Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2013 Summary
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. Provisional 47
Hangzhou Steam Turbine Co., Ltd.
Semiannual Report 2013 Summary
1. Important Prompt
(1) This Summary of Semiannual Report was substracted from the full text of the Semiannual
Report. For details please find the full text of the report available at http://www.cninfo.com.cn , the
official website of Shenzhen Stock Exchange, or website assigned by China Securities Regulatory
Commission.
(2) Company Profile
Stock ID Hangqilun B Stock Code 200771
Stock Exchange listed in Shenzhen Stock Exchange
Liaisons Secretary of the Board Representative of Stock Affairs
Name Yu Changquan Wang Gang
Tel. 0571-85780432 0571-85780198
Fax. 0571-85780433 0571-85780433
Email. ychq@htc.cn wg@htc.cn
2. Main Financial Information and Change of Shareholders
(1) Financial highlights
Are there any retrospective adjustment or restatement of financial information of previous year due
to change of accounting policies or correcting of accounting errors
[] Yes [V] No
Increase/decrease over the
Same period last
This report term same period of last year
year
(%)
Turnover (RMB) 2,019,745,830.92 2,138,163,723.76 -5.54%
Net profit attributable to shareholders of the
232,926,224.38 337,275,897.42 -30.94%
listed company (yuan)
Net profit attributable to the shareholders of
the listed company and after deducting of 220,033,753.07 337,432,569.71 -34.79%
non-recurring gain/loss(RMB)
Net Cash flow generated by business
112,341,197.85 153,417,196.36 -26.77%
operation (RMB)
Basic earnings per share (Yuan/share) 0.31 0.45 -31.11%
Diluted earnings per share (Yuan/share) 0.31 0.45 -31.11%
Weighted average net
5.84% 10.23% -4.39%
income/asset ratio (%)
Ended this report Changed (%) over end of
End of prev. year
term prev. year
Gross Assets (RMB) 7,688,665,350.81 7,447,716,037.95 3.24%
Net asset attributable to owners of the PLC 3,802,135,350.85 3,872,156,922.52 -1.81%
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2013 Summary
(2) The top 10 shareholders
Total shareholders at the end of the report
17,765
period
Top 10 Shareholders
Frozen or
Share Amount of
Properties of Amount of pledged
Name of the shareholder proportion unconditional shares
shareholder shares Status of
(%) held Amount
shares
Hangzhou Steam Turbine Power Group Co., State-owned
63.64% 479,824,000 479,824,000
Ltd. legal person
Overseas
Li Minggong 0.98% 7,356,383 0
natural person
Overseas legal
NORGES BANK 0.48% 3,634,246 0
person
GOVERNMENT OF SINGAPORE INV. Overseas legal
0.45% 3,376,460 0
CORP.- A/C "C" person
BOCHK INVESTMENT FUNDS-BOCHK Overseas legal
0.31% 2,301,344 0
CHINA GOLDEN DRAGON FUND person
Domestic
Hu Xiaofeng 0.3% 2,199,155 0
natural person
Overseas legal
AUSTRALIANSUPER PTY LTD 0.28% 2,108,321 0
person
TOYO SECURITIES ASIA LIMITED-A/C Overseas legal
0.26% 1,979,581 0
CLIENT. person
GUOTAI JUNAN Overseas legal
0.26% 1,922,798 0
SECURITIES(HONGKONG) LIMITED person
Overseas legal
KGI ASIA LIMITED 0.25% 1,916,631 0
person
Notes to relationship or“action in concert” among the top ten
None
shareholders.
Particulars about shareholders take part in financing and stock
None
financing business (if any)
(3) Changing of controlling shareholder and practical controller of the Company
Change of holding shareholder
[] Applicable; [V] Not applicable
Change of substaintial controller
[] Applicable; [V] Not applicable
3. Management analyze
(1) Business overview
In the first half of 2013, the world’s economy was under deeper adjustment. Economy revival
was unbalanced. The developed economies were lack of power although there were some positive
effects, while the development of new economies were still high but under greater pressure. The
Chinese government was reforming the economic developing pattern and resulted continuous
slowing down in a steady scale, infrastructure investment was depressed and the prices of industrial
products were declining.
The Company had been developing at a steady pace in a complicated economic and market
environment. Greater attention was put on quality control and effectiveness. Business strategies
were carried out focusing on upgrading of management, innovations, market development, and risk
prevention. Steady business performance was achieved under the circumstance of overall
depressing.
The new Board of Directors and Supervisory Committee were elected in the report period
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2013 Summary
according to the Articles of Association. The new executive team was enaged as well. According to
the development strategy of the “12th 5-year-plan”, the Company adjusted the investment plan for
the heavy industry of steam turbines and approved by the shareholders’ meeting thereafter. A
preparation office had been established. It was decided to launch the investment on construction of
the R&D center. Combination of the whole industrial chain will be further accelerated, which will
enable the Company to combine the application of steam turbine, gas engine, and compressors.
Greater competition advantage was revealing gradually.
In the report period, the Company has achieved turnover of RMB2,019,745,830.92, a decrease
of 5.54%, which was caused by decrease of turnover contributed by some of the subsidiaries; the
operational cost was RMB1,350,033,911.16, and gross profit ratio of 33.1%, a decrease of 3..5%,
which was caused by change of product composition of the parent company; the net profit
attributable to the shareholders of the parant company was RMB232,926,224.38, a 30.94% of
decrease. Decrease of cash and equivalents was caused by using of idle capital in trusteeship, and
cash outflow has increased significantly.
(2) Business progress in the first half of year
1) Accelerating of technical upgrading
The Company had been reinforce technical innovation against construction of key projects in
the report period. The 100000 KW class industrial turbine had passed the technical examination by
the provincial committee of experts. In product developing, developing of million KW class
BFPT set has greatly enlarged the application range of the Company’s products in large scale
powerplants. K5.0 blade-end frequency measurement project is the milestone to the success of the
largest blade group development. Cooperations had been carried forward with technical institutions
in the areas of gas turbine and compressor. Construction of the IT system was pushed forward.
Bidding offer of PLM project had completed, which may contribute by reinforcing the quality of
designing, manufacturing, and service providing. The Company has filed for certificate of
primary products for the “Dual line 1.4 million / year PTA driving steam turbine” and “660MW full
capacity boiler pump steam turbine”. In intellectual properties, the Company has filed for 11
invention patents, 14 utility patents, 5 copyrights. 1 invention patent and 2 utility patents were
granted.
2) Aggressive participating in market competition
In the report period, the Company’s overall sales was generally at the same level of last year.
Great challenge still confronts the Company under the impact of slowing down economy and severe
competition. The Company has been in the leading position in the areas of oil refining, petrol
chemistry, and air seperation. However pressures were becoming greater in multiple market
territories. Growth of powersupply industry was weakening throughout the country, while the
projects regarding powerplant water pump and induced draft fan driving turbine were increasing.
Along with the negative factors such as economic depress and fluctuate of exchange rate, the
Company never drawback its effort in exploring of global markets. With its existing advantages, the
Company has won for multiple projects in countries such as Saudi Arabia and Iran. In aspect of
industrial chain expanding, the Company has won in the bidding competition for the RMB500
million worth Zhonggang Huoqiu project, which will be a significant opportunity for the Company
to upgrade its technologies.
3) Pursuit of excellence
The Company’s product lines featured greater amount of sets, new models, and complex
structures in the report period. Frequent adjusting of production schedules was constrain the
Company’s production process. However the Company has been doing its best to balance the
production process and kept it operated in a high efficiency. The Company has been reinforce its
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2013 Summary
planning and achieved flexible management to catch up with the ever-changing market demand.
Supply chain management was further regulated and empowered to reinforce the competition edge.
Production resource structure was further optimized and installation of large scale equipment
was accelerated. TPM management was promoted to reinforce equipment support. Pursuiting of
excellence was fully promoted toward international standards to brushup the quality of hardware
and software.
4) Management upgrading and enterprise reformation
The Company kept promoting its performance assessment pattern in the report period and setup
17 key indices fell into 5 categories. 42 improvement targets were raised focusing on improving of
the management process. Risk control was enhanced basing on the internal control program of
2012. Internal control manual was produced and a number of working criteria were revised,
including the external guarantee criteria and trusteeship criteria. Internal controlling process was
carried down to holding subsidiaries as well. The Company released the “Social Responsibility
Report 2010-2012”, which reviewed and summarized the Company’s approach of social
responsibilities. For the Company’s experiences in construction of advanced technical teams, the
Provincial Department of Manpower and Social Security held the “Technical Expert Workshop of
Zhejiang Province” at the Company. After acquiring of the Provincial Award of Quality of Zhejiang,
the Company has filed for the competition of National Award of Quality.
4. Issues involve with financial reports
(1) Statement on changes of accounting policies, accounting estimations, and accounting basis
comparing with the last fiscal year
None
(2) Statement on correcting of material accounting error and retrospective adjustment
None
(3) Statement on change of consolidation range comparing with the previous fiscal year
It was on January 24, 2013, Zhongneng Co. entered the “Share Transferring Agreement” with Hangzhou
Steam Turbine Engineering Co., Ltd. to transfer the 70% of the equity in Packaged Equipment Co. with
consideration of RMB30.94 million. Zhongneng Co. would no longer holds any rights or liabilities in the Package
Co. It was no longer in the consolidation range since Feb 2013.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Nie Zhonghai
August 20, 2013
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