2014 Interim Report of Wuhan Boiler Company Limited
Wuhan Boiler Company Limited
2014 Interim Report
2014-075
(Updated)
September 2014
1
2014 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.
All Board Directors attended the Board Meeting for reviewing this Report.
The Company didn’t plan 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, the 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.
1. Because the audited net profits and closing net assets for three consecutive accounting years of 2011, 2012 and
2013 are negative, Shenzhen Stock Exchange has decided to suspend the listing of the Company’s stock starting
from May 16, 2014 according to Article 14.1.1 and 14.1.2 of the Stock Listing Rules of Shenzhen Stock
Exchange.
2. The Second Extraordinary Shareholders’ Meeting 2014 was held on May 23, 2014. The Debt-to-equity
Conversion Plan was vetoed by the meeting. It is difficult for the Company to find other solutions to turn its net
asset value from negative to positive by the end of 2014. Meantime, the Company has reminded the risks in the
Debt-to-equity Conversion Plan as follows: if the Plan cannot be completed before the first half year of 2014,
financial costs arising from the relevant debts would create a significant burden on the financial result of the
Company in the year of 2014, and it will be fairly difficult for the Company to have a positive net profit, whether
before or after deducting non-recurring profits/loss, and the Company’s stock will also be facing the risk of
delisting.
3. In order to satisfy the criteria for resuming the listing of the Company’s stocks, pursuant to the Stocks Listing
Rules of Shenzhen Stock Exchange (revised version 2012), the Company’s financial data in the year of 2014 shall
satisfy, at least both of the below criteria: (i) net asset value as of the end of fiscal period shall be positive; and (ii)
net profit shall be positive before and after deducting non-recurring profit and loss.
In the report period, the net profit attributable to shareholders of the Company was 8,214,639.10, and the net
assets attributable to shareholders of the Company were -1,355,276,203.03. If the Company fails to meet the
requirements for listing resumption, the stock of the Company will be delisted. The Board of Directors hereby
reminds investors of investment risks.
4. Currently, following the action plan formulated by the Board of Directors for listing resumption, the Company
enhances internal management, strictly controls costs and focuses on production for overseas orders and tendering
of domestic orders.
5. Securities Times, Ta Kung Pao and www.cninfo.com.cn are designated by the Company as information
disclosure media. All information of the Company shall be subject to the disclosure of the Company on the said
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2014 Interim Report of Wuhan Boiler Company Limited
media. During listing suspension, in strict compliance with the Company Law, the Securities Law and the Stock
Listing Rules of Shenzhen Stock Exchange, the Company will fulfill its duty of information disclosure and
disclose the actions taken for listing resumption and relevant progress on a monthly basis in time.
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2014 Interim Report of Wuhan Boiler Company Limited
Contents
2014 Interim Report........................................................................................................................... 1
Section I Important Notes, Contents & Definition.......................................................................... 2
Section II Company Profile ............................................................................................................... 6
Section III Summary of Accounting Data and Financial Indexes ................................................. 8
Section IV Report of the Board of Directors ................................................................................. 10
Section V Significant Events ........................................................................................................... 19
Section VI Changes in Shares and Particulars about Shareholders ........................................... 34
Section VII Preferred Shares .......................................................................................................... 38
Section VIII Particulars about Directors, Supervisors and Senior Management ...................... 39
Section IX Financial Report ............................................................................................................ 40
Section X Documents Available for Reference ............................................................................ 142
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2014 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 (a France-listed company)
Alstom Holdings Refers to Alstom Holdings
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, 2014- Jun. 30, 2014
Yuan, Thousand Yuan, Million Yuan, Refers to RMB Yuan, RMB Thousand Yuan, RMB Million Yuan, RMB Billion
Billion Yuan Yuan
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2014 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 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 Xu Youlan Hou Li
No. 1, Liufangyuan Road, East Lake New No. 1, Liufangyuan Road, East Lake New
Contact address
Technology Development Zone, Wuhan, Hubei Technology Development Zone, Wuhan, Hubei
Tel. 027 81993700
） （ 027 81994270
） （
Fax 027 81993701
） （ 027 81993701
） （
E-mail youlan.xu@power.alstom.com li.hou@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 2013 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?
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2014 Interim Report of Wuhan Boiler Company Limited
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 2013 Annual Report.
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 2013
Annual Report.
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2014 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
Report period Same period of last year Year-on-year change
Operating revenues (RMB Yuan) 496,898,159.52 462,281,106.75 7.49%
Net profit attributable to shareholders of
8,214,639.10 -36,438,887.02 122.54%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after deducting non-recurring 7,868,973.11 -39,283,319.56 120.03%
gains and losses (RMB Yuan)
Net cash flows from operating activities
151,310,124.28 -249,198,005.65 160.72%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.03 -0.12 125.00%
Diluted EPS (RMB Yuan/share) 0.03 -0.12 125.00%
As at the end of the report
As at the end of last year Change
period
Total assets (RMB Yuan) 1,263,659,174.36 1,339,647,873.78 -5.67%
Net assets attributable to shareholders of
-1,355,276,203.03 -1,363,490,842.13 0.60%
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
√Applicable Inapplicable
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
8,214,639.10 -36,438,887.02 -1,355,276,203.03 -1,363,490,842.13
accounting standards
Items and amounts adjusted according to international accounting standards
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2014 Interim Report of Wuhan Boiler Company Limited
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
√Applicable Inapplicable
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
8,214,639.10 -36,438,887.02 -1,355,276,203.03 -1,363,490,842.13
accounting standards
Items and amounts adjusted according to overseas accounting standards
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
√Applicable Inapplicable
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the
59,767.52 Gain/losses on asset disposal
offset part of asset impairment provisions)
Government grants recognized in the current period, except for DHDZ Finance Bureau’s Industrial
those acquired in the ordinary course of business or granted at Rapid Growth contribution award
288,888.00
certain quotas or amounts according to the country’s unified in 2013 and deferred revenue
standards related to new factory land use right
Other non-operating income and expenses other than the above -2,989.53 Others
Total 345,665.99 --
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
The Company didn’t classify any non-recurring gain/loss item mentioned in the Explanatory Announcement No. 1
on Information Disclosure for Public Listed Companies – Non-recurring Gains and Losses as a recurrent gain/loss
item.
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2014 Interim Report of Wuhan Boiler Company Limited
Section IV Report of the Board of Directors
I. Overview
Trends in the power industry in 2014 are to vigorously develop clean energy, proactively develop hydro power,
develop wind power in an orderly way, speed up development of solar power, proactively push forward
development of bio-mass energy and geothermal energy, safely and efficiently develop nuclear power, and
properly launch key nuclear power projects. In order to accelerate development of clean energy, 2014 will see the
approval of new hydro power of 20 million KW, new wind power of 18 million KW and new PV of 14 million
KW, all of which will take up 60% of the total new capacity in a dispersed way. And feed-in tariffs for new energy
will be reduced gradually. Feed-in tariffs for new energy such as solar power and wind power are expected to be at
the same level with thermal power by 2020.
Alstom in France, the controller of the Company’s controlling shareholder Alstom (China) Investment Co., Ltd.,
owns the world-advanced AGVTM rail transport technology and provides integrated power plant solutions
covering a variety of energy sources, including coal, hydro, natural gas, nuclear and wind. With Alstom as a
platform, the Company will continue looking for opportunities to move up to a new level of development. In the
report period, the Management and all employees of the Company dedicated to the following five priorities set at
the beginning of 2014:
1. 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.
2. The Company dedicated to expand its share in domestic market, capture export orders, improve its market
position and increase the export ratio.
3. 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.
4. The Company continued to provide 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 different orders.
5. The Company continued to improve its competitiveness in the markets, create favorable business models, and
use its advanced technologies and strong manufacturing capacity to provide high quality products to customers.
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 496,898,159.52,
increased by 7.49% over the same period of last year; operating profit was RMB 8,021,254.83, increased by
122.17% as compared to same period of last year; and net profit attributable to shareholders of the Company was
RMB 8,214,639.10, increased by 122.54% over the same period of last year.
II. Main business analysis
Year-on-year changes in major financial data:
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2014 Interim Report of Wuhan Boiler Company Limited
Unit: RMB Yuan
Same period of
Report period YOY change Main reasons for change
last year
Mainly due to the increase of material inputting
Operating revenues 496,898,159.52 462,281,106.75 7.49% forYanbu, Binzhou Beihai, Tanjung Bin projects
and contract revenue increase accordingly
Mainly due to the processing of Yanbu, Binzhou
Operating costs 432,828,651.37 449,540,053.90 -3.72% Beihai, Tanjung Bin projects this period and the
settle of Perawang project to release the cost.
Mainly due to tender department expense
Selling expenses 7,661,970.06 6,460,847.20 18.59%
increase for more tender projects
Administrative
13,225,649.54 13,059,491.70 1.27%
expenses
Financial expenses 45,534,113.65 40,200,193.10 13.27% Mainly due to loan interest increase this period
Mainly due to the decrease of reduction of the
Income tax expenses 174,961.83 3,103,374.39 -94.36% temporary deductible differences resulted from
contract loss provision release
Mainly due to the return of the advance receipt
Net cash flows from
151,310,124.28 -249,198,005.65 160.72% resulted from the change of the supply scope of
operating activities
the project contract in the prior period
Net cash flows from Mainly due to the increase of cash out paid for
-2,919,453.86 -1,557,553.65 -87.44%
investing activities the construction of new plant.
Net cash flows from Mainly due to the increase in return of entrusted
-135,307,976.66 133,805,900.00 -201.12%
financing activities loans
Net increase in cash Mainly due to the changes of net cash flows from
13,617,263.38 -114,387,590.26 111.90%
and cash equivalents operating and financing activities
Major changes to the profit structure or sources of the Company during the report period:
Applicable √ Inapplicable
There is no major change 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
Review the progress of the previously disclosed business plan in the report period:
In the first half of 2014, the Company actively explored the domestic market and signed Luo Yuan Contract. With
the help of Alstom platform, the Company signed two overseas orders, Altamira and Opole. Meantime, the
Company successfully closed Perawang project in Indonesia. In 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 delivery.
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2014 Interim Report of Wuhan Boiler Company Limited
III. Breakdown of main business
Unit: RMB Yuan
Increase/decrease
Increase/decrease Increase/decrease
of operating
Operating of operating costs of gross profit
Operating costs Gross profit rate revenues over the
revenues over the same rate over the same
same period of
period of last year period of last year
last year
Classified by industry:
Manufacturing 494,874,319.77 432,556,617.39 12.59% 7.79% -3.37% 10.10%
Total 494,874,319.77 432,556,617.39 12.59% 7.79% -3.37% 10.10%
Classified by product:
Boilers and
494,874,319.77 432,556,617.39 12.59% 7.79% -3.37% 10.10%
auxiliary
Total 494,874,319.77 432,556,617.39 12.59% 7.79% -3.37% 10.10%
Classified by region:
Domestic 120,942,552.42 136,461,886.76 -12.83% 12.83% 9.34% 3.61%
Overseas 373,931,767.35 296,094,730.63 20.82% 6.26% -8.28% 12.56%
Total 494,874,319.77 432,556,617.39 12.59% 7.79% -3.37% 10.10%
Note: The main reasons of margin rate increase in the report period are due to:
(1) Revenue of main business in the report period is 494,874.32KRMB, increased 7.79% from the same period
last year, mainly due to the increase of material inputting for Yanbu, Binzhou Beihai, Tanjung Bin projects
and contract revenue increased accordingly;
(2) Cost of main business in the report period is 432,556.62KRMB, decreased 3.37% from the same period last
year, mainly due to the execution of Yanbu, Binzhou Beihai, Tanjung Bin projects this period and the
settlement of Perawang project to release the cost.
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.
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2014 Interim Report of Wuhan Boiler Company Limited
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
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
The Company did not invest in any external party in the report period.
）））） （（（（
2 Shareholdings in financial enterprises
Applicable √ Inapplicable
The Company did not hold any equity in any financial enterprise in the report period.
）））） （（（（
3 Securities investments
Applicable √ Inapplicable
The Company did not invest in any securities in the report period.
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2014 Interim Report of Wuhan Boiler Company Limited
2. Entrusted financial management, derivative investments and entrusted loans
）））） （（（（
1 Entrusted financial management
Applicable √ Inapplicable
The Company did not make any wealth management entrustment in the report period.
）））） （（（（
2 Derivative investments
√ Applicable Inapplicable
Unit: RMB Ten thousand
Proportion
of the
closing
Related Actual
Type of Initial Opening Impairment Closing investment
party Beginning Ending gain/loss
Operator Relation derivative investment investment provision investment amount in
transaction date date in report
investment amount amount (if any) amount the
or not period
Company’s
closing net
assets (%)
Forward
Non- 2015-
HSBC No FX 7,065.38 2013-8-27 7,065.38 22,697.67 16.76% 44.69
Relation 12-30
contract
Forward
Non- 2014-7
SCB No FX 2,020.17 2014-3-27 2,020.17 79.82 0.06% -18.42
Relation -2
contract
Total 9,085.55 -- -- 9,085.55 22,777.49 16.82% 26.27
Capital source for derivative investment Self-funded
Any litigation involved None
Disclosure date of the board
announcement approving the derivative April 29, 2014
investment (if any)
Disclosure date of the Shareholders’
Meeting announcement approving the NA
derivative investment (if any)
In order to satisfy needs arising from business development and avoid risk concerning
Analysis on risks and control measures of exchange rates, the Company signed forward FX contracts with HSBC, SCB, BNP, etc.
derivative products held in the report respectively.
period (including but not limited to market For exchange rate fluctuations risk, the company and banks do collaborative exchange
risk, liquidity risk, credit risk, operation rate trend forecasts, closely track changes in exchange rates, changes in market conditions
risk, law risk, etc.) to implement dynamic management; For liquidity risk, foreign exchange hedging
operations carried out by the company are based on the Company's estimated foreign
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2014 Interim Report of Wuhan Boiler Company Limited
exchange payments and collection of trade, because the foreign exchange hedging
operations match with the actual foreign exchange trade, so this can ensure sufficient fund
for settlement at delivery time, there is less affected on the liquidation of the company’s
current assets; For operational risk, the Company developed a standardized operational
processes and authorization management systems, equipped with full-time staff and
strictly control their authority to conduct foreign exchange hedging operations; while
strengthening business related personnel training and professional ethics , and improving
quality of personnel, and the establishing anomalies timely reporting system to avoid the
occurrence of operational risk at the maximum; For credit risk, the Company's
counterparties of foreign exchange hedging are reputable business and the company has
established long-term business relationship with large commercial banks and foreign
banks, so, basically there is no performance risk; For legal risk, the Company conducted
foreign exchange hedging operations legally in accordance with relevant laws and
regulations and relevant transaction management practices, and signed a legal agreement
with the counterparties for clear and accurate terms to avoid possible legal disputes at the
maximum.
Changes of market prices or fair values in
The company recognized the gain and loss of fair values of the invested derivatives, the
the report period of the invested
fair values gain of the invested derivatives this period was 0.26MRMB, the calculation of
derivatives. And the analysis on the fair
fair values was based on the contract values and forward rate quote of end of this
value of the derivatives should include the
accounting period provided by the related business partners which was accordance with
specific use methods and the relevant
the expiry date of each forward contracts.
assumptions and parameters.
Whether significant changes occurred to
the Company’s accounting policy and
specific accounting principles of No major change
derivatives in the report period compared
to the previous report period
Independent Directors expressed independent opinions on 2014 Hedging Derivative
Investments Estimation as below: The foreign exchange trading for hedging purpose
made by the Company in order to prevent exchange rate risk is based on reasonable
estimation and current need for foreign exchange payment and collection. The business
Independent Directors’ opinions on process is compliant with laws and regulations. There is almost no market risk, no
derivatives investment and risk control performance risk and no impact on liquidity of the Company. The Company has
established organization, business procedures, approval process and Internal Control
Rules on Derivatives Investment for foreign exchange trading. We think the Company can
improve foreign exchange risk management and prevent exchange rate risk through
derivatives investment business.
）））） （（（（
3 Entrusted loans
Applicable √ Inapplicable
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2014 Interim Report of Wuhan Boiler Company Limited
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
No change of raised-funds-invested projects in the report period.
）））） （（（（
4 Projects invested with raised funds
Applicable √ Inapplicable
4. Analysis to main subsidiaries and shareholding companies
√ Applicable Inapplicable
Main subsidiaries and shareholding companies:
Unit: RMB Yuan
Company Company Registered Operating Operating
Industry Main products/services Total assets Net assets Net profit
name variety capital revenues profit
R&D, design, consultation
and technology services
related to boilers, energy &
environmental protection
products, steel structures,
Wuhan
thermal energy-related
Lanxiang
products and their auxiliary
Environment
Subsidiary Boiler equipment; marketing of 20,000,000 16,518,059.48 15,172,995.29 0 -453,602.21 -453,602.21
Protection
products developed; energy
Technology
project (non-land
Co., Ltd
construction projects)
contracting and technical
service (special-purpose
projects subject to
governmental approval).
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2014 Interim Report of Wuhan Boiler Company Limited
5. Significant projects of investments with non-raised funds
Applicable √ Inapplicable
No significant projects of investments with non-raised funds in the report period.
VI. Business performance estimate for Jan.-Sept. 2014
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 for 2013 is no cash dividends, no bonus shares 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
The Company didn’t plan to distribute cash dividends, or grant bonus shares, or transfer capital reserves into share
capital for the first half of 2014.
XI. Particulars about researches, visits and interviews received in this report period
√ Applicable Inapplicable
Time of Place of Way of Main discussion and materials provided by
Visitor type Visitor
reception reception reception the Company
1 shareholder with How to vote for the Debt-to-equity
May 15, 2014 Wuhan By phone Individual
tradable shares Conversion Plan? How was the operating
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2014 Interim Report of Wuhan Boiler Company Limited
performance of the Company in 2014?
Would the Company arrange a second
2 shareholders with
Jun. 17, 2014 Wuhan By phone Individual voting of the Debt-to-equity Conversion
tradable shares
Plan this year? Was there any other plan?
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2014 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 the 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.
19
2014 Interim Report of Wuhan Boiler Company Limited
II. Significant lawsuits or arbitrations
√Applicable Inapplicable
Amount Trial result
involved in Forming Progress of and Enforcement
the the the influence on the
Disclosure Disclosure
Basic situation of the litigation (arbitration) litigation estimated litigation of the judgment of
date index
(arbitration liabilities (arbitration litigation the litigation
) (RMB or not ) (arbitration (arbitration)
0’000) )
In November 2001, Shenzhen Wangda Color Printing
Packaging Co., LTD. signed a boiler supply contract
The Progress
with the Company (Contract No. 2001D011). In Sep.
Announcement
2003, both parties signed a supplementary agreement
of Wuhan
that Jiangsu Wangda Paper Co., LTD. (“Jiangsu
Boiler
Wangda”) would perform rights and obligations of the
The effect Company
Contract. In Feb. 2004, after receiving the deposit of
of this case Limited on
the Contract, the Company organized design,
on profit in Significant
manufacturing and purchasing. In Nov. 2004, Jiangsu
or after the Lawsuit or
Wangda requested the Company to postpone delivery
report Arbitration
and stopped paying the rest payments, which caused No judgment May 6,
No Not closed period is (No. 2014-048)
the project suspension till now. In Apr. 2011, Jiangsu yet. 2014
subject to was published
Wangda sent a letter to the Company, asking to cancel
the final on the
the Contract and return the deposit. However, some
judgment Securities
costs and expenses were incurred during design,
of this Times, Ta
manufacturing and purchasing of the Company. The
case. Kung Pao and
Company agreed to terminate the Contract on the basis
http://www.cni
of no deposit return and sufficient compensation of
nfo.com.cn
losses. But Jiangsu Wangda didn't agree. Because no
dated May 6,
consensus was achieved on contract termination,
2014.
Jiangsu Wangda sued the Company before Wuhan
Intermediate Court.
On Jun. 28, 2013, the Amendment of Articles of 1. The Progress
Association of Wuhan Boiler Company Limited (the Announcement
“AOA Amendment”) was reviewed and approved on The case of Wuhan
2012 Annual Shareholders’ Meeting of the Company. had no Boiler
Main revision is: Article 74 Shareholders shall issue substantial A judgment Company
separate and individual proxy for each shareholders’ effect on has been Jul. 15, Limited on
No Closed
meeting, and shall not issue long-term proxy. A proxy the profits made. 2014 Significant
shall not sub-authorize other person to attend the in or after Lawsuit or
shareholders’ meeting or to exercise the voting right. If the report Arbitration
a proxy, who is a shareholder of the Company, is period. (No. 2014-066)
entrusted by five or more than five shareholders, he was published
shall collect the voting rights openly and complete on the
20
2014 Interim Report of Wuhan Boiler Company Limited
relevant procedures according to the regulations Securities
related to voting rights collection of the Company. A Times, Ta
proxy, who is not a shareholder of the Company, shall Kung Pao and
not be entrusted by five or more than five shareholders http://www.cni
of the Company. However, the Collector stipulated in nfo.com.cn
Article 88 shall be excluded. Article 88 The following dated Jun. 24,
organization or person is entitled to collect the voting 2014.
rights from shareholders of the Company to vote at 2. The Progress
shareholders’ meetings:(i) The Board of Directors;(ii) Announcement
Independent directors;(iii) Shareholders individually or of Wuhan
jointly holding more than 1% shares of the Company. Boiler
The Collector shall engage lawyers or state notary Company
authorities to provide legal opinions with respect to the Limited on
qualification of the Collector, collection plan, the form Significant
of power of attorney, validity and effectiveness of Lawsuit or
performance of the voting rights collected and other Arbitration
related matters. The legal opinion or notarization shall (No. 2014-071)
be published together with the report and the power of was published
attorney in respect of the voting right collection in the on the
media designated by the Company to disclose Securities
information. Times, Ta
Upon the requirement of Shenzhen Stock Exchange, Kung Pao and
AllBright Law Offices issued the Legal Opinion on the http://www.cni
AOA Amendment. In their opinion, the AOA nfo.com.cn
Amendment did not violate any compulsory provision dated Jul. 15,
of the existing laws and regulations, nor there was any 2014.
legal basis to prove that the AOA Amendment imposed
improper restrictions on the legal rights and interests
of minority shareholders. The full text of the Legal
Opinion was disclosed on http://www.cninfo.com.cn
on Jun. 8, 2013.
Tradable share holder Mr. Tan Zhenbiao believed
otherwise that the AOA Amendment restricted public
shareholders from properly executing their civil rights,
infringed their legal rights and interests and therefore
should be considered as an illegal resolution. On that
ground, he sued the Company before the Court of
Wuhan East Lake New Technology Development
Zone.
In order to further enhance the shareholder voting
system of the Company and protect the lawful interests
of shareholders, Article 74 and 88 of the AOA have
been amended according to the Opinions of the
General Office of the State Council on Further
21
2014 Interim Report of Wuhan Boiler Company Limited
Protecting Lawful Rights and Interests of Medium and
Small Investors in Capital Market (Guobanfa [2013]
No. 110). The AOA Amendment has been approved by
the First Extraordinary Shareholders’’ Meeting. The
amended AOA was disclosed on the Securities Times,
Ta Kung Pao and http://www.cninfo.com.cn on May
22, 2014.
In July 2014, the Court of Wuhan East Lake New
Technology Development Zone made the judgment
that the claim of the Plaintiff Tan Zhenbiao was
rejected after the trial.
The
Announcement
In September 2003, Dongfang Xiwang Baotou Xitu
of Wuhan
Aluminium Co., Ltd (“Baotou”) signed the Contract of
Boiler
2×350MW Boilers with the Company. During
The effect Company
executing the Contract, the Company fully
of this case Limited on
implemented delivery obligations according to the
on profit in Significant
Contract, but Baotou defaulted on the payment. The
or after the Lawsuit or
Company required Baotou to pay the overdue many
report This case Arbitration
times through various ways (including phone, fax and August 6,
No Not closed period is has not been (No. 2014-073)
EMS), but Baotou claimed quality issues against the 2014
subject to heard yet. was published
Company and refused to pay. It also refused to solve
the final on the
the pending problems through amicable negotiation
judgment Securities
with the Company. In May 2014, the Company sued
of this Times, Ta
Baotou before Inner Mongolia High Court, requesting
case. Kung Pao and
judgment against Baotou for paying overdue and
http://www.cni
undertaking liquidated damages and bank interests.
nfo.com.cn
Relevant evidences were submitted to the Court.
dated August 6,
2014.
Due to a dispute arising from execution of the Contract The The Progress
of 2×200MW Pulverized Coal Boilers between the Company Announcement
The effect
Company and Shanxi Zhenxing Group Co., Ltd. has applied s of Wuhan
of this case
(“Zhenxing Group”), the Company sued Zhenxing to Shanxi Boiler
on profit in
Group before Shanxi High Court in Apr. 2010, High Court Company
or after the
requesting judgment against Zhenxing Group for for Limited on
report
paying overdue RMB47.97 million and undertaking enforcement. Apr. 15, Significant
No Closed period is
liquidated damages and bank interest of RMB22.047 Shanxi High 2014 Lawsuit or
subject to
million in total. In Oct. 2011, upon quite a few trials, Court Arbitration
the
Shanxi High Court made a judgement that Zhenxing accepted the (Announcemen
execution
Group shall pay overdue RMB39.82 million and the application t No. 2013-005,
of the
corresponding interest to the Company. In the and No. 2013-020,
judgment.
execution of the judgment, the Company found that the transferred No. 2013-048
name change fact of Zhenxing Group was incorrectly the case to and No.
22
2014 Interim Report of Wuhan Boiler Company Limited
ascertained in the judgment of Shanxi High Court. Shanxi 2014-028) were
Therefore, the Company applied to the Supreme Court Yuncheng published on
for a retrial. In Apr. 2013, the Supreme Court made an Intermediate Securities
order that Shanxi High Court to retry the case. During Court for Times, Ta
the retrial, execution of the original judgment shall be enforcement. Kung Pao and
suspended. In Apr. 2014, judgment was delivered by http://www.cni
Shanxi High Court: (1) cancel original judgment made nfo.com.cn
by Shanxi High Court (2010 JMCZ No.8); (2) dated Feb. 1,
Terminate the contract between the Company and Apr. 27, Oct.
Zhenxing Group; (3) Zhenxing Group should pay total 16, 2013 and
overdue 47.97MRMB and the interests within 15 days Apr. 15, 2014
from the adjudicating date (Down payment respectively.
8.15MRMB for Unit 2 has been transferred to payment
for Unit 1, so Zhenxing Group doesn’t need to pay
8.15MRMB of 47.97MRMB.); (4) reject other claims
of the Company.
III. Media’s queries
Applicable √ Inapplicable
There was no media’s common query during the report period.
IV. Bankruptcy reorganization
Applicable √ Inapplicable
No bankruptcy reorganization occurred to the Company in the report period.
V. Asset transactions
1. Acquisition of assets
Applicable √ Inapplicable
The Company did not acquire any asset in the report period.
2. Sale of assets
Applicable √ Inapplicable
The Company did not sell any asset in the report period.
3. Business combination
Applicable √ Inapplicable
No business combination occurred to the Company in the report period.
23
2014 Interim Report of Wuhan Boiler Company Limited
VI. Implementation of equity incentive and its influence
Applicable √ Inapplicable
The Company did not make or carry out any equity incentive plan in the report period.
VII. Significant related party transactions
1. Related party transactions relevant to routine operation
√Applicable Inapplicable
Transacti Proportio
Available
Type of Contents on n in the
market
Related Relations the of the Pricing Transacti amount same kind Mode of Disclosure Disclosure
price for
party hip transactio transactio principle on price (RMB of settlement date index
the same
n n Ten transactio
kind
thousand) ns (%)
A
subsidiary Settlemen
ALSTOM http://ww
of the Sale of Sale of Market t as per April. 29,
Power － 28,973.81 58.55% － w.cninfo.c
ultimate products products price contract 2014
Inc. om.cn
actual term
controller
A
Alstom subsidiary Settlemen
http://ww
power of the Sale of Sale of Market t as per April. 29,
－ 3,232.59 6.53% － w.cninfo.c
Systems ultimate products products price contract 2014
om.cn
Gmbh actual term
controller
A
subsidiary Settlemen
ALSTOM http://ww
of the Sale of Sale of Market t as per April. 29,
Boiler － 156.51 0.32% － w.cninfo.c
ultimate products products price contract 2014
France om.cn
actual term
controller
ALSTOM A
Technical subsidiary Settlemen
http://ww
Services of the Sale of Sale of Market t as per April. 29,
－ 34.89 0.07% － w.cninfo.c
(Shanghai ultimate products accessory price contract 2014
om.cn
) Co., actual term
Ltd. controller
24
2014 Interim Report of Wuhan Boiler Company Limited
A
subsidiary
Settlemen
ALSTOM of the
Render of Render of Market t as per
(Switzerla second － 17.12 9.24% －
service service price contract
nd) Ltd largest
term
sharehold
er
ALSTOM
A
(Wuhan)
subsidiary Settlemen
Engineeri http://ww
of the Render of Render of Market t as per April. 29,
ng & － 81.94 44.23% － w.cninfo.c
ultimate service service price contract 2014
Technolo om.cn
actual term
gy Co.,
controller
Ltd..
ALSTOM A
Technical subsidiary Settlemen
Purchase Purchase http://ww
Services of the Market t as per April. 29,
of raw of raw － 275.49 0.95% － w.cninfo.c
(Shanghai ultimate price contract 2014
material material om.cn
) Co., actual term
Ltd. controller
A
subsidiary Settlemen
ALSTOM http://ww
of the Received Market t as per April. 29,
(Switzerla IT service － 77.82 2.50% － w.cninfo.c
ultimate service price contract 2014
nd) Ltd om.cn
actual term
controller
A
subsidiary Settlemen
ALSTOM http://ww
of the Received Training Market t as per April. 29,
(Switzerla － 26.49 0.85% － w.cninfo.c
ultimate service expense price contract 2014
nd) Ltd. om.cn
actual term
controller
A
subsidiary Settlemen
ALSTOM http://ww
of the Received Market t as per April. 29,
IS&T IT service － 241.78 7.76% － w.cninfo.c
ultimate service price contract 2014
SAS om.cn
actual term
controller
25
2014 Interim Report of Wuhan Boiler Company Limited
ALSTOM
Controllin Settlemen
(China) http://ww
g Received Market t as per April. 29,
Investme IT service － 171 5.49% － w.cninfo.c
sharehold service price contract 2014
nt Co., om.cn
er term
Ltd.
ALSTOM
Controllin Settlemen
(China)
g Received Training Market t as per
Investme － 2.8 0.65% －
sharehold service expense price contract
nt Co.,
er term
Ltd.
A
ALSTOM subsidiary Settlemen
Project http://ww
Boiler of the Received Market t as per April. 29,
service － 43.77 1.41% － w.cninfo.c
Deutschla ultimate service price contract 2014
om.cn
nd GmbH actual term
controller
ALSTOM
Controllin Fall 10% Settlemen
(China) http://ww
g Payment of PBOC t as per April. 29,
Investme Interest － 4,122.1 87.73% － w.cninfo.c
sharehold of interest benchmar contract 2014
nt Co., om.cn
er k rate term
Ltd.
Wuhan
A
Boiler
subsidiary
Group Settlemen
of the
Engineeri Sale of Sale of Market t as per
second － 218.79 0.44% －
ng products products price contract
largest
Technolo term
sharehold
gy
er
Co.,Ltd
Total -- -- 37,676.90 -- -- -- -- --
Details of large amount of sales returns None.
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
2 、 Sale of boiler products: The actual amount is less than the estimated amount
types, the actual performance in the report
period (if any)
Reason for significant difference between
the transaction price and the market price None.
(if applicable)
26
2014 Interim Report of Wuhan Boiler Company Limited
2. Related party transactions arising from acquisition and sale of assets
Applicable √ Inapplicable
The Company had no related party transaction arising from acquisition or sale of assets in the report period.
3. Related party transactions arising from joint investments
Applicable √ Inapplicable
The Company had no related party transaction arising from joint investment during the report period.
4. Significant credits and liabilities with related parties
√Applicable Inapplicable
Was there any non-operating credit or liability with any related party?
Yes √ No
The Company didn’t have any non-operating credit or liability with any related party during the report period.
Amount
Non-operating Opening incurred in Closing
Variety of
capital balance report balance
Related party Relationship credit or Reason
occupation or (RMB Ten period (RMB Ten
liability
not thousand) (RMB Ten thousand)
thousand)
Wuhan Boiler Group A subsidiary of the
Engineering second largest Receivables Sale of product No 485.5 379.41 864.91
Technology Co., LTD shareholder
A subsidiary of
ALSTOM Power Inc ultimate holding Receivables Sale of product No 11,515.78 -2,546.03 8,969.75
company
A subsidiary of
Alstom Boiler
ultimate holding Receivables Sale of product No 12.96 0.9 13.86
Deutschland GmbH
company
ALSTOM Technical A subsidiary of
Down payment
Services (Shanghai) ultimate holding Receivables No 1,326 -1,326 0
of material
Co., LTD company
A subsidiary of
ALSTOM Power Inc. ultimate holding Receivables Down payment No 0 122.56 122.56
company
second largest The relocation
Wuhan Boiler Group Receivables No 6,103.05 0 6,103.05
shareholder compensation
27
2014 Interim Report of Wuhan Boiler Company Limited
A subsidiary of the
Wuhan Boiler Group Sales of
second largest Receivables No 24.06 0 24.06
Valve Co., LTD material
shareholder
A subsidiary of the
Wuhan Boiler Group
second largest Receivables Labor service No 1.02 0 1.02
Yuntong Co., LTD
shareholder
A subsidiary of
ALSTOM Boiler
ultimate holding Receivables Service No 61.71 0 61.71
France
company
A subsidiary of
ALSTOM
ultimate holding Receivables IT service No 0 18.15 18.15
(Switzerland) Ltd
company
A subsidiary of
ALSTOM Boiler Sales of
ultimate holding Receivables No 38.84 0.01 38.85
Deutschland GmbH material
company
ALSTOM (Wuhan) A subsidiary of
Engineering ultimate holding Receivables Labor service No 24.57 -20.95 3.62
&Technology Co., Ltd company
ALSTOM (Beijing) A subsidiary of
Engineering ultimate holding Receivables Labor service No 1.41 0 1.41
&Technology Co., Ltd company
A subsidiary of
Sales of
ALSTOM Power Inc. ultimate holding Receivables No 3.62 0 3.62
material
company
A subsidiary of
Purchase of
ALSTOM s.r.o ultimate holding Payables No 1.13 0.09 1.22
material
company
A subsidiary of
ALSTOM
ultimate holding Payables IT service No 213.86 -124.05 89.81
(Switzerland) Ltd
company
A subsidiary of Down payment
ALSTOM Boiler
ultimate holding Payables received of No 9,298.74 -3,174.45 6,124.29
Deutschland GmbH
company product
Down payment
Second largest
ALSTOM Estonia AS Payables received of No 258.39 0.17 258.56
shareholder
product
A subsidiary of
ALSTOM IS&T SAS ultimate holding Payables IT service No 439.42 -280.42 159
company
28
2014 Interim Report of Wuhan Boiler Company Limited
A subsidiary of
ALSTOM Power Purchase of
ultimate holding Payables No 94.97 1.32 96.29
Boiler GmbH material
company
A subsidiary of
ALSTOM Power Purchase of
ultimate holding Payables No 0.92 0.14 1.06
Energy material
company
A subsidiary of
Purchase of
ALSTOM Power Inc ultimate holding Payables No 44.37 4.51 48.88
material
company
A subsidiary of
Receipt of
ALSTOM Holdings ultimate holding Payables No 2.1 -0.6 1.5
service
company
A subsidiary of Down payment
ALSTOM Power Inc ultimate holding Payables received of No 59,330.69 -1,672.84 57,657.85
company product
A subsidiary of Down payment
ALSTOM Boiler
ultimate holding Payables received of No 648.49 648.49
France
company product
A subsidiary of
Receipt of
ALSTOM Power Ltd ultimate holding Payables No 8.84 -0.04 8.8
service
company
ALSTOM (China) Controlling
Payables IT service 311.77 -174.69 137.08
investment co., LTD shareholder No
ALSTOM Technical A subsidiary of
Purchase of
Services (Shanghai) ultimate holding Payables No 3,196.65 -2,526.07 670.58
material
Co., LTD company
A subsidiary of the
Wuhan Boiler Group Purchase of
second largest Payables No 32.14 0 32.14
Valve Co., LTD boiler accessory
shareholder
Wuhan Boiler Group A subsidiary of the
Purchase of
Engineering second largest Payables No 1,912.58 0 1,912.58
boiler accessory
Technology Co., LTD shareholder
second largest Receipt of
Wuhan Boiler Group Payables 97.41 0 97.41
shareholder service No
ALSTOM (Wuhan)
A subsidiary of the
Engineering Receipt of No
second largest Payables 1.74 0 1.74
&Technology Co., Ltd. transport service
shareholder
29
2014 Interim Report of Wuhan Boiler Company Limited
5. Other significant related party transactions
Applicable √ Inapplicable
The Company had no other significant related-party transaction during the report period.
VIII. Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
Applicable √ Inapplicable
The controlling shareholder or its related parties did not occupy the Company’s funds for non-operating purposes
during the report period.
IX. Significant contracts and execution
1. Trusteeship, contract and lease
）））） （（（（
1 Trusteeship
Applicable √ Inapplicable
The Company did not make any entrustment in the report period.
(2) Contract
Applicable √ Inapplicable
The Company was not involved in any contracting in the report period.
(3) Lease
Applicable √ Inapplicable
The Company was not involved in any leasing in the report period.
2. Guarantees provided by the Company
Applicable √ Inapplicable
The Company did not provide any guarantee in the report period.
(1) Guarantees provided in violation of regulations
Applicable √ Inapplicable
The Company did not provide any guarantee in violation of regulations for any external party in the report period.
3. Other significant contracts
Applicable √ Inapplicable
30
2014 Interim Report of Wuhan Boiler Company Limited
There was no other significant contract of the Company in the report period.
4. Other significant transactions
Applicable √ Inapplicable
The Company was not involved in any other significant transaction in the report period.
X. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the report period or such commitments carried down into the report period
√ Applicable Inapplicable
Commitment Time of making Period of
Commitment Contents Fulfillment
maker commitment commitment
Commitment on share reform － － － － －
Alstom (China) Strictly fulfill
Commitment in the acquisition report or Avoid horizontal Long-term
Investment Co., April 14, 2006 the commitment
the report on equity changes competition effective
Ltd and no breaches
Commitments made in assets
reorganization
－ － － － －
Commitments made in IPO or refinancing － － － － －
Other commitments made to minority
shareholders
－ － － － －
The commitment has been fulfilled in time
Yes
or not
XI. Engagement and dismissal of CPA firm
Has the Interim Financial Report been audited or not?
Yes √ No
XII. Punishment and rectification
Applicable √ Inapplicable
No punishment or rectification in the report period.
XIII. Delisting risk due to violation of laws or regulations
Applicable √ Inapplicable
No such risk in the report period.
31
2014 Interim Report of Wuhan Boiler Company Limited
XIV. Explanation on other significant events
√ Applicable Inapplicable
1. Because the audited net profits and closing net assets for three consecutive accounting years of 2011, 2012 and
2013 are negative, Shenzhen Stock Exchange has decided to suspend the listing of the Company’s stock starting
from May 16, 2014 according to Article 14.1.1 and 14.1.2 of the Stock Listing Rules of Shenzhen Stock
Exchange.
2. In order to satisfy the criteria for resuming the listing of the Company’s stocks, pursuant to the Stocks Listing
Rules of Shenzhen Stock Exchange (revised version 2012), the Company’s financial data in the year of 2014 shall
satisfy, at least both of the below criteria: (i) net asset value as of the end of fiscal period shall be positive; and (ii)
net profit shall be positive before and after deducting non-recurring profit and loss.
3. In the report period, the net profit attributable to shareholders of the Company was 8,214,639.10, and the net
assets attributable to shareholders of the Company were -1,355,276,203.03. If the Company fails to meet the
requirements for listing resumption, the stock of the Company will be delisted. The Board of Directors hereby
reminds investors of investment risks.
4. The Company continued to engage Ernst & Young (China) Advisory Limited, an independent third party, in
2014 to issue an analysis report on transfer pricing between the Company and its related parties in 2013. Since the
sales with related parties are mainly overseas orders (99.97% of the total sales with related parties in 2013), Ernst
& Young (China) believed that it was the best to adopt the transactional net margin method in checking the
transactions between WBC and its related parties and to adopt the full cost markup percentage in evaluating the
rational profit extent that WBC should have achieved from the sale to its related parties in 2013. The analysis
report concluded that: “From the perspective of transfer pricing in China, we are of the opinion that WBC’s sales
to its related parties in 2013 did not violate the arm’s length principle.”
5. On April 9, 2014, the 4th Meeting of the 6th Board of Directors approved the Debt-to-equity Conversion Plan of
the Company. On April 11, 2014, the Resolutions of the 4th Meeting of the 6th Board of Directors (No. 2014-022)
and the Debt-to-equity Conversion Plan of the Company were published on Securities Times, Ta Kung Pao and
http://www.cninfo.com.cn.
The Second Extraordinary Shareholders’ Meeting 2014 of the Company was held on May 23, 2014. The
Debt-to-equity Conversion Plan was not approved by the meeting. It is difficult for the Company to find other
solutions to turn its net asset value from negative to positive by the end of 2014. Meantime, the Company has
reminded the risks in the Debt-to-equity Conversion Plan as follows: if the Plan cannot be completed before the
first half year of 2014, financial costs arising from the relevant debts would create a significant burden on the
financial result of the Company in the year of 2014, and it will be fairly difficult for the Company to have a
positive net profit, whether before or after deducting non-recurring profits/loss, and the Company’s stock will also
be facing the risk of delisting. On May 24, 2014, the Resolutions of the Second Extraordinary Shareholders’
Meeting 2014 (No. 2014-056) was published on Securities Times, Ta Kung Pao and http://www.cninfo.com.cn.
6. On April 25, 2014, the 5th Meeting of the 6th Board of Directors approved the Investment Plan of United
Building 3. On April 29, 2014, the Resolutions of the 5th Meeting of the 6th Board of Directors (No. 2014-036) and
the Investment Announcement of the Company (No. 2014-047) were published on Securities Times, Ta Kung Pao
and http://www.cninfo.com.cn. Up till now, the Company is going through formalities for United Building 3
project.
XV. The confirmative opinion of all the Board Directors and Senior Management on
recognition of 2014 Interim Report
According to Article 68 of the Securities Law, all the Board Director and Senior Management of the Company
hereby confirm that 2014 Interim Report of the Company is authentic, accurate and complete without any
misstatement, misleading statement or material omission.
32
2014 Interim Report of Wuhan Boiler Company Limited
XVI. The opinion of the Board of Supervisors on 2014 Interim Report
After review, the Board of Supervisors is of the opinion that the procedure for the Board of Directors to prepare
and approve 2014 Interim Report is in accordance with laws, regulations and rules of China Securities Regulatory
Commission. The contents of 2014 Interim Report, truly, accurately and completely, reflect real situation of the
Company and there are no misstatements, misleading statements or material omissions.
33
2014 Interim Report of Wuhan Boiler Company Limited
Section VI Changes in Shares and Particulars about Shareholders
I. Particulars about the changes in shares
Unit: share
Before the change Increase/decrease (+, -) After the change
Capitalizat
Issuance ion of
Proportion Bonus Proportion
Amount of new public Others Subtotal Amount
(%) shares (%)
shares reserve
fund
172,000,0 172,000,0
I. Non tradable shares 57.91% 57.91%
00 00
172,000,0 172,000,0
1. Sponsors’ shares 57.91% 57.91%
00 00
Shares held by domestic 20,530,00 20,530,00
6.91% 6.91%
corporations 0 0
Shares held by foreign 151,470,0 151,470,0
51.00% 51.00%
corporations 00 00
125,000,0 125,000,0
II. Tradable shares 42.09% 42.09%
00 00
2. Domestically listed 125,000,0 125,000,0
42.09% 42.09%
foreign shares 00 00
297,000,0 297,000,0
III. Total shares 100.00% 100.00%
00 00
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
34
2014 Interim Report of Wuhan Boiler Company Limited
II. Total number of shareholders and their shareholdings
Unit: share
Total number of shareholders
Total number of shareholders
with preferred shares who had
with common shares at the end 7,688 0
resumed their voting right at the
of the report period
end of the report period (if any)
Shareholdings of shareholders holding more than 5% shares or top 10 shareholders
Increase / Pledged or frozen
Total shares decrease Number of Number of shares
Nature of Shareholding
Name of shareholder held at the during the non-tradable tradable
shareholder percentage Status of Number
period-end report shares held shares held
shares of shares
period
ALSTOM (CHINA) Domestic
INVESTMENT CO., non-state-owned 51.00% 151,470,000 0 151,470,000 0
LTD corporation
WUHAN BOILER State-owned
6.91% 20,530,000 0 20,530,000 0
GROUP CO., LTD corporation
Domestic
WANG XIAO 0.90% 2,672,800 0 0 2,672,800
natural person
Domestic
CHEN PENG 0.79% 2,331,545 0 0 2,331,545
natural person
Domestic
HU ZHIHONG 0.47% 1,390,397 0 0 1,390,397
natural person
CHINA MERCHANTS
State-owned
SECURITIES (HK) 0.46% 1,380,236 0 0 1,380,236
corporation
CO., LTD.
Domestic
CHEN CHUYUN 0.46% 1,372,450 0 0 1,372,450
natural person
HSBC BROKING
SECURITIES (ASIA) Foreign
0.40% 1,195,114 0 0 1,195,114
LIMITED-CLIENTS corporation
A/C
ZHUANG Domestic
0.35% 1,045,000 0 0 1,045,000
CHANGXIONG natural person
Domestic
SUN WEIWEI 0.33% 966,567 0 0 966,567
natural person
Strategic investor or corporation
becoming a top ten shareholder due to Not applicable
placing of new shares (if any)
35
2014 Interim Report of Wuhan Boiler Company Limited
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 Co., Ltd. (the second principal shareholder of the Company) and
Explanation on affiliated relationship or
the other shareholders with tradable shares, and they are not persons acting in concert as
persons acting in concert among the
defined in the Administrative Rules on Information Disclosure about Changing of
above-mentioned shareholders:
Shareholding Status. The Company is not 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.
Shareholdings of top ten shareholders holding tradable shares
Number of tradable shares Type of shares
Name of shareholder
held at the period-end Type Number
WANG XIAO 2,672,800 Domestically listed foreign shares 2,672,800
CHEN PENG 2,331,545 Domestically listed foreign shares 2,331,545
HU ZHIHONG 1,390,397 Domestically listed foreign shares 1,390,397
CHINA MERCHANTS SECURITIES
1,380,236 Domestically listed foreign shares 1,380,236
(HK) CO., LTD.
CHEN CHUYUN 1,372,450 Domestically listed foreign shares 1,372,450
HSBC BROKING SECURITIES (ASIA)
1,195,114 Domestically listed foreign shares 1,195,114
LIMITED-CLIENTS A/C
ZHUANG CHANGXIONG 1,045,000 Domestically listed foreign shares 1,045,000
SUN WEIWEI 966,567 Domestically listed foreign shares 966,567
GUOTAI JUNAN
926,997 Domestically listed foreign shares 926,997
SECURITIES(HONGKONG) LIMITED
QIN HUI 909,286 Domestically listed foreign shares 909,286
Explanation on affiliated relationship or
The top ten shareholders of the Company are public shareholders with tradable B shares.
persons acting in concert among the top
The Company is not aware of whether there is any affiliated relationship among the top
ten shareholders with tradable shares and
ten shareholders with tradable shares and whether there are persons acting in concert
between the top ten shareholders with
among them. The Company is not aware of whether there is any affiliated relationship
tradable shares and the top ten
among the top ten shareholders and the top ten shareholders with tradable share.
shareholders
Explanation on the top 10 shareholders
participating in the margin trading Not applicable
business (if any)
Did any shareholder of the Company reach agreement of buy back trading in the report period?
Yes √ No
36
2014 Interim Report of Wuhan Boiler Company Limited
No shareholder of the Company carried out any agreed buy-back in the report period.
III. Change in the controlling shareholder or the actual controller
Change of the controlling shareholder in the report period
Applicable √ Inapplicable
The controlling shareholder of the Company did not change in the report period.
Change of the actual controller in the report period
Applicable √ Inapplicable
The actual controller of the Company did not change in the report period.
IV. Shareholding increase plan proposed or implemented by any shareholder or its
act-in-concert party during the report period
Applicable √ Inapplicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any
shareholding increase plan during the report period.
37
2014 Interim Report of Wuhan Boiler Company Limited
Section VII Preferred Shares
I. Issuance and listing of preferred shares in the report period
Applicable √ Inapplicable
II. Number of shareholders held preferred shares and their shareholdings
Applicable √ Inapplicable
III. Buy-back or conversion of preferred shares
1. Buy-back of preferred shares
Applicable √ Inapplicable
2. Conversion of preferred shares
Applicable √ Inapplicable
IV. Resumption and exercise of voting rights of preferred shares
Applicable √ Inapplicable
V. Accounting policies adopted for preferred shares and reasons
Applicable √ Inapplicable
38
2013 Interim Report of Wuhan Boiler Company Limited
Section VIII 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 2013 Annual Report.
II. Change of Directors, Supervisors and Senior Management
√ Applicable Inapplicable
Name Position Type Date Reason
Shen Weixing Independent Director Resignation May 21, 2014 Personal career arrangement
Xiong Gang Director Resignation May 21, 2014 Personal career arrangement
Anders Maltesen Director Resignation May 21, 2014 Personal career arrangement
Li Jianghong Independent Director Elected May 21, 2014 Elected by the Shareholders’ Meeting
Gao Yan Director Elected May 21, 2014 Elected by the Shareholders’ Meeting
Pascal Alexander Radue Director Elected May 21, 2014 Elected by the Shareholders’ Meeting
39
2014 Interim Report of Wuhan Boiler Company Limited
Section IX 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 23,732,263.65 10,114,897.11
Deposit reservation for balance
Outgoing call loans
Trading financial assets
Notes receivable 1,500,000.00 15,000,000.00
Accounts receivable 120,703,025.21 221,376,068.36
Prepayment 84,900,796.80 66,353,048.93
Insurance receivables
Reinsurance receivables
Provision of reinsurance contract
reserve receivable
Interest receivable
Dividend receivable
Other receivables 61,507,568.39 58,418,447.82
Financial assets purchased under
agreement to resell
Inventories 152,124,948.75 134,413,065.46
Non-current assets due within 1-year
40
2014 Interim Report of Wuhan Boiler Company Limited
Other current assets
Total current assets 444,468,602.80 505,675,527.68
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 689,823,354.40 705,316,090.85
Construction in progress 5,683,635.03 2,245,077.87
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 71,325,416.35 73,865,912.61
R&D expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets 52,358,165.78 52,533,127.61
Other non-current assets 12,137.16
Total non-current assets 819,190,571.56 833,972,346.10
Total assets 1,263,659,174.36 1,339,647,873.78
Current liabilities:
Short-term loans 1,550,000,000.00 1,629,200,000.00
Loans from central bank
Deposits received and held for others
Call loans received
Held-for-trading financial liabilities
Notes payable 66,546,750.00
Accounts payable 272,575,994.15 193,795,670.01
Advance from customers 671,248,752.51 803,079,341.99
Financial assets sold under
agreements to repurchase
41
2014 Interim Report of Wuhan Boiler Company Limited
Fees and commissions payable
Payroll payable 40,212,110.61 47,064,533.78
Taxes payable -25,792,187.91 -30,001,780.39
Interest payable 3,156,100.00 12,276,456.15
dividend payable 562,000.00 562,000.00
Other payables 34,382,022.95 41,329,411.60
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: 2,612,891,542.31 2,697,305,633.14
Non-current liabilities:
Long-term loans
Bonds payable
Long-term payables
Specific payables
Provision for liabilities
Deferred income tax liabilities
Other non-current liabilities 5,285,185.30 5,051,752.88
Total non-current liabilities : 5,285,185.30 5,051,752.88
Total liabilities 2,618,176,727.61 2,702,357,386.02
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 -1,866,353,967.32 -1,874,568,606.42
Foreign exchange difference
42
2014 Interim Report of Wuhan Boiler Company Limited
Total owners’ equity attributable to
-1,355,276,203.03 -1,363,490,842.13
the Company
Minority interests 758,649.78 781,329.89
Total owners’ (or shareholders’) equity -1,354,517,553.25 -1,362,709,512.24
Total liabilities & owners’ (or
1,263,659,174.36 1,339,647,873.78
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 22,117,579.26 8,554,186.69
Trading financial assets
Notes receivable 1,500,000.00 15,000,000.00
Accounts receivable 120,703,025.21 220,742,468.36
Prepayment 84,900,796.80 66,353,048.93
Interest receivable
Dividend receivable
Other receivables 61,924,861.50 58,771,441.37
Inventories 152,124,948.75 134,413,065.46
Non-current assets due within 1-year
Other current assets
Total current assets 443,271,211.52 503,834,210.81
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 689,980,331.39 705,473,067.84
Construction in progress 5,683,635.03 2,245,077.87
Engineering materials
43
2014 Interim Report of Wuhan Boiler Company Limited
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 71,325,416.35 73,865,912.61
R&D expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets 52,358,165.78 52,533,127.61
Other non-current assets 12,137.16
Total non-current assets 844,332,048.55 859,113,823.09
Total assets 1,287,603,260.07 1,362,948,033.90
Current liabilities:
Short-term loans 1,550,000,000.00 1,629,200,000.00
Trading financial liabilities
Notes payable 66,546,750.00
Accounts payable 273,011,994.15 194,231,670.01
Advance from customers 671,248,752.51 803,079,341.99
Payroll payable 40,042,514.63 46,894,937.80
Taxes payable -25,792,187.91 -30,001,780.39
Interest payable 3,156,100.00 12,276,456.15
dividend payable
Other payables 72,259,681.38 79,014,270.02
Non-current liabilities due within
1-year
Other current liabilities
Total current liabilities: 2,650,473,604.76 2,734,694,895.58
Non-current liabilities:
Long-term loans
Bonds payable
Long-term payables
Specific payables
Provision for liabilities
Deferred income tax liabilities
Other non-current liabilities 5,285,185.30 5,051,752.88
44
2014 Interim Report of Wuhan Boiler Company Limited
Total non-current liabilities : 5,285,185.30 5,051,752.88
Total liabilities 2,655,758,790.06 2,739,746,648.46
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 -1,879,428,190.94 -1,888,071,275.51
Foreign exchange difference
Total owners’ (or shareholders’) equity -1,368,155,529.99 -1,376,798,614.56
Total liabilities & owners’ (or
1,287,603,260.07 1,362,948,033.90
shareholders’) equity
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua 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 496,898,159.52 462,281,106.75
Including: Sales 496,898,159.52 462,281,106.75
Interest income
Premium income
Handling charges and commission
income
II. Total cost of sales 487,717,342.59 495,921,774.26
Including: Cost of sales 432,828,651.37 449,540,053.90
Interest expenses
Service charge and commission income
Cash surrender value
Claim expenses-net
Provision for insurance contract
reserves-net
45
2014 Interim Report of Wuhan Boiler Company Limited
Insurance policy dividend paid
Reinsurance expense
Business taxes and surcharges 6,820.58
Distribution expenses 7,661,970.06 6,460,847.20
Administrative expenses 13,225,649.54 13,059,491.70
Financial costs 45,534,113.65 40,200,193.10
Impairment loss -11,539,862.61 -13,338,811.64
Add: gain/(loss) from change in fair
-1,159,562.10 -2,547,295.46
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) 8,021,254.83 -36,187,962.97
Add: non-business income 350,210.10 2,913,166.75
Less: non-business expense 4,544.11 68,734.21
Including: loss from non-current asset
67,734.21
disposal
IV. Total profit (“-” means loss) 8,366,920.82 -33,343,530.43
Less: income tax expense 174,961.83 3,103,374.39
V. Net profit (“-” means loss) 8,191,958.99 -36,446,904.82
Including: net profit achieved by the
merged parties before business mergers
Attributable to owners of the Company 8,214,639.10 -36,438,887.02
Minority interest income -22,680.11 -8,017.80
VI. Earnings per share
(I) Basic earnings per share 0.03 -0.12
(II) Diluted earnings per share 0.03 -0.12
VII. Other comprehensive income
VIII. Total comprehensive income 8,191,958.99 -36,446,904.82
Attributable to owners of the
8,214,639.10 -36,438,887.02
Company
Attributable to minority
-22,680.11 -8,017.80
shareholders
46
2014 Interim Report of Wuhan Boiler Company Limited
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 496,898,159.52 462,281,106.75
Less: cost of sales 432,828,651.37 449,540,053.90
Business taxes and surcharges 6,820.58
Distribution expenses 7,661,970.06 6,460,847.20
Administrative expenses 13,159,097.36 13,052,776.89
Financial costs 45,536,863.38 40,202,887.55
Impairment loss -11,927,185.74 -13,495,147.30
Add: gain/(loss) from change in fair
-1,159,562.10 -2,547,295.46
value (“-” means loss)
Gain/(loss) from investment (“-” means
loss)
Including: income from investment on
associates and joint ventures
II. Business profit (“-” means loss) 8,472,380.41 -36,027,606.95
Add: non-business income 350,210.10 2,913,166.75
Less: non-business expense 4,544.11 68,734.21
Including: loss from non-current asset
67,734.21
disposal
III. Total profit (“-” means loss) 8,818,046.40 -33,183,174.41
Less: income tax expense 174,961.83 3,103,374.39
IV. Net profit (“-” means loss) 8,643,084.57 -36,286,548.80
V. Earnings per share
(I) Basic earnings per share 0.03 -0.12
(II) Diluted earnings per share 0.03 -0.12
VI. Other comprehensive income
VII. Total comprehensive income 8,643,084.57 -36,286,548.80
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao
47
2014 Interim Report of Wuhan Boiler Company Limited
5. Consolidated cash flow statement
Prepared by 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
402,383,146.61 81,525,868.41
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 25,436,725.95 48,045,125.30
Other cash received from operating
172,429.67 1,280,000.00
activities
Sub-total of cash inflow from
427,992,302.23 130,850,993.71
operating activities
Cash paid for goods and services 162,673,836.25 259,358,216.56
Net increase of loans and advances
Net increase of deposit in central
bank, banks and other financial
institutions
Cash paid for original contract
48
2014 Interim Report of Wuhan Boiler Company Limited
claim
Cash paid for interest, fees and
commissions
Cash paid for policy dividend
Cash paid to and for employees 86,196,003.79 86,455,366.68
Cash paid for all types of taxes 5,803,875.00 5,807,751.97
Other cash paid relating to
22,008,462.91 28,427,664.15
operating activities
Sub-total of cash outflows from
276,682,177.95 380,048,999.36
operating activities
Net cash flows from operating
151,310,124.28 -249,198,005.65
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 55,663.20 519,600.00
long-term assets
Net cash received from disposal of
subsidiaries and other operating units
Other cash received relating to
1,342,769.01 152,850.86
investing activities
Sub-total of cash inflows of
1,398,432.21 672,450.86
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 3,156,939.97 1,795,500.78
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
1,160,946.10 434,503.73
investing activities
Sub-total of cash outflows of
4,317,886.07 2,230,004.51
investing activities
49
2014 Interim Report of Wuhan Boiler Company Limited
Net cash flow from investing
-2,919,453.86 -1,557,553.65
activities
3. Cash flows from financing activities
Cash received from investment
Including: cash received from
minority shareholders of subsidiaries
Cash received from borrowings 735,800,000.00 739,000,000.00
Cash received from bonds issuing
Other cash received relating to
financing activities
Sub-total of cash inflows of
735,800,000.00 739,000,000.00
financing activities
Cash paid for repayment of
815,000,000.00 563,600,000.00
borrowings
Cash paid for dividends, profit
56,107,976.66 41,594,100.00
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
871,107,976.66 605,194,100.00
financing activities
Net cash flow from financing
-135,307,976.66 133,805,900.00
activities
4. Effect of foreign exchange rate
534,569.62 2,562,069.04
changes on cash and cash equivalents
5. Net increase in cash and cash
13,617,263.38 -114,387,590.26
equivalents
Add: cash and cash equivalents at
8,283,224.28 131,071,052.35
the beginning of this period
6. Cash and cash equivalents at the end
21,900,487.66 16,683,462.09
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
Unit: RMB Yuan
Item Amount this period Amount last period
50
2014 Interim Report of Wuhan Boiler Company Limited
1. Cash flows from operating activities
Cash received from sales of goods
402,331,645.13 81,505,868.41
or rending of services
Tax returned 25,436,725.95 48,045,125.30
Other cash received from operating
172,429.67 1,280,000.00
activities
Sub-total of cash inflow from
427,940,800.75 130,830,993.71
operating activities
Cash paid for goods and services 162,673,836.25 259,358,216.56
Cash paid to and for employees 86,196,003.79 86,455,366.68
Cash paid for all types of taxes 5,803,875.00 5,807,751.97
Other cash paid relating to
22,007,971.67 28,427,664.15
operating activities
Sub-total of cash outflows from
276,681,686.71 380,048,999.36
operating activities
Net cash flows from operating
151,259,114.04 -249,218,005.65
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 55,663.20 519,600.00
long-term assets
Net cash received from disposal of
subsidiaries and other operating units
Other cash received relating to
1,339,805.28 149,852.41
investing activities
Sub-total of cash inflows of
1,395,468.48 669,452.41
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 3,156,939.97 1,795,500.78
long-term assets
Cash paid for acquisition of
investments
Net cash paid for acquisition of
subsidiaries and other operating units
51
2014 Interim Report of Wuhan Boiler Company Limited
Other cash paid relating to
1,160,946.10 434,199.73
investing activities
Sub-total of cash outflows of
4,317,886.07 2,229,700.51
investing activities
Net cash flow from investing
-2,922,417.59 -1,560,248.10
activities
3. Cash flows from financing activities
Cash received from investment
Cash received from borrowings 735,800,000.00 739,000,000.00
Cash received from issuing bonds
Other cash received relating to
financing activities
Sub-total of cash inflows of
735,800,000.00 739,000,000.00
financing activities
Cash paid for repayment of
815,000,000.00 563,600,000.00
borrowings
Cash paid for dividends, profit
56,107,976.66 41,594,100.00
distribution or interest
Other cash paid relating to
financing activities
Sub-total of cash outflows of
871,107,976.66 605,194,100.00
financing activities
Net cash flow from financing
-135,307,976.66 133,805,900.00
activities
4. Effect of foreign exchange rate
534,569.62 2,562,069.04
changes on cash and cash equivalents
5. Net increase in cash and cash
13,563,289.41 -114,410,284.71
equivalents
Add: cash and cash equivalents at
6,722,513.86 129,536,056.34
the beginning of this period
6. Cash and cash equivalents at the end
20,285,803.27 15,125,771.63
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
52
2014 Interim Report of Wuhan Boiler Company Limited
Amount in this period
Owners’ equity attributable to the Company Total
owners’
Minority
equity
interests
Paid-in
Less:
Paid-in Paid-in Paid-in capital
Item 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)
-1,874,5
297,000 174,659, 39,418, 781,329.8 -1,362,709,
I. Balance at the end of 2013 68,606.4
,000.00 407.46 356.83 9 512.24
2
Plus: change in accounting
policies
Correction of errors in
previous periods
Others
-1,874,5
II. Balance at the beginning of 297,000 174,659, 39,418, 781,329.8 -1,362,709,
68,606.4
this year ,000.00 407.46 356.83 9 512.24
2
III. Increase/ decrease during 8,214,63 -22,680.1 8,191,958.
this report period (“-”for loss) 9.10 1 99
8,214,63 -22,680.1 8,191,958.
(I) Net profit
9.10 1 99
(II) Other comprehensive
incomes
8,214,63 -22,680.1 8,191,958.
Subtotal of (I) and (II)
9.10 1 99
(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
53
2014 Interim Report of Wuhan Boiler Company Limited
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
-1,866,3
IV. Balance at the end of this 297,000 174,659, 39,418, 758,649.7 -1,354,517,
53,967.3
period ,000.00 407.46 356.83 8 553.25
2
Unit: RMB Yuan
Amount last year
Owners’ equity attributable to the Company Total
Minority
owners’
interests
equity
Less:
Paid-in
Treasury
capital
Paid-in Paid-in Paid-in stock
Item (share
Less: Less:
capital Capital capital Capital capital Capital Less:
Treasur Treasur capital)
(share reserve (share reserve (share reserve Treasury
y stock y stock Paid-in
capital) capital) capital) stock
capital
Less:
(share
Treasury
capital)
stock
Paid-in
54
2014 Interim Report of Wuhan Boiler Company Limited
capital
(share
capital)
-1,754,2
297,000 174,659, 39,418, 1,710,551 -1,241,508,
I. Balance at the end of 2012 97,302.2
,000.00 407.46 356.83 .22 986.75
6
Plus: retrospective
adjustment due to business
combinations under the same
control
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 -120,27 -929,221. -121,200,5
this report period (“-”for loss) 1,304.16 33 25.49
-120,27 -929,221. -121,200,5
(I) Net profit
1,304.16 33 25.49
(II) Other comprehensive
incomes
-120,27 -929,221. -121,200,5
Subtotal of (I) and (II)
1,304.16 33 25.49
(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
55
2014 Interim Report of Wuhan Boiler Company Limited
(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
-1,874,5
297,000 174,659, 39,418, 781,329.8 -1,362,709,
IV. Balance at the end of 2013 68,606.4
,000.00 407.46 356.83 9 512.24
2
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
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:
equity capital equity capital equity
Item Treasury Treasury Treasury
attributable (share attributable (share attributable
stock stock stock
to the capital) to the capital) to the
Less: Less: Less:
Company Paid-in Company Paid-in Company
Treasury Treasury Treasury
capital capital
stock stock stock
(share (share
capital) capital)
297,000,00 174,854,30 39,418,356 -1,888,071, -1,376,798,
I. Balance at the end of 2013
0.00 4.12 .83 275.51 614.56
56
2014 Interim Report of Wuhan Boiler Company Limited
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 -1,888,071, -1,376,798,
this year 0.00 4.12 .83 275.51 614.56
III. Increase/ decrease during this 8,643,084. 8,643,084.
report period (“-”for loss) 57 57
8,643,084. 8,643,084.
(I) Net profit
57 57
(II) Other comprehensive
incomes
8,643,084. 8,643,084.
Subtotal of (I) and (II)
57 57
(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
57
2014 Interim Report of Wuhan Boiler Company Limited
1. Withdrawn in this period
2. Used in this period
(VII) Others
297,000,00 174,854,30 39,418,356 -1,879,428, -1,368,155,
IV. Balance at the period-end
0.00 4.12 .83 190.94 529.99
Amount last period
Unit: RMB Yuan
Amount last period
Owners’ Owners’ Owners’ Owners’
equity equity equity equity
Item
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 -1,766,885, -1,255,613,
I. Balance at the end of 2012
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,
this year 0.00 4.12 .83 811.92 150.97
III. Increase/ decrease during this -121,185,4 -121,185,4
report period (“-”for loss) 63.59 63.59
-121,185,4 -121,185,4
(I) Net profit
63.59 63.59
(II) Other comprehensive
incomes
-121,185,4 -121,185,4
Subtotal of (I) and (II)
63.59 63.59
(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
58
2014 Interim Report of Wuhan Boiler Company Limited
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 -1,888,071, -1,376,798,
IV. Balance at the end of 2013
0.00 4.12 .83 275.51 614.56
Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao
III. Company profile
Wuhan Boiler Co., Ltd. (the ‘Company’) was established by Wuhan Boiler (Group) Co., Ltd. (the ‘Group’) with
the exclusive operating assets of boiler manufacturing in September 1997 and listed in B share market in April
1998. When it was first established, the total number of issued shares outstanding of the Company was
297,000,000. The ‘Group’ held 172,000,000 shares accounting for 57.91% of total issued equity, and the public
shareholders (Domestically listed share in foreign currency) held 125,000,000 shares accounting for 42.09% of
total shareholding. The Company's B-shares listed in the Shenzhen Stock Exchange. The Company obtained the
corporate business license documented as Qi Gu Er Zong Fu Zi No.002591 on November 16, 1998. The Group
transferred its 51% shareholding of Wuhan Boiler Co., Ltd to Alstom (China) Investment Co., Ltd in 2007 with
approval of State-owned Assets Supervision and Administration Commission of the State Council. The share
transfer procedures were completed in August 2007. As at December 31, 2013, Alstom (China) Investment Co.,
Ltd., Wuhan Boiler (Group) Co., Ltd. and public shareholders held 151,470,000 shares, 20,530,000 shares and
125,000,000 shares respectively, accounting for 51%, 6.91% and 42.09% of total shareholding respectively.
The register capital of the Company is 297,000,000.00.
No.1 LiuFangYuan Road, Donghu New Technology Development District, Wuhan, Hubei.
Business scope of the Company is researching, designing, developing and manufacturing and selling of types I, II,
III pressure vessels, power station boilers, special boilers, auxiliary boilers, and desulfurization equipment and so
59
2014 Interim Report of Wuhan Boiler Company Limited
on. The Company is a big boiler manufacturing enterprise and the main operating activities are in China. The
major customer markets of the Company are various power plants and power stations. Certain products are
auxiliary equipments and pressure vessels target refineries and chemical enterprises. The Company produces three
categories products: power station boilers, special boilers and other products. Power station boils are used in
power stations. Special boilers are designed and manufactured according to customers’ profit and loss balance
combustion technology or specific requirement of fuel, which is energy saving and environment friendly. The
special boilers include alkali recovery boilers, circulating fluidized bed boilers, bagasse-fired boilers, the stand
vertical-burning boilers, liquid slag-off boilers, and waste heat boilers and so on.
The parent company of the Company is Alstom (China) Investment Co., Ltd. The parent company of Alstom
(China) Investment Co., Ltd.is Alstom Holdings.
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 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
60
2014 Interim Report of Wuhan Boiler Company Limited
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. Preparation methods for consolidated financial statements
(1) Preparation methods 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.
(2) As for the event about purchasing and then selling (or selling and then purchasing) equities of the same
subsidiary, the Company shall disclose relevant accounting treatment methods
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
61
2014 Interim Report of Wuhan Boiler Company Limited
(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
The Company translates the financial statements of its foreign operation in accordance with the following
provisions: a) the asset and liability items in the balance sheets shall be translated at a spot exchange rate ruling at
the balance sheet date. Among the owner's equity items, except the ones as ‘retained earnings’, others shall be
translated at the spot exchange rate ruling at the time when they occurred; b) The income and expense items in the
income statements shall be translated with approximate exchange rate of the spot rate on the transaction occurring
date. The foreign exchange difference arisen from the translation of foreign currency financial statements shall be
presented separately under the owner's equity in the balance sheet. The translation of comparative financial
statements shall be subject to the aforesaid provisions.
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.
(1) Category 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 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
62
2014 Interim Report of Wuhan Boiler Company Limited
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.
(3) Recognition basis and measurement method of financial assets transfer
The Company should terminate recognizing these financial assets when the transform occurs and almost all risk
and return of the financial assets ownership have been transferred to the transferee; The Company should not
terminate recognizing this financial assets if almost all risk and return of the financial assets ownership have been
remained. Essence is more important than form when judging whether the transform meets the requirements of the
financial assets termination recognition conditions mentioned above. The Company divides the transform of
financial assets into entire transfer and partial transfer.
A. If the transfer of an entire financial asset satisfies the conditions for stopping recognition; the difference
between the amounts of the following two items shall be recorded in current profit or loss:
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
63
2014 Interim Report of Wuhan Boiler Company Limited
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
If there is an active market for the financial instrument, the fair value is quoted prices in the active market.
If the market for a financial instrument is not active, the Company establishes fair value by using a valuation
technique.
(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 criteria and withdrawal methods for bad debts provision of accounts receivable
Receivables (including accounts receivable and other receivables etc) are recognized at contract or agreement price.
Receivables which are irrecoverable due to i) debtor’s bankruptcy or liquidation; ii) death of debtor which resulted
in insolvency; iii) long overdue, shall be classified as bad debt loss after going through approval procedures. In case
the Company transfers or mortgages or discounts receivables to financial institutes like bank, according to the terms
in relevant agreements when debtors cannot pay back the amount due and if the Company has the obligation to pay
back the financial institutes, this receivables should be treated as mortgage loan; if the Company has no obligation to
pay back the financial institutes, this receivables should be treated as transference and recognize the loss and gain
arising from the transference. When the receivables are recovered, the difference between the amount recovered and
book value of receivables is charged in the current profit and loss.
64
2014 Interim Report of Wuhan Boiler Company Limited
(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
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
20% 20%
3-4 years
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2014 Interim Report of Wuhan Boiler Company Limited
20% 20%
4-5 years
100% 100%
Over 5 years
In the groups, adopting balance percentage method to withdraw bad debt provision
Applicable √ Inapplicable
In the groups, adopting other methods to withdraw bad debt provision
√ Applicable Inapplicable
Name of Group Remark
Receivables with confirmed letter credit or guarantee from the
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
(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
Inventories include goods purchased raw materials, finished goods, work-in-progress, and goods for processing
on consignment.
(2) Pricing method for outgoing 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
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on categories of the inventory. For inventory related to the products manufactured and sold in the same district,
with same or similar use or purpose, and difficult to account for separately from other items, the provision for
inventory devaluation is provided for on a consolidated basis.
When the factors that influence the decreased bookkeeping of inventory value have disappeared, switch back from
the provision for inventory devaluation amount that previously appropriated and the amount that switched back is
charged to profit or loss of current period.
(4) Inventory system of inventories
Method: Perpetual inventory system
(5) Amortization method of low-value consumption goods and packages
Low-value consumption goods
Amortization method: lump-sum amortization method
Packages
Amortization method: lump-sum amortization method
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.
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2014 Interim Report of Wuhan Boiler Company Limited
In case the long-term equity investment is made by the mode of liability restructure, the fair values of the obtained
equities will be deemed as the initial investment cost.
(2) Subsequent measurement and recognition of profits 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) The basis for determination of joint control or significant influence over investee enterprise
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 and method of provision for impairment loss
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.
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2014 Interim Report of Wuhan Boiler Company Limited
B. For other long-term equity investments, in case the calculation results of receivable amounts indicate that the
receivable amount of this long-term equity investment is less than their book values, the difference will be
confirmed as the asset depreciation losses.
Once the depreciation loss of long-term equity investment is confirmed, they will not be reversed.
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 of fixed assets by 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
Category of fixed assets Useful life (Y) Expected net salvage Annual deprecation
value
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%
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(4) Testing method of impairment and withdrawal method of provision for impairment on fixed assets
At balance sheet date, the Company judges if there is indication to the impairment. If the indications like
continuing decrease in the fixed assets values, or obsolete technologies, damages, long-idle extra exist, net
realizable value must be estimated. When net realizable value of the fixed asset is lower than its book value,
reduce fixed asset’s book value to its net realizable value. The reduced amount is recognized as fixed asset
impairment and charged to current period of profit and loss, and fixed asset impairment must be provided
accordingly. Once fixed asset impairment loss is recognized, it cannot be reversed in future accounting period.
(5) Other explanations
Subsequent expenditures of fixed asset shall be recognized as the cost of fixed assets if the expenditures can bring
in economic benefit to the Company and the expenditures can be measured reliably. If the expenditures are to
replace part of fixed asset, it should deduct the fixed asset’s book value; otherwise it is charged to current period
profit and loss.
15. Construction in progress
(1) Categories of construction in process
Construction in progress of the Company includes constructing property, building installation, equipment
installation, prepaid expenses, as well as individual projects.
(2) Standards and time of transferring construction in process into fixed asset
For the construction in progress, all expenses occurring before they are ready for the use will be the book values
as the fixed assets. In case the construction in progress has been ready for use but the final accounts for
completion have not been handled, from the date when such projects has been ready for use, the Company will
evaluate the values and determine the costs based on the project budgets, prices or actual costs of projects, etc and
the depreciation amount will also be withdrawn; when the final accounts for completion are handled, the
Company will adjust the originally evaluated values subject to the actual costs, but will not adjust the withdrawn
depreciation amount.
(3) Impairment test method and withdrawal method for impairment provision of construction in process
At balance sheet date the Company exams all the construction in progress to judge if there is indication of
impairment. If indications exist: i) long suspension of construction in progress and will not recommence in future
3 years; ii) project under construction has no advantages in technologies and capacity and the economic benefit
brought to the Company is uncertain, the net realizable value should be estimated. If the net realizable value of
construction in progress is lower than its book value, reduce its book value to net realizable value, the reduced
amount is recognized as impairment loss and charged to current period profit and loss, and the construction in
progress impairment is provided accordingly. Once impairment provision of construction in process is recognized,
it should not be reversed in future accounting period.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
In case the borrowing expenses occurring in the Company may directly be attributable to the construction and
productions of assets complying with the capitalization conditions, they will be capitalized and accrued to the
relevant capital costs; other borrowing expenses will be confirmed as the expenses based on the actual amount at
the time of occurrence and accrued to the current profit or loss.
The assets complying with the capitalization conditions mean the assets such as fixed assets, investment real
estates and inventory etc. that need a long time of construction and production activities before they are ready for
use or for sales.
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2014 Interim Report of Wuhan Boiler Company Limited
The borrowing expenses begin to be capitalized under the following circumstances:
A. The asset payment have been made which include the payment such as the paid cashes, transferred
non-currency assets or borne liabilities with the interests to construct or produce the assets complying with the
capitalization conditions;
B. The borrowing expenses have occurred;
C. The necessary construction or production activities to make the assets ready for use or sales have been
launched.
In case during the construction or production period the assets complying with the capitalization conditions are
abnormally suspended and the suspension period exceeds 3 months continuously, the capitalization of borrowing
expenses will also be suspended.
The capitalization of borrowing expenses for the assets that have been constructed or produced and are ready for
use or sales will be stopped.
When parts of the purchased assets or assets whose production satisfies the capitalization conditions are
completed respectively and can be used individually, the capitalization of the borrowing expenses of these parts
will be stopped.
(2) Capitalization period of borrowing costs
The capitalization period means the period from the moment that the borrowing expenses start to be capitalized to
the moment that 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
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2014 Interim Report of Wuhan Boiler Company Limited
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 limited useful life
For intangible asset with finite useful life, the Company estimates useful life of intangible useful life upon
acquisition and amortize it systematically among the useful life, the amortized amount is charged to current period
profit and loss based on benefited item, and the specific amortized amount is cost after estimated residual value.
The accumulated impairment provision should be deducted for intangible asset with impairment provision and
residual value is zero, except that: i) third party commits to purchase the intangible asset; ii) estimated residual
value of intangible asset can be obtained from the active market and the existence of the market at the end of
useful life of the intangible asset is probable.
Item Estimated useful life Basis
Software 3 years Based on the cycle of software update
Proprietary technology 6 years -15 years Contract
Land use right 50 years Law, useful life for industry land is 50 years
(3) Judgment basis of intangible assets with uncertain useful life
For intangible asset with infinite useful life, the Company reviews the useful life and amortization method of
intangible asset. The amortization period and amortization method are changed when useful life and amortization
method are different from pervious estimation.
(4) Withdrawal of impairment provision of intangible assets
Net realizable value is estimated when the indications of impairment exist:
A.The Company estimates net realizable value based on single intangible asset when there is indications of
impairment for that single intangible asset;
B.The Company estimates net realizable value base on the asset group when it is difficult to estimate net
realizable value of single intangible asset;
C. Net realizable value is the higher amount between the net amount of intangible asset fair value minus disposal
expenses and estimated present value of future cash flow.
When net realizable value is lower than its book value, reduce the book value to net realizable value, the deducted
amount is recognized as impairment loss and charged to current period profit and loss, impairment is provided
accordingly.
(5) Criteria of separating the research phase and development phase of internal R&D project
Inapplicable
(6) Calculation of the expenditures of internal R&D project
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.
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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) Recognition criteria of estimated liabilities
When businesses related to external security, pending litigation or arbitration, product quality assurance,
retrenchment plan, contract of loss, reconstruction obligation, disposing obligation of fixed assets and other
contingencies satisfy all the following conditions, the Company will recognize them as liabilities:
A. The obligation is the present obligation of the Company;
B. The performance of such obligation is likely to lead to an outflow of economic benefits;
C. The amount of the obligation can be reliably measured.
(2) Measurement of estimated liabilities
Estimated liabilities shall be initially measured according to the best estimated amount required to be paid when
current obligations are fulfilled.
When determining the best estimated amount, it should take full consideration of the risks, uncertainties and time
value of money related to contingencies.
Best estimated amount is handled under the following circumstances:
A. If the amount required is in a continuous range, and the likelihood of various outcomes within the scope is
same, then the estimated amount is determined according to the median of the range, 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 selling goods
1) Construction contract revenue When the outcome of a construction contract can be estimated reliably,
）a
contract revenue and contract costs associated with the construction contract is recognised as revenue and
expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. The
stage of contract completion is recognized by reference to the ratio of the accumulative actual contract cost to
totally estimated contract cost. The outcome of a construction contract can be estimated reliably when all the
following conditions are satisfied: 1 when the outcome of a construction contract can be estimated reliably, total
）
contract revenue can be measured reliably; 2 It is probable that the economic benefits associated with the contract
）
will flow to the entity; 3 Both the contract costs to complete the contract and the stage of contract completion at
）
the balance sheet date can be measured reliably; and 4 The actual contract costs attributable to the contract can be
）
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2014 Interim Report of Wuhan Boiler Company Limited
clearly identified and reliably measured.
b) When the outcome of a construction contract cannot be estimated reliably and contract costs are expected to be
recoverable, revenue is recognised only to the extent of contract costs incurred that it is probable will be
recoverable. Contract costs are recognised as an expense in the period in which they are incurred. Contract costs
that are not probable of being recovered are recognised as an expense immediately and no revenue is recognised.
c) If the accumulative estimated contract costs exceed the contract revenue, an estimated loss should be
recognized in the current financial period.
(2) Recognition basis of revenue from transferring use rights of assets
Revenue arising from the use by others of the Company’s assets includes interest revenue and royalty revenue.
The Company recognized revenue arising from the use by others of the Company’s assets when (a) it is probable
that the economic benefits associated with the transaction will flow to the Company and (b) the amount of the
revenue can be measured reliably.
(3) Recognition basis of revenue from rendering of services
① Revenue associated with the transaction is recognised by reference to the stage of completion of the
transaction at the balance sheet date. The service revenue is recognised at the balance sheet date according to the
percentage of completion of the services when (i) the total revenue and total cost can be reliably measured, (ii) the
economic benefit pertaining to the service will flow to the Company; (iii) the percentage of completion can be
determined reliably.
② When the outcome of the transaction involving the rendering of services cannot be estimated reliably at the
balance sheet date, revenue is recognised according to the following:
A. When it is probable that the Company will recover the transaction costs incurred, revenue is recognised only
to the extent of the expenses recognised that are recoverable, and the costs incurred are recognised as an expense.
B. When it is not probable that the costs incurred will be recovered, revenue is not recognised and the costs
incurred are recognised as an expense.
(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 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
(1) Recognition of government grants
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2014 Interim Report of Wuhan Boiler Company Limited
No government grants may be recognized unless the following conditions are met simultaneously:
① The company is able to meet the requirements for the government subsidies; and
② The company can receive the government subsidies.
(2) Measurement of government grants
① If a government subsidy is a monetary asset, it shall be measured in the light of the received or receivable
amount; if a government subsidy is a non-monetary asset, it shall be measured at its fair value. If its fair value
cannot be obtained in a reliable way, it shall be measured at its nominal amount.
② The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed
within the useful lives of the relevant assets, and included in the current profits and losses. If the relevant assets
are sold, transferred, obsolete or destroyed before useful lives end, undistributed deferred income shall be
recognized as the current profits and losses of disposal of assets.
The government subsidies pertinent to incomes shall be treated respectively in accordance with the
circumstances as follows:
A. Those subsidies used for compensating the related future expenses or losses of the enterprise shall be
recognized as deferred income and shall be included in the current profits and losses during the period when the
relevant expenses are recognized; or
B. Those subsidies used for compensating the related expenses or losses incurred to the enterprise shall be
directly included in the current profits and losses.
③ If it is necessary to refund any government subsidy which has been recognized, it shall be treated respectively
in accordance with the circumstances as follows:
A. If there is the deferred income concerned, the book balance of the deferred income shall be offset against, but
the excessive part shall be included in the current profits and losses; and
B. If there is no deferred income concerned to the government subsidy, it shall be directly included in the
current profits and losses.
22. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
① 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 recognised 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. Deferred tax assets should be measured at the tax rates that are expected to
apply to the period when the asset is realised or the liability is settled.
② At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in
prior period shall be recognized.
③ The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it s probable
’
that sufficient taxable profit will not be available against which the deductible temporary difference can be utilized,
the Company shall write down the carrying amount of deferred tax asset, or reverse the amount written down later
when it’s probable that sufficient taxable profit will be available.
(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. Operating lease and financial lease
）））） （（（（
1 Accounting treatments of operating lease
Lessee in an operating lease shall treat the lease payment under an operating lease as a relevant asset cost or the
current profit or loss on a straight-line basis over the lease term. The initial direct costs incurred shall be
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2014 Interim Report of Wuhan Boiler Company Limited
recognized as the current profit or loss; Contingent rents shall be charged as expenses in the periods in which they
are incurred. .
Lessors in an operating lease shall present the assets subject to operating leases in the relevant items of their
balance sheet according to the nature of the asset. Lease income from operating leases shall be recognized as the
current profit or loss on a straight-line basis over the lease term; Initial direct costs incurred by lessors shall be
recognized as the current profit or loss; Lessors shall apply the depreciation policy for the similar assets to
depreciate the fixed assets in the operating lease; For other assets in the operating lease , lessors shall adopt a
reasonable systematical method to amortize; Contingent rents shall be charged as expenses in the periods in which
they are incurred.
）））） （（（（
2 Accounting treatments of financial lease
For the lessee, 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 amount of minimum
lease payments should be recorded in long-term account payable, the difference should be recorded as
unrecognized financing charges; The initial direct costs identified as directly attributable to activities performed
by the lessee during the negotiation and signing of the finance lease such as handling fees, legal fees, travel
expenses, stamp tax shall be counted as lease asset value; the unrecognized financing charges shall be apportioned
at each period during the lease term and adopt the effective interest rate method to calculate and confirm the
current financing charge; Contingent rents shall be charged as expenses in the periods in which they are incurred.
When the lessee calculates the present value of the minimum lease payments, for that lessee who can obtain the
interest rate implicit in the lease, the discount rate shall be the interest rate implicit in the lease; otherwise the
discount rate shall adopt the interest rate specified in the lease agreement. If the lessee cannot get the interest rate
implicit in the lease and there is no specified interest rate in the lease agreement, the discount rate shall adopt the
current bank loan interest rate.
Lessees shall depreciate the leased assets with the depreciation policy which is consistent with the normal
depreciation policy for similar assets. If there is reasonable certainty that the lessee will obtain ownership by the
end of the lease term, the depreciation shall be allocated to the useful life of the asset. If there is no reasonably
certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be depreciated over the
shorter of the lease term and its useful life.
At the inception of financial lease, lessor of the financial lease shall record the sum of the minimum lease
payments and initial direct costs as the financing lease accounts receivable, and also record the unguaranteed
residual value; recognize the difference between the total minimum lease payments , initial direct
costs ,unguaranteed residual value and the sum of the present value as the unrealized financing income; the
unrealized financing income shall be distributed to each period over the lease term; adopt the actual interest rate to
calculate the current financial income; Contingent rents shall be in the periods in which they are incurred.
(3) Accounting treatment for those sale and lease-back
Inapplicable
24. Assets held for sales:
(1) Recognition criteria of the assets held for sale
The Non-Current Assets which meet the following conditions will be classified as assets held for sales by the
company:
① The entity has made the resolution in disposing the non-current assets.
③ The entity has signed the irrevocable transfer agreement with the assignee.
④ The sale transaction is highly probable to be completed within one year.
(2) Accounting treatments of assets held for sales
For the fixed assets held for sales, the entity shall adjust the predicted net residual value of this fixed asset to make
the predicted net residual value of this fixed asset to reflect the amount of its fair value less costs to sell, but it
76
2014 Interim Report of Wuhan Boiler Company Limited
shall not exceed the original book value of fixed assets at the time when it meets the conditions of held for sales.
The difference between the original book value and the adjusted predicted net residual value shall be treated as
loss in assets and presented in profit or loss of current period. The fixed assets held for sales shall not count the
depreciation but shall be measured at the lower of its carrying amount and the fair value less costs to sell.
The other non-current assets such as intangible assets which meet the conditions of held for sales shall be treated
in accordance to the above principles.
25. Hedging accounting
The company uses fair value hedging for its hedging.
(1) For derivative instruments as the hedging instrument, the gain 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
gain 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 gain or loss resulted from the hedged risk of the hedged items is included in the profit/loss of the current
period. The book value of the hedged items is adjusted at the same time.
(3) In a fair value hedging of a firm commitment of a purchased asset or assumed liability, the accumulated
amount in the change of fair value (profit or loss being confirmed) caused by the hedging risk of this firm
commitment should be used to adjust the initial confirmed amount of the purchased assets of assumed liability of
the firm commitment.
(4) When the following conditions are satisfied, the company stop using the fair value hedging:
A. Hedging instruments are expired, sold, contract are terminated or executed.
B. The hedge no longer satisfies the conditions for hedging accounting.
C. Cancellation of the designation of the hedging.
26. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the report period?
□ Yes No √
）））） （（（（
1 Changes of accounting policy
There are no changes in the accounting policies for the previous financial year.
）））） （（（（
2 Changes in accounting estimate
There are no changes in the accounting policies for the previous financial year.
27. 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 √
28. Other main accounting policies and estimates as well as compilation method of financial statements
None.
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2014 Interim Report of Wuhan Boiler Company Limited
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 ％
Enterprise income tax Taxable income 25 ％
Education surtax Taxable VAT, taxable business tax 3 ％
Local education surtax Taxable VAT, taxable business tax 2 ％
Watercourse and embankment tax 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 approval
None
3. Other explanation
None
VI. Business combination and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
Balance
of
Actual
parent
amount The The Include
compan
of Other proporti proporti d in Deducti
Register Minorit y’s
Subsidia Register Busines Busines investm essential on of on of consolid ble
Type ed y equity
ries ed place s nature s scope ents at investm holding voting ated minority
capital interest after
the ent shares rights stateme interests
deductin
period-e %
） （ ） （ % nt
g the
nd
differen
ce that
78
2014 Interim Report of Wuhan Boiler Company Limited
loss of
minority
interests
exceed
equity
obtained
by
minority
sharehol
ders
Boiler,
energy
environ
mental
protecti
on
products
, Steel
structur
es,
technolo
Wuhan
gy
Lan
research
Xiang
of heat
Power
energy
Environ
Limited 586 products
mental
liability Wuluo Manufa 20,000, and its 24,984, 758,649
Protecti 95% 95% Yes 0.00 0.00
Compan Rd., cturing 000 accessor 500.00 .78
on
y Wuhan ial
Technol
equipme
ogy
nt,
Compan
design,
y
technica
Limited
l
Consult
ancy,
technica
l
service,
sales of
develop
ed
products
, energy
79
2014 Interim Report of Wuhan Boiler Company Limited
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. Special purpose entities or operating entities with control right formed by entrusted operation or lease
None
3. Explanation on changes in consolidated scope
Applicable √ Inapplicable
80
2014 Interim Report of Wuhan Boiler Company Limited
4. Subsidiaries that newly combined into consolidation scope in the report period
None
5. Business combination under same control during the report period
None
6. Business combination not under same control during the report period
None
7. Subsidiaries reduced by selling equities without control right during the report period
None
8. The counter purchases in the report period
None
9. Mergers in the report period
None
10. Exchange rates of major items in financial statements for foreign 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:: -- -- 21,900,487.66 -- -- 8,283,224.28
RMB -- -- 21,746,077.13 -- -- 7,876,756.35
USD 4,932.13 6.1528 30,346.40 2,000.93 6.0969 12,199.47
EUR 14,778.65 8.3946 124,060.85 46,830.98 8.4189 394,265.34
JPY 54.00 0.0608 3.28 54.00 0.0578 3.12
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2014 Interim Report of Wuhan Boiler Company Limited
Other monetary funds: -- -- 1,831,775.99 -- -- 1,831,672.83
RMB -- -- 1,831,775.99 -- -- 1,831,672.83
Total -- -- 23,732,263.65 -- -- 10,114,897.11
Note: Closing balance of monetary funds increased by 134.63% compared to last year, mainly due to the increase of collection from
customer in this report period.
2. Notes receivable
(1) Category of Notes receivable:
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance 1,500,000.00 15,000,000.00
Total 1,500,000.00 15,000,000.00
Note: Closing balance of the note receivable decreased 90% compared to prior period, which is mainly due to the payment to
suppliers by endorsing bank notes which were received from customers.
(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
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
ytitne gniussI ecnaussi fo etaD etad gniripxE tnuomA krameR
State Grid Energy Hebu
Coal and Electric Power 2014/01/23 2015/01/22 13,000,000.00
Co., Ltd
Binzhou MOVEVER
2014/05/12 2014/11/12 10,000,000.00
Dicastal Wheel Co., Ltd.
Shandong Chuangfeng
Metal Technology Co., 2014/03/31 2014/09/29 8,000,000.00
Ltd.
Shandong innovative
metal Polytron 2014/05/08 2014/11/08 9,500,000.00
Technologies Inc
82
2014 Interim Report of Wuhan Boiler Company Limited
Tengda northwest
2014/02/26 2014/08/26 3,000,000.00
Ferroalloy Co., Ltd.
Total -- -- 43,500,000.00 --
Notes of bank acceptance bill that already discounted or pledged
None
3. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable with
significant single amount
25,780,000. 25,780,000. 25,780,00 25,146,400.0
for which bad debt 9.60% 100.00% 6.99% 97.54%
00 00 0.00 0
provision separately
accrued
Accounts receivable for which bad debt provisions are made on the group basis
Accounts receivable for
219,746,92 99,513,895. 313,941,2 106,236,757.
which bad debt provisions 81.82% 45.29% 85.13% 33.84%
0.64 43 26.09 73
are made on aging basis
219,746,92 99,513,895. 313,941,2 106,236,757.
Subtotal of the groups 81.82% 45.29% 85.13% 33.84%
0.64 43 26.09 73
Accounts receivable with
insignificant single
23,042,460. 22,572,460. 29,042,46 16,004,460.0
amount for which bad debt 8.58% 97.96% 7.88% 55.11%
00 00 0.00 0
provision separately
accrued
268,569,38 147,866,35 368,763,6 147,387,617.
Total -- -- -- --
0.64 5.43 86.09 73
Notes to category of accounts receivable:
Note: the monetary standards of provision for bad debts of the individually significant receivables is top 5 account receivables at year
end, which he impairment test is carried on individually. For significant receivables, If there are substantive evidences indicating that
a receivable has been impaired, a provision for bad debts should be made; If a receivable is found not to be individually impaired, it
should be included in a group of similar credit risk characteristics receivables and a collective assessment of impairment should be
83
2014 Interim Report of Wuhan Boiler Company Limited
made. Receivables which are not significant, but still need individually recognition of bad debt provision, if there are substantive
evidences shown there is a special impairment of insignificant receivables, then they need individually impairment tests.
Note: Closing balance of the account receivable decreased 45.48% compared to prior period, mainly due to collection of accounts
receivable which were booked in prior period.
Accounts receivable with significant single amount for which bad debt provision separately accrued
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Closing balance Bad debt provision Proportion Notes
The Company is
required to bear part
of the subsequent
Dongfang Xiwang Baotou Xitu
25,780,000.00 25,780,000.00 100.00% costs and thus the
Aluminium Co., Ltd.
receivable amount is
not expected to be
fully recoverable.
Total 25,780,000.00 25,780,000.00 -- --
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Balance Balance
Aging of receivables
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Within 1 year (including 1 year)
including ： -- -- -- -- -- --
Within 1 year (including
116,751,385.90 53.13% 3,502,866.03 190,066,260.86 60.54% 5,701,987.83
1 year)
Sub-total (Within 1 year) 116,751,385.90 53.13% 3,502,866.03 190,066,260.86 60.54% 5,701,987.83
1-2 years(including 2
7,057,000.00 3.21% 211,710.00 9,038,000.00 2.88% 271,140.00
year)
2-3 years(including 3
30,195.98 0.01% 1,811.76 2,047,451.61 0.65% 122,847.10
year)
138,538.90 0.06% 27,707.78 242,676.22 0.08% 48,535.24
3-4 years(including 4
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2014 Interim Report of Wuhan Boiler Company Limited
year)
4-5 years(including 5
15,568,237.30 4.96% 3,113,647.46
year)
Above 5 years 95,769,799.86 43.58% 95,769,799.86 96,978,600.10 30.89% 96,978,600.10
Total 219,746,920.64 -- 99,513,895.43 313,941,226.09 -- 106,236,757.73
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
Item Closing balance Bad debt provision Provision Reasons for provision
%
Datang Liaoyuan Power Plant 10,010,000.00 10,010,000.00 100.00% Deduction for product quality issues
The Company is required to bear part of
Guodian Lanzhou Thermal the subsequent costs and thus the
500,000.00 30,000.00 6.00%
power Co., Ltd. receivable amount is not expected to be
fully recoverable.
Gansu Datang Xigu Thermal The retention money is difficult to be
11,952,460.00 11,952,460.00 100.00% received due to product quality issues.
power Co., Ltd.
Gansu Diantou Jinchang The retention money is difficult to be
580,000.00 580,000.00 100% fully received.
Generating Co., Ltd.
Total 23,042,460.00 22,572,460.00 -- --
(2) Accounts receivable reversed or collected in the report period
Unit: RMB Yuan
Bad debt provision
Basis for bad Amount reversed or
Item Reason for reversed or collected before reversal or
debt provision collected
collection
Datang Liaoyuan Power The receivable amount has been Deduction for
Plant recovered. product quality 200,000.00 1,000,000.00
issues
Guodian Lanzhou Thermal The receivable amount has been The Company is
power Co., Ltd. recovered. required to bear
part of the
240,000.00 4,000,000.00
subsequent costs
and thus the
receivable
85
2014 Interim Report of Wuhan Boiler Company Limited
amount is not
expected to be
fully recoverable.
Gansu Datang Xigu The receivable amount has been The retention
Thermoelectric Co., Ltd. recovered. money is difficult
to be received 1,000,000.00 1,000,000.00
due to the quality
issues.
Shuangyashan Thermal The receivable amount has been Over 5 years
175,000.00 175,000.00
Power Co. Ltd. recovered.
Xinjiang Huadian Changji The receivable amount was
Over 5 years
Thermal power Phase Co.,
Ⅱ recovered. 200,000.00 200,000.00
Ltd.
Shanxi Lu’an Yuwu Thermal The receivable amount was
Over 5 years 590,000.00 590,000.00
power Co., Ltd. recovered.
Tianjin Dagu Chemical The receivable amount was
Over 5 years 193,800.24 193,800.24
Industry Co., Ltd.. recovered.
Anshan Xinli Energy Co., The receivable amount was Over 5 years
50,000.00 50,000.00
Ltd. recovered.
Total
2,648,800.24 --
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single
None
(3) The write-off accounts receivable
Applicable √ Inapplicable
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting rights of
the Company
Applicable √ Inapplicable
(5) Top 5 customers of accounts receivables
Unit: RMB Yuan
The relationship Proportion(
Company Amount Age
with the Company %)
Alstom Power Inc. Affiliated 89,667,285.86 within 1
89,697,481.84 year, 30,195.98 for 2-3 33.40%
years
Shanxi Zhengxin Group Co., Ltd. Non-affiliated 39,820,000.00 Over 5 years 14.83%
Dongfang Xiwang Baotou Xitu Aluminium Non-affiliated Over 5 years
24,820,000.00 9.24%
Co., Ltd.
Shandong Luneng Materials Group Co., Ltd. Non-affiliated 23,290,000.00 Within 1 year 8.67%
Henan Zhongmai Yongan Power Co. Ltd. Non-affiliated 14,325,000.00 Over 5 years 5.33%
Total 191,952,481.84 71.47%
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2014 Interim Report of Wuhan Boiler Company Limited
(6) The amounts due from related parties
Unit: RMB Yuan
Company The relationship with the Company Amount Proportion
Wuhan Boiler (Group) Engineering & A subsidiary of the second largest shareholder
8,649,095.32 3.22%
Technology Co., Ltd.
ALSTOM Boiler Deutschland GmbH A subsidiary of the ultimate holding company 138,538.90 0.05%
ALSTOM Power Inc. A subsidiary of the ultimate holding company 89,697,481.84 33.40%
Total 98,485,116.06 36.67%
(7) Information of accounts receivable that terminated recognition
Applicable √ Inapplicable
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount of
assets and liabilities arising from further involvement
Applicable √ Inapplicable
4. Other receivables
(1)Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Balance Balance
debts debts
Category
Propor Propor Propor Propor
tion
Amount tion Amount tion Amount tion Amount (%)
(%) (%) (%)
Other accounts
receivable that is
individually
21.75 100.00 23.73 100.00
significant for which 26,673,222.30 26,673,222.30 26,673,222.30 26,673,222.30
% % % %
provisions for bad
debts separately
accrued
Other accounts receivable that provisions for bad debts by group
Group 1 (using aging 60.35 42.90 68.08 32.26
74,024,078.94 31,757,748.35 76,552,614.14 24,698,506.61
analysis) % % % %
Group 1 (No bad debt 19,241,237.80 15.69 6,564,340.29 5.84%
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2014 Interim Report of Wuhan Boiler Company Limited
provision for account %
receivables)
76.04 34.05 73.92 29.72
Subtotal of group 93,265,316.74 31,757,748.35 83,116,954.43 24,698,506.61
% % % %
Other accounts
receivable that is
individually 100.00 100.00
2,715,725.95 2.21% 2,715,725.95 2,636,308.95 2.34% 2,636,308.95
insignificant for which % %
bad debts provision
separately accrued
Total 122,654,264.99 -- 61,146,696.60 -- 112,426,485.68 -- 54,008,037.86 --
Notes for categories of other accounts receivable:
Note: the monetary standards of provision for bad debts of the individually significant other receivables is top 5 account receivables
at year end, which he impairment test is carried on individually. For significant receivables, If there are substantive evidences
indicating that a receivable has been impaired, a provision for bad debts should be made; If a receivable is found not to be
individually impaired, it should be included in a group of similar credit risk characteristics receivables and a collective assessment of
impairment should be made. Receivables which are not significant, but still need individually recognition of bad debt provision, if
there are substantive evidences shown there is a special impairment of insignificant receivables, then they need individually
impairment tests.
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√ Applicable Inapplicable
Unit: RMB Yuan
Bad debt Propor
Item Closing balance Note
provision tion
100.00 Projects are suspended and the amount is not
Shanxi Zhenxing Group 6,722,635.46 6,722,635.46
% expected to be recoverable
Shandong Luneng Material 100.00 Projects are suspended and the amount is not
19,950,586.84 19,950,586.84
Group Co. Limited % expected to be recoverable
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 balance Opening balance
Aging of receivables Balance Bad debt
Balance
Amount Proportion provision Amount Proportion
88
2014 Interim Report of Wuhan Boiler Company Limited
(%) (%)
Within 1 year (including 1 year)
Including:
Within 1 year (including 1 year) 1,089,166.03 1.47% 32,674.98 4,051,432.93 5.29% 121,542.99
Sub-total (Within 1 year) 1,089,166.03 1.47% 32,674.98 4,051,432.93 5.29% 121,542.99
490,287.61 0.66% 14,708.62 290,684.66 0.38% 8,720.54
1-2 years(including 2 year)
388,529.69 0.52% 23,311.77 154,400.94 0.20% 9,264.06
2-3 years(including 3 year)
50,461,303.27 68.17% 10,092,260.64 59,371,395.74 77.56% 11,874,279.15
4-5 years(including 5 year)
Above 5 years 21,594,792.34 29.17% 21,594,792.34 12,684,699.87 16.57% 12,684,699.87
Total 74,024,078.94 -- 31,757,748.35 76,552,614.14 -- 24,698,506.61
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
Individually insignificant receivables requiring impairment test, and providing provision for doubtful debt ： :
√ Applicable Inapplicable
Unit: RMB Yuan
Bad debt Provision
Item Balance Reason
provision percentage
3RC Company Limited Bankruptcy
336,604.05 336,604.05 100.00%
Pingtai Power Development
424,514.70 424,514.70 100.00% Project suspended
Co.,LTD
Henan Dengfeng Xiangyang
32,430.77 32,430.77 100.00% Project suspended
Power Co.,Ltd
Qindao Houhai Themal Power
518,227.71 518,227.71 100.00% Project suspended
Co.,Ltd
Jiangsu Wangda Paper Co.,Ltd 723,504.31 723,504.31 100% Project suspended
Qingtongxia Aluminium
5,736.41 5,736.41 100% Project suspended
Co.,Ltd
Henan Zhongmai Power Difficult to execute the court judge
173,411.00 173,411.00 100.00%
Co.,Ltd
Shanmenxia Huineng Themal Difficult to execute the court judge
143,897.00 143,897.00 100.00%
Power Co.,Ltd
Shanxi Zhenxin Group Co.,Ltd 357,400.00 357,400.00 100.00% Difficult to execute the court judge
Total 2,715,725.95 2,715,725.95 -- --
89
2014 Interim Report of Wuhan Boiler Company Limited
(2)Information of other accounts receivable reversed or recovered in the report period
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable:
None
(3) Information of other accounts receivable written off in the report period
None
(4) Other 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
Name of company Provision for bad Provision for
Amount Amount
debt doubtful debts
Wuhan Boiler (Group) Co., Ltd. 61,030,488.11 20,743,485.17 61,030,488.11 16,353,377.52
Total 61,030,488.11 20,743,485.17 61,030,488.11 16,353,377.52
(5)Nature or details of other significant accounts receivable
Unit: RMB Yuan
Proportion of the
Name of company Amount Nature or details of the amount
total (%)
Wuhan Boiler Group Co., Ltd. 61,030,488.11 compensation for the relocation of the old factory 49.76%
Total 61,030,488.11 -- 49.76%
Note: Account receivable of RMB 61,030,488.11 from the second largest shareholder, Wuhan Boiler (Group) Co., Ltd., is mainly the
compensation for the relocation of the old factory.
(6)Information of top five other accounts receivable
Unit: RMB Yuan
Company Relationship with the Company Amount Aging Proportion of the
total (%)
Wuhan Boiler (Group) The company's second-largest 50,358,753.68 for
Co., Ltd. shareholder 4-5 years;
61,030,488.11 49.76%
10,671,734.43 for
more than 5 years
Shandong Luneng Non-affiliated Over 5 years
Material Group Co. 19,950,586.84 16.27%
Limited
Binzhou Beihai New Non-affiliated Within 1 year
11,188,034.20 9.12%
Material Co., Ltd.
Donghu Development Non-affiliated Over 5 years
10,774,265.00 8.78%
Zone Committee
Shanxi Zhengxin Group Non-affiliated 6,722,635.47 Over 5 years 5.48%
90
2014 Interim Report of Wuhan Boiler Company Limited
Company Relationship with the Company Amount Aging Proportion of the
total (%)
Co., Ltd
Total 109,666,009.62 89.41%
(7)Information of the amounts due from related parties
Unit: RMB Yuan
Name of company The relationship with the Company Amount Proportion of the total
(%)
ALSTOM (Beijing) Engineering & A subsidiary of the ultimate holding
14,074.73 0.01%
Technology Co., Ltd. company
ALSTOM (Wuhan) Engineering & A subsidiary of the ultimate holding
36,200.01 0.03%
Technology Co., Ltd. company
ALSTOM Boiler Deutschland GmbH A subsidiary of the ultimate holding
388,529.69 0.32%
company
ALSTOM Power Inc. A subsidiary of the ultimate holding
36,157.65 0.03%
company
ALSTOM Boiler France A subsidiary of the ultimate holding
617,080.03 0.50%
company
ALSTOM (Switzerland) Ltd A subsidiary of the ultimate holding
181,509.31 0.15%
company
Wuhan Boiler (Group) Co., Ltd. Second largest shareholder 61,030,488.11 49.76%
Wuhan Boiler (Group) Yuntong Co., Ltd. Subsidiary of Second largest
10,171.01 0.01%
shareholder
Wuhan Boiler (Group) Valve Co., Ltd. Subsidiary of Second largest
240,571.49 0.20%
shareholder
Total 62,554,782.03 51.01%
(8)Information of other accounts receivable that terminated recognition
Applicable √ Inapplicable
(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
Applicable √ Inapplicable
(10)Government subsidy recognized according to the accounts receivable during the report period
Applicable √ Inapplicable
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2014 Interim Report of Wuhan Boiler Company Limited
5. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging Proportion
Amount Proportion (%) Amount
(%)
70,764,501.60 83.35% 27,601,803.69 41.60%
Within 1 year (including 1 year)
773,760.86 0.91% 20,893,261.63 31.49%
1-2 years(including 2 years)
6,323,286.62 7.45% 8,236,834.17 12.41%
2-3 years(including 3 years)
7,039,247.72 8.29% 9,621,149.44 14.50%
Over 3 years
84,900,796.80 -- 66,353,048.93 --
Total
Note: Prepayment over 1 year is mainly due to the outsourcing service fee which is not settled yet.
(2) Information of the top 5 prepayment
Unit: RMB Yuan
Name of company Relationship with the Amount Aging Reasons
Company
Vallourec Deutschland GmbH. Non-affiliated Project has not
46,383,023.99 2014-4-30
yet completed
Shandong Luneng Guangda Steel Structure Non-affiliated Project has not
6,278,800.00 2014-4-9
Co., Ltd. yet completed
Shanghai Songwei Steel Structure Co., Ltd. Non-affiliated Project has not
5,413,409.34 2014-5-16
yet completed
Changzhi Qinghua Steel Structure Co., Ltd. Non-affiliated Project has not
4,277,499.98 2013-1-22
yet completed
Zhejiang JIULI Hi-tech Metals Co., Ltd. Non-affiliated Project has not
3,392,191.89 2014-6-24
yet completed
Total 65,744,925.20
Note: Prepayment above are for material purchasing.
(3) Information about amount due from shareholders with more than 5% (including 5%) of the voting
shares of the Company in prepayment
Unit: RMB Yuan
ytitne fo emaN ecnalab gnisolC ecnalab gninepO
92
2014 Interim Report of Wuhan Boiler Company Limited
ecnalab kooB danboifsoivtonrupomtabeedhT ecnalab kooB dab fo tnuoma ehT
noisivorp tbed
ALSTOM Power Inc. 1,225,600.00
ALSTOM Technical Services
13,260,000.00
(Shanghai) Co., Ltd
Total 1,225,600.00 13,260,000.00
(4) Notes of prepayment
Note: Closing balance of prepayment increased 27.95% as compared to opening, which is mainly due to the increase of project
material purchasing in this report period.
6. Inventory
(1) Category
Unit: RMB Yuan
Closing balance Opening balance
Categories Impairment of Impairment of
Original value Book value Original value Book value
inventories inventories
Raw materials 125,533,989.90 30,487,786.60 95,046,203.30 105,746,499.12 54,992,196.80 50,754,302.32
Construction
72,227,056.69 15,148,311.24 57,078,745.45 114,012,396.06 30,353,632.92 83,658,763.14
contract assets
Total 197,761,046.59 45,636,097.84 152,124,948.75 219,758,895.18 85,345,829.72 134,413,065.46
(2) Provision for falling price of inventories
Unit: RMB Yuan
Decrease
Categories Opening balance Increase Closing balance
Reversal Written off
Raw materials 54,992,196.80 24,504,410.20 30,487,786.60
Construction contract
30,353,632.92 12,854,299.50 28,059,621.18 15,148,311.24
assets
Total 85,345,829.72 12,854,299.50 28,059,621.18 24,504,410.20 45,636,097.84
(3) Details of provision for falling price of inventories
Unit: RMB Yuan
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2014 Interim Report of Wuhan Boiler Company Limited
Proportion of reversal of provision for
The bases of provision for impairment of Reasons for
Item impairment of inventories to closing
inventories reversal
balance
1.Raw materials According to the net realizable value
2.Construction contract Expected loss from contract loss
assets
Note1: The write-off of the raw materials is due to the disposal of previously impaired raw materials and transferring to project costs.
Note2: The construction contract assets reversal is due to release of contract loss provision as the project completion or close.
7. Fixed assets
(1) Fixed assets details
Unit: RMB Yuan
Decrease in
Opening book Closing book
Item Increase in the report period the report
balance balance
period
1. Cost 950,164,237.91 2,090,550.15 725,824.44 951,528,963.62
Property and buildings 522,569,108.13 522,569,108.13
Machineries 389,074,666.38 1,464,672.42 469,653.01 390,069,685.79
Vehicles 1,143,874.64 108,810.00 1,035,064.64
Electronic equipments and office
37,376,588.76 625,877.73 147,361.43 37,855,105.06
equipments
Withdraw
Decrease in Closing book
Opening book Increase in the al in the
-- the report balance in current
balance report period report
period period
period
2.Accumulated depreciation 242,680,516.73 17,583,286.60 668,789.34 259,595,013.99
Property and buildings 54,754,247.36 6,542,352.70 61,296,600.06
Machineries 157,346,881.78 9,383,106.95 412,617.91 166,317,370.82
Vehicles 834,559.87 49,741.07 108,810.00 775,490.94
Electronic equipments and office
29,744,827.72 1,608,085.88 147,361.43 31,205,552.17
equipments
-- Opening book Closing balance in
balance current period
3.The net book value of fixed
707,483,721.18 -- 691,933,949.63
assets
Property and buildings 467,814,860.77 -- 461,272,508.07
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2014 Interim Report of Wuhan Boiler Company Limited
Decrease in
Opening book Closing book
Item Increase in the report period the report
balance balance
period
Machineries 231,727,784.60 -- 223,752,314.97
Vehicles 309,314.77 -- 259,573.70
Electronic equipments and office
7,631,761.04 -- 6,649,552.89
equipments
4. Impairment of fixed assets 2,167,630.33 -- 2,110,595.23
Property and buildings 0.00 -- 0.00
Machineries 2,048,338.23 -- 1,991,303.13
Vehicles 61,574.28 -- 61,574.28
Electronic equipments and office
57,717.82 -- 57,717.82
equipments
5.Carrying amount 705,316,090.85 -- 689,823,354.40
Property and buildings 467,814,860.77 -- 461,272,508.07
Machineries 229,679,446.37 -- 221,761,011.84
Vehicles 247,740.49 -- 197,999.42
Electronic equipments and office
7,574,043.22 -- 6,591,835.07
equipments
Note: Depreciation of fixed assets is RMB 17,583,286.60; RMB 1,114,535.63 was transferred into fixed assets from construction in
progress.
(2) Temporary idle fixed assets
Applicable √ Inapplicable
(3) Fixed assets leased in from financing lease
Applicable √ Inapplicable
(4) Fixed assets leased out from operation lease
Applicable √ Inapplicable
(5) Information of hold-for-sale fixed assets at period-end
Applicable √ Inapplicable
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2014 Interim Report of Wuhan Boiler Company Limited
(6) Information of fixed assets failed to accomplish certification of property
Applicable √ Inapplicable
8. Construction in progress
(1) List of construction in progress
Unit: RMB Yuan
Closing balance Opening balance
Item
Book value Impairment Net book value Book value Impairment Net book value
Equipment for
New base of the 1,147,993.53 1,147,993.53 2,245,077.87 2,245,077.87
Company
Joint workshop III 4,535,641.50 4,535,641.50
Total 5,683,635.03 5,683,635.03 2,245,077.87 2,245,077.87
(2) Significant changes in construction in progress
Unit: RMB Yuan
Includin
Project g:
Capitaliz
Transferr 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
assets ge of interest interest funding
rate (%)
budget this
period
Joint
worksho
p
Self-poss
III(Painti 59,707,7 4,535,64 4,535,64
0.00 0.00 7.60% 7.60% 0.00 0.00 essed
ng and 11.00 1.50 1.50
fund
packing
worksho
p)
59,707,7 4,535,64 4,535,64
Total 0.00 0.00 -- -- 0.00 0.00 -- --
11.00 1.50 1.50
Note: The closing balance of the construction in progress increased by 153.16% as compared to the beginning of the period, which is
mainly due to construction of new plant.
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2014 Interim Report of Wuhan Boiler Company Limited
(3) Impairment provision of construction in progress
None
(4) Details of procedures of significant construction in progress
Item Project process Notes
Joint workshop III( Painting and packing
Under construction
workshop)
(5) Notes of construction in progress
9. Intangible assets
(1) Information
Unit: RMB Yuan
Category Opening balance Increase Decrease Closing balance
151,474,945.39 51,282.05 0.00 151,526,227.44
Cost
41,599,836.72 41,599,836.72
1.Land use right
93,251,576.87 93,251,576.87
2.Proprietary technology
16,623,531.80 51,282.05 16,674,813.85
3.Software
77,609,032.78 2,591,778.31 80,200,811.09
Accumulated amortization
4,719,211.42 415,946.90 5,135,158.32
1.Land use right
56,708,929.16 1,977,550.21 58,686,479.37
2.Proprietary technology
16,180,892.20 198,281.20 16,379,173.40
3.Software
73,865,912.61 -2,540,496.26 71,325,416.35
Carrying amount of intangible assets
36,880,625.30 -415,946.90 36,464,678.40
1.Land
36,542,647.71 -1,977,550.21 34,565,097.50
2.Proprietary technology
442,639.60 -146,999.15 295,640.45
3.Software
Impairment of intangible assets
1.Land use right
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2014 Interim Report of Wuhan Boiler Company Limited
Category Opening balance Increase Decrease Closing balance
2.Proprietary technology
3.Software
73,865,912.61 -2,540,496.26 71,325,416.35
Net book value of intangible assets
36,880,625.30 -415,946.90 36,464,678.40
1.Land use right
36,542,647.71 -1,977,550.21 34,565,097.50
2.Proprietary technology
442,639.60 -146,999.15 295,640.45
3.Software
Amortization was of RMB 2,591,778.31 in the report period.
(2) Development project spending
Not applicable.
10. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
Deferred tax assets and liabilities that already recognized
Unit: RMB Yuan
Item Closing balance Opening balance
Deferred tax assets:
52,358,165.78 52,533,127.61
Impairment of assets
52,358,165.78 52,533,127.61
Total
List of unrecognized deferred income tax assets
Unit: RMB Yuan
Item Closing balance Opening balance
84,463,276.85 115,006,013.88
Deductible temporary differences
964,474,179.69 964,474,179.69
Deductible losses
1,048,937,456.54 1,079,480,193.57
Total
Deductible losses of unrecognized deferred income tax assets will due next year
Unit: RMB Yuan
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2014 Interim Report of Wuhan Boiler Company Limited
Year Closing balance Opening balance Notes
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 169,083,295.20 169,083,295.20
2018 34,199,920.82 34,199,920.82
2019 0.00
964,474,179.69 964,474,179.69
Total
List of taxable differences and deductible differences
Unit: RMB Yuan
Temporary difference
Item
Closing balance Opening balance
1. Deductible temporary difference
192,173,756.68 177,611,247.21
① Provision for bad debt
15,148,311.24 30,353,632.92
② Impairment of inventories
2,110,595.23 2,167,630.33
③ Impairment of fixed assets
209,432,663.15 210,132,510.46
Total
(2)Deferred income tax assets and liabilities are listed as the net value after offset
List of the mutual deduction of deferred income tax assets and deferred income tax liabilities
Unit: RMB Yuan
Deferred deductible Deferred deductible
Deferred income tax Deferred income tax
or taxable temporary or taxable temporar
assets and liabilities assets and liabilities
Item differences at the end y differences at the
at the end of the at the opening of the
of the period opening of the per
period period
iod
Deferred tax assets 52,358,165.78 52,533,127.61
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2014 Interim Report of Wuhan Boiler Company Limited
11. List of provision for assets impairment
Unit: RMB Yuan
Item Opening balance Increase in this Decrease in this period Closing balance
period Reversal Written off
1.Provision for bad
201,395,655.59 27,010,592.38 19,393,195.94 209,013,052.03
debt
2. Impairment of
85,345,829.72 12,854,299.50 28,059,621.18 24,504,410.20 45,636,097.84
inventories
3. Impairment of
2,167,630.33 57,035.10 2,110,595.23
fixed assets
Total 288,909,115.64 39,864,891.88 47,452,817.12 24,561,445.30 256,759,745.10
Note 1: Write-off of inventories impairment is caused by the disposal of previously impaired raw material and material requisition for
project.
Note 2: The write-off for impairment of fixed assets is caused by the disposal of the previously impaired fixed
assets.
12. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
0.00 12,137.16
Hedging Instrument
12,137.16
Total
Note: The hedging instrument decreased by 100% in current period. It was mainly due to decrease of hedging loss for un-expired
forward contracts in this period.
13. Short-term loan
(1)Category of short-term loans
Unit: RMB Yuan
Item Closing balance Opening balance
100
2014 Interim Report of Wuhan Boiler Company Limited
200,000,000.00 200,000,000.00
Credit Loan
1,350,000,000.00 1,429,200,000.00
Entrusted Loan
1,550,000,000.00 1,629,200,000.00
Total
Note: The entrusted loan is offered by the controlling shareholder ALSTOM (China) Investment Co., Ltd, and the maximum amount
is 2.2billion RMB. The loan interest rate is 10% discount of the PBoC benchmark interest rate.
(2)Short-term loans due but not repaid
None
14. Notes payable
Unit: RMB Yuan
Category Closing amount Opening amount
66,546,750.00 0.00
Bank Acceptance
Total 66,546,750.00 0.00
Note: The notes payable increased by 100.00% this year. It’s mainly due to the increase of payment with bank notes in this period.
15. Accounts Payable
(1)Information
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 197,739,261.74 100,795,912.76
1 to 2 years (including 2 years) 20,408,745.33 27,883,016.34
2 to 5 years (including 5 years) 45,680,152.00 55,633,589.47
Over 5 years 8,747,835.08 9,483,151.44
Total 272,575,994.15 193,795,670.01
Note: The closing balance of the account payable increased by 40.65% compared to the beginning of the period, it’s mainly due to
the increase of raw material purchasing for Yanbu and Tai'an projects in this period.
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2014 Interim Report of Wuhan Boiler Company Limited
(2)The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of the
Company or related parties.
Unit: RMB Yuan
Company Closing balance Opening balance
20,215.17 795,968.75
ALSTOM (Switzerland) Ltd
962,850.89 949,656.90
Alstom Boiler Deutschland GmbH
10,614.19 9,247.07
ALSTOM Power Energy
488,787.14 443,650.07
ALSTOM Power Inc.
12,152.98 11,281.33
ALSTOM s.r.o
6,705,750.00 31,966,529.92
ALSTOM Technical Services (Shanghai)
17,440.01 17,440.01
Wuhan Boiler (Group) Yuntong Co., Ltd.
321,360.26 321,360.26
Wuhan Boiler (Group) Valve Co., Ltd.
19,125,755.73 19,125,755.73
Wuhan Boiler (Group) Engineering & Technology Co., Ltd.
27,664,926.37 53,640,890.04
Total
(3)Notes of the large amount of accounts payable aging over one year
Note: The accounts payable aging over 1 year were mainly the retrofit processing fees of sub-contracts, which will be settled after the
expiration of warranty period of boiler products.
16. Advance from customers
(1)Information
Unit: RMB Yuan
Item Closing amount Opening amount
Sales accounts payable 671,248,752.51 803,079,341.99
Total 671,248,752.51 803,079,341.99
(2)Advanced from customers from shareholders with more than 5% (including 5%) of the voting shares of
the Company or related parties
Unit: RMB Yuan
102
2014 Interim Report of Wuhan Boiler Company Limited
Name of company Closing balance Opening balance
ALSTOM Estonia AS 2,585,607.15 2,583,944.83
ALSTOM Power Inc. 576,578,527.57 593,306,874.69
ALSTOM Boiler Deutschland GmbH 61,242,881.45 92,987,393.31
ALSTOM Boiler France 6,484,866.61
Total 646,891,882.78 688,878,212.83
(3)Notes of significant advance from customers aging over 1 year
Note: Advanced from customers with aging over 1 year, were un-billed construction contract payment on projects under execution.
They will be off-set after related project billings are issued.
17. Payroll payable:
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
1.Salary, bonus, allowance, subsidy 10,018,409.69 66,655,032.95 73,655,823.53 3,017,619.11
2. Social insurance 12,800,666.95 12,800,666.95
including 1)Medical insurance
： 3,190,256.75 3,190,256.75
2)Retirement pension 8,246,361.46 8,246,361.46
3)Unemployment insurance 794,006.36 794,006.36
4)Injury insurance premium 290,978.23 290,978.23
5)Pregnancy insurance 279,064.15 279,064.15
3. Housing fund 3,307,525.40 3,307,525.40
4.Other 37,046,124.09 2,743,257.86 2,594,890.45 37,194,491.50
including 1)Labour union fee and
： 884,163.86 1,600,752.88 1,267,058.04 1,217,858.70
employee education fee
2)Other 36,161,960.23 1,142,504.98 1,327,832.41 35,976,632.80
Total 47,064,533.78 85,506,483.16 92,358,906.33 40,212,110.61
The labor union fee and employee education fee is RMB 1,217,858.70, and the non-monetary benefits are RMB 000, as well as the
compensation for terminating the labor contract is RMB 000.
Arrangement of the expected issue time and amount of payroll payment
Closing balance of salary, bonus, allowance, and subsidy was mainly accrued 2014 bonus which will be paid in June of next year.
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2014 Interim Report of Wuhan Boiler Company Limited
18. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT -26,590,684.79 -33,308,981.85
Personal income tax 183,633.13 -1,500.31
Stamp taxes 223,751.74 5,492.25
Land use taxes 391,112.01 782,224.02
Property Taxes 2,520,985.50
Total -25,792,187.91 -30,001,780.39
Notes of taxed payable, if the local tax authorities permitted each branch office and factory to mutual adjust the taxes payable, should
state the taxes calculation process.
19. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Interest payable on short-term borrowings 3,156,100.00 12,276,456.15
Total 3,156,100.00 12,276,456.15
Note: The closing balance of the interest payable decreased by 74.29% compared to the beginning of the period, which is mainly due
to payment of interest which was booked in prior year.
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 --
Note: Dividends payable is the unpaid dividend of the company’s subsidiary Wuhan Lanxiang Energy Environmental Protection
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2014 Interim Report of Wuhan Boiler Company Limited
Technology Co., Ltd.
21. Other payable
(1) Information
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 13,385,659.49 22,151,259.85
1 to 2 years (including 2 years) 8,901,560.06 3,367,243.96
2 to 5 years (including 5 years) 12,094,803.40 15,810,907.79
Total 34,382,022.95 41,329,411.60
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting shares of
the Company or related parties
Unit: RMB Yuan
Name of entity Closing balance Opening balance
Wuhan Boiler Group Co., Ltd. 974,056.13 974,056.13
ALSTOM (Switzerland) Ltd 877,884.08 1,342,660.11
ALSTOM (China) Investment Co., Ltd. 1,370,818.29 3,117,745.60
ALSTOM IS&T SAS 1,590,088.94 4,394,244.13
ALSTOM Power Ltd 87,948.88 88,376.46
ALSTOM Holdings France 15,066.97 21,043.34
Total 4,915,863.29 9,938,125.77
(3) Notes of the other large amount accounts payable aged more than 1 year.
None
(4) Details of the significant amount of other accounts payable
Item Amount The nature or content
ALSTOM (China) Investment Co.,Ltd 1,370,818.29 GITO service fee
ALSTOM IS&T SAS 1,590,088.94 ITSAS service fee
Wuhan Boiler (Group) Co., Ltd. 974,056.13 Service fee
ALSTOM (Switzerland) Ltd 877,884.08 PMX fee
Total 4,812,847.44
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2014 Interim Report of Wuhan Boiler Company Limited
22. Non-current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Deferred income 12,175,848.00 12,314,736.00
Hedged items 301,291.41 79,585.63
Unrecognized finance cost -7,191,954.11 -7,342,568.75
Total 5,285,185.30 5,051,752.88
Note: The unrecognized financing cost is the discount fees of employee retirement benefits in accordance with the regulations
stipulated in ‘Employee Benefits’ Accounting Standards.
Liabilities involving government subsidies
Unit: RMB Yuan
Newly increase Amount recorded Related to
Opening Other
Item subsidy of into non-operating Closing balance assets/Related to
balance changes
report period income income
Gains from land use
right of corporate’s new 12,314,736.00 138,888.00 12,175,848.00 Related to assets
factory
Total 12,314,736.00 138,888.00 12,175,848.00
23. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Reserves Closing
Issuing new
balance Bonus shares transferred to Others Subtotal balance
shares
shares
Total shares 297,000,000.00 297,000,000.00
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
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2014 Interim Report of Wuhan Boiler Company Limited
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
-1,874,568,606.42 --
adjustments
Opening balance of retained earnings after
-1,874,568,606.42 --
adjustments
Add: Net profit attributable to owners of the
8,214,639.10 --
Company
Closing retained earnings -1,866,353,967.32 --
List of adjustment of opening retained earnings:
1) RMB000 opening retained earnings was affected by retroactive adjustment conducted on Accounting Standards of Business
Enterprises and its relevant new regulations.
2) RMB000 opening retained earnings was affected by changes on accounting policies.
3) RMB000 opening retained earnings was affected by correction of significant accounting errors.
4) RMB000 opening retained earnings was affected by changes in combination scope arising from same control.
5) RMB000 opening retained earnings was affected by a total of other adjustment.
Notes: as for IPO companies, chief on accumulated profits if it were enjoyed by new and original shareholders with resolutions of
shareholders’ general meeting before public offering. The Company shall chief on audited profits of dividends accounts payable that
was shared by original shareholders.
27. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item Report period Same period of last year
Sales of main business 494,874,319.77 459,095,994.70
Other operating income 2,023,839.75 3,185,112.05
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2014 Interim Report of Wuhan Boiler Company Limited
Cost of sales 432,828,651.37 449,540,053.90
(2) Main business (Classified by industry)
Unit: RMB Yuan
Report period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Boiler Industry 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
Total 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
(3) Main business (Classified by product)
Unit: RMB Yuan
Report period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Boiler and accessories sales 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
Total 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
(4) Main business (Classified by area)
Unit: RMB Yuan
Report period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Domestic 120,942,552.42 136,461,886.76 107,191,166.56 124,808,687.05
Overseas 373,931,767.35 296,094,730.63 351,904,828.14 322,841,719.14
Total 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
(5) List of the top five customers
Unit: RMB Yuan
Customers Sales of main business Proportion of total revenue (%)
Customers under same control of
323,978,084.50 65.20%
ALSTOM
Binzhou Beihai New Materials
83,170,022.05 16.74%
Co., Ltd.
PT INDAH KIAT PULP
50,304,260.19 10.12%
&PAPER ,TBK
Guodian Taian thermal power
30,480,978.65 6.13%
Co.,Ltd
China Nuclear Energy Industry
4,161,861.09 0.84%
Corp.
108
2014 Interim Report of Wuhan Boiler Company Limited
Total 492,095,206.48 99.03%
Notes:
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 1,834,523,770.27 940,084,188.42 143,446,893.77 -1,083,531,082.19
Binzhou Beihai New
478,632,478.63 381,251,344.12 63,492,813.64 -412,820,512.81
Materials Co., Ltd.
Gansu Diantou
Fixed price contract Jinchang Generating 258,974,358.97 226,431,351.31 19,468,209.03 -233,803,418.83
Co., Ltd
Guodian Taian
thermal power 238,120,000.00 102,460,139.48 -8,024,476.18 -70,739,181.76
Co.,Ltd
Alstom power
387,794,073.77 484,724,153.26 -97,753,771.91 -386,872,458.38
Systems Gmbh
Others 957,094,805.59 251,382,687.91 -14,113,022.67 -232,856,799.52
Subtotal 4,155,139,487.23 2,386,333,864.50 106,516,645.68 -2,420,623,453.49
Recognized
Incurred cumulative cumulative gross
Cost plus contract Contract item Amount Settled amount
costs profit (Losses
presented by “-”)
29. Business tax and surcharges
Unit: RMB Yuan
Item Report period Same period of last year Calculation and payment standard
Urban maintenance and construction
3,672.62
tax
Education surtax 1,573.98
Dyke fee 524.66
Local education surtax 1,049.32
Total 6,820.58
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2014 Interim Report of Wuhan Boiler Company Limited
30. Selling expenses
Unit: RMB Yuan
Item Report period Same period of last year
Wages and bonus 2,190,507.97 2,807,571.42
Social insurance 294,604.92 279,941.16
Travel expenses and entertainment
568,057.69 990,795.60
expenses
Housing fund 78,482.00 74,754.00
Depreciation 164,468.68 219,852.58
Rental fee 90,302.42 92,769.85
Energy cost 49,758.65 62,720.21
Consult fees 68,982.25 244,900.00
IT related cost 151,267.38 206,461.99
Office expenses 70,481.70 125,147.22
Tendering and Other expenses 3,935,056.40 1,355,933.17
Total 7,661,970.06 6,460,847.20
31. Administration expenses
Unit: RMB Yuan
Item Report period Same period of last year
Wages and bonus 6,911,186.08 5,076,221.61
Social insurance 701,245.31 550,492.88
Housing property tax and land use right 603,378.15 2,794,834.86
Travel expenses and entertainment
1,058,659.07 779,606.29
expenses
Housing fund 161,038.00 166,769.00
Other 3,790,142.93 3,691,567.06
Total 13,225,649.54 13,059,491.70
32. Financial expenses
Unit: RMB Yuan
Item Report period Same period of last year
Interest expenses 46,987,620.51 42,694,100.00
Less: Interest income 1,342,769.01 152,954.29
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2014 Interim Report of Wuhan Boiler Company Limited
Exchange net losses -1,422,298.59 -4,493,748.02
Bank charges 1,160,946.10 864,362.75
Amortization unrecognized financing
150,614.64 1,288,432.66
charges
Total 45,534,113.65 40,200,193.10
33. Gains and losses from changes in fair value
Unit: RMB Yuan
Source Report period Same period of last year
Hedging gains and losses -1,159,562.10 -2,547,295.46
Total -1,159,562.10 -2,547,295.46
Notes: The 54.48% increase of gains and losses from changes in fair value is mainly due to the decrease of loss arising from the
un-expired hedging instrument and hedged items.
34. Impairment losses
Unit: RMB Yuan
Item Report period Same period of last year
I. Bad debts losses 7,617,396.44 -13,338,811.64
II. Inventory falling price losses -19,157,259.05
Total -11,539,862.61 -13,338,811.64
35. Non-operating gains
(1) Information
Unit: RMB Yuan
The amount included in the
Item Report period Same period of last year current non-recurring gains
and losses
Total gains from disposal of non-current
59,767.52 401,164.36 59,767.52
assets
Including: Gains from disposal of fixed
59,767.52 401,164.36 59,767.52
assets
Government subsidies 288,888.00 538,888.00 288,888.00
Indemnity and fine incomes 1,957,808.82
Other 1,554.58 15,305.57 1,554.58
Total 350,210.10 2,913,166.75
Note: The non-operating gains decreased 87.98%. It’s mainly due to the decrease of indemnity from vendors in the report period.
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2014 Interim Report of Wuhan Boiler Company Limited
(2) List of government subsidies recorded into current profits and losses
Unit: RMB Yuan
Related to Whether belong to
Item Report period Same period of last year assets/Related to non-recurring profit and
income loss
City Finance Bureau’s
one business one policy 400,000.00 Related to income Yes
incentives in 2012
District Finance Bureau’s
Industrial Rapid Growth
150,000.00 Related to income Yes
contribution award in
2013
New factory revenue
amortization of land use 138,888.00 138,888.00 Related to assets Yes
rights
Total 288,888.00 538,888.00
36. Non-operating expenses
Unit: RMB Yuan
Amount record into
Item Report period Same period of last year non-recurring profit and
loss
Loss on disposal of non-current assets 67,734.21
Including: Loss on disposal of fixed assets 67,734.21
Other 4,544.11 1,000.00 4,544.11
Total 4,544.11 68,734.21 4,544.11
Note: The non-operating expenses decreased by 93.39%. It’s mainly due to the decrease of asset disposal in the report period.
37. Income tax expense
Unit: RMB Yuan
Item Report period Same period of last year
Adjustment of income tax 174,961.83 3,103,374.39
Total 174,961.83 3,103,374.39
Note: The income tax expense decreased by 94.36% as compared to prior period, it’s mainly due to the decrease of reduction of the
temporary deductible differences resulted from the release of contract loss provision.
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2014 Interim Report of Wuhan Boiler Company Limited
38. Calculation procedure of basic earnings per share and diluted earnings per share
A Basic earnings per share=P
． ÷ S=8,214,639.10÷297,000,000.00=0.03
S=S0+S1+Si×Mi÷MO-Sj×Mj÷MO-Sk
In the equation above, P represents the net profit or profit after deducting extraordinary gain or loss attributable to ordinary
shareholders. S represents the weighted average number of ordinary shares during the period. S0 represents the number of ordinary
shares at the beginning of the period. S1 represents the number of additional ordinary shares issued on capital surplus transfer or
share dividends appropriation; Si represents the number of ordinary shares issued in exchange for cash or issued as a result of the
conversion of a debt instrument to ordinary shares during the period. Sj represents reduced number of ordinary shares such as shares
buy back. Sk represents the number of a reverse share split. MO represents the months during the period. Mi represents the months
from the following month after issuing incremental shares to the end of the period. Mj represents the months from the following
month after reducing shares to the end of the period.
B. Diluted Earnings Per Share =[P+(Diluted potential common stock dividends-convert cost) /(S0 S1 Si Mi MO Sj Mj
÷ × – ÷ × ＋ ＋
MO Sk+ The weighted average number of incremental ordinary shares on warrants, options, convertible debt and so on
– ） .
In the equation above, P represents the net profit or profit after deducting extraordinary gain or loss attributable to ordinary
shareholders. When calculating the diluted Earnings per Share, company considered in sequence from dilutive potential ordinary
shares to get the lowest earnings per share.
For business combination under the same control during the reporting period and the combing party issuing new shares as
consideration, when calculating the EPS at the end of reporting period, company should treat these shares as normal outstanding
shares at the beginning of combining date (Weighting coefficient is 1). When calculating the EPS during the comparing period,
company should treat these shares as normal outstanding shares at the beginning of comparing period. When calculating the EPS
after deducting extraordinary gain or loss at the end of reporting period, company should treat these new shares as issued one month
after the combing date. When calculating the EPS after deducting extraordinary gain or loss during the comparing period, company
should ignore these new shares (Weighting coefficient is 0).
For business combination under the same control at the accounting period and the combining party issuing new shares as
consideration, when calculating the EPS at the accounting period or the comparing period, company should use the basic EPS
method to treat these new shares.
Unlisted company purchases listed company by issuing share to become a listed company indirectly, when calculating the EPR
during the reporting period:
Weighted average number of ordinary shares during the period = (Weighted average number of shares from the beginning of
reporting period to the end of the month which combination happened) + (Weighted average number of shares from the next month
of the combination to the end of the reporting period)
Weighted average number of shares from the beginning of reporting period to the end of the month which combination happened =
Weighted average number of shares of the acquirer (subsidiary in law) × Share exchange rate in the acquisition agreement ×number
of months from the beginning to the month which acquisition happens ÷ number of months during the period
Weighted average number of shares from the next month of the combination to the end of the reporting period = Weighted average
number of shares of the acquiree (parent in law) ×number of months from the next month to the end of period ÷ number of months
during the period
Unlisted company purchases listed company by issuing share to become a listed company indirectly, when calculating the EPR
during the comparing period:
Weighted average number of ordinary shares during the period = Weighted average number of shares of the acquirer (subsidiary in
law) × Share exchange rate in the acquisition agreement.
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2014 Interim Report of Wuhan Boiler Company Limited
39. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Amount
District Finance Bureau’s Industrial Rapid Growth contribution award in
150,000.00
2013
Refunded training fee 20,875.00
Refund of individual income tax charge fee 1,554.67
Total 172,429.67
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Amount
IT service fees 923,778.91
Information Disclosure fees of listed Companies 195,632.04
Office expenses 1,303,074.69
Security fees 685,680.00
Insurance expenses 25,388.94
Meal fees 521,615.00
Travel and other expenses 3,782,037.27
Car fares 17,400.00
Conference expenses 45,782.30
Detect costs 650,502.00
Gas fees 1,244,496.93
Training expenses 6,433.31
Fuel costs 375,000.00
Cleaning Charges 13,500.00
Audit fee 750,000.00
Water charges 326,924.99
Commuting costs 1,773,567.00
General repairs & maintenances 1,401,031.37
Property costs 815,750.00
Postage expenses 127,846.05
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2014 Interim Report of Wuhan Boiler Company Limited
Transportation expenses 249,459.09
Consult fees 4,601,245.45
Rental expenses 1,356,589.86
Others 815,727.71
Total 22,008,462.91
(3) Other cash received relevant to investment activities
Unit: RMB Yuan
Item Amount
Interests income 1,342,769.01
Total 1,342,769.01
(4) Other cash paid relevant to investment activities
Unit: RMB Yuan
Item Amount
Bank charges 1,160,946.10
Total 1,160,946.10
(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 Report period Same period of last year
1. Reconciliation of net profit to net cash flows generated
-- --
from operations ：
Net profit 8,191,958.99 -36,446,904.82
Add: Provision for assets impairments -32,149,370.54 -18,314,348.11
Depreciation of fixed assets, oil-gas assets and productive
17,583,286.60 20,037,873.38
biological assets
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2014 Interim Report of Wuhan Boiler Company Limited
Amortization of intangible assets 2,591,778.31 3,294,227.40
Losses/gains on disposal of property, intangible asset and
-59,767.52 -333,430.15
other long-term assets (gains: negative)
Losses/gains from variation of fair value (gains: negative) 1,159,562.10 2,547,295.46
Financial cost (income: negative) 44,373,167.55 40,200,193.10
Decrease in deferred tax assets (increase: negative) 174,961.83 3,103,374.39
Decrease in inventory (increase: negative) 21,997,848.59 38,828,506.15
Decrease in accounts receivable from operating activities
83,540,433.05 160,057,049.64
(increase: negative)
Increase in accounts payable from operating activities
3,906,265.32 -462,171,842.09
(decrease: negative)
Net cash flows generated from operating activities 151,310,124.28 -249,198,005.65
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of Cash 21,900,487.66 16,683,462.09
Less: opening balance of cash 8,283,224.28 131,071,052.35
The net increase in cash and cash equivalents 13,617,263.38 -114,387,590.26
(2) Relevant information of acquisition or disposal of subsidiaries and other operation entities in the
report period
Unit: RMB Yuan
Supplemental information Report period Same period of last year
I. Relevant information on acquisition of subsidiaries and
-- --
other operation entities:
II. Relevant information on disposal of subsidiaries and
-- --
other operation entities
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Report period Same period of last year
I. Cash 21,900,487.66 8,283,224.28
Bank deposit on demand 21,900,487.66 8,283,224.28
III. Closing balance of cash and cash equivalents 21,900,487.66 8,283,224.28
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2014 Interim Report of Wuhan Boiler Company Limited
41. Notes of statement of shareholders’ equity
Notes of issues such as name of project that made adjustment in closing balance of 2013, amount that adjusted and retroactive
adjustment generated from enterprises combination under the same control:
Applicable √Inapplicable
VIII. Related Party Relationships and Transactions
1. Information of the parent company of the Company
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
Invest in
5F of the
accordance
Qiankun
with laws
Building,
Exclusivel in the
ALSTOM Controllin No.6 of
y foreign- areas
(China) g sharehol the Dominique USD ALSTOM 71092378-
owned ent which are 51% 51%
Investment der Santunli Pouliquen 60,904,400 Holdings 2
erprise allowed to
th
Co., Ltd. 6 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,
Wuhan
energy and
Lanxiang No. 586 in
Controlling Limited environmen
Energy Wuluo
shareholde liability Yang tal
Environmen Road, 20,000,000 95% 95% 73753132-4
r company Guowei protection
tal Wuchang
(domestic) products,
Technology District
steel,
Co., Ltd.
energy
117
2014 Interim Report of Wuhan Boiler Company Limited
products
and their
auxiliary
equipment
technology
research,
design,
technology
consulting,
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 Boiler France
controller
Subsidiary of the Company’s ultimate
ALSTOM Boiler Deutschland GmbH
controller
Subsidiary of the Company’s ultimate
ALSTOM Power Boiler GmbH
controller
Subsidiary of the Company’s ultimate
ALSTOM Power Energy
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 Power Ltd
controller
118
2014 Interim Report of Wuhan Boiler Company Limited
Subsidiary of the Company’s ultimate
ALSTOM s.r.o
controller
ALSTOM Holdings Company’s ultimate controller
Subsidiary of the Company’s ultimate
ALSTOM Power Systems GmbH
controller
Subsidiary of the Company’s ultimate
ALSTOM (Switzerland) Ltd
controller
ALSTOM (Wuhan) Engineering Subsidiary of the Company’s ultimate
77459437-5
Technology Co., Ltd. controller
ALSTOM (Beijing) Engineering Subsidiary of the Company’s ultimate
Technology Co., Ltd. controller
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
ALSTOM (China) Investment Co., Ltd. The largest shareholder of the Company 71092378-2
4. Related party transactions
(1) Goods purchased and service received
Unit: RMB Yuan
Rule of price Report period Last period
setting and
Related parties Details of transaction
decision Proportio Proportio
Amount Amount
n (%) n (%)
procedures
ALSTOM Technical According to the
Purchasing raw
Services (Shanghai) trade fair market 2,754,914.53 0.95% 32,600,000.00 12.56%
materials
Co., Ltd. price
According to the
Wuhan Boiler Group Purchasing boiler
trade fair market 149,832.26 0.06%
Valve Co., Ltd. accessories
price
119
2014 Interim Report of Wuhan Boiler Company Limited
According to the
Alstom Power Purchasing raw
trade fair market 11,683.46 0.00%
Energy materials
price
Sales and service provided
Unit: RMB Yuan
Rule of price Report period Last period
setting and
Related parties Details of transaction
decision Proportio Proportio
Amount Amount
n (%) n (%)
procedures
According to the
ALSTOM Estonia
Sales of products trade fair market 6,476,140.55 1.41%
AS
price
According to the
ALSTOM Boiler
Sales of products trade fair market 1,747,720.70 0.38%
Deutschland GmbH
price
ALSTOM (Wuhan) According to the
Engineering & Labor service trade fair market 819,431.21 44.23% 613,248.06 69.84%
Technology Co., Ltd. price
ALSTOM Technical According to the
Services (Shanghai) Sales of spare parts trade fair market 348,915.00 0.07%
Co., Ltd. price
ALSTOM Power According to the
INC. Sales of products trade fair market 289,738,109.43 58.55% 343,145,161.33 74.74%
price
ALSTOM Boiler According to the
France Sales of products trade fair market 1,565,133.39 0.32%
price
According to the
Alstom power
Sales of products trade fair market 32,325,926.69 6.53%
Systems Gmbh
price
According to the
ALSTOM
Sales of service trade fair market 171,235.20 9.24%
(Switzerland) Ltd
price
Wuhan Boiler Group According to the
Engineering Sales of products trade fair market 2,187,944.16 0.44%
Technology Co., Ltd price
(2) Information of related party trusteeship/contract
None
120
2014 Interim Report of Wuhan Boiler Company Limited
(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 Report period Last period
ALSTOM (Switzerland) Ltd Software support fees of PMX 778,170.74 964,140.00
ALSTOM (Switzerland) Ltd Software Application Fees of 264,907.14 193,597.75
PDM etc.
ALSTOM IS&T SAS ITSAS fees 2,417,798.45 2,701,242.97
ALSTOM (China) Investment ITSSC service fees 1,709,997.38 1,825,682.37
Co., Ltd.
ALSTOM (China) Investment Training fees 27,950.00
Co., Ltd.
ALSTOM Boiler Deutschland Project service fees 437,659.50
GmbH
Beizhong ALSTOM (Beijing) Training fees 10,000.00
electric equipment Co., Ltd.
ALSTOM Boiler France Training fees 44,516.58
ALSTOM (Wuhan) Project Testing fees 100,000.00
Engineering & Technology Co.,
Ltd.
Note: The controlling shareholder ALSTOM (China) Investment Co., Ltd entrusted China construction bank to grant loans to the
company, with a total amount 1.35billion RMB. The loan interest rate is 10% discount of PBoC benchmark interest rate. The actual
interest cost incurred in the first half of 2014 is 41,220,953.84 RMB.
5. Amounts due from/to related parties
Amount due from related parties
Unit: RMB Yuan
Name Related party Closing balance Opening balance
121
2014 Interim Report of Wuhan Boiler Company Limited
Book value Bad debt provision Book value Bad debt provision
Wuhan Boiler Group
Accounts receivable Engineering 8,649,095.32 4,968,818.28 4,854,995.28 4,854,995.28
Technology Co., Ltd.
Accounts receivable ALSTOM Power Inc 89,697,481.84 2,692,154.79 115,157,792.48 3,455,587.32
ALSTOM Boiler
Accounts receivable 138,538.90 27,707.78 129,576.22 25,915.24
Deutschland GmbH
Wuhan Boiler
Other accounts receivable 61,030,488.11 20,743,485.17 61,030,488.11 16,353,377.52
(Group) Co., Ltd.
Wuhan Boiler Group
Other accounts receivable 240,571.49 166,668.63 240,571.49 48,114.30
Valve Co., Ltd.
Wuhan Boiler
Other accounts receivable (Group) Yuntong Co., 10,171.01 2,034.20 10,171.01 2,034.20
Ltd.
ALSTOM Boiler
Other accounts receivable 617,080.03 18,512.40 617,080.03 18,512.40
France
ALSTOM
Other accounts receivable 181,509.31 5,445.28
(Switzerland) Ltd
ALSTOM Boiler
Other accounts receivable 388,529.69 23,311.78 388,420.68 16,284.65
Deutschland GmbH
ALSTOM (Wuhan)
Other accounts receivable Engineering 36,200.01 1,086.00 245,749.37 7,372.48
Technology Co., Ltd
ALSTOM (Beijing)
Other accounts receivable Engineering & 14,074.73 422.24 14,074.73 422.24
Technology Co., Ltd.
Other accounts receivable ALSTOM Power Inc. 36,157.65 1,084.73 36,157.65 1,084.73
ALSTOM (Shanghai)
Prepayment Engineering 13,260,000.00
Technology Co., Ltd.
Prepayment ALSTOM Power Inc. 1,225,600.00
Amount due to related parties
Unit: RMB Yuan
Name Related party Closing balance Opening balance
Wuhan Boiler (Group)
Accounts payable 17,440.01 17,440.01
Yuntong Co., Ltd.
Accounts payable Wuhan Boiler Group Valve
321,360.26 321,360.26
Co., Ltd.
Accounts payable Wuhan Boiler Group 19,125,755.73 19,125,755.73
122
2014 Interim Report of Wuhan Boiler Company Limited
Engineering Technology Co.,
Ltd.
Accounts payable ALSTOM Technical Services
6,705,750.00 31,966,529.92
(Shanghai) Co., Ltd.
Accounts payable ALSTOM Boiler Deutschland
962,850.89 949,656.90
GmbH
Accounts payable ALSTOM Power Inc 488,787.14 443,650.07
Accounts payable ALSTOM s.r.o 12,152.98 11,281.33
Accounts payable ALSTOM (Switzerland) Ltd 20,215.17 795,968.75
Accounts payable ALSTOM Power Energy 10,614.19 9,247.07
Advance from customers ALSTOM Estonia AS 2,585,607.15 2,583,944.83
Advance from customers ALSTOM Boiler Deutschland
61,242,881.45 92,987,393.31
GmbH
Advance from customers ALSTOM Power Inc. 576,578,527.57 593,306,874.69
Advance from customers ALSTOM Boiler France 6,484,866.61
Wuhan Boiler (Group) Co.,
Other accounts payable 974,056.13 974,056.13
Ltd.
ALSTOM (China) Investment
Other accounts payable 1,370,818.29 3,117,745.60
Co., Ltd.
Other accounts payable ALSTOM IS&T SAS 1,590,088.94 4,394,244.13
Other accounts payable ALSTOM (Switzerland) Ltd 877,884.08 1,342,660.11
Other accounts payable ALSTOM Power Ltd 87,948.88 88,376.46
Other accounts payable ALSTOM Holdings 15,066.97 21,043.34
IX. Contingency
1. Contingent liabilities and its fiscal effect arising from unsettled lawsuit or arbitration
(1) . In November 2001, Shenzhen Wangda Caiyin Packaging Co., Ltd. and the company signed a boiler supply contract which
contract No. is 2001 Dianxiao 011. In September 2003, two parities reached a supplemental agreement which stipulated that Jiangsu
Wangda Paper Co., Ltd. (referred to ‘Jiangsu Wangda’) shall perform the rights and obligations of contract. In February 2004, after
the company received the advance deposit, the company organized the work of designing, production and expanding purchase. In
November 2004, Jiangsu Wangda required the company to delay the delivery date and stopped paying the remaining payments,
which result in the suspension of this project until now. In April 2011, Jiangsu Wangda sent a letter to the company, in which it
required rescission of the contract and return of the advance payment. However, the company maintained, due to a large amount of
123
2014 Interim Report of Wuhan Boiler Company Limited
cost arising from organization of design, production and expanding purchase in this project, the company agreed to terminate the
contract on the basis of no refund of advance deposit and compensation of the loss, whilst Jiangsu Wangda disagreed on the
company’s opinion. Due to the disagreement of rescission of the contract by both parties, Jiangsu Wangda took a legal action to the
intermediate people’s court of Wuhan. Until the reporting date, this case is still in the trial of the intermediate people’s court of
Wuhan.
The company will safeguard the legitimate rights and interests of the company through legal actions. The above matters will not be
expected to have a significant impact to the company’s financial position.
(2) . On June 28th 2013, ‘amendments to constitution of Wuhan Boiler Co., Ltd’ (referred to ‘amendments to constitution ’) was
approved at annual general meeting of shareholders held in 2012. The main points of modified content include: Article 74, the Power
of Attorney shall be issued respectively for each shareholder meeting , shall not be accredited for long-term; the proxy shall not
delegate to others; if the proxy who is a shareholder accepts the authority of five or more than five shareholders, the proxy shall collet
the voting rights based on the relevant requirements of proxy solicitation system of the company and go through the relevant
procedures; the proxy who is not a shareholder cannot accept the authority of five or more than five shareholders except the solicitor.
Article 80, the solicitor is the independent director of the Board of Directors of the company, or the shareholder who individually or
jointly holds more than 1 per cent of the issued shares of the company; the solicitor shall hire a law firm or state notarial organ to
review the qualification of the solicitor, solicitation scheme, authority letters of proxy solicitation, veracity of performing proxy
solicitation, validity of performing proxy solicitation and so on, then issue a legal opinion. This legal opinion or notarial certificate
should be disclosed in the specified media with the report of proxy solicitation and authority letters of proxy solicitation. According
to the requirements of Shenzhen Stock Exchange, Shanghai Jintiancheng law firm issued the ‘legal opinion’ on these amendments.
Shanghai Jintiancheng law firm maintained that these amendments did not violate the mandatory provisions of current laws and
regulations, and it limited the legitimate rights and interests of minority shareholders without merit.
Zhenbiao Tan, the exchangeable-share holders of the company, believed that this amendments limited public shareholders to
reasonably perform their civil rights and harmed the rights and interests of public shareholders. Thus, he maintained that the
amendments was invalid and sued in the people’s court of Wuhan Donghu New Technology Development Zone. The court of Wuhan
Donghu New Technology Development Zone adjudicates the suit that rejected accuser requests in July 2014.
The company believes that the above matters will not have a significant impact to the company’s financial position.
2. Contingent liabilities and its fiscal effect arising from guarantee offered to other companies
None
Other contingent liabilities and its fiscal effect:
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2014 Interim Report of Wuhan Boiler Company Limited
None
X. Commitments
1. Significant commitments
(1) Capital commitments
Up to 30 Jun 2014, the commitment related to purchases of long-term assets which the contract were signed but not reflected in the
financial statements amounted to RMB4,442,054.47, USD157,085.00 and EUR15,071.50.
(2) Other commitments
Up to 30 Jun 2014, the unexpired bonds issued by the company amount to: performance bond RMB92,586,473.35, tender bond
RMB3,200,000.00.
2. The situation of the performance of the commitment during the prior period
1. In the first half of 2014 the company had paid RMB51,080.40 for the performance of the commitment for the construction of the
long-term asset.
2. In the first half of 2013 the performance guarantee RMB6,170,860.00, the tender guarantee USD3,126,923.00 had been released
after all the performance of the contract.
XI. 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
XII. Notes of other significant events
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2014 Interim Report of Wuhan Boiler Company Limited
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
Unit: RMB Yuan
Accrued fair value
Income from fair Withdrawn
change that
Item Opening amount value change in the impairment in Closing amount
recognized in
report period report period
equity
Financial assets
Derivative financial assets 12,137.16 -12,137.16 0.00
Total 12,137.16 -12,137.16 0.00
ytilibaiL laicnaniF 79,585.63 -221,705.78 301,291.41
7. Main content of the pension plans and significant changes
None
8. Other
None
XIII. Notes of financial statements of parent company
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2014 Interim Report of Wuhan Boiler Company Limited
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 100.00 100.00
24,820,000.00 9.34% 24,820,000.00 24,820,000.00 6.79% 24,820,000.00
and provisions for bad % %
debts individually
Accounts receivable that provisions for bad debt by group
Accounts receivable that
81.98
provisions for bad debt by 217,804,676.87 97,571,651.66 44.80% 311,755,182.08 85.27% 104,050,713.72 33.38%
%
aging
81.98
Subtotal of group 217,804,676.87 97,571,651.66 44.80% 311,755,182.08 85.27% 104,050,713.72 33.38%
%
Accounts receivable that
is individually
insignificant but 23,042,460.00 8.67% 22,572,460.00 97.96% 29,042,460.00 7.94% 16,004,460.00 55.11%
provisions for bad debts
individually
Total 265,667,136.87 -- 144,964,111.66 -- 365,617,642.08 -- 144,875,173.72 --
Notes:
Note: the monetary standards of provision for bad debts of the individually significant receivables is top 5 account receivables at year
end, which he impairment test is carried on individually. For significant receivables, if there are substantive evidences indicating that
a receivable has been impaired, a provision for bad debts should be made; if a receivable is found not to be individually impaired, it
should be included in a group of similar credit risk characteristics receivables and a collective assessment of impairment should be
made. Receivables which are not significant, but still need individually recognition of bad debt provision, if there are substantive
evidences shown there is a special impairment of insignificant receivables, then they need individually impairment tests
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,
Dongfang Xiwang Baotou Xitu
24,820,000.00 24,820,000.00 100% difficult to recover
Aluminium Co., Ltd.
money
Total 24,820,000.00 24,820,000.00 -- --
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2014 Interim Report of Wuhan Boiler Company Limited
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 1 116,751,385.90 53.60% 3,502,866.03 190,066,260.86 60.97% 5,701,987.83
year)
Subtotal of
116,751,385.90 53.60% 3,502,866.03 190,066,260.86 60.97% 5,701,987.83
within 1 year
1 to 2 years 7,057,000.00 3.24% 211,710.00 9,038,000.00 2.90% 271,140.00
2 to 3 years 30,195.98 0.01% 1,811.76 2,047,451.61 0.66% 122,847.10
3 to 4 years 138,538.90 0.06% 27,707.78 242,676.22 0.08% 48,535.24
4 to 5 years 15,568,237.30 4.99% 3,113,647.46
Over 5 years 93,827,556.09 43.08% 93,827,556.09 94,792,556.09 30.41% 94,792,556.09
Total 217,804,676.87 -- 97,571,651.66 311,755,182.08 -- 104,050,713.72
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
Accounts payable Book value Bad debt provision Reason
proportion (%)
Datang Liaoyuan Power 10,010,000.00 10,010,000.00 100.00%
Deduction for product quality issues
Plant
500,000.00 30,000.00 6.00% The Company is required to bear part of the
Guodian Lanzhou
subsequent costs and thus the receivable
Thermal power Co., Ltd.
amount is not expected to be fully recoverable.
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2014 Interim Report of Wuhan Boiler Company Limited
Gansu Datang Xigu 11,952,460.00 11,952,460.00 100.00%
The retention money is difficult to be received
Thermal Power
due to product quality issues.
Company Limited
Gansu Diantou Jinchang 580,000.00 580,000.00 100.00%
The retention money is difficult to be fully
Electric Power
received.
Investment Co., Ltd.
Total 23,042,460.00 22,572,460.00 -- --
(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
Datang Liaoyuan Power The receivable amount Deduction for product
200,000.00 1,000,000.00
Plant has been recovered. quality issues
Guodian Lanzhou Thermal The receivable amount The Company is
power Co., Ltd. has been recovered. required to bear part of
the subsequent costs and
240,000.00 4,000,000.00
thus the receivable
amount is not expected
to be fully recoverable.
The retention money is
Gansu Datang West Solid
The receivable amount difficult to be received
Thermal Power Company 1,000,000.00 1,000,000.00
has been recovered. due to product quality
Limited
issues.
Shuangyashan Thermal The receivable amount Over 5 years
175,000.00 175,000.00
power Co., Ltd. was recovered.
Xinjiang Huadian Changji The receivable amount Over 5 years
Thermal power Phase Co., was recovered.
Ⅱ 200,000.00 200,000.00
Ltd.
Shanxi Lu’an Yuwu Thermal The receivable amount Over 5 years
590,000.00 590,000.00
power Co., Ltd. was recovered.
Total -- -- 2,405,000.00 --
Withdrawal of closing accounts receivable that is individually significant or insignificant but provisions for bad debts individually:
None
(3) Information of accounts receivable that written off in the report period
None
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2014 Interim Report of Wuhan Boiler Company Limited
(4) Information of shareholders with more than 5% (including 5%) of the voting shares of the Company in
account receivable in report period
Applicable √ Inapplicable
(5) Nature or details of other significant accounts receivable
Applicable √ Inapplicable
(6) Information of top five
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
Alstom Power Inc. Affiliated 89,697,481.84 89,667,285.86 within 1
year, 30,195.98 for 2-3 33.76%
years
Shanxi Zhengxin Group Non-affiliated 39,820,000.00 Over 5 years
14.99%
Co., Ltd.
Dongfang Xiwang Non-affiliated 24,820,000.00 Over 5 years
Baotou Xitu Aluminium 9.34%
Co., Ltd.
Shandong Luneng Non-affiliated 23,290,000.00 Within 1 year
Materials Group Co., 8.77%
Ltd.
Henan Zhongmai Yongan Non-affiliated 14,325,000.00 Over 5 years
5.39%
Power Co. Ltd.
Total -- 191,952,481.84 -- 72.25%
(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., 8,649,095.32 3.26%
of subsidiaries
Ltd.
ALSTOM Boiler Deutschland Subsidiary of the Company’s
138,538.90 0.05%
GmbH ultimate controller
Subsidiary of the Company’s
ALSTOM Power Inc. 89,697,481.84 33.76%
ultimate controller
Total -- 98,485,116.06 37.07%
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2014 Interim Report of Wuhan Boiler Company Limited
(8) Information of accounts receivable that terminated recognition
Applicable √ Inapplicable
(9) If securitization is carried out on accounts receivable as the underlying asset, please brief on the
arrangement of relevant transactions.
Applicable √ Inapplicable
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 21.67 100.0 23.65 100.0
26,673,222.30 26,673,222.30 26,673,222.30 26,673,222.30
significant and provisions % 0% % 0%
for bad debts individually
Other accounts receivable that provisions for bad debts by group
Other accounts receivable
60.49 42.68 68.19 32.13
that provisions for bad debts 74,462,045.97 31,778,422.27 76,923,804.99 24,716,703.91
% % % %
by aging
Accounts receivables not
15.63
withdrew for bad debts 19,241,237.80 6,564,340.29 5.82%
%
provision
76.12 33.91 74.01 29.61
Subtotal of group 93,703,283.77 31,778,422.27 83,488,145.28 24,716,703.91
% % % %
Other accounts receivable
that is individually 100.0 100.0
2,715,725.95 2.21% 2,715,725.95 2,636,308.95 2.34% 2,636,308.95
insignificant but provisions 0% 0%
for bad debts individually
Total 123,092,232.02 -- 61,167,370.52 -- 112,797,676.53 -- 54,026,235.16 --
Note:
Description for categories of other accounts receivable:
131
2014 Interim Report of Wuhan Boiler Company Limited
Note: the monetary standards of provision for bad debts of the individually significant other receivables is top 5 account receivables
at year end, which he impairment test is carried on individually. For significant receivables, if there are substantive evidences
indicating that a receivable has been impaired, a provision for bad debts should be made; if a receivable is found not to be
individually impaired, it should be included in a group of similar credit risk characteristics receivables and a collective assessment of
impairment should be made. Receivables which are not significant, but still need individually recognition of bad debt provision, if
there are substantive evidences shown there is a special impairment of insignificant receivables, then they need individually
impairment tests.
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 6,722,635.46 100.00% project, and is difficult to
Co., Ltd.
recover
Suspension of the
Shandong Luneng
19,950,586.84 19,950,586.84 100.00% 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
(Including 1 1,225,236.09 1.65% 36,757.08 4,127,441.62 5.37% 123,823.25
year)
Subtotal of
1,225,236.09 1.65% 36,757.08 4,127,441.62 5.37% 123,823.25
within 1 year
1 to 2 years 541,020.72 0.73% 16,230.61 350,480.96 0.46% 10,514.43
2 to 3 years 639,693.55 0.86% 38,381.60 389,786.80 0.51% 23,387.21
3 to 4 years 50,461,303.27 67.77% 10,092,260.63 59,371,395.74 77.18% 11,874,279.15
4 to 5 years 21,594,792.34 29.00% 21,594,792.34 12,684,699.87 16.49% 12,684,699.87
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2014 Interim Report of Wuhan Boiler Company Limited
Total 74,462,045.97 -- 31,778,422.27 76,923,804.99 -- 24,716,703.91
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
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 336,604.05 336,604.05 100.00%
for bankruptcy
Suspension of the
Yuanping Taiyue Power
424,514.70 424,514.70 100.00% project, and is difficult to
Development Co., Ltd.
recover
Henan Dengfeng Electric Suspension of the
Power Co., Ltd. 32,430.77 32,430.77 100.00% project, and is difficult to
Xiangyang recover
Suspension of the
Qingdao Houhai
518,227.71 518,227.71 100.00% project, and is difficult to
Thermal-power
recover
Suspension of the
Jiangsu Wanda Paper
723,504.31 723,504.31 100.00% project, and is difficult to
Co., Ltd.
recover
Suspension of the
Qingtongxia Aluminum
5,736.41 5,736.41 100.00% project, and is difficult to
Co., Ltd.
recover
Henan Zhongmai
Litigation costs, and is
Electric Power Co., Ltd. 173,411.00 173,411.00 100.00%
difficult to enforce
Mai
Sanmenxia Huineng
Litigation costs, and is
Thermal Power 143,897.00 143,897.00 100.00%
difficult to enforce
Company Limited
Shanxi Zhenxing Group Litigation costs, and is
357,400.00 357,400.00 100.00%
Co., Ltd. difficult to enforce
Total 2,715,725.95 2,715,725.95 -- --
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2014 Interim Report of Wuhan Boiler Company Limited
(2) Information of other accounts receivable of reversed or recovered in report period
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. 61,030,488.11 20,743,485.17 61,030,488.11 16,353,377.52
Total 61,030,488.11 20,743,485.17 61,030,488.11 16,353,377.52
(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 61,030,488.11.
(6) Information of the top five
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
50,358,753.68 for 4-5
Wuhan Boiler Group Co., The second largest
61,030,488.11 years, 10,671,734.43 for 49.58%
Ltd. shareholder
over 5 years
Shandong Luneng
Non-related party 19,950,586.84 Over 5 years 16.21%
Material Group Co., Ltd.
Binzhou Beihai New
Non-related party 11,188,034.20 Within 1 year 9.09%
Material Co., Ltd.
Donghu Development
Non-related party 10,774,265.00 Over 5 years 8.75%
Zone Government
Shanxi Zhenxing Group
Non-related party 6,722,635.47 Over 5 years 5.46%
Co., Ltd.
Total -- 109,666,009.62 -- 89.09%
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2014 Interim Report of Wuhan Boiler Company Limited
(7) Information of other account receivable
Unit: RMB Yuan
Name of company Relationship Amount Proportion (%)
ALSTOM Beijing) Subsidiary of the Company’s
Engineering Technology Co., ultimate controller 14,074.73 0.01%
Ltd.
ALSTOM (Wuhan)
Subsidiary of the Company’s
Engineering Technology Co., 36,200.01 0.03%
ultimate controller
Ltd.
ALSTOM Boiler Deutschland Subsidiary of the Company’s
388,529.69 0.32%
GmbH 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 617,080.03 0.50%
ultimate controller
Subsidiary of the Company’s
ALSTOM (Switzerland) Ltd 181,509.31 0.15%
ultimate controller
Wuhan Boiler Group Co., Ltd. The second largest shareholder 61,030,488.11 49.58%
Wuhan Boiler Group Yuntong The subsidiary of the second
10,171.01 0.01%
Co. Ltd. largest shareholder
Wuhan Boiler Group Valve The subsidiary of the second
240,571.49 0.20%
Co., Ltd. largest shareholder
Wuhan Lan Xiang Energy Subsidiary of the company
Environmental Protection 437,967.03 0.36%
Technology Co., Ltd.
Total -- 62,992,749.06 51.19%
(8) Information of other accounts receivable that terminated recognition
Applicable √ Inapplicable
(9) If securitization is carried out with underlying of other accounts receivable, please brief on arrangement
of relevant transactions.
Applicable √ Inapplicable
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2014 Interim Report of Wuhan Boiler Company Limited
3. Long-term equity investments
Unit: RMB Yuan
Explanatio Withd
ns on rawal
Voti difference of
Accou Incr Sharehol ng s between Provision provis Cash
Initial
nting Opening ease/ Closing ding right shareholdi for ion for bonus in
Company investment
metho balance decr balance Proporti Prop ng impairmen impair report
cost
d ease on ortio proportion t loss ment period
n and voting loss in
right report
proportion period
Wuhan Lan
Xiang Power
Environmental Cost
24,984,50
Protection metho 14,000,000.00 24,984,500.00 95% 95%
0.00
Technology d
Company
Limited
24,984,50
Total -- 14,000,000.00 24,984,500.00 -- -- --
0.00
4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item The report period Last period
Main business sales 494,874,319.77 459,095,994.70
Other operating income 2,023,839.75 3,185,112.05
Total 496,898,159.52 462,281,106.75
Cost of sales 432,828,651.37 449,540,053.90
(2) Main business (Classified by industry)
Unit: RMB Yuan
Report period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
136
2014 Interim Report of Wuhan Boiler Company Limited
Boiler industry 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
Total 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
(3) Main business (Classified by product)
Unit: RMB Yuan
Report period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Boiler and accessories sales 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
Total 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
(4) Main business (Classified by area)
Unit: RMB Yuan
Report period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Domestic 120,942,552.42 136,461,886.76 107,191,166.56 124,808,687.05
Overseas 373,931,767.35 296,094,730.63 351,904,828.14 322,841,719.14
Total 494,874,319.77 432,556,617.39 459,095,994.70 447,650,406.19
(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 323,978,084.50 65.20%
Binzhou Beihai New Materials Co., Ltd. 83,170,022.05 16.74%
PT INDAH KIAT PULP &PAPER ,TBK 50,304,260.19 10.12%
Guodian Taian thermoelectric Co.,Ltd 30,480,978.65 6.13%
China Nuclear Energy Industry Corp. 4,161,861.09 0.84%
Total 492,095,206.48 99.03%
5. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
Supplemental information Report period Same period of last year
1. Reconciliation of net profit to net cash flows generated from
-- --
operations ：
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2014 Interim Report of Wuhan Boiler Company Limited
Net profit 8,643,084.57 -36,286,548.80
Add: Provision for assets impairments -32,536,693.68 -18,470,683.77
Depreciation of fixed assets, oil-gas assets and productive
17,583,286.60 20,037,873.38
biological assets
Amortization of intangible assets 2,591,778.31 3,294,227.40
Losses/gains on disposal of property, intangible asset and other
-59,767.52 -333,430.15
long-term assets (gains: negative)
Losses/gains from variation of fair value (gains: negative) 1,159,562.10 2,547,295.46
Financial cost (income: negative) 44,376,345.28 40,202,887.55
Decrease in deferred tax assets (increase: negative) 174,961.83 3,103,374.39
Decrease in inventory (increase: negative) 21,997,848.59 38,828,506.15
Decrease in accounts receivable from operating activities (increase:
83,229,642.63 159,930,334.83
negative)
Increase in accounts payable from operating activities (decrease:
4,099,065.33 -462,071,842.09
negative)
Net cash flows generated from operating activities 151,259,114.04 -249,218,005.65
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of Cash 20,285,803.27 15,125,771.63
Less: opening balance of cash 6,722,513.86 129,536,056.34
The net increase in cash and cash equivalents 13,563,289.41 -114,410,284.71
6. List of assets and liabilities recorded by the assessed value under counter purchase.
None
XIV. 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
59,767.52
write-off part of the provision for asset impairment) scrapped fixed assets
District Finance Bureau’s
Governmental subsidy included in the current profits and losses(is
Industrial Rapid Growth
closely related with the business event, except for the
288,888.00 contribution award in 2013 and
governmental subsidy that according to the national unity
the relevant deferred incomes of
standard quota or the quantitative regal assets)
the land use right in the new
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2014 Interim Report of Wuhan Boiler Company Limited
factory zone of the Company
Income and expenses of the other operation except for the
-2,989.53 Other
mentioned above
Total 345,665.99 --
Government grants recognized in the current period was recurrent profit and loss item, shall specify disclosure reason item by item.
Applicable √Inapplicable
2. 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 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 8,214,639.10 -36,438,887.02 -1,355,276,203.03 -1,363,490,842.13
accounting standards
Items and amounts adjusted in accordance with 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 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
8,214,639.10 -36,438,887.02 -1,355,276,203.03 -1,363,490,842.13
accounting standards
Items and amounts adjusted in accordance with foreign accounting standards
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards
Applicable √Inapplicable
3. Return on equity and earnings per share
Unit: RMB Yuan
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2014 Interim Report of Wuhan Boiler Company Limited
The weighted average ROE EPS
Profit in the report period
(%) Basic EPS Diluted EPS
Net profit attributable to the Company's
0.60% 0.03 0.03
common stock shareholders
Net profit attributable to shareholders of the
Company's common stock after deducting 0.58% 0.03 0.03
non-recurring gains and losses
4. Particulars on the abnormal conditions of main items in the financial statements of the Company and
relevant reasons
Balance sheet
Closing balance Opening balance Change rate Reason
item
Cash and cash Mainly due to increase on project cash collection
23,732,263.65 10,114,897.11 134.63%
equivalents this period
Mainly due to the payment to suppliers by
Notes
1,500,000.00 15,000,000.00 -90.00% endorsing bank notes which were received from
receivable
customers.
Accounts Mainly due to collection of accounts receivable
120,703,025.21 221,376,068.36 -45.48%
receivable which are booked in prior period
Construction
5,683,635.03 2,245,077.87 153.16% Mainly due to construction of new plant.
in progress
Other
Mainly due to decrease of hedging loss for
non-current 0.00 12,137.16 -100.00%
un-expired forward contracts in this period.
assets
Mainly due to increase of payment with bank notes
Notes payable 66,546,750.00 0.00 100.00%
in this period.
Mainly due to the increase of raw material
Accounts
272,575,994.15 193,795,670.01 40.65% purchasing for Yanbu and Tai'an projects in this
payable
period.
Interest Mainly due to payment of interest which was
3,156,100.00 12,276,456.15 -74.29%
payable booked in prior year.
P&L item Closing balance Opening balance Change rate Reason
Mainly due to the decrease of reduction of the
Income tax
174,961.83 3,103,374.39 -94.36% temporary deductible differences resulted from
expense
release of contract loss provision
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2014 Interim Report of Wuhan Boiler Company Limited
Non-operating Mainly due to the reduce of indemnity from vendors
350,210.10 2,913,166.75 -87.98%
income in the report period
Non-operating Mainly due to the reduce of asset disposal in the
4,544.11 68,734.21 -93.39%
expense report period
Cash flow
Closing balance Opening balance Change rate Reason
item
Net cash flow
generated Mainly due to the return of the advance receipt
from 151,310,124.28 -249,198,005.65 160.72% resulted from the change of the supply scope of the
operating project contract in the prior period
activities
Net cash flow
generated
Mainly due to the increase of cash out paid for the
from -2,919,453.86 -1,557,553.65 -87.44%
construction of new plant
investment
activities
Net cash flow
generated
Mainly due to the increase in return of entrusted
from -135,307,976.66 133,805,900.00 -201.12%
loans
financing
activities
Net increase
in cash and Mainly due to the changes of net cash flows from
13,617,263.38 -114,387,590.26 111.90%
cash operating and financing activities
equivalents
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2014 Interim Report of Wuhan Boiler Company Limited
Section X. Documents Available For Reference
I. 2014 Interim Report with 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.
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