Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2012-40
二零一二年半年度报告
SEMIANNUAL REPORT 2012
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 .
August 28, 2012
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Table of Contents
I. Important Statement ................................................................................................... 3
II. Company Profile ....................................................................................................... 3
III. Financial Highlights ................................................................................................ 4
IV. Changes in Share Capital and Shareholders ............................................................ 6
V. Directors, Supervisors and Senior Executives ........................................................ 10
VI. Board of Directors’ Report.................................................................................... 15
VII. Significant Events ................................................................................................ 23
VIII. Financial Reports................................................................................................ 38
IX. Documents for Reference.................................................................................... 136
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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.
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) Company profiles
Code of A-stock Code of B-stock 200771
ID of A-stock ID of B-stock Hangqilun B
Stock Exchange Shenzhen Stock Exchange
Legal company name Hangzhou Steam Turbine Co., Ltd.
Legal abbreviation 杭汽轮
Legal company name in English HANGZHOU STEAM TURBINE CO.,LTD
Legal aggreviation in English HTC
Legal representative Nie Zhonghai
Reg. Add. No. 357 Shiqiao Rd. Hangzhou
Post Code 310022
Office address No. 357 Shiqiao Rd. Hangzhou
Post Code: 310022
Website http://www.htc.cn
Email.
(II) Contacts and liaisons
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
(III) Information disclosure and inquiring
Press medias of information disclosure Securities Times, Shanghai Securities Daily, Hong Kong Commercial Daily
Website assigned by CSRC to release the online reports http://www.cninfo.com.cn
Place for information inquiry Board Office of the Company
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
III. Financial Highlights
(I) Main accounting data and indices
If retrospective adjustment has been carried out on financial reports of previous periods
[] Yes [V] No [] Not applicable
Primary accounting data
Increase/decrease over
Primary accounting data Report term (Jan-Jun) Same period last year
same 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
337,275,897.42 324,705,800.92 3.87%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 337,432,569.71 327,076,310.57 3.17%
of non-recurring gain/loss(RMB)
Net Cash flow generated by business
153,417,196.36 324,046,092.60 -52.66%
operation (RMB)
Ended this report term Ended previous year Changed by (%)
Gross Assets (RMB) 7,127,518,436.09 6,892,582,376.59 3.41%
Owners’ equity attributable to the
3,464,036,239.43 3,315,262,942.01 4.49%
shareholders of the listed company (yuan)
Capital shares (shares) 754,010,400.00 628,342,000.00 20%
Major accounting indicies
Increase/decrease over
Major accounting indicies Report term (Jan-Jun) Same period last year
same period of last year(%)
Basic earnings per share (Yuan/share) 0.4473 0.4306 3.88%
Diluted earnings per share (Yuan/share) 0.4473 0.4306 3.88%
Basic earnings per share less non-recurring
0.4475 0.4338 3.16%
gain/loss (Yuan/share)
Fully diluted net
income/asset ratio 9.74% 10.83% -1.09%
(%)
Weighted average net
10.23% 10.71% -0.48%
income/asset ratio (%)
Fully diluted net income/asset ratio less
9.74% 10.9% -1.16%
non-recurring gain/loss (%)
Weighted average net
income/asset ratio less non-recurring 10.24% 10.79% -0.55%
gain/loss(%)
Net Cash flow per share generated by
0.2035 0.52 -60.87%
business operation (yuan/share)
Ended this report term Ended previous year Changed by (%)
Net asset per share attributable to the
shareholders of the listed company 4.59 5.28 -6.25%
(Yuan/share)
Liability on asset ratio (%) 46.16% 45.4% 0.76%
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(II) Differences in accounting data under domestic and international accounting standards
1. 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 according to international accounting standard
Under International
337,275,897.42 324,705,800.92 3,464,036,239.43 3,315,262,942.01
Accounting Standard
2. Differences in net profit and net asset under domestic and overseas accounting standards
[] Applicable; [V] Not applicable
(III) Non-recurring items deducted and amounts
[V] Applicable [] Not applicable
Amount
Items Remarks
(Yuan)
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 policy , or in accordance with fixed 5,010,600.00
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
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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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 --
IV. Changes in Share Capital and Shareholders
(I) Movement of Capital Share
1. Statement of Changes in Shares
[V] Applicable [] Not applicable
Before the change Changed Currently (+,-) After the change
Issuing of Transferre
Proportion Bonus Proportion
Amount new d from Others Sub-total Amount
% shares %
shares reserves
399,854,0 79,970,80 79,970,80 479,824,8
I. None negotiable shares 63.64% 0 0 0 63.64%
00 0 0 00
399,854,0 79,970,80 79,970,80 479,824,8
1. Promoter’s shares 63.64% 0 0 0 63.64%
00 0 0 00
Including: State-owned 399,854,0 79,970,80 79,970,80 479,824,8
63.64% 0 0 0 63.64%
shares 00 0 0 00
Domestic legal person
shares
Overseas legal person
shares
Others
2. Legal person shares
placed
3. Employees’ shares
4. Preference shares or
others
II. Negotiable shares
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
2. Change of Restricted Shares
[V] Applicable [] Not applicable
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Name of the Openning balance Released Increased Closing Reason of Date of
shareholder of restricted shares this period this period balance restriction releasing
Hangzhou Steam
479,824,800 Limited on
Turbine Power Group 399,854,000 0 0
issuing
Co., Ltd.
Management
Zhang Shutan 55,770 0 0 66,924
shares
Total 399,909,770 0 0 479,891,724 -- --
(II) Share issuing and listing
1. Share issuing in latest three years
[] Applicable; [V] Not applicable
2. Change of asset and liability structure caused by change of total capital shares and structure
[] Applicable; [V] Not applicable
3. Current employees’ shares
[] Applicable; [V] Not applicable
(III) Shareholders and the substaintial controller of the Company
1. Total of shareholders at the end of report term.
The total number of shareholder accounts was 17,477.
2. The Top Ten Shareholders
[V] Applicable [] Not applicable
Top Ten Shareholders
Share Frozen or pledged
Properties of Non-negotiable
Full name of shareholder proportion Total shares
shareholder shares held Status of shares Amount
%
Hangzhou Steam Turbine Power Group State-owned
63.64% 479,824,800 479,824,800 Restricted 141,960,000
Co., Ltd. legal person
Overseas legal
GAOLING FUND,L.P. 0.53% 3,982,900 0 unrestricted 0
person
Overseas
Li Minggong 0.5% 3,783,130 0 unrestricted 0
natural person
Overseas legal
NORGES BANK 0.41% 3,094,954 0 unrestricted 0
person
Shanghai Hong Kong Wanguo Overseas legal
0.37% 2,778,454 0 unrestricted 0
Securities person
TOYO SECURITIES ASIA Overseas legal
0.35% 2,675,751 0 unrestricted
LIMITED-A/C CLIENT. person
SCHRODER INTL SELECTION Overseas legal
0.35% 2,601,429 0 unrestricted 0
FD-GREATER CN FD GTI 25287 person
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
BOCHK INVESTMENT
Overseas legal
FUNDS-BOCHK CHINA GOLDEN 0.31% 2,301,344 0 unrestricted 0
person
DRAGON FUND
Overseas legal
AUSTRALIANSUPER PTY LTD 0.28% 2,108,321 0 unrestricted 0
person
Overseas
Fu Shuying 0.23% 1,762,910 0 unrestricted 0
natural person
Situations of the shareholders
Top Ten Shareholders of Negotiable Shares
[V] Applicable [] Not applicable
Negotiable shares held Categories and amounts of shares
Name of the shareholder at the end of report
term 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
Statement of relationships and (or) action-in-concert among above shareholders:
(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 according to the Administrative Regulations of
Information Disclosing of Public 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.
Strategic or common legal person become one of the top 10 shareholders due to rights issue.
[] Applicable; [V] Not applicable
3. Profile of the controlling shareholder
(1) Changing of controlling shareholder and practical controller of the Company
[] Applicable; [V] Not applicable
(2) Particulars about the holding shareholder and substaintial controller
Is there any new substaintial controller[]
[] Yes [V] No [] Not applicable
Hangzhou State-owned Asset Administration and Regulatory
Name of the substaintial controller
Commission
Category of the controller Local state-owned asset commission
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Particulars
[Holding shareholder] Hangzhou Steam Turbine Group Co., Ltd.
[Legal representative] Nie Zhonghai
[Registered capital] RMB500 million
[Date of incorporation] December 14, 1992
[Registered address] 357 Shiqiao Road, Xiacheng District, Hangzhou
[Business nature] Sole state-owned company authorized by Hangzhou Municipal Government
[Business license] 330100000031779
[Organization code] 14307184-2
[Business scope] Manufacturing and processing: textile machinery, paper-making machinery, pump, casting products, electrical tools,
gear box, thermal transmitter, digital controlling device, and spare parts of the above (limited to the subsidiaries); Contracting of
domestic and overseas machinery engineering projects, export of above equipments and materials, provide labor services for above
overseas projects. Thermal power plant project and equipment engineering; wholesale and retail: products and spare parts
manufactured by members of the group, and technical research, consulting, and service of above products; Provide materials,
equipments, and spare parts to members of the Group, water and power supply (other than installation and maintaining of power
supply equipment); Including the business scope of subsidiaries.
(3) Chart of controlling relationships
Hangzhou State-owned Assets
Supervisory & Administrative Committee
100%
Hangzhou Steam Turbine Power Group Co., Ltd.
63.64%
Hangzhou Steam Turbine Co., Ltd.
(4) Controlling over the Company by the substaintial controller through trust or other asset management
[] Applicable; [V] Not applicable
4. Other legal person shareholders with over 10% of total shares
[] Applicable; [V] Not applicable
(IV) Convertible bonds
[] Applicable; [V] Not applicable
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
V. Directors, Supervisors and Senior Executives
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(I) Change of shareholding by directors, supervisors, and executives
Shares Share options
Shares holding Shares Shares Incl. Amount Cause Take remuneration
Job Job held at the held at the
Name Position Gender Age at the beginning increased this decreased this of shares under of from shareholding
started ended end of end of term
of term (shares) term (shares) term (shares) restriction change or related parties
term (shares)
Nie Jun 2, June 1, 0 0 0 0 0 0
Chairman M 54 None No
Zhonghai 2010 2013
Wang Jun 2, June 1, 0 0 0 0 0 0
Director M 59 None No
Hongkang 2010 2013
Jun 2, June 1, 0 0 0 0 0 0
Zhen Bin Director M 47 None No
2010 2013
Jun 2, June 1, 0 0 0 0 0 0
Yan Jianhua Director, GM M 53 None No
2010 2013
Director, Vice Jun 2, June 1, 0 0 0 0 0 0
Ye Zhong M 43 None No
GM 2010 2013
Liu Jun 2, June 1, 0 0 0 0 0 0
Director M 54 None No
Guoqiang 2010 2013
Independent Jun 2, June 1, 0 0 0 0 0 0
Xu Yongbin M 49 None No
Director 2010 2013
Zhang Independent Jun 2, June 1, 0 0 0 0 0 0
M 53 None No
Hejie Director 2010 2013
Independent Jun 2, June 1, 0 0 0 0 0 0
Lv Fan M 55 None No
Director 2010 2013
Tan Independent Sept. 1, June 1, 0 0 0 0 0 0
M 57 None No
Jianrong Director 2010 2013
Chu Jun 2, June 1, 0 0 0 0 0 0
Supervisor M 59 None No
Shuilong 2010 2013
Pu Jun 2, June 1, 0 0 0 0 0 0
Supervisor F 36 None Yes
Yangshuo 2010 2013
Zhang Jun 2, June 1, 0 0 0 0 0 0
Supervisor M 54 None No
Yougen 2010 2013
Lu Jianhua Employee M 50 Apr. 0 0 0 0 0 0 None No
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Supervisor 23,
2009
Employee Feb 16, 0 0 0 0 0 0
Fang Yin M 49 None No
Supervisor 2012
Ye Vice General Jun 2, June 1, 0 0 0 0 0 0
M 57 None No
Yongzhong Manager 2010 2013
Zhang Vice General Jun 2, June 1, 0 Bonus
M 52 74,360 14,872 0 89,232 66,924 No
Shutan Manager 2010 2013 shares
Yu Vice General Jun 2, June 1, 0 0 0 0 0
M 54 None No
Changquan Manager 2010 2013
Total -- -- -- -- -- -- --
Motivational bonus shares granted to the directors, supervisors, and managements in the report term:
[] Applicable; [V] Not applicable
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(II) Situation of jobs
Jobs taken in shareholding parties
[V] Applicable [] Not applicable
Job Job Take remunerations from the
Names Name of the shareholder Job taken
started ended shareholding party
Hangzhou Steam Turbine Power
Nie Zhonghai Chairman No
Group Co., Ltd.
Hangzhou Steam Turbine Power Vice Chairman,
Wang Hongkang No
Group Co., Ltd. GM
Hangzhou Steam Turbine Power Vice General
Zhen Bin No
Group Co., Ltd. Manager
Hangzhou Steam Turbine Power
Yan Jianhua Director No
Group Co., Ltd.
Hangzhou Steam Turbine Power
Ye Zhong Director No
Group Co., Ltd.
Hangzhou Steam Turbine Power Director, Vice
Chu Shuilong No
Group Co., Ltd. GM
Hangzhou Steam Turbine Power Vice chief
Pu Yangshuo Yes
Group Co., Ltd. accountant
Particulars about
jobs taken
Jobs taken in other parties
[V] Applicable [] Not applicable
Job Job Take remunerations
Names Name of the parties Positions
started ended from the party
Hangzhou Industrial Asset Operation & Investment No
Nie Zhonghai General Manager
Group Co., Ltd.
Hangzhou Steam Turbine Engineering Co., Ltd. Legal representative No
Hangzhou Relian International Trading Co. Director No
Hangzhou Hangfa Junyue Investment Co., Ltd. Legal representative No
Hangzhou Steam Turbine Technologies Co., Ltd. Director No
Guangdong Huaxing Bank Co., Ltd. Director No
Bank of Hangzhou Co., Ltd. Director No
Hangzhou Xiangjiang Technology Co., Ltd. Legal representative No
Wang Hongkang Hangzhou Steam Turbine Technologies Co., Ltd. Legal representative No
Lianyungang Steam Turbine Xiangyi Property Co., No
Legal representative
Ltd.
Hangzhou Dongfeng Shipyard Co., Ltd. Director No
Hangzhou Relian International Trading Co. Legal representative No
Hangzhou Nanfangtongda Gears Co., Ltd. Director No
Hangzhou Xiangjiang Technology Co., Ltd. Director No
Zhen Bin Hangzhou Dongfeng Shipyard Co., Ltd. Legal representative No
Hangzhou Steam Turbine Engineering Co., Ltd. Director No
Zhejiang Steam Turbine Packaged Technology Legal representative, No
Yan Jianhua
Development Co., Ltd. chariman
Hangzhou Steam Turbine Machinery & Equipment No
Legal representative
Co., Ltd.
Hangzhou Steam Turbine Auxiliary Machine Co., No
Director
Ltd.
Hangzhou Zhongneng Steam Turbine Power Co., No
Director
Ltd.
Hangzhou Steam Turbine Casting Co., Ltd. Director No
Hangzhou Steam Turbine Technologies Co., Ltd. Director No
Zhejiang Turbine Import & Export Co., Ltd. Chairman No
Zhejiang Huayuan Steam Turbine Machinery Co., Legal representative, No
Ltd. chariman
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Hangzhou Steam Turbine Engineering Co., Ltd. Director No
Liu Guoqiang Hangzhou Steam Turbine Casting Co., Ltd. Director No
Hangzhou Zhongneng Steam Turbine Power Co., No
Chief Supervisor
Ltd.
Zhejiang Turbine Import & Export Co., Ltd. Supervisor No
Hangzhou Zhongneng Steam Turbine Power Co., No
Ye Zhong Chairman
Ltd.
Zhongjiyuan-HSTG (Hangzhou) United Institution No
Chairman
Ltd.
Economic & Management School of Zhejiang Yes
Zhang Hejie Professor
Industrial University
International Financial Risk Institution of No
Management School of Zhejiang University of Head
Industry
Zhejiang Government Taiwan Affair Office Consultant No
Finance & Accounting School of Zhejiang Dean, professor, Yes
Xu Yongbin
University of Industry and Commerce doctorial tutor
Zhejiang Feida Environment Protection No
Independent Director
Technologies Co., Ltd.
Zhejiang Fuchunjiang Water and Power Supply No
Independent Director
Equipment Co., Ltd.
Zhejiang Yongtai Technologies Co., Ltd. Independent Director No
Bank of Hangzhou Co., Ltd. Independent Director No
Lv Fan Zhejiang Zhelu Investment Co., Ltd. Chairman Yes
Professor, doctorial Yes
Tan Jianrong Zhejiang University
tutor
Hangzhou Hangyang Holdings Co., Ltd. Independent Director No
Pu Yangshuo Hangzhou Relian International Trading Co. Director No
Zhejiang Steam Turbine Packaged Technology No
Zhang Yougen Supervisor
Development Co., Ltd.
Hangzhou Zhongneng Steam Turbine Power Co., No
Ye Yongzhong Director
Ltd.
Zhang Shutan Greensol Power Equipment Co., Ltd. (India) Director No
Zhejiang Turbine Import & Export Co., Ltd. Director, GM No
Hangzhou Steam Turbine Auxiliary Machine Co., No
Yu Changquan Legal representative
Ltd.
Particulars about
job taken
(III) Annual Remunerations of the Directors, Supervisors and Senior Executives
Decision making
procedures for
Remunerations for directors and supervisors are examined by the shareholders’ meeting, and that of for
remunerations of the
executives are examined by the Board.
Directors, Supervisors and
Senior Executives
Basis for remunerations of
the Directors, Supervisors Assessment and Remuneration Criteria of the 5th term of Executives (revised)
and Senior Executives
According to the “Remuneration and Assessment Scheme for the 5th term of Directors and Senior
Executives”, the Remuneration & Assessment Committee is responsible to assess the performances of
Actual payment to
the directors and senior executives according to stipulated procedures. Directors and senior executives
directors, supervisors and
are scored and assessed one after another and comes out with a plan subject to approval of the Board
executives
and the Shareholders’ Meeting. Basic wages are distributed on monthly basis and the overall
remunerations are paid upon completion of the annual assessment.
(IV) Alternation of Directors, Supervisors, and Senior Executives
Date of
Name Jobs taken Changed Cause of change
change
Bai Director, Vice General No longer take the positions of Jan 09, Retired legally
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Ronghua Manager, Chief director, vice GM, and chief 2012
Accountant accountant
Assume the position of chief accountant
Yan Jan 10,
Director, GM Director, GM, Chief accountant temporarily for the retirement of orginal chief
Jianhua 2012
accountant
No longer take the position of Feb 15,
Zhao Ying Employee Supervisor Retired legally
supervisor 2012
Newly elected employees’ Feb 16, The original employees’ supervisor retired,
Fang Yin Employee Supervisor
supervisor 2012 and elected by the employees’ congress.
(V) The Employees
Number of employees in position 3,773
Retired employees on the Company’s expense 0
Composition of professions
Categories of professions Number of persons
Production 2,285
Sales & Marketing 262
Technicians 671
Finance & Accounting 50
Executive 505
Education background
Categories of education Number of persons
High school or below 2,184
College diploma 581
Bachelor 879
Master’s Degree 124
Doctorial degree 4
Post-doctorial 1
Particulars about the employees
In the first half of 2012, there were 42 retired staffs to which the Company give certain amounts of allowances but no pension.
Their pensions are covered by the social security program of Hangzhou Government.
VI. Board of Directors’ Report
(I) Business Analysis
1. Business overview
In the first half of 2012, along with the further deteriorating of Europe Debt Crisis, the global economic situation
is unstable. The growth of Chinese economy is obviously slowing down, but still in a quick speed. Economic
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
structure adjustment and reformation were further deepened. In the 12th five-year-plan period, the Company has
been facing the change of macro economy and market, reinforcing technical innovation and refining the internal
administration. In the report period, the Company has been in a steady business situation by realizing
RMB2,138,163,723.76 of turnover, a 2.94% of increase; RMB442,872,880.10 of total profit, a 6.04% of decrease;
and RMB337,275,897.42 of net profit attributable to the shareholders of the Company, a 3.87% of increase
comparing with the same period of last year.
In the report period, the production and sales were in a steady situation. As of the end of report period, the
Company had received new orders totalled to RMB1.615 billion, or 17.2% of increase over the same period of last
year, including 144 units of steam turbines and gas turbines, a 5.9% of decrease. The headquarter has realized the
industrial output of RMB1.541 billion, which was a 17.69% of decrease.
The Company’s has achieved continuous expanding of market in the report period. Firstly, the industrial driving
turbine product has been reinforcing its advantages in the high end markets such as petrol mining, chemistry, and
coal chemistry, and is reflecting a trend toward large scale. Secondly in the area of thermal power plant, the back
pressure unit has been expanding in its market influency and reputation. The Company has successfully get itself
into the petrolum projects of Sino Petrolum, which is representing a large capacity residue thermal power plant.
Thridly, expanding of industrial chain has been achieved. New orders for combustion turbines and compressors
were received. The Company conducted conferences and invited metalurgy customers and attracted wild attention
in the whole industry. Fourthly, oversease orders have been increasing comparing with the same period of last
year. In the report period, the Company has enhanced the developing of new markets to face the declining global
market. The Company had its products entered the new economies in such as Central America and Africa. As a
simbol of entering the high-end market, the steam turbine unit of the Company has entered the petrolum field of
Iran.
The Company achieved great achievement in technical innovation Through three years of effort, the
100MW grade industrial steam turbine has passed the technical examination. This made the Company one of the
few enterprises in the world which are capable to produce industrial steam turbine up to 150MW. This will keep
the Company at the leading place in the country. Upon application of the new modules, the Company will be able
to provide over 600 models of reverse industrial steam turbine, and formed a new technical system covering the
range under 150MW. The million grade ethylene drive turbine has passed provincial grade examination.
According to the development strategy, the Company undertaken foundamental research on gass turbine and
compressors and resolved a number of key technologies step by step. The remote monitoring system is under
development. In the 1st half of the year, the Company filed for one invention patent, four apply tech patents, four
software patents, and was granted certificate of patent for the one invention and four software patents.
Kept improving the internal management in the period The Company has adopted performance management
scheme to further improve the exercise of the overall strategy. The practise of “Module design and parallel
production” program was awarded “Quality Model” by the Department of Industry and Information Technology.
Special trainning programs and introspective examinations were carried out according to the requirement of the
standard for PLCs. Along with the significant change of the market, the Company has been adjusting and
balancing the productivity, and enhancing account and inventory controlling. Basic business operations have been
conducted with consideration of international standards. EIL certification of India and the Sub-contract
Certification of Saudi Arabia were obtained in the 1st half of year. The Company has been paying greater
attention on social responsibilites and special management system has been established. Energy saving approach
has successfully reduced energy consouming, and was awarded “The 10 Best Environmental Friendly
Enterprises” by the local government.
16
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
2. Change in asset structure and gain/loss account:
（1） Irregular situation and statements on major items of financial statements
In RMB Yuan
Balance Sheet Beginning of Scale of
End of term Remarks on the change
Items term change
Non-current asset Purchasing of financial products
160,000,000.00 20,000,000.00 700.00
due in 1 year
Increase of expenses to be amortized
Other current
4,009,257.70 5,661,299.59 -29.18 including house rental and power supply,
asset
etc.
Notes payable 103,180,000.00 139,807,194.00 -26.20 Paying of bank acceptance notes
Disbursing of payment for purchased goods
Account payable 791,002,328.03 590,763,406.24 33.89
according to the contract
Tax payable 46,552,337.47 90,706,239.00 -48.68 Tax paid according to regulations
Interest payable 31,740.00 260,577.78 -87.82 Interest due paid
Dividend payable 9,000,000.00 100.00 Dividend payable to HSTG
Long-term Decrease of financed lease by Zhongcheng
27,774,194.55 44,818,324.41 -38.03
payable Shangtong
Other Receiving of asset-related government
non-recurring 24,186,374.66 17,310,045.00 39.72 susidies by Zhongneng Co. and the
liabilities Company.
Income Same period of Scale of
Current term Remarks on the change
Statement Items last term change
Business tax and Tax caculated according to Taxation Law
19,006,186.62 15,187,879.40 25.14
surcharge
Financial Increasing of interest paid for loans
15,625,642.92 12,043,223.86 29.75
expenses
Asset impairment Enhancing of receivable account retrieving
3,740,340.85 41,493,544.10 -90.99
loss
Non-operational Favorable policies applied on subsidiary
7,991,933.68 1,468,373.60 444.27
income
Minor Significant decrease of minority
shareholders ’ 36,550,132.60 75,156,416.59 -51.37 shareholders’ equity from the same period
equity of last year
17
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(2) Major changes in cash flow statement
In RMB 10 thousand
Net cash flow of
Net cash flow in similar Change in cash and
Items the 1st half of
activities equivalents %
2012
Sub-total of cash inflow from business
193,116.25 1258.77
activities
Sub-total of cash outflow from
177,774.53 1158.77
business activities
Cash flow generated by business
15,341.72 100% -78.96%
operation, net
Sub-total of cash inflow due to
46,533.48 -351.25
investment activities
Sub-total of cash outflow due to
59,781.37 -451.25
investment activities
Net cash flow generated by investment -13,247.89 100% 68.19%
Subtotal of cash inflow from financing
39,154.40 -64.54
activities
Subtotal of cash outflow due to
-60,666.35 282.01
financing activities
Net cash flow generated by financing -21,511.95 100% 110.72%
Influence of exchange rate on cash
-10.19 100% 0.05%
flow
Change in cash and cash equivalents -19,428.31 100% 100%
3. Operation and performance analysis of main subsidiaries and affiliated companies
In RMB 10 thousand
The 1st half of 2012
Name of Business Registere Incorporat Share
companies property d capital ed in ratio % Total
Turnover Net profit
profit
Technological
Zhejiang Steam
development of
Turbine Packaged
automatic
Technology 5100 2001.1 51.84 142,585.14 914.66 685.99
control and
Development Co.,
instrument
Ltd.
control
Hangzhou Designing and
Zhongneng Steam manufacturing
9250 2004.2 51.6 47,799.97 3,078.16 2,391.04
Turbine Power Co., of steam
Ltd. turbines
18
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Hangzhou Steam
Iron and steel
Turbine Casting 2200 2004.3 51 14,388.05 37.74 -104.89
casting
Co., Ltd.
Hangzhou Steam Producing and
Turbine Machinery processing of
3000 2004.4 52 10,456.21 4,192.87 3,495.71
& Equipment Co., steam turbine
Ltd. parts
Manufacturing
Hangzhou Steam of steam
Turbine Auxiliary turbine 8000 2004.1 76.5 23,085.65 4,233.69 3,602.36
Machine Co., Ltd. auxiliary
machines
Zhejiang Turbine
International
Import & Export 2000 2009.1 100 28,075.28 899.80 674.80
trade
Co., Ltd.
4. All risky factors which may restrict the Company’s ability of achieving its strategic goals and business
performance in the future
(1) Market competition
The infrastructure investment has been declining due to slowing down of economic growth. The machinery
and equipment market was constrained from developing and competition became more severe. An over-supplying
situation has formed in recent years, and the price level was reducing. The Company has been doing all efforts to
keep its advantages through technical innovation, quality lifting and customized production. On the other hand,
cost-reducing approach has been effectively increasing the performance-price ratio.
(2) Contract risks
For the products of the Company are featured longer period and complexed technical chains, it happens that
the project progresses were delayed or suspended. These will surely bring certain uncertainty in business
performance. The Company will keep tracking the progress and enhance market research, to increase control over
the practise of contract.
19
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
1. Main business and operation
(1) Statement of main businesse segments on industries and products
In RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
of operation cost of gross profit
On industry or Gross profit ratio of turnover over
Turnover Operation cost over the same ratio over the
product % the same period
period of last year same period of
of last year (%)
(%) last year (%)
On Industries
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
On Products
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%
20
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(2) Business segments on territories
In RMB Yuan
Regions Turnover Change of turnover YoY (%)
Domestic 1,866,613,768.57 4.02%
Overseas 265,518,331.21 -2.82%
(3) Major change in the primary business or its structure
[] applicable [V] not applicable
(4) Statement on major change in primary business profitability (gross profit ratio)
[] applicable [V] not applicable
(5) Analyze of major change in profit composition
[] applicable [V] not applicable
(6) Business nature, main products or services, and net profit position of affiliates in which the Company is
holding 10% or over of share capital
[] applicable [V] not applicable
2. Internal controlling system related to accounting of fair value
[] applicable [V] not applicable
3. Holding of financial assets and liabilities in foreign currency
[] applicable [V] not applicable
(II) Company investment
1. Overall application of finance raised
□applicable √ not applicable
2. Situations of projects to be financed by the proceeds
□applicable √ not applicable
21
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
3. Altering of projects financed by proceeds
□applicable √ not applicable
4. Major projects invested by non-financing capital
□applicable √ not applicable
(III) Revising of business plan of the second half of year by the Board
[] applicable [V] not applicable
(IV) Prediction of business performance for Jan-Sept 2012
[] applicable [V] not applicable
(V) Statement of the Board on the “non-standard auditors’ report” issued by the CPA on the
current report period
[] applicable [V] not applicable
(VI) Statement of the Board on the Change and the Treatment Result of the Issues Involved in
the Non-standard Opinion Presented by the Certified Public Accountants in the Previous
Year
[] applicable [V] not applicable
(VII) Results of disccusion by the Board on the causation and impact of change in accounting
policies and estimations or correction of material accounting errors
[] applicable [V] not applicable
(VIII) Making and implementation of cash dividend policies
Cash dividend policies:
1. Profit after tax will be rationed among the shareholders upon their shareholding portion after making up of
previous losses and providing of common reserves.
2. The Company adopts a continuous and stable dividend policy. The dividend accumulated in latest three
years shall not be lower than 30% of the distributable profit in the same three years.
3. The Company distribute dividends once a year except for otherwise decided by the shareholders’ meetings.
Dividends are distributed upon finanal settlement of each year. The dividend plan shall be announced within 4
months upon completion of each fiscal year, and implemented in the 2nd quarter of the current year.
Execution:
1. Execution of dividend plan of 2011: as audited by Pan-China (Zhejiang) Certified Public Accountants, the
Company realized RMB640,387,703.33 of net profit attributable to the shareholders of the parent company, after
22
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
providing RMB63,821,209.17 of surplus reserves, plusing RMB1,855,918,732.56 of retained profit at beginning
of year, deducting of RMB193,336,000.00 of profit already distributed, and RMB145,002,000.00 of common
share dividend transferred to capital shares, the actual distributable profit was RMB2,094,147,226.72. The profit
distribution plan for year 2011 was: Upon the total capital shares of 628,342,000 at end of 2011, 2 bonus shares
(tax included) and RMB3.00 (tax included) of cash dividend was proposed to be distributed to each 10 shares. The
retained profit will be carried over to proceeding years. The plan was implemented on June 28, 2012.
2. Dividends in latest three years.
In RMB Yuan
Percentage in net profit
Net profit attributable to the
Dividend Cash dividend (tax attributable to owners of the Distributable profit
owners of the PLC in the
year included) PLC in the consolidated of the year
consolidated statement
statement
2011 188,502,600.00 640,387,703.33 29.44% 2,094,147,226.72
2010 193,336,000.00 680,184,677.22 28.42% 1,855,918,732.56
2009 148,720,000.00 583,517,590.81 25.49% 1,497,423,473.50
Dividend accumulated in the latest three years over the average
83.59%
annual net profit (%)
(IX) Profit distribution or capitalizing of common reserves
[] applicable [V] not applicable
(X) Situation of positive retained profit at end of 2011 but no cash dividend was proposed
[] applicable [V] not applicable
(XI) Other issues to be disclosed
[] applicable [V] not applicable
(XII) Change in liability and credit situation, and cash arrangement for repaying of debts
(This form is only for PLCs which issued convertible bonds.)
[] applicable [V] not applicable
VII. Significant Events
(I) Company administration
1. In the report period，the Company constantly improved its corporate administration structure,
strengthened standardized operation and information disclosure and seriously and properly manage the
relationship with investors strictly according to the Company Law, the Securities Law, Administration Standards
23
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
of Listed Companies, Basic Standards of Enterprise Internal Control, Shenzhen Stock Exchange PLC Internal
Control Instruction, and Shenzhen Stock Exchange Share Listing Rules.
2. Organization structure and operation
The Company has established and improved the internal controlling system composed by departments
covering all fields of management. The internal controlling structure was fitting will to the practical situation of
the Company. An effective operation pattern has been developed with clear responsibilities and function without
any connection with that of the shareholders’.
The legal person administration system formed by the Shareholders’ Meeting, the Board of Directors, the
Supervisory Committee, and the Executives has been operating normally. The decision-making, executing, and
inspecting organizations were established according to the Company Law and the Articles of Association of the
Company. All shareholders’ meetings, board meetings, and meetings of the Supervisory Committee were held
complying with the Shareholders’ Meeting Criteria, Board Meeting Criteria, and Supervisory Committee Meeting
Criteria. All of the decision-making processes involving major investment, financing, and providing of external
guarantees were following with the Articles of Association and regulations. The Supervisory Committee was
functioning well in supervising the business operation. Professional Committees in the Board of Directors were
working well and formed records on decision-making processes. Directors and supervisors assigned by the
Company to the subsidiaries were also working well in decision-making and supervisory jobs. Thus all of the 揟
hree Meetings[]were working well.
(1) The Shareholders’ Meeting. The shareholders’ meeting is the highest decision-making body of the
Company with the power entitled by the Company Law. The Shareholders’ Meeting Criteria has stipulated the
procedures for calling, holding, noticing, voting, and resolution making to make sure the meetings are held
legally.
(2) The Board of Directors: The Board of Directors is the executive body of the decisions made by the
Shareholders’ Meeting. The Board is also responsible to establish and improve the internal control system of the
Company, and make it works effectively. Chairman of the Board is the caller of the Board. All of the procedures
of calling, voting, and making of resolutions are according to the regulations. Related directors have waived the
voting of related proposals. As of the report term, there were 11 directors including 4 independent directors in the
Board. All of the independent directors have been fulfilling their responsibilities in providing professional
opinions or suggestions, supervising the business operation and information disclosure of the Company in view of
protecting the benefits of the mid-small shareholders of the Company.
Strategy, Investment, Remuneration, and Auditing Committees were established within the Board, and were
supporting the decision-making of the Board. The Detailed Rules of Professional Committees of the Board has set
out the responsibilities, qualifications, meeting rules and working procedures of the Committees. Among them,
the Auditing Committee is responsible for inspecting on the configuration and operating of the internal controlling
system, and coordinating the internal auditing works. The Auditing Committee is led by an independent director
specialized in accounting profession. Establishing and operating of the professional committees were complying
with the Administrative Rules of PLCs and Shenzhen Stock Exchange Standardized Operation Instruction.
(3) The Supervisory Committee: As the supervisory body of the Company, the Supervisory Committee has
been monitoring the financial operation of the Company, and legal operation of the directors and executives. The
procedures of calling, voting, and making of resolutions of the meetings were complying with related regulations.
It also monitors the establishing of the Board and operating of internal control system.
3. Special administrative improvement operation
According to the requirement of Zhejiang Securities Regulatory Office, the Company has performed special
administrative improvement operation. In viewing of further upgrade administration and consolidate the results of
24
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
operations in previous years, the Company has been pushing forward the improving operations in the report
period.
The Auditing Committee was setup in the Board. The Auditing Committee Working Criteria was produced.
The Committee composes of 5 auditing commissioner and 7 members. 3 of them are independent directors, which
is over half of the total. The Committee was led by an independent director.
An internal auditing office was established within the Company which reports to the Board of Directors and
takes orders from the Auditing Committee. All of the three staffs of the office are qualified for auditing job. The
internal auditing office has well fulfilled its responsibilities in 2011 strictly following the auditing plan illustrated
previously.
In the report term, the Company reinforced administration over holding subsidiaries, organized training
programs for the executives of the subsidiaries. Administration manuals were produced for subsidiaries and
branch companies. Administration operations were strictly complying with the regulations of China Securities
Regulatory Commission and Shenzhen Stock Exchange. External investments, guarantees, and related
transactions were further regulated to prevent risks.
Through improvement operations, the Company has eliminated the defects and shortages in the
administrative practice. Rules and regulations have been established and formed a mature and upgraded
management structure. The Company will keep following with the requirements of the Company Law, and
Securities Law, as well as the regulations of China Securities Regulatory Commission, further improve the
administration system, to accelerate the healthy development of the Company.
The actual situation of company administration was complying with the requirements of CSRC in the report
term, and no notice about rectifying of administration measures is received from the supervisory authorities.
(II) Dividend plans, reserve capitalizing plans, or share issuing plans proposed in previous
period and implemented in the current period
[V] Applicable [] Not applicable
Dividend plan 2011 was: upon the capital shares of 628,342,000 at end of 2011, 2 bonus shares and
RMB3.00 were distributed to each 10 shares (tax included). The retained profit was carried over to future years.
The final trading day of B shares was June 25, 2012, where the ex-dividend date was June 26, 2012. B share
registration date was June 28, 2012, and the bonus shares may be traded since June 25, 2012.
1. Registration for the bonus shares: the bonus B-shares were registered to the shareholders’ account on
June 28, 2012. Bonus shares for state-owned shares were registered to the account on June 26, 2012.
For the part of bonus shares shorter than one share generated by calculation, one share will be distributed
according to the number after the decimal point at descending order until the total number of bonus shares meets
with the scheduled amount.
2. For B-share holders, the dividend was transmitted into their account through their depository dealers or
banks on June 28 2012, and the bonus shares were transmitted into the shareholders’ account directly on June 28
2012. In case of B-share holders changed their depository agents right on June 28 2012, the dividend and bonus
shares were delivered by the original agents. Cash dividend for executives’ shares and state-owned shares were
delivered by the Company.
(III) Material lawsuits
□applicable √ not applicable
25
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
In the report period, the Company had no material lawsuits or arbitrations.
(IV) Bankrupcy or capital reorganizing
□applicable √ not applicable
(V) Holding other PLC’s shares or participating of financial entities
1. Securities investment
□applicable √ not applicable
2. Holding of other PLC’s shares
□applicable √ not applicable
3. Shareholding in non-listed financial entities
√ applicable □ not applicable
Change of
Original Share portion Book value at Gain/loss in owners’
Name of the Amount held Accounting Source of
investment in the end of period report period equity in the
enterprises (shares) subject shares
cost (RMB) investee % (RMB) (RMB) report period
(RMB)
Bank of Long-term
390,954,040. 390,954,040. 23,118,640.0
Hangzhou 115,593,200 6.92% 0.00 share equity Own capital
00 00 0
Co., Ltd. investment
390,954,040. 390,954,040. 23,118,640.0
Total 115,593,200 -- 0.00 -- --
00 00 0
4. Trading of other PLC’s shares
□applicable √ not applicable
(VI) Asset trade
26
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
1. Acquisition of assets
□applicable √ not applicable
2. Disposal of assets
Net profit contributed to the Percentage of the
The other Gain/loss from Related Completely Debt & credit Relationship
Date of Price PLC since the beginning of Pricing profit contributed by
party of Asset traded disposal transaction transferred or transferred or with the other
disposal RMB0’000 the current period to the policies the asset in the total
trade RMB0’000 or not not not party
date of disposal RMB0’000 profit of PLC
70% share capital of
Hangzhou Energy Mar 31 Price on
Ye Zhonglei 0 -52.42 0 No Yes Yes 0%
Saving Tech Institute 2012 agreement
Ltd.
51% share capital of
Li Mar 31 Price on
Dushan Zhongcheng 510.69 -56.15 0.69 No Yes Yes 0%
Jiancheng 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 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. Asset exchange
[] Applicable [V] Not applicable
27
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
4. Merger of entities
□applicable √ not applicable
5. Since releasing of capital reconstruction report or asset acquisition or disposal report, their progress and
influences on the business performance and financial positions.
□applicable √ not applicable
(VII) Statement on share increasing proposal raised by the holding shareholder or its
action-in-concert parties in the report period
□applicable √ not applicable
(VIII) Implementation and influences of share equity incentive program
□applicable √ not applicable
(IX) Material related transactions
28
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
1. Related transactions related to daily operation
√ applicable □ not applicable
Reason of
Principle of major
Subjects of the Amount of Percentage in Influence on
pricing the Price of trade Way of Market price difference
Related parties Relationship Type of trade related trade similar trades the Company’s
related RMB0’000 payment RMB0’000 between trade
transactions RMB0’000 % profit
transactions price and
market price
Hangzhou
Steam Turbine
Affiliate of the freight, Price on
Automobile Accept labor 1,336.5 1,336.5 0.83%
Group repairing fee agreement
Sales Service
Co., Ltd.
Hangzhou
Affiliate of the Price on
Steam Turbine Purchasing Raw materials 67.93 67.93 0.04%
Group agreement
Industrial Co.
Hangzhou
Hangfa Power
Affiliate of the Price on
Generating Purchasing Generators 9,014.15 9,014.15 5.59%
Group agreement
Equipment Co.,
Ltd.
Hangzhou
Nanhua
Affiliate of the Packaging Price on
Wooden Purchasing 873.54 873.54 0.54%
Group materials agreement
Packaging Co.,
Ltd.
Hangzhou
Affiliate of the Price on
Nanfangtongda Purchasing Gear boxes 1,062.59 1,062.59 0.66%
Group agreement
Gears Co., Ltd.
HSTG Technical
Affiliate of the Technical Price on
Technology development 1.47 1.47 0%
Group service agreement
Association fee
HSTG Technical
Affiliate of the Technical Price on
Technology development 48.06 48.06 0.03%
Group service agreement
Association fee
Hangzhou
Affiliate of the Disposal of Small amount Price on
Steam Turbine 0.08 0.08
Group material materials agreement
Automobile
29
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Sales Service
Co., Ltd.
HSTG
Affiliate of the Providing of Industry Price on
Technology 1.07 1.07
Group labor service cooperation agreement
Association
Hangzhou
Steam Turbine
Affiliate of the Providing of Industry Price on
Power 3.85 3.85 0.002%
Group labor service cooperation agreement
Technologies
Co., Ltd.
Total -- -- 12,409.24 7.692 -- -- -- --
Details about major returning of goods
Necessity, consistancy, and reason of chosing the related party
(but not other parties in the market)
Influence of the related transaction on the independency of the
Company
Dependency of the Company on the related party, and
measurements if any
Actual performance of the related transactions in the report period
comparing with the prediction made previously
Statement on the related transaction
Operation-related related transactions
Sales of products or labor service to the related parties Purchasing of products or labor services from the related parties
Related parties
Amount of trade RMB0’000 Percentage in similar trades % Amount of trade RMB0’000 Percentage in similar trades %
Hangzhou Steam Turbine Automobile Sales
0.08 1,336.5 0.83%
Service Co., Ltd.
Hangzhou Steam Turbine Industrial Co. 54.81 0.03%
Hangzhou Hangfa Power Generating
9,014.15 5.59%
Equipment Co., Ltd.
Hangzhou Nanhua Wooden Packaging Co.,
873.54 0.54%
Ltd.
Hangzhou Nanfangtongda Gears Co., Ltd. 1,062.59 0.66%
HSTG Technology Association 1.07 1.47 0%
HSTG Technology Association 3.85 0.002% 48.06 0.03%
Total 5 0.002% 12,391.12 7.68%
Including: Sales of good or services to the holding shareholder and its subsidiaries was amounted to RMB000 in the report period.
30
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
2. Related transactions related to asset purchasing or disposal
□applicable √ not applicable
3. Material related transactions related to collaborated external investment
□applicable √ not applicable
4. Debtors and credits with related parties
√ applicable □ not applicable
Non-operational transaction of credits and debts with related parties
[] Yes [V] No
Providing capital to the Company by related parties (x 10
Providing capital to related parties (x 10 thousand RMB)
thousand RMB)
Related parties Relationship
Openning Amount Amount Closing Interest Interest Openning Amount Amount Closing Interest Interest
balance occurred returned balance income expense balance occurred returned balance income expense
Non-operational
Sub-total
Operational
Controlling 3,267.3
Hangzhou Steam Turbine Group 198.15 95.5 36 257.65 2,671.96 1,298.73 703.33
shareholder 6
HSTG Nanfang Sales Co. Affiliate of the Group 2 2
Hangzhou Hangfa Power Generating 5,881.4
Affiliate of the Group 160.41 68.18 6.85 221.74 260.96 9,014.15 3,393.67
Equipment Co., Ltd. 4
Hangzhou Steam Turbine Power 3,357.3
Affiliate of the Group 5,167.31 59.5 1,869.47
Technologies Co., Ltd. 4
Hangzhou Nanfangtongda Gears Co., Ltd. Affiliate of the Group 128.44 128 0.44 0 1,062.59 490.65 571.94
Shares held by the
Greenesol Co. (India) 1,090.96 1,090.96
Company
Hangzhou Steam Turbine Automobile Sales
Affiliate of the Group 22.36 6.78 29.1 0.04 540.88 1,336.5 897.97 979.41
Service Co., Ltd.
Hangzhou Steam Turbine Industrial Co. Affiliate of the Group 34.14 54.81 74.09 14.86
Hangzhou Nanhua Wooden Packaging Co., Affiliate of the Group 26.76 873.54 858.07 42.23
31
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Ltd.
Hangzhou Steam Turbine Engineering Co., 21,160.5 12,100.
Affiliate of the Group 16,700 25,759.62
Ltd. 4 92
3,557.2
Sub-total 6,769.63 229.96 3,442.3
9
34,800.8 23,770.
Total 20,234.7 31,465.06
6 5
Amount of capital provided by the Company to the controlling
3,557.29
shareholder and its subsidiaries in the report period (RMB0’000)
Including: Non-operational amount (RMB0’000)
Balance of capital provided by the Company to the controlling
3,442.3
shareholder and its subsidiaries (RMB0’000)
Including: non-operational balance (RMB0’000)
Circumstances in which the related credit or debt are formed Purchasing of generator, power, gear box, and packaging
Clearing of credits and debts Pay on contract
Commitments related to credits and debts
Influence of the related credits and debtors to the business
performance and financial situation of the Company
Capital appropriation and progress of clearing 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
32
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(X) Major contracts and execution
1. Trusteeship, contract, or leasing issues which contributes 10% or over of total profit of the period
(1) Trusteeship
□applicable √ not applicable
(2) Contracting
□applicable √ not applicable
(3) Leasing
□applicable √ not applicable
2. Guarantees
√ applicable □ not applicable
In RMB10 thousand
External Guarantee (Exclude controlled subsidiaries)
Amount of Actual date of
Amount Actual Complet
Guarantee provided guarantee and occurring Type of Related party
of the amount of Term ed or
to date of (signing date guarantee or not
guarantee guarantee not
disclosure of agreements
Total of external
Total of external guarantee guarantee actually
approved in the report term (A1) occurred in the report
term (A2)
Total of external
Total of external guarantee
guarantee actually
approved as of end of report term
occurred as of end of
(A3)
report term (A4)
Guarantee provided to controlled subsidiaries
Actual date
Amount of
Amount of occurring Actual
Guarantee provided guarantee Type of Complet Related party
of the (signing date amount of Term
to and date of guarantee ed or not or not
guarantee of guarantee
disclosure
agreements
Hangzhou
Zhongneng Steam July 25, 2011 6,000 July 25, 2011 5,000 Guaranteed 1 yr No No
Turbine Power Co.,
33
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Ltd.
Total of guarantee to
Total of guarantee to subsidiaries subsidiaries actually
0 0
approved in the report term (B1) occurred in the report
term (B2)
Total of balance of
Total of guarantee to subsidiaries guarantee actually
approved as of the report term 6,000 provided to the 5,000
(B3) subsidiaries as of end of
report term (B4)
Total of guarantee provided by the Company (i.e. total of the above two items)
Total of guarantee
Total of guarantee approved in the
0 occurred in the report 0
report term (A1+B1)
term (A2+B2)
Total of guarantee
Total of guarantee approved as of
6,000 occurred as of the end of 5,000
end of report term (A3+B3)
report term (A4+B4)
Percentage of the total guarantee occurred (A4+B4) on net
1.44%
asset of the Company
In which:
Guarantees provided to the shareholders, substantial
0
controllers and the related parties (C)
Guarantee provided directly or indirectly to objects with
0
over 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
Statement on the possible joint liabilities on the guarantees
not due yet
Remarks on illegal providing of external guarantee
3. Entrusted capital management
□applicable √ not applicable
4. Performing of material contracts
□applicable √ not applicable
5. Other material contracts
□applicable √ not applicable
34
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(XI) Statement on issuing of company bonds
□applicable √ not applicable
(XII) Fulfilling of comitments
1. Commitments of shareholders with over 5% of shares made in the report term or carried over from
previous terms
□applicable √ not applicable
2. Statement on the situation of predicted profit on assets or projects, and actual results of the same
□applicable √ not applicable
(XIII) Other misc income accounts
In RMB Yuan
Items Current term Previous 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
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: influence of income tax oon cash flow hedging 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
35
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(XIV) Reception of investigations, communications, or interviews in the report period
Main content involved
Time/date Place Way Type of visitors Visitors
and material provided
Overseas market,
industrial situation,
strategy plan, market
North-east
January 13, 2012 The Company Field research Institution share, delayed delivery,
Security
prospect on gas turbine,
portion of outsourced
manufacturing
Product character,
Sweeden
delivery circle, receivable
Yingtuo Capital
account, market share,
February 06, 2012 The Company Field research Institution Management
competitors, minority
Co.
shareholders, overseas
(pronunciation)
market, dividend policy
Industrial situation, down
Jinshi stream market, group
February 24, 2012 The Company Field research Institution
Investment business, future of B
shares
Recent projects, industrial
barrier, financial
resources, main products
Huili
March 09, 2012 The Company Field research Institution and orders, delivery circle,
Foundation
influence of the raw
material, market
competition*
Yichuang
March 23, 2012 The Company Field research Institution Enterprise debenture
Morgan
(XV) Engaging and dismissing of CPA
If the Interim Report is audited
[] Yes [V] No [] Not applicable
(XVI) Punishment on the Company and/or the directors, supervisors, executives, shareholders,
substaintial controller, and purchasers, and correcting of misbehaviours
□applicable √ not applicable
(XVII) Other material events
□applicable √ not applicable
(XVIII) Material change in profitability, asset, and credit situation of the guarantor of the
convertible bonds
□applicable √ not applicable
36
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(XIX) Index for information disclosure
Date of
Issues Names and pages of presses Web addresses
releasing
Announcement on approval and certifying of Securities Times, Shanghai
http://www.cninfo.com.cn No.
high-tech enterprise upon the Company and Securities Daily, Hong Kong Jan 7, 2012
2012-01
subsidiaries Commercial Daily
th Securities Times, Shanghai Jan 11, http://www.cninfo.com.cn No.
Resolutions of the 13th Meeting of the 5 Board
Securities Daily 2012 2012-02
Amendement of the Articles of Association (The Securities Times, Shanghai Jan 11, http://www.cninfo.com.cn No.
1st Revision 2012) Securities Daily 2012 2012-03
Securities Times, Shanghai Jan 11, http://www.cninfo.com.cn No.
Information Insider Administration Rules
Securities Daily 2012 2012-04
st Securities Times, Shanghai
Notice of Calling the 1 Provisional Shareholders’ Jan 11, http://www.cninfo.com.cn No.
Securities Daily, Hong Kong
Meeting 2012 2012 2012-05
Commercial Daily
Independent directors’ opinion on adjusting the Securities Times, Shanghai Jan 11, http://www.cninfo.com.cn No.
allowances for independent directors Securities Daily 2012 2012-06
Securities Times, Shanghai Jan 11, http://www.cninfo.com.cn No.
Announcement on resigning of director
Securities Daily 2012 2012-07
st Securities Times, Shanghai
Resolutions of the 1 Provisional Shareholders’ Feb 16, http://www.cninfo.com.cn No.
Securities Daily, Hong Kong
Meeting 2012 2012 2012-08
Commercial Daily
Resolutions of the 14th Session of the 5th Term of Securities Times, Shanghai Feb 16, http://www.cninfo.com.cn No.
Board Securities Daily 2012 2012-09
External investment administration rules (revised Securities Times, Shanghai Feb 16, http://www.cninfo.com.cn No.
2012) Securities Daily 2012 2012-10
Securities Times, Shanghai Feb 16, http://www.cninfo.com.cn No.
Administration rules of entrusted financing
Securities Daily 2012 2012-11
Resolutions of the 9th Session of the 5th Term of Securities Times, Shanghai Feb 16, http://www.cninfo.com.cn No.
Supervisory Committee Securities Daily 2012 2012-12
Independent opinions on using the idle capital in Securities Times, Shanghai Feb 16, http://www.cninfo.com.cn No.
mid-short term financing Securities Daily 2012 2012-13
Announcement on change of employees’ Securities Times, Shanghai February http://www.cninfo.com.cn No.
supervisor Securities Daily 24, 2012 2012-04
Securities Times, Shanghai
Mar 28, http://www.cninfo.com.cn No.
Summary of Annual Report 2011 Securities Daily, Hong Kong
2012 2012-15
Commercial Daily
Mar 28, http://www.cninfo.com.cn No.
Annual Report 2011 Full Text
2012 2012-16
Mar 28, http://www.cninfo.com.cn No.
Financial Report 2011
2012 2012-17
Mar 28, http://www.cninfo.com.cn No.
Financial Statements 2011
2012 2012-18
Resolutions of the 15th Meeting of the 5th Term of Securities Times, Shanghai Mar 28, http://www.cninfo.com.cn No.
Board Securities Daily 2012 2012-19
Resolutions of the 10th Meeting of the 5th Term of Securities Times, Shanghai Mar 28, http://www.cninfo.com.cn No.
Board Securities Daily 2012 2012-20
Statement of special auditing on non-operational
Securities Times, Shanghai Mar 28, http://www.cninfo.com.cn No.
capital appropriation and interchange with related
Securities Daily 2012 2012-21
parties 2011
Securities Times, Shanghai Mar 28, http://www.cninfo.com.cn No.
Introspective Report on Internal Control 2011
Securities Daily 2012 2012-22
Securities Times, Shanghai
Routine Related Transactions in 2011 and Mar 28, http://www.cninfo.com.cn No.
Securities Daily, Hong Kong
Projected for 2012 2012 2012-23
Commercial Daily
Special statement and independent opinions on Securities Times, Shanghai Mar 28, http://www.cninfo.com.cn No.
capital appropriation by related parties Securities Daily 2012 2012-24
Securities Times, Shanghai Mar 28, http://www.cninfo.com.cn No.
Independent directors’ work report 2011
Securities Daily 2012 2012-25
37
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Securities Times, Shanghai
Notice to Call the Shareholders’ Annual Meeting Mar 28, http://www.cninfo.com.cn No.
Securities Daily, Hong Kong
2011 2012 2012-26
Commercial Daily
Securities Times, Shanghai Mar 28, http://www.cninfo.com.cn No.
Work plan of internal control operation
Securities Daily 2012 2012-27
Resolutions of the 16th meeting of the 5th term of Securities Times, Shanghai Apr 23, http://www.cninfo.com.cn No.
Board Securities Daily 2012 2012-28
Resolutions of the 11th meeting of the 5th term of Securities Times, Shanghai Apr 23, http://www.cninfo.com.cn No.
Supervisory Committee Securities Daily 2012 2012-29
Apr 23, http://www.cninfo.com.cn No.
The 1st Quarterly Report 2012 (Full Text)
2012 2012-30
Securities Times, Shanghai
Apr 23, http://www.cninfo.com.cn No.
The 1st Quarterly Report 2012 (Official Text) Securities Daily, Hong Kong
2012 2012-31
Commercial Daily
Announcement on receiving of dividend from Securities Times, Shanghai May 9, http://www.cninfo.com.cn No.
Bank of Hangzhou Securities Daily 2012 2012-32
Securities Times, Shanghai
Resolutions of the Shareholders’ General Meeting May 19, http://www.cninfo.com.cn No.
Securities Daily, Hong Kong
2011. 2012 2012-33
Commercial Daily
Securities Times, Shanghai
June 20, http://www.cninfo.com.cn No.
Announcement of Dividend for Year 2011 Securities Daily, Hong Kong
2012 2012-34
Commercial Daily
Resolutions of the 17th meeting of the 5th term of Securities Times, Shanghai July 12, http://www.cninfo.com.cn No.
Board Securities Daily 2012 2012-35
Amendement of the Articles of Association (The Securities Times, Shanghai July 12, http://www.cninfo.com.cn No.
2nd Revision 2012) Securities Daily 2012 2012-36
Resolutions of the 18th meeting of the 5th term of Securities Times, Shanghai July 26, http://www.cninfo.com.cn No.
Board Securities Daily 2012 2012-37
Securities Times, Shanghai July 26, http://www.cninfo.com.cn No.
Announcement on External Guarantees
Securities Daily 2012 2012-38
VIII. Financial Reports
(I) Auditors’ Report
If the Interim Report is audited
[] Yes [V] No [] Not applicable
(II) Financial Statements
Consolidated or not[]
[V] Yes [] No [] Not applicable
All figures in the financial statements are in RMB Yuan except for otherwise stated.
All figures in the Notes to the Financial Statements are in RMB Yuan
38
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB
Items Notes 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
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
39
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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
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 Notes 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
40
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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
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
Common risk provision
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 Notes
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
41
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Net insurance policy reserves provided
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
Gains from currency exchange (“-“ for loss)
III. Operation 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
IV. Total profit (“-“ for total 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 Notes 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 50,139,365.95 222,656,776.23
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 fluctuation 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
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 total 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
42
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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 1,857,178,254.83 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 37,480,192.09 26,512,590.71
Sub-total of cash inflow from business activities 1,931,162,474.07 2,113,605,458.00
Cash paid for purchasing of merchandise and services 1,040,250,612.34 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 169,690,028.36 108,384,137.04
Sub-total of cash outflow from business activities 1,777,745,277.71 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
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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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
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 1,089,561,806.58 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 1,096,865,679.17 1,145,174,448.25
Cash paid for purchasing of merchandise and services 629,148,461.18 588,004,393.24
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 67,245,279.73 43,855,020.07
Sub-total of cash outflow from business activities 1,092,041,943.00 981,214,160.64
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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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 Less: Minor shareholders’ Total of owners’
Capital paid in (or Capital Special Surplus Common risk
Shares in Retained profit Others equity equity
share capital) reserves reserves reserves provision
stock
I. Balance at the end of last
628,342,000.00 139,590,345.09 453,183,370.20 2,094,147,226.72 447,821,000.94 3,763,083,942.95
year
Plus: Change of
accounting policy
Correcting of
previous errors
Others
II. Balance at the beginning
628,342,000.00 139,590,345.09 453,183,370.20 2,094,147,226.72 447,821,000.94 3,763,083,942.95
of current year
III. Changed this period
125,668,400.00 23,104,897.42 -74,412,159.34 74,361,138.08
(“-“ for decrease)
(I) Net profit 337,275,897.42 36,550,132.60 373,826,030.02
(II) Other misc. income
Total of (I) and (II) 337,275,897.42 36,550,132.60 373,826,030.02
(III) Investment or decreasing
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,279,164.12 -1,279,164.12
of capital by owners
1. Capital inputted by owners 3,200,000.00 3,200,000.00
2. Amount of shares paid and
accounted as owners’ equity
3. Others -4,479,164.12 -4,479,164.12
(IV) Profit allotment 125,668,400.00 0.00 0.00 0.00 0.00 0.00 -314,171,000.00 0.00 -109,683,127.82 -298,185,727.82
1. Providing of surplus
reserves
2. Common risk provision
3. Allotment to the owners
125,668,400.00 -314,171,000.00 -109,683,127.82 -298,185,727.82
(or shareholders)
4. Others
(V) Internal transferring of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capitalizing of capital
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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
IV. Balance at the end of this
754,010,400.00 139,590,345.09 453,183,370.20 2,117,252,124.14 373,405,081.60 3,837,441,321.03
term
Amount of Last Year
In RMB
Amount of Last Year
Owners’ Equity Attributable to the Parent Company Minor
Items Less: Common Total of owners’
Capital paid in (or Capital Special Surplus shareholders’
Shares in risk Retained profit Others equity
share capital) reserves reserves reserves equity
stock provision
I. Balance at the end of last year 483,340,000.00 139,590,345.09 389,362,161.03 1,855,918,732.56 433,290,557.61 3,301,501,796.29
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
483,340,000.00 139,590,345.09 389,362,161.03 1,855,918,732.56 433,290,557.61 3,301,501,796.29
current year
III. Changed this period (“-“ for
145,002,000.00 63,821,209.17 238,228,494.16 14,530,443.33 461,582,146.66
decrease)
(I) Net profit 640,387,703.33 133,785,345.75 774,173,049.08
(II) Other misc. income
Total of (I) and (II) 640,387,703.33 133,785,345.75 774,173,049.08
(III) Investment or decreasing of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,180,000.00 8,180,000.00
capital by owners
1. Capital inputted by owners 8,180,000.00 8,180,000.00
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment 145,002,000.00 0.00 0.00 0.00 63,821,209.17 0.00 -402,159,209.17 0.00 -127,434,902.42 -320,770,902.42
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
1. Providing of surplus reserves 63,821,209.17 -63,821,209.17
2. Common risk provision
3. Allotment to the owners (or
145,002,000.00 -338,338,000.00 -127,434,902.42 -320,770,902.42
shareholders)
4. Others
(V) Internal transferring of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
IV. Balance at the end of this term 628,342,000.00 139,590,345.09 453,183,370.20 2,094,147,226.72 447,821,000.94 3,763,083,942.95
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of the Current Term
In RMB
Amount of the Current Term
Items Capital paid in (or share Capital Less: Shares in Special Surplus Common risk Total of owners’
Retained profit
capital) reserves stock reserves reserves provision equity
I. Balance at the end of last year 628,342,000.00 138,953,250.09 434,426,965.07 1,645,525,626.62 2,847,247,841.78
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current
628,342,000.00 138,953,250.09 434,426,965.07 1,645,525,626.62 2,847,247,841.78
year
III. Changed this period (“-“ for decrease) 125,668,400.00 74,942,931.05 200,611,331.05
(I) Net profit 389,113,931.05 389,113,931.05
(II) Other misc. income
Total of (I) and (II) 389,113,931.05 389,113,931.05
(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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
as owners’ equity
3. Others
(IV) Profit allotment 125,668,400.00 0.00 0.00 0.00 0.00 0.00 -314,171,000.00 -188,502,600.00
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
125,668,400.00 -314,171,000.00 -188,502,600.00
shareholders)
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
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 434,426,965.07 1,720,468,557.67 3,047,859,172.83
Amount of Last Year
In RMB
Amount of Last Year
Items Capital paid in (or share Capital Less: Shares in Special Surplus Common risk Total of owners’
Retained profit
capital) reserves stock reserves reserves provision equity
I. Balance at the end of last year 483,340,000.00 138,953,250.09 370,605,755.90 1,409,472,744.11 2,402,371,750.10
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current
483,340,000.00 138,953,250.09 370,605,755.90 1,409,472,744.11 2,402,371,750.10
year
III. Changed this period (“-“ for decrease) 145,002,000.00 63,821,209.17 236,052,882.51 444,876,091.68
(I) Net profit 638,212,091.68 638,212,091.68
(II) Other misc. income
Total of (I) and (II) 638,212,091.68 638,212,091.68
(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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(IV) Profit allotment 145,002,000.00 0.00 0.00 0.00 63,821,209.17 0.00 -402,159,209.17 -193,336,000.00
1. Providing of surplus reserves 63,821,209.17 -63,821,209.17
2. Common risk provision
3. Allotment to the owners (or
145,002,000.00 -338,338,000.00 -193,336,000.00
shareholders)
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
IV. Balance at the end of this term 628,342,000.00 138,953,250.09 434,426,965.07 1,645,525,626.62 2,847,247,841.78
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(III) Company Profiles
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 RMB754.0104 million with total capital share of 754.0104 million shares (face value
RMB1.00). Among which state-owned legal person shares were 479.8248 million shares and 274.1856 million
shares of current B shares.
The scope of main businesses of the Company: The design and manufacturing of steam turbine, gas turbine,
other rotating and to-and-fro machinery and auxiliary equipment, and spare parts and components, sales of
self-manufactured products and the provision of relevant after-sales service and import & export service.
(IV) Main accounting policies, acocunting estimations and correcting of previous errors
1. Basis of financial statement
The Company adopts perpetual operation as the basis of financial statements.
2. 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.
3. Accounting period
A fiscal year is the year from January 1 to December 31 of the solar calendar.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
Standard Currency for bookkeeping of overseas subsidiaries.
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
5. Accounting treatment of the merging entities under common control and different control
(1) Merger 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) Merger of enterprises under different control
The difference of takeover cost over the fair value of recognizable net asset of the acquired entity is
recognized as goodwill at the day of takeover; in case the takeover cost is lower than the fair value of recognizable
net asset of the acquired entity, the measuring process over the recognizable asset, liabilities,contingent liabilities,
and takeover cost, shall be repeated, if comes out the same result, the difference shall be recorded into current
income account.
6. Preparing method of consolidated financial statements
(1) Preparation of consolidated financial statements
The parent company puts all of its subsidiaries under its control into the consolidated financial statements.
The consolidated financial statements are prepared according to the “Enterprise Accounting Standard No. 33 –
Consolidated Financial Statements”, basing on the accounts of the parent company and the subisidiaries, and after
adjusting the long-term investment equity in the subsidiary on equity basis.
(2) Accounting process on purchasing and selling, or selling and purchasing of the shares of the same
subsidiary in successively two years
7. Recognition basis 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.
8. Translation of businesses and accounts in foreign currency
(1) Business in foreign currency
Foreign currency trades are translated into RMB at the rate of the day when the trades are made. Those
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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.
9. Financial instruments
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.
(1) Categorising of financial instruments
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) Recognition basis and measurement of financial instruments
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 guarantee 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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, are
measured at the higher of the followings:
1) Amount decided according to Enterprise Accounting Standard No.13 – Contingency issues;
2) Balance of intinially recognized amount less the accumulative amortizing amount accounted according to
Enterprise Accounting Standard No. 14 – Income.
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) Recognition basis and measurement for transferred financial assets
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 fulfill 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.
(5) Recognition of fair values of financial assets and liabilities
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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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.
(6) Providing of impairment provision on financial assets (exclude receivable accounts)
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 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.
10. Recognition standard and providing basis of bad debt provision on receivable accounts
Basis to recognition of portfolios and providing of bad debt provisions
Basis of recognition for portfolios
Group by age analysis With similar characteristics of credit risks
Basis of bad debt provision
Group by age analysis Age analysis method
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard amount of individual account with Accounts take 10% or over of the balance of account
large amount receivable
Impairment test performed individually, bad debt provision
Basis of bad debt provision will be provided at the difference of expected cash flow
lower than the book value.
(2) Receivable accounts on which bad debt provisions are provided as groups
Name of the portfolio Basis of bad debt provision Basis of recognition for portfolios
Accounts on age basis in the portfolio:
[V] Applicable [] Not applicable
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 yr, (included) 5% 5%
1-2 yrs 20% 20%
2-3 yrs 40% 40%
Over 3 yrs 60% 60%
3-4 yrs 60% 60%
4-5 yrs 60% 60%
over 5 yrs 60% 60%
11. Inventories
(1) Inventory classification
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and
goods in manufacturing procedure or working procedure.
(2) Pricing of inventory to be delivered
Delivered out materials are accounted by weighted average method, issued out finished products are
accounted at individual price.
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(3) Recognition of realizable net value of inventory and providing of inventory 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) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: one-off
Low-value-consumable is amortized one-off.
Packaging materials
Packaging material account to cost directly.
12. 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).
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(2) Successive 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 to recognize common control and material influence on invested entities
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 test and providing of impairment provisions
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 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.
13. Investment property
[] Not applicable
14. Fixed assets
(1) Recognition 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.
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(2) Recognition and pricing of fixed asset leased by financing
Financed lease is recognized when one or several of the following conditions is satisfied:
(1) The ownership over the leased asset is transferred to the lessee on expiration of the leasing period;
(2) It is the lessee’s option to, or not to, buy the leased asset. However the predicted final consideration of the
asset will far lower than its original fair value. Therefore it can be rationally determined that the lessee will use its
option to buy off the asset.
（3）The ownership is not transferred, but the leasing period is taking most of the service life (usually 75% or
over of the service life of the leased asset).
（4）The current value of the lowest payment made by the lessee at the commencing date of the lease is
almost equal to (90% or over of) the fair value of the asset at the same date; or the current value of the lowest
amount received by the leaser at the commencing date of the lease is almost equal to (90% or over of) the fair
value of the asset at the same day;
(5) The asset to be leased is specialized for the use of the lessee, namely could not be used by others without
major reconstruction.
Fixed asset leased on finance is booked at the lower one of the fair value at the commencing date and the
current value of the lowest rental.
(3) Depreciation of different fixed assets
Categories Depreciation age (year) Salvage Value Rate (%) Annual depreciation rate (%)
Houses & buildings 20-30 4 4.8-3.2
Equipment & machinery 8-15 4 12-6.4
Electronic equipment
Transportation equipment
Office equipment 5 4 19.2
Other equipment
Fixed asset leased by financing -- -- --
Incl. House & Buildings
Equipment & machinery
Electronic equipment
Transportation equipment
Other equipment
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
15. Construction-in-process
(1) Categories of construction-in-process
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) Standard and timing for transferring of construction-in-process to fixed assets
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) Impairment test and providing of impairment provisions on construction-in-process
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.
16. Borrowing expenses
(1) Principle of the recognition of capitalized borrowing costs
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) Capitalizing period of borrowing 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.
(3) Temporarily suspension of capitalizing period
(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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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.
(4) Calculating of borrowing expense capitalizing
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.
17. Biological assets
[] Not applicable
18. Petrolum assets
[] Not applicable
19. Intangible assets
(1) Pricing of intangible assets
Intangible assets are land using rights, patents, and non-patent technologies, which are measured at cost
basis.
(2) Estimation of service life of intangible assets with limited service life
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 Expected useful life Basis
Land using right 50
Operation rights of waste heat
on actual operation term
power plant
Mining rights 10-30
Others 5
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(3) Intangible assets without certain useful life
Intangible assets without certain useful life are not amortized. They will be reconsidered in each accounting
period, if strong evidence showing that the useful life became limited, then it will be estimated, and amortized on
straight basis. Intangible asset without certain useful life shall be tested each year whether or not there is evidence
of impairment.
(4) Providing of intangible asset impairment provisions
Intangible assets without certain useful life are not amortized. They will be reconsidered in each accounting
period, if strong evidence showing that the useful life became limited, then it will be estimated, and amortized on
straight basis. Intangible asset without certain useful life shall be tested each year whether or not there is evidence
of impairment.
(5) Dividing of research stage and development stage of internal R&D projects
The expenditure on internal R&D are recorded in gain or loss at the occurrence time.
(6) Accounting of internal R&D expenses
Expenses of internal R&D projects in research stages are recorded into current income account when
occurred; expenses of internal R&D projects in development stages, are recognized as intangible assets when all
of the following conditions are satisfied, or otherwise recorded to current income account: (1) Developing of
the intangible asset is about to be completed, and it is technically possible to be put into use or sold; (2) Has the
intention to use or sell it;(3) The intangible asset is proved being able to make financial benefit, including there is
a market for the products using the intangible asset or the intangible asset itself. If the intangible asset is used
internally, its usage should be proved; (4) There are sufficient technologies, financial resources, or other
resources that support the developing, using or selling of the intangible asset; (5) When the expenses
attributable to the intangible asset can be reliably measured.
20. Amortization of long-term 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.
21. Asset transferring with repurchasing terms
22. Anticipated liabilities
Liabilities caused by contingent issues such as providing of guarantee, lawsuit, quality warranty, and loss
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
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.
(1) Recognition of expectible liabilities
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) Accounting of expectible liabilities
The best prediction is used in initial measurement when the relative liability is excercised, and revised at
balance sheet day.
23. Share payment and equity instruments
Not applicable
24. Repurchasing of the Company’s shares
Not applicable
25. Revenue
(1) Recognition time for sales of goods
1. Sales of goods
Sales income is recognized when all of these conditions are satisfied: (1) Major risks and rewards attached to
the goods have been transferred to the purchaser; (2) The Company holds neither successive management power
which is normally attached to ownership, nor effective control, over the goods which have been sold out; (4)
Amount of income may be reliably measured; (5) when the costs, occurred or will occur, may be measured
reliably.
2. Providing of labor service
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
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
recognized.
(2) Recognition of income from giving of using rights on assets
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.
(3) Deciding of completion percentage when percentage basis is adopted to recognize income from service
providing or construction contracts
4. Construction contracts
(1) When the result of the construction contract is able to be evaluated reliably at the balance sheet date, the
income and cost of the contract are recognized on completion percentage basis. If the result of the construction
contract is not able to be evaluated reliably, but the contract cost may be recovered, the income is recognized at
the cost actually recovered, and the cost of the contract is recognized as contract expenses of the current period
when it is occurred.
(2) When all of the following conditions were satisfied, the result of a fix-amount contract is regarded as can
be evaluated reliably: the total income of the contract may be measured reliably, there is great possibility that the
financial benefit in relation with the contract will inflow, the actual contract costs may be identified and measured
clearly and reliably, the construction progress and the cost to occur are able to be measured reliably. When all of
the following conditions are satisfied, the result of a cost-plus-commission contract is regarded as can be
evaluated reliably: there is great possibility that the financial benefit in relation with the contract will inflow, the
actual costs may be identified and measured clearly and reliably.
(3) Contract progress is recognized at the ratio of accumulative actual cost on the predicted complete cost.
(4) In case the expected total cost is greater than the total income, the expected loss will be recognized as
expense of the current period. If the construction is in process, the balance is accounted as inventory impairment
provision; if the contract is not executed, the balance is accounted as expected liability.
26. Government allowance
(1) Categories
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.
(2) Accounting treatment
3. Asset-related government subsidies are recognized as deferred income, amortized straight to its useful life
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
and recorded into current income account. Those income-related government subsidies used to makeup expenses
or losses in succeeding periods are recognized as deferred 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.
27. Deferred income tax asset and deferred income tax liabilities
(1) Basis for recognition of deferred income tax assets
Deferred income tax assets are recognized limitedly by the income tax which very possibly deduct
deductible temporary difference. At balance sheet day, the not-yet recognized deferred income tax assets in
previous fiscal term are recognized if have evidence to prove there is enough income tax very possibly to deduct
deductible temporary difference.
(2) Basis for recognition of deferred income tax liabilities
Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or
paying the liabilities according to difference (for not recognized assets and liabilities which tax basis can be
recognized, the difference is between the tax basis and the book value) between book value of the assets or
liabilities and the tax basis.
28. Operational leasing and financial leasing
(1) Accounting of operational leasing
When the Company is the lessee, the lower one of the fair value of the asset and the lowest rental at the
commencing date is recognized as its book value, the lowest rental payment is recognized as long-term payable,
the balance between the two is booked as unrecognized financial expense, and the initial direct expenses occurred
are accounted into rental asset value. Financial expenses are recognized to each period on actual interest basis.
(2) Accounting treatment of financed leasing
When the Company is the leaser, the receivable rental payment is booked as the sum of the lowest rental
payment and direct expenses at the commencing date. The unguaranteed balance is recorded thereon. The
difference between the sum of lowest rental payment plus initial direct expenses plus the unguaranteed balance
and the sum of current values is recognized as unrealised finance income. Financial income are recognized to each
period on actual interest basis.
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
29. Sellable assets in possession
[] Not applicable
30. Securitilization of asset
[] Not applicable
31. Hedging instruments
[] Not applicable
32. Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
[] Yes [] No [V] Not applicable
(1) Change of accounting policies
Is there any change in accounting policies in the report period
[] Yes [] No [V] Not applicable
(2) Change of accounting estimations
Is there any change in accounting estimations in the report period
[] Yes [] No [V] Not applicable
33. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
[] Yes [V] No [] Not applicable
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
[] Yes [V] No [] Not applicable
(2) Future adoption method
Is there any future adoption method applyable to accounting errors with previous periods found in the report period.
[] Yes [V] No [] Not applicable
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
34. Other principal accounting policies, estimations and preparation method of financial statements
(V) Taxation
1. Main categories and rates of taxes
Tax items Tax basis Tax rate
sales of goods or providing of taxable
VAT 17%
labor service
Consumption tax
Business tax Taxable turnover 5%
City maintenance and construction tax Turnover tax payable 7%
Enterprise income tax Amount of income taxable [Note]
Education surtax Turnover tax payable 3%
Local education surcharges Turnover tax payable 2%
Income tax rate applyable to branches and factories.
The Company and its subsidiaries Hangzhou Zhongneng Steam Turbine Power Co., Ltd. and Hangzhou Steam
Turbine Casting Co., Ltd. are subject to 15% of tax rate.
2. Preferential tax and approving documents
1. According to the document “Notice for Qualification of 1125 Enterprises as High-tech Enterprises” (浙科
发高〔2011〕263号) issued by Zhejiang Department of Science and Technology, Zhejiang Department of Finance,
Zhejiang National Tax Bureau, and Zhejiang Local Tax Bureau, the Company and Hangzhou Zhongneng Steam
Turbine Power Co., Ltd. – subsidy of the Company, were qualified as high-tech enterprises for term of three years.
Therefore we enjoy 15% of tax for 2011-2013.
2. 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, Hangzhou Steam Turbine
Casting Co., Ltd. was certified the High-Tech Enterprise, therefore enjoys 15% of income tax rate from 2010 to
2012.
3. According to the document 浙科发高〔2011〕262 号 issued by Zhejiang Department of Science and Technologies, Zhejiang
Department of Finance, Zhejiang National Tax Bureau, and Zhejiang Local Tax Bureau, Hangzhou Guoneng Steam Turbine
Engineering Co., Ltd. – the holding subsidiary of Hangzhou Auxiliary Co., and Zhejiang Huayuan Steam Turbine Machinery
Co., Ltd. – the holding subsidiary of the Machinary Co., were recognized high-tech enterprises of 2011. Therefore the two
companies are subject to 15% of income tax for the period from 2011 to 2013.
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(VI) Consolidating of entities and consolidated financial statements
Overall statement on consolidating of entities and consolidated financial statements.
1. Particulars of the subsidiaries
67
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(1) Subsidiaries obtained through incorporation or investment
In RMB
Balance of the
owners’ equity
of parent co.
after deducting
Amount for of the
Balance of
deducting exceeding part
other items
Minor minor of minority
Actual actually
Full name of Ownership of Business Registered Business Share Voting power shareholder’s shareholders’
Reg. Add. Currency investment at formed net Consolidated? shareholders’
the subsidiary the subsidiary property capital Scope proportion % % equity in the share of loss
year end investment in equity
minor over the share
the
shareholder’s of minority
subsidiaries
equity shareholders in
the owners’
equity at
beginning of
year
Zhejiang Development
Steam Trubine of electrical &
Packaged mechanical
Technologies Controlled Hangzhou equipment
Manufacturing 51,000,000.00 CNY 16,260,174.60 51.84% 51.84% Yes 39,914,028.47
Development subsidiaries Zhejiang cotrol unit and
Co., Ltd. (the technical
Packaged Tech consulting
Co.) service
Designing and
manufacturing
of steam
turbines and
Hangzhou
supplementary
Zhongneng
equipment and
Steam Turbine
Controlled Hangzhou parts; sales of 101,163,116.0
Power Co., Manufacturing 92,500,000.00 CNY 5,600,853.25 51.6% 51.6% Yes
subsidiaries Zhejiang the Company’s 6
Ltd.
products;
(Zhongneng
contracting
Co.)
and consulting
of mid-small
size power
plants
Hangzhou Manufacturing
Steam Turbine Controlled Hangzhou of cast iron
Manufacturing 22,000,000.00 CNY 11,220,000.00 51% 51% Yes 78,285,538.62
Casting Co., subsidiaries Zhejiang and steel
Ltd. (Casting products;
68
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Co.) installation
and
maintenance
of casting
equipments;
sales of the
Company’s
products
Hangzhou
Steam Turbine
Auxiliary Manufacturing
Machinery Controlled Hangzhou of auxiliary
Manufacturing 80,000,000.00 CNY 19,244,620.00 76.5% 76.5% Yes 62,949,395.63
Co., Ltd. subsidiaries Zhejiang equipment of
(Auxiliary steam turbine
Machinery
Co.)
Hangzhou Manufacturing
Steam Turbine and processing
Machinery of steam
Equipment Controlled Hangzhou turbine
Manufacturing 30,000,000.00 CNY 7,968,000.00 52% 52% Yes 60,791,884.08
Co., Ltd. subsidiaries Zhejiang auxiliary parts
(Machinery and other
Equipment machinery
Co.) auxiliary parts
Zhejiang
Huayuan Holding Manufacturing
Steam Turbine subsidiary of Huzhou and processing
Manufacturing 21,000,000.00 CNY 15,750,000.00 75% 75% Yes
Machinery the Machinery Zhejiang of steam
Co., Ltd. Co. turbine parts
(Huayuan Co.)
Steam turbine
periphery;
service:
Hangzhou design,
Guoneng Holding installation,
Steam Turbine subsidiary of Hangzhou consultation,
Manufacturing 40,000,000.00 CNY 30,000,000.00 75% 75% Yes
Engineering the Auxiliary Zhejiang technology
Co., Ltd. Machine Co. service of
(Guoneng Co.) steam turbine
system and
related
equipments.
Hangzhou
Steam turbine
Steam Turbine
and auxiliary
Group
Holding equipment
Equipment
subsidiary of Hangzhou designing and
System Manufacturing 20,000,000.00 CNY 30,226,900.00 70% 70% Yes 7,311,789.36
Zhongneng Zhejiang installation,
Engineering
Co. equipment
Co., Ltd.
system
(Group System
engineering
Co.)
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Designing of
cooling and
depressurizing
equipment and
accessories;
manufacturing
Hangzhou (assembling
Pangtong Holding only): cooling
Electronic subsidiary of Hangzhou and
Manufacturing 1,000,000.00 CNY 700,000.00 70% 70% Yes 440,578.98
Equipment Zhongneng Zhejiang depressurizing
Co., Ltd. Co. equipment;
(Pangtong Co.) wholesale and
retailing:
cooling and
depressurizing
equipment and
related
equipment
Hangzhou
Holding Forging and
Kaineng Forge Hangzhou
subsidiary of Manufacturing 2,000,000.00 CNY casting 2,000,000.00 100% 100% Yes
Co., Ltd. Zhejiang
Casting Co. materials
(Kaineng Co.)
Guizhou
Zhongcheng Holding Producing and
Cement Co., subsidiary of Dushan sales of
Manufacturing 50,000,000.00 CNY 30,000,000.00 60% 60% Yes 16,531,417.51
Ltd. Zhongneng Guizhou clinker,
(Zhongcheng Co. cement
Cement)
Steam turbine,
gass turbine,
generator, gear
box, boiler, air
cooler,
condensator,
power plant
auxiliary
equipment,
Zhejiang
water turbine,
Turbine Import
Fully-owned Hangzhou air
& Export Co., Commerce 20,000,000.00 CNY 20,000,000.00 100% 100% Yes
subsidiary Zhejiang compressor,
Ltd. (Turbine
fan,
Co.)
controlling
equipment,
spare parts,
and materials.
Sales and
assembling of
the above,
import and
export.
Shijiazhuang Holding Shijiazhuang Service 2,000,000.00 CNY Sales, 1,200,000.00 60% 60% Yes 341,192.12
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Hangneng subsidiary of Hebei industry technical
Steam Turbine Zhongneng consulting,
Technical Co. service,
Services Co., adjusting, and
Ltd. maintaining of
(Shijiazhuang steam turbines
Service Co.) and auxiliary
facilities and
parts
Installation,
testing, and
technical
consulting of
Kunming steam turbines,
Hangzhong electric
Steam Turbine Holding generators,
Technical subsidiary of Kunming Service and power
1,200,000.00 CNY 720,000.00 60% 60% Yes 520,974.27
Service Co., Zhongneng Yunnan industry equipment;
Ltd. Co. sales of parts
(Kunming of steam
Service Co.) turbine,
electric
generator, and
power
equipment
Sales of steam
turbines, steam
machine,
Wulumuqi
generator set,
Hangzhongnen
and parts;
g Steam
Holding developing,
Turbine
subsidiary of Wulumuqi Service promotion,
Technical 3,000,000.00 CNY 1,800,000.00 60% 60% Yes 1,092,048.38
Zhongneng Xinjiang industry service of
Service Co.,
Co. energy-saving
Ltd.
technologies,
(Wulumuqi
maintaining,
Service Co.)
reconstruction
of high-tech
products
Technical
service,
Tangshan
installation,
Hangneng
and
Steam Turbine Holding
maintaining of
Technical subsidiary of Tangshan Service
2,000,000.00 CNY steam turbines; 1,200,000.00 60% 60% Yes 761,060.57
Service Co., Zhongneng Hebei industry
sales of steam
Ltd. Co.
turbine and
(Tangshan
auxiliary
Service Co.)
equipment,
and parts
Guangxi Holding Service 2,000,000.00 CNY Technical 1,200,000.00 60% 60% Yes 902,057.55
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Hangzhongnen subsidiary of industry service,
g Steam Zhongneng installation,
Turbine Tech Co. and
Service Co., maintaining of
Ltd. steam turbines;
sales of steam
turbine and
auxiliary
equipment,
and parts
Technical
service,
installation,
Jilin
and
Hangzhongnen Holding
maintaining of
g Steam subsidiary of Service
2,000,000.00 steam turbines; 1,200,000.00 60% 60% 800,000.00
Turbine Tech Zhongneng industry
sales of steam
Service Co., Co.
turbine and
Ltd.
auxiliary
equipment,
and parts
Technical
service,
installation,
and
Holding
Chengdu maintaining of
subsidiary of Service
Zhongneng 2,000,000.00 steam turbines; 1,200,000.00 60% 60% 800,000.00
Zhongneng industry
Tech Co., Ltd. sales of steam
Co.
turbine and
auxiliary
equipment,
and parts
Technical
service,
installation,
Luoyang and
Holding
Hangqi Steam maintaining of
subsidiary of Service
Turbine Tech 2,000,000.00 steam turbines; 1,200,000.00 60% 60% 800,000.00
Zhongneng industry
Service Co., sales of steam
Co.
Ltd. turbine and
auxiliary
equipment,
and parts
Other statements on Subsidiaries obtained through incorporation or investment
72
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(2) Subsidiaries procured through merger of entities under common control
None
(3) Subsidiaries procured through merger of entities under different control
None
2. Entities with special purposes or entities on which the Company has cotrolling power thorugh entrusted
operation or leasing
[] Not applicable
Other statement on entities with special purposes or entities on which the Company has cotrolling power thorugh entrusted operation
or leasing
3. Change of consolidation range
Change of consolidation range:
1. Subsidiaries newly included in the consolidated financial statements
Particulars about subsidiaries added by means of direct incorporation or investment:
√ applicable □ not applicable
Four new companies were consolidated for the first time this period. They are:
(1) In the report period, Hangzhongneng Technologies Co. Ltd. was founded by Zhongneng Co. and Yang
Weidong. Business registration was done on March 31, 2012 and with business certificate No.510107000476658.
The company was registered with capital of RMB2 million, in which RMB1.2 million was input by Zhongneng
Co., account for 60% of the capital shares. Therefore Zhongneng Co. has substantial control over the company. It
was included in the consolidated financial statements.
(2) In the report period, Luoyang Hangqi Steam Turbine Technical Service Co. Ltd. was founded by
Zhongneng Co. and Mr. Gao Jianhua. Business registration was done on July 5, 2012 and with business certificate
No. 410303011031418(1-2). The company was registered with capital of RMB1.2 million, in which RMB0.72
million was input by Zhongneng Co., account for 60% of the capital shares. Therefore Zhongneng Co. has
substantial control over the company. It was included in the consolidated financial statements.
(3) In the report period, Guangxi Hangzhongneng Steam Turbine Technical Service Co. was founded by Zhongneng Co. and
Mr. Chen Guike. Business registration was done on January 12, 2012 and with business certificate No. 450100000023050. The
company was registered with capital of RMB1.2 million, in which RMB0.72 million was input by Zhongneng Co., account for 60%
of the capital shares. Therefore Zhongneng Co. has substantial control over the company. It was included in the consolidated
financial statements.
(4) In the report period, Jilin Hangzhongneng Steam Turbine Technical Service Co. was founded by Zhongneng Co. and Mr.
Chen Guike. Business registration was done on January 10, 2012 and with business certificate No. 220214000027628. The
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company was registered with capital of RMB1.2 million, in which RMB0.72 million was input by Zhongneng Co., account for 60%
of the capital shares. Therefore Zhongneng Co. has substantial control over the company. It was included in the consolidated
financial statements.
Two companies were eliminated from the consolidation range in the report period, they are:
(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 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.
4. Entities included or excluded in the consolidation range in the report period
Subsidiaries newly included in the consolidated accounts
Guangxi Hangzhongneng Steam Turbine Tech Service
Co., Ltd.
Jilin Hangzhongneng Steam Turbine Tech Service Co.,
Ltd.
Chengdu Zhongneng Tech Co., Ltd.
Luoyang Hangqi Steam Turbine Tech Service Co., Ltd.
Subsidiaries no longer included in the consolidated account
Hangzhou Energy-saving Technologies and
Design Institute Ltd.
Dushan Zhongcheng Shangtong Co., Ltd.
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing added to the consolidation range in the report period.
In RMB
Name Net asset at end of term Net profit of the current term
Guangxi Hangzhongneng Steam Turbine Tech Service Co., Ltd. 2,255,143.87 255,143.87
Jilin Hangzhongneng Steam Turbine Tech Service Co., Ltd. 2,000,000.00 0.00
Chengdu Zhongneng Tech Co., Ltd. 2,000,000.00 0.00
Luoyang Hangqi Steam Turbine Tech Service Co., Ltd. 2,000,000.00 0.00
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing excluded from the consolidation range in the report period.
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
In RMB
Net profit from beginning of year
Name Net asset at day of disposal
to the date of disposal
Hangzhou Energy-saving Technologies and Design
-387,502.14 -524,231.01
Institute Ltd.
Dushan Zhongcheng Shangtong Co., Ltd. 9,378,397.46 -561,469.10
Other statements on entities included to or excluded from the consolidation range in the report period
5. Merger of entities under common control in the report term
None
6. Merger of entities under different control in the report term
None
(VII) Notes to key items in the consolidated financial statements
1. Monetary fund
In RMB
End of term Beginning of term
Items Amount of foreign Exchan Amount of Exchange
Amount RMB Amount RMB
currency ge rate foreign currency rate
Cash: -- -- 332,460.60 -- -- 190,895.11
RMB -- -- 332,460.60 -- -- 190,895.11
Bank account: -- -- 417,550,028.89 -- -- 588,331,475.12
RMB -- -- 407,714,533.42 -- -- 513,983,745.38
USD 1,521,195.56 9,624,362.27 10,580,371.12 6.3009 66,665,860.31
JPY 3,459.00 275.50 3,459.00 0.0811 280.54
EUR 25,874.98 203,661.97 940,201.35 8.1625 7,674,393.53
HKD 8,878.13 7,195.73 8,877.68 0.8105 7,195.36
Other monetary capital -- -- 50,483,151.59 -- -- 74,126,355.42
RMB -- -- 50,483,151.59 -- -- 73,470,204.90
USD 104,136.00 6.3009 656,150.52
Total -- -- 468,365,641.08 -- -- 662,648,725.65
Accounts under pledge, restriction, or saved abroad, which are attached with potential risks, shall be stated individually.
2. Transactional financial assets
Not applicable
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3. Notes receivable
(1) Categories of notes receivable
In RMB
Categories End of term Beginning of term
Bank acceptance 941,961,079.65 783,778,615.40
Commercial acceptance 230,335.00 90,695.00
Total 942,191,414.65 783,869,310.40
4. Dividend receivable
None
5. Interest receivable
None
6. Account receivable
(1) Account receivable presented on categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proportion Proportion Proportion
Amount Amount Amount Amount Proportion %
% % %
Receivables with major
individual amount and bad
0.00 0.00 0.00 0.00
debt provision provided
individually
Receivables provided bad debt provision in groups
2,214,352,5 425,312,69 2,233,514 420,808,770.
Group by age analysis 100% 19.21% 100% 18.84%
94.02 0.28 ,821.99 68
2,214,352,5 425,312,69 2,233,514 420,808,770.
Sub-total of group 100% 19.21% 100% 18.84%
94.02 0.28 ,821.99 68
Account receivable with
minor individual amount
0.00 0.00 0.00 0.00
but bad debt provision is
provided
2,214,352,5 425,312,69 2,233,514 420,808,770.
Total -- -- -- --
94.02 0.28 ,821.99 68
Remarks on categories of receivable accounts:
Receivable accounts with large amount individually and bad debt provisions were provided
□applicable □ not applicable
Receivable accounts on which bad debt provisions are provided on age analyze basis in the portfolio
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√ applicable □ not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
% %
within 1 yr
In which: -- -- -- -- -- --
within 1 yr 1,170,444,316.27 52.86% 58,522,215.82 1,172,531,129.35 52.5% 58,626,556.46
Subtotal of within
1,170,444,316.27 52.86% 58,522,215.82 1,172,531,129.35 52.5% 58,626,556.46
1 year
1-2 years 506,586,378.44 2,288% 101,317,275.68 558,607,833.52 25.01% 111,721,566.71
2-3 years 28,459,970,407.00 12.85% 113,839,881.63 254,824,339.83 11.41% 101,929,735.93
Over 3 yrs 252,722,195.24 11.41% 151,633,317.15 247,551,519.29 11.08% 148,530,911.58
3-4 years 141,941,520.26 6.41% 85,164,912.16 141,819,075.16 6.35% 85,091,445.10
4-5 years 65,324,776.13 2.95% 39,194,865.68 70,816,779.56 3.17% 42,490,067.74
over 5 yrs 45,455,898.85 2.05% 27,273,539.31 34,915,664.57 1.07% 20,949,398.74
Total 2,214,352,594.02 -- 425,312,690.28 2,233,514,821.99 -- 420,808,770.68
(2) Receivable accounts written back or retrieved in the report period
None
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
√ applicable □ not applicable
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
Hangzhou Steam Turbine Group 2,176,500.00 579,900.00 1,981,500.00 430,550.00
Total 2,176,500.00 579,900.00 1,981,500.00 430,550.00
(5) Top 5 debtors in the receivable accounts
In RMB
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Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
Shenyang Turbine
Non-related 462,742,392.10 1 to 3 years or over 20.9%
Machinery Co., Ltd.
Xi’an Shanggu Power
Non-related 286,798,976.82 1 to 3 years or over 12.95%
Co., Ltd.
Chongqing Zhongjieneng
Non-related 178,437,382.50 1 to 3 years 8.06%
Sanfeng Energy Co., Ltd.
Huaneng International
Non-related 41,292,834.00 1 to 3 years or over 1.86%
Power Co., Ltd.
印度马杜康工程公司 Non-related 32,269,327.94 Within 1 year 1.46%
Total -- 1,001,540,913.36 -- 45.23%
(6) Account due from related parties
In RMB
Name of the companies Relation with the Company Amount Portion in total receivables
Hangzhou Steam Turbine
Affiliate of the Group 18,694,719.38 0.84%
Power Technologies Co., Ltd.
Greenesol Co. (India) Shares held by the Company 10,909,557.71 0.49%
Hangzhou Nanfangtongda
Affiliate of the Group 4,434.00 0%
Gears Co., Ltd.
Hangzhou Hangfa Power
Generating Equipment Co., Affiliate of the Group 464,000.00 0.02%
Ltd.
HSTG Nanfang Sales Co. Affiliate of the Group 20,000.00
Hangzhou Steam Turbine
Automobile Sales Service Co., Affiliate of the Group 429.09
Ltd.
Total -- 30,093,140.18 1.35%
7. Other account receivable.
(1) Other receivable account on categories
In RMB
Categories End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n% n% % n%
Other receivables with
major individual amount
0.00 0.00 0.00 0.00
and bad debt provision
provided individually
Other receivables provided bad debt provision in groups
61,034,857.9 81,704,590.1
Group by age analysis 93.83% 5,036,589.07 95.32% 6,077,460.95 7.44%
1 2
61,034,857.9 81,704,590.1
Sub-total of group 93.83% 5,036,589.07 95.32% 6,077,460.95 7.44%
1 2
Other account receivable
with minor individual
4,010,320.94 6.17% 4,010,320.94 100% 4,010,320.94 4.68% 4,010,320.94 100%
amount but bad debt
provision is provided
65,045,178.8 85,714,911.0
Total -- 9,046,910.01 -- -- 10,087,781.89 --
5 6
Statement on categories of other receivable accounts:
Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
√ applicable □ not applicable
In RMB
At end of term At beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which:
within 1 yr 54,961,960.62 90.05% 2,748,098.04 74,910,303.67 91.68% 3,745,515.21
Subtotal of within 1 year 54,961,960.62 90.05% 2,748,098.04 74,910,303.67 91.68% 3,745,515.21
1-2 years 2,278,483.05 3.73% 455,696.61 3,862,987.81 4.73% 772,597.56
2-3 years 2,219,270.64 3.64% 887,708.26 997,155.04 1.22% 398,862.02
Over 3 yrs 1,575,143.60 2.58% 945,086.16 1,934,143.60 2.37% 1,160,486.16
3-4 years 94,100.00 0.14% 56,460.00 497,100.00 0.61% 298,260.00
4-5 years 336,500.00 0.52% 201,900.00 535,500.00 0.66% 321,300.00
over 5 yrs 1,144,543.60 1.88% 686,726.16 901,543.60 1.1% 540,926.16
Total 61,034,857.91 -- 5,036,589.07 81,704,590.12 -- 6,077,460.95
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Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
√ applicable □ not applicable
In RMB
Description of other
Book balance Bad debt provision Rate Reason to provide
receivables
Shanghai Customs
4,010,320.94 4,010,320.94 100%
Waigaoqiao Office
Total 4,010,320.94 4,010,320.94 100% --
（2） Other receivable accounts written back or retrieved in the report period
None
(3) Other receivable accounts actually written off in the report period
None
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of the
Company’s shares in the report period
√ applicable □ not applicable
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
HSTG 400,000.00 20,000.00
Total 400,000.00 20,000.00 0.00 0.00
(5) Natures or contents of other receivable accounts with large amount
None
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Deposit by custom Non-related 14,334,470.62 within 1 yr 22.04%
Jiangxi Zhongjin Lead Non-related 14,292,000.00 within 1 yr 21.97%
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Co., Ltd.
Guoxin Trust Bidding
Non-related 1,176,800.00 within 1 yr 1.81%
Invitation Co., Ltd.
Shanghai Customs
Non-related 4,010,320.94 Over 3 yrs 6.17%
Waigaoqiao Office
Shanxi International
Non-related 800,000.00 within 1 yr 1.23%
Bidding Co., Ltd.
Total -- 34,613,591.56 -- 53.22%
(7) Other accounts receivable from related parties
In RMB
Portion in total other receivables
Name of the companies Relation with the Company Amount
(%)
Hangzhou Hangfa Power
Generating Equipment Co., Affiliate of the Group 403,390.00 0.62%
Ltd.
Total -- 403,390.00 0.62%
(8) Termination of other receivable accounts
None
(9) For securitization on other receivable accounts, please provide the amount of asset and liability formed
by continuous involving
None
8. Prepayment
(1) Prepayment presented by ages:
In RMB
End of term Beginning of term
Age
Amount Ratio (%) Amount Ratio (%)
within 1 yr 238,492,676.95 97.44% 191,041,791.61 91.52%
1-2 years 2,926,931.01 1.2% 13,832,464.36 6.63%
2-3 years 2,668,035.00 1.09% 2,876,300.30 1.38%
Over 3 yrs 666,935.46 0.27% 981,856.46 0.47%
Total 244,754,578.42 -- 208,732,412.73 --
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Statement on ages of prepayments:
(2) Top 5 receivers of prepayments
In RMB
Relation with the
Name of the companies Amount Date Reason of unsettled
Company
In schedule as the
Mitsubishi Co. Non-related 71,507,229.28
contract
Zhejiang Southern Boiler In schedule as the
Non-related 10,692,300.00
Co., Ltd. contract
Payment to overseas In schedule as the
Non-related 21,957,341.23
suppliers contract
Waldrich Siegen Ltd. In schedule as the
Non-related 7,890,265.60
(Germany) contract
Anqing Huaxia In schedule as the
Non-related 7,245,800.00
Construction Co., Ltd. contract
Total -- 119,292,936.11 -- --
(3) Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the
report period
Not applicable
9. Inventories
(1) Categories of inventory
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 437,710,761.82 437,710,761.82 417,209,026.14 417,209,026.14
Product in process 647,717,334.50 8,910,665.94 638,806,668.56 631,260,384.98 8,910,665.94 622,349,719.04
Products in stock 576,754,429.42 158,244.58 576,596,184.84 425,734,735.91 158,244.58 425,576,491.33
Material in
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
circulation
Consumable
biological asset
Total 1,662,182,525.74 9,068,910.52 1,653,113,615.22 1,474,204,147.03 9,068,910.52 1,465,135,236.51
(2) Inventory impairment provision
In RMB
Openning balance of Decreased this period Closing balance of
Categories Provided this term
book value Written back Transferred book value
Raw materials
Product in process 8,910,665.94 8,910,665.94
Products in stock 158,244.58 158,244.58
Material in circulation
Consumable biological
asset
Total 9,068,910.52 0.00 0.00 0.00 9,068,910.52
(3) Inventory impairment provisions
Percentage of amount written
Basis of providing impairment
Items Reason of written back back in the balance of the
provision
inventory at end of report term
Raw materials
Provided at the balance of
Products in stock inventory over the realizable net
value
Provided at the balance of
Product in process inventory over the realizable net
value
Material in circulation
Consumable biological asset
Statement on inventories:
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
10. Other current assets
In RMB
Items End of term Beginning of term
Financial products 5,000,000.00
Amortizable expenses such as rental 4,009,257.70 661,299.59
Total 4,009,257.70 5,661,299.59
Statement on other current assets
Amortizable expenses such as rental and power supply
11. Disposable financial asset
(1) Sellable financial assets
None
(2) Long-term liability investment in the sellable financial assets
None
12. Investment held to mature
None
(2) Investment held to mature disposed in the report period before mature
None
13. Long-term receivables
None
15. Long-term equity investment
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(1) Details of long-term equity investment
In RMB
Statement on Impairment
Percentage of Voting
Calculating Openning Changed Closing differences between Impairment provision Cash dividend of
Company invested in Initial costs share in the power in
basis balance by balance the shareholding and provision provided this the current term
firm % the firm %
voting rights term
Zhejiang Tianhang
Steam Turbine Auxiliary Cost basis 10,000,000.00 10,000,000.00 10,000,000.00 33.33% 33.33% 1,200,000.00
Machinery Co., Ltd.
Zhejiang Sanxin
Automatic Engineering Cost basis 600,000.00 600,000.00 600,000.00 6% 6% 0.00
Co., Ltd.
Greenesol Co. (India) Cost basis 5,534,773.22 5,534,773.22 5,534,773.22 37% 37% 0.00
Bank of Hangzhou Co.,
Cost basis 390,954,040.00 390,954,040.00 390,954,040.00 6.92% 6.92% 23,118,640.00
Ltd.
Hangzhou Steam
Turbine Engineering Cost basis 30,000,000.00 30,000,000.00 30,000,000.00 15% 15%
Co., Ltd.
Hangzhou Changdi
Invesmtnet Partnership
Cost basis 10,000,000.00 10,000,000.00 10,000,000.00 3.33% 3.33%
(partnership with limited
liability)
Zhejiang Zhongkong
Solar Energy Cost basis 15,000,000.00 15,000,000.00 15,000,000.00 6% 6%
Technologies Co., Ltd.
Total -- 462,088,813.22 462,088,813.22 0.00 462,088,813.22 -- -- -- 0.00 0.00 24,318,640.00
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Statements on long-term equity investment:
(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) The Company has no major influence on India Greeesol Co., therefore cost basis is adopted in accounting
of this long-term equity investment
16. Investment property
None
17. Fixed assets
(1) Particulars of fixed assets
In RMB
Openning balance Decreased this Closing balance of
Items Increased this period
of book value period book value
I. Total of original book
1,554,236,301.63 24,898,299.48 25,236,908.74 1,553,897,692.37
value
Incl. House & Buildings 453,446,306.18 2,488,784.39 2,203,530.68 453,731,559.89
Equipment & machinery 970,628,520.05 11,994,421.80 6,157,120.86 976,465,820.99
Transportation facilities
Office equipment 130,161,475.40 10,415,093.29 16,876,257.20 123,700,311.49
Openning balance Increased this Provided current Decreased this Balance at end of
--
of book value term term period current term
II. Total of accumulative
602,362,490.91 0.00 53,882,487.68 5,965,198.60 650,279,779.99
depreciation
Incl. House & Buildings 117,855,020.10 6,751,358.79 46,043.50 124,560,335.39
Equipment & machinery 413,636,061.23 41,184,695.79 2,705,211.83 452,115,545.19
Transportation facilities
Office equipment 70,871,409.58 5,946,433.10 3,213,943.27 73,603,899.41
Openning balance Balance at end of
-- --
of book value current term
III. Total of net book value
951,873,810.72 -- 903,617,912.38
of fixed assets
Incl. House & Buildings 335,591,286.08 -- 329,171,224.50
Equipment & machinery 556,992,458.82 -- 524,350,275.80
Transportation facilities --
Office equipment 59,290,065.82 -- 50,096,412.08
IV. Total of impairment
6,941,202.95 -- 6,941,202.95
provisions
Incl. House & Buildings 1,504,928.24 -- 1,504,928.24
Equipment & machinery 4,119,950.91 -- 4,119,950.91
Transportation facilities --
Office equipment 1,316,323.80 -- 1,316,323.80
V. Total of fixed asset book
944,932,607.77 -- 896,676,709.43
value
Incl. House & Buildings 334,086,357.84 -- 327,666,296.26
Equipment & machinery 552,872,507.91 -- 520,230,324.89
Transportation facilities --
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Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Office equipment 57,973,742.02 -- 48,780,088.28
Depreciated this period RMB53,882,487.68; transferred from construction in process to fixed of RMB 16,202,219.89;
(3) Fixed assets leased by finance
[V] Applicable [] Not applicable
In RMB
Items Original book value Accumulated depreciation: Net book value
Houses & buildings 6,330,123.35 185,683.62 6,144,439.73
Equipment & machinery 28,829,190.35 2,536,968.75 26,292,221.60
Transportation facilities
Sub-total 35,159,313.70 2,722,652.37 32,436,661.33
(4) Fixed assets leased out on fiance
[] Applicable; [V] Not applicable
(5) Fixed assets held for sale at end of period
In RMB
Predicted disposal
Items Book value fair value Predicted disposal date
expense
(6) Fixed asset not licensed yet
Items Reason for not granted Expected date of grant
Facotries and offices newly built by
Under normal filing process Within 2012
Zhongneng Co.
18. Construction-in-process
（1）
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Reconstruction of south and
north high-voltage 1,473,817.98 1,473,817.98 6,096,454.59 6,096,454.59
transformer stations
Workshop reconstruction of
2,319,864.99 2,319,864.99 2,319,864.99 2,319,864.99
No.1 factory
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New 50/20t VF crane 1,789,137.40 1,789,137.40
Imported universal milling
1,338,213.26 1,338,213.26 1,338,213.26 1,338,213.26
head by factory II
Reconstruction of warehouse
of Auxiliary Co. to office 1,180,772.41 1,180,772.41 1,180,772.41 1,180,772.41
building
Reconstruction of cool
welding workshop to 2-floor 1,150,687.09 1,150,687.09 1,136,460.61 1,136,460.61
warehouse
Equipment moving and site
1,127,254.88 1,127,254.88 1,126,554.88 1,126,554.88
cleaning of factory I
Environment project of
1,013,012.89 1,013,012.89 1,013,012.89 1,013,012.89
temporary yard
Interior environment and
991,612.05 991,612.05 991,612.05 991,612.05
ground rebuilding
Ground rail of preparation
956,242.11 956,242.11 954,554.11 954,554.11
workshop
Aircondition equipment of
1,086,147.16 1,086,147.16 948,753.78 948,753.78
heavy crane in factory II
Reconstruction of electronic
system and pipe system of 851,234.95 851,234.95 851,234.95 851,234.95
factory No.1
24m 32/16t VF crane of
822,255.53 822,255.53
general assembling workshop
Reconstruction of power
supply of new turbine 780,745.14 780,745.14 779,475.14 779,475.14
workshop
15-10PF digital milling
770,991.84 770,991.84 770,991.84 770,991.84
machine electronic reforming
The New Testing Workshop,
Reconstruction of office 641,521.00 641,521.00 641,521.00 641,521.00
building
Reconstruction of power
1,925,618.44 1,925,618.44 628,534.03 628,534.03
supply of turbine workshop
Office building of steam
turbine R&D reconstructed 963,720.07 963,720.07 579,123.00 579,123.00
from Q&A workshop
Repainting of office building 875,920.00 875,920.00 571,494.00 571,494.00
Purchasing of computer and
569,083.76 569,083.76
network facilities
Equipment, digital milling
machine, reforming of driving 483,457.22 483,457.22 483,457.22 483,457.22
system
General Assembling, 25m
testing platform, oil pipe 477,502.00 477,502.00 477,502.00 477,502.00
system reforming
Reconstruction of rain tube of
446,975.21 446,975.21 446,975.21 446,975.21
road No.3
Quality Inspection, Lube oil
399,592.22 399,592.22 399,592.22 399,592.22
meter
Steam turbine for
supplementary water supply
349,706.80 349,706.80 349,706.80 349,706.80
of million class nuclear power
plant
Reconstruction of main
1,767,807.00 1,767,807.00 259,666.00 259,666.00
entrance of preparation house
Reconstruction of electric
system of milling center of 486,752.14 486,752.14
No.2 Heavy Truck
Portable magnetic filting
recycling box of General 323,076.92 323,076.92
Assembling
Triple coord (laser) measuring
752,136.72 752,136.72
system
Purchasing of computer and
1,322,773.50 1,322,773.50
network facilities
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Workshop cleaning, gass,
water, power, and auxiliary 612,483.10 612,483.10
system
Workshop phase III of Casting
21,453,019.83 21,453,019.83 14,608,604.29 14,608,604.29
Co.
Othe small items 18,620,240.74 18,620,240.74 13,865,486.08 13,865,486.08
Total 66,942,899.66 0.00 66,942,899.66 56,000,094.04 0.00 56,000,094.04
89
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(2) Material change in construction-in-progress
In RMB
Including: Capitalizing
Transferred Accumulate
Beginning of Increased this Other Investment on interest ratio of
Projects Budget into fixed Progress of interest Fund recourse End of term
term period decreases budget (%) capitalized interest in
assets capitalized
this term current period
Reconstructio
n of south and
north
5,800,000.00 6,096,454.59 3,066.00 4,625,702.61 1,473,817.98
high-voltage
transformer
stations
Workshop
reconstruction
2,100,000.00 2,319,864.99 0.00 0.00 2,319,864.99
of No.1
factory
New 50/20t
2,400,000.00 1,789,137.40 71,153.29 1,860,290.69 0.00
VF crane
Imported
universal
1,400,000.00 1,338,213.26 0.00 0.00 1,338,213.26
milling head
by factory II
Reconstructio
n of
warehouse of
3,800,000.00 1,180,772.41 0.00 0.00 1,180,772.41
Auxiliary Co.
to office
building
Reconstructio
n of cool
welding
8,100,000.00 1,136,460.61 14,226.48 0.00 1,150,687.09
workshop to
2-floor
warehouse
Equipment
moving and
800,000.00 1,126,554.88 700.00 0.00 1,127,254.88
site cleaning
of factory I
Environment 980,000.00 1,013,012.89 0.00 0.00 1,013,012.89
90
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project of
temporary
yard
Interior
environment
650,000.00 991,612.05 0.00 0.00 991,612.05
and ground
rebuilding
Ground rail of
preparation 1,550,000.00 954,554.11 1,688.00 0.00 956,242.11
workshop
Aircondition
equipment of
2,500,000.00 948,753.78 137,393.38 0.00 1,086,147.16
heavy crane in
factory II
Reconstructio
n of electronic
system and 900,000.00 851,234.95 0.00 0.00 851,234.95
pipe system of
factory No.1
24m 32/16t
VF crane of
general 900,000.00 822,255.53 0.00 822,255.53 0.00
assembling
workshop
Reconstructio
n of power
supply of new 670,000.00 779,475.14 1,270.00 0.00 780,745.14
turbine
workshop
15-10PF
digital milling
machine 3,400,000.00 770,991.84 0.00 0.00 770,991.84
electronic
reforming
The New
Testing
Workshop,
700,000.00 641,521.00 0.00 0.00 641,521.00
Reconstructio
n of office
building
Reconstructio
n of power 1,760,000.00 628,534.03 1,297,084.41 0.00 1,925,618.44
supply of
91
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
turbine
workshop
Office
building of
steam turbine
R&D 1,500,000.00 579,123.00 384,597.07 0.00 963,720.07
reconstructed
from Q&A
workshop
Repainting of
office 800,000.00 571,494.00 304,426.00 0.00 875,920.00
building
Purchasing of
computer and
2,000,000.00 569,083.76 1,482,987.17 729,297.43 1,322,773.50
network
facilities
Equipment,
digital milling
machine,
400,000.00 483,457.22 0.00 0.00 483,457.22
reforming of
driving
system
General
Assembling,
25m testing
510,000.00 477,502.00 0.00 0.00 477,502.00
platform, oil
pipe system
reforming
Reconstructio
n of rain tube 400,000.00 446,975.21 0.00 0.00 446,975.21
of road No.3
Quality
Inspection, 500,000.00 399,592.22 0.00 0.00 399,592.22
Lube oil meter
Steam turbine
for
supplementary
water supply 6,620,000.00 349,706.80 0.00 0.00 349,706.80
of million
class nuclear
power plant
Reconstructio
1,200,000.00 259,666.00 1,508,141.00 0.00 1,767,807.00
n of main
92
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
entrance of
preparation
house
Reconstructio
n of electric
system of
0.00 486,752.14 0.00 486,752.14
milling center
of No.2
Heavy Truck
Portable
magnetic
filting
0.00 323,076.92 0.00 323,076.92
recycling box
of General
Assembling
Triple coord
(laser)
0.00 752,136.72 0.00 752,136.72
measuring
system
Workshop
cleaning, gass,
water, power, 0.00 612,483.10 0.00 612,483.10
and auxiliary
system
Workshop
phase III of 34,100,000.00 14,608,604.29 6,844,415.54 0.00 21,453,019.83
Casting Co.
Othe small
13,865,486.08 14,098,730.10 8,164,673.63 1,179,301.81 18,620,240.74
items
Total 86,440,000.00 56,000,094.04 28,324,327.32 16,202,219.89 1,179,301.81 -- -- 0.00 0.00 -- -- 66,942,899.66
Statements on change of construction-in-process:
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19. Project material
None
20. Liquidation of fixed assets
None
21. Production biological assets
Not applicable
22. Petrolum assets
Not applicable
23. Intangible assets
(1) Profiles of intangible assets
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Total of original book
327,510,620.46 2,490,061.94 152,600.00 329,848,082.40
value
Land using right 116,228,170.57 1,240,061.94 0.00 117,468,232.51
Operation rights of waste
199,420,000.00 0.00 0.00 199,420,000.00
heat power plant
Mining rights 11,439,208.01 1,250,000.00 0.00 12,689,208.01
Others 423,241.88 0.00 152,600.00 270,641.88
II. Total of accumulative
40,788,217.70 12,511,384.82 38,210.04 53,261,392.48
amortizing
Land using right 17,313,125.04 1,427,615.68 18,740,740.72
Operation rights of waste
22,857,130.00 10,857,140.00 33,714,270.00
heat power plant
Mining rights 550,976.51 218,853.48 769,829.99
Others 66,986.15 7,775.66 38,210.04 36,551.77
III. Total of book net value
286,722,402.76 2,490,061.94 12,625,774.78 276,586,689.92
of intangible assets
Land using right 98,915,045.53 1,240,061.94 1,427,615.68 98,727,491.79
Operation rights of waste
176,562,870.00 0.00 10,857,140.00 165,705,730.00
heat power plant
Mining rights 10,888,231.50 1,250,000.00 218,853.48 11,919,378.02
Others 356,255.73 0.00 122,165.62 234,090.11
IV. Total of impairment
9,800,000.00 0.00 0.00 9,800,000.00
provisions
Land using right
Operation rights of waste
9,800,000.00 9,800,000.00
heat power plant
Mining rights
Others
94
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Total of book value of
276,922,402.76 2,490,061.94 12,625,774.78 266,786,689.92
intangible assets
Land using right 98,915,045.53 1,240,061.94 1,427,615.68 98,727,491.79
Operation rights of waste
166,762,870.00 0.00 10,857,140.00 155,905,730.00
heat power plant
Mining rights 10,888,231.50 1,250,000.00 218,853.48 11,919,378.02
Others 356,255.73 0.00 122,165.62 234,090.11
Amortized this period is RMB12,511,384.82.
(2) R&D expenses
In RMB
Decreased this period
Accounted into
Items Beginning of term Increased this period Recognized as End of term
current income
intangible asset
account
R&D expenses 0.00 22,025,465.96 22,025,465.96 0.00 0.00
Total 0.00 22,025,465.96 22,025,465.96 0.00 0.00
24. Goodwill
None
25. Long-term expenses to be amortized
In RMB
At beginning of Increased this Amortized this Reason of other
Items Other decrease At end of term
term term term decreasing
Redecoration 4,621,769.14 81,109.09 153,953.39 4,548,924.84
Others 338,168.08 0.00 78,853.35 259,314.73
Road
750,000.00 750,000.00
construction
Total 4,959,937.22 831,109.09 153,953.39 78,853.35 5,558,239.57 --
Statement on long-term amortizable expenses:
26. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
[V] Applicable [] Not applicable
Deferred income tax assets and liabilities already recognized
In RMB
95
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Items End of term Beginning of term
Deferred income tax assets:
Asset impairment provision 73,392,914.16 73,394,171.66
Openning expenses
Neutralizable losses
Unrealized profit in consolidated accounts 11,719,491.74 13,024,185.82
Other deductable provisional difference 1,879,998.74 1,879,998.74
Subtotal 86,992,404.64 88,298,356.22
Deferred income tax liabilities:
Evaluation of transactional financial instruments
and derivate financial instruments
Fluctuation of fair value of disposable financial
assets accounted into capital reserves
Temporary differences of other tax payables 1,041,180.44 1,041,180.44
Sub-total 1,041,180.44 1,041,180.44
Details of taxable differences and deductible differences
In RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Temporary differences of other tax payables 6,941,202.95 6,941,202.95
Sub-total 6,941,202.95 6,941,202.95
Neutralizable different items
Bad debt provision 430,891,522.57 430,891,522.57
Inventory impairment provision 9,068,910.52 9,068,910.52
Fixed asset impairment provision 6,941,202.95 6,941,202.95
Impairment provision of intangible asset 9,800,000.00 9,800,000.00
Unrealized profit in consolidated accounts 73,975,325.87 73,975,325.87
Other deductable provisional difference 9,546,096.32 9,546,096.32
Sub-total 540,223,058.23 540,223,058.23
96
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27. Detail of asset impairment provision
In RMB
Openning balance Increased this Decreased this period Closing balance
Items
of book value period Written back Transferred of book value
I. Bad debt provision 430,896,552.57 3,740,340.85 434,636,893.42
II. Inventory impairment
9,068,910.52 0.00 0.00 0.00 9,068,910.52
provision
III. Disposable financial asset
impairment provision
IV. Investment equity hold till
expiring impairment provision
V. Long-term equity
investment impairment 0.00 0.00
provision
VI. Property investment
impairment provision
VII. Fixed asset impairment
6,941,202.95 6,941,202.95
provision
VIII. Project material
impairment provision
IX. Construction in process
0.00 0.00
impairment provision
X. Production biological
material asset impairment
provision
Incl. Mature production
biological material asset
impairment provision
XI. Gas & oil asset
impairment provision
XII. Intangible asset
9,800,000.00 0.00 9,800,000.00
impairment provision
XIII. Goodwill impairment
provision
XIV. Other
Total 456,706,666.04 3,740,340.85 0.00 0.00 460,447,006.89
97
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Statement on details of asset impairment:
28. Other non-current assets
In RMB
Items End of term Beginning of term
Other long-term invest 25,000,000.00 25,000,000.00
Total 25,000,000.00 25,000,000.00
Statement on other non-recurring assets
Machinery Co. has invested RMB25 million in October 2011 to purchase 25 million units of “Hangzhou
Chengjian Development Group Fuyang Jinqiao Investment Financing Trust Plan”. Hangzhou Industrial and
Commercial Trust Co., Ltd. is the trustee, and China Construction Bank Zhejiang Branch is the consignee. The
scale of the plan is 400 million units with RMB1 each and term of 36 months. Machinery Co. is the priority
beneficiary of the trust, and it is expected 11.6% of annual interest.
29. Short-term loans
(1) Categories of short-term loans
In RMB
Items End of term Beginning of term
Loan by pledge
Mortgage loan 110,400,000.00 83,000,000.00
Guarantee loan 170,000,000.00 180,000,000.00
Credit loan
Import trade borrowing 16,317,423.50 16,317,423.50
Total 296,717,423.50 279,317,423.50
30. Transactional financial liabilities
Not applicable
31. Notes payable
In RMB
Categories End of term Beginning of term
Commercial acceptance
Bank acceptance 103,180,000.00 139,807,194.00
Total 103,180,000.00 139,807,194.00
Amount will mature in next period is RMB103,180,000.00
98
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32. Account payable
（1）
In RMB
Items End of term Beginning of term
Trade 716,673,358.47 489,776,297.08
Payment for equipment and projects 74,328,969.56 100,987,109.16
Total 791,002,328.03 590,763,406.24
(2) Account payable to shareholders holding 5% or over of the Company’s shares in the report period
[v] Applicable [] Not applicable
Name of the companies End of term Beginning of term
Hangzhou Steam Turbine Group 1,894,833.98 6,743.73
Total 1,894,833.98 6,743.73
33. Accounts received in advance
（1）
In RMB
Items End of term Beginning of term
Trade 1,554,491,658.62 1,574,022,744.91
Total 1,554,491,658.62 1,574,022,744.91
(2) Prepayment collected from shareholders holding 5% or over of the Company’s shares in the report
period.
[V] Applicable [] Not applicable
In RMB
Name of the companies End of term Beginning of term
HSTG 888,000.00 444,000.00
Total 888,000.00 444,000.00
34. Wage payable
In RMB
99
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Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Wage, bonus,
3,834,014.64 222,406,130.22 218,428,208.49 7,735,172.37
allowances
II. Employees’
28,871,763.50 21,810,954.45 7,062,016.25
welfare
III. Social security 8,624,195.30 43,854,527.41 40,874,150.63 12,336,517.43
Incl. Medical
2,876,174.79 12,161,565.63 12,769,086.85 1,875,043.65
insurance
Basic pension 3,784,616.19 18,888,198.10 19,969,774.83 3,374,807.57
Unemployment
536,521.96 2,634,747.85 2,774,327.05 419,788.74
insurance
Labor injury
192,112.95 789,129.16 853,792.76 149,292.36
insurance
Breeding insurance 203,302.17 1,032,630.21 1,091,390.99 145,612.98
Others 1,031,467.24 8,348,256.46 3,415,778.15 6,371,972.13
IV. Housing fund 242,003.36 20,497,123.00 20,466,957.00 250,835.36
V. Dismissing
102,532.49 102,532.49 0.00
welfare
VI. Others 16,449,010.24 19,294,418.62 25,018,099.16 9,973,662.29
Annual fee 12,339,778.31 9,857,329.27 18,232,671.70 3,212,768.47
Trade Union finance 1,558,884.81 4,261,907.59 4,676,099.01 1,144,693.39
Training expenses 2,550,347.12 5,175,181.76 2,109,328.45 5,616,200.43
Total 29,149,223.54 335,026,495.24 326,700,902.22 37,358,203.70
35. Tax payable
In RMB
Items End of term Beginning of term
VAT -4,465,875.84 10,080,726.00
Consumption tax
Business tax 253,200.26 1,495,839.19
Enterprise income tax 43,857,166.66 62,642,032.14
Personal income tax 1,486,845.58 6,324,656.45
City maintenance and construction tax 1,118,395.49 3,702,808.07
Property tax 0.00 407,395.88
Education surtax 501,114.19 1,801,707.20
Local education surcharges 333,893.67 841,466.53
Stamp tax 55,620.15 188,363.34
water conservancy special fund 2,543,772.31 3,107,445.76
Land using tax 868,205.00 113,798.44
Total 46,552,337.47 90,706,239.00
36. Tax disbursable
In RMB
100
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Items End of term Beginning of term
Long-term loan interest with instalments
Interest of company bond
Short-term borrowing interests payable 31,740.00 260,577.78
Total 31,740.00 260,577.78
37. Dividend payable
In RMB
Name of the companies End of term Beginning of term Reason of overdue for one year
Hangzhou Steam Turbine Group 9,000,000.00 0.00
Total 9,000,000.00 0.00 --
Statement on dividend payable
Dividend of Hangzhou Steam Turbine Machinery &
Equipment Co., Ltd. for 2011.
38. Other account payable.
（1）
In RMB
Items End of term Beginning of term
Deposite 1,824,543.90 8,814,239.05
Payable to other company 253,058,739.66 205,321,783.18
Others 8,858,390.53 13,166,052.59
Total 263,741,674.09 227,302,074.82
(2) Other account payable due to shareholders with 5% or over of the Company’s shares in the report
period
√ applicable □ not applicable
In RMB
Name of the companies End of term Beginning of term
Hangzhou Steam Turbine Group 4,250,448.65 26,268,886.37
Total 4,250,448.65 26,268,886.37
101
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(3) Statement on other payable accounts with larger amount
Hangzhou Steam Turbine 228,195,141.08 Loans and interests
Engineering Co., Ltd.
39. Predicted liabilities
None
40. Non-current liabilities due in one year
（1）
In RMB
Items End of term Beginning of term
Long-term loans due in 1 year 10,000,000.00 10,000,000.00
Bond payable due in 1 year
Long-term payable due in 1 year
Total 10,000,000.00 10,000,000.00
(2) Long-term loans due in 1 year
Long-term loans due in 1 year
In RMB
Items End of term Beginning of term
Loan by pledge
Mortgage loan 10,000,000.00 10,000,000.00
Guarantee loan
Credit loan
Total 10,000,000.00 10,000,000.00
102
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Top 5 long-term loans due in 1 year
In RMB
End of term Beginning of term
Loan Commence Terminate Interest rate Amount of Amount of Amount of Amount of
Currency
provided by date date % foreign original foreign original
currency currency currency currency
Guizhou
10,000,000.0 10,000,000.0
Countryside Dec. 24 2010 Dec. 23 2012 CNY 8%
0 0
Trust Union
10,000,000.0 10,000,000.0
Total -- -- -- -- -- --
0 0
41. Other current liability
None
42. Long-term loans
(1) Categories of long-term loans
In RMB
Items End of term Beginning of term
Loan by pledge
Mortgage loan 25,000,000.00 25,000,000.00
Guarantee loan
Credit loan 100,000,000.00 100,000,000.00
Total 125,000,000.00 125,000,000.00
Statement on categories of long-term loans:
103
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(2) Top 5 long-term loans
In RMB
End of term Beginning of term
Loan Commence Terminate Interest rate Amount of Amount of Amount of Amount of
Currency
provided by date date % foreign original foreign original
currency currency currency currency
China Import
& Export
100,000,000. 100,000,000.
Bank, Feb. 16 2011 Feb. 16 2013 CNY
00 00
Zhejiang
Branch
Guizhou
Countryside Jan 7 2011 Jan 7 2013 CNY 9.72% 3,000,000.00 3,000,000.00
Trust Union
Guizhou
Countryside Jan 10 2011 Jan 10 2013 CNY 9.72% 5,000,000.00 5,000,000.00
Trust Union
Guizhou
Countryside Jan 17 2011 Jan 17 2013 CNY 9.72% 6,000,000.00 6,000,000.00
Trust Union
Guizhou
Countryside Jan 18 2011 Jan 18 2013 CNY 9.72% 5,000,000.00 5,000,000.00
Trust Union
Guizhou
Countryside Jan 24 2011 Jan 24 2013 CNY 9.72% 3,000,000.00 3,000,000.00
Trust Union
Guizhou
Countryside Mar 15 2011 Mar 15 2013 CNY 9.72% 3,000,000.00 3,000,000.00
Trust Union
125,000,000. 125,000,000.
Total -- -- -- -- -- --
00 00
Statement on long-term loans. For long-term loans overdue but extended for another period, please provide the conditions, principal,
interest rate, and repayment arrangement.
43. Bond payable
None
104
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44. Long term payables
(1) Top 5 long-term payables
In RMB
Unit Term Initial amount Interest rate % Interest payable Closing balance Condition
Zhejiang Yiyang
2011/07/01-2014/
Energy Tech Co., 38,880,000.00 6.65% 27,444,194.55
06/31
Ltd.
Drawing in
administrative 330,000.00
restructuring
(2) Details of finance leasing payments in long-term payables
In RMB
End of term Beginning of term
Unit
Foreign Currency RMB Foreign Currency RMB
Total
45. Special payables
None
46. Other non-current liabilities
In RMB
Items Closing balance of book value Openning balance of book value
Deferred income (government subsidy) 24,186,374.66 17,310,045.00
Total 24,186,374.66 17,310,045.00
105
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47. Capital Share
In RMB
Changed in the report period (+,-)
Beginning of
Issuing of new Transferred End of term
term Bonus shares Others Sub-total
shares from reserves
Total of capital
628,342,000 125,668,400 125,668,400 754,010,400
shares
48. Shares in stock
Not applicable
49. Special reserves
Not applicable
50. Capital reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Capital premium (share capital
81,815,220.00 81,815,220.00
premium)
Other capital reserves 57,775,125.09 57,775,125.09
Total 139,590,345.09 139,590,345.09
51. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus reserves 453,183,370.20 453,183,370.20
Optional surplus reserves
Preserved fund
Enterprise development fund
Others
Total 453,183,370.20 0.00 0.00 453,183,370.20
106
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52. Providing of common risk provisions
Not applicable
53. Retained profit
In RMB
Percentage of drawing or
Items Amount
allocation
Adjustment on retained profit of previous year 2,094,147,226.72 --
Total of retained profit at beginning of year
--
adjusted (+ for increase, - for decrease)
Retained profit adjusted at beginning of year 2,094,147,226.72 --
Plus: Net profit attributable to owners of the
337,275,897.42 --
parent company
Less: Statutory surplus reserves
Optional surplus reserves
Common risk provisions
Common share dividend payable 188,502,600.00
Common share dividend transferred to capital
125,668,400.00
share
Retained profit at the end of term 2,117,252,124.14 --
54. Operational revenue and costs
(1) Operation incomes and costs
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 2,132,132,099.78 2,067,638,999.67
Other business income 6,031,623.98 9,400,988.24
Operation cost 1,355,776,212.37 1,260,362,576.79
(2) Business segments (on industries)
[V] Applicable [] Not applicable
107
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In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Boiler and power machine
1,761,008,351.13 1,100,362,901.96 1,556,636,711.20 910,676,136.79
manufacture
Casting 33,867,196.40 28,709,509.85 35,696,447.86 29,539,353.30
Petrochemical and other special
39,473,031.69 32,840,485.68 63,803,202.54 42,168,940.64
machineries
Packaged equipment for waste
59,196,597.29 52,254,212.57 217,405,735.04 144,107,103.00
heat power plant
Other special equipment 238,586,923.27 139,505,068.46 194,096,903.03 125,547,706.64
Total 2,132,132,099.78 1,353,672,178.52 2,067,638,999.67 1,252,039,240.37
(3) Business segments (on products)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Industrial steam turbine 1,761,008,351.13 1,100,362,901.96 1,556,636,711.20 910,676,136.79
Casting products 33,867,196.40 28,709,509.85 35,696,447.86 29,539,353.30
Auxiliary machinery 39,473,031.69 32,840,485.68 63,803,202.54 42,168,940.64
Packaged equipment for waste
59,196,597.29 52,254,212.57 217,405,735.04 144,107,103.00
heat power plant
Others 238,586,923.27 139,505,068.46 194,096,903.03 125,547,706.64
Total 2,132,132,099.78 1,353,672,178.52 2,067,638,999.67 1,252,039,240.37
(4) Business segments (on regions)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Domestic 1,866,613,768.57 1,135,912,434.19 1,794,411,998.69 1,040,862,199.19
Overseas 265,518,331.21 217,759,744.33 273,227,000.98 211,177,041.18
Total 2,132,132,099.78 1,353,672,178.52 2,067,638,999.67 1,252,039,240.37
108
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(5) Revenue from top five customers
In RMB
Name of clients Major business turnover Percentage in total turnover of the Company %
Shenyang Turbine Machinery Co.,
366,481,487.15 17.14%
Ltd.
Xi’an Shanggu Power Co., Ltd. 277,756,762.70 12.99%
Chongqing Zhongjie Sanfeng
204,475,913.77 9.56%
Energy Co., Ltd.
Hengli Petrolum Dalian Co., Ltd. 68,803,418.76 3.22%
MADHUCON PROJECTS
62,506,563.00 2.92%
LIMTED (India)
Total 980,024,145.38 45.83%
55. Income from contract projects
Not applicable
56. Business tax and surcharge
In RMB
Occurred in previous
Items Occurred current term Rate
term
Consumption tax
Business tax 755,217.31 1,303,411.81
City maintenance and construction
10,577,455.73 8,044,630.11
tax
Education surtax 4,604,424.80 3,612,786.45
Resource tax
Local education surcharges 3,069,088.78 2,227,051.03
Total 19,006,186.62 15,187,879.40 --
Statement on operation tax and surcharges:
57. Income from fair value fluctuation
Not applicable
109
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
58. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on cost basis 24,318,640.00 24,118,640.00
Long-term equity investment gains on equity basis
Investment gains from disposal of long-term equity
595,321.44
investment
Investment gains in the period of holding
transactional financial assets
Gains from investment held to mature in the period
of holding
Investment gains in period of holding disposable
financial assets
Investment gains from disposal of transactional
financial assets
Investment gains from investment held to mature
Gains from sellable financial assets and similar
Others 5,501,934.21
Total 30,415,895.65 24,118,640.00
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Bank of Hangzhou Co., Ltd. 23,118,640.00 23,118,640.00
Zhejiang Tianhang Steam Turbine
1,200,000.00 1,000,000.00
Auxiliary Machinery Co., Ltd.
Total 24,318,640.00 24,118,640.00 --
110
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59. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
I. Bad debt loss 3,740,340.85 41,493,544.10
II. Inventory impairment loss
III. Disposable financial asset impairment
IV. Impairment loss from investment held till expiration
V. Impairment loss from long-term stock investment
VI. Property investment impairment loss
VII. Fixed asset impairment loss
VIII. Engineering goods impairment loss
IX. Construction-in-process impairment loss
X. Production goods impairment loss
XI. Gas and fuel asset impairment loss
XII. Intangible asset impairment loss
XIII. Goodwill impairment loss
XIV. Other
Total 3,740,340.85 41,493,544.10
60. Non-operational income
（1）
In RMB
Items Occurred current term Occurred in previous term
Total of gains from disposal of non-current assets 459,667.25 88,033.56
Incl. Gains from disposal of fixed assets 459,667.25 88,033.56
Gains from disposal of intangible assets
Gains from debt reorganization
Gains from exchange of non-monetary assets
Donation received
Government subsidy 1,858,213.34 7,200.00
Compensation income [note] 1,910,045.13 1,367,508.04
Others 201,621.30 5,632.00
Tax refunding [Note] 3,562,386.66
Total 7,991,933.68 1,468,373.60
111
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(2) Details of government subsidies
In RMB
Items Occurred current term Occurred in previous term Remarks
Government subsidy for industrial
997,380.00
projects for the 1st half of 2010
Award 70,000.00
National budget for key
energy-saving and recycling
demonstration projects and key 253,888.89
pollution treatment projects (the 2nd
and 3rd batch), 2011
Industry and Information
Development Special Fund of
Guizhou Province in 2011 (the 2nd 126,944.45
batch of energy saving and resource
using projects)
Award 110,000.00 7,200.00
Award 300,000.00
Total 1,858,213.34 7,200.00 --
Statement on non-operational income
[Note]: This was the favorable policies according to the agreement entered by the subsidiary of Zhongneng Co. and the local
government in June 2009, namely the Agreement on Investment in the 2500 ton Residue Thermal Power Plant.
61. Non-operational expenditures
In RMB
Items Occurred current term Occurred in previous term
Total of loss from disposal of non-current assets 360,981.96 118,959.38
Incl. Loss from disposal of fixed assets 360,981.96 118,959.38
Loss from disposal of intangible assets
Losses from debt restructuring
Loss from exchange of non-monetary assets
Donations 1,192,547.50 2,961,464.60
Penalty paid out 194,924.90 52,155.00
water conservancy special fund 2,906,695.72 2,769,818.36
Penalty paid 4,200.00 0.00
Penalty payment 531,200.00
Others 54,191.14 38,848.39
Total 5,244,741.22 5,941,245.73
Statement on non-operational expenditures:
62. Income tax expenses
In RMB
112
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Items Occurred current term Occurred in previous term
Income tax calculated according to the law and regulations of
67,426,754.44 72,187,643.00
current term
Adjustment of deferred income tax 1,620,095.64 -733,001.95
Total 69,046,850.08 71,454,641.05
63. Calculation of basic earning per share and diluted earning per share
(1) Calculation process of basic earning per share
Items No. Current term
Net profit attributable to common shareholders of the A 337,275,897.42
Company
Non-recurring gain/loss B 156,672.29
Net profit attributable to common shareholders of the C=A-B 337,432,569.71
Company after deducting of non-recurring gain/loss
Total of shares at beginning of shares D 628,342,000.00
Shares increased due to capitalizing of reserves or share E 125,668,400.00
dividend
Increasing of shares by issuing of new shares or converting F
of debt to shares
Total number of months from the next month of when the G 6
shares are increased to the end of report term
Decrease of shares caused by repurchasing H
Total number of months from the next month of when the I
shares are decreased to the end of report term
Amount of shares reduced J
Number of months in the report term K 6
Weighted average of common shares issued to the outside L=D+E+F×G/K-H 754,010,400.00
×I/K-J
Basic earnings per share M=A/L 0.4473
Basic earning per share after deducting of non-recurring N=C/L 0.4475
gain/loss
(2) Calculation process of diluted earning per share is the same with that of the basic earning per share
113
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64. Other miscellaneous income
In RMB
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
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
Adjustment converted to initially recognized amount of hedging subject
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 0
Statement on other misc income
65. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
Gains from bank interests 5,659,151.93
Government subsidies received 7,034,543.00
Deposit for bidding and others 4,871,680.00
Hunan Liangtian deposit and working capital 14,800,000.00
Others 5,770,817.16
Total 38,136,192.09
114
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
(2) Other cash paid related to operation
In RMB
Items Amount
Business trips 15,897,060.55
Transportation 24,895,340.95
Office expenses 5,155,147.18
Business reception and conference expenses 13,587,415.28
Deposit for bidding and others 10,800,105.62
International travelling 1,929,194.70
Consulting service fee 2,398,441.77
Deposit by custom 9,473,911.56
Property insurance 2,076,406.72
Donations 1,192,547.50
Others 37,594,618.42
Total 125,000,190.25
(3) Other cash received related to investment
In RMB
Items Amount
Retrieving of financial products of the parent company 340,000,000.00
Retrieving of financial products of Zhejiang Turbine Import & Export 85,000,000.00
Retrieving of financial products of Machinery Co. 5,000,000.00
Others 1,993.99
Total 430,001,993.99
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount
Purchasing of financial products by the parent Co. 390,000,000.00
115
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Purchasing of financial products by Zhejiang Turbine Import and Export 175,000,000.00
Others 114.82
Total 565,000,114.82
(5) Other cash received related to financing
In RMB
Items Amount
Total 0
(6) Other cash paid related to financing
In RMB
Items Amount
Share withdrawing of Zhejiang Steam Turbine Technical Package Co., Ltd. 708,350.24
Total 708,350.24
66. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 373,826,030.02 399,862,217.51
Plus: Asset impairment provision 3,740,340.85 41,493,544.10
Fixed asset depreciation, gas and petrol depreciation,
373,826,030.02 399,862,217.51
production goods depreciation
Amortizing of intangible assets 3,740,340.85 41,493,544.10
Amortizing of long-term expenses 53,882,487.68 44,600,906.44
Loss from disposal of fixed assets, intangible assets, and
12,511,384.82 8,180,882.64
other long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 153,953.39 149,806.48
Loss from fair value fluctuation (“-“ for gains) -107,079.13 30,925.82
116
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Financial expenses (“-“ for gains)
Investment losses (“-“ for gains)
Decrease of deferred income tax asset (“-“ for increase) 15,625,642.92 12,043,223.86
Increase of deferred income tax liability (“-“ for decrease) -30,415,895.65 -24,118,640.00
Decrease of inventory (“-“ for increase) -1,305,951.58 -733,001.95
Decrease of operational receivable items (“-“ for increase) 0.00
Increase of operational payable items (“-“ for decrease) -187,978,378.71 -395,235,557.13
Others -232,536,038.90 -102,638,902.61
Cash flow generated by business operation, net 153,417,196.36 324,046,092.60
2. Major investment and financing operation not involving
-- --
with 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 468,365,641.08 663,842,021.79
Less: Initial balance of cash 662,648,725.65 621,373,402.65
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents -194,283,084.57 42,468,619.14
(2) Information about acquisition or disposal of subsidiaries or businesses
In RMB
Supplementary Info. Occurred current term Occurred in previous term
I. Acquisition of subsidiaries and businesses -- --
1. Price to acquire subsidiaries and other businesses
2. Cash and cash equivalents paid to acquire subsidiaries or
businesses
Less: Cash and cash equivalents held by the
subsidiaries and other businesses
3. Net cash paid for acquiring of subsidiaries and other
businesses
4. Net asset of subsidiaries acquired
Current Assets
Non-current assets
117
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Current Liabilities
Non-current liabilities
II. Disposal of subsidiaries and businesses -- --
1. Price to dispose subsidiaries and other businesses
2. Cash and cash equivalents received from disposal of
subsidiaries or businesses
Less: Cash and cash equivalents held by the
subsidiaries and other businesses
3. Net cash received for disposal of subsidiaries and other
-653,509.83
businesses
4. Net asset of subsidiaries disposed
Current Assets
Non-current assets
Current Liabilities
Non-current liabilities
(3) Composition of cash and cash equivalents
In RMB
Items End of term Beginning of term
I. Cash 468,365,641.08 662,648,725.65
Incl: Cash in stock 332,460.60 190,895.11
Bank savings could be used at any time 417,550,028.89 588,331,475.12
Other monetary capital could be used at any time 50,483,151.59 74,126,355.42
Usable money in Central Bank
Money saved in associated financial bodies
Money from associated financial bodies
II. Cash equivalents
Incl. Bond investment due in 3 months
III. Balance of cash and cash equivalents at end of term 468,365,641.08 662,648,725.65
67. Notes to statement of change in owners’ equity
Not applicable
(VIII) Accounting treatment of capital securitilizing
Not applicable
118
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(IX) Related parties and transactions
1. Parent companies of the Company
In RMB
Share of the parent
Name of the Ownership Legal Business Registered Voting power of the Ultimate holder of Organization
Relationship Reg. Add. Currency co. in the Company
parent co. type representative property capital parent company % the Company code
%
Hangzhou Steam Controlling Solely national Hangzhou Limited Hangzhou State
Nie Zhonghai 500,000,000.00 CNY 63.64% 63.64% 143071842
Turbine Group shareholder owned China liability Asset Committee
Particulars about the parent company of the Company
119
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
2. Subsidiaries of the Company
In RMB
Ownership of the Ownership Legal Business Registered Share Voting Organization
Full name of the subsidiary Reg. Add. Currency
subsidiary type representative property capital proportion % power % code
Zhejiang Steam Trubine Packaged Technologies Controlled Hangzhou
Manufacturing 51,000,000.00 CNY 51.84% 51.84% 726600160
Development Co., Ltd. (the Packaged Tech Co.) subsidiaries Zhejiang
Hangzhou Zhongneng Steam Turbine Power Controlled Hangzhou
Manufacturing 92,500,000.00 CNY 51.6% 51.6% 143033969
Co., Ltd. (Zhongneng Co.) subsidiaries Zhejiang
Hangzhou Steam Turbine Casting Co., Ltd. Controlled Hangzhou
Manufacturing 22,000,000.00 CNY 51% 51% 759502452
(Casting Co.) subsidiaries Zhejiang
Hangzhou Steam Turbine Auxiliary Machinery Controlled Hangzhou
Manufacturing 80,000,000.00 CNY 76.5% 76.5% 765491278
Co., Ltd. (Auxiliary Machinery Co.) subsidiaries Zhejiang
Hangzhou Steam Turbine Machinery Equipment Controlled Hangzhou
Manufacturing 30,000,000.00 CNY 52% 52% 759545858
Co., Ltd. (Machinery Equipment Co.) subsidiaries Zhejiang
Hangzhou
Zhejiang Turbine Import and Export Co., Ltd. Commerce 20,000,000.00 CNY 100% 100% 698284761
Zhejiang
3. Joint ventures and affiliates
Not applicable
120
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4. Other related parties
Name of the related parties Relation with the Company Organization code
Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. Affiliate of the Group 710976614
Hangzhou Steam Turbine Sales Co., Ltd. (note) 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 Steam Turbine Industrial Co. Affiliate of the Group 757237210
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
Hangzhou Steam Turbine Engineering Co., Ltd. Affiliate of the Group 583208910
Greenesol Co. (India) Shares held by the Company
5. Related Transactions
(1) Purchasing of goods and services
In RMB
Subjects of the Pricing and Occurred current term Occurred in previous term
Related parties related decision making Portion in similar Portion in similar
Amount Amount
transactions process transactions (%) transactions (%)
Hangzhou Steam Turbine
freight, repairing Price on
Automobile Sales Service 13,364,994.27 0.83% 30,165,617.36
fee agreement
Co., Ltd.
Hangzhou Steam Turbine Price on
Raw materials 548,098.09 0.03% 881,938.00
Industrial Co. agreement
Hangzhou Hangfa Power
Price on
Generating Equipment Generators 90,141,452.99 5.59% 70,819,487.23
agreement
Co., Ltd.
Hangzhou Nanhua
Packaging Price on
Wooden Packaging Co., 8,735,438.36 0.54% 8,670,633.10
materials agreement
Ltd.
Hangzhou Nanfangtongda Price on
Gear boxes 10,625,925.01 0.66% 26,152,478.63
Gears Co., Ltd. agreement
HSTG Technology Technical Price on
14,700.85 0.00
Association development fee agreement
HSTG Technology Technical Price on
480,600.00 0.03%
Association development fee agreement
Total 123,911,209.87 7.68% 136,690,154.32
121
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Sales of goods and services
In RMB
Subjects of the Pricing and Occurred current term Occurred in previous term
Related parties related decision making Portion in similar Portion in similar
Amount Amount
transactions process transactions (%) transactions (%)
Hangzhou Steam Turbine Price on
Steam turbine 45,729,059.81
Power Sales Co., Ltd. agreement
Hangzhou Nanfangtongda Steam turbine, Price on
10,940,170.94
Gears Co., Ltd. parts agreement
Hangzhou Steam Turbine
Price on
Automobile Sales Service parts 800.36 1,627.12
agreement
Co., Ltd.
HSTG Technology Industrial Price on
10,683.76 101,333.33
Association colaboration agreement
Hangzhou Steam Turbine
Industrial Price on
Power Technologies Co., 38,461.54 0.00
colaboration agreement
Ltd.
Sub-total 49,945.66 56,772,191.20
(2) Related trusteeship or contracting
Not applicable
（3） Rental with related parties
The Company is the lender
None
The Company is the undertaker
In RMB
Rental Influence of
Category of Description Amount of
Name of the Name of the Starting Pricing recognized the rental
asset for of the asset to be Ending date
owner tenant date basis in the on the
rent property leased
period Company
Hangzhou
Steam The Houses & January 1, Dec 31
390,696.00
Turbine Company buildings 2012 2012
Group
Hangzhou
Steam Machinery Houses & January 1, Dec 31
334,632.60
Turbine Co. buildings 2012 2012
Group
Hangzhou Packaged
Steam Equipment Houses & January 1, Dec 31
33,228.50
Turbine Co. of the buildings 2012 2012
Group Group
Hangzhou
Steam The Land using January 1, Dec 31 1,340,860.0
Turbine Company right 2012 2012 0
Group
2,099,417.1
Sub-total
0
122
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(4) Related guarantees
In RMB
Amount Completed or
Guarantor Beneficiary Start date Due date
guaranteed not
Hangzhou Steam Turbine Feb. 16 Feb. 16
The Company 100,000,000.00 No
Group 2011 2013
Hangzhou Steam Turbine Packaged Equipment Co. of the Feb 20,
30,000,000.00 Feb 13 2013 No
Group Group 2012
Hangzhou Steam Turbine Packaged Equipment Co. of the Mar 09
20,000,000.00 Apr 09 2012 No
Group Group 2013
Hangzhou Steam Turbine Packaged Equipment Co. of the Apr 27, Apr 23
20,000,000.00 No
Group Group 2012 2013
Hangzhou Steam Turbine Packaged Equipment Co. of the
50,000,000.00 Jul 13 2011 Jul 13 2013 No
Group Group
(5) Capital borrowing with related parties
In RMB
Related parties Amount of demolition Start date Expired on Remarks
Borrow in
Hangzhou Steam Turbine
228,195,141.08 May 8 2012 May 7 2012
Engineering Co., Ltd.
Lend out
(6) Asset transferring and debt reconstruction with related parties
None
6. Receivable and payables due with related parties
Account receivable due from related parties
In RMB
Projects Related parties Amount at end of term Initial ammount
Account receivable Hangzhou Steam Turbine Group 2,176,500.00 1,981,500.00
HSTG Nanfang Sales Co. 20,000.00 20,000.00
Hangzhou Hangfa Power Generating Equipment Co., Ltd. 464,000.00 532,500.00
Hangzhou Steam Turbine Power Technologies Co., Ltd. 18,694,719.38 51,673,119.38
Hangzhou Nanfangtongda Gears Co., Ltd. 4,434.00 1,284,434.00
Greenesol Co. (India) 10,909,557.71 10,909,557.71
Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. 429.09
Sub-total 32,269,640.18 66,401,111.09
Prepayment Hangzhou Hangfa Power Generating Equipment Co., Ltd. 1,350,000.00 1,071,600.00
Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. 223,600.00
Sub-total 1,350,000.00 1,295,200.00
Account payable to related parties
In RMB
123
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2012 Full Text
Projects Related parties Amount at end of term Initial ammount
Hangzhou Steam Turbine
Account payable 1,894,833.98 6,743.73
Group
Hangzhou Steam Turbine
Automobile Sales Service 8,305,994.42 2,224,497.82
Co., Ltd.
Hangzhou Steam Turbine
148,605.24 341,363.25
Industrial Co.
Hangzhou Hangfa Power
Generating Equipment Co., 33,936,655.00 2,609,600.00
Ltd.
Hangzhou Nanhua Wooden
422,342.21 267,587.00
Packaging Co., Ltd.
Hangzhou Nanfangtongda
5,719,375.01
Gears Co., Ltd.
Sub-total 50,427,805.86
Hangzhou Steam Turbine
Prepayment received
Power Sales Co., Ltd.
Hangzhou Steam Turbine
29,401,002.48
Engineering Co., Ltd.
Hangzhou Steam Turbine
888,000.00 444,000.00
Group
Sub-total 30,289,002.48
444,000.00
Hangzhou Steam Turbine
Other account receivable 400,000.00
Group
Hangzhou Hangfa Power
Generating Equipment Co., 403,390.00
Ltd.
Sub-total 803,390.00
Hangzhou Steam Turbine
Other account payable Automobile Sales Service 1,488,109.32 3,184,330.20
Co., Ltd.
Hangzhou Steam Turbine
4,250,448.65 26,268,886.37
Power Group Co., Ltd.
Hangzhou Steam Turbine
228,195,141.08 167,000,000.00
Engineering Co., Ltd.
Sub-total 233,933,699.05 196,453,216.57
(X) Share payment
None
(XI) Contingent Issues
None
(XII) Commitment Issues
None
(XIII) Post-balance-sheet events
None
124
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(XIV) Statement on other material events
None
(XV) Notes to Financial Statements of the Parent Company
1. Account receivable
(1) Account receivable
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on % on % on %
%
Receivables with major
individual amount and bad
debt provision provided
individually
Receivables provided bad debt provision in groups
Receivable accounts
within the consolidation 145,566,265.90 8.44% 38,254,910.00 2.2%
range
1,580,092,677. 91.56 1,704,227,109.
Group by age analysis 340,824,819.97 19.91% 97.8% 346,972,316.23 19.91%
22 % 06
1,725,658,943. 1,742,482,019.
Sub-total of group 100% 340,824,819.97 19.91% 100% 346,972,316.23 19.91%
12 06
Account receivable with
minor individual amount
but bad debt provision is
provided
1,725,658,943. 1,742,482,019.
Total -- 340,824,819.97 -- -- 346,972,316.23 --
12 06
Remarks on categories of receivable accounts:
125
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Receivable accounts on which bad debt provisions are provided on age analyze basis in the portfolio
[V] Applicable [] Not applicable
In RMB
End of term Beginning of term
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion % Amount Proportion %
within 1 yr
In which: -- -- -- -- -- --
within 1 yr 754,957,076.60 47.78% 37,747,853.82 874,432,077.16 42,294,358.36
Subtotal of within 1 year 754,957,076.60 47.78% 37,747,853.82 845,887,167.16 49.63% 42,294,358.36
1-2 years 357,234,032.29 22.61% 71,446,806.46 416,858,303.45 24.46% 83,371,660.69
2-3 years 245,553,906.62 15.54% 98,221,562.65 217,913,429.47 12.79% 87,165,371.79
Over 3 yrs 222,347,661.71 14.07% 133,408,597.03 223,568,208.98 13.12% 134,140,925.39
3-4 years 119,368,970.96 71,621,382.58 125,537,781.65 75,322,668.99
4-5 years 61,345,715.60 36,807,429.36 64,669,154.46 38,801,492.68
over 5 yrs 41,632,975.15 24,979,785.09 33,497,272.87 20,016,763.72
Total 1,580,092,677.22 -- 340,824,819.96 1,742,482,019.06 -- 346,972,316.23
(2) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
[V] Applicable [] Not applicable
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
Hangzhou Steam Turbine Group 158,500.00 95,100.00 158,500.00 95,100.00
Total 158,500.00 95,100.00 158,500.00 95,100.00
(3) Top 5 receivable accounts
In RMB
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
over 1-3
Shenyang Turbine Machinery Co., Ltd. Non-related 418,369,717.10 24.24%
years
over 1-3
Xi’an Shanggu Power Co., Ltd. Non-related 286,785,717.42 16.62%
years
Zhejiang Turbine Import & Export Co., Ltd. Fully-owned subsidiary 114,033,000.00 within 1 yr 6.61%
Chongqing Zhongjieneng Sanfeng Energy Co.,
Non-related 68,966,146.50 1-3 yrs 4%
Ltd.
over 1-3
Huaneng International Power Co., Ltd. Non-related 41,292,834.00 2.39%
years
Total -- 929,447,415.02 -- 53.86%
126
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(4) Account receivable from related parties
In RMB
Relation with the Portion in total
Name of the companies Amount
Company receivables
Hangzhou Steam Turbine Power Technologies Co., Ltd. Affiliate of the Group 18,099,719.38 1.05%
Zhejiang Steam Turbine Packaged Technology Development Co.,
Subsidiary 29,642,310.90 1.72%
Ltd.
Hangzhou Steam Turbine Power Group Packaged Project
Subsidiary 872,760.00 0.05%
Engineering Co., Ltd.
Zhejiang Turbine Import & Export Co., Ltd. Subsidiary 114,033,000.00 6.61%
Hangzhou Zhongneng Steam Turbine Power Co., Ltd. Subsidiary 136,000.00 0.01%
Hangzhou Steam Turbine Casting Co., Ltd. Subsidiary 386.24 0%
Hangzhou Guoneng Steam Turbine Engineering Co., Ltd. Subsidiary 780,962.78 0.05%
Hangzhou Steam Turbine Machinery & Equipment Co., Ltd. Subsidiary 100,845.98 0.01%
Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. Affiliate of the Group 429.09 0%
Total -- 163,666,414.37 9.5%
2. Other account receivable.
(1) Other receivable accounts
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
% % % %
Other receivables with major
individual amount and bad
4,010,320.94 9.17% 4,010,320.94 100% 4,010,320.94 9.17% 4,010,320.94 100%
debt provision provided
individually
Other receivables provided bad debt provision in groups
Other account receivable
35.51 31.23
within the consolidation 15,537,413.51 5,606,567.22
% %
range
55.32 10.68 46.43 21.46
Group by age analysis 24,201,395.74 2,584,523.41 8,333,659.45 1,788,684.95
% % % %
90.83 77.66 12.83
Sub-total of group 39,738,809.25 2,584,523.41 6.5% 13,940,226.67 1,788,684.95
% % %
Other account receivable
with minor individual
amount but bad debt
provision is provided
Total 43,749,130.19 -- 6,594,844.35 -- 17,950,547.61 -- 5,799,005.89 --
127
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Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
[V] Applicable [] Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which: -- -- -- -- -- --
within 1 yr 35,757,928.00 89.98% 1,011,025.72 4,212,055.85 50.54% 210,602.79
Subtotal of
35,757,928.00 89.98% 1,011,025.72 4,212,055.85 50.54% 210,602.79
within 1 year
1-2 years 1,265,827.65 3.19% 253,165.53 1,883,350.00 22.6% 376,670.00
2-3 years 1,543,500.00 3.88% 617,400.00 707,700.00 8.49% 283,080.00
Over 3 yrs 1,171,553.60 2.95% 702,932.16 1,530,553.60 18.37% 918,332.16
3-4 years 55,000.00 33,000.00 214,000.00 128,400.00
4-5 years 252,000.00 151,200.00 455,000.00 273,000.00
over 5 yrs 864,553.60 518,732.16 4,871,874.54 4,527,253.10
Total 39,738,809.25 -- 2,584,523.41 8,333,659.45 -- 1,788,684.95
Other account receivable with minor amount but bad debt provision provided individually:
Applicable
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Total -- -- --
Receivable accounts with large amount, or minor amount but on which bad debt provisions are tested and provided individually at
end of period
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Customs deposit
4,010,320.94 4,010,320.94 100% Hard to recover
receivable
Total 4,010,320.94 4,010,320.94 -- --
128
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(3) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Customs deposit
Non-related 14,334,470.62 within 1 yr 32.77%
receivable
Customs deposit
Non-related 4,010,320.94 Over 3 yrs 9.17%
receivable
Hangzhou Guoneng
Steam Turbine Subsidiary 3,768,364.61 within 1 yr 8.61%
Engineering Co., Ltd.
Hangzhou Steam Turbine
Subsidiary 6,144,989.49 within 1 yr 14.05%
Casting Co., Ltd.
Hangzhou Steam Turbine
Auxiliary Machine Co., Subsidiary 5,580,319.61 within 1 yr 12.76%
Ltd.
Total -- 33,838,465.27 -- 77.36%
129
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3. Long-term equity investment
In RMB
Voting Statement on Impairment
Percentage of
Calculating Openning Changed Closing power in differences between Impairment provision Cash dividend of
Company invested in Initial costs share in the
basis balance by balance the firm the shareholding and provision provided this the current term
firm %
% voting rights term
Zhejiang Steam
Turbine Packaged
Technology Cost basis 16,260,174.60 16,260,174.60 16,260,174.60 51.84% 51.84% 6,220,740.00
Development Co.,
Ltd.
Hangzhou Zhongneng
Steam Turbine Power Cost basis 5,600,853.25 5,600,853.25 5,600,853.25 51.6% 51.6% 25,801,500.00
Co., Ltd.
Hangzhou Steam
Turbine Casting Co., Cost basis 11,220,000.00 11,220,000.00 11,220,000.00 51% 51% 15,300,000.00
Ltd.
Hangzhou Steam
Turbine Auxiliary Cost basis 19,244,620.00 19,244,620.00 19,244,620.00 76.5% 76.5% 61,196,300.00
Machine Co., Ltd.
Hangzhou Steam
Turbine Machinery & Cost basis 7,968,000.00 7,968,000.00 7,968,000.00 52% 52% 23,400,000.00
Equipment Co., Ltd.
Greenesol Co. (India) Cost basis 5,534,773.22 5,534,773.22 5,534,773.22 37% 37% 0.00
Bank of Hangzhou Cost basis 390,954,040.00 390,954,040.00 390,954,040.00 6.92% 6.92% 23,118,640.00
130
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Co., Ltd.
Zhejiang Turbine
Import & Export Co., Cost basis 20,000,000.00 20,000,000.00 20,000,000.00 100% 100% 0.00
Ltd.
Hangzhou Steam
Turbine Engineering Cost basis 30,000,000.00 30,000,000.00 30,000,000.00 15% 15% 0.00
Co., Ltd.
Hangzhou Changdi
Investment
Partnership Enterprise Cost basis 10,000,000.00 10,000,000.00 10,000,000.00 3.33% 3.33% 0.00
(with limited
liabilities)
Total -- 516,782,461.07 516,782,461.07 516,782,461.07 -- -- -- 155,037,180.00
131
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4. Operational revenue and costs
(1) Operation incomes and costs
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 1,410,615,405.71 1,208,780,942.78
Other business income 15,236,041.74 14,381,644.14
Operation cost 936,260,655.36 759,380,397.69
Total
(2) Business segments (on industries)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Manufacturing 1,410,615,405.71 921,991,173.98 1,208,780,942.78 745,398,670.16
Total 1,410,615,405.71 921,991,173.98 1,208,780,942.78 745,398,670.16
(3) Business segments (on products)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Industrial steam turbine 1,394,733,443.28 916,172,398.19 1,197,589,524.99 738,115,204.10
Others 15,881,962.43 5,818,775.79 11,191,417.79 7,283,466.06
Total 1,410,615,405.71 921,991,173.98 1,208,780,942.78 745,398,670.16
(4) Business segments (on regions)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Domestic 1,230,321,303.46 774,410,753.63 1,057,341,182.85 618,545,510.62
132
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Overseas 180,294,102.25 147,580,420.35 151,439,759.93 126,853,159.54
Total 1,410,615,405.71 921,991,173.98 1,208,780,942.78 745,398,670.16
(5) Revenue from top five customers
In RMB
Percentage in
Name of clients Total turnover total turnover of
the Company %
Shenyang Turbine Machinery Co., Ltd. 354,992,734.98 25.17%
Xi’an Shanggu Power Co., Ltd. 277,273,504.24 19.66%
Zhejiang Turbine Import & Export Co., Ltd. 181,598,290.60 12.87%
Zhongye Saidi Engineering Co., Ltd. 32,400,000.00 2.3%
LUNA INFRAPRＰ（Ｐ） LIMITED (India) 32,130,510.00 2.28%
Total 878,395,039.82 62.28%
Statement on revenue.
5. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on cost basis 155,037,180.00 165,631,563.75
Long-term equity investment gains on equity basis
Investment gains from disposal of long-term equity
investment
Investment gains in the period of holding transactional
financial assets
Gains from investment held to mature in the period of
holding
Investment gains in period of holding disposable financial
assets
Investment gains from disposal of transactional financial
assets
Investment gains from investment held to mature
Gains from sellable financial assets and similar
Others 2,531,397.24
Total 157,568,577.24 165,631,563.75
133
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(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Hangzhou Zhongneng Steam Turbine Power
25,801,500.00 45,475,143.75
Co., Ltd.
Hangzhou Steam Turbine Auxiliary Machine
61,196,300.00 61,196,300.00
Co., Ltd.
Zhejiang Steam Turbine Packaged
6,220,740.00 12,441,480.00
Technology Development Co., Ltd.
Hangzhou Steam Turbine Machinery &
23,400,000.00 23,400,000.00
Equipment Co., Ltd.
Hangzhou Steam Turbine Casting Co., Ltd. 15,300,000.00
Bank of Hangzhou Co., Ltd. 23,118,640.00 23,118,640.00
Total 155,037,180.00 165,631,563.75 --
(3) Long-term equity investment gains on equity basis
Not applicable
6. Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 389,113,931.05 374,782,845.36
Plus: Asset impairment provision -5,351,657.81 30,406,363.08
Fixed asset depreciation, gas and petrol depreciation, production
30,308,947.94 26,292,434.62
goods depreciation
Amortizing of intangible assets 1,178,647.72 1,178,647.72
Amortizing of long-term expenses
Loss from disposal of fixed assets, intangible assets, and other
-131,089.69
long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 39,204.16
Loss from fair value fluctuation (“-“ for gains)
Financial expenses (“-“ for gains) 2,199,053.51 815,541.07
Investment losses (“-“ for gains) -157,568,577.24 -165,631,563.75
Decrease of deferred income tax asset (“-“ for increase)
Increase of deferred income tax liability (“-“ for decrease)
Decrease of inventory (“-“ for increase) -111,984,046.60 -377,786,795.66
Decrease of operational receivable items (“-“ for increase) -273,626,586.67 25,007,409.33
Increase of operational payable items (“-“ for decrease) 130,582,868.66 248,856,201.68
Others
Cash flow generated by business operation, net 4,823,736.17 163,960,287.61
2. Major investment and financing operation not involving with 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 237,472,679.86 389,138,847.99
Less: Initial balance of cash 335,248,349.26 332,065,321.54
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents -97,775,669.40 57,073,526.45
134
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(XVI) Supplementary Information
1. Net income on asset ratio and earning per share
In RMB
Earnings per share
Weighted average net
Profit of the report period Diluted earnings per
income/asset ratio (%) Basic earnings per share
share
Net profit attributable to common shareholders
10.23% 0.4473 0.4473
of the Company
Net profit attributable to the common owners of
the PLC after deducting of non-recurring 10.24% 0.4475 0.4475
gains/losses
2. Irregular situation and causes of items in the financial statements
Balance Sheet End of term Beginning of term Scale of change Remarks on the change
Items
Non-current asset due 160,000,000.00 20,000,000.00 700.00 Purchasing of financial products
in 1 year
Other current asset 4,009,257.70 5,661,299.59 -29.18 Increase of expenses to be amortized
including house rental and power supply,
etc.
Notes payable 103,180,000.00 139,807,194.00 -26.20 Disbursing of bank acceptance notes
Account payable 791,002,328.03 590,763,406.24 33.89 Disbursing of payment for purchased
goods according to the contract
Tax payable 46,552,337.47 90,706,239.00 -48.68 Tax paid according to regulations
Interest payable 31,740.00 260,577.78 -87.82 Payment of interest due
Dividend payable 9,000,000.00 100.00 Dividend to HSTG payable
Long-term payable 27,774,194.55 44,818,324.41 -38.03 Decrease of financed leasing by
Zhongcheng Shangtong Co.
Other non-recurring 24,186,374.66 17,310,045.00 39.72 Government subsidiy related to assets
liabilities received by the Company and Zhongneng
Co.
Income Statement Current term Same period of last Scale of change Remarks on the change
Items term
Business tax and 19,006,186.62 15,187,879.40 25.14 Tax calculated according to the law
surcharge
Financial expenses 15,625,642.92 12,043,223.86 29.75 Increase of interest paid for loans
Asset impairment loss 3,740,340.85 41,493,544.10 -90.99 Reinforce of account retrieving
Non-operational 7,991,933.68 1,468,373.60 444.27 Favorable policies applied on subsidiary
income
Minor shareholders’ 36,550,132.60 75,156,416.59 -51.37 Significant decrease of minority
equity shareholders’ equity in the report period
135
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IX. Documents for Reference
Index of documents for reference
1. Semiannual Report 2012 with signature of the Chairman
2. All the originals of the Company’s documents and public notices disclosed in the newspapers designated by China Securities
Regulatory Commission in the report period;
3. Resolutions of the 19th meeting of the 5th term of Board, with signatures of the Directors
Chairman Nie Zhonghai
Date of report approved by the Board: August 28, 2012
136