2023 Annual Report
Stock Code: 200771 Stock ID: Hangqilun B Announcement No.: 2024-20
Hangzhou Turbine Power Group Co., Ltd.
2023 Annual Report
（Stock Code: 200771）
April 2024
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2023 Annual Report
I. Important Notice , Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness
of the Report.
Chairman Mr. Zheng Bin, Chief Financial Officer Zhao Jiamao, and the Chief of Accounting Department Mr.Lv
Lin hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.
All of the directors attended the board meeting on which this report was examined.
This Report contains prospective descriptions, which doesn’t constitute substantial commitment to investors.
Investors are requested to be aware of the risks attached to their investment decisions.
For the risks existing in the Company's operation, please refer to the section "Prospects for the future
development of the Company" in Section III "Management Discussion & Analysis".
The company's designated information disclosure media are: Shanghai Securities News (Chinese), Securities
Times (Chinese), Hong Kong Commercial Daily (English), http://www.cninfo.com.cn (In English and Chinese),
all information of the company is subject to the information published in the above selected media. Investors are
advised to pay attention to investment risks.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
Based on the Company's total share capital of 1,175,444,400 shares at the end of 2023, after deducting 434,803
treasury shares repurchased in December 2023 due to the retirement and resignation of equity incentive objects,
that is, based on 1,175,009,597 shares, a cash dividend of RMB 5 (including tax) will be distributed to all
shareholders for every 10 shares, instead of converting the reserve fund into share capital.
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2023 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
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2023 Annual Report
Documents available for inspection
1. Accounting statements carried with personal signatures and seals of legal representative, General Manager,
Chief Financial officer and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
4. Original copy of Resolutions of the Meeting of Board.
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2023 Annual Report
Definition
Terms to be defined Refers to Definition
Company, the Company Refers to Hangzhou Turbine Power Group Co., Ltd.
Holding shareholder, Turbine Holdings Refers to Hangzhou Turbine Holdings Co., Ltd.
State-owned Assets Supervision and Administration Commission of
Hangzhou SASAC Refers to
Hangzhou Municipal People's Government
Hangzhou Capital Refers to Hangzhou State-owned Capital Investment and Operation Co., Ltd.
Hangzhou Qitong Refers to Hangzhou Qitong Equity Investment Partnership（LP）
The report period, the current period, the
Refers to January 1,2023-December 31,2023
current year
Zhongneng Co. Refers to Hangzhou Zhongneng Steam Turbine Power Co., Ltd.
Casting Co. Refers to Hangzhou Steam Turbine Casting Co., Ltd.
Packaged Tech. Co. Refers to Zhejiang Steam Turbine Packaged Technology Development Co., Ltd.
Machinery Co. Refers to Hangzhou Steam Turbine Machinery Equipment Co., Ltd.
Auxiliary Machine Co. Refers to Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd.
Turbine Co. Refers to Zhejiang Turbine Import & Export Co., Ltd.
Zhongrun Company Refers to Zhejiang Zhongrun Gas Turbine technology Co., Ltd.
New Energy Company Refers to Hangzhou Steam Turbine New Energy Co., Ltd.
Hangfa Company Refers to Hangzhou Hangfa Power Generation Equipment Co., Ltd.
Sales Company Refers to Hangzhou Steam Turbine Sales Service Co., Ltd.
China mechanical and Electrical Institute -HSTG (Hangzhou) United
China mechanical and Electrical Institute Refers to
Institutes Co., Ltd.
Ranchuang Company Refers to Zhejiang Ranchuang Turbine Machinery Co., Ltd.
Western Power Refers to Pengzhou Western Power Blue Technology Co., Ltd.
Guoneng Company Refers to Hangzhou Guoneng Steam Turbine Engineering Co., Ltd.
Huayuan Company Refers to Zhejiang Huayuan Steam Turbine Machinery Co., Ltd
Anhui Casting Company Refers to Anhui Hangqi Casting Technology Co., Ltd.
Industry and trade company Refers to Hangzhou Steam Turbine Industry and trade Co., Ltd
The Board of Directors Refers to The Board of Directors of Hangzhou Turbine Group Co., Ltd.
The Supervisory Committee of Hangzhou Turbine
The Supervisory Committee Refers to
Power Group Co., Ltd.
The Shareholders’ Meeting Refers to The Board of Directors of Hangzhou Turbine Power Group Co., Ltd.
RMB, RMB0’000, RMB000’000’000 Refers to RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
MW Refers to Unit of power: 1000KW
MES Refers to Manufacturing execution system
PLM Refers to Product lifecycle management
ERP Refers to Enterprise Resources Planning
OA Refers to Office Automation
CRM Refers to Customer relationship management
SRM Refers to Supplier relationship management
DCS Refers to Distributed control system
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2023 Annual Report
II. Basic Information of the Company and Financial index
I. Basic Information
Stock ID Hangqilun B Stock Code 200771
Modified stock ID (if any) Not applicble
Stock Exchange Listed Shenzhen Stock Exchange
Company Name in Chinese 杭州汽轮动力集团股份有限公司
Short form of Company
杭汽轮
Name in Chinese
Name in English HANGZHOU TURBINE POWER GROUP CO.,LTD.
Abbreviation in English HTC
Legal representative: Zheng Bin
Reg. Add. Building 1, No.608, Kangxin Road, Linping District, Hangzhou City, Zhejiang
Post Code 311106
In May 2021, The registered address of the company has been changed from No.357, Shiqiao
Road, Hangzhou city, Zhejiang Province to Building 1, No.608, Kangxin Road, Economic and
Technological Development Zone, Yuhang District, Hangzhou City, Zhejiang
Historical change of the
In June 2022, The registered address of the company has been changed from
company's registered address
Building 1, No.608, Kangxin Road, Economic and Technological Development Zone,
Hangzhou City, Zhejiang to Building 1, No.608, Kangxin Road, Linping District, Hangzhou
City, Zhejiang
Office address No.1188, Dongxin Road, Gongshu District, Hangzhou, Zhejiang
Post code of the office
310022
address
Internet Web Site www.htc.cn
E-mail lgw@htc.cn
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Li Guiwen Li Xiaoyang
No.1188, Dongxin Road, Gongshu No.1188, Dongxin Road, Gongshu
Address District, Hangzhou, Zhejiang District, Hangzhou, Zhejiang
Tel. 0571-85780058 0571-85780438
Fax. 0571-85780433 0571-85780433
Email. lgw@htc.cn lixiaoyang@htc.cn
III. Place for information disclosure
Press media for information disclosure www.szse.cn
Securities Times, Shanghai Securities Daily, Hong Kong
Web address for the annual report as assigned by CSRC. Commercial Daily and
www.info.com.cn
The place where the Annual report is prepared and placed Office of the Board of directors
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2023 Annual Report
IV. Changes in Registration
Organization code 913300007042026204
The original scope of main businesses of the Company: The
design and manufacturing of steam turbine, gas turbine, other
rotating and to-and-fro machinery and auxiliary equipment, and
spare parts and components, sales of self-manufactured
products and the providing of relevant after-sales service and
import & export service.
In July 2008, the business scope was modified to: Design and
manufacturing of steam turbine, gas turbine, other rotating and
to-and-fro machinery and auxiliary equipment, and spare parts
and components, sales of self-manufactured products and the
providing of relevant after-sales service; sales and import &
export of power plant, industrial driving, industrial turbine
equipment and complete equipment. For those involve in quota
or licensing shall follow legal procedures.
Change of main business since listed In March 2009, the business scope was modified to: Design
and manufacturing of steam turbine, gas turbine, other rotating
and to-and-fro machinery and auxiliary equipment, and spare
parts and components, sales of self-manufactured products and
the providing of relevant after-sales service; sales and import &
export of power plant, industrial driving, industrial turbine
equipment and complete equipment.
In December 2016, the business scope was modified to: Design
and manufacturing of steam turbine, gas turbine, other rotating
and to-and-fro machinery and auxiliary equipment, and spare
parts and components, sales of self-manufactured products and
the providing of relevant after-sales service; sales and import &
export of power plant, industrial driving, industrial turbine
equipment ,complete equipment and Energy conservation and
environmental protection projects.
Hangzhou Turbine Power Group Co., Ltd. is the controlling
shareholder of the Company, and the actual controller of the
Company is the State-owned Assets Supervision and
Administration Commission of Hangzhou Municipal People's
Government. On December 2020, Hangzhou SASAC
Change of holding shareholder (if any) transferred 90% of the shares of the Company held by itself to
its wholly-owned company Hangzhou State-owned Capital
Investment and Operation Co., Ltd., thus Hangzhou Capital
became the indirect controlling shareholder of the company,
and neither the direct controlling shareholder nor the actual
controller of the company changed.
V. Miscellaneous information
CPA hired by the Company
Pan-China Certified Public Accountants (Special general
Name of the CPA
partnership)
B Unit, Huarun Building, No.1366, Qianjiang Road, Jianggan
Address of the CPA District Hangzhou
Name of CPA signed on the auditors’ report Sheng Weiming, Lin Qunhui
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable √Not applicable
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
□ Applicable √Not applicable
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2023 Annual Report
VI.Summary of Accounting data and Financial index
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□Yes √No
Changed over last year
2023 2022 2021
（％）
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%
（%）
Changed over last year
End of 2023 End of 2022 End of 2021
（％
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）
The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the
last three fiscal years is negative, and the auditor's report of the previous year shows that the Company’s going
concern ability is uncertain.
□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.
□ Yes √No
VII.The differences between domestic and international accounting standards
1. Differences between the net profit and net asset in the financial reports prepared under IAS and
Chinese Accounting Standard
□ Applicable √Not applicable
No difference in the reporting period.
2. Differences between the net profit and net asset in the financial reports prepared under IAS and
Chinese Accounting Standard
□ Applicable √Not applicable
No difference in the reporting period.
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2023 Annual Report
VIII.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
-48,089,348.88 197,789,095.01 124,458,434.91 243,522,341.52
shareholders of the listed company
Net profit after deducting of non-
recurring gain/loss attributable to -59,744,696.75 164,860,343.72 93,744,617.14 163,146,631.12
the shareholders of listed company
Net Cash flow generated by
-160,624,833.67 495,791,011.01 317,024,205.43 225,019,102.85
business 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
IX. Items and amount of non-current gains and losses
√ Applicable □ Not applicable
In RMB
Items Amount (2023) Amount (2022) Amount (2021) Notes
It is mainly due to the
proceeds from the
Non-current asset disposal relocation of assets of
gain/loss(including the write-off
80,700,238.39 -792,933.90 -77,159,058.06 Zhongneng Company and
part for which assets impairment
provision is made) the investment real estate
disposal of Hangfa
Company
It’s mainly due to the
Government subsidy recognized
government subsidy
in current gain and
confirmed in the current
loss(excluding those closely
82,198,992.80 57,161,745.42 129,850,767.59 period for the relocation
related to the Company’s
compensation of the
business and granted under the
Shiqiao Road plant of the
state’s policies)
joint-stock company
Gain and loss from change of the
fair value arising from
transactional monetary assets,
transactional financial liabilities
as held as well as the investment
It is mainly due to the
income arising from disposal of
investment income of bank
the transactional monetary assets, 14,106,890.90 36,974,039.31 75,295,281.43
wealth management
transactional financial liabilities
products
and financial assets available for
sale excluding the effective
hedging transaction in connection
with the Company’s normal
business
Capital occupation charges on
non-financial enterprises that are
0.00 127,908.28
recorded into current gains and
losses
Gain/loss on entrusting others
0.00
with investments or asset
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2023 Annual Report
management
Gain/loss from external entrusted
0.00
loan
Asset impairment provisions due
acts of God such as natural 0.00
disasters
Reverse of the provision for
impairment of accounts
0.00 20,281,569.00 3,600,000.00
receivable undergoing
impairment test individually
Gains due to that the investment
costs for the Company to obtain
subsidiaries, associates and joint
ventures are lower than the
0.00
enjoyable fair value of the
identifiable net assets of the
investees when making the
investments
Net gain and loss of the
subsidiary under the common
control and produced from
0.00 -29,001,203.15
enterprise consolidation from the
beginning of the period to the
consolidation date
Gain/loss on non-monetary asset
0.00
swap
It is mainly due to the debt
Gains/losses of debt restructure 6,496,130.62 7,035,391.36 1,617,382.00 restructuring income of
Turbine Company
One-off costs incurred by the
Company as a result of
discontinued operations, such as 0.00
expenses for employee
arrangements
One-time effect on current profit
or loss due to adjustments in tax,
0.00
accounting and other laws and
regulations
One-time share-based payments
recognized due to cancellation
0.00
and modification of equity
incentive plans
Gain or loss on changes in the
fair value of employee benefits
payable after the vesting date for 0.00
cash-settled share-based
payments
Gain or loss on fair-value
changes in investment property
of which subsequent 0.00
measurement is carried out using
the fair value method
Income from transactions with 0.00
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2023 Annual Report
distinctly unfair prices
Gain or loss on contingencies
that are unrelated to the
0.00
Company's normal business
operations
Income from charges on
0.00
entrusted management
It is mainly due to the
liquidated damages
Operating income and expenses
64,888,473.66 54,844,106.11 123,214,403.44 income recognized by the
other than the aforesaid items
customer's termination of
the contract
Other gains and losses that meet
the definition of exceptional 0.00 -1,732,271.11
gain/loss
Less: Influenced amount of
32,530,196.68 17,931,285.99 13,388,887.75
income tax
Amount of influence of minority
60,186,902.36 13,526,901.46 -7,840,808.41
interests（After tax）
Total 155,673,627.33 142,441,367.02 221,869,493.91 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ApplicableNot applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
-- Extraordinary Profit/loss
□ApplicableNot applicable
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2023 Annual Report
III. Management Discussion & Analysis
I. Industry information of the Company during the reporting period
In 2023, faced with the complicated and severe international environment and arduous domestic reform,
development and stability tasks, China's economy rebounded, supply and demand improved steadily,
transformation and upgrading were actively advanced, and high-quality development solidly advanced, and the
main expected goals were completely achieved. According to the data released by the National Bureau of
Statistics on January 17, 2024, the annual GDP was RMB 126,058.2 billion, with an increase of 5.2% over the
previous year at constant prices. In the whole year, the added value of industrial enterprises above designated
size increased by 4.6% over the previous year, of which the added value of equipment manufacturing increased
by 6.8%. The main upstream industries of the Company are analyzed as follows:
During the reporting period, the economic operation of China's petrochemical industry generally showed a
trend of rebound from low level and steady progress. According to the data of the National Bureau of Statistics,
in 2023, the petrochemical industry realized an operating income of RMB 15.95 trillion, down 1.1% year-on-
year, and a total profit of RMB 873.36 billion, down 20.7% year-on-year. According to the Economic
Operation of Petroleum and Chemical Industry in China in 2023 published by China Petroleum and Chemical
Industry Federation, in 2023, China's crude oil processing volume reached 735 million tons, with a year-on-year
increase of 9.3%, and its apparent consumption was 770 million tons, with a year-on-year increase of 8.5%.
Both crude oil processing volume and apparent consumption reached record highs. In 2023, the petrochemical
industry has made new breakthroughs and progress in scientific and technological innovation, green and low-
carbon transformation and digital upgrading, deepening international cooperation, cultivating world-class
enterprises and modern industrial clusters, and studying industrial policies and major issues. In 2023, the
operating income and profit of the petrochemical industry decreased simultaneously, mainly because the prices
of crude oil, natural gas and most chemical products decreased greatly. The data shows that in 2023, the ex-
factory price of China's oil and gas exploration industry decreased by 10.2% year-on-year, and the ex-factory
price of chemical raw materials and products decreased by 9% year-on-year; In 2023, the prices of key
monitored inorganic chemicals and organic chemicals decreased year-on-year and on a cycle basis, and the
decrease in most months was above 50%. In 2023, the average price of Brent crude oil was USD 82.6/barrel,
with a year-on-year decrease of 18.3%. Because of the sharp drop in the prices of crude oil, natural gas and
most petrochemical products, in 2023, the whole petrochemical industry faced "increased production and sales
without increased profits".
During the reporting period, the modern coal chemical industry suffered new difficulties, and its benefits
were greatly reduced. According to the prediction of the Coal Chemical Industry Committee of China
Petroleum and Chemical Industry Federation, in 2023, the profit of coal-to-liquid decreased by 52.7%, the profit
of coal-to-gas decreased by 39%, and the profit of coal-to-olefin decreased by 82.4%. Coal-to-ethylene glycol
continued to lose RMB 1.87 billion in 2023 after years of losses; The performance of coal-to-olefins in previous
years did not re-appear, and the revenue decreased by 7.8% year-on-year. Under the bleak situation that the
profit greatly dropped by 82.4%, the profit margin of revenue was only 0.52%. The new dilemma faced by
modern coal chemical industry is not only due to the high price of raw coal and high price of electricity, but also
due to the similarity and insufficient differentiation and high-end of product structure.
During the reporting period, the annual power supply was safe and stable, power consumption was stable
with increase, power supply and demand were generally balanced, and the green and low-carbon transformation
of power continued to advance. In 2023, the electricity consumption of the whole society was 9.22 trillion kWh,
with a per capita electricity consumption of 6,539 kWh; The electricity consumption of the whole society
increased by 6.7% year-on-year, with a growth rate of 3.1 percentage points higher than that in 2022. The
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2023 Annual Report
recovery of the national economy boosted the year-on-year growth rate of electricity consumption. By the end
of 2023, the full-caliber installed power generation capacity in China was 2.92 billion kilowatts, with by year-
on-year increase of 13.9%. After the historical breakthrough of 1 kilowatt per person at the end of 2014, the
installed power generation capacity of per capita was over 2 kilowatts per person for the first time in 2023,
reaching 2.1 kilowatts per person. The installed capacity of non-fossil energy power generation exceeded the
installed capacity of thermal power for the first time in 2023, accounting for more than 50% of the total
installed capacity for the first time in 2023, and the installed capacity of coal-fired power accounted for less
than 40% for the first time. The trend of green and low-carbon transformation in the power industry continued
to advance in terms of types of investment, growth rate of installed power generation and structural changes.
During the reporting period, power investment grew rapidly, and non-fossil energy power generation
investment accounted for 90% of power investment. The installed capacity of new grid-connected solar power
generation exceeded 200 million kilowatts, and the total installed capacity of grid-connected wind power and
solar power generation exceeded 1 billion kilowatts. Hydropower generation decreased year-on-year, and the
proportion of coal-fired power generation was still close to 60%, giving full play to the role of ensuring supply.
II.Main Business the Company is Engaged in During the Report 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
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.
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2023 Annual Report
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.
As the major producer of industrial equipments in China, our company is mainly benefited from the
following factors in terms of the elements driving our business performance:
1. On the basis of market demands. The relevant market demands fluctuate differently due to various business
condition and investment cycles in different industrial fields. The company further made more specified positions
toward the market for the products, implemented the differentiated marketing strategy, and integrated the business
sectors and tapped into the potential, According to different customers' needs, it has further consolidated the
original market position and broadened the market share in new fields through precise matching and precise
policies.
2. Innovation and further reform in difficult areas of product technology ： Our company continuously
improves product technical performance and tackles hard issues in the scientific researches of product structure,
core parts, basic design, manufacturing technology, material technology, etc. In addition, basing on clients’
demands, To push forward the intelligence of our products and the development of the integration technology.
Meantime, the company cooperated with universities, scientific research institutes to build the technological
exchange and cooperation platform.
3. Upgrading of industrial structure transformation ： The company jointed with Siemens to enter the
distributed energy market and enhance the development and utilization of natural gas distributed energy. 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. The Company established a new energy company to
deeply explore the cogeneration needs of customers in the petrochemical field, and gradually transformed to
engineering, systematization and financialization.
4. Brand and market position：The company’s products have a good reputation and extensive brand influence
in the domestic market, The company has maintained a leading market share in the domestic industrial drive.
The company's products have a high reputation and brand influence in the domestic market.
5.Cost controlling level：As domestic labor costs continue to rise and the price of industrial products continue
to decline, the product profitability is facing a severe test. In recent years, the company continuously improves
the level of costs controlling by improving the organizational structure, optimizing business processes, enhancing
the supply chain controlling, strengthening risk management, raising the efficiency of all the staff and so on.
6.Emphasis on quality engineering and services: promote the key project management, meticulously plan key
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2023 Annual Report
projects, implement dynamic quality supervision; attach importance to products’ after-sales service market,
integrate existing resources to increase after-sales service initiative, extend product value chain, and promote
the company’s transformation from manufacturing to service.
III. Analysis On core Competitiveness
Firstly. A complete technical innovation system was established. The Company has under its possession of
national, provincial, and municipal grade technical centers, a doctorial workstation, and an academician
workstation. Close co-operations were carried out with institutions and universities from throughout the country.
As the main drafter of national standard on industrial steam turbine, the Company has the newest technical trend
under its close observation. The Company is now providing nearly 600 different models of steam turbines to the
customers and hold the newest technical system covering the product lines up to 150 MW.Cooperating with
Siemens Energy in the field of gas turbine, our company has been capable of selecting the model of the
combined recycling project of distributed energy. In addition, our company has also been able to finish the
independent processing or supporting work which doesn’t need to depend on the gas turbine machine.
Secondly .The advantages of solutions. The modular design of industrial steam turbine and the production
pattern featuring parallelization production enable our company to give considerations to the cost, date of
delivery and clients’ demands in the process of production in accordance with clients’ personalized designs,
thereby making our company capable of advancing with the development trend of individual requirements. Our
company has always been devoting to the localization in terms of the gas turbine business so as to achieve the
localized one-stop service step by step including the sale, production, installation, debugging, operation,
training and after-sale service. Our company has always been striving to provide clients with the complete
equipment of gas turbine power station and the efficient total solutions.
Thirdly, the Company has established strategic co-operations with main customers in the country. Further
marketing approaches were carried on by involving itself in the customers’ value. A sound and steady image has
been set up in the domestic steam turbine market. In the global market, the Company has acquired multiple
important certifications and has established a primary global recognition.
Fourthly, the Company has its complete service providing system. The Company is not only capable to provide
onsite 24-hour service for the Company’s own products, but also accumulated rich experiences in technical
maintenance and reengineering of other manufacturers’ products.
Fifthly, the Company has cultivated a significant advantage in human resources. Great importance has been
attached to construction of work teams with collection of high-end workforce in the areas of research &
development, At the same time, our company values the cooperation with universities. “Zhejiang Technical
Association for Gas Turbines in Equipment Manufacturing Industry” was officially founded jointly by our
company and Zhejiang University and other scientific research institutions to build a new platform for
integration of production and research in terms of gas turbine technology. The Company has cultivated a
significant advantage in human resources. Great importance has been attached to construction of work teams
with collection of high-end workforce in the areas of research & development, designing, technique, testing,
and quality control.
15
2023 Annual Report
IV.Main business analysis
(1)General
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.
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,
16
2023 Annual Report
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 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.
17
2023 Annual Report
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 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
18
2023 Annual Report
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.
(2) Revenue and cost
1. Component of Business Income
In RMB
2023 2022 Increase
Amount Proportion Amount Proportion /decrease
Total operating
5,924,238,021.22 100% 5,518,841,939.82 100% 7.35%
revenue
On Industry
Boiler and power
5,582,849,628.15 94.24% 5,188,669,908.73 94.02% 7.60%
machine manufacture
Other 341,388,393.07 5.76% 330,172,031.09 5.98% 3.40%
On product
Industrial steam
3,952,602,059.45 66.72% 4,076,774,674.12 73.87% -3.05%
turbine
Gas turbine 1,025,900,314.72 17.32% 492,370,197.44 8.92% 108.36%
Part 511,822,749.35 8.64% 492,024,155.23 8.92% 4.02%
Hydroelectric
92,524,504.63 1.56% 127,500,881.94 2.31% -27.43%
generating set
Service 241,269,863.12 4.07% 199,414,862.30 3.61% 20.99%
Other 100,118,529.95 1.69% 130,757,168.79 2.37% -23.43%
On Area
Domestic 5,662,655,362.16 95.58% 5,307,263,153.68 96.17% 6.70%
Overseas 261,582,659.06 4.42% 211,578,786.14 3.83% 23.63%
Sub-sale model
Direct selling 5,924,238,021.22 100.00% 5,518,841,939.82 100.00% 7.35%
2.Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
√ Applicable □ Not applicable
In RMB
Gross Increase/decrease Increase/decre Increase/dec
Turnover Operation cost profit of revenue in the ase of rease of
rate(%) same period of the business cost gross profit
19
2023 Annual Report
previous year(%) over the same rate over the
period of same period
previous year of the
(%) previous
year (%)
On Industry
Boiler and power
5,582,849,628.15 4,271,924,694.64 23.48% 7.60% 12.80% -3.53%
machine manufacture
On product
Industrial steam turbine 3,952,602,059.45 2,959,611,463.47 25.12% -3.05% 1.14% -3.10%
Gas turbine 1,025,900,314.72 923,192,649.00 10.01% 108.36% 104.92% 1.51%
On Area
Domestic 5,662,655,362.16 4,294,455,550.36 24.16% 6.70% 11.69% -3.39%
Sub-sale model
Direct selling 5,924,238,021.22 4,475,707,358.67 24.45% 7.35% 11.13% -2.57%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √ Not applicable
3.Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Business Change over same
Items Unit 2023 2022
period last year
categories
Sales Set/package 475 430 10.47%
Output Set/package 450 387 16.28%
Steam turbine
Inventory Set/package 116 141 -17.73%
Sales Set/package 12 9 33.33%
Output Set/package 12 10 20.00%
Gas turbine
Inventory Set/package 1 1 0.00
Sales Set/package 6 7 -14.29%
Compressor Output Set/package 6 7 -14.29%
Inventory Set/package 8 8 0.00%
Sales Set/package 138 120 15.00%
Electric generator Output Set/package 128 116 10.34%
Inventory Set/package 59 69 -14.49%
Reasons for y-o-y relevant data with over 30% changes
Applicable □Not applicable
During the reporting period, with the adjustment of national industrial policies, the demand for small and
medium-sized gas turbines for distributed natural gas power generation and enterprise-owned power plants
increased, and the Company seized this market opportunity and achieved a substantial increase in gas turbine
production and sales.
20
2023 Annual Report
4.Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□Applicable √ Not applicable
5.Component of business cost
Products category
In RMB
2023 2022 Increase/De
Products category Proportion in Proportion in crease (%)
Items
Amount the operating Amount the operating
costs (%) costs (%)
Industrial steam
—— 2,959,611,463.47 66.13% 2,926,312,935.21 72.66% 1.14%
turbine
Gas turbine, —— 923,192,649.00 20.63% 450,505,091.08 11.19% 104.92%
Part —— 308,157,474.60 6.89% 315,664,695.86 7.84% -2.38%
Hydroelectric
—— 80,963,107.57 1.81% 94,839,475.22 2.35% -14.63%
generating set
Engineering service —— 139,463,800.02 3.12% 133,770,379.97 3.32% 4.26%
Other —— 64,318,864.01 1.42% 106,322,225.92 2.64% -39.51%
Subtotal 4,475,707,358.67 100.00% 4,027,414,803.26 100.00% 11.13%
Note：Nil
6.Whether Changes Occurred in Consolidation Scope in the Report Period
√ Yes □ No
Please refer to Section X(9) of this report for details.Explanation on the changes in the scope of the consolidated.
7.Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √ Not applicable
8.Situation of Main Customers and Main Supplier
Information of Main sales customers
Total sales amount to top 5 customers (Yuan) 1,877,972,228.01
Proportion of sales to top 5 customers in the annual sales(%) 31.70%
Proportion of the sales volume to the top five customers in the
0.00%
total sales to the related parties in the year
Information of the Company’s top 5 sales customers
No Name Amount（RMB） Proportion
1 Customer 1 973,313,997.85 16.43%
2 Customer 2 242,844,955.81 4.10%
3 Customer 3 233,973,451.34 3.95%
4 Customer 4 224,397,345.14 3.79%
5 Customer 5 203,442,477.87 3.43%
Total -- 1,877,972,228.01 31.70%
Other notes
□ Applicable √ Not applicable
Principal suppliers
21
2023 Annual Report
Total purchase of top 5 Suppliers（Yuan） 1,495,370,896.88
Percentage of total purchase of top 5 suppliers In total annual
25.06%
purchase(%)
Proportion of purchase amount from the top 5 suppliers in the
0.00%
total purchase amount from the related parties in the year
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
1 Supplier 1 637,521,805.24 10.68%
2 Supplier 2 425,269,266.48 7.13%
3 Supplier 3 165,412,326.73 2.77%
4 Supplier 4 139,130,903.61 2.33%
5 Supplier 5 128,036,594.82 2.15%
Total -- 1,495,370,896.88 25.06%
Other notes
□ Applicable √ Not applicable
(3)Expenses
In RMB
Increase/De
2023 2022 Notes
crease(%)
Sale expenses It’s mainly due to the expansion of sales
business and the more reasonable collection of
309,537,776.05 221,489,523.60 39.75%
personnel social security expenses by salary
system upgrading.
Administration
539,443,616.46 590,938,269.71 -8.71% No major changes
expenses
Financial
-31,569,142.17 -29,296,397.92 -7.76% No major changes
expenses
R & D cost 276,685,638.98 284,239,883.04 -2.66% No major changes
(4) Research and Development
√ Applicable □ Not applicable
Expected impact on the
Name of main
Project purpose Project progress Goal to be achieved future development of the
R&D project
Company
Through the research and Develop the first set of Actively adapt to the
development of this ultra-large air separation development requirements
Development of The design and
project, continuously unit with adjustable of large-scale and super-
condensing research work of the
improve the technical steam extraction, develop large-scale air separation
steam turbines project has been
level of the company's a new type of steam inlet equipment, improved the
for 110,000 air completed as
super-large air separation pipe sealing structure, quality of products and
separation units required, and the
equipment development which reduces the services and brand
in Inner empty load test run
and realize the leakage of fresh steam, influence, and continuously
Mongolia and has been completed
synchronous development and at the same time, improve the cost
Ningxia Baofeng based on the unit.
with the international promotes the sectional performance ratio of
advanced level. standardized products and services
22
2023 Annual Report
management of wood through cost management
molds, improves the and improve the
utilization rate of wood comprehensive
molds, and reduces the competitiveness of the
project design and Company.
manufacturing costs.
Develop and design
The supporting steam
HNGL32/45/40 for high-
turbine of this project is The successful
pressure cylinders and
the first set of ultra-high development of the project
Develoment of NK63/2.2 for low-
pressure medium The design and will mark the Company's
the first set of pressure cylinders, newly
temperature, non-reheat, development of the new breakthrough in the
ultra-high develop GL45 exhaust
intermediate project has been field of ultra-high-speed,
pressure medium hood with upper exhaust
dehumidification steam completed as double-cylinder and dual-
temperature and low back pressure,
turbine in the field of required, and the speed axial-exhaust
double-cylinder broaden the range of
garbage power generation commissioning garbage power generation,
dual-speed steam existing low back
in China, and it will seize verification has been which is of great milestone
turbine in pressure series, newly
the market of garbage completed at the user significance in the garbage
Hanchuan develop 2.2 exhaust hood
power generation and site based on the unit. power generation and
Kangheng and DK-4-2.2 guide vane
biomass power generation biomass power generation
retaining ring, and adapt
through project research market.
to DK-4-2.2 guide vane
and development.
retaining ring.
The project unit is one of
the largest and most
complicated steam turbines
Development of in the Company's current
sub-critical The design and Develop UHG40/25 design and production
By developing subcritical
reheat double- research work of the model with large volume process. The cylinder, rotor
reheat double-cylinder
cylinder and project has been flow, and completely and blades have reached
and double-shaft steam
dual-speed axial- completed as design HNK90/6.3 the upper limit of the
supplement condensing
exhaust steam required, and the cylinder, inner cylinder, Company's production and
unit -UHG40/25 model,
turbine for empty load test run exhaust cylinder, bearing design level. The
seize the European
Cyprus 260MW has been completed seat and guide vane successful development of
market.
combined cycle based on the unit. retaining ring. the project will greatly
project enhance the Company's
design and manufacturing
capabilities and enhance its
brand influence in Europe.
By establishing a three-
Based on the real scene,
dimensional digital twin It completed the
build a three-dimensional
platform, establish a preparation of the
model of the
three-dimensional model blueprint requirement
manufacturing base, the
for the factory area, analysis specification
workshop interior and the
workshop, equipment and in September 2023,
production equipment, Effectively gather various
security facilities of the completed data
access the real-time information, improve
Construction of manufacturing base, and capture and sorting,
monitoring screen, management efficiency,
3D factory in dynamically obtain the software data
improve the sensitivity of and promote the process of
manufacturing status and operation data interface docking and
the security system, open informationization and
base of facilities and large-screen interface
up MES, ERP, WMS, digitalization of the
equipment in related docking in October-
MDC and other business Company.
systems, and realize December 2023, and
systems, and graphically
digital twin by combining completed internal
display the operation data
the three-dimensional acceptance of the
such as attendance,
model, thus realizing the project in the first
equipment status and
dual layout of virtual and quarter of 2024.
production process.
reality.
Design scheme Based on the design The project has Study and design the By developing the design
of heating scheme of heating turbine completed the design offshore mobile platform, scheme of offshore mobile
23
2023 Annual Report
turbine power power generation device and development determine the optimal power supply in self-
generation of 20-100MW offshore work as required, and scheme and sub-optimal elevating platform for
device based on mobile platform, broaden completed the scheme of the main and heating steam turbine and
nuclear power the Company's nuclear external review. auxiliary equipment and the decoupling scheme of
offshore mobile turbine market. thermal system, and offshore mobile power
platform complete the relevant supply in cogeneration and
design and technical and electric heating, broaden
economic analysis at the the Company's business in
same time, and make the field of nuclear turbine.
comprehensive numerical
simulation calculation
and corresponding
analysis on the
electrothermal
decoupling of offshore
mobile power supply,
and form a report.
Company's research and development personnel situation
2023 2022 Increase /decrease
Number of Research and
Development persons 745 763 -2.36%
(persons)
Proportion of Research and
19.03% 19.15% -0.12%
Development persons
Academic structure of R&D personnel
Master 208 211 -1.42%
Bachelor 429 439 -2.28%
Other 108 113 -4.42%
Age composition of R&D personnel
Under 30 years old 128 114 12.28%
30-40 years old 303 335 -9.55%
Over 40 years old 314 314 0.00%
The Company's R & D investment situation
2023 2022 Increase /decrease
Amount of Research and
Development Investment 349,888,331.28 284,239,883.04 23.10%
(Yuan)
Proportion of Research and
Development Investment of 5.91% 5.15% 0.76%
Operation Revenue
Amount of Research and
Development Investment 0.00 0.00 0.00%
Capitalization (Yuan)
Proportion of Capitalization
Research and Development
0.00% 0.00% 0.00%
Investment of Research and
Development Investment
Reasons and influence of significant changes in R&D personnel composition of the Company
□ Applicable √Not applicable
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
□ Applicable √Not applicable
24
2023 Annual Report
（5）Cash Flow
In RMB
Items 2023 2022 Increase/Decrease(%)
Subtotal of cash inflow received
6,140,720,008.74 4,728,700,324.82 29.86%
from operation activities
Subtotal of cash outflow received
5,263,510,523.12 4,404,559,519.19 19.50%
from operation activities
Net cash flow arising from
877,209,485.62 324,140,805.63 170.63%
operating activities
Subtotal of cash inflow received
2,239,393,936.49 2,770,909,495.92 -19.18%
from investing activities
Subtotal of cash outflow for
2,046,873,949.40 2,358,498,758.85 -13.21%
investment activities
Net cash flow arising from
192,519,987.09 412,410,737.07 -53.32%
investment activities
Subtotal cash inflow received from
687,125,165.91 476,295,500.00 44.26%
financing activities
Subtotal cash outflow for financing
906,849,928.23 904,433,543.52 0.27%
activities
Net cash flow arising from
-219,724,762.32 -428,138,043.52 48.68%
financing activities
Net increase in cash and cash
856,588,179.26 337,489,433.69 153.81%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
In RMB
Increase/D
Items 2023 2022 Reason
ecrease(%)
Net cash generated from It is mainly due to the Company's active repayment
/used in operating 877,209,485.62 324,140,805.63 170.63% measures for long-aging units in this period, and the
activities amount of repayment greatly increased.
Mainly due to the decrease in net cash redemption of
Net cash flow generated bank wealth management products in this period. t
192,519,987.09 412,410,737.07 -53.32%
by investment is mainly due to the increase in net cash of bank
wealth management in this period.
Net cash flow generated Mainly due to the increase in net cash from bank loa
-219,724,762.32 -428,138,043.52 48.68%
by financing ns during the period.
Net increase of cash and
856,588,179.26 337,489,433.69 153.81% Based on the reasons for the above changes
cash equivalents
Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
√Applicable □Not applicable
It is mainly for the recovery of the payment of the long-aged unit whose income has been confirmed in the pervious period.
V.Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in total Sustainable (yes
Amount Explanation of cause
profit or no)
It is mainly due to the recognition income of
Other income 112,573,844.66 15.31% compensation for relocation of Shiqiao ——
factory, government subsidy and value-added
25
2023 Annual Report
tax plus credit.
Investment It is mainly due to dividends from Hangzhou
125,962,024.74 17.13% ——
income Bank.
Non-operating Mainly due to the compensation income from
67,284,290.91 9.15% ——
termination of agreements with customers.
income
Mainly due to the income from the disposal o
Income from f non-
68,805,634.27 9.35% ——
asset disposal policy relocation assets of China Energy Corp
oration.
VI.Condition of Asset and Liabilities
(1)Condition of Asset Causing Significant Change
In RMB
End of 2023 End of 2022
Proportion Notes to the
Proportion in Proportion in increase/de significant
Amount the total Amount the total crease change
assets(%) assets(%)
Monetary fund 2,798,168,129.50 17.57% 1,954,980,787.90 12.72% 4.85% ——
Accounts
2,242,141,940.94 14.08% 1,924,679,367.08 12.52% 1.56% ——
receivable
Contract assets 640,386,559.53 4.02% 587,719,735.46 3.82% 0.20% ——
Inventories 2,429,496,037.81 15.25% 2,322,461,286.52 15.11% 0.14% ——
Investment real
1,544,449.40 0.01% 6,451,478.55 0.04% -0.03% ——
estate
Long-term equity
0.00% 0.00% 0.00% ——
investment
Fixed assets 1,995,150,533.24 12.53% 1,926,594,610.89 12.53% 0.00% ——
Construction in
298,071,246.03 1.87% 286,290,854.97 1.86% 0.01% ——
process
Use right assets 34,274,571.45 0.22% 28,105,943.29 0.18% 0.04% ——
Short-term
504,428,866.04 3.17% 287,753,227.89 1.87% 1.30% ——
borrowing
Contract liabilities 2,753,211,717.09 17.29% 2,306,912,441.68 15.00% 2.29% ——
Long-term
222,819,841.07 1.40% 159,903,673.86 1.04% 0.36% ——
borrowing
Lease liabilities 15,945,346.47 0.10% 16,334,023.10 0.11% -0.01% ——
Overseas assets account for a relatively high proportion.
□ Applicable √ Not applicable
26
2023 Annual Report
(2)Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
In RMB
Gain/Loss on fair Cumulative fair value Impairment
Purchased amount in Sold amount in the
Items Opening amount value change in the change recorded into provisions in the Other changes Closing amount
the reporting period reporting period
reporting period equity reporting period
Financial assets
1.Transactional financial
assets（Excluding
607,001,143.44 -38,030.94 -908,513.56 1,652,702,021.26 1,691,502,406.27 568,162,727.49
Derivative financial
assets）
2. Derivative financial
724,756.61 724,756.61 724,756.61
assets
4.Other Equity
3,556,127,694.48 -834,656,882.42 2,330,516,772.06 2,721,470,812.06
Instrument Investment
5.Other non-current
5,534,773.22 5,534,773.22
financial assets
6.Financing of -
817,555,768.45 756,873,166.56
receivable 60,682,601.89
Subtotal of financial -
4,986,219,379.59 -833,970,156.75 2,330,333,015.11 1,652,702,021.26 1,691,502,406.27 4,052,766,235.94
assets 60,682,601.89
-
Total 4,986,219,379.59 -833,970,156.75 2,330,333,015.11 1,652,702,021.26 1,691,502,406.27 4,052,766,235.94
60,682,601.89
Financial Liability 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other change
Nil
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
(3) Restricted asset rights as of the end of this Reporting Period
27
2023 Annual Report
In RMB
Items End of Book balance End of Book value Restricted type Restricted reason
Monetary fund Bank acceptance bill margin, L/G margin and foreign
136,551,548.48 136,551,548.48 Pledge/Freeze
exchange transaction margin, etc.
Note receivable Discounted or endorsed bills undue that have not been
89,703,453.14 80,000,369.38 Discounted/endorsed
derecognized
Bank acceptance bills issued by pledge or bank
Receivable financing 60,417,669.80 60,417,669.80 Pledge
borrowings obtained
Fixed assets
141,658,223.80 96,623,112.51 Mortgage Utilized for mortgage to obtain the bank loan
Intangible assets 30,946,908.19 22,138,256.09 Mortgage Utilized for mortgage to obtain the bank loan
Total 459,277,803.41 395,730,956.26
VII. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2023(Yuan) Investment Amount in 2022(Yuan) Change rate
616,366,679.56 179,103,739.48 244.14%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
Whether
Name of Progress Gain or Discl
to
the Investment Investment Share Capital Investment up to Less or the Date of osure
Main Business Partner Product Type Anticipated Involve
Company Way Amount Proportion % Source Horizon Balance Current Disclosure Inde
Income in
Invested Sheet Date Investment x
Lawsuit
Acquisitio Chengdu http//
Western Gas turbine Completed
n and Self Ruicheng 5,370,769. January .ww
Power Manufacturing 102,670,000.00 56.64% Long-term maintenance equity No
capital fund Wanjin 67 17,2023 w.cni
Company business acquisition
increase Enterprise nfo.c
28
2023 Annual Report
Management om.c
Consulting n
Partnership Anno
(Limited unce
Partnership), ment
Chengdu No.:
Mengjiang 2023
Investment -02
Group Co.,
Ltd., and other
natural persons
Hangzhou
http//
Turbine Lanjin
.ww
Enterprise
w.cni
Management
nfo.c
Consulting
Steam turbine om.c
Machiner Partnership Completed
Acquisitio Self parts and October n
y Manufacturing 121,635,000.00 82.00% (Limited Long-term equity 0.00 No
n fund repair 11,2023 Anno
Company Partnership), acquisition
business unce
Hangzhou
ment
Turbine
No.:
Industry Co.,
2023
Ltd., and other
-87
natural persons
5,370,769.
Total -- -- 224,305,000.00 -- -- -- -- -- -- 0.00 -- -- --
67
29
2023 Annual Report
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □ Not applicable
In RMB
Accrued Reasons for not
Accrued Actual
Realized Reaching the
General Investment Investment Project
New plant Self- Capital Anticipated Income up to Planned Disclosure Disclosure
Yes equipment amount in this Amount up to the schedul date Index
project built Source income the End of Schedule and
manufacturing reporting period End of Reporting e
Reporting Anticipated
Period
Period Income
Annual
output of
General Self fund+
10 sets of Self- Loan for December Announcement
gas Yes equipment 152,537,949.72 234,238,227.81 46.85% 0.00 0.00 N/A
financial 22,2022 No.:2022-90
turbine built
manufacturing institutions
unit
project
Total -- -- -- 152,537,949.72 234,238,227.81 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Sale
Purchase Gain/loss
Mode of Book value balance Changes in fair Cumulative fair amount Book value balance Sauce of
Security Security Stock Initial amount of the Accounting
accounting at the beginning of value of the this value changes in in the at the end of the the
category code Abbreviation: investment cost in the this reporting items
measurement the reporting period period equity this reporting period shares
period period
period
Other
Domestic Hangzhou 2,721,470, equity Self
600926 390,954,040.00 FVM 3,556,127,694.48 -834,656,882.42 2,330,516,772.06
812.06 Instrument funds
and Bank
investment
30
2023 Annual Report
foreign
stocks
Domestic
Financial Debt
and 1,960,706.
000912 LUTIANHUA 2,869,219.80 FVM 1,998,737.18 -38,030.94 -908,513.56 assets restructu
foreign 24
transaction ring
stocks
Total 393,823,259.80 -- 3,558,126,431.66 -834,694,913.36 2,329,608,258.50 0.00 0.00 0.00 2,723,431,518.30 -- --
（2）Investment in Derivatives
□ Applicable √ Not applicable
5.Application of the raised capital
□ Applicable√ Not applicable
None
VIII. Sales of major assets and equity
(1) Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
(2)Sales of major equity
□ Applicable √ Not applicable
31
2023 Annual Report
IX. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company
Type Main business Registered capital Total assets Net assets Turnover Operating profit Net Profit
name
Auxiliary
Machine Subsidiaries Manufacturing 80,000,000.00 666,223,153.54 332,122,893.56 631,104,442.81 53,021,258.52 43,177,123.90
Co.
Packaged Commerce &
Subsidiaries 51,000,000.00 305,688,235.12 113,310,280.71 254,473,287.14 22,487,089.41 19,590,595.78
Tech. Co. trade
Machinery
Subsidiaries Manufacturing 30,000,000.00 422,783,898.45 278,221,043.17 378,044,818.89 125,343,616.60 102,277,655.21
Co.
Turbine Commerce &
Subsidiaries 20,000,000.00 122,641,219.81 63,246,638.08 86,206,084.49 3,562,220.84 5,884,741.38
Co. trade
Zhongneng
Subsidiaries Manufacturing 120,000,000.00 2,063,529,462.23 429,321,933.09 1,350,099,692.90 121,758,946.33 129,399,937.58
Company
Casting
Subsidiaries Manufacturing 29,500,000.00 746,413,603.37 378,374,367.61 545,729,720.19 29,635,665.20 29,541,174.70
Company
New
Energy Subsidiaries Manufacturing 500,000,000.00 1,650,520,619.62 385,273,574.51 797,366,958.59 91,276,793.84 88,426,975.17
Company
Ranchuang
Subsidiaries Manufacturing 155,000,000.00 290,390,998.16 208,006,745.08 58,034,985.46 8,570,415.62 7,298,054.99
Company
Subsidiaries obtained or disposed in the reporting period
√ Applicable □Not applicable
Means of acquisition and disposal of Impact on overall production, operation and
Company name
subsidiaries during the reporting period performance
Western Power Company Equity acquisition and capital increase No significant impact
Sales Company Agreement transfer No significant impact
Zhongrun Company Cancellation No significant impact
China mechanical and Electrical Institute Cancellation No significant impact
Note
32
2023 Annual Report
X. Structured subject situation controlled by the company
□ Applicable √ Not applicable
XI.Prospect for future development of the Company
(I) Development strategy and business plan for 2024
In 2024, on the basis of firmly implementing the "14th Five-Year Plan" and continuing the overall
business thinking in 2023, the company put forward the working policy of "reducing costs and increasing
efficiency, improving lean, focusing on culture and service transformation" around the transformation and high-
quality development, and made overall arrangements for the work in 2024.
I. Focus on four major tasks and gather high-quality development synergies
Development of gas turbine. According to the progress requirements of the development work plan of the
independent gas turbine, focus on the construction of the complete machine test capacity, the second phase of
semi-physical test, the development of independent O&M technology, and start the operation test of the
independent gas turbine.
Energy transformation. Concentrate on building a new energy business platform, launch an intelligent
O&M system for low-carbon thermal power plants as soon as possible, make existing industries better and
stronger in term of energy intelligence, and expand the industrial chain from the comprehensive low-carbon
equipment of energy. Accelerate the progress of SGT series gas turbine technology and after-sales localization,
enhance the engineering ability, expand the market scope of engineering business, and strive to realize the
integrated development of gas turbine business and engineering business.
Speed up transformation. Integrate the service resources of the whole group, build the organizational
framework and management mode of the Company's service center, and position and build a competitive
business core. Continue to promote the "double framework" implementation, focus on expanding customer
coverage, enrich data volume, promote the online operation of customer platforms, and extend to the
engineering sector. Continue to promote the digital engineering construction of the "full life cycle management"
service framework, establish and maintain customer communication channels, enhance customer experience
and stickiness, and gradually realize digital and intelligent full life cycle services.
Deepen reform. Focus on the main business, strengthen the core business, strengthen the construction of
the board of directors, and improve the governance mechanism of scientific and technological enterprises.
Establish and improve the market-oriented selection and employment mechanism, improve the tenure system
and contractual management of managers, and build a multi-level, multi-channel and high-quality talent
"selection and retention" system. Strengthen the market-oriented incentive and restraint mechanism and
improve the remuneration management system.
II. Comprehensively enhance market competitiveness based on the three business sectors
Tap into the market potential. Continue to strengthen the pre-sales efforts, obtain project information
through multiple channels, and adopt a flexible and balanced price linkage strategy to maintain the Company's
33
2023 Annual Report
profit level and market price balance. Give full play to the advantages of the key account management system
with the promotion of the key account management system as the main aspect, further consolidate and improve
the market share of back pressure power generation, feed water pump induced draft fan and core drive, and
build a solid market cornerstone of the Company. Well ensure overseas hot spots, key market layout and
"localization" management, accelerate the pace of overseas market expansion, increase investment and support
in overseas markets, optimize overseas project execution management, and improve the service efficiency of
overseas markets.
Strengthen technical guidance. Adhere to the development concept and technology and product
development promotion by high-quality, attach importance to the intelligent and lightweight upgrading of steam
turbine products, and accelerate the implementation of scientific research projects of steam turbine 3D twisted
blades and modular application of casting wood molds; Complete the R&D and design of key project units and
new products, develop and expand steam turbines for large ethylene plants, deeply study and promote
subcritical units, and lay out and develop air-cooled power generation products.
Focus on the connection between production and marketing. Carry out the lean concept of "all the
products are needed, and all the needed products have been produced", focus on the effectiveness of output and
the identification of users' real needs and further ensure the effectiveness of output. In 2024, it should focus on
the four requirements of "meticulous, accurate, lean and excellent", and continue to well ensure organization,
implementation, coordination, service and management of production and marketing, and fully complete the
production tasks. Focus on customer needs, reduce waste of resources, promote the pull-type management mode
of flexible metering and dispatching integration, and improve the management and control ability of production
forward planning.
III. Promote the three major projects and optimize the efficiency of organization and operation
Digital construction. Well ensure transformation and upgrading of business systems such as PLM, MES,
CRM and SRM, and start the construction of ERP phase II in due course. Optimize the management and
application of big data, including cloud platform O&M management, data analysis and display screen,
practically improve the collection and analysis of basic management data around the construction of data
warehouse, help improve decision-making ability, and enhance benefit from management by data elements.
Deepen Lean 2.0. Run the whole value chain thinking, focus on systematic and process improvement, and
make the whole manufacturing process lean; Explore digital methods to drive continuous lean improvement and
promote lean to intelligent. Benchmark the market and build a lean management system of Hangzhou Steam
Turbine with cost competitiveness, strong responsiveness and high efficiency.
Intelligent improvement. Continue to improve the construction of digital factories and plan the overall
plan for the construction of intelligent manufacturing upgrading projects in the next 5 years. Realize the
comprehensive display of information such as operation, energy consumption, equipment bearing and safety
management in the manufacturing base, and gradually use information big data to carry out analysis and
improvement. Benchmark first-class enterprises, continue to carry out pilot research on intelligent
manufacturing, and build intelligent production workshops.
IV. Benchmark the world first-class companies, improve business support ability
34
2023 Annual Report
Strengthen top-level design. With continuous reform as the core guarantee of strategy implementation,
realize the organic combination of resources of the group company and its subsidiaries, and ensure strategic
synergy for the new energy business carried out by each subsidiary, the group company and the new energy
company. Well ensure transformation planning around the strategy of "service transformation and going global",
and further promote the strategy of "integrated development" in terms of resource sharing, promotion and
mutual assistance, and signing mode. Optimize the organizational performance appraisal index system by
creating a world-class professional leading demonstration enterprise and continuously improve the scientificity
and effectiveness of the assessment.
Benchmark first-class standards. Improve the deeper understanding and application of industry standards,
combine the distribution of overseas projects, build the overseas order execution ability and mechanism to meet
the needs of internationalization, improve the qualification ability of existing personnel, optimize the calibration
system of inspection equipment, and actively respond to the production requirements of large-scale foreign
trade units with high standards and heavy tasks. With the problem of on-site unit as input, promote the problem-
oriented internal audit work; Combined with the problem of system management output, enhance value creation
by using lean thinking.
Highlight value creation. Continue to smooth the "dual channels" of employee structure adjustment and
career development, optimize the human resource structure, adhere to the value creation orientation, continue to
increase performance assessment, implement the application of performance results, and ensure the realization
of the Company's strategic objectives. Adhere to the direction of market-oriented reform and further improve
the efficiency of remuneration incentives. Combined with the goal of talent construction, optimize the talent
assessment and incentive scheme to stimulate the innovation and creativity of talents.
(II) Possible risk factors
1. Market risk
Due to overcapacity of domestic steam turbine industry, market competition has intensified. The national
goal of "peak emission and carbon neutrality" will have a profound impact on high-emission industries such as
petrochemical, steel, electric power and building materials, and the Company's product sales will be
continuously impacted. The Company will rely on technological innovation, highlight core technological
advantages, expand marketing channels, innovate marketing working modes, improve product quality and
terminal service capabilities, strive to increase added value of products, actively tap potential demand, expand
new business growth points such as gas turbines and services, and actively respond to and resolve market risks.
2. Contract performance risks
With the increase in the number of assemble units and large units, the expansion of the proportion of
short-term delivery projects, and the multiple factors such as major agreement changes and the increase in the
procurement cycle of imported parts affecting the output of units, the problem of uneven production of the
Company will become more prominent, and the cost and risk of the Company's performance of the contract will
also be increased. The Company will continue to promote the flexible output mechanism oriented to user needs,
35
2023 Annual Report
further strengthen the ability of production and marketing, improve the speed and level of enterprise response to
the market, and control the risk of contract execution.
3. Accounts receivable risk
With the decline operation of customers in some downstream industries and the increase in investment
risks of projects, there are persistent risks in the recovery of the Company's accounts receivable, and the average
account age tends to increase, which will have a great impact on the Company's business performance. The
Company will implement customer credit management, strengthen contract signing and performance risk
control, increase the assessment of accounts receivable, and reduce the adverse impact of overdue accounts
receivable.
4. Exchange rate risk
The expansion of the Company's international procurement and international sales business makes the
Company's balance of payments affected by exchange rate fluctuations, and there is a certain risk of exchange
loss. With the increase of the two-way fluctuation range of the RMB exchange rate, the uncertainty of exchange
gains and losses has increased. The company will refer to the exchange rate fluctuation cycle and adopt
appropriate exchange rate risk management tools to minimize exchange losses.
5. Risk of profit level drop
As the domestic raw materials and labor costs continue to rise, while the prices of industrial products continue
to fall, the profitability of products is facing an acid test. The Company will strive to improve internal management,
improve project cost management ability, reduce procurement costs and management costs, improve operational
efficiency, and strive to resolve the risk of declining profitability.
6. Overseas market risks
During the "14th Five-Year Plan" period, the Company will continue to implement the "going global"
strategy, further expand overseas target markets, and enhance the Company's share and influence in the
international market. However, at present, the overseas markets are affected by geopolitical conflicts, changes
in internal political and economic situations and trade barrier policies, and there is great uncertainty in the
implementation of overseas market strategies. The Company will increase market research efforts, actively
demonstrate the countermeasures, and explore the path of localized business development.
XII. Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
□ Applicable √ Not applicable
No reception of research, communication and interview occurred in the period
XIII. The implementation of the action plan of "Double improvement of quality and return".
36
2023 Annual Report
Whether the Company has disclosed the action plan of "Double improvement of quality and return".
□Yes No
IV. Corporate Governance
I. General situation
(1) Standardized operation of corporate governance structure
In accordance with the "company law" provisions, The Company has its executive, decision making and
supervisory bodies operated strictly according to the Articles of Association, Shareholders’ Meeting Criteria,
Board Meeting Criteria, and Supervisory Committee Criteria. Meetings were held by legal procedures,
Corporate governance in accordance with the relevant provisions of the laws and regulations of China Securities
Regulatory Commission and the Shenzhen Stock Exchange. During the reporting period, the company
organized 7 meetings of the board of directors, 6 meetings of the board of supervisors, 3 meetings of
shareholders, 7 meetings of special committees of the board of directors and 2 annual report communication
Meetings. The Company deliberates and makes decisions on major business matters in strict accordance with
the Articles of Association and relevant laws and regulations, and defines the powers and responsibilities of the
General Manager's office meeting, the Board of Directors, the Board of Supervisors and the General Meeting of
Shareholders. During the reporting period, The Company carried out material business management activities
such as review of periodic reports, investment in Western Power Company, asset impairment and write-off,
profit distribution, continuing employment of accounting firms, entrusting wealth management, related party
transactions, remuneration scheme for directors and senior managers, external guarantee, repurchase and
cancellation of shares, change of company name, amendment of articles of association, external donation,
remuneration management system for directors and senior managers, application for bank credit, waiver of
priority in equity transfer of Western Power Company, general election of Board of Directors, appointment of
General Manager and Deputy General Manager, amendment of internal control manual, repurchase and
cancellation and termination of restricted stocks with equity incentives, transfer of the equity of the Sales
Company by agreement, acquisition of the equity of the Machinery Company, signing of an exclusive license
agreement for the intangible assets of gas turbines, performed the examination and approval procedures for
material matters, and supervised its business behavior to ensure its compliance in operation.
（2）Effectiveness of organization
The Board of Directors is the executive body of the decisions made by the Shareholders’ Meeting. The Board is
also responsible to establish and improve the internal control system of the Company, and make it works
effectively. Chairman of the Board is the caller of the Board. Strategy, Investment, Remuneration, and Auditing
Committees were established within the Board, and were supporting the decision-making of the Board. The
Supervisory Committee is responsible to report to the Shareholders’ Meeting and supervise the legal
performance of duties of directors, managers, and executives. The management is responsible to the Board, and
take charge of daily operation of the Company. Functional departments were deployed according to the needs of
business with clear responsibilities.
（3）Basis for material decisions
37
2023 Annual Report
The Company has setup practical rules for all material aspects of management, including but not limited
to, external investment, trusteeship, related transactions, information disclosure, investors’ relationship,
information insider, executive shares, and management of controlled subsidiaries. These documents of rules
were constantly revised and improved to maintain effectiveness upon changing situation.
（4）Establishing of internal control system
The Company kept close observation on the whole business process identifying risk points according to
Enterprise Internal Control Standards, Internal Control Guidelines, Internal Assessment Guidelines, and Internal
Control Guidelines for PLCs issued by Shenzhen Stock Exchange. Effective mechanisms on risk control and
internal auditing were conducted. The Auditing Committee of the Board was responsible to supervise the
internal control practices.
（5）Corporate Information Disclosure and Transparency
The company attaches great importance to the information disclosure and the investor relations management,
and it has designated Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn as its
statutory information disclosure media and website. With fair treatment to all investors, the company in a timely
manner discloses the information with truthfulness, accuracy and completeness, which well ensures the
transparency of the company and the legitimate rights and interests of all shareholders.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The Company kept independence and separated with holding shareholders on the aspects of business, human
resource, capital, organization, and accounting. And the Company established independent and complete
business operating systems.
1. On business operations
The Company’s majors of design, manufacture, sale business of industrial steam turbine was independent from
the holding company (Hangzhou Steam Turbine Power Group).（
2. On personnel management
The Company kept independence with the holding shareholders on the aspects of human resource and
remuneration management. the Company’s management was employed and gotten salary exclusively in the
Company instead of any management duty in the holding-share share holders except the duty of chairman of the
Board. The Company’s accountant shad no part-time job in their parent company or related companies.
3. On capital operation
The property relationship between the Company and the holding-share shareholders was clear and explicit. The
capital and business injected by the holding-share shareholders was independent and complete. And at the same
time, the Company owned system of manufacturing and operation, sale, accessorial manufacturing and relevant
equipments which independent from holding shareholder.
4. On organization structure
38
2023 Annual Report
The Company kept total independence from the controlling shareholder on the organization configuration. The
Company owned separate and independent manufacturing, supplying, and sales system, there was no horizontal
competition with the controlling shareholder, and the Company owned independent management and operation
systems. The Company signed related trading agreements with the subsidiaries of the share-holding company.
The Company’s intermediate managers are employed by the Company’s executives, and was evaluated under
the economic responsibility system.
5. On accounting management
The Company had independent accounting department, and established independent account re-calculation
system and accounting system; the Company also had the regulated and independent finance management on
the share-holding and subsidiaries; the Company had independent finance policies and bank account and its tax,
there was no joint account with controlling shareholder.
III. Competition situations of the industry
□ Applicable √ Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Meeting Disclosure
Sessions Type Disclosure index
participation ratio Date date
2022 Annual
Annual Shareholders’ Announcement
Shareholders’ general 69.67% April 19,2023 April 20,2023
No.:2023-36
Meeting
meeting
1st Provisional Provisional
Shareholders’ Meeting 2023 Announcement
Shareholders’ 67.53% June 20,2023 July 1,2023
No.:2023-61
Meeting
2nd Provisional Provisional
Shareholders’ Meeting 2023 November November Announcement
Shareholders’ 67.68%
20,2023 21,2023 No.:2023-95
Meeting
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Information about Directors, Supervisors and Senior Executives
39
2023 Annual Report
(1)Basic situation
Numb
er of
Number
shares
of Number Reasons
Shares reduce
shares Other of shares for
held at the d in
A Office Starting date Expiry date increase chang held at the increase
Name Sex Positions year- the
ge status of tenure of tenure d in the es(sha end of the or
begin(shar curren res) period(sha decrease
current
e) t res) of shares
period
period
(shares)
(share
s
Zheng Mal Board In May June
59 325,000 65,000 390,000 Dividend
Bin e chairman office 18,2016 29,2026
Ye Mal In June June Dividend
55 Director, GM 325,000 65,000 390,000
Zhong e office 19,2004 28,2026
Yang
Mal Vice Dimis June January
Yongmi 59 260,000 52,000 312,000 Dividend
e Chairman sion 24,2013 15,2024
ng
Mal Vice In February June
Li Shijie 55 260,000 52,000 312,000 Dividend
e Chairman office 2,2024 29,2026
Wang Mal Dimis June January Dividend
51 Director, GM 260,000 52,000 312,000
Gang e sion 30,2017 15,2024
Pan Mal In May June
45 Director 0 0 0
Xiaohui e office 10,2021 29,2026
Mal In June June
Li Bo 49 Director 0 0 0
e office 30,2023 28,2026
Zhang Mal Independent In December June
65 0 0 0
e Director office 10,2019 29,2026
Hejie
Yao Mal Independent In July June
58 0 0 0
Jianhua e Director office 25,2022 28,2026
Xu Mal Independent In July June
61 0 0 0
Yongbin e Director office 25,2022 29,2026
Jin
Fem Independent In July June
Yingchu 54 0 0 0
ale Director office 25,2022 29,2026
n
Chairman of
Zhang Fem the In July June
38 0 0 0
Weijie ale Supervisory office 23,2021 28,2026
Committee
Zhu
Fem Dimis April June
Chenqia 31 Supervisor 0 0 0
ale sion 27,2022 30,2023
n
Xie Fem In June June
32 Supervisor 0 0 0
Xueqing ale office 30,2023 29,2026
Yan Fem Employee In December June
42 2,700 540 3,240 Dividend
Ying ale Supervisor office 7,2022 28,2026
Kong Deputy
Mal In June June
Jianqian 53 GM,Chief 260,000 52,000 312,000 Dividend
e office 24,2013 29,2026
g engineer
Wang
Mal In June
Zhengro 53 Deputy GM June 9,2017 260,000 52,000 312,000 Dividend
e office 28,2026
ng
40
2023 Annual Report
Deputy GM,
Zhao Mal In January June
48 Chief 260,000 52,000 312,000 Dividend
Jiamao e office 1,2018 29,2026
accountant
Deputy GM,
Li Fem In January June
53 secretary of 260,000 52,000 312,000 Dividend
Guiwen ale office 9,2019 28,2026
the board
Li Mal In May June
41 Deputy GM 130,000 26,000 156,000 Dividend
Binghai e office 11,2022 29,2026
LiAo Mal In January June
44 Deputy GM 130,000 26,100 156,100 Dividend
Weibing e office 16,2024 28,2026
Total -- -- -- -- -- -- 2,732,700 546,640 0 3,279,340 --
During the reporting period, whether there is dismissal of directors and supervisors and decruitment of senior
managers
□Yes√No
Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Positions Types Date Reason
Yang Yongming Vice Chairman Dimission January 15,2024 For personal reasons
Li Shijie Vice Chairman Elected February 2,2024 supplement
Li Bo Director Elected June 30,2023 General Election
Due to company work
Wang Gang Director Dimission June 30,2023
needs
Due to company work
Wang Gang Deputy GM Dimission June 30,2024
needs
Zhu Chenqian Supervisor Dimission June 30, 2023 General Election
Xie Xueqing Supervisor Elected June 30,2023 General Election
Due to company work
Liao Weibing Deputy GM Appointed January 16,2024
needs
(2) Posts holding
The professional background, working experience and main responsibilities of the current board members,
supervisors and senior managers in the company
（1）Director
Mr. Zheng Bin, born in November 1964, CCP member, university graduate, senior economics professional
certification. He served as vice chairman and Vice General Manager , Party Secretary and Chairman of
Hangzhou Turbine Power Group Co., Ltd.. He was engaged the vice Chairman at the 4th term of Board on
March 2009 ,Vice Chairman at the 5th term of Board on June 2010, He was engaged the Director and General
Manager of the Company on June 2013, He was engaged the Chairman at the 6th term of Board on December
2014. He was elected as Chairman of the 7th term of board of directors on May 2016; He was elected as
Director and Chairman of the 8th term of board of directors on December 2019. Currently is the 9th Chairman
of the company.
Mr. Ye Zhong: born in April 1968, CCP member; bachelor degree; professor and senior engineer. He served as
director of Hangzhou Steam Turbine Power Group Co., Ltd.Started working in July 1990. he was the director of
the 2nd term of Board, Chief Engineer; director of the 3rd term of Board, Vice General Manager; Director of the
4th and 5th terms of Board, Vice General Manager, and Chief Engineer. He’s the Standing Vice General
41
2023 Annual Report
Manager, director and Chief Engineer of the 6th term of Board of the Company, and General Manager of the 4
Company since December 2014. He was elected as director and General Manager of the 7th term of board of
directors on May 2016. Currently is the 8th Director and General Manager of the company.
Mr. Ye Zhong: born in April 1968, CCP member; bachelor degree; professor and senior engineer. He served as
director of Hangzhou Steam Turbine Power Group Co., Ltd.Started working in July 1990. he was the director of
the 2nd term of Board, Chief Engineer; director of the 3rd term of Board, Vice General Manager; Director of the
4th and 5th terms of Board, Vice General Manager, and Chief Engineer. He’s the Standing Vice General
Manager, director and Chief Engineer of the 6th term of Board of the Company, and General Manager of the 4
Company since December 2014. He was elected as director and General Manager of the 7th term of board of
directors on May 2016. He was elected as director and General Manager of the 8th term of board of directors on
December 2019. Currently is the 9th Director and General Manager of the company.
Mr. Li Shijie, born in July 1969, is a member of the Communist Party of China with a university degree, and he
is senior engineer and senior economist. He has successively served as Section Chief and Secretary of the Party
Branch of the Supply Division of Hangzhou Turbine Co., Ltd., General Manager and Secretary of the General
Party Branch of Hangzhou Turbine Auxiliary Machinery Co., Ltd., Deputy Secretary of the Party Committee,
Secretary of the Discipline Inspection Commission and Chairman of the Labor Union of Hangzhou Turbine
Power Group Co., Ltd., Chairman of the 6th, 7th and 8th Board of Supervisors of the Company. He has served
as the deputy secretary of the Party committee and the chairman of the labor union of the Company. Currently is
the 9th Vice chairman of the company.
Mr. Pan Xiaohui, born in November 1978, a member of the Communist Party of China, is a senior accountant
with a university degree. He served as vice chairman of Hangzhou Steam Turbine Holdings Co., Ltd. He joined
the Hangzhou Municipal Finance Bureau in 2003 and served successively as a section member, deputy division
chief of Comprehensive Office and division chief of account of Bureau of Financial Supervision and Inspection
of Hangzhou Municipal Finance Bureau. From February 2021, Currently is the 8th Director of the company.
Currently is the 9th Director of the company.
Mr. Li Bo, born in June 1974, is a member of the Communist Party of China with a doctorate degree and a
doctorate degree from Pennsylvania State University. In July 1997, he joined the fourth company of China State
Construction Group as a staff member of the development department; In May 1998, he joined Lenovo Group
Computer Company as the manager of the development planning department/marketing department; In March
2000, he joined the business development department of Sohu Company as a manager; In 2010, he joined the
Beijing office of Android Law Firm as a lawyer; In March 2012, he joined Norton Rose Fulbright LLP Beijing
Office as a lawyer. In May 2015, he joined Amazon Investment (China) Co., Ltd as legal counsel; In December
2015, he joined China Guoxin Holdings Co., Ltd. He is currently the deputy general manager of Zhejiang
Manufacturing Investment Management Co., Ltd and the assistant general manager of Guoxin Guotong
(Hangzhou) Equity Investment Co., Ltd. Currently is the 9th Director of the company.
Mr. Zhang Hejie, born in January 1958, holds a master's degree in philosophy, a doctorate in management, a
visiting scholar at the University of Cambridge, and a professor and doctoral tutor at the School of Economics
and Management of Zhejiang University of Technology. the Communication Review Expert of the National
Natural Science Foundation. Currently is the 9th Independent director of the company.
Mr. Xu Yongbin, born in December 1962, is a member of the Communist Party of China and doctor of
management, and he has obtained the qualification certificate of independent director. He has served as a
42
2023 Annual Report
lecturer and associate professor of Hangzhou Business School, dean and professor of the School of Finance and
Accounting of Zhejiang Gongshang University, vice president of Zhejiang Accounting Society, and vice
president of Zhejiang Auditing Society. He is currently a second-level professor and doctoral supervisor of
Zhejiang Gongshang University. He’s selected as a young and middle-aged academic leader in Zhejiang
Province, a talent of Zhejiang Province New Century 151 Talent Project Talents, and a talent of Zhejiang
Province "Five Batches" Talents. Currently is the 9th Independent director of the company.
Mr. Yao Jianhua, born in December 1965, is a member of the Communist Party of China, with a doctorate
degree of Zhejiang University of Technology, and he is a Ph.D. Director of Engineering and professor of
Zhejiang University of Technology, he is a Special Expert of Zhejiang Province. He is currently the dean of the
School of Mechanical Engineering and the dean of the Laser Advanced Manufacturing Research Institute of
Zhejiang University of Technology, concurrently holds the director of Chinese Mechanical Engineering Society
and vice-chairman of Zhejiang Nontraditional Machining Branch Engineering Society, and Standing member of
heat treatment branch, standing member of extreme manufacturing branch committee, Director of China Optical
Engineering Society, Vice Chairman of Zhejiang Mechanical Engineering Society, Vice Chairman of Zhejiang
Shipbuilding Society, etc. He’s selected into the National Hundred Thousand Talents Project, the first batch of
outstanding talents in Zhejiang Province's Ten Thousand Talents Program, the first level of Zhejiang Province's
151 Talent Project, and won the "National Young and Middle-aged Experts with Outstanding Contributions",
"Zhou Zhihong Science and Technology Achievement Award", "Young and Middle-aged Experts with
Outstanding Contributions in Zhejiang Province", "Outstanding Teachers in Zhejiang Province Colleges",
"Excellent Communist Party Members in Zhejiang Province Colleges and Universities" and other honors, and
he is member of the 11th CPPCC Zhejiang Provincial Committee, enjoying the Special government allowances.
Currently is the 9th Independent director of the company.
Ms. Jin Yingchun, born in November 1969, is a member of the Communist Party of China, and she is senior
lawyer, master of civil and commercial law from Zhejiang University, intermediate economist, intermediate
merger and acquisition expert, tutor of master of law at Zhejiang University of Finance and Economics and
Zhejiang Gongshang University, and she has obtained the qualification certificate of independent director. She
has served as a full-time and part-time lawyer of Zhejiang Economic Law Firm, the founder and director of
Zhejiang Tianyi Law Firm, and she has severed as a special inspector of Zhejiang Provincial Political and Legal
Committee; currently, she is director of the Management Committee of Yingke Hangzhou Law Firm, vice
chairman of Hangzhou Lawyers Association, and Vice President of Zhejiang M&A Federation, perennial legal
advisor of Hangzhou Shangcheng District Committee. Won the honors of the outstanding female lawyer of the
first session in Zhijiang Province, the outstanding corporate lawyer of Zhejiang Lawyers Association, and the
outstanding lawyer Serving small and medium-sized enterprises in Zhejiang Province. Currently is the 9th
Independent director of the Company.
(II) The Supervisors
Ms. Zhang Weijie, senior accountant. Served as the Project Manager of Pan-China Certified Public
Accountants; Full-time Supervisor and Chief Financial Officer of the State-owned Assets Supervision and
Administration Commission of Hangzhou Municipal People's Government; Head of Financial Special Group of
Hangzhou State-owned Capital Investment and Operation Co., Ltd. She is currently the Employee Director and
Director of Finance Management Dept of Hangzhou Capital, the Chairman of Hangzhou Steam Turbine Power
Group Co., Ltd, and the Chairman of the 9th Board of Supervisors of the Company.
Ms. Xie Xueqing, born in November 1991, holds a master's degree in international accounting and financial
management, and she is certified public accountant, intermediate accountant and tax agent; She used to be a
senior auditor of Tianjian Accounting Firm (LLP) and a junior supervisor of the internal audit department of
43
2023 Annual Report
Hangzhou Investment Development Co., Ltd; She is currently the head of the audit supervision department of
Hangzhou State-owned Capital Investment and Operation Co., Ltd. Currently is the 9th supervisor of the
company.
Ms. Yan Ying, born in November 1981, a member of the Communist Party of China, with a master's degree,
is a certified public accountant, a certified internal auditor and a senior economist. She graduated from Dongbei
University of Finance and Economics in January 2008 with majored in finance, and entered Hangzhou Turbine
Power Group Co., Ltd in March of the same year. She now works in the operation management department of
Hangzhou Turbine Power Group Co., Ltd, engaged in the Company's state-owned asset property rights
management in long-term; She is currently the employee supervisor of the 9th board of supervisors of the
Company.
(III) Senior Executives
Profiles of General Manager Ye Zhong is available among the directors above.
Mr. Kong Jianqiang, born in May 1970, CCP member, Master of Engineering, certified senior engineer. Started
working in July 1992. He used to be technician, head of workshop, vice director, and director of Steam Turbine
Institute of the company. He’s the director of the 6th term of Board since June 2013, and Engineer General of
the Company since December 2014. He was elected as director of the 7th term of board of directors on May
2016. Appointed as deputy general manager and Chief engineer of the company. He was engaged the Deputy
General Manager and Chief engineer at the 8th term of Board on December 2019, He Currently the Deputy
General Manager and Chief engineer of the company.
Mr. Wang Zhengrong, born in October 1970, member of the Communist Party of China, university degree,
Bachelor of Engineering, Zhejiang University, senior engineer. In 1992 to enter the company work, served as
deputy director of the company sales, director, marketing party branch secretary. Since March 2010, he has been
a member of the Party Committee of the Company. He has been Assistant General Manager of the Company
and Director of Steam Turbine Marketing since June 2015. Mr. Wang was engaged the Deputy general manager
of the Company since June 2017.
Mr. Zhao Jiamao, born in March 1975, member of the Communist Party of China, university degree,
certified public accountant and senior accountant. He joined Hangzhou Steam Turbine Power Group Co., Ltd.
Finance Office in 1995 and was once the Vice Minister of Finance of Hangzhou Steam Turbine Power Group
Co., Ltd., Chief Accountant, Deputy General Manager and General Manager of Hangzhou Steam Turbine
Power Technology Co., Ltd. In December 2014, he was the Deputy Chief Accountant and Chief Financial
Officer of the Company. Since March 2016, he has been the General Manager Assistant, the Director of Asset
Management Department and the Finance Department and the Contract Department. Mr. Zhao was engaged the
Deputy general manager and Chief accounting of the Company since January 2018.
Ms. Li Guiwen, born in September 1970, member of the Communist Party of China, postgraduate degree,
senior engineer. In 1992 the company entered the company, She served as Deputy director General office and
Deputy Minister of Economic Management of Hangzhou Steam turbine Power Group, Since August 2007, She
Served as Minister of Strategic Development of Hangzhou Steam turbine Power Group, Since November
2017,She served as Secretary of the Board of Directors of Hangzhou Steam turbine Power Group. Since January
2019, She served as director of the 7th term of board of directors of the Company.On February 2019, She served
as director of the 8th term board of director of the Company, Currently is the 8th secretary and Deputy General
Manager of the board of the company. She was engaged the Deputy General Manager and secretary board of
directors.
Mr. Li Binghai, born in April 1982, is a member of the Communist Party of China, with a bachelor's degree and
majoring in mechanical engineering and automation and business administration from Jiangnan University, and
44
2023 Annual Report
he has a master's degree in industrial engineering from Zhejiang University of Technology. From August 2005
to March 2010, he worked in Hangzhou Machine Tool Group, and served as the assistant manager of the
manufacturing department and the deputy manager of the manufacturing department. He joined the Company in
March 2010 and has served as the chief of the Marketing Section of the Contract Management Office, the
Deputy Chief and the Chief of the Contract Management Office, and he is currently the director of the stator
workshop of the Company. Since May 2022, he is currently the Deputy General Manager of the Comapny.
Mr. Liao Weibing, born in July 1979, is a member of the Communist Party of China, with a university degree, a
bachelor's degree in engineering, and is a senior engineer. In July 2001, he joined Hangzhou Turbine Power
Group Co., Ltd., and successively served as Assistant Section Chief of Foreign Trade Division, Deputy Section
Chief of Foreign Trade Division, Section Chief of Foreign Trade Division, Deputy Minister of Turbine
Marketing Division. He is currently Minister of Turbine Marketing Division and Assistant to Deputy General
Manager. Since January 2024,he was engaged the Deputy General Manger of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Names of
receive
the Names of the Titles engaged in Sharing date of Expiry date of
remuneration or
persons in shareholders the shareholders office term office term
allowance from
office
the shareholder
Pan Hangzhou Steam Turbine Board chairman and
August 5,2022 February 2,2024 No
Xiaohui Holding Co., Ltd. General Manager
Offices taken in other organizations
√Applicable □Not applicable
Does he/she
Name of receive
Titles engaged Expiry date
the Starting date of office remuneration
Name of other organizations in the other of office
persons in term or allowance
organizations term
office from other
organization
Board
Ye Zhong New Energy Company November 30,2021 No
chairman
Chairman of
Hangzhou Zhongneng Steam Turbine the
Li Shijie December 9,2021 No
Power Co., Ltd. Supervisory
Committee
Kong Hangzhou Turbine Auxiliary Machine Board
June 15,2022 No
Jianqiang Co., Ltd. chairman
Wang Hangzhou Turbine Mechanical Board
May 30,2022 No
Zhengrong Equipment Co., Ltd chairman
Wang Hangzhou Zhongneng Turbine Power
Director June 15,2022 No
Zhengrong Co., Ltd.
Wang Hangzhou Zhongneng Turbine Power
Director November 30,2021 No
Zhengrong Co., Ltd.
Zhao Zhejiang Turbine Import & Export Co., Executive
June 2,2020 No
Jiamao Ltd. director
Zhao Hangzhou ZhongnengTurbine Power
Director June 15,2022 No
Jiamao Co., Ltd.
Zhao Hangzhou Turbine New Energy Co.,
Supervisor November 30,2021 No
Jiamao Ltd.
Zhejiang Packaged Technology Board
Li Guiwen May 13,2020 No
Development Co., Ltd. chairman
Board
Li Binghai Hangzhou Turbine Casting Co., Ltd. July 13,2022 No
chairman
Hangzhou Turbine Auxiliary Machinery
Li Binghai Director June 15,2022 No
Co., Ltd.
Li Binghai Zhejiang Ranchuang Turbine Machinery Director October 28,2022 No
45
2023 Annual Report
Co., Ltd.
Liao Hangzhou Turbine New Energy Co.,
Director November 30,2021 No
Weieing Ltd.
Liao Zhejiang Ranchuang Turbine Machinery
Director October 28,2022 No
Weibing Co., Ltd.
Punishments to the current and leaving board directors, supervisors and senior managers during the report
period by securities regulators in the recent three years
□ Applicable √Not applicable
(3) Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The remuneration plan for directors and executives was examined at the meeting. The Remuneration and
Assessment Committee of the Board conducted assessment on the performances of the directors and executives,
Assessment principles and procedures determined in accordance with the executive compensation management
system of directors(revised in 2023), The plan is subject to examination of the meeting of the Board.
Allowances for independent directors and supervisors are subject to approval by the Board and the Shareholders’
Meeting thereafter. The proposal of allowances of independent directors and supervisors was adopted at the 1st
Provisional Shareholders’ Meeting held on June 30, 2023, and the allowance for independent directors is
RMB150,000 (tax included) per year, while it is RMB20,000 for supervisors for the period of three years (tax
included). Non employee supervisors do not enjoy the allowance
Remuneration of directors, supervisors, and executives in the report period
In RMB10,000
Total of reward
Actual reward
from the
Name Sex Age Position Statue of duty in total at end
Company(Pre-
of report term
tax)
Zheng Bin Male 59 Chairman In Office 181.21 No
Ye Zhong Male 55 Director, GM In Office 215.28 No
Yang
Male 59 Vice Chairman Dimission 148.34 No
Yongming
Secretary of the Party
Wang Gang Male 51 Committee and Chairman of Dimission 143.03 No
the Trade union
Pan Xiaohui Male 45 Director In Office 0 Yes
Li Bo Male 49 Director In Office 0 No
Zhang Hejie Male 65 Independent Director In Office 15.00 No
Yao Jianhua Male 58 Independent Director In Office 0 No
Xu Yongbin Male 61 Independent Director In Office 15.00 No
Jin Yingchun Female 54 Independent Director In Office 15.00 No
Chairman of the Supervisory
Zhang Weijie Female 38 In Office 0 Yes
Committee
Xie Xueqing Female 32 Supervisor In Office 0 Yes
Zhu Chenqian Female 31 Supervisor Dimission 0 Yes
Yan Ying Female 42 Employee Supervisor In Office 19.20 No
Kong Jianqiang Male 53 Deputy GM, Chief engineer In Office 147.97 No
Wang
Male 53 Deputy GM In Office 151.45 No
Zhengrong
46
2023 Annual Report
Deputy General Manger,
Zhao Jiamao Male 48 In Office 151.58 No
Chief accountant
Deputy GM, secretary of the
Li Guiwen Female 53 In Office 155.93 No
board
Li Binghai Male 41 Deputy GM In Office 92.20 No
Total -- -- -- -- 1451.19 --
Other note
Applicable □Not applicable
Li Shijie, Vice Chairman, and Liao Weibing, Deputy General Manager, were included in the remuneration
management of directors and senior managers on February 2, 2024 and January 16, 2024, respectively.
VI. Performance of directors' duties during the reporting period
(1) Information of the board meetings during the reporting period
Session Convening date Disclosure date Meeting resolution
The 31st meeting of the 8th
January 13,2023 January 17,2023 （Announcement No.:2023-01）
term of Board
The 32nd meeting of the 8th
March 27,2023 March 29,2023 （Announcement No.:2023-09）
term of Board
The 33rd meeting of the 8th
April 28,2023 April 29,2023 （Announcement No.:2023-38）
term of Board
The 34th meeting of the 8th
June 9,2023 June 10,2023 （Announcement No.:2023-47）
term of Board
The 1st meeting of the 9th
June 30,2023 July 1,2023 （Announcement No.:2023-62）
term of Board
The 2nd meeting of the 9th
August 29,2023 August 31,2023 （Announcement No.:2023-69）
term of Board
The 3rd meeting of the 9th
October 30,2023 October 31,2023 （Announcement No.:2023-78）
term of Board
(2) Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Number of Number of
Whether to
board Number of board Number of
Number of attend the General
meetings board meetings board
Name of board board meetings of
attended meetings attended by meetings
director meetings meeting in shareholders
during the attended in means of attended by
absent from person twice attended
reporting person communicati proxy
in a row
period on
Zheng Bin 7 6 1 0 0 No 3
Ye Zhong 7 6 1 0 0 No 3
Yang
7 6 1 0 0 No 3
Yongming
Wang Gang 4 3 1 0 0 No 1
Pan Xiaohui 7 4 3 0 0 No 3
Li Bo 3 2 1 0 0 No 2
Zhang Hejie 7 6 1 0 0 No 3
Xu Yongbin 7 5 2 0 0 No 3
Yao Jianhua 7 4 3 0 0 No 3
Jin Yingchun 7 5 2 0 0 No 3
Explanation of failure to attend the board meeting in person twice in a row
47
2023 Annual Report
Not applicable
(3) Directors' objections to related matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
(4) Other descriptions of directors' performance of duties
Whether the directors' suggestions on the Company have been adopted
√Yes □ No
The director's statement on whether the relevant suggestions of the Company have been adopted or not
During the reporting period, in accordance with the Company Law, Securities Law, Articles of Association and
other laws and regulations, the directors paid attention to the standardization of the Company's operation, and
put forward reasonable suggestions based on the long-term development of the enterprise during the review of
periodic reports, investment in the Western Power Company, provision of guarantees for the New Energy
Company, repurchase and cancellation of restricted stocks, first-phase lifting of restricted sale of restricted
stocks, and equity transfer of the Sales Company and the Machinery Company. he Company listened carefully
to the suggestions of directors, organized relevant personnel to evaluate and verify related matters, and fully
utilized the leadership role of directors in scientific decision-making and standardized management.
VII. Situation of special committees under the Board of Directors during the reporting period
Put
Number forward Other
Details of
Committee of Convening important information
Member information Meeting content objections
name meetings date opinions of duty
(if any)
convened and performance
suggestions
1. 2021 Annual Report
2. The Financial Report
2021
3. Assets Impairment
Provision and Bad Debt
Provision
4. 2021 Write-off of Assets
Losse. 5.. 2022 Profit
Distribution Plan. 6.
Xu Yongbin
Proposal to extend the
（Convenor）,Zhang
Audit March service of Pan-China CPA
Hejie. Yao Jianhua, 1 N/A N/A N/A
Committee 15,2023 as auditor of the Company
Jin Yinghun, Ye
In 2023. 7. Proposal on
Zhong
the use of idle funds for
short-term and medium-
term financial management
by the company in 2022
8. Summary of Internal
Audit Work in 2022 and
Internal Audit Plan in
2023. 9.2022 Internal
Control Self-Evaluation
48
2023 Annual Report
Report.10. Proposal on the
amount of related party
transactions in 2022 and
the estimated amount in
2023.
Xu Yongbin
（Convenor）,Zhang Review the Proposal on
Audit June
Hejie. Yao Jianhua, 1 Amending the Company's N/A N/A N/A
Committee 30,2023
Jin Yinghun, Ye Internal Control Manual
Zhong
Zhang Hejie
Remuneration （Convenor）,Xu
Review the Remuneration
and Yongbin, Yao March
1 Plan for Directors and N/A N/A N/A
Assessment Jianhua, Jin 27,2023
Senior Managers in 2022
Committee Yingchun, Pan
Xiaohui
1. Proposal on Amending
the Remuneration
Zhang Hejie
Management System for
Remuneration （Convenor）,Xu
Directors and Senior
and Yongbin, Yao June
1 Managers N/A N/A N/A
Assessment Jianhua, Jin 9,2023
2. Proposal on Allowances
Committee Yingchun, Pan
for Independent Directors
Xiaohui
and Staff Supervisors of
the Company.
1. Report on Assessment
Results of Restricted Stock
as Incentive Objects in
Zhang Hejie
2021
Remuneration （Convenor）,Xu
2. Proposal on
and Yongbin, Yao October
1 Achievement of Partial N/A N/A N/A
Assessment Jianhua, Jin 30,2023
First-phase Lifting of
Committee Yingchun, Pan
Restricted Sale of the First
Xiaohui
Grant Part of Restricted
Stock Incentive Plan in
2021
Jin Yingchun
Nomination of Candidates
（Covenor
Nomination June for Directors of the Ninth
人）,Zhang Hejie, 1 N/A N/A N/A
committee 9,2023 Board of Directors of the
Xu Yongbin,Yao
Company
Jianhua, Zheng Bin
1. Proposal on Nominating
the General Manager of the
Company
2. Proposal on Nominating
Jin Yingchun the Secretary of the Board
（Covenor of Directors of the
Nomination June
人）,Zhang Hejie, 1 Company N/A N/A N/A
committee 30,2023
Xu Yongbin,Yao 3. Proposal on
Jianhua, Zheng Bin Appointment of Deputy
General Manager, Chief
Engineer and Chief
Accountant of the
Company
49
2023 Annual Report
VIII.The working status of the board of supervisors
The board of supervisors finds out whether the company has risks during the monitoring activities during the re
porting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.
IX. Particulars about employees.
(1)Number of staff, professional structure and educational background
Number of in-service staff of the parent company(person) 1,991
Number of in-service staff of the main subsidiaries(person) 1,923
The total number of the in-service staff(person) 3,914
The total number of staff receiving remuneration in the current
3,914
period(person)
Retired staff with charges paid by the parent company and main
0
subsidiaries (person)
Professional
Category Number of persons（person）
Production 2,069
Sales 325
Tech 875
Finance 86
Administration 559
Total 3,914
Education
Category Number of persons（person）
Master’s Degree 333
Bachelor 1,948
College diploma 779
High school and below 854
Total 3,914
2.Particulars about the employees:
Under the premise of considering the annual benefit, with the level of competition, the ability to pay of
enterprises, price levels and other factors, in 2022 the company adequate remuneration be adjusted according to
the value of the unpaid position, according to the performance of the performance fee, adhere to labor
distribution, taking into account efficiency and equity, the maximum level of protection of the interests of
employees, to achieve a win-win business and employees. Company on a monthly basis, full and timely
payment of wages, overtime pay in accordance with national regulations, on a monthly basis.
3. Educational training for employees:
In 2023, the staff education and training work strived for realize the goal of “Talents invigorate
enterprises”, and set the work objectives of training and optimizing the “the three teams namely the
management team, the professional and technical personnel team and the high-skilled personnel team”, and
upon combining with the company’s strategic goals and the departmental performance targets and the
employees’ development goals, it well did the annual training work, formulated the “2023 Company Education
and training Plan”, implemented various training programs in an orderly manner as required, continuously
improved the staff's business level and comprehensive capabilities and made contributions to the company’s
50
2023 Annual Report
stable operation. In terms of the funding, the company drew 2.5% of the total salary as the staff education fund,
which effectively guaranteed the expenditure of the training program. According to statistics, 135 training
classes were held in 2023, the person-time of staff received trainings reached 5086. For 2024, the company
plans to carry out 103 training programs in aspects of management, engineering technology, operation skills,
quality, environment and safety education.
4. Outsourcing situation
□ Applicable √ Not applicable
X. Specification of profit distribution and capitalizing of common reserves
Formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy
during the reporting period
√ Applicable □ Not applicable
(1) Company dividend policy principle: The Company's profit distribution policy maintains its continuity and
stability, with full attention to the reasonable return on investment for investors, and consideration of the long-
term interests of the Company, the overall interests of all shareholders and the sustainable development of the
Company;
(2) Cash dividend priority: The Company can distribute dividends by cash, stock or by combination of both. On
the premise that the Company is profitable and has sufficient cash flow to meet its sustainable operation and long-
term development, the Company will give priority to the profit distribution method of cash dividend;
(3) Listen to the opinions and demands of independent directors and minority shareholders: the Board of Directors
of the Company fully considers the development stage, profit scale, cash flow status and current capital demand of
the Company, and formulates a specific dividend plan based on the opinions of shareholders, especially minority
shareholders, which is submitted to the General Meeting of Shareholders of the Company for deliberation after the
independent directors express their independent opinions; When the General Meeting of Shareholders of the
Company deliberates the specific cash dividend plan, it shall actively communicate and exchange with
shareholders, especially minority shareholders, through various channels, fully listen to the opinions and demands
of minority shareholders, and timely address to their concerns;
(4) Dividend period: In principle, the Company implements profit distribution on an annual basis. The Company
announces the dividend plan within four months after each fiscal year, and implements the distribution plan within
two months after the General Meeting of Shareholders approves it;
(5) Dividend ratio: On the premise that the Company is profitable and the cash can meet its continuous operation
and long-term development, the accumulated profit distributed by the Company in cash in the last three years is
not less than 30% of the annual distributable profit realized in the last three years;
(6) Decision-making procedure of dividend plan: According to the Articles of Association, the dividend plan of the
Company is proposed by the Board of Directors, and submitted to the General Meeting of Shareholders of the
Company for deliberation after being reviewed and approved by the Board of Directors and expressed opinions on
by independent directors;
(7) Adjustment procedure of dividend policy: If the Company is required to adjust the profit distribution policy
according to the needs of production and operation, investment planning and long-term development, the adjusted
profit distribution policy shall not violate the relevant regulations of China Securities Regulatory Commission and
the stock exchange. Opinions of independent directors and the board of supervisors shall be solicited in advance
for the proposal for adjusting the profit distribution policy, which shall be submitted to the Company's General
Meeting of Shareholders after deliberation by the Company's Board of Directors, and be implemented only after
51
2023 Annual Report
more than two-thirds of the voting rights held by shareholders present at the General Meeting of Shareholders.
Special description of cash dividend policy
Whether it meets the requirements of the Articles of Association or the resolution of the general meeting
Yes
of shareholders:
Whether the dividend standard and proportion are explicit and clear: Yes
Whether the relevant decision-making procedures and mechanisms are complete: Yes
Whether the independent directors have performed their duties and played their due role: Yes
If a company does not distribute cash dividends, it should disclose the specific reasons and the measures
Yes
it intends to take to enhance the level of investor returns:
Whether the minority shareholders have the opportunity to fully express their opinions and demands, and
Yes
whether their legitimate rights and interests have been fully protected:
Whether the cash dividend policy is adjusted or changed, and whether the conditions and procedures are
Yes
compliant and transparent:
During the reporting period, the Company made a profit and the profit available to shareholders of the parent
company was positive, but no cash dividend distribution plan was put forward.
□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares (Yuan)(Tax-included) 5
A total number of shares as the distribution basis(shares) 1,175,009,597
Cash dividend amount (yuan, including tax 587,504,798.50
Other means (such as repurchase of shares) cash dividend amount (yuan) 0.00
Total cash dividend (yuan, including tax) 587,504,798.50
Distributable profit (yuan) 3,222,667,331.81
Proportion of cash dividend in the distributable profit 100%
Cash dividend distribution policy
Where the distribution of profits is carried out in the company's development stage that belongs to a mature stage and there is
significant capital expenditure arrangement, the proportion of cash dividends in this profit distribution shall be at least 40%.
XI. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan
or Other Employee Incentive Measures
√ Applicable □ Not applicable
(1) Equity incentive
(I) On July 11, 2021, the 14th Meeting of the Eighth Board of Directors reviewed and approved the Proposal
on the Company's Restricted Stock Incentive Plan (Draft) in 2021 and its Summary, the Proposal on the
Company's Implementation Assessment Management Measures for the Restricted Stock Incentive Plan in 2021,
and the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to
Handle Matters Related to the Restricted Stock Incentive Plan in 2021, and the Ninth Meeting of the Eighth
Supervisors of the Company reviewed and approved the above related proposals. The Company disclosed related
announcements such as the Restricted Stock Incentive Plan (Draft) and its Summary in 2021, the Implementation
Assessment Management Measures for the Restricted Stock Incentive Plan in 2021, the Incentive Object List of
the Restricted Stock Incentive Plan in 2021, the Self-inspection Form of Equity Incentive Plan, and the Legal
Opinions of Shanghai Allbright Law Offices on the 2021 Restricted Stock Incentive Plan of Hangzhou Steam
Turbine Co., Ltd.
52
2023 Annual Report
Independent directors of the Company expressed their independent opinions on whether the equity incentive
plan is conducive to the sustainable development of the Company and whether there is any harm to the interests of
the Company and all shareholders.
(II) On August 12, 2021, the Company disclosed the Announcement on the Approval of Equity Incentive
Plan by Hangzhou SASAC. The Company received the Reply of Hangzhou Steam Turbine Co., Ltd. on
Implementing the Restricted Stock Incentive Plan in 2021 (HGZK [2021] No.45), and Hangzhou SASAC
agreed in principle that the Company should implement the restricted stock incentive plan in 2021.
(III)From July 12, 2021 to July 21, 2021, the company will post the "Announcement of the Company's 2021
Restricted Stock Incentive Objects" through the company's business premises, publicizing the names and
positions of the incentive objects, and clarifying the circumstances under which they cannot become equity
incentive objects. , as well as the ways and means of feedback during the publicity period. As of the
expiration of the publicity period, the company has not received any objection from any organization or
individual to the incentive objects of this incentive plan. On August 23, 2021, the Company disclosed the
Publicity and Verification Opinions of the Board of Supervisors of the Company on the List of Incentive Objects
of Restricted Stock Incentive Plan. The Board of Supervisors of the Company believes that the incentive objects
listed in this incentive plan comply with the Administrative Measures, Trial Measures, Notice and other laws,
regulations, normative documents and the scope and conditions of incentive objects stipulated in the Incentive
Plan (Draft), and there is no circumstances that forbids to be incentive objects, and its qualification as the
incentive objects of this incentive plan is legal and effective. On August 23, 2021, the Company disclosed the
Independent Financial Advisor's Report of CITIC Securities Co., Ltd. on the Restricted Stock Incentive Plan
(Draft) in 2021 of Hangzhou Steam Turbine Co., Ltd.
(IV) On August 27, 2021, the Company held the Second provisional Shareholders' General Meeting in 2021,
which reviewed and approved the Proposal on the Company's Restricted Stock Incentive Plan in 2021 and its
Summary, the Proposal on the Company's Implementation Assessment Management Measures for the Restricted
Stock Incentive Plan in 2021, and the Proposal on Requesting the General Meeting of Shareholders to Authorize
the Board of Directors to Handle Matters Related to the Restricted Stock Incentive Plan in 2021.
Meanwhile, the Company disclosed the Self-inspection Report on Insider Information of Restricted Stock
Incentive Plan in 2021 and Stock Trading of Incentive Objects.
(V) On August 30, 2021, the Company convened the 16th Meeting of the Eighth Board of Directors and the
11th Meeting of the Eighth Board of Supervisors, and respectively reviewed and approved the Proposal on
Granting Restricted Stocks to Incentive Objects for the First Time. The Board of Directors of the Company
considered that the granting conditions of restricted stocks stipulated in this incentive plan had been fulfilled, and
agreed to grant 18.17 million restricted stocks to 457 incentive objects who meet the granting conditions on
September 1, 2021 for the first time, at a price of HK$ 6.825 per share. The Board of Supervisors of the Company
verified the list of incentive objectives again and issued a clear consent opinion. Independent directors of the
Company expressed their agreed independent opinions on this.
(VI) On October 22, 2021, the Company completed the registration of granting restricted shares for the first
53
2023 Annual Report
time, with 455 people registered for the first time and 18,060,000 shares registered.
(VII) On December 16, 2021, the 20th Meeting of the 8th Board of Directors and the 13th Meeting of 8th
Board of Supervisors of the Company reviewed and approved the Proposal on Granting Reserved Restricted
Shares to Incentive Objects.. it is agreed that December 16, 2021 will be reserved for granting restricted shares,
and 1,380,000 restricted shares will be granted to 37 eligible incentive objects at a grant price of HK$ 6.825 per
share. Independent directors of the Company expressed independent opinions on relevant proposals of the Board
of Directors
（VIII) On January 14, 2022, the Company completed the registration of reserved grant of restricted shares,
with 37 registered shareholders reserved and 1,380,000 registered shares.
(IX)On December 21, 2022, the Company held the 30th meeting of the 8th session of the Board of
Directors and the 19th meeting of the 8th session of the Board of Supervisors, in which it deliberated and passed
the "Proposal on Repurchase and Cancellation of Some Restricted Shares" and "Proposal on Adjusting the
Repurchase Quantity and Repurchase Price of the 2021 Restricted Stock Incentive Plan". In view of the fact that
9 of the incentive objects are no longer eligible for incentive objects due to retirement reasons, and 1 person is
no longer eligible for incentive object due to personal reasons, it’s agreed to repurchase and cancel a total of
531,180 shares of restricted shares held by them that have been granted but have not yet been lifted. Meanwhile,
As the Company has implemented the profit distribution plan for 2021, according to the provisions of the
Incentive Plan, the repurchase price and repurchase quantity of restricted stocks will be adjusted accordingly.
(X) On October 30, 2023, the Company convened the Third Session of the Ninth Board of Directors and
the Third Session of the Ninth Board of Supervisors, and reviewed and approved the Proposal on Adjusting the
Repurchase Quantity and Repurchase Price of the Restricted Stock Incentive Plan in 2021 and the Proposal on
Repurchase and Cancellation of Some Restricted Stocks. In view of the fact that 14 of the incentive objects are
no longer qualified for the incentive objects due to retirement and 3 of them are no longer qualified due to
personal reasons, according to the Incentive Plan, it is agreed to repurchase and cancel 422,448 restricted stocks
held by them which have been granted but have not been lifted for sales restriction. As two people failed to
achieve good or above performance assessment results, according to the Incentive Plan, it is agreed to
repurchase and cancel their 12,355 restricted stocks that fail to meet the conditions for lifting the restricted sales
in the first lifting period. In the meantime, as the Company has implemented the profit distribution plan for
2021, according to the provisions of the Incentive Plan, the repurchase price and repurchase quantity of
restricted stocks will be adjusted accordingly.
At the same time, the Third Session of the Ninth Board of Directors and the Third Session of the Ninth
Board of Supervisors of the Company reviewed and approved the Proposal on Achievement of Partial First-
phase Lifting of Restricted Sale of the First Grant Part of the Restricted Stock Incentive Plan in 2021, and the
Board of Directors of the Company agreed to handle the lifting of the restricted sales for 451 incentive objects
who met the conditions for lifting the restricted sales in the first lifting period of the first grant. The total
54
2023 Annual Report
number of restricted stocks lifted this time was 9,254,045. The independent directors of the Company expressed
their independent opinions on this matter, and the Board of Supervisors expressed their opinions on this matter.
(XI) On January 16, 2024, the Fourth Session of the Ninth Board of Directors and the Fourth Session of
the Ninth Board of Supervisors of the Company reviewed and approved the Proposal on Achievement of Partial
First-phase Lifting of Restricted Sale of the Reserved Grant Part of Restricted Stock Incentive Plan in 2021, and
the Board of Directors of the Company agreed to handle the lifting of the restricted sales for 36 incentive
objects who met the conditions for lifting the restricted sales in the first lifting period of the reserved grant part.
The total number of restricted stocks lifted this time was 700,128. The Board of Supervisors issued a clearly
agreed opinion on this matter.
55
2023 Annual Report
Evaluation mechanism and incentives of senior managers
√ Applicable □ Not applicable
In shares
Strike price Quantity Quantity
Number Quantity
Number Number and the Number of of
of newly umber of Quantity of
of stock of number of of stock restricted restricted
granted vested Market price of the Price of the restricted
options exercised the options shares shares
stock shares at the end of shares restricted shares
held at shares exercised held at held at newly
Name Position options during the reporting unlocked shares held at
the during shares the end the granted
during the period in the granted the end of
beginning the during the of the beginning during
the reporting (CNY/share) reporting (CNY/share) the
of the reporting reporting reporting of the the
reporting period period reporting
year period period period reporting reporting
period period
(CNY/share) period period
Zheng Bin Board Chairman 0 0 0 0 0 0 0 325,000 107,250 0 0 390,000
Ye Zhong Director, GM 0 0 0 0 0 0 0 325,000 107,250 0 0 390,000
Li Shijie Vice Board Chairman 0 0 0 0 0 0 0 260,000 85,800 0 0 312,000
Secretary of the Party
Wang
Committee and Chairman 0 0 0 0 0 0 0 260,000 85,800 0 0 312,000
Gang
of the Trade union
Kong Deputy GM, Chief
0 0 0 0 0 0 0 260,000 85,800 0 0 312,000
Jianqiang Engineer
Wang
Deputy GM 0 0 0 0 0 0 0 260,000 85,800 0 0 312,000
Zhengrong
Zhao Deputy, GM, Chief
0 0 0 0 0 0 0 260,000 85,800 0 0 312,000
Jiamao accountant
Secretary of the
Cai
Commission for 0 0 0 0 0 0 0 260,000 85,800 0 0 312,000
Weijun
discipline inspection
Deputy GM, secretary of
Li Guiwen 0 0 0 0 0 0 0 260,000 85,800 0 0 312,000
the board
Li Binghai Deputy GM 0 0 0 0 0 0 0 130,000 42,900 0 0 156,000
Liao
Deputy GM 0 0 0 0 0 0 0 130,000 42,900 0 0 156,000
Weibing
Total -- 0 0 0 0 -- 0 -- 2,730,000 900,900 0 -- 3,276,000
56
2023 Annual Report
The reason for the increase in the number of restricted shares held at the end of the period was due the 2022 equity distribution:
Based on the total share capital of 980,179,980 shares at the end of 2022, after deducting the equity distribution of 111,800 treasury
Remark（If any） shares repurchased on the date of record by the Company and 531,180 shares whose share capital was cancelled in December 2022 due to
the retirement and resignation of the equity incentive object, that is, based on 979,537,000 shares, a cash dividend of RMB 3 (including tax)
will be distributed to all shareholders for every 10 shares.
Evaluation mechanism and incentive situation of senior managers
The Company conducts performance appraisal for senior managers according to the Management Measures for the Implementation of Restricted Stock Incentive
Plan in 2021, Detailed Rules for Performance Appraisal of Restricted Stock Incentive Objects of Hangzhou Steam Turbine Co., Ltd. (Trial) and the Remuneration
Management System for Directors and Senior Managers of the Company.
57
2023 Annual Report
(2) Implementation of ESOP
□ Applicable √ Not applicable
(3) Other employee incentives
□ Applicable √Not applicable
XII. Construction and implementation of internal control system during the reporting period
(1) Construction and implementation of internal control
According to Basic Standards for Internal Control of Enterprises, Guidelines for Application of Internal
Control, Guidelines for Evaluation of Internal Control and Guidelines for Internal Control of Listed Companies
issued by Shenzhen Stock Exchange, the Company formulated the Internal Control Manual of the Company,
comprehensively combed the Company's business processes, identified key risk points, controlled the risk points
according to the Company's actual situation, and the internal audit organization of the Company regularly
evaluated the above control process and effect, and put forward rectification items and improvement suggestions.
The Audit Committee of the Company guided and supervised the internal control of the Company.
During the reporting period, according to the identification of major internal control defects in the
Company's financial report, there were no major internal control defects in the financial report on the base date of
the internal control evaluation report.
According to the identification of major defects in the internal control of the Company's non-financial reports, the
Company found no major defects in the internal control of non-financial reports on the base date of the internal
control evaluation report.
There were no factors influencing the evaluation conclusion of internal control effectiveness between the
base date of the internal control evaluation report and the date of issuance of the internal control evaluation report.
(2)Details of major internal control defects found during the reporting period
□ Yes √ No
XIII. Management and control of the Company's subsidiaries during the reporting period
Problems Subsequent
Integration Measures taken Solution
Company name Integration plan encountered in planned
progress for solution progress
integration solution
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
XIV.Internal control self-evaluation report or internal control audit report
(1)Self-evaluation report on internal control
Disclosure date of appraisal report on
April 30,2024
internal control
Disclosure index of appraisal report on
internal control Disclosed by http://www.cninfo.com.cn dated April 30, 2024
Proportion of total unit assets covered by
appraisal in the total assets of the
100.00%
consolidated financial statements of the
company
Proportion of total unit incomes covered
100.00%
by appraisal in the total business incomes
58
2023 Annual Report
of the consolidated financial statements
of the company
Standards of Defects Evaluation
Type Financial Report Non-financial Report
Deficiency characterized as below will (1) Punishment received by governments
be treated as fatal defects: To correct the below provincial level ( including
fatal errors already published in the provincial level) but no negative effects
financial report （except for the for our company’s periodic report
retrospection and adjustments of disclosure will be considered as a general
previous years because of policies deficiency; (2) or punishments from
changing and other objective factors national governments above provincial
changing);fatal errors already discovered level but no negative effects for our
Standard company’s periodic report disclosure will
by auditor, unidentified in the current
financial report; any fraud among top be considered as a significant deficiency;
management; invalid monitoring to the (3) external official disclosure has been
financial report from audit committee already carried out and brought certain
and internal audit department. negative effects to our company’s
periodic report disclosure will be
considered as a fatal deficiency.
In accordance with the degree of 1) Losses < consolidating 3% of pre-tax
importance of deficiency that may cause profit, will be asserted as general
financial report errors, our company deficiencies; (2) 3% of combined pre-tax
defined quantitative identification profit ≤ losses < 5% of combined pre-tax
standard of financial report internal profit, will be asserted as significant
deficiency control as per the average of deficiencies; (3) losses ≥5% of combined
the last three-year total profit. 1) errors pre-tax profit, will be asserted as fatal
reported indicator < consolidating 3% of deficiencies.
Standards of Quantization pre-tax profit, will be asserted as general
deficiencies; (2) 3% of combined pre-tax
profit ≤ errors reported indicator < 5% of
combined pre-tax profit, will be asserted
as significant deficiencies; (3) errors
reported indicator ≥5% of combined pre-
tax profit, will be asserted as fatal
deficiencies.
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
(2) Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
As far as our best understanding, Hangzhou Turbine Power Group Co., Ltd. has been conducting effective internal control over its
financial reporting system in all material aspects we observed as of December 31, 2023, and has been following with the
Enterprise Internal Control Criteria.
Disclosure of internal audit report Disclosure
Disclosure date of audit report
April 30,2024
of internal control
Index of audit report of
Disclosed by http://www.cninfo.com.cn dated April 30, 2024
internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting the existence of significant deficiencies No
59
2023 Annual Report
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
XV. Rectification of self-examination problems in special governance actions of listed companies
None
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2023 Annual Report
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□Yes No
Administrative penalties for environmental problems during the reporting period
Impact on the
Company's
Name of company or Reasons for production and
Violation situation Penalty result rectification
subsidiary punishment operation of listed
measures
companies
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Prevention and control of pollution facilities construction and operation
None
Administrative penalties for environmental problems during the reporting period
Applicable□ Not applicable
During the reporting period, the Company revised and improved the Management Regulations on
Technical Renovation, Technical Measures and Major Repairs, evaluated the energy conservation of the
implementation projects in the process of examination and approval management of all technical renovation an
technical measures, and explored the transformation of the Company's energy management from back-end
supervision to front-end control; It made full use of the "Internet +" operation mode, explored and promoted the
construction of Energy Management Intelligent System Project, and realized the information collection and
management of energy consumption data in all categories and ranges; It attached great importance to the
technical research and exploration in the development and utilization of energy technology and the recovery and
utilization of surplus energy, successfully completed the acceptance of the emission waste heat recovery and
utilization project of steam turbine test run, and completed the transformation and upgrading of the final
assembly DCS test bed project; It implemented the Comprehensive Reuse Project of Water Resources in
Manufacturing Base to explore and promote the recovery and reuse of all water resources such as rainwater,
boiler concentrated water and test run condensed water.
Reasons for not disclosing other environmental information
（I）Environmental protection
The company has adopted cleaner production management in an all-round way and started cleaner
production audit, which not only reduces consumption and efficiency, but also reduces the pressure and cost of
end treatment. The company's environmental management system has been operating for many years, and has
strictly abided by the provisions of relevant national laws and regulations and the principle of continuous
improvement. The company formulates annual environmental protection targets and environmental
management plans every year. During the reporting period, there was no environmental pollution accident or
over-emission incident.
The company also continues to promote the awareness of social responsibility in the process of product
design and process design, and embodies the concept of green environmental protection in the design process.
The product design process fully considers the possibility of environmental pollution and the impact on
occupational health, meets the international environmental protection requirements, reduces noise, reduces
61
2023 Annual Report
emissions, and uses harmless materials and processes. For example, by taking measures such as sound
insulation enclosure, the running noise of steam turbine can meet the standard. Set up thermal insulation layer to
reduce its thermal radiation to a safe level. In all kinds of nonmetallic materials used in steam turbines,
components harmful to human body are eliminated.
(II) Energy conservation and emission reduction
In recent years, the company has attached great importance to energy conservation and emission reduction
according to the overall arrangement and requirements of its superiors. It has strengthened its leadership and
carefully deployed various work measures to further promote energy conservation and emission reduction at
various levels to ensure solid results in energy conservation and emission reduction.
II. Social responsibilities
With "driving industrial civilization and sustaining China's power" as its business mission, the company
leads the its reform and development with the development concept of "innovation, coordination, green,
openness and sharing". While standardized operation and operation according to law, it strives to shoulder due
social responsibilities and promote the harmonious development of the company, shareholders, investors,
employees, suppliers, customers, consumers and the whole society.
(1) While the company is committed to long-term development and realization of shareholder value, it pays
attention to the natural environment and resources, and undertakes corresponding responsibilities to
shareholders, employees, customers, suppliers, communities and other relevant stakeholders to realize the
harmony, coordination and unity of sustainable development between the company and society.
(2) The company has formulated the "social responsibility management standard", which defines the
company's responsibilities and standard requirements in protecting shareholders and creditors, protects the
interests of employees, ensures safety in production, environmental protection, energy conservation and
emission reduction, and social welfare undertakings, and defines the importance of social responsibility.
(3) The company has further strengthened the protection of the rights and interests of small and medium-
sized investors, strengthened the management of investor relations, and established communication channels in
all aspects. For news affecting major changes in the company's stock price, the company has actively verified
the information content to clarify the facts, and issued announcements when necessary to announce the actual
situation of the company, so as to protect the legitimate rights and interests of small and medium-sized investors.
(4) The company treats suppliers and users in good faith and always maintains good commercial credit and
excellent contract performance level. The company has established a strategic cooperation relationship with
suppliers, set up a convenient information communication platform, and continuously improved the level of
cooperation between the two parties. The company provides customers with high-quality products and
professional services, as well as personalized business solutions adapted to different environments, which are
well received by customers.
(5) The company actively promotes the professional development of employees, continuously improves the
professional environment of employees, and protects the physical and mental health of employees. The
company has a number of highly skilled talents such as national technical experts and provincial and municipal
technical competition pacesetters, and has set up a number of skilled master studios in the production line to
create a golden blue collar team in modern manufacturing. The company has further raised the level of medical
expenses subsidies for employees, and provided health insurance and cancer prevention insurance for
employees. Throughout the year, the company has continuously carried out group cultural activities, expanded
the venues for cultural and sports activities for employees, supported employees to spontaneously establish
various cultural organizations, and created a dynamic enterprise atmosphere.
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2023 Annual Report
(6) The company attaches great importance to environmental protection and energy conservation and
emission reduction. The company has set up special assessment indicators to strictly regulate all kinds of
environmental behaviors in the business process. It strengthens the management of hazardous wastes and
strictly controls the transfer and storage of hazardous wastes. The company's safe disposal rate of hazardous
wastes has reached 100%. During the reporting period, the company's emission tests including waste water,
waste gas, noise and other items all met the national standards. The company has formulated energy
consumption control indicators for various departments, incorporated energy consumption indicators into the
annual assessment system, vigorously carried out energy-saving publicity, regularly organized energy-saving
inspections, and implemented a number of energy-saving renovation projects. The total comprehensive energy
consumption for the whole year decreased significantly year on year.
（7）The Company continued to support and carried out public welfare undertakings. During the reporting
period, it actively responded to the call of the Hangzhou Municipal Party Committee and the Municipal
Government for the "Spring Breeze Action", played a leading and exemplary role as a caring enterprise, and
donated 500,000 yuan to the "Spring Breeze Action".
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
The Company participated in the assistance activities of "Connecting Villages and Towns" in Hangzhou,
and from 2022 to 2025, it provided assistance activities to Zitong Town, Chun'an County with an annual fund of
RMB 150,000.
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2023 Annual Report
VI. Important Events
I. Commitments to fulfill the situation
I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of
the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
Applicable □Not applicable
Time of
Commitment Commitment Period of
Commitment Contents making Fulfillment
maket type commitment
commitment
Hangzhou
Turbine
Power Commitment
Other Group Co., to the transfer
commitments LTD., of the target
made to the Hangzhou company's http://www.cninfo.com.cn(Announcement November Normal
minority Turbine accounts No.:2021-101 and 2021-102) 16,2021 performance
shareholders of Power receivable
the company Technology recovery and
Co., LTD., other matters
and other
transferor
Commitment
Directors not to reduce As of
Other http://www.cninfo.com.cn(Announcement November Normal
and senior the November
commitments No.:2023-96 and 2024-12) 22,2023 performance
managers Company's 21,2024
shares
Whether
commitments
Yes
are fulfilled on
time
Note: Hangzhou Turbine Power Group Co., Ltd has been renamed as Hangzhou Steam Turbine Holdings Co.,
Ltd, and Hangzhou Steam Turbine Power Technology Co., Ltd has been renamed as Hangzhou Guoyu Property
Management Co., Ltd.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.II
Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No such cases in the reporting period.
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the reporting period.
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2023 Annual Report
IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"
□ Applicable √ Not applicable
V.Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board
□ Applicable √ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√Applicable □Not applicable
Since January 1, 2023, the Company has implemented the provisions of the Interpretation No.16 of Accounting
Standards for Business Enterprises - Accounting Treatment for Deferred Income Tax Related to Assets and
Liabilities Arising from Individual Transactions, which was promulgated by the Ministry of Finance. This
accounting policy change has no significant impact on the Company's financial statements.
VII.Explain change of the consolidation scope as compared with the financial reporting of last year.
√Applicable □Not applicable
During the reporting period, there are changes in the scope of consolidation, as detailed in (9) of Section
X"Description of Changes in the Scope of Consolidation" of this report.
VIII. Engagement/Disengagement of CPAs
CPAs currently engaged
Pan-China Certified Public Accountants (Special common
Name of the domestic CPAs
partnership)
Remuneration for domestic accounting firm（In RMB
160
10,000）
Successive years of the domestic CPAs offering auditing
25
services
Names of the certified public accountants from the domestic
Sheng Weiming, Lin Qunhui
CPAs
Successive years of the domestic CPAs offering auditing
5
services
Has the CPAs been changed in the current period
□ Yes √No
Engaging of CPA for internal auditing, financial consultants or sponsors
√ Applicable □ Not applicable
Pan-China Certified Public Accountants is engaged the auditor of internal control system for the current year.
With payment of RMB 300,000 for its service.
IX.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
65
2023 Annual Report
Report
□Applicable √ Not applicable
X. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
No such cases in the reporting period.
XI. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
No such cases in the reporting period.
XII. Situation of Punishment and Rectification
□Applicable √ Not applicable
No such cases in the reporting period.
XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XIV. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
No such cases in the reporting period.
66
2023 Annual Report
2. Related-party transactions arising from asset acquisition or sale
Applicable □Not applicable
Appraised
Carrying
value of
value of Transferred
assets Gain/loss on
Related assets price Settlement Date of Index of
Relationship Type Contents Pricing transferred trading(10,000
party transferred (10,000 terms disclosure disclosure
(10,000 yuan)
(10,000 yuan)
yuan) (if
yuan)
any)
The Company
acquired 20% and
10% equity of the
Steam Parent
Machinery
Turbine company, Purchase of
Company held by
Holdings, Holding minority Assessed Settlement 2023-10- Announcement
Steam Turbine 6,864.64 12,163.50 12,163.50 0.00
Hangzhou subsidiary of shareholders' value in cash 31 No.:2023-87
Holdings and
Guoyu parent equity
Hangzhou Guoyu
Property company
Property
Management Co.,
Ltd.
The Company
Equity
Steam transferred its 30%
Parent transfer under Assessed Settlement 2023-10- Announcement
Turbine equity of the Sales 1,698.50 3,117.00 2,892.00 -197.15
company the same value in cash 31 No.:2023-86
Holdings Company to Steam
control
Turbine Holdings.
Reasons for major differences between transferred price and
Not applicable
carrying value or appraised value (if any)
Impact on operation result and financial status There is no significant impact
Performance during the reporting period if relevant trading involves
Not applicable
a performance covenant
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
67
2023 Annual Report
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporting period.
5. Transactions with related finance company, especially one that is controlled by the Company
□Applicable √ Not applicable
No such cases in the reporting period.
68
2023 Annual Report
6. Transactions between the financial company controlled by the Company and related parties
□ Applicable √Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the
Company and related parties.
7. Other significant related-party transactions
XV.Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
√ Applicable □ Not applicable
In RMB10,000
69
2023 Annual Report
Outward guarantees offered by the Company and its subsidiaries (Excluding guarantee to the subsidiaries）
Relevant Guarantee
Date of Counter-
disclosure Guaranty for
happening Actual Complete
Name of the date/No. of Amount of
（If
guarantee Guarantee associated
(Date of mount of Guarantee type implementation
Company the Guarantee （If term parties
signing guarantee any） or not
guaranteed any） (Yes or
agreement)
amount no)
Guarantee of the company for its subsidiaries
Relevant Guarantee
Date of Counter-
disclosure Guaranty for
happening Actual Complete
Name of the date/No. of Amount of
（If
guarantee Guarantee associated
(Date of mount of Guarantee type implementation
Company the Guarantee （If term parties
signing guarantee any） or not
guaranteed any） (Yes or
agreement)
amount no)
Three
years
from the
New Energy The joint liability date of
January 26,2022 30,000 November 25,2022 12,392.76 No No No No
Company guaranty expiration
of the
principal
debt
Three
years
from the
New Energy The joint liability date of
March 22,2023 30,000 April 6,2023 26,690.31 No No No No
Company guaranty expiration
of the
principal
debt
Two
years
The joint liability from the No
Casting Company October 28,2022 5,000 November 15,2022 170 No No No
guaranty date of
expiration
of the
70
2023 Annual Report
principal
debt
Three
years
from the
Zhongneng The joint liability date of
November 4,2021 16,800 November 29,2021 15,000 No No No No
Company guaranty expiration
of the
principal
debt
Total of guarantee for subsidiaries approved in Total of actual guarantee for subsidiaries in
30,000 26,690.31
the period(B1) the period (B2)
Total of guarantee for subsidiaries approved at Total of actual guarantee for subsidiaries at
81,800 54,253.07
period-end(B3) period-end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant Guarantee
Date of Counter-
disclosure Guaranty for
happening Actual Complete
Name of the date/No. of Amount of
（If
guarantee Guarantee associated
(Date of mount of Guarantee type implementation
Company the Guarantee （If term parties
signing guarantee any） or not
guaranteed any） (Yes or
agreement)
amount no)
Two
years
from the
Guoneng The joint liability date of
November 15,2023 6,000 August 24,2023 3,687.91 No No No No
Company guaranty expiration
of the
principal
debt
Two
years
from the
Guoneng The joint liability date of
November 15,2023 6,000 August 24,2023 2,854.67 No No No No
Company guaranty expiration
of the
principal
debt
Guoneng November 15,2023 5,000 August 24,2023 0 The joint liability Two No No No No
71
2023 Annual Report
Company guaranty years
from the
date of
expiration
of the
principal
debt
Two
years
from the
The joint liability date of
Hangfa Company 2023 年 03 月 29 日 8,000 October 14,2022 6,462.82 No No No No
guaranty expiration
of the
principal
debt
Two
years
from the
The joint liability date of
Hangfa Company Mrch 29,2023 4,000 November 3,2022 3,422.4 No No No No
guaranty expiration
of the
principal
debt
Two
years
from the
The joint liability date of
Hangfa Company September 16,2023 1,500 August 25,2023 952 No No No No
guaranty expiration
of the
principal
debt
Total guarantee quota to the subsidiaries Total amount of guarantee to the subsidiaries
18,500 7,494.58
approved in the reporting period (C1) actually incurred in the reporting period (C2)
Total balance of actual guarantee to the
Total guarantee quota to the subsidiaries
30,500 subsidiaries at the end of the reporting period 17,379.8
approved at the end of the reporting period (C3)
(C4)
72
2023 Annual Report
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual guarantee in the Period
Total of guarantee in the Period（A1+B1+C1） 48,500 34,184.89
（A2+B2+C2）
Total of guarantee at Period-end Total of actual guarantee at Period-end
112,300 71,632.87
（A3+B3+C3） A4+B4+C4）
The proportion of the total amount of actually guarantee in the net assets of the
9.07%
Company(that is A4+B4+C4)
Including
Amount of guarantee for shareholders, actual controller and its associated parties（D） 0
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 64,920.29
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the company exceed 50%（F） 0
Total guarantee Amount of the abovementioned guarantees（D+E+F） 64,920.29
Explanations on possibly bearing joint and several liquidating responsibilities for undue
N/A
guarantees ( If any)
Explanations on external guarantee against regulated procedures(If any) N/A
Description of the guarantee with complex method
Not applicable
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
√ Applicable □Not applicable
Overview of entrusted wealth-management during the reporting period
In RMB 10,000
Source of funds for entrusted financial The Occurred Amount of Entrusted Wealth- Undue Amount Un-recovered of overdue
Specific type
management management balance overdue amount
Bank financing
Self funds 95,170 56,620.2 0 0
product
Total 95,170 56,620.2 0 0
The detailed information of entrusted wealth-management with significant amount or low safety, poor liquidity or high risk with no promise of principal
Applicable □Not applicable
In RMB10,000
73
2023 Annual Report
Amount Summar
of reserve Wheth y of the
Anticipat Whether
Trustee Referen Actual for er has items
Capital Criteri ed Actual approve
instituti Sourc ce collected devaluatio entrust and
Truste Product Amou Start Expir investme a for income gains/loss d by
on (or e of annual gains/loss n of finance related
e type type nt date y date nt fixing (if es in legal
name of funds rate of es in withdrawi plan in query
purpose reward applicabl period procedu
trustee) return period ng (if the index (if
e) re (Y/N)
applicable future applicabl
) e)
Bank Januar money Floatin
Decemb
Hangzh financi Self y market g
Bank 6,500 er 1.46% 1.84 1.84 1.84 Yes No
ou Bank ng funds 6,202 instrume incom
30,2022
product 3 nt e
Total 6,500 -- -- -- -- -- -- 1.84 1.84 -- -- -- --
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that may result in impairment
□ Applicable √ Not applicable
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
No such cases in the reporting period.
74
2023 Annual Report
4. Other significant contract
□ Applicable √ Not applicable
No such cases in the reporting period.
XVI. Explanation on other significant events
√ Applicable □Not applicable
1. Change the English name and registered capital of the Company and revise the Articles of Association. please refer
to the announcement (Announcement number: 2023-22) published by the Company on the Cninfo Information
Network (http://www.cninfo.com.cn) on March 29, 2023.
2. The controlling shareholder Turbine Holdings agreed to transfer 5% equity. please refer to the announcement
(Announcement number: 2023-32) published by the Company on the Cninfo Information Network
(http://www.cninfo.com.cn) on April 4, 2023.
3. Transfer 30% equity of the Sales Company by agreement. please refer to the announcement (Announcement
number: 2023-86) published by the Company on the Cninfo Information Network (http://www.cninfo.com.cn)
on October 31, 2023.
4. Acquire 48% equity of the Machinery Company, please refer to the announcement (Announcement number:
2023-87) published by the Company on the Cninfo Information Network (http://www.cninfo.com.cn) on
October 31, 2023.
5. It is planned to sign an exclusive license agreement for intangible assets with the controlling shareholder.
please refer to the announcement (Announcement number: 2023-88) published by the Company on the Cninfo
Information Network (http://www.cninfo.com.cn) on October 31, 2023.
XVII. Significant event of subsidiary of the Company
√ Applicable □Not applicable
1. Ranchuang Company invested in Western Power Company,please refer to the announcement (Announcement
number: 2023-02) published by the Company on the Cninfo Information Network (http://www.cninfo.com.cn)
on January 17, 2023.
2. Ranchuang Company gave up the priority right to transfer the shares of Western Power Company, please refer to
the announcement (Announcement number: 2023-51) published by the Company on the Cninfo Information
Network (http://www.cninfo.com.cn) on June 10, 2023.
3. Zhongneng Company completed the registration of industrial and commercial change through the joint-stock
reform,please refer to the announcement (Announcement number: 2023-59) published by the Company on the
Cninfo Information Network (http://www.cninfo.com.cn) on June 27, 2023.
75
2023 Annual Report
4. Registration of industrial and commercial change was completed for the joint-stock reform of Casting & Forging
Company,please refer to the announcement (Announcement number: 2023-60) published by the Company on
the Cninfo Information Network (http://www.cninfo.com.cn) on June
76
2023 Annual Report
VII. Change of share capital and shareholding of Principal Shareholders
1.Changes in share capital
1.Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalization
Share
Bonus shares of common Other Subtotal Quantity Proportion
allotment
reserve fund
I. Unlisted shares 623,772,240 63.64% 0 124,754,448 0 0 124,754,448 748,526,688 63.68%
1. Founder's stock 623,772,240 63.64% 0 124,754,448 0 0 124,754,448 748,526,688 63.68%
Including：State-owned shares 623,772,240 63.64% 0 124,754,448 0 0 124,754,448 748,526,688 63.68%
II Listed shares 356,407,740 36.36% 0 71,152,952 0 -642,980 70,509,972 426,917,712 36.32%
2. Foreign shares in domestic
356,407,740 36.36% 0 71,152,952 0 -642,980 70,509,972 426,917,712 36.32%
market
III. Total of capital shares 980,179,980 100.00% 0 195,907,400 0 -642,980 195,264,420 1,175,444,400 100.00%
Causes of Change of shares
√ Applicable □Not applicable
1. On March 27, 2023, the repurchase of 531,180 restricted shares of 10 incentive targets was canceled;
2. The implementation of the 2022 profit distribution plan leads to that: The Company's profit distribution plan for 2022 is based on the total share capital of
980,179,980 shares at the end of 2022, after deducting 111,800 shares repurchased by date of record Company in equity distribution and 531,180 shares canceled in
December 2022 due to the retirement and resignation of equity incentive objects, that is, based on 979,537,000 shares, a cash dividend of RMB 3 and 2 bonus shares
are distributed to all shareholders for every 10 shares, Total of 195,907,400 shares;
3. On June 21, 2023, the repurchase cancellation of 111,800 shares remained in the special securities account was completed.
77
2023 Annual Report
Approval of change of the shares
√ Applicable □Not applicable
1. On December 21, 2022, the Company held the 30th meeting of the Eighth Board of Directors and the 19th
meeting of the Eighth Board of Supervisors, and deliberated and passed the Proposal on Repurchase
Cancellation of Some Restricted Stocks and the Proposal on Adjusting the Repurchase Quantity and Repurchase
Price of the Restricted Stock Incentive Plan in 2021, agreeing to repurchase and cancel a total of 531,180
restricted stocks held by 9 retirees and 1 resigned employee, which have been granted but have not been lifted
for sales restriction.
2. The Company's profit distribution plan for 2022 was reviewed and approved at the 2022 Annual General
Meeting of Shareholders held on April 19, 2023.
3. The Company convened the 32nd session of the Eighth Board of Directors on March 27, 2023, and the 2022
Annual General Meeting of Shareholders on April 19, 2023, at which the Proposal on Canceling the Repurchase
of Remaining Shares in the Special Securities Account was reviewed and approved, and the Company agreed to
cancel the repurchase of the remaining 111,800 shares in the special securities account and reduce the registered
capital.
Ownership transfer of share changes
√ Applicable □Not applicable
1. On March 27, 2023, the Company completed the repurchase cancellation of 531,180 restricted shares. The
Company's total share capital was 980,179,980 before the cancellation, and 979,648,800 after the cancellation.
2. On June 16, 2023, the Company completed the profit distribution for 2022. The total share capital of the
Company was 979,648,800 before the dividend, and was increased to 1,175,556,200 after the dividend.
3. On June 21, 2023, the Company completed the repurchase cancellation of the remaining 111,800 shares in
the special securities account. The total share capital of the Company was 1,175,556,200 shares before
cancellation, and 1,175,444,400 shares after cancellation.
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In Shares
Number of Number of Restricted
Initial Date of
Shareholder Unrestricted Increased Shares in the
Restricted Reason for Restricted Shares Restriction
Name Shares This Restricted Shares End of the
Shares Removal
Term This Term Term
Equity incentive restricted
Zheng Bin 325,000 96,200 128,700 292,500 stocks and restricted sales for 2023-11-10
senior managers.
Equity incentive restricted
Ye Zhong 325,000 96,200 128,700 292,500 stocks and restricted sales for 2023-11-10
senior managers.
78
2023 Annual Report
Equity incentive restricted
Li Shijie 260,000 52,000 0 312,000 stocks and restricted sales for -
senior managers.
Equity incentive restricted
Yang
260,000 76,960 102,960 234,000 stocks and restricted sales for 2023-11-10
Yongming
senior managers.
Equity incentive restricted
Wang Gang 260,000 76,960 102,960 234,000 stocks and restricted sales for 2023-11-10
senior managers.
Equity incentive restricted
Kong
260,000 76,960 102,960 234,000 stocks and restricted sales for 2023-11-10
Jianqiang
senior managers.
Equity incentive restricted
Wang
260,000 76,960 102,960 234,000 stocks and restricted sales for 2023-11-10
Zhengrong
senior managers.
Equity incentive restricted
Zhao
260,000 76,960 102,960 234,000 stocks and restricted sales for 2023-11-10
Jiamao
senior managers.
Equity incentive restricted
Li Guiwen 260,000 76,960 102,960 234,000 stocks and restricted sales for 2023-11-10
senior managers.
Equity incentive restricted
Cai Weijun 260,000 76,960 102,960 234,000 stocks and restricted sales for 2023-11-10
senior managers.
Equity incentive restricted
Li Binghai 130,000 38,480 51,480 117,000 stocks and restricted sales for 2023-11-10
senior managers.
Equity incentive restricted
Liao
130,000 38,480 51,480 117,000 stocks and restricted sales for 2023-11-10
Weibing
senior managers.
Yan Ying 2,025 405 0 2,430 Executives lock stocks -
Equity incentive restricted
Other 22,355,452 3,733,052 8,172,965 17,915,539 2023-11-10
stocks
Total 25,347,477 4,593,537 9,254,045 20,686,969 -- --
Note: On January 30, 2024, 102,960 restricted stocks in reserved grant part held by Mr. Li Shijie were lifted
from restricted sale.
79
2023 Annual Report
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √ Not applicable
3.About the existing employees’ shares
□ Applicable √ Not applicable
III. Particulars about the shareholders and substantial controller
1. Amount of shareholders and their shareholding position
In shares
Total preference
The total number o shareholders with
f preferred shareho voting rights
Total number of common Total shareholders at the end of lders voting recovered at end
shareholders at the end of the 10,862 the month from the date of 10,987 rights restored at p 0 of last month 0
reporting period disclosing the annual report eriod-end (if before annual
any)(Note 8) report disclosed(if
any)(Note8)
Particulars about shares held above 5% by shareholders or top ten shareholders（Excluding shares lent through refinancing)
Number of share
Proportion Number of shares Amount of Amount of un-
Nature of Changes in pledged/frozen
Shareholders of shares held at period - restricted restricted shares
shareholder reporting period State of
held（%） end shares held held Amount
share
Not
State-owned
Hangzhou Turbine Holdings Co., Ltd. 58.68% 689,715,889 65943649 689,715,889 0 applica 0
legal person
ble
Not
State-owned
Hangzhou Qitong Equity Investment Partnership（LP） 5.00% 58,810,799 58810799 58,810,799 0 applica 0
legal person
ble
80
2023 Annual Report
Not
Foreign
China Merchants Secutities(HK)Co., Ltd. 0.73% 8,522,369 1555991 0 8,522,369 applica 0
legal person
ble
Not
GUOTAI JUNAN SECURITIES（HONG KONG） Foreign
0.69% 8,169,032 1621525 0 8,169,032 applica 0
LIMITED legal person
ble
Not
Foreign
Zhou Jue 0.68% 7,974,900 1672600 0 7,974,900 applica 0
legal person
ble
Not
Foreign
ISHARES CORE MSCI EMERGING MARKETS ETF 0.57% 6,736,634 1435372 0 6,736,634 applica 0
legal person
ble
Not
VANGUARD TOTAL INTERNATIONAL STOCK Foreign
0.56% 6,578,411 1096402 0 6,578,411 applica 0
INDEX FUND legal person
ble
Not
VANGUARD EMERGING MARKETS STOCK INDEX Foreign
0.52% 6,144,344 1047457 0 6,144,344 applica 0
FUND legal person
ble
Not
Foreign
NORGES BANK 0.33% 3,922,665 653777 0 3,922,665 applica 0
legal person
ble
Domestic Not
Xia Zulin Natural 0.32% 3,810,000 640000 0 3,810,000 applica 0
person ble
Strategy investors or general legal person becomes top 10 shareholders due
Not applicable
to rights issued (if applicable)（See Notes 3）
(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)
(2) There is no relationship between Hangzhou Turbine Holdings Co., Ltd..;
Explanation on associated relationship among the aforesaid 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”.
Above shareholders entrusting or entrusted with voting rights, or waiving
Not applicable
voting rights
Top 10 shareholders including the special account for repurchase (if any)
Not applicable
(see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of Share type
Name of the shareholder
the reporting period Share type Quantity
81
2023 Annual Report
Foreign shares placed in domestic
China Merchants Securities (HK)Co., Ltd 8,522,369 8,522,369
exchange
Foreign shares placed in domestic
GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED 8,169,032 8,169,032
exchange
Foreign shares placed in domestic
Zhou Jie 7,974,900 7,974,900
exchange
Foreign shares placed in domestic
ISHARES CORE MSCI EMERGING MARKETS ETF 6,736,634 6,736,634
exchange
Foreign shares placed in domestic
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 6,578,411 6,578,411
exchange
Foreign shares placed in domestic
VANGUARD EMERGING MARKETS STOCK INDEX FUND 6,144,344 6,144,344
exchange
Foreign shares placed in domestic
NORGES BANK 3,922,665 3,922,665
exchange
Foreign shares placed in domestic
Xia Zulin 3,810,000 3,810,000
exchange
Foreign shares placed in domestic
Wang Yihu 2,568,923 2,568,923
exchange
VFTC INSTITUTIONAL TOTAL INTERNATIONAL STOCK MARKET INDEX Foreign shares placed in domestic
2,497,664 2,497,664
TRUST II exchange
(1)It is unknown to the Company if there is any relationship among the top 10 common share holders
Explanation on associated relationship or consistent action among the top 10 shareholders
without restriction;
of non-restricted negotiable shares and that between the top 10 shareholders of non-
(2) Other shareholders do not belong to the concerted action persons as stipulated in the Administrative
restricted negotiable shares and top 10 shareholders
Measures for Information Disclosure of Shareholding Changes of Shareholders of Listed Companies
Notes to the shareholders involved in financing securities (if any)(See Notes 4) Not applicable
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
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting
period.
82
2023 Annual Report
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type: Legal person
Name of the holding Legal Incorporated
Organization code Registered capital
shareholder representative in
Manufacturing and processing: textile machinery,
Manufacturing machines,paper-making
machinery, pump, casting products, electrical
tools, gear box, thermal transmitter, digital
controlling device, and spare parts of the above
(limited to the subsidiaries); Contracting of
domestic and overseas machinery engineering
projects, export of above equipments and
materials, provide labor services for above
Hangzhou Turbine December
Hua Wei 91330100143071842L overseas projects. Thermal power plant
Holdings Co., Ltd. 14,1992 project and equipment engineering; wholesale
and retail: products and spare parts manufactured
by members of the group, and technical research,
consulting, and service of above products;
Provide materials, equipments, and spare
parts to members of the Group, water and power
supply (other than installation and maintaining of
power supply equipment); Including the
business scope of subsidiaries.
Shareholding status of the
holding shareholder in
other PLCs in the country None
and abroad during the
report period
Change of holding shareholder
□ Applicable √ Not applicable
No change of holding shareholder in the report period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned Assets Management
Actual controller type：Legal person
Name of the substantial Principal business
Legal representative Date of incorporation Organization code
controller activities
State-owned Assets
Supervision and
Administration
Gu Chunxiao 113301007766375272 Not applicable
Commission of
Hangzhou Municipal
Government
The equity of the
controlling shareholder Hangzhou Jiebai (SH.600814) held 60.04% shares;
in other domestic and Digital Source Technology Co., Ltd.（SZ.000909）held 39.16% shares;
foreign listed
companies held or Hangyang Co., Ltd.(SZ.002430)held 47.98% shares.
partly held by it in the
report period
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
None
83
2023 Annual Report
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□ Applicable √ Not applicable
4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of
the company and its person acting in concert accounts for 80% of the number of shares held by the
company
□Applicable √Not applicable
5.Particulars about other legal person shareholders with over 10% share held
□Applicable √Not applicable
6.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects
□Applicable √Not applicable
IV. Specific implementation of share repurchase during the reporting period
Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable
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VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
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2023 Annual Report
IX. Corporate Bond
□ Applicable √ Not applicable
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2023 Annual Report
X.Financial Report
I. Auditors' Report
Type of auditing opinion Standard report without qualified opinion
Date of signature of audit report April 28,2024
Pan-China Certified Public Accountants (Special common
Name of the CPA partnership)
Reference number of audit Report Tianjianshen(2024)No.: 4802
Name of the certified Public Accountants Sheng Weiming, Lin Qunhui
Auditors’ Report
To the entire shareholders of Hangzhou Turbine Power Group Co., Ltd.
I. Opinion
We have audited the financial statements of Hangzhou Steam Turbine Co., Ltd..(hereinafter referred to as "the
Company"), which comprise the balance sheet as at December 31, 2023, and the income statement, the statement
of cash flows and the statement of changes in owners' equity for the year then ended and notes to the financial
statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31, 2023 and its operating results and cash flows for the year then ended.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit in
this report of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
(I) Recognition of income
1.Description of the matter
For details of the relevant information disclosure, please refer to Note X ,V (37) and Note X ,VII (61) in
the financial statements.
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2023 Annual Report
The operating income of Hangzhou Turbine Co., Ltd. mainly comes from the R&D, production and sales of
industrial steam turbines and other products. In 2023, the amount of operating income items shown in the
consolidated financial statements of Hangzhou Steam Turbine Co., Ltd. was RMB 5,924.238 million, of which the
operating income of industrial steam turbine and supporting sales business was RMB 3,952.6021 million, accounting
for 66.72% of the operating income.
As operating income is one of the key performance indicators of Hangzhou Steam Turbine Co., Ltd., there may
be inherent risks that the management of Hangzhou Steam Turbine Co., Ltd. (hereinafter referred to as management)
can achieve specific goals or expectations through improper income recognition. Therefore, we have identified
revenue recognition as a key audit matter.
2. Audit Countermeasures
For revenue recognition, the audit procedures we have implemented mainly include:
(1) Understand key internal controls related to revenue recognition, evaluate the design of these controls,
determine whether they are implemented, and test the operational effectiveness of relevant internal controls;
(2) Check the sales contract, understand the main contract terms or conditions, and evaluate whether the
revenue recognition method is appropriate;
(3) Implement the analysis procedure for the operating income and gross profit margin by month, product,
customer, etc., identify whether there are significant or abnormal fluctuations, and find out the reasons;
(4) For domestic sales income, select relevant supporting documents for project inspection, including sales
contract, sales invoice, invoice and receipt, etc.; For export income, select relevant supporting documents for project
inspection, including sales contract, export declaration form, bill of lading, sales invoice, etc.;
(5) In conjunction with the letter confirmation of accounts receivable, the sales amount of the current
period for major customers are letter confirmed by sampling method;
(6) Implement a cut-off test to check whether the income is recognized in an appropriate period;
(7) Check that the information related to the operating income whether has been properly presented and
disclosed in the financial statements.
(II) Impairment of accounts receivable
1. Description of the matter
For related information disclosure, please refer to Note X,V (11) and Note X,VII (6) in this report.
As of December 31, 2023, the book balance of accounts receivable of Hangzhou Turbine Co., Ltd. was
RMB 3,132.9346 million, the bad debt provision was RMB 890.7927 milllion, the book value was RMB
2,242.1419 million, the book balance of contract assets was RMB 701.2932 million, the impairment provision
was RMB 60.9066 million, and the book value was RMB 640.3866 million.
According to the credit risk characteristics of all accounts receivable and contract assets, the management
measured their loss provision on a individual or portfolio basis according to the expected credit loss amount
equivalent to the whole duration. Due to the large amount of accounts receivable and contract assets, and the
impairment test of accounts receivable and contract assets involving significant management judgment, we have
identified the impairment of accounts receivable and contract assets as key audit items.
2. Audit Countermeasures
In view of the impairment of accounts receivable and contract assets, our audit procedures mainly include:
(1) Understand the key internal controls related to the impairment of accounts receivable and contract
assets, evaluate the design of these controls, determine whether they are implemented, and test the operational
effectiveness of relevant internal controls;
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2023 Annual Report
(2) Review the results of the management's estimation of bad debt provision and impairment provision in
previous years or the subsequent re-estimation made by the management;
(3) Review the relevant considerations and objective evidence of the management's credit risk assessment
of accounts receivable and contract assets, and evaluate whether the management properly identifies the credit
risk characteristics of all accounts receivable and contract assets;
(4) For accounts receivable and contract assets that measure expected credit losses on an individual basis,
review the management's forecast of expected cash flow, evaluate the appropriateness of major assumptions
used in the forecast and the appropriateness, relevance and reliability of data, and check with external evidence
obtained;
(5) For accounts receivable and contract assets that measure expected credit losses on portfolio basis,
evaluate the rationality of management's division of portfolio according to credit risk characteristics; Evaluate
the rationality of the expected credit loss rate of accounts receivable and contract assets determined by the
management, including the appropriateness of major assumptions used and the appropriateness, relevance and
reliability of data; Test whether the management's calculation of bad debt provision and impairment provision is
accurate;
(6) Evaluate the rationality of management's accrual of bad debt provision and impairment provision in
combination with the letters and certificates of accounts receivable and contract assets and the payment after the
period;
(7) Check whether the information related to the impairment of accounts receivable and contract assets
has been properly presented in the financial statements.
(III) Net realizable value of inventories
1. Description of the matter
For details of relevant information disclosure, please refer to Note X,V (17) and Note X,VII (10) in this
report.
As of December 31, 2023, the book balance of the inventory items shown in the consolidated financial
statements of Hangzhou Turbine Co., Ltd. was RMB 2,717.6864 million, the provision for price falling was
RMB 288.1904 million, and the book value was RMB 2,429.496 million.
Inventory is measured by the lower of cost and net realizable value. The management determines the net
realizable value according to the estimated selling price minus the estimated cost, estimated sales expenses and
related taxes and fees. As the amount of inventory is significant and it is determined that the net realizable value
of inventory involves significant management judgment, we have determined the net realizable value of
inventory as a key audit item.
2. Audit Countermeasures
For the net realizable value of inventories, the audit procedures we have implemented mainly include:
(1) Understand the key internal controls related to the net realizable value of inventory, evaluate the design
of these controls, determine whether they have been implemented, and test the operational effectiveness of the
relevant internal controls;
(2) Review the results of the management's estimation of net realizable value of inventory in previous
years or the subsequent re-estimation made by the management;
(3) Select items to evaluate the rationality of the estimated selling price of inventory, and check whether
the estimated selling price is consistent with the situation and market information after the period;
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2023 Annual Report
(4) Evaluate the rationality of the management's estimation of the costs, sales expenses and related taxes
and fees that will occur from inventory to completion;
(5) Test whether the management's calculation of the net realizable value of inventory is accurate;
(6) Combined with inventory supervision, identify whether there are situations such as long storage age,
outdated models, suspension or termination of project, changes in market demand, etc., and evaluate the
rationality of the management's estimation of the net realizable value of inventory;
(7) Check whether the information related to the net realizable value of inventory has been properly
presented in the financial statements.
IV. Other information
The management of the Company is responsible for the other information. The other information comprises
information of the Company's annual report, but excludes the financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor's report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
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2023 Annual Report
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the
Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
April 28,2024
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2023 Annual Report
II. The Financial Statements
Statement in Financial Notes are carried in RMB
1. Consolidated Balance Sheet
Prepared by: Hangzhou Turbine Power Group Co., Ltd
December 31,2023
In RMB
Items December 31,2023 January 1,2023
Current asset：
Monetary fund 2,798,168,129.50 1,954,980,787.90
Settlement provision
Outgoing call loan
Transactional financial assets 568,887,484.10 607,001,143.44
Derivative financial assets
Notes receivable 84,988,677.11 95,612,927.26
Account receivable 2,242,141,940.94 1,924,679,367.08
Financing of receivables 756,873,166.56 817,555,768.45
Prepayments 725,264,109.04 401,523,615.49
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable 43,018,211.13 25,366,963.26
Including：Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories 2,429,496,037.81 2,322,461,286.52
Contract assets 640,386,559.53 587,719,735.46
Assets held for sales
Non-current asset due within 1 year
Other current asset 5,622,606.07 78,949,731.48
Total of current assets 10,294,846,921.79 8,815,851,326.34
Non-current assets：
Non-current assets：
Loans and payment on other’s behalf disbursed
Creditor's right investment
Long-term receivable 14,779,983.03 77,541,093.03
Long term share equity investment
Other equity instruments investment 2,721,470,812.06 3,556,127,694.48
Other non-current financial assets 5,534,773.22 5,534,773.22
Property investment 1,544,449.40 6,451,478.55
Fixed assets 1,995,150,533.24 1,926,594,610.89
Construction in progress 298,071,246.03 286,290,854.97
Production physical assets
Oil & gas assets
Use right assets 34,274,571.45 28,105,943.29
Intangible assets 409,302,531.32 274,844,788.47
Development expenses
Goodwill 15,415,678.59
Long-germ expenses to be amortized
Deferred income tax asset 73,600,434.50 352,734,092.61
Other non-current asset 63,688,181.60 44,922,954.47
Total of non-current assets 5,632,833,194.44 6,559,148,283.98
Total of assets 15,927,680,116.23 15,374,999,610.32
Current liabilities
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2023 Annual Report
Short-term loans 504,428,866.04 287,753,227.89
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 481,424,952.96 411,886,347.73
Account payable 1,409,130,502.72 1,202,915,727.29
Advance receipts 29,998.47 230,204.48
Contract liabilities 2,753,211,717.09 2,306,912,441.68
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 139,367,042.75 139,014,673.58
Tax payable 91,797,224.07 73,385,124.09
Other account payable 151,669,883.07 203,788,336.85
Including：Interest payable
Dividend payable 90,000.00
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 80,815,769.12 42,802,886.86
Other current liability 310,595,405.34 267,585,963.69
Total of current liability 5,922,471,361.63 4,936,274,934.14
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 222,819,841.07 159,903,673.86
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 15,945,346.47 16,334,023.10
Long-term payable 12,195,896.78 11,104,088.21
Long-term remuneration payable to staff
Expected liabilities 11,768,979.69
Deferred income 1,069,670,711.41 877,381,129.85
Deferred income tax liability 73,994,186.59 474,809,014.19
Other non-current liabilities 58,696,860.00
Total non-current liabilities 1,465,091,822.01 1,539,531,929.21
Total of liability 7,387,563,183.64 6,475,806,863.35
Owners’ equity
Share capital 1,175,444,400.00 980,179,980.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 399,213,704.44 394,935,862.00
Less：Shares in stock 86,290,288.75 136,466,388.09
Other comprehensive income 1,980,939,256.24 2,690,397,606.30
Special reserve 20,355,377.31 17,841,325.92
Surplus reserves 625,178,089.82 625,178,089.82
Common risk provision
Retained profit 3,784,435,361.60 3,756,414,638.24
Total of owner’s equity belong to the parent company 7,899,275,900.66 8,328,481,114.19
Minority shareholders’ equity 640,841,031.93 570,711,632.78
Total of owners’ equity 8,540,116,932.59 8,899,192,746.97
Total of liabilities and owners’ equity 15,927,680,116.23 15,374,999,610.32
Legal Representative: Zheng Bin Person in charge of Accounting Works: Zhao Jiamao
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2023 Annual Report
2.Parent Company Balance Sheet
I RMB
Items December 31,2023 January 1,2023
Current asset：
Monetary fund 1,198,706,140.69 1,074,031,333.05
Transactional financial assets 451,960,706.24 381,998,737.18
Derivative financial assets
Notes receivable 48,723,200.00 34,407,856.32
Account receivable 1,610,475,971.83 1,438,060,860.05
Financing of receivables 466,224,508.82 456,488,422.29
Prepayments 194,044,916.86 316,162,169.59
Other account receivable 6,258,018.53 8,397,079.99
Including：Interest receivable
Dividend receivable 110,000.00
Inventories 1,309,708,237.14 1,258,239,826.08
Contract assets 383,286,226.27 358,622,953.48
Assets held for sales
Non-current asset due within 1 year
Other current asset 59,000.08 66,426,019.02
Total of current assets 5,669,446,926.46 5,392,835,257.05
Non-current assets：
Creditor's right investment
Other investment on bonds
Long-term receivable
Long term share equity investment 741,912,842.24 400,480,973.25
Other equity instruments investment 2,721,470,812.06 3,556,127,694.48
Other non-current financial assets 5,534,773.22 5,534,773.22
Property investment
Fixed assets 1,558,177,974.55 1,474,208,708.15
Construction in progress 249,066,837.78 283,786,818.95
Production physical assets
Oil & gas assets
Use right assets 4,377,781.09 2,717,667.45
Intangible assets 241,459,124.96 188,674,302.83
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 297,762,053.26
Other non-current asset 60,817,500.00 30,999,462.87
Total of non-current assets 5,582,817,645.90 6,240,292,454.46
Total of assets 11,252,264,572.36 11,633,127,711.51
Current liabilities
Short-term loans 354,073,287.67 200,169,863.01
Transactional financial liabilities
Derivative financial liabilities
Notes payable 118,677,114.86 5,900,000.00
Account payable 875,769,755.40 740,412,296.58
Advance receipts 315,237.45
Contract Liabilities 1,281,868,805.36 1,332,554,908.08
Employees’ wage payable 84,954,153.08 82,125,367.12
Tax payable 26,868,892.51 17,200,998.61
Other account payable 132,513,722.18 184,847,189.08
Including：Interest payable
Dividend payable
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2023 Annual Report
Liabilities held for sales
Non-current liability due within 1 year 3,600,766.81 1,503,579.95
Other current liability 145,644,551.64 140,853,281.80
Total of current liability 3,024,286,286.96 2,705,567,484.23
Non-current liabilities：
Long-term loan 75,055,479.45
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 1,033,302.92 1,575,000.00
Long-term payable 9,093,277.96 5,852,616.69
Long-term remuneration payable to staff
Expected liabilities 3,106,235.92
Deferred income 951,548,103.70 741,999,661.14
Deferred income tax liability 66,103,761.74 474,809,014.19
Other non-current liabilities
Total non-current liabilities 1,105,940,161.69 1,224,236,292.02
Total of liability 4,130,226,448.65 3,929,803,776.25
Owners’ equity
Share capital 1,175,444,400.00 980,179,980.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 221,680,078.37 175,558,788.66
Less：Shares in stock 86,290,288.75 136,466,388.09
Other comprehensive income 1,980,939,256.24 2,690,397,606.30
Special reserve 5,240,943.39 6,000,000.00
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 3,222,667,331.81 3,385,297,545.74
Total of owners’ equity 7,122,038,123.71 7,703,323,935.26
Total of liabilities and owners’ equity 11,252,264,572.36 11,633,127,711.51
Legal Representative: Zheng Bin Person in charge of Accounting Works: Zhao Jiamao
Person in charge of Accounting Institution: Lv Lin
3.Consolidated Income statement
In RMB
Items Year 2023 Year 2022
I. Income from the key business 5,924,238,021.22 5,518,841,939.82
Incl：Business income 5,924,238,021.22 5,518,841,939.82
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 5,606,309,789.60 5,133,169,840.46
Incl：Business cost 4,475,707,358.67 4,027,414,803.26
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 36,504,541.61 38,383,758.77
Sales expense 309,537,776.05 221,489,523.60
Administrative expense 539,443,616.46 590,938,269.71
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2023 Annual Report
R & D costs 276,685,638.98 284,239,883.04
Financial expenses -31,569,142.17 -29,296,397.92
Including：Interest expense 20,910,664.51 24,366,789.74
Interest income 44,289,213.68 18,946,425.24
Add: Other income 112,573,844.66 73,730,674.31
Investment gain（“-”for loss） 125,962,024.74 135,599,082.88
Incl: investment gains from affiliates
Financial assets measured at amortized cost cease to be
recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value 686,725.67 313,477.36
Credit impairment loss 82,719,910.10 82,441,348.93
Impairment loss of assets -37,827,614.77 -24,440,216.13
Assets disposal income 68,805,634.27 95,281.00
III. Operational profit（“-”for loss） 670,848,756.29 653,411,747.71
Add ：Non-operational income 67,284,290.91 57,650,448.40
Less: Non-operating expense 2,615,000.42 3,130,575.97
IV. Total profit(“-”for loss) 735,518,046.78 707,931,620.14
Less：Income tax expenses 69,298,705.58 82,692,261.45
V. Net profit 666,219,341.20 625,239,358.69
(I) Classification by business continuity
1.Net continuing operating profit 666,219,341.20 625,239,358.69
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 517,680,522.56 522,396,807.32
2.Minority shareholders’ equity 148,538,818.64 102,842,551.37
VI. Net after-tax of other comprehensive income -709,458,350.06 59,821,266.74
Net of profit of other comprehensive income attributable to owne -709,458,350.06 59,972,370.69
rs of the parent company.
（I）Other comprehensive income items that will not be
-709,458,350.06 60,084,420.53
reclassified into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or ne
t assets
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-709,458,350.06 60,084,420.53
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into profit o -112,049.84
r loss.
1.Other comprehensive income under the equity method investee
can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements -112,049.84
7.Other
Net of profit of other comprehensive income attributable to Mino
-151,103.95
rity shareholders’ equity
VII. Total comprehensive income -43,239,008.86 685,060,625.43
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2023 Annual Report
Total comprehensive income attributable to the owner of the
-191,777,827.50 582,369,178.01
parent company
Total comprehensive income attributable minority shareholders 148,538,818.64 102,691,447.42
VIII. Earnings per share
（I）Basic earnings per share 0.44 0.45
(II)Diluted earnings per share 0.44 0.45
Legal Representative: Zheng Bin Person in charge of Accounting Works: Zhao Jiamao
Person in charge of Accounting Institution: Lv Lin
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2023 Annual Report
4. Income statement of the Parent Company
In RMB
Items Year 2023 Year 2022
I. Income from the key business 3,300,848,259.74 3,185,535,942.16
Incl：Business cost 2,782,581,534.94 2,463,100,672.79
Business tax and surcharge 17,704,307.45 21,955,800.03
Sales expense 125,232,935.57 94,333,279.35
Administrative expense 311,695,730.53 392,945,595.33
R & D expense 146,405,970.16 138,488,509.23
Financial expenses -31,588,731.08 -31,955,926.80
Including：Interest expenses 7,685,083.49 5,389,750.73
Interest income 29,858,490.59 11,578,539.98
Add：Other income 68,228,908.43 46,434,957.91
Investment gain（“-”for loss） 200,528,802.96 216,423,127.90
Including: investment gains from affiliates
Financial assets measured at amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value -38,030.94 313,477.36
Credit impairment loss 91,505,070.63 68,354,461.56
Impairment loss of assets -6,427,744.43 -28,878,579.86
Assets disposal income 67,611.66 26,288.11
II. Operational profit（“-”for loss） 302,681,130.48 409,341,745.21
Add ：Non-operational income 43,789,126.42 47,625,261.60
Less：Non -operational expenses 643,958.18 1,929,713.30
III. Total profit(“-”for loss) 345,826,298.72 455,037,293.51
Less：Income tax expenses 18,796,713.45 35,367,282.97
IV. Net profit 327,029,585.27 419,670,010.54
1.Net continuing operating profit 327,029,585.27 419,670,010.54
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -709,458,350.06 60,084,420.53
（I）Other comprehensive income items that will not be
-709,458,350.06 60,084,420.53
reclassified into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net
assets
2.Other comprehensive income under the equity method investee c
an not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-709,458,350.06 60,084,420.53
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit
or loss
1.Other comprehensive income under the equity method investee c
an be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of
financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
VI. Total comprehensive income -382,428,764.79 479,754,431.07
98
2023 Annual Report
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Zheng Bin Person in charge of Accounting Works: Zhao Jiamao
Person in charge of Accounting Institution: Lv Lin
99
2023 Annual Report
5. Consolidated Cash flow statement
In RMB
Items Year 2023 Year 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 5,480,553,759.26 4,396,331,648.09
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 35,505,297.26 81,231,460.36
Other cash received from business operation 624,660,952.22 251,137,216.37
Sub-total of cash inflow 6,140,720,008.74 4,728,700,324.82
Cash paid for purchasing of merchandise and services 3,257,512,577.78 2,662,046,241.61
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee and commission
Cash paid to staffs or paid for staffs 1,057,669,829.30 1,027,230,600.33
Taxes paid 209,923,929.22 344,859,140.11
Other cash paid for business activities 738,404,186.82 370,423,537.14
Sub-total of cash outflow from business activities 5,263,510,523.12 4,404,559,519.19
Net cash generated from /used in operating activities 877,209,485.62 324,140,805.63
II. Cash flow generated by investing
Cash received from investment retrieving 3,549,300.00 10,752,958.20
Cash received as investment gains 122,351,924.02 131,449,638.53
Net cash retrieved from disposal of fixed assets, intangible assets,
159,969,369.62 1,216,686.31
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
4,416,344.67
units
Other investment-related cash received 1,949,106,998.18 2,627,490,212.88
Sub-total of cash inflow due to investment activities 2,239,393,936.49 2,770,909,495.92
Cash paid for construction of fixed assets, intangible assets and
350,527,607.65 272,801,578.46
other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units 43,465,050.37
Other cash paid for investment activities 1,652,881,291.38 2,085,697,180.39
Sub-total of cash outflow due to investment activities 2,046,873,949.40 2,358,498,758.85
Net cash flow generated by investment 192,519,987.09 412,410,737.07
III.Cash flow generated by financing
Cash received as investment 44,462,700.00 169,795,500.00
Including: Cash received as investment from minor shareholders 44,462,700.00 169,795,500.00
Cash received as loans 634,662,465.91 306,300,000.00
Other financing –related cash received 8,000,000.00 200,000.00
Sub-total of cash inflow from financing activities 687,125,165.91 476,295,500.00
Cash to repay debts 338,200,000.00 267,900,000.00
Cash paid as dividend, profit, or interests 357,070,007.29 363,192,673.98
100
2023 Annual Report
Including: Dividend and profit paid by subsidiaries to minor
44,053,580.00 44,416,370.00
shareholders
Other cash paid for financing activities 211,579,920.94 273,340,869.54
Sub-total of cash outflow due to financing activities 906,849,928.23 904,433,543.52
Net cash flow generated by financing -219,724,762.32 -428,138,043.52
IV. Influence of exchange rate alternation on cash and cash
6,583,468.87 29,075,934.51
equivalents
V.Net increase of cash and cash equivalents 856,588,179.26 337,489,433.69
Add: balance of cash and cash equivalents at the beginning of term 1,805,028,401.76 1,467,538,968.07
VI ..Balance of cash and cash equivalents at the end of term 2,661,616,581.02 1,805,028,401.76
Legal Representative: Zheng Bin Person in charge of Accounting Works: Zhao Jiamao
Person in charge of Accounting Institution: Lv Lin
6. Cash Flow Statement of the Parent Company
In RMB
Items Year 2023 Year 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,586,471,545.56 1,980,841,503.83
Tax returned 19,739,483.93 52,872,382.00
Other cash received from business operation 52,919,649.72 66,396,405.12
Sub-total of cash inflow 2,659,130,679.21 2,100,110,290.95
Cash paid for purchasing of merchandise and services 1,516,551,719.97 1,314,401,634.33
Cash paid to staffs or paid for staffs 599,439,633.36 597,944,639.72
Taxes paid 38,521,453.03 159,798,491.41
Other cash paid for business activities 107,576,657.61 85,114,385.41
Sub-total of cash outflow from business activities 2,262,089,463.97 2,157,259,150.87
Net cash generated from /used in operating activities 397,041,215.24 -57,148,859.92
II. Cash flow generated by investing
Cash received from investment retrieving 30,655,007.83 10,288,000.00
Cash received as investment gains 202,245,282.78 217,826,572.17
Net cash retrieved from disposal of fixed assets, intangible assets,
1,396,837.93 800,882.00
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received 1,344,890,547.93 1,943,515,564.65
Sub-total of cash inflow due to investment activities 1,579,187,676.47 2,172,431,018.82
Cash paid for construction of fixed assets, intangible assets and
204,031,687.01 208,876,108.57
other long-term assets
Cash paid as investment 412,452,500.00 203,652,611.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 1,160,000,000.00 1,260,000,000.00
Sub-total of cash outflow due to investment activities 1,776,484,187.01 1,672,528,719.57
Net cash flow generated by investment -197,296,510.54 499,902,299.25
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 428,670,807.13 200,000,000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 428,670,807.13 200,000,000.00
Cash to repay debts 200,000,000.00 150,000,000.00
Cash paid as dividend, profit, or interests 301,606,989.62 306,578,624.17
Other cash paid for financing activities 5,289,347.00 7,456,797.00
Sub-total of cash outflow due to financing activities 506,896,336.62 464,035,421.17
Net cash flow generated by financing -78,225,529.49 -264,035,421.17
IV. Influence of exchange rate alternation on cash and cash
3,153,632.43 21,960,352.49
equivalents
V.Net increase of cash and cash equivalents 124,672,807.64 200,678,370.65
101
2023 Annual Report
Add: balance of cash and cash equivalents at the beginning of term 1,074,013,333.05 873,334,962.40
VI ..Balance of cash and cash equivalents at the end of term 1,198,686,140.69 1,074,013,333.05
Legal Representative: Zheng Bin Person in charge of Accounting Works: Zhao Jiamao
Person in charge of Accounting Institution: Lv Lin
102
2023 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Year 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Share Com O
Shar Pr Other Minor Total of
Items Capital Other mon t
e efe Equity Specialized Surplus Retained shareholders owners’
Prefer Comprehensiv risk h Subtotal ’ equity equity
Capi Sustai rre instrument reserve reserves profit
red Sustainable e Income prov e
tal nable d Other
stock debt ision r
debt sto
ck
980,1
I.Balance at the end of last
79,98 394,935,862.00 136,466,388.09 2,690,397,606.30 17,841,325.92 625,178,089.82 3,756,414,638.24 8,328,481,114.19 570,711,632.78 8,899,192,746.97
year
0.00
Add: Change of accounting
policy
Correcting of previous errors
Other
980,1
II.Balance at the beginning of
79,98 394,935,862.00 136,466,388.09 2,690,397,606.30 17,841,325.92 625,178,089.82 3,756,414,638.24 8,328,481,114.19 570,711,632.78 8,899,192,746.97
current year
0.00
195,2
III.Changed in the current
64,42 4,277,842.44 -50,176,099.34 -709,458,350.06 2,514,051.39 28,020,723.36 -429,205,213.53 70,129,399.15 -359,075,814.38
year
0.00
（1）Total comprehensive
-709,458,350.06 517,680,522.56 -191,777,827.50 148,538,818.64 -43,239,008.86
income
（II）Investment or -
decreasing of capital by 642,9 41,646,498.96 -3,834,873.75 44,838,392.71 44,521,555.42 89,359,948.13
owners 80.00
-
1．Ordinary Shares invested
642,9 -3,191,893.75 -3,834,873.75 44,462,700.00 44,462,700.00
by shareholders
80.00
2．Holders of other equity in
struments invested capital
3．Amount of shares paid
and accounted as owners’ 44,838,392.71 44,838,392.71 58,855.42 44,897,248.13
equity
4．Other
103
2023 Annual Report
（III）Profit allotment -7,313,545.20 -293,752,399.20 -286,438,854.00 -43,963,580.00 -330,402,434.00
1.Providing of surplus
reserves
2.Providing of common risk
provisions
3．Allotment to the owners
-7,313,545.20 -293,752,399.20 -286,438,854.00 -43,963,580.00 -330,402,434.00
(or shareholders)
4．Other
195,9
(IV) Internal transferring of
07,40 -195,907,400.00
owners’ equity
0.00
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by
surplus reserves.
4.Change amount of defined
benefit plans that carry
forward
Retained earnings
5．Other comprehensive
income carry-over retained
earnings
195,9
6．Other 07,40 -195,907,400.00
0.00
(V). Special reserves 493,759.19 493,759.19 -659,952.17 -166,192.98
1. Provided this year 14,996,887.19 14,996,887.19 6,263,720.75 21,260,607.94
2．Used this term -14,503,128.00 -14,503,128.00 -6,923,672.92 -21,426,800.92
（VI）Other -37,368,656.52 -39,027,680.39 2,020,292.20 3,679,316.07 -78,307,442.74 -74,628,126.67
1,175,
IV. Balance at the end of this
444,4 399,213,704.44 86,290,288.75 1,980,939,256.24 20,355,377.31 625,178,089.82 3,784,435,361.60 7,899,275,900.66 640,841,031.93 8,540,116,932.59
term
00.00
Amount in last year
In RMB
Year 2022
Owner’s equity Attributable to the Parent Company
Minor Total of
Items Other Equity instrument Less: Other Common
Share Capital Specialized Surplus Retained shareholders’ owners’
Preferred Shares in Comprehensive risk Other Subtotal equity equity
Capital Other reserves reserve reserves profit
stock Sustainable stock Income provision
104
2023 Annual Report
debt
I.Balance at
the end of last 754,010,400.00 282,946,030.50 144,078,948.09 2,629,477,756.99 18,369,033.52 625,178,089.82 3,761,583,410.91 7,927,485,773.65 402,064,747.47 8,329,550,521.12
year
Add: Change
of
accountin
g policy
Correcting of
previous errors
Other
II.Balance at
the beginning 754,010,400.00 282,946,030.50 144,078,948.09 2,629,477,756.99 18,369,033.52 625,178,089.82 3,761,583,410.91 7,927,485,773.65 402,064,747.47 8,329,550,521.12
of current year
III.Changed in
the current 226,169,580.00 111,989,831.50 -7,612,560.00 60,919,849.31 -527,707.60 -5,168,772.67 400,995,340.54 168,646,885.31 569,642,225.85
year
（1）Total
comprehensive 59,972,370.69 522,396,807.32 582,369,178.01 102,691,447.42 685,060,625.43
income
（II）
Investment or
decreasing of 54,919,487.13 54,919,487.13 171,128,102.88 226,047,590.01
capital by
owners
1.Ordinary
shares in
169,795,500.00 169,795,500.00
vested by
shareholders
2．Holders of
other equity
instruments
invested
capital
3．Amount of
shares paid
and accounted 54,919,487.13 54,919,487.13 1,332,602.88 56,252,090.01
as owners'
equity
4．Other
（III）Profit
-7,612,560.00 -301,395,999.99 -293,783,439.99 -44,416,370.00 -338,199,809.99
allotment
105
2023 Annual Report
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to
the owners (or -7,612,560.00 -301,395,999.99 -293,783,439.99 -44,416,370.00 -338,199,809.99
shareholders)
4．Other
(IV) Internal
transferring of 226,169,580.00 -226,169,580.00
owners’ equity
1. Capitalizing of
capital reserves
(or to capital
shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4.Change amount
of defined benefit
plans that carry
forward
Retained earnings
5．Other
comprehensive
income carry-
over retained
earnings
6．Other 226,169,580.00 -226,169,580.00
(V). Special
reserves 443,211.69 443,211.69 -167,410.71 275,800.98
1. Provided this
year 5,749,535.20 5,749,535.20 999,586.73 6,749,121.93
2．Used this
-5,306,323.51 -5,306,323.51 -1,166,997.44 -6,473,320.95
term
（VI）Other 57,070,344.37 947,478.62 -970,919.29 57,046,903.70 -60,588,884.28 -3,541,980.58
IV. Balance at the
end of this term 980,179,980.00 394,935,862.00 136,466,388.09 2,690,397,606.30 17,841,325.92 625,178,089.82 3,756,414,638.24 8,328,481,114.19 570,711,632.78 8,899,192,746.97
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
106
2023 Annual Report
In RMB
Year 2023
Other Equity instrument
Less: Other Specializ Total of
Items Share Capital Surplus Retained Othe
Preferre Othe Shares in Comprehensi ed owners’
capital Sustainab reserves reserves profit r
d stock r stock ve Income reserve equity
le debt
980,179,980.0 175,558,788. 136,466,388. 602,356,402. 3,385,297,545. 7,703,323,935.
I.Balance at the end of last year 2,690,397,606.30 6,000,000.00
0 66 09 65 74 26
Add: Change of accounting policy
Correcting of previous errors
Other
980,179,980.0 175,558,788. 136,466,388. 602,356,402. 3,385,297,545. 7,703,323,935.
II.Balance at the beginning of current year 2,690,397,606.30 6,000,000.00
0 66 09 65 74 26
- - -
195,264,420.0 46,121,289.7
III.Changed in the current year 50,176,099.3 -709,458,350.06 -759,056.61 162,630,213.9 581,285,811.5
0 1
4 3 5
-
327,029,585.2
（I）Total comprehensive income -709,458,350.06 382,428,764.7
7
9
(II) Investment or decreasing of capital by 41,705,354.3 -
-642,980.00 44,897,248.13
owners 8 3,834,873.75
- -
1．Ordinary Shares invested by shareholders -642,980.00
3,191,893.75 3,834,873.75
2．Holders of other equity instruments invested
capital
3.Amount of shares paid and accounted as 44,897,248.1
44,897,248.13
owners’ equity 3
4．Other
- -
-
（III）Profit allotment 293,752,399.2 286,438,854.0
7,313,545.20
0 0
1.Providing of surplus reserves
- -
-
2．Allotment to the owners (or shareholders) 293,752,399.2 286,438,854.0
7,313,545.20
0 0
3．Other
-
195,907,400.0
(IV) Internal transferring of owners’ equity 195,907,400.0
0
0
107
2023 Annual Report
1. Capitalizing of capital reserves (or to capital
shares)
2. Capitalizing of surplus reserves (or to capital
shares)
3．Making up losses by surplus reserves.
4.Change amount of defined benefit plans that
carry forward
Retained earnings
5．Other comprehensive income carry-over
retained earnings
-
195,907,400.0
6．Other 195,907,400.0
0
0
(V) Special reserves -759,056.61 -759,056.61
1. Provided this year 5,795,535.94 5,795,535.94
-
2．Used this term -6,554,592.55
6,554,592.55
-
（VI）Other 4,415,935.33 39,027,680.3 43,443,615.72
9
1,175,444,400. 221,680,078. 86,290,288.7 602,356,402. 3,222,667,331. 7,122,038,123.
IV. Balance at the end of this term 1,980,939,256.24 5,240,943.39
00 37 5 65 81 71
Amount in last year
In RMB
Year 2022
Other Equity instrument
Less: Other Specializ Total of
Items Share Capital Surplus Retained Othe
Preferre Othe Shares in Comprehensi ed owners’
Capital Sustainab reserves reserves profit r
d stock r stock ve Income reserve equity
le debt
754,010,400. 121,457,098. 144,078,948. 602,356,402. 3,493,193,115. 7,463,251,254.
I.Balance at the end of last year 2,630,313,185.77 6,000,000.00
00 65 09 65 19 17
Add: Change of accounting policy
Correcting of previous errors
Other
754,010,400. 121,457,098. 144,078,948. 602,356,402. 3,493,193,115. 7,463,251,254.
II.Balance at the beginning of current year 2,630,313,185.77 6,000,000.00
00 65 09 65 19 17
-
226,169,580. 54,101,690.0 - 240,072,681.0
III.Changed in the current year 60,084,420.53 107,895,569.4
00 1 7,612,560.00 9
5
108
2023 Annual Report
419,670,010.5 479,754,431.0
（I）Total comprehensive income 60,084,420.53
4 7
(II) Investment or decreasing of capital by 54,101,690.0
54,101,690.01
owners 1
1．Ordinary Shares invested by shareholders
2．Holders of other equity instruments invested
capital
3.Amount of shares paid and accounted as 54,101,690.0
54,101,690.01
owners’ equity 1
4．Other
- -
-
（III）Profit allotment 301,395,999.9 293,783,439.9
7,612,560.00
9 9
1.Providing of surplus reserves
- -
-
2．Allotment to the owners (or shareholders) 301,395,999.9 293,783,439.9
7,612,560.00
9 9
3．Other
-
226,169,580.
(IV) Internal transferring of owners’ equity 226,169,580.0
00
0
1. Capitalizing of capital reserves (or to capital
shares)
2. Capitalizing of surplus reserves (or to capital
shares)
3．Making up losses by surplus reserves.
4.Change amount of defined benefit plans that
carry forward
Retained earnings
5．Other comprehensive income carry-over
retained earnings
-
226,169,580.
6．Other 226,169,580.0
00
0
(V) Special reserves
1. Provided this year 3,900,260.39 3,900,260.39
2．Used this term -3,900,260.39 -3,900,260.39
（VI）Other
980,179,980. 175,558,788. 136,466,388. 602,356,402. 3,385,297,545. 7,703,323,935.
IV. Balance at the end of this term 2,690,397,606.30 6,000,000.00
00 66 09 65 74 26
109
2023 Annual Report
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao
Person in charge of Accounting Institution: Lv Lin
110
2023 Annual Report
III．Basic Information of the Company
Hangzhou Turbine Power Group Co., Ltd. (Hereinafter referred to as "the Company") was incorporated as a
joint stock limited company exclusively promoted by Hangzhou Turbine Holdings Co., Ltd(Herein after
referred to as "Turbine Holdings") approved by the Securities Regulatory Commission of the State Council with
the Document SRC [1998] No. 8 by offering domestically listed foreign currency ordinary shares (B Shares),
with registration date: April 23, 1998, Headquartered in Hangzhou, Zhejiang Province. The company now holds
a unified social credit code for the 913300007042026204 business license, The Company’s registered capital is
RMB 1,175.4444 million with total capital share of 1,175.4444 million shares (face value RMB1.00). Among
which state-owned legal person shares were 748.526688 million shares and 426.917712 million shares of
current B shares. The shares were issued and listed for trading in Shenzhen Stock Exchange on April 28, 1998.
The design, manufacturing, Main Business Activities: R&D, Production and Sales of Industrial Steam Turbine.
These Financial Statements are released upon approval at the 6th meeting of the 9th term of Board held on April
28, 2024.
IV. Basis of compiling the financial statement
(1) Basis of compiling
The Company adopts perpetual operation as the basis of financial statements.
(2) Assessment on perpetuation
No issue or situation, in 12 months since the end of report period, composes major doubt on the perpetuation
assumption of the Company.
V. Principal Accounting Policies and Estimations
Principal Accounting Policies and Estimations
Important prompt: The Company utilized detailed accounting polices and estimations on providing of bad debt
provisions, fixed asset depreciation, intangible asset amortization, recognition of revenue, and so forth, according
to its business practices.
1. Statement of compliance to the Enterprise Accounting Standard
The finance report produced by the Company is accordance with the Enterprise Accounting Standard, and reflects
the Company’s financial state, business performance and cash flow frankly and completely.
2. Fiscal year
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
3. Operational period
The Company’s relatively shorter operational period, which is 12 months, and is used as division of liquidity of
assets and liabilities.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
5.Determination method and selection basis of importance standard
Applicable □Not applicable
111
2023 Annual Report
Items Criterion of importance
The Company identified the single project under construction with an
Material projects under construction amount of over 0.5% of the total assets as a significant project under
construction.
Non-wholly-owned subsidiaries whose total assets/revenues/profits
Material non-wholly-owned subsidiaries exceed 15% of the total assets/revenues/profits of the Group are
identified as material non-wholly-owned subsidiaries.
The Company will identify the commitments that have been signed and
have not been fully performed, with an amount of single contracts
Material commitments
exceeding 5% of the total assets or with special nature as material
commitments.
The Company regards the contingencies whose claim amount exceeds
Material contingencies 5% of the total profit or whose nature is special as material
contingencies.
The Company identifies the matters with a single impact amount
Material matters after the balance sheet date exceeding 5% of the total assets or with special nature as material matters
after the balance sheet date.
6. Accounting treatment of the entities under common control and different control
(1). Treatment of entities under common control
Assets and liabilities acquired in merger of entities are measured at book values at the date of merger. The
difference between the net book value of asset and the offered price (or total of face value of shares issued) will
be adjusted into capital reserves; when the capital reserves is not enough to reduce, it will be adjusted into
retained profit.
(2). Treatment of entities under different control
The difference of takeover cost over the fair value of recognizable net asset of the acquired entity is
recognized as goodwill at the day of takeover; in case the takeover cost is lower than the fair value of
recognizable net asset of the acquired entity, the measuring process over the recognizable asset, liabilities,
contingent liabilities, and takeover cost, shall be repeated, if comes out the same result, the difference shall be
be recorded into current income
7. Criteria for control and preparation method of consolidated financial statements
(1) Control judgment
Control refers to the power over the investee, the entitlement to variable returns by participating in the related
activities of the investee, and the ability to influence the variable return amount by using the power over the investee.
（2）Method for preparing the consolidated financial statements
The parent company puts all of its subsidiaries under its control into the consolidated financial statements. The
consolidated financial statements are prepared according to the “Enterprise Accounting Standard No. 33 –
Consolidated Financial Statements”, basing on the accounts of the parent company and the subsidiaries, and
after adjusting the long-term investment equity in the subsidiary on equity basis.
8. Joint venture arrangements classification and Co-operation accounting treatment
9. Recognition of cash and cash equivalents
Cash equivalent refers to the investment held by the Company with short term, strong liquidity and lower risk of
value fluctuation that is easy to be converted into cash of known amount.
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10. Foreign currency trade and translation of foreign currencies
Foreign currency trades are translated into RMB at the rate of the day when the trades are made. Those balances
of foreign currencies and monetary items in foreign currencies are accounted at the exchange rate of the balance
sheet date. Exchange differences, other than special loans satisfying the conditions of capitalization, are
accounted into current income account. Non-monetary items in foreign currencies and on historical cost are
translated at the rate of the trade day. Non-monetary items in foreign currencies and on fair value are translated
at the rate of the day when the fair value is recognized, where the differences are accounted as gain/loss from
change of fair value.
11.Financial instruments
(1) Classification of financial assets and financial liabilities
Financial assets are divided into the following three categories upon initial recognition: 1) Financial assets
measured in amortized cost; 2) Financial assets measured at fair value, whose changes are included in other
comprehensive income; 3) Financial assets measured at fair value, whose changes are included in current profits
and losses.
Financial liabilities are divided into the following four categories upon initial recognition: 1) Financial
liabilities measured at fair value, whose changes are included in current profits and losses; 2) Financial
liabilities resulting from the transfer of financial assets that do not meet the conditions for derecognition or
continue to be involved in the transferred financial assets; 3) Financial guarantee contracts that do not belong to
the above 1) or 2), and loan commitments that do not belong to the above 1) and lend at a lower than market
interest rate; 4) Financial liabilities measured in amortized cost.
(2) Recognition basis, measurement methods and conditions for derecognition of financial assets and
financial liabilities
However, if the accounts receivable initially recognized by the company do not contain significant
financing components or the company does not consider the financing components in the contract for less than
one year, the initial measurement shall be made according to the transaction price. The initial measurement is
made according to the transaction price defined in Accounting Standards for Business Enterprises No.14-
Income.
2) Subsequent measurement methods of financial assets
①Financial assets measured at amortized cost
The actual interest rate method is adopted for subsequent measurement according to amortized cost. Gains or
losses arising from financial assets measured in amortized cost that are not part of any hedging relationship are
included in current profits and losses when derecognition, reclassification, amortization according to the effective
interest rate method, or impairment recognition.
② Debt instruments investment measured at fair value, whose changes are included in other
comprehensive income
Fair value is adopted for subsequent measurement. Interest, impairment losses or gains and exchange gains
and losses calculated by the effective interest rate method are included in the current profits and losses, while
other gains or losses are included in other comprehensive income. Upon termination of recognition, the
accumulated gains or losses previously included in other comprehensive income shall be transferred out of other
comprehensive income and included in current profits and losses.
③ Equity instrument investments measured at fair value, whose changes are included in other
comprehensive income
Fair value is adopted for subsequent measurement. Dividends received (except those that belong to the part
of investment cost recovery) are included in current profits and losses, and other gains or losses are included in
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other comprehensive income. Upon termination of recognition, the accumulated gains or losses previously
included in other comprehensive income shall be transferred out of other comprehensive income and included in
retained income.
④ Financial assets measured at fair value and changes included in current profits and losses
The fair value is adopted for subsequent measurement, and the resulting gains or losses (including interest
and dividend income) are included in the current profits and losses unless the financial asset is part of the hedging
relationship.
(3) Subsequent measurement methods of financial liabilities
① Financial liabilities measured at fair value, whose changes are included in current profits and losses
Such financial liabilities include transactional financial liabilities (including derivatives of financial liabilities)
and financial liabilities designated to be measured at fair value, whose changes are included in current profits and
losses. Such financial liabilities are subsequently measured at fair value. Changes in the fair value of financial
liabilities designated to be measured at fair value, whose changes are included in the profits and losses of the
current period due to changes in the company's own credit risk are included in other comprehensive income,
unless such treatment will cause or expand accounting mismatch in profits and losses. Other gains or losses
arising from such financial liabilities (including interest expenses and changes in fair value except for changes in
the company's own credit risk) are included in the current profits and losses unless the financial liabilities are part
of the hedging relationship. Upon termination of recognition, the accumulated gains or losses previously included
in other comprehensive income shall be transferred out of other comprehensive income and included in retained
income.
② Financial liabilities resulting from the transfer of financial assets that do not meet the conditions for
derecognition or continue to be involved in the transferred financial assets
B. Financial assets have been transferred, and the transfer meets the provisions of the Accounting
Standards for Business Enterprises No.23-Transfer of Financial Assets on the derecognition of financial assets.
When the current obligation of a financial liability (or part thereof) has been discharged, the financial
liability (or part thereof) shall be derecognized accordingly.
(4) Recognition basis and measurement method of financial asset transfer
If the company has transferred almost all risks and rewards in the ownership of financial assets, it shall
terminate the recognition of the financial assets and separately recognize the rights and obligations arising from
or retained in the transfer as assets or liabilities; If almost all risks and rewards on the ownership of financial
assets are retained, the transferred financial assets shall continue to be recognized. If the company neither
transfers nor retains almost all risks and rewards in the ownership of the financial asset, the following situations
shall be handled respectively: 1) If the control over the financial asset is not retained, the recognition of the
financial asset shall be terminated, and the rights and obligations generated or retained in the transfer shall be
separately recognized as assets or liabilities; 2) If the control over the financial assets is retained, the relevant
financial assets shall be recognized according to the extent of continuing involvement in the transferred
financial assets, and the relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the
following two amounts shall be included in the current profits and losses: 1) The book value of the transferred
financial assets on the derecognition date; 2) The sum of the consideration received for the transfer of financial
assets and the amount of the corresponding derecognized portion of the accumulated amount of changes in fair
value originally directly included in other comprehensive income (the financial assets involved in the transfer
are debt instrument investments measured at fair value, whose changes are included in other comprehensive
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income). If a part of the financial asset is transferred and the transferred part meets the conditions for
derecognition as a whole, the book value of the financial asset before transfer shall be apportioned between the
derecognition part and the continuing recognition part according to their respective relative fair values on the
transfer date, and the difference between the following two amounts shall be included in the current profits and
losses: 1) The book value of the derecognition part; 2) The sum of the consideration of the derecognized portion
and the amount of the corresponding derecognized portion of the cumulative amount of changes in fair value
originally directly included in other comprehensive income (financial assets involved in transfer are debt
instrument investments measured at fair value, whose changes are included in other comprehensive income).
(5) Impairment of financial instruments
1) Impairment measurement and accounting treatment of financial instruments
On the basis of expected credit losses, the company carries out impairment treatment on financial assets
measured at amortized cost, debt instrument investments measured at fair value whose changes are included in
other comprehensive income, lease receivables, loan commitments other than financial liabilities classified as
financial liabilities measured at fair value, whose changes are included in current profits and losses, financial
liabilities not measured at fair value, whose changes are included in current profits and losses, or financial
guarantee contracts that are not financial asset transfers which do not meet the conditions for derecognition or
which continue to be involved in financial liabilities formed by transferred financial assets, and recognize loss
provisions.
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by
the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted
according to the original real interest rate and the expected cash flow of all contracts receivable according to the
contract, that is, the present value of all cash shortages. Among them, the Company discounts the financial
assets purchased or originated with credit impairment at the actual interest rate adjusted by credit.
For financial assets purchased or originated that have suffered credit impairment, the company will only
recognize the accumulated changes in expected credit losses during the entire duration since initial recognition
as loss reserves on the balance sheet date.
For accounts receivable that do not contain significant financing components or that the company does not
consider financing components in contracts of not more than one year, the company uses simplified
measurement methods to measure the loss reserve according to the expected credit loss amount equivalent to the
entire duration.
For lease receivables and receivables containing significant financing components, the company uses
simplified measurement methods to measure the loss reserve according to the expected credit loss amount
equivalent to the entire duration.
For financial assets other than the above measurement methods, the company evaluates whether its credit
risk has increased significantly since the initial recognition on each balance sheet date. If the credit risk has
increased significantly since the initial recognition, the company shall measure the loss reserve according to the
amount of expected credit loss during the whole duration. If the credit risk has not increased significantly since
the initial recognition, the company shall measure the loss reserve according to the expected credit loss amount
of the financial instrument within the next 12 months.
The company uses the available reasonable and reliable information, including forward-looking
information, to determine whether the credit risk of financial instruments has increased significantly since the
initial recognition by comparing the risk of default on the balance sheet date with the risk of default on the
initial recognition date.
The company evaluates expected credit risks and measures expected credit losses on the basis of individual
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financial instruments or combinations of financial instruments. When based on the combination of financial
instruments, the company divides financial instruments into different combinations based on common risk
characteristics.
For financial assets measured in amortized cost, the loss reserve shall be offset against the book value of the
financial assets listed in the balance sheet; For creditor's rights investments measured at fair value, whose changes
are included in other comprehensive income, the company recognizes its loss reserve in other comprehensive
income, which does not offset the book value of the financial asset.
(6) Setoff of Financial Assets and Liabilities
The financial assets and liabilities of the company are shown separately in the balance sheet which do not
offset each other. However, when the following conditions are met at the same time, the net amount after mutual
offset is shown on the balance sheet. 1. The company has the legal right to offset the recognized amount, and
this legal right is currently enforceable. 2. The company plans to settle the financial assets or liquidate the
financial liabilities at the same time for netting settlement.
If the transfer of financial assets does not meet the conditions for the termination of recognition, the
company shall not set off the transferred financial assets and related liabilities.
(7) Recognition standard and accrual method of expected credit loss of receivables and contract assets
1) Accounts receivable and contract assets with expected credit losses accrued according to the portfolio of
credit risk characteristics
Basis for determining Methods of measuring expected credit loss
Category combination
Bank acceptance bills
Refer to the historical credit loss experience, combine the current situation
receivable
and the forecast of the future economic situation, compile a comparison table
Bill type
Commercial between the aging of accounts receivable and the expected credit loss rate
acceptance bills during the whole duration, and calculate the expected credit loss.
receivable
Refer to the historical credit loss experience, combine the current situation
Account receivable— and the forecast of the future economic situation, compile a comparison table
Aging
—Aging combination between the aging of accounts receivable and the expected credit loss rate
during the whole duration, and calculate the expected credit loss.
Refer to the historical credit loss experience, combine the current situation
Account receivable— Related parties within the
and the forecast of the future economic situation, compile a comparison table
associated transaction scope of the consolidated
between the aging of accounts receivable and the expected credit loss rate
combinations financial statements
during the whole duration, and calculate the expected credit loss.
Refer to the historical credit loss experience, combine the current situation
Other receivable—— and the forecast of the future economic situation, compile a comparison table
Aging
Aging combination between the aging of accounts receivable and the expected credit loss rate
during the whole duration, and calculate the expected credit loss.
Refer to the historical credit loss experience, combine the current situation
Other receivable—— Related parties within the
with the forecast of future economic situation, and calculate the expected
associated transaction scope of the consolidated
credit loss through default risk exposure and the expected credit loss rate
combinations financial statements
within the next 12 months or the whole duration.
Refer to the historical credit loss experience, combine the current situation
Contract assets—— and the forecast of the future economic situation, compile a comparison table
Aging
Aging combination between the aging of accounts receivable and the expected credit loss rate
during the whole duration, and calculate the expected credit loss.
Refer to the historical credit loss experience, combine the current situation
Contract assets—— Related parties within the
with the forecast of future economic situation, and calculate the expected
associated transaction scope of the consolidated
credit loss through default risk exposure and the expected credit loss rate
combinations financial statements
within the next 12 months or the whole duration.
Long-term Refer to the historical credit loss experience, combine the current situation
receivable——aging Overdue time and the forecast of the future economic situation, compile a comparison table
combination between the aging of accounts receivable and the expected credit loss rate
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Basis for determining Methods of measuring expected credit loss
Category combination
during the whole duration, and calculate the expected credit loss.
2) Comparison table of aging and expected credit loss rate of aging portfolio
① Account receivable，Other receivable and Contract assets——Table of Aging of Aging Combination and
Expected Credit Loss Rate
Expected credit loss rate of Expected credit loss rate of Expected credit loss rate of
Aging
accounts receivable (%) other receivables (%) contract assets (%)
Within 1 year (inclusive,
5 5 5
the same below)
1-2 years 10 10 10
2-3 years 30 30 30
3-4 years 60 60 60
4-5 years 80 80 80
Over 5 years 100 100 100
The aging of accounts receivable/other receivables/contract assets shall be calculated from the month when the
payment actually occurs.
②The overdue aging of long-term receivables shall be calculated from the month when the payment is actually
overdue.
Expected credit loss rate of long-term
Overdue time
receivables (%)
Not overdue 5
Overdue within 1 year (inclusive, the same
10
below)
Overdue 1-2 years 30
Overdue 2-3 years 60
Overdue 3-4 years 80
Overdue for more than 4 years 100
The overdue time of long-term receivables shall be calculated from the month when the payment is actually
overdue.
3) Identification standard of accounts receivable and contract assets with expected credit loss accrued
individually
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For receivables and contract assets whose credit risk is significantly different from that of portfolio credit risk,
the Company shall accrue the expected credit loss individually.
12.Notes receivable
For details, please refer to Section X(5)-11 Financial instrument of this report.
13.Account receivable
For details, please refer to Section X(5)-11 Financial instrument of this report.
14. Financing of receivables
For details, please refer to Section X(5)-11 Financial instrument of this report.
15.Other account receivable
For details, please refer to Section X(5)-11 Financial instrument of this report.
16.Contract assets
According to the relationship between performance obligation and customer payment, the company lists
contract assets or contract liabilities in the balance sheet. The company will offset the contractual assets and
contractual liabilities under the same contract and list them in net amount.
The company lists the right to receive consideration from customers unconditionally (that is, only depending
on the passage of time) as receivables, and lists the right to receive consideration after transferring goods to
customers (which depends on factors other than the passage of time) as contract assets.
Recognition standard and accrual method of expected credit loss of receivables and contract assets: For details,
please refer to Section X(5)-11 Financial instrument of this report.
17.Inventories
(1) Inventory classification
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and
goods in manufacturing procedure or working procedure.
(2) Pricing of inventory to be delivered
The raw materials issued by u Zhongneng Company are priced by moving weighted mean method.
(3) Inventory system
Inventory system: perpetual inventory system
(4) Amortization of low-value consumables and packaging materials
1.Low price consumable
Basis of amortizing: one-off
2.Packaging materials
Basis of amortizing: one-off
（5）Pricing of inventory to be delivered
Pricing of inventory to be delivered
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At the balance sheet day, inventories are measured at the lower of costs and cashable net values, the individual
difference between the cashable net value and cost are provided as inventory impairment provision. For finished
product, merchandise, saleable material and other saleable merchandise inventory, their cashable net values are
recognized by their estimated sale price in normal operation deducting estimated sale expenses and related taxes;
for material inventory which need processing, it cashable net value are recognized by the estimated sale prices
of its finished products in normal operation deducting the estimated cost, sale expenses and related taxes due to
the end of processing; At the balance sheet day, for inventory item which part has contract price and part has no
contract price, the cashable net value is accounted separately, and recognize the inventory impairment provision
or returnable cash..
18.Held-for-sale asset
19.Creditor's rights investment
20.Other Creditor's rights investment
21.Long-term account receivable
22. Long-term equity investment
1. Recognition of common control and substantial influence
According to the contract, if the invested enterprise’s main finance and operation policy need to be agreed by the
other investing party, the investment is common control investment; if only have participating decision rights in
invested enterprise’s main finance and operation policy but have no own control or common control with other
investing part, the investment is investment with substantial influence.
2. Recognition of initial investment costs
(1) For the long-term equity investment formed by corporate merger under common control, if it is the long-term
equity investment obtained from the corporate merger by paying cash, transferring non-cash asset, bear liability
and issuing equity securities, the share of book value of owner's equity of the merged party on the merger date
shall be taken as the initial investment cost. The asset reserve is adjusted according to the difference between the
initial investment cost of long-term equity investment and the book value of paid combined consideration or
issued securities; if the capital is not enough for deduction, the remain earnings are adjusted.
Recognition of “one-off” trade when long-term equity investment is composed by merger of entities under
common control by multiple steps.
Transactions under an “one-off” trade are accounted as a common trade of ownership.
Transactions which are not “one-off” trades are recognized for their initial investment cost basing on the share of
book value of net asset in the consolidated financial statement of the entities acquired. Balance between the initial
investment cost and the book value of the long-term equity investment before merger and the premium paid for
the new shares after merger, is adjusted to capital reserves; when the capital reserve is not enough to offset,
retained profit shall be adjusted thereof.
(2) For the long-term equity investments formed by merger of enterprises under different control, the initial
investment cost is recognized by the fair value of combined consideration on purchasing day and related expenses.
Long-term equity investment formed by acquisition of entities under different control by trade in multiple stages
are accounted separately in the financial statements and consolidated financial statements.
1) In individual financial account, the sum of book value of original equity investment plus new investment cost is
recognized as the initial investment cost on cost basis.
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2) Recognition of “one-off” trade in consolidated financial statements
Transactions under an “one-off” trade are accounted as a common trade of ownership. Transactions which are not
“one-off” trades are re-measured for their fair value at the day of acquisition. Balance between the fair value and
the book value of the long-term equity investment is adjusted to current investment gains; other gains from equity
on equity basis before the acquisition day are written over to current gains of at the day of acquisition, but not the
gains from re-calculating of changes in net liability or asset by the invested entity.
(3) Formed by means other than entity merger:
Acquired by cash payment – initial investment cost is the actual amount of payment;
Acquired by issuing of equity certificates – initial investment cost is the fair value of equity certificate issued;
Acquired by debtor restructuring – initial cost recognized as according to the Enterprise Accounting Standard
No.12 – Debtor restructuring;
Acquired by trading of non-monetary asset - initial cost recognized as according to the Enterprise Accounting
Standard No.7 – Trade of non-monetary assets;
3. Subsequent measurement and recognition of gain/loss
Cost basis is adopted in accounting of long-term equity investment in entities under substantial control of the
Company; while equity basis is adopted in accounting of investment in affiliates and joint-ventures.
4. Treatment of disposal of subsidiaries by stages till losing of control power
(1) Individual account
The difference between the book value and the actual purchase price of the disposed equity is recorded into the
current profit and loss. With regard to the remaining equity, which still has a significant impact on the invested
entity or exercises joint control with other parties, it shall be converted to equity accounting; if the entity under
investment can no longer be controlled, jointly controlled or significantly affected, it shall be recognized as a
financial asset, Accounting shall be carried out in accordance with the relevant provisions of Accounting
Standards for Enterprises No. 22-recognition and Measurement of Financial Instruments.
(2) Basis of Consolidated Financial Statements
1) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and not recognized
as “one-off” trade:
Before losing of control power, the balance of disposal consideration and the share of net asset attributable to the
Company on continued basis since purchasing or merger, is adjusted to capital reserves (capital premium),
whereas if the capital premium is not enough to offset the amount, retained profit will be offset at corresponding
amount.
At losing of control power over a former subsidiary, the retained equity shares shall be re-calculated according to
the fair value at the day of losing power. Sum of the consideration obtained from disposal and fair value of the
retained equity shares, less the share of net asset attributable to the Company on continued basis since purchasing
or merger, is accounted into investment gains of the period when the control power is disposed, and goodwill shall
be offset meanwhile. Other gains related to the equities in formal subsidiary shall be written over to current
investment gains at the period when control power was disposed.
2) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and recognized as
“one-off” trade:
The multiple trades are treated as one trade that causes losing of control power on a subsidiary. However, the
balance between the consideration received from each trade and corresponding share of net asset is recognized as
other gains in the consolidated accounts, and transferred collectively to gain/loss account of the period in which
the control power was lost.
23. Investment property
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The measurement mode of investment property
Measurement cost method
Depreciation or amortization method
(1) Investment real estate includes leased land use rights, land use rights held and ready to be transferred
after appreciation, and leased buildings.
(2) Investment real estate is initially measured according to cost, followed by measurement by cost model,
and depreciated or amortized in the same way as fixed assets and intangible assets.
24. Fixed assets
1. Conditions for fixed asset recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life. Fixed assets are
recognized at satisfying of great possibility of benefit inflow and costs are accountable.
2. Depreciation
Annual depreciation
Categories Basis of depreciation Depreciation age (year) Retain value rate
ratio
Straight average on
Houses & buildings 30-40 4-5 3.20-2.38
period
Equipment & Straight average on
5-20 4-5 19.2-4.75
machinery period
Transportation Straight average on
5-12 4-5 19.2-7.92
equipment period
Straight average on
Office equipment 3-10 4-5 32-9.5
period
25. Construction in process
1. Construction in process is recognized on the basis of characteristics: very possible economic benefit flow in,
cost can be measured reliably. Since the date when the construction in process reaches its useful status as expected,
the construction in process is measured by the happened cost Since the date when the construction in process
reaches its useful status as expected.
2. When the construction in process reaches its useful status as expected, it is transferred into fixed asset at actual
cost. If the construction in process has reached useful status but with completion of project settlement process, it is
transferred to fixed asset at the value estimated, and adjustment will happen after completion of project settlement
process but no adjustment on depreciation provided previously.
Category Standard and time point for carrying forward construction in progress to fixed assets
Houses and buildings Reach the predetermined serviceable state or delivered for use at the time of acceptance
Machinery and equipment Meet the design requirements or standards stipulated in the contract after installation and debugging
Office equipment Meet the design requirements or standards stipulated in the contract after installation and debugging
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Category Standard and time point for carrying forward construction in progress to fixed assets
Software project Meet the design requirements or standards stipulated in the contract after acceptance
26. Loan expenses
1. Capitalizing of loan expenses
Loan expenses occurred in the Company, which can be categorized to purchasing or construction of assets
satisfying the conditions of capitalization, shall be capitalized and accounted into capital costs; while other loan
expenses are recognized as expenses and recorded into current income account.
2. Capitalization period of loan expenses
(1) Capitalization started as soon as all of these conditions are satisfied: 1) Capital expenditures have occurred; 2)
Loan expenses have occurred; 3) Necessary purchasing or construction processes have been started to make the
asset usable or sellable.
(2) If irregular interruption occurred in the purchasing or construction process of the assets satisfying the
capitalizing conditions, and suspended for over successive three months, capitalizing of loan expenses is
suspended; loan expenses occurred during the suspension period are recognized as current expenses until the
purchasing or construction process resumes.
(3) Capitalizing of loan expenses is terminated as soon as the asset satisfying the capitalizing conditions reaches
the state of usable or sellable as expected.
3. Rates and amounts of loan expense capitalization
Special loans raised for purchasing or construction of assets satisfying the conditions of capitalization, interest to
be capitalized will be the actual interest expenses occurred in the current period of loan (including the discount,
premium, or amortizing decided on actual interest rate basis), less the interest income from the unused loans in
bank account or provisional investment gains; common loans used for purchasing or construction of assets
satisfying the conditions of capitalization, the interest to be capitalized will be the weighted average of balance
over special loans multiply capitalization rate of common loans.
27. Biological assets
28. Oil-gas assets
29. Intangible assets
（1）Pricing Method, service life and impairment test
1. Intangible assets are land using rights, patents and proprietary technology , and non-patent technologies, which
are measured at cost basis.
2. For intangible assets with limited useful life, during the use life it is amortized according to the anticipating
implementation method of the economic benefit of the intangible asset systematically and reasonably. If can’t
recognize the anticipating implementation method, the straight basis is deployed.
Items Service life and its determination basis Amortization method
Land using right 50 years, number of years specified in the warrant Straight-line method
Patent and proprietary technology 5-20 years，estimated serviceable life Straight-line method
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Items Service life and its determination basis Amortization method
Non patent technology
10 years，estimated serviceable life Straight-line method
Software
3-10 years，estimated serviceable life Straight-line method
（2） Collection scope of R&D expenditure and related accounting treatment methods
1) Collection scope of R&D expenditure
Staff labor cost
①Staff labor cost
Staff labor costs include the salary, basic endowment insurance, basic medical insurance, unemployment
insurance, work-related injury insurance, maternity insurance and housing provident fund of the Company's
R&D staff, share payment granted by the company to R&D staff, and labor costs of external R&D staff.
If the R&D staff serve multiple R&D projects at the same time, the labor costs shall be recognized
according to the working hours records of R&D staff of each R&D project provided by the management
department of the Company, and distributed among different R&D projects in proportion.
If the staff directly engaged in R&D activities and the external R&D staff are engaged in non-R&D
activities at the same time, the Company will allocate the actual staff labor costs between R&D expenses and
production and operation expenses according to the working hours records of the R&D staff in different
positions and reasonable methods such as the proportion of actual working hours.
②Direct input cost
Direct input cost refers to the related expenditure actually incurred by the Company for implementing
R&D activities. Including: 1) Direct consumption of materials, fuel and power costs; 2) Development and
manufacturing expenses of molds, process equipment used for intermediate test and trial production of products,
purchase fees for samples, prototypes and general testing means that do not constitute fixed assets, and
inspection fees for trial-produced products; 3) Expenses for operation, maintenance, adjustment, inspection,
testing and maintenance of instruments and equipment used for R&D activities.
③ Depreciation expense
Depreciation expense refers to the depreciation expense of instruments, equipment and buildings in use for
R&D activities.
If instruments, equipment and buildings in use for R&D activities are used for non-R&D activities at the
same time, necessary records shall be made on the use of such instruments, equipment and buildings in use, and
the actual depreciation expenses shall be allocated between R&D expenses and production and operation
expenses by reasonable methods according to the actual working hours and use area.
④Amortization expense of intangible assets
Amortization expense of intangible assets refers to the amortization expense of software, intellectual
property and non-patented technology (proprietary technology, license, design and calculation method, etc.)
used for R&D activities.
⑤Design expense
Design expense refers to the expense incurred in conceiving, developing and manufacturing new products
and new processes, designing processes, technical specifications, procedures and operational characteristics,
including the related expenses incurred in creative design activities to obtain innovative, creative and
breakthrough products.
⑥Commissioned external R&D expense
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Commissioned external R&D expense refers to the expense incurred by the Company to commission other
institutions or individuals at home and abroad to carry out R&D activities (the results of R&D activities are
owned by the Company and closely related to the Company's main business).
⑦Other expenses
Other expenses refer to other expenses directly related to R&D activities besides the above expenses,
including technical books and materials fees, materials translation fees, expert consultation fees, high-tech R&D
insurance fees, R&D results retrieval, demonstration, evaluation, appraisal and acceptance fees, application fees,
registration fees and agency fees for intellectual property rights, conference fees, travel expenses,
communication fees, etc.
2) Expenditure of internal R&D projects in the research stage is included in the current profits and losses
when it occurs. Expenditure of internal R&D projects in the development stage is recognized as intangible
assets if it meets the following conditions at the same time: ① It is technically feasible to complete the
intangible assets so that they can be used or sold; ② It has the intention to complete the intangible assets and
use or sell them; ③ The ways in which intangible assets generate economic benefits, including the ability to
prove that there is a market for the products produced by using the intangible assets or for the intangible assets
themselves, and if the intangible assets will be used internally, the ability to prove their usefulness; ④ It has
sufficient technical, financial and other resources to support the development of the intangible assets, and has
the ability to use or sell the intangible assets; ⑤ Expenditure attributable to the development stage of the
intangible assets can be reliably measured.
30. Impairment of partial long-term assets
For those long-term assets such as equity investment, fixed assets measured on cost basis, construction-in-process,
intangible assets with limited service life, their recoverable amount shall be evaluated as soon as there was
evidence indicating impairment at the balance sheet day. For intangible assets such as goodwill from merger or
intangible assets with uncertain service lives, impairment test is performed each year whatever there is evidence
of impairment or not. Impairment test on goodwill is performed on combination of related assets.
When the result of prediction shows that the recoverable amount is lower than its book value, the balance shall be
provided impairment provision and accounted into current gain/loss.
31. Long-term amortizable expenses
32.Constract Liabilities
The Company presents contract assets or contractual liabilities in the balance sheet according to the
relationship between the fulfillment of performance obligations and customer payment. The Company will
offset the contract assets and contractual liabilities under the same contract and present them in net amount.
The Company presents the obligation to transfer goods to customers for consideration received or
receivable from customers as contractual liabilities.
33. Employees’ wage
1. Accounting of short-term wages
In the fiscal period when an employee is providing services, short-term wages actually occurred is recognized as
liability, and recorded into current gain/loss account or cost of related asset.
2.Accounting of stipulated beneficiary plan is on following steps:
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1) On basis of expected accumulation of welfare, estimations on population variables and financial variables,
calculating of liabilities from stipulated beneficiary plan, and recognition of the period of related liabilities, are
performed on basis of non-bias and accordance actuary. Meanwhile, discount is performed on the liabilities from
stipulated beneficiary plan to recognize the current value and service cost of the liabilities from the stipulated
beneficiary plan.
2) When there is asset involved in the stipulated beneficiary asset, the deficit or premium from the balance of the
current value of liabilities of stipulated beneficiary plan over their fair values is recognized as its net liability or
net asset. When there is a premium with a stipulated beneficiary plan, the lower one between the premium and the
upper limit of the asset is recognized as the net asset of such stipulated beneficiary asset;
3) At end of period, employees’ wages from stipulated beneficiary plan are recognized by three parts including
service cost, net interest of net liability or net asset, and recalculated net asset or liability variation. The first two
are recorded into current gain/loss or related asset cost, the third is recorded to other gains, which will not be
written back to gain/loss in successive fiscal periods, but the amount can be transferred with the range of equity.
3. Accounting of dismissing welfare
Welfares for employees who are dismissed, the earlier one of the following is recognized as employee wage
liability, and recorded to current gain /loss:
(1) When the Company cannot, on its own call only, retrieve the dismissing welfare provided by dismissing of
service plan or suggestion;
(2) When the costs or expenses related to restructuring involved in the dismissing welfare are recognized by the
Company.
4. Accounting of other long-term employees’ welfares
As of long-term welfares provided to the employees, those which satisfy conditions of the stipulated saving plan
are treated according to related regulations of stipulated saving plan; those which other than the aforesaid, are
treated according to the stipulated beneficiary plan. In viewing of simplifying accounting treatment, employee
wage costs are recognized as service costs, the net amounts of interests of other long-term welfare net liability
or asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related
asset.
34. Expected liabilities
(1) When it is very much likely to cause economic interests which can be reliably calculated outflow
from the company to fulfill the obligation which is due to giving security outside, contentious matter, quality
guarantee of products, onerous contract and other contingency, the company will regard the obligation as
anticipation liabilities.
(2) The company will make an initial measurement of anticipation liabilities according to needed expense
of best estimation when fulfilling related obligations and check the book value of anticipation liabilities on the
balance sheet date.
35.Share-based Payment
(1) Types of share-based payment
Including equity-settled share-based payment and cash-settled share-based payment.
(2) Accounting treatment related to implementation, modification and termination of share-based payment
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plan
1) Equity-settled share-based payment
Equity-settled share-based payment in exchange for employee services immediately after the grant, shall be
included in relevant costs or expenses according to the fair value of equity instruments on the grant date, and the
capital reserve shall be adjusted accordingly. For equity-settled share-based payment that can only be exchanged
for employee services if the service in the waiting period is completed or the specified performance conditions are
met, on each balance sheet date in the waiting period, based on the best estimation of the number of equity
instruments with the vesting right, the services obtained in the current period shall be included in relevant costs or
expenses according to the fair value of the equity instruments on the granting date, and the capital reserve shall be
adjusted accordingly.
Share-based payment for equity settlement of other parties' services, if the fair value of other parties'
services can be reliably measured, shall be measured according to the fair value of other parties' services on the
acquisition date; If the fair value of other parties' services cannot be measured reliably, but the fair value of equity
instruments can be measured reliably, it shall be measured according to the fair value of equity instruments on the
service acquisition date, and included in the related costs or expenses, and the owner's equity shall be increased
accordingly.
2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services immediately after the grant, shall be
included in relevant costs or expenses according to the fair value of liabilities borne by the Company on the grant
date, and liabilities shall be increased accordingly. For cash-settled share-based payment in exchange for
employee services only after the service in the waiting period is completed or the specified performance
conditions are met, on each balance sheet date in the waiting period, based on the best estimation of the situation
of the vesting right, the services obtained in the current period shall be included in the relevant costs or expenses
and corresponding liabilities according to the fair value of the liabilities assumed by the Company.
3) Modification and termination of the share-based payment plan
If the modification increases the fair value of the granted equity instruments, the Company shall
correspondingly recognize the increase of the obtained services according to the increase of the fair value of the
equity instruments; If the modification increases the number of equity instruments granted, the fair value of the
increased equity instruments will be recognized as the increase of services by the Company; If the Company
modifies the vesting conditions in a way that is beneficial to employees, the Company will consider the modified
vesting conditions when dealing with the vesting conditions.
If the modification reduces the fair value of the granted equity instruments, the Company will continue to
recognize the amount of services obtained based on the fair value of the equity instruments on the granting date,
without considering the reduction of the fair value of the equity instruments; If the modification reduces the
number of granted equity instruments, the Company will treat the reduced part as the cancellation of the granted
equity instruments; If the vesting conditions are modified in a way that is unfavorable to employees, the modified
vesting conditions will not be considered when dealing with the vesting conditions.
If the Company cancels the granted equity instruments or settles the granted equity instruments during the
waiting period (except those cancelled due to failure to meet the vesting right conditions), the cancellation or
settlement will be treated as accelerated vesting right, and the amount originally recognized during the remaining
waiting period will be immediately recognized.
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36 . Other financial instruments such as preferred shares and perpetual capital securities
37.Revenues
Accounting policies used for revenue recognition and measurement
1. Recognizing of revenue
Since the starting date of the contract, the company shall evaluate the contract, identifies each individual
performance obligation contained in, and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.
The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met, otherwise, it is defined as fulfilled at a certain point in time: (1) The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the
contract; 2) The customer can control the goods under manufacturing or services during the company's
performance; (3) The goods or services produced during the company's performance have irreplaceable uses,
and the company has the right to accumulate for the completed performances during the entire contract period.
For obligations performed within a certain period of time, the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined, and
the cost incurred is expected to be compensated, the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. For obligations performed at a
certain point in time, revenue shall be recognized at the point when the customer obtains control of the relevant
goods or services. When judging whether the customer has obtained control of the product, the company shall
consider the following points: (1) The company has the current right to receive payment for the product, that is,
the customer has the current payment obligation for the product; (2) The company has transferred the legal
ownership of the product to the customer, that is, the customer has the legal ownership of the product; (3) The
company has transferred the physical product to the customer, that is, the customer has physically taken
possession of the product; (4) The company has transferred the main risks and rewards on the ownership of the
product to the customer, that is, the customer has obtained the main risks and rewards on the ownership of the
product; (5) the customer has accepted the product; (6) other signs that the customer has obtained control of the
product.
2. Principle of income measurement
(1) The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers, while does not include payments
received on behalf of third parties and payments expected to be returned to customers.
(2) If there is variable consideration in the contract, the company shall determine its best estimate according
to the expected value or the most likely amount, but the transaction price including the variable consideration
shall not exceed the accumulated amount that, if relevant uncertainty is eliminated, will most likely have no
significant reversal.
(3) If there is any significant financing component in the contract, the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or
services. The difference between transaction price and contract consideration shall be amortized through
effective interest method during the contract period.
(4) If the contract contains two or more performance obligations, the company shall, on date of the
contract, allocate the transaction price to each individual obligation item in accordance with the relative
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proportion of the separate selling price of promised goods.
3. Specific methods of revenue recognition
1) Industrial steam turbine and other products sales business
The company's selling of steam turbines, gas turbine and complement or, spare parts shall belong to the
performance of obligation at a certain point in time.
Domestic sales revenue is recognized when the Company has delivered the product in accordance with the co
ntract and obtained the receipt confirmed by the purchaser, with received the payment or obtained the right to rece
ive payment and the relevant economic benefits are likely to flow in. Export sales revenue is recognized when the
Company has declared the product in accordance with the contract and obtained the export goods declaration form
and the bill of lading, with received the payment or obtained the right to receive payment and the relevant econo
mic benefits are likely to flow in.
2) Hydro-generator set sales business and engineering service business (including EPC and other general
contracting projects)
The Company's business of selling hydro-generator sets and providing engineering services are the
performance obligations performed within a certain period of time. The performance progress is determined
according to the proportion of the incurred cost to the estimated total cost, and the revenue is recognized
according to the performance progress. When the performance progress cannot be reasonably recognized, if the
cost already incurred by the Company is expected to be compensated, the revenue will be recognized according to
the cost amount already incurred until the performance progress can be reasonably recognized.
The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
Nil.
38.Contract cost
39. Government subsidy
1. Government subsidies are recognized while they meet the following conditions at the same time: (1) the
Company can meet the conditions attached to the government subsidies; (2) the Company can receive
government subsidies. Where government subsidies are monetary assets, they shall be measured by the amount
received or receivable. Where government subsidies are non-monetary assets, they shall be measured by the fair
value; if the fair value cannot be reliably obtained, they shall be measured by the nominal amount.
2. Recognition basis and accounting of asset-related government subsidy
Government subsidies used for formation of long-term assets through purchase, construction or any other
method as stipulated by government documents fall into the category of asset-related government subsidies. If
government subsidies are not defined in the government documents, a judgment shall be made on the ground of
essential conditions for obtaining the subsidies, among which, ones with an essential condition of formation of
long-term assets through purchase, construction or any other method shall be asset-related government subsidies.
For government subsidies related to assets, the book value of the relevant assets is deducted or the deferred
income is recognized. Where such subsidies are recognized as deferred income, the relevant assets shall, within
the useful life of the relevant assets, be reasonably recognized, The method of the system shall be recorded into
profit and loss by stages. The government subsidy measured according to the nominal amount shall be directly
accounted for in the profits and losses of the current period. Where the relevant assets are sold, transferred,
scrapped or damaged before the end of their useful life, Transfer the undistributed balance of deferred income to
the current profit or loss of asset disposal.
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3. Recognition basis and accounting of income-related government subsidy
A government subsidy other than an asset-related government subsidy is divided into profit-related government
subsidies. It is difficult to distinguish between asset-related and revenue-related government subsidies that include
both asset-related and revenue-related components. Overall classification as government subvention related to
income. Than asset-related subsidies are recognized as income-related government subsidies. Those, which are
used to cover costs or losses in subsequent periods, are recognized as deferred income and accounted to current
gain/loss to the periods of related expenses. Those, which are used to makeup expenses or losses already occurred,
are recorded to current gain/loss account.
4. Government subsidies related to routine business activities of the Company shall be included into other
incomes or offset relevant costs and expenses by nature of economic business. Government subsidies irrelevant
to routine activities of the Company shall be included into the non-operating receipt and disbursement.
5. Accounting treatment method for interest subsidies for policy-based preferential loans
(1) If the finance allocates interest subsidy funds to a lending banks that serves a loan to the Company at a
policy-based preferential rate, the actual debit amount received shall be seen as the entry value of loan and
relevant loan costs shall be worked out pursuant to the loan principal and the policy-based preferential rate.
(2) If the finance directly allocates interest subsidy funds to the Company, corresponding interest subsidies
shall offset relevant loan costs.
40. Deferred income tax assets/ deferred income tax liabilities
1. Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or
paying the liabilities according to difference (for not recognized assets and liabilities which tax basis can be
recognized, the difference is between the tax basis and the book value) between book value of the assets or
liabilities and the tax basis.
2. Deferred income tax assets are recognized limitedly by the income tax which very possibly deduct deductible
temporary difference. At balance sheet day, the not-yet recognized deferred income tax assets in previous fiscal
term are recognized if have evidence to prove there is enough income tax very possibly to deduct deductible
temporary difference.
3. At the balance sheet day, verification will be performed on the book value of differed income tax assets. If it is
not possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the book
value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible,
the reduced amount shall be restored.
4. Current income tax and differed income tax are accounted into current gain/loss account as income tax
expenditures or gains, but exclude the following income taxes: (1) Merger of enterprises; (2) Transactions or
events recognized directly in owners’ equity.
（5）When the following conditions are met at the same time, the Company presents the deferred income
tax assets and deferred income tax liabilities as the offset net amount: 1) When the taxpayer has the legal right
to settle the current income tax assets and liabilities on a net basis; 2) Deferred income tax assets and deferred
income tax liabilities are related to the income tax levied by the same tax collection department on the same
taxpayer or to different taxpayers, but in the future, during the period when each important deferred income tax
asset and deferred income tax liability are reversed, the taxpayers involved intend to settle the current income
tax assets and current income tax liabilities on a net basis or acquire assets and pay off debts at the same time.
41. Lease
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（1） Accounting treatment method for leasing as a lessee
On the start date of the lease term, the company will recognize the lease with a lease term of no more than 12
months and without the purchase option as a short-term lease; and recognize the lease with lower value when a
single leased asset is a brand-new asset as a low-value asset lease. If the company subleases or expects to sublet
the leased assets, the original lease shall not be deemed as low-value asset lease.
For all short-term leases and low-value asset leases, the company will calculate the lease payment amount
into the relevant asset cost or current profits and losses according to the straight-line method in each period of the
lease term.
In addition to the above-mentioned short-term leases and low-value asset leases with simplified processing,
the company recognizes the right to use assets and lease liabilities for leases on the start date of the lease term.
① Right-to-use assets
The right-to-use assets are initially measured according to the cost, which includes: i. The initial
measurement amount of lease liabilities; ii. If there is lease incentive for the lease payment issued on or before the
start date of the lease term, the amount related to the lease incentive enjoyed shall be deducted; ⅲ. Initial direct
expenses incurred by the lessee; iv. The estimated costs that the lessee will incur for dismantling and removing the
leased assets, restoring the leased assets' site or restoring the leased assets to the state agreed in the lease terms.
The company depreciates the right-to-use assets according to the straight-line method. If it can be reasonably
determined that the ownership of the leased asset is acquired at the expiration of the lease term, the company shall
accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine
that the ownership of the leased asset can be acquired at the expiration of the lease term, the company shall accrue
depreciation within the shorter of the lease term and the remaining service life of the leased asset.
② Lease liabilities
On the lease start date, the company recognizes the present value of the unpaid lease payment as the lease
liability. When calculating the present value of the lease payment amount, the lease inclusive interest rate is used
as the discount rate. If the lease inclusive interest rate cannot be determined, the company's incremental loan
interest rate is used as the discount rate. The difference between the lease payment amount and its present value is
considered as unrecognized financing expense, and the interest expense is recognized according to the discount
rate for recognizing the present value of the lease payment amount in each period of the lease term, which is
included in the current profits and losses. The variable lease payments that are not included in the measurement of
lease liabilities are included in the current profits and losses when they actually occur.
After the start of the lease term, when the actual fixed payment amount changes, the estimated payable
amount of the guarantee residual value changes, the index or ratio used to determine the lease payment amount
changes, and the evaluation result or actual exercise situation of the purchase option, renewal option or
termination option changes, the company will re-measure the lease liability according to the present value of the
changed lease payment amount, and adjust the book value of the right-to-use assets accordingly. If the book value
of the right-to-use assets has been reduced to zero, but the lease liability still needs to be further reduced, the
remaining amount will be included in the current profits and losses.
（2） Accounting treatment method for leasing as a lessor
On the lease start date, the company classifies the lease with almost all risks and rewards related to the
ownership of leased assets transferred as financial lease, and all other leases as operating leases.
① Operating lease
During each period of the lease term, the company recognizes the lease receipts as lease income according to
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the straight-line method, and the initial direct expenses incurred are capitalized and allocated on the same basis as
the lease income recognition, and are included in the current profits and losses by stages. The variable lease
payments related to operating leases that are not included in the lease receipts obtained by the company are
included in the current profits and losses when they actually occur.
② Financing lease
On the start date of the lease term, the company recognizes the receivable financing lease payments
according to the net lease investment (the sum of the unsecured residual value and the present value of the lease
receipts that have not been received at the start date of the lease term), and derecognizes the financing lease assets.
During each period of the lease term, the company calculates and recognizes the interest income according to the
interest rate included in the lease.
The variable lease payments obtained by the company that are not included in the measurement of net lease
investment are recorded into the current profits and losses when they actually occur.
3) After-sale leaseback
① Company as the Lessee
According to the Accounting Standards for Business Enterprises No.14-Income, the company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction is a sale.
If the asset transfer in the after-sale leaseback transaction is a sale, the company shall measure the right-to-
use assets formed by the after-sale leaseback according to the part of the book value of the original assets related
to the right-to-use acquired by leaseback, and only recognize the related gains or losses for the rights transferred
to the lessor.
If the asset transfer in the after-sale leaseback transaction is not a sale, the company will continue to
recognize the transferred asset, and at the same time recognize a financial liability equal to the transfer income,
and conduct accounting treatment on the financial liability in accordance with Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
② Company as the Lessor
According to the Accounting Standards for Business Enterprises No.14-Income, the company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction is a sale.
If the asset transfer in the after-sale leaseback transaction is a sale, the company shall conduct accounting
treatment on asset purchase according to other applicable accounting standards for enterprises, and conduct
accounting treatment on asset lease according to Accounting Standards for Enterprises No.21-Lease.
If the asset transfer in the after-sale leaseback transaction is not a sale, the company will not recognize the
transferred asset, but recognize a financial asset equal to the transfer income, and conduct accounting treatment on
the financial asset in accordance with Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments.
42. Other significant accounting policies and estimates
(1)Work safety costs
The Company withdraws and includes work safety costs into relevant product costs or current profits and loss and
the subject of "special reserve" as per Measures for Management of Enterprise Withdrawal and Use of Work
Safety Costs (Cai Qi [2022] No.136) jointly promulgated by Ministry of Finance and State Administration of
Work Safety. As work safety costs withdrawn are used, ones attributable to the cost disbursement shall directly
offset special reserve. To form fixed assets, the disbursement incurred for inclusion into the subject of
"construction in progress" shall be recognized as fixed assets when safety projects are completed and available for
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use as expected; meanwhile, costs for forming fixed assets shall offset special reserve, cumulative depreciation in
the corresponding amount shall be recognized and depreciation shall no longer be withdrawn for the fixed assets
in the following period.
（2）Accounting treatment methods related to repurchase of company shares
If the shares of the Company are acquired for reasons such as reducing the registered capital or rewarding
employees, they shall be treated as treasury shares according to the actual amount paid, and registered for future
reference. If the repurchased shares are cancelled, the difference between the total face value of the shares
calculated according to the face value of the cancelled shares and the number of cancelled shares and the amount
actually paid for the repurchase will be offset against the capital reserve; if the capital reserve is insufficient for
offset, the retained earnings will be offset; If rewarding of the repurchased shares to the employees of the
Company is equity-settled share-based payment, when the employees exercise their right to purchase the shares of
the Company and receive the price, the cost of the treasury stocks delivered to the employees and the accumulated
amount of capital reserves (other capital reserves) during the waiting period will be written off, and meanwhile,
the capital reserves (equity premium) will be adjusted according to such difference.
（2）Accounting treatment methods related to repurchase of company shares
If the shares of the Company are acquired for reasons such as reducing the registered capital or rewarding
employees, they shall be treated as treasury shares according to the actual amount paid, and registered for future
reference. If the repurchased shares are cancelled, the difference between the total face value of the shares
calculated according to the face value of the cancelled shares and the number of cancelled shares and the amount
actually paid for the repurchase will be offset against the capital reserve; if the capital reserve is insufficient for
offset, the retained earnings will be offset; If rewarding of the repurchased shares to the employees of the
Company is equity-settled share-based payment, when the employees exercise their right to purchase the shares of
the Company and receive the price, the cost of the treasury stocks delivered to the employees and the accumulated
amount of capital reserves (other capital reserves) during the waiting period will be written off, and meanwhile,
the capital reserves (equity premium) will be adjusted according to such difference.
43.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □ Not applicable
Since January 1, 2023, the Company has implemented the provisions of the Interpretation No.16 of
Accounting Standards for Business Enterprises on "Accounting Treatment for Deferred Income Tax Related to
Assets and Liabilities Arising from Individual Transactions", which was promulgated by the Ministry of
Finance. This accounting policy change has no significant impact on the Company's financial statements.
(2) Change of main accounting estimations
□ Applicable √ Not applicable
（3） The Company started implementing the updated accounting standards commencing from 2023
and adjusted the relevant items in the financial statements at the beginning of the very year involved in
the initial implementation of the said standards
□Applicable Not applicable
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44.Other
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
The output tax is calculated on the basis
of the income from sales of goods and 13%，9%，6%；The policy of
taxable services calculated according to
"exemption, credit and refund" is
VAT the provisions of the tax law. After
deducting the input tax allowed to be implemented, and the tax rebate rate is
deducted in the current period, the 13%
difference is the VAT payable
For those on price basis, taxes are paid at
1.2% of the balance of original value of
House tax the property after deducting of 30%; for 1.2%，12%
those on rental basis, taxes are paid at
12% of the rental.
City maintenance and construction tax Turnover tax payable 7%，5%
Educational surcharge Turnover tax payable 3%
Local education additional Turnover tax payable 2%
Enterprise income tax Amount of income taxable 15%，25%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company, Guoneng Company, Huayuan Company, Zhongneng Company, Hangfa
15%
Company, Casting Company and Western Power Company
Other Subsidiary（Domestic） 25%
2. Preferential tax
(1) According to the High-tech Enterprise Certificate (certificate numbers are GR202333006671,
GR202333011986, GR202333008372, GR202333012099 and GR202333012799 respectively, valid for three years)
issued by Department of Science and Technology of Zhejiang Province, Zhejiang Provincial Department of Finance
and Zhejiang Provincial Tax Service, State Taxation Administration on December 8, 2023, the Company and its
subsidiaries Guoneng Company, Huayuan Company, Zhongneng Company and Hangfa Company enjoy preferential
income tax for high-tech enterprises, so the enterprise income tax in 2023 was calculated and paid at a reduced rate of
15%.
(2)According to the "High-tech Enterprise Certificate" (Certificate number: GR202233002954, validity: three
years) issued by the Zhejiang Provincial Department of Science and Technology, the Zhejiang Provincial
Department of Finance and the Zhejiang Provincial Taxation Bureau of the State Administration of Taxation on
December 24, 2022, the subsidiary casting company enjoys high-tech enterprise income tax incentives, thus the
enterprise income tax in 2023 shall be reduced to be 15%.
(3) According to the High-tech Enterprise Certificate (Certificate No.: GR202251003392, valid for three years)
issued by Sichuan Provincial Department of Science and Technology, Sichuan Provincial Department of
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Finance and Sichuan Provincial Tax Service, State Taxation Administration on December 2, 2022, the
subsidiary Western Power is entitled to the preferential income tax for high-tech enterprises, so the enterprise
income tax in 2023 will be calculated and charged at a reduced rate of 15%.
（4）According to the Announcement on the Policy of Adding and Deducting VAT for Advanced
Manufacturing Enterprises (Announcement No.43 of the Ministry of Finance and the State Taxation
Administration in 2023), the Company and its subsidiaries Guoneng Company, Huayuan Company, Zhongneng
Company, Hangfa Company, Casting & Forging Company and Western Power Company, as advanced
manufacturing enterprises, add 5% of the deductible input tax for the current period to offset the payable VAT
tax.
3.Other
VII. Notes to the Consolidated Financial Statements
1.Monetary funds
In RMB
Items End of term Beginning of term
Cash in stock 14,634.65 107,551.80
Bank deposit 2,661,596,779.47 1,852,884,189.83
Other monetary fund 136,556,715.38 101,989,046.27
Other 2,798,168,129.50 1,954,980,787.90
Other note：
① The ending bank margin includes the restricted ETC deposit of RMB 43,000.00.
② Other ending monetary funds include RMB 130,198,606.73 of bank acceptance bills with restricted use,
RMB 5,666,941.75 of L/G margin, RMB 643,000.00 of foreign exchange transactions, RMB 24,783.25 of
convertible bonds with unrestricted use, and RMB 5,785.10 of balance in special account for treasury share
repurchase, RMB 12,644.95 of interest on the deposit that can be transferred at any time and RMB 4,953.60 of
deposit balance on the third-party payment platform.
2. Transactional financial assets
In RMB
Items End of term Beginning of term
Financial assets measured at fair value through profit or loss 568,887,484.10 607,001,143.44
Of which ：
Structure deposit 536,200,000.00 375,000,000.00
Financing product 30,002,021.25 230,002,406.26
Stock 1,960,706.24 1,998,737.18
Derivative financial assets 724,756.61
Of which：
Total 568,887,484.10 607,001,143.44
134
2023 Annual Report
3. Derivative financial assets
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
Bank acceptance bill 100,000.00 42,622,891.99
Trade acceptance bill 84,888,677.11 52,990,035.27
Total 84,988,677.11 95,612,927.26
（2） According to the bad debt provision method classification disclosure
In RMB
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Of which：
Accrual of bad debt
98,592,371.66 100.00% 13,603,694.55 13.80% 84,988,677.11 106,144,380.06 100.00% 10,531,452.80 9.92% 95,612,927.26
provision by portfolio
Of which：
Bank acceptance 100,000.00 0.10% 100,000.00 42,622,891.99 40.16% 42,622,891.99
Commercial
98,492,371.66 99.90% 13,603,694.55 13.81% 84,888,677.11 63,521,488.07 59.84% 10,531,452.80 16.58% 52,990,035.27
acceptance
Total 98,592,371.66 100.00% 13,603,694.55 13.80% 84,988,677.11 106,144,380.06 100.00% 10,531,452.80 9.92% 95,612,927.26
Accrual of bad debt provision by portfolio:13,603,694.55
135
2023 Annual Report
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion
Bank acceptance bill 100,000.00
Trade acceptance bill 98,492,371.66 13,603,694.55 13.80%
Total 98,592,371.66 13,603,694.55
136
2023 Annual Report
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Accrual of bad debt
provision by single
Accrual of bad debt
10,531,452.80 3,072,241.75 13,603,694.55
provision by portfolio
Total 10,531,452.80 3,072,241.75 13,603,694.55
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（4）Notes receivable pledged by the company at the end of the period
（5）Accounts receivable financing endorsed or discounted by the Company at the end of the period and
not expired yet on the date of balance sheet
In RMB
Amount derecognized at the end of the Amount not yet derecognized at the end
Items
period of the period
Commercial acceptance 89,703,453.14
Total 89,703,453.14
（6） The actual write-off accounts receivable
5. Accounts receivable
（1）Disclosure according to the aging
In RMB
Aging Balance in year-end Balance Year-beginning
Within one year(one year included) 1,387,446,232.83 1,088,113,527.42
1-2 years 636,601,795.91 539,252,217.59
2-3 years 357,688,203.87 409,886,653.36
Over 3 years 751,198,423.19 877,380,758.74
3-4 years 214,302,960.22 223,768,796.98
4-5 years 94,111,763.66 146,081,720.26
Over 5 years 442,783,699.31 507,530,241.50
Total 3,132,934,655.80 2,914,633,157.11
137
2023 Annual Report
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Category
Amount Proportion(% Amount Proportion(% Amount Proportion(% Amount Proportion(%
) ) ) )
Accrual of
bad debt
74,459,027.13 2.38% 74,459,027.13 100.00% 74,459,027.13 2.55% 74,459,027.13 100.00%
provision
by single
Including
：
Accrual of
bad debt 3,058,475,628.6 816,333,687.7 2,242,141,940.9 2,840,174,129.9 915,494,762.9 1,924,679,367.0
97.62% 26.69% 97.45% 32.23%
provision 7 3 4 8 0 8
by portfolio
Including
：
3,132,934,655.8 890,792,714.8 2,242,141,940.9 989,953,790.0 1,924,679,367.0
Total 100.00% 28.43% 2,914,633,157.11 100.00% 33.96%
0 6 4 3 8
. Bad debt provision accrual on single basis:74,459,027.13
In RMB
Opening balance Ending balance
Name Reason for
Book balance Bad debt provision Book balance Bad debt provision Accrual ratio
accrual
Accrual of bad debt provision by Not expected to
74,459,027.13 74,459,027.13 74,459,027.13 74,459,027.13 100.00%
single be recovered
Total 74,459,027.13 74,459,027.13 74,459,027.13 74,459,027.13
Accrual of bad debt provision by portfolio:816,333,687.73
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion
Accrual of bad debt provision by
3,058,475,628.67 816,333,687.73 26.69%
portfolio
138
2023 Annual Report
Total 3,058,475,628.67 816,333,687.73
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other receivables if the provision for bad debts of
bills receivable is accrued according to the general model of expected credit loss:
□ Applicable √ Not applicable
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2023 Annual Report
(3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period Closing
Opening
Category Reversed or balance
balance Accrual Write-off Other(Note)
collected amount
Accrual of bad debt
74,459,027.13 74,459,027.13
provision by single
Accrual of bad debt
- -
provision by 915,494,762.90 1,801,585.61 2,363,044.45 816,333,687.73
95,856,001.19 2,743,615.14
portfolio
- -
Total 989,953,790.03 1,801,585.61 2,363,044.45 890,792,714.86
95,856,001.19 2,743,615.14
[Note] Other changes are due to the impact of changes in the scope of consolidation, which transferred in
the bad debt provision of 1,587,469.01 yuan of Western Power Company and transferred out the bad debt
provision of 4,331,084.15 yuan of the sales company
(4) The actual write-off accounts receivable
In RMB
Items Amount
The actual write-off accounts receivable 2,363,044.45
（5）The top five accounts receivable and contract assets at the end of the period aggregated according
to debtor
In RMB
Ending balance of
Proportion to the
accounts
Ending balance of total ending
Ending balance of receivable bad
Name of the Ending balance of accounts balance of
accounts debt provision and
organization contract assets receivable and accounts
receivable contract asset
contract assets receivable and
impairment
contract assets
provision
Unit 1 745,450,707.70 91,589,569.51 837,040,277.21 21.83% 169,887,263.74
Unit 2 173,557,640.13 8,009,500.00 181,567,140.13 4.74% 87,459,387.66
Unit 3 99,978,988.32 9,659,200.00 109,638,188.32 2.86% 9,370,431.11
Unit 4 83,198,787.82 24,986,900.00 108,185,687.82 2.82% 10,757,951.09
Unit 5 77,705,000.00 12,897,500.00 90,602,500.00 2.36% 5,646,625.00
Total 1,179,891,123.97 147,142,669.51 1,327,033,793.48 34.61% 283,121,658.60
6. Contract assets
(1) Information of contract assets
In RMB
Ending balance Opening balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
140
2023 Annual Report
Warranty receivable 618,709,463.82 47,801,589.69 570,907,874.13 577,093,698.74 44,818,828.73 532,274,870.01
Construction contract
82,583,691.03 13,105,005.63 69,478,685.40 63,333,343.14 7,888,477.69 55,444,865.45
forms assets
Total 701,293,154.85 60,906,595.32 640,386,559.53 640,427,041.88 52,707,306.42 587,719,735.46
(2) The significant amount change in book value during the reporting period and its reason
（3） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision Book
Category value value
Amount Proporti Amount Proporti Amount Proporti Amount Proporti
on(%) on(%) on(%) on(%)
Including：
Accrual of
bad debt 701,293, 60,906,5 640,386, 640,427, 52,707,3 587,719,
100.00% 8.68% 100.00% 8.23%
provision by 154.85 95.32 559.53 041.88 06.42 735.46
portfolio
Including：
701,293, 60,906,5 640,386, 640,427, 52,707,3 587,719,
Total 100.00% 8.68% 100.00% 8.23%
154.85 95.32 559.53 041.88 06.42 735.46
Provision for bad debts is made according to the general model of expected credit losses
□Applicable Not applicable
(4) Bad debt provision accrual, collected or reversal in the period
In RMB
Items Accrual Collected or reversal Other(Note) Reason
Accrual of bad debt
provision by single
Accrual of bad debt
8,201,559.89 8,201,559.89 -2,270.99 60,906,595.32
provision by portfolio
Total 8,201,559.89 8,201,559.89 -2,270.99 ——
Thereinto, the important amount of bad debt provision recovered or reversed in the current period:
Other notes: [Note] Other changes are due to the impact of the transfer of RMB 86,354.01 to the impairment
provision of Western Power Company and the transfer of RMB 88,625.00 to the impairment provision of the
Sales Company caused by the changes in the scope of consolidation.
（5） Contract assets actually written off in the current period
7. Receivable financing
（1） Classification of receivables financing
InRMB
Items End of term Beginning of term
Bank acceptance 756,873,166.56 817,555,768.45
Total 756,873,166.56 817,555,768.45
141
2023 Annual Report
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Inducing
Accrual
of bad
debt 756,873, 756,873, 817,555, 817,555,
100.00% 100.00%
provisio 166.56 166.56 768.45 768.45
n by
portfolio
Inducing
Bank
756,873, 756,873, 817,555, 817,555,
acceptan 100.00% 100.00%
ce 166.56 166.56 768.45 768.45
756,873, 756,873, 817,555, 817,555,
Total 100.00% 100.00%
166.56 166.56 768.45 768.45
（3） Bad debt provision accrual, collected or reversal in the period
（4）Financing of accounts receivable pledged by the Company at the end of the period
In RMB
Items Pledged amount at the end of the period
Bank acceptance 60,417,669.80
Total 60,417,669.80
（5）Financing of accounts receivable that have been endorsed or discounted by the Company at the end
of the period and have not yet matured on the balance sheet date
In RMB
The amount of derecognition at the end The amount not derecognized at the end
Item
of the period of the period
Bank acceptance 968,575,557.45
Total 968,575,557.45
The acceptor of the bank acceptance bill is a commercial bank, because the commercial bank has high
credit, the possibility of the bank acceptance bill not being paid at maturity is low, so the company has endorsed
or discounted the bank acceptance bill to terminate the confirmation. However, if the bill is not paid at maturity,
the company shall remain jointly and severally liable to the holder under the provisions of the bill act.
（6） Financing situation of accounts receivable actually written off in this period
The write off information of important accounts receivable financing thereinto
(7) Changes in accounts receivable financing and fair value changes in the current period
142
2023 Annual Report
（8）Other note
8. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 43,018,211.13 25,366,963.26
Total 43,018,211.13 25,366,963.26
(1) Interest receivable
1) Category
2) Important overdue interest
3) Accrual of bad debt provision
□Applicable Not applicable
4） Bad debt provision accrual, collected or reversal in the period
5)Interest receivable actually written off in the current period
(2) Dividend receivable
1) Category
2) Important dividend receivable with over one year aged
3) Accrual of bad debt provision
□Applicable Not applicable
4） Bad debt provision accrual, collected or reversal in the period
5) Dividends receivable actually written off in the current period
(3) Account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Deposit 41,244,042.62 27,489,135.94
Compensation for demolition and
8,793,600.00
removal receivable
Receivable temporary payment 1,634,278.25 4,142,897.09
Export tax rebate receivable 808,119.86 285,444.13
Petty cash 371,299.95 255,434.00
143
2023 Annual Report
Other 1,269,912.97 1,826,705.64
Equity transfer payment receivable 4,120,000.00
Total 54,121,253.65 38,119,616.80
2）Disclosure by aging
144
2023 Annual Report
In RMB
Aging Ending book balance Opening book balance
Within one year(one year included) 37,790,424.24 18,018,097.76
1-2 years 3,889,545.20 4,022,812.16
2-3 years 3,192,464.33 6,456,053.57
Over 3 years 9,248,819.88 9,622,653.31
3-4 years 3,368,228.57 173,504.87
4-5 years 173,504.87 203,000.00
Over 5 years 5,707,086.44 9,246,148.44
Total 54,121,253.65 38,119,616.80
3） According to the bad debt provision method classification disclosure
Applicable □Not applicable
In RMB
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Inducing
Accrual of bad
debt provision by 54,121,253.65 100.00% 11,103,042.52 20.52% 43,018,211.13 38,119,616.80 100.00% 12,752,653.54 33.45% 25,366,963.26
portfolio
Inducing
Total 54,121,253.65 100.00% 11,103,042.52 20.52% 43,018,211.13 38,119,616.80 100.00% 12,752,653.54 33.45% 25,366,963.26
The withdrawal amount of the bad debt provision：11,103,042.52
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Aging portfolio 54,121,253.65 11,103,042.52 20.52%
Including：Within 1 year 37,790,424.24 1,889,521.22 5.00%
1-2 years 3,889,545.20 388,954.52 10.00%
2-3 years 3,192,464.33 957,739.30 30.00%
3-4 years 3,368,228.57 2,020,937.14 60.00%
145
2023 Annual Report
4-5 years 173,504.87 138,803.90 80.00%
Over 5 years 5,707,086.44 5,707,086.44 100.00%
Total 计 54,121,253.65 11,103,042.52
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Bad debt provision Expected credit losses over Expected credit losses for the entire duration Expected credit losses for the entire duration (with Total
next 12 months (without credit impairment occurred) credit impairment occurred)
Balance on January 1,
900,904.89 402,281.22 11,449,467.43 12,752,653.54
2023
January 1, 2023 balance
in the current period
--Transfer to the second
-194,477.26 194,477.26
stage
-- Transfer to the third
-319,246.44 319,246.44
stage
Provision in Current Year 1,092,966.95 102,862.48 -2,893,090.09 -1,697,260.66
Write off in Current Year 247,337.00 247,337.00
Other change(Note) 90,126.64 8,580.00 196,280.00 294,986.64
Balance on December
1,889,521.22 388,954.52 8,824,566.78 11,103,042.52
31, 2023
[Note] Other changes are due to the impact of changes in the scope of consolidation, which transferred in the bad debt provision of 404,762.11 yuan of Western
Power Company and transferred out the bad debt provision of 109,775.47 yuan of the sales company
The basis for the division of each stage and the proportion of bad debt provision
Basis for dividing each stage: those with an age of less than 1 year are divided into the first stage, those with an age of 1-2 years are divided into the second
stage, and those with an age of more than 2 years are divided into the third stage.
Phase I Phase II Phase III
Bad debt provision Expected credit losses for the entire Expected credit losses for the Total
Expected credit losses over next
duration (without credit impairment entire duration (with credit
12 months
occurred) impairment occurred)
146
2023 Annual Report
Ending balance 1,889,521.22 388,954.52 8,824,566.78 11,103,042.52
End of the proportion of provision for
5.00 10.00 70.93 20.52
bad debts（%）
Loss provision changes in current period, change in book balance with significant amount
□Applicable √ Not applicable
147
2023 Annual Report
4）Other Accounts receivable withdraw, reversed or collected during the reporting period
5） The actual write-off accounts receivable
In RMB
Items Amount
The actual write-off accounts receivable 247,337.00
6） Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable
Hangzhou East
Bay New City Compensation for
Development and demolition and 8,793,600.00 Within 1 year 16.25% 439,680.00
Construction removal receivable
Headquarters
Capital Airport Cu
stoms of the Peopl
Deposit 7,597,789.67 Within 1 year 14.04% 379,889.48
e's Republic of Chi
na
Alashankou
Custorms, The
Deposit 6,252,867.25 Within 1 year 11.55% 312,643.36
People\s Republic
of China
Shanghai Customs
Deposit 3,710,320.94 Over 5 years 6.86% 3,710,320.94
Waigaoqiao Office
Fuding City
Guanxi Cross-
basin Water
Deposit 2,300,000.00 2-3 years 4.25% 690,000.00
Diversion
Investment Co.,
Ltd.
Total 28,654,577.86 52.95% 5,532,533.78
7) Reported in other receivables due to centralized management of funds
9. Accounts paid in advance
(1) Accounts paid in advance by ageing
In RMB
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 686,141,037.16 94.61% 367,741,841.11 91.59%
1-2 years 19,367,287.42 2.67% 13,954,754.79 3.48%
148
2023 Annual Report
2-3 years 4,874,823.59 0.67% 2,556,543.70 0.63%
Over 3 years 14,880,960.87 2.05% 17,270,475.89 4.30%
Total 725,264,109.04 401,523,615.49
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
(2) Top 5 advance payment at ending balance by prepayment object
Ratio in total advance e
Name Ending balance payment(%)
Siemens Energy Co., Ltd. 253,178,859.43 34.91
Siemens Energy AB 120,316,956.77 16.59
Xizi Clean Energy Equipment Manufacturing Co., Ltd. 84,012,000.00 11.58
Mitsubishi Hitachi Electric Gas Engine Service (Nanjing)
43,609,316.85 6.01
Co., Ltd
Shandong Jinan Power Generation Equipment Plant Co.,
24,442,051.18 3.37
Ltd.
Subtotal 525,559,184.23 72.46
10. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Provision for Provision for
Items inventory inventory
Book balance Book value Book balance Book value
impairment impairment
Raw materials 878,258,389.29 83,357,628.87 794,900,760.42 762,193,831.50 77,637,312.67 684,556,518.83
Goods in 1,050,322,781. 1,019,899,099.
58,337,126.65 991,985,654.57 74,567,968.42 945,331,130.98
progress 22 40
Stock goods 789,105,232.83 146,495,610.01 642,609,622.82 834,710,221.13 142,136,584.42 692,573,636.71
2,717,686,403. 2,429,496,037. 2,616,803,152. 2,322,461,286.
Total 288,190,365.53 294,341,865.51
34 81 03 52
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Opening
Items Reverse or Reverse or Closing balance
balance Withdrawal Other
write-off write-off
Raw materials 77,637,312.67 6,384,975.79 664,659.59 83,357,628.87
Goods in
74,567,968.42 13,742,632.09 29,973,473.86 58,337,126.65
progress
Stock goods 142,136,584.42 7,540,982.20 3,181,956.61 146,495,610.01
Total 294,341,865.51 27,668,590.08 33,820,090.06 288,190,365.53
The specific basis for determining the net realizable value, and the reasons for reversing or reselling the
inventory depreciation reserve in the current period
149
2023 Annual Report
Items Current write-off Reason for provision for
Specific basis for determining net realizable value
inventory
For raw materials that need to be processed, the net realizable value
shall be determined according to the estimated selling price of related
finished products minus the estimated cost to completion, estimated
sales expenses and related taxes; For raw materials directly used for Used for current production and use and sales
sale, the net realizable value shall be determined according to the realization
estimated selling price minus the estimated sales expenses and related
taxes
Raw materials
The net realizable value determines the amount after deducting the
estimated sales cost and the relevant taxes, For the suspended project
or the project whose sales agreement has been cancelled, the net Used for current production and use and sales
realizable value shall be determined according to the estimated realization
recoverable compensation.
Goods in progress
The net realizable value shall be recognized by the amount of the
estimated selling prices minus the estimated selling costs and relevant
taxes and dues, wherein regarding suspended projects expected not be Used for current production and use and sales
Stock goods
to be recovered or projects whose sales agreements are released, the realization
net realizable value shall be recognized by the expected recoverable
compensation
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
11. Assets divided as held-to-sold
12. Non-current assets due within 1 year
（1） Debt investment due within one year
□Applicable Not applicable
（2）Other Debt investment due within one year
□Applicable Not applicable
13. Other current assets
In RMB
Item Ending balance Opening balance
Input tax to be deducted 5,323,079.76 51,338,998.29
Advance payment of enterprise income
25,491.23 26,920,714.32
tax
Rent charge 274,035.08 690,018.87
Total 5,622,606.07 78,949,731.48
14.Creditor's right investment
150
2023 Annual Report
（1）Debt investment
（2） Important debt investment
（3） Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2023
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
(4) Information of debt investment actually written off in the current period
Change of book balance of loss provision with amount has major changes in the period
□Applicable Not applicable
15. Other debt investment
（1）Other debt investment
（2） Important debt investment
（3） Accrual of impairment provision
（4）Other debt investments actually written off during the period
Change of book balance of loss provision with amount has major changes in the period
□Applicable Not applicable
151
2023 Annual Report
16. Investment in other equity instrument
In RMB
Accumulated
losses
Gains recognized Loss recognized Accumulated gains
recognized in
in other in other recognized in other Dividend income Reason for designated in fair value
other
Item name Ending balance Opening balance comprehensive comprehensive comprehensive recognized in the measurement with changes recognized in
comprehensive
income for the income for the income at the end of current period other comprehensive income
income at the
current period current period the current period
end of the
current period
The shares of Hangzhou Bank Co., Ltd.
held by the company cannot pass the
contract cash flow characteristic test, but
Hangzhou the company does not hold the equity
2,721,470,812.06 3,556,127,694.48 834,656,882.42 2,330,516,772.06 108,750,082.40
Bank instrument for the purpose of trading, so it
is designated as a financial asset measured
at fair value and its changes are included in
other comprehensive income.
Total 2,721,470,812.06 3,556,127,694.48 834,656,882.42 2,330,516,772.06 108,750,082.40
17. Long-term account receivable
(1) Long-term account receivable
In RMB
Ending balance Opening balance Discount rate interval
Item
Book balance Bad debt provision Book value Book balance Bad debt provision Book value
Project item 55,022,203.37 40,242,220.34 14,779,983.03 106,022,203.37 28,481,110.34 77,541,093.03
Total 55,022,203.37 40,242,220.34 14,779,983.03 106,022,203.37 28,481,110.34 77,541,093.03
（2） According to the bad debt provision method classification disclosure
In RMB
152
2023 Annual Report
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Accrual of bad
debt provision 38,600,000.00 70.15% 38,600,000.00 100.00% 41,600,000.00 39.24% 24,960,000.00 60.00% 16,640,000.00
by single
Including：
Accrual of bad
debt provision 16,422,203.37 29.85% 1,642,220.34 10.00% 14,779,983.03 64,422,203.37 60.76% 3,521,110.34 5.47% 60,901,093.03
by portfolio
Including：
Total 55,022,203.37 100.00% 40,242,220.34 73.14% 14,779,983.03 106,022,203.37 100.00% 28,481,110.34 26.86% 77,541,093.03
Accrual of bad debt provision by single item：38,600,000.00
In RMB
Beginning of term End of term
Name
Book balance Bad debt provision Book balance Bad debt provision Proportion Reason
Accrual of bad debt provision by single Not expected to be
41,600,000.00 24,960,000.00 38,600,000.00 38,600,000.00 100.00%
item： recovered
Total 41,600,000.00 24,960,000.00 38,600,000.00 38,600,000.00
Accrual of bad debt provision by portfolio:1,642,220.34
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion
Aging portfolio 16,422,203.37 1,642,220.34 10.00%
Total 16,422,203.37 1,642,220.34
Note：
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase II
Bad debt provision Expected credit losses over next Expected credit losses for the entire duration Expected credit losses for the entire duration Total
12 months (without credit impairment occurred) (with credit impairment occurred)
January 1, 2023 balance in the
current period
153
2023 Annual Report
The basis for the division of each stage and the proportion of bad debt provision
(3) Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Category Opening balance Ending balance
Accrual Collected or reversal Write off Other
Accrual of bad debt
24,960,000.00 13,640,000.00 38,600,000.00
provision by single
Accrual of bad debt
3,521,110.34 -1,878,890.00 1,642,220.34
provision by portfolio
Total 28,481,110.34 11,761,110.00 40,242,220.34
154
2023 Annual Report
(4)Long-term receivables actually written off in the current period
18. Long-term equity investment
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable Not applicable
19.Other non-current Financing assets
In RMB
Items End of term Beginning of term
Classified as financial assets measured by f
air value and whose changes are included i 5,534,773.22 5,534,773.22
n the current profit and loss
Total 5,534,773.22 5,534,773.22
Other note：
Decrease in
Investees Opening balance Additional investment End of term
investment
Greenesol power systems PVT Ltd. 5,534,773.22 5,534,773.22
Total 5,534,773.22 5,534,773.22
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Construction in
Items House, Building Land use right Total
process
I. Original price
1. Balance at period-
beginning 10,169,000.55 10,169,000.55
2.Increase in the current
period
(1) Purchase
（2）Inventory \ fixed
assets \ project under construction
transfer
(3)Increased of Enterprise
Combination
3.Decreased amount of the period 7,288,939.03 7,288,939.03
（1）Dispose 7,288,939.03 7,288,939.03
（2）Other out
155
2023 Annual Report
4. Balance at period-end 2,880,061.52 2,880,061.52
II.Accumulated amortization
1.Opening balance 3,717,522.00 3,717,522.00
2.Increased amount of the period 397,186.80 397,186.80
(1) Withdrawal 397,186.80 397,186.80
3.Decreased amount of the period 2,779,096.68 2,779,096.68
（1）Dispose 2,779,096.68 2,779,096.68
（2）Other out
4. Balance at period-end 1,335,612.12 1,335,612.12
III. Impairment provision
1. Balance at period-beginning
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV. Book value
1.Book value at period -end 1,544,449.40 1,544,449.40
2.Book value at period-
6,451,478.55 6,451,478.55
beginning
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable Not applicable
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Converted to investment real estate and measured at fair value
（4）Investment real estate without property rights certificate
21.Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 1,995,150,533.24 1,926,594,610.89
Liquidation of fixed assets
Total 1,995,150,533.24 1,926,594,610.89
(1) List of fixed assets
In RMB
Machinery Office
Items Houses & buildings Transportations Total
equipment equipment
156
2023 Annual Report
I. Original price
1.Opening balance 1,596,783,530.05 1,243,389,910.30 32,710,150.60 145,275,818.25 3,018,159,409.20
2.Increased amount of
the period 49,372,402.19 231,555,900.73 645,605.36 19,926,033.92 301,499,942.20
(1) Purchase 6,367,701.65 645,605.36 5,588,007.30 12,601,314.31
(2) Transferred from c
onstruction in progress 11,467,597.57 189,174,151.35 13,531,389.14 214,173,138.06
(3)Increased of
Enterprise 37,904,804.62 36,014,047.73 806,637.48 74,725,489.83
Combination(Note 1)
3.Decreased amount of
64,620,922.01 31,763,239.39 6,895,336.55 3,059,953.98 106,339,451.93
the period
（1）Disposal 27,326,522.80 31,236,218.48 2,018,702.26 2,616,552.37 63,197,995.91
(2) Relocation
37,294,399.21 527,020.91 4,876,634.29 443,401.61 43,141,456.02
transfer(Note 2)
4. Balance at period-
1,581,535,010.23 1,443,182,571.64 26,460,419.41 162,141,898.19 3,213,319,899.47
end
II. Accumulated
depreciation
1.Opening balance 211,726,237.99 796,580,369.31 24,487,930.68 46,508,510.13 1,079,303,048.11
2.Increased amount of
50,716,399.23 107,831,332.12 321,076.67 18,948,772.87 177,817,580.89
the period
(1) Withdrawal 48,786,975.81 95,642,121.97 321,076.67 18,325,397.85 163,075,572.30
2) Increased of
Enterprise 1,929,423.42 12,189,210.15 623,375.02 14,742,008.59
Combination9Note 1)
3.Decreased amount of
14,540,045.86 29,824,009.67 6,081,372.73 2,708,897.57 53,154,325.83
the period
（1）Disposal 11,274,485.34 29,612,659.80 1,914,236.07 2,372,517.99 45,173,899.20
(2) Relocation
3,265,560.52 211,349.87 4,167,136.66 336,379.58 7,980,426.63
transfer(Note 2)
4.Closing balance 247,902,591.36 874,587,691.76 18,727,634.62 62,748,385.43 1,203,966,303.17
III. Impairment
provision
1.Opening balance 9,028,267.09 3,233,483.11 12,261,750.20
2.Increase in the
1,957,464.80 1,957,464.80
reporting period
（1）Withdrawal 1,957,464.80 1,957,464.80
3.Decreased amount of
16,151.94 16,151.94
the period
（1）Disposal 16,151.94 16,151.94
4. Closing balance 9,028,267.09 5,174,795.97 14,203,063.06
IV. Book value
1.Book value of the
1,324,604,151.78 563,420,083.91 7,732,784.79 99,393,512.76 1,995,150,533.24
period-end
2.Book value of the
1,376,029,024.97 443,576,057.88 8,222,219.92 98,767,308.12 1,926,594,610.89
period-begin
[Note 1] It’s the change in the scope of consolidation that transferred in the original book value of RMB
74,725,489.83 and the accumulated depreciation of RMB 14,742,008.59 of the fixed assets of Western Power
Company
[Note 2]: It’s the change in the scope of consolidation that transferred out the original book value of RMB
43,141,456.02 and the accumulated depreciation of RMB 7,980,426.63 of the fixed assets of the sales company.
157
2023 Annual Report
(2) Fixed assets temporarily idled
⑶Fixed assets leased out through operating leases
（4）Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Steam Turbine Heavy Industry Plant -
42,417,819.84 In the process
Complete sets of factory
(5) Information of impairment test of fixed assets
Applicable □Not applicable
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
Applicable □Not applicable
In RMB
Recreable Impairment Determination method for fair Basis for determining key
Items Book value Key parameter
amount amount value and disposal expenses parameters
CNC heavy-duty horizontal Replacement cost, Calculated by multiplying the
4,542,125.32 2,885,940.00 1,656,185.32 Evaluation value
lathe of Hangfa Company newness rate replacement cost by the newness rate
Milling machine of Hangfa Replacement cost, Calculated by multiplying the
1,076,209.48 774,930.00 301,279.48 Evaluation value
Company newness rate replacement cost by the newness rate
Total 5,618,334.80 3,660,870.00 1,957,464.80
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable Not applicable
（6） Liquidation of fixed assets
22. Construction in progress
158
2023 Annual Report
In RMB
Items End of term Beginning of term
Construction in progress 298,071,246.03 286,290,854.97
Total 298,071,246.03 286,290,854.97
(1) List of construction in progress
In RMB
End of term Beginning of term
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Annual output of 10 sets of gas turbine unit project 234,238,227.81 234,238,227.81 81,700,278.09 81,700,278.09
New Plant project 161,344,450.28 161,344,450.28
Production line project with an annual output of 15,000 tons of steel
33,656,665.95 33,656,665.95
castings and 40,000 tons of forged blanks
Integrated industrial base project for energy-saving, carbon-reducing and
17,090,554.63 17,090,554.63
high-efficiency turbine machinery intelligent manufacturing service
Software project 1,892,328.64 1,892,328.64 13,362,743.79 13,362,743.79
Other project 6,960,399.87 6,960,399.87 27,285,325.58 27,285,325.58
Prepayment for equipment or projects 4,233,069.13 4,233,069.13 2,598,057.23 2,598,057.23
Total 298,071,246.03 298,071,246.03 286,290,854.97 286,290,854.97
(2)Changes of significant construction in progress
In RMB
Including
Capitali
g:
Name Budget z
Transferred Other Capitaliz capitaliz Source
of Opening Proportion Project ation of
（0'000 Increase to fixed decrease(Not End balance ation of ation of of
projec balance % process interest
t ） assets e) interest interest
rate
funding
this
(%)
period
New
166,916.2 161,344,450. 165,727,746. 9,819,482.4
Plant 4,383,296.52 100.00% Completed Other
9 28 80 7
projec
159
2023 Annual Report
t
Annu
al
output
of 10 Loan for
Under
sets of 81,700,278.0 152,537,949. 234,238,227. 521,584.1 financial
50,000.00 46.85% constructi 521,584.19 2.70%
gas 9 72 81 9 institutions ,Oth
on
turbin er
e unit
projec
t
216,916.2 243,044,728. 156,921,246. 165,727,746. 234,238,227. 10,341,066. 521,584.1
Total
9 37 24 80 81 66 9
160
2023 Annual Report
(3) List of the withdrawal of the impairment provision of the construction in progress
（4） Information of impairment test of construction in progress
□Applicable Not applicable
(5) Engineering materials
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable Not applicable
（2） Impairment test of productive biological assets using cost measurement mode
□Applicable Not applicable
（3） Productive biological assets measured by fair value
□ApplicableNot applicable
24. Oil and gas asset
□ApplicableNot applicable
25. Right-of-use assets
（1） Right-of-use assets
In RMB
Items House and Building Mechanical equipment Total
I. Original price
1. Balance at period-
46,776,400.16 391,374.21 47,167,774.37
beginning
2.Increase in the current
23,971,112.95 23,971,112.95
period
（1）Rent 17,078,969.66 17,078,969.66
(2) Other[Note] 6,892,143.29 6,892,143.29
3.Decreased amount of
5,813,713.82 391,374.21 6,205,088.03
the period
(1)Disposition 5,813,713.82 391,374.21 6,205,088.03
4. Balance at period-end 64,933,799.29 64,933,799.29
II. Accumulated depreciation
1.Opening balance 18,866,143.96 195,687.12 19,061,831.08
2.Increased amount of the
17,509,859.39 195,687.09 17,705,546.48
period
(1) Withdrawal 14,842,103.16 195,687.09 15,037,790.25
(2) Other [Note] 2,667,756.23 2,667,756.23
3.Decreased amount of the
5,716,775.51 391,374.21 6,108,149.72
period
（1）Disposal 5,716,775.51 391,374.21 6,108,149.72
161
2023 Annual Report
4.Closing balance 30,659,227.84 30,659,227.84
III. Impairment provision
1.Opening balance
2.Increase in the reporting
period
（1）Withdrawal
3.Decreased amount of the
period
（1）Disposal
4. Closing balance
IV. Book value
1.Book value of the period-
34,274,571.45 34,274,571.45
end
2.Book value of the period-
27,910,256.20 195,687.09 28,105,943.29
begin
Other notes: [Note] Other changes are due to the long-term lease of Hangzhou Turbine Industry and Trade Co.,
Ltd. (hereinafter referred to as Industry and Trade Company), a subsidiary of Sales Company, the original
subsidiary, which is no longer included in the scope of consolidated statements.
（2） Information of impairment test of right-of-use assets
□Applicable Not applicable
Other note:
26. Intangible assets
(1) Information
In RMB
Patent and
Non patent
Items Land using right proprietary Software Total
technology
technology
I. Original price
1. Balance at period-
324,343,159.25 344,087.43 8,000,000.00 26,625,890.13 359,313,136.81
beginning
2.Increase in the current
143,904,987.02 17,521,459.08 161,426,446.10
period
(1) Purchase 131,946,100.00 2,256,474.84 134,202,574.84
(2)Internal Development
(3)Increased of
Enterprise 11,958,887.02 507,259.04 12,466,146.06
Combination(Note 1)
(4) Projects under
construction are 14,757,725.20 14,757,725.20
transferred
3.Decreased amount of
13,935,900.00 8,000,000.00 126,213.59 22,062,113.59
the period
162
2023 Annual Report
（1）Disposal 8,260,600.00 8,000,000.00 16,260,600.00
(2) Merge scope change
5,675,300.00 126,213.59 5,801,513.59
and transfer out [Note2]
4.Closing balance 454,312,246.27 344,087.43 44,021,135.62 498,677,469.32
II.Accumulated
amortization
1.Opening balance 67,306,817.90 283,831.36 6,066,666.95 10,811,032.13 84,468,348.34
2.Increased amount of
8,979,116.14 6,038.40 1,933,333.05 5,503,708.36 16,422,195.95
the period
(1) Withdrawal 8,296,199.59 6,038.40 1,933,333.05 5,362,748.77 15,598,319.81
(2) Increased of
Enterprise 682,916.55 140,959.59 823,876.14
Combination[Note1]
3.Decreased amount of
3,389,392.70 8,000,000.00 126,213.59 11,515,606.29
the period
（1）Disposal 2,265,448.44 8,000,000.00 10,265,448.44
(2) Merge scope change
1,123,944.26 126,213.59 1,250,157.85
and transfer out [Note 2]
4.Closing balance 72,896,541.34 289,869.76 16,188,526.90 89,374,938.00
III. Impairment
provision
1.Opening balance
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 381,415,704.93 54,217.67 27,832,608.72 409,302,531.32
2.Opening book value 257,036,341.35 60,256.07 1,933,333.05 15,814,858.00 274,844,788.47
[Note 1] It’s the change in the scope of consolidation that transferred in the original book value of RMB
12,466,146.06 and the accumulated amortization of RMB 823,876.14 of the intangible assets of Western Power
Company
[Note 2]: It’s the change in the scope of consolidation that transferred out the original book value of RMB
163
2023 Annual Report
5,801,513.59 and the accumulated amortization of RMB 5,801,513.59 of the intangible assets of the sales
company.
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
（3）Information of impairment test of intangible assets
□Applicable Not applicable
27. Goodwill
(1) Original book value of goodwill
In RMB
Current increased Current decreased
The invested Opening Resulted by Ending balance
entity or items balance enterprise Dispose
combination
Western Power
15,415,678.59 15,415,678.59
Company
Total 15,415,678.59 15,415,678.59
（2）Impairment provision of goodwill
(3)Information about the asset group or asset group portfolio to which the goodwill belongs
Composition and basis of the Whether it is consistent with
Name Operating segment and basis
asset group or portfolio the previous year
The Company's main business
is to produce and sell
Goodwill formed by the industrial steam turbines,
acquisition of the equity of accessories and other
Western Power Company Western Power, an enterprise products. The Company Yes
not under the same control by regards such business as a
Ranchuang Company whole to implement
management and evaluate the
operating results
(4) The specific method of determining the recoverable amount
The recoverable amount is determined on the basis of the net amount by fair value less disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
Applicable□Not applicable
In RMB
Recoverable Impair The Key Key Basis for
Items Book value
amount ment number paramenters parameters of determining
164
2023 Annual Report
amoun of for the stable phase the key
t years forecast parameters of
in the period the stable
forecas period
t period
The company
determines
the growth
rate in the
Revenue
stable period
growth rate
to be 0% and
during the
stable period the profit rate
forecast
Western Power growth rate, to be 15.60%
118,792,376.12 155,000,000.00 5 period, profit
Company stable period based on
margin
profit rate actual
during the
historical
forecast
operating
period
data and
industry
development
trends.
Total 118,792,376.12 155,000,000.00
Other note: The Company entrusted Kunyuan Asset Appraisal Co., Ltd. to issue an Asset Appraisal Report
(No. 337 [2024]Kunyuan Appraisal)on the present value of the estimated future cash flows of the asset group
portfolio (including goodwill) of Western Power Company as of December 31, 2023.
(5) Status of completion of performance commitment and corresponding goodwill impairment
When goodwill is formed, there is a performance commitment and the reporting period or the previous period in
the reporting period is within the performance commitment period
□Applicable Not applicable
28. Long-term expenses to be apportioned
29. Deferred income tax asset /Deferred income tax liabilities
(1) Details of the un-recognized deferred income tax assets
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference asset difference asset
Relocation
951,038,395.56 142,655,759.32 1,005,531,878.82 151,865,228.79
compensation
bad debt provision 870,466,211.50 145,563,542.96 953,003,752.91 152,772,938.75
Provision for Asset
228,545,720.46 36,389,300.80 292,918,269.21 44,744,124.49
Impairment
Recipiable loss 133,497,400.25 20,548,342.36
Internal trade profit not
31,974,592.37 4,796,188.86 21,474,851.24 3,221,227.69
realized
LeSE Liabilities 35,458,429.22 5,969,542.18
Product quality
11,768,979.69 2,461,108.72
assurance
165
2023 Annual Report
Revenue from changes
in fair value generated
by financial assets 908,513.56 136,277.03 870,485.96 130,572.89
classified at fair value
through profit or loss
Total 2,263,658,242.61 358,520,062.23 2,273,799,238.14 352,734,092.61
166
2023 Annual Report
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value
of investments in other 2,330,516,772.06 349,577,515.81 3,165,173,654.48 474,776,048.17
equity instruments
Use right assets 34,274,571.45 5,765,793.33
Unconsolidated assets
13,383,487.86 3,345,871.96
under the same control
Accelerated
depreciation of fixed 772,798.24 115,919.73 219,773.45 32,966.02
assets
Derivative financial
724,756.61 108,713.49
assets
Total 2,379,672,386.22 358,913,814.32 3,165,393,427.93 474,809,014.19
（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Temporarily
Deferred Income Tax Temporarily Deferred Income Tax
Deductable or Taxable
Assets or Liabilities at Deductable or Taxable Assets or Liabilities at
Items Difference at the
the End of Report Difference at the End the Beginning of
Beginning of Report
Period of Report Period Report Period
Period
Deferred income tax
284,919,627.73 73,600,434.50 352,734,092.61
assets
Deferred income tax
284,919,627.73 73,994,186.59 474,809,014.19
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible temporary difference 220,040,635.06 155,107,906.71
Deductible loss
64,638,766.24 123,070,154.92
Total 284,679,401.30 278,178,061.63
(5) The un-recognized deductible losses of deferred income tax assets will due in the following years:
In RMB
Year Balance in year-end Balance in year-begin Remark
2023 10,388,277.67
2024 26,189,768.32
2025 5,397,758.37
2026 12,109,526.82
2027 365,388.54 2,554,125.34
2028 4,972,495.80
2029 4,137,298.09 4,137,298.09
2031 46,910,685.54 46,982,771.08
2032 3,575,082.10 15,310,629.23
2033 4,677,816.17
167
2023 Annual Report
Total 64,638,766.24 123,070,154.92
168
2023 Annual Report
30 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Prepaid equity transfer payment 60,817,500.00 60,817,500.00
Advance equipment payment 2,870,681.60 2,870,681.60 31,572,954.47 31,572,954.47
Advance land payable 13,350,000.00 13,350,000.00
Total 63,688,181.60 63,688,181.60 44,922,954.47 44,922,954.47
31. Assets with restricted ownership or right to use
In RMB
End of period Beginning of period
Item Restricted Restricted
Book balance Book value Restricted type Restricted circumstance Book balance Book value
type circumstance
Bank acceptance bill
Bank acceptance bill
margin, L/G margin and
Monetary funds 136,551,548.48 136,551,548.48 Pledge/Freeze 149,952,386.14 149,952,386.14 Pledge/Freeze margin, L/G margin,
foreign exchange
etc.
transaction margin, etc.
Discounted or endorsed Endorsed bills undue
Notes
89,703,453.14 80,000,369.38 Discounted/Endorsed bills undue that have not 11,130,774.54 9,520,412.31 Endorsed that have not been
receivable
been derecognized derecognized
Receivable Mortgage to obtain bank Pledge for issuing bank
60,417,669.80 60,417,669.80 Mortgage 143,516,310.23 143,516,310.23 Pledge
financing borrowings acceptance bills
Mortgage to obtain bank Mortgage to obtain
Fixed assets 141,658,223.80 96,623,112.51 Mortgage 178,306,754.63 124,868,888.02 Mortgage
borrowings bank borrowings
Intangible Mortgage to obtain bank Mortgage to obtain
30,946,908.19 22,138,256.09 Mortgage 24,729,790.25 17,207,776.09 Mortgage
assets borrowings bank borrowings
Total 459,277,803.41 395,730,956.26 507,636,015.79 445,065,772.79
169
2023 Annual Report
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items
End of term Beginning of term
Credit borrowing 335,570,306.56 155,634,400.89
Undiscounted discounted of the maturity 94,716,727.40
Mortgage Borrowings 50,050,263.88 50,059,115.83
Guarantee Borrowing 24,028,569.45 70,059,711.17
Pledge borrowing 62,998.75
Domestic letter of credit discount loan 12,000,000.00
Total 504,428,866.04 287,753,227.89
(2) List of the short-term borrowings overdue but not return
33. Transactional financial liabilities
34. Derivative financial liability
35.Notes payable
In RMB
Items
End of term Beginning of term
Commercial acceptance bill 8,000,000.00
Bank acceptance bill 481,424,952.96 403,886,347.73
Total 481,424,952.96 411,886,347.73
The total amount of outstanding notes payable at the end of this period is RMB .
36. Accounts payable
(1) List of accounts payable
In RMB
Items
End of term Beginning of term
Goods 1,218,137,627.44 1,050,477,495.94
Equipment and Engineering 169,972,464.80 140,729,051.34
Other 21,020,410.48 11,709,180.01
Total 1,409,130,502.72 1,202,915,727.29
(2) Notes of the accounts payable aging over one year
37. Advances received
170
2023 Annual Report
In RMB
Items
End of term Beginning of term
Dividend payable 90,000.00
Other payable 151,669,883.07 203,698,336.85
Total 151,669,883.07 203,788,336.85
(1) Interest payable
(2) Dividend Payable
In RMB
Items
End of term Beginning of term
Research Institute of Mechanical Science
90,000.00
Zhejiang Branch Co., Ltd.
Total 90,000.00
（3）Other account payable
1) By nature
In RMB
Items
End of term Beginning of term
Receipt of temporary collection 79,525,977.96 92,141,265.66
Restricted stock subscription funds[Note] 62,440,537.64 100,222,346.86
Deposit 8,602,381.26 8,650,506.77
Other 1,100,986.21 2,684,217.56
Total 151,669,883.07 203,698,336.85
Note: It refers to the subscription money for restricted stock-that’s still in the waiting period cumulatively
received from the equity incentive recipients
2) Significant other payable with over one year age
3) Other payables of the top five ending balances aggregated by counterparty
38. Advances received
(1) List of Advances received
In RMB
Items
End of term Beginning of term
Rent 29,998.47 230,204.48
Total 29,998.47 230,204.48
(2) Notes of the accounts payable aging over one year
39.Contract liabilities
In RMB
171
2023 Annual Report
Items
End of term Beginning of term
Goods 2,753,211,717.09 2,306,912,441.68
Total 2,753,211,717.09 2,306,912,441.68
40.Payable Employee wage
(1) List of Payroll payable
In RMB
Increase in this Payable in this Balance in year-end
Items Balance in year-begin
period(Note 1) period(Note 2)
I. Short-term
100,054,602.85 929,693,810.45 931,859,628.23 97,888,785.07
compensation
II.Post-
employment benefits -
38,960,070.73 126,309,007.76 123,790,820.81 41,478,257.68
defined contribution pl
ans
III. Dismissal benefits 3,345,203.67 3,345,203.67
Total 139,014,673.58 1,059,348,021.88 1,058,995,652.71 139,367,042.75
[Note 1] Including the change in the scope of consolidation that transferred in the short-term remuneration
of Western Power Company of 459,490.73 yuan
[Note 2] Including the change in the scope of consolidation that transferred out the short-term
remuneration of the sales company of 401,598.21 yuan, and the post-employment benefit-set deposit and
withdrawal plan of 861,188.73 yuan
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period Decrease in this period Balance in year-end
(1) Salary, bonus,
87,578,245.29 720,204,531.50 718,804,718.02 88,978,058.77
allowance and subsidy
(2) Employee benefits 52,224,401.24 52,224,401.24
(3) Social insurance
7,556,043.17 61,012,856.84 63,108,713.27 5,460,186.74
expenses
Including: medical
7,291,882.17 57,573,098.18 59,777,386.75 5,087,593.60
insurance premium
Work-related injury
264,161.00 3,439,758.66 3,331,326.52 372,593.14
insurance premium
(4) Housing fund 458,263.96 78,907,719.86 79,234,266.86 131,716.96
(5) Labor union
expenditures and
4,462,050.43 17,344,301.01 18,487,528.84 3,318,822.60
employee education
expenses
Total 100,054,602.85 929,693,810.45 931,859,628.23 97,888,785.07
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
1.Basic pension
7,215,189.04 89,475,432.36 87,057,305.36 9,633,316.04
insurance
2. Unemployment
250,067.96 3,212,824.34 3,118,841.39 344,050.91
insurance
172
2023 Annual Report
3. Enterprise annual fee 31,494,813.73 33,620,751.06 33,614,674.06 31,500,890.73
Total 38,960,070.73 126,309,007.76 123,790,820.81 41,478,257.68
41. Taxes Payable
In RMB
Items End of term Beginning of term
Enterprise Income tax 38,060,458.93 19,296,080.94
VAT 24,479,472.25 26,831,710.72
Property tax 13,194,561.97 14,880,121.69
Individual Income tax 5,400,839.17 3,947,213.74
Land use tax 5,237,869.78 3,836,290.15
City Construction tax 2,448,306.59 2,081,991.58
Education subjoin 1,097,584.16 941,347.25
Locality Education subjoin 731,722.75 632,108.09
Other 1,146,408.47 938,259.93
Total 91,797,224.07 73,385,124.09
42. Liability held for sale
43. Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Long-term loans due within 1 year 61,069,333.33 30,637,507.55
lease liabilities due within 1 year 19,746,435.79 12,165,379.31
Total 80,815,769.12 42,802,886.86
44. Other current liabilities
In RMB
Items End of term Beginning of term
Output tax to be transferred 309,290,405.34 266,480,963.69
Maintenance and renovation costs 1,105,000.00 1,105,000.00
Advance relocation costs 200,000.00
Total 310,595,405.34 267,585,963.69
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items End of term Beginning of term
Guarantee loan 100,116,111.11 150,192,500.00
Credit loan 75,055,479.45
Mortgage loan 47,648,250.51 9,711,173.86
Total 222,819,841.07 159,903,673.86
173
2023 Annual Report
46. Bonds payable
(1) Bonds payable
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
47. Lease liability
In RMB
Items End of term Beginning of term
Unpaid lease payments 16,414,052.70 17,206,632.59
Less：Financing charges are not
468,706.23 872,609.49
recognized
Total 15,945,346.47 16,334,023.10
48. Long-term payable
In RMB
Items End of term Beginning of term
Long term account payable 330,000.00 330,000.00
Special Payable 11,865,896.78 10,774,088.21
Total 12,195,896.78 11,104,088.21
(1) Long-term payable listed by nature of the account
In RMB
Items End of term Beginning of term
Drawing in administrative
330,000.00 330,000.00
restructuring
Subtotal 330,000.00 330,000.00
(2) Special Payable
In RMB
Items Opening balance Increase Decrease End balance Reason
Compensation for
2,498,212.20 257,606,998.18 260,105,210.38
relocation
Funding for
6,234,947.69 4,382,450.00 775,429.23 9,841,968.46
Personnel Training
Demolition and
2,040,928.32 33,360.29 50,360.29 2,023,928.32
resettlement funds
Total 10,774,088.21 262,022,808.47 260,930,999.90 11,865,896.78
Other note：
174
2023 Annual Report
1.The reduction of compensation for land requisition and relocation in the current period is caused by the carry-
over of compensation for land requisition and relocation, in which the corresponding part of the relocation cost
of RMB7,953,100.69 in the current period is transferred to other income, and the corresponding part of the
fixed assets of RMB 249,024,441.63 in the new factory area put into use in the current period is transferred to
deferred revenue, In addition, the subsidiary Machinery Company transferred the balance of compensation for
relocation of RMB 127,668.06 into capital reserve-other capital reserve. as shown in Note X,XVIII(8)1 to this
Financial Statement.
2. Resettlement payment mainly refers to the compensation and resettlement transition fee saved during the
demolition and housing reform of the family dormitory area of the subsidiary, Hangfa Company.
49. Long term payroll payable
(1) List of long term payroll payable
(2) Changes of defined benefit plans
50. Estimated liabilities
In RMB
Item Ending balance Opening balance Causes
Product quality assurance 11,768,979.69 after service
Total 11,768,979.69
51. Deferred income
In RMB
Increased this Decreased this
Items Beginning of term End of term Reason
period period(Note)
Receive
Government
877,381,129.85 265,931,982.32 73,642,400.76 1,069,670,711.41 government
Subsidy subsidies
Total 877,381,129.85 265,931,982.32 73,642,400.76 1,069,670,711.41 --
Note: The deferred income of the sales company transferred out from the change of the scope of
consolidation is 9,073,485.95 yuan
52. Other non-current liabilities
In RMB
Item Ending balance Opening balance
Collect the relocation compensation
58,696,860.00
money in advance[Note]
Total 58,696,860.00
[Note] It is the compensation for relocation received by Zhongneng Company, a subsidiary, for the relocation
project at No.18, 22nd Street, Baiyang Block, Hangzhou Economic and Technological Development Zone. For
details, please refer to the explanation in Section X, XVIII 8 (2) of this report.
175
2023 Annual Report
53. Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Year-
Issuing of Transferred from Balance year-end
beginning Bonus shares Other Subtotal
new share reserves
Total of
-
capital 980,179,980.00 195,907,400.00 195,264,420.00 1,175,444,400.00
642,980.00
shares
Other note
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks reviewed and
adopted at the 30th meeting of the Eighth Board of Directors and the 19th meeting of the Eighth Board of
Supervisors in 2022, nine of the incentive objects in the restricted stock incentive plan of the Company in 2021
are no longer qualified for incentive objects due to retirement, and one is no longer qualified for incentive
objects due to personal reasons. The above-mentioned retirees can still release the restricted sale of the
corresponding shares according to the agreed conditions according to their specific tenure in the performance
assessment period, and the remaining restricted sale that have not been released from the restricted sale shall not
be released from the restricted sale, and the Company will repurchase and cancel them according to the granted
price plus the interest of bank deposits in the same period; The above-mentioned restricted stocks that have been
granted but have not been released from the restricted sale of the former employees shall be subject to
repurchase cancellation by the Company according to the granted price. The number of restricted shares
cancelled in this repurchase is 531,180 shares, and the repurchase price payable by the Company for this
repurchase of restricted shares is 2,197,649.00 yuan.Upon the audit and confirmation by Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited, this repurchase and cancellation of restricted
stocks were completed on March 27, 2023. The above-mentioned repurchase and cancellation of restricted
stocks have been verified by Zhejiang Nanfang Certified Public Accountants Co., Ltd., which issued the Capital
Verification Report (NFY Zi (2023) No.003), and the Company completed the industrial and commercial
change registration procedures on July 13, 2023.
2) According to the Proposal on Cancelling the Remaining Shares in the Special Securities Account for
Repurchase, which was reviewed and adopted at the 32nd meeting of the Eighth Board of Directors in 2023, the
Company cancelled the remaining 111,800 shares in the Special Securities Account for Repurchase in
accordance with the relevant provisions of the Company Law. Upon the recognition by Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited, this share repurchase was completed on June 21,
2023. The above-mentioned repurchase and cancellation of restricted stocks have been verified by Zhejiang
Nanfang Certified Public Accountants Co., Ltd., which issued the Capital Verification Report (NFY Zi (2023)
No.009), and the Company completed the industrial and commercial change registration procedures on July 13,
2023.
176
2023 Annual Report
3) According to the Profit Distribution Plan for 2022 adopted by the resolution at the 2022 Annual General
Meeting of Shareholders, in this equity distribution, based on the total share capital of 980,179,980 shares at the
end of 2022, after deducting 111,800 treasury shares repurchased on the date of record for equity distribution by
the Company and 531,180 shares cancelled in December 2022 due to the retirement and resignation of equity
incentive objects, that is, based on 979,537,000 shares, 2 bonus shares are distributed to all shareholders for
every 10 shares, totaling 195,907,400 shares. The above-mentioned transferred shares have been automatically
credited to the securities accounts of all investors in proportion on June 16, 2023 by China Securities
Depository and Clearing Corporation Limited Shenzhen Branch through the computer network according to the
number of shares held by all investors registered on the date of record (June 16, 2023). The paid-in amount of
the above-mentioned newly-increased registered capital has been verified by Pan-China Certified Public
Accountants (Special General Partnership), and the Capital Verification Report (TJY [2023] No.462) was issued
by Pan-China Certified Public Accountants, and the Company has completed the industrial and commercial
change registration procedures on September 12, 2023.
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
(2) Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
55. Capital reserves
In RMB
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
period period
Capital premium 262,539,139.50 61,373,377.95 53,443,393.16 270,469,124.29
Other capital reserves 132,396,722.50 46,464,780.10 50,116,922.45 128,744,580.15
Total 394,935,862.00 107,838,158.05 103,560,315.61 399,213,704.44
Other notes, including changes and reason of change:
(1) The current increase of share capital premium includes:
① The first phase of restricted stocks granted by the Company in 2021 met the conditions for unlocking
restricted stocks, and the original recognized share payment fee of RMB 46,894,922.45 was transferred from
capital reserve-other capital reserve to capital reserve-share capital premium.
② When the Company merged under the same control in 2021 to acquire the Sales Company (the equity of the
Sales Company held by Hangzhou Steam Turbine Holdings Company), the difference between the
consideration paid by the merger and the net assets of the merged party on the date of merger of RMB
14,478,455.50 was adjusted, which was reduced by the capital reserve-share capital premium. In the current
period, when the Company transferred all the equity of the Sales Company to Hangzhou Steam Turbine
Holdings Company and lost control, it increased the capital reserve-share capital premium by RMB
14,478,455.50 accordingly.
2) The current decrease of share capital premium includes:
① In the current period, the share capital was reduced by RMB 642,980.00 due to the repurchase and
cancellation of 642,980 restricted stocks, the capital reserve-share capital premium was reduced by RMB
3,191,893.75, and the treasury shares was reduced correspondingly by RMB 3,834,873.75.
② The first phase of restricted stocks granted by the Company in 2021 met the conditions for unlocking
restricted stocks, and the difference between the corresponding amount of RMB 39,027,680.39 repurchased
from the secondary market and the restricted stock repurchase obligation of RMB 28,965,160.22 corresponding
to the first unlocking of the employee stock ownership plan was offset by the capital reserve-share capital
premium of RMB 10,062,520.17.
177
2023 Annual Report
③ Due to the purchase of minority shareholders' equity in Machinery Company, a subsidiary, the Company
adjusted and reduced the capital reserve-share capital premium by RMB 38,168,687.04 for the difference
between the newly acquired long-term equity investment cost and the net identifiable assets share of
subsidiaries calculated since the merger date according to the newly increased shareholding ratio.
④ In the current period, the Company increased its special reserve due to the purchase of minority shareholders'
equity in Machinery Company, and adjusted to reduce the capital reserve-share capital premium by RMB
2,020,292.20.
3) The increase of other capital reserves in the current period includes:
① In the current period, the Company recognized the share-based payment fee of RMB 44,838,392.71 due to
the equity incentive, and increased the capital reserve-other capital reserve. For details, please refer to the
explanation in Section X,XV of this report.
② Machinery Company, a subsidiary, transferred the balance of compensation for policy relocation to capital
reserve, and the Company increased the capital reserve-other capital reserve by RMB 1,626,387.39 according to
its shareholding ratio.
4) The decrease of other capital reserves in the current period includes:
① Zhejiang Zhongrun Gas Turbine Technology Co., Ltd. (hereinafter referred to as Zhongrun Company), the
original subsidiary, was cancelled in the current period, and the capital reserve-other capital reserve of RMB
3,222,000.00, which was recognized when it was an original affiliated enterprise of Zhejiang Turbine Import
and Export Trading Co., Ltd. (hereinafter referred to as Turbine Company), was transferred out accordingly.
② The internal carry-over of capital reserve is RMB 46,894,922.45. For details, please refer to the explanation
in Section X 55 Other Notes 1) ① of this report.
56. Treasury stock
In RMB
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
period period
Restricted stock with a
136,466,388.09 50,176,099.34 86,290,288.75
repurchase obligation
Total 136,466,388.09 50,176,099.34 86,290,288.75
Other notes, including changes and reason of change:
The decrease in treasury shares in the current period includes:
1) The Company reduced its treasury shares by RMB 3,834,873.75 due to the repurchase and cancellation of
restricted stocks. For details, please refer to the explanations of other explanations in Section X 55 Other Notes
1) ① of this report.
2) According to the resolution of the Company's 2022 annual general meeting of shareholders, the Company
distributed a cash dividend of RMB 3.00 (including tax) to all shareholders for every 10 shares, and the total
number of restricted stocks that are expected to be unlocked for the first time and reserved for granting is
24,378,484 shares (the original total number of shares granted is 18,752,680 shares, and 3 shares are distributed
to every 10 shares in the 2021 profit distribution plan), corresponding dividend is RMB 7,313,545.20,
Other accounts payable and treasury stock were reduced by RMB 7,313,545.20 accordingly.
3) The first phase of restricted stocks granted by the Company for the first time in 2021 met the conditions for
unlocking restricted stocks, 9,254,045 shares were unlocked
(The original number of granted shares was 5,932,080 shares. The profit distribution plan of giving 3 bonus shar
es for every 10 shares implemented in 2021 increased the number of shares by 1,779,624 shares. The profit distr
ibution plan of giving 2 bonus shares for every 10 shares implemented in 2022 increased the number of shares b
y 1,542,341 shares). The corresponding reduction in treasury shares was RMB 39,027,680.39.
178
2023 Annual Report
57. Other comprehensive income
In RMB
Occurred current term
Less：Amount Less：Prior
transferred into profit and period included in After-tax
Items Opening balance Amount incurred After-tax Closing balance
loss in the current period other composite Less：Income attribute to
before income attribute to the
that recognied into other income transfer to tax expenses minority
tax parent company
comprehensive income in retained income in shareholder
prior period the current period
1. Other
comprehensive
income that cannot be 2,690,397,606.30 -834,656,882.42 -125,198,532.36 -709,458,350.06 1,980,939,256.24
reclassified in the loss
and gain in the future
Changes in fair value
of investments in
2,690,397,606.30 -834,656,882.42 -125,198,532.36 -709,458,350.06 1,980,939,256.24
other equity
instruments
Total of other
comprehensive 2,690,397,606.30 -834,656,882.42 -125,198,532.36 -709,458,350.06 1,980,939,256.24
income
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
58. Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 17,841,325.92 17,017,179.39 14,503,128.00 20,355,377.31
Total 17,841,325.92 17,017,179.39 14,503,128.00 20,355,377.31
179
2023 Annual Report
Other note, including changes and reason of change:
1) The increase in the current period is due to the special reserve of RMB 2,020,292.20 increased due to the purchase of minority shareholders' equity of the
Machinery Company.
2) The decrease in the current period is due to the work safety expenses extracted by the Company and subsidiary for the purchase of safety protection supplies and
equipment.
3) After adding the work safety expenses attributable to minority shareholders, the total work safety expenses of the Company and its subsidiaries at the end of the
current period is RMB 27,675,068.88.
180
2023 Annual Report
59. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus
625,178,089.82 625,178,089.82
reserves
Total 625,178,089.82 625,178,089.82
60. Retained profits
(1)Detail
In RMB
Items Amount of this period Amount of last period
Adjust the undistributed profits before and at the
3,756,414,638.24 3,761,583,410.91
end of the period
Add：Net profit belonging to the owner of the
517,680,522.56 522,396,807.32
parent company
Common stock dividend payable 293,752,399.20 301,395,999.99
Common stock dividends converted to share
195,907,400.00 226,169,580.00
stock
Retained profits at the period end 3,784,435,361.60 3,756,414,638.24
(2)Other note:
According to the 2022 profit distribution plan deliberated and approved by the 2022 Annual General
Meeting of Shareholders, the Company will distribute cash dividends of 3 yuan (including tax) and 2 bonus
shares for every 10 shares, based on the total share capital of 979,537,000 shares as the base as of December 31,
2022 which is calculated by the total share capital of980,179,980 shares deducting 111,800 repurchased treasury
shares as of the equity distribution registration date, and deducting the cancellation of 531,180 shares due to the
retirement and resignation of equity incentive recipients in December 2022. A total stock dividend of RMB
195,907,400.00 and a cash dividend of RMB 293,861,100.00will be distributed, including the 108,700.80 yuan
in cash dividends for restricted stocks that are expected to be unlocked.
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations,
retained profit at period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Business income and Business cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main Business 5,877,944,944.25 4,455,359,342.99 5,495,693,244.56 4,016,656,619.93
Other 46,293,076.97 20,348,015.68 23,148,695.26 10,758,183.33
Total 5,924,238,021.22 4,475,707,358.67 5,518,841,939.82 4,027,414,803.26
181
2023 Annual Report
Whether the net profit before and after deducting non-recurring gains and losses is negative after audit
□ Yes √ No
Other note:
Information related to the transaction price allocated to the remaining performance obligation:
At the end of the reporting period, the amount of income corresponding to the performance obligations with
signed contract but not yet fulfilled or not fulfilled is RMB 7,833,390,000.00.
62.Taxes and surcharges
In RMB
Items Amount of this period Amount of last period
Urban maintenance and construction tax 8,788,972.71 10,009,589.55
Educational surtax 4,098,008.10 4,366,464.42
Locality Education surcharge 2,727,966.25 2,910,976.25
House tax 13,303,026.15 14,957,149.91
Land royalties 2,272,256.02 2,400,686.40
Stamp tax 5,220,714.59 3,667,483.45
vehicle and vessel tax 50,303.92 60,286.64
Other 43,293.87 11,122.15
Total 36,504,541.61 38,383,758.77
63. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 340,087,067.76 394,509,449.15
Asset depreciation and amortizing 61,008,230.48 42,711,626.99
Stock payable 24,517,471.39 56,252,090.01
Rental fee, House rental, property
24,506,606.57 22,495,865.42
management, water and power
Agency fee 15,198,845.71 8,075,703.91
Office expenses 12,485,360.50 10,780,226.70
Service charge 11,526,078.87 11,335,478.39
Travel expenses and overseas travel
8,845,035.67 5,647,664.14
expenses
Repair costs 6,457,776.28 7,522,911.20
Business expenses 5,966,754.30 4,043,833.72
Other 28,844,388.93 27,563,420.08
Total 539,443,616.46 590,938,269.71
64. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 156,343,689.26 131,040,859.19
Consulting service fee 50,891,753.84 25,231,173.94
Travel expenses 33,489,616.91 24,781,070.36
Business reception expenses 25,668,457.66 17,726,723.65
Three charge 18,101,534.55 7,800,806.05
Advertising fee 4,844,307.99 1,584,233.98
Stock payable 4,429,212.60
182
2023 Annual Report
Warehousing 3,832,895.90 1,758,083.86
Other 11,936,307.34 11,566,572.57
Total 309,537,776.05 221,489,523.60
65. R&D Expense
In RMB
Items Amount of this period Amount of last period
Labor cost 154,704,802.86 162,914,571.31
Direct materials 86,453,337.62 98,709,801.80
Test and inspection fee 10,013,530.53 4,583,898.71
Stock payable 7,401,707.41
Commissioned research & development 4,943,543.55 5,246,830.91
Depreciation expenses 2,955,244.37 5,331,971.14
Other 10,213,472.64 7,452,809.17
Total 276,685,638.98 284,239,883.04
66. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expense 20,910,664.51 24,366,789.74
Less: Incoming interests 44,289,213.68 18,946,425.24
Exchange gains/losses -14,617,667.37 -38,338,007.69
Commission 6,427,074.37 3,621,245.27
Total -31,569,142.17 -29,296,397.92
67. Other income
In RMB
Items Amount of this period Amount of last period
Government subsidies related to assets 45,124,624.75 29,873,987.51
Government subsidies related to income 45,030,290.95 43,438,557.91
Individual tax commission refunds 313,045.39 418,128.89
VAT additional deduction 22,105,883.57
Total 112,573,844.66 73,730,674.31
68.Net exposure hedging income
69. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
Transactional Financial assets 686,725.67 -646,522.64
Other non-current financial assets 960,000.00
Total 686,725.67 313,477.36
70. Investment income
In RMB
183
2023 Annual Report
Items Amount of this period Amount of last period
Long-term equity investment income by
1,251,609.18 -563,981.22
equity method
Investment income of trading financial assets
-3,955,962.69 -2,689,211.31
during the holding period
Investment income obtained from the
13,420,165.23 36,295,722.69
disposal of trading financial assets
Dividend income from other equity
instrument investments during the holding 364,839.26
period
Dividend income derived from other equity
instrument investments during the holding 108,750,082.40 95,156,322.10
period
Debt restructuring gains 6,496,130.62 7,035,391.36
Total 125,962,024.74 135,599,082.88
Other note：
The investment income from the disposal of long-term equity investment in the current period includes the
investment income of RMB -1,971,507.10 obtained from the transfer of the equity of the former subsidiary the
Sales Company, the investment income of RMB 1,055.26 written off and recognized by the subsidiary China
mechanical and Electrical Institute. and the investment income of RMB 3,222,061.02 written off and recognized by
the subsidiary Zhongrun Company
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Losses on bad debt 82,719,910.10 82,441,348.93
Total 82,719,910.10 82,441,348.93
72. Losses from asset impairment
In RMB
Items Amount of this period Amount of last period
II. Loss of inventory value and
impairment of contract performance -27,668,590.08 -32,352,000.41
costs
V. Impairment loss of fixed assets -1,957,464.80
XII. Loss of impairment of contract
-8,201,559.89 7,911,784.28
assets
Total -37,827,614.77 -24,440,216.13
73. Asset disposal income
In RMB
Source Amount of this period Amount of last period
Non-policy relocation of assets disposal
65,888,315.19
income
Profits of disposal of fixed assets 2,888,752.81 95,281.00
Income from disposal of use assets 28,566.27
Total 68,805,634.27 95,281.00
184
2023 Annual Report
74. Non-operating income
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Compensation income[Note] 58,290,615.54 56,511,643.28 58,290,615.54
No payment required 8,963,540.03 1,136,297.51 8,963,540.03
Loss of non-current assets:
17,327.42 17,327.42
obsolescence gain
Other 12,807.92 2,507.61 12,807.92
Total 67,284,290.91 57,650,448.40 67,284,290.91
Other note：
[Note] The compensation income in the current period mainly consists of: (1) The Company and Hangzhou
Steam Turbine Holdings Company agreed to terminate the two Equipment and Materials Purchase Contract
signed in 2014, and through communication between the two parties, the project default income was recognized
to be RMB 16.378 million; (2) According to the Purchase Order Termination and Settlement Agreement signed
by the Company and INEOS Zhuhai Chemical Co., Ltd., the cooperation with INEOS Zhuhai Chemical Co.,
Ltd. was terminated due to the cancellation of its Kapok project because of the adjustment of project investment
strategy. Through communication between the two parties, the project default income was recognized to be
RMB 16.177 million; (3) According to the Contract Cancellation Agreement signed by Zhongneng Company, a
subsidiary, and Shenyang Turbine Machinery Co., Ltd., the project that has been suspended for a long time due
to the end user's own reasons and has little possibility of restart was cleared and cancelled. Through
communication between the two parties, the project default income was recognized to be RMB 13,481,200.
75. Non-operational expenses
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Compensation expenses 1,663,071.38 1,955,731.38 1,663,071.38
Donations 605,000.00 765,000.00 605,000.00
Non-current assets scrapping
236,510.59 324,233.68 236,510.59
loss
Fine, late payment 74,760.99 45,155.29 74,760.99
Other 35,657.46 40,455.62 35,657.46
Total 2,615,000.42 3,130,575.97 2,615,000.42
76. Income tax expenses
(1) Details
In RMB
Items Amount of this period Amount of last period
Income tax of current term 70,175,325.94 52,728,108.37
185
2023 Annual Report
Deferred income tax -876,620.36 29,964,153.08
Total 69,298,705.58 82,692,261.45
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Amount of this period
Total profit 735,518,046.78
Income tax expense at parent company's applicable tax rate 110,327,707.02
Effect of different tax rates applicable to subsidiaries 15,396,749.00
Adjustment for income tax in prior year 5,670,496.06
Income not subject to tax -16,312,512.36
Effects of non-deductible costs, expenses and losses 4,580,791.10
Impact of additional deductions for R & D expenses -28,593,888.26
Impact of additional deductions for the disabled -437,640.95
Impact of share payments 3,485,886.65
The impact of the tax rate changes on the income tax expenses
-4,144,837.48
at the beginning of the year
impact of temporary differences in deferred income tax assets -2,838,224.29
Impact of deductible losses from previously unidentified
-23,599,166.62
deferred income tax assets
The deductible temporary difference or deductible loss of
5,763,345.71
deferred income tax assets are not recognized in this period
Income tax expense 69,298,705.58
77. Other comprehensive income
For details, please refer to Note X(VII)57
78.Items of Cash flow statement
（1）Cash related to operating activities
Other cash received from business operation
In RMB
Items Amount of this period Amount of last period
Recovery of operating bank deposits 537,561,050.96 199,173,666.41
Deposit interest 44,300,483.94 18,946,425.24
Government subsidies received 38,144,639.45 27,321,284.08
Receipt of operating current account 1,521,930.00 3,936,945.05
Lease income 2,458,358.28 1,091,668.02
Other 674,489.59 667,227.57
Total 624,660,952.22 251,137,216.37
Other cash paid in relation to operation activities
In RMB
186
2023 Annual Report
Items Amount of this period Amount of last period
Payment of operational bank
456,118,090.16 180,292,694.53
deposits
Payment cash sales expenses 132,425,055.62 86,924,480.00
Payment cash Management expenses 90,008,549.35 81,915,119.72
Payment cash R & D cost 24,508,885.58 16,719,251.91
Payment cash financial expenses 6,427,074.37 3,621,245.27
Payment of business transactions 28,189,513.29
Other 727,018.45 950,745.71
Total 738,404,186.82 370,423,537.14
（2）Cash related to Investment activities
Cash receivable related to other Investment activities
In RMB
Items Amount of this period Amount of last period
Repurchasing of trusteeship 1,691,500,000.00 2,430,000,000.00
Receipt of levy and relocation
257,606,998.18 197,297,786.03
compensation
Receive the interest on the funds
192,426.85
occupied by the non-related parties
Total 1,949,106,998.18 2,627,490,212.88
In RMB
Cash paid related with investment activities
In RMB
Items Amount of this period Amount of last period
Purchasing of financial products 1,652,700,000.00 2,077,000,000.00
Loss of forward foreign exchange
181,291.38
settlement and sale
Net cash reduction from the disposal of
8,697,180.39
subsidiaries
Total 1,652,881,291.38 2,085,697,180.39
(3)Cash related to Financing activities
Other cash received in relation to financing activities
In RMB
Items Amount of this period Amount of last period
Discounting payment of financing bill 8,000,000.00
Pay the rent of the right to use the asset 200,000.00
Total 8,000,000.00 200,000.00
Other cash paid related with financing activities
In RMB
Items Amount of this period Amount of last period
Return the related party's capital 182,452,500.00 2,902,611.00
187
2023 Annual Report
occupation and interest
Pay the rent of the right to use the asset 16,446,562.49 15,314,937.25
Financing notes due and payment 8,000,000.00 7,500,000.00
Subsidiary cancels and returns minority
2,986,677.67
shareholders
Repurchase stocks 1,394,403.00 2,197,649.00
Pay discount interest on financing bills 299,777.78
Payment of discounted interest on
245,425,672.29
financing bills
Total 211,579,920.94 273,340,869.54
Changes in various liabilities arising from fund-raising activities
□Applicable Not applicable
(4) Statement of cash flows on a net basis
(5) Major activities and financial impacts that do not involve cash receipts and expenditures in the
current period, but affect the financial position of the enterprise or may affect the cash flow of the
enterprise in the future
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Amount of the previous
Supplementary information Current amount
period
1．Net profit adjusted to cash flow of operation activities:
Net profit 666,219,341.20 625,239,358.69
Add: Assets impairment provision -44,892,295.33 -58,001,132.80
Depreciation of fixed assets, consumption of oil assets and depreciation
163,472,759.10 128,776,068.89
of productive biology assets
Depreciation of right-of-use assets 15,037,790.25 12,582,536.56
Amortization of intangible assets 15,435,729.41 11,461,545.32
Amortization of long-term deferred expenses
Loss from disposal of fixed assets, intangible assets and other long-
-79,667,812.38 -95,281.00
term assets (gain is listed with “-”)
Losses on scrapping of fixed assets (gain is listed with “-”) 219,183.17 326,033.68
Gain/loss of fair value changes (gain is listed with “-”) -686,725.67 -313,477.36
Financial expenses (gain is listed with “-”) 6,229,487.55 -14,033,357.95
Investment loss (gain is listed with “-”) -123,421,856.81 -131,252,902.83
Decrease of deferred income tax asset (increase is listed with “-”) 278,384,531.44 29,931,187.06
Increase of deferred income tax liability (decrease is listed with “-”) -279,261,151.80 32,966.02
Decrease of inventory (increase is listed with “-”) -118,782,583.70 686,701,189.28
Decrease of operating receivable accounts (increase is listed with “-”) -420,744,101.07 409,317,867.69
Increase of operating payable accounts (decrease is listed with “-”) 754,936,135.11 -1,433,059,686.61
Other 44,731,055.15 56,527,890.99
Net cash flow arising from operating activities 877,209,485.62 324,140,805.63
2. Material investment and financing not involved in cash flow
Conversion of debt into capital
Switching Company bonds due within one year
Financing lease of fixed assets
188
2023 Annual Report
3. Net change of cash and cash equivalents:
Balance of cash at period end 2,661,616,581.02 1,805,028,401.76
Less: Balance of cash equivalent at year-begin 1,805,028,401.76 1,467,538,968.07
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increased amount of cash and cash equivalent 856,588,179.26 337,489,433.69
(2) Net cash paid for obtaining subsidiary in the Period
Amount
Cash or cash equivalents paid in the current period as a
102,670,000.00
business combination occurring in the current period
Thereinto:
Western Power Company 102,670,000.00
Less: Cash and cash equivalents held by subsidiaryon the date
59,204,949.63
of purchase
Thereinto：
Western Power Company 59,204,949.63
Add: Cash or cash equivalents paid in the current period for
business combination occurring in prior periods
Thereinto：
Net cash paid foracquiring the subsidiary 43,465,050.37
（3）Net cash received by disposing subsidiary in the Period
Amount
Cash or cash equivalents received from the disposal of
28,920,000.00
subsidiary in the current period
Thereinto：
Sales company 28,920,000.00
Less: Cash and cash equivalents held by subsidiary on the date
28,623,655.33
of loss of control
Thereinto：
Sales company 28,623,655.33
Add: Cash or cash equivalents received in the current period
4,120,000.00
for the disposal of subsidiaries in previous periods
Thereinto：
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co.,
4,120,000.00
Ltd
Net cash received from disposal of subsidiaries 4,416,344.67
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 2,661,616,581.02 1,805,028,401.76
Including: Cash on hand 14,634.65 107,551.80
189
2023 Annual Report
Bank deposit available for
2,661,553,779.47 1,804,892,189.83
payment at any time
Other monetary capital could be used at
48,166.90 28,660.13
any time
III. Balance of cash and cash equivalents
2,661,616,581.02 1,805,028,401.76
at the period end
(5) Situations where the scope of use is limited but still classified as cash and cash equivalents
( 6) Monetary funds that do not belong to cash and cash equivalents
In RMB
Amount of the previous Reason for not belonging to
Item Amount of the current period
period cash and cash equivalents
It is used to pledge for issuing
Bank acceptance bill margin 130,198,606.73 92,639,033.89 bank acceptance bills, and
cannot be paid at any time
It is used to pledge for issuing
L/G margin 5,666,941.75 9,321,352.25 L/G, and cannot be paid at
any time
Foreign exchange trading The account is frozen and
643,000.00
margin cannot be paid at any time
It is used to pledge for issuing
Pledged time deposit 47,973,000.00 bank acceptance bills, and
cannot be paid at any time
The account is frozen and
ETC business margin 43,000.00 19,000.00
cannot be paid at any time
Total 136,551,548.48 149,952,386.14
(7) Description of other major activities
① Changes in liabilities related to fund-raising activities
Increase in the current period
Items Opening amount
Cash change Non-cash change
Short-term loan 287,753,227.89 509,662,465.91 19,096,789.39
Long-term loans (including long-term loans due within
190,541,181.41 125,000,000.00 13,619,703.13
one year)
Other payables-restricted stock repurchase obligations 100,222,346.86
Lease liabilities (including lease liabilities due within
28,499,402.41 23,565,785.86
one year)
Subtotal 607,016,158.57 634,662,465.91 56,282,278.38
（Continued）
Decrease in the current period
Items Ending amount
Cash change Non-cash change
Short-term loans 312,083,617.15 504,428,866.04
190
2023 Annual Report
Long-term loans (including long-term loans due
45,271,710.14 283,889,174.40
within one year)
Other payables-restricted stock repurchase
8,816,649.00 28,965,160.22 62,440,537.64
obligations
Lease liabilities (including lease liabilities due within
15,421,193.51 952,212.50 35,691,782.26
one year)
Subtotal 381,593,169.80 29,917,372.72 886,450,360.34
② Endorsement transfer amount of commercial bills not involving cash receipts and payments
Amount of the same
Items Current amount
period last year
1,304,085,972.09
Amount of commercial bill endorsed and transferred 1,371,516,066.24
1,296,077,749.78
In which: payment for goods 1,371,516,066.24
Payment for the purchase of long-term assets such as fixed 8,008,222.31
assets
80. Note of statement of changes in the owner's equity
81. Monetary items in foreign currencies
(1) Foreign currency monetary items
In RMB
Translated to RMB at end of
Items Balance at end of period Exchange rate
period
Monetary capital 487,221,446.95
Incl：USD 60,657,803.01 7.0827 429,621,021.38
Euro 7,328,307.83 7.8592 57,594,636.90
HKD 6,383.77 0.9062 5,785.10
Yen 71.00 0.0502 3.57
Account receivable 194,405,664.52
Incl：USD 25,602,681.41 7.0827 181,336,111.62
Euro 1,630,308.43 7.8592 12,812,920.01
HKD
SGD 47,726.12 5.3772 256,632.89
Long-term loans
Incl：USD
Euro
HKD
Contract assets 11,264,011.25
Incl：USD 1,590,355.55 7.0827 11,264,011.25
Account payable 16,069,522.46
Incl：USD 1,409,475.91 7.8592 11,077,353.07
Euro 675,979.96 7.0827 4,787,763.26
191
2023 Annual Report
Swedish krona 242,100.00 0.7110 172,129.40
Pound 3,570.00 9.0411 32,276.73
(2) Note to overseas operating entities, including important overseas operating entities, which should be
disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In
case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
82. Leasing
(1) The Company acts as the lessee
Applicable □Not applicable
Variable lease payments that are not included in the measurement of lease liabilities
□Applicable Not applicable
Simplified processing of lease costs for short-term leases or lease for low-value assets
□Applicable Not applicable
Cases involving sale-leaseback transactions
1) Information about the right-to-use assets is detailed in Section X.VII.25 Right-to-use Assets of this report.
2) The Company's accounting policies for short-term leasing and low-value asset leasing are detailed in Section
X.V.41 Lease of this report. The amounts of short-term lease expenses and low-value asset lease expenses
included in the current profits and losses are as follows:
Amount of the same period
Items Current amount
last year
Short-term lease expense 8,815,444.55 3,496,724.77
Low-value asset lease expense (except short-term lease) 7,207.22 2,277.88
Total 8,822,651.77 3,499,002.65
3) Current profits and losses and cash flow related to leasing
Amount of the same period
Items Current amount
last year
Interest expense of lease liabilities 1,369,136.88 1,585,096.61
Total cash outflow related to leasing 16,416,562.49 15,314,937.25
4) Maturity analysis of lease liabilities and the corresponding liquidity risk management are detailed in Section
X.XII.1 Various Risks Arising from Financial Instruments of this report.
(2) The Company acts as the lessor
Operating lease as a lessor
Applicable □Not applicable
Financial lease as a lessor
□Applicable Not applicable
Annual undiscounted lease receipts for the next five years
□Applicable Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
192
2023 Annual Report
Operating lease
1) Lease income
Amount of the same period
Items Current amount
last year
Lease income 2,553,572.87 1,674,164.91
2) Operating lease assets
Ending amount last
Items Ending amount
year
Investment real estate 1,544,449.40 6,451,478.55
Subtotal 1,544,449.40 6,451,478.55
3) According to the lease contract signed with the lessee, the undiscounted lease receipts that will be received in
the future for irrevocably lease
Remaining term Ending amount Ending amount last year
Within 1 year 1,340,896.11 1,261,194.10
1-2 years 678,261.52 843,931.92
2-3 years 312,001.53 705,187.41
3-4 years 229,057.03 151,722.56
4-5 years 48,677.27
Total 2,560,216.19 3,010,713.26
(3) Recognition of financial lease sales gains and losses as a producer or distributor
□Applicable Not applicable
83.Other
VIII. R&D expenditure
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Direct labor 154,704,802.86 162,914,571.31
Direct material 86,453,337.62 98,709,801.80
Test and inspection fee 10,013,530.53 4,583,898.71
Share-based payment 7,401,707.41
Outsourcing R&D 4,943,543.55 5,246,830.91
Depreciation and amortization 2,955,244.37 5,331,971.14
Others 10,213,472.64 7,452,809.17
Total 276,685,638.98 284,239,883.04
Including: expensed R&D expenditure 276,685,638.98 284,239,883.04
1. R&D projects that meet the conditions for capitalization
193
2023 Annual Report
2.Important outsourcing projects under research
IX. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Net profit
Income of
Standard of Cash flow
Acquired acquiree
Time to acquiree of the
Cost of Ratio of way from
point for Purchasin determine from
Acquiree equity equity Equity purchasin buyer to
equity g date the purchasin
obtained obtained obtained g date to the end of
obtained purchasin g date to
way period- the period
g date period-
end
end
The
industrial
Equity and
Western acquisitio commerci
March 102,670,0 March 58,051,67 9,481,721 323,683.1
Power 56.64% n and al
31,2023 00.00 31,2023 7.79 .91 3
Company capital changes
increase were
complete
d
Other note：
In January 2023,according to the first shareholder decision in 2023, the subsidiary Ranchuang Company
signed the "Pengzhou Western Blue Power Technology Co., Ltd. Equity Transaction Framework Agreement"
with Western Power Company, Liaoning Paisen Energy Technology Service Co., Ltd., Liu Yuhuan, Liu Qing
and Jiang Hang, and signed the "Property Rights Transaction Contract" with Chengdu Mengjiang Investment
Group Co., Ltd. at a price not higher than the appraised value of the corresponding equity assets for the record
(1.26 yuan / unit registered capital) acquired 20% of the shares of Western Power Company held by Chengdu
Mengjiang Investment Group Co., Ltd., meanwhile acquiring the 15% equity andthe 3%equityof Western Power
Company held by Liaoning Paisen Energy Technology Service Co., Ltd. and the natural person Liu Yuhuan
respectivelyat a price of 1.27 yuan/unit registered capital, and paying subscription of the registered capital of 43
million yuan increased by Western Power Companyat the price of 1.27 yuan per unit of registered capital.As of
the completion date of the merger, Ranchuang Company acquired a total of 56.64% equity of Western Power
Company, and paid 48.06 million yuan for equity transfer and 54.61 million yuan for capital increase, with a
total merger cost of 102.67 million yuan. As of December 31, 2023, the registration of industrial and
commercial changes related to the equity transfer and capital increase has been completed.
（2）Merger cost and goodwill
194
2023 Annual Report
In RMB
Consolidation cost Western Power Company
--Cash 102,670,000.00
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
-- Fair value of contingent consideration
--Fair value of the equity prior to the purchasing date
--Other
Total combination cost 102,670,000.00
Less: shares of fair value of identifiable net assets acquired 87,254,321.41
The amount by which the goodwill/cost of consolidation is less
15,415,678.59
than the share of fair value of identifiable net assets acquired
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Western Power Company
Fair value on purchasing date Book value on purchasing date
Assets: 179,371,806.49 164,987,094.28
Monetary fund 59,641,949.63 59,641,949.63
Account receivable 27,042,876.04 27,042,876.04
Inventory 17,147,167.62 17,147,167.62
Fixed assets 59,983,481.24 51,340,538.11
Intangible assets 11,642,269.92 5,900,500.84
Other 3,914,062.04 3,914,062.04
Liability: 47,330,344.62 47,259,921.40
Loan 13,016,668.07 13,016,668.07
Account payable 30,717,498.50 30,717,498.50
Deferred income tax liabilities 3,596,178.05
Deferred income 3,525,754.83
Net assets (Note) 132,041,461.87 117,727,172.88
Less: Minority interests 44,787,140.46 38,580,951.44
Net assets acquired 87,254,321.41 79,146,221.44
Note: The net assets on the date of purchase do not include the unpaid capital contribution of 22 million yuan by
Liaoning Paisen Energy Technology Service Co., Ltd., one of the shareholders of Western Power Company
Determination method for fair value of the identifiable assets and liabilities:
On the date of purchase, Ranchuang Company adjusted the fair value of fixed assets and intangible assets and
recognized the corresponding deferred income tax liabilities according to the Assessment Report (BFYSPB Zi
[2022]No. 01-739) issued by Beijing North Asia Assets Assessment Firm (special general partnership) (the
assessment base date was May 31, 2022). Except for fixed assets and intangible assets, other assets and
liabilities did not increase or decrease significantly, and the Company recognized it as fair value according to
the book value on the date of purchase.
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of
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obtained control rights in the Period or not
□YesNo
(5) On purchasing date or period-end of the combination, combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
（6） Other note
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
（2）Combination cost
（3）Book value of the assets and liabilities of the merge at the merger date
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3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities
of the listed companies whether constituted a business and its basis, the determination of the combination costs,
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
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4. The disposal of subsidiary
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
Yes□ No
In RMB
The
difference
between the
Amount
disposal price
transferred
and the share Determinatio
Book Fair from other
of the Percentag n method and
value of value of Gain or loss comprehensiv
subsidiary's e of main
Determinatio remainin remainin from e income
Equity Equity point of net assets at remaining assumptions
Subsidiar Equity n basis for the g equity g equity remeasuremen related to
disposa disposal loss of the equity at of fair value
y name disposal price point of loss on the at the t of remaining equity
l ratio method control consolidated the date of of remaining
of control date of date of equity at fair investment in
financial loss of equity on the
loss of loss of value atomic
statement control date of loss of
control control company to
level control
investment
correspondin
profit and loss
g to the
disposal
investment
Resolut
ions of
shareholders'
meeting,
equity
Sales 28,920,000.0 Agreemen Decembe transfer
30.00% -1,971,507.10 0.00% 0.00 0.00 0.00 0 0.00
Company 0 t transfer r 31,2023
agreement
and industrial
and
commercial
change
198
2023 Annual Report
materials, etc.
Other note：
In January 2023,according to the first shareholder decision in 2023, the subsidiary Ranchuang Company signed the "Pengzhou Western Blue Power
Technology Co., Ltd. Equity Transaction Framework Agreement" with Western Power Company, Liaoning Paisen Energy Technology Service Co., Ltd., Liu Yuhuan,
Liu Qing and Jiang Hang, and signed the "Property Rights Transaction Contract" with Chengdu Mengjiang Investment Group Co., Ltd. at a price not higher than the
appraised value of the corresponding equity assets for the record (1.26 yuan / unit registered capital) acquired 20% of the shares of Western Power Company held by
Chengdu Mengjiang Investment Group Co., Ltd.,The registration procedures for industrial and commercial changes was completed on December 21, 2023 for this
equity transfer. The net assets of the Sales Company at the end of December 2023 were RMB 54,488,224.22, and the Company enjoyed the net assets of the Sales
Company of RMB 16,346,467.26 according to the 30% shareholding ratio. The difference between the net assets and the disposal price of RMB 28,920,000.00 was
recognized as investment income of RMB 12,573,532.74; At the same time, in 2021, the Company transferred 30% equity of the Sales Company to Hangzhou
Steam Turbine Holdings Company, and the difference between the consideration paid by the merger and the net assets of the merged party on the date of merger of
RMB 14,478,455.50 was adjusted and reduced the capital reserve-share capital premium. When the Company transferred all the equity of the Sales Company to
Hangzhou Steam Turbine Holdings Company in the current period and lost control, it adjusted accordingly to increase the capital reserve-share capital premium and
to reduce the investment income by RMB 14,478,455.50; In addition, at the end of 2023, the Company and its subsidiaries recognized the long-term lease of its
subsidiary Industrial and Trade Company because the Sales Company was no longer included in the scope of consolidated statements, and accordingly recognized
the investment income of RMB -66,584.34; Total recognized investment income is RMB -1,971,507.10
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Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
□ Yes √ No
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5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
Net assets on disposal Net profit from opening
Name Equity disposal method Equity disposal point
date to disposal date
Zhongrun Company Log off 2023.12.28 3,268,288.89 -3,919,136.51
China mechanical and
Electrical Institute
Log off 2023.12.5 3,152,641.02 275,421.92
6.Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
In RMB
Main Share-holding ratio
Registered Business Acquired
Subsidiary Registered capital operation
place nature Directly Indirectly way
place
Auxiliary Hangzho
80,000,000.00 Hangzhou Commerce 87.53% Incorporation
Machine Co. u
Guoneng Hangzho Manufacturin
40,000,000.00 Hangzhou 100.00% Incorporation
Company u
g
Packaged Hangzho
Technologies 51,000,000.00 Hangzhou Commerce 75.86% Incorporation
Co.
u
Hangzho Manufacturin
Machinery Co. 30,000,000.00 Hangzhou 82.00% Incorporation
u
g
Huayuan Hangzho Manufacturin
21,000,000.00 Hangzhou 100.00% Incorporation
Company u
g
Hangzho
Turbine Co. 20,000,000.00 Hangzhou Commerce 100.00% Incorporation
u
Zhongneng Hangzho Manufacturin
120,000,000.00 Hangzhou 46.89% Incorporation
Company u
g
Business
Hangfa Hangzho Manufacturin consolidation
80,000,000.00 Hangzhou 100.00%
Company u under the
g same control
Casing Hangzho Manufacturin
29,500,000.00 Hangzhou 38.03% Incorporation
Company u
g
Anhui Casting
130,000,000.00 Wuhu Wuhu Manufacturin 51.54% Incorporation
Company
201
2023 Annual Report
g
Business
Hangzho Manufacturin consolidation
New Energy Hangzhou
500,000,000.00 100.00% under the
Company u same control
g
Business
Hangzho Manufacturin consolidation
Ranchuang Hangzhou
155,000,000.00 100.00% under the
Companyp u same control
g
Business
Manufacturin consolidation
Western Power Peng
143,000,000.00 Pengzhou 56.64% Not under
Company Zhou the same
g
control
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
(1) In December 2022, the subsidiary Zhongneng Company introduced strategic investors and simultaneously
implemented employee shareholding, resulting in the Company's shareholding ratio falling from 60.83% to
46.89%. Since the shareholding ratio of the Company still exceeds 1/3, the three of the seven directors are
appointed by the Company, and two other directors have signed the "Concerted Action Person Agreement" with
the Company, thus the Company controls Zhongneng Company.
(2) In December 2018, the subsidiary Casting & Forging Company introduced external strategic investors,
resulting in the Company's shareholding ratio falling from 51% to 38.03%. Since the Company still holds more
than 1 / 3 equity and holds three of the five board seats, it has control over the casting company.
(2) Significant not wholly owned subsidiary
In RMB
Gains/loss of the Dividend announced in Balance of equity of
Name of the Share portion of minor
period attributable to the period to minor minor shareholders at
subsidiaries shareholders
minor shareholders shareholders end of period
Machinery Co. 18.00% 49,093,274.53 28,800,000.00 50,079,787.77
Zhongneng
Company 53.11% 68,726,506.65 228,020,177.14
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2023 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
End of term Beginning of term
Subsidiaries
Non-current Current Non-current Total of Non-current Current Non-current Total of
Name Current assets Total of assets Current assets Total of assets
assets liabilities liabilities liability assets liabilities liabilities liability
Machinery
Co. 397,257,565.60 25,526,332.85 422,783,898.45 143,315,955.64 1,246,899.64 144,562,855.28 341,338,629.47 27,559,634.57 368,898,264.04 132,131,820.03 4,453,089.98 136,584,910.01
Zhongneng
Company 1,752,124,738.59 311,404,723.64 2,063,529,462.23 1,351,153,891.27 283,053,637.87 1,634,207,529.14 1,592,257,465.58 256,916,512.99 1,849,173,978.57 1,277,138,143.86 271,091,873.73 1,548,230,017.59
In RMB
Amount of current period Amount of previous period
Subsidiaries Name Total Misc Total Misc Cash flow for business
Turnover Turnover Net profit Turnover Net profit
Gains Gains activities
Machinery Co. 378,044,818.89 102,277,655.21 102,277,655.21 89,513,073.09 306,871,315.89 95,410,281.94 95,410,281.94 87,100,058.13
Zhongneng
Company 1,350,099,692.90 129,399,937.58 129,399,937.58 8,025,373.43 1,477,489,208.21 78,762,807.47 78,499,653.68 -108,465,527.91
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
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2023 Annual Report
2. The transaction of the Company with its owner’s equity share changed but still controlling the
subsidiary
(1) Note to owner’s equity share changed in subsidiary
Change time Shareholding ratio before Shareholding ratio after
Subsidiaries Name change change
Machinery Co. 2023.12.26 52.00% 82.00%
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity
of the parent company
In RMB
Cost/disposal consideration
--Cash 121,635,000.00
-- Fair value of the non-cash assets
Total purchase cost/disposal consideration 121,635,000.00
Less: share of net assets of subsidiaries calculated according to
83,466,312.96
the proportion of equity acquired/disposed of
Difference 38,168,687.04
Including: adjustment of capital reserve 38,168,687.04
Adjustment of Surplus reserve
Adjustment of the minority shareholders' equity
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
（2）Major joint ventures and associates
(3) Main financial information of significant associated enterprise
(4) Summary financial information of insignificant joint venture or associated enterprise
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
(6) The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
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2023 Annual Report
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statements
6.Other
XI. Government subsidy
1. Government subsidies recognized according to the receivable amount at the end of the reporting period
□Applicable Not applicable
The reason for not receiving the estimated amount of government subsidies at the expected point in time
□Applicable Not applicable
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2023 Annual Report
2. Liabilities involving government subsidies
Applicable □Not applicable
In RMB
Amount included in Amount transferred to
Beginning New subsidy amount Other changes in the Related to
Accounting subject non-operating income other income in the Closing balance
balance in the current period current period assets/income
in the current period current period
Deferred income-Compensation for
-9,073,485.95(Note
expropriation and relocation[Note 865,739,777.28 249,024,441.63 45,055,654.75 1,060,635,078.21 Related to assets
2)
1]
Deferred income- Compensation for
Related to
expropriation and relocation[Note 7,953,100.69 7,953,100.69
income
1]
Deferred income- other subsidies 275,880.00 68,970.00 206,910.00 Related to assets
Deferred income- other subsidies 11,365,472.57 8,954,440.00 11,491,189.37 8,828,723.20 Related income
Special payable- subsidy for Related to
6,234,947.69 4,382,450.00 775,429.23 9,841,968.46
personnel training funds income
Special payable- Compensation for -3,127,668.06(Note
2,498,212.20 629,455.86
expropriation and relocation 3)
Subtotal 886,114,289.74 270,943,888.18 65,344,344.04 -12,201,154.0 1,079,512,679.87
[Note 1] In accordance with the provisions of the Interpretation No. 3 of the Accounting Standards for Business Enterprises, the Company shall include special
payables when it receives policy-based expropriation compensation, and when it compensates for the expropriation losses and newly built assets, it shall be
transferred from the special payables to deferred income
[Note 2] It’s due to change of the scope of consolidation that transferred out the deferred income of RMB 9,073,485.95 of the sales company
[Note 3] The subsidiary machinery company will be the policy relocation compensation balance into the capital reserves - other capital reserve
3. Government subsidies included in the current profit and loss
Applicable □Not applicable
In RMB
Accounting items Amount incurred in the current period Amount incurred in the previous period
Amount of government subsidies
90,154,915.70 73,312,545.42
included in other income
Impacted amount of financial discount 12,777.79
206
2023 Annual Report
on total profit
Total 90,167,693.49 73,312,545.42
Other note：
207
2023 Annual Report
XII. Risks related to financial instruments
1. Risks related to financial instruments
The objective of the Company’s risk management is to achieve a balance between the risk and gains. Constrain
the negative influence on business operation to the lowest limit, and maximum the interests of shareholders and
other equity holders. With regard to this target, the basic policies of the Company are; locate and analyse the risks,
set appropriate bottom line for risks, and manage and monitor on each risk and constrain them in a certain extent.
Risks attached to financial instruments are mainly credit risks, liquidity risks, and market risks.
The following risk managing policies have been examined and approved by the management:
(I) Credit risks
Credit risks are introduced when one party of the financial instrument failed to exercise its liabilities and then
caused financial loss to another.
1. Credit risk management practice
(1) Evaluation method of credit risk
On each balance sheet date, the company evaluates whether the credit risk of relevant financial instruments
has increased significantly since the initial confirmation. When determining whether the credit risk has increased
significantly since the initial confirmation, the company considers to obtain reasonable and reliable information
without unnecessary extra costs or efforts, including qualitative and quantitative analysis based on historical data,
external credit risk rating and forward-looking information. Based on a single financial instrument or a
combination of financial instruments with similar credit risk characteristics, the company compares the risk of
default of financial instruments on the balance sheet date with the risk of default on the initial confirmation date to
determine the change of default risk of financial instruments during their expected duration.
When one or more of the following quantitative and qualitative criteria are triggered, the company believes
that the credit risk of financial instruments has increased significantly:
1) The quantitative standard is mainly that the probability of default for the remaining duration on the
balance sheet date rises by more than a certain proportion compared with the initial confirmation;
2) Qualitative criteria mainly include significant adverse changes in the debtor's operation or financial
situation, changes in existing or expected technology, market, economic or legal environment, and significant
adverse effects on the debtor's repayment ability of the company.
(2) Definition of default and credit impairment assets
When a financial instrument meets one or more of the following conditions, the company defines the
financial asset as having defaulted, and its criteria are consistent with the definition of having incurred credit
impairment:
1) The debtor has major financial difficulties;
2) The debtor violates the binding provisions on the debtor in the contract;
3) The debtor is likely to go bankrupt or undergo other financial restructuring;
4) The creditor gives concessions that the debtor will not make under any other circumstances due to
economic or contractual considerations related to the debtor's financial difficulties.
2. Measurement of expected credit loss
Key parameters of expected credit loss measurement include default probability, loss given default and
default risk exposure. The company considers the quantitative analysis and forward-looking information of
historical statistical data (such as counterparty rating, guarantee method, collateral type, repayment method, etc.)
to establish default probability, loss given default and default risk exposure models.
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3. Please refer to Notes X (7)4,5,6,8 and 17 of these financial statements for details of the reconciliation statement
of the opening balance and closing balance of the financial instrument loss reserve.
4. Credit risk exposure and credit risk concentration
The company's credit risk mainly comes from monetary funds and receivables. In order to control the above-
mentioned related risks, the company has taken the following measures respectively.
(1) Monetary fund
The company deposits bank deposits and other monetary funds in financial institutions with high credit rating, so
its credit risk is low.
(2) Account receivable
The Company performs credit assessment on the clients on periodic and constant basis. Results suggested by the
assessment are used by the Company to determine clients with higher ranks and to overlook the rest. This was
conducted to avoid risks brought by material bad debts.
As the Company only does business with recognized and reputable third parties, so no collateral is needed.
Credit risks are centralized managed in accordance with customers. As of December 31,2023, the Company has
a characteristic of specific credit risk concentration. 34.61% (December 31,2022: 37.17%) of the Company's
accounts receivable comes from the top five customers. The Company does not hold any collateral or other
credit enhancement for the balance of accounts receivable.
The maximum credit risk exposure the company is subject to is the book value of each financial asset in the
balance sheet.
(II) Liquidation risks
Liquidation risks are the possibilities of short in cash at fulfilling liabilities of payment or settlement for financial
assets. They may be caused by failing to cash financial assets at fair value instantly; debtors’ failing of paying
debts due; debts due before schedule; or failing of generating expected cash flow.
To handle these risks, the Company adopted multiple measures such as note clearance and bank loans. Long-
term and short-term financing approaches were used to maintain balance between constancy and flexibility. The
Company has obtained credit from multiple banks to satisfy the needs of business operation and capital output.
Categorizing of financial liabilities on remained period to due
Year-end balance
Items
Book value Contract amount not discounted within 1 year 1-3 years Over 3 years
Bank loans 788,318,040.44 812,028,339.70 581,556,041.73 230,472,297.97
Notes payable 481,424,952.96 481,424,952.96 481,424,952.96
Account payable 1,409,130,502.72 1,409,130,502.72 1,409,130,502.72
Other payable 151,669,883.07 151,669,883.07 151,669,883.07
Lease liabilities[Note] 35,691,782.26 36,975,758.52 20,561,705.82 15,395,787.98 1,018,264.72
Subtotal 2,866,235,161.45 2,891,229,436.97 2,644,343,086.30 245,868,085.95 1,018,264.72
(Continued）
Items Year-beginning balance
Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Bank loans 478,294,409.30 501,882,838.03 331,194,021.29 119,282,104.41 51,406,712.33
Notes payable 411,886,347.73 411,886,347.73 411,886,347.73
Account payable 1,202,915,727.29 1,202,915,727.29 1,202,915,727.29
Other payable 203,788,336.85 203,788,336.85 203,788,336.85
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2023 Annual Report
Items Year-beginning balance
Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Lease liabilities 28,499,402.41 30,325,807.64 13,119,175.05 14,501,193.61 2,705,438.98
Subtotal 2,325,384,223.58 2,350,799,057.54 2,162,903,608.21 133,783,298.02 54,112,151.31
Note: Exclusive of Long-term payable—Restructured withholding and special payables
(III) Market risks
Market risks are those brought by change of fair value or expectable cash flow of financial instruments due to
change of market prices, mainly interest risks and exchange rate risks.
1. Interest risks
Interest risks are those brought by change of fair value or expectable cash flow of financial instruments due to
change of interest rates, mainly regards the loans at floating interest rates.
Fixed-rate interest-bearing financial instruments expose the Company to fair value interest rate risks, while
floating-rate interest-bearing financial instruments expose the Company to cash flow interest rate risks. The
Company determines the ratio of fixed interest rate to floating interest rate financial instruments according to
the market environment, and maintains an appropriate portfolio of financial instruments through regular review
and monitoring. The cash flow interest rate risk faced by the Company is mainly related to the bank borrowings
with floating interest rates.
As of December 31, 2023, the company's bank borrowings with floating interest rate were RMB
293,600,000.00 (December 31, 2022: RMB160,000,000.00). Under the assumption that other variables remain
unchanged, assuming that the interest rate changes by 50 benchmark points, there will be no significant impact
on the company's total profits and shareholders' equity.
2. Foreign currency risks
Foreign currency risks (exchange rate risks) are those caused by change of fair value or expectable cash
flow of financial instruments due to fluctuation of exchange rates. These risks are mainly related to foreign
currency assets and liabilities. The Company operates in mainland China and mostly uses RMB as standard
currency, therefore no major risks regarding exchange rates. For details of foreign currency assets and liabilities,
please go to the descriptions in the notes to the consolidated financial statements.
Details of the company's foreign currency monetary assets and liabilities at the end of the period are
described in note X (VII)81 to the Financial Statements.
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable Not applicable
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2023 Annual Report
(2) The Company conducts qualified hedging business and applies hedge accounting
（3） The Company conducts hedging business for risk management and expects to achieve risk
management objective but does not apply hedge accounting
□Applicable Not applicable
3. Financial assets
(1) Classification of transfer methods
□Applicable Not applicable
(2) Financial assets that have been derecognized as a result of a transfer
□Applicable Not applicable
(3) Financial assets of continued involvement in asset transfer
□Applicable Not applicable
XIII. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fair value Fair value Fair value
Items
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
I. Consistent fair value
-- -- -- --
measurement
一Consistent fair value
measurement
1. Transactional financial
assets and other non-current 1,960,706.24 724,756.61 571,736,794.47 574,422,257.32
financial assets
Financial assets classified as
fair value through profit or 1,960,706.24 724,756.61 571,736,794.47 574,422,257.32
loss
Structure deposit 536,200,000.00 536,200,000.00
Financing product 30,002,021.25 30,002,021.25
Equity instrument
1,960,706.24 5,534,773.22 7,495,479.46
investment
Derivative financial assets 724,756.61 724,756.61
2. Financing receivable 756,873,166.56 756,873,166.56
3. Other equipment
2,721,470,812.06 2,721,470,812.06
instrument investment
Total liabilities of consistent
2,723,431,518.30 724,756.61 1,328,609,961.03 4,052,766,235.94
fair value measurement
211
2023 Annual Report
II. Non-continuous fair value
-- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The company adopts unadjusted quotations on active markets for the same assets that can be obtained on
the measurement date.
3. Continuous and non-continuous Second-
level fair value measurement items, using valuation techniques and qualitative and quantitative information on i
mportant parameters
4. Continuous and noncontinuous thirdlevel fair value measurement items, using valuation techniques an
d qualitative and quantitative information on important parameters
1. For held short-
term wealth management products with floating income and equity instrument investments, the company adopte
d valuation techniques for fair value measurement, mainly using a discounted future cash flow model.
2. Financing of receivables means that the measurement mode held by the company is bills receivable that
are measured at fair value and whose changes are included in other comprehensive income. Cost represents the
best estimate of fair value, so the cost is used to confirm its fair value .
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XIV. Related party and related Transaction
1. Information related to parent company of the Company
Shareholding ratio
Name of the parent Voting ratio in the
Registered place Business nature Registered capital in the Company
company Company (%)
(%)
Turbine Holdings Hangzhou Manufacturing 800 million 58.68% 58.68%
Notes
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of
the Company.
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2023 Annual Report
2.Subsidiaries of the enterprise
For details of the subsidiary, see note X,10,1 to the financial statements.
3. Information on the joint ventures and associated enterprises of the Company
4.Other related parties of the Company
Name of other related parties Relationship with the Company
Hangzhou Capital The parent company of Hangzhou Steam Turbine Holdings
Hangzhou Xiangjiang Technology Co., Ltd. A subsidiary enterprise of Hangzhou Turbine Holdings
Hangzhou Guoyu Property Manaagement Co.,Ltd. A subsidiary enterprise of Hangzhou Turbine Holdings
A subsidiary enterprise of Hangzhou Turbine Holdings, was
Hangzhou Turbine Compressor Co., Ltd.
cancelled on September 6, 2023
Hangzhou Oxygen Group Co., Ltd Affiliated enterprise of Hangzhou Capital
Hangzhou Oxygen Turbine Machinery Co., Ltd Affiliated enterprise of Hangzhou Oxygen
Hangzhou Oxyen Expander Machine Co., Ltd. Affiliated enterprise of Hangzhou Oxygen
Hangzhou Oxyen Cryogenic Container Co., Ltd Affiliated enterprise of Hangzhou Oxygen
Hangzhou Oxyen Tooling Pump Co., Ltd Affiliated enterprise of Hangzhou Oxygen
Hangzhou Oxygen Machine Research Institute Co., LTD Affiliated enterprise of Hangzhou Oxygen
Greenesolpower systems PVT Ltd. shareholding enterprise of the company
Original Subsidiary, which completed the equity transfer at the
Sales Company end of December 2023, became an associated enterprise of
Hangzhou Steam Turbine Holdings Company
The subsidiary of the Sales Company was transferred out along
with the equity transfer of the Sales Company at the end of
Industry and trade Company
December, 2023, and became a subsidiary of the affiliated
enterprise of Hangzhou Steam Turbine Holdings Company
5.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
Amount of Amount of
Content of
Over the trading Amount of last
Related parties related
current previous period limit or not? period
transaction
period
Hangzhou Oxyen Tooling Pump Co., Regulating
128,318.59 150,000.00 No 292,917.77
Ltd value
Technical
Greenesol power systems PVTLtd. 89,172.00 1,000,000.00 No 1,389,571.62
service
Hangzhou Oxygen Turbine Machinery
Part 1,800,000.00 No 1,785,840.69
Co., Ltd
Hangzhou Oxygen Machine Research
Test 4,528.30
Institute Co., Ltd
Subtotal 217,490.59 2,950,000.00 No 3,472,858.38
Related transactions regarding sales of goods or providing of services
In RMB
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2023 Annual Report
Subjects of the
Related parties Current term Same period of last term
related transactions
Hangzhou Oxygen Co., Ltd Auxiliary 8,849,557.53 21,824,796.49
Greenesolpower systems PVT Ltd. Part 3,355,861.57 2,974,801.65
Hangzhou Oxyen Expander Machine Co.,
Auxiliary, Part 415,929.20 104,424.77
Ltd.
Hangzhou Oxyen Cryogenic Container Co.,
Transport service 30,733.94 87,981.66
Ltd
Hangzhou Turbine Material repair 4,344.52
Subtotal 12,652,082.24 24,996,349.09
(2) Related trusteeship/contract
(3) Information of related lease
- The company was lessee：
In RMB
Variable lease
Rental charges for payments not
Interest expenses
short-term and included in lease Increased use right
Rent paid on lease liabilities
low-value assets liabilities assets
assumed
(if any) measurement (if
any)
Categor
y of
Lessor
leased Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
assets
t of t of t of t of t of t of t of t of t of t of
current previou current previou current previou current previou current previou
period s period period s period period s period period s period period s period
Hangzh
ou
Xiangji House
ang and 1,145,4 1,145,4 181,034 225,264
Technol Buildin 95.20 95.20 .56 .58
ogy g
Co.,
Ltd.
Industr
House 689，
y and
and 2143.2
trade
Buildin 9[Note
Compa
g ]
ny
[Note] Due to the fact that the sales company of the subsidiary is no longer included in the scope of the
consolidated statement, the original book value of the increased right-to-use assets for the long-term lease of its
subsidiary, the Industrial and Trade Company, was recognized at the end of 2023
（4）Related-party guarantee
214
2023 Annual Report
(5) Inter-bank lending of capital of related parties
（6）Related party asset transfer and debt restructuring
（7） Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 14,664,240.90 13,050,763.17
(8) Other related transactions
1) Equity acquisition
In December 2023, the Company transferred its 30% equity in the sales company to Hangzhou Steamship
Holding Company at a price of RMB 28,920,000.00.
2) Equity transfer
In December 2023, the Company transferred 30% equity of the Sales Company to Hangzhou Steam
Turbine Holdings Company at a price of RMB 28,920,000.00.
3) Trademark royalty
The Company may exclusively use the registered trademark owned by Hangzhou Steam Turbine Holdings
Company for free in the current period.
4) Exclusive license of intangible assets
In the current period, the Company exclusively uses 82 patents, 6 software copyrights, non-patented
technologies and R&D achievements related to the 50MW power gas turbine R&D project (i.e. licensed project)
owned by Hangzhou Steam Turbine Holdings Company for free.
5) Other
In the current period, due to the settlement agreement signed by the end user and Hangzhou Steam Turbine
Holdings Company, the corresponding Hangzhou Steam Turbine Holdings Company signed a contract
termination agreement with the Company, and the Company recognized the liquidated damages income of
Hangzhou Steam Turbine Holdings Company of RMB 16,378,000.00.
6. Receivables and payables of related parties
（1）Receivables
In RMB
End of term Beginning of term
Name Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account
Greenesol power systems PVT Ltd. 15,024,890.99 14,990,316.19 14,774,392.59 14,738,519.62
receivable
Hangzhou Oxyen Turbine
6,666,500.00 6,376,000.00 7,847,500.00 7,847,500.00
Machinery Co., Ltd.
Hangzhou Oxyen Co., Ltd. 275,000.00 13,750.00
215
2023 Annual Report
Hangzhou Steam Turbine
59,000.00 59,000.00
Compressor Co., Ltd’
Hangzhou Oxyen Cryogenic
46,600.00 2,330.00
Container Co., Ltd
Subtotal 21,966,390.99 21,380,066.19 22,727,492.59 22,647,349.62
Financing Hangzhou Oxyen Turbine
2,500,000.00
receivable Machinery Co., Ltd.
Hangzhou Oxyen Co., Ltd. 7,050,000.00
Subtotal 2,500,000.00 7,050,000.00
Hangzhou Xiangjiang Technology
Other receivable 601,384.98 360,830.99 601,384.98 180,415.49
Co., Ltd.
Industry and trade Company 121,091.88 6,054.59
Subtotal 722,476.86 366,885.58 601,384.98 180,415.49
Constract assets Hangzhou Oxyen Co., Ltd. 3,719,000.00 310,650.00 2,823,000.00 141,150.00
Hangzhou Oxyen Expander
47,000.00 2,350.00
Machine Co., Ltd.
Hangzhou Oxyen Turbine
489,000.00 48,900.00
Machinery Co., Ltd.
Subtotal 3,766,000.00 313,000.00 3,312,000.00 190,050.00
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Account
Sales Company 15,451,123.39
payable
Industry and trade Company 2,360,725.17
Greenesol power systems PVT Ltd. 1,857,484.54 2,625,853.11
Hangzhou Oxyen Turbine Machinery Co.,
106,194.68 557,522.07
Ltd.
Hangzhou Oxyen Tooling Pump Co., Ltd 128,316.00
Subtotal 19,775,527.78 3,311,691.18
Notes Payable Industry and trade Company 600,000.00
Sales Company 330,000.00
Subtotal 930,000.00
Constract Hangzhou Oxyen Turbine Machinery Co.,
3,584,070.80
liabilities Ltd.
Greenesol power systems PVT Ltd. 41,208.81 640,216.61
Turbine Holdings 14,493,805.32
Hangzhou Oxyen Co., Ltd. 3,539,823.01
Hangzhou Oxyen Expander Machine Co.,
124,778.76
Ltd.
Subtotal 3,625,279.61 18,798,623.70
Other payable Turbine Holdings 211,830.51 15,211,830.51
Sales Company 100,000.00
Subtotal 311,830.51 15,211,830.51
Lease liabilities Industry and trade Company 4,290,971.40
Hangzhou Xiangjiang Technology Co., Ltd. 3,085,078.68 4,049,539.32
Subtotal 7,376,050.08 4,049,539.32
7. Related party commitment
8.Other
216
2023 Annual Report
XV. Stock payment
1. The Stock payment overall situation
√ Applicable □ Not applicable
In RMB
Grant in the current Exercise in the current Unlocking in the current Failure in the current
Grant object period period period period
category
Qty Amount Qty Amount Qty Amount Qty Amount
Management staff 9,254,045 33,672,577.14 434,803 1,579,155.31
Total 9,254,045 33,672,577.14 434,803 1,579,155.31
[Note] The number of original shares unlocked in the current period is 5,932,080, and the number of invalid
original shares is 278,720. Those in the table are all after previous bonus shares, with 3 bonus shares for every
10 shares in the 2021 profit distribution plan and 2 bonus shares for every 10 shares in the 2022 profit
distribution plan.
Stock options or other equity instruments issued at the end of the period
√ Applicable □Not applicable
Grant object Other equity instrument s outstanding at the end of the period
Strike price Range Remaining term of the contract
Management personnel, R& D personnel, The price of restricted shares initially The lock-up period for the first grant and
Sales personnel, production personnel granted in September 2021 and reserved reserved grant of restricted shares is 24
for grant in December 2021 was months, 36 months and 48 months
HK$ 6.625 per share. respectively from the date of completion
of the registration of restricted shares.
Other note:
(1) Restricted stocks released in the current period
According to the Proposal on Achievement of Partial First-phase Lifting of Restricted Sale of the First
Grant Part of Restricted Stock Incentive Plan in 2021, which was reviewed and passed by the Third Meeting of
the Ninth Board of Directors and the Third Meeting of the Ninth Board of Supervisors in 2023, as of October 23,
2023, the first period for restricted sale of restricted stock of first grant in 2021 in the equity incentive plan has
expired. The number of restricted stocks that can be lifted for restricted sale is 9,254,045 shares.
(2) Restricted stock that lapses in the current period
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks reviewed and
passed by the Third Meeting of the Ninth Board of Directors and the Third Meeting of the Ninth Board of
Supervisors in 2023, 14 of the incentive objects of the restricted stock incentive plan of the Company in 2021
are no longer qualified for incentive objects due to retirement and 3 due to resignation because of personal
reasons; Two people are no longer qualified for incentive objects because their performance assessment results
are not good or above, and some restricted stocks in the first lifting period do not meet the conditions for lifting
the restricted sales. The above-mentioned retirees can still release the restricted sale of the corresponding shares
according to the agreed conditions according to their specific tenure in the performance assessment period, and
the remaining restricted sale that have not been released from the restricted sale shall not be released from the
restricted sale, and the Company will repurchase and cancel them according to the granted price plus the interest
of bank deposits in the same period; The above-mentioned restricted stocks that have been granted but have not
been released from the restricted sale of the former employees shall be subject to repurchase cancellation by the
Company according to the granted price. The above-mentioned restricted stocks whose restrict sales cannot be
lifted in the current period due to personal performance assessment results shall be repurchased and cancelled
by the Company according to the grant price. The number of restricted stocks cancelled in this repurchase is
217
2023 Annual Report
RMB 434,803, and the repurchase price that the Company should pay for this restricted stock repurchase is
RMB 1,394,403.00. The above-mentioned repurchased and cancelled restricted stocks are verified by Pan-
China Certified Public Accountants (special general partnership), who issues the Capital Verification Report
(TJY [2023] No.716). Upon the audit and confirmation by Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited, this repurchase and cancellation of restricted stocks were completed on January
2, 2024. The Company has completed the industrial and commercial change registration procedures on January
5, 2024.
2. Equity-settled share-based payment
√ Applicable □Not applicable
In RMB
Significant parameters of fair value of equity instruments on the grant date Closing price on the grant date
Basis for determining the number of unlockable equity instruments Best estimate of the number of unlocked
Cumulative amount of equity-settled share-based payment included in capital
116,237,990.12
reserve
Total expenses recognized for equity-settled share-
44,897,248.13
based payments in the current period
Other note：
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Applicable □Not applicable
In RMB
Grant object category Equity-settled share-based payment fees Cash-settled share-based payment fees
Management staff 24,517,471.39
R&D staff 7,401,707.41
Sales staff 4,429,212.60
Production staff 8,548,856.73
Total 44,897,248.13
5. Revised and termination on share-based payment
6. Other
XVI. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
As of December 31, 2023, the outstanding balance of L/G issued by the Company and its subsidiaries in
relevant banks was EUR 55,483,160.00 and SEK 450,954,750.00, and the outstanding balance of L/G was USD
12,790,931.50, EUR 1,576,354.20 and RMB 1,132,729,597.18.
218
2023 Annual Report
II Contingency
(1) Significant contingency at balance sheet date
In October 2019, Hesheng Electric (Shanshan) Co., Ltd (hereinafter referred to as Hesheng Company) filed a
lawsuit against Zhongneng Company in the Turpan Intermediate People's Court, requesting to cancel the
"25MW Backpressure Steam Turbine and Auxiliary Equipment Sales Contract" (contract number: SSDY-2016-
019, the total contract price is 5.75 million yuan) signed by the two parties, and Zhongneng Company to refund
the paid amount of 4.76 million yuan of goods payment and compensate 66.29 million yuan for various losses.
In March 2021, the Turpan Intermediate People's Court issued the Civil Mediation Letter, according to which
after completing the maintenance of the rotor and accessories and reinstalling and debugging the steam turbine
unit to achieve 72+24-hour smooth operation, Hesheng Company shall pay the maintenance fee of 1.193
million yuan and the final payment of the contract of 1.19 million yuan; and if the delivered steam turbine unit
has quality problems and cannot be started and used normally due to reasons attributable to Zhongneng
Company, Zhongneng Company needs to refund the received payment of 4.76 million. After the mediation
letter came into effect, Zhongneng completed the maintenance, installation and commissioning work according
to the agreement, the steam turbine unit was connected to the grid and operated with load, and Hesheng
Company unilaterally stopped the operation of the equipment on the grounds of defectselimination. On April 7,
2022, Hesheng filed a lawsuit in the People's Court of Shanshan, Xinjiang Uygur Autonomous Region, arguing
that the steam turbine unit delivered by Zhongneng after completing the maintenance still can not be started and
used normally, and regarded as the purpose of the contract can not be achieved, and demanded to terminate the
original contract and Zhongneng Company refunds the paid amount of 4.76 million yuan and compensates
various losses of 89.55 million yuan (including 3.55 million yuan for third-party procurement price difference,
85 million yuan for production loss and 1 million yuan for labor loss). In May 2022, Zhongneng countersued
Hesheng Company for continued to perform the original contract, requiring it to pay maintenance fees of 1.193
million yuan and the final payment of 1.19 million yuan of the contract. As of the date of approval of this
financial report, the case has not yet been tried.
On January 4, 2023, Shanshan County People's Court entrusted Zhejiang Testing & Inspection Institute for
Mechanical and Electrical Products Quality Co.,Ltd. to appraise the 25MW back-pressure steam turbine
involved. On March 12, 2023, Zhejiang Testing & Inspection Institute for Mechanical and Electrical Products
Quality Co.,Ltd. appraised the unit in Hesheng Company, and on August 18, 2023, it issued the Appraisal
Opinion ([2023] JDZJ Zi No.050): "According to the operation condition on September 28, 2021, the problems
of vibration and differential expansion have been eliminated, and other factors have no impact on the
continuous start-up and smooth operation for 72+24 hours, that is, the turbine involved can continue to start-up
and operate smoothly for 72+24 hours under the operation condition on September 28, 2021."
Because the appraisal time was too long, which affected the trial limit, the Shanshan County People's Court
did not accept the lawsuit of Hesheng Company and the counterclaim of Zhongneng Company, and both parties
were requested to resubmit the litigation materials for prosecution. Zhongneng Company submitted the
materials of March 2024, and Hesheng Company has not resubmitted the litigation materials.
As of the date of approval of the financial statements, the case has not yet been heard.
219
2023 Annual Report
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XVII. Events after balance sheet date
1. Significant events had not adjusted
2. Profit distribution
According to the 2023 annual profit distribution plan reviewed and passed at
the 6th Meeting of the 9th board of directorof the Company on April 28,2024, Based
on the Company's total share capital of 1,175,444,400 shares at the end of 2023, after
Profit or dividend proposed to be distributed deducting 434,803 treasury shares repurchased in December 2023 due to the
retirement and resignation of equity incentive objects, that is, based on
1,175,009,597 shares, a cash dividend of RMB 5 (including tax) will be distributed
to all shareholders for every 10 shares, The above profit distribution plan is subject to
approval by the shareholders' meeting
3. Sales return
4. Notes of other significant events
(1) Repurchase and cancellation of restricted stocks
In January, 2024, the repurchase and cancellation of restricted stocks were completed. See the explanation
in Section X.II.2 of this report for details.
(2) Lifting of restricted stock from restricted sale
According to the Proposal on Achievement of Partial First-phase Lifting of Restricted Sale of the Reserved
Grant Part of Restricted Stock Incentive Plan in 2021, which was reviewed and passed by the Fourth Meeting of
the Ninth Board of Directors and the Fourth Meeting of the Ninth Board of Supervisors in 2024, as of January
15, 2024, the first period for restricted sale of restricted stock of reserved grant in 2021 in the equity incentive
plan has expired. The number of restricted stocks that can be lifted for restricted sale is 700,128 shares.
(3) Acquisition of minority shares in Machinery Company
In January 2024, according to the relevant equity transfer agreement, Hangzhou Turbine Lanjin Enterprise
Management Consulting Partnership (Limited Partnership), Hangzhou Steam Turbine Industry Co., Ltd., Tong
Haiwen, Lin Feng, Wang Fang, Yang Yang and Bu Hanming, the shareholders of the Machinery Company,
transferred a total of 18% equity of the Machinery Company to the Company. The registration procedures for
industrial and commercial changes was completed on January 10, 2024 for the above equity transfer.
220
2023 Annual Report
XVIII. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
（2）Prospective application
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) The financial information of reportable segment
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of
reportable
The Company's main business is to produce and sell industrial steam turbines, their auxiliaries, accessories
and other products. The Company regards such business as a whole to implement management and evaluate the
operating results. Therefore, the Company does not need to disclose segment information. The operating income
and operating costs of the Company by product/region are detailed in Note X VII (61) 1 of the Financial
Statements.
（4） Other note
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
(1) Shiqiao Road Factory Relocation
According to the planning of the Hangzhou Municipal Government, the property right bodies of 6
companies including Hangzhou Steam Turbine Holdings within the plant area of Hangzhou Steam Shiqiao Road
factory area were included in the scope of the Expropriation and Relocation Planning. According to the
Hangzhou Municipal People's Government's Minutes (Hangfu Minutes [2016] No. 87) on the relevant issues
concerning the compensation for the relocation of the Steam Turbine Shiqiao road plant area and the spirit of
221
2023 Annual Report
the minutes (Hangfu Minutes [2016] No. 47)of the special meeting of Hangzhou Municipal people's
Government on the relevant issues concerning speeding up the relocation of the Shiqiao Road Factory area of
Hangzhou Steam Turbine and the Construction of the Hangzhou Steam Turbine Heavy Industry Project,
Hangzhou Municipal Government, in accordance with the principle of "one factory, one policy", determines that
the compensation for the overall relocation of the plant area of Hangzhou Steam Turbine Shiqiao road plant is
RMB 1.815 billion, with the compensation contents include the compensation for physical assets such as
buildings, structures, housing renovations, equipment, and land within the area of relocation, as well as
personnel resettlement fees, compensation fees for shutdown loss and production stoppage loss and incentive
fees, and the compensation agreement shall be signed by the Xiacheng Urban Construction Investment Group-
the land-making main-body affiliated to Hangzhou Xiacheng District Municipal Government with each
relocation unit.
On March 21, 2018, based on the evaluation opinion of Kunyuan Assets Appraisal Co., Ltd (No. 606-2017
Kunnyuan Appraisal Report, No. 609-2017 Kunnyuan Appraisal Report, No. 18-2018 Kunnyuan Appraisal
Report,), the company signed the “Relocation Compensation Agreement for Non-residential Buildings on State-
owned Land” with Xiacheng Urban Construction Investment Group, and determined that Xiacheng Urban
Construction Investment Group shall make full monetary relocation compensation for the Company and its
subsidiary the Machinery Company, with the total amount of compensation for various physical assets and
expenses is RMB 1,321,860,410.00 (Including the incentive fee of RMB 35,275,640.00), and this
aforementioned compensation shall be firstly collected by Hangzhou Steam Turbine Holdings.
After the Company and its subsidiaries received the compensation of RMB 257,606,998.18 in the current
period, a total compensation of RMB 1,315,425,632.63 had been received, so far all the compensation had been
received. In the current period, the Company and its subsidiaries incurred relocation expenses of RMB
7,953,100.69, and accumulated a relocation expense of RMB 267,950,491.84; The Company and its
subsidiaries incurred an asset purchase and construction expenditure of RMB 249,024,441.63, and accumulated
an asset purchase and construction expenditure of RMB 1,044,347,472.73; The Company correspondingly
carried forward the special payable-compensation for relocation of RMB 256,977,542.32, which was included
in deferred income and other income. In addition, in the current period, the subsidiary Machinery Company
transferred its compensation balance of RMB 3,127,668.06 to capital reserve-other capital reserve.
(2) Relocation of Zhongneng Company
The 27th meeting of the Eighth Board of Directors of the Company reviewed and passed the Proposal on
Zhongneng Company's Investment in Building a New Production Base. Zhongneng Company started the overall
relocation of the enterprise and planned to invest in building a new production base in Qianjin Manufacturing
Park, Dajiangdong Industrial Cluster Area, Qiantang New District, Hangzhou. According to the needs of the
development and construction of Dongbuwan New Town in Qiantang New District, Hangzhou, Zhongneng
Company and the development and construction headquarters of Dongbuwan New Town in Hangzhou signed
the Compensation Agreement for Relocation of Non-residential Houses on February 13, 2023. The relevant
plots are No.18, 22nd Street, Baiyang Block, Hangzhou Economic and Technological Development Zone and
No.855, 18th Street, Baiyang Block, Hangzhou Economic and Technological Development Zone. The
compensation includes compensation for real estate, decoration and accessories within the relocation scope,
compensation for equipment relocation, relocation expenses, loss of production and business suspension
(including compensation for employee resettlement, operating losses, etc.), contract award and plot ratio
subsidy award, etc. The total compensation for relocation of the two plots is RMB 202.227 million. On
December 18, 2023, Zhongneng Company completed the handover work within the relocation scope of No.855,
18th Street, Baiyang Block, Hangzhou Economic and Technological Development Zone, and received 90% of
222
2023 Annual Report
the compensation funds for the plot relocation, namely RMB 85,154,850.00, and recognized the income from
the disposal of the relocated assets of RMB 65,888,315.19. As of December 31, 2023, the relocation project of
No.18, 22nd Street, Baiyang Block, Hangzhou Economic and Technological Development Zone had not been
completed, and 60% of the compensation funds for this plot relocation, namely RMB 64,566,300.00 (including
RMB 58,696,860.00 for relocation compensation and RMB 5,869,440.00 for incentive subsidies) had been
received.
(3) Transfer of the equity of controlling shareholder
On February 3, 2023, the Company received a notice from its controlling shareholder, Hangzhou Steam
Turbine Holdings Company, that Hangzhou Steam Turbine Holdings Company intended to transfer 5% of its
unlisted circulating shares (49,008,999 shares) by public solicitation at a transfer price of no less than RMB
8.95 per share (the arithmetic average of the daily weighted mean price in the 30 trading days before the
suggestive announcement date of the listed company and the audited net asset value per share of the listed
company in the latest fiscal year, whichever is higher). On March 10, 2023, the Company received a written
notice from Hangzhou Steam Turbine Holdings Company, and the public solicitation transfer plan has been
filed in the state-owned asset management information system. Hangzhou Qitong Equity Investment
Partnership (Limited Partnership) was determined to be the intended transferee in this public solicitation
transfer through comprehensive evaluation by Hangzhou Steam Turbine Holdings Company. On April 3, 2023,
Hangzhou Steam Turbine Holdings Company and Hangzhou Qitong Equity Investment Partnership (Limited
Partnership) signed the Share Transfer Agreement with entry-into-force conditions, to transfer 49,008,999
shares at a price of RMB 8.95 per share, with a total share transfer price of RMB 438,630,541.05. On June 5,
2023, Hangzhou Steam Turbine Holdings Company registered its 49,008,999 unlisted shares (accounting for 5%
of the Company's total share capital) under the name of Hangzhou Qitong Equity Investment Partnership
(Limited Partnership). The Company has completed the relevant industrial and commercial change procedures
on July 13, 2023.
XIX. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
（1）Disclosure according to the aging
In RMB
Aging Balance in year-end Balance Year-beginning
Within one year(one year included) 920,119,639.65 724,266,757.49
1-2 years 456,641,110.95 455,105,646.76
2-3 years 296,849,266.51 307,281,131.33
Over 3 years 532,143,329.79 645,374,771.96
3-4 years 167,941,610.93 185,462,760.12
4-5 years 72,219,824.81 111,413,542.91
Over 5 years 291,981,894.05 348,498,468.93
Total 2,205,753,346.90 2,132,028,307.54
（2） According to the bad debt provision method classification disclosure
In RMB
Categor Amount in year-end Balance Year-beginning
223
2023 Annual Report
y Book Balance Bad debt provision Book Book Balance Bad debt provision Book
Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Includ
ing：
Accrual
of bad
debt 2,205,75 595,277, 1,610,47 2,132,02 693,967, 1,438,06
100.00% 26.99% 100.00% 32.55%
provisio 3,346.90 375.07 5,971.83 8,307.54 447.49 0,860.05
n by
portfolio
Includ
ing：
2,205,75 595,277, 1,610,47 2,132,02 693,967, 1,438,06
Total 100.00% 26.99% 100.00% 32.55%
3,346.90 375.07 5,971.83 8,307.54 447.49 0,860.05
Accrual of bad debt provision by portfolio:595,277,375.07
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Aging portfolio 2,004,672,592.96 595,277,375.07 29.69%
Associated transaction
201,080,753.94
portfolio
Total 2,205,753,346.90 595,277,375.07
Accrual of bad debt provision by portfolio:595,277,375.07
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 779,779,269.43 38,988,963.47 5.00%
1-2 years 436,620,861.94 43,662,086.20 10.00%
2-3 years 282,079,026.51 84,623,707.95 30.00%
3-4 years 161,972,047.13 97,183,228.28 60.00%
4-5 years 67,009,993.90 53,607,995.12 80.00%
Over 5 years 277,211,394.05 277,211,394.05 100.00%
Total 2,004,672,592.96 595,277,375.07
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Opening Amount of change in the current period Closing
Category
balance Reversed or balance
Accrual Write-off Other
collected amount
Accrual of bad debt
provision by Single term
Accrual of bad debt -
693,967,447.49 25,247.61 1,478,648.47 595,277,375.07
provision by portfolio 97,236,671.56
224
2023 Annual Report
-
Total 693,967,447.49 25,247.61 1,478,648.47 595,277,375.07
97,236,671.56
（4） The actual write-off accounts receivable
In RMB
Items Amount
The actual write-off accounts receivable
1,478,648.47
(5) The top five accounts receivable and contract assets at the end of the period aggregated according to
debtor
In RMB
Ending balance of
Proportion to the
accounts
Ending balance of total ending
Ending balance of receivable bad
Name of the Ending balance of accounts balance of
accounts debt provision and
organization contract assets receivable and accounts
receivable contract asset
contract assets receivable and
impairment
contract assets
provision
Client 1 714,134,399.47 83,078,464.51 797,212,863.98 30.49% 163,607,122.30
Client 2 172,252,704.19 7,176,500.00 179,429,204.19 6.86% 86,854,579.40
Client 3 133,698,581.62 38,379,940.00 172,078,521.62 6.58%
Client 4 99,978,988.32 9,659,200.00 109,638,188.32 4.20% 9,370,431.11
Client 5 72,411,200.00 72,411,200.00 2.77% 7,241,120.00
Total 1,192,475,873.60 138,294,104.51 1,330,769,978.11 50.90% 267,073,252.81
2. Other account receivable
In RMB
Item Ending balance Opening balance
Dividend receivable 110,000.00
Other receivable 6,258,018.53 8,287,079.99
Total 6,258,018.53 8,397,079.99
(1) Interest receivable
1) Category
2) Important overdue interest
3) Accrual of bad debt provision
□Applicable Not applicable
225
2023 Annual Report
4） Bad debt provision accrual, collected or reversal in the period
5）Interest receivables actually written off in the current period
(2) Dividend receivable
1) Category
In RMB
Items Ending balance Opening balance
China mechanical and Electrical Institute 110,000.00
Total 110,000.00
2) Important dividend receivable with over one year aged
3) Accrual of bad debt provision
□Applicable Not applicable
4） Bad debt provision accrual, collected or reversal in the period
5） Dividend receivables actually written off in the current period
（3）Other account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Deposit 10,056,195.41 11,450,773.84
Provisional payment receivable 789,486.16 598,767.58
Other 866,480.12 1,672,805.50
Total 11,712,161.69 13,722,346.92
2）Disclosure by aging
In RMB
Aging Ending book balance Opening book balance
Within 1 year(Including 1 year） 4,306,954.42 7,013,397.47
1-2 years 1,909,699.00 399,429.02
2-3 years 35,987.84 1,680,368.59
Over 3 years 5,459,520.43 4,629,151.84
3-4 years 980,368.59 185.00
4-5 years 185.00 100,000.00
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2023 Annual Report
Over 5 years 4,478,966.84 4,528,966.84
Total 11,712,161.69 13,722,346.92
3) According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Includin
g：
Accrual
of bad
debt 11,712,1 5,454,14 6,258,01 13,722,3 5,435,26 8,287,07
100.00% 46.57% 100.00% 39.61%
provisio 61.69 3.16 8.53 46.92 6.93 9.99
n by
portfolio
Includin
g：
11,712,1 5,454,14 6,258,01 13,722,3 5,435,26 8,287,07
Total 100.00% 46.57% 100.00% 39.61%
61.69 3.16 8.53 46.92 6.93 9.99
Accrual of bad debt provision by portfolio:5,454,143.16
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Related party Portfolio 606,136.08
Aging portfolio 11,106,025.61 5,454,143.16 49.11%
Including：Within 1 year 3,700,818.34 185,040.92 5.00%
1-2 years 1,909,699.00 190,969.90 10.00%
2-3 years 35,987.84 10,796.35 30.00%
3-4 years 980,368.59 588,221.15 60.00%
4-5 years 185.00 148.00 80.00%
Over 5 years 上 4,478,966.84 4,478,966.84 100.00%
Total 11,712,161.69 5,454,143.16
Accrual of bad debt provision by portfolio: 5,454,143.16
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance on January 1,
282,135.61 39,942.90 5,113,188.42 5,435,266.93
2023
January 1, 2023
balance in the current
period
——Transfer to stage -95,484.96 95,484.96
227
2023 Annual Report
II
——Transfer to stage
-3,598.78 3,598.78
III
Provision in the current
-1,609.73 59,140.82 111,945.14 169,476.23
period
Written off in the
150,600.00 150,600.00
current period
Balance on December
185,040.92 190,969.90 5,078,132.34 5,454,143.16
31, 2023
The division of each stage is based on: age within 1 year divided into the first stage, age of 1-2 years divided
into the second stage, and age of more than 2 years divided into the third stage.
Provision for bad debts
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Subtotal
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Ending balance 185,040.92 190,969.90 5,078,132.34 5,454,143.16
End of the proportion of provision
4.30 10.00 92.41 46.57
for bad debts（%）
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
4) Bad debt provision accrual, collected or reversal in the period
5) Other account receivables actually write-off during the reporting period
In RMB
Items Amount
Other account receivables actually write-off 150,600.00
6) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable
Shanghai Customs
Deposit 3,710,320.94 Over 5 years 31.68% 3,710,320.94
Waigaoqiao Office
Hangzhou
Ganghua Gas Co., Deposit 900,000.00 (Note) 7.68% 580,000.00
Ltd.
China Machinery
Equipment
Deposit 600,000.00 Within 1 year 5.12% 30,000.00
Engineering Co.,
Ltd.
Ningxia Baofeng Deposit 500,000.00 1-2 years 4.27% 50,000.00
228
2023 Annual Report
Energy Group
Co.,Ltd.
Receivable
Hangzhou Yuhang
temporary 472,553.00 Over 5 years 4.03% 472,553.00
Finance Bureau
payment
Total 6,182,873.94 52.78% 4,842,873.94
Note: 3- 4 years: RMB 800,000.00, Over 5 year: RMB 100,000.00
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
3. Long-term equity investment
In RMB
Closing balance Opening balance
Provision Provision
Items for for
Book balance Book value Book balance Book value
impairme impairmen
nt t
Investments in
741,912,842.24 741,912,842.24 400,480,973.25 400,480,973.25
subsidiaries
Total 741,912,842.24 741,912,842.24 400,480,973.25 400,480,973.25
(1)Investments in subsidiaries
In RMB
Increase /decrease
Opening
Withdr
balance Closing
Decrease awn
of the Add balance of
Investees Opening balance d impair Closing balance
impairment
impairme investme Other
investme ment provision
nt nt
nt provisi
provision
on
Auxiliary
46,286,513.41 160,741.27 46,447,254.68
Machine Co.
Packaged Co. 40,000,389.56 160,741.27 40,161,130.83
Machinery 121,635,00
7,968,000.00 129,603,000.00
Company 0.00
Turbine
20,793,692.97 499,615.50 21,293,308.47
Company
Zhongneng
27,644,475.06 27,644,475.06
Company
Casting
11,220,000.00 11,220,000.00
Company
New Energy 100,000,00
205,642,806.18 4,104,500.00 309,747,306.18
Company 0.00
Ranchuang 130,000,00
25,669,783.27 126,583.75 155,796,367.02
Company 0.00
Sales 13,721,544.
13,721,544.50
Company 50
China
Mechanical 1,533,768.3
1,533,768.30
Institute 0
Company
229
2023 Annual Report
351,635,00 15,255,312.
Total 400,480,973.25 5,052,181.79 741,912,842.24
0.00 80
Note: Other changes are share-based payment expenses recognized in the current period
（2）Investments in associates and joint ventures
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable Not applicable
（3）Other note
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main business 3,281,547,555.63 2,774,495,184.23 3,165,445,499.40 2,453,557,174.72
Other 19,300,704.11 8,086,350.71 20,090,442.76 9,543,498.07
Total 3,300,848,259.74 2,782,581,534.94 3,185,535,942.16 2,463,100,672.79
Information related to the transaction price allocated to the remaining performance obligation:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations with
signed contract but not yet fulfilled or not fulfilled is RMB 3,482,470,000.00, of which the revenue of RMB is
expected to recognize in year, the revenue of RMB is expected to recognize in year , and the revenue of RMB is
expected to recognize in year .
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Dividend income from other equity instrument investments
108,750,082.40 95,156,322.10
during the holding period
Long-term equity investment income by Cost method 83,936,420.00 90,883,630.00
Investment income obtained from the disposal of trading
9,448,780.38 31,896,620.07
financial assets
Disposition of the investment income generated by the long-
921,239.53
term equity investments
Discounted loss of financing receivable -2,527,719.35 -1,721,444.27
Investment income obtained from the disposal of other non-
208,000.00
current financial assets
Total 200,528,802.96 216,423,127.90
6.Other
XX. Supplement information
1. Particulars about current non-recurring gains and loss
230
2023 Annual Report
√ Applicable □Not applicable
In RMB
Items Amount Notes
It is mainly due to the proceeds from the
relocation of assets of Zhongneng
Non-current asset disposal gain/loss 80,700,238.39
Company and the investment real estate
disposal of Hangfa Company
It’s mainly due to the government
Governmental Subsidy accounted as current gain/loss,
subsidy confirmed in the current period
except for those subsidies at with amount or quantity fixed
82,198,992.80 for the relocation compensation of the
by the national government and closely related to the
Shiqiao Road plant of the joint-stock
Company’s business operation.
company,
Gain and loss from change of the fair value arising from
transactional monetary assets, transactional financial
liabilities as held as well as the investment income arising
It is mainly due to the investment income of
from disposal of the transactional monetary assets, 14,106,890.90
bank wealth management products
transactional financial liabilities and financial assets
available for sale excluding the effective hedging transaction
in connection with the Company’s normal business
Capital occupation charges on non-financial enterprises that
0.00
are recorded into current gains and losses
Gain/loss on entrusting others with investments or asset
0.00
management
Gain/loss from external entrusted loan 0.00
Asset impairment provisions due acts of God such as natural
0.00
disasters
Reverse of the provision for impairment of accounts
0.00
receivable undergoing impairment test individually
Gains due to that the investment costs for the Company to
obtain subsidiaries, associates and joint ventures are lower
0.00
than the enjoyable fair value of the identifiable net assets of
the investees when making the investments
Net gain and loss of the subsidiary under the common
control and produced from enterprise consolidation from the 0.00
beginning of the period to the consolidation date
Gain/loss on non-monetary asset swap 0.00
It is mainly due to the debt restructuring
Gains/losses of debt restructure 6,496,130.62
income of Turbine Company
One-off costs incurred by the Company as a result of
discontinued operations, such as expenses for employee 0.00
arrangements
One-time effect on current profit or loss due to adjustments
0.00
in tax, accounting and other laws and regulations
One-time share-based payments recognized due to
0.00
cancellation and modification of equity incentive plans
Gain or loss on changes in the fair value of employee
benefits payable after the vesting date for cash-settled share- 0.00
based payments
Gain or loss on fair-value changes in investment property of
0.00
which subsequent measurement is carried out using the fair
231
2023 Annual Report
value method
Income from transactions with distinctly unfair prices 0.00
Gain or loss on contingencies that are unrelated to the
0.00
Company's normal business operations
Income from charges on entrusted management 0.00
It is mainly due to the liquidated damages
Operating income and expenses other than the aforesaid
64,888,473.66 income recognized by the customer's
items
termination of the contract
Other gains and losses that meet the definition of exceptional
0.00
gain/loss
Less: Influenced amount of income tax 32,530,196.68
Amount of influence of minority interests（After tax） 60,186,902.36
Total 155,673,627.33 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ApplicableNot applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
-- Extraordinary Profit/loss
Applicable □Not applicable
Amount involved
Items Reason
(RMB)
In 2022, according to the Explanatory Announcement No.1 on
Property tax and individual income Information Disclosure for Companies Offering Their Securities to the
443,793.98
tax fee refund Public - Non-recurring Gains and Losses (revised in 2023), recalculation
recurring gains and losses should be re-calculated
2. Return on net asset and earnings per share
Earnings per share
Weighted average returns
Profit of report period Basic earnings per Diluted earnings per
equity(%)
share(RMB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders 6.38% 0.44 0.44
of Company.
Net profit attributable to the
Common stock shareholders
4.46% 0.31 0.31
of Company after deducting
of non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
（ 1 ） Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
232
2023 Annual Report
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable□√ Not applicable
(3)Explanation of the reasons for the differences in accounting data under domestic and foreign accounti
ng standards. If the data that has been audited by an overseas audit institution is adjusted for differences,
the name of the overseas institution should be indicated
4.Other
Hangzhou Turbine Power Group Co., Ltd.
April 30,2024
233
