Summary of 2023 Annual Report
Stock Code: 200771 Stock ID: Hangqilun B Announcement No.：2024-21
Hangzhou Steam Turbine Power Group Co., Ltd.
Summary of 2023 Annual Report
I. Important Notice
This Summary is based on the full Annual Report of the Company, In order for a full understanding of the
Company’s operating results, financial position and future development plans, investors should carefully read
the aforesaid full text on the media designated by the China Securities Regulatory Commission (the “CSRC”).
All of the directors attended the board meeting on which this report was examined.
Non-standard auditor’s opinion
□ Applicable √ Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed
to the Board during the reporting period.
√ Applicable □ Not applicable
Whether provident fund reserve for share capital
□ Yes √ No
Based on 1,175,009,597 shares, a cash dividend of 5 yuan (tax included) will be distributed to all
shareholders for every 10 shares, and 0 bonus shares (tax included) will be given, without converting the
reserve fund into share capital.
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √ Not applicable
II. Basic information about the company
1. Company profile
Stock ID Hangqilun B Stock code 200771
Stock exchange for listing Shenzhen Stock Exchange
Modified stock ID (if any) Not applicable
Contact person and contact
Board secretary Securities affairs Representative
manner
Name Li Guiwen Li Xiaoyang
No.1188, Dongxin Road, Gongshu No.1188, Dongxin Road, Gongshu
Address District, Hangzhou, Zhejiang District, Hangzhou, Zhejiang
Fax 0571-85780433 0571-85780433
Tel 0571-85780058 0571-85780438
Email. lgw@htc.cn lixiaoyang@htc.cn
2.Major operations or products during the reporting period
During the reporting period, the Company's main business and operating model did not undergo significant
changes. As the leading provider of turbo machinery equipment and relevant service in China, our company is
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Summary of 2023 Annual Report
mainly famous for designing and producing rotating turbo machinery like industrial steam turbines and gas
turbines. Our company, one of the major companies drafting the industrial standard in Chinese domestic
industry of industrial steam turbine, has developed into the biggest base to research, develop and produce
industrial steam turbines in China and ranks first among industrial steam turbine producers in terms of the
market occupancy. Holding the principle “our products should be based on clients’ demands” as our business
mode and characteristic, our company designs and produces in accordance with every client’s personal demands
so as to meet personalized needs in engineering projects to the utmost. To realize the fast research and
development of our products, our company has adopted the advanced modular design technique and, on the
other hand, introduces information technique to assist the collaborative production to achieve the resource
saving and flexible production. In addition, our company also provides our clients with relevant service such as
engineering programs, general engineering contracting, operation and maintenance of our products as well as
remote control and so on.
Industrial steam turbines use the steam featuring high temperature and high pressure as their working medium
so as to convert the thermal energy into mechanical energy to drive various industrial equipments through the
rotating steam turbines. As for different objects driven by industrial steam turbines, the steam turbines could be
divided into industrial driving steam turbines and industrial power-generation steam turbines. Mainly driving
rotating machines like compressors, air blowers, pumps and squeezers, industrial driving steam turbines, as the
core power part in numerous large-scale industrial equipments, are always introduced into some industries like
oil refining, chemical engineering, chemical fertilizer, building materials, metallurgy, electric power, light
industry and environmental production. The industrial power-generation steam turbines, mainly utilized to
drive electric generators and provide thermal energy, are mainly adopted in private stations, regional projects of
combined heat and power generation, power generation by recycling waste heat in industrial production, urban
waster power plants and gas-steam combined cycle power stations in various industrial sectors. The gas
turbines produced by our company are mainly used by metallurgical industry to recycle the waste heat from the
blast furnace exhaust to generate power.
In the gas turbine business, the company cooperated with Siemens Energy on SGT-800, an advanced natural gas
turbine with high efficiency, high reliability and low emission, to enter the field of natural gas distributed energy,
with its models gradually expanded to SGT-300, SGT-700 and SGT-2000E. As the general supplier of Siemens
gas turbine in China, the company has carried out gas turbine business from two aspects of project procurement
and integrated implementation, and has the ability of selecting combined cycle projects for distributed energy,
has established the complete system supporting standards and material systems, and can complete the
independent processing and supporting work of equipment other than the gas turbine itself. In the industrial
fields including the cogeneration /combined cycle power plant and the oil & gas project with distributed energy
projects that adopt the small and medium gas turbines, the Company not only can provide gas turbine
equipment for customers, but also can provide customers with complete sets of equipment for gas turbine power
plant and the efficient integrated solutions. Especially, it can provide customers with operational support
services throughout the product life, and this service model is conductive for the establishment of long-term
business cooperation relationships between the company and its customers.
2023 is the year when the Company promoted the implementation of the "14th Five-Year Plan", and it is also a
crucial year to promote transformation and upgrading. In the industry environment of policy regulation and control,
facing the competitive pattern of excess demand, the Company maintained strategic determination and patience,
showed strong resilience and vitality, adapted to the changes in the complex market environment, and finally reached
the extremely challenging annual business target, laying the confidence and foundation for the subsequent enterprise
transformation and high-quality development.
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Summary of 2023 Annual Report
In 2023, the Company achieved an operating income of RMB 5,924,238,000, a total profit of RMB
735,518,000 and a net profit of RMB 666,219,300, of which the net profit attributable to shareholders of listed
companies was RMB 517,680,500, compared with the same period of last year, with an operating income increase of
7.35%, a total profit increase of 3.90%, a net profit increase of 6.55%, and a decrease in net profit attributable to
shareholders of listed companies of 0.90%. During the reporting period, the key work of the Company was completed
as follows:
I. Strategic Navigation
During the reporting period, the Company launched the mid-term evaluation and adjustment of the "14th Five-
Year" strategic plan, decomposed the mid-term adjustment report of the strategic plan, and extracted 11 performance
indicators and 22 strategic tasks, paving the way for the subsequent strategy. It tracked the completion of strategic
performance indicators every month and issued quarterly strategic performance analysis report, which provided
effective basis for the Company's scientific decision-making.
During the reporting period, the Company introduced Hangzhou Qitong, a strategic investor, to further improve
the governance structure of listed companies and effectively guarantee the implementation of corporate strategies. In
order to improve the main business, integrate the business resources of the Company's service sector, and smoothly
promote the development of the Company's independent gas turbine, the Company evaluated and traded the equity of
the Sales Company, the equity of the Machinery Company, and the intellectual property rights of the independent gas
turbine, clarified the ownership, solved the outstanding problems, and further improved the Company's standardized
operation level.
II. Market Development
During the reporting period, the Company achieved new breakthroughs in the traditional market. Under the
situation that the electrification trend continued to deepen and the industry competition significantly intensified, the
Company exceeded the annual target by taking orders for steam turbines. It continuously deepened its strategic
cooperation with key customers, seized the opportunity of large-scale ethylene projects, and won the bid for all seven
ethylene projects, including project of PetroChina Jilin Petrochemical. It exerted the influence of benchmarking
projects in the coal chemical sector, improved the bid winning rate of products, and successively undertook many
projects such as projects of Xinjiang Zhongtai, Hesheng Silicon Industry and Jinchang Nenghua. It undertook the first
large-scale coal chemical project since the implementation of the "carbon peaking and carbon neutrality" policy, and
was awarded with the project of all the Inner Mongolia Baofeng coal-to-olefin units, which became a successful case
of the big customer system in the field of coal chemical industry. It concentrated on the target customers of superior
products and obtained continuous and stable orders in superior provinces. It flexibly used the market competition
strategy, and its market share of feed water pump/induced draft fan turbine in large power plants has obviously
rebounded.
During the reporting period, the Company achieved "fist" products going abroad, and productive results in the
Middle East and other regions in driving business, with a total of 11 sets of units came into effect throughout the year.
The successful implementation of refrigeration compressor set in MTBE unit of SABIC Group in Saudi Arabia
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Summary of 2023 Annual Report
marked the first application of steam turbine compressor set made in China in local refining and chemical projects in
Saudi Arabia, which opened up a new situation for high-end market expansion of China's power equipment in the
Middle East. Its word-of-mouth effect of feed water pump sector gradually appeared, and it won the bid for 10 sets of
300,000-grade feed water pump steam turbines in the Indonesian market throughout the year. It achieved results in
the power generation sector, undertaking 12 sets of overseas projects throughout the year, and expanding its market to
Cyprus, Syria, Mexico and Cote d'Ivoire.
III. Transformation and Upgrading
During the reporting period, the Company built an all-round integrated service model based on the whole life
cycle of the unit and covering all links, and built and put into operation the "localization service" demonstration area
in Pakistan. It completed the phase II construction of the service management platform, and realized the system
information chain through the "life cycle management of large customer equipment". It integrated resources such as
condition monitoring, fault diagnosis and life extension evaluation to promoted the construction of "Hangzhou
Turbine Smart O&M Center". It established the management mechanism of customer return visit, patrol inspection
and training; improved service quality and efficiency based on user demand, and realized service system
standardization.
During the reporting period, the Company carried out lean design and lean research and development in various
dimensions, and completed the development of 12 new product projects, including the 6.3㎡ exhaust Cyprus project
with the largest exhaust model, Kangheng Hanchuan project with ultra-short delivery period, etc., and completed the
series development and application of subcritical units and high-speed and high-efficiency condensing units. It
overcame the development challenges of double-cylinder and dual-speed, axial-exhaust and subcritical units. It was
prepared to adapt to the requirements of digital delivery and personalized factory materials market in terms of
technology, and continued to narrow the design and implementation differences of new foreign trade-driven markets.
During the reporting period, the Company strengthened the management of scientific research projects and
improved the conversion rate of results, and established 37 scientific research projects and accepted 41 projects; It
was awarded with 6 authorized invention patents, 12 utility models and 5 software copyrights. It completed the
accreditation of high-tech enterprises and the accreditation and evaluation of national enterprise technology centers,
and organized the application for the key laboratory of rotor dynamics research of industrial steam turbines in
Zhejiang Province and the lanneret enterprise with leading technology. In 2023, the Company won two "Pioneer"
projects in Zhejiang Province, one first prize and one second prize for scientific and technological progress in
Zhejiang Province, and one second prize for scientific and technological progress in China machinery industry.
During the reporting period, the Company achieved new breakthroughs in gas turbine development. It
completely completed the compressor test of independent gas turbine and obtained a series of key data, which was the
first successful compressor test of civil gas turbine in China; It successfully completed the full-temperature and full-
pressure test of the combustion chamber, which was the first time in China to carry out the test with a hydrogen
mixing ratio of over 20% in the full-size combustion chamber of an independent heavy-duty gas turbine; It completed
the first phase simulation test in the semi-physical laboratory and carried out the preparatory work for the complete
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Summary of 2023 Annual Report
machine test in an orderly manner; It gathered external superior resources, promoted the processing and
manufacturing of the complete machine and hot end parts of the independent gas turbine in an orderly manner, and
complete the first assembly of the rotor and the final assembly of the complete machine.
IV. Management Efficiency Improvement
During the reporting period, the Company started with the implementation of ERP projects and the construction
and identification of "future factories" at the municipal level, and continuously improved its digitalization, integration
and intelligence level; continuously improved and optimized platforms such as MES/PLM/OA and financial expense
management system; comprehensively promoted the construction of digital factories, deployed 67 workstations in
each workshop, and significantly improved the digitalization level of workshops; completed the development of data
cockpit platform and carried out the construction of base 3D virtual factory.
During the reporting period, the Company further improved the assessment of economic responsibility system,
optimized the assessment index system of each assessed subject, and realized scientific assessment methods,
systematized assessment orientation, personalized assessment indicators and refined agreement contents of all
departments. It started with project improvement to promote lean improvement, and declared and registered 30 lean
improvement projects and 24 acceptance projects throughout the year. It carried out the evaluation of departmental
lean management indicators in 10 departments, including Industrial Turbine Research Institute and Manufacturing
Department, and promoted the improvement of lean management capabilities of all departments. It fully summarized
the achievements of Lean 1.0, and formed a Lean 2.0 system plan by multi-dimensional construction.
During the reporting period, the Company focused on talent selection, use, education and retention, and
continuously improved the efficiency of human resource management. It promoted the overall performance
management, and 94% of the Company's grass-root employees participated in the annual overall performance
assessment and result evaluation; It completed the Medium and Long-term Human Resource Allocation Planning
Report for 2023 -2028 around the strategic orientation of its transformation. The Company adhered to the working
principles of "Party building leading, service centered, full participation, continuous improvement and incentive
orientation" and compiled the Guiding Opinions on Cultural Entry, so as to comprehensively enhance the soft power
of corporate culture.
3.Major accounting data and financial indicators
（1）Major accounting data and financial indicators for the last three years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□Yes No
In RMB
Changed over last
End of 2023 End of 2022 End of 2021
year（％
Gross assets（Yuan） 15,927,680,116.23 15,374,999,610.32 3.59% 16,319,667,628.76
Net assets attributable
to shareholders of the
listed company 7,899,275,900.66 8,328,481,114.19 -5.15% 7,927,485,773.65
（Yuan）
Changed over last year
2023 2022 2021
（％）
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Summary of 2023 Annual Report
Operating revenue
5,924,238,021.22 5,518,841,939.82 7.35% 5,788,288,588.91
（Yuan）
Net profit attributable
to the shareholders of
the listed company 517,680,522.56 522,396,807.32 -0.90% 649,992,474.56
（Yuan）
Net profit after
deducting of non-
recurring gain/loss
attributable to the 362,006,895.23 379,955,440.30 -4.72% 428,122,980.65
shareholders of listed
company（Yuan）
Cash flow generated by
business operation, net 877,209,485.62 324,140,805.63 170.63% 71,809,489.02
（Yuan）
Basic earning per
0.44 0.45 -2.22% 0.57
share(Yuan/Share)
Diluted gains per
0.44 0.45 -2.22% 0.57
share(Yuan/Share)
Net asset earning ratio
6.38% 6.47% -0.09% 8.01%
（%）
（2）Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 1,089,224,031.37 1,533,021,021.62 1,271,711,463.48 2,030,281,504.75
Net profit attributable
to the shareholders of -48,089,348.88 197,789,095.01 124,458,434.91 243,522,341.52
the listed company
Net profit after
deducting of non-
recurring gain/loss
-59,744,696.75 164,860,343.72 93,744,617.14 163,146,631.12
attributable to the
shareholders of listed
company
Net Cash flow
generated by business -160,624,833.67 495,791,011.01 317,024,205.43 225,019,102.85
operation
Any material difference between the financial indicators above or their summations and those which have been
disclosed in quarterly or semi-annual reports?
□ Yes √ No
4.Share capital and shareholders
（1）Number of holders of ordinary shares and preference shares with restored voting right and Top
10 shareholders
In shares
Total number of Total shareholders The total number of prefe
common at the end of the rred shareholders Total preferred shareholders at the
shareholders at 10,862 month from the 10,987 0 end of the month from the date of 0
the end of the voting rights restored at p
date of disclosing eriod-end disclosing the annual report
reporting period the annual report
Top ten shareholders（Excluding shares lent through refinancing)
Number or share
Amount of pledged/frozen
Shareholders Proportion of Number of
Nature of
shares held shares held at restricted shares
shareholder State of
（%） period -end Amount
share
held
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Summary of 2023 Annual Report
State-owned Not
Hangzhou Turbine Holdings Co., Ltd. 58.68% 689,715,889 689,715,889 0
legal person applicable
Hangzhou Qitong Equity Investment State-owned Not
5.00% 58,810,799 58,810,799 0
Partnership（LP） legal person applicable
Foreign legal Not
China Merchants Secutities(HK)Co., Ltd. 0.73% 8,522,369 0 0
person applicable
GUOTAI JUNAN SECURITIES（HONG Foreign legal Not
0.69% 8,169,032 0 0
KONG） LIMITED person applicable
Foreign legal Not
Zhou Jie 0.68% 7,974,900 0 0
person applicable
ISHARES CORE MSCI EMERGING Foreign legal Not
0.57% 6,736,634 0 0
MARKETS ETF person applicable
VANGUARD TOTAL INTERNATIONAL Foreign legal Not
0.56% 6,578,411 0 0
STOCK INDEX FUND person applicable
VANGUARD EMERGING MARKETS Foreign legal Not
0.52% 6,144,344 0 0
STOCK INDEX FUND person applicable
Foreign legal Not
NORGES BANK 0.33% 3,922,665 0 0
person applicable
Domestic Not
Xia Zulin 0.32% 3,810,000 0 0
Natural person applicable
(1) Hangzhou Turbine Holdings Co., Ltd. is the holder of state-shares of the
Company, all other shareholders’ are holders of domestic listed foreign
shares (B shares)
Explanation on associated relationship among the aforesaid (2) There is no relationship between Hangzhou Turbine Holdings Co., Ltd..;
shareholders (3) Hangzhou Turbine Holdings Co., Ltd. and Hangzhou Qitong Equity
Investment Partnership（LP）are not an “action-in-concert” party with any
of other shareholders as described by the “Administration Rules of
Informational Disclosure about Change of Shareholding Statues of PLCs”.
Notes to the shareholders involved in financing securities (if
Not applicable
any)
Lending of shares by the top ten shareholders participating in refinancing business
□ Applicable √ Not applicable
The top ten shareholders have changed from the previous period
□ Applicable √ Not applicable
(2)Total preference shareholders and the shares held by the Top 10 Preference shareholders
□ Applicable √ Not applicable
The Company has no preferred shareholders during the reporting period.
(3)Block diagram of the ownership and control relations between the Company and the actual
controller
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Summary of 2023 Annual Report
5.Bonds in existence as of the approval date of the annual report
□ Applicable √ Not applicable
III. Important Events
Nil
Hangzhou Turbine Power Group Co., Ltd.
Chairman of the Board: Zheng Bin
April 30, 2024
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