
The categories Residual value (%) Annual depreciation rate (%)
(years)
Houses and buildings 40 0% 2.50%
Machineries 7-20 0% 14.29%-5.00%
Electronic equipment and
3-18 0% 33.33%-5.56%
office equipment
Vehicles 6 0% 16.67%
(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
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2013 Interim Report of Wuhan Boiler Company Limited
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
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2013 Interim Report of Wuhan Boiler Company Limited
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 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.
Notes: If adopting actual interest rate to calculate interest costs, calculation process of actual interest rate
shall be explained.
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.
53
2013 Interim Report of Wuhan Boiler Company Limited
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.
Notes: Basis of each uncertain useful life need to be explained
(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.
(5) The specific criteria of the research and development phases of the division of internal research
and development projects
Inapplicable
(6) Internal research and development expenditure accounting
Inapplicable
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 whichever 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.
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;
54
2013 Interim Report of Wuhan Boiler Company Limited
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, which 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 Notes 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) Basis for recognition of rendering services
Percentage-of-completion method is used to measure revenue from rendering services in which
accumulated costs incurred divided by estimated total costs.
(4) 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
55
2013 Interim Report of Wuhan Boiler Company Limited
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 cannot 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 cannot be recovered, project revenue shall not be recognized and project
costs shall be charged to current period profit and loss.
21. 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.
22. 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.
23. Leases
(1) Operating lease
Inapplicable
(2) Finance lease
Inapplicable
(3)Sold and lease back
Inapplicable
24. Hedging accounting
The company uses fair value hedging for its hedging.
56
2013 Interim Report of Wuhan Boiler Company Limited
(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 stops 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
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 6%,17%
Business tax Taxable revenue 5 ％
Urban maintenance and construction tax Taxable VAT, taxable business tax 7 ％
57
2013 Interim Report of Wuhan Boiler Company Limited
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
activities, there was no taxable profit during the report period.
2. Tax preference and official documents
None
3. Other explanation
None
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
Unit: RMB Yuan
Balance
of
parent
compan
y’s
equity
after
Actual
The The deductin
amount Include
g the
of Other proporti proporti d in Deducti
Register Minorit differen
Subsidia Register Busines Busines investm essential on of on of consolid ble
Type ed y ce that
ries ed place s nature s scope ents at investm holding voting ated minority
capital interest loss of
the ent shares rights stateme interests
minority
period-e ） （ ） （
% % nt
interests
nd
exceed
equity
obtained
by
minority
sharehol
ders
Boiler,
Wuhan energy
Lan environ
Xiang mental
Power protecti
Environ on
Limited 586 products
mental
liability Wuluo Manufa 20,000, , Steel 24,984, 1,702,5
Protecti 95% 95% 是 0.00 0.00
Compan Rd., cturing 000 structur 500.00 33.42
on
y Wuhan es,
Technol
ogy technolo
Compan gy
y research
Limited of heat
energy
products
58
2013 Interim Report of Wuhan Boiler Company Limited
and its
accessor
ial
equipme
nt,
design,
technica
l
Consult
ancy,
technica
l
service,
sales of
develop
ed
products
, energy
project
(non-co
nstructi
on
project),
Gas-stea
m
Combin
ed
Cycle
Heat
Recover
y Boiler,
Circulat
ing
fluidize
d bed
Boiler,
Producti
on and
sale of
the
boiler’s
compon
ents and
the
energy
saving
Other Notes to subsidiaries obtained by establishment and investment: none.
(2) Subsidiaries obtained by business combination under the same control
None
(3) Subsidiaries obtained by business combination not under the same control
None
2. Equity with special intention or operational equity by entrusted management or leasee
None
3. Explanation on changes in consolidated scope
□ Applicable √ Inapplicable
59
2013 Interim Report of Wuhan Boiler Company Limited
4. Entities included in the consolidated scope or no longer included in the consolidated scope in the
report period
None
5. Business combinations under common control in the report period
None
6. Business combinations not under common control in the report period
None
7. Subsidiaries decreased in the current year because the shares are sold, upon which the controlling
right is lost
None
8. Counter purchases in the current period
None
9. Consolidations by business combination in the current period
None
10. Translation exchange rate for the main items of the financial statements of overseas operating
entities
None
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 Exchange Amount in Exchange
Amount in RMB Amount in RMB
foreign currency rate foreign currency rate
Bank deposit:: -- -- 16,683,462.09 -- -- 131,071,052.35
RMB -- -- 16,143,591.98 -- -- 130,630,479.67
USD 1,926.90 6.1787 11,905.74 4,566.04 6.2855 28,699.84
EUR 65,555.90 8.0536 527,960.99 49,517.74 8.3176 411,868.75
JPY 54.00 0.0626 3.38 56.00 0.0730 4.09
Other monetary funds: -- -- 1,831,620.47 -- -- 2,611,517.03
RMB -- -- 1,831,620.47 -- -- 2,611,517.03
Total -- -- 18,515,082.56 -- -- 133,682,569.38
Closing balance of monetary funds decreased by 86.15% as compared to last year, mainly due to return of
prepayment received from customer resulting from the changes in project scope.
2. Notes receivable
60
2013 Interim Report of Wuhan Boiler Company Limited
(1) Category of Notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance 2,000,000.00 16,778,857.08
Total 2,000,000.00 16,778,857.08
(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
Notes transferred to accounts receivable because drawer of the Notes fails to execute the contract or
agreement: None
Notes the company has endorsed to other parties but still undue (Top 5)
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Shandong Innovative Metal Technology
2013/05/17 2013/11/17 19,000,000.00
Co., Ltd.
Shandong Jindu Dazhang Group Co., Ltd. 2013/02/01 2013/08/01 10,000,000.00
Shandong Sanheng Trading Co., Ltd. 2013/05/07 2013/11/07 10,000,000.00
Tianjing Challis Automotive Co., Ltd. 2013/02/25 2013/08/25 10,000,000.00
East Hope Baotou Rare Earth and
2013/03/05 2013/09/05 8,000,000.00
Aluminums industry Co., Ltd.
Total -- -- 57,000,000.00 --
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
Proportio Proportio Proportio Proportion
Amount Amount Amount Amount
n (%) n (%) n (%) (%)
Accounts receivable
with significant single
52,923,300. 34,820,000. 52,923,30 34,820,000.0
amount for which bad 00
15.77%
00
65.79%
0.00
12.71%
0
65.79%
debt provision
separately accrued
Accounts receivable for which bad debt provisions are made on the group basis
Accounts receivable
for which bad debt 230,582,11 105,542,00 302,410,4 110,532,015.
68.69% 45.77% 72.65% 36.55%
provisions are made 2.49 7.44 19.85 41
on aging basis
230,582,11 105,542,00 302,410,4 110,532,015.
Subtotal of the groups 2.49
68.69%
7.44
45.77%
19.85
72.65%
41
36.55%
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2013 Interim Report of Wuhan Boiler Company Limited
Accounts receivable
with insignificant
single amount for 52,174,460. 31,548,460. 60,947,90 39,721,906.1
15.54% 60.47% 14.64% 65.17%
which bad debt 00 00 6.10 0
provision separately
accrued
335,679,87 171,910,46 416,281,6 185,073,921.
Total 2.49
--
7.44
--
25.95
--
51
--
Notes to category of accounts receivable:
Accounts receivable with significant single amount for which bad debt provision separately accrued
√ Applicable □ Inapplicable
Unit: RMB Yuan
Bad debt
Item Closing balance Proportion Notes
provision
Difficult to collect
Guodian Lanzhou Thermopower
28,103,300.00 10,000,000.00 35.58% due to quality
Co., Ltd.
issue
Difficult to collect
Dongfang Xiwang Baotou Xitu
24,820,000.00 24,820,000.00 100% due to quality
Aluminum Co., Ltd.
issue
Total 52,923,300.00 34,820,000.00 -- --
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging of Balance Balance
receivables Bad debt provision
Proportion Proportion Bad debt provision
Amount Amount
(%) (%)
Within 1 year (including 1 year)
including ： -- -- -- -- -- --
Within 1 year
41,992,388.89 18.21% 1,259,771.67 137,976,383.04 45.63% 4,139,291.49
(including 1 year)
Sub-total (Within 1
41,992,388.89 18.21% 1,259,771.67 137,976,383.04 45.63% 4,139,291.49
year)
1-2 years(including
37,903,495.98 16.44% 1,137,104.88 38,838,495.98 12.84% 1,165,154.88
2 year)
2-3 years(including
30,992,838.90 13.44% 1,859,570.33 241,117.09 0.08% 14,467.03
3 year)
3-4 years(including
15,568,242.52 6.75% 3,113,647.46 15,568,237.30 5.15% 3,113,647.46
4 year)
4-5 years(including
7,441,541.38 3.23% 1,488,308.28 9,608,414.86 3.18% 1,921,682.97
5 year)
Above 5 years 96,683,604.82 41.93% 96,683,604.82 100,177,771.58 33.12% 100,177,771.58
Total 230,582,112.49 -- 105,542,007.44 302,410,419.85 -- 110,532,015.41
62
2013 Interim Report of Wuhan Boiler Company Limited
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 accrue bad debt provision
□ Applicable √ Inapplicable
Accounts receivable with insignificant single amount for which bad debt provision separately accrued
√ Applicable □ Inapplicable
Unit: RMB Yuan
Company Closing balance Bad debt provision Proportion (%) Reasons for provision
The Company is required
Dongfang Xiwang to bear part of the
Baotou Xitu Aluminum 1,140,000.00 362,400.00 31.79% subsequent costs and thus
Co., Ltd. the receivable amount is
not expected to be fully
Datang Liaoyuan Power Deduction for equipment
18,890,000.00 4,800,000.00 25.41%
Plant quality issues
Shanxi Datang
Deduction for equipment
International Yungang 18,612,000.00 12,853,600.00 69.06%
quality issues
Thermal Power Co., Ltd.
Gansu Datang Xigu The retention money is
Thermoelectric Co., Ltd 12,952,460.00 12,952,460.00 100% difficult to be received
due to the quality issues.
The retention money is
Gansu Diantou Jinchang
580,000.00 580,000.00 100% not expected to be fully
Generating Co., Ltd.
received
Total 52,174,460.00 31,548,460.00 -- --
(2) Accounts receivable reversed or collected in the report period
Unit: RMB Yuan
Bad debt provision
Reason for reversed or Basis for bad debt Amount reversed or
Item before reversal or
collected provision collected
collection
Management took
measures to strengthen
Shuangyashan Thermopower
the collection and Aging above 5 years 1,380,000.00 1,380,000.00
Co.Ltd
increase collection
efforts
Management took
Xinjiang Huadian Changji measures to strengthen
Thermopower Company the collection and Aging above 5 years 500,000.00 500,000.00
increase collection
efforts
Management took
Shanxi Lu'an Yuwu measures to strengthen
Thermopower Co., Ltd. the collection and Aging above 5 years 1,050,000.00 1,050,000.00
increase collection
efforts
Management took
Xinxiang Yuxin Generating measures to strengthen
Co., Ltd. the collection and Aging above 5 years 349,996.70 349,996.70
increase collection
efforts
Management took
measures to strengthen
Zhengzhou Gas Power
the collection and Aging above 5 years 2,547,589.64 2,547,589.64
Generation Co., Ltd.
increase collection
efforts
63
2013 Interim Report of Wuhan Boiler Company Limited
Total -- -- 5,827,586.34 --
Accounts receivable with significant single amount or insignificant single amount for which separately
made impairment test at the end of report period: none
Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by
credit risks characteristics:
Inapplicable
(3) The write-off accounts receivable: none.
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting rights of
the Company: none.
(5) Information of top 5 accounts receivable
Unit: RMB Yuan
Relation with the
Name of entity Amount Age Proportion (%)
Company
Guodian Xi’an Thermal 30,854,300.00 for 1-2
Power Preparatory Office Non-affiliated 61,708,600.00 years, 30,854,300.00 18.38%
for 2-3years
Shanxi Zhengxin Group Over 5 years
Non-affiliated 39,820,000.00 11.86%
Co., Ltd.
Guodian Lanzhou 1-2 years
Non-affiliated 28,103,300.00 8.37%
Thermopower Co., Ltd.
Dongfang Xiwang
Baotou Xitu Aluminum Non-affiliated 24,820,000.00 4-5years 7.39%
Co., Ltd.
Zhuangping Xinyuan 7,019,000 within one
Aluminium Industry Non-affiliated 21,057,000.00 year 14,038,000 for 1-2
， 6.27%
Co., Ltd. years
Total -- 175,508,900.00 -- 52.27%
(6) The amounts due from related parties
Unit: RMB Yuan
The relationship with the
Company Amount Proportion
Company
Wuhan Boiler Group A subsidiary of the second
Engineering technology Co.,largest shareholder 4,854,995.28 1.45%
Ltd.
ALSTOM Boiler Deutschland A subsidiary of the ultimate
138,538.90 0.04%
GmbH holding company
ALSTOM Power Inc. A subsidiary of the ultimate
15,834,584.87 4.72%
holding company
Total -- 20,828,119.05 6.21%
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2013 Interim Report of Wuhan Boiler Company Limited
(7) Information of accounts receivable that terminated recognition: none.
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount of
assets and liabilities arising from further involvement: none.
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
individually significant 26,673,222.3 26,673,222.3 26,673,222.3
21.23% 100% 19.73% 26,673,222.30 100%
for which provisions for 0 0 0
bad debts separately
accrued
Other accounts receivable that provisions for bad debts by group
Group 1 (using aging 82,405,933.1 15,340,769.2 85,732,784.3
analysis) 65.6% 18.62% 63.42% 15,516,126.79 18.1%
0 3 1
Group 2 (No bad debt
13,894,269.2 20,139,373.0
provision for account 11.06% 14.9%
9 0
receivables)
96,300,202.3 15,340,769.2 105,872,157.
Subtotal of group 76.67% 15.93% 78.32% 15,516,126.79 14.66%
9 3 31
Other accounts
receivable that is
individually insignificant
2,636,308.95 2.1% 2,636,308.95 100% 2,636,308.95 1.95% 2,636,308.95 100%
for which bad debts
provision separately
accrued
125,609,733. 44,650,300.4 135,181,688.
Total -- -- -- 44,825,658.04 --
64 8 56
Notes for categories of other accounts receivable:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Closing balance Bad debt provision Proportion Notes
Projects are suspended
and the amount is not
Shanxi Zhenxing Group 6,722,635.46 6,722,635.46 100%
expected to be
recoverable
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 26,673,222.30 26,673,222.30 -- --
In the group, other accounts receivable withdrew provision for bad debts by aging analysis:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Aging of receivables Closing balance Opening balance
65
2013 Interim Report of Wuhan Boiler Company Limited
Balance Balance
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Including:
Within 1 year (including
1 year)
Sub-total (Within 1
4,276,885.45 5.19% 128,306.56 5,578,704.67 6.51% 167,361.14
year)
1-2 years(including 2
4,276,885.45 5.19% 128,306.56 5,578,704.67 6.51% 167,361.14
year)
2-3 years(including 3
2,431,452.04 2.95% 72,943.56 1,938,083.66 2.26% 58,142.51
year)
3-4 years(including 4
2,518,400.37 2.94% 151,104.02
year)
4-5 years(including 5
54,102,803.27 65.65% 10,820,560.64 63,012,895.74 73.5% 12,602,579.15
year)
Above 5 years 21,594,792.34 26.21% 4,318,958.47 12,684,699.87 14.79% 2,536,939.97
Total 82,405,933.10 -- 15,340,769.23 85,732,784.31 -- 15,516,126.79
In the group, other accounts receivable withdrew provision for bad debts by balance percentage:
□ Applicable √ Inapplicable
In the group, other accounts receivable withdrew provision for bad debts by other methods:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Group name Closing balance Bad debt provision
No bad debt provision for account receivables 13,894,269.29 0.00
Total 13,894,269.29 0.00
Other closing individually insignificant but provisions for bad debts individually accounts receivable
√ Applicable □ Inapplicable
Unit: RMB Yuan
Company Closing balance Bad debt provision Proportion Reason
3RC Company Limited 336,604.05 336,604.05 100% Bankruptcy
Pingtai Power
424,514.70 424,514.70 100% Project suspended
Development Co.,LTD
Henan Dengfeng
Xiangyang Power 32,430.77 32,430.77 100% Project suspended
Co.,Ltd
Qindao Houhai Thermal
518,227.71 518,227.71 100% Project suspended
Power Co.,Ltd
Jiangsu Wangda Paper
723,504.31 723,504.31 100% Project suspended
Co.,Ltd
Qingtongxia Aluminium
5,736.41 5,736.41 100% Project suspended
Co.,Ltd
Henan Zhongmai Power Difficult to execute the
173,411.00 173,411.00 100%
Co.,Ltd court judge
Shanmenxia Huineng Difficult to execute the
143,897.00 143,897.00 100%
Thermal Power Co.,Ltd court judge
Shanxi Zhenxin Group 277,983.00 277,983.00 100% Difficult to execute the
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2013 Interim Report of Wuhan Boiler Company Limited
Co.,Ltd court judge
Total 2,636,308.95 2,636,308.95 -- --
(2) Information of other accounts receivable reversed or recovered in the report period: none.
Accounts receivable with significant single amount or insignificant single amount for which separately
made impairment test at the end of report period: none.
Notes of other accounts receivable with individually insignificant but was of big risk after grouped by
credit risk:
Inapplicable
(3) Information of other accounts receivable written off in the report period: none.
(4) Accounts receivable is due from shareholders with more than 5% (including 5%) of the voting shares
of the Company
Unit: RMB Yuan
Closing balance Opening balance
Company
Amount Bad debt provision Amount Bad debt provision
Wuhan Boiler (Group) Co., Ltd. 64,030,488.11 12,895,907.62 64,030,488.11 12,895,907.62
ALSTOM (China) Investment Co.,
19,442.60 583.28 3,200,336.47 190,807.11
Ltd.
Total 64,049,930.71 12,896,490.90 67,230,824.58 13,086,714.73
(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
relocation of the old
Wuhan Boiler Group Co., Ltd. 64,030,488.11 50.98%
factory, and now WBC is
negotiating it with WBG
Total 64,030,488.11 -- 50.98%
(6)Information of top five other accounts receivable
Unit: RMB Yuan
Name of company Relationship with the Amount Aging Proportion of the total
Company (%)
Wuhan Boiler (Group) The company's
Co., Ltd. second-largest 64,030,488.11 4-5 years 50.98%
shareholder
Shandong Luneng Non-affiliated
Material Group Co. 25,659,390.26 3-4 years 20.43%
Limited
Donghu Development Non-affiliated
10,774,265.00 4-5 years 8.58%
Zone Committee
Shanxi Zhengxin Group Non-affiliated
6,722,635.47 Over 5 years 5.35%
Co., Ltd.
ALSTOM Boiler A subsidiary of the 1,446,233.37 within one
Deutschland GmbH ultimate holding 3,495,561.42 year, 2,049,328.05 for 2.78%
company 1-2 years
Total -- 110,682,340.26 -- 88.12%
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2013 Interim Report of Wuhan Boiler Company Limited
.
(7) Information of the amounts from related parties
Unit: RMB Yuan
The relationship with the
Name of company Amount Proportion
Company
ALSTOM (China) Investment Controlling shareholder
19,442.60 0.02%
Co. Ltd
ALSTOM (Wuhan) A subsidiary of the ultimate
Engineering & Technology holding company 483,612.65 0.39%
Co., Ltd.
ALSTOM Boiler Deutschland A subsidiary of the ultimate
3,495,561.42 2.78%
GmbH holding company
A subsidiary of the ultimate
ALSTOM (Switzerland) Ltd 151,200.00 0.12%
holding company
A subsidiary of the ultimate
ALSTOM Power Inc. 36,157.65 0.03%
holding company
A subsidiary of the ultimate
ALSTOM Boiler France 1,683,519.41 1.34%
holding company
Wuhan Boiler (Group) Co., Second largest shareholder
64,030,488.11 50.98%
Ltd.
Wuhan Boiler (Group) Subsidiary of Second largest
10,171.01 0.01%
Yuntong Co., Ltd. shareholder
Wuhan Boiler (Group) Valve Subsidiary of Second largest
240,571.49 0.19%
Co., Ltd. shareholder
Total -- 70,150,724.34 55.86%
(8) Information of other derecognized accounts receivable: none.
(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: none.
5. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Less than 1
year (including 41,770,435.35 66.65% 98,370,274.91 83.52%
1 year)
1 year to 2
years
6,323,286.62 10.09% 8,884,617.96 7.55%
(including 2
years)
2 years to 3
years
4,318,225.18 6.89% 616,453.62 0.52%
(including 3
years)
Over 3 years 10,259,706.18 16.37% 9,904,791.02 8.41%
Total 62,671,653.33 -- 117,776,137.51 --
Notes: The prepayments aged more than 1 year was spreading purchase item which was unsettled.
(2)Details of the top 5 prepayment
Unit: RMB Yuan
68
2013 Interim Report of Wuhan Boiler Company Limited
Name of company Relationship with the Amount Aging Reasons
Company
Haodunhua Engineer Non-affiliated Project has not yet
14,000,000.00 2013-6-25 completed
Co., Ltd.
Alstom Technological A subsidiary of the Project has not yet
Services (Shanghai) Co., ultimate holding 13,260,000.00 2013-4-18 completed
Ltd. company
Changzhi Tsinghua Steel Non-affiliated Project has not yet
7,211,730.73 2012-11-16 completed
Structure Co., Ltd.
Equipment Non-affiliated Project has not yet
Manufacturing completed
Subsidiary of the 7th 5,868,461.53 2013-2-26
Company of China Oil
and Gas
SUMITOMO Non-affiliated Project has not yet
Corporation (Shanghai) 2,579,020.82 2013-4-28 completed
Ltd.
Total -- 42,919,213.08 -- --
Notes: the prepayment is mainly for material purchasing.
(3) Information of shareholders with more than 5% (including 5%) of the voting shares of the Company in
prepayment: none.
(4) Notes of prepayment
Closing balance of prepayment decreased 46.79% as compared to last year, mainly due to receipt of
suppliers’ invoices.
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 104,366,943.37 23,874,975.82 80,491,967.55 131,734,181.51 28,330,047.16 103,404,134.35
Construction
54,406,347.16 25,912,722.99 28,493,624.17 65,867,615.17 26,173,583.79 39,694,031.38
contract assets
Total 158,773,290.53 49,787,698.81 108,985,591.72 197,601,796.68 54,503,630.95 143,098,165.73
(2) Provision for impairment of inventories
Unit: RMB Yuan
Decrease
Category Opening balance Increase Closing balance
Reversal Written off
Raw materials 28,330,047.16 4,455,071.34 23,874,975.82
Construction contract
26,173,583.79 260,860.80 25,912,722.99
assets
Total 54,503,630.95 4,715,932.14 49,787,698.81
(3) Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for falling
Item Reasons for reversal provision for impairment of
price of inventories
inventories to closing balance
Raw materials Net realizable value in the
69
2013 Interim Report of Wuhan Boiler Company Limited
market
Expected loss from contract
Construction contract assets loss
Notes 1: Raw material decreased 20.77% mainly due to consumption of raw materials in construction
projects; construction contract assets decrease 17.40%, which is because the main projects are completed or
closed.
Notes 2: The write-off of the raw materials is due to the disposal of previously impaired raw materials and
transferring to project costs.
Notes 3: The construction contract assets write-off is due to release of contract loss provision as the project
completion or close.
7. Fixed assets
(1)Fixed assets details
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Total original book value 956,441,276.07 939,478.04 7,599,905.94 949,780,848.17
Including: Property and
522,153,387.13 522,153,387.13
building
Machineries 394,323,562.59 290,170.92 5,915,485.87 388,698,247.64
Vehicles 1,143,874.64 1,143,874.64
Electronic equipment and
38,820,451.71 649,307.12 1,684,420.07 37,785,338.76
office equipment
-- Opening balance Increase Withdraw Decrease Closing balance
II. Accumulated
212,427,302.01 20,037,873.38 7,229,629.40 225,235,545.99
depreciation:
Including: Property and
41,676,247.08 6,536,605.44 48,212,852.52
building
Machineries 144,138,973.67 9,933,355.28 5,559,599.87 148,512,729.08
Vehicles 709,200.74 67,955.38 777,156.12
Electronic equipment and
25,902,880.52 3,499,957.28 1,670,029.53 27,732,808.27
office equipment
Opening book
-- -- Closing balance
balance
III. The net book value of
744,013,974.06 -- 724,545,302.18
fixed assets
Including: Property and
480,477,140.05 -- 473,940,534.61
building
Machineries 250,184,588.92 -- 240,185,518.56
Vehicles 434,673.90 -- 366,718.52
Electronic equipment and
12,917,571.19 -- 10,052,530.49
office equipment
IV. Total impairment
2,427,234.66 -- 2,167,630.33
provision
Machineries 2,307,942.56 -- 2,048,338.23
Vehicles 61,574.28 -- 61,574.28
Electronic equipment and
57,717.82 -- 57,717.82
office equipment
V. Total book value of fixed
741,586,739.40 -- 722,377,671.85
assets
Including: Property and
480,477,140.05 -- 473,940,534.61
building
Machineries 247,876,646.36 -- 238,137,180.33
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2013 Interim Report of Wuhan Boiler Company Limited
Vehicles 373,099.62 -- 305,144.24
Electronic equipment and
12,859,853.37 -- 9,994,812.67
office equipment
Depreciation amount of this report period was RMB 20,037,873.38; RMB 47,400.00 was transferred into fixed
assets from construction project.
(2) Temporarily idle fixed assets
None
(3) Fixed assets leased in from financing lease
None
(4) Fixed assets leased out from operation lease
None
(5) Details of holding-for-sale fixed assets at period-end
None
(6) Details of fixed assets failed to accomplish certification of property
The Company had received the certification of property in July, 2013.
8. Construction in progress
(1) General information
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Equipment for new base of
2,084,089.93 2,084,089.93 1,562,224.98 1,562,224.98
the Company
Total 2,084,089.93 2,084,089.93 1,562,224.98 1,562,224.98
(2) Significant changes in construction in progress
Unit: RMB Yuan
Includin
Project g:
Transferr Capitaliz
input Capitaliz capitaliz Source
Name of Opening ed to Other Project ation of Closing
Budget Increase percenta ation of ation of of
project balance fixed decrease process interest balance
ge of interest interest funding
assets rate (%)
budget this
period
New
base
equipme 400,000, 1,562,22 569,264. 47,400.0 8,999,35 2,084,08
nt 000.00 4.98 95 0 0.34 9.93
procure
ment
400,000, 1,562,22 569,264. 47,400.0 8,999,35 2,084,08
Total -- -- -- --
000.00 4.98 95 0 0.34 9.93
Notes:
The closing balance of the construction in progress increased of 33.41% when compared to the beginning
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2013 Interim Report of Wuhan Boiler Company Limited
of the period, mainly because the purchase of the new equipments according to the produce requirements.
(3) Impairment provision of construction in progress
None
(4) Details of procedures of significant construction in progress
Item Project process Notes
New base equipment procurement Put into production use
(5) Notes of construction in progress
None
9. Intangible assets
(1) Details of intangible assets
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Total original book value 151,312,071.04 151,312,071.04
1. Land use right 41,599,836.72 41,599,836.72
2. Proprietary technology 93,251,576.87 93,251,576.87
3. Software 16,460,657.45 16,460,657.45
II. Total accrued amortization 71,343,256.73 3,294,227.40 74,637,484.13
1. Land use right 3,887,317.62 415,946.90 4,303,264.52
2. Proprietary technology 51,986,835.98 2,361,046.59 54,347,882.57
3. Software 15,469,103.13 517,233.91 15,986,337.04
III. Total net book value of
79,968,814.31 -3,294,227.40 76,674,586.91
intangible assets
1. Land use right 37,712,519.10 -415,946.90 37,296,572.20
2. Proprietary technology 41,264,740.89 -2,361,046.59 38,903,694.30
3. Software 991,554.32 -517,233.91 474,320.41
IV. Total impairment
provision
1. Land use right
2. Proprietary technology
3. Software
Total book value of
79,968,814.31 -3,294,227.40 76,674,586.91
intangible assets
1. Land use right 37,712,519.10 -415,946.90 37,296,572.20
2. Proprietary technology 41,264,740.89 -2,361,046.59 38,903,694.30
3. Software 991,554.32 -517,233.91 474,320.41
Amortized RMB 3,294,227.40 in the report period.
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2013 Interim Report of Wuhan Boiler Company Limited
(2) Company development expenses
None
10. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
List of deferred tax assets and liabilities that already recognized
Unit: RMB Yuan
Item Closing amount Opening amount
Deferred income tax assets:
Provision for assets impairment 54,445,876.35 57,549,250.74
Subtotal 54,445,876.35 57,549,250.74
Deferred income tax liabilities:
List of deferred tax assets and liabilities that had not been recognized
Unit: RMB Yuan
Item Closing amount Opening amount
Deductible temporary differences 92,989,067.71 95,744,871.68
Deductible losses 1,265,718,309.29 1,230,641,375.83
Total 1,358,707,377.00 1,326,386,247.51
The deferred tax assets and liabilities which had not been recognized will due on the following years.
Unit: RMB Yuan
Years Closing amount Opening amount Notes
2013 300,367,116.96 300,367,116.96
2014 364,372,073.45 364,372,073.45
2015 138,617,290.31 138,617,290.31
2016 258,201,599.91 258,201,599.91
2017 204,160,228.66 169,083,295.20
Total 1,265,718,309.29 1,230,641,375.83 --
List of taxable differences and deductible differences:
Unit: RMB Yuan
Amount of temporary differences
Item
Closing balance Opening balance
Taxable difference items
Subtotal
Deductible temporary differences
1. Provision for bad debts 189,703,152.06 201,596,184.50
2. Provision for obsolete stocks 25,912,722.99 26,173,583.79
3. Fixed assets depreciation reserves 2,167,630.33 2,427,234.66
Subtotal 217,783,505.38 230,197,002.95
(2) Deferred income tax assets and liabilities are listed as the net value after offset
Notes of deferred income tax assets and liabilities
Unit: RMB Yuan
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2013 Interim Report of Wuhan Boiler Company Limited
Deferred deductible
Deferred deductible
Deferred income tax or taxable temporar Deferred income tax or taxable temporar
assets and liabilities assets and liabilities y differences at the
Item
at the end of the y differences at the at the opening of the opening of the per
period end of the period period
iod
Deferred income tax assets 54,445,876.35 57,549,250.74
11. List of assets impairment
Unit: RMB Yuan
Decrease
Item Opening balance Increase Closing balance
Reversal Written off
I. Provision for bad debt 229,899,579.55 -13,338,811.64 216,560,767.91
II. Provision for inventory
54,503,630.95 4,715,932.14 49,787,698.81
falling price
VII. Impairment provision of
2,427,234.66 259,604.33 2,167,630.33
fixed assets
Total 286,830,445.16 -13,338,811.64 4,975,536.47 268,516,097.05
Notes of list of assets impairment:
12. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
0.00 9,810,557.57
Total 9,810,557.57
Notes of other non-current assets
The other non-current assets decreased of 100%, mainly because less loss arising from the unsettled
forward foreign exchange contract in the report period.
13. Short-term loan
(1) Category
Unit: RMB Yuan
Category Closing balance Opening balance
Credit loan 200,000,000.00
Entrust loan 1,680,400,000.00 1,705,000,000.00
Total 1,880,400,000.00 1,705,000,000.00
Notes:
The credit loans were offered by HSBC; the entrust loans were offered by the controlling shareholder of
the Company --ALSTOM (China) Investment Co., Ltd., with the total amount no more than RMB
2,200,000,000.
(2) List of unsettled mature short-term loan
None
14. Notes payables
Unit: RMB Yuan
Category Closing balance Opening balance
74
2013 Interim Report of Wuhan Boiler Company Limited
Bank acceptance 94,800,000.00 42,532,000.00
Total 94,800,000.00 42,532,000.00
RMB 94,800,000.00will be due in next fiscal period.
Notes of Notes payable:
1. The Notes payable increased of 122.89% when compared to the beginning of the period, mainly because
the due for payment of the accounts payable of the materials purchasing in the last year.
2. In the balance of Notes payable, there are accounts of RMB 1,000,000.00 of the controlling
shareholder--ALSTOM (China) Investment Co., Ltd.
15. Accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 73,421,672.62 169,807,232.93
1 to 2 years (including 2 years) 12,708,568.11 40,921,946.03
2 to 5 years (including 5 years) 63,979,466.17 69,331,799.72
Over 5 years 3,800,695.74 5,377,556.47
Total 153,910,402.64 285,438,535.15
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of
the Company
Unit: RMB Yuan
Name of entity Closing balance Opening balance
TSI Integrated DE Mannheim 1,040,641.06 1,030,026.87
ALSTOM Power Service GmbH 0.00 84,159.34
ALSTOM Power INC. 488,787.14 488,787.14
ALSTOM s.r.o 11,759.71 11,759.71
ALSTOM (Switzerland) Ltd 204,411.74 20,215.17
ALSTOM Power Energy 10,614.19 29,970.10
ALSTOM (China) Investment Co., Ltd. 0.00 852,425.05
ALSTOM Technical Services (Shanghai) Co.,
8,027,000.00 4,767,000.00
Ltd.
Wuhan Boiler Group Express Co., Ltd. 17,440.01 17,440.01
Wuhan Boiler Group Valve Co., Ltd. 465,360.26 432,528.34
Wuhan Boiler Group Engineering technology
19,125,755.73 19,125,755.73
Co., Ltd.
ALSTOM (Wuhan) Engineering Technology
100,000.00 0.00
Co., Ltd.
Total 29,491,769.84 26,860,067.46
(3) List of significant accounts payable aging over 1 year
The accounts payable aging over 1 year were mainly the diffusion process costs payable, which owning to
the unsettlement, should settle the accounts after the warranty period of the Boiler products.
16. Advance from customers
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
75
2013 Interim Report of Wuhan Boiler Company Limited
Sales accounts payable 406,376,839.91 796,939,508.66
Total 406,376,839.91 796,939,508.66
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the voting
shares of the Company
Unit: RMB Yuan
Name of entity Closing balance Opening balance
ALSTOM Estonia AS 4,304,993.99
ALSTOM Boiler Deutschland GmbH 108,751,137.50 344,703,704.47
ALSTOM Power Inc. 192,204,622.87 374,284,067.80
Total 305,260,754.36 718,987,772.27
(3) Notes of significant advance from customers aged longer than 1 year:
None
17. Payroll payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Salary, bonus, allowance,
9,004,854.52 60,446,720.04 66,099,194.99 3,352,379.57
subsidy
III. Social insurance 12,136,373.40 12,136,373.40
1. Medical insurance
3,059,305.76 3,059,305.76
premiums
2. Basic endowment insura
7,779,993.05 7,779,993.05
nce
3.Unemployment insurance 757,254.27 757,254.27
4. Work-related injury insu
273,445.47 273,445.47
rance
5.Maternity insurance 266,374.85 266,374.85
IV. Housing fund 3,109,739.50 3,109,739.50
VI. Others 44,433,756.34 1,322,452.18 7,483,532.62 38,272,675.90
Labor union expenditures
and personnel education fu 3,116,531.33 1,185,829.46 3,278,901.42 1,023,459.37
nds
Retirement subsidies
and early retirement 41,317,225.01 136,622.72 4,204,631.20 37,249,216.53
expenses
Total 53,438,610.86 77,015,285.12 88,828,840.51 41,625,055.47
RMB 000 of payroll payable was in default.
RMB 1,023,459.37was of labor union fee and employee education fee, RMB 000 was of non-monetary
welfare, RMB 000 was of redemption for termination of labor contract.
18. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT -72,651,182.82 -94,627,427.90
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2013 Interim Report of Wuhan Boiler Company Limited
Business tax 1,060.00
Personal income tax 128,320.29 -5,628.71
Urban maintenance and construction tax 74.20
Levee fees 10.60
Educational surcharges 31.80
Local educational surcharges 21.20
Stamp taxes 6,259.46 21,729.71
Land use taxes 782,224.03
Property Taxes 2,494,834.86
Withholding the foreign enterprise income taxes 21,975.87
Total -69,217,568.31 -94,610,129.10
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:
None
19. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Interest payable on short-term borrowings 3,542,575.34 2,442,575.34
Total 3,542,575.34 2,442,575.34
Notes:
The interests payable were mainly the contract borrowings accrued interest.
20. Dividends payable
Unit: RMB Yuan
Reason of fail to unsettle more than
Name of company Opening balance Closing balance
1 year
Harbin Institute Of East Force
108,000.00 108,000.00 The Company is in liquidation
Mechanical And Electrical Company
West Jiaotong University Xingyuan
166,000.00 166,000.00 The Company is in liquidation
Power Corporation
Shanghai Power Equipment Research
144,000.00 144,000.00 The Company is in liquidation
Institute
Wuhan City Environmental
144,000.00 144,000.00 The Company is in liquidation
Protection Engineering Co., Ltd
Total 562,000.00 562,000.00 --
Notes:
The dividends payable were the unpaid dividends of the Company’s subsidiary--Wuhan Lanxiang Energy
Environmental Technology Co., Ltd.
21. Other accounts payable
(1) General information
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 18,913,753.61 35,917,697.40
1 to 2 years (including 2 years) 9,941,402.37 4,917,368.42
2 to 5 years (including 5 years) 23,073,908.34 19,667,455.28
Total 51,929,064.32 60,502,521.10
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2013 Interim Report of Wuhan Boiler Company Limited
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting
shares of the Company
Unit: RMB Yuan
Name of entity Closing balance Opening balance
Wuhan Boiler Group Co., Ltd. 974,056.13 974,056.13
ALSTOM (Switzerland) Ltd 718,145.72 2,756,251.11
ALSTOM (China) Investment Co., Ltd. 1,615,620.23 1,438,206.83
ALSTOM IS&T SAS 1,139,454.70 9,487,835.67
ALSTOM Power Ltd 87,948.88 87,948.88
ALSTOM Holdings France 15,066.97 0.00
Total 4,550,292.63 14,744,298.62
(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 were mainly the amount collected from
employees on behalf used to purchase ALSTOM stocks.
(4) Details of the significant amount of other accounts payable
Item Amount The nature or content
ALSTOM (China) Investment Co.,Ltd 1,615,620.23 GITO service fee
ALSTOM IS&T SAS 1,139,454.70 ITSAS service fee
ALSTOM (Switzerland) Ltd 718,145.72 PMX fee
Stock deductions 5,179,375.37 Collected and paid on behalf of others
Total 8,652,596.06
22. Other non-current liabilities
Unit: RMB yuan
Item Closing book balance Opening book balance
Deferred income 12,453,624.00 12,592,512.00
Hedged items 1,621,576.30 8,884,838.41
Unrecognized finance fees -7,564,287.24 -8,836,934.01
Total 6,510,913.06 12,640,416.40
Notes of other non-current liabilities: included all the government subsidies which related to assets and profits and its closing
balance in report period.
1. Deferred incomes were the deferred incomes related to the land use right of the new factories of the
Company;
2.The closing amount of arbitraged items decreased of 81.75% when compared to the beginning of the
period, mainly because the hedging gains and losses produced from the completion of the hedged item
decreased in report period;
3.The employee retirement benefits discount fees confirmed according to the rules of "Employee Benefits"
Accounting Standards of the unsettled financial expenses.
78
2013 Interim Report of Wuhan Boiler Company Limited
23. Share capital
Unit: RMB yuan
Increase/Decrease (+/-)
Opening Reserves Closing
balance Issuing new balance
Bonus shares transferred to Others Subtotal
shares
shares
Total shares 297,000,000.00 297,000,000.00
24. Capital surplus
Unit: RMB yuan
Item Opening balance Increase Decrease Closing balance
Capital premium (share
144,909,718.58 144,909,718.58
capital premium)
Other capital surplus 29,749,688.88 29,749,688.88
Total 174,659,407.46 174,659,407.46
25. Surplus reserve
Unit: RMB yuan
Item Opening balance Increase Decrease Closing balance
Legal surplus 39,418,356.83 39,418,356.83
Total 39,418,356.83 39,418,356.83
26. Retained earnings
Unit: RMB yuan
Withdrawal or distributed
Item Amount
proportion
Opening balance of retained earnings before
-1,754,297,302.26 --
adjustments
Opening balance of retained earnings after
-1,754,297,302.26 --
adjustments
Add: Net profit attributable to owners of the
-36,438,887.02 --
Company
Closing retained earnings -1,790,736,189.28 --
27. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
Sales of main business 459,095,994.70 359,625,071.80
Other operating income 3,185,112.05 16,952,630.50
Cost of sales 449,540,053.90 345,842,634.98
(2) Main business (Classified by industry)
Unit: RMB yuan
2013 Jan-Jun 2012 Jan-Jun
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Boiler Industry 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
Total 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
79
2013 Interim Report of Wuhan Boiler Company Limited
(3) Main business (Classified by product)
Unit: RMB yuan
2013 Jan-Jun 2012 Jan-Jun
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Boiler and accessories sales 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
Total 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
(4) Main business (Classified by area)
Unit: RMB yuan
2013 Jan-Jun 2012 Jan-Jun
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Domestic 107,191,166.56 124,808,687.05 90,248,828.49 89,513,240.29
Foreign countries 351,904,828.14 322,841,719.14 269,376,243.31 239,228,665.07
Total 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
(5) List of the top five customers
Unit: RMB yuan
Customers Sales of main business Proportion of total revenue (%)
Customers under same control of
351,369,022.58 76.01%
ALSTOM
Binzhou Beihai New Materials
95,816,717.96 20.73%
Co., Ltd.
Gansu Diantou Yongchang
8,797,321.45 1.9%
Generating Co.,Ltd
Guodian Taian thermoelectric
1,070,457.51 0.23%
Co.,Ltd
Guodian xian thermoelectric
1,052,365.18 0.23%
project preparatory office
Total 458,105,884.68 99.1%
28. Revenue from the construction contracts
Unit: RMB yuan
Recognized
Incurred cumulative cumulative gross
Contract item Amount Settled amount
costs profit (Losses
presented by “-”)
ALSTOM Power Inc 1,734,814,606.72 558,716,995.40 60,478,468.84 618,195,643.16
ALSTOM Boiler
567,808,887.22 276,574,666.74 91,450,879.60 368,025,546.32
Deutschland GmbH
Binzhou Beihai New
478,632,478.63 123,836,632.74 6,100,971.37 129,937,604.11
Materials Co., Ltd.
Fixed price contract Shandong Luneng
Material Group Co., 335,811,965.81 252,277,575.03 75,016,685.97 302,230,769.16
Ltd.
Jinchang, Gansu
Electric Power 258,974,358.97 222,281,679.41 15,559,462.41 233,076,923.10
Investment Co., Ltd.
State Power Plant in
238,120,000.00 1,070,457.51 0.00 0.00
Shandong Tai'an
Other 714,913,439.64 606,438,829.09 -60,717,041.90 523,213,429.20
Subtotal 4,329,075,736.99 2,041,196,835.92 187,889,426.29 2,174,679,915.05
80
2013 Interim Report of Wuhan Boiler Company Limited
29. Business tax and surcharges
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun Calculation and payment standard
Business tax 1,000.00
Urban maintenance and construction
70.00
tax
Education surtax 30.00
Dyke fee 10.00
Local education surtax 20.00
Total 1,130.00 --
30. Selling expenses
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
Wages and bonus 2,807,571.42 2,048,879.75
Social insurance 279,941.16 392,143.66
Travel expenses and entertainment
990,795.60 155,812.16
expenses
Housing fund 74,754.00 64,250.00
Depreciation 219,852.58 249,260.82
Rental fee 92,769.85 123,860.02
Energy cost 62,720.21 64,918.99
Consult fees 244,900.00 31,333.33
IT related cost 206,461.99 90,315.41
Office expenses 125,147.22 37,298.90
Other 1,355,933.17 490,239.06
Total 6,460,847.20 3,748,312.10
31. Administration expenses
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
Wages and bonus 5,076,221.61 4,466,596.39
Social insurance 550,492.88 420,512.14
Housing property tax and land use right 2,794,834.86 2,468,684.22
Travel expenses and entertainment
779,606.29 1,267,435.45
expenses
Housing fund 166,769.00 91,944.40
Other 3,691,567.06 329,028.37
Total 13,059,491.70 9,044,200.97
32. Financial expenses
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
Interest incomes 42,694,100.00 47,476,945.50
Less: Interest costs -152,954.29 -87,299.71
Exchange net losses -4,493,748.02 8,168,268.54
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2013 Interim Report of Wuhan Boiler Company Limited
Bank charges 864,362.75 220,250.34
Amortization unrecognized financing
1,288,432.66 596,110.45
charges
Other
Total 40,200,193.10 56,374,275.12
33. Gains and losses from changes in fair value
Unit: RMB yuan
Source 2013 Jan-Jun 2012 Jan-Jun
Hedging gains and losses -2,547,295.46 2,850,685.36
Total -2,547,295.46 2,850,685.36
34. Impairment losses
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
I. Bad debts losses -13,338,811.64 -53,613,714.96
II. Inventory falling price losses 16,722,086.68
Total -13,338,811.64 -36,891,628.28
35. Non-operating gains
(1) General information
Unit: RMB yuan
The amount included in the
Item 2013 Jan-Jun 2012 Jan-Jun current non-recurring gains
and losses
Total gains from disposal of non-current
401,164.36 9,072.82 401,164.36
assets
Including: Gains from disposal of fixed
401,164.36 9,072.82 401,164.36
assets
Government subsidies 538,888.00 138,888.00 538,888.00
Indemnity and fine incomes 1,957,808.82 1,957,808.82
Write-off payables 1,272,663.79
Other 15,305.57 15,305.57
Total 2,913,166.75 1,420,624.61 2,913,166.75
(2) List of government subsidies
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun Notes
Government subsidies related to the City Finance Bureau’s one business
400,000.00
incomes one policy incentives in 2012
Government subsidies related to the New factory revenue amortization of
138,888.00 138,888.00
assets land use rights
Total 538,888.00 138,888.00 --
36. Non-operating expenses
Unit: RMB yuan
The amount included in
Item 2013 Jan-Jun 2012 Jan-Jun the current non-recurring
gains and losses
Loss on disposal of non-current assets 67,734.21 1,786.32 67,734.21
82
2013 Interim Report of Wuhan Boiler Company Limited
Including: Loss on disposal of fixed assets 67,734.21 1,786.32 67,734.21
Other 1,000.00 8,000.00 1,000.00
Total 68,734.21 9,786.32 68,734.21
37. Income tax expense
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
Adjustment of income tax 3,103,374.39 27,679,554.95
Total 3,103,374.39 27,679,554.95
38. Calculation procedure of basic earnings per share and diluted earnings per share
The Company in accordance with the China Securities Regulatory Commission, "Public Offering of
Securities Company Information Disclosure Rule No. 9 - ROE and earnings per share calculation and
disclosure (2010 Revision)" ("China Securities Regulatory Commission [2010] No. 2), "public offering of
securities of the Company Disclosure Explanatory Notice No. 1 - non-recurring items (2008)" ("China
Securities Regulatory Commission Announcement [2008] No. 43") requires calculation of earnings per
share is as follows:
(1) List of the amount of basic EPS and diluted EPS each term
Profits in report period 2013 Jan-Jun 2012 Jan-Jun
Basic EPS Diluted EPS Basic EPS Diluted EPS
Net profit attributable to common shareholders of the -0.12 -0.12 -0.08 -0.08
Company (M)
Non-recurring gains and losses of net profit attributable -0.13 -0.13 -0.09 -0.09
to common shareholders of the Company after
deducting influence on income tax (N)
(2) Calculation procedure of earnings per share and diluted earnings per share
Item No. 2013 Jan-Jun
Net profit attributable to common shareholders of the Company A
-36,438,887.02
Non-recurring gains and losses B
2,844,432.54
Net profit attributable to common shareholders of the Company C=A-B
after deducting non-recurring gains and losses -39,283,319.56
Total shares as at the year-begin D 297,000,000.00
Additional shares increased due to capital reserves converted to E
shares or distribution of dividends, etc. in report period
Additional shares due to issuance of new share or debts F
converted into shares, etc. in report period
The number of months from the next month when increasing G
shares due to issuance of new share or debts converted into
shares, etc.
Reduced shares due to buy-back business etc. in report period H
The number of months from the next month when reducing I
shares
Number of shares reduced in report period J
Number of months in report period K 6
Weighted average of common shares issued outside L=D+E+F×G/K-H×I/K-J 297,000,000.00
83
2013 Interim Report of Wuhan Boiler Company Limited
Basic earnings per share M=A/L
-0.12
Basic earnings per share excluding non-recurring gains and N=C/L
losses -0.13
39. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB yuan
Item Amount
Pledged cash received 100,000.00
Refunded deposits of cancellation Guarantee 780,000.00
City Finance Bureau’s one business one policy incentives in 2012 400,000.00
Total 1,280,000.00
Notes:
(2) Other cash paid relevant to operating activities
Unit: RMB yuan
Item Amount
IT service fees 760,755.29
Information Disclosure fees of listed Companies 584,415.00
Security fees 580,460.00
Insurance expenses 490,596.72
Administrative expenses 388,319.06
Consult fees 4,170,165.54
Training expenses 29,992.38
Audit fee 750,000.00
Travel and other expenses 4,983,837.69
Tender bonds 900,000.00
Recruiting costs 91,700.00
Detect costs 1,117,768.35
Water charges 46,309.97
Fuel costs 305,246.80
Cleaning Charges 366,507.50
Gas fees 926,421.14
Property costs 534,450.00
Electric charges 2,998,080.05
Rental expenses 1,029,608.48
General repairs & maintenances 2,459,004.13
Car fares 2,156,038.20
Transportation expenses 426,719.61
Postage expenses 370,929.53
Meal fees 1,427,412.42
Entertainment expenses 439,411.83
Others 93,514.46
Total 28,427,664.15
84
2013 Interim Report of Wuhan Boiler Company Limited
(3) Other cash received relevant to investment activities
Unit: RMB yuan
Item Amount
Interests income 152,850.86
Total 152,850.86
(4) Other cash paid relevant to investment activities
Unit: RMB yuan
Item Amount
Bank charges 434,503.73
Total 434,503.73
(5) Other cash received relevant to financing activities
None
(6) Other cash paid relevant to financing activities
None
40. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
Unit: RMB yuan
Supplemental information 2013 Jan-Jun 2012 Jan-Jun
1. Reconciliation of net profit to net cash flows generated
-- --
from operations ：
Net profit -36,446,904.82 -24,959,253.89
Add: Provision for assets impairments -18,314,348.11 -166,489,936.64
Depreciation of fixed assets, oil-gas assets and productive
20,037,873.38 21,226,963.46
biological assets
Amortization of intangible assets 3,294,227.40 4,043,804.01
Losses/gains on disposal of property, intangible asset and
-333,430.15 -7,286.49
other long-term assets (gains: negative)
Losses/gains on scrapped of fixed assets (gains:
0.00
negative)
Losses/gains from variation of fair value (gains: negative) 2,547,295.46 -2,850,685.36
Financial cost (income: negative) 40,200,193.10 56,374,275.12
Decrease in deferred tax assets (increase: negative) 3,103,374.39 27,679,554.95
Increase in deferred tax liabilities (decrease: negative) 0.00
Decrease in inventory (increase: negative) 38,828,506.15 348,062,728.44
Decrease in accounts receivable from operating activities
160,057,049.64 148,130,556.20
(increase: negative)
Increase in accounts payable from operating activities
-462,171,842.09 -383,881,589.46
(decrease: negative)
Others 0.00
Net cash flows generated from operating activities -249,198,005.65 27,329,130.34
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: -- --
85
2013 Interim Report of Wuhan Boiler Company Limited
Closing balance of Cash 16,683,462.09 19,040,077.95
Less: opening balance of cash 131,071,052.35 20,388,030.03
Plus: closing balance of cash equivalent 0.00
Less: opening balance of cash equivalents 0.00
The net increase in cash and cash equivalents -114,387,590.26 -1,347,952.08
(2) Relevant information of acquisition or disposal of subsidiaries and other operation entities in
the report period
Unit: RMB yuan
Supplemental information 2013 Jan-Jun 2012 Jan-Jun
I. Relevant information on acquisition of subsidiaries and
-- --
other operation entities:
II. Relevant information on disposal of subsidiaries and
-- --
other operation entities
4. Net assets on disposal of subsidiaries 5,673,540.76
Current assets 6,928,746.21
Current liabilities 1,255,205.45
(3) Composition of cash and cash equivalents
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
I. Cash 16,683,462.09 131,071,052.35
Bank deposit on demand 16,683,462.09 131,071,052.35
II. Cash equivalents 0.00 0.00
III. Closing balance of cash and cash equivalents 16,683,462.09 131,071,052.35
41. Notes of statement of shareholders’ equity
None
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
None
2. Main information about the Company that without control right but actually bear specific goals of
its risk
None
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
86
2013 Interim Report of Wuhan Boiler Company Limited
Invest in
5F of the
accordance
Qiankun
with laws
Exclusivel Building, in the
ALSTOM Controllin y foreign- No.6 of
areas
(China) g sharehol the Dominique USD ALSTOM 71092378-
owned ent Santunli Pouliquen which are 60,904,400 51% 51%
Investment der Holdings 2
allowed to
Co., Ltd. erprise 6th Street,
have
Zhaoyang
foreign
District,
investment
Beijing
s etc.
2. Information of subsidiaries of the Company
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 (%)
Boilers,
energy and
environmen
tal
protection
products,
steel,
energy
products
and their
auxiliary
Wuhan equipment
Lanxiang Controlling Limited No. 586 in technology
Energy Wuluo research,
shareholde liability Yang
Environmen Road, design, 20,000,000 95% 95% 73753132-4
r company Guowei
tal Wuchang technology
(domestic)
Technology District consulting,
Co., Ltd. technology
services;
developmen
t of product
sales;
energy
engineering
(non-civil)
contracting
and
technical
services.
3. Information of other related parts of the Company
Name Relationship Organization code
Subsidiary of the Company’s ultimate
ALSTOM Power Inc.
controller
Subsidiary of the Company’s ultimate
ALSTOM Projects India Limited
controller
Subsidiary of the Company’s ultimate
ALSTOM Boiler France
controller
Subsidiary of the Company’s ultimate
ALSTOM Boiler Deutschland GmbH
controller
Subsidiary of the Company’s ultimate
ALSTOM Power Service GmbH
controller
PT ALSTOM Power Energy Systems Subsidiary of the Company’s ultimate
Indonesia controller
ALSTOM Power Energy Subsidiary of the Company’s ultimate
87
2013 Interim Report of Wuhan Boiler Company Limited
controller
Subsidiary of the Company’s ultimate
ALSTOM Estonia AS
controller
Subsidiary of the Company’s ultimate
ALSTOM IS&T SAS
controller
Subsidiary of the Company’s ultimate
ALSTOM Technology Ltd (Switzerland)
controller
Subsidiary of the Company’s ultimate
ALSTOM s.r.o
controller
ALSTOM Holdings Company’s ultimate controller
Subsidiary of the Company’s ultimate
ALSTOM (Switzerland) Ltd
controller
Subsidiary of the Company’s ultimate
TSI Integrated DE Mannheim
controller
ALSTOM Beizhong Power (Beijing) Subsidiary of the Company’s ultimate
76935519-3
Electric Equipment Co., Ltd controller
ALSTOM (Wuhan) Engineering Subsidiary of the Company’s ultimate
77459437-5
Technology Co., Ltd. controller
ALSTOM (China) Investment Co., Ltd. The largest shareholder of the Company 71092378-2
ALSTOM Technical Services (Shanghai) Subsidiary of the Company’s ultimate
60742241-0
Co., Ltd. controller
The second largest shareholder of the
Wuhan Boiler Group Co., Ltd. 17771651-4
Company
The second largest shareholder of
Wuhan Boiler Group Valve Co., Ltd. 30024542-1
subsidiaries
Wuhan Boiler Group Engineering The second largest shareholder of
87769907-3
Technology Co., Ltd. subsidiaries
The second largest shareholder of
Express Wuhan Boiler Group Co., Ltd. 30024726-7
subsidiaries
4. Related party transactions
(1) Goods purchased and service received
Unit: RMB yuan
Rule of price 2013 Jan-Jun 2012 Jan-Jun
setting and
Related parties Details of transaction Proportio Proportio
decision Amount Amount
procedures n (%) n (%)
According to the
Wuhan Boiler Group Purchasing boiler
trade fair market 149,832.26 0.06%
Valve Co., Ltd. accessories
price
ALSTOM Technical According to the
Purchasing raw
Services (Shanghai) trade fair market 32,600,000.00 12.56%
materials
Co., Ltd. price
According to the
Alstom Power Purchasing raw
trade fair market 11,683.46 0%
Energy materials
price
According to the
TSI Integrated DE Purchasing raw
trade fair market 435,430.33 0.22%
Mannheim materials
price
Sales and service provided
Unit: RMB yuan
Rule of price Report period Last period
setting and
Related parties Details of transaction Proportio Proportio
decision Amount Amount
procedures n (%) n (%)
88
2013 Interim Report of Wuhan Boiler Company Limited
According to the
ALSTOM Estonia
Promoting Products trade fair market 6,476,140.55 1.41% 18,001,900.91 5.01%
AS
price
According to the
ALSTOM Boiler
Promoting Products trade fair market 1,747,720.70 0.38% 103,884,831.13 28.89%
Deutschland GmbH
price
According to the
ALSTOM Power
Promoting Products trade fair market 343,145,161.33 74.74% 157,775,532.14 43.87%
Inc.
price
ALSTOM (Wuhan) According to the
Engineering Rendering of service trade fair market 613,248.06 69.84% 2,121,588.32 100%
Technology Co., Ltd. price
(2) Information of related party trusteeship/contract
None
(3) Information of related party lease
None
(4) Information of related party guarantee
None
(5) Related party call loan
None
(6) Information about assets transfer, debt reorganization of related parties
None
(7) Other related party transaction
Unit: RMB yuan
Related party Item Amount
ALSTOM (Switzerland) Ltd Software support fees of PMX 964,140.00
ALSTOM (Switzerland) Ltd Software Application Fees of PDM etc. 193,597075
ALSTOM Beizhong Power (Beijing) Training fees 10,000.00
Electric Equipment Co., Ltd
ALSTOM IS&T SAS ITSAS fees 2,701,242.97
ALSTOM (China) Investment Co., Ltd. ITSSC service fees 1,825,682.37
ALSTOM Boiler France Training fees 44,516.58
ALSTOM (Wuhan) Engineering Project inspection fees 100,000.00
Technology Co., Ltd.
ALSTOM (China) Investment Co., Ltd entrust China Construction Bank to provide a shareholder’s entrusted loan to Wuhan
Boiler Co., Ltd. The amount is RMB 1,680,400,000.00 with a floating downward 10% of PBOC benchmark interest rate.
The cumulative interest expense paid in first half of 2013 was RMB 41,594,100.00
5. Amounts due from/to related parties
Amount due from related parties
Unit: RMB yuan
Closing balance Opening balance
Name Related party
Book value Bad debt provision Book value Bad debt provision
89
2013 Interim Report of Wuhan Boiler Company Limited
Wuhan Boiler Group
Accounts receivable 4,854,995.28 970,999.06 4,854,995.28 970,999.06
Engineering Ltd.
Accounts receivable ALSTOM Power Inc 15,834,584.87 475,037.55 74,032,613.97 2,220,978.42
ALSTOM Boiler
Accounts receivable 138,538.90 8,312.33 128,017.09 7,681.03
Deutschland GmbH
Accounts receivable ALSTOM Estonia AS 6,508,665.06 195,259.95
ALSTOM Technical
Accounts advanced paid to
Services (Shanghai) 13,260,000.00 16,355,000.00
suppliers
Co., Ltd.
Wuhan Boiler Group
Other accounts receivable 64,030,488.11 12,895,907.62 64,030,488.11 12,895,907.62
Engineering Ltd.
Wuhan Boiler Group
Other accounts receivable 240,571.49 48,114.30 240,571.49 48,114.30
Valve Co., Ltd.
Wuhan Boiler Group
Other accounts receivable 10,171.01 2,034.20 10,171.01 2,034.20
Express Co., Ltd.
ALSTOM Boiler
Other accounts receivable 1,683,519.41 50,505.58 1,314,304.59 39,429.14
France
ALSTOM
Other accounts receivable 151,200.00 4,536.00 568,373.05 17,051.19
(Switzerland) Ltd
ALSTOM Boiler
Other accounts receivable 3,495,561.42 104,866.84 3,558,987.14 106,769.61
Deutschland GmbH
ALSTOM (China)
Other accounts receivable 19,442.60 583.28 3,200,336.47 190,807.11
Investment Co., Ltd.
ALSTOM (Wuhan)
Other accounts receivable Engineering 483,612.65 14,508.38 1,250,711.46 37,521.34
Technology Co., Ltd.
Other accounts receivable ALSTOM Power Inc. 36,157.65 1,084.73 36,157.65 1,084.73
Amount due to related parties
Unit: RMB yuan
Name Related party Closing balance Opening balance
Wuhan Boiler Group Express
Accounts payable 17,440.01 17,440.01
Co., Ltd.
Accounts payable Wuhan Boiler Group Valve
465,360.26 432,528.34
Co., Ltd.
Accounts payable Wuhan Boiler Group
Engineering Technology Co., 19,125,755.73 19,125,755.73
Ltd.
Accounts payable ALSTOM Technical Services
8,027,000.00 4,767,000.00
(Shanghai) Co., Ltd.
Accounts payable TSI Integrated DE Mannheim 1,040,641.06 1,030,026.87
Accounts payable ALSTOM (China) Investment
0.00 852,425.05
Co., Ltd.
Accounts payable ALSTOM Power Inc 488,787.14 488,787.14
Accounts payable ALSTOM s.r.o 11,759.71 11,759.71
Accounts payable ALSTOM (Switzerland) Ltd 204,411.74 20,215.17
Accounts payable ALSTOM Power Energy 10,614.19 29,970.10
Accounts payable ALSTOM Power Service
0.00 84,159.34
GmbH
Accounts payable ALSTOM (Wuhan)
Engineering Technology Co., 100,000.00 0.00
Ltd.
Other accounts payable Wuhan Boiler Group Co., Ltd. 974,056.13 974,056.13
ALSTOM (China) Investment
Other accounts payable 1,615,620.23 1,438,206.83
Co., Ltd.
Other accounts payable ALSTOM IS&T SAS 1,139,454.70 9,487,835.67
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2013 Interim Report of Wuhan Boiler Company Limited
Other accounts payable ALSTOM (Switzerland) Ltd 718,145.72 2,756,251.11
Other accounts payable ALSTOM Power Ltd 87,948.88 87,948.88
Other accounts payable ALSTOM Holdings France 15,066.97 0.00
Accounts advanced from customers ALSTOM Estonia AS 4,304,993.99 0.00
ALSTOM Boiler Deutschland
Accounts advanced from customers 108,751,137.50 344,703,704.47
GmbH
Accounts advanced from customers ALSTOM Power Inc. 192,204,622.87 374,284,067.80
.
X. 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
None
XI. Commitments
1. Significant commitments
1. As of 30th Jun. 2013, the money promised to be paid for the construction of the long-term asset which
the company had signed but not reflected in the financial statement is RMB 1,167,121.00, USD157,085.00,
and Euro 15,071.50.
2. As of 30th Jun. 2013, the performance bond, tender bond, payment guarantee and U.S dollar guarantee
issued by the Company, which remained unexpired, separately amounted to RMB39,104,860.00,
RMB9,800,000.00, RMB11,856,105.50 and USD3,126,923.00.
2. The situation of the performance of the commitment during the prior period
1. In the first half of 2013 the company had paid RMB1,558,597.78 for the performance of the
commitment for the construction of the long-term asset.
2. In the first half of 2013 the performance guarantee RMB7,800,000, the tender guarantee
RMB11,000,000 and the payment guarantee RMB12,156,105.50 had been released after all the
performance of the contract.
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2013 Interim Report of Wuhan Boiler Company Limited
XII. Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
None
2. Notes of profit distribution after Balance Sheet Date
None
3. Notes of other events after Balance Sheet Date
None
XIII. Notes of other significant events
1. Exchange of non-monetary assets
None
2. Debt reorganization
None
3. Enterprises combination
None
4. Lease
None
5. Closing financial instruments that externally published and able to convert into shares
None
6. Assets and liabilities measured by fair value
None
7. Foreign financial assets and financial liability
None
8. Main content of the pension plans and significant changes
None
9. Other
As of Jun, 30, 2013, the Company did not have any other significant events which affected the reading and
understanding of this financial statement.
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2013 Interim Report of Wuhan Boiler Company Limited
XIV. Notes of financial statements of parent company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB yuan
Closing balance Open balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Accounts receivable that
is individually significant 15.94
52,923,300.00 34,820,000.00 65.79% 52,923,300.00 12.83% 34,820,000.00 65.79%
and provisions for bad %
debts individually
Accounts receivable that provisions for bad debt by group
Accounts receivable that
68.68
provisions for bad debt by 227,986,068.48 103,185,963.43 45.26% 299,694,375.84 72.67% 108,332,307.06 36.15%
%
aging
68.68
Subtotal of group 227,986,068.48 103,185,963.43 45.26% 299,694,375.84 72.67% 108,332,307.06 36.15%
%
Accounts receivable that
is individually
15.37
insignificant but 51,034,460.00 31,186,060.00 61.11% 59,807,906.10 14.5% 39,359,506.10 65.81%
%
provisions for bad debts
individually
Total 331,943,828.48 -- 169,192,023.43 -- 412,425,581.94 -- 182,511,813.16 --
Notes of category:
Closing accounts receivable that is individually significant and provisions for bad debts individually:
√Applicable □Inapplicable
Unit: RMB yuan
Withdrawal
Accounts payable Book value Bad debt provision Reason
proportion (%)
Quality problems,
Guodian Lanzhou Thermal Power
28,103,300.00 10,000,000.00 35.58% difficult to recover
Company Limited
money
Quality problems,
East Hope Baotou Rare Earth Aluminum
24,820,000.00 24,820,000.00 100% difficult to recover
Company Limited
money
Total 52,923,300.00 34,820,000.00 -- --
In the group, accounts receivable that provision for bad debts by aging analysis:
√Applicable □Inapplicable
Unit: RMB yuan
Closing amount Opening amount
Book value Book value
Aging
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
(Including 1 41,992,388.89 18.42% 1,259,771.67 137,976,383.04 46.04% 4,139,291.49
year)
Subtotal of
41,992,388.89 18.42% 1,259,771.67 137,976,383.04 46.04% 4,139,291.49
within 1 year
1 to 2 years 37,903,495.98 16.63% 1,137,104.88 38,838,495.98 12.96% 1,165,154.88
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2013 Interim Report of Wuhan Boiler Company Limited
2 to 3 years 30,992,838.90 13.59% 1,859,570.33 241,117.09 0.08% 14,467.03
3 to 4 years 15,568,242.52 6.83% 3,113,647.46 15,568,237.30 5.19% 3,113,647.46
4 to 5 years 7,141,541.38 3.13% 1,428,308.28 8,962,995.28 2.99% 1,792,599.06
Over 5 years 94,387,560.81 41.4% 94,387,560.81 98,107,147.15 32.74% 98,107,147.15
Total 227,986,068.48 -- 103,185,963.43 299,694,375.84 -- 108,332,307.06
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
Closing accounts receivable that is individually insignificant but provisions for bad debts individually:
√Applicable □Inapplicable
Unit: RMB yuan
Withdrawal proportion
Accounts payable Book value Bad debt provision Reason
(%)
Datang Liaoyuan Power Equipment quality
18,890,000.00 4,800,000.00 25.41%
Plant deduction
Shanxi Datang
International Yungang Equipment quality
18,612,000.00 12,853,600.00 69.06%
Thermal Power deduction
Company Limited
Shanxi Datang West Equipment quality issues,
Solid Thermal Power 12,952,460.00 12,952,460.00 100% and the retention is
Company Limited difficult to recover
Gansu Diantou Jinchang
Difficult to fully recover
Electric Power 580,000.00 580,000.00 100%
retentions
Investment Co., Ltd.
Total 51,034,460.00 31,186,060.00 -- --
(2) Information of accounts receivable reversed or recovered in the 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
Management took
measures to strengthen
Shuangyashan Cogeneration
the collection and Aging over 5 years 1,380,000.00 1,380,000.00
Co., Ltd.
increase collection
efforts
Management took
Xinjiang Huadian Changji measures to strengthen
No.2 limited liability the collection and Aging over 5 years 500,000.00 500,000.00
company increase collection
efforts.
Management took
measures to strengthen
Shanxi Lu ’an Yuwu Thermal
the collection and Aging over 5 years 1,050,000.00 1,050,000.00
Power Company Limited
increase collection
efforts.
Management took
Xinxiang Henan New Power measures to strengthen
Generation Company the collection and Aging over 5 years 349,996.70 349,996.70
Limited increase collection
efforts.
Zhengzhou Gas Power Management took Aging over 5 years 2,547,589.64 2,547,589.64
Generation Co., Ltd. measures to strengthen
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2013 Interim Report of Wuhan Boiler Company Limited
the collection and
increase collection
efforts
Total -- -- 5,827,586.34 --
(3) Information of accounts receivable that written off in the report period
None
(4) Information of shareholders with more than 5% (including 5%) of the voting shares of the
Company in account receivable in report period
None
(5) Nature or details of other significant accounts receivable
None
(6) Information of top five
Unit: RMB yuan
Name of company Relationship Amount Term Proportion (%)
Amount of 1 to 2 years is
Guodian Preparatory
30,854,300.00, amount
Office of Xi'an Thermal Non-related party 61,708,600.00 18.59%
of 2 to 3 years is
Power Project
30,854,300.00
Shanxi Zhenxing Group
Non-related party 39,820,000.00 Over 5 years 12%
Co., Ltd.
Guodian Lanzhou
Thermal Power Non-related party 28,103,300.00 1 to 2 years 8.47%
Company Limited
East Hope Baotou Rare
Earth Aluminum Non-related party 24,820,000.00 4 to 5 years 7.48%
Company Limited
Amount within 1 year is
Chiping Xinyuan
Non-related party 21,057,000.00 7,019,000, amount of 1 6.34%
Aluminum Co., Ltd.
to 2 years is 14,038,000
Total -- 175,508,900.00 -- 52.88%
(7) Information of related parties accounts receivable
Unit: RMB yuan
Name of company Relationship Amount Proportion (%)
Wuhan Boiler Group
The second largest shareholder
Engineering Technology Co., 4,854,995.28 1.46%
of subsidiaries
Ltd.
ALSTOM Boiler Deutschland Subsidiary of the Company’s
138,538.90 0.04%
GmbH ultimate controller
Subsidiary of the Company’s
ALSTOM Power Inc. 15,834,584.87 4.77%
ultimate controller
Total -- 20,828,119.05 6.27%
(8) Amount of receivables transferred but not in compliance with conditions of termination
recognition was RMB0.00.
(9) If securitization is carried out on accounts receivable as the underlying asset, please brief on the
arrangement of relevant transactions.
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2013 Interim Report of Wuhan Boiler Company Limited
None
2. Other accounts payable
）））） （（（（
1 Other accounts payable
Unit: RMB yuan
Closing balance Opening balance
Provision for bad
Book balance Provision for bad debts Book balance
debts
Category
Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
(%) (%) (%) (%)
Other accounts receivable
that is individually 21.23 19.73
26,673,222.30 26,673,222.30 100% 26,673,222.30 26,673,222.30 100%
significant and provisions % %
for bad debts individually
Other accounts receivable that provisions for bad debts by group
Other accounts receivable
18.57 63.47 18.05
that provisions for bad debts 82,657,096.96 65.8% 15,348,304.14 85,983,948.17 15,523,661.71
% % %
by aging
Accounts receivables not
withdrew for bad debts 13,945,002.39 11.1% 20,183,391.30 14.9%
provision
76.91 15.89 78.37 14.62
Subtotal of group 96,602,099.35 15,348,304.14 106,167,339.47 15,523,661.71
% % % %
Other accounts receivable
that is individually
2,636,308.95 2.1% 2,636,308.95 100% 2,636,308.95 1.94% 2,636,308.95 100%
insignificant but provisions
for bad debts individually
Total 125,911,630.60 -- 44,657,835.39 -- 135,476,870.72 -- 44,833,192.96 --
Notes of category:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√Applicable □Inapplicable
Unit: RMB yuan
Amount of bad debts Withdrawal proportion
Other accounts payable Book balance Reason
provision (%)
Suspension of the
Shanxi Zhenxing Group
6,722,635.46 6,722,635.46 100% project, and is difficult to
Co., Ltd.
recover
Suspension of the
Shandong Luneng
19,950,586.84 19,950,586.84 100% project, and is difficult to
Material Group Co., Ltd.
recover
Total 26,673,222.30 26,673,222.30 -- --
In the group, other accounts receivable that provision for bad debts by aging analysis:
√Applicable □Inapplicable
Unit: RMB yuan
Closing amount Opening amount
Book balance Book balance
Aging
Proporti Bad debts provision Proporti Bad debts provision
Amount Amount
on (%) on (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1 year 4,276,885.45 5.19% 128,306.56 5,594,482.67 6.51% 167,834.48
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2013 Interim Report of Wuhan Boiler Company Limited
(Including 1
year)
Subtotal of
4,276,885.45 5.19% 128,306.56 5,594,482.67 6.51% 167,834.48
within 1 year
1 to 2 years 2,682,615.90 3.26% 80,478.48 2,173,469.52 2.53% 65,204.09
2 to 3 years 2,518,400.37 2.93% 151,104.02
3 to 4 years 54,102,803.27 65.65% 10,820,560.63 63,012,895.74 73.28% 12,602,579.15
4 to 5 years 21,594,792.34 26.21% 4,318,958.47 12,684,699.87 14.75% 2,536,939.97
Total 82,657,096.96 -- 15,348,304.14 85,983,948.17 -- 15,523,661.71
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
Unit: RMB yuan
Name of groups Book balance Bad debts provision
Accounts receivable which not withdrew of bad debts
13,945,002.39 0.00
provision
Total 13,945,002.39 0.00
Other closing accounts receivable that is individually insignificant but provisions for bad debts
individually:
√Applicable □Inapplicable
Unit: RMB yuan
Amount of bad debts Withdrawal proportion
Other accounts payable Book balance Reason
provision (%)
The other party has filed
3RC Company Limited 336,604.05 336,604.05 100%
for bankruptcy
Suspension of the
Yuanping Taiyue Power
424,514.70 424,514.70 100% project, and is difficult to
Development Co., Ltd.
recover
Henan Dengfeng Electric Suspension of the
Power Co., Ltd. 32,430.77 32,430.77 100% project, and is difficult to
Xiangyang recover
Suspension of the
Qingdao Houhai
518,227.71 518,227.71 100% project, and is difficult to
thermoelectric
recover
Suspension of the
Jiangsu Wanda Paper
723,504.31 723,504.31 100% project, and is difficult to
Co., Ltd.
recover
Suspension of the
Qingtongxia Aluminum
5,736.41 5,736.41 100% project, and is difficult to
Co., Ltd.
recover
Henan Zhongmai
Litigation costs, and is
Electric Power Co., Ltd. 173,411.00 173,411.00 100%
difficult to enforce
Mai
Sanmenxia Huineng
Litigation costs, and is
Thermal Power 143,897.00 143,897.00 100%
difficult to enforce
Company Limited
Shanxi Zhenxing Group Litigation costs, and is
277,983.00 277,983.00 100%
Co., Ltd. difficult to enforce
Total 2,636,308.95 2,636,308.95 -- --
(2) Information of other accounts receivable of reversed or recovered in report period
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2013 Interim Report of Wuhan Boiler Company Limited
None
(3) Information of written off other accounts receivable
None
(4) Information of shareholders with more than 5% (including 5%) of the voting shares of the
Company in other accounts receivable in report period
Unit: RMB yuan
Closing amount Opening amount
Name of company Provision for bad Provision for bad
Book balance Book balance
debts balance debts balance
Wuhan Boiler Group Co., Ltd. 64,030,488.11 12,895,907.62 64,030,488.11 12,895,907.62
ALSTOM (China) Investment Co.,
19,442.60 583.28 3,200,336.47 190,807.11
Ltd.
Total 64,049,930.71 12,896,490.90 67,230,824.58 13,086,714.73
(5) Nature or details of significant other accounts receivable
The second largest shareholder of the Company receivable-- Wuhan Boiler Group Co., Ltd. mainly is the
old factory relocation compensation, with the amount of RMB 64,030,488.11.
(6) Information of the top five
Unit: RMB yuan
Name of company Relationship Amount Term Proportion (%)
Wuhan Boiler Group Co., The second largest
64,030,488.11 4 to 5 years 50.85%
Ltd. shareholder
Shandong Luneng
Non-related party 25,659,390.26 3 to 4 years 20.38%
Material Group Co., Ltd.
Donghu Development
Non-related party 10,774,265.00 4 to 5 years 8.56%
Zone Government
Shanxi Zhenxing Group
Non-related party 6,722,635.47 Over 5 years 5.34%
Co., Ltd.
Subsidiary of the Within 1 year,
ALSTOM Boiler
Company’s ultimate 3,495,561.42 1,446,233.37, 1 to 2 2.78%
Deutschland GmbH
controller years, 2,049,328.05
Total -- 110,682,340.26 -- 87.91%
(7) Information of other account receivable
Unit: RMB yuan
Name of company Relationship Amount Proportion (%)
ALSTOM (China) Investment
Controlling shareholder 19,442.60 0.02%
Co., Ltd.
ALSTOM (Wuhan)
Subsidiary of the Company’s
Engineering Technology Co., 483,612.65 0.38%
ultimate controller
Ltd.
ALSTOM Boiler Deutschland Subsidiary of the Company’s
3,495,561.42 2.78%
GmbH ultimate controller
Subsidiary of the Company’s
ALSTOM (Switzerland) Ltd 151,200.00 0.12%
ultimate controller
Subsidiary of the Company’s
ALSTOM Power Inc. 36,157.65 0.03%
ultimate controller
Subsidiary of the Company’s
ALSTOM Boiler France 1,683,519.41 1.34%
ultimate controller
Wuhan Boiler Group Co., Ltd. The second largest shareholder 64,030,488.11 50.85%
Wuhan Boiler Group Express The subsidiary of the second 10,171.01 0.01%
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2013 Interim Report of Wuhan Boiler Company Limited
Co., Ltd. largest shareholder
Wuhan Boiler Group Valve The subsidiary of the second
240,571.49 0.19%
Co., Ltd. largest shareholder
Lanxiang Company Subsidiary 301,896.97 0.24%
Total -- 70,452,621.31 55.96%
(8)Amount of receivables transferred but not in compliance with conditions of termination
recognition was RMB0.00
(9) If securitization is carried out with underlying of other accounts receivable, please brief on
arrangement of relevant transactions.
None
3. Long-term equity investments
Unit: RMB yuan
Explanati
ons on
difference Withdraw
s between al of
Sharehold Voting sharehold Provision provision Cash
Accounti Initial
Opening Increase/ Closing ing right ing for for bonus in
Company ng investmen
balance decrease balance Proportio Proportio proportio impairme impairme report
method t cost
n n n and nt loss nt loss in period
voting report
right period
proportio
n
Wuhan
Lan
Xiang
Power
Environ
mental
Cost 14,000,00 24,984,50 24,984,50
Protecti method 0.00 0.00 0.00
95% 95%
on
Technol
ogy
Compan
y
Limited
Total -- -- -- --
Notes:
Wuhan Lan Xiang Power Environmental Protection Technology Company Limited. had suspended all the daily operating
activities, and the Company is in the liquidation process.
4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB yuan
Item 2013 Jan-Jun 2012 Jan-Jun
Main business sales 459,095,994.70 359,625,071.80
Other operating income 3,185,112.05 16,952,630.50
Total 462,281,106.75 376,577,702.30
Cost of sales 449,540,053.90 345,842,634.98
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2013 Interim Report of Wuhan Boiler Company Limited
(2) Main business (Classified by industry)
Unit: RMB yuan
2013 Jan-Jun 2012 Jan-Jun
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Boiler industry 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
Total 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
(3) Main business (Classified by product)
Unit: RMB yuan
2013 Jan-Jun 2012 Jan-Jun
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Boiler and accessories sales 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
Total 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
(4) Main business (Classified by area)
Unit: RMB yuan
2013 Jan-Jun 2012 Jan-Jun
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Domestic sales 107,191,166.56 124,808,687.05 90,248,828.49 89,513,240.29
Foreign sales 351,904,828.14 322,841,719.14 269,376,243.31 239,228,665.07
Total 459,095,994.70 447,650,406.19 359,625,071.80 328,741,905.36
(5) The revenue of sales from the top five customers
Unit: RMB yuan
Main business revenue Proportion of total
Customer
business revenue (%)
Customers under same control of ALSTOM 351,369,022.58 76.01%
Binzhou Beihai New Materials Co., Ltd. 95,816,717.96 20.73%
Gansu Diantou Yongchang Generating Co.,Ltd 8,797,321.45 1.9%
Guodian Taian thermoelectric Co.,Ltd 1,070,457.51 0.23%
Guodian xian thermoelectric project preparatory office 1,052,365.18 0.23%
Total 458,105,884.68 99.1%
5. Supplemental information of Cash Flow Statement
Unit: RMB yuan
Supplemental information 2013 Jan-Jun 2012 Jan-Jun
1. Reconciliation of net profit to net cash flows generated from
-- --
operations：
Net profit -36,286,548.80 -33,156,101.72
Add: Provision for assets impairments -18,470,683.77 -166,643,276.90
Depreciation of fixed assets, oil-gas assets and productive
20,037,873.38 21,226,963.46
biological assets
Amortization of intangible assets 3,294,227.40 4,043,804.01
Losses/gains on disposal of property, intangible asset and other
long-term assets (gains: negative)
Losses/gains on scrapped of fixed assets (gains: negative) -333,430.15 -7,286.49
Losses/gains from variation of fair value (gains: negative) 2,547,295.46 -2,850,685.36
Financial cost (income: negative) 40,202,887.55 56,377,660.64
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2013 Interim Report of Wuhan Boiler Company Limited
Investment loss (gains: negative) 14,249,787.13
Decrease in deferred tax assets (increase: negative) 3,103,374.39 27,679,554.95
Increase in deferred tax liabilities (decrease: negative)
Decrease in inventory (increase: negative) 38,828,506.15 348,062,728.44
Decrease in accounts receivable from operating activities (increase:
159,930,334.83 148,016,778.20
negative)
Increase in accounts payable from operating activities (decrease:
-462,071,842.09 -389,760,796.02
negative)
Net cash flows generated from operating activities -249,218,005.65 27,239,130.34
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
Less: opening balance of cash 15,125,771.63 17,508,056.74
Plus: closing balance of cash equivalent 129,536,056.34 18,949,394.34
The net increase in cash and cash equivalents -114,410,284.71 -1,441,337.60
XV. Supplemental information
1. Notes of non-recurrent profit and loss in report period
Unit: RMB yuan
Item Amount Notes
Loss and gains on disposal of non-current assets (Including Gains and losses on disposal of
333,430.15
write-off part of the provision for asset impairment) scrapped fixed assets
Tax rebates and cuts of ultra vires approval or without formal
approval
City Finance Bureau ’s one
Governmental subsidy included in the current profits and losses(is business one policy incentives in
closely related with the business event, except for the 2012 and the relevant deferred
538,888.00
governmental subsidy that according to the national unity incomes of the land use right in
the new factory zone of the
standard quota or the quantitative regal assets) Company
Income and expenses of the other operation except for the Indemnity from supplier for
1,972,114.39
mentioned above product quality issue
Total 2,844,432.54 --
According to the company's "public offering of securities of the Company Disclosure Explanatory Notice
No. 1 - non-recurring loss" definition for non-recurring items, as well as the "public offering of securities
of the Company Disclosure Explanatory Notice No. 1 - - non-recurring items "listed in non-recurring items
defined as recurring items, should explain the reasons
□Applicable √ Inapplicable
2. Accounting data differences according to the domestic and foreign accounting standards
(1) Different situations of the net profits and net assets in the financial disclosure reports in accordan
ce with the international accounting standards and Chinese accounting standards at the same time
Unit: RMB yuan
Net profits belongs to the shareholders of the listed Net assets belongs to the shareholders of the
companies listed companies
Current period amount Last period amount Closing balance Opening balance
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2013 Interim Report of Wuhan Boiler Company Limited
According to Chinese
-36,438,887.02 -24,383,589.49 -1,279,658,424.99 -1,243,219,537.97
accounting standards
Items and amounts adjusted in accordance with international accounting standards
(2) Different situations of the net profits and net assets in the financial disclosure reports in
accordance with the international accounting standards and Chinese accounting standards at the
same time
Unit: RMB yuan
Net profits belongs to the shareholders of the listed Net assets belongs to the shareholders of the
companies listed companies
Current period amount Last period amount Closing balance Opening balance
According to Chinese
-36,438,887.02 -24,383,589.49 -1,279,658,424.99 -1,243,219,537.97
accounting standards
Items and amounts adjusted in accordance with foreign accounting standards
(3) Notes of the reasons of the differences between the accounting data according to the domestic
and foreign accounting standards
Inapplicable
3. Return on equity and earnings per share
Unit: RMB yuan
The weighted average ROE EPS
Profit in the report period
(%) Basic EPS Diluted EPS
Net profit attributable to the Company's
-2.9% -0.12 -0.12
common stock shareholders
Net profit attributable to shareholders of the
Company's common stock after deducting -3.1% -0.13 -0.13
non-recurring gains and losses
4. Particulars on the abnormal conditions of main items in the financial statements of the Company
and relevant reasons.
Unit: RMB yuan
Change
Balance sheet item Closing balance Opening balance Reason
rate
Mainly due to refund to customers caused by changes
Monetary capital 18,515,082.56 133,682,569.38 -86.15%
in project scope
Mainly due to the transfer of the goods payment of the
Notes receivable 2,000,000.00 16,778,857.08 -88.08%
supplier through endorsement
Mainly due to the settlement of prepayments upon receipt
Prepayments 62,671,653.33 117,776,137.51 -46.79%
of suppliers’ invoices
Construction in progr
2,084,089.93 1,562,224.98 33.41% Mainly due to the equipment procurement
ess
Other non recurring Mainly due to the reduction in the gain arising from
0.00 9,810,557.57 -100.00%
assets unsettled foreign forward exchange contract
Mainly due to the increase in the payment of the
Notes payable 94,800,000.00 42,532,000.00 122.89%
acceptance bill
Accounts payable 153,910,402.64 285,438,535.15 -46.08% Mainly due to payment to suppliers
Advance from Mainly due to settlement of contract payment on
406,376,839.91 796,939,508.66 -49.01%
customers contraction contract in progress
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2013 Interim Report of Wuhan Boiler Company Limited
Interest payable 3,542,575.34 2,442,575.34 45.03% Mainly due to the increase in the credit loan
Other non-recurring Mainly due to the reduction in the loss arising from
6,510,913.06 12,640,416.40 -48.49%
liabilities unsettled foreign forward contracts
Change
P&L item Closing balance Opening balance Reason
rate
Business tax and s Mainly due to no taxable service took place in the report
1,130.00 -100.00%
urcharges period
Mainly due to the increase in the volume of projects
Selling expenses 6,460,847.20 3,748,312.10 72.37%
tendered during report period
Administration
13,059,491.70 9,044,200.97 44.40% Mainly due to the increase in the insurance expenses
expenses
Mainly due to the reversal of the dad-debt provision for
Assets impairment
-13,338,811.64 -36,891,628.28 -63.84% the speed-up of collection process as well as the recovery
loss of the receivable in report period.
Changes in fair va Mainly due to the loss arising from the hedging
-2,547,295.46 2,850,685.36 -189.36%
lue of net income instrument and hedged items
Non-operating Mainly due to the Indemnity from supplier for product
2,913,166.75 1,420,624.61 105.06%
income quality issue increased in the report period
Mainly due to the increase in the losses from the disposal
Non-operating cost 68,734.21 9,786.32 602.35%
of the obsolete assets in the report period
Mainly due to the narrowing of the temporary deductible
Taxes income expe
3,103,374.39 27,679,554.95 -88.79% differences resulted from the reversal of the previous
nses annual bad-debt provision for the collection
Change
Cash flow item Closing balance Opening balance Reason
rate
Net cash flow Mainly due to the return of the advance receipt resulted
generated from -249,198,005.65 27,329,130.34 -1011.84% from the change of the supply scope of the project
operating activities contract in the report period
Net cash flow
generated from Mainly due to the reduction of the cash paid for the
-1,557,553.65 -16,492,875.47 -90.56%
investment construction of a plant asset in the report period
activities
Net cash flow
Mainly due to the increase in the cash received from the
generated from 133,805,900.00 -8,476,945.50 -1678.47%
loans
financing activities
The influence of th
e changes of rate 2,562,069.04 -3,707,261.45 -169.11% Mainly due to the influences of the rate changes
on cash
103
2013 Interim Report of Wuhan Boiler Company Limited
Section IX Documents Available for Reference
I. 2013 Interim Report with the signature of Legal Representative.
II. Financial statements with signatures and seals of Company Principal, Accounting Principal and
Accounting Division’s Principal.
III. Originals of all documents and announcements of the Company disclosed in the report period on the
website designated by CSRC.
104
