Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2013-46
SEMIANNUAL REPORT 2013
Hangzhou Steam Turbine Co., Ltd.
August 20, 2013
1
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Chapter I. Statements, Contents, and Glossary
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives
of the Company guarantee that there are no significant omissions, fictitious or misleading
statements carried in the Report and we will accept individual and joint responsibilities for the
truthfulness, accuracy and completeness of the Report.
All of the directors attended the board meeting on which this report was examined. Independent
director Tan Jianrong voted by telecommunication and the others voted onsite.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common
reserves for the report period.
Chairman Mr. Nie Zhonghai, Chief Financial Officer Mr. Pu Yangshuo, and the Chief of
Accounting Department Mr. Jiang Rong hereby declares: the Financial Statement in the report is
guaranteed to be truthful and complete.
This Report contains no predictive presentation such as a business plan, forms no substaintial
commitment to the shareholders. Shareholders please be aware of the risks attached to investment.
2
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Table of Contents
Chapter I. Statements, Contents, and Glossary.................................................................................... 2
Chapter II. Company Profile................................................................................................................ 5
Chapter III. Financial Highlights ......................................................................................................... 6
Chapter IV. Board of Directors’ Report ............................................................................................... 8
Chapter V. Significant Events ......................................................................................................... 18
Chapter VI. Change of Share Equity and Shareholders..................................................................... 29
Chapter VII. Particulars about the Directors, Supervisors and Senior Executives ............................ 31
Chapter VIII. Financial Report .......................................................................................................... 32
Chapter IX. Documents for Reference............................................................................................. 116
3
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Glossary
Terms Defined as Description
Company, the Company Defined as Hangzhou Steam Turbine Co., Ltd.
the Group Defined as Hangzhou Steam Turbine Power Group Co., Ltd.
The report period Defined as January 1 – June 30 2013
Hangzhou Zhongneng Steam Turbine Power Co., Ltd. – the holding
Zhongneng Co. Defined as
subsidiary of the Company
Hangzhou Steam Turbine Casting Co., Ltd. – the holding subsidiary of
Casting Co. Defined as
the Company
Zhejiang Steam Turbine Packaged Technology Development Co., Ltd. –
Packaged Tech. Co. Defined as
the holding subsidiary of the Company
Hangzhou Steam Turbine Machinery Equipment Co., Ltd. - the holding
Machinery Co. Defined as
subsidiary of the Company
Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. - the holding
Auxiliary Machine Co. Defined as
subsidiary of the Company
Zhejiang Turbine Import & Export Co., Ltd. – the holding subsidiary of
Turbine Co. Defined as
the Company
Packaged Equipment Co. of Hangzhou Steam Turbine Group Packaged Equipment Co., Ltd. –
Defined as
the Group holding subsidiary of Zhongneng Co.
The Board of Directors Defined as The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
The Supervisory Committee Defined as The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
The Shareholders’ Meeting Defined as The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
RMB, RMB0’000,
Defined as RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
RMB000’000’000
MW Defined as Unit of power: 1000000W
PTA Defined as terephthalic acid, an organic chemical material
PLM Defined as Product life circle management information system
BFPT Defined as Boiler Feed Pump Turbine
TPM Defined as Total Productive Maintenance
4
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Chapter II. Company Profile
I. Company profile
Stock ID Hangqilun B Stock Code 200771
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese Hangzhou Steam Turbine Co., Ltd.
Abbreviation in Chinese (if any) Hangqilun B
Company Name in English HANGZHOU STEAM TURBINE CO.,LTD.
Shortform of Company Name in English HTC
Legal representative: Nie Zhonghai
II. Contacts
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. 0571-85780432 0571-85780198
Fax. 0571-85780433 0571-85780433
Email. ychq@htc.cn wg@htc.cn
III. Other info.
1. Contacts
No change to the registered address, office address, postal code, official website, and email
address of the Company. For details please find the Annual Report 2012.
2. Information inquiry
None of the official presses, website, and place of enquiry has been changed in the report
period.
3. Change of business registration
None of the registration date and place, the license number, tax number, organization number
has been changed in the report period. For details please find Annual Report 2012.
4. Misc. Information
No change in misc information in the report period.
5
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Chapter III. Financial Highlights
I. Main accounting data and indices
Are there any retrospective adjustment or restatement of financial information of previous year due
to change of accounting policies or correcting of accounting errors?
No
Increase/decrease
Same period last over the same
This report term
year period of last year
(%)
Turnover (RMB) 2,019,745,830.92 2,138,163,723.76 -5.54%
Net profit attributable to shareholders
232,926,224.38 337,275,897.42 -30.94%
of the listed company (yuan)
Net profit attributable to the
shareholders of the listed company
220,033,753.07 337,432,569.71 -34.79%
and after deducting of 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
0.31 0.45 -31.11%
(Yuan/share)
Weighted average net
5.84% 10.23% -4.39%
income/asset ratio (%)
Ended this report Changed (%) over
End of prev. year
term end of prev. year
Gross Assets (RMB) 7,688,665,350.81 7,447,716,037.95 3.24%
Net asset attributable to owners of the
3,802,135,350.85 3,872,156,922.52 -1.81%
PLC
II. Differences in accounting information under IAS and domestic accounting
standard
1. Differences in net profit and net asset under domestic and international accounting
standards
In RMB Yuan
Net profit attributable to the Net asset attributable to the shareholders
shareholders of the listed company of the listed company
Amount of last
Current term End of term Beginning of term
term
6
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
On Chinese
Accounting 232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
Standard
Items and amounts adjusted on IAS
Under International
Accounting 232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
Standard
2. Differences in net profit and net asset under domestic and overseas accounting standards
In RMB Yuan
Net profit attributable to the Net asset attributable to the shareholders
shareholders of the listed company of the listed company
Amount of last
Current term End of term Beginning of term
term
On Chinese
Accounting 232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
Standard
Accounts and amounts adjusted according to overseas accounting standard
On IAS 232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
3. Statement on the differences of accounting information on IAS and domestic accounting
standard
None
III. Non-recurring gain/loss items and amounts
In RMB Yuan
Items Amount Remarks
Gain/loss from disposal of non-current assets (includes the
24,483,141.80
recovered part of asset impairment provision already provided)
Gains and losses included in the current period of government
subsidies, excluding those government grants which are closely
2,221,328.80
related to normal business and in line with national policy , or in
accordance with fixed standards or quantities
Other non-business income and expenditures other than the above -795,374.30
Influence on minority shareholders’ quity (after tax) 13,016,624.99
Total 12,892,471.31 --
7
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Chapter IV. Board of Directors’ Report
I. Business overview
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
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.
II. Analysis of main business
1. Summary
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.
8
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
2. Change in main financial indices
In RMB Yuan
Same period last Changed
This report term Cause of change
year by % YoY
Turnover 2,019,745,830.92 2,138,163,723.76 -5.54%
Operation cost 1,350,033,911.16 1,355,776,212.37 -0.42%
Increase of freights and wages with the
Sales expense 92,037,454.56 75,058,125.24 22.62%
parent co.
Administrative
262,693,939.02 259,247,423.77 1.33%
expense
Great amount of expenses including
interest payments by Packaged Equipment
Financial expenses 1,542,054.93 15,625,642.92 -90.13% Co. and Zhongcheng Cement Co., which
were eliminated from the consolidation
range.
Decrease of profit this period result in
Income tax expenses 47,681,073.69 69,046,850.08 -30.94%
decrease of taxable income
Input to R&D 86,173,797.02 77,394,314.46 11.34%
Cash flow generated
by business 112,341,197.85 153,417,196.36 -26.77% Decrease of operational account received
operation, net
Net cash flow
Increase of trusteeship purchased this
generated by -274,500,144.16 -132,478,923.72 -107.2%
period
investment
Net cash flow
generated by -205,941,405.86 -215,119,473.01 4.27%
financing
Net increasing of
Great decrease of net cash flow from
cash and cash -369,600,123.01 -194,283,084.57 -90.24%
investment activities
equivalents
3. No material change in profit constitution or profit resources.
4. Progress of business plans revealed in previous period
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
9
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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
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
10
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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.
III. Main business composition
In RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
Gross of operation cost of gross profit
of turnover over
Turnover Operation cost profit over the same ratio over the
the same period
ratio % period of last same period of
of last year (%)
year (%) last year (%)
On Industries
Boiler and
power
1,708,584,515.78 1,149,586,834.58 32.72% -2.98% 4.47% -12.79%
machine
manufacture
Casting 39,505,854.30 32,916,683.37 16.68% 16.65% 14.65% 9.52%
Petrochemical
and other
38,590,594.80 27,922,308.08 27.64% -2.24% -14.98% 64.53%
special
machineries
Packaged
equipment for
37,732,042.01 33,212,160.45 11.98% -36.26% -36.44% 2.14%
waste heat
power plant
Other special
187,365,878.27 101,806,677.82 45.66% -21.47% -27.02% 9.96%
equipment
Total 2,011,778,885.16 1,345,444,664.30 33.12% -5.64% -0.61% -9.28%
On Products
Industrial
1,708,584,515.78 1,149,586,834.58 32.72% -2.98% 4.47% -12.79%
steam turbine
Casting
39,505,854.30 32,916,683.37 16.68% 16.65% 14.65% 9.52%
products
Auxiliary
38,590,594.80 27,922,308.08 27.64% -2.24% -14.98% 64.53%
machinery
Packaged
equipment for
37,732,042.01 33,212,160.45 11.98% -36.26% -36.44% 2.14%
waste heat
power plant
Others 187,365,878.27 101,806,677.82 45.66% -21.47% -27.02% 9.96%
Total 2,011,778,885.16 1,345,444,664.30 33.12% -5.64% -0.61% -9.28%
On territories
Domestic 1,791,637,656.67 1,167,089,802.17 34.86% -4.02% 2.74% -10.96%
Overseas 220,141,228.49 178,354,862.13 18.98% -17.09% -18.1% 5.5%
Total 2,011,778,885.16 1,345,444,664.30 33.12% -5.64% -0.61% -9.28%
11
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
IV. Analyze of competitive edge
As the largest developing and manufacturing base of industrial steam turbine throughout the
country, the Company has been in the territory with 55 years of experiences, which provided
obvious advantages from technical research to production, from marketing to customer services.
1. A complete technical innovation system was established. The Company has under its
possession of national, provincial, and municipal grade technical centers, a doctorial workstation,
and a academician workstation. Close cooperations were carried out with institutions and
universities from throughout the country. As the main drafter of national standard on industrial
steam turbine, the Company has the newest technical trend under its close observation. The
Company is now providing nearly 600 different modles of steam turbines to the customers and hold
the newest technical system covering the product lines up to 150 MW.
2. The Company has adopted modulized designing and parallelized production processes,
which enable the Company to satisfy the customized demmands as well as the costs, delivery term
and special demands of the customers.
3. The Company has established strategic cooperations with main customers in the country.
Further marketing approaches were carried on by involving itself in the customers’ value. A sound
and steady image has been setup in the domestic steam turbine market. In the global market, the
Company has acquired multiple important certifications and has established a primary global
recognition.
4. The Company has its compelte service providing system. The Company is not only capable
to provide onsite 24-hour service for the Company’s own products, but also accumulated rich
experiences in technical maintainence and reengineering of other manufacturers’ products.
V. Investment
1. External equity investment
(1) External investment
External Investment
Investment of same
Investment of the period (RMB) period of last year Scale of change %
(RMB)
13,821,525.00 0.00 100%
Particulars of the invested company
Equity share in the invested company
Name of companies Main Business
(%)
Hangzhou Zhongneng Steam Power (Indonesia)
Steam turbine 45%
Co., Ltd.
12
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(2) Shareholding in financial enterprises
Share
Share
Original Openning proportion Shares held at Close balance of Gain/loss in Source
Name of Type of proportion at Accounting
investment cost amount of (%) at the end of term book value report period of
companies company end of period subject
(RMB) shares beginning of (shares) (RMB) (RMB) shares
%
period
Bank of Long-term
Commercial Own
Hangzhou 390,954,040.00 115,593,200 6.92% 115,593,200 6.92% 390,954,040.00 23,118,640.00 share equity
Bank capital
Co., Ltd. investment
Total 390,954,040.00 115,593,200 -- 115,593,200 -- 390,954,040.00 23,118,640.00 -- --
2. Trusted financing, derivate instruments, and trusted loans
(1) Trusteeship RMB0’000
Related Principal Impairment Actual
Type of Amount Expired Mean of
Started Predicted
Title of entrustee Relationship transaction or retreived this provision gain/loss of
product entrusted on on reward income
not period provided (if any) the period
Ping’an Trust Co., Oct 10, Jan 10
Non-related No 5,000 5,000 60.49 60.49
Ltd. 2012 2013
Ping’an Trust Co., Oct 30 Jan 30
Non-related No 5,000 5,000 73.1 73.1
Ltd. 2012 2013
Jan 10 Feb 18,
ICBC Co., Ltd. Non-related No 10,000 10,000 40.55 40.55
2013 2013
Shanghai Bank Co., Jan 16 Feb 18,
Non-related No 5,000 5,000 19.44 19.44
Ltd. 2013 2013
Mar 01 Apr 10
ICBC Co., Ltd. Non-related No 15,000 15,000 55.6 55.6
2013 2013
Shanghai Bank Co., Mar 13, Apr 15
Non-related No 8,000 8,000 31.61 31.61
Ltd. 2013 2013
Bank of Hangzhou Mar 15 Jun 14
Non-related No 5,000 5,000 45.41 45.41
Co., Ltd. 2013 2013
13
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Bank of Hangzhou Mar 25 June 25,
Non-related No 3,000 3,000 27.12 27.12
Co., Ltd. 2013 2013
March May 3
Citic Bank Co., Ltd. Non-related No 5,000 5,000 15.78 15.78
28, 2013 2013
Apr 3 May 08
Citic Bank Co., Ltd. Non-related No 5,000 5,000 15.34 15.34
2013 2013
Apr 07 May 13
CCB Co., Ltd. Non-related No 8,000 8,000 28.8 28.8
2013 2013
Shanghai Bank Co., Apr 10 May 13
Non-related No 7,000 7,000 27.97 27.97
Ltd. 2013 2013
Apr 17 May 27
ICBC Co., Ltd. Non-related No 10,000 10,000 35.95 35.95
2013 2013
Shanghai Bank Co., Apr 17 May 20
Non-related No 8,000 8,000 31.82 31.82
Ltd. 2013 2013
Apr 18 May 23
CCB Co., Ltd. Non-related No 5,000 5,000 16.3 16.3
2013 2013
May 15 Jun 19
Citic Bank Co., Ltd. Non-related No 10,000 10,000 30.68 30.68
2013 2013
Shanghai Bank Co., May 15 Jun 17
Non-related No 10,000 10,000 38.42 38.42
Ltd. 2013 2013
May 29 Jul 8
ICBC Co., Ltd. Non-related No 8,000
2013 2013
Shanghai Bank Co., May 29 Jul 1
Non-related No 10,000
Ltd. 2013 2013
June 18, Jul 23
CCB Co., Ltd. Non-related No 5,000
2013 2013
Shanghai Bank Co., Jun 19 July 22,
Non-related No 5,000
Ltd. 2013 2013
Shanghai Bank Co., Jun 19 July 22,
Non-related No 6,000
Ltd. Wulin Branch 2013 2013
Pin’an Bank Chengxi Jun 26 Jul 26
Non-related No 5,000
Branch 2013 2013
Ping’an Trust Co., Oct 29 Jan 29
Non-related No 2,000 2,000 29.23 29.23
Ltd. 2012 2013
Hangzhou Industrial
Jan 24 April 24,
& Commercial Trust Non-related No 2,000 2,000 34.52 34.52
2013 2013
Co., Ltd.
14
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Hangzhou Industrial
Jan 24 Jul 26
& Commercial Trust Non-related No 3,000 105.29
2013 2013
Co., Ltd.
Ping’an Trust Co., Feb 01 Feb 26
Non-related No 3,000 3,000 7.19 7.19
Ltd. 2013 2013
Ping’an Trust Co., Mar 01 Mar 29
Non-related No 2,000 2,000 5.98 5.98
Ltd. 2013 2013
Jan 5 Feb. 16
ICBC Co., Ltd. Non-related No 3,000 3,000 13.12 13.12
2013 2013
Feb 6 Mar 11
Citic Bank Co., Ltd. Non-related No 2,500 2,500 8.82 8.82
2013 2013
Feb 23, March
ICBC Co., Ltd. Non-related No 3,500 3,500 6.95 6.95
2013 26, 2013
Apr 12 Apr 25
ICBC Co., Ltd. Non-related No 1,500 1,500 1.44 1.44
2013 2013
Hangzhou Industrial
Jan 30 No fixed
& Commercial Trust Non-related No 800
2013 period
Co., Ltd.
Hangzhou Industrial
Nov 27 Nov 27
& Commercial Trust Non-related No 2,000 170
2012 2013
Co., Ltd.
Hangzhou Industrial
Dec 25 Dec 25
& Commercial Trust Non-related No 1,000 85
2012 2013
Co., Ltd.
Ping’an Trust Co., Jan 9 April 9
Non-related No 2,000 2,000 27.6 27.6
Ltd. 2013 2013
Jun 28 Aug 2
CCB Co., Ltd. Non-related No 2,000 11.9 0
2013 2013
Jan 17 Feb 25
ICBC Co., Ltd. Non-related No 1,800 1,800 8.1 8.1
2013 2013
Mar 20 May 01
ICBC Co., Ltd. Non-related No 1,500 1,500 5.56 5.56
2013 2013
Dec 31 Jan 4
CCB Co., Ltd. Non-related No 61 61 0.01 0.01
2012 2013
Total 196,661 -- -- -- 148,861 1,115.09 742.9
Resource of capital trusted Independent
Accumulated principal and gains overdue 0
15
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
3. Analyze of main subsidiaries and affiliates
Profiles of main subsidiaries and affiliates
In RMB Yuan
Name of companies Type of Industry Major products or Registered Gross Assets Net asset Turnover Operation Net profit
business service capital profit
Zhejiang Steam Subsidiaries Trade of Technological 30 million 276,693,966.94 78,403,931.97 98,400,000.47 9,707,827.96 7,195,080.27
Turbine Packaged packadged development of
Technology equipment automatic control and
Development Co., instrument control
Ltd.
Hangzhou Zhongneng Subsidiaries Manufacturing Designing and 92.5 825,087,002.11 325,546,767.93 354,259,704.49 75,931,335.01 69,304,733.41
Steam Turbine Power manufacturing of steam million
Co., Ltd. turbines
Hangzhou Steam Subsidiaries Casting Iron and steel casting 22 million 400,576,385.08 159,963,312.57 184,188,685.46 10,712,122.79 8,193,867.86
Turbine Casting Co.,
Ltd.
Hangzhou Steam Subsidiaries Manufacturing Producing and 30 million 191,876,298.06 114,994,465.18 72,536,319.81 23,974,096.14 18,470,920.46
Turbine Machinery & processing of steam
Equipment Co., Ltd. turbine parts
Hangzhou Steam Subsidiaries Manufacturing Manufacturing of steam 80 million 510,055,880.16 273,688,348.76 204,601,959.76 35,523,241.19 28,719,436.08
Turbine Auxiliary turbine auxiliary
Machine Co., Ltd. machines
Zhejiang Turbine Subsidiaries Commerce & International trade 20 million 386,812,512.74 33,236,728.23 247,334,832.19 2,732,670.12 1,853,059.42
Import & Export Co., trade
Ltd.
16
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
VI. Profit distribution in the report period
Profit distribution proposal for year 2012: According to the Articles of Association, basing on the total
capital share of 754,010,400 on December 31,2012, RMB4.00 and 0 bonus share(tax included) will be distributed
to each 10 shares. No capitalization of common reserves will be carried out. Totally RMB301,604,160 will be
distributed. Dividend for B share holders will be translated to Hong Kong Dollar at the central parity rate released
by People’s Bank of China at the first bank day next to the date when the profit distribution proposal is adopted by
the Shareholders’ Annual Meeting 2012.
The profit distribution proposal was adopted by the Shareholders’ Annual Meeting 2012 held on June 24,
2013, and was implemented on August 16, 2013 (the equity registration day). For details please find the
“Announcement on Profit Distribution of Hangzhou Steam Turbine Co., Ltd. for Year 2012” (announcement No.
2013-45).
VII. Reception of investigation, commmunication, or visiting in report period
Type of
Time/date Place Way Visitors Main content involved and material provided
visitors
Business environment, overseas market, new growth
Jan 23 The Field Value
Institute point, strategic plan of 2013, and energy saving features
2013 Company research partners
of the products
Form of gross profit and causation, cooperation and
competition of overseas companies, prospect of gass
Jan 29 The Field Ruixun
Institute turbine compressor, projected profit of new industry,
2013 Company research Huashi
energy saving product and industries involved, way to
solve the problem of B shares
Performances, applications of the Company’s products,
April 16, The Field Shenzhen
Institute industry comparations, elastic level to the
2013 Company research Chuangtou
macroeconomy, solutions for B shares
National economy growth and prospect of the Company;
how does the Company lift up production efficiency;
cooperation with suppliers and quality control; customer
Apr 18 The Field Ruixun
Institute relationship; trend of turnover in recent years; regional
2013 Company research Huashi
segment of the Company’s products; export; management
team; technical cooperation; innovation; dividend
policies.
Morgan Situations of the Company and subsidiaries, global
April 24, The Field
Institute Stanley Asia industrial turbine set market, company strategy, intension
2013 Company research
Investment of merger
17
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Chapter V. Significant Events
I. Administrative Position
1. Overview of the report period
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 of Listed Companies, Basic Standards of Enterprise Internal Control,
Shenzhen Stock Exchange PLC Internal Control Instruction, and Shenzhen Stock Exchange Share
Listing Rules. In the report period, the Company has been reinforcing supervising on
subisidiaries about their legal operation and information disclosure, to make sure they are working
according to the laws and regulations.
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. 5 board
meetings, 6 professional committee meetings and 3 independent directors’ meeting were held in the
report period.
The Company held its Shareholders’ Annual Meeting 2012 on June 24, 2013. Election of the
18
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
6th term of Board was done at the meeting. As of the date of this report, there are 4 independent
directors among the 11 members of the Board. The independent directors have been fulfilling their
duties in respect of providing professional suggestions, supervising business operation, and ensure
the fairness of information disclosure, with consideration of the shareholders’ benefits.
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. 5 supervisory meetings were held in the report period.
3. Internal regulations established in the report period
No. Name of the criterias Approving procedures Disclosing media Date of effect
1 External Guarantee Criteria the 22th meeting of the 5th term of http://www.cninfo.com.cn March 26,
Board 2013
2 Trusteeship Criteria (Revised 2013) the 22th meeting of the 5th term of http://www.cninfo.com.cn March 26,
Board 2013
3 The Articles of Association (Revised Shareholders’ Annual Meeting http://www.cninfo.com.cn June 24, 2013
2013) 2012
4. Executing of special administration activities
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 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 the
year strictly following the auditing plan illustrated previously. The office has made great
contribution to the construction and improving of internal control system.
19
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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. Material lawsuits
In the report period, the Company had no material lawsuits or arbitrations.
III. Media queries
No media query occurred in the report period.
IV. Receivership and bankrupcy
No receivership and bankrupcy occurred in the report period.
20
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
V. Asset transactions
1. Disposal of assets
The other Asset Date of Price Net profit Impact on Percentage Pricing Related Relationship Completely Debt & Date of Index of
party of traded disposal RMB0’000 contributed the Company of the net policies transaction with the transferred credit disclosure information
trade to the PLC (Note 3) profit or not other party or not transferred disclosure
since the contributed or not
beginning by the
of the asset up to
current the date of
period to disposal in
the date of the total
disposal net profit
RMB0’000 of %
Hangzhou Hangzhou 2013.1.24 3,094 -86.59 The 5.14% Listed Yes The other Yes Yes Jan 31 Announcement
Steam Steam Packaged price party of the 2013 No. 2013-01
Turbine Turbine Equipment trade was
Engineering Power Co. was no the holding
Co., Ltd. Group longer in the subsidiary
Packaged consolidation of
Project range since Hangzhou
Engineering Zhongneng Steam
Co., Ltd. Co. has sold Turbine
out its shares Group
21
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
VI. Major related transaction
1. Related transactions related to daily operation
Market
Principle of
Subjects of Price Amount of Percentage price of Index of
Type of pricing the Way of Date of
Related parties Relationship the related of trade in similar similar information
trade related payment disclosure
transactions trade RMB0’000 trades trade disclosure
transactions
available
Hangzhou Steam
Turbine Automobile Affiliate of Accept freight, Market Bank March 28, Announcement
Fair and just 3,167.47 1.96%
Sales Service Co., the Group labor repairing fee price transfer 2013 No. 2013-15
Ltd.
Hangzhou Hangfa
Affiliate of Purchase Market Bank March 28, Announcement
Power Generating Generators Fair and just 7,334.3 4.55%
the Group of goods price transfer 2013 No. 2013-15
Equipment Co., Ltd.
Hangzhou
Affiliate of Purchase Market Bank March 28, Announcement
Nanfangtongda Gear boxes Fair and just 652.6 0.4%
the Group of goods price transfer 2013 No. 2013-15
Gears Co., Ltd.
Hangzhou Nanhua
Affiliate of Purchase Packaging Market Bank March 28, Announcement
Wooden Packaging Fair and just 737.29 0.46%
the Group of goods materials price transfer 2013 No. 2013-15
Co., Ltd.
Hangzhou Steam
Affiliate of Purchase Market Bank March 28, Announcement
Turbine Industrial Raw materials Fair and just 122.33 0.08%
the Group of goods price transfer 2013 No. 2013-15
Co.
Hangzhou Relian
Affiliate of Purchase Purchase of Market Bank March 28, Announcement
International Fair and just 36.51 0.02%
the Group of goods steel price transfer 2013 No. 2013-15
Trading Co.
22
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Hangzhou Steam power supply,
Holding Purchase Market Bank March 28, Announcement
Turbine Power payment on Fair and just 655.77 0.41%
shareholder of goods price transfer 2013 No. 2013-15
Group Co., Ltd. behalf
Hangzhou Steam
Turbine Automobile Affiliate of Sales of Market Bank March 28, Announcement
Spare parts Fair and just 636.87 0.22%
Sales Service Co., the Group goods price transfer 2013 No. 2013-15
Ltd.
Hangzhou Hangfa
Affiliate of Sales of Industrial Market Bank March 28, Announcement
Power Generating Fair and just 1,181.2 0.58%
the Group goods cooperation price transfer 2013 No. 2013-15
Equipment Co., Ltd.
Hangzhou Steam
Affiliate of Sales of Market Bank March 28, Announcement
Turbine Engineering Steam turbine Fair and just 4,223.36 2.09%
the Group goods price transfer 2013 No. 2013-15
Co., Ltd.
Providing
HSTG Technology Affiliate of Industrial Market Bank March 28, Announcement
of labor Fair and just 5.46
Association the Group cooperation price transfer 2013 No. 2013-15
service
Providing
HSTG Technology Affiliate of Industrial Market Bank March 28, Announcement
of labor Fair and just 5.77
Association the Group cooperation price transfer 2013 No. 2013-15
service
Hangzhou Steam steam turbine\
Holding Sales of Market Bank March 28, Announcement
Turbine Power auxiliary Fair and just 96.21 0.05%
shareholder goods price transfer 2013 No. 2013-15
Group Co., Ltd. machines
Shares held
Greenesol Co. Sales of Market Bank March 28, Announcement
by the Steam turbine Fair and just 3.19
(India) goods price transfer 2013 No. 2013-15
Company
Total -- -- 18,184.95 -- -- -- -- --
23
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
2. Related transactions related to asset purchasing or disposal
Evaluation
Principle of Book value
Subjects of value of Fair market Transaction Gain / loss Index of
Related Type of pricing the of asset Way of Date of
Relationship the related asset value price of trade information
parties trade related transfer payment disclosure
transactions transferred (RMB0’000) (RMB0’000) (RMB0’000) disclosure
transactions (RMB0’000)
(RMB0,000)
Hangzhou
Disposal of
Steam
Affiliate of share Bank Jan 31 Announcement
Turbine Disposals Listed price 2,899.23 3,094 3,094 194.77
the Group equity in transfer 2013 No. 2013-01
Engineering
subsidiaries
Co., Ltd.
3. Material related transactions related to collaborated external investment
None
4. Debts and credits with related parties
Non-operational transaction of credits and debts with related parties
Yes
Is there any Occurred current
Type of credit Openin balance Closing balance
Related parties Relationship Cause non-operational capital period
or debt (RMB0’000) (RMB0’000)
appropriation (RMB0’000)
Credit
Hangzhou Steam Turbine Controlling
receivable from Operational No 250.75 -191.6 59.15
Power Group Co., Ltd. shareholder
related party
Affiliate of the Credit
Hangzhou Steam Turbine
holding receivable from Operational No 1,321.79 -31.85 1,289.94
Power Technologies Co., Ltd.
shareholders related party
Hangzhou Hangfa Power Affiliate of the Credit
Generating Equipment Co., holding receivable from Operational No 306.14 852.66 1,158.8
Ltd. shareholders related party
Hangzhou Nanfangtongda Affiliate of the Credit Operational No 0.44 0.44
24
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Gears Co., Ltd. holding receivable from
shareholders related party
Affiliate of the Credit
Hangzhou Steam Turbine
holding receivable from Operational No 397.47 785.89 1,183.36
Engineering Co., Ltd.
shareholders related party
Affiliate of the Credit
HSTG Nanfang Sales Co. holding receivable from sales of goods No 2 2
shareholders related party
Hangzhou Steam Turbine Affiliate of the Credit
Automobile Sales Service Co., holding receivable from Operational No 0.26 0.26
Ltd. shareholders related party
Hangzhou Steam Turbine Affiliate of the Credit
Power Group Packaged Project holding receivable from Operational No 323.14 323.14
Engineering Co., Ltd. shareholders related party
Hangzhou Steam Turbine Affiliate of the Credit
Automobile Sales Service Co., holding receivable from Operational No 0.36 0.36
Ltd. shareholders related party
Credit
Hangzhou Steam Turbine Controlling
receivable from Operational No 0.11 0.11
Power Group Co., Ltd. shareholder
related party
Hangzhou Hangfa Power Affiliate of the Credit
Generating Equipment Co., holding receivable from Operational No 3,187.53 1,325.95 4,513.48
Ltd. shareholders related party
Affiliate of the Credit
Hangzhou Relian International
holding receivable from Operational No 12.82 12.82
Trading Co.
shareholders related party
former Credit
Guizhou Zhongcheng Concrete
sub-subsidiary of receivable from Non-Operational No 9,626.77 9,626.77
Co., Ltd.
the Company related party
Hangzhou Steam Turbine Controlling Related debtors
Operational No 812.69 755.71 1,568.4
Power Group Co., Ltd. shareholder payable
Affiliate of the
Hangzhou Steam Turbine Related debtors
holding Operational No 30.72 -30.72
Industrial Co. payable
shareholders
Hangzhou Hangfa Power Affiliate of the
Related debtors
Generating Equipment Co., holding Operational No 6,855.35 416.47 7,271.82
payable
Ltd. shareholders
Hangzhou Nanhua Wooden Affiliate of the Related debtors
Operational No 27.88 -9.35 18.53
Packaging Co., Ltd. holding payable
25
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
shareholders
Hangzhou Steam Turbine Affiliate of the
Related debtors
Automobile Sales Service Co., holding Operational No 982 -701.68 280.32
payable
Ltd. shareholders
Affiliate of the
Hangzhou Steam Turbine Related debtors
holding Operational No 3,340.25 -271.75 3,068.5
Engineering Co., Ltd. payable
shareholders
Hangzhou Steam Turbine Controlling Related debtors
Operational No 7.8 -7.8
Power Group Co., Ltd. shareholder payable
Hangzhou Hangfa Power Affiliate of the
Related debtors
Generating Equipment Co., holding Operational No 1.1 -1.1
payable
Ltd. shareholders
Affiliate of the
Hangzhou Steam Turbine Related debtors
holding Operational No 23,576.46 -23,576.46
Engineering Co., Ltd. payable
shareholders
Hangzhou Steam Turbine Controlling Related debtors
Operational No 640.3 49.49 689.79
Power Group Co., Ltd. shareholder payable
Hangzhou Steam Turbine Affiliate of the
Related debtors
Automobile Sales Service Co., holding Operational No 10.93 -0.93 10
payable
Ltd. shareholders
Hangzhou Steam Turbine Affiliate of the
Related debtors
Power Group Packaged Project holding Operational No 157.5 157.5
payable
Engineering Co., Ltd. shareholders
5. Other material related transactions
None
26
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
VII. Fulfilling of material contracts
1. Guarantees
In RMB10 thousand
External Guarantee (Exclude controlled subsidiaries)
Amount of Amount Actual date of
Guarantee Actual amount of Completed or
guarantee and of the occurring (signing Type of guarantee Term Related party or not
provided to guarantee not
date of disclosure guarantee date of agreements
Total of external guarantee approved in the Total of external guarantee actually
0 0
report term (A1) occurred in the report term (A2)
Total of external guarantee approved as of end Total of external guarantee actually
0 0
of report term (A3) occurred as of end of report term (A4)
Guarantee provided to controlled subsidiaries
Actual
Amount Actual date of amount
Guarantee Amount of guarantee and date of Type of Completed or Related party or
of the occurring (signing of Term
provided to disclosure guarantee not not
guarantee date of agreements guarant
ee
Hangzhou
Zhongneng
July 25 2012 6,000 July 30 2012 2,000 Joint liabilities 2012.7.25-2013.7.24 Yes No
Steam Turbine
Power Co., Ltd.
Total of guarantee to subsidiaries approved in the Total of guarantee to subsidiaries actually
0 0
report term (B1) occurred in the report term (B2)
Total of guarantee to subsidiaries approved as of Total of balance of guarantee actually provided to
6,000 0
the report term (B3) the 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 approved in the report term Total of guarantee occurred in the report term
0 0
(A1+B1) (A2+B2)
Total of guarantee approved as of end of report Total of guarantee occurred as of the end of report
6,000 0
term (A3+B3) term（A4+B4）
Percentage of the total guarantee occurred (A4+B4) on net asset of
0%
the Company
In which:
Guarantees provided to the shareholders, substantial controllers and the related
0
parties (C)
Guarantee provided directly or indirectly to objects with over 70% of liability 0
27
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
on asset ratio (D)
The part of total amount of guarantee exceeded 50% of 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 None
Remarks on providing of external guarantees against the procedures None
Particulars about combined guarantees
VIII. Engaging or dismissing of CPA
No dismissing of CPA or engaging of new CPA happened in the report period. Pan-China Certified Public Accountants is still the auditing
body of the Company for year 2013, as decided at the Shareholders’ Meeting 2012.
The Financial Report 2013 was not audited.
28
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Chapter VI. Change of Share Equity and Shareholders
I. Statement of change in shares
Before the change Changed Currently (+,-) After the change
Issuing Transferred
Proportion Bonus Proportion
Amount of new from Others Sub-total Amount
% shares %
shares reserves
I. Shares with
trade restriction 479,902,491 63.65% 0 0 0 0 0 479,902,491 63.65%
conditions
2. State-owned
legal person 479,824,800 63.64% 0 0 0 0 0 479,824,800 63.64%
shares
5. Management
77,691 0.01% 0 0 0 0 0 77,691 0.01%
shares
II. Shares
without trading
274,107,909 36.35% 274,107,909 36.35%
limited
conditions
2. Foreign
shares in
274,107,909 36.35% 0 0 0 274,107,909 36.35%
domestic
market
III. Total of
754,010,400 100% 0 0 0 0 0 754,010,400 100%
capital shares
II. Number of shareholders and shareholding positions
in shares
Total shareholders at the end
17,765
of the report period
Shareholders with over 5% or above of the Company’s shares
Frozen or
Changed
Properties Share Shares held Amount of Amount of pledged
in the
Name of the shareholder of proportion at the end of unconditional unconditional Status
report
shareholder (%) report term shares held shares of Amount
period
shares
Hangzhou Steam Turbine State-owned
63.64% 479,824,000 479,824,000 0
Power Group Co., Ltd. legal person
Overseas
Li Minggong natural 0.98% 7,356,383 0 7,356,383
person
Overseas
NORGES BANK 0.48% 3,634,246 0 3,634,246
legal person
GOVERNMENT OF
Overseas
SINGAPORE INV. CORP.- 0.45% 3,376,460 0 3,376,460
legal person
A/C "C"
BOCHK INVESTMENT
Overseas
FUNDS-BOCHK CHINA 0.31% 2,301,344 0 2,301,344
legal person
GOLDEN DRAGON FUND
Domestic
Hu Xiaofeng natural 0.3% 2,199,155 0 2,199,155
person
AUSTRALIANSUPER PTY Overseas
0.28% 2,108,321 0 2,108,321
LTD legal person
29
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
TOYO SECURITIES ASIA Overseas
0.26% 1,979,581 0 1,979,581
LIMITED-A/C CLIENT. legal person
GUOTAI JUNAN
Overseas
SECURITIES(HONGKONG) 0.26% 1,922,798 0 1,922,798
legal person
LIMITED
Overseas
KGI ASIA LIMITED 0.25% 1,916,631 0 1,916,631
legal person
Particulars about strategic investors or
general corporations becoming among the
None
top 10 shareholders due to share placing (if
any) (See Note 3)
Notes to relationship or “action in
None
concert” among the top ten shareholders.
Top 10 holders of shares without trading limited conditions
Amount of Category of shares
Name of the shareholder unconditional shares
Category of shares Amount
held at end of period
Foreign shares placed in
Li Minggong 7,356,383 7,356,383
domestic exchange
Foreign shares placed in
NORGES BANK 3,634,246 3,634,246
domestic exchange
GOVERNMENT OF SINGAPORE INV. Foreign shares placed in
3,376,460 3,376,460
CORP.- A/C "C" domestic exchange
BOCHK INVESTMENT FUNDS-BOCHK Foreign shares placed in
2,301,344 2,301,344
CHINA GOLDEN DRAGON FUND domestic exchange
Foreign shares placed in
Hu Xiaofeng 2,199,155 2,199,155
domestic exchange
Foreign shares placed in
AUSTRALIANSUPER PTY LTD 2,108,321 2,108,321
domestic exchange
TOYO SECURITIES ASIA LIMITED-A/C Foreign shares placed in
1,979,581 1,979,581
CLIENT. domestic exchange
GUOTAI JUNAN Foreign shares placed in
1,922,798 1,922,798
SECURITIES(HONGKONG) LIMITED domestic exchange
Foreign shares listed
KGI ASIA LIMITED 1,916,631 1,916,631
overseas
Foreign shares placed in
Shanghai Hong Kong Wanguo Securities 1,719,608 1,719,608
domestic exchange
(1) Hangzhou Steam Turbine Group Co., Ltd. – the holding shareholder of the
Company, is not related to any other shareholders. It is unknown whether there is
Action-in-concert among top 10 non-restricted any relationship among the 10 current-share holders.
current share holders, top 10 non-restricted (2) The other shareholders are not regarded as “action-in-concert”
current share holders and top 10 shareholders parties as defined in the “Information Disclosure About Change of
Shareholding Status of PLCs”.
Particulars about shareholders took part in
financing or stock exchanging business (if any) None
(see Note 4)
The shareholders made no agreement on any repurchasing transactions in the report period.
III. Change of holding shareholder or substaintial controller
None of the holding shareholder and the substaintial holder of the Company has been changed
in the report period.
30
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Chapter VII. Particulars about the Directors, Supervisors and
Senior Executives
I. Change of shareholding of directors, supervisors and senior executives
Shares
Shares Shares put Shares
holding at Shares Shares Shares
Status under under under
the increased decreased held at
Name Position of restriction at restriction restriction
beginning this term this term the end
service beginning in the at end of
of term (shares) (shares) of term
of period period pariod
(shares)
Vice
Zhang On
General 89,232 0 0 89,232 0 0 0
Shutan duty
Manager
Wang On
Supervisor 14,356 0 0 14,356 0 0 0
Xiaohu duty
Total -- -- 103,588 0 0 103,588 0 0 0
II. Alternation of Directors, Supervisors, and Senior Executives
Original
Name Current position Type Date Causation
position
Transferred to the position of the general manager of
Hangzhou Steam Turbine Group Co., Ltd. resigned
from the position of general manager of the
Yan Altering of
Director, GM Vice Chairman June 3 2013 Company; was elected director of the 6th term of
Jianhua jobs
Board at the Shareholders’ Meeting 2012; was
elected the vice chairman of the Board at the 1st
meeting of the 6th term of Board
Wang
Expiration June 24
Hongkan Vice Chairman Retired at legal age
of term 2013
g
Was elected director of the 6th term of Board at the
Yang
June 24, Shareholders’ Meeting 2012; was elected the vice
Yongmin Vice Chairman Elected
2013 chairman of the Board at the 1st meeting of the 6th
g
term of Board
Kong June 24, Was elected director of the 6th term of Board at the
Director Elected
Jianqiang 2013 Shareholders’ Meeting 2012
Chu Chief Expiration June 24
Retired at legal age
Shuilong Supervisor of term 2013
Vice General Was engaged vice general manager and chief
Pu Job
Supervisor Manager, Chief June 3, 2013 accountant at the 25th meeting of the 5th term of
Yangshuo transferring
Accountant Board,and resigned as member of the Supervisory
31
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Committee; was engaged as vice general manager
and chief accountant at the 1st meeting of the 6th
term of Board.
Was elected member of the 6th term of Supervisory
Committee at the Shareholders’ Meeting 2012; was
Chief June 24
Li Shijie Elected elected Chairman of the Supervisory Committee at
Supervisor 2013
the 1st meeting of the 6th term of Supervisory
Committee.
Wang June 24 Was elected member of the 6th term of Supervisory
Supervisor Elected
Xiaohu 2013 Committee at the Shareholders’ Meeting 2012
Was engaged the general manager at the 25th
meeting of the 5th term of Board; was elected
Job director of the 6th term of Board at the
Zhen Bin Vice Chairman Director, GM June 3, 2013
transferring Shareholders’ Meeting 2012; was engaged as
General Manager at the 1st meeting of the 6th term
of Board
Director,
Director, Vice Was elected director of the 6th term of Board at the
Standing Vice
General Job June 24, Shareholders’ Meeting 2012; was engaged the vice
Ye Zhong General
Manager, Chief transferring 2013 general manager and chief engineer at the 1st
Manager, Chief
Engineer meeting of the 6th term of Board
Engineer
Chapter VIII. Financial Report
I. Auditors’ Report
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB Yuan
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
Items Closing balance Openning balance
Current asset:
Monetary capital 731,040,457.61 1,100,640,580.62
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 755,228,581.88 803,384,920.81
Account receivable 2,112,057,198.07 1,946,840,383.15
32
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Prepayment 517,482,015.74 275,397,188.58
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable 435,586.13
Other account receivable 35,917,273.01 179,863,895.91
Repurchasing of financial assets
Inventories 1,713,355,079.52 1,451,289,045.64
Non-current asset due in 1 year
Other current asset 470,286,995.99 150,724,250.00
Total of current asset 6,335,367,601.82 5,908,575,850.84
Non-current assets
Disburse of consigned loans
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 475,910,338.22 462,088,813.22
Investment real estates
Fixed assets 611,480,772.10 652,753,812.70
Construction in process 96,043,622.60 108,252,291.56
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 87,831,474.77 210,185,683.85
R&D expense
Goodwill
Long-term amortizable expenses 1,352,509.28 2,618,841.58
Deferred income tax asset 80,679,032.02 93,040,744.20
Other non-current asset 10,200,000.00
Total of non-current assets 1,353,297,748.99 1,539,140,187.11
33
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Total of assets 7,688,665,350.81 7,447,716,037.95
Current liabilities
Short-term loans 118,500,000.00 250,400,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Transactional financial liabilities
Notes payable 127,929,377.00 133,505,278.70
Account payable 997,508,004.77 608,127,982.09
Advances received 1,802,375,214.50 1,632,856,815.04
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 41,165,410.46 27,384,846.15
Tax payable 44,031,213.00 85,182,827.55
Interest payable 228,197.26
Dividend payable 316,454,160.00 9,800,000.00
Other account payable 23,010,004.57 259,432,035.81
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 100,000,000.00
Other current liability
Total of current liability 3,470,973,384.30 3,106,917,982.60
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable 330,000.00 330,000.00
Special payable
Anticipated liabilities
Deferred income tax liability 1,037,517.08 1,037,517.08
Other non-recurring liabilities 11,689,265.00 11,149,265.00
34
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Total of non-current liabilities 13,056,782.08 12,516,782.08
Total of liability 3,484,030,166.38 3,119,434,764.68
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 754,010,400.00 754,010,400.00
Capital reserves 138,953,250.09 139,590,345.09
Less: Shares in stock
Special reserves 10,225,102.29 10,294,548.34
Surplus reserves 518,540,739.23 518,540,739.23
Common risk provision
Retained profit 2,380,405,859.24 2,449,720,889.86
Different of foreign currency translation
Total of owner’s equity belong to the parent company 3,802,135,350.85 3,872,156,922.52
Minor shareholders’ equity 402,499,833.58 456,124,350.75
Total of owners’ equity (or shareholders’ equity) 4,204,635,184.43 4,328,281,273.27
Total of liability and shareholders’ equity (or owners’ equity) 7,688,665,350.81 7,447,716,037.95
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
2. Balance Sheet of the Parent Company
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
Items Closing balance Openning balance
Current asset:
Monetary capital 378,882,861.62 654,577,030.60
Transactional financial assets
Notes receivable 458,101,066.99 555,963,481.26
Account receivable 1,774,659,846.37 1,447,088,649.71
Prepayment 378,998,143.32 148,589,241.50
Interest receivable
Dividend receivable 10,635,586.13
Other account receivable 28,803,574.13 22,772,249.70
Inventories 1,369,532,121.87 1,025,077,300.24
Non-current asset due in 1 year
Other current asset 390,000,000.00 100,000,000.00
Total of current asset 4,778,977,614.30 3,964,703,539.14
Non-current assets
Sellable financial asset
35
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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 306,124,958.35 331,961,743.27
Construction in process 62,308,961.99 78,827,759.37
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 43,188,216.01 44,366,863.73
R&D expense
Goodwill
Long-term amortizable expenses 1,352,509.28 1,352,509.28
Deferred income tax asset 55,106,028.33 55,106,028.33
Other non-current asset
Total of non-current assets 984,863,135.03 1,028,397,365.05
Total of assets 5,763,840,749.33 4,993,100,904.19
Current liabilities
Short-term loans
Transactional financial liabilities
Notes payable
Account payable 731,237,946.61 286,310,510.70
Advances received 1,331,250,167.21 1,219,358,402.37
Employees’ wage payable 29,290,373.64 15,910,246.38
Tax payable 20,497,774.74 36,696,777.46
Interest payable
Dividend payable 301,604,160.00
Other account payable 14,901,075.97 16,507,901.29
Non-current liability due in 1 year 100,000,000.00
Other current liability
Total of current liability 2,428,781,498.17 1,674,783,838.20
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable
Special payable
36
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Anticipated liabilities
Deferred income tax liability 1,037,517.08 1,037,517.08
Other non-recurring liabilities 829,250.00 289,250.00
Total of non-current liabilities 1,866,767.08 1,326,767.08
Total of liability 2,430,648,265.25 1,676,110,605.28
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 754,010,400.00 754,010,400.00
Capital reserves 138,953,250.09 138,953,250.09
Less: Shares in stock
Special reserves 4,671,366.80 4,671,366.80
Surplus reserves 499,784,334.10 499,784,334.10
Common risk provision
Retained profit 1,935,773,133.09 1,919,570,947.92
Different of foreign currency translation
Total of owners’ equity (or shareholders’ equity) 3,333,192,484.08 3,316,990,298.91
Total of liability and shareholders’ equity (or owners’ equity) 5,763,840,749.33 4,993,100,904.19
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
3. Consolidated Income Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Total revenue 2,019,745,830.92 2,138,163,723.76
Incl. Business income 2,019,745,830.92 2,138,163,723.76
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,747,271,800.06 1,728,453,931.77
Incl. Business cost 1,350,033,911.16 1,355,776,212.37
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 17,369,338.95 19,006,186.62
Sales expense 92,037,454.56 75,058,125.24
Administrative expense 262,693,939.02 259,247,423.77
Financial expenses 1,542,054.93 15,625,642.92
Asset impairment loss 23,595,101.44 3,740,340.85
Plus: Gains from fluctuation of fair value (“-“ for loss)
Investment gains (“-“ for loss) 64,696,068.76 30,415,895.65
37
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operation profit (“-“ for loss) 337,170,099.62 440,125,687.64
Plus: Non business income 4,202,690.63 7,991,933.68
Less: Non-business expenses 4,911,095.64 5,244,741.22
Incl. Loss from disposal of non-current assets
IV. Total profit (“-“ for total loss) 336,461,694.61 442,872,880.10
Less: Income tax expenses 47,681,073.69 69,046,850.08
V. Net profit (“-“ for net loss) 288,780,620.92 373,826,030.02
Including: Net profit realized by the entity taken over
before the takover
Net profit attributable to the owners of parent company 232,926,224.38 337,275,897.42
Minor shareholders’ equity 55,854,396.54 36,550,132.60
VI. Earnings per share: -- --
(I) Basic earnings per share 0.31 0.45
(II) Diluted earnings per share 0.31 0.45
VII. Other misc. incomes
VIII. Total of misc. incomes 288,780,620.92 373,826,030.02
Total of misc. incomes attributable to the owners of the
232,926,224.38 337,275,897.42
parent company
Total misc gains attributable to the minor shareholders 55,854,396.54 36,550,132.60
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
4. Income Statement of the Parent Co.
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Turnover 1,507,118,490.87 1,425,851,447.45
Less: Operation cost 1,077,683,194.39 936,260,655.36
Business tax and surcharge 12,387,170.07 12,674,471.52
Sales expense 61,114,849.26 50,139,365.95
Administrative expense 169,451,990.00 157,947,230.92
Financial expenses -871,655.94 2,199,053.51
Asset impairment loss 16,913,497.95 -5,351,657.81
Plus: Gains from fluctuation of fair value (“-“ for
loss)
Investment gains (“-“ for loss) 176,498,662.56 157,568,577.24
Incl. Investment gains from affiliates
II. Operational profit (“-“ for loss) 346,938,107.70 429,550,905.24
38
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Plus: Non business income 902,376.33 2,989,640.13
Less: Non-business expenses 3,851,456.02 2,118,952.36
Incl. Loss from disposal of non-current assets
III. Total profit (“-“ for total loss) 343,989,028.01 430,421,593.01
Less: Income tax expenses 26,182,682.84 41,307,661.96
IV. Net profit (“-“ for net loss) 317,806,345.17 389,113,931.05
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other misc gains
VII. Total of integrated income 317,806,345.17 389,113,931.05
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
5. Consolidated Cash Flow Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
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
1,652,449,867.92 1,856,658,242.54
services
Net increase of customer deposits and capital kept for
brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial
bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 6,777,141.50 36,504,027.15
Other cash received from business operation 12,593,472.87 38,136,192.09
Sub-total of cash inflow from business activities 1,671,820,482.29 1,931,298,461.78
39
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Cash paid for purchasing of merchandise and services 986,252,669.75 1,085,076,438.16
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 347,910,015.56 310,592,825.40
Taxes paid 232,160,309.19 257,211,811.61
Other cash paid for business activities -6,843,710.06 125,000,190.25
Sub-total of cash outflow from business activities 1,559,479,284.44 1,777,881,265.42
Cash flow generated by business operation, net 112,341,197.85 153,417,196.36
II. Cash flow generated by investing
Cash received from investment retrieving 28,992,269.95 5,100,060.30
Cash received as investment profit 87,226,202.37 29,827,626.85
Net cash retrieved from disposal of fixed assets, intangible
1,058,627.54
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
-2,446,457.95 -653,509.83
operational units
Other investment-related cash received 1,268,610,000.00 430,001,993.99
Sub-total of cash inflow due to investment activities 1,382,382,014.37 465,334,798.85
Cash paid for construction of fixed assets, intangible assets
55,060,633.53 32,813,607.75
and other long-term assets
Cash paid as investment 13,211,525.00
Net increase of loan against pledge
Net cash received from subsidiaries and other operational
units
Other cash paid for investment activities 1,588,610,000.00 565,000,114.82
Sub-total of cash outflow due to investment activities 1,656,882,158.53 597,813,722.57
Net cash flow generated by investment -274,500,144.16 -132,478,923.72
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 185,510,000.00 386,400,000.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 185,510,000.00 391,543,994.80
40
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Cash to repay debts 299,949,250.40 310,813,742.00
Cash paid as dividend, profit, or interests 91,502,155.46 295,141,375.57
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 391,451,405.86 606,663,467.81
Net cash flow generated by financing -205,941,405.86 -215,119,473.01
IV. Influence of exchange rate alternation on cash and cash
-1,499,770.84 -101,884.20
equivalents
V. Net increase of cash and cash equivalents -369,600,123.01 -194,283,084.57
Plus: Balance of cash and cash equivalents at the
1,100,640,580.62 662,648,725.65
beginning of term
VI. Balance of cash and cash equivalents at the end of term 731,040,457.61 468,365,641.08
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
6. Cash Flow Statement of the Parent Co.
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
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
1,224,651,064.18 1,098,537,350.18
services
Tax returned
Other cash received from business operation 4,074,801.31 7,303,872.59
Sub-total of cash inflow from business activities 1,228,725,865.49 1,105,841,222.77
Cash paid for purchasing of merchandise and services 851,471,751.94 665,974,287.00
Cash paid to staffs or paid for staffs 247,045,937.50 233,835,788.94
Taxes paid 128,247,174.17 161,812,413.15
Other cash paid for business activities 31,615,515.48 39,394,997.51
Sub-total of cash outflow from business activities 1,258,380,379.09 1,101,017,486.60
Cash flow generated by business operation, net -29,654,513.60 4,823,736.17
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 186,698,662.56 157,568,577.24
Net cash retrieved from disposal of fixed assets, intangible
698,000.00
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 1,040,000,000.00 340,000,000.00
Sub-total of cash inflow due to investment activities 1,226,698,662.56 498,266,577.24
Cash paid for construction of fixed assets, intangible assets and 40,581,203.49 19,778,556.22
41
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
other long-term assets
Cash paid as investment
Net cash received from subsidiaries and other operational
units
Other cash paid for investment activities 1,330,000,000.00 390,000,000.00
Sub-total of cash outflow due to investment activities 1,370,581,203.49 409,778,556.22
Net cash flow generated by investment -143,882,540.93 88,488,021.02
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities
Cash to repay debts 100,000,000.00
Cash paid as dividend, profit, or interests 665,000.00 190,922,266.66
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 100,665,000.00 190,922,266.66
Net cash flow generated by financing -100,665,000.00 -190,922,266.66
IV. Influence of exchange rate alternation on cash and cash
-1,492,114.45 -165,159.93
equivalents
V. Net increase of cash and cash equivalents -275,694,168.98 -97,775,669.40
Plus: Balance of cash and cash equivalents at the
654,577,030.60 335,248,349.26
beginning of term
VI. Balance of cash and cash equivalents at the end of term 378,882,861.62 237,472,679.86
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
42
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
7. Statement of Change in Owners’ Equity (Consolidated)
Prepared by: Hangzhou Steam Turbine Co., Ltd
Amount of the Current Term
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company Minor
Less: Total of owners’
Items Capital Special Surplus Common risk shareholders’
Capital paid in (or Shares in Retained profit Others equity
reserves reserves reserves provision equity
share capital) stock
I. Balance at the end of last
754,010,400.00 139,590,345.09 10,294,548.34 518,540,739.23 2,449,720,889.86 456,124,350.75 4,328,281,273.27
year
Plus: Change of
accounting policy
Correcting of
previous errors
Others
II. Balance at the beginning
754,010,400.00 139,590,345.09 10,294,548.34 518,540,739.23 2,449,720,889.86 456,124,350.75 4,328,281,273.27
of current year
III. Changed this period
-637,095.00 -69,446.05 -69,315,030.62 -53,624,517.17 -123,646,088.84
(“-“ for decrease)
(I) Net profit 232,926,224.38 55,854,396.54 288,780,620.92
(II) Other misc. income
Total of (I) and (II) 232,926,224.38 55,854,396.54 288,780,620.92
(III) Investment or
decreasing of capital by -637,095.00 -597,513.45 -1,234,608.45
owners
1. Capital inputted by
owners
2. Amount of shares paid
and accounted as owners’
equity
3. Others -637,095.00 -597,513.45 -1,234,608.45
(IV) Profit allotment -301,604,160.00 -106,963,952.00 -408,568,112.00
1. Providing of surplus
reserves
2. Common risk provision
3. Allotment to the owners
-301,604,160.00 -106,963,952.00 -408,568,112.00
(or shareholders)
4. Others
(V) Internal transferring of
-637,095.00 -1,886,977.29 -2,524,072.29
owners’ equity
1. Capitalizing of capital
43
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3. Making up losses by
surplus reserves
4. Others -637,095.00 -1,886,977.29 -2,524,072.29
(VI) Special reserves -69,446.05 -30,470.97 -99,917.02
1. Provided this year 870,386.28 127,024.29 997,410.57
2. Used this term 939,832.33 157,495.26 1,097,327.59
(VII) Others
IV. Balance at the end of
754,010,400.00 138,953,250.09 10,225,102.29 518,540,739.23 2,380,405,859.24 402,499,833.58 4,204,635,184.43
this term
In RMB Yuan
Amount of Last Year
In RMB Yuan
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 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
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
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
current year
III. Changed this period (“-“ for
125,668,400.00 10,294,548.34 65,357,369.03 355,573,663.14 8,303,349.81 565,197,330.32
decrease)
(I) Net profit 735,102,032.17 126,258,142.38 861,360,174.55
(II) Other misc. income
Total of (I) and (II) 735,102,032.17 126,258,142.38 861,360,174.55
(III) Investment or decreasing of
15,200,000.00 15,200,000.00
capital by owners
1. Capital inputted by owners 15,200,000.00 15,200,000.00
2. Amount of shares paid and
44
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
accounted as owners’ equity
3. Others
(IV) Profit allotment 125,668,400.00 65,357,369.03 -379,528,369.03 -137,932,820.69 -326,435,420.69
1. Providing of surplus reserves 65,357,369.03 -65,357,369.03
2. Common risk provision
3. Allotment to the owners (or
125,668,400.00 -314,171,000.00 -119,486,887.82 -307,989,487.82
shareholders)
4. Others -18,445,932.87 -18,445,932.87
(V) Internal transferring of
owners’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves 10,294,548.34 4,778,028.12 15,072,576.46
1. Provided this year 10,835,589.65 5,285,183.46 16,120,773.11
2. Used this term 541,041.31 507,155.34 1,048,196.65
(VII) Others
IV. Balance at the end of this term 754,010,400.00 139,590,345.09 10,294,548.34 518,540,739.23 2,449,720,889.86 456,124,350.75 4,328,281,273.27
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
45
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
8. Statement of Change in Owners’ Equity (Parent Co.)
Prepared by: Hangzhou Steam Turbine Co., Ltd
Amount of the Current Term
In RMB Yuan
Amount of the Current Term
Items Capital paid in (or share Less: Shares Special Common risk Total of owners’
Capital reserves Surplus reserves Retained profit
capital) in stock reserves provision equity
I. Balance at the end of last year 754,010,400.00 138,953,250.09 4,671,366.80 499,784,334.10 1,919,570,947.92 3,316,990,298.91
Plus: Change of accounting
policy
Correcting of previous
errors
Others
II. Balance at the beginning of
754,010,400.00 138,953,250.09 4,671,366.80 499,784,334.10 1,919,570,947.92 3,316,990,298.91
current year
III. Changed this period (“-“ for
16,202,185.17 16,202,185.17
decrease)
(I) Net profit 317,806,345.17 317,806,345.17
(II) Other misc. income
Total of (I) and (II) 317,806,345.17 317,806,345.17
(III) Investment or decreasing of
capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment -301,604,160.00 -301,604,160.00
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
-301,604,160.00 -301,604,160.00
shareholders)
4. Others
(V) Internal transferring of
owners’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
46
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
reserves
4. Others
(VI) Special reserves
1. Provided this year 629,128.85 629,128.85
2. Used this term 629,128.85 629,128.85
(VII) Others
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 4,671,366.80 499,784,334.10 1,935,773,133.09 3,333,192,484.08
Amount of Last Year
In RMB Yuan
Amount of Last Year
Items Capital paid in (or share Less: Shares Special Common risk Total of owners’
Capital reserves Surplus reserves Retained profit
capital) in stock 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
628,342,000.00 138,953,250.09 434,426,965.07 1,645,525,626.62 2,847,247,841.78
current year
III. Changed this period (“-“ for
125,668,400.00 4,671,366.80 65,357,369.03 274,045,321.30 469,742,457.13
decrease)
(I) Net profit 653,573,690.33 653,573,690.33
(II) Other misc. income
Total of (I) and (II) 653,573,690.33 653,573,690.33
(III) Investment or decreasing of
capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment 125,668,400.00 65,357,369.03 -379,528,369.03 -188,502,600.00
1. Providing of surplus reserves 65,357,369.03 -65,357,369.03
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’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
47
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves 4,671,366.80 4,671,366.80
1. Provided this year 4,671,366.80 4,671,366.80
2. Used this term
(VII) Others
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 4,671,366.80 499,784,334.10 1,919,570,947.92 3,316,990,298.91
Legal prepresentative: Nie Zhonghai CFO: Pu Yangshuo Accounting Manager: Jiang Rong
48
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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. Principal Accounting Policies, 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.
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 揈nterprise Accounting Standard No. 33 –
49
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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
At intitial recognition, foreign currency trades are translated into RMB at the rate of the day when the trades are
made.
(2) Translating of financial statements in foreign currencies
Foreign currency trades are translated into RMB at the rate of the day when the trades are made. Those
balances of foreign currencies and monetary items in foreign currencies are accounted at the exchange rate of the
balance sheet date. Exchange differences, other than special loans satisfying the conditions of capitalization, are
accounted into current income account. Non-monetary items in foreign currencies and on historical cost are
translated at the rate of the trade day. Non-monetary items in foreign currencies and on fair value are translated
at the rate of the day when the fair value is recognized, where the differences are accounted as gain/loss from
change of fair value.
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.
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.
(1) Categorising of financial instruments
Type of finance asset and finance debt
(2) Recognition basis and measurement of financial instruments
Basis of recognition and accounting of finance asset and finance debt
When the Company is one part of the finance instrument contract, one finance asset or debt is recognized.
When on recognizing initially finance asset or debt, it is measured by fair value, for the finance asset or debt
which appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, the
related transaction expenses are directly accounted into current gain and loss; for other finance asset and debt, the
related transaction expenses accounted into the initial recognition account.
The Company future measures finance asset by fair value without deducting future possible transaction fee
but with exception: (1) Due investment, debt and account receivable are measured by actual interest rate
according to the amortized costs. (2) Equity instrument investment which have no quote in active market and
which fair value can’t be measured reliably, and its derived finance assets which are connected with the equity
50
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
instrument and which are summarized through the equity instrument, are measured by cost.
The Company conduct successive measure of finance debt according to amortized cost by actual interest rate
with exception as following: (1) finance debt which appointed to be measured at fair value with their changes are
accounted into current gain/loss accounts, is measured at fir value without deducting possible future transactional
fee at settlement; (2) Equity instrument investment which have no quote in active market and which fair value
can’t be measured reliably, and its derived finance assets which are connected with the equity instrument and
which are closed off through the equity instrument, are measured by cost. (3) finance debt sponship contracts
which are not appointed to be measured at fair value with their changes are accounted into current gain/loss
accounts, or debt agreements at rate lower than market rate and which are not appointed to be measured at fair
value with their changes are accounted into current gain/loss accounts, are measured at the higher value between
the optimal estimated value payable according to current obligations and the surplus value from which the initial
recognition value deduct the accumulated amortized amount according to the actual interest rate.
Gain or loss from fluctuation of financial assets or liabilities are handled at the following ways, except for
relating to hedge instrument.
(1) Gain or loss from fluctuation of fair value of financial assets or liabilities and accounted into current
gain/loss account, are accounted into gain/loss of fluctuation of fair value. Interests or cash dividend received in
the period of holding these assets are recognized as investment gains. When they are disposed, the difference
between the amount actually received and initially booked value is recognized as investment gains, and adjust the
gain/loss from fair value fluctuation.
(2) Fluctuation of fair value of sellable financial assets accounted into capital reserves; interests gained at
actual interest rate are accounting into investment gains; the cash dividend received from sellable instrument
investment, are accounted into investment gains when distributed; At disposal of these investment, the difference
between actual amount received and book value are recognized as investment gains after deducting of
accumulated change of fair value which are originally accounted into capital reserves.
As soon as the contract rights of acquiring the cash flow of particular financial asset have been terminated or
almost all of the risks and rewards attached to the financial asset have been transferred, recognition of the
financial asset is terminated.
(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
51
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
recognition part of the accumulated fair value changes which were accounted directed into ownership rights.
(4) Temination condition for recognition of financial liabilities
The financial liabilities shall be terminated in all or partially as soon as the obligations attached to it are
released.
(5) Recognition of fair values of financial assets and liabilities
Basis of recognition and accounting of fair value for the main finance asset and finance debt
For the finance asset or debt which active market exists, the Company recognize the fair value according to
the quote on the active market; for the finance asset or debt which active market not exists, the Company
recognized the fair value using estimation technology (including reference of the latest market prices from
freewill transactions by persons familiar with conditions, reference of the current fair value of other similar
finance instrument in characteristics, discounted cash flow models and Option Pricing Model); for the initially
acquired or initial finance asset or finance debt, the Company recognize the fair value basis on the market trading
price.
(6) Impairment test and basis of provisions 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.
(7) If investment held to mature is recategorized to sellable financial assets, please state th intention or
evidence of change in capability
10. Recognition standard and providing basis of bad debt provision on receivable accounts
1. Recognition and providing of bad debt provision on individual receivable account with large amount
2. Recognition and providing basis of bad debt reserves for group of receivable accounts with similar
characteristics of credit risks
3. Recognition and providing methods of receivable account with minor amount and under individual
52
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
impairment test
As for other receivable accounts such as notes, prepayments, interests, and long-term receivables, bad debt
provisions will be provided upon the differences of expectable cash flow lower than the booked value.
No bad debt provision is provided for receivables and other receivables occurred between the companies within
the consolidated financial statements.
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard amount of individual Accounts take over 10% of the book balance of
account with large amount receivable accounts
Impairment test performed individually, bad debt
Basis of bad debt provision 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
Basis of bad debt
Name of the portfolio Basis of recognition for portfolios
provision
Group by age analysis Age analysis method With similar characteristics of credit risks
Bad debt provisions are provided on age analyze basis in the portfolio
Age Provision rate for receivables (%) Rate for other receivables (%)
Within 1 yr, (included) 5% 5%
1-2 yrs 20% 20%
2-3 years 40% 40%
Over 3 years 60% 60%
3-4 yrs 60% 60%
4-5 yrs 60% 60%
over 5 yrs 60% 60%
Bad debt provisions are provided on percentage basis in the portfolio
Not applicable
Bad debt provisions are provided on other basis in the portfolio
Not applicable
(3) Receivable accounts with minor amount but bad debt provisions are provided individually
When there is significant difference between the current value of future
Basis of providing bad debt
cash flow of the receivable account and the current value of future cash
individually
flow of the group
Impairment test performed individually, bad debt provision will be
Basis of bad debt provision provided at the difference of expected cash flow lower than the book
value.
11. Inventories
(1) Inventory classification
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and goods
53
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
in manufacturing procedure or working procedure.
(2) Pricing of inventory to be delivered
Pricing method: firt-in-first-out
Delivered out materials are accounted by weighted average method, issued out finished products are
accounted at individual price.
(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 system: perpetual 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
Basis of amortizing: one-off
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).
(2) Successive measurement and recognition of gain/loss
54
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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. 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.
(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
Fixed assets are booked at practical cost. Depreciation started at the next month of the asset become usable
on age average basis.
55
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Categories Depreciation age (year) Residue rate (%) Annual depreciation rate (%)
Houses & buildings 20---30 4% 4.8----3.2
Equipment & machinery 8---15 4% 12----6.4
Office equipment 5 4% 19.2
(4) Impairment test and providing of impairment provisions on fixed assets
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.
(5) Other remarks
14. Construction-in-progress
(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
When there is evidence showing that the construction-in-process has impaired at the balance sheet day,
impairment provision shall be provided at the balance of the book value over the retrievable amount.
15. 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.
(2) Capitalizing of loan expenses is terminated as soon as the asset satisfying the capitalizing conditions
reaches the state of usable or sellable as expected.
(3) Temporarily suspension of capitalizing period
(1) If irregular interruption occurred in the purchasing or construction process of the assets satisfying the
capitalizing conditions, and suspended for over successive three months, capitalizing of loan expenses is
suspended; loan expenses occurred during the suspension period are recognized as current expenses until the
purchasing or construction process resumes.
(4) Calculating of borrowing expense capitalizing
Special loans raised for purchasing or construction of assets satisfying the conditions of capitalization,
56
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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.
16. Biological assets
17. Petrolum assets
18. 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
When an intangible asset with particular useful life and impaired at the date of the balance sheet, impairment
provision shall be provided at the balance of book value over retrievable value.
Items Expected useful life Basis
Land using right 50 On useful life of land using rights
Operation rights of waste
on actual operation term On actual business term
heat power plant
Mining rights 10-30 Useful life
Others 5 Expected useful life
(3) Intangible assets without certain useful life
(4) Providing of intangible asset impairment provisions
When evidence showing that impairment occurred on intangible assets with definit useful life at the balance
sheet day, impairment provision shall be provided at the balance of book value over the retreivable value.
Impairment test shall be done on intangible assets with no definit useful life or intangible assets had not reached
the useful status, with or without evidence.
(5) Dividing of research stage and development stage of internal R&D projects
(1) Research phase: refers to innovative research approaches carried out to acquire and comprehend new science
or technology.
(2) Development phase: refers to application of results of particular research or other knowledge in a project or
design with purpose of creating new materials, devices, or products
(6) Accounting of internal R&D expenses
Expenditures of internal researching projects are accounted into current term gain and loss when happens. The
development period expenditures are recognized as intangible assets when fulfill following conditions: (1) The
intangible asset is completed and technically possible to be used or sold; (2) With intention to complete the
intangible asset for purpose of use or sale; (3) Evidence showing that there are markets or the products produced
with using of the intangible asset, or markets of the intangible asset itself, by which the intangible asset may
produce financial benefits. Intangible assets used inside the Company must be approved for their usable characters.
(4) Developing of the intangible assets are supported by sufficient technical, financial, and other resources, and
the intangible assets can be used or sold. (5) Expenditures occurred in developing of the intangible asset may be
reliably measured.
19. Long-term expenses to be amortized
57
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
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.
20. Asset transferring with repurchasing terms
21. Predicted liabilities
(1) Recognition of expectible liabilities
(2) Accounting of estimated liabilities
22. Share payment and equity instruments
(1) Category of share payment
(2) Recognition of fair value of equity instruments
(3) Recognition basis of best estimation of exercisable equity instruments
(4) Accounting treatment of share payment plan to be implemented, revised, and terminated
23. Repurchasing of the Company’s shares
24. Turnover
(1) Recognition time for sales of goods
Sales income is recognized when all of these conditions are satisfied: Major risks and rewards attached to the
goods have been transferred to the purchaser; The Company holds neither successive management power which is
normally attached to ownership, nor effective control, over the goods which have been sold out; Amount of
income may be reliably measured; when the costs, occurred or will occur, may be measured reliably.
(2) 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) Basis of recognizing service income
At balance sheet day, those service trades (simultaneously satisfying the requirements of those: income can
be measured reliably, related economic benefit will flow in very possibly, transaction procedure can be confirmed
reliably, happened and happening cost can be measured reliably) which can be reliably estimated are recognized
at the percentage of completion, and progress of completion of service is decided by the portion of costs occurred
over the estimated total costs. At balance sheet day, those service trades which can not be reliably estimated, if the
happened services cost will be compensated, the services income are recognized according to happened service
cost and transited to service cost according to same amount; if the happened services cost will not be compensated,
the happened services cost are accounted into current term’s gain or loss and the services income will not be
recognized.
(4) Basis and method to determine completion progress for income from service providing and construction
contracts on percentage basis
(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.
58
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(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.
25. Government allowance
(1) Categories
Government subsidies are divided into asset-related subsidies and income-related subsidies.
(2) Accounting treatment
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.
Asset-related government subsidies are recognized as deferred income, amortized straight to its useful life
and recorded into current income account. Those income-related government subsidies used to makeup expenses
or losses in succeeding periods are recognized as 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.
26. Deferred income tax asset and deferred income tax liabilities
(1) Basis for recognition of deferred income tax assets
Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or paying
the liabilities according to difference (for not recognized assets and liabilities which tax basis can be recognized,
the difference is between the tax basis and the book value) between book value of the assets or liabilities and the
tax basis.
(2) 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.
27. Operational leasing and financial leasing
(1) Accounting of operational leasing
(2) Accounting treatment of financed leasing
(3) Accounting treatment of renting back after sales
28. Sellable assets in possession
(1) Recognition of sellable assets in possession
(2) Accounting treatment of sellable assets in possession
29. Securitilization of asset
59
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
30. Hedging instruments
31. Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
No
(1) Change of accounting policies
Is there any change in accounting policies in the report period
No
(2) Change of accounting estimations
Is there any change in accounting estimations in the report period
No
32. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
No
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
No
(2) Future adoption method
Is there any future adoption method applyable to accounting errors with previous periods found in the report
period.
No
33. Other principal accounting policies, estimations and preparation method of financial statements
None
V. Taxation
1. Main categories and rates of taxes
Class of tax Tax basis Tax rate
VAT sales of goods or providing of taxable labor service 17%
Operational tax Taxable turnover 5%
City maintenance
and construction Turnover tax payable 7%
tax
Enterprise income
Amount of income taxable [Note 1]
tax
For those on price basis, taxes are paid at 1.2% of the balance of original value of
Property tax the property after deducting of 30%; for those on rental basis, taxes are paid at 1.2%、12%
12% of the rental.
Education surtax Turnover tax payable 3%
Local education
Turnover tax payable 2%
surcharges
Income tax rate applyable to branches and factories.
60
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
[Note] The Company and its subsidiaries Hangzhou Zhongneng Steam Turbine Power Co., Ltd., Hangzhou
Steam Turbine Casting Co., Ltd., Zhejiang Huayuan Steam Turbine Co., Ltd., Hangzhou Guoneng Steam turbine
Engineering Co., Ltd. were subject to 15% of tax, and the others were subject to 25% of tax.
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 document浙科发高[2011]262号 issued by Zhejiang Department of Science and Technology,
Zhejiang Huayuan Steam Turbine Machinery Co., Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co.,
Ltd. were named High-tech Enterprises of 2011. Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. is
enjoying the preferancial tax rate of 15% for the years 2011-2013.
3. Other statements
61
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
VI. Enterprise Merger and Consolidating of Financial Statements
1. Particulars of the subsidiaries
(1) Subsidiaries obtained through incorporation or investment
In RMB
Balanc
Balance of the
e of Amount
Act owners’ equity of
other for
ual parent co. after
items deductin
inv deducting of the
actuall Co g minor
Ownershi Busine est exceeding part of
y Share Voting nso Minor sharehold
p of the Reg. ss Registered me minority
Full name of the subsidiary Business Scope formed proport power lid shareholders’ er’s
subsidiar Add. propert capital nt shareholders’ share
net ion % % ate equity equity in
y y at of loss over the
invest d? the minor
yea share of minority
ment in sharehold
r shareholders in the
the er’s
end owners’ equity at
subsidi equity
beginning of year
aries
Zhejiang Steam Trubine Controlle Hang
Development of electrical &
Packaged Technologies d zhou Manufa Ye
51 mil mechanical equipment cotrol unit 51.84% 51.84% 37,759,333.64
Development Co., Ltd. (the subsidiari Zheji cturing s
and technical consulting service
Packaged Tech Co.) es ang
Designing and manufacturing of
Controlle Hang steam turbines and supplementary
Hangzhou Zhongneng Steam
d zhou Manufa equipment and parts; sales of the Ye
Turbine Power Co., Ltd. 92.5 mil 51.6% 51.6% 147,425,987.01
subsidiari Zheji cturing Company’s products; contracting s
(Zhongneng Co.)
es ang and consulting of mid-small size
power plants
Hangzhou Steam Turbine Controlle Hang Manufa 22 mil Manufacturing of cast iron and 51% 51% Ye 78,382,023.16
62
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Casting Co., Ltd. (Casting Co.) d zhou cturing steel products; installation and s
subsidiari Zheji maintenance of casting
es ang equipments; sales of the
Company’s products
Controlle Hang
Hangzhou Steam Turbine
d zhou Manufa Manufacturing of auxiliary Ye
Auxiliary Machinery Co., Ltd. 80 mil 76.5% 76.5% 64,316,761.96
subsidiari Zheji cturing equipment of steam turbine s
(Auxiliary Machinery Co.)
es ang
Hangzhou Steam Turbine Controlle Hang
Manufacturing and processing of
Machinery Equipment Co., d zhou Manufa Ye
30 mil steam turbine auxiliary parts and 52% 52% 55,197,343.29
Ltd. (Machinery Equipment subsidiari Zheji cturing s
other machinery auxiliary parts
Co.) es ang
Holding
Huzh
Zhejiang Huayuan Steam subsidiar
ou Manufa Manufacturing and processing of Ye
Turbine Machinery Co., Ltd. y of the 21 mil 75% 75% 0.00
Zheji cturing steam turbine parts s
(Huayuan Co.) Machiner
ang
y Co.
Holding
Steam turbine periphery; service:
subsidiar Hang
Hangzhou Guoneng Steam design, installation, consultation,
y of the zhou Manufa Ye
Turbine Engineering Co., Ltd. 40 mil technology service of steam 75% 75% 0.00
Auxiliary Zheji cturing s
(Guoneng Co.) turbine system and related
Machine ang
equipments.
Co.
Holding Hang Designing of cooling and
Hangzhou Pangtong Electronic
subsidiar zhou Manufa depressurizing equipment and Ye
Equipment Co., Ltd. (Pangtong 1 mil 70% 70% 423,547.16
y of Zheji cturing accessories; manufacturing s
Co.)
Zhongne ang (assembling only): cooling and
63
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
ng Co. depressurizing equipment;
wholesale and retailing: cooling
and depressurizing equipment and
related equipment
Holding
Hang
subsidiar
Hangzhou Kaineng Forge Co., zhou Manufa Ye
y of 2 mil Forging and casting materials 100% 100% 0.00
Ltd. (Kaineng Co.) Zheji cturing s
Casting
ang
Co.
Steam turbine, gass turbine,
generator, gear box, boiler, air
cooler, condensator, power plant
Fully-ow Hang
auxiliary equipment, water
Zhejiang Turbine Import & ned zhou Comm Ye
20 mil turbine, air compressor, fan, 100% 100% 0.00
Export Co., Ltd. (Turbine Co.) subsidiar Zheji erce s
controlling equipment, spare
y ang
parts, and materials. Sales and
assembling of the above, import
and export.
Holding Shiji
Sales, technical consulting,
Shijiazhuang Hangheng Steam subsidiar azhu Service
service, adjusting, and Ye
Turbine Tech Service Co., Ltd. y of ang industr 3 mil 60% 60% 816,611.39
maintaining of steam turbines and s
(Shijiazhuang Service Co.) Zhongne Hebe y
auxiliary facilities and parts
ng Co. i
Kunming Hangzhong Steam Holding Kun Installation, testing, and technical
Service
Turbine Power Tech Service subsidiar ming consulting of steam turbines, Ye
industr 1.2 mil 60% 60% 710,878.40
Co., Ltd. (Kunming Service y of Yunn electric generators, and power s
y
Co.) Zhongne an equipment; sales of parts of steam
64
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
ng Co. turbine, electric generator, and
power equipment
Sales of steam turbines, steam
Holding
Wulu machine, generator set, and parts;
Wurumuqi Hangzhongneng subsidiar Service
muqi developing, promotion, service of Ye
Steam Turbine Service Co., y of industr 3 mil 60% 60% 1,066,005.05
Xinji energy-saving technologies, s
Ltd. (Wurumuqi Service Co.) Zhongne y
ang maintaining, reconstruction of
ng Co.
high-tech products
Holding Technical service, installation,
Tangshan Hangneng Steam Tang
subsidiar Service and maintaining of steam
Turbine Power Tech Service shan Ye
y of industr 2 mil turbines; sales of steam turbine 60% 60% 674,524.81
Co., Ltd. (Tangshan Service Hebe s
Zhongne y and auxiliary equipment, and
Co.) i
ng Co. parts
Steam turbine and auxiliary
equipment, spare parts, testing,
Holding repairing, technical consultancy
Jilin Hangzhongneng Steam subsidiar Service and service; design of
Ye
Turbine Power Tech Service y of Jilin industr 2 mil electro-mechanical projects, 60% 60% 780,256.80
s
Co., Ltd. (Jilin Service Co.) Zhongne y chemical projects, environment
ng Co. projects; installation of chemical
equipment and electro-mechanical
equipment
Holding
Nann Installation, repairing, technical
Guangxi Hangzhongneng subsidiar Service
ing reconstruction, technical service, Ye
Steam Turbine Tech Service y of industr 2 mil 60% 60% 631,519.74
Guan of steam turbine; sales of steam s
Co., Ltd. Zhongne y
gxi turbine parts
ng Co.
65
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Development of steam turbine;
Holding sales, installation, testing,
Chen
Chengdu Hangzhongneng subsidiar Service maintainance, technical
gdu Ye
Science & Tech Co., Ltd. y of industr 2 mil consultancy and service of 60% 60% 566,705.44
Sichu s
(Chengdu Science Co.) Zhongne y machinery, chemical products
an
ng Co. (exclude hazard products), and
steam turbine
Holding
Luoy Technical consultancy,
Luoyang Hangqi Steam subsidiar Service
ang installation, maintainance of Ye
Turbine Tech Service Co., Ltd. y of industr 2 mil 60% 60% 709,052.62
Hena steam turbine; sales of steam s
(Luoyang Service Co.) Zhongne y
n turbine and parts
ng Co.
Production of boilers and
products; design and technical
Subsidiar Hang service of boiler, boiler parts,
Hangzhou Hangqilun Boiler
y of zhou Manufa pressure tanks, energy products, Ye
Co., Ltd. (Hangqilun Boiler 20 mil 40% 13,039,283.09
Zhongne Zheji cturing environment protection products; s
Co.)
ng Co. ang whole sale and retailing of
boilers; all legal items that are not
under restriction.
66
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Supplementary remarks on subsidiaries obtained through incorporation or investment
(2) Subsidiaries procured through merger of entities under common control
Not applicable
(3) Subsidiaries procured through merger of entities under different control
Not applicable
2. Entities with special purposes or entities on which the Company has cotrolling power thorugh entrusted
operation or leasing
Not applicable
3. Change of consolidation range
Change of consolidation range:
1. Subsidiaries excluded in the consolidated accounts in the report term
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.
Comparing with the previous year, 0 entities newly added (or acquired) and 1 eliminated in the report period.
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.
4. Entities included or excluded in the consolidation range in the report period
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.
In RMB
Net profit from beginning of
Name Net asset at day of disposal
year to the date of disposal
Hangzhou Steam Turbine Power Group
15,783,097.32 -2,397,169.67
Packaged Project Engineering Co., Ltd.
Supplementary statements on entities newly consolidated or eliminated from the consolidation
5. Merger of entities under common control in the report term
None
6. Merger of entities under different control in the report term
None
7. Subsidiaries reduced for disposal of shares and lose of control power
None
8. Reverse acquisition occurred in the report period
None
9. Takeover occurred in the report period
None
10. Exchange rate of main accounts of overseas businesses
VII. Notes to Items in the Consolidated Financial Statements
67
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
1. Monetary capital
In RMB
End of term Beginning of term
Amount of Amount of
Items Exchange Exchange
foreign Amount RMB foreign Amount RMB
rate rate
currency currency
Cash: -- -- 351,616.13 -- -- 211,651.43
RMB -- -- 351,616.13 -- -- 199,080.43
USD 2,000.00 6.2855 12,571.00
Bank account: -- -- 689,944,741.48 -- -- 1,054,918,406.92
RMB -- -- 661,837,130.66 -- -- 1,030,729,013.29
USD 4,429,209.04 6.178739 27,366,928.40 3,812,445.34 6.2855 23,963,125.18
JPY 3,459.00 0.062608 216.56 3,459.00 0.073049 252.68
EURO 91,942.22 8.053600 740,465.86 26,307.60 8.3176 218,816.09
HKD 8,879.18 0.81085 7,199.68
Other monetary capital -- -- 40,744,100.00 -- -- 45,510,522.27
RMB -- -- 40,744,100.00 -- -- 45,510,522.27
Total -- -- 731,040,457.61 -- -- 1,100,640,580.62
Please state individually on accounts under pledge, mortgage, frozen, placed in overseas bank account, or with
potential risk of retrieving
2. Notes receivable
(1) Categories of notes receivable
In RMB
Categories End of term Beginning of term
Bank acceptance 752,045,091.88 800,194,449.81
Commercial acceptance 3,183,490.00 3,190,471.00
Total 755,228,581.88 803,384,920.81
(2) Notes receivable under pledge
None
(3) Notes transferred to account receivable for the issuer is not able to execute the liability, and notes
endorsed to other parties but are not mature yet at the end of period
Notes transferred to account receivable due to failure of the issuer
None
Notes endorsed to other parties but not due
In RMB
Issuer Date of issue Expired on Amount Note
Shanxi Taigang Stainless Steel Co., Ltd. March 28, 2013 Sept 28 2013 10,000,000.00
Shaoxing Tianpu Plastic Goods Co., Ltd. Jan 29 2013 July 29 2013 10,000,000.00
China Petro Chemical Co., Ltd. Material
Apr 19 2013 July 19, 2013 10,000,000.00
and Equpment Dept.
68
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Xi’an Shanggu Power Co., Ltd. Jan 7 2013 Jul 7 2013 9,000,000.00
Xi’an Shanggu Power Co., Ltd. May 22 2013 Nov 22 2013 8,000,000.00
Total -- -- 47,000,000.00 --
3. Dividend receivable
In RMB
Increased
Beginning of Decreased End of Cause for not Impairment of
Items this
term this period term retrieved the account
period
Dividend receivable with
435,586.13 435,586.13
age within 1 year
In which: -- -- -- -- -- --
Greenesol Co. (India) 435,586.13 435,586.13
In which: -- -- -- -- -- --
Total 435,586.13 435,586.13 -- --
Remarks
4. 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
Proportio Proportio Proportio Proportion
Amount Amount Amount Amount
n% n% n% %
Receivables provided bad debt provision in groups
2,556,960 444,903,2 2,329,16 437,343,73
Group by age analysis 99.63% 17.4% 97.19% 18.78%
,399.74 01.67 5,332.79 4.16
2,556,960 444,903,2 2,329,16 437,343,73
Sub-total of group 99.63% 17.4% 97.19% 18.78%
,399.74 01.67 5,332.79 4.16
Account receivable
with minor individual 9,492,990 9,492,990 67,407,5 12,388,716.
0.37% 100% 2.81% 18.38%
amount but bad debt .65 .65 00.67 15
provision is provided
2,566,453 454,396,1 2,396,57 449,732,45
Total -- -- -- --
,390.39 92.32 2,833.46 0.31
Remarks on categories of receivable account
Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
Account receivable in the portfolio which are provided bad debt provision on age basis
69
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
In RMB
End of term Beginning of term
Book balance Book balance
Age Bad debt
Proportio Bad debt provision Proportion
Amount Amount provision
n% %
within 1 year
In which: -- -- -- -- -- --
Subtotal of
1,437,967,136.25 56.23% 71,894,656.84 1,242,442,508.43 53.34% 62,122,125.43
within 1 year
1-2 years 617,932,503.58 24.17% 123,590,546.32 545,859,269.77 23.44% 109,171,853.95
2-3 years 256,092,287.12 10.02% 102,436,914.84 292,341,890.00 12.55% 116,936,756.00
Over 3 years 244,968,472.79 9.58% 146,981,083.67 248,521,664.59 10.67% 149,112,998.78
3-4 years 120,777,857.13 4.72% 72,466,714.27 150,669,508.42 6.47% 90,780,418.15
4-5 years 69,451,583.93 2.72% 41,670,950.36 47,249,878.45 2.03% 34,085,792.26
over 5 yrs 54,739,031.73 2.14% 32,843,419.04 50,602,277.72 2.17% 24,246,788.37
Total 2,556,960,399.74 -- 444,903,201.67 2,329,165,332.79 -- 437,343,734.16
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of
period
In RMB
Description of the
Book balance Bad debt provision Providing rate (%) Reason to provide
receivable accounts
NBDL Power Station
9,492,990.65 9,492,990.65 100% Hard to recover
in India
Total 9,492,990.65 9,492,990.65 -- --
(2) Receivable accounts written back or retrieved in the report period
None
(3) Receivable accounts actually written off in the report period
None
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
In RMB
End of term Beginning of term
Bad debt
Name of the companies Bad debt provision
Book balance provision Book balance
provided
provided
Hangzhou Steam Turbine 591,500.00 310,500.00 2,507,500.00 608,000.00
70
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Power Group Co., Ltd.
Total 591,500.00 310,500.00 2,507,500.00 608,000.00
(5) Top 5 debtors in the receivable accounts
In RMB
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables (%)
Shenyang Turbine Non-related
505,264,672.38 over 1-3 years 19.69%
Machinery Co., Ltd. company
Xi’an Shanggu Power Co., Non-related
297,656,650.32 over 1-3 years 11.6%
Ltd. company
Hebei Shougang Qian’an Non-related
224,860,000.00 within 1 year 8.76%
Steel & Iron Co., Ltd. company
Jingneng Kangbashi
Non-related
Thermal Powerplant Co., 47,196,000.00 within 1 yr 1.84%
company
Ltd. in Inner Mongolia
Non-related
Hitachi (China) Ltd. 42,385,500.00 within 1 year 1.65%
company
Total -- 1,117,362,822.70 -- 43.54%
(6) Account due from related parties
In RMB
Portion in total
Name of the companies Relation with the Company Amount
receivables (%)
Hangzhou Hangfa Power
Affiliate of the Group 11,588,030.98 0.45%
Generating Equipment Co., Ltd.
Hangzhou Nanfangtongda Gears
Affiliate of the Group 4,434.00 0%
Co., Ltd.
Hangzhou Steam Turbine
Affiliate of the Group 11,833,590.00 0.46%
Engineering Co., Ltd.
Hangzhou Steam Turbine Power
Affiliate of the Group 12,899,355.38 0.5%
Technologies Co., Ltd.
Greenesol Co. (India) Shares held by the Company 141,423.75 0.01%
Hangzhou Steam Turbine Power
Group Packaged Project Affiliate of the Group 3,231,426.05 0.13%
Engineering Co., Ltd.
Total -- 39,698,260.16 1.55%
(7) Recognition of receivable accounts terminated
None
(8) For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
In RMB
71
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Items End of term
Assets:
Liabilities:
5. Other account receivable.
(1) Other receivable account on categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proporti Proporti Proportio Proporti
Amount Amount Amount Amount
on % on % n% on %
Other receivables
with major individual
96,267,737.
amount and bad debt 48.82% 4,813,386.86 5%
18
provision provided
individually
Other receivables provided bad debt provision in groups
Group by age 39,747,200. 3,829,927.3 97,221,214.
91.46% 9.64% 49.3% 8,811,669.04 9.06%
analysis 38 7 63
39,747,200. 3,829,927.3 97,221,214.
Sub-total of group 91.46% 9.64% 49.3% 8,811,669.04 9.06%
38 7 63
Other account
receivable with minor
3,710,320.9 3,710,320.9 3,710,320.9
individual amount 8.54% 100% 1.88% 3,710,320.94 100%
4 4 4
but bad debt
provision is provided
43,457,521. 7,540,248.3 197,199,27 17,335,376.8
Total -- -- -- --
32 1 2.75 4
Other receivable accounts with major single amount and bad debt provision drawn upon them
Not applicable
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
In RMB
End of term Beginning of term
Book balance Book balance
Age Bad debt
Propor Propor Bad debt provision
Amount provision Amount
tion % tion %
within 1 year
In which:
Subtotal of within 1 84.19 80.19
33,463,210.14 1,673,160.52 77,956,851.63 3,897,842.58
year % %
1-2 years 3,236,349.84 8.14% 647,269.97 15,428,271.40 15.87 3,085,654.30
72
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
%
2-3 years 1,595,436.80 4.01% 638,174.72 2,367,414.00 2.44% 946,965.60
Over 3 years 1,452,203.60 3.66% 871,322.16 1,468,677.60 1.5% 881,206.56
3-4 years 534,660.00 1.35% 320,796.00 83,134.00 0.09% 49,880.40
4-5 years 63,500.00 0.16% 38,100.00 244,000.00 0.25% 146,400.00
over 5 yrs 854,043.60 2.15% 512,426.16 1,141,543.60 1.17% 684,926.16
Total 39,747,200.38 -- 3,829,927.37 97,221,214.63 -- 8,811,669.04
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
In RMB
Description of other
Book balance Bad debt provision Providing rate (%) Reason to provide
receivables
Customs deposit
3,710,320.94 3,710,320.94 100% Hard to recover
receivable
Total 3,710,320.94 3,710,320.94 -- --
(2) Other receivable accounts written back or retrieved in the report period
None
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested
individually at end of 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
In RMB
End of term Beginning of term
Bad debt Bad debt
Name of the companies
Book balance provision Book balance provision
provided provided
Hangzhou Steam Turbine Power
1,108.80 55.44
Group Co., Ltd.
Total 1,108.80 55.44
(5) Natures or contents of other receivable accounts with large amount
None
(6) Top 5 debtors of other receivable accounts
In RMB
73
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Portion in total
Relation with
Name of the companies Amount Ages other receivables
the Company
(%)
Non-related
Hangzhou Custom 13,005,336.93 within 1 year 29.93%
company
Shanghai Customs Waigaoqiao Non-related
3,710,320.94 Over 3 years 8.54%
Office company
Non-related
Guodian Trust Bidding Co., Ltd. 2,655,800.00 over 1-3 years 6.11%
company
Zhejiang Tianyin Management Non-related
1,400,000.00 within 1 year 3.22%
Consultancy Co., Ltd. company
Non-related
中国神华国际工程有限公司 1,250,000.00 1-2 years 2.88%
company
Total -- 22,021,457.87 -- 50.68%
(7) Other accounts receivable from related parties
None
(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
6. Prepayment
(1) Prepayment presented by ages:
In RMB
End of term Beginning of term
Age
Amount Ratio (%) Amount Ratio (%)
within 1 year 508,018,765.33 98.17% 253,962,166.02 92.22%
1-2 years 6,501,509.25 1.26% 12,991,204.30 4.72%
2-3 years 787,964.90 0.15% 6,960,340.50 2.53%
Over 3 years 2,173,776.26 0.42% 1,483,477.76 0.53%
Total 517,482,015.74 -- 275,397,188.58 --
(2) Top 5 receivers of prepayments
In RMB
Relation with the
Name of the companies Amount Date Reason of unsettled
Company
Non-related In schedule as the
Mitsubishi 85,347,832.35
company contract
GEA Batignolles Thermal
Non-related In schedule as the
Technologies (Changshu) Co., 59,227,199.60
company contract
Ltd.
74
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Hangzhou Hangfa Power
In schedule as the
Generating Equipment Co., Related parties 45,134,825.00
contract
Ltd.
Hanghai Lanbin
Non-related In schedule as the
Petro-chemical Equipment 22,340,000.00
company contract
Co., Ltd.
Ha’erbin Air-conditioner Co., Non-related In schedule as the
21,362,020.00
Ltd. company contract
Total -- 233,411,876.95 -- --
(3) Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the
report period
None
(4) Statements on prepayments
In schedule as the contract
7. 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
388,764,767.31 388,764,767.31 464,273,966.44 464,273,966.44
materials
Product in
577,087,262.91 577,087,262.91 566,567,300.58 8,910,665.94 557,656,634.64
process
Products in
745,089,136.32 158,244.58 744,930,891.74 429,516,689.14 158,244.58 429,358,444.56
stock
Material in
2,572,157.56 2,572,157.56
circulation
Total 1,713,513,324.10 158,244.58 1,713,355,079.52 1,460,357,956.16 9,068,910.52 1,451,289,045.64
(2) Inventory impairment provision
In RMB
Openning balance Decreased this period Closing balance of
Categories Provided this term
of book value Written back Transferred book value
Product in process 8,910,665.94 8,910,665.94
Products in stock 158,244.58 158,244.58
Total 9,068,910.52 8,910,665.94 158,244.58
(3) Inventory impairment provisions
Basis of providing Percentage of the writen
Items Reason of written back
impairment provision back amount on the balance
75
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
of the inventory
Provided at the balance of
Products in stock inventory over the
realizable net value
Inventory impairment
provision was provided by
Packaged Equipment Co.,
Product in process 1.57%
it was no longer in the
consolidation range since
sold out in Feb.
8. Other current assets
In RMB
Items End of term Beginning of term
Trusteeship products purchased 470,000,000.00 150,610,000.00
Amortizable expenses such as rental 286,995.99 114,250.00
Total 470,286,995.99 150,724,250.00
76
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
9. Long-term equity investment
(1) Details of long-term equity investment
In RMB
Statement on Impairment
Percentage of Voting
Calculating Investment Openning Closing differences between Impairment provision Cash dividend of
Company invested in Changed by share in the power in
basis cost balance balance the shareholding and provision provided this the current term
firm % the firm %
voting rights term
Greenesol Co. (India) Cost basis 5,534,773.22 5,534,773.22 5,534,773.22 37% 37%
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
Co., 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
Investment Cost basis 10,000,000.00 10,000,000.00 10,000,000.00 2.97% 2.97%
Partnership
Zhejiang Sanxin
Automatic Cost basis 600,000.00 600,000.00 600,000.00 6% 6%
Engineering Co., Ltd.
Zhejiang Zhongkong
Solar Energy
Cost basis 15,000,000.00 15,000,000.00 15,000,000.00 6% 6%
Technologies Co.,
Ltd.
Zhejiang Tianhang
Steam Turbine
Cost basis 10,000,000.00 10,000,000.00 10,000,000.00 33.33% 33.33% 1,000,000.00
Auxiliary Machinery
Co., Ltd.
Hangzhou Zhongneng
Steam Power Cost basis 13,821,525.00 13,821,525.00 13,821,525.00 45% 45%
(Indonesia) Co., Ltd.
Total -- 475,910,338.22 462,088,813.22 13,821,525.00 475,910,338.22 -- -- -- 24,118,640.00
77
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
10. Fixed assets
(1) Particulars of fixed assets
Openning balance of Decreased this Closing balance of
Items Increased this period
book value period book value
I. Total of original book
1,310,010,573.34 7,995,002.28 10,660,980.29 1,307,344,595.33
value
Incl. House & Buildings 374,229,968.21 252,988.00 1,600,000.00 372,882,956.21
Equipment &
808,705,498.38 5,829,360.43 7,114,021.03 807,420,837.78
machinery
Transportation
0.00 0.00 0.00 0.00
facilities
Office
127,075,106.75 1,912,653.85 1,946,959.26 127,040,801.34
equipment
Balance at end of
Openning balance of Increased this Provided current Decreased this
-- current term
book value term term period
II. Total of accumulative
650,339,980.11 44,963,810.43 6,356,747.84 688,947,042.70
depreciation
Incl. House & Buildings 126,824,000.55 5,637,989.42 132,461,989.97
Equipment &
445,822,410.38 34,043,077.64 4,509,858.40 475,355,629.62
machinery
Transportation
0.00 0.00 0.00 0.00
facilities
Office
77,693,569.18 5,282,743.37 1,846,889.44 81,129,423.11
equipment
Openning balance of Balance at end of
-- --
book value current term
III. Total of net book value
659,670,593.23 -- 618,397,552.63
of fixed assets
Incl. House & Buildings 247,405,967.66 -- 242,020,966.24
Equipment &
362,883,088.00 -- 332,065,208.16
machinery
Transportation
0.00 -- 0.00
facilities
Office
49,381,537.57 -- 45,911,378.23
equipment
IV. Total of impairment
6,916,780.53 -- 6,916,780.53
provisions
Incl. House & Buildings 1,504,928.24 -- 1,504,928.24
Equipment &
4,112,095.75 -- 4,112,095.75
machinery
Transportation
0.00 -- 0.00
facilities
Office
1,299,756.54 -- 1,299,756.54
equipment
V. Total of fixed asset book
652,753,812.70 -- 611,480,772.10
value
Incl. House & Buildings 245,901,039.42 -- 240,516,038.00
Equipment &
358,770,992.25 -- 327,953,112.41
machinery
Transportation
0.00 -- 0.00
facilities
Office
48,081,781.03 -- 44,611,621.69
equipment
Depreciation of RMB44,963,810.43; transferred to fixed assets by RMB7,789,180.35.
(2) Fixed assets temporarily in idle status
None
(3) Fixed assets leased by finance
None
78
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(4) Fixed assets leased out on fiance
None
(5) Fixed assets held for sale at end of period
None
(6) Fixed asset not licensed yet
None
11. Construction-in-progress
(1) Particulars of construction-in-process
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Project under process of
62,308,961.99 62,308,961.99 48,645,662.80 48,645,662.80
the parent co.
Measurement &
Physics-chemistry Lab of 513,517.96 513,517.96
Zhongneng Co.
House and plants of
26,758,273.23 26,758,273.23
Casting Co. phase III
Prepayment for
equipment and
32,334,837.57 32,334,837.57
construction projects
under subsidiaries
Tangxi Construction
Project Environmental
24,000.00 0.00 24,000.00
Evaluation to Zhejiang
University
Infrastructure of metal
33,249,678.73 0.00 33,249,678.73
process phase III
Equipment of metal
460,981.88 0.00 460,981.88
process phase III
Total 96,043,622.60 96,043,622.60 108,252,291.56 108,252,291.56
79
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(2) Material change in construction-in-progress
In RMB
Includin Ratio of
Accumul
Transferr Investme g: capitaliz
Increase Other ate of Fund
Beginnin ed into nt on interest ation of
Projects Budget d this decrease Progress interest recour End of term
g of term fixed budget capitaliz interest
period s capitaliz se
assets (%) ed this in the
ed
term period
Project
under
of parent 159,032, 44,770,7 18,890,0 1,351,77 Indepe 62,308,961.
40% construct
co. in 000.00 18.62 15.70 2.26 ndent 99
ion
process
Project
complete
9,597,80 3,874,94 498,948. 4,373,89 Complet Indepe
d by the 46% 0.00
0.00 4.18 71 2.89 ed ndent
parent
co.
Zhongne
ng
J12-02
700,000. 513,517. 179,487. 693,005. Complet Indepe
Measure 0.00
00 96 18 14 ed ndent
ment
Chemistr
y Lab
169,329, 49,159,1 19,568,4 6,418,67 62,308,961.
Total -- -- -- --
800.00 80.76 51.59 0.29 99
(3) Impairment provisions of construction-in-process
None
(4) Progress of material construction-in-process
None
(5) Statement on construction-in-process
None
12. Intangible assets
(1) Profiles of intangible assets
In RMB
Openning balance of Decreased this Closing balance of
Items Increased this period
book value period book value
I. Total of original book
301,701,848.25 6,340,000.00 199,478,300.00 108,563,548.25
value
Land using right 101,883,548.25 6,220,000.00 108,103,548.25
Operation rights of waste 199,420,000.00 199,420,000.00 0.00
80
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
heat power plant
Mining rights
Others 398,300.00 120,000.00 58,300.00 460,000.00
II. Total of accumulative
68,716,164.40 1,824,233.48 49,808,324.40 20,732,073.48
amortizing
Land using right 18,856,506.67 1,782,233.51 20,638,740.18
Operation rights of waste
49,785,701.43 49,785,701.43 0.00
heat power plant
Mining rights
Others 73,956.30 41,999.97 22,622.97 93,333.30
III. Total of book net
232,985,683.85 4,515,766.52 149,669,975.60 87,831,474.77
value of intangible assets
Land using right 83,027,041.58 4,437,766.49 87,464,808.07
Operation rights of waste
149,634,298.57 149,634,298.57 0.00
heat power plant
Mining rights
Others 324,343.70 78,000.03 35,677.03 366,666.70
IV. Total of impairment
22,800,000.00 22,800,000.00
provisions
Land using right
Operation rights of waste
22,800,000.00 22,800,000.00
heat power plant
Mining rights
Others
Total of book value of
210,185,683.85 4,515,766.52 126,869,975.60 87,831,474.77
intangible assets
Land using right 83,027,041.58 4,437,766.49 87,464,808.07
Operation rights of waste
126,834,298.57 126,834,298.57 0.00
heat power plant
Mining rights
Others 324,343.70 78,000.03 35,677.03 366,666.70
RMB1,824,233.48 amortized this term.
(2) R&D expenses
In RMB
Decreased this period
Increased this Accounted into
Items Beginning of term Recognized as End of term
period current income
intangible asset
account
Expeditures of
development 30,804,948.52 30,804,948.52
projects
Total 30,804,948.52 30,804,948.52
81
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Development expenses accounted for 35.75% of the total R&D expenses.
13. Long-term expenses to be amortized
In RMB
Reason of
Beginning of Increased this Amortized this
Items Other decrease End of term other
term term term
decreasing
Redecoration 2,422,246.22 47,248.18 1,022,488.76 1,352,509.28 出售
Others 196,595.36 196,595.36 Disposals
Total 2,618,841.58 47,248.18 1,219,084.12 1,352,509.28 --
14. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
Deferred income tax assets and liabilities already recognized
In RMB
Items End of term Beginning of term
Deferred income tax assets:
Asset impairment provision 75,056,415.44 84,748,117.20
Unrealized profit in consolidated accounts 4,787,773.35 6,162,182.37
Other deductable provisional difference 834,843.23 2,130,444.63
Sub-total 80,679,032.02 93,040,744.20
Deferred income tax liabilities:
Temporary differences of other tax
1,037,517.08 1,037,517.08
payables
Sub-total 1,037,517.08 1,037,517.08
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 6,916,780.53 6,916,780.53
Sub-total 6,916,780.53 6,916,780.53
Neutralizable different items
Bad debt provision 461,936,440.63 467,025,887.84
Inventory impairment provision 158,244.58 9,068,910.52
Fixed asset impairment provision 6,916,780.53 6,916,780.53
Impairment provision of intangible asset 22,800,000.00
Unrealized profit in consolidated accounts 31,918,488.98 37,416,125.04
Other deductable provisional difference 5,565,621.55 10,900,569.42
Sub-total 506,495,576.27 554,128,273.35
(2) Deferred income tax assets and liabilities are presented as net amount after neutralization
Composition items of income tax asset and liabilities after neutralization
In RMB
Items Deferred income Deductible or Deferred income Deductible or
82
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
tax asset or taxable tax asset or taxable
liability after provisional liability after provisional
neutralizing at end difference after neutralizing at end difference after
of reprot period neutralizing at end of report period neutralizing at end
of report period of report period
Deferred income tax asset 80,679,032.02 93,040,744.20
Deferred income tax liability 1,037,517.08 1,037,517.08
15. Detail of asset impairment provision
In RMB
Openning Decreased this period
Increased this Closing balance of
Items balance of book Written
period Transferred book value
value back
I. Bad debt provision 467,067,827.15 27,695,461.57 15,025.22 32,811,822.87 461,936,440.63
II. Inventory impairment
9,068,910.52 8,910,665.94 158,244.58
provision
VII. Fixed asset
6,916,780.53 6,916,780.53
impairment provision
XII. Intangible asset
22,800,000.00 22,800,000.00
impairment provision
Total 505,853,518.20 27,695,461.57 15,025.22 64,522,488.81 469,011,465.74
Remarks on detailed asset impairment
16. Other non-current assets
In RMB
Items End of term Beginning of term
Investment capital transferred out 10,200,000.00
Total 10,200,000.00
Statement on other non-recurring assets
Packaged Technology Co., Ltd. – subsidiary of the Company has disbursed RMB10.20 million as investment
to Xinjiang Taifeng Hangzhou Steam Turbine Complete Technology Development Co., Ltd. on December 6, 2012.
This company was incorporated on January 6, 2013.
17. Short-term loans
(1) Categories of short-term loans
In RMB
Items End of term Beginning of term
Loan by pledge 140,000,000.00
Mortgage loan 118,500,000.00 110,400,000.00
Total 118,500,000.00 250,400,000.00
Remarks on categories of short-term loans
(2) Short-term loans expired but not repaid
None
18. Transactional financial liabilities
None
83
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
19. Notes payable
In RMB
Categories End of term Beginning of term
Bank acceptance 127,929,377.00 133,505,278.70
Total 127,929,377.00 133,505,278.70
RMB19,682,650.00 will become mature in the next period.
20. Account payable
(1) Account payable
In RMB
Items End of term Beginning of term
Trade 985,573,455.28 596,305,973.96
Payment for equipment and projects 11,934,549.49 11,822,008.13
Total 997,508,004.77 608,127,982.09
(2) Account payable to shareholders holding 5% or over of the Company’s shares in the report period
In RMB
Name of the companies End of term Beginning of term
Hangzhou Steam Turbine Group 15,684,022.15 8,126,898.52
Total 15,684,022.15 8,126,898.52
(3) Remarks on large amount payable accounts aged for over one year
21. Accounts received in advance
(1) Advance payment received
In RMB
Items End of term Beginning of term
Trade 1,802,375,214.50 1,632,856,815.04
Total 1,802,375,214.50 1,632,856,815.04
(2) Prepayment collected from shareholders holding 5% or over of the Company’s shares in the report
period.
None
22. Wage payable
In RMB
Openning balance Closing balance of
Items Increased this period Decreased this period
of book value book value
I. Wage, bonus,
1,615,266.50 231,452,004.05 232,435,391.55 631,879.00
allowances
II. Employees’ welfare 31,979,535.33 24,576,460.98 7,403,074.35
III. Social security 9,256,632.37 46,096,347.27 41,168,836.64 14,184,143.00
Incl. Medical insurance 2,442,841.59 12,744,769.17 13,160,517.58 2,027,093.18
Basic pension 3,593,615.90 19,546,538.90 20,054,170.78 3,085,984.02
Unemployment
531,635.72 2,719,026.79 2,818,111.53 432,550.98
insurance
Labor injury
173,863.73 800,063.12 842,193.63 131,733.22
insurance
84
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Breeding
203,996.12 1,096,808.45 1,125,546.48 175,258.09
insurance
Others 2,310,679.31 8,738,482.41 3,168,296.64 7,880,865.08
IV. Housing fund 133,813.76 21,790,326.00 21,660,228.00 263,911.76
V. Dismissing welfare 17,691.70 17,691.70
VI. Others 16,379,133.52 18,603,777.46 16,300,508.63 18,682,402.35
Incl. Annual fees 11,768,169.36 8,821,934.00 11,207,370.29 9,343,702.39
Trade Union
1,382,767.57 4,431,226.90 4,612,622.23 1,201,372.24
finance
Training
3,228,196.59 5,350,616.56 480,516.11 8,098,297.04
expenses
Total 27,384,846.15 349,939,681.81 336,159,117.50 41,165,410.46
Overdue payment payable to employees are amounted to RMB0.00
Trade Union fee and education fee amounted to RMB9,299,669.28, non-currency welfare amounted to RMB,
dismissing compensation amounted to RMB17,691.70
Arrangement of distributing the wages payable:
Wages payable will be paid over the 3rd quarter of this year.
23. Tax payable
In RMB
Items End of term Beginning of term
VAT 12,299,030.97 17,252,790.77
Operational tax 30,347.20 411,604.35
Enterprise income tax 24,233,715.68 59,104,591.70
Personal income tax 2,044,036.39 3,380,951.65
City maintenance and construction tax 1,202,369.92 1,572,714.69
Property tax 35,746.56
Education surtax 521,107.33 688,257.93
Local education surcharges 347,442.13 458,876.07
Stamp tax 283,560.25 35,900.51
water conservancy special fund 2,163,960.82 2,277,139.88
Land using tax 868,205.00
Allowance for disabled 1,690.75
Total 44,031,213.00 85,182,827.55
24. Interest payable
In RMB
Items End of term Beginning of term
Short-term borrowing interests payable 228,197.26
Total 228,197.26
25. Dividend payable
In RMB
Reason of overdue for one
Name of the companies End of term Beginning of term
year
85
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Hangzhou Steam Turbine Group 200,929,920.00
Hangzhou Steam Turbine Power
4,500,000.00
Technologies Co., Ltd.
Hangzhou Steam Turbine
1,350,000.00
Industrial Co.
Foreign shares 109,674,240.00
Yang Lianrong 9,800,000.00
Total 316,454,160.00 9,800,000.00 --
26. Other account payable.
(1) Other accounts payable
In RMB
Items End of term Beginning of term
Deposite 344,790.00 958,489.45
Payable to other company 8,281,328.03 252,745,923.87
Others 14,383,886.54 5,727,622.49
Total 23,010,004.57 259,432,035.81
(2) Other account payable due to shareholders with 5% or over of the Company’s shares in the report
period
In RMB
Name of the companies End of term Beginning of term
Hangzhou Steam Turbine Group 6,897,871.03 6,402,977.30
Total 6,897,871.03 6,402,977.30
(3) Statement on large amount other payable accounts due for over one year
None
(4) Statement on large amount other payable accounts
Name of End of term Property of the account
the
companie
s
Hangzhou 6，897，871.03 Rental and payment on behalf, etc.
Steam
Turbine
Group
27. Predicted liabilities
In RMB
Decreased this
Items Beginning of term Increased this period End of term
period
28. Non-current liabilities due in one year
(1) Non-current liabilities due in one year
In RMB
Items End of term Beginning of term
Long-term loans due in 1 year 100,000,000.00
86
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Total 100,000,000.00
(2) Long-term loans due in 1 year
Long-term loans due in 1 year
In RMB
Items End of term Beginning of term
Guarantee loan 100,000,000.00
Total 100,000,000.00
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
provided Currency
date date % foreign original foreign original
by
currency currency currency currency
China
Import &
Export Feb. 16 Feb. 16 100,000,00
RMB Yuan 4.2%
Bank, 2011 2013 0.00
Zhejiang
Branch
100,000,00
Total -- -- -- -- -- --
0.00
Overdue account in long-term loans due in one year
None
29. Long-term loans
None
30. Long term payables
(1) Top 5 long-term payables
In RMB
Interest Closing
Companies Term Initial amount Interest rate % Condition
payable balance
Drawing in
administrative 330,000.00 330,000.00
restructuring
31. Other non-current liabilities
In RMB
Items Closing balance of book value Openning balance of book value
Government subsidy 11,689,265.00 11,149,265.00
Total 11,689,265.00 11,149,265.00
Remarks on other non-current liabilities, including the amounts of asset-related and income-related government
subsidies obtained in the report term.
Items Current term Remarks
Special fund for 289,250.00 Persuant to document 浙财企字[2006]285号 issued by Zhejiang Provincial Bureau of Finance and
advanced Zhejiang Provincial Economic and Trade Commission, the Company received government subsidy
manufacturing of RMB890,000.00 for advanced manufacturing base project. This asset was relevant and are
87
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
base project amortized straightly to 10 years. As of December 31, 2012, RMB600,750.00 of it has been
accounted as income in relative terms. The balance of deferred gains was RMB289,250.00
Government 130,000.00 Pursuant to document 杭财企一〔2007〕914 号 issued by Hangzhou Bureau of Finance and
subsidy for the Hangzhou Economic Commission, Casting Co. – one of the Company’s subsidies, received
3rd batch of government subsidy of RMB260,000.00 for the technical reconstruction and productivity expanding
technical project of 10K ton casting products in October 2007, in which RMB130,000.00 has been accounted
reforming of to gain/loss account of related periods, and RMB130,000.00 was the balance of deferred income of
industrial the current period.
enterprises of
2007
Government 402,920.00 Pursuant to document 余经投〔2007〕21 号 issued by Hangzhou Yuhang District Bureau of
finance for Finance and Hangzhou Yuhang Economic Development Bureau, Casting Co. received the
industrial project government subsidy of RMB575,600.00 for the casting project in April 2007, in which
in the 2nd half of RMB172,680.00 has been accounted to non-operational income in current term. And the balance of
2006 deferred income was RMB402,920.00.
Government 159,740.00 Pursuant to document 余经能源〔2007〕35 issued by Hangzhou Yuhang District Bureau of Finance
subsidy for and Hangzhou Yuhang Economic Development Bureau, Casting Co. – one of the Company’s
recycling subsidies, received the government subsidy of RMB228,200.00 for the heating furnace
economy in the reconstruction project in August 2007, in which RMB68,460.00 has been accounted to
1st half of 2007 non-operational income in current term. And the balance of deferred income was RMB 159,740.00
Finance for 402,920.00 Pursuant to document 余经投〔2005〕39 号 issued by Hangzhou Yuhang District Bureau of
casting project Finance and Hangzhou Yuhang Economic Development Bureau, Casting Co. – one of the
Company’s subsidies, received the government subsidy of RMB575,600.00 for the casting project in
year 2008, in which RMB172,680.00 has been accounted to gain/loss of related periods, and
RMB402,920.00 was the balance of deferred income of the current period.
Government 1,120,000.00 According to document 余 财 企 [2010]381 号 issued by Hangzhou Yuhang Finance Bureau,
subsidy for Hangzhou Yuhang Economic Development Bureau, the Casting Co. received the government
technical subsidy of RMB1,600,000.00 as described left, in which RMB480 thousand has been accounted into
upgrading in gain/loss account of related periods and RMB1.12 million was accounted as deferred income.
2010
Government 7,895,925.00 According to document 余经发〔2011〕6号 issued by Hangzhou Yuhang District Economy and
subsidy for Development Bureau and Hangzhou Yuhang District Bureau of Finance, Casting Co. has received
industrial the government subsidy of RMB9,973,800.00, in which RMB2,077,875.00 was accounted into
projects for the gain/loss account of current period, and RMB7,895,925.00 was the balance of deferred income.
1st half of 2010
Production 748,510.00 According to document 余 经 发 [2010]62 号 issued by Hangzhou Yuhang District Economic
project subsidy Development Bureau, Hangzhou Yuhang Finance Bureau, the Guoneng Co. received
of 2009 of RMB1,069,300.00 of government subsidy as described left, and RMB320,790.00 was accounted
Yuhang District into gain/loss account of related period, and RMB748,510.000 was the balance of deferred income.
Hangzhou 500,000.00 According to the document issued by Hangzhou Economy & Information Committee and
City Hangzhou Bureau of Finance, the Company has received RMB500,000 of award, which was
Government recorded as deferred income of RMB500,000
Shiqiao
Office Award
for primary
industrial
upgrading
Xiacheng 40,000.00 According to the document issued by Hangzhou Xiacheng Bureau of Science & Technologies, the
Office of Company received award for patent, software copyright amounted to RMB40,000, which was
Science and recorded as deferred income of RMB40,000
Technologies
Award for
technical
achievement
Subtotal 11,689,265.0
0
32. Capital Share
In RMB Yuan
88
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Changed in the report period (+,-)
Beginning of Transferred
Issuing of End of term
term Bonus shares from Others Sub-total
new shares
reserves
Total of 754,010,400. 754,010,400.
0 0 0 0 0
capital shares 00 00
33. Shares in stock
None
34. Capital reserves
In RMB
Decreased this
Items Beginning of term Increased this period End of term
period
Capital premium (share
81,815,220.00 81,815,220.00
capital premium)
Other capital reserves 57,775,125.09 637,095.00 57,138,030.09
Total 139,590,345.09 637,095.00 138,953,250.09
35. Surplus reserves
In RMB
Decreased this
Items Beginning of term Increased this period End of term
period
Statutory surplus reserves 518,540,739.23 518,540,739.23
Total 518,540,739.23 518,540,739.23
36. Retained profit
In RMB
Percentage of drawing
Items Amount
or allocation
Adjustment on retained profit of previous
2,449,720,889.86 --
year
Retained profit adjusted at beginning of
2,449,720,889.86 --
year
Plus: Net profit attributable to owners of
229,415,091.47 --
the parent company
Common share dividend payable 301,604,160.00
Internal transferring of owners’ equity -637,095.00
Retained profit at the end of term 2,380,405,859.24 --
37. Operational turnover and cost
(1) Operation incomes and costs
RMB Yuan
Items Occurred current term Occurred in previous term
89
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Major business turnover 2,011,778,885.16 2,132,132,099.78
Other business income 7,966,945.76 6,031,623.98
Operation cost 1,350,033,911.16 1,355,776,212.37
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Boiler and power machine
1,708,584,515.78 1,149,586,834.58 1,761,008,351.13 1,100,362,901.96
manufacture
Casting 39,505,854.30 32,916,683.37 33,867,196.40 28,709,509.85
Petrochemical and other
38,590,594.80 27,922,308.08 39,473,031.69 32,840,485.68
special machineries
Packaged equipment for
37,732,042.01 33,212,160.45 59,196,597.29 52,254,212.57
waste heat power plant
Other special equipment 187,365,878.27 101,806,677.82 238,586,923.27 139,505,068.46
Total 2,011,778,885.16 1,345,444,664.30 2,132,132,099.78 1,353,672,178.52
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Industrial steam turbine 1,708,584,515.78 1,149,586,834.58 1,761,008,351.13 1,100,362,901.96
Casting products 39,505,854.30 32,916,683.37 33,867,196.40 28,709,509.85
Auxiliary machinery 38,590,594.80 27,922,308.08 39,473,031.69 32,840,485.68
Packaged equipment for
37,732,042.01 33,212,160.45 59,196,597.29 52,254,212.57
waste heat power plant
Others 187,365,878.27 101,806,677.82 238,586,923.27 139,505,068.46
Total 2,011,778,885.16 1,345,444,664.30 2,132,132,099.78 1,353,672,178.52
(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Domestic 1,791,637,656.67 1,167,089,802.17 1,866,613,768.57 1,135,912,434.19
Overseas 220,141,228.49 178,354,862.13 265,518,331.21 217,759,744.33
Total 2,011,778,885.16 1,345,444,664.30 2,132,132,099.78 1,353,672,178.52
(5) Revenue from top five customers
In RMB
Name of clients Major business turnover Percentage in total turnover of the Company
Shenyang Turbine Machinery
287,984,487.09 14.31%
Co., Ltd.
90
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Xi’an Shanggu Power Co.,
196,589,743.54 9.77%
Ltd.
Hebei Shougang Qian’an
189,452,991.41 9.42%
Steel & Iron Co., Ltd.
China Petro Hainan Refining
56,572,649.60 2.81%
Co., Ltd.
Huazhe Thermal Power Plant
47,512,820.51 2.36%
Co., Ltd. (the first set)
Total 778,112,692.15 38.67%
38. Income from contract projects
None
39. Business tax and surcharge
In RMB
Occurred in previous
Items Occurred current term Rate
term
Operational tax 222,630.24 755,217.31 5% of taxable turnover
City maintenance and
9,964,167.81 10,577,455.73 7% of taxable turnover
construction tax
Education surtax 4,309,524.69 4,604,424.80 3% of taxable turnover
Local education surcharges 2,873,016.21 3,069,088.78 2% of taxable turnover
Total 17,369,338.95 19,006,186.62 --
401. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
Employees’ remunerations 34,371,309.78 28,595,981.33
Freight 25,018,028.28 17,072,595.70
Business trips 9,487,436.80 9,164,578.29
Business reception expenses 4,985,108.21 3,729,211.10
Conferences 2,483,852.99 3,168,207.40
Service expenses 5,818,257.46 2,501,903.41
Insurance for turbine unit 771,129.83 1,073,426.60
Warranty expense 109,551.60 1,099,665.66
Office expenses 567,960.17 400,413.77
Others 8,424,819.44 8,252,141.98
Total 92,037,454.56 75,058,125.24
41. Administrative expenses
In RMB
Items Occurred current term Occurred in previous term
91
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Employees’ remunerations 114,774,125.81 106,323,022.82
Business reception expenses 7,169,139.22 7,901,744.39
Asset depreciation and amortizing 8,393,157.73 6,868,457.35
Office expenses 2,245,688.30 1,725,683.37
Travelling fees 2,901,790.14 4,442,230.12
Taxes 6,042,551.13 5,361,316.85
House rental, property management,
2,217,251.71 1,263,950.57
water and power
Material, low-value-consumable 1,960,586.26 2,768,491.79
Maintaining 1,033,557.58 2,034,249.80
Development and research 19,757,005.97 22,025,465.96
Others 96,199,085.17 98,532,810.75
Total 262,693,939.02 259,247,423.77
42. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 5,765,360.64 14,127,406.32
Interest income -6,615,273.43 -2,186,839.14
Exchange gains/losses 1,459,955.49 2,354,255.99
Commission 928,276.52 1,238,639.94
Others 3,735.71 92,179.81
Total 1,542,054.93 15,625,642.92
43. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on cost
24,118,640.00 24,318,640.00
basis
Investment gains from disposal of long-term
30,871,804.89 595,321.44
equity investment
Others 9,705,623.87 5,501,934.21
Total 64,696,068.76 30,415,895.65
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in
Company invested in Occurred current term Causation of change
previous term
Bank of Hangzhou Co., Ltd. 23,118,640.00 23,118,640.00
Zhejiang Tianhang Steam Turbine
1,000,000.00 1,200,000.00
Auxiliary Machinery Co., Ltd.
Total 24,118,640.00 24,318,640.00 --
92
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(3) Long-term equity investment gains on equity basis
Not applicable
45. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
I. Bad debt loss 23,595,101.44 3,740,340.85
Total 23,595,101.44 3,740,340.85
46. Non-business income
(1) Non-operational income
In RMB
Occurred in previous Carried to current
Items Occurred current term
term contingent gain/loss
Total of gains from disposal of
34,710.35 459,667.25 34,710.35
non-current assets
Incl. Gains from disposal of fixed
34,710.35 459,667.25 34,710.35
assets
Government subsidy 2,613,328.00 1,858,213.34 2,613,328.00
Compensation income 1,013,600.00 1,910,045.13 1,013,600.00
Account not able to be paid 501,950.00 501,950.00
Income from tax refund 3,562,386.66
Others 39,102.28 201,621.30 39,102.28
Total 4,202,690.63 7,991,933.68 4,202,690.63
(2) Details of government subsidies
In RMB
Occurred Occurred in
Items Remarks
current term previous term
Application of general
technologies in The Company has received the government subsidy as
environmental design described left, amounted to RMB100,000.00, which was
100,000.00
(including carried down transferred to non-operational income of
from previous years) RMB100,000.00.
government subsidy
According to the document issued by Hangzhou
The 2nd batch of
Economy and Information Committee and Hangzhou
government subsidy for
600,000.00 Bureau of Finance, the Company has received the
key development projects
award of RMB600,000 for 2013, which was transferred
of 2012
to non-operational income in total.
According to the documents issued by Hangzhou
Science & Technology Committee, and Hangzhou
Government award for
30,000.00 Intellectual Property Bureau, the Company received
patents
RMB30,000 of award under the title as left, which was
transferred to non-operational income in total
According to document issued by Hangzhou Peoples’
Award for best industrial
Government, the Co. has received RMB20 thousand of subsidy
investment and technical 20,000.00 as said left and transferred to non-operational income in current
reforming of Hangzhou 2011
period.
The Company received RMB100,417.00 from
Allowance for internship
92,852.00 Hangzhou Bureau of Finance as said left, and
program 2012
RMB92,852.00 transferred to non-operational income.
93
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Allowances (technical
322,276.00
R&D)
Enterprise allowances
1,448,200.00
from Bureau of Finance
According to document 余经发〔2011〕6 号 issued by
Hangzhou Yuhang District Economy and Development
Government allowance for Bureau and Hangzhou Yuhang District Bureau of
industrial projects in the 997,380.00 Finance, Casting Co. has received the government
1st half of 2010 subsidy of RMB9,973,800.00, in which RMB997，
380.00 has been accounted to non-operational income in
current term.
According to document 黔南财建〔2011〕114 号 issued
Subsidy from the Central by Qiannan Buyi & Miao Autonomous District Bureau
Government for Major
of Finance, Zhongcheng Cement Co. received RMB3
Recycling Economy and 253,888.89
Pollution Treatment Projects million of government subsidy for the project said left,
(batch II and III) for year 2011 in which RMB253，888.89 was accounted to
non-operational income in current period.
According to document 黔南工信办〔2011〕244 号
Industry and Information issued by Qiannan Industry and IT Committee and
Development Special Fund of
Qiannan Finance Bureau, Zhongcheng Cement has
Guizhou Province in 2011 (the 126,944.45
2nd batch of energy saving and received RMB1.5 million of government subsidy, in
resource using projects) which RMB126，944.45 was transferred to
non-operational income in current period.
According to document 杭科计[2008]296 号 issued by
Zhejiang Provincial Bureau of Finance and Zhejiang
Provincial Bureau of Science & Technologies, the
Fund for construction of
400,000.00 Company has received RMB2,000,000.00 of subsidy
key industrial laboratory
for Key Laboratory Base of year 2008, in which
RMB400,000.00 has been accounted into
non-operational income in the current period,
According to document 浙财企〔2011〕305 号 issued
by Zhejiang Provincial Finance Bureau and Commerce
Special fund for outgoing
80,000.00 Bureau, Turbine Export has received RMB80 thousand
strategy
of award from Steam Turbine Power Group and
transferred to non-operational income in current term.
Total 2,613,328.00 1,858,213.34 --
47. Non-business expenditures
In RMB
Occurred in previous Carried to current
Items Occurred current term
term contingent gain/loss
Total of loss from disposal of non-current
11,515.55
assets
Incl. Loss from disposal of fixed assets 11,515.55 360,981.96 11,515.55
Donations 2,160,000.00 1,192,547.50 2,160,000.00
Penalty paid out 303,250.00 194,924.90 303,250.00
water conservancy special fund 2,107,979.65 2,906,695.72
Penalty paid 3,744.99 4,200.00 3,744.99
Penalty payment 531,200.00
Others 324,605.45 54,191.14 324,605.45
Total 4,911,095.64 5,244,741.22 2,803,115.99
94
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
48. Income tax expenses
In RMB
Items Occurred current term Occurred in previous term
Income tax calculated according to the law and
49,424,183.76 67,426,754.44
regulations of current term
Adjustment of deferred income tax -1,743,110.07 1,620,095.64
Total 47,681,073.69 69,046,850.08
49. Calculation of basic earning per share and diluted earning per share
Items No. The Fiscal Year of 2012
Net profit attributable to common shareholders of the A 232,926,224.38
Company
Non-recurring gain/loss B 12,892,471.31
Net profit attributable to common shareholders of the C=A-B 220,033,753.07
Company after deducting of non-recurring gain/loss
Total of shares at beginning of shares D 754,010,400.00
Shares increased due to capitalizing of reserves or share E 0
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 0
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 0.31
Basic earning per share after deducting of non-recurring N=C/L 0.29
gain/loss
50. Other miscellaneous income
None
51. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
Government subsidies received 2,200,476.00
Deposit interest 6,387,128.80
Security for bidding invitation 243,986.00
Compensation income 101,952.30
Payment for shareholding 327,000.00
Award 92,852.00
Others 3,240,077.77
Total 12,593,472.87
95
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(2) Other cash paid related to operation
In RMB
Items Amount
Business trips 12,715,570.41
Transportation 1,489,014.02
Office expenses 3,639,034.97
Business reception and conference expenses 15,629,530.75
Deposit for bidding and others 5,490,454.60
International travelling 1,704,059.76
Consulting service fee 690,057.99
Deposit by custom
Property insurance 1,554,795.97
Donations 2,160,000.00
Others -51,916,228.53
Total -6,843,710.06
(3) Other cash received related to investment
In RMB
Items Amount
Repurchasing of trusteeship 1,268,610,000.00
Total 1,268,610,000.00
(4) Other cash paid related to investment
In RMB
Items Amount
Purchasing of financial products 1,588,610,000.00
Total 1,588,610,000.00
(5) Other cash received related to financing
None
(6) Other cash paid related to financing
None
52. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the Previous
Supplementary Info.
Term Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 288,780,620.92 373,826,030.02
Plus: Asset impairment provision 23,595,101.44 3,740,340.85
Fixed asset depreciation, gas and petrol depreciation,
44,963,810.43 53,882,487.68
production goods depreciation
Amortizing of intangible assets 1,824,233.48 12,511,384.82
96
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Amortizing of long-term expenses 47,248.18 153,953.39
Loss from disposal of fixed assets, intangible assets, and other
-23,194.80 -107,079.13
long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 153,953.39
Loss from fluctuation of fair value (“-“ for gains) -107,079.13
Financial expenses (“-“ for gains) 1,542,054.93 15,625,642.92
Investment loss (“-“ for gains) -64,696,068.76 -30,415,895.65
Decrease of deferred income tax asset (“-“ for increase) 15,872,845.09 -1,305,951.58
Increase deferred income tax asset (“-“ for decrease) -30,415,895.65
Decrease of inventory (“-“ for increase) -262,066,033.88 -187,978,378.71
Decrease of operational receivable items (“-“ for increase) -297,648,810.82 -232,536,038.90
Increase of operational payable items (“-“ for decrease) 360,149,392.54 146,020,700.65
Others -232,536,038.90
Cash flow generated by business operation, net 112,341,197.85 153,417,196.36
2. Major investment and financing operation not involving with
-- --
cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 731,040,457.61 468,365,641.08
Less: Initial balance of cash 1,100,640,580.62 662,648,725.65
Net increasing of cash and cash equivalents -369,600,123.01 -194,283,084.57
(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 -- --
II. Disposal of subsidiaries and businesses -- --
3. Net cash received for disposal of subsidiaries
-2,446,457.95 -653,509.83
and other businesses
(3) Composition of cash and cash equivalents
In RMB
Items End of term Beginning of term
I. Cash 731,040,457.61 1,100,640,580.62
Incl: Cash in stock 351,616.13 211,651.43
Bank savings could be used at any time 552,073,603.49 1,054,918,406.92
Other monetary capital could be used at any
178,615,237.99
time
III. Balance of cash and cash equivalents at end of
731,040,457.61 1,100,640,580.62
term
VIII. Accounting treatment of asset securitization
1. Please state the main trade arrangement, accounting treatment, and bankrupcy isolating terms of capital
securitilizing.
97
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
2. Entities on which the Company has no control power but undertake the risks
IX. Related parties and related transactions
1. Parent companies of the Company
Share of Voting
the power of Ultimate
Name of
Ownership Legal Business Registered parent the holder of Organization
the parent Relationship Reg. Add.
type representative property capital co. in the parent the code
co.
Company company Company
% %
Hangzhou
Solely Hangzhou
Steam Controlling Hangzhou Limited RMB800
national Nie Zhonghai 63.64% 63.64% State Asset 143071842
Turbine shareholder China liability million
owned Committee
Group
98
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
2. Subsidiaries of the Company
Registered
Ownership of the Ownership Legal Business Share Voting Organization
Full name of the subsidiary Reg. Add. capital
subsidiary type representative property proportion % power % code
RMB0’000
Zhejiang Steam Trubine Packaged Technologies Controlled Hangzhou
Ltd. liability Zhen Bin Manufacturing 5100 51.84% 51.84% 726600160
Development Co., Ltd. (the Packaged Tech Co.) subsidiaries Zhejiang
Hangzhou Zhongneng Steam Turbine Power Co., Controlled Hangzhou
Ltd. liability Ye Zhong Manufacturing 9250 51.6% 51.6% 143033969
Ltd. (Zhongneng Co.) subsidiaries Zhejiang
Hangzhou Steam Turbine Casting Co., Ltd. (Casting Controlled Hangzhou
Ltd. liability Yang Lianrong Manufacturing 2200 51% 51% 759502452
Co.) subsidiaries Zhejiang
Hangzhou Steam Turbine Auxiliary Machinery Co., Controlled Hangzhou
Ltd. liability Yu Changquan Manufacturing 8000 76.5% 76.5% 765491278
Ltd. (Auxiliary Machinery Co.) subsidiaries Zhejiang
Hangzhou Steam Turbine Machinery Equipment Co., Controlled Hangzhou
Ltd. liability Zhen Bin Manufacturing 3000 52% 52% 759545858
Ltd. (Machinery Equipment Co.) subsidiaries Zhejiang
Zhejiang Huayuan Steam Turbine Machinery Co., Controlled Huzhou
Ltd. liability Zhen Bin Manufacturing 2100 75% 75% 79205170-2
Ltd. (Huayuan Co.) subsidiaries Zhejiang
Hangzhou Guoneng Steam Turbine Engineering Co., Controlled Hangzhou
Ltd. liability Yu Changquan Manufacturing 4000 75% 75% 79365592-X
Ltd. (Guoneng Co.) subsidiaries Zhejiang
Hangzhou Pangtong Electronic Equipment Co., Ltd. Controlled Hangzhou
Ltd. liability Xian Jinfa Manufacturing 100 70% 70% 68294625-7
(Pangtong Co.) subsidiaries Zhejiang
Controlled Hangzhou
Hangzhou Kaineng Forge Co., Ltd. (Kaineng Co.) Ltd. liability Yang Lianrong Manufacturing 200 100% 100% 69170337X
subsidiaries Zhejiang
Zhejiang Turbine Import & Export Co., Ltd. (Turbine Controlled Hangzhou
Ltd. liability Zhen Bin Commerce 2000 100% 100% 698284761
Co.) subsidiaries Zhejiang
Shijiazhuang Hangheng Steam Turbine Tech Service Controlled Shijiazhuang Service
Ltd. liability Fang Yongsong 200 60% 60% 58241888-7
Co., Ltd. (Shijiazhuang Service Co.) subsidiaries Hebei industry
Kunming Hangzhong Steam Turbine Power Tech Controlled Ltd. liability Kunming Wanag Zhiyong Service 120 60% 60% 58236606-0
99
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Service Co., Ltd. (Kunming Service Co.) subsidiaries Yunnan industry
Wurumuqi Hangzhongneng Steam Turbine Service Controlled Wulumuqi Service
Ltd. liability Wang Bin 300 60% 60% 58024078-X
Co., Ltd. (Wurumuqi Service Co.) subsidiaries Xinjiang industry
Tangshan Hangneng Steam Turbine Power Tech Controlled Tangshan Service
Ltd. liability Sun Xiaojiang 200 60% 60% 58543834-9
Service Co., Ltd. (Tangshan Service Co.) subsidiaries Hebei industry
Jilin Hangzhongneng Steam Turbine Power Tech Shareholding Service
Ltd. liability Jilin Lu Jianyi 200 60% 60% 58464776-3
Service Co., Ltd. (Jilin Service Co.) company industry
Guangxi Hangzhongneng Steam Turbine Tech Controlled Nanning Service
Ltd. liability Chen Guike 200 60% 60% 58981039-8
Service Co., Ltd. subsidiaries Guangxi industry
Chengdu Hangzhongneng Science & Tech Co., Ltd. Controlled Chengdu Service
Ltd. liability Yang Weidong 200 60% 60% 59208630-2
(Chengdu Science Co.) subsidiaries Sichuan industry
Luoyang Hangqi Steam Turbine Tech Service Co., Controlled Luoyang Service
Ltd. liability Gao Jianhua 200 60% 60% 05085500-7
Ltd. (Luoyang Service Co.) subsidiaries Henan industry
Hangzhou Hangqilun Boiler Co., Ltd. (Hangqilun Controlled Hangzhou
Ltd. liability Li Ximing Manufacturing 2000 40% 40% 05674402-5
Boiler Co.) subsidiaries Zhejiang
3. Related Transactions
(1) Purchasing of goods and services
In RMB
Occurred current term Occurred in previous term
Subjects of the related Pricing and decision
Related parties Portion in similar Portion in similar
transactions making process Amount Amount
transactions (%) transactions (%)
Hangzhou Steam Turbine
freight, repairing fee Price on agreement 31,674,740.56 1.96% 13,364,994.27 0.83%
Automobile Sales Service Co., Ltd.
Hangzhou Hangfa Power Generating
Generators Price on agreement 73,342,958.09 4.55% 90,141,452.99 5.59%
Equipment Co., Ltd.
Hangzhou Nanfangtongda Gears Co.,
Gear boxes Price on agreement 6,525,957.26 0.4% 10,625,925.01 0.66%
Ltd.
100
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Hangzhou Nanhua Wooden
Packaging materials Price on agreement 7,372,890.00 0.46% 8,735,438.36 0.54%
Packaging Co., Ltd.
Hangzhou Steam Turbine Industrial
Raw materials Price on agreement 1,223,373.09 0.08% 548,098.09 0.03%
Co.
Hangzhou Relian International
Purchase of steel Price on agreement 365,128.21 0.02%
Trading Co.
Technical development
HSTG Technology Association Price on agreement 14,700.85
fee
Technical development
HSTG Technology Association Price on agreement 480,600.00 0.03%
fee
Hangzhou Steam Turbine Power power supply, payment
Price on agreement 6,557,744.03 0.41%
Group Co., Ltd. on behalf
Sub-total 127,062,791.24 7.88% 123,911,209.57 7.68%
Sales of goods and services
In RMB
Occurred current term Occurred in previous term
Subjects of the related Pricing and decision
Related parties Portion in similar Portion in similar
transactions making process Amount Amount
transactions (%) transactions (%)
Hangzhou Steam Turbine Automobile
Spare parts Price on agreement 687.50 800.36
Sales Service Co., Ltd.
Hangzhou Hangfa Power Generating
Industrial cooperation Price on agreement 11,812,041.28 0.58%
Equipment Co., Ltd.
Hangzhou Steam Turbine Engineering
Steam turbine Price on agreement 42,233,643.52 2.09%
Co., Ltd.
HSTG Technology Association Industrial cooperation Price on agreement 54,564.10 10,683.76
HSTG Technology Association Industrial cooperation Price on agreement 57,692.31 38,461.54
Hangzhou Steam Turbine Power steam turbine\ auxiliary
Price on agreement 962,079.24 0.05%
Group Co., Ltd. machines
Greenesol Co. (India) Steam turbine Price on agreement 31,935.06
Sub-total 55,152,643.01 49,945.66
101
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(2) Related leasing
Leasing out
None
The Company is the undertaker
In RMB
Rental
Name of the Name of the Category of
Starting date Ending date Pricing basis recognized in
owner tenant asset for rent
the period
Hangzhou
Houses & Price on
Steam Turbine The Company Jan 1 2013 Dec 31 2013
buildings agreement
Group
Hangzhou
Land using Price on
Steam Turbine The Company Jan 1 2013 Dec 31 2013
right agreement
Group
Hangzhou
Houses & Price on
Steam Turbine Machinery Co. Jan 1 2013 Dec 31 2013 351,364.26
buildings agreement
Group
Statement on related leasing
(3) Related guarantee
In RMB
Amount
The undertaker The beneficiary Start date Due date Completed or not
guaranteed
Hangzhou Steam
The Company 100,000,000.00 Feb. 16 2011 Feb. 16 2013 Yes
Turbine Group
Statement on related guarantees
(4) Financing with related parties
In RMB
Amount of
Related parties Start date Expired on Remarks
demolition
Borrow in
Lend out
(5) Asset transferring or debt reorganizing
In RMB
Occurred in previous
Occurred current term
term
Principle of
Subjects of the Portion Portion
Type of pricing the
Related parties related in in
trade related
transactions Amount similar Amount similar
transactions
transacti transacti
ons (%) ons (%)
102
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(6) Other related transactions
4. Receivable and payables due with related parties
Receivable accounts due from related parties
In RMB
At end of term At beginning of term
Projects Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Account Hangzhou Steam Turbine
2,571.96 128.60
receivable Automobile Sales Service Co., Ltd.
HSTG Nanfang Sales Co. 20,000.00 12,000.00 20,000.00 12,000.00
Hangzhou Hangfa Power Generating
11,588,030.98 579,401.55 3,061,417.69 153,070.88
Equipment Co., Ltd.
Hangzhou Nanfangtongda Gears
4,434.00 1,773.00 4,434.00 221.70
Co., Ltd.
Hangzhou Steam Turbine
11,833,590.00 591,679.50 3,974,680.00 198,734.00
Engineering Co., Ltd.
Hangzhou Steam Turbine Power
12,899,355.38 3,661,174.95 13,217,871.38 2,643,574.28
Technologies Co., Ltd.
Hangzhou Steam Turbine Power
591,500.00 310,500.00 2,507,500.00 608,000.00
Group Co., Ltd.
Greenesol Co. (India) 141,423.75 7,071.19 14,169,210.82 708,460.54
Hangzhou Steam Turbine Power
Group Packaged Project Engineering 3,231,426.05 161,571.30
Co., Ltd.
Zhongcheng Cement Co., Ltd. 57,914,510.02 2,895,725.50
Sub-total 40,131,260.16 5,218,071.49 94,872,195.87 7,219,915.50
Other account Hangzhou Steam Turbine
3,572.36 178.62
receivable Automobile Sales Service Co., Ltd.
Zhongcheng Cement Co., Ltd. 96,267,737.18 4,813,386.86
Hangzhou Steam Turbine Power
1,108.80 55.44
Group Co., Ltd.
Sub-total 1,108.80 55.44 96,271,309.54 4,813,565.48
Hangzhou Hangfa Power Generating
Prepayments 45,134,825.00 31,875,325.00
Equipment Co., Ltd.
Hangzhou Relian International
128,160.00
Trading Co.
Sub-total 45,134,825.00 32,418,485.00
103
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Account payable due to related parties
In RMB
Amount at end of Initial
Projects Related parties
term ammount
Hangzhou Hangfa Power Generating Equipment Co.,
Account payable 72,718,240.68 68,553,472.31
Ltd.
Hangzhou Steam Turbine Automobile Sales Service Co.,
2,803,223.66 9,820,063.13
Ltd.
Hangzhou Steam Turbine Group 15,684,022.15 8,126,898.52
Hangzhou Steam Turbine Industrial Co. 307,152.83
Hangzhou Nanhua Wooden Packaging Co., Ltd. 185,294.00 278,808.00
Sub-total 91,390,780.49 87,086,394.79
Other account
Hangzhou Steam Turbine Engineering Co., Ltd. 235,764,627.03
payable
Hangzhou Steam Turbine Group 6,897,871.03 6,402,977.30
Hangzhou Steam Turbine Automobile Sales Service Co.,
100,000.00 109,349.23
Ltd.
Sub-total 6,997,871.03 242,276,953.56
Advances
Hangzhou Steam Turbine Engineering Co., Ltd. 30,685,000.00 33,402,500.00
received
Hangzhou Steam Turbine Group 78,000.00
Hangzhou Hangfa Power Generating Equipment Co.,
11,000.00
Ltd.
Hangzhou Steam Turbine Power Group Packaged Project
1,575,000.00
Engineering Co., Ltd.
Sub-total 32,260,000.00 33,491,500.00
X. Commitments
1. Fulfilling of commitments made in previous periods
(I) Capital commitment occurred for construction of new workshop or purchasing of equipment by the
Company or subsidiaries were amounted to RMB43.7522 million.
(II) The Company invested RMB10 million to be one of the partners of Hangzhou Changdi Share Investment
Partnership (with limited liabilities). This was the initial input of capital, and the Company committed to input
supplementary capital when necessary according to the portion of interests, but not greater than RMB50 million
accumulative in 8-11 years during the existing period of the firm.
XI. Post balance sheet issues
1. Statement on material post-balance-sheet events
In RMB
Influence on the financial
Reason for not able to
Items Contents position and business
estimate the influence
performance
104
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
2. Statement on profit distribution in post balance sheet period
In RMB
Proposed profit or dividend 301,604,160.00
Approved and announced profit or dividend 301,604,160.00
3. Statement on other issues in post balance sheet period
XII. Other Material Issues
1. Financial assets and liabilities in foreign currencies
In RMB
Accumulative Impairment
Gain/loss from
change in fair provisions Amount at end
Items Initial ammount change of fair
value accounted provided in the of term
value in the term
into equities current term
Financial assets
3. Loans and
217,694,746.77 1,764,366.11 282,455,472.16
receivables
Subtotal of financial
217,694,746.77 1,764,366.11 282,455,472.16
assets
Financial liabilities 305,935.92 305,935.92
2. Main contents of annual rewarding plan and material changes
3. Others
XIII. Notes to the Financial Statements of the Parent Co.
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
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
% % % %
Receivables provided bad debt provision in groups
Group by age
2,130,134,367.89 99.56% 355,474,521.52 16.69% 1,786,081,861.18 99.47% 338,993,211.47 18.98%
analysis
Sub-total of
2,130,134,367.89 99.56% 355,474,521.52 16.69% 1,786,081,861.18 99.47% 338,993,211.47 18.98%
group
Account
receivable with
minor individual
9,492,990.65 0.44% 9,492,990.65 100% 9,492,990.65 0.53% 9,492,990.65 100%
amount but bad
debt provision is
provided
Total 2,139,627,358.54 -- 364,967,512.17 -- 1,795,574,851.83 -- 348,486,202.12 --
105
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Remarks on categories of receivable account
Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
Receivable accounts in the portfolio on which bad debt provisions were provided on age basis
In RMB
End of term Beginning of term
Book balance Book balance
Age Bad debt Bad debt
Propor Propor
Amount provision Amount provision
tion % tion %
within 1 year
In which: -- -- -- -- -- --
Subtotal of
53.26 48.61
within 1 1,134,552,493.48 44,638,264.85 794,190,457.53 39,709,522.88
% %
year
26.04 24.59
1-2 years 554,642,345.16 96,761,167.68 401,716,379.61 80,343,275.92
% %
10.62 13.41
2-3 years 226,151,604.01 85,538,033.85 219,048,812.81 87,619,525.12
% %
Over 3 10.08 13.39
214,787,925.24 128,537,055.14 218,868,145.91 131,320,887.55
years % %
3-4 years 103,136,948.19 4.84% 61,628,068.91 132,462,233.87 8.11% 79,477,340.32
4-5 years 59,284,667.45 2.78% 35,570,800.47 47,947,105.67 2.93% 28,768,263.40
over 5 yrs 52,366,309.60 2.46% 31,338,185.76 38,458,806.37 2.35% 23,075,283.83
Total 2,130,134,367.89 -- 355,474,521.52 1,633,823,795.86 -- 338,993,211.47
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of
period
In RMB
Description of the
Book balance Bad debt provision Providing rate (%) Reason to provide
receivable accounts
MBDL Powerplant in
9,492,990.65 9,492,990.65 100% Hard to recover
India, etc.
Total 9,492,990.65 9,492,990.65 -- --
(2) Receivable accounts written back or retrieved in the report period
In RMB
Description of the Reason to write Basis of original bad Bad debt provision Amount written back
receivable accounts back or retrieve debt provision provided before or retrieved
106
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
writing back or
retrieving
Bad debt provisions on receivable accounts with single large amount or minor amount but tested individually at
end of report period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts
with similar risks:
(3) Receivable accounts actually written off in the report period
In RMB
Property of the Occurred under
Name of the Date of written Amount written Reason of writing
receivable related
companies off off off
account relationship?
Remarks on writing off of receivable accounts
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
In RMB
End of term Beginning of term
Bad debt
Name of the companies Bad debt provision
Book balance provision Book balance
provided
provided
Hangzhou Steam Turbine
158,500.00 95,100.00
Group
Total 158,500.00 95,100.00
(5) Nature or description of other receivable accounts with large amount
(6) Top 5 receivable accounts
In RMB
Name of the Relation with the Portion in total
Amount Ages
companies Company receivables (%)
Shenyang Turbine
Non-related 469,518,403.38 over 1-3 years 21.94%
Machinery Co., Ltd.
Xi’an Shanggu Power
Non-related 297,656,650.32 over 1-3 years 13.91%
Co., Ltd.
Jingneng Kangbashi
Thermal Powerplant
Non-related 47,196,000.00 within 1 year 2.21%
Co., Ltd. in Inner
Mongolia
Hitachi (China) Ltd. Non-related 42,385,500.00 1-3 years 1.98%
Huaizhe Thermal Non-related 37,480,000.00 within 1 year 1.75%
107
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Powerplant Co., Ltd.
Total -- 894,236,553.70 -- 41.79%
(7) Account receivable from related parties
In RMB
Relation with the Portion in total
Name of the companies Amount
Company receivables (%)
Zhejiang Turbine Import & Export Co., Ltd. Subsidiaries 251,745,066.16 11.77%
Zhejiang Steam Turbine Packaged Technology
Subsidiaries 63,572,765.01 2.97%
Development Co., Ltd.
Hangzhou Steam Turbine Power Technologies
Affiliate of the Group 12,899,355.38 0.6%
Co., Ltd.
Zhejiang Huayuan Steam Turbine Machinery Co.,
Subsidiaries 5,440,086.49 0.25%
Ltd.
Hangzhou Steam Turbine Machinery &
Subsidiaries 4,084,385.15 0.19%
Equipment Co., Ltd.
Hangzhou Guoneng Steam Turbine Engineering
Subsidiaries 510,321.20 0.02%
Co., Ltd.
Hangzhou Steam Turbine Power Group
Affiliate of the Group 158,500.00 0.01%
Southwestern Branch A
Hangzhou Steam Turbine Casting Co., Ltd. Subsidiaries 137,098.74 0.01%
Hangzhou Zhongneng Steam Turbine Power Co.,
Subsidiaries 136,000.00 0.01%
Ltd.
Total -- 338,683,578.13 15.83%
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
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
% % % %
Other receivables with
major individual amount
3,710,320.94 10.61% 3,710,320.94 100% 3,710,320.94 12.96% 3,710,320.94 100%
and bad debt provision
provided individually
Other receivables provided bad debt provision in groups
Group by age analysis 31,254,758.84 89.39% 2,451,184.71 7.84% 24,927,246.51 2,154,996.81 8.65%
Sub-total of group 31,254,758.84 89.39% 2,451,184.71 7.84% 24,927,246.51 87.04% 2,154,996.81 8.65%
Total 34,965,079.78 -- 6,161,505.65 -- 28,637,567.45 -- 5,865,317.75 --
Other receivable accounts with major single amount and bad debt provision drawn upon them
108
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
In RMB
Description of other
Book balance Amount of bad debt Providing rate (%) Reason
receivables
Customs deposit
3,710,320.94 3,710,320.94 100% Hard to recover
receivable
Total 3,710,320.94 3,710,320.94 -- --
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
In RMB
End of term Beginning of term
Book balance Book balance
Age Bad debt
Propor Propor Bad debt provision
Amount provision Amount
tion % tion %
within 1 year
In which: -- -- -- -- -- --
Subtotal of
27,691,814.53 88.6% 1,195,574.45 15,098,317.81 81.4% 754,915.89
within 1 year
1-2 years 1,978,890.91 6.33% 395,778.18 1,062,143.80 5.73% 212,428.76
2-3 years 452,999.80 1.45% 181,199.92 1,228,300.00 6.62% 491,320.00
Over 3 years 1,131,053.60 3.62% 678,632.16 1,160,553.60 6.25% 696,332.16
3-4 years 508,500.00 1.63% 305,100.00 59,000.00 0.32% 35,400.00
4-5 years 53,000.00 0.17% 31,800.00
over 5 yrs 569,553.60 1.82% 341,732.16 1,101,553.60 5.93% 660,932.16
Total 31,254,758.84 -- 2,451,184.71 18,549,315.21 -- 2,154,996.81
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
Not applicable
(2) Other receivable accounts written back or retrieved in the report period
None
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested
individually at end of 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
None
(5) Natures or contents of other receivable accounts with large amount
109
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
(6) Top 5 debtors of other receivable accounts
In RMB
Name of the Relation with the Portion in total other
Amount Ages
companies Company receivables (%)
Hangzhou Custom
Non-related 13,005,336.93 within 1 year 37.2%
Shanghai Customs
Non-related 3,710,320.94 Over 3 years 10.61%
Waigaoqiao Office
Guodian Trust
Non-related 2,655,800.00 over 1-3 years 7.6%
Bidding Co., Ltd.
Zhejiang Tianyin
Management Non-related 1,400,000.00 within 1 year 4%
Consultancy Co., Ltd.
China Shenhua
International Non-related 1,250,000.00 2 yrs 3.57%
Engineering Co., Ltd.
Total -- 22,021,457.87 -- 62.98%
(7) Other accounts receivable from related parties
In RMB
Portion in total other
Name of the companies Relation with the Company Amount
receivables (%)
Hangzhou Steam Turbine
Subsidiaries 3,200,325.32 9.15%
Casting Co., Ltd.
Hangzhou Steam Turbine
Auxiliary Machine Co., Subsidiaries 546,323.62 1.56%
Ltd.
Zhejiang Steam Turbine
Packaged Technology Subsidiaries 33,676.66 0.1%
Development Co., Ltd.
Total -- 3,780,325.60 10.81%
110
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
3. Long-term equity investment
In RMB
Voting Statement on Impairment
Percentage of
Calculating Investment Openning Changed Closing power in differences between Impairment provision Cash dividend of
Company invested in share in the
basis cost 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% 10,575,258.00
Development Co.,
Ltd.
Hangzhou
Zhongneng Steam
Cost basis 5,600,853.25 5,600,853.25 5,600,853.25 51.6% 51.6% 64,503,750.00
Turbine Power Co.,
Ltd.
Hangzhou Steam
Turbine Casting Co., Cost basis 11,220,000.00 11,220,000.00 11,220,000.00 51% 51%
Ltd.
Hangzhou Steam
Turbine Auxiliary Cost basis 19,244,620.00 19,244,620.00 19,244,620.00 76.5% 76.5% 48,957,040.00
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%
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
Co., Ltd.
Zhejiang Turbine
Import & Export Co., Cost basis 20,000,000.00 20,000,000.00 20,000,000.00 100% 100%
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
Investment Cost basis 10,000,000.00 10,000,000.00 10,000,000.00 2.97% 2.97%
Partnership
Total -- 516,782,461.07 516,782,461.07 516,782,461.07 -- -- -- 170,554,688.00
111
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
4. Operation income and operation cost
(1) Operation incomes
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 1,492,479,680.88 1,410,615,405.71
Other business income 14,638,809.99 15,236,041.74
Total 1,507,118,490.87 1,425,851,447.45
Operation cost 1,077,683,194.39 936,260,655.36
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Boiler and power
1,441,636,489.14 1,040,454,061.91 1,362,561,023.15 901,796,207.93
machine manufacture
Casting 0.00 0.00
Petrol chemical and other
0.00 0.00
manufacturing
Packaged equipment for
0.00 0.00
waste heat power plant
Other special equipment 50,843,191.74 23,300,091.82 48,054,382.56 20,194,966.05
Total 1,492,479,680.88 1,063,754,153.73 1,410,615,405.71 921,991,173.98
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Industrial steam turbine 1,441,636,489.14 1,040,454,061.91 1,362,561,023.15 901,796,207.93
Casting products 0.00 0.00
Auxiliary machinery 0.00 0.00
Packaged equipment for
0.00 0.00
waste heat power plant
Other special equipment 50,843,191.74 23,300,091.82 48,054,382.56 20,194,966.05
Total 1,492,479,680.88 1,063,754,153.73 1,410,615,405.71 921,991,173.98
(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Domestic 1,276,739,350.69 889,403,788.94 1,230,321,303.46 774,410,753.63
Overseas 215,740,330.19 174,350,364.79 180,294,102.25 147,580,420.35
Total 1,492,479,680.88 1,063,754,153.73 1,410,615,405.71 921,991,173.98
(5) Revenue from top five customers
112
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
In RMB
Percentage in total
Name of clients Total turnover turnover of the
Company
Shenyang Turbine Machinery Co., Ltd. 264,838,760.66 17.74%
Xi’an Shanggu Power Co., Ltd. 196,589,743.54 13.17%
Zhejiang Turbine Import & Export Co., Ltd. 178,769,230.80 11.98%
China Petro Hainan Refining Co., Ltd. 56,572,649.60 3.79%
Huazhe Thermal Power Plant Co., Ltd. (the first set) 47,512,820.51 3.18%
Total 744,283,205.11 49.86%
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 170,554,688.00 155,037,180.00
Others 5,943,974.56 2,531,397.24
Total 176,498,662.56 157,568,577.24
(2) Long-term equity investment gains on cost basis
In RMB
Occurred current Occurred in
Company invested in Causation of change
term previous term
Hangzhou Zhongneng Steam Turbine
64,503,750.00 25,801,500.00
Power Co., Ltd.
Hangzhou Steam Turbine Auxiliary
48,957,040.00 61,196,300.00
Machine Co., Ltd.
Zhejiang Steam Turbine Packaged
10,575,258.00 6,220,740.00
Technology Development Co., Ltd.
Hangzhou Steam Turbine Machinery
23,400,000.00 23,400,000.00
& Equipment Co., Ltd.
Bank of Hangzhou Co., Ltd. 23,118,640.00 23,118,640.00
Hangzhou Steam Turbine Casting Co.,
15,300,000.00
Ltd.
Total 170,554,688.00 155,037,180.00 --
(3) Long-term equity investment gains on equity basis
Not applicable
6. Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the Previous
Supplementary Info.
Term Term
1. Net profit adjusted to cash flow of business operation -- --
113
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Net profit 317,806,345.17 389,113,931.05
Plus: Asset impairment provision 16,913,497.95 -5,351,657.81
Fixed asset depreciation, gas and petrol depreciation,
31,345,840.90 30,308,947.94
production goods depreciation
Amortizing of intangible assets 1,178,647.72 1,178,647.72
Loss from disposal of fixed assets, intangible assets, and
-23,194.80 -131,089.69
other long-term assets (“-“ for gains)
Financial expenses (“-“ for gains) -871,655.94 2,199,053.51
Investment loss (“-“ for gains) -176,498,662.56 -157,568,577.24
Decrease of inventory (“-“ for increase) -344,454,821.63 -111,984,046.60
Decrease of operational receivable items (“-“ for increase) -461,124,334.99 -273,524,341.37
Increase of operational payable items (“-“ for decrease) 586,790,248.78 130,582,868.66
Cash flow generated by business operation, net -29,654,513.60 4,823,736.17
2. Major investment and financing operation not involving
-- --
with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 378,882,861.62 237,472,679.86
Less: Initial balance of cash 654,577,030.60 335,248,349.26
Net increasing of cash and cash equivalents -275,694,168.98 -97,775,669.40
7. Reverse purchasing of assets and liabilities booked at evaluated value
None
XIV. Supplementary Information
1. Details of non-recuring gain/loss of the term
In RMB
Items Amount Remarks
Gain/loss from disposal of non-current assets (includes
the recovered part of asset impairment provision already 24,483,141.80
provided)
Gains and losses included in the current period of
government subsidies, excluding those government
grants which are closely related to normal business and 2,221,328.80
in line with national policy , or in accordance with fixed
standards or quantities
Other non-business income and expenditures other than
-795,374.30
the above
Influence on minority shareholders’ quity (after
13,016,624.99
tax)
Total 12,892,471.31 --
2. Differences of financial data under domestic and international accounting standards
(1) Differences in net profit and net assets under international and domestic standards
114
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
In RMB
Net profit attributable to the shareholders Net asset attributable to the shareholders
of the listed company of the listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
Standard
Items and amounts adjusted on IAS
Under International
232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
Accounting Standard
(2) Differences in net profit and net assets under overseas and domestic standards
In RMB
Net profit attributable to the shareholders Net asset attributable to the shareholders
of the listed company of the listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
Standard
Accounts and amounts adjusted according to overseas accounting standard
On IAS 232,926,224.38 337,275,897.42 3,802,135,350.85 3,872,156,922.52
(3) Remarks on the differences of financial data under overseas and domestic accounting standards
None
3. Net income on asset ratio and earning per share
In RMB Yuan
Earnings per share
Weighted average net
Profit of the report period Basic earnings per Diluted earnings per
income/asset ratio (%)
share share
Net profit attributable to common
5.84% 0.31 0.31
shareholders of the Company
Net profit attributable to the common
owners of the PLC after deducting of 5.62% 0.29 0.29
non-recurring gains/losses
4. Irregular situation and causes of items in the financial statements
Items End of term Beginning of term Scale of Remarks on the change
change
Monetary capital 731,040,457.61 1,100,640,580.62 -33.58% Increase in purchasing of trusteeship, cash outflow for
purchasing of trusteeship was greater than inflow
Prepayment 517,482,015.74 275,397,188.58 87.90% Purchase of accessory kits, prepayment increased greatly
Other account 35,917,273.01 179,863,895.91 -80.03% Zhongneng Co. received RMB50 million from Guizhou
receivable Southwestern Cement Co., Ltd. and returning of
RMB91.5077 million received from Guizhou
Zhongcheng Cement Co., Ltd.
115
Hangzhou Steam Turbine Co., Ltd. Semi-annual Report 2013
Other current asset 470,286,995.99 150,724,250.00 212.02% Increase of purchasing trusteeship
Intangible assets 87,831,474.77 210,185,683.85 -58.21% Packaged Equipment Co. was disposed in the period and
no longer in the consolidation range since Feb
Short-term loans 118,500,000.00 250,400,000.00 -52.68% Packaged Equipment Co. was disposed in the period and
no longer in the consolidation range since Feb
Tax payable 44,031,213.00 85,182,827.55 -48.31% Decrease of income tax and VAT payable by the parent
co. and Zhongneng Co.
Dividend payable 316,454,160.00 9,800,000.00 3129.12% Dividend payable by the parent co. in the period, which
was paid on August 12, 2013
Other account payable 23,010,004.57 259,432,035.81 -91.13% Packaged Equipment Co. was disposed in the period and
no longer in the consolidation range since Feb
Income Statement Amount of the Amount of the Changed Remarks on the change
Items period previous year by
Financial expenses 1,542,054.93 15,625,642.92 -90.13% Interest payment by Packaged Co. and Zhongcheng
Cement Co. was greater in previous period, while both of
the two were disposed and not included in the
consolidation range
Asset impairment loss 23,595,101.44 3,740,340.85 530.83% Increase of bad debt provision has increased with the
parent co. and Turbine Co.
Investment income 64,696,068.76 30,415,895.65 112.70% Mainly disposal of Packaged Equipment Co. and increase
of trusteeship
Non-operational income 4,202,690.63 7,991,933.68 -47.41% Decrease of government subsidy
Income tax expenses 47,681,073.69 69,046,850.08 -30.94% Decrease of profit and taxable income under the parent co.
Net profit attributable to 232,926,224.38 337,275,897.42 -30.94% Greater decrease of profit of the parent co.
owners of the parent co.
Minority shareholders’ 55,854,396.54 36,550,132.60 52.82% Increase of profit of the subsidiaries
gain/loss
Chapter IX. Documents for Reference
(I) Semi-annual Financial Report 2013 with the signatures of the legal representative, the CFO, and
the manager of accounting department.
(II) All of the originals of the Company’s documents and public notices publicized by the presses
designated by China Securities Regulatory Commission in the report period;
(III) Original of the resolutions of the 2nd meeting of the 6th term of Board with signatures.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Nie Zhonghai
August 20, 2013
116
