Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2012-39 Interim Report 2012 Summary I. Important Statement 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. All of the directors presented the board meeting at which this Semi-Annual Report was examined. The Interim Report was not audited by CPA. Chairman Mr. Nie Zhonghai, Chief Financial Officer Mr. Yan Jianhua, and the Chief of Accounting Department Mr. Wu Guomei hereby declares: the Financial Statement in the report is guaranteed to be truthful and complete. II. Company Profile (I) Basic information ID of A-stock Code of A-stock Stock Exchange Shenzhen Stock Exchange Secretary of the Board Representative of Stock Affairs Name Yu Changquan Wang Gang Address No. 357 Shiqiao Rd. Hangzhou No. 357 Shiqiao Rd. Hangzhou Tel. 0571-85780433 0571-85780198 Fax. 0571-85780432 0571-85780432 Email. ychq@htc.cn wg@htc.cn (II) Financial Highlights 1. Main accounting data and indices If retrospective adjustment has been carried out on financial reports of previous periods []Yes [V] No Ended this report Ended previous Changed by (%) term year Gross Assets (RMB) 7,127,518,436.09 6,892,582,376.59 3.41% Owners’ equity attributable to the shareholders of the 3,464,036,239.43 3,315,262,942.01 4.49% listed company (yuan) Capital shares (shares) 754,010,400.00 628,342,000.00 20% Net asset per share attributable to the shareholders of the 4.59 5.28 -13.07% listed company (Yuan/share) 1 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Liability on asset ratio (%) 46.16% 45.4% 0.76% Report term Same period last Increase/decrease over same (Jan-Jun) year period of last year(%) Turnover (yuan) 2,138,163,723.76 2,077,039,987.91 2.94% Business profit (RMB) 440,125,687.64 475,789,730.69 -7.5% Gross profit (RMB) 442,872,880.10 471,316,858.56 -6.04% Net profit attributable to shareholders of the listed 337,275,897.42 324,705,800.92 3.87% company (yuan) Net profit attributable to the shareholders of the listed company and after deducting of non-recurring 337,432,569.71 327,076,310.57 3.17% gain/loss(RMB) Basic earnings per share (Yuan/share) 0.4473 0.4306 3.88% Diluted earnings per share (Yuan/share) 0.4473 0.4306 3.88% Weighted average net 10.23% 10.71% -0.48% income/asset ratio (%) Weighted average net 10.24% 10.79% -0.55% income/asset ratio less non-recurring gain/loss(%) Net Cash flow generated by business operation (RMB) 153,417,196.36 324,046,092.60 -52.66% Net Cash flow per share generated by business operation 0.2035 0.52 -60.87% (yuan/share) Statement on the accounting data and financial indicies at end of report term. (Please state if retrospective adjustment was made.) 2. Non-recurring profit/loss items [V] Applicable [] Not applicable Amount from the beginning Non-recurring gain and loss items of year to the end of report Remarks period RMB Gain/loss of non-current assets 98,685.36 Tax refunding or exemption without official certification or exceeded authority Gains and losses included in the current period of government subsidies, excluding those government grants which are closely related to normal business and in line with national 5,010,600.00 policy , or in accordance with fixed standards or quantities 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 2 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary 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 -2,362,092.90 Other gain/loss items satisfying the definition of non-recurring gain/loss account Influenced amount of minority shareholders’ equity -1,916,551.70 Influenced amount of income tax -673,968.47 Total 156,672.29 -- 3. Differences in net profit and net asset under domestic and international accounting standards [V] Applicable [] Not applicable In RMB Yuan Net profit attributable to the shareholders of the Owners’ equity to shareholders of the listed listed company company Current term Previous term At end of term At beginning of term On Chinese Accounting 337,275,897.42 324,705,800.92 3,464,036,239.43 3,315,262,942.01 Standard Items and amounts adjusted on IAS Under International 337,275,897.42 324,705,800.92 3,464,036,239.43 3,315,262,942.01 Accounting Standard 4. Differences in net profit and net asset under domestic and overseas accounting standards []Applicable; [V] Not applicable III. Particulars About the Capital Share and Shareholders (I) Statement of Change in Capital Share [V] Applicable [] Not applicable Before the change Changed Currently (+,-) After the change Issuing of Transferre Proportion Bonus Proportio Amount new d from Others Sub-total Amount % shares n% shares reserves I. Shares with trade 399,854,0 79,970,80 79,970,80 479,824,8 63.64% 0 0 0 63.64% restriction conditions 00 0 0 00 399,854,0 79,970,80 79,970,80 479,824,8 1. State-owned shares 63.64% 0 0 0 63.64% 00 0 0 00 2. State-owned legal 399,854,0 79,970,80 79,970,80 479,824,8 63.64% 0 0 0 63.64% person shares 00 0 0 00 3. Other domestic shares Incl. Shares held by domestic legal persons 3 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Domestic natural person shares 4. Share held by foreign investors Incl. Shares held by foreign legal persons Foreign natural person shares 5. Executives’ shares 74,360 0% 0 14,872 0 0 14,872 89,232 0.0001% II. Shares without trading 228,488,0 45,697,60 45,697,60 274,185,6 36.36% 0 0 0 36.36% limited conditions 00 0 0 00 1. Common shares in RMB 2. Foreign shares in 228,488,0 45,697,60 45,697,60 274,185,6 36.36% 0 0 0 36.36% domestic market 00 0 0 00 3. Foreign shares in overseas market 4. Others 628,342,0 125,668,4 125,668,4 754,010,4 III. Total of capital shares 100% 0 0 100% 00.00 00 00 00.00 (II) Top 10 shareholders and top 10 holders of un-restricted / current shares Top 10 shareholders and top 10 holders of un-restricted shares Total of shareholders 17,477 Top Ten Shareholders Share Frozen or pledged Properties of Conditional Full name of shareholder proportio Total shares shareholder shares Status of shares Amount n% Hangzhou Steam Turbine State-owned legal 63.64% 479,824,800 Restricted 141,960,000 Power Group Co., Ltd. person Overseas legal GAOLING FUND,L.P. 0.53% 3,982,900 unrestricted 0 person Overseas natural Li Minggong 0.5% 3,783,130 unrestricted 0 person Overseas legal NORGES BANK 0.41% 3,094,954 unrestricted 0 person Shanghai Hong Kong Overseas legal 0.37% 2,778,454 unrestricted 0 Wanguo Securities person TOYO SECURITIES ASIA Overseas legal 0.35% 2,675,751 unrestricted 0 LIMITED-A/C CLIENT. person SCHRODER INTL SELECTION Overseas legal 0.35% 2,601,429 unrestricted 0 FD-GREATER CN FD GTI person 25287 BOCHK INVESTMENT FUNDS-BOCHK CHINA Overseas legal 0.31% 2,301,344 unrestricted 0 GOLDEN DRAGON person FUND AUSTRALIANSUPER Overseas legal 0.28% 2,108,321 unrestricted 0 PTY LTD person Overseas natural Fu Shuying 0.23% 1,762,910 unrestricted 0 person Top 10 holders of unconditional shares Name of the shareholder Amount of shares without Categories and amounts of shares 4 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary trade limited conditions Categories Amount GAOLING FUND,L.P. 3,982,900 B shares 3,982,900 Li Minggong 3,783,130 B shares 3,783,130 NORGES BANK 3,094,954 B shares 3,094,954 Shanghai Hong Kong Wanguo Securities 2,778,454 B shares 2,778,454 TOYO SECURITIES ASIA LIMITED-A/C 2,675,751 B shares 2,675,751 CLIENT. SCHRODER INTL SELECTION 2,601,429 B shares 2,601,429 FD-GREATER CN FD GTI 25287 BOCHK INVESTMENT FUNDS-BOCHK 2,301,344 B shares 2,301,344 CHINA GOLDEN DRAGON FUND AUSTRALIANSUPER PTY LTD 2,108,321 B shares 2,108,321 Fu Shuying 1,762,910 B shares 1,762,910 FIRST SECURITIES (HK) NOMINEE 1,757,404 B shares 1,757,404 LIMITED (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 10 shareholders. (3) None of the other shareholders are regarded as Act in Concert relationship Statement of relationships and (or) according to the Administrative Regulations of Information Disclosing of Public action-in-concert among above shareholders: Companies. (4) Hangzhou Steam Turbine Group Co., Ltd. (HSTG) entered the share equity 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. (III) Change of controlling shareholder and substantial controller []Applicable; [V] Not applicable IV. Particulars about the Directors, Supervisors, and Senior Management (I) Change of shareholding by directors, supervisors, and executives Shares Shares Incl. Amount Share options Shares Shares held holding at the decreased of shares held at the Cause of Name Position increased this at the end of beginning of this term under end of term change term (shares) term term (shares) (shares) restriction (shares) Nie Zhonghai Chairman 0 0 0 0 0 0 None Wang Director 0 0 0 0 0 0 None Hongkang Zhen Bin Director 0 0 0 0 0 0 None Yan Jianhua Director, GM 0 0 0 0 0 0 None Ye Zhong Director, 0 0 0 0 0 0 None 5 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Vice GM Liu Guoqiang Director 0 0 0 0 0 0 None Independent Xu Yongbin 0 0 0 0 0 0 None Director Independent Zhang Hejie 0 0 0 0 0 0 None Director Independent Lv Fan 0 0 0 0 0 0 None Director Independent Tan Jianrong 0 0 0 0 0 0 None Director Chu Shuilong Supervisor 0 0 0 0 0 0 None Pu Yangshuo Supervisor 0 0 0 0 0 0 None Zhang Supervisor 0 0 0 0 0 0 None Yougen Employee Lu Jianhua 0 0 0 0 0 0 None Supervisor Employee Fang Yin 0 0 0 0 0 0 None Supervisor Ye Vice General 0 0 0 0 0 0 None Yongzhong Manager Vice General Zhang Shutan 74,360 14,872 0 89,232 66,924 0 Bonus shares Manager Yu Vice General 0 0 0 0 0 0 None Changquan Manager V. Report of the Board (I) Main business segment in industries and products In RMB Yuan Segments on industries Increase/decrease Increase/decrease Increase/decrease of operation cost of gross profit Gross profit of turnover over On Industries Turnover Operation cost over the same ratio over the ratio % the same period period of last year same period of of last year (%) (%) last year (%) Boiler and power machine 1,761,008,351.13 1,100,362,901.96 37.52% 13.13% 20.83% -3.98% manufacture Casting 33,867,196.40 28,709,509.85 15.23% -5.12% -2.81% -2.02% Petrochemical and other special 39,473,031.69 32,840,485.68 16.8% -38.13% -22.12% -17.11% machineries Packaged equipment for 59,196,597.29 52,254,212.57 11.73% -69.5% -58.38% -23.59% waste heat power plant Other special 238,586,923.27 139,505,068.46 41.53% 9.74% -3.19% 7.81% equipment Segements on products Gross profit Increase/decrease Increase/decrease Increase/decrease On Products Turnover Operation cost ratio % of turnover over of operation cost of gross profit 6 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary the same period over the same ratio over the of last year (%) period of last year same period of (%) last year (%) Industrial steam 1,761,008,351.13 1,100,362,901.96 37.52% 13.13% 20.83% -3.98% turbine Casting products 33,867,196.40 28,709,509.85 15.23% -5.12% -2.81% -2.02% Auxiliary 39,473,031.69 32,840,485.68 16.8% -38.13% -22.12% -17.11% machinery Packaged equipment for 59,196,597.29 52,254,212.57 11.73% -69.5% -58.38% -23.59% waste heat power plant Others 238,586,923.27 139,505,068.46 41.53% 9.74% -3.19% 7.81% (II) Main business segment on regions In RMB Yuan Regions Turnover Change of turnover YoY (%) Domestic 1,866,613,768.57 4.02% Overseas 265,518,331.21 -2.82% (III) Statement on material change in main business composision []Applicable; [V] Not applicable (IV) Statement on material change in main business profitability (gross profit) []Applicable; [V] Not applicable (V) Analyze of major changes on profit composition comparing with the same period of last year []Applicable; [V] Not applicable (VI) Usage of financing proceeds 1. Comparison of usage of financing proceeds []Applicable; [V] Not applicable 2. Statement on change of projects invested with financing proceeds []Applicable; [V] Not applicable (VII) Revising of business plan for the 2nd half of year by the Board []Applicable; [V] Not applicable (VIII) Prediction of business performance in Jan-Sept 2012 Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the 7 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary same period of last year, and statement of causations. []Applicable; [V] Not applicable (IX) Statement of the Board on the 搉 on-standard auditors’ report[]issued by the CPA on the current report period []Applicable; [V] Not applicable (X) Statement of the Board on the variation and treatment of events that involved in the 搉 on-standard auditors’ report[]issued by the CPA on previous fiscal year []Applicable; [V] Not applicable VI. Significant Events (I) Acquisition, dispsal, or reconstruction of assets 1. Acquisition of assets []Applicable; [V] Not applicable 2. Disposal of assets Net profit contributed Percentage to the PLC of the since the Gain/loss Debt & profit The other beginning Related Completely Relationship Date of Price from Pricing credit contributed party of Asset traded of the transaction transferred with the disposal RMB0’000 disposal policies transferred by the trade current or not or not other party RMB0’000 or not asset in the period to total profit the date of of PLC disposal RMB0’000 70% share capital of Hangzhou Ye Mar 31 Price on Energy 0 -52.42 0 No Yes Yes 0% Zhonglei 2012 agreement Saving Tech Institute Ltd. 51% share capital of Li Dushan Mar 31 Price on 510.69 -56.15 0.69 No Yes Yes 0% Jiancheng Zhongcheng 2012 agreement Shangtong Ltd. Statement on disposal of assets. (1) According to the resolutions adopted on February 12, 2012 by the shareholders of Hangzhou Energy Saving Institute Co., Ltd., the company was given to Ye Zhonglei with zero asset. The agreement has been engaged on March 30, 2012. Therefore it was not consolidated since April 2012. (2) According to the resolutions adopted on March 16, 2012 by the shareholders of Guizhou Zhongcheng Cement 8 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Co., Ltd., the 51% (RMB5.1 million of capital share) share of the company holds in Dushan Zhongcheng Shangtong Co., Ltd. was transferred to Li Jiancheng. The agreement has been engaged on March 16, 2012. Therefore it was not consolidated since April 2012. 3. Since releasing of capital reconstruction report or asset acquisition or disposal report, their progress and influences on the business performance and financial positions. []Applicable; [V] Not applicable (II) Guarantee issues In RMB10 thousand External Guarantee (Exclude controlled subsidiaries) Amount of Actual date of Amount of Related Guarantee provided guarantee occurring Actual amount Type of Complete the Term party or to and date of (signing date of of guarantee guarantee d or not guarantee not disclosure agreements Total of external guarantee Total of external guarantee actually occurred in the report approved in the report term (A1) term (A2) Total of external guarantee Total of external guarantee approved as of end of report term actually occurred as of end of (A3) report term (A4) Guarantee provided to controlled subsidiaries Amount of Actual date of Amount of Related Guarantee provided guarantee occurring Actual amount Type of Complete the Term party or to and date of (signing date of of guarantee guarantee d or not guarantee not disclosure agreements Hangzhou Zhongneng Steam July 25, 6,000 July 25, 2011 5,000 Guaranteed 1 yr No No Turbine Power Co., 2011 Ltd. Total of guarantee to Total of guarantee to subsidiaries 0 subsidiaries actually occurred 0 approved in the report term (B1) in the report term (B2) Total of balance of guarantee Total of guarantee to subsidiaries actually provided to the approved as of the report term 6,000 5,000 subsidiaries as of end of report (B3) term (B4) Total of guarantee provided by the Company (i.e. total of the above two items) Total of guarantee approved in the Total of guarantee occurred in 0 0 report term (A1+B1) the report term (A2+B2) Total of guarantee occurred as Total of guarantee approved as of 6,000 of the end of report term 5,000 end of report term (A3+B3) (A4+B4) Percentage of the total guarantee occurred (A4+B4) on net asset 1.44% of the Company In which: Guarantees provided to the shareholders, substantial controllers 0 and the related parties (C) Guarantee provided directly or indirectly to objects with over 0 70% of liability on asset ratio (D) Amount of guarantee over 50% of the net asset (E) 0 Total of the above 3 * (C+D+E) 0 9 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Statement on the possible joint liabilities on the guarantees not due yet Remarks on illegal providing of external guarantee (III) Non-operational capital interchange with related parties Non-operational transaction of credits and debts with related parties [] Yes [V] No (IV) Material lawsuit or arbitration []Applicable; [V] Not applicable (V) Influence and resolutions of other material events []Applicable; [V] Not applicable 1. Securities investment []Applicable; [V] Not applicable Statement on securities investment 2. Holding of other PLC’s shares []Applicable; [V] Not applicable Statement on holding of other PLC’s shares. 3. Capital appropriation and progress of settlement in report period []Applicable; [V] Not applicable The penalty plan proposed by the Board if the clearing of non-operational capital appropriation is not completed till the end of report period. []Applicable; [V] Not applicable 4 Fulfilling of commitment issues Commitment made by the PLC, its directors, supervisors, executives, and shareholders with 5% or over shares of the Company, and its substantial dominator in the report term or carried over to the report term: []Applicable; [V] Not applicable 5. Dividend or common reserve capitalizing plan proposed by the Board []Applicable; [V] Not applicable 6. Other misc income accounts In RMB Yuan Occurred current Occurred in previous Items term term 1. Amount of gain (loss) from sellable financial assets Less: Income tax influence of available-for-sale financial assets Net amount written into other gains and transferred into gain/loss in previous terms 10 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Sub-total 2. Share in other misc. income of the invested company on equity basis Less: Income tax influence of shares in other gains of investees on equity basis Net amount written into other gains and transferred into gain/loss in previous terms Sub-total 3. Amount of gain (loss) from cash flow hedging instruments Less: Income tax influence of cash flow hedge instruments Net amount written into other gains and transferred into gain/loss in previous terms Adjusted amount transferred to initial amount of the target project Sub-total 4. Difference in translating of foreign currency accounts Less: Net amount of disposing overseas business and transferred to current gain/loss Sub-total 5. Others Less: Income tax influence by other accounted into other misc. incomes Net amount accounted into other misc. income and transferred into current gain/loss in previous terms Sub-total Total 0.00 0.00 (VI) Reception of visiting, investigating, and communicating requests in the report term were as the followings Type of Time/date Place Way Visitors Main content involved and material provided visitors Overseas market, industrial situation, strategy plan, January 13, The Field Institution North-east Security market share, delayed delivery, prospect on gas 2012 Company research turbine, portion of outsourced manufacturing Sweeden Yingtuo Capital Product character, delivery circle, receivable account, February The Field Institution Management Co. market share, competitors, minority shareholders, 06, 2012 Company research (pronunciation) overseas market, dividend policy February The Field Institution Industrial situation, down stream market, group Jinshi Investment 24, 2012 Company research business, future of B shares Institution Recent projects, industrial barrier, financial resources, March 09, The Field Huili Foundation main products and orders, delivery circle, influence of 2012 Company research the raw material, market competition* March 23, The Field Institution Yichuang Morgan Enterprise debenture 2012 Company research VII. Financial Report (I) Auditors’ opinions If the Interim Report is audited []Yes [V] No 11 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary (II) Financial Statements Consolidated or not[] [V] Yes [V] No 1. Consolidated Balance Sheet Prepared by: Hangzhou Steam Turbine Co., Ltd In RMB Items Note Closing balance Openning balance Current asset: Monetary capital 468,365,641.08 662,648,725.65 Settlement provision 0.00 0.00 Outgoing call loan 0.00 0.00 Transactional financial assets 0.00 0.00 Notes receivable 942,191,414.65 783,869,310.40 Account receivable 1,789,039,903.74 1,812,706,051.31 Prepayment 244,754,578.42 208,732,412.73 Insurance receivable 0.00 0.00 Reinsurance receivable 0.00 0.00 Provisions of Reinsurance contracts receivable 0.00 0.00 Interest receivable 0.00 0.00 Dividend receivable 0.00 0.00 Other account receivable 55,998,268.84 75,627,129.17 Repurchasing of financial assets 0.00 0.00 Inventories 1,653,113,615.22 1,465,135,236.51 Non-current asset due in 1 year 160,000,000.00 20,000,000.00 Other current asset 4,009,257.70 5,661,299.59 Total of current asset 5,317,472,679.65 5,034,380,165.36 Non-current assets Disburse of consigned loans 0.00 0.00 Sellable financial asset 0.00 0.00 Expired investment in possess 0.00 0.00 Long-term receivable 0.00 0.00 Long-term share equity investment 462,088,813.22 462,088,813.22 Investment real estates 0.00 0.00 Fixed assets 896,676,709.43 944,932,607.77 Construction in process 66,942,899.66 56,000,094.04 Engineering goods 0.00 0.00 Fixed asset disposal 0.00 0.00 Production physical assets 0.00 0.00 Gas & petrol 0.00 0.00 Intangible assets 266,786,689.92 276,922,402.76 R&D expense 0.00 0.00 Goodwill 0.00 0.00 Long-term amortizable expenses 5,558,239.57 4,959,937.22 Deferred income tax asset 86,992,404.64 88,298,356.22 Other non-current asset 25,000,000.00 25,000,000.00 12 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Total of non-current assets 1,810,045,756.44 1,858,202,211.23 Total of assets 7,127,518,436.09 6,892,582,376.59 Current liabilities Short-term loans 296,717,423.50 279,317,423.50 Loan from Central Bank 0.00 0.00 Deposit received and hold for others 0.00 0.00 Call loan received 0.00 0.00 Trade off financial liabilities 0.00 0.00 Notes payable 103,180,000.00 139,807,194.00 Account payable 791,002,328.03 590,763,406.24 Prepayment received 1,554,491,658.62 1,574,022,744.91 Selling of repurchased financial assets 0.00 0.00 Fees and commissions receivable 0.00 0.00 Employees’ wage payable 37,358,203.70 29,149,223.54 Tax payable 46,552,337.47 90,706,239.00 Interest payable 31,740.00 260,577.78 Dividend payable 9,000,000.00 Other account payable 263,741,674.09 227,302,074.82 Reinsurance fee payable 0.00 0.00 Insurance contract provision 0.00 0.00 Entrusted trading of securities 0.00 0.00 Entrusted selling of securities 0.00 0.00 Non-current liability due in 1 year 10,000,000.00 10,000,000.00 Other current liability 0.00 0.00 Total of current liability 3,112,075,365.41 2,941,328,883.79 Non-current liabilities Long-term borrowings 125,000,000.00 125,000,000.00 Bond payable 0.00 0.00 Long-term payable 27,774,194.55 44,818,324.41 Special payable 0.00 0.00 Anticipated liabilities 0.00 0.00 Deferred income tax liability 1,041,180.44 1,041,180.44 Other non-recurring liabilities 24,186,374.66 17,310,045.00 Total of non-current liabilities 178,001,749.65 188,169,549.85 Total of liability 3,290,077,115.06 3,129,498,433.64 Owners’ equity (or shareholders’ equity) Capital paid in (or share capital) 754,010,400.00 628,342,000.00 Capital reserves 139,590,345.09 139,590,345.09 Less: Shares in stock 0.00 0.00 Special reserves 0.00 0.00 Surplus reserves 453,183,370.20 453,183,370.20 Common risk provision 0.00 0.00 Retained profit 2,117,252,124.14 2,094,147,226.72 Different of foreign currency translation Total of owner’s equity belong to the parent company 3,464,036,239.43 3,315,262,942.01 Minor shareholders’ equity 373,405,081.60 447,821,000.94 13 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Total of owners’ equity (or shareholders’ equity) 3,837,441,321.03 3,763,083,942.95 Total of liability and shareholders’ equity (or owners’ equity) 7,127,518,436.09 6,892,582,376.59 Legal representative: Nie Zhonghai CFO: Yan Jianhua Accounting Manager: Wu Guomei 2. Balance Sheet of the Parent Company In RMB Items Note Closing balance Openning balance Current asset: Monetary capital 237,472,679.86 335,248,349.26 Transactional financial assets Notes receivable 670,281,720.17 448,393,858.41 Account receivable 1,384,834,123.16 1,395,509,702.83 Prepayment 158,981,273.43 113,735,693.96 Interest receivable Dividend receivable Other account receivable 37,154,285.84 12,151,541.72 Inventories 1,182,059,649.60 1,070,075,603.00 Non-current asset due in 1 year Other current asset 50,000,000.00 Total of current asset 3,720,783,732.06 3,375,114,749.18 Non-current assets Sellable financial asset Expired investment in possess Long-term receivable Long-term share equity investment 516,782,461.07 516,782,461.07 Investment real estates Fixed assets 345,511,825.66 361,028,552.81 Construction in process 43,043,127.43 40,483,268.63 Engineering goods Fixed asset disposal Production physical assets Gas & petrol Intangible assets 44,366,863.73 45,545,511.45 R&D expense Goodwill Long-term amortizable expenses 3,381,273.23 3,381,273.23 Deferred income tax asset 54,740,403.46 54,740,403.46 Other non-current asset Total of non-current assets 1,007,825,954.58 1,021,961,470.65 Total of assets 4,728,609,686.64 4,397,076,219.83 Current liabilities Short-term loans 16,317,423.50 16,317,423.50 Trade off financial liabilities Notes payable Account payable 451,108,120.28 276,473,416.53 14 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Prepayment received 1,022,864,595.07 1,032,539,706.27 Employees’ wage payable 22,754,881.86 16,525,266.24 Tax payable 40,179,903.36 67,963,322.70 Interest payable Dividend payable Other account payable 21,706,159.30 38,189,812.37 Non-current liability due in 1 year Other current liability Total of current liability 1,574,931,083.37 1,448,008,947.61 Non-current liabilities Long-term borrowings 100,000,000.00 100,000,000.00 Bond payable Long-term payable Special payable Anticipated liabilities Deferred income tax liability 1,041,180.44 1,041,180.44 Other non-recurring liabilities 4,778,250.00 778,250.00 Total of non-current liabilities 105,819,430.44 101,819,430.44 Total of liability 1,680,750,513.81 1,549,828,378.05 Owners’ equity (or shareholders’ equity) Capital paid in (or share capital) 754,010,400.00 628,342,000.00 Capital reserves 138,953,250.09 138,953,250.09 Less: Shares in stock Special reserves Surplus reserves 434,426,965.07 434,426,965.07 Retained profit 1,720,468,557.67 1,645,525,626.62 Different of foreign currency translation Total of owners’ equity (or shareholders’ equity) 3,047,859,172.83 2,847,247,841.78 Total of liability and shareholders’ equity (or owners’ equity) 4,728,609,686.64 4,397,076,219.83 3. Consolidated Income Statement In RMB Amount of the Current Amount of the Previous Items Note Term Term I. Total revenue 2,138,163,723.76 2,077,039,987.91 Incl. Business income 2,138,163,723.76 2,077,039,987.91 Interest income Insurance fee earned Fee and commission received II. Total business cost 1,728,453,931.77 1,625,368,897.22 Incl. Business cost 1,355,776,212.37 1,260,362,576.79 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Net insurance policy reserves provided 15 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 19,006,186.62 15,187,879.40 Sales expense 75,058,125.24 73,624,896.84 Administrative expense 259,247,423.77 222,656,776.23 Financial expenses 15,625,642.92 12,043,223.86 Asset impairment loss 3,740,340.85 41,493,544.10 Plus: gains from change of fair value (“-“ for loss) Investment gains (“-“ for loss) 30,415,895.65 24,118,640.00 Incl. Investment gains from affiliates Exchange gains (“-“ for loss) III. Operational profit (“-“ for loss) 440,125,687.64 475,789,730.69 Plus: non-operational income 7,991,933.68 1,468,373.60 Less: non-operational expenditure 5,244,741.22 5,941,245.73 Incl. Loss from disposal of non-current assets 360,981.96 118,959.38 IV. Gross profit (“-“ for loss) 442,872,880.10 471,316,858.56 Less: Income tax expenses 69,046,850.08 71,454,641.05 V. Net profit (“-“ for net loss) 373,826,030.02 399,862,217.51 Including: Net profit realized by the entity taken over before the takover Net profit attributable to the owners of parent company 337,275,897.42 324,705,800.92 Minor shareholders’ equity 36,550,132.60 75,156,416.59 VI. Earnings per share: -- -- (I) Basic earnings per share 0.4473 0.4306 (II) Diluted earnings per share 0.4473 0.4306 VII. Other misc. incomes VIII. Total of misc. incomes 373,826,030.02 399,862,217.51 Total of misc. incomes attributable to the owners of the parent 337,262,173.27 324,705,800.92 company Total misc gains attributable to the minor shareholders 36,563,856.75 75,156,416.59 Legal representative: Nie Zhonghai CFO: Yan Jianhua Accounting Manager: Wu Guomei 4. Income Statement of the Parent Co. In RMB Items Note Amount of the Current Term Amount of the Previous Term I. Turnover 1,425,851,447.45 1,223,162,586.92 Less: Operation cost 936,260,655.36 759,380,397.69 Business tax and surcharge 12,674,471.52 8,473,862.10 Sales expense 50,139,365.95 41,527,608.02 Administrative expense 157,947,230.92 137,318,549.34 Financial expenses 2,199,053.51 815,541.07 Asset impairment loss -5,351,657.81 30,406,363.08 Plus: gains from change of fair value (“-“ for loss) Investment gains (“-“ for loss) 157,568,577.24 165,631,563.75 Incl. Investment gains from affiliates II. Operational profit (“-“ for loss) 429,550,905.24 410,871,829.37 16 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Plus: Non business income 2,989,640.13 1,374,608.04 Less: Non-business expenses 2,118,952.36 2,279,316.75 Incl. Loss from disposal of non-current assets III. Total profit (“-“ for loss) 430,421,593.01 409,967,120.66 Less: Income tax expenses 41,307,661.96 35,184,275.30 IV. Net profit (“-“ for net loss) 389,113,931.05 374,782,845.36 V. Earnings per share -- -- (I) Basic earnings per share (II) Diluted earnings per share VI. Other misc gains VII. Total of integrated income 389,113,931.05 374,782,845.36 Legal representative: Nie Zhonghai CFO: Yan Jianhua Accounting Manager: Wu Guomei 5. Consolidated Cash Flow Statement In RMB Amount of the Current Amount of the Previous Items Term Term I. Net cash flow from business operation Cash received from sales of products and providing of services 1,856,658,242.54 2,074,588,353.09 Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment 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 Tax returned 36,504,027.15 12,504,514.20 Other cash received from business operation 38,136,192.09 26,512,590.71 Sub-total of cash inflow from business activities 1,931,298,461.78 2,113,605,458.00 Cash paid for purchasing of merchandise and services 1,085,076,438.16 1,144,900,001.88 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 310,592,825.40 267,102,564.91 Taxes paid 257,211,811.61 269,172,661.57 Other cash paid for business activities 125,000,190.25 108,384,137.04 Sub-total of cash outflow from business activities 1,777,881,265.42 1,789,559,365.40 Cash flow generated by business operation, net 153,417,196.36 324,046,092.60 II. Cash flow generated by investing Cash received from investment retrieving 5,100,060.30 17 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Cash received as investment profit 29,827,626.85 24,118,640.00 Net cash retrieved from disposal of fixed assets, intangible assets, and 1,058,627.54 884,200.00 other long-term assets Net cash received from disposal of subsidiaries or other operational units -653,509.83 Other investment-related cash received 430,001,993.99 Sub-total of cash inflow due to investment activities 465,334,798.85 25,002,840.00 Cash paid for construction of fixed assets, intangible assets and other 32,813,607.75 48,366,549.48 long-term assets Cash paid as investment 39,502,361.60 Net increase of loan against pledge Net cash received from subsidiaries and other operational units Other cash paid for investment activities 565,000,114.82 Sub-total of cash outflow due to investment activities 597,813,722.57 87,868,911.08 Net cash flow generated by investment -132,478,923.72 -62,866,071.08 III. Cash flow generated by financing Cash received as investment 5,143,994.80 Incl. Cash received as investment from minor shareholders Cash received as loans 386,400,000.00 442,000,000.00 Cash received from bond placing Other financing-related cash received Subtotal of cash inflow from financing activities 391,543,994.80 442,000,000.00 Cash to repay debts 310,813,742.00 367,463,800.00 Cash paid as dividend, profit, or interests 295,141,375.57 292,514,985.45 Incl. Dividend and profit paid by subsidiaries to minor shareholders Other cash paid for financing activities 708,350.24 Subtotal of cash outflow due to financing activities 606,663,467.81 659,978,785.45 Net cash flow generated by financing -215,119,473.01 -217,978,785.45 IV. Influence of exchange rate alternation on cash and cash equivalents -101,884.20 -732,616.93 V. Net increase of cash and cash equivalents -194,283,084.57 42,468,619.14 Plus: Balance of cash and cash equivalents at the beginning of term 662,648,725.65 621,373,402.65 VI. Balance of cash and cash equivalents at the end of term 468,365,641.08 663,842,021.79 Legal representative: Nie Zhonghai CFO: Yan Jianhua Accounting Manager: Wu Guomei 6. Cash Flow Statement of the Parent Co. In RMB Amount of the Current Amount of the Previous Items Term Term I. Net cash flow from business operation Cash received from sales of products and providing of services 1,098,537,350.18 1,127,326,131.55 Tax returned Other cash received from business operation 7,303,872.59 17,848,316.70 Sub-total of cash inflow from business activities 1,105,841,222.77 1,145,174,448.25 Cash paid for purchasing of merchandise and services 665,974,287.00 588,004,393.24 Cash paid to staffs or paid for staffs 233,835,788.94 201,328,020.42 Taxes paid 161,812,413.15 148,026,726.91 Other cash paid for business activities 39,394,997.51 43,855,020.07 18 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Sub-total of cash outflow from business activities 1,101,017,486.60 981,214,160.64 Cash flow generated by business operation, net 4,823,736.17 163,960,287.61 II. Cash flow generated by investing Cash received from investment retrieving Cash received as investment profit 157,568,577.24 165,631,563.75 Net cash retrieved from disposal of fixed assets, intangible assets, and 698,000.00 526,200.00 other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 340,000,000.00 Sub-total of cash inflow due to investment activities 498,266,577.24 166,157,763.75 Cash paid for construction of fixed assets, intangible assets and other 19,778,556.22 21,727,940.63 long-term assets Cash paid as investment 4,502,361.60 Net cash received from subsidiaries and other operational units Other cash paid for investment activities 390,000,000.00 Sub-total of cash outflow due to investment activities 409,778,556.22 26,230,302.23 Net cash flow generated by investment 88,488,021.02 139,927,461.52 III. Cash flow generated by financing Cash received as investment Cash received as loans 100,000,000.00 Cash received from bond placing Other financing-related cash received Subtotal of cash inflow from financing activities 0.00 100,000,000.00 Cash to repay debts 150,463,800.00 Cash paid as dividend, profit, or interests 190,922,266.66 195,667,810.10 Other cash paid for financing activities Subtotal of cash outflow due to financing activities 190,922,266.66 346,131,610.10 Net cash flow generated by financing -190,922,266.66 -246,131,610.10 IV. Influence of exchange rate alternation on cash and cash equivalents -165,159.93 -682,612.58 V. Net increase of cash and cash equivalents -97,775,669.40 57,073,526.45 Plus: Balance of cash and cash equivalents at the beginning of term 335,248,349.26 332,065,321.54 VI. Balance of cash and cash equivalents at the end of term 237,472,679.86 389,138,847.99 Legal representative: Nie Zhonghai CFO: Yan Jianhua Accounting Manager: Wu Guomei 7. Statement of Change in Owners’ Equity (Consolidated) Amount of the Current Term In RMB Amount of the Current Term Owners’ Equity Attributable to the Parent Company Items Capital Minor Total of paid in (or Capital Less: Special Surplus Common Retained shareholder’ owners’ Shares in risk Others equity equity share reserves reserves reserves profit stock provision capital) 628,342,0 139,590,3 453,183,3 2,094,147 447,821,000 3,763,083,94 I. Balance at the end of last year 00.00 45.09 70.20 ,226.72 .94 2.95 Plus: Change of accounting policy Correcting of previous errors 19 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary Others II. Balance at the beginning of current 628,342,0 139,590,3 453,183,3 2,094,147 447,821,000 3,763,083,94 year 00.00 45.09 70.20 ,226.72 .94 2.95 III. Amount of change in current term 125,668,4 23,104,89 -74,412,159 74,361,138.0 (“-“ for decrease) 00.00 7.42 .34 8 337,275,8 36,550,132. 373,826,030. (I) Net profit 97.42 60 02 (II) Other misc. income 337,275,8 36,550,132. 373,826,030. Total of (I) and (II) 97.42 60 02 (III) Investment or decreasing of -1,279,164. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,279,164.12 capital by owners 12 3,200,000.0 1. Capital inputted by owners 3,200,000.00 0 2. Amount of shares paid and accounted as owners’ equity -4,479,164. 3. Others -4,479,164.12 12 125,668,4 -314,171, -109,683,12 -298,185,727. (IV) Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 00.00 000.00 7.82 82 1. Providing of surplus reserves 2. Common risk provision 3. Allotment to the owners (or 125,668,4 -314,171, -109,683,12 -298,185,727. shareholders) 00.00 000.00 7.82 82 4. Others (V) Internal transferring of owners’ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 0.00 1. Provided this year 2. Used this term (VII) Others 754,010,4 139,590,3 453,183,3 2,117,252 373,405,081 3,837,441,32 IV. Balance at the end of this term 00.00 45.09 70.20 ,124.14 .60 1.03 Amount of Last Year In RMB Amount of Last Year Owners’ Equity Attributable to the Parent Company Items Capital Minor Total of Less: Common shareholders owners’ paid in (or Capital Special Surplus Retained Shares in risk Others ’ equity equity share reserves reserves reserves profit stock provision capital) 483,340,0 139,590,3 389,362,1 1,855,918 433,290,557 3,301,501,79 I. Balance at the end of last year 00.00 45.09 61.03 ,732.56 .61 6.29 Plus: Retrospective adjustment caused by merger of entities under common control Plus: Change of accounting policy Correcting of previous errors Others II. Balance at the beginning of current 483,340,0 139,590,3 389,362,1 1,855,918 433,290,557 3,301,501,79 year 00.00 45.09 61.03 ,732.56 .61 6.29 III. Amount of change in current term 145,002,0 63,821,20 238,228,4 14,530,443. 461,582,146. 20 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary (“-“ for decrease) 00.00 9.17 94.16 33 66 640,387,7 133,785,345 774,173,049. (I) Net profit 03.33 .75 08 (II) Other misc. income 640,387,7 133,785,345 774,173,049. Total of (I) and (II) 03.33 .75 08 (III) Investment or decreasing of 8,180,000.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,180,000.00 capital by owners 0 8,180,000.0 1. Capital inputted by owners 8,180,000.00 0 2. Amount of shares paid and accounted as owners’ equity 3. Others 145,002,0 63,821,20 -402,159, -127,434,90 -320,770,902. (IV) Profit allotment 0.00 0.00 0.00 0.00 0.00 00.00 9.17 209.17 2.42 42 63,821,20 -63,821,2 1. Providing of surplus reserves 9.17 09.17 2. Common risk provision 3. Allotment to the owners (or 145,002,0 -338,338, -127,434,90 -320,770,902. shareholders) 00.00 000.00 2.42 42 4. Others (V) Internal transferring of owners’ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 628,342,0 139,590,3 453,183,3 2,094,147 447,821,000 3,763,083,94 IV. Balance at the end of this term 00.00 45.09 70.20 ,226.72 .94 2.95 Legal representative: Nie Zhonghai CFO: Yan Jianhua Accounting Manager: Wu Guomei 8. Statement of Change in Owners’ Equity (Parent Co.) Amount of the Current Term In RMB Amount of the Current Term Items Capital paid Total of Capital Less: Shares Special Surplus Common risk Retained in (or share owners’ reserves in stock reserves reserves provision profit capital) equity 628,342,000. 138,953,250. 434,426,965. 1,645,525,62 2,847,247,84 I. Balance at the end of last year 00 09 07 6.62 1.78 Plus: Change of accounting policy Correcting of previous errors Others II. Balance at the beginning of current 628,342,000. 138,953,250. 434,426,965. 1,645,525,62 2,847,247,84 year 00 09 07 6.62 1.78 III. Amount of change in current term 125,668,400. 74,942,931.0 200,611,331. (“-“ for decrease) 00 5 05 389,113,931. 389,113,931. (I) Net profit 05 05 (II) Other misc. income 21 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary 389,113,931. 389,113,931. Total of (I) and (II) 05 05 (III) Investment or decreasing of capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 by owners 1. Capital inputted by owners 2. Amount of shares paid and accounted as owners’ equity 3. Others 125,668,400. -314,171,000 -188,502,600 (IV) Profit allotment 0.00 0.00 0.00 0.00 0.00 00 .00 .00 1. Providing of surplus reserves 2. Common risk provision 3. Allotment to the owners (or 125,668,400. -314,171,000 -188,502,600 shareholders) 00 .00 .00 4. Others (V) Internal transferring of owners’ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 754,010,400. 138,953,250. 434,426,965. 1,720,468,55 3,047,859,17 IV. Balance at the end of this term 00 09 07 7.67 2.83 Amount of Last Year In RMB Amount of Last Year Items Capital paid Total of Capital Less: Shares Special Surplus Common risk Retained in (or share owners’ reserves in stock reserves reserves provision profit capital) equity 483,340,000. 138,953,250. 370,605,755. 1,409,472,74 2,402,371,75 I. Balance at the end of last year 00 09 90 4.11 0.10 Plus: Change of accounting policy Correcting of previous errors Others II. Balance at the beginning of current 483,340,000. 138,953,250. 370,605,755. 1,409,472,74 2,402,371,75 year 00 09 90 4.11 0.10 III. Amount of change in current term 145,002,000. 63,821,209.1 236,052,882. 444,876,091. (“-“ for decrease) 00 7 51 68 638,212,091. 638,212,091. (I) Net profit 68 68 (II) Other misc. income 638,212,091. 638,212,091. Total of (I) and (II) 68 68 (III) Investment or decreasing of capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 by owners 1. Capital inputted by owners 2. Amount of shares paid and accounted as owners’ equity 3. Others 145,002,000. 63,821,209.1 -402,159,209 -193,336,000 (IV) Profit allotment 0.00 0.00 0.00 0.00 00 7 .17 .00 63,821,209.1 -63,821,209. 1. Providing of surplus reserves 7 17 22 Hangzhou Steam Turbine Co., Ltd. Interim Report 2012 Summary 2. Common risk provision 3. Allotment to the owners (or 145,002,000. -338,338,000 -193,336,000 shareholders) 00 .00 .00 4. Others (V) Internal transferring of owners’ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 628,342,000. 138,953,250. 434,426,965. 1,645,525,62 2,847,247,84 IV. Balance at the end of this term 00 09 07 6.62 1.78 Legal representative: Nie Zhonghai CFO: Yan Jianhua Accounting Manager: Wu Guomei (III) Notes to the financial statements 1. Influences of changes in material accounting policies, accounting estimations, or correction of material accounting error (1) Change of accounting policies Is there any change in accounting policies in the report period [] Yes [V] No (2) Change of accounting estimations Is there any change in accounting estimations in the report period [] Yes [V] No (3) Correcting of accounting errors Is there any accounting error with previous period found in the report period [] Yes [V] No 2. Statement on change of consolidation range Four subsidiaries newly included in the consolidated financial statements, and other two eliminated. 3. If the certified public accounts has issued a non-standard auditor’s report, list the relevant notes to the issues involved in the report. Not applicable Hangzhou Steam Turbine Co., Ltd. Chairman of the Board: Mr. Nie Zhonghai August 28, 2012 23