Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2011-28
二零一一年半年度报告
SEMIANNUAL REPORT 2011
Released on August 27, 2011
杭州汽轮机股份有限公司
H A N G Z H O U S T E A M T U R B I N E C O . , LT D .
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Table of Contents
Chapter I. Important Statement...........................................................................................................................................................3
Chapter II. Company Profiles ..............................................................................................................................................................4
Chapter III. Changes in Share Capital & Particulars about Shareholders ......................................................................................7
Chapter IV. Directors, Supervisors, and Executives.........................................................................................................................10
Chapter V. Board of Director’s Report..............................................................................................................................................11
Chapter VI. Important Events ...........................................................................................................................................................14
Chapter VII. Financial Report (Not Audited) ..........................................................................................................................22
Chapter VIII. Documents Ready for Inquiring.................................................................................................................................80
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter I. Important Statement
1. The Board of Directors and the directors 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.
2. This Interim Report 2011 was examined and adopted at the 10th meeting of the 5th term of Board. All of the
directors at the meeting voted in favor of this report and none of the directors, supervisors, or executives of the
Company is holding uncertain opinion or disagreement over the truthfulness, accuracy, and completeness of the
Interim Report 2011.
3、All of the directors presented the Board meeting on which this report was examined.
4 This report is prepared both in English and Chinese. When there is any conflict in understanding, the Chinese
version shall prevail.
5. The financial statements carried in this report are not audited.
6. Chairman Mr. Nie Zhonghai, General Manager Mr. Yan Jianhuan, Chief Financial Officer Mr. Bo Ronghua, and
the Chief of Accounting Department Mr. Wu Guomei hereby declares: the Financial Statement in the report is
guaranteed to be truthful and complete.
The Board of Directors of
Hangzhou Steam Turbine Co., Ltd.
August 27 2011
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter II. Company Profiles
(I) Company Profile
1) Legal Name of the Company
Name in Chinese: 杭州汽轮机股份有限公司
Name in English: HANGZHOU STEAM TURBINE CO., LTD
Abbreviation in English: HTC
2) Legal Representative: Mr. Nie Zhonghai
3) Secretary of the Board: Mr. Yu Changquan
Tel: (0571)85780432
E-mail: ychq@htc.net.cn
Stock affair representative: Wang Gang
Tel: (0571)85780198
Email: wg@htc.net.cn
Board of Directors’ Office: (0571)85780198, 85784758
Fax: (0571)85780433
4) Registered Address and Office Address:
357 Shiqiao Rd., Hangzhou City, Zhejiang, China
Post Code: 310022
Website: http://www.htc.cn
5) Shares Listed in: Shenzhen Stock Exchange
Stock Abbreviation: Hangqilun B Stock Code: 200771
6) Presses Assigned by National Security Supervisory Committee for Information Disclosure:
Website: http://www.cninfo.com.cn
Press media: Securities Times, Shanghai Securities Daily, Hong Kong Commercial Daily
Report prepared and ready for inquire at: Securities Office, Hangzhou Steam Turbine Co., Ltd.
7) Supplementary information:
1. Primary business registration of the company was on April 23, 1998 at Zhejiang Provincial Business
Administration.
The latest renewing of registration was on May 6, 2009 at Zhejiang Provincial Business Administration.
2. Business license No. 330000400001023.
3. Tax registration No. 330165704202620
4. Organization code: 704202620
5. Public accountants employed:
Certified public accountant: Pan-China (Zhejiang) Certified Public Accountants
Office address: 6-10/F Xihu Business Building, 128 Xixi Road, Hangzhou
Post office: 310007 Email: info@orients.cn
Tel: (0571)88216888 Fax: （0571）88216999
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(II) Financial highlights
1 Financial indices
In RMB Yuan
Ended this report Ended previous Increase/decrease
term year (%)
Gross Assets (RMB) 6,625,150,594.84 6,092,332,507.21 8.75%
Owners’ equity attributable to the shareholders of the
2,999,581,039.60 2,868,211,238.68 4.58%
listed company (yuan)
Capital shares (shares) 628,342,000.00 483,340,000.00 30.00%
Net asset per share attributable to the shareholders of
4.77 5.93 -19.56%
the listed company (Yuan/share)
Report term Same period last Increase/decrease
(Jan-Jun) year (%)
Turnover (yuan) 2,077,039,987.91 1,840,515,550.97 12.85%
Business profit (RMB) 475,789,730.69 364,532,652.81 30.52%
Gross profit (RMB) 471,316,858.56 361,682,077.81 30.31%
Net profit attributable to shareholders of the listed
324,705,800.92 255,824,821.46 26.93%
company (yuan)
Net profit after deducting of non-recurring gain/loss
attributable to the shareholders of the listed company 327,076,310.57 257,610,164.37 26.97%
(RMB)
Basic earnings per share (Yuan/share) 0.5168 0.4071 26.95%
Diluted earnings per share (Yuan/share) 0.5168 0.4071 26.95%
Weighted average of ROE (%) 10.71% 10.38% 0.33%
Weighted average net
10.79% 10.45% 0.34%
income/asset ratio less non-recurring gain/loss(%)
Net Cash flow generated by business operation
324,046,092.60 209,974,963.27 54.33%
(RMB)
Net Cash flow per share generated by business
0.52 0.43 20.93%
operation (yuan/share)
2. Non-recurring profit/loss items
In RMB Yuan
Note (if
Non-recurring gain and loss items Amount
applicable)
Gain/loss of non-current assets -30,925.82
Government subsidies accounted into current gain/loss account, other than those
closely related to the Company’ common business, comply with the national policy 7,200.00
and continues to enjoy at certain fixed rate or amount.
Other non-business income and expenditures other than the above -4,449,146.31
Influenced amount of minority shareholders’ equity 1,364,858.72
Influenced amount of income tax 737,503.76
Total -2,370,509.65 -
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
3. Difference between domestic and international accounting standard
In RMB Yuan
Net profit attributable to the Owners’ equity to shareholders of the
shareholders of the listed company listed company
Current term Amount of last term End of term Beginning of term
On IAS 324,705,800.92 255,824,821.46 2,999,581,039.60 2,868,211,238.68
On domestic accounting
324,705,800.92 255,824,821.46 2,999,581,039.60 2,868,211,238.68
standard
Individual and total of adjustment according to IAS
Total of differences between
the IAS and domestic 0.00 0.00 0.00 0.00
accounting standard
Statement on differences
between the IAS and Chinese No difference
Accounting Standard
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter III. Changes in Share Capital & Particulars about Shareholders
I. Change of capital shares
According to the resolutions adopted at the Shareholders’ Annual Meeting 2010 held on May 11, 2011, the
dividend plan for year 2010 was: basing on the total capital share of 483,340,000 at end of 2010, 3 bonus shares
will be distributed to each 10 shares (tax included) as capitalizing of retained profit, and RMB4.00 (tax included)
is distributed to each 10 shares. This dividend plan has been implemented on June 22, 2011. Upon completion of
this plan, the total capital share has increased to 628,3420,000 shares.
II. Change of shareholding position
in shares
Before the change Changed (+,-) After the change
Issuing of Bonus Transferred
Amount Proportion Others Sub-total Amount Proportion
new shares shares from reserves
I. None negotiable
307,580,000 63.64% 0 92,274,000 0 0 92,274,000 399,854,000 63.64%
shares
1. Promoter’s
307,580,000 63.64% 0 92,274,000 0 0 92,274,000 399,854,000 63.64%
shares
Including:
307,580,000 63.64% 0 92,274,000 0 0 92,274,000 399,854,000 63.64%
State-owned shares
Domestic legal
person shares
Overseas legal
person shares
Others
2. Legal person
shares placed
3. Employees’
shares
4. Preference shares
or others
II. Negotiable
175,760,000 36.36% 0 52,728,000 0 0 52,728,000 228,488,000 36.36%
shares
1. Common shares
in RMB
2. Foreign shares in
175,760,000 36.36% 0 52,728,000 0 0 52,728,000 228,488,000 36.36%
domestic market
3. Foreign shares in
overseas market
4. Others
III. Total of capital
48,334,000 100.00% 0 145,002,000 0 0 145,002,000 628,342,000 100.00%
shares
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
III. Top 10 shareholders and current-share holders
in shares
Total of shareholders 15,731
Top 10 Shareholders
Properties of Share Non-negotiable Pledged or
Name of the shareholder Total shares
shareholder proportion % shares held frozen
State-owned
Hangzhou Steam Turbine Power Group Co., Ltd. 63.64% 399,854,000 399,854,000 118,300,000
legal person
SCHRODER INTL SELECTION FD-GREATER Overseas legal
1.37% 8,613,041 0 0
CN FD GTI 25287 person
DREYFUS PREMIER INVESTMENT FDS Overseas legal
1.06% 6,658,894 0 0
INC.-DREYFUS GREATER CHINA FD person
Overseas legal
GAOLING FUND,L.P. 0.53% 3,319,083 0 0
person
HTHK/BTDL-ASIAN MARKET LEADERS Overseas legal
0.46% 2,901,320 0 0
FUND person
Overseas legal
NORGES BANK 0.36% 2,260,847 0 0
person
BOCHK INVESTMENT FUNDS-BOCHK Overseas legal
0.34% 2,157,787 0 0
CHINA GOLDEN DRAGON FUND person
TOYO SECURITIES ASIA LIMITED-A/C Overseas legal
0.32% 2,040,848 0 0
CLIENT. person
Overseas legal
AUSTRALIANSUPER PTY LTD 0.28% 1,756,934 0 0
person
Overseas legal
RENAISSANCE CHINA PLUS FUND 0.25% 1,589,142 0 0
person
Top 10 Negotiable Share Holders
Name of the shareholder Current shares held Category of shares
SCHRODER INTL SELECTION
8,613,041 Foreign shares placed in domestic exchange
FD-GREATER CN FD GTI 25287
DREYFUS PREMIER INVESTMENT
FDS INC.-DREYFUS GREATER CHINA 6,658,894 Foreign shares placed in domestic exchange
FD
GAOLING FUND,L.P. 3,319,083 Foreign shares placed in domestic exchange
HTHK/BTDL-ASIAN MARKET
2,901,320 Foreign shares placed in domestic exchange
LEADERS FUND
NORGES BANK 2,260,847 Foreign shares placed in domestic exchange
BOCHK INVESTMENT FUNDS-BOCHK
2,157,787 Foreign shares placed in domestic exchange
CHINA GOLDEN DRAGON FUND
TOYO SECURITIES ASIA LIMITED-A/C
2,040,848 Foreign shares placed in domestic exchange
CLIENT.
AUSTRALIANSUPER PTY LTD 1,756,934 Foreign shares placed in domestic exchange
RENAISSANCE CHINA PLUS FUND 1,589,142 Foreign shares placed in domestic exchange
GOVERNMENT OF SINGAPORE INV.
1,402,932 Foreign shares placed in domestic exchange
CORP.- A/C "C"
(1) Of top ten shareholders, Hangzhou Steam Turbine Group Co., Ltd. holds shares on
behalf of the State and the others are to B-Share shareholders.
(2) Hangzhou Steam Turbine Group Co., Ltd. is not related to any of the other 9
shareholders. It is unknown whether there is any relationship among the 9
shareholders.
(3) None of the other shareholders are regarded as Act in Concert relationship
according to the Administrative Regulations of Information Disclosing of Public
Companies.
Notes to relationship or “action in concert” (4) Hangzhou Steam Turbine Group Co., Ltd. (HSTG) entered the share equity
among the top ten shareholders. collateral contract with Communication Bank Zhejiang Branch on April 30, 2010.
Basing on the original “Highest Value Pledge Contract”, the collateral subject will stay
unchanged at 91 million shares. In return, HSTG will have the annual credit up to
RMB300 million. The collateral term will start from April 30, 2010 and ended at
March 31, 2012.
As of the report date, the total of capital shares of the Company was 628.342 million
shares, 399.854 million were held by HSTG, the 118.3 million shares on pledge were
state-owned promoter’s shares, accounted for 29.60% of the shares held by HSTG, and
18.83% of the Company’s total capital shares.
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
IV. Change of holding shareholder and substantial controller
No change happened to the controlling shareholder and substantial controller.
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter IV. Directors, Supervisors, and Executives
I. Change of shareholding of directors, supervisors and senior executives
Shares held at Amount of shares Amount of shares Shares held Incl. Share option
Cause of
Name Position the beginning of increased in the decreased in the at the end of Conditional held at end
change
term report term report term term shares of term
Vice Bonus
Zhang
General 57,200 17,160 0 74,360 55,770 0 shares for
Shutan
Manager year 2010
II. Change of directors, supervisors and senior executives
There is no change occurred to the directors, supervisors or senior managements of the Company
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter V. Board of Director’s Report
I. Business discussion
1. Business overview
In the first half of 2011, both domestic and global economies have become more complicated and variable. The
domestic economy has been facing inflation, structural adjustment, and reconstruction policies, while the global
economy has been on a difficult recovering process. In the first year of the 12th five-year-plan, the Company has
been consolidating the market share of industrial steam turbine, reinforcing researching and developing of new
products and technologies. According to the strategic plan, the Company has been expanding its industrial chain
and exploring new markets.
For the report term, the Company’s business performance has been inclining steadily. We have realized turnover
of RMB2,077,039,987.91, an 12.85% of increase YOY; total profit of RMB471,316,858.56, an 30.31% of
increase YOY; and net profit attributable to owners of the Company of RMB324,705,800.92, an 26.93% of
increase YOY.
In the report term, the Company achieved good performance both in production and sales. As of end of June, the
Company has engaged the ordering contracts with total value of RMB1.378 billion, increased by 9.71% over the
same period of last year. In which there were 153 units of industrial steam turbine, increased by 5.3%. The
headquarter of the Company has realized the total output of RMB1.541 billion, increased by 5.1% over the same
period of last year, including 161 units / 2.039 million KW of industrial steam turbine, increased by 5.2% and
40.8% respectively over the same period of last year.
In the report term, the Company has achieved a breakthrough in business expanding. During the period of the 11th
five-year-plan, the Company has sold out 10 gas turbines in domestic metallurgy industry through introducing of
technologies from Mitsubishi. This has provided preconditions for steel makers to reduce energy consuming and
pollution outlet. At the beginning of the 12th five-year-plan, the Company for the first time provided a whole
project of gas turbine to steel makers, and laid a solid foundation for developing of the market. The air compressor
business has also achieved primary achievement by winning of bidding for the two recycled gas compressor units
from Shanxi Pucheng Clean Energy Co., Ltd. This was regarded as a historical breakthrough in the area of
compressor business.
In the report term, the Company continued to reinforce its marketing force. Firstly, in thermal power plant area,
steam turbines for thermal power plant was in high market demand for increasing of energy price. Conferences
about this area were held to reinforce loyalty of customers. In the first half of 2011, the orders in this area
increased by 60%. Secondly, the Company has maintained the leading positions in petroleum, PTA, and coal
chemistry industries, and tends to provide more large-scale products. Thirdly, the Company accelerated
construction of sales networks and established offices in multiple areas both overseas and home, aiming to collect
market information and provide life-circle services.
In the report term, the Company has been upgrading its R&D forces. The Institute of Industry Turbine was
established at beginning of year. Great importance was attached to not only market oriented products, but also
forward-looking products and technologies, aiming to reinforce its leading positions. Since the beginning of 2011,
the Company has launched research projects covering 6 new products and 22 key technologies. Among them,
developing of 100K KW class industrial steam turbine was carried forward smoothly. Meanwhile, starting of a
number of technical researches such as surface processing, axial condenser, and 3D pipe designing system has
further upgraded technical levels. Development and promotion of multiple new technologies has lifted up product
quality too. In the first half of year, the Company has applied for 15 patents to National Bureau of Patents. As of
present, the Company has been granted two invention patents and 23 technical innovation patents.
In the report term, the Company kept improving its internal management through introducing of performance
management system. Special strategy management department has been established, and relative management
processes have been established. Internal resources have been further combined and fine allocated. Attention has
been paid on reinforce and upgrading of supply chains. The Company has been awarded as one of the 25
Demonstrative Enterprises of Fine Management by Zhejiang Economic and Information Commission.
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
2. Business indices and analysis
1) Business performance of the 1st half of year In RMB Yuan
No. Increase/decrease
Items Jan-Jun 2011 Jan-Jun 2010 Cause of change
(%)
1 Investment gains Receiving of the dividend amounted to
(“-“ for loss) 24,118,640.00 1,100,735.77 2,091.14 RMB23,118,640.00 from Bank of
Hangzhou for year 2010
2 Operative profit
475,789,730.69 364,532,652.81 30.52 Increase of turnover
(“-“ for loss)
3 Non-operational Mainly caused by decreasing of
income 1,468,373.60 2,207,680.04 -33.49 government subsidy received in the
curren term
4 Gross profit (“-“ for Increase of turnover
471,316,858.56 361,682,077.81 30.31
loss)
5 Net increasing of cash Increased by Increase of cash received over last
42,468,619.14 -17,906,024.13
and cash equivalents RMB60.3746 million year
2) Business and product segments In RMB10 thousand
Segments on industries
Increase/decreas Increase/decreas Increase/decrease
e of turnover e of operation of gross profit
Gross profit ratio
On industry or product Turnover Operation cost over the same cost over the ratio over the
(%)
period of last same period of same period of
year (%) last year (%) last year (%)
Boiler and power
155,663.67 91,067.61 41.50% 2.69% -3.94% 4.04%
machine manufacture
Casting 3,569.65 2,953.94 17.25% 27.49% 32.05% -2.85%
Petrochemical and other
6,380.32 4,216.89 33.91% 74.75% 19.50% 30.56%
special machineries
Packaged equipment for
19,409.69 12,554.77 35.32% 13.34% 20.29% -3.82%
waste heat power plant
Other special equipment 21,740.57 14,410.71 33.72% 234.66% 165.38% 16.89%
Total 206,763.90 125,203.92 39.45% 12.97% 6.76% 3.53%
Segments on products
Industrial steam turbine 155,663.67 91,067.61 41.50% 2.69% -3.94% 4.04%
Casting products 3,569.65 2,953.94 17.25% 27.49% 32.05% -2.85%
Auxiliary machinery 6,380.32 4,216.89 33.91% 74.75% 19.50% 30.56%
Packaged equipment for
19,409.69 12,554.77 35.32% 13.34% 20.29% -3.82%
waste heat power plant
Others 21,740.57 14,410.71 33.72% 234.66% 165.38% 16.89%
Total 206,763.90 125,203.92 39.45% 12.97% 6.76% 3.53%
3) Main business geographic segment In RMB10 thousand
Regions Turnover Change of income over last year %
Domestic 179,441.20 12.91
Overseas 27,322.70 13.35
Total 206,763.90 12.97
3. Statement on the changes occurred with the major business and its structure
No major change happened to main business and its structure in the report term.
4. Statement on the major change of profitability (gross profit ratio) of major business comparing with last
year.
No major change happened to the profitability of the main businesses.
5 Statement on the major changes occurred with the profit structure comparing with last year
No major change happened to the composition of profit structure.
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
6. Problems and difficulties in the report term
1) In the report term, the Company is still facing multiple challenges brought by large-scale productions, great
production difficulties, short delivery periods, and frequent modifying of contracts. On the one hand, the
Company will further fine tune its management and planning processes to maximum and balance the productions.
On the other hand, reconstruction of production sites and adopting of heavy duty equipment will relief the
pressures on productivity.
2) In the report term, the global economy has been recovering slowly. Many countries have abandoned their
incentive policies, that has impaired the Company’s global marketing efforts. However the Company will keep
promote its globalization strategy. Promoting of product image will be reinforced, and co-operations with
technical institutes, developing of overseas agents will be accelerated. Meanwhile, the Company will follow and
introduce international technical standards and business conventions, keep improving its management process, to
win the market by highest quality and best services.
3) In the report term, the Company has achieved another historical record in production volume. The outsourced
production has been enlarged, which brought great challenges to quality control over suppliers. The Company will
fully utilize its experiences in co-operated production process, keep improving the control system and standards.
Suppliers with compatible development concepts and values will be introduced with a long-term view of
co-operation and mutual interests.
II. Investment
1. Using of proceeds from share placing.
No financing proceeds in the report term or carried over from previous report term.
2. Using of material non-raised capital
No using of material non-raised capital occurred in the report term.
III. Prospect of the 2nd half
The economical situation will still not optimistic for the second half of 2011 both global and home. The global
economy has been obviously slowing down, while competitions have been becoming more severe. Nevertheless
the Company will adopt multiple measures as followings to face the complicated situations.
1. Along with the business plan of 2011, the Company will still face severe challenges in production. Many
large-scale and extra large units will be delivered in the 2nd half of year, the Company will pay great effort to
well organize the designing and producing process to ensure on-time delivery.
2. Focusing on gas turbine and compressor projects, the Company will organize training programs for related
staffs, deploy production and testing facilities, to form technical and production force of new products as soon
as possible.
3. According to the requirement of the 12th five-year-plan, the Company will accelerate technical reforming and
equipment upgrading to lift up the production standard and reinforce the leading position in the domestic
market.
4. Along with the industrial relocation policies of the national government, the Company will reinforce its
marketing approaches.
5. Concentrating on innovation, the Company will promote co-operations and construct the state-of-art
technology platform, to maintain the leading advantages and expand product lines.
6. Expanding of business operation from pure manufacturing to a combination of manufacturing and service
providing aiming to lift up value-adding.
7. To reinforce human resource construction and aggressively enroll high-class talents.
8. Fully implement the strategy plan of the 12th five-year-plan and further improve competition of the
enterprise.
IV. The business plan of the 2nd half of year has not been change by the Board
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter VI. Important Events
I. Administrative Position
In the report period，the Company constantly improved its corporate administration structure, strengthened
standardized operation and internal controlling system strictly according to the Company Law, the Securities Law,
and the Administration Standards of Listed Companies, aiming to guard the interests of the shareholders.
According to the laws and regulations, the Company produced the “Administration rules of shareholding by
directors, supervisors, and executives”, “Responsibility tracking rules of major error in annual reports”, and
“Administration rules of information insiders”.
The Company was completely independent from the controlling shareholder in aspects of business, personnel,
asset, organization and accounting. Decision-making and information disclosing procedures concerning major
investment and related transactions have been carried out according to the laws and regulations. No
non-operational capital adoption happened in relation to the controlling shareholder and its subsidiaries.
II. Acquiring, disposing and reorganizing of capital
No major acquiring, disposing, or reorganizing of capital occurred in the report term.
III. Non-operational transaction of credits and debts with related parties
In the report term, Zhejiang Turbine Import & Export Co., Ltd. – one of the fully-owned subsidiary of the
Company, borrowed RMB10 million from the company for term of one year. Zhejiang Turbine Import & Export
Co., Ltd. is a subsidiary in which the Company is holding 100% of shares. The borrowed amount was mainly for
working capital.
IV. Major lawsuit issues
The Company has not involved in any material lawsuit or arbitration in the report period.
V. Major contracts
No other material contract engaged in the report term.
VI. Securities investment
The Company made no investment in external securities and hold no shares of other PLCs in the report term.
VII. Shareholding in non-listed financial entities
In RMB Yuan
Change of
Gain/loss of
Name of the Shares Share Book value at the owners’ Accounting Source of
Initial investment the report
enterprises held portion end of term equity in the subject shares
term
report term
Bank of Long-term
Own
Hangzhou 390,954,040.00 115,593,200 6.92% 390,954,040.00 0 0.00 share equity
capital
Co., Ltd. investment
Total 390,954,040.00 115,593,200 6.92% 390,954,040.00 0 0.00 - -
VIII. Related transactions
1. No major related transactions in the report term.
2. Operational credits and debts with related parties in the report term: In RMB10 thousand
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Fund provided to the related Accept money from the related
Related parties parties parties
Amount occurred Balance Amount occurred Balance
Hangzhou Steam Turbine Automobile Sales Service Co.,
40.38 1.20 3,016.56 881.91
Ltd.
Hangzhou Steam Turbine Industrial Co. 0.00 0.00 88.19 33.28
Hangzhou Hangfa Power Generating Equipment Co., Ltd. 246.00 62.85 7,081.94 3,183.43
Hangzhou Nanhua Wooden Packaging Co., Ltd. 0.00 0.00 867.06 1.62
Hangzhou Nanfangtongda Gears Co., Ltd. 128.00 128.44 2,615.25 1,790.14
Hangzhou Steam Turbine Power Sales Co., Ltd. 3,971.25 6,208.35 4,579.29 222.40
Hangzhou Steam Turbine Power Technologies Co., Ltd. 0.00 152.00 684.80 2,376.24
HSTG Nanfang Sales Co. 0.00 2.00 0.00 0.00
Hangzhou Steam Turbine Power Group Co., Ltd. 0.00 85.65 1,244.82 3,553.56
Total 4,385.63 6,640.49 20,177.91 12,042.58
IX. Non-operational capital adoption and settlement with the holding shareholder and its
subsidiaries
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Summary of non-operational adoption of capital and other capital transactions with related parties in the first half
of 2011, Hangzhou Steam Turbine Co., Ltd.
In RMB10 thousand
Balance Capital Interest Balance
of capital adopted of Accumulation of
Relationship
Non-operational Name of the Accounting adopted in Jan-Jun capital of repaid adoption
with the Causation Property
capital adoption parties items at 2011 adoption amount at end of
Company
beginning (interest Jan-Jun Jan-Jun 2011 Jun
of 2011 excluded) 2011 2011
Current main Non-Operational
shareholder and
its affiliates
Sub-total
Balance Capital Interest Balance
of capital adopted of Accumulation of
Other related Relations to
Accounting adopted in Jan-Jun capital of repaid adoption
capital Related parties the
items at 2011 adoption amount at end of
Causation Property of interchange
interchange Company
beginning (interest Jan-Jun Jan-Jun 2011 Jun
of 2011 excluded) 2011 2011
Major Hangzhou
Steam Turbine Controlling Account sales of
shareholder and Power Group shareholder receivable
87.65 - 2.00 85.65
goods
Operational
its affiliates Co., Ltd.
Affiliate of
HSTG Nanfang Account sales of
controlling 2.00 - - 2.00 Operational
Sales Co. receivable goods
shareholder
Hangzhou
Affiliate of
Steam Turbine Account sales of
controlling 6,816.39 3,971.25 4,579.29 6,208.35 Operational
Power Sales receivable goods
shareholder
Co., Ltd.
Hangzhou Affiliate of
Account sales of
Nanfangtongda controlling 0.44 128.00 - 128.44 Operational
receivable goods
Gears Co., Ltd. shareholder
Hangzhou
Steam Turbine Affiliate of
Account sales of
Power controlling 836.80 - 684.80 152.00 Operational
receivable goods
Technologies shareholder
Co., Ltd.
Hangzhou
Hangfa Power Affiliate of
Account sales of
Generating controlling 6.85 - - 6.85 Operational
receivable goods
Equipment Co., shareholder
Ltd.
16
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Hangzhou
Hangfa Power Affiliate of
Purchasing
Generating controlling Prepayments 276.15 246.00 466.15 56.00 Operational
of goods
Equipment Co., shareholder
Ltd.
Hangzhou
Steam Turbine Affiliate of
Automobile controlling Prepayments - 40.38 39.18 1.20 Freight Operational
Sales Service shareholder
Co., Ltd.
Sub-total 8,026.28 4,385.63 5,771.42 6,640.49
Zhejiang
Other
Subsidiaries and Turbine Import Fully-owned
account 1,000.00 - - 1,000.00 Loans Non-Operational
affiliates of the & Export Co., subsidiary
receivable
Company Ltd.
Related nature
person and legal
person under
his/her control
Other related
parties and its
affiliates
Total - - - 9,026.28 4,385.63 5,771.42 7,640.49 -
17
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
In the report term, no such non-operation capital adoption or settlement with the holding shareholder or its
affiliates
X. Special statement and independent opinion of the independent directors on capital
adoption by the holding shareholder and providing of external guarantees
According to Announcement 证监发[2003]56 号 issued by CSRC, 证监发[2005]120 号 issued by CSRC and
CBRC, 上市部函[2006]25 号, issued by CSRC, and Guide for Standard Operation of PLCs issued by SSE, as
the independent directors of Hangzhou Steam Turbine Co., Ltd., we have observed and verified the situations
about capital adoption and providing of external guarantees, and issued the following independent opinions:
1.As of June 30, 2011, all of the capital trades between the Company and the holding shareholder were due to
business operation without illegal capital adoption. We found no capital adoption by controlling shareholder or
other related parties.
2. As of June 30, 2011, the Company never conducted any external guarantee amongst the holding shareholder or
other related parties, and no such guarantee happened in previous terms and carried over to the current term.
Independent director: Xu Yongbin, Lv Fan, Zhang Hejie, Tan Jianrong
August 25, 2011
XI. Guarantees provided to holding subsidiaries in the report term
1. The Company provided Hangzhou Zhongneng Steam Turbine Power Co., Ltd. (Zhongneng Co.) guarantee for
RMB60 million of loan with term of one year: July 1, 2010 to June 30, 2011. The guarantee was provided by way
of: Zhongneng Co. applied the credit of RMB60 million to Bank of China Hangzhou Technologies Development
Zone Branch, the Company resume the joint liabilities. For details please go to The Announcement of Providing
Guarantee to Zhongneng Co. for the Bank Credit of RMB60 million (Announcement No. 2010-31).
2. The 10th meeting of the 4th term of Board held on July 15, 2009 approved the guarantee provided to Hangzhou
Steam Turbine Casting Co., Ltd. – one of the holding subsidiaries, for RMB40.80 million of bank loans for three
years: July 15, 2009 to July 14, 2012. For details please go to The announcement of providing guarantee to the
Casting Co. for the bank loan of RMB40.80 million (Announcement No. Lin2009-16). As of the date of this report,
the loan was not raised yet.
3. Except for the above, the Company provided no guarantees to any of the holding shareholder, its related parties,
any legal persons, or non-legal-person organizations, or individuals as of the date of this report. No such
guarantees provided in previous terms and carried over to the report term either.
XII. Fulfilling of commitments made by the Company, the shareholder, or substantial
controlling party
No commitment issues with any of the Company, the shareholders, or substantial controlling party of the
Company in the report term.
XIII. Dividend distribution or capitalizing of reserves proposed by the Board
No dividend distribution or capitalizing of reserves will be carried out for the first half of 2010.
XIV. Execution of dividend distribution or capitalizing of common reserves in the report term
Dividend plan for year 2010 was: basing on the total capital shares of 483,340,000 shares at the end of 2010, 3
bonus shares will be distributed to each 10 shares, the total capital shares will increase to 628,342,000 shares; and
RMB4.00 (tax inclusive) of cash dividend will be allocated to each 10 shares. Totally RMB193,336,000 of profit
will be distributed. Dividend for B share holders will be translated to Hong Kong Dollar at the middle rate
18
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
released by People’s Bank of China at the first bank day after the profit distribution plan was approved by the
Shareholders’ Annual Meeting 2010 (May 12, 2011).
B-share holders are subject to 10% of income tax. Namely RMB3.3 will be actually distributed to each 10 shares
toward domestic individual shareholders and non-residential corporation shareholders after tax. According to
document 财税字【1994】20 号 issued by Department of Finance and Tax Bureau General, the Company doesn’t
draw the income tax from the dividend to the overseas individual B-share holders or pay on their behalves.
The above dividend plan has been accomplished in the report term. The final trading day of B shares was June
21, 2011, where the ex-dividend day was June 22, 2011. B share registration date was June 24, 2011, and the
bonus shares may be traded since June 27, 2011. Dividend for state-owned shares are distributed by the Company
straightly. For B-share holders, the dividend will be transmitted into their account through their depository dealers
or banks on June 24, 2011. Where the bonus shares will be transmitted into the shareholders’ account directly on
June 27, 2011. In case of any shareholder changed their depository agents right on June 27, 2011, the dividend and
bonus shares will be delivered by the original agents. The bonus shares can be traded since June 27, 2011.
For details of the above dividend distribution please go to Announcement 2011-20 published on Securities Times,
Shanghai Securities Daily, Hong Kong Commercial Daily and http://www.cninfo.com.cn dated June 15, 2011.
XV. Reception of investigations, communications, or interviews
Time/date Place Way Visitors Main content involved and material provided
Mar 16, The KGI Securities Reason of growth decreasing, possibility of issuing H shares, overseas
Field research
2011 Company Taiwan marketing pattern, way out of B shares, Bank of Hangzhou
Shenzhen Situation of sales, impact of suspending of approving nuclear power
Mar 16, The
Field research Redchip plants, business operation of 2011, products other than steam turbine,
2011 Company
Investment residue thermal power plant
Mar 17, The Telephone Individual Impact of suspending of approving nuclear power plants, business
2011 Company communication shareholder operation of 2011
Fubang Introduction of products, application of products, business trend of
Mar 17, The Telephone
Investment recent years, overseas market, productivity, competitive advantages,
2011 Company conference
(Taiwan) market share.
April 13, The Face to face talk Kaisibo Company history, product introduction and applications, competitive
2011 Company Investment advantages, overseas co-operations, Bank of Hangzhou, competition
situation
April 15, The Face to face talk Hengmao Asset Overseas market, gross profit ration, market share, gas turbine, capital
2011 Company Management situation, future of B stock
April 25, The Face to face talk Shenyin Wanguo Product introduction, overseas market, cost of overseas services, steam
2011 Company turbine for nuclear power plant, market of residue thermal power plant,
gross profit, market share, enterprise IT approach.
May 13, The Telephone Gaoguan Applications of steam turbine, circle of economy, production period,
2011 Company conference Investment receivable accounts, investment plan, dividend policies, group business
June 13, The Face to face talk Ruixin Investment Business introduction, competition situation, price advantage,
2011 Company quotations, overseas market
19
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
XVI. No commitment issues made by shareholders with 5% or above share equities in the
report term or carried down from previous terms, which could made major influence on the
business performance or financial situation of the Company.
XVII. In the report term, none of the directors, supervisors, and executives was under
investigation by the authorities, under force execution of law departments, turned to legal
process, investigated or punished by China Securities Regulatory Commission, prohibited or
criticized by the Stock Exchange, regarded as inappropriate person, or under punishment of
other authorities.
XVIII. Information disclosure in the report term
Announcement
Date Content Official media Official website
No.
Securities Time
March Shanghai Securities
2011-01 28, Annual Report 2010 (Summary) Daily http://www.cninfo.com.cn
2011 Hong Kong
Commercial Daily
March
2011-02 28, Annual Report 2010 http://www.cninfo.com.cn
2011
March
2011-03 28, Auditors’ Report 2010 http://www.cninfo.com.cn
2011
March
2011-04 28, Financial Statements 2010 http://www.cninfo.com.cn
2011
Securities Time
March Resolutions of the 6th meeting of the 5th term of Shanghai Securities
2011-05 http://www.cninfo.com.cn
28, Board Daily, Hong Kong
2011 Commercial Daily
Securities Time
March Shanghai Securities
Resolutions of the 4th Meeting of the 5th Term of
2011-06 28, Daily http://www.cninfo.com.cn
Board
2011 Hong Kong
Commercial Daily
March Self-assessment Report on Internal Control of Securities Time
2011-07 28, 2010 Shanghai Securities http://www.cninfo.com.cn
2011 Daily
March Independent directors’ opinion on the Securities Time
2011-08 28, Self-assessment Report on Internal Control of Shanghai Securities http://www.cninfo.com.cn
2011 2010 Daily
Securities Time
March Statement on capital adoption by related parties
2011-09 Shanghai Securities http://www.cninfo.com.cn
28, 2010
Daily
2011
Securities Time
March Shanghai Securities
Amount of related transactions occurred in 2010
2011-10 28, Daily http://www.cninfo.com.cn
and forecasted for year 2011
2011 Hong Kong
Commercial Daily
Evaluation of auditing works performed by Securities Time
March Pan-China (Zhejiang) Certified Public Shanghai Securities
2011-11 http://www.cninfo.com.cn
28, Accountants, and proposal to extend its service to Daily
2011 year 2011
Independent opinions of the independent directors
March on the capital adoption by related parties, Securities Time
2011-12 28, guarantees provided to related parties and external, Shanghai Securities http://www.cninfo.com.cn
2011 related transactions, and remuneration and Daily
assessment scheme of executives
March Securities Time
2011-13 Independent directors work report 2010 http://www.cninfo.com.cn
28, Shanghai Securities
20
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
2011 Daily
March Securities Time
Announcement on debt transferring and related
2011-14 28, Shanghai Securities http://www.cninfo.com.cn
transactions
2011 Daily
Securities Time
March Shanghai Securities
Announcement on calling of Shareholders’ http://www.cninfo.com.cn
2011-15 28, Daily
General Meeting 2010
2011 Hong Kong
Commercial Daily
April
2011-16 21, The 1st Quarterly Report 2011 (Full Text) http://www.cninfo.com.cn
2011
Securities Time
April Shanghai Securities
2011-17 21, The 1st Quarterly Report 2011 (Official Text) Daily http://www.cninfo.com.cn
2011 Hong Kong
Commercial Daily
Securities Time
April Shanghai Securities
Resolutions of the 8th meeting of the 5th term of http://www.cninfo.com.cn
2011-18 29, Daily
Board
2011 Hong Kong
Commercial Daily
Securities Time
May
Resolutions of the Shareholders’ Annual Meeting Shanghai Securities http://www.cninfo.com.cn
2011-19 12,
2010 Daily, Hong Kong
2011
Commercial Daily
Securities Time
Shanghai Securities
June 15 Announcement of Dividend Distribution for
2011-20 Daily http://www.cninfo.com.cn
2011 Year 2010
Hong Kong
Commercial Daily
21
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter VII. Financial Report (Not Audited)
(I) Financial Statements
7.2.1 Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd. Ended June 30, 2011 in RMB Yuan
Ending balance Balance at the beginning of year
Items
Consolidated Parent company Consolidated Parent company
Current asset:
Monetary capital 691,511,302.79 389,138,847.99 657,077,394.71 332,065,321.54
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 552,775,501.47 300,109,989.26 713,585,305.36 408,512,097.53
Account receivable 1,749,711,855.70 1,303,271,378.50 1,652,523,887.28 1,307,706,761.68
Prepayment 274,548,252.18 99,852,179.76 184,464,135.00 56,088,295.98
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 56,849,773.27 50,963,058.16 34,149,117.95 28,169,088.97
Repurchasing of financial assets
Inventories 1,564,194,624.49 1,251,855,575.90 1,168,959,067.36 874,068,780.24
Non-current asset due in 1 year
Other current asset 88,598.00
Total of current asset 4,889,591,309.90 3,395,191,029.57 4,410,847,505.66 3,006,610,345.94
Non-current assets
Disburse of consigned loans
Available-for-sale financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 442,088,813.22 476,782,461.07 402,586,451.62 472,280,099.47
Investment real estates
Fixed assets 875,456,114.68 375,140,069.37 828,320,012.24 319,991,452.64
Construction in process 42,430,426.22 20,064,936.58 98,530,579.18 88,939,313.18
Engineering goods 797,862.28
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 306,258,052.01 45,545,511.45 284,700,647.27 46,724,159.17
R&D expense
Goodwill
Long-term amortizable expenses 6,389,230.14 5,410,037.18 5,941,526.80 5,410,037.18
Differed income tax asset 62,138,786.39 44,447,914.88 61,405,784.44 44,447,914.88
Other non-current asset
Total of non-current assets 1,735,559,284.94 967,390,930.53 1,681,485,001.55 977,792,976.52
Total of assets 6,625,150,594.84 4,362,581,960.10 6,092,332,507.21 3,984,403,322.46
Current liabilities
Short-term loans 383,000,000.00 226,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 122,919,982.00 95,643,623.00
Account payable 849,559,474.16 566,380,364.26 522,983,194.67 261,017,904.69
Prepayment received 1,508,210,537.67 1,009,768,643.63 1,493,982,772.62 1,063,643,628.13
Selling of repurchased financial assets
Fees and commissions receivable
22
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Employees’ wage payable 42,955,828.05 21,222,585.57 29,174,456.31 14,868,240.62
Tax payable 35,208,380.72 20,945,048.24 105,407,867.17 60,985,858.19
Interest payable 287,993.75
Dividend payable 13,700,490.94
Other account payable 90,614,959.49 54,028,798.14 80,286,888.60 28,469,915.93
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 157,000,000.00 100,000,000.00
Other current liability
Total of current liability 3,046,169,653.03 1,672,345,439.84 2,710,766,796.12 1,528,985,547.56
Non-current liabilities
Long-term borrowings 148,000,000.00 100,000,000.00 73,463,800.00 50,463,800.00
Bond payable
Long-term payable 330,000.00 330,000.00
Special payable
Anticipated liabilities
Differed income tax liability 1,222,974.80 1,222,974.80 1,222,974.80 1,222,974.80
Other non-recurring liabilities 20,855,340.00 5,194,950.00 5,047,140.00 1,359,250.00
Total of non-current liabilities 170,408,314.80 106,417,924.80 80,063,914.80 53,046,024.80
Total of liability 3,216,577,967.83 1,778,763,364.64 2,790,830,710.92 1,582,031,572.36
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 628,342,000.00 628,342,000.00 483,340,000.00 483,340,000.00
Capital reserves 139,590,345.09 138,953,250.09 139,590,345.09 138,953,250.09
Less: Shares in stock
Special reserves
Surplus reserves 389,362,161.03 370,605,755.90 389,362,161.03 370,605,755.90
Common risk provision
Retained profit 1,842,286,533.48 1,445,917,589.47 1,855,918,732.56 1,409,472,744.11
Different of foreign currency translation
Total of owner’s equity belong to the parent company 2,999,581,039.60 2,583,818,595.46 2,868,211,238.68 2,402,371,750.10
Minor shareholders’ equity 408,991,587.41 433,290,557.61
Total of owners’ equity 3,408,572,627.01 2,583,818,595.46 3,301,501,796.29 2,402,371,750.10
Total of liabilities and owners’ equity 6,625,150,594.84 4,362,581,960.10 6,092,332,507.21 3,984,403,322.46
7.2.2 Income Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan - Jun 2011 in RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Total revenue 2,077,039,987.91 1,223,162,586.92 1,840,515,550.97 1,315,034,718.53
Incl. Business income 2,077,039,987.91 1,223,162,586.92 1,840,515,550.97 1,315,034,718.53
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,625,368,897.22 977,922,321.30 1,477,083,633.93 1,086,383,790.37
Incl. Business cost 1,260,362,576.79 759,380,397.69 1,180,414,236.98 882,879,318.32
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 15,187,879.40 8,473,862.10 5,129,818.23 1,947,356.38
23
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Sales expense 73,624,896.84 222,656,776.23 54,567,107.05 35,616,211.64
Administrative expense 222,656,776.23 137,318,549.34 177,912,362.66 122,113,732.45
Financial expenses 12,043,223.86 815,541.07 9,719,615.00 4,603,057.83
Asset impairment loss 41,493,544.10 30,406,363.08 49,340,494.01 39,224,113.75
Plus: Gains from change of fair value (“-“ for loss)
Investment gain (“-“ for loss) 24,118,640.00 165,631,563.75 1,100,735.77 98,297,793.27
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 475,789,730.69 410,871,829.37 364,532,652.81 326,948,721.43
Plus: Non business income 1,468,373.60 1,374,608.04 2,207,680.04 891,907.71
Less: Non-business expenses 5,941,245.73 2,279,316.75 5,058,255.04 2,382,712.61
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 471,316,858.56 409,967,120.66 361,682,077.81 325,457,916.53
Less: Income tax expenses 71,454,641.05 35,184,275.30 55,770,552.85 34,074,018.49
V. Net profit (“-“ for net loss) 399,862,217.51 374,782,845.36 305,911,524.96 291,383,898.04
Net profit attributable to the owners of parent company 324,705,800.92 374,782,845.36 255,824,821.46 291,383,898.04
Minor shareholders’ equity 75,156,416.59 50,086,703.50
VI. Earnings per share:
(I) Basic earnings per share 0.5168 0.4071
(II) Diluted earnings per share 0.5168 0.4071
VII. Other misc. incomes
VIII. Total of misc. incomes 399,862,217.51 374,782,845.36 305,911,524.96 291,383,898.04
Total of misc. incomes attributable to the owners of the
324,705,800.92 374,782,845.36 255,824,821.46 291,383,898.04
parent company
Total misc gains attributable to the minor shareholders 75,156,416.59 50,086,703.50
Merger of entities under common control, the net profit realized by the merged party was RMB0.00.
7.2.3 Cash Flow Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan - Jun 2011 in RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Net cash flow from business operation
Cash received from sales of products and providing of
2,074,588,353.09 1,127,326,131.55 1,762,387,472.25 1,107,857,783.61
services
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
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
24
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Tax returned 12,504,514.20 1,069,300.00
Other cash received from business operation 26,512,590.71 17,848,316.70 28,631,978.56 5,500,330.14
Sub-total of cash inflow from business activities 2,113,605,458.00 1,145,174,448.25 1,792,088,750.81 1,113,358,113.75
Cash paid for purchasing of merchandise and services 1,144,900,001.88 588,004,393.24 1,074,285,012.58 665,615,592.59
Net increase of client trade and advance
Net increase of savings in central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 267,102,564.91 201,328,020.42 207,469,163.90 164,121,586.78
Taxes paid 269,172,661.57 148,026,726.91 191,337,679.45 115,386,353.49
Other cash paid for business activities 108,384,137.04 43,855,020.07 109,021,931.61 35,380,449.46
Sub-total of cash outflow from business activities 1,789,559,365.40 981,214,160.64 1,582,113,787.54 980,503,982.32
Cash flow generated by business operation, net 324,046,092.60 163,960,287.61 209,974,963.27 132,854,131.43
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 24,118,640.00 165,631,563.75 1,100,735.77 98,197,057.50
Net cash retrieved from disposal of fixed assets,
884,200.00 526,200.00 92,900.00 72,950.00
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received 90,868.96 100,735.77
Sub-total of cash inflow due to investment activities 25,002,840.00 166,157,763.75 1,284,504.73 98,370,743.27
Cash paid for construction of fixed assets, intangible
48,366,549.48 21,727,940.63 123,511,525.92 28,680,728.15
assets and other long-term assets
Cash paid as investment 39,502,361.60 4,502,361.60 700,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment
87,868,911.08 26,230,302.23 124,211,525.92 28,680,728.15
activities
Net cash flow generated by investment -62,866,071.08 139,927,461.52 -122,927,021.19 69,690,015.12
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor
shareholders
Cash received as loans 442,000,000.00 100,000,000.00 193,000,000.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 442,000,000.00 100,000,000.00 193,000,000.00
Cash to repay debts 367,463,800.00 150,463,800.00 71,000,000.00
Cash paid as dividend, profit, or interests 292,514,985.45 195,667,810.10 226,621,543.69 152,939,465.11
Incl. Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 659,978,785.45 346,131,610.10 297,621,543.69 152,939,465.11
Net cash flow generated by financing -217,978,785.45 -246,131,610.10 -104,621,543.69 -152,939,465.11
25
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
IV. Influence of exchange rate alternation on cash and cash
-732,616.93 -682,612.58 -332,422.52 -332,337.32
equivalents
V. Net increase of cash and cash equivalents 42,468,619.14 57,073,526.45 -17,906,024.13 49,272,344.12
Plus: Balance of cash and cash equivalents at the
621,373,402.65 332,065,321.54 486,439,602.82 100,717,329.17
beginning of term
VI. Balance of cash and cash equivalents at the end of term 663,842,021.79 389,138,847.99 468,533,578.69 149,989,673.29
26
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
7.2.4 Change in Owners’ Equities (Consolidated)
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan – Jun 2011 in RMB Yuan
Amount of the Current Term Amount of Last Year
Owners’ Equity Attributable to the Parent Company Minor Owners’ Equity Attributable to the Parent Company Minor
Capital Total of Capital Total of
Items Less: Common sharehol Less: Common sharehol
paid in Capital Special Surplus Retained owners’ paid in Capital Special Surplus Retained owners’
Shares in risk Others ders’ Shares in risk Others ders’
(or share reserves reserves reserves profit equity (or share reserves reserves reserves profit equity
stock provision equity stock provision equity
capital) capital)
483,340, 139,590, 389,362, 1,855,91 433,290, 3,301,50 371,800, 138,953, 327,932, 1,497,42 390,861, 2,726,97
I. Balance at the end of last year
000.00 345.09 161.03 8,732.56 557.61 1,796.29 000.00 250.09 742.87 3,473.50 347.35 0,813.81
Plus: Change of accounting
policy
Correcting of previous errors
Others
II. Balance at the beginning of 483,340, 139,590, 389,362, 1,855,91 433,290, 3,301,50 371,800, 138,953, 327,932, 1,497,42 390,861, 2,726,97
current year 000.00 345.09 161.03 8,732.56 557.61 1,796.29 000.00 250.09 742.87 3,473.50 347.35 0,813.81
III. Changed in the current year (“- 145,002, -13,632, -24,298, 107,070, 111,540, 637,095. 61,429,4 358,495, 42,429,2 574,530,
“ for decrease) 000.00 199.08 970.20 830.72 000.00 00 18.16 259.06 10.26 982.48
324,705, 75,156,4 399,862, 680,184, 134,109, 814,294,
(I) Net profit
800.92 16.59 217.51 677.22 666.60 343.82
(II) Other misc. income
324,705, 75,156,4 399,862, 680,184, 134,109, 814,294,
Total of (I) and (II)
800.92 16.59 217.51 677.22 666.60 343.82
(III) Investment or decreasing of 637,095. 128,906. 766,001.
capital by owners 00 52 52
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
637,095. 128,906. 766,001.
3. Others
00 52 52
145,002, -338,338 -99,455, -292,791 111,540, 61,429,4 -321,689 -69,101, -217,821
(IV) Profit allotment
000.00 ,000.00 386.79 ,386.79 000.00 18.16 ,418.16 281.41 ,281.41
1. Providing of surplus 61,429,4 -61,429,
reserves 18.16 418.16
2. Common risk provision
3. Allotment to the owners (or 145,002, -338,338 -99,455, -292,791 111,540, -260,260 -69,698, -218,418
shareholders) 000.00 ,000.00 386.79 ,386.79 000.00 ,000.00 794.86 ,794.86
597,513. 597,513.
4. Others
45 45
(V) Internal transferring of -22,708, -22,708,
owners’ equity 081.45 081.45
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
27
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
3. Making up losses by
surplus reserves
-22,708, -22,708,
4. Others
081.45 081.45
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
628,342, 139,590, 389,362, 1,842,28 408,991, 3,408,57 483,340, 139,590, 389,362, 1,855,91 433,290, 3,301,50
IV. Balance at the end of this term
000.00 345.09 161.03 6,533.48 587.41 2,627.01 000.00 345.09 161.03 8,732.56 557.61 1,796.29
7.2.5 Change in Owners’ Equities (Parent Co.)
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan – Jun 2011 in RMB Yuan
Amount of the Current Term Amount of Last Year
Capital Total of Capital Total of
Less: Common Less: Common
Items paid in (or Capital Special Surplus Retained paid in (or Capital Special Surplus Retained
Shares in risk owners’ Shares in risk owners’
share reserves reserves reserves profit share reserves reserves reserves profit
stock provision equity stock provision equity
capital) capital)
483,340,00 138,953,25 370,605,75 1,409,472,7 2,402,371,7 371,800,00 138,953,25 309,176,33 1,116,867,9 1,936,797,5
I. Balance at the end of last year
0.00 0.09 5.90 44.11 50.10 0.00 0.09 7.74 80.67 68.50
Plus: Change of accounting
policy
Correcting of previous errors
Others
II. Balance at the beginning of 483,340,00 138,953,25 370,605,75 1,409,472,7 2,402,371,7 371,800,00 138,953,25 309,176,33 1,116,867,9 1,936,797,5
current year 0.00 0.09 5.90 44.11 50.10 0.00 0.09 7.74 80.67 68.50
III. Changed in the current year (“- 145,002,00 36,444,845. 181,446,84 111,540,00 61,429,418. 292,604,76 465,574,18
“ for decrease) 0.00 36 5.36 0.00 16 3.44 1.60
374,782,84 374,782,84 614,294,18 614,294,18
(I) Net profit
5.36 5.36 1.60 1.60
(II) Other misc. income
374,782,84 374,782,84 614,294,18 614,294,18
Total of (I) and (II)
5.36 5.36 1.60 1.60
(III) Investment or decreasing of
capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
145,002,00 -338,338,0 -193,336,0 111,540,00 61,429,418. -321,689,4 -148,720,0
(IV) Profit allotment
0.00 00.00 00.00 0.00 16 18.16 00.00
1. Providing of surplus 61,429,418. -61,429,41
reserves 16 8.16
2. Common risk provision
3. Allotment to the owners (or 145,002,00 -338,338,0 -193,336,0 111,540,00 -260,260,0 -148,720,0
28
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
shareholders) 0.00 00.00 00.00 0.00 00.00 00.00
4. Others
(V) Internal transferring of
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. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
628,342,00 138,953,25 370,605,75 1,445,917,5 2,583,818,5 483,340,00 138,953,25 370,605,75 1,409,472,7 2,402,371,7
IV. Balance at the end of this term
0.00 0.09 5.90 89.47 95.46 0.00 0.09 5.90 44.11 50.10
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(II) Notes to Financial Statements (the 1st half of 2011)
Hangzhou Steam Turbine Co., Ltd.
Notes to Financial Statements
The 1st Half of 2011
In RMB
I. Company Profile
Hangzhou Steam Turbine Co., Ltd. (the Company) was incorporated as a joint stock limited company exclusively
promoted by Hangzhou Steam Turbine & Power Group Company Limited (“HSTG”) 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, legal entity business license
No.: 企股浙总字第 002150 号. The number of Business License was changed to 330000400001023 on May 6,
2009. At incorporation the Company was registered with capital of RMB220 million, in which 80 million B
shares were issued and listed for trading in Shenzhen Stock Exchange on April 28, 1998. The Company’s
registered capital is now increased to RMB628.342 million with total capital share of 628.342 million shares (face
value RMB1.00). Among which state-owned legal person shares were 399.854 million shares and 228.488 million
shares of current B shares.
The scope of key business 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 provision of relevant after-sales service and import & export service.
II. The main accounting policies and accounting estimations adopted
(I) Basis of compiling the finance report
The Company adopts perpetual operation as the basis of financial statements.
(II) 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.
(III) Accounting period
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
(IV) Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
(V) 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
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
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 recorded into current income
account.
(VI) 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 揈 nterprise Accounting Standard No. 33 –
Consolidated Financial Statements”, basing on the accounts of the parent company and the subisidiaries, and after
adjusting the long-term investment equity in the subsidiary on equity basis.
(VII) 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.
(VIII) 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.
(IX) Financial instruments
1. Type of finance asset and finance debt
Finance assets are divided initially into four types of financial asset appointed to be measured at fair value with
their changes are accounted into current gain/loss accounts(including transactional finance asset and financial
asset appointed to be measured at fair value with their changes are accounted into current gain/loss accounts),
transactional financial assets, debt and account receivable, finance asset saleable.
Finance debts are divided initially into two types of financial debt appointed to be measured at fair value with
their changes are accounted into current gain/loss accounts(including transactional finance debt and financial debt
appointed to be measured at fair value with their changes are accounted into current gain/loss accounts), other
finance debt.
2. Basis of recognition and accounting of finance asset and finance debt
When the Company is one part of the finance instrument contract, one finance asset or debt is recognized. When
on recognizing initially finance asset or debt, it is measured by fair value, for the finance asset or debt which
appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, the related
transaction expenses are directly accounted into current gain and loss; for other finance asset and debt, the related
transaction expenses accounted into the initial recognition account.
The Company future measures finance asset by fair value without deducting future possible transaction fee but
with exception: (1) Due investment, debt and account receivable are measured by actual interest rate according to
the amortized costs. (2) Equity instrument investment which have no quote in active market and which fair value
can’t be measured reliably, and its derived finance assets which are connected with the equity instrument and
which are summarized through the equity instrument, are measured by cost.
The Company conduct successive measure of finance debt according to amortized cost by actual interest rate with
exception as following: (1) finance debt which appointed to be measured at fair value with their changes are
accounted into current gain/loss accounts, is measured at fir value without deducting possible future transactional
fee at settlement; (2) Equity instrument investment which have no quote in active market and which fair value
can’t be measured reliably, and its derived finance assets which are connected with the equity instrument and
which are closed off through the equity instrument, are measured by cost. (3) finance debt sponship contracts
which are not appointed to be measured at fair value with their changes are accounted into current gain/loss
accounts, or debt agreements at rate lower than market rate and which are not appointed to be measured at fair
value with their changes are accounted into current gain/loss accounts, are measured at the higher value between
the optimal estimated value payable according to current obligations and the surplus value from which the initial
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
recognition value deduct the accumulated amortized amount according to the actual interest rate.
Gain or loss from fluctuation of financial assets or liabilities are handled at the following ways, except for relating
to hedge instrument. (1) Gain or loss from fluctuation of fair value of financial assets or liabilities and
accounted into current gain/loss account, are accounted into gain/loss of fluctuation of fair value. Interests or cash
dividend received in the period of holding these assets are recognized as investment gains. When they are
disposed, the difference between the amount actually received and initially booked value is recognized as
investment gains, and adjust the gain/loss from fair value fluctuation. (2) Fluctuation of fair value of sellable
financial assets accounted into capital reserves; interests gained at actual interest rate are accounting into
investment gains; the cash dividend received from sellable instrument investment, are accounted into investment
gains when distributed; At disposal of these investment, the difference between actual amount received and book
value are recognized as investment gains after deducting of accumulated change of fair value which are originally
accounted into capital reserves.
As soon as the contract rights of acquiring the cash flow of particular financial asset have been terminated or
almost all of the risks and rewards attached to the financial asset have been transferred, recognition of the
financial asset is terminated; as soon as the current liabilities attached to the financial liability have been
completely or partially relieved, recognition of the financial liability or part of is terminated.
3. Basis of recognition and accounting of financial asset transferring
The Company stop recognizing the finance asset which risks and remuneration of ownership are transferred to the
receiver; and continue to recognize the transferred finance asset which risks and remuneration of ownership are
kept, and recognize the value as one finance debt. For the finance assets which risks and remuneration of
ownership are not transferred or kept, the Company recognize them as following: (1) stop recognizing the finance
asset which are given up the control; (2) continue to recognize the finance asset and related finance debt according
to the extend which involved into the transferred finance asset for the finance asset which are not given up control.
The Company measured the surplus between the following two values for the transferred finance assets which
fulfil the stop recognition requirements into current gain or loss: (1) Account value of the transferred finance asset;
(2) Consideration plus the accumulated fair value changes which were accounted directed into ownership rights.
For the transferred finance assets which partly fulfill the stop recognition requirements the Company amortized
the stopped recognition part and the not-stopped recognition part of the account value of the whole transferred
finance asset, and account the surplus between the following two values into current gain or loss: (1) Account
value of the stopped recognition part; (2) consideration plus the corresponding stopped recognition part of the
accumulated fair value changes which were accounted directed into ownership rights.
4. Basis of recognition and accounting of fair value for the main finance asset and finance debt
For the finance asset or debt which active market exists, the Company recognize the fair value according to the
quote on the active market; for the finance asset or debt which active market not exists, the Company recognized
the fair value using estimation technology (including reference of the latest market prices from freewill
transactions by persons familiar with conditions, reference of the current fair value of other similar finance
instrument in characteristics, discounted cash flow models and Option Pricing Model); for the initially acquired or
initial finance asset or finance debt, the Company recognize the fair value basis on the market trading price.
5. Impairment test and impairment reserves plan
The Company conduct impairment test to the finance asset other than which appointed to be measured at fair
value with their changes are accounted into current gain/loss accounts on balance sheet day.
The Company conduct independently impairment test for single finance asset with large value for single finance
asset with little value the Company conduct the impairment test with those of the finance asset composition which
have similar credit risk characteristics; for the non impairment assets which are tested independently, the
Company conduct the impairment test with those of the finance asset composition which have similar credit risk
characteristics.
For the finance asset accounted by amortized cost which have subject impairment evidence at the end term, the
impairment loss was recognized according to the difference between the account value and the anticipating future
cash flow, for the finance asset which have little difference between its short term account receivable anticipating
future cash flow and its current value, the Company don’t discount the future cash flow when recognizing related
impairment loss. When there is impairment loss for the Equity instrument investment which have no quote in
active market and which fair value can’t be measured reliably and its derived finance assets which are connected
32
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
with the equity instrument and which are calculated through the equity instrument, are measured by cost, the
difference is recognized as impairment loss between the account value of the equity instrument investment and its
derived finance asset and the current value discounted by the future cash flow according to the market profit rate
of the similar finance asset. The Company recognize the impairment loss for the saleable finance asset which fair
value have sharp decreasing and the anticipating decreasing trend is not temporary, and account it into impairment
loss together with the accumulated fair vale loss which was accounted into owner’s equity directly.
(X) Receivable accounts
1. Recognition and providing of bad debt provision on individual receivable account with large amount
Basis of recognition or standard amount
Accounts take over 10% of the book balance of receivable accounts
of individual account with large amount
Impairment test performed individually, bad debt provision will be
Basis of bad debt provision provided at the difference of expected cash flow lower than the book
value.
2. Recognition and providing basis of bad debt reserves for group of receivable accounts with similar
characteristics of credit risks
(1) Basis of recognition and providing of bad debt provision
Basis of recognition for groups
Group by age analysis With similar characteristics of credit risks
Basis of bad debt provision
Group by age analysis Age analysis method
(2) Age analysis
Age Provision rate for Rate for other receivables (%)
receivables (%)
Within 1 yr, (included, same for the 5 5
followings)
1-2 years 20 20
2-3 years 40 40
Over 3 years 60 60
3. Recognition and providing methods of receivable account with minor amount and under individual impairment
test
When there is significant difference between the current value of future cash
Basis of providing bad debt
flow of the receivable account and the current value of future cash flow of the
individually
group
Impairment test performed individually, bad debt provision will be provided at
Basis of bad debt provision
the difference of expected cash flow lower than the book value.
As for other receivable accounts such as notes, prepayments, interests, and long-term receivables, bad debt
provisions will be provided upon the differences of expectable cash flow lower than the booked value.
(XI) Inventories
1. Categorizing of inventories
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and goods
in manufacturing procedure or working procedure.
33
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
2. Pricing of delivering inventory
Delivered out materials are accounted by weighted average method, issued out finished products are accounted at
individual price.
3. Recognition of inventory realizable value and providing of impairment provision
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..
4. Inventory system
Inventory is inventoried by perpetual inventory system
5. Amortizing of low-value consumables and packaging materials
Consumables are amortized on one-off basis. Packing materials for manufacturing are accounted directly into
manufacturing cost.
(XII) Long-term equity investment
1. 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.
(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.
(3) For the long-term equity investments formed by other than merger of enterprises: if it is gotten by paying cash,
the initial investment cost is recognized by purchasing price when buy; if it is gotten by issuing equity securities,
the initial investment cost is recognized by the fair value of the securities; if it is gotten by investor’s investment,
the initial investment cost is recognized by investment contract or agreed value in contract (except the not fair
contract value).
2. Subsequent measurement and recognition of gain/loss
Cost basis is adopted in accounting of those long-term equity investments by which the Company has substantial
control, and is adjusted in composing combined finance report according to equity basis; and those has no
common control or major influence without quotation in an active market and the fair value cannot be reliably
measured is also recalculated by cost basis. And equity basis is adopted in accounting of those long-term equity
investments by which the Company has joint control or major influence on the invested enterprise.
3. Basis of recognizing common control and significant 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 major influence.
4. Impairment examination and providing of impairment provision
When physical evidence showing that the investment in subsidiaries, affiliates, and joint ventures are impaired,
impairment provision shall be provided upon the balance between the book value and retrievable value; where the
long term equity investment with no control power or significant influence and has no quotation in an active
34
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
market and the fair value cannot be reliably measured, long-term investment impairment provision will be
provided according to “Enterprise Accounting Standard No.22 – Recognition and measure of financial instrument.
(XIII) Fixed assets
1. Recognition, pricing and depreciation of fixed assets
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 booked at practical cost. Depreciation started at the next month of the asset become usable on age
average basis.
2. Depreciation of fixed assets
Items Depreciation age (yrs) Salvage value rate % Annual depreciation ratio (%)
Houses & buildings 20-30 4 3.2-4.8
Equipment & machinery 8-15 4 6.4-12
Office equipment 5 4 19.2
3. Impairment testing and impairment provisions
At balance sheet day, when evidence showing that impairment has occurred to fixed asset, impairment provision
shall be provided at the balance between the book value and retrievable value.
(XIV) 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.
3. At the balance sheet day, if there is evidence of impairment occurred to the construction in process, impairment
provision would be provided at the balance between the book value and retrievable value.
(XV) 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) Nessesary 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. Amount of loan expense capitalization
35
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
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.
(XVI) Intangible assets
1. Intangible assets are land using rights, patents, 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 Amortizing years
Land using right 50
Operation rights of waste heat power plant on actual operation term
Mining rights 10-30
Others 5
3. When evidence showing that an intangible asset with certain useful life is impaired, impairment provision shall
be provided upon the balance between the book value and its retrievable value; impairment tests are performed on
annual basis on intangible asset without certain useful life and those not yet in useful status.
4. Expenditures of internal researching projects are accounted into current term gain and loss when happens. The
development period expenditures are recognized as intangible assets when fulfill following conditions: (1) The
intangible asset is completed and technically possible to be used or sold; (2) With intention to complete the
intangible asset for purpose of use or sale; (3) Evidence showing that there are markets or the products produced
with using of the intangible asset, or markets of the intangible asset itself, by which the intangible asset may
produce financial benefits. Intangible assets used inside the Company must be approved for their usable characters.
(4) Developing of the intangible assets are supported by sufficient technical, financial, and other resources, and
the intangible assets can be used or sold. (5) Expenditures occurred in developing of the intangible asset may be
reliably measured.
(XVII) Long-term amortizable expenses
Long-term amortizable expenses are recorded at actual amount occurred, and straight amortized to stipulated
periods. In case a long-term expense was not benefiting the succeeding periods, then the balance of the account
shall be transferred over to current income account.
(XVIII) Expected liabilities
1. Liabilities caused by contingent issues such as providing of guarantee, lawsuit, quality warranty, and loss
contract are regarded as current liabilities of the Company. Executing of these liabilities may cause benefit outflow.
These are recognized as expectable liabilities when they can be measured reliably.
2. The best prediction is used in initial measurement when the relative liability is excercised, and revised at
balance sheet day.
(XIX) Turnover
1. Sales of goods
Sales income is recognized when all of these conditions are satisfied: Major risks and rewards attached to the
goods have been transferred to the purchaser; The Company holds neither successive management power which is
normally attached to ownership, nor effective control, over the goods which have been sold out; Amount of
income may be reliably measured; when the costs, occurred or will occur, may be measured reliably.
2. Providing of labor service
36
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
At balance sheet day, those service trades (simultaneously satisfying the requirements of those: income can be
measured reliably, related economic benefit will flow in very possibly, transaction procedure can be confirmed
reliably, happened and happening cost can be measured reliably) which can be reliably estimated are recognized at
the percentage of completion, and progress of completion of service is decided by the portion of costs occurred
over the estimated total costs. At balance sheet day, those service trades which can not be reliably estimated, if the
happened services cost will be compensated, the services income are recognized according to happened service
cost and transited to service cost according to same amount; if the happened services cost will not be compensated,
the happened services cost are accounted into current term’s gain or loss and the services income will not be
recognized.
3. Demising of asset using rights
Income from giving of assets is recognized when satisfying requirements: related economic benefit flows in very
possibly, income can be measured reliably. Amount of interest income is calculated according to the time and
actual interest rate of the monetary capital is used by other party. Income of using fee is calculated upon the
charge period and calculation provided by the related contract or agreement.
(XX) Government subsidy
1. Government subsidies are divided into asset-related subsidies and income-related subsidies.
2. Monetary government subsidies are measured on actual amount or receivable amount; non-monetary subsidies
are measured at fair value; when no fair value is available, measured at named amount.
3. Asset-related government subsidies are recognized as differed income, amortized straight to its useful life and
recorded into current income account. Those income-related government subsidies used to makeup expenses or
losses in succeeding periods are recognized as differed income and recorded in current income account at the
related expenses is recognized; those used to makeup expenses or losses already occurred are recorded into
current income account instantly.
(XXI) Deferred income tax assets/ deferred income tax liabilities
1. Differed 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. Differed 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 differed 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.
37
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
III. Taxations
(I) Main taxes and rates
Class of taxes Tax basis Tax ratio
VAT sales of goods or providing of taxable labor service 17%
Business tax Taxable turnover 5%
For those on price basis, taxes are paid at 1.2% of the balance of original
1.2% 、
Property tax value of the property after deducting of 30%; for those on rental basis,
taxes are paid at 12% of the rental. 12%
City maintenance and
Turnover tax payable 7%
construction tax
Education surtax Turnover tax payable 3%
Local education
Turnover tax payable 2%
surcharges
Enterprise income tax Amount of income taxable [Note]
[Note]: Hangzhou Zhongneng Steam Turbine Power Co., Ltd. and the Company were recognized as high-tech
enterprises in 2008, and subject to 15% of income tax from 2008 to 2010. According to the Guide to Recognition
of High-tech Enterprises, the recognition certificate is effective for term of three years, and will be reviewed upon
expiration. Failing of applying for reviewing or disqualified in reviewing will cause discard of the certificate. The
Company has applied for reviewing and it is in process.
The Company, Hangzhou Zhongneng Steam Turbine Power Co., Ltd., Hangzhou Steam Turbine Casting Co., Ltd.
are subject to 15% of tax temporarily, Zhejiang Huayuan Steam Turbine Machinery Co., Ltd. and Hangzhou
Guoneng Steam Turbine Engineering Co., Ltd. are subject to 12.5% of tax, the other subsidiaries are subject to
25% of tax.
(II) Preferable tax policies and approving documents
1. According to the document 浙科发高[2008]314 titled “Notification of Awarding the Second Lot of High-Tech
Enterprises of Year 2008” issued jointly by Zhejiang Bureau of Science and Technology, Zhejiang Bureau of
Finance, Zhejiang National Tax Bureau, and Zhenjiang Local Tax Bureau, the Company was certified the
High-Tech Enterprise.
2. According to the document 浙科发高[2008]250 titled “Notification of Awarding the First Lot of High-Tech
Enterprises of Year 2008” issued jointly by Zhejiang Bureau of Science and Technology, Zhejiang Bureau of
Finance, Zhejiang National Tax Bureau, and Zhenjiang Local Tax Bureau, the Company was certified the
High-Tech Enterprise of 2008.
3. According to the document 浙科发高[2010]183 titled “Notification of Awarding the First Lot of High-Tech
Enterprises of Year 2010” issued jointly by Zhejiang Bureau of Science and Technology, Zhejiang Bureau of
Finance, Zhejiang National Tax Bureau, and Zhenjiang Local Tax Bureau, Casting Co. was certified the
High-Tech Enterprise of 2008, therefore enjoys 15% of income tax rate from 2010 to 2012.
4. According to “Approval to Hangzhou Guoneng Steam Turbine Engineering Co., Ltd. for remitting of taxes at
fixed period” (余国税外〔2008〕290 号) issued by Zhejiang Hangzhou National Tax Bureau, Hangzhou Guoneng
Steam Turbine Engineering Co., Ltd. is enjoying preferable taxation policies at fixed period, namely, 2007 was the
year the company started to make profit, it was free of tax for 2007-2008, and 12.5% of tax rate for 2009-2011.
5. According to “Notification of certifying Zhejiang Huayuan Steam Turbine Machinery Co., Ltd. and other three
foreign invested manufacturers to enjoy tax remitting policies at fixed period” (德国税发 2007]19 号) issued by
Zhejiang Deqing County National Tax Bureau, Zhejiang Huayuan Steam Turbine Machinery Co., Ltd. was
qualified to enjoy income tax remitting policies at fixed periods, namely, 2007 was the year the company started
to make profit, it was free of tax for 2007-2008, and 12.5% of tax rate for 2009-2011.
38
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
IV. Enterprise consolidation and consolidated financial statements
(I) Profiles of subsidiaries
Subsidiaries acquired through incorporation or investment
Full name of the Ownership of Business Registered Organization
Reg. Add. Business Scope
subsidiary the subsidiary property capital code
Zhejiang Steam Development of electrical &
Trubine Packaged mechanical equipment cotrol
Technologies Controlled Hangzhou unit and technical consulting
Manufacturing 30 mil 726600160
Development Co., subsidiaries Zhejiang service
Ltd. (the Packaged
Tech Co.)
Designing and manufacturing
of steam turbines and
Hangzhou supplementary equipment and
Controlled Hangzhou
Zhongneng Steam Manufacturing 92.5 mil parts; sales of the Company’s 143033969
subsidiaries Zhejiang
Turbine Power products; contracting and
Co., Ltd. consulting of mid-small size
(Zhongneng Co.) power plants
Manufacturing of cast iron and
Hangzhou Steam steel products; installation and
Controlled Hangzhou
Turbine Casting Manufacturing 22 mil maintenance of casting 759502452
subsidiaries Zhejiang
Co., Ltd. (Casting equipments; sales of the
Co.) Company’s products
Hangzhou Steam Manufacturing of auxiliary
Turbine Auxiliary equipment of steam turbine
Controlled Hangzhou 765491278
Machinery Co., Manufacturing 80 mil
subsidiaries Zhejiang
Ltd. (Auxiliary
Machinery Co.)
Hangzhou Steam Manufacturing and processing
Turbine of steam turbine auxiliary parts
Machinery Controlled Hangzhou and other machinery auxiliary
Manufacturing 30 mil 759545858
Equipment Co., subsidiaries Zhejiang parts
Ltd. (Machinery
Equipment Co.)
Zhejiang Huayuan Manufacturing and processing
Holding
Steam Turbine of steam turbine parts
subsidiary of Huzhou 79205170-2
Machinery Co., Manufacturing 21 mil
the Machinery Zhejiang
Ltd. (Huayuan
Co.
Co.)
Hangzhou Steam turbine periphery;
Guoneng Steam Holding service: design, installation,
Turbine subsidiary of Hangzhou consultation, technology 79365592-X
Manufacturing 40 mil
Engineering Co., the Auxiliary Zhejiang service of steam turbine system
Ltd. (Guoneng Machine Co. and related equipments.
Co.)
Hangzhou Steam Steam turbine and auxiliary
Turbine Group equipment designing and
Equipment Holding installation, equipment system
Hangzhou
System subsidiary of Manufacturing 20 mil engineering 665242928
Zhejiang
Engineering Co., Zhongneng Co.
Ltd. (Group
System Co.)
Designing of cooling and
Hangzhou depressurizing equipment and
Pangtong
Holding accessories; manufacturing
Electronic Hangzhou
subsidiary of Manufacturing 1 mil (assembling only): cooling and 68294625-7
Equipment Co., Zhejiang
Zhongneng Co. depressurizing equipment;
Ltd. (Pangtong
Co.) wholesale and retailing:
cooling and depressurizing
39
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
equipment and related
equipment
Hangzhou
Holding
Kaineng Forge Hangzhou
subsidiary of Manufacturing 2 mil Forging and casting materials 69170337X
Co., Ltd. (Kaineng Zhejiang
Casting Co.
Co.)
Hangzhou Manufacturing of single pole
Tongneng Turbine Full-holding steam turbine; technical
Hangzhou
Machinery Co., subsidiary of Manufacturing 3 mil service, development, and 685832685
Zhejiang
Ltd. (Tongneng Zhongneng Co. consulting, designing of
Co.) turbine equipment
Guizhou
Holding
Zhongcheng Dushan chamotte and concrete
subsidiary of Manufacturing 50 mil 692740682
Concrete Co., Ltd. Guizhou manufacturing
Zhongneng Co.
(Zhongcheng Co.)
Steam turbine, gass turbine,
generator, gear box, boiler, air
cooler, condensator, power
Zhejiang Turbine
plant auxiliary equipment,
Import & Export Fully-owned Hangzhou
Commerce 20 mil water turbine, air compressor, 698284761
Co., Ltd. (Turbine subsidiary Zhejiang
fan, controlling equipment,
Co.)
spare parts, and materials.
Sales and assembling of the
above, import and export.
Researching, developing and
application of energy saving
Hangzhou Energy and environment protection
Controlled
Saving technologies; promoting and
subsidiary of
Technologies & Hangzhou Service sales of environment protection 731997174
the Packaged 1 mil
Design Co., Ltd. Zhejiang industry products; technical consulting
Tech Ltd. of
(“Energy Saving services, feasibility
HSTG
Co.”) researching, designing, and
contracting of environment
protection projects
(Continue)
Balance of other items actually
Actual investment at Share Voting
Full name of the subsidiary formed net investment in the Consolidated?
end of term proportion % power %
subsidiaries
Zhejiang Steam Turbine Packaged
RMB16.2602 mil. 51.84 51.84 Yes
Technology Development Co., Ltd.
Hangzhou Zhongneng Steam Turbine
RMB5.6009 mil. 51.60 51.60 Yes
Power Co., Ltd.
Hangzhou Steam Turbine Casting
RMB11.22 mil. 51 51 Yes
Co., Ltd.
Hangzhou Steam Turbine Auxiliary
RMB19.2446 mil. 76.50 76.50 Yes
Machine Co., Ltd.
Hangzhou Steam Turbine Machinery
RMB7.9680 mil. 52 52 Yes
& Equipment Co., Ltd.
Zhejiang Huayuan Steam Turbine
RMB15.75 mil. 75 75 Yes
Machinery Co., Ltd.
Hangzhou Guoneng Steam Turbine
30 mil 75 75 Yes
Engineering Co., Ltd.
Hangzhou Steam Turbine Power
Group Packaged Project Engineering RMB30.2269 mil. 70 70 Yes
Co., Ltd.
Hangzhou Pangtong Electronic
RMB700 thousand 70 70 Yes
Equipment Co., Ltd.
Hangzhou Kaineng Forge Co., Ltd. 2 mil 100 100 Yes
Hangzhou Tongneng Turbine
3 mil 100 100 Yes
Machinery Co., Ltd.
Guizhou Zhongcheng Concrete Co.,
30 mil 60 60 Yes
Ltd.
Zhejiang Turbine Import & Export 20 mil 100 100 Yes
40
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Co., Ltd.
Hangzhou Energy-saving
Technologies and Design Institute RMB700 thousand 70 70 Yes
Ltd.
(Continue)
Amount for deducting Balance of owners’ equity of parent co.
Minor shareholders’ minor shareholder’s less minor shareholders’ share of current
Full name of the subsidiary
equity equity in the minor loss over the share of minor shareholder’s
shareholder’s equity equity at beginning of term
Zhejiang Steam Turbine Packaged
33,216,207.35
Technology Development Co., Ltd.
Hangzhou Zhongneng Steam Turbine Power
114,349,067.69
Co., Ltd.
Hangzhou Steam Turbine Casting Co., Ltd. 88,377,917.96
Hangzhou Steam Turbine Auxiliary Machine
63,284,110.87
Co., Ltd.
Hangzhou Steam Turbine Machinery &
57,528,710.48
Equipment Co., Ltd.
Zhejiang Huayuan Steam Turbine Machinery
365,427.82
Co., Ltd.
Hangzhou Guoneng Steam Turbine
Engineering Co., Ltd.
Hangzhou Steam Turbine Power Group
38,172,240.01
Packaged Project Engineering Co., Ltd.
Hangzhou Pangtong Electronic Equipment
361,111.72
Co., Ltd.
Hangzhou Kaineng Forge Co., Ltd.
Hangzhou Tongneng Turbine Machinery Co.,
Ltd.
Guizhou Zhongcheng Concrete Co., Ltd. 13,425,883.57
Zhejiang Turbine Import & Export Co., Ltd.
Hangzhou Energy-saving Technologies and
-89,090.06
Design Institute Ltd.
408,991,587.41
41
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
V. Notes to the Consolidated Financial Statements
(I) Notes to Consolidated Balance Sheet
1. Monetary capital
(1) Details
End of term Beginning of term
Items Original Exchange Translated to RMB Original Exchange Translated to RMB
currency rate currency rate
Cash in stock
RMB 241,094.70 301,107.29
301,107.29
Sub-total 241,094.70
Bank account:
RMB 633,673,221.00 608,039,163.57
USD 2,255,185.02 6.4716 14,594,655.39 1,966,732.48 6.6227 13,025,079.19
JPY 3,459.00 0.08024 277.56 6,493.00 0.08126 527.62
EURO 1,637,906.80 9.3612 15,332,773.14
HKD 0 8,875.89 0.8478 7,524.98
Sub-total 663,600,927.09 621,072,295.36
Other monetary
capital
RMB 31,568,590.10
27,669,281.00
USD 624,428.40 6.6227 4,135,401.96
Sub-total 27,669,281.00 35,703,992.06
Total 691,511,302.79 657,077,394.71
(2) Statement on accounts on pledge, mortgage, freezing, constrain to use, saved overseas, or with potential risks
Other monetary capital at end of term includes RMB2,669,281.00 of contract guarantee deposit and
RMB25,000,000.00 of bank accept note deposit.
2. Notes receivable
(1) Details
End of term Beginning of term
Category Book balance Bad debt Book value Book Bad debt Book value
ision vision
Bank acceptance 552,775,501.47 552,775,501.47 713,585,305.36 713,585,305.36
Total 552,775,501.47 552,775,501.47 713,585,305.36 713,585,305.36
3. Account receivable
(1) Details
1) Detailed categories
42
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
% % % %
Major
single
amount and
bad debt
provision
provided
individually
Bad debt
provided on
group basis
Group by
age 2,114,365,129.88 100.00 364,653,274.18 17.25 1,976,123,943.77 99.95 323,600,056.49 16.38
analysis
Sub-total 2,114,365,129.88 100.00 364,653,274.18 17.25 1,976,123,943.77 99.95 323,600,056.49 16.38
Minor
single
amount but
bad debt 1,011,694.00 0.05 1,011,694.00 100.00
provision
provided
individually
Total 2,114,365,129.88 100.00 364,653,274.18 17.25 1,977,135,637.77 100.00 324,611,750.49 16.42
2) Receivable accounts on which bad debt provisions are provided on age basis in the group
End of term Beginning of term
Age Book balance Book balance
Bad debt
Proportion Proportion Bad debt provision
Amount provision Amount
% %
within 1 yr 1,259,469,899.29 59.57 62,973,494.93 1,216,678,914.91 61.57 60,833,945.77
1-2 yrs 409,118,441.30 19.35 81,823,688.27 384,740,920.10 19.47 76,948,184.01
2-3 yrs 238,049,913.00 11.26 95,219,965.20 195,022,692.74 9.87 78,009,077.09
over 3 yrs 207,726,876.29 9.82 124,636,125.78 179,681,416.02 9.09 107,808,849.62
Sub-total 2,114,365,129.88 100.00 364,653,274.18 1,976,123,943.77 100.00 323,600,056.49
(2) Receivable accounts due from shareholders with 5% of shares or over
End of term Beginning of term
Name of the companies
Book balance Bad debt provision Book balance Bad debt provision
Hangzhou Steam Turbine 856,500.00 374,300.00 876,500.00 246,700.00
Group
Sub-total 856,500.00 374,300.00 876,500.00 246,700.00
43
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(3) Receivable accounts top 5 on amounts
Relation with the Portion in balance of receivable
Name of the companies Book balance Age
Company accounts (%)
Shenyang Turbine Machinery Co., Non-related [Note 1] 24.64
521,078,587.90
Ltd.
Xi’an Shanggu Power Co., Ltd. Non-related 215,648,223.75 [Note 2] 10.20
Chongqing Zhongjieneng Sanfeng Non-related [Note 3] 3.81
80,554,081.75
Energy Co., Ltd.
Hangzhou Steam Turbine Power Sales Related parties [Note 4] 2.94
62,083,503.67
Co., Ltd.
Tangshan Shenglong Cement Co., Ltd. Non-related within 1 1.68
35,479,487.18 year
Sub-total 914,843,884.25 43.27
[Note 1] Shenyang Turbine Machinery Holdings Co., Ltd. has a balance of receivable within 1 year of
RMB326,163,548.00, 1-2 years of RMB95,267,724.50 2-3 years of RMB61,242,103.40, and over 3 years of
RMB38,405,212.00.
[Note 2]: Xi’an Shan’gu Power Holdings Co., Ltd. has a balance of receivable within 1 year of
RMB90,058,091.15, 1-2 years of RMB49,907,110.40, 2-3 years of RMB44,627,966.96, and over 3 years of
RMB31,055,055.24.
[Note 3]: Chongqing Zhongjieneng Sanfeng Energy Co., Ltd. has a balance of receivable within 1 year of
RMB73,129,081.75, and 1-2 years of RMB7,425,000.00.
[Note 4]: Hangzhou Steam Turbine Power Sales Co., Ltd. has the balance of receivable accounts within 1 year of
RMB 41,418,340.00, 1-2 years of RMB14,861,163.67, and 2-3 years of RMB5,804,000.00.
(5) Other receivable accounts of related parties
Relation with the Portion in balance of receivable
Name of the companies Book balance
Company accounts (%)
Hangzhou Steam Turbine Power Sales Co., Ltd. Affiliate of the Group 62,083,503.67 2.94
Hangzhou Steam Turbine Power Technologies Affiliate of the Group 1,520,000.00 0.07
Co., Ltd.
Hangzhou Hangfa Power Generating Equipment
Affiliate of the Group 68,500.00 0.00
Co., Ltd.
HSTG Nanfang Sales Co. Affiliate of the Group 20,000.00 0.00
Hangzhou Nanfangtongda Gears Co., Ltd. Affiliate of the Group 1,284,434.00 0.06
Sub-total 64,976,437.67 3.07
4. Prepayment
(1) Age analysis
End of term Beginning of term
Age Proportion Bad debt Proportion Bad debt
Book balance Book value Book balance Book value
% provision % provision
within 1
270,301,899.42 98.45 270,301,899.42 178,603,790.64 96.82 178,603,790.64
yr
1-2 yrs 2,090,800.00 0.76 2,090,800.00 4,437,373.90 2.41 4,437,373.90
2-3 yrs 1,919,187.76 0.70 1,919,187.76 990,524.46 0.54 990,524.46
over 3
236,365.00 0.09 236,365.00 432,446.00 0.23 432,446.00
yrs
Total 274,548,252.18 100.00 274,548,252.18 184,464,135.00 100.00 184,464,135.00
(2) Top 5 prepayment account in amount
Name of the companies Relation with the End of term Age Reason of unsettled
44
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Company
Ha’erbin Steam Turbine Factory Ltd. Non-related 44,100,000.00 within 1 In schedule as the
year contract
Hangzhou Hangguo Industrial Boiler Co., Ltd. within 1 In schedule as the
Non-related 16,450,000.00
year contract
Mitsubishi Non-related within 1 In schedule as the
10,839,717.41 year contract
Zhejiang Southern Boiler Co., Ltd. Non-related 10,070,000.00 within 1 In schedule as the
year contract
BGEA Batignolles Thermal Technologies Non-related within 1 In schedule as the
(Changshu) Co., Ltd. 8,934,000.00 year contract
Sub-total 90,393,717.41
5. Other account receivable
1) Detailed categories
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
% % % %
Major single
amount and bad
debt provision
provided
individually
Bad debt provided
on group basis
Group by age
61,684,799.84 93.90 4,835,026.57 7.84% 37,532,124.11 90.35 3,383,006.16 9.01
analysis
Sub-total 61,684,799.84 93.90 4,835,026.57 7.84% 37,532,124.11 90.35 3,383,006.16 9.01
Minor single
amount but bad
debt provision 4,010,320.94 6.10 4,010,320.94 100.00% 4,010,320.94 9.65 4,010,320.94 100.00
provided
individually
Total 65,695,120.78 100.00 8,845,347.51 13.46 41,542,445.05 100.00 7,393,327.10 17.80
2) Other receivable accounts in the group on which bad debt provisions are provided on age basis
End of term Beginning of term
Age Book balance Book balance
Proportion % Bad debt provision Bad debt provision
Amount Amount Proportion %
within 1 yr 55,467,645.60 89.92 2,773,382.28 32,632,654.02 86.95 1,631,632.70
1-2 yrs 4,018,930.64 6.51 803,786.13 2,715,526.49 7.24 543,105.30
2-3 yrs 305,380.00 0.50 122,152.00 510,490.00 1.36 204,196.00
Over 3 years 1,892,843.60 3.07 1,135,706.16 1,673,453.60 4.45 1,004,072.16
Sub-total 61,684,799.84 100.00 4,835,026.57 37,532,124.11 100.00 3,383,006.16
3) Other receivable accounts with minor amount but bad debt provided individually at end of term
45
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Description of other receivables Book balance Bad debt provision Rate Reason to provide
Customs deposit receivable 4,010,320.94 4,010,320.94 100.00% Hard to recover
Sub-total 4,010,320.94 4,010,320.94
(2) No receivable account due from shareholding parties holding over 5% of the Company’s shares.
(3) Top 5 other receivables
Relation with the Percentage in total other Property of the
Name of the companies Book balance Age
Company receivable % account
Tax refund receivable Non-related 20,325,811.35 within 1 Tax refund
30.94
year receivable
Customs deposit receivable Non-related Over 3
4,010,320.94 6.10 Deposit
years
Beijing Shuoyingwei Non-related within 1
2,136,925.00 3.25 Bidding deposit
Technologies Co., Ltd. year
Chongqing Construction Bidding Non-related within 1
1,600,000.00 2.44 Bidding deposit
and Trade Center year
Guodian Trust Bidding Co., Ltd. Non-related within 1
1,476,800.00 2.25 Bidding deposit
year
Sub-total 29,549,857.29 44.98
(4) No other receivable due from related parties
6. Inventories
(1) Details
End of term Beginning of term
Items
Book balance Impairment Book value Book balance Impairment Book value
provision provision
Stock
348,735,995.33 348,735,995.33 325,615,029.64 325,615,029.64
materials
Product in
459,397,531.29 459,397,531.29 427,635,851.30 427,635,851.30
process
Products in
757,543,463.45 1,482,365.58 756,061,097.87 417,190,552.00 1,482,365.58 415,708,186.42
stock
Total 1,565,676,990.07 1,482,365.58 1,564,194,624.49 1,170,441,432.94 1,482,365.58 1,168,959,067.36
(2) Inventory depreciation provision
Beginning of Increased this Decreased this term
Items End of term
term term Written back Transferred
Products in stock 1,482,365.58 1,482,365.58
Sub-total 1,482,365.58 1,482,365.58
46
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
7. Long-term share equity investment
(1) Details
Calculating Beginning of
Company invested in Investment cost Changed by End of term
basis term
Zhejiang Tianhang Steam Turbine Cost basis 10,000,000.00 10,000,000.00 10,000,000.00
Auxiliary Machinery Co., Ltd.
Zhejiang Zhongkong Solar Energy Cost basis 15,000,000.00 15,000,000.00 15,000,000.00
Technologies Co., Ltd.
Hangzhou Changwutan Investment Cost basis 20,000,000.00 20,000,000.00 20,000,000.00
Partnership Enterprise
Zhejiang Sanxin Automatic Engineering Cost basis 600,000.00 600,000.00 0 600,000.00
Co., Ltd.
Greenesol Co. (India) Cost basis 5,534,773.22 1,032,411.62 4,502,361.60 5,534,773.22
Hangzhou Bank Cost basis 390,954,040.00 390,954,040.00 0 390,954,040.00
Total 442,088,813.22 402,586,451.62 39,502,361.6 442,088,813.22
(Continue)
Impairment
Share Statement on differences
Voting Impairmen provision Cash dividend of
Company invested in proportion between the shareholding
power % t provision provided the current term
% and voting rights
this term
Zhejiang Tianhang Steam 1,000,000.00
Turbine Auxiliary Machinery 33.33 33.33
Co., Ltd.
Zhejiang Zhongkong Solar 6 6 0
Energy Technologies Co., Ltd.
Hangzhou Changwutan 0
Investment Partnership 21.28 21.28
Enterprise (with limited
liabilities)
Zhejiang Sanxin Automatic 6.00 6.00 0
Engineering Co., Ltd.
Greenesol Co. (India) 37.00 37.00 0
Hangzhou Bank 6.92 6.92 23,118,640.00
Total 24,118,640.00
(2) Other statements
(1) The Auxiliary Machine Co. – the controlled subsidiary of the Company has invested RMB10,000,000 in
Zhejiang Tianhang Steam Turbine Auxiliary Machinery Co., Ltd. and take 33.33% of the share equities.
According to the agreement, the Company adopts fixed return in accounting of this long-term equity investment.
In case of the revenue of the company is lower than RMB80 million, the return rate after tax will be 10%, ie.
RMB1,000,000; in case of the revenue is over RMB80 million, the return rate after tax will be 12%, ie.
RMB1,200,000. For the above long-term equity investment adopts agreement rewarding scheme, the Auxiliary
Machinery Co. accounts the long-term equity investment on cost basis.
2) Auxiliary Co. invested RMB20 million in Hangzhou Changwutan Investment Partnership Enterprise (limited
liabilities) to hold 21.28% of the shares. According to Article 2.6.1 of the Agreement of Association, the business
term of Hangzhou Changwutan Investment Partnership Enterprise (limited liabilities) is one and a half year upon
granting of business license, and 18 months since founding of it.
47
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Article 2.62, upon expiring of business term, the part of capital of Hangzhou Changwutan Investment Partnership
Enterprise (limited liabilities) which were not put into investment projects shall be refunded to the investors
against the portions of substantial input of each investor after deducting of predicted expenses and within 15 days
after closing of the business. If the expected annual returns (whereas RMB1 million ≤ input amount < RMB33
million, the expected return is 10%; RMB3 million ≤ input amount < RMB8 million, it is 11%; and input
amount ≥ RMB8 million, it is 12%) for the partners with limited liabilities are failed to be duly paid, then
Hangzhou Municipal Construction Group Co., Ltd. shall assume the joint liabilities.
Cost basis is adopted by Auxiliary Co. in accounting of this long-term equity investment.
3) The Company has no major influence on Greenesol from India, thus the long-term investment equity is
accounted on cost basis.
8. Fixed assets
(1) Details
Items Beginning of term Increased this term Decreased this term End of term
1) Subtotal of original book value 1,360,098,698.31 95,818,121.74 6,922,082.43 1,448,994,737.62
Houses & buildings 419,754,050.65 85,000.00 419,839,050.65
Equipment & machinery 831,726,096.84 87,455,532.91 2,904,396.20 916,277,233.55
Office equipment 108,618,550.82 8,277,588.83 4,017,686.23 112,878,453.42
2) Subtotal of accumulated depreciation 523,625,520.76 44,600,906.44 2,840,969.57 565,385,457.63
Houses & buildings 105,687,173.97 6,191,049.60 111,878,223.57
Equipment & machinery 351,059,948.31 32,410,850.11 130,506.25 383,340,292.17
Office equipment 66,878,398.48 5,999,006.73 2,710,463.32 70,166,941.89
3) Subtotal of net book value 836,473,177.55 883,609,279.99
Houses & buildings 314,066,876.68 307,960,827.08
Equipment & machinery 480,666,148.53 532,936,941.38
Office equipment 41,740,152.34 42,711,511.53
4) Subtotal of impairment provision 8,153,165.31 8,153,165.31
Houses & buildings 1,504,928.24 1,504,928.24
Equipment & machinery 4,456,360.17 4,456,360.17
Office equipment 2,191,876.90 2,191,876.90
5) Total of book value 828,320,012.24 875,456,114.68
Houses & buildings 312,561,948.44 306,455,898.84
Equipment & machinery 476,209,788.36 528,480,581.21
Office equipment 39,548,275.44 40,519,634.63
Depreciation of current term is RMB44,600,906.44; the original value of construction-in-process transferred to
fixed is RMB81,583,858.24.
(2) Other statements
At end of term, there was RMB147,551,767.42 of book value of fixed assets under Casting Co. was used to
pledge for loan.
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
9. Construction in process
(1) Details
End of term Beginning of term
Project Impairment Impairment
Book balance Book value Book balance Book value
provision provision
D260 digital boring 28,927,211.67 28,927,211.67
Shrunk on rotor of general
1,540,998.35 1,540,998.35
assembling factory
Imported 6.3m vertical lathe
47,743,438.90 47,743,438.90
of Factory No.2
Steam turbine for
supplementary water supply
348,144.14 348,144.14 348,144.14 348,144.14
of million class nuclear
power plant
Workshop reconstruction of
2,019,445.99 2,019,445.99 1,952,890.88 1,952,890.88
No.1 factory
Reconstruction of main
139,666.00 139,666.00 139,666.00 139,666.00
entrance of preparation house
Environment project of
1,013,012.89 1,013,012.89 1,012,255.89 1,012,255.89
temporary yard
Newly installed 24m 20t
0 0 620,866.77 620,866.77
crane of factory No.1
Reconstruction of electronic
system and pipe system of 851,234.95 851,234.95 596,263.13 596,263.13
factory No.1
Upgrading of 24 testing
platform of quality control, 270,963.24 270,963.24 360,963.24 360,963.24
purchasing of accessory part
Preparation Workshop,
345,197.00 345,197.00 103,550.00 103,550.00
cleaning of old foundation
15-10PF digital milling
770,991.84 770,991.84 11,279.55 11,279.55
machine electronic reforming
Relocating and reforming of
1,617,314.97 1,617,314.97 23,990.80 23,990.80
South High Assembling
Relocating and reforming of
1,741,504.35 1,741,504.35 20,811.80 20,811.80
North High Assembling
No.1 Steam Turbine,
1,091,056.16 1,091,056.16 0 0
D800X5000 grinder
Quality Inspection, Lube oil
399,592.22 399,592.22 399,592.22 399,592.22
meter
General Assembling, 25m
testing platform, oil pipe 477,502.00 477,502.00 433,819.16 433,819.16
system reforming
Equipment, digital milling
machine, reforming of 483,457.22 483,457.22 242,145.45 242,145.45
driving system
Quality Inspection, Lube oil
686,923.08 686,923.08 0 0
meter
Computer Dept., computers
433,529.91 433,529.91 0 0
and network facilities
No.1 Steam Turbine,
reforming of southeast rain 246,716.16 246,716.16 0 0
pipe
The New Testing Workshop,
Reconstruction of office 489,688.90 489,688.90 30,000.00 30,000.00
building
Casting Co. 5,963,215.43 5,963,215.43 58,680.00 58,680.00
New factory of Zhongneng
10,181,143.00 10,181,143.00 9,478,835.00 9,478,835.00
Co.
Small projects of Zhongneng
5,957,170.87 5,957,170.87 53,751.00 53,751.00
Other small items 6,902,955.90 6,902,955.90 4,431,425.23
49
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
4,431,425.23
Total 42,430,426.22 42,430,426.22 98,530,579.18 98,530,579.18
(2) Changes and alternations
1) Details
Beginning of Increased this Transferred into Other Investment on
Project Budget
term term fixed assets decreases budget (%)
D260 digital boring 3500 28,927,211.67 341,150.42 29,268,362.09
Shrunk on rotor of general
120 1,540,998.35 0 1,540,998.35 128
assembling factory
Imported 6.3m vertical lathe of
4500 47,743,438.90 581,021.96 48,324,460.86 107
Factory No.2
Steam turbine for supplementary
348,144.14
water supply of million class nuclear 662 0 0 5
power plant
Workshop reconstruction of No.1
210 1,952,890.88 66,555.11 0
factory
Reconstruction of main entrance of 139,666.00
120 0 0
preparation house
Environment project of temporary
98 1,012,255.89 757.00 0
yard
Newly installed 24m 20t crane of
80 620,866.77 12.60 620,879.37 78
factory No.1
Reconstruction of electronic system
90 596,263.13 254,971.82 0 - 95
and pipe system of factory No.1
Upgrading of 24 testing platform of
quality control, purchasing of 60 360,963.24 -90,000.00 0 45
accessory part
Preparation Workshop, cleaning of
103,550.00 241,647.00 0
old foundation
15-10PF digital milling machine
11,279.55 759,712.29 0
electronic reforming
Relocating and reforming of South
23,990.80 1,593,324.17 0
High Assembling
Relocating and reforming of North
20,811.80 1,720,692.55 0
High Assembling
No.1 Steam Turbine, D800X5000
0 1,091,056.16 0
grinder
Quality Inspection, Lube oil meter 399,592.22 0 0
General Assembling, 25m testing
433,819.16 43,682.84 0
platform, oil pipe system reforming
Equipment, digital milling machine,
242,145.45 241,311.77 0
reforming of driving system
Quality Inspection, Lube oil meter 0 686,923.08 0
Computer Dept., computers and
0 581,307.68 147,777.77
network facilities
No.1 Steam Turbine, reforming of
0 246,716.16 0
southeast rain pipe
The New Testing Workshop,
30,000.00 459,688.90 0
Reconstruction of office building
Casting Co. 58,680.00 5,910,347.40 5,811.97
New factory of Zhongneng Co. 9,478,835.00 702,308.00 0
Small projects of Zhongneng 53,751.00 5,903,419.87 0
Other small items 4,147,098.50 1,675,567.83
4,431,425.23
Total 98,530,579.18 25,483,705.28 81,583,858.24
(Continue)
50
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Accumulate of Interest Interest
Fund
Project Progress interest capitalized this capitalized rate of End of term
recourse
capitalized term this term %
D260 digital boring Completed
Shrunk on rotor of general under
assembling factory construction
Imported 6.3m vertical lathe of
Completed
Factory No.2
Steam turbine for
supplementary water supply of under
348,144.14
million class nuclear power construction
plant
Workshop reconstruction of under
2,019,445.99
No.1 factory construction
Reconstruction of main under
139,666.00
entrance of preparation house construction
Environment project of under
1,013,012.89
temporary yard construction
Reconstruction of electronic
under
system and pipe system of
construction
factory No.1 851,234.95
Upgrading of 24 testing
under
platform of quality control, 270,963.24
construction
purchasing of accessory part
Preparation Workshop, under
cleaning of old foundation construction 345,197.00
15-10PF digital milling under
machine electronic reforming construction 770,991.84
Relocating and reforming of under
South High Assembling construction 1,617,314.97
Relocating and reforming of under
North High Assembling construction 1,741,504.35
No.1 Steam Turbine, under
D800X5000 grinder construction 1,091,056.16
Quality Inspection, Lube oil under
meter construction 399,592.22
General Assembling, 25m
under
testing platform, oil pipe
construction
system reforming 477,502.00
Equipment, digital milling
under
machine, reforming of driving
construction
system 483,457.22
Quality Inspection, Lube oil under
meter construction 686,923.08
Computer Dept., computers under
433,529.91
and network facilities construction
No.1 Steam Turbine, reforming under
246,716.16
of southeast rain pipe construction
The New Testing Workshop,
under
Reconstruction of office 489,688.90
construction
building
Casting Co. under
5,963,215.43
construction
New factory of Zhongneng Co. under
10,181,143.00
construction
Small projects of Zhongneng under
5,957,170.87
construction
Other small items under
6,902,955.90
construction
Total 42,430,426.22
51
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
10. Intangible assets
Items Beginning of term Increased this term Decreased this term End of term
1) Subtotal of original book value 306,990,020.46 30,012,000.00 273,712.62 336,728,307.84
Land using right 116,228,170.57 116,228,170.57
Operation rights of waste heat power plant 179,400,000.00 30,000,000.00 0 209,400,000.00
Mining rights 11,070,208.01 269,474.72 10,800,733.29
Others 291,641.88 12,000.00 4,237.90 299,403.98
2) Subtotal of accumulated amortizing 22,289,373.19 8,180,882.64 30,470,255.83
Land using right 14,972,789.21 1,782,233.53 0.00 16,755,022.74
Operation rights of waste heat power plant 7,142,850.00 6,380,950.00 0.00 13,523,800.00
Mining rights 154,936.24 17,699.11 0.00 172,635.35
Others 18,797.74 0.00 0.00 18,797.74
3) Subtotal of net book value 284,700,647.27 21,831,117.36 273,712.62 306,258,052.01
Land using right 101,255,381.36 -1,782,233.53 0.00 99,473,147.83
Operation rights of waste heat power plant 172,257,150.00 23,619,050.00 0.00 195,876,200.00
Mining rights 10,915,271.77 -17,699.11 269,474.72 10,628,097.94
Others 272,844.14 12,000.00 4,237.90 280,606.24
4) Subtotal of impairment provision
Land using right
Operation rights of waste heat power plant
Mining rights
Others
5) Total of book value 284,700,647.27 21,831,117.36 273,712.62 306,258,052.01
Land using right 101,255,381.36 -1,782,233.53 0.00 99,473,147.83
Operation rights of waste heat power plant 172,257,150.00 23,619,050.00 0.00 195,876,200.00
Mining rights 10,915,271.77 -17,699.11 269,474.72 10,628,097.94
Others 272,844.14 12,000.00 4,237.90 280,606.24
RMB8,180,882.64 amortized this term.
11. Long-term amortizable expenses
Other Reason of other
Items Beginning of term Increased this term Amortized this term End of term decreasing
decreases
Decoration
5,895,475.69 597,509.82 103,755.37 6,389,230.14
fee
Others 46,051.11 46,051.11
Total 5,941,526.80 597,509.82 149,806.48 6,389,230.14
12. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities recognized
Items End of term Beginning of term
Differed income tax asset
Bad debt provision 58,074,798.51 51,412,167.42
Inventory impairment provision 222,354.84 222,354.84
Fixed asset impairment provision 1,222,974.80 1,222,974.80
Unrealized profit in consolidated 2,570,706.67 8,500,335.81
accounts
Other deductible provisional 47,951.57 47,951.57
difference
Total 62,138,786.39 61,405,784.44
Differed income tax liability
Temporary differences of other tax
1,222,974.80 1,222,974.80
payables
Total 1,222,974.80 1,222,974.80
52
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(2) Provisional differences correspondent to the asset or liability items
Items Amount
Differences in taxable items
Temporary differences of other tax payables 8,153,165.31
Sub-total 8,153,165.31
Neutralizable different items
Bad debt provision 373,498,621.69
Inventory impairment provision 1,482,365.58
Fixed asset impairment provision 8,153,165.31
Unrealized profit in consolidated accounts 21,328,667.30
Other deductable provisional difference 191,806.28
Sub-total 404,654,626.16
13. Details of asset impairment provision
Decreased this term
Provided current
Items Beginning of term Written End of term
term Transferred
back
Bad debt provision 332,005,077.59 41,493,544.10 373,498,621.69
Inventory impairment
1,482,365.58 0 1,482,365.58
provision
Fixed asset impairment
8,153,165.31 0 8,153,165.31
provision
Total 341,640,608.48 41,493,544.1 383,134,152.58
14. Short-term loans
Items End of term Beginning of term
Guarantee loan 310,000,000.00 210,000,000.00
Pledged loan 73,000,000.00 16,000,000.00
Total 383,000,000.00 226,000,000.00
15. Notes payable
Category End of term Beginning of term
Bank acceptance 122,919,982.00 95,643,623.00
Total 122,919,982.00 95,643,623.00
16. Account payable
(1) Details
Items End of term Beginning of term
Trade 735,126,379.68 387,864,156.08
Payment for equipment and projects 114,433,094.48 138,019,038.59
Total 849,559,474.16 525,883,194.67
53
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(2) Account payable to shareholders with 5% or over of the Company’s voting shares and other related parties
Name of the companies End of term Beginning of term
Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. 6,051,121.58 1,924,930.07
Hangzhou Steam Turbine Industrial Co. 332,807.02 329,037.91
Hangzhou Hangfa Power Generating Equipment Co., Ltd. 192,600.00 30,537,725.00
Hangzhou Nanhua Wooden Packaging Co., Ltd. 16,246.00 213,830.00
Hangzhou Nanfangtongda Gears Co., Ltd. 17,901,416.03 4,600,000.00
Sub-total 24,494,190.63 37,605,522.98
17. Prepayment received
(1) Details
Items End of term Beginning of term
Trade 1,508,210,537.67 1,493,982,772.62
Total 1,508,210,537.67 1,493,982,772.62
(2) Account received in advance from shareholders with 5% or over of the Company’s voting shares and other
related parties
Name of the companies End of term Beginning of term
Hangzhou Steam Turbine Power Sales 2,224,030.63 17,498,070.01
Co., Ltd.
Hangzhou Steam Turbine Power 3,762,400.00 3,762,400.00
Technologies Co., Ltd.
Sub-total 5,986,430.63 21,260,470.01
18. Employees’ wage payable
(1) Details
Items Beginning of term Increased this term Decreased this term End of term
Wage, bonus, allowance and
7,259,100.00
subsidies
201,177,691.84 192,969,487.33 15,467,304.51
Employee welfare 0 24,652,085.30 21,551,651.78 3,100,433.52
Social insurance 17,952,949.39 43,701,015.98 45,065,071.61 16,588,893.76
Housing fund 85,773.36 17,635,802.00 17,558,352.00 163,223.36
Trade Union finance 1,217,116.28 3,647,409.59 3,899,745.22 964,780.65
Training expenses 2,659,517.28 4,430,235.42 418,560.45 6,671,192.25
Dismissing policy 144,751.10 144,751.10 0.00
Total 29,174,456.31 295,388,991.23 281,607,619.49 42,955,828.05
(2) RMB7，635，972.90 of Trade Union fund and employee education fund payable among the balance of
Employees’ wage payable; no overdue payment.
54
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
19. Tax payable
Items End of term Beginning of term
VAT -10,806,594.48 -1,673,102.17
City maintenance and construction tax 740,377.60 4,705,554.48
Business tax 448,329.36 237,867.67
Enterprise income tax 37,169,717.58 92,217,331.50
Personal income tax 2,277,775.00 4,547,223.36
Property tax 46,607.03 363,036.93
Education surtax 337,984.26 564,324.15
Local education surcharges 224,789.65 653,031.85
Stamp tax 19,617.57 52,420.14
water conservancy special fund 3,681,617.15 3,740,179.26
Land using tax 1,068,160.00
Total 35,208,380.72 105,407,867.17
20. Interest payable
Items End of term Beginning of term
Loan interests 0 287,993.75
Total 0 287,993.75
21. Other account payable
(1) Details
Items End of term Beginning of term
Deposit 4,527,640.00 2,254,404.35
Payable to other company 83,162,974.38 74,319,608.03
Others 2,924,345.11 3,712,876.22
Total 90,614,959.49 80,286,888.60
(2) Account payable to shareholders with 5% or over of the Company’s voting shares and other related parties
Name of the companies End of term Beginning of term
Hangzhou Steam Turbine Group 37,931,426.73 48,122,470.62
Hangzhou Steam Turbine Automobile 2,768,012.05 2,846,005.51
Sales Service Co., Ltd.
Hangzhou Steam Turbine Power 20,000,000.00 20,000,000.00
Technologies Co., Ltd.
Sub-total 60,699,438.78 70,968,476.13
55
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(3) No large amount other payable aged over 1 year.
(4) Remarks on other payable accounts with large amount
Name of the companies End of term Property of the account
Hangzhou Bureau of National Tax, Xiacheng Individual income tax payable against dividend of 2010
11,310,234.94
Office
Luxi Shengfa Trade Co., Ltd. 5,000,000.00 Trade
Hangzhou Steam Turbine Group 37,931,426.73 Payment for power supply, land rental, employees’ food service,
and payment on behalf payable
Hangzhou Steam Turbine Power
20,000,000.00 Loans
Technologies Co., Ltd.
Hangzhou Steam Turbine Automobile Sales
2,768,012.05 Expenses for repairing, shipping, and coach services
Service Co., Ltd.
Tangxi Town Government, Yuhang 2,320,269.00 Land using fee payable
Sub-total 79,329,942.72
22. Non-current liability due in 1 year
(1) Details
Items End of term Beginning of term
Long-term loans due in 1 year 0 157,000,000.00
Total 0 157,000,000.00
(2) Long-term loans due in 1 year
1) Details
Items End of term Beginning of term
Guarantee loan 0 117,000,000.00
Pledged loan 0 40,000,000.00
Sub-total 0 157,000,000.00
23. Long-term borrowings
(1) Particulars of long-term borrowings
Items End of term Beginning of term
Pledged loan 48,000,000.00 23,000,000.00
Credit loan 100,000,000.00 50,463,800.00
Total 148,000,000.00 73,463,800.00
(2) Details of long-term borrowings
Loans Loans Annual interest
Start date Expired on Currency rate Beginning of
Loan provided by End of term
(%) term
China Construction Bank, Zhejiang 50,463,800.00
2009-3-24 2015-3-23 RMB Float rates
Branch
Guizhou Countryside Trust Union 2010-12-24 2012-12-23 RMB 9.27 10,000,000.00 10,000,000.00
56
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Guizhou Countryside Trust Union 2011-1-7 2013-1-7 RMB 9.27 3,000,000.00
Guizhou Countryside Trust Union 2011-1-10 2013-1-10 RMB 9.27 5,000,000.00
Guizhou Countryside Trust Union 2011-1-17 2013-1-17 RMB 9.27 6,000,000.00
Guizhou Countryside Trust Union 2011-1-18 2013-1-18 RMB 9.27 5,000,000.00
Guizhou Countryside Trust Union 2011-1-24 2013-1-24 RMB 9.27 3,000,000.00
Guizhou Countryside Trust Union 2011-3-15 2013-3.15 RMB 9.27 3,000,000.00
Pudong Development Bank, Yuhang 5.40 9,000,000.00 9,000,000.00
2010-5-24 2012-5-23 RMB
Branch
Pudong Development Bank, Yuhang 5.40 4,000,000.00 4,000,000.00
2010-5-24 2012-5-23 RMB
Branch
China Import & Export Bank, RMB Float rates 100,000,000.00 0
2011-2-16 2013-2-16
Zhejiang Branch
Sub-total 148,000,000.00 73,463,800
24. Long-term payable
Items End of term Beginning of term
Drawing in administrative restructuring 330,000.00 330,000.00
Total 330,000.00 330,000.00
25. Other non-recurring liabilities
(1) Details
Items End of term Beginning of term
Differed income 20,855,340.00 5,047,140.00
Total 20,855,340.00 5,047,140.00
(2) Ending balance increased by 313.21% comparing with the beginning balance, which was caused by receiving
of A) Special fund of RMB3.8217 million for appropriate development of new heavy industry from Hangzhou
Xiacheng Government Shiqiao Community Service received by the Company, and B) Government subsidy for
industry of RMB9.9738 million for the first half of 2010 received by Casting Co.
26. Share capital
(1) Details
Items Beginning of term Increased this term Decreased this
End of term
term
Total of capital shares 483,340,000.00 145,002,000.00 628,342,000.00
(2) Statement of change in share capital
On May 11, 2011, as approved at the Shareholders’ Annual Meeting 2010, the Company capitalized the common
reserves upon the total capital shares of 483.34 million shares at December 31, 2010, namely 3 new shares to each
10 shares (tax included). After that, the total of capital shares was changed to 628.342 million shares, and the
registered capital was changed to RMB628.342 million thereof. Registration alternation procedures are in process.
57
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
27. Capital reserves
(1) Details
Items Beginning of term Increased this term Decreased this term End of term
Share capital 81,815,220.00 81,815,220.00
premium
Other capital 57,775,125.09 57,775,125.09
reserves
Total 139,590,345.09 139,590,345.09
28. Surplus reserves
Items Beginning of term Increased this Decreased this End of term
term term
Statutory surplus reserves 389,362,161.03 389,362,161.03
Total 389,362,161.03 389,362,161.03
29. Retained profit
Items Amount Percentage of drawing or allocation
Adjustment on retained profit at end of previous term 1,855,918,732.56 ——
Adjustment on the total of retained profit at beginning of ——
term (+ for increase, - for decrease)
Retained profit at beginning of term after adjustment 1,855,918,732.56 ——
Plus: Net profit attributable to owners of the parent ——
324,705,800.92
company
Less: Statutory surplus reserves
Optional surplus reserves
Common risk provisions
Common share dividend payable RMB4 (tax included) of cash for each
193,336,000.00
10 shares
Common share dividend transferred to capital share 3 bonus shares (tax included) for each
145,002,000.00
10 shares
Retained profit at the end of term 1,842,286,533.48 ——
58
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(II) Notes to consolidated income statement
1. Turnover / cost
(1) Details
Items Current term Same period of last term
Major business turnover 2,067,638,999.67 1,830,253,159.97
Other business income 9,400,988.24 10,262,391.00
Operation cost 1,260,362,576.79 1,180,414,236.98
(2) Main business turnover / cost (business segment)
Name of Current term Same period of last term
industry Revenue Cost Revenue Cost
Manufacturing 2,067,638,999.67 1,252,039,240.37 1,830,253,159.97 1,172,754,178.09
Sub-total 2,067,638,999.67 1,252,039,240.37 1,830,253,159.97 1,172,754,178.09
(3) Main business turnover / cost (categorized on products)
Current term Same period of last term
Products or services
Revenue Cost Revenue Cost
Industrial steam turbine 1,556,636,711.20 910,676,136.79 1,515,923,802.17 947,985,439.00
Casting products 35,696,447.86 29,539,353.30 27,998,388.10 22,370,089.03
Auxiliary machinery 63,803,202.54 42,168,940.64 36,510,320.49 35,287,211.12
Packaged equipment for waste heat power plant 217,405,735.04 144,107,103.00 57,998,974.36 47,309,044.89
Others 194,096,903.03 125,547,706.64 191,821,674.85 119,802,394.05
Sub-total 2,067,638,999.67 1,252,039,240.37 1,830,253,159.97 1,172,754,178.09
(4) Main business turnover / cost (on territories)
Name of Current term Same period of last term
districts Revenue Cost Revenue Cost
Domestic 1,794,411,998.69 1,040,862,199.19 1,589,195,419.48 994,025,770.27
Overseas 273,227,000.98 211,177,041.18 241,057,740.49 178,728,407.82
Sub-total 2,067,638,999.67 1,252,039,240.37 1,830,253,159.97 1,172,754,178.09
(5) Business turnover from top 5 clients
Name of clients Turnover Percentage in total turnover of the Company
Shenyang Turbine Machinery Co., Ltd. 278,970,170.89 13.43
Xi’an Shanggu Power Co., Ltd. 203,019,230.75 9.77
Hitachi (China) Ltd. Steam Turbine Sales 74,615,384.65 3.59
IMFA Power Plant (India) 58,974,300.00 2.84
Atlas Copco (Shanghai) Technic Equipment Co., Ltd. 46,775,641.03 2.25
Sub-total 662,354,727.32 31.88
59
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
2. Business tax and surcharge
Same period of last
Items Current term Rate
term
Business tax 1,303,411.81 541,665.95
City maintenance and construction
8044630.11 1,274,082.70 For details please see Notes to the Financial
tax
Statements.
Education surtax 3,612,786.45 556,850.14
Local education surcharges 2,227,051.03 2,757,219.44
Total 15,187,879.40 5,129,818.23
3. Sales expense
Items Current term Same period of last term
Employees’ remunerations 24,428,979.27 20,704,917.03
Freight 20,314,919.40 12,739,114.45
Business trips 7,724,695.69 6,671,703.66
Business reception expenses 3,741,636.06 3,504,429.94
Conferences 3,122,366.30 1,879,693.12
Service expenses 722,660.50 30,000.00
Insurance for turbine unit 847,965.26 380,115.60
Warranty expense 184,198.71 1,267,036.17
Office expenses 466,920.02 554,362.32
Others 12,070,555.63 6,835,734.76
Total 73,624,896.84 54,567,107.05
4. Administrative expense
Items Current term Same period of last term
Employees’ remunerations 152,721,766.62 123,282,194.96
Business reception expenses 9,383,126.05 5,467,246.63
Asset depreciation and amortizing 9,894,240.85 7,946,816.33
Office expenses 5,673,119.02 3,079,092.32
Traveling expenses 5,241,371.60 5,117,646.27
Taxes 3,969,560.08 3,727,542.95
House rental, property management,
2,239,891.07 6,367,658.45
water and power
Material, low-value-consumable 1,742,058.89 1,918,425.26
Maintaining 1,246,683.02 954,985.20
Others 30,544,959.03 20,050,754.29
Total 222,656,776.23 177,912,362.66
60
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
5. Financial expenses
Items Current term Same period of last term
Interest expense 14,804,050.85 10,044,286.97
Less: Incoming interests 4,404,894.04 3,041,425.43
Exchange gains/losses 61,571.43 860,061.60
Commission 1,582,495.62 1,856,691.86
Total 12,043,223.86 9,719,615.00
6. Asset impairment loss
Items Current term Same period of last term
Bad debt losses 41,493,544.10 49,340,494.01
Total 41,493,544.10 49,340,494.01
7. Investment income
(1) Details
Items Current term Same period of last term
Long-term equity investment gains on cost 24,118,640.00 1,000,000.00
basis
Investment gains from disposal of long-term 100,735.77
equity investment
Total 24,118,640.00 1,100,735.77
(2) Long-term investment income on cost basis
Same period of last
Company invested in Current term Causation of change
term
Hangzhou Bank 23,118,640.00 Dividend of year 2009 received in
July 2010
Zhejiang Tianhang Steam Turbine
1,000,000.00 1,000,000.00
Auxiliary Machinery Co., Ltd.
Sub-total 24,118,640.00 1,000,000.00
(3) There was no major limitation on retrieving of investment gains.
61
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
8. Non-operational income
(1) Details
Same period of last
Items Current term Amount accounted into non-recurring
term gain/loss of current term
Total of gains from disposal of
88,033.56 48,907.71 88,033.56
non-current assets
Incl. Gains from disposal of fixed
88,033.56 48,907.71 88,033.56
assets
Gains from disposal of intangible
0
assets
Government subsidy 7,200.00 1,300,412.00
Compensation income 1,367,508.04 841,925.00 1,374,708.04
Account not able to be paid 0
Others 5,632.00 16,435.33 5,632.00
Total 1,468,373.60 2,207,680.04 1,468,373.60
9. Non-operational expenditure
Items Current term Same period of last Amount accounted into non-recurring
term gain/loss of current term
Total of loss from disposal of 118,959.38 118,959.38
non-current assets
Incl. Loss from disposal of fixed
assets 118,959.38 118,959.38
Donations 2,683,337.00
2,961,464.60 2,961,464.60
Penalty paid out 58,128.74
52,155.00 52,155.00
water conservancy special fund 2,769,818.36 2,300,045.06 2,769,818.36
Others 38,848.39 16,744.24 38,848.39
Total 5,941,245.73 5,058,255.04 5,941,245.73
10. Income tax expenses
Items Current term Same period of last term
Income tax calculated according to the 57,396,622.68
72,187,643.00
law and regulations of current term
Adjustment of differed income tax -1,626,069.83
-733,001.95
Total 71,454,641.05 55,770,552.85
11. Calculation formula of basic earnings per share and diluted earnings per share
(1) Calculation process of basic earning per share
62
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
The 1st
Items No.
Half of 2011
Net profit attributable to common shareholders of the Company A 324,705,800.92
Non-recurring gain/loss B -2,370,509.65
Net profit attributable to common shareholders of the Company after deducting of non-recurring gain/loss C=A-B 327,076,310.57
Total of shares at beginning of shares D 483,340,000.00
Shares increased due to capitalizing of reserves or share dividend E 145,002,000.00
Increasing of shares by issuing of new shares or converting of debt to shares F
Total number of months from the next month of when the shares are increased to the end of report term G 0
Decrease of shares caused by repurchasing H
Total number of months from the next month of when the shares are decreased to the end of report term I
Amount of shares reduced J
Number of months in the report term K 6
L=D+E+F
Weighted average of common shares issued to the outside ×G/K-H 628,342,000.00
×I/K-J
Basic earnings per share M=A/L 0.5168
Basic earning per share after deducting of non-recurring gain/loss N=C/L 0.5205
(2) Calculation process of diluted earning per share is the same with that of the basic earning per share
(III) Notes to consolidated cash flow statement
1. Other operational cash received
Items Current term
Gains from bank interests 4,409,298.52
Government subsidies received 6,214,642.28
Deposit for bidding and others 14,050,375.39
Others 1,838,274.52
Total 26,512,590.71
2. Other operational cash paid
Items Current term
Business trips 13,971,320.71
Transportation 21,784,823.70
Office expenses 5,521,131.61
Business reception and conference expenses 15,451,439.98
Deposit for bidding and others 21,662,397.17
International travelling 2,187,126.17
Property management and civil services 482,432.31
Others 27,323,465.39
Total 108,384,137.04
63
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
3. Cash received as borrowing
Items Current term
Loans from bank 437,000,000.00
Borrowings from other entities received 5,000,000.00
Total 442,000,000.00
4. Appendix of Cash Flow Statement
(1) Supplementary cash flow statement
Same period of last
Supplementary Info. Current term
term
1) Net profit adjusted to cash flow of operation:
Net profit 399,862,217.51 305,911,524.96
Plus: Asset impairment provision 41,493,544.10 49,340,494.01
Fixed asset depreciation, gas and petrol depreciation, production goods
44,600,906.44 33,959,030.37
depreciation
Amortizing of intangible assets 8,180,882.64 3,967,848.65
Amortizing of long-term expenses 149,806.48 229,993.08
Loss from fixed assets, intangible assets and other long-term assets disposal
30,925.82 -48,907.71
(“-“ for gains)
Loss from fixed assets discarding (“-“ for gains) 0 0
Loss from fluctuate of fair value (“-“ for gains) 0 0
Financial expenese (“-“ for gains) 12,043,223.86 9,719,615.00
Investment loss (“-“ for gains) -24,118,640.00 -1,100,735.77
Decrease of deferred income tax asset (“-“ for increase) -733,001.95 -4,085,399.85
Increase of deferred income tax liabilities (“-“ for decrease) 0 0
Decrease of inventory (“-“ for increase) -395,235,557.13 -165,726,892.95
Decrease of operational receivables (“-“ for increase) -102,638,902.61 -371,086,225.38
Increase of operational payables (“-“ for decrease) 340,410,687.44 348,894,618.86
Others
Cash flow generated by business operation, net 324,046,092.60 209,974,963.27
2) Major investment and financing activities not involved in cash
Liabilities converted to capital
Convertible bond expire in 1 year
Fixed assets leased through financing
3) Net change of cash and cash equivalents:
Balance of cash at period end 663,842,021.79 468,533,578.69
Less: Initial balance of cash 621,373,402.65 484,391,142.82
Plus: Balance of cash equivalents at the period end 0
Less: Initial balance of cash equivalents 0
Net increasing of cash and cash equivalents 42,468,619.14 -15,857,564.13
64
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(2) Composition of cash and cash equivalents
Items End of term Beginning of term
1) Cash 663,842,021.79 621,373,402.65
Incl: Cash in stock 241,094.70 301,107.29
Bank savings could be used at any time 663,600,927.09 621,072,295.36
Other monetary capital could be used at any time
Usable money in Central Bank
Money saved in associated financial bodies
Money from associated financial bodies
2) Cash equivalents
Incl. Bond investment due in 3 months
3) Balance of cash and cash equivalents at end of term 663,842,021.79 621,373,402.65
(3) Monetary capital not attributable to cash and cash equivalent
Items End of term Beginning of term
Deposit savings not attributable to cash and cash equivalents 27,669,281.00 35,703,992.06
Sub-total 27,669,281.00 35,703,992.06
VI. Related parties and transactions
(I) Related parties
1. The parent company of the Company
Name of the Legal
Relationship Ownership type Reg. Add. Business property
parent co. representative
Hangzhou Steam Controlling Solely national Hangzhou Nie Zhonghai Limited liability
Turbine Group shareholder owned China
(Continue)
Substantial
Name of the Registered Shareholding of Voting rights of
holder of the Organization code
parent co. capital the parent co. the parent co. %
Company
Hangzhou Steam RMB500 63.64 63.64 Hangzhou State 143071842
Turbine Group million Asset Committee
2. Details of the subsidiaries are available with the Notes to the Consolidated Financial Statements
3. Other related parties
65
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(1) Other related parties
Name of the related parties Relationship with the Company Organization code
Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. Affiliate of the Group 710976614
Hangzhou Steam Turbine Power Sales Co., Ltd. Affiliate of the Group 757214932
HSTG Nanfang Sales Co. Affiliate of the Group YA3715443
Hangzhou Hangfa Power Generating Equipment Co., Ltd. Affiliate of the Group 70427611X
Hangzhou Nanfangtongda Gears Co., Ltd. Affiliate of the Group 770809041
Hangzhou Nanhua Wooden Packaging Co., Ltd. Affiliate of the Group 143326331
Hangzhou Dongfeng Shipyard Co., Ltd. Affiliate of the Group 721062009
HSTG Energy Tech Co., Ltd. Affiliate of the Group 790940629
Hangzhou Steam Turbine Industrial Co. Affiliate of the Group 757237210
Tangshan Thermal Union Trade Co., Ltd. Affiliate of the Group 727606636
Hangzhou Relian International Trading Co. Affiliate of the Group 710976614
Hangzhou Steam Turbine Power Technologies Co., Ltd. Affiliate of the Group 143039674
HSTG Technology Association Affiliate of the Group 501900023
HSTG Technology Association Affiliate of the Group
(II) Related transactions
1. Trade of goods and services
(1) Details
1) Purchase of goods and services
Current term Same period of last term
Subjects of the
Related parties Type of trade related Pricing and Pricing and
transactions Amount decision making Amount decision making
process process
Hangzhou Steam Accept Price on Price on
freight, 30,165,617.36
Turbine Automobile 11,970,961.58
labor repairing fee agreement agreement
Sales Service Co., Ltd.
Hangzhou Steam Purchase Price on Price on
Raw materials 881,938.00 1,062,351.52
Turbine Industrial Co. of goods agreement agreement
Hangzhou Hangfa Power Purchase Price on Price on
Generating Equipment Generators 70,819,487.23 86,616,180.00
Co., Ltd. of goods agreement agreement
Hangzhou Nanhua Purchase Price on Price on
Packaging
Wooden Packaging Co., 8,670,633.10 6,280,827.70
of goods materials agreement agreement
Ltd.
Hangzhou Purchase Price on Price on
Nanfangtongda Gears Gear boxes 26,152,478.63 6,449,700.00
Co., Ltd. of goods agreement agreement
Sub-total 136,690,154.32 112,380,020.80
2) Related transactions regarding sales of goods or providing of services
66
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Current term Same period of last term
Subjects of the Pricing and
Related parties Type of trade related decision Pricing and decision
transactions Amount Amount
making making process
process
Hangzhou Steam Sales of Steam turbine Price on agreement
Turbine Group 5,435,897.42
goods
Hangzhou Steam Sales of Spare parts, Price on
Turbine Power 45,729,059.81 56,453,456.40 Price on agreement
goods steam turbine agreement
Sales Co., Ltd.
Hangzhou Sales of Price on
Nanfangtongda Spare parts 10,940,170.94 0
goods agreement
Gears Co., Ltd.
HSTG Energy Sales of
Spare parts 0 12,981,196.58 Price on agreement
Tech Co., Ltd. goods
Hangzhou Steam
Sales of Price on
Turbine 1,627.12 376.09 Price on agreement
Spare parts
Automobile Sales goods agreement
Service Co., Ltd.
HSTG Providing
Industrial Price on
Technology of labor 101,333.33
collaboration agreement
Association service
Sub-total 56,772,191.20 74,870,926.49
2. Rental with related parties
Category of Starting Annual rental
Name of the owner Name of the tenant Stop date Pricing basis
asset for rent date recognized
Hangzhou Steam The Company Houses & 2011.1.1 2011.12.31 Price on
390,696.00
Turbine Group buildings agreement
Hangzhou Steam Machinery Co. Houses & 2011.1.1 2011.12.31 Price on
318,697.74
Turbine Group buildings agreement
Hangzhou Steam Houses & 2011.1.1 2011.12.31 Price on
Packaged Equipment 361,973.50
Turbine Group Co. of the Group buildings agreement
Hangzhou Steam The Company Land using 2011.1.1 2011.12.31 Price on
1,340,860.00
Turbine Group right agreement
Sub-total 2,412,227.24
3. Guarantees among the related parties
Amount Due date Completed or
Guarantor Beneficiary Start date
guaranteed not
Hangzhou Steam Turbine No
Packaged Equipment Co. of the
30,000,000.00 2011.1.26 2012.1.23
Group Group
Hangzhou Steam Turbine No
Packaged Equipment Co. of the
30,000,000.00 2011.3.28 2012.3.23
Group Group
Hangzhou Steam Turbine Packaged Equipment Co. of the No
20,000,000.00 2011.4.22 2012.4.18
Group
67
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Group
Hangzhou Steam Turbine No
Packaged Equipment Co. of the
50,000,000.00 2010.7.6 2011.7.6
Group Group
4. Capital borrowing from related parties
Amount of
Related parties Start date Expired on Remarks
demolition
Borrow in
Hangzhou Steam Turbine Power 20,000,000.00 Not returned
2010.10.14 2011.10.13
Technologies Co., Ltd.
RMB677,388.89 of interest was paid in total for the above capital borrowing basing upon the interest rate of
similar loans of the bank.
5. Other related transactions
(1) Supplying agreement on services, raw materials, energy, and telecommunication
HSTG provide civil services, property management, and employee training to the Company. The fees payable to
HSTG was RMB2,315,250.00 in the current term. HSTG supplies water and power to the Company and some of
the subsidiaries amounted to RMB7,305,406.75 this term.
HSTG Automobile Sales and Service Co., Ltd provided transportation services to the employees of the Company,
the Company paid RMB585,000.00 for the service in the report term.
HSTG provide cleaning services to the Company and the fee was RMB684,300.00 for this term.
(2) Expenses paid on behalf the Company
HSTG paid the basic health insurance and supplementary health insurance on behalf of the Company and
subsidiaries, they were totaled to RMB1,179,644.05 and paid to HSTG in the report term.
(III) Payable and receivable accounts with the related parties
1. Receivable accounts due from related parties
End of term Beginning of term
Projects Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Account
Hangzhou Steam Turbine Group 856,500.00 374,300.00 876,500.00 246,700.00
receivable
HSTG Nanfang Sales Co. 20,000.00 12,000.00 20,000.00 12,000.00
Hangzhou Steam Turbine Power Sales
62,083,503.67 7,364,749.73 68,163,863.05 6,610,894.86
Co., Ltd.
Hangzhou Hangfa Power Generating
68,500.00 3,425.00 68,500.00 3,425.00
Equipment Co., Ltd.
Hangzhou Steam Turbine Power
1,520,000.00 304,000.00 8,368,000.00 418,400.00
Technologies Co., Ltd.
Hangzhou Nanfangtongda Gears Co.,
1,284,434.00 64,886.80 4,434.00 221.70
Ltd.
Sub-total 65,832,937.67 8,123,361.53 77,501,297.05 7,291,641.56
Hangzhou Hangfa Power Generating
Prepayment 560,000.00 2,761,500.00
Equipment Co., Ltd.
Hangzhou Steam Turbine Automobile
12,000.00
Sales Service Co., Ltd.
Sub-total 572,000.00 2,761,500.00
68
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
2. Accounts payable to related parties
Beginning of
Projects Related parties End of term
term
Account payable Hangzhou Steam Turbine Group
Hangzhou Steam Turbine Automobile Sales Service Co.,
6,051,121.58 1,924,930.07
Ltd.
Hangzhou Steam Turbine Industrial Co. 332,807.02 329,037.91
Hangzhou Hangfa Power Generating Equipment Co., Ltd. 192,600.00 30,537,725.00
Hangzhou Nanhua Wooden Packaging Co., Ltd. 16,246.00 213,830.00
Hangzhou Nanfangtongda Gears Co., Ltd. 17,901,416.03 4,600,000.00
Sub-total 24,494,190.63 37,605,522.98
Prepayment received Hangzhou Steam Turbine Power Sales Co., Ltd. 2,224,030.63 17,498,070.01
Hangzhou Steam Turbine Power Technologies Co., Ltd. 3,762,400.00 3,762,400.00
Sub-total 5,986,430.63 21,260,470.01
Other account
Hangzhou Steam Turbine Group 37,931,426.73 48,122,470.62
payable
Hangzhou Steam Turbine Automobile Sales Service Co.,
2,768,012.05 2,846,005.51
Ltd.
Hangzhou Steam Turbine Power Technologies Co., Ltd. 20,000,000.00 20,000,000.00
Sub-total 60,699,438.78 70,968,476.13
VII. Contingent Events
No major contingent event to be disclosed as of the date of Balance Sheet.
VIII. Commitment Events
Capital commitment made by the Company, Zhongneng Co., Casting Co., and Auxiliary Machinery Co. on
construction of workshops and purchase of equipment was RMB73.2494 million.
IX. Post-balance sheet issues
No such post-balance sheet issues to be disclosed.
X. Other significant issues
None
69
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
XI. Notes to Financial Statements of the Parent Company
(I) Notes to items of parent company financial statements
1. Account receivable
(1) Details
1) Detailed categories
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
% % % %
Major
single
amount and
bad debt
provision
provided
individually
Bad debt
provided on
group basis
Group by
age 1,613,879,916.53 100.00 310,608,538.03 19.25 1,587,536,885.94 99.94 279,830,124.26 17.63
analysis
Sub-total 1,613,879,916.53 100.00 310,608,538.03 19.25 1,587,536,885.94 99.94 279,830,124.26 17.63
Minor
single
amount but
bad debt 1,011,694.00 0.06 1,011,694.00 100.00
provision
provided
individually
Total 1,613,879,916.53 100.00 310,608,538.03 19.25 1,588,548,579.94 100.00 280,841,818.26 17.68
2) Receivable accounts on which bad debt provisions are provided on age basis in the group
End of term Beginning of term
Age Book balance Book balance
Bad debt Bad debt provision
Proportion provision Proportion
Amount Amount
% %
within 1 yr 861,344,886.24 53.37 42,470,156.87 917,134,069.69 57.77 42,627,353.48
1-2 yrs 355,607,057.19 22.04 70,762,559.44 322,161,039.81 20.29 64,394,807.96
2-3 yrs 202,290,010.72 12.53 80,674,644.29 177,576,915.23 11.19 70,697,646.09
over 3 yrs 194,637,962.38 12.06 116,701,177.43 170,664,861.21 10.75 102,110,316.73
Sub-total 1,613,879,916.53 100.00 310,608,538.03 1,587,536,885.94 100.00 279,830,124.26
70
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(2) Receivable accounts due from shareholders with 5% of shares or over
End of term Beginning of term
Name of the companies
Book balance Bad debt provision Book balance Bad debt provision
Hangzhou Steam Turbine Group 158,500.00 63,400.00 178,500.00 35,700.00
Sub-total 158,500.00 63,400.00 178,500.00 35,700.00
(3) Receivable accounts top 5 on amounts
Relation with the Portion in balance of receivable
Name of the companies Book balance Age
Company accounts (%)
Shenyang Turbine Machinery Co., Non-related [Note 1] 29.32
Ltd. 473,236,387.90
Xi’an Shanggu Power Co., Ltd. Non-related [Note 2] 13.26
214,003,393.74
Chongqing Zhongjieneng Sanfeng Non-related 80,554,081.75 [Note 3] 4.99
Energy Co., Ltd.
Hangzhou Steam Turbine Power Sales
Related parties 60,521,503.67 [Note 4] 3.75
Co., Ltd.
Hitachi (China) Ltd. Within 1
Non-related parties 34,000,000.00 2.11
year
Sub-total 862,315,367.06 53.43
[Note 1] Shenyang Turbine Machinery Co., Ltd. has a balance of receivable within 1 year of RMB300,990,938.00,
1-2 years of RMB83,712,884.50, 2-3 years of RMB53,990,803.40, over 3 years of RMB34,541,762.00.
[Note 2] Xi’an Shangu Power Co., Ltd. has a balance of receivable within 1 year of RMB89,447,261.14, 1-2 years
of RMB49,738,110.40, 2-3 years of RMB43,762,966.96, and over 3 years of RMB31,055,055.24.
[Note 3]: Chongqing Zhongjieneng Sanfeng Energy Co., Ltd. has a balance of receivable within 1 year of
RMB73,129,081.75, and 1-2 years of RMB7,425,000.00.
[Note 4] HSTG Technologies Co., has a balance of receivable within 1 year of RMB41,334,340.00, 1-2 years of
RMB13,971,163.67, and 2-3 years of RMB5,216,000.00.
(5) Other receivable accounts of related parties
Portion in balance of receivable
Name of the companies Relation with the Company Book balance
accounts (%)
Hangzhou Steam Turbine Power 1,520,000.00 0.09
Affiliate of the Group
Technologies Co., Ltd.
Zhejiang Huayuan Steam Turbine 796,598.85 0.05
Subsidiary
Machinery Co., Ltd.
Hangzhou Zhongneng Steam Subsidiary 136,000.00 0.01
Turbine Power Co., Ltd.
Hangzhou Steam Turbine Power
Group Packaged Project Engineering Subsidiary 872,760.00 0.05
Co., Ltd.
Zhejiang Steam Turbine Packaged Subsidiary 12,670,050.00 0.79
Technology Development Co., Ltd.
Hangzhou Steam Turbine Power 60,521,503.67 3.75
Affiliate of the Group
Group Sales Co.
Sub-total 76,516,912.52 4.74
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
2. Other account receivable
(1) Details
1) Detailed categories
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
% % % %
Major single
amount and bad
debt provision 4,010,320.94 7.03 4,010,320.94 100.00 4,010,320.94 11.92 4,010,320.94 100.00
provided
individually
Bad debt provided
on group basis
Group by age
53,065,635.56 92.97 2,102,577.40 3.96 29,632,023.06 88.08 1,462,934.09 4.94
analysis
Sub-total 57,075,956.50 100.00 6,112,898.34 10.71 33,642,344.00 100.00 5,473,255.03 16.27
Minor single
amount but bad
debt provision
provided
individually
Total 57,075,956.50 100.00 6,112,898.34 10.71 33,642,344.00 100.00 5,473,255.03 16.27
2) Other receivable accounts with major amount and bad debt provisions provided individually
Description of other receivables Book balance Bad debt provision Rate Reason to provide
Customs deposit receivable 4,010,320.94 4,010,320.94 100.00% Hard to recover
Sub-total 4,010,320.94 4,010,320.94
3) Other receivable accounts in the group on which bad debt provisions are provided on age basis
End of term Beginning of term
Age Book balance Book balance
Bad debt
Proportion Proportion Bad debt provision
Amount provision Amount
% %
within 1 yr 48,941,081.96 85.75 614,085.24 27,094,969.46 91.44 336,859.93
1-2 yrs 2,335,000.00 4.09 467,000.00 756,700.00 2.55 151,340.00
2-3 yrs 261,200.00 0.46 104,480.00 467,390.00 1.58 186,956.00
over 3 yrs 1,528,353.60 9.70 917,012.16 1,312,963.60 4.43 787,778.16
Sub-total 53,065,635.56 100.00 2,102,577.40 29,632,023.06 100.00 1,462,934.09
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(2) Top 5 other receivables
Relation with the Percentage in total Property of the account
Name of the companies Book balance Age
Company other receivable %
Zhejiang Steam Turbine Packaged within 1 Payment for material
Subsidiary 14,465,043.23 25.34
Technology Development Co., Ltd. year or paid on behalf
Zhejiang Turbine Import & Export within 1
Subsidiary 10,000,000.00 17.52 Loans
Co., Ltd. year
Hangzhou Steam Turbine Auxiliary within 1 Payment on behalf,
Subsidiary 5,145,963.80 9.02
Machine Co., Ltd. year payment for materials
Hangzhou Steam Turbine Casting within 1 Payment for material
Subsidiary 4,301,970.75 7.54
Co., Ltd. year or paid on behalf
over 6
Customs deposit receivable Non-related 4,010,320.94 7.03 Deposit
years
Sub-total 37,923,298.72 66.45
(3) Other related party receivable account
Relation with the Percentage in total other
Name of the companies Book balance
Company receivable %
Zhejiang Steam Turbine Packaged Technology
Subsidiary 14,465,043.23 25.34
Development Co., Ltd.
Zhejiang Turbine Import & Export Co., Ltd. Subsidiary
17.52
10,000,000.00
Hangzhou Steam Turbine Auxiliary Machine Co., Ltd. Subsidiary
9.02
5,145,963.80
Hangzhou Steam Turbine Casting Co., Ltd. Subsidiary
7.54
4,301,970.75
Hangzhou Guoneng Steam Turbine Engineering Co., Subsidiary
4.18
Ltd. 2,384,466.21
Hangzhou Steam Turbine Machinery & Equipment Co., Subsidiary
0.63
Ltd. 361,933.20
Sub-total 36,659,377.19 64.23
3. Long-term share equity investment
(1) Details
Calculating Investment cost End of term
Company invested in Beginning of term Changed by
basis
Zhejiang Steam Turbine Packaged Cost basis
16,260,174.60 16,260,174.60 16,260,174.60
Technology Development Co., Ltd.
Hangzhou Zhongneng Steam Cost basis
5,600,853.25 5,600,853.25 5,600,853.25
Turbine Power Co., Ltd.
Hangzhou Steam Turbine Casting Cost basis
11,220,000.00 11,220,000.00 11,220,000.00
Co., Ltd.
Hangzhou Steam Turbine Auxiliary Cost basis
19,244,620.00 19,244,620.00 19,244,620.00
Machine Co., Ltd.
Hangzhou Steam Turbine Cost basis
7,968,000.00 7,968,000.00 7,968,000.00
Machinery & Equipment Co., Ltd.
Greenesol Co. (India) Cost basis 5,534,773.22 1,032,411.62 4,502,361.60 5,534,773.22
Hangzhou Bank Cost basis 390,954,040.00 390,954,040.00 390,954,040.00
Zhejiang Turbine Import & Export Cost basis
20,000,000.00 20,000,000.00 20,000,000.00
Co., Ltd.
Total 476,782,461.07 472,280,099.47 4,502,361.60 476,782,461.07
(Continue)
Statement on Impairment
Share Voting power differences between the Impairment provision Cash dividend of the
Company invested in
proportion % % shareholding and voting provision provided this current term
rights term
Zhejiang Steam 12,441,480.00
Turbine Packaged
51.84 51.84
Technology
Development Co.,
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Ltd.
Hangzhou 45,475,143.75
Zhongneng Steam
51.60 51.60
Turbine Power Co.,
Ltd.
Hangzhou Steam 0
Turbine Casting Co., 51.00 51.00
Ltd.
Hangzhou Steam 61,196,300.00
Turbine Auxiliary 76.50 76.50
Machine Co., Ltd.
Hangzhou Steam 23,400,000.00
Turbine Machinery & 52.00 52.00
Equipment Co., Ltd.
Greenesol Co. (India) 37.00 37.00 0
Hangzhou Bank 6.92 6.92 23,118,640.00
Zhejiang Turbine 0
Import & Export Co., 100.00 100.00
Ltd.
Total 165,631,563.75
(II) Notes to items of parent company income statements
1. Turnover / cost
(1) Details
Items Current term Same period of last term
Major business turnover 1,208,780,942.78 1,305,234,415.66
Other business income 14,381,644.14 9,800,302.87
Operation cost 759,380,397.69 882,879,318.32
(2) Main business income / costs (on business segments)
Current term Same period of last term
Name of
industry
Revenue Cost Revenue Cost
Manufacturing 1,208,780,942.78 745,398,670.16 1,305,234,415.66 873,558,989.13
Sub-total 1,208,780,942.78 745,398,670.16 1,305,234,415.66 873,558,989.13
(3) Main business turnover/ cost (categorized by products)
Current term Same period of last term
Products or
services
Revenue Cost Revenue Cost
Industrial
1,197,589,524.99 738,115,204.10 1,297,625,430.53 871,201,321.15
steam turbine
Others
11,191,417.79 7,283,466.06 7,608,985.13 2,357,667.98
Sub-total 1,208,780,942.78 745,398,670.16 1,305,234,415.66 873,558,989.13
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(4) Main business turnover / cost (on territories)
Current term Same period of last term
Name of
districts
Revenue Cost Revenue Cost
Domestic 1,057,341,182.85 618,545,510.62 1,135,731,795.37 756,327,162.81
Overseas 151,439,759.93 126,853,159.54 169,502,620.29 117,231,826.32
Sub-total 1,208,780,942.78 745,398,670.16 1,305,234,415.66 873,558,989.13
(5) Business turnover from top 5 clients
Name of clients Turnover Percentage in total turnover of the Company
Shenyang Turbine Machinery Co., Ltd. 248,259,914.47 20.30
Xi’an Shanggu Power Co., Ltd. 203,019,230.75 16.60
Hitachi (China) Ltd. 74,615,384.65 6.10
IMFA Power Plant (India) 58,974,300.00 4.82
Atlas Copco (Shanghai) Technic Equipment Co.,
46,775,641.03 3.82
Ltd.
Sub-total 631,644,470.90 51.64
2. Investment income
(1) Details
Items Current term Same period of last term
Long-term equity investment gains on cost basis 165,631,563.75 98,197,057.50
Investment gains from disposal of long-term equity investment 100,735.77
Total 165,631,563.75 98,297,793.27
(2) Long-term investment income on cost basis
Same period of last
Company invested in Current term Causation of change
term
Hangzhou Zhongneng Steam Turbine Power Co., 45,475,143.75 25,801,500.00
Ltd.
Hangzhou Steam Turbine Auxiliary Machine Co., 61,196,300.00 45,897,225.00
Ltd.
Zhejiang Steam Turbine Packaged Technology 12,441,480.00 6,998,332.50
Development Co., Ltd.
Hangzhou Steam Turbine Machinery & Equipment 23,400,000.00 19,500,000.00
Co., Ltd.
23,118,640.00 0 Dividend of year 2009 received
Hangzhou Bank
in July 2010
Greenesol Co. (India) 0 0
Sub-total 165,631,563.75 98,197,057.5
(3) There was no major limitation on retrieving of investment gains.
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
(III) Supplementary cash flow statement of the parent company
Same period of last
Supplementary Info. Current term
term
1. Net profit adjusted to cash flow of business operation
Net profit 374,782,845.36 291,383,898.04
Plus: Asset impairment provision 30,406,363.08 39,224,113.75
Fixed asset depreciation, gas and petrol depreciation, production goods
26,292,434.62 26,282,083.61
depreciation
Amortizing of intangible assets 1,178,647.72 1,178,647.72
Amortizing of long-term expenses
Loss from fixed assets, intangible assets and other long-term assets disposal
39,204.16 -48,907.71
(“-“ for gains)
Loss from fixed assets discarding (“-“ for gains)
Loss from fluctuate of fair value (“-“ for gains)
Financial expense (“-“ for gains) 815,541.07 4,603,057.83
Investment loss (“-“ for gains) -165,631,563.75 -98,297,793.27
Decrease of deferred income tax asset (“-“ for increase)
Increase of deferred income tax liabilities (“-“ for decrease)
Decrease of inventory (“-“ for increase) -377,786,795.66 -95,536,938.46
Decrease of operational receivables (“-“ for increase) 25,007,409.33 -234,769,419.72
Increase of operational payables (“-“ for decrease) 248,856,201.68 198,835,389.64
Others
Cash flow generated by business operation, net 163,960,287.61 132,854,131.43
2. Major investment and financing activities not involved with cash payment
Liabilities converted to capital
Convertible bond expire in 1 year
Fixed assets leased through financing
3. Net change of cash and cash equivalents
Balance of cash at period end 389,138,847.99 149,989,673.29
Less: Initial balance of cash 332,065,321.54 100,717,329.17
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents 57,073,526.45 49,272,344.12
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
XII. Supplementary information
(I) Non-recurring gain/loss
Items Amount Remarks
Gain/loss from disposal of non-working capital, including the neutralized part of the impairment
-30,925.82
provision provided already
Refunding and exemption of taxes in excess of authority or without official approval documents
Government subsidies accounted into current income account (except for those government subsidies
7,200.00
closely related to the Company’s business, and received at national statutory standard and amount)
Capital adoption fee collected from non-financial organizations and accounted into current gain/loss
Gain/loss from differences between the cost of enterprise merger and the fair value of recognizable net
asset of the invested entities
Gain/loss from non-monetary assets
Gain/loss from commissioned investment or assets
Asset impairment provisions provided for force-majeur
Gain/loss from debt reorganization
Enterprise reorganizing expenses, such as employee placement fee and integration fee
Gain/loss from trade departing from fair value
Current net gain/loss of subsidiaries under same control from beginning of term till date of
consolidation
Gain/loss generated by contingent liabilities without connection with main businesses
Gain/loss from change of fair value of transactional asset and liabilities, and investment gains from
disposal of transactional financial assets and liabilities and sellable financial assets, other than valid
period value instruments related to the Company’s common businesses
Restoring of receivable account impairment provision tested individually
Gain/loss from commissioned loans
Gain/loss from change of fair value of investment property measured at fair value in follow-up
measurement
Influence of one-time adjustment made on current gain/loss account according to the laws and
regulations regarding tax and accounting
Consigning fee received for cosigned operation
Other non-business income and expenditures other than the above -4,449,146.31
Other gain/loss items satisfying the definition of non-recurring gain/loss account
Sub-total -4,472,872.13
Less: Influence of enterprise income tax (??for decrease of income tax) 737,503.76
Influence on minority shareholders’ equity (after tax) 1,364,858.72
Net non-recurring gain/loss attributable to the owners of the parent company -2,370,509.65
(II) Net income on asset ratio and earning per share
1. Details
Earnings per share (yuan/share)
Weighted average net
Profit of the report period Basic earnings Diluted earnings
income on asset %
per share per share
Net profit attributable to common shareholders of the
10.71 0.5168 0.5168
Company
Net profit attributable to the common owners of the PLC
10.79 0.5205 0.5205
after deducting of non-recurring gains/losses
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
2. Calculation process of weighted average net income on asset
Items
Net profit attributable to common shareholders of the Company
Non-recurring gain/loss
Net profit attributable to common shareholders of the Company after deducting of non-recurring gain/loss
Net asset attributable to the common shareholders of the Company at beginning of term
Net asset increased by issuing of new shares or converting of debt to shares, and attributable to the common shareholders of the Company
Total number of months from the next month of when the asset was newly added to the end of report term
Net asset decreased by repurchasing or cash dividend and attributable to common shareholders of the Company
Total number of months from the next month of when the asset is decreased to the end of report term
Others
Others
Accumulative number of months from the next month when the change of net asset to the end of report term
Number of months in the report term
Weighted average net asset L= D+A
Net income on asset, weighted
Weighted average net income on asset after deducting of non-recurring gain/loss
(III) Statements on irregular items in the Financial Statements
Scale of
Balance Sheet Items End of term Beginning of term Remarks on the change
change
Mainly caused by expanding of business scale and
Prepayment 274,548,252.18 184,464,135.00 48.84 prepayment for equipment and product parts has
increased
Other account Mainly caused by increasing of balance of export tax
56,849,773.27 34,149,117.95 66.48
receivable refunding receivable at end of term
Mainly caused by expanding of sales and increase of
Inventories 1,564,194,624.49 1,168,959,067.36 33.81
spare parts and finished goods
Construction in
42,430,426.22 98,530,579.18 -56.94 Mainly caused by transferring to fixed assets
process
Mainly caused by increase of short term loans for
Short-term loans 383,000,000.00 226,000,000.00 69.47 the needs of production of Zhongcheng Cement
Factory
Mainly caused by expanding of sales scale, and
Account payable 849,559,474.16 522,983,194.67 62.44
increase of trade payable
Mainly caused by drawing of wages by Auxiliary
Employees ’ wage
42,955,828.05 29,174,456.31 47.24 Co., Casting Co., and Zhongneng Co. amounted to
payable RMB15.46 million.
Tax payable 35,208,380.72 105,407,867.17 -66.6 Paying of taxes according to government policies
Non-current liability
157,000,000.00 -100 Repaying of due loans
due in 1 year
Long-term Increase of borrowings by the Company, Casting
148,000,000.00 73,463,800.00 101.46
borrowings Co., and Zhongneng Co.
Other non-recurring Mainly caused by increasing of asset-related
20,855,340.00 5,047,140.00 313.21
liabilities government subsidies received in the term
Mainly caused by distribution of 3 bonus shares to
Capital paid in (or
628,342,000.00 483,340,000.00 30 each 10 shares as decided by the Shareholders’
share capital)
Meeting 2010
Income Statement Same period of last Scale of
Current term Remarks on the change
Items term change
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Business tax and Accounting of taxes and surcharges as stipulated
15,187,879.40 5,129,818.23 196.07
surcharge
Caused by increase of cargo freight, traveling fee,
Sales expense 73,624,896.84 54,567,107.05 34.93
and conference expenses
Receiving of the dividend amounted to
Investment income 24,118,640.00 1,100,735.77 2,091.14 RMB23,118,640.00 from Bank of Hangzhou for
year 2010
Operation profit 475,789,730.69 364,532,652.81 30.52 Increase of turnover
Non-operational Mainly caused by decreasing of government subsidy
1,468,373.60 2,207,680.04 -33.49
income received in the curren term
Total profit 471,316,858.56 361,682,077.81 30.31 Increase of turnover
Net profit 399,862,217.51 305,911,524.96 30.71 Increase of turnover
Hangzhou Steam Turbine Co., Ltd.
August 27 2011
79
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2011 (Full text)
Chapter VIII. Documents Ready for Inquiring
(I) Original copy of Interim Report 2011 in full text and summary with signature of the
Chairman.
(II) Financial Report bearing the signatures of the legal representative, financial superior and
head of accounting department.
(III) All documents that have been disclosed on statutory presses assigned by CSRC in
original copies.
(IV) Other related documents.
Hangzhou Steam Turbine Co., Ltd. (Stamp)
Chairman of Board: Nie Zhonghai
August 27 2011
80
