Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2014-33
Hangzhou Steam Turbine Co., Ltd.
Semiannual Report 2014 Summary
Important Prompt
This Summary is abstracted from the full text of the Interim Report 2014. For details of the contents please go to
www.cninfo.com.cn or the official website of Shenzhen Stock Exchange.
1. Company profile
Stock ID Hangqilun B Stock Code
Stock ID changed None
Stock Exchange listed in Shenzhen Stock Exchange
Liaisons Secretary of the Board Representative of Stock Affairs
Name Yu Changquan Wang Gang
Tel.
Fax.
Email. ychq@htc.cnychq@htc.cn wg@htc.cnwg@htc.cn
2. Main Financial Information and Change of Shareholders
(1) Financial highlights
Are there any retrospective adjustment or restatement of financial information of previous year due to change of
accounting policies or correcting of accounting errors?
No
Increase/decrease
This report term Same period last year
(%)
Turnover (RMB)
Net profit attributable to shareholders of the listed
company (yuan)
Net profit attributable to the shareholders of the
listed company and after deducting of
non-recurring gain/loss(RMB)
Net Cash flow generated by business operation
(RMB)
Basic earnings per share (Yuan/share)
Diluted earnings per share (Yuan/share)
Net income on asset, weighted
Changed at end of
report period over
Ended this report term End of prev. year
end of previous
period
Gross Assets (RMB)
Net asset attributable to owners of the PLC
(2) The top 10 holders of common shares
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary
Total common shareholders at the end of the
report period
Top 10 common share holders
Amount of Frozen or pledged
Properties of Share Amount of
Name of the shareholder unconditional shares Status of
shareholder proportion % shares Amount
held shares
Hangzhou Steam Turbine Power Group Co., State-owned
Ltd. legal person
Overseas
NORGES BANKNORGES BANK
legal person
GIC PRIVATE LIMITEDGIC PRIVATE Overseas
LIMITED legal person
Overseas
Li Minggong
natural person
BOCHK INVESTMENT FUNDS-BOCHK
CHINA GOLDEN DRAGON FUNDBOCHK Overseas
INVESTMENT FUNDS-BOCHK CHINA legal person
GOLDEN DRAGON FUND
AUSTRALIANSUPER PTY Overseas
LTDAUSTRALIANSUPER PTY LTD legal person
Domestic
Xia Zulin
natural person
Overseas
KGI ASIA LIMITEDKGI ASIA LIMITED
legal person
VANGUARD TOTAL INTERNATIONAL Overseas
STOCK INDEX FUND legal person
Domestic
Zhu Guanhong
natural person
(1) Hangzhou Steam Power Group Co., Ltd. is the state-owned
shareholder of the Company, all of the other owners are B-share
holders.
Notes to relationship or“action in concert”among the top ten (2) There is no relationship between Hangzhou Steam Turbine Power
shareholders. Group Co., Ltd. and other shareholders;
(3) None of HSTG or other shareholders is “acting-in-concert” as
described by “Administration Rules of Information Disclosure on
Change of Shareholding Position”
Particulars about shareholders take part in financing and stock
Not applicable
financing business
(2) The top 10 preference share holders
No preference shareholders of the Company in the report period.
(2) Changing of controlling shareholder and practical controller of the Company
Change of holding shareholder
No changes in holding shareholder or substantial controller in the report period.
3. Management analyze
In the 1st half of 2014, the world economy was showing a state of uncertain and imbalance. The leading
economies was recovering but at a speed lower than expectation, while the new-coming economies were slowing
down. Chinese government was slowing down the development initiatively and turned to deepening of structural
adjustment. In the report period, domestic industrial investment was descending continuously, the large scale
equipment business was facing severe challenge of the weakened market demand.
Under the impact of macro economy, the downstream industries were in the process of productivity reducing and
inventory dumping. Investment in new productivities was obviously slowing down. Great uncertainty and delay of
investment projects have brought a more complex environment to the Company.
The management was fully aware of the difficulties and challenges the Company was facing. A series of strategies
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary
were carried further, i.e. expanding of industrial chain, international and differentiation strategy, and parallel
developing of production and service providing. A number of measurements were implemented regarding
enhancing of technical innovation, improving of marketing system, promoting of finest quality projects,
deepening of fine management, lifting of operation efficiency, and reinforcing of risk administration. Somehow
the business operation was in a steady pace.
In the report period, the Company has realized turnover of RMB1,743,362,600, a 13.68% of decrease YoY; total
profit of RMB267,376,000, a 20.53% of decrease YoY; net profit of RMB227,702,100, a 21.15% of decrease
YoY; and net profit attributable to owners of the listed company of RMB196,174,900, a 15.78% of decrease YoY.
Progress reviewing of the business plans disclosed in previous periodic report
1. Keep on technical innovation. In the report period, the Company launched 100K class air separation project,
water supply for million class power plant, water pumping steam turbine for nuclear power plant, and key unites
of residual thermal turbine; accelerated development of high power low-pressure turbine, launched research of
large steam turbine module, as well as the development of first organic agent residual thermal power industrial
steam turbine.
The R&D project of steam turbine for million scale ethylene equipment was awarded the 1st prize by Provincial
Department of Machinery Industry, and 1st prize of China Petroleum Group for technical progress. The Steam
Turbine Rotator Dynamic Research, which is a provincial project, was completed and passed in the acceptance
test.
Government subsidies were awarded to the Company for its significant contributions to producing of national
standard for the whole industry. A number of technical researches were conducted in the report period. 12
applications were raised for patents, and 5 patents were granted.
2. Market exploring. As impacted by the overall market situation, the Company’s accepting of new orders was
declining. However the Company has reinforced its share in the market of coal chemistry, thermal power, air
conductor, and petroleum chemistry against its advantages in technologies and reputation. Winning of the contract
for the 1st installation of 100K air separation device for Shenhua Ningmei is a symbol of the Company’s invading
of the field of large air separation equipment of coal chemistry industry.
Back-pressure steam turbines, the Company’s product, are well accepted in the power plant field and under further
promotion. Facing severe competition in this field, the Company was doing its best in expanding sales and lifting
service value.
Along with the economic recovering of developing countries, the Company has reinforced marketing approach in
overseas markets. On the other side, the Company got no new orders in the gas turbine area, which was suffering
from continuous deficit of metallurgy industry. However the gas turbines in operation has contributed RMB40
million of turnover from service providing. Compressor products were in cultivating stage and not yet making
steady profit.
3. Pursuing of management upgrading. In the report period, the Company has been reinforcing internal
management, and increasing operational and economical efficiency. Great efforts have been paid on responsibility
management regarding quality control, cost, and receivable account retrieving, etc.
Continuous inspection and evaluation were performed on key performances with reference to industrial standards.
The Company has been combining resources, enhancing supply chains, and regulating process control to meet
with the requirements of complex product composition, short product circle, and frequent change of market trend.
Furthermore, the Company was continuously refining its production system, supply management, and business
process. Information technologies were further applied in management approaches. The 1st phase of PLM project
was carried out smoothly and will was expected to be put into operation recently. Great effort in energy saving
resulted a 6.98% of decrease in energy consuming per 100 million turnover.
4. Accelerating of major projects. As one of the major construction projects in the 12th 5-year-plan, Steam
Turbine Heavy Industry has accomplished its land purchasing, primary design, technical verification, and initial
assessment. It is in overall designing and planning stage at present. R&D building, the other major construction
project, has finished its primary design up to present.
The Company laid great attention on assessment and implementation of these major projects, for they will be
providing solid foundation for future development.
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Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary
4. Issues involve with financial reports
(1) Statement on changes of accounting policies, accounting estimations, and accounting basis comparing with the
last fiscal year
No changes of accounting policies, accounting estimations, and accounting basis comparing with the last fiscal
year
(2) Statement on correcting of material accounting error and retrospective adjustment
No retrospective correction of material accounting error in the report period.
(3) Statement on change of consolidation range comparing with the previous fiscal year
No change of consolidation range in the report period.
(4) Statement of the Board and the Supervisory Committee on the Non-standard Auditors’ Report issued by the
CPA.
Not applicable
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Nie Zhonghai
August 18, 2014
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