WUHAN BOILER COMPANY LIMITED
THE FIRST QUARTERLY REPORT 2009
§ 1 Important Notes
1.1 The Board of Directors, the Supervisory Board, directors, supervisors and other
senior management personnel of Wuhan Boiler Company Limited (hereinafter
referred to as “the Company”) hereby confirm that this report contains no false
information, misleading statements or material omission, and accept, individually and
collectively, the responsibilities for the authenticity, accuracy and completeness of the
contents of this report.
1.2 All other directors attended in person the board meeting where this quarterly
report was reviewed except for the director mentioned below.
Name Position Reason for not attending the meeting in person Name of proxy
Jean-Michel
AUBERTIN
（
Ou
Botian
）
Director
He was absent from the Board Meeting due to business trip
overseas, and he authorized Mr. YEUNG Kwok Wei
Richard (Yang Guo Wei) in written to vote on his behalf.
YEUNG Kwok
Wei Richard
(Yang Guowei)
1.3 The First Quarterly Financial Report has not been audited by a CPA firm.
1.4 Mr. YEUNG Kwok Wei Richard (Yang Guowei), the Chairman of the Board of
Directors, Mr. Philippe VERGNE (Chinese Name: Wu Zhonghan), Chief Financial
Officer, and Mr. Zhang Yansi in Charge of Accounting, hereby insure that the
Financial Report enclosed in this Report is true and complete..
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: (RMB) Yuan
31 Mar. 2009 31 Dec. 2008 Increase/decrease (%)
Total assets 2,824,170,701.93 2,867,879,261.58 -1.52%
Equity attributable to the owner of the
parent company
-307,652,290.36 -218,289,082.18 -40.94%
Equity capital 297,000,000.00 297,000,000.00 0.00%
Net assets per share attributable to the
owner of the parent company
-1.04 -0.73 -42.47%
Jan.-Mar. 2009 Jan.-Mar. 2008 Increase/decrease (%)
Total operation income 188,636,412.86 266,952,821.72 -29.34%2
Net profit attributable to the owner of the
parent company
-89,363,211.65 -51,891,543.66 -72.21%
Net cash flow generated from operating
activities
-232,322,103.65 -265,004,281.96 12.33%
Net cash flow per share generated from
operating activities
-0.78 -0.89 12.36%
Basic earnings per share -0.30 -0.17 -76.47%
Diluted earnings per share -0.30 -0.17 -76.47%
Rate of return on net assets -61.81%
Rate of return on net assets after
deducting non-recurring gains and losses
-62.66%
Items of non-recurring gains and losses Jan. –Mar. 2009
Other non-operating gains or losses other than above (net) -192,576.15
Effect of deducting minority interest -5.00
Total -192,581.15
Statements on the items of non-recurring gains and losses:
The non-recurring gains and losses refer to the incomes and expenses that are not
directly related to the Company’s production and operation, or that are related to the
Company’s production and operation but may affect the factual and fair assessment of
the Company’s operating results and profitability in the current period due to their
nature, amounts and frequency.
2.2 Total number of shareholders at period-end, as well as shares held by the top ten
tradable shareholders
Unit: Share
Total number of shareholders at
period-end
12,133
Shares held by the top ten tradable shareholders
Name of shareholder (full name)
Number of tradable shares held at
period-end
Type of share
WANG JIA YI 1,713,699 Domestically listed foreign shares
CHENG CHU YUN 1,372,450 Domestically listed foreign shares
HSBC BROKING SECURITIES (ASIA)
LIMITED-CLIENTS A/C
1,108,914 Domestically listed foreign shares
SEUNG YEOL PARK 1,041,671 Domestically listed foreign shares
ZHUANG CHANG XIONG 1,035,000 Domestically listed foreign shares
TANG JUAN 887,236 Domestically listed foreign shares
GUOTAI JUNAN
SECURITIES(HONGKONG) LIMITED
872,448 Domestically listed foreign shares
WU FANG HUI 846,103 Domestically listed foreign shares3
ZHUANG YAO HUA 821,150 Domestically listed foreign shares
HUANG JIAN WEN 736,440 Domestically listed foreign shares
§ 3 Significant Events
3.1 Particulars about major changes of main accounting statement items and financial
indicators, as well as reasons for the changes
√Applicable □Inapplicable
1. The monetary capital decreased by 52.64% compared with the beginning of the year, mainly
due to the Company’s strengthened capital management;
2. Other receivables decreased by 34.80% compared with the beginning of the year , mainly due to
the decrease of construction in progress;
3. The inventory decreased by 33.26% compared with the beginning of the year, mainly due to the
decrease of ongoing projects.
4. The notes payable decreased by 69.38%, mainly due to the settlement of the mature notes;
5. The interest payable increased by 28.85% compared with the beginning of the year, mainly due
to the increase of loans;
6. The operation income and cost decreased respectively by 29.34% and 28.98% over the same
period of last year, mainly due to the decrease of the orders on hand and the construction in
progress;
7. The business taxes and surcharges decreased by 47.49% over the same period of last year,
mainly due to the decrease of the operation income;
8. The financial expenses increased by 67.17% over the same period of last year, mainly due to the
increase of loans;
9. The asset impairment loss increased by 219.12%, mainly due to the increase of the withdrawn
allowance for doubtful accounts caused by the changes of the accounts’ aging schedules.
3.2 Progress and influence of significant events, as well as the analysis on solutions
□Applicable √Inapplicable
3.3 Fulfillment of commitments made by the Company, shareholders and the actual
controller
□Applicable √Inapplicable
3.4 Warnings of 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
reporting period compared with the same period of last year according to prediction,
as well as the reasons
√Applicable □Inapplicable
Performance estimates
From January 1, 2009
to June 30, 2009
From January 1, 2008 to
June 30, 2008
Increase/decrease (%)4
Estimate of accumulative
net profit (RMB, Ten
Thousand Yuan) －
RMB190 millions
－
RMB98.086 millions --- ---
Basic earnings per share
(Yuan/share) －
0.64
－
0.33 --- ----
Remarks on performance
estimates
The main reasons for the loss are a decrease of gross margin resulted from low
manufacturing activities during the relocation, an increase of Administration
expenses and an increase of financial expenses caused by the increase of bank
loan
3.5 Other significant events
3.5.1 Stock investment
□Applicable √Inapplicable
3.5.2 Visits and interviews received in the reporting period
Date of reception
Location of
reception
Way of reception Visitor
Contents discussed and materials
provided
3 Feb. 2009 Wuhan By telephone One tradable shareholder Construction of the new plant
4 Feb. 2009 Wuhan By telephone One tradable shareholder
Construction of the new plant and the
orders in 2009
11 Feb. 2009 Wuhan By telephone One tradable shareholder
Estimated date for the operation of the
new plant
14 Feb. 2009 Wuhan Field research One tradable shareholder
The shareholder asked for a visit to the
new plant.
16 Feb. 2009 Wuhan By telephone One tradable shareholder
Construction of the new plant and the
Company’s performance in 2009
17 Feb. 2009 Wuhan By telephone Two tradable shareholders
Construction progress of the new plant
and the date of operation
25 Feb. 2009 Wuhan By telephone One tradable shareholder
Construction of the new plant, date of
relocation, and the orders in 2009
27 Feb. 2009 Wuhan By telephone Two tradable shareholders
Construction of the new plant, business
performance in 2009 and whether the
tension between China and France has
an impact on the told orders
2 Mar. 2009 Wuhan By telephone One tradable shareholder
Construction of the new plant, date of its
operation, the Company’s performance
in 2009 and whether the Company is
considering reducing the staff
3 Mar. 2009 Wuhan By telephone One tradable shareholder
Construction of the new plant, date of its
operation and the Company’s orders in
2009
3.5.3 Other significant events5
□Applicable √Inapplicable
§ 4 Attachments
4.1 Balance sheet
Prepared by Wuhan Boiler Company Limited Unit: (RMB) Yuan
As at 31 Mar. 2009
Balance at period-end Balance at year-begin
Items
Consolidation Parent company Consolidation Parent company
CURRENT ASSETS:
Monetary capital 22,669,133.14 19,966,820.56 47,867,354.63 31,599,034.00
Settlement funds
Landings to banks or other
financial institutions
Transaction monetary assets
Notes receivables 33,020,000.00 32,960,000.00 380,000.00
Accounts receivables 1,167,499,263.10 1,155,943,271.99 953,598,124.44 942,918,219.40
prepayments 136,105,384.39 187,725,326.89 141,863,705.37 141,118,425.37
Premium receivables
Receivables from reinsures
Reinsurance contract reserve
receivables
Interest receivables
Dividend receivables
Other receivables 86,664,809.58 86,649,168.12 132,916,376.39 132,785,791.48
Financial assets purchased
under agreements to resell
Inventories 613,053,506.01 604,298,649.64 918,505,849.66 905,820,307.66
Non-current assets due within 1
year
Other current assets
TOTAL CURRENT ASSETS 2,059,012,096.22 2,087,543,237.20 2,195,131,410.49 2,154,241,777.91
NON-CURRENT ASSETS:
Loans and advances
Available-for-sale financial
assets
Investments held to maturity
Long-term receivables
Long-term equity investments 39,234,287.13 39,234,287.13
Investment properties
Fixed assets 117,484,930.69 114,169,825.37 121,851,170.82 118,360,293.74
Construction in progress 503,791,416.24 452,171,473.74 406,345,860.06 406,345,860.06
Construction materials6
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 64,719,651.89 64,719,651.89 64,344,904.52 64,344,904.52
Development expenditures
goodwill
Long-term deferred expenses 62,500.00 62,500.00 100,000.00 100,000.00
Deferred tax assets 73,930,972.26 73,797,278.51 73,930,972.26 73,797,278.51
Other non-current assets 5,169,134.63 5,169,134.63 6,174,943.43 6,174,943.43
TOTAL NON-CURRENT
ASSETS
765,158,605.71 749,324,151.27 672,747,851.09 708,357,567.39
TOTAL ASSETS 2,824,170,701.93 2,836,867,388.47 2,867,879,261.58 2,862,599,345.30
CURRENT LIABILITIES:
Short-term borrowings 2,243,000,000.00 2,243,000,000.00 1,924,000,000.00 1,924,000,000.00
Borrowings from central bank
Deposits received and held for
others
Borrowings from banks and
other financial institutions
Held-for-trading financial
liabilities
Notes payable 132,795,508.30 132,795,508.30 433,649,225.98 433,649,225.98
Accounts payable 543,401,437.49 544,101,011.59 532,731,198.18 529,612,333.97
Advances from customers 10,342,136.73 10,342,136.73 10,442,136.73 10,342,136.73
Financial assets sold under
agreements to repurchase
Fees and commissions payables
Payroll payables 45,612,843.52 45,314,092.99 44,989,865.76 44,680,505.04
Taxes payable -89,322,213.51 -89,857,270.47 -102,911,718.25 -103,411,510.50
Interest payables 3,925,394.00 3,925,394.00 3,046,367.05 3,046,367.05
Dividend payables 562,000.00 562,000.00
Other payables 38,465,239.04 69,480,703.17 25,258,271.32 44,276,690.75
Accounts due to reinsurance
Insurance contract reserves
Receiving from vicariously
traded securities
Receiving from vicariously
sold securities
Non-current liabilities due
within 1 year
90,000,000.00 90,000,000.00 90,000,000.00 90,000,000.00
Other current liabilities
TOTAL CURRENT
LIABILITIES
3,018,782,345.57 3,049,101,576.31 2,961,767,346.77 2,976,195,749.027
NON-CURRENT
LIABILITIES
Long-term borrowings 90,000,000.00 90,000,000.00 100,000,000.00 100,000,000.00
Bonds payable
Long-term payables
Special payables
Estimated liabilities
Deferred tax liabilities 2,696.51 2,696.51 2,696.51 2,696.51
Other non-current liabilities 19,535,464.73 19,535,464.73 20,646,122.33 20,646,122.33
TOTAL NON-CURRENT
LIABILITIES
109,538,161.24 109,538,161.24 120,648,818.84 120,648,818.84
TOTAL LIABILITIES 3,128,320,506.81 3,158,639,737.55 3,082,416,165.61 3,096,844,567.86
OWNERS’ EQUITY (OR
SHAREHOLDERS’ EQUITY)
Paid-in capital (or share capital) 297,000,000.00 297,000,000.00 297,000,000.00 297,000,000.00
Capital surplus 174,659,407.46 174,854,304.12 174,659,407.46 174,854,304.12
Less: treasury stock
Surplus reserves 39,418,356.83 39,418,356.83 39,418,356.83 39,418,356.83
General risk provision
Retained earnings -818,730,054.65 -833,045,010.03 -729,366,846.47 -745,517,883.51
Foreign exchange difference
Total owners’ equity
attributable to holding company
-307,652,290.36 -321,772,349.08 -218,289,082.18 -234,245,222.56
Minority interest 3,502,485.48 3,752,178.15
TOTAL OWNER’S EQUITY -304,149,804.88 -321,772,349.08 -214,536,904.03 -234,245,222.56
TOTAL LIABILITIES &
OWNER’S EQUITY
2,824,170,701.93 2,836,867,388.47 2,867,879,261.58 2,862,599,345.30
4.2 Income Statement
Prepared by Wuhan Boiler Company Limited Unit: (RMB) Yuan
Jan.-Mar. 2009
This period Same period of last year
Items
Consolidation Parent company Consolidation Parent company
1. Total operation revenue 188,636,412.86 186,356,412.86 266,952,821.72 253,902,177.26
Including: sales revenue 188,636,412.86 186,356,412.86 266,952,821.72 253,902,177.26
Interests income
Premium income
Fee and commission income
2. Total operation cost 278,084,284.43 273,718,560.10 318,320,196.66 303,797,146.66
Including: cost of sales 183,686,041.50 181,096,918.73 258,626,844.08 250,582,347.24
Interests expenses
Service charges and
commission expenses8
Payments on surrenders
Claim expenses-net
Provision for insurance
contract reserve-net
Policyholder dividends
Reinsurance expenses
Business taxes and
surcharges
306,019.04 121,487.73 582,826.66 251,146.91
Selling expenses 3,134,188.71 1,686,260.32 2,643,939.34 1,942,401.21
Administrative expenses 37,159,403.38 37,053,611.69 32,063,684.37 27,118,143.75
Financial expenses 26,486,431.76 26,479,492.12 15,844,418.70 15,183,772.28
Impairment loss 27,312,200.04 27,280,789.51 8,558,483.51 8,719,335.27
Add: gain/loss from changes in
fair value (“-” for loss)
27,543.41 27,543.41
Gain/loss from investment
(“-” for loss)
Including: investment
gain from associates and joint
ventures
Gain/loss from foreign
exchange difference (“-” for loss)
3. Operation profit (“-” for loss) -89,420,328.16 -87,334,603.83 -51,367,374.94 -49,894,969.40
Add: non-operating incomes 129,546.69 129,546.69 23,316.34 23,316.34
Less: non-operating expenses 322,122.84 322,072.84 965,080.78 953,918.28
Including: loss from disposal
of non-current assets
4. Total profit (“-” for total loss) -89,612,904.31 -87,527,129.98 -52,309,139.38 -50,825,571.34
Less: income tax expenses 373,725.90 0.00
5. Net profit (“-” for total loss) -89,612,904.31 -87,527,129.98 -52,682,865.28 -50,825,571.34
Attributable to owners of
parent company
-89,363,211.65 -51,891,543.66
Minority interest -249,692.66 -791,321.62
6. Earnings per share
(1) Basic EPS -0.30 -0.17
(2) Diluted EPS -0.30 -0.17
4.3 Cash flow statement
Prepared by Wuhan Boiler Company Limited Unit: (RMB) Yuan
Jan.-Mar. 2009
This period Same period of last year
Items
consolidation Parent company Consolidation Parent company
1. Cash flows from operating
activities9
Cash received from sales of
goods or rending of services
282,002,331.89 279,209,055.47 206,292,228.41 188,874,663.29
Net increase of deposits
received from and held for
customers
Net increase of borrowings
from central bank
Net increase of inter-bank
loans from other financial
institutions
Cash received against
original insurance contract
Net Cash received from
reinsurance
Net increase of client
deposits and investments
Net increase in disposal of
held-for-trading financial assets
Interests, handling charges
and commission received
Net increase of inter-bank
funds received
Net increase of cash received
under repurchasing
Tax and fare refunded 9,645,206.87 9,645,206.87
Other cash received from
operating activities
14,238.88 21,701,720.86 5,862,055.72
Sub-total of cash inflow
from operating activities
291,661,777.64 288,854,262.34 227,993,949.27 194,736,719.01
Cash paid for goods and
services
470,974,848.04 470,266,583.76 433,769,401.32 424,271,277.54
Net increase of loans and
advances
Net increase of deposits in
central bank, banks and other
financial institutions
Cash paid for original
contract claim
Cash paid for interests, fees
and commissions
Cash paid for policy
dividends
Cash paid to and for
employees
34,503,598.72 32,320,991.93 33,463,304.54 25,418,691.9610
Taxes and fares paid 2,311,158.09 1,309,536.05 4,862,132.75 4,910.00
Other cash paid relating to
operating activities
16,194,276.44 15,808,688.54 20,903,392.62 11,280,337.83
Sub-total of cash
outflows from operating
activities
523,983,881.29 519,705,800.28 492,998,231.23 460,975,217.33
Net cash flow from
operating activities
-232,322,103.65 -230,851,537.94 -265,004,281.96 -266,238,498.32
2. Cash flows from investing
activities
Cash received from return of
investments
Cash received from
investment income
Net cash received from
disposal of fixed assets, intangible
assets and other long-term assets
317,225.00 312,315.00
Net cash received from
disposal of subsidiaries and other
operating units
Other cash received relating
to investing activities
6,157.66 4,714.85
Sub-total of cash inflows
of investing activities
6,157.66 0.00 321,939.85 312,315.00
Cash paid for acquiring fixed
assets, intangible assets and other
long-term assets
83,060,904.60 83,059,304.60 21,287,869.75 21,265,605.56
Cash paid for acquiring
investments
Net increase of pledge loans
Net cash paid for acquisition
of subsidiaries and other operating
units
Other cash paid relating to
investing activities
Sub-total of cash
outflows of investing activities
83,060,904.60 83,059,304.60 21,287,869.75 21,265,605.56
Net cash flow from
investing activities
-83,054,746.94 -83,059,304.60 -20,965,929.90 -20,953,290.56
3. Cash flows of financing
activities
Cash received from
absorbing investments
Including: Cash received11
from minority shareholders of
subsidiaries
Cash received from
borrowings
803,100,000.00 815,200,000.00 545,000,000.00 545,000,000.00
Cash received from bonds
issuing
Other cash received relating
to financing activities
416,729.86 416,729.86
Sub-total of cash inflows
of financing activities
803,100,000.00 815,200,000.00 545,416,729.86 545,416,729.86
Cash paid for settling debts 482,000,000.00 482,000,000.00 276,000,000.00 276,000,000.00
Cash paid for distribution of
dividends or profits or
reimbursing interest
30,721,474.04 30,721,474.04 17,761,125.00 17,761,125.00
Including: dividends or
profits paid to minority
shareholders by subsidiaries
Other cash paid relating to
financing activities
96,243.43 96,243.43
Sub-total of cash
outflows of financing activities
512,721,474.04 512,721,474.04 293,857,368.43 293,857,368.43
Net cash flows of
financing activities
290,378,525.96 302,478,525.96 251,559,361.43 251,559,361.43
4. Effect of foreign exchange
rate changes
-200,230.61 -200,230.61 -49,444.63 -49,444.63
5. Net increase of cash and cash
equivalents
-25,198,555.24 -11,632,547.19 -34,460,295.06 -35,681,872.08
Add: cash and cash
equivalents at the beginning of
this period
37,612,024.12 21,343,703.49 81,449,871.82 68,761,400.73
6. Cash and cash equivalents at
period-end
12,413,468.88 9,711,156.30 46,989,576.76 33,079,528.65
4.4 Auditor’s report
Audit opinion: Unaudited
Wuhan Boiler Co., Ltd.
Chairman of Board of Directors: YEUNG Kwok Wei Richard
April 28, 2009
