杭汽轮机股份有限公司 2015 年半年度报告
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2015-50
二零一五年半年度报告
SEMIANNUAL REPORT 2015
Hangzhou Steam Turbine Co., Ltd.
August 25,2015
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杭汽轮机股份有限公司 2015 年半年度报告
I. Important Remarks, Table of Contents, and Glossaries
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. Diirector Yan Jianhua ,
Director Ye Zhong and Indepement 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. Zheng Bin, Chief Financial Officer Pu Yangshuo, and the Chief of Accounting Department Mr.
Zhao Jiamao hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.
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杭汽轮机股份有限公司 2015 年半年度报告
Table of Contents
2015 Semi-Annual Report
I..Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
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杭汽轮机股份有限公司 2015 年半年度报告
Definition
Define
Terms to be defined Definition
d as
Define
Company, the Company Hangzhou Steam Turbine Co., Ltd.
d as
Define
The Group, Hangqi Group Hangzhou Steam Turbine Power Group Co., Ltd.
d as
Define
The report period, In the report period January 1, 2015-June 30,2015
d as
Define Hangzhou Zhongneng Steam Turbine Power Co., Ltd. – the
Zhongneng Co.
d as holding subsidiary of the Company
Define Hangzhou Steam Turbine Casting Co., Ltd. – the holding
Casting Co.
d as subsidiary of the Company
Define Zhejiang Steam Turbine Packaged Technology Development Co.,
Packaged Tech. Co.
d as Ltd. – the holding subsidiary of the Company
Define Hangzhou Steam Turbine Machinery Equipment Co., Ltd. - the
Machinery Co.
d as holding subsidiary of the Company
Define Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. - the
Auxiliary Machine Co.
d as holding subsidiary of the Company
Define Zhejiang Turbine Import & Export Co., Ltd. – the holding
Turbine Co.
d as subsidiary of the Company
Define Hangzhou Steam Turbine Heavy Industry Co., Ltd. - the holding
Heavy Industry Co.
d as subsidiary of the Company
Define
The Board of Directors The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
d as
Define
The Supervisory Committee The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
d as
The Shareholders’ Meeting Define The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
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杭汽轮机股份有限公司 2015 年半年度报告
d as
Define
RMB, RMB0’000, RMB000’000’000 RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
d as
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杭汽轮机股份有限公司 2015 年半年度报告
II. Basic Information of the Company
1. Company Information
Stock ID Hangqilun B Stock Code 200771
Stock ID changed(if any)
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese 杭州汽轮机股份有限公司
Short form of Company Name in
杭汽轮
Chinese
Name in English(if any) HANGZHOU STEAM TURBINE CO.,LTD.
Abbreviation in English(if any) HTC
Legal representative: Zheng Bin
Note: if the Company's stock ID changed during the period from the end of the report to the disclosure of the
biannual report, the Company should disclose the changed stock ID.
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 2014.
2. Information inquiry
None of the official presses, website, and place of enquiry has been changed in the report period. For details
please find the Annual Report 2014.
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 2014.
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杭汽轮机股份有限公司 2015 年半年度报告
III. Summary of Accounting Data and Financial Indicators
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
This report term Same period last year Increase/decrease (%)
Turnover (RMB) 1,054,996,326.24 1,743,362,642.27 -39.48%
Net profit attributable to shareholders of the
-10,282,333.32 196,174,851.01 -105.24%
listed company (yuan)
Net profit attributable to the shareholders of
the listed company and after deducting of -22,164,040.35 181,414,092.36 -112.22%
non-recurring gain/loss(RMB)
Net Cash flow generated by business
101,821,573.29 119,786,983.72 -15.00%
operation (RMB)
Basic earnings per share (Yuan/share) -0.01 0.26 -103.85%
Diluted earnings per share (Yuan/share) -0.01 0.26 -103.85%
Net income on asset, weighted -0.23% 4.53% -4.76%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets (RMB) 7,772,378,806.31 7,552,058,947.02 2.92%
Shareholders’ equity attributable to
4,365,106,939.87 4,450,598,244.32 -1.92%
shareholders of the listed company（RMB）
Total share capital of the Company up to a trading day before disclosure：
Total share capital of the Company up to a trading day before
754,010,400
disclosure (Share)
II.The differences between domestic and international accounting standards
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the listed
listed company company
Current term Amount of last term End of term Beginning of term
On Chinese accounting
-10,282,333.32 196,174,851.01 4,365,106,939.87 4,450,598,244.32
standard
No difference .
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杭汽轮机股份有限公司 2015 年半年度报告
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the listed
listed company company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-10,282,333.32 196,174,851.01 4,365,106,939.87 4,450,598,244.32
Standard
No difference .
3. Statement on the differences of accounting information on IAS and domestic accounting standard
Not applicable
III. Non-recurring gain/loss items and amounts
In RMB
Items Amount Remarks
Gain/loss from disposal of non-current assets (includes the recovered part of
-293,394.88
asset impairment provision already provided)
Gains and losses included in the current period of government subsidies,
excluding those government grants which are closely related to normal
3,309,950.00
business and in line with national policy , or in accordance with fixed
standards or quantities
Gain/loss from change of fair value of transactional asset and liabilities, and
investment gains from disposal of transactional financial assets and
10,489,094.59
liabilities and sellable financial assets, other than valid period value
instruments related to the Company’s common businesses
Other non-business income and expenditures other than the above 2,620,570.67
Less: Influenced amount of income tax 3,247,782.47
Influence on minority shareholders’ equity (after tax) 996,730.88
Total 11,881,707.03 --
None of non-recurring gain/loss items recognized as recurring gain/loss items as defined by the Information
Disclosure Explanatory Announcement No.1 – Non-recurring gain/loss in the report period.
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杭汽轮机股份有限公司 2015 年半年度报告
IV. Board of Directors’ Report
I. Business overview
In the report period, the Chinese economy was still facing great downward pressure. Growth of industrial
investment were slowing down; manufacturing demands were depressed; the price index of industrial products
had seen negative growth for 40 months continuously; the Company was struggling to operate and manage.
Caused by the market, the steam turbine industry was obsessed by overcapacity of industry, depressed demands of
the downstream industry, intensified market competition and increased operating cost and other problems. The
whole industry economic indicators were still showing negative growth.
Facing with the economic situation, the Company put forward the working policy" managing strictly,
grasping the market, reducing costs and controlling risk". On the one hand, it accelerated technological progress,
improved the management, cost control and information technology application and made the Company keep
ahead in the industrial Steam Turbine market. On the other hand, the Company actively responded to the national
energy development strategy, researched on the natural gas distributed energy market deeply. Entering into the
natural gas application market, extending the industry chain, promoting industrial upgrading and reducing the
huge impact of macroeconomic downturn by carrying out external cooperation.
In the report period, the Company’s operating income, operating profit, total profit ,net profit and the net profit for
its shareholders were respectively RMB 1,054,996,326.24,RMB 14,696,409.86，RMB 18,824,453.52，
RMB 7,533,997.32 and RMB -10,282,333.32, which respectively decreased by 39.48%,94.34%,92.96%,96.69% a
nd 105.24%year on year.
II. Analysis of main business
(I) General Information
Turnover of the report period has decreased sharply. This was mainly caused by the market environment. Net
profit decreased obviously comparing with the 1st half of last year caused by the market environment and product
composition, which made net profit fall sharply.
The Company's operating profit of RMB 1054.9963 million,which decreased by 39.48% year on year.Net et profit
of RMB 7.534 million, and net profit attributable to owners of the listed Company of RMB -10.2823 million ,
which decreased by 105.24% year on year.
Year-on-year changes in major financial statistics
In RMB
Change over
This report term Same period last year same period last Cause of change
year
Decrease of sales due to industrial
Turnover 1,054,996,326.24 1,743,362,642.27 -39.48% decline
Decrease of sales expense along with
Operation cost 662,509,347.18 1,074,446,850.16 -38.34% sales
Sales expense 67,934,574.09 68,197,974.19 -0.39%
Administrative
expense 315,169,862.90 298,799,463.80 5.48%
Decrease of interest expense due to
Financial expenses 4,932,440.34 9,202,486.72 -46.40%
decrease of bank loan balance in general
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杭汽轮机股份有限公司 2015 年半年度报告
Mainly profit in the period decrease and
Income tax expenses 11,290,456.20 39,673,928.67 -71.54%
income tax expense decrease relatively.
Input to R&D 107,033,616.25 80,416,519.61 33.1%
Cash flow generated
by business 101,821,573.29 119,786,983.72 -15.00%
operation, net
Net cash flow
Mainly decrease of Steam Turbine’s
generated by -35,593,758.80 -58,390,584.46 39.04%
investment fixed asset for the heavy construction
Net cash flow
Mainly caused by returning bank loans
generated by -124,431,470.02 -173,780,354.77 28.40%
financing and distributing dividends
Net increasing of Mainly greater increase of net cash flow
cash and cash -57,390,220.73 -111,810,766.61 48.67% from financing activities in the report
equivalents
period
Mainly changes on the accounting
Asset impairment evaluation of provision for bad debts set
22,650,560.50 55,223,094.46 -58.98%
loss up on accounts receivable in the report
period
No change in profit composition or sources in the report period.
(II) Progress reviewing of the business plans disclosed in previous periodic report
In the report period, impacts on the Company's financial indicators of the operation failing to achieve the plan
drew up at the beginning of the year, great changes of the macroeconomic environment and the continuous
adjustment of the economic structure were far more than expectation and more highlighted the urgency of the
current enterprise transformation and upgrading. Therefore, the Company actively promoted each key work on the
development of enterprises according to the plan for the beginning of the year in the 1st half of the year.
1.Strategic plan seeking transformation. In the report period, facing with continuous and profound impacts on
industrial pattern brought by China's economic new normal, the Company actively organized special
investigations and assessments, grasped the development trend of the industry and laid out enterprises “13th
five-year-plan’’ transformation of the road. The Company would seek innovation-driven development, increase
integration efforts to the industrialization and information , promote the manufacturing process as
digital ,networked and intelligent and promote the production-oriented manufacturing industry to turn to
service-oriented manufacturing industry combing with the requirements of China's industrial manufacturing
2025.Aiming at future application of the natural gas in China's vast market, the Company carried out the extensive
market research, ensured to deepen the implementation of the gas turbine business strategy in the“13th
five-year-plan”period and realized the transition upgrading of Company’s products technology. In the report
period, the Company's major construction projects on steam turbine heavy industry and R & D center had started
construction one after another and the project was going smoothly.
2. Technological innovation stores kinetic energy. In the report period, the domestic first set of one hundred
thousand air separation device stepped into in the final acceptance stage; the projects put into operation
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杭汽轮机股份有限公司 2015 年半年度报告
successfully would have demonstration effects on the follow-up of domestic large coal chemical projects and also
marked the Company's industrial Steam Turbine design and manufacturing capacity had entered advanced ranks
in the world. The Company's first design of the axial exhaust steam turbine test run was successful and exported
overseas markets. Company's “ NLNK series of low quality and high efficient use of waste heat of industrial
steam turbine project ”wins the China Machinery Industry Science and Technology Award, the project “1000MW
supercritical thermal power generating unit boiler induced-draft fan driven by steam turbine” won the 2014
Annual Zhejiang Machinery Industry Science and Technology Award; “steam waste heat, pressure recovery steam
turbine” and “petrochemical industry waste heat utilization steam turbine” two major products as efficient
energy-saving equipment and products , identified jointly by Provincial Economic and information technology
Committee, Provincial Development and Reform Commission and Provincial Department of Finance as 2014
Annual “Zhejiang manufacturing quality”. Research on the project of "800,000 T / Y ethylene plant ethylene
refrigeration compressor unit" is approved by the Department of China Petroleum & Chemical Corporation
supplies and equipment. In the report period, the Company filed for 2 technical patents and 8 utility model patents
in the 1st half of the year and 1 technical patents and 6 utility model patents had been authorized.
3．Responding to the market breakout actively. In the report period, the industrial steam turbine market showed
overall downward trend. With the exchange rate of euro and yen continuing downward, foreign products
enhanced competition in the domestic high-end market; domestic manufactures market competition continued to
intensify and product prices continued to decline. Facing with the market structure limited by the internal and
external, the Company actively changed the marketing organization structure; fully integrated domestic and
foreign two market, industrial drive and industrial power two areas, equipment sales and supply two models; fully
tapped the market potential and developed the user values deeply. The Company had achieved good results in the
high power generator units, large capacity power station feed water pump and induced draft fan units and other
markets in the 1st half of the year. With the restart of domestic nuclear power projects construction, the Company
got new orders for nuclear power projects this year. Through unremitting efforts, the Company successfully
obtained gas turbine sets projects in Tiantie Group project. The Company was carrying out market cooperation
through a variety of ways currently and strived to enter into the natural gas distributed energy and cogeneration
market which is nascent at home.
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杭汽轮机股份有限公司 2015 年半年度报告
4．Management upgrading promoted reform. In the report period, the Company had been carrying out and
implementing process optimization and management reforms in scientific research, marketing, manufacturing,
finance, management and other fields, breaking through the original management model boldly to meet with the
urgent requirements of reducing costs, improving efficiency and controlling the risk .The Company accelerated
the construction of information technology and implemented the PLM project which would go online. Hangzhou
Steam Turbine Design - production process refinement management system construction was listed as the 2015
provincial deep integration of two socialization planning project; carrying forward centralized procurement,
warehousing upgrading, financial business integration and other management projects continuously. Great efforts
had been paid on controlling the risks of receivable accounts, inventory goods, the process of fulfilling the
contract and the establishment of shared risk-taking mechanism.
III. Main business composition
In RMB
Gross Change in Change in
Change in
Turnover Operation cost profit ratio operation cost gross profit
turnover YoY
% YoY YoY
On Industries
Boiler and
power machine 790,748,409.49 509,438,875.99 35.58% -42.76% -40.30% -2.65%
manufacture
Casting 37,544,132.47 31,350,755.93 16.50% 8.58% 25.48% -11.24%
Petrochemical
and other
56,432,075.30 41,221,480.07 26.95% 14.34% 65.94% -22.72%
special
machineries
Other 166,927,317.00 79,720,865.04 52.24% -39.04% -52.77% 13.85%
Subtotal 1,051,651,934.26 661,731,977.04 37.08% -39.53% -38.27% -1.29%
On Products
Industrial steam
790,748,409.49 509,438,875.99 35.58% -42.76% -40.30% -2.65%
turbine
Casting
37,544,132.47 31,350,755.93 16.50% 8.58% 25.48% -11.24%
products
Auxiliary
56,432,075.30 41,221,480.07 26.95% 14.34% 65.94% -22.72%
machinery
Other 166,927,317.00 79,720,865.04 52.24% -39.04% -52.77% 13.85%
Subtotal 1,051,651,934.26 661,731,977.04 37.08% -39.53% -38.27% -1.29%
District
Domestic 955,526,784.01 576,919,978.08 39.62% -42.30% -43.54% 1.33%
Overseas 96,125,150.25 84,811,998.96 11.77% 15.49% 69.33% -28.06%
Subtotal 1,051,651,934.26 661,731,977.04 37.08% -39.53% -38.27% -1.29%
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 years of experiences, which provided obvious advantages from technical
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杭汽轮机股份有限公司 2015 年半年度报告
research to production, from marketing to customer services.
First. 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 an academician workstation. Close
co-operations 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 models of steam turbines to the customers and
hold the newest technical system covering the product lines up to 150 MW.
Secondly, the company production model of modular design, concurrent engineering, enabled the company to
balance the production cost, delivery date and customer demands.
Thirdly, the Company has established strategic co-operations 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 set up in the domestic steam turbine market. In the global market, the Company has acquired multiple
important certifications and has established a primary global recognition.
Fourthly, the Company has its complete 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
maintenance and reengineering of other manufacturers’ products.
Fifthly, the Company has cultivated a significant advantage in human resources. Great importance has been
attached to construction of work teams with collection of high-end workforce in the areas of research &
development, designing, technique, testing, and quality control. An excellent workforce provides a sound
foundation to lift quality and services.
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杭汽轮机股份有限公司 2015 年半年度报告
V. Analyzing of investment position
1. External equity investment
(1) External investment
External Investment
Investment of the period (RMB) Investment of same period of last year (RMB) Scale of change
15,975,590.25 100.00%
Particulars of the invested company
Name of companies Main Business Share of equity in invested entity
Hangzhou Changdi Equity Investment Partnership (limited
External investment 2.97%
liability)
Shejiang Zhongrun Fuel Engine Technology Co.,Ltd. Fuel Engine repair and related materials Development 55.55%
(2) Shareholding in financial enterprises
√ applicable □ not applicable
Sharehol
Sharehol
Type ding
Opening Shares held at ding
of Original investment percenta Close balance of Gain/loss in report Source of
Name of companies amount of the end of term percenta Accounting subject
compa cost (RMB) ge at book value (RMB) period (RMB) shares
shares (shares) ge at
ny beginnin
closing
g
Com
merci
Bank of Hangzhou Co., Ltd. 390,954,040.00 138,711,840 6.92% 138,711,840 5.89% 390,954,040.00 27,742,368.00 Sellable financial asset Own capital
al
Bank
Total 390,954,040.00 138,711,840 -- 138,711,840 -- 390,954,040.00 27,742,368.00 -- --
(3) Stock investment
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杭汽轮机股份有限公司 2015 年半年度报告
No securities investment in the report period.
（4） Statement of holding equities in other PLCs
The Company was not holding shares of any other PLC as of the end of report period.
2. Trusted financing, derivate instruments, and trusted loans
(1) Trusted financing
In RMB’0000
Impairment
Related
Mean of Principal retrieved provision Predicted Actual gain/loss
Title of entrustee Relationship transaction Type of product Amount entrusted Started on Expired on
reward this period provided (if income of the period
or not
any)
Financial
Ping An Bank of China Non-related No instruments of 16,800 12,200 181.6 90.5
banks
Industrial & Commercial Bank of Financial
Non-related No instruments of 7,080 7,080 48.83 49.19
China banks
Financial
Shanghai Bank Non-related No instruments of 2,000 24.43
banks
Financial
Citic Bank Co., Ltd. Non-related No instruments of 19,106 11,106 168.54 74.78
banks
Financial
Bank of China Non-related No instruments of 6,500 3,500 6.86 7.07
banks
Financial
Hangzhou Bank Non-related No instruments of 10,000 5,000 86.04 33.68
banks
Financial
China Minsheng Bank Non-related No instruments of 4,000 4,000 15.45 15.45
banks
Financial
China Everbright Bank Non-related No instruments of 2,000 2,000 7.39 7.39
banks
Financial
URCB Non-related No instruments of 6,000 2,000 72.54 43.7
banks
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杭汽轮机股份有限公司 2015 年半年度报告
Changan International Trust Co.,
Non-related No Trust products 12,000 5,000 674.64 162.25
Ltd.
Zhongrong International Trust Co.,
Non-related No Trust products 3,000 88.77
Ltd.
Hangzhou Industrial & Commercial
Non-related No Trust products 23,800 19,000 1,259.71 548.95
Trust Co., Ltd.
Ping’an Trust Co., Ltd. Non-related No Trust products 1,000 1,000 15.95 15.95
Total 113,286 -- -- -- 71,886 2,650.75 1,048.91
Resource of capital trusted Independent
(2) Derivate instrument investment
No derivate instrument investment in the report period.
(3) Trusted loans
No trusted loans in the report period.
3. Using of proceeds from share placing.
No using of capital from public financing in the report period.
4. Analyze of main subsidiaries and affiliates
Profiles of main subsidiaries and affiliates
In RMB
Type of
Name of companies Industry Major products or service Registered capital Gross Assets Net asset Turnover Operation profit Net profit
business
Trade of Technological development
Zhejiang Steam Turbine Packaged Subsidiarie
packadged of automatic control and 51,000,000.00 286,524,386.31 92,192,230.44 87,432,537.33 12,214,314.92 10,039,415.19
Technology Development Co., Ltd. s
equipment instrument control
Designing and
Hangzhou Zhongneng Steam Turbine Subsidiarie Manufactur
manufacturing of steam 92,500,000.00 835,247,199.68 319,399,264.40 250,704,039.65 8,525,656.26 5,081,221.70
Power Co., Ltd. s ing
turbines
Hangzhou Steam Turbine Casting Co., Subsidiarie
Casting Iron and steel casting 22,000,000.00 419,775,531.36 159,206,890.86 130,950,701.52 -3,003,996.42 -1,208,396.38
Ltd. s
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杭汽轮机股份有限公司 2015 年半年度报告
Hangzhou Steam Turbine Machinery Subsidiarie Manufactur Producing and processing of
& Equipment Co., Ltd. s ing steam turbine parts 30,000,000.00 187,338,758.22 121,887,377.13 91,266,078.22 27,734,512.03 22,850,938.28
Hangzhou Steam Turbine Auxiliary Subsidiarie Manufactur Manufacturing of steam
Machine Co., Ltd. s ing turbine auxiliary machines 80,000,000.00 442,656,182.84 227,252,800.13 198,271,553.26 26,848,703.98 23,144,009.00
Zhejiang Turbine Import & Export Subsidiarie Commerce
International trade 20,000,000.00 334,148,966.62 66,520,988.21 45,868,149.38 674,876.37 433,272.95
Co., Ltd. s & trade
Designing and
Hangzhou Steam Turbine Heavy Subsidiarie Manufactur
manufacturing of steam 360,000,000.00 372,243,593.98 371,739,775.19 5,659,274.60 4,244,455.95
Industry Co., Ltd. s ing
turbines
5. Major projects using non-raised capital
In RMB’0000
Investment
Planned Amount invested this Accumulation of actual input at end of Turnover of the Date of disclosure (if Index of information
Projects progress of
investment report term period project any) disclosed
the project
Project of Steam
Turbine Heavy 208,400 365.76 9,033.49 4.33%
Industry
Total 208,400 365.76 9,033.49 -- -- -- --
VI. Prospectus of business performance of January – September 2015
Prediction: Loss
Category of prediction data: periodic data
From the beginning of year to the end of next
Same period last year Changed by
report period
Predicted number of accumulative net profit
(RMB0,000) -9500 -- -4500 18,396.51 Decrease 124.46% -- 151.64%
Net profit attributable to the shareholders of listed
company RMB0’000 -0.11 -- -0.05 0.244 Decrease 120.49% -- 145.08%
Net profit attributable to the shareholders of the listed company was decreasing significantly,This is mainly caused by changes of market
economic environment and suspension or revocation of parts of the Company's customer projects. Sales income of the report period had
Basic earnings per share (Yuan/share)
decreased sharply. At the same time, net profit fell sharply comparing with the 1st half of last year caused by the above reasons and product
composition.
Remarks on the prediction
VII. Statement of the Board and Supervisory Committee on the “Non-standard auditors’ report” issued by the CPA on the current report period
Not applicable
VIII. Statement of the Board on the “Non-standard auditors’ report” of previous report period
17
杭汽轮机股份有限公司 2015 年半年度报告
Not applicable
18
杭汽轮机股份有限公司 2015 年半年度报告
IX. Profit distribution carried out in the report period
Particulars about the execution or adjustment of profit distribution, especially cash dividend and capitalizing of
capital reserves.
The profit distribution preplan of year 2014, which was proposed by the Board, was: basing on the total capital
share in 2014, namely 754,010,400 shares, RMB1.00 and no bonus share(tax included) will be distributed to
each 10 shares. No capitalizing of common reserves will be implemented.Totally RMB75,401,040 will be
distributed. This plan was approved by the Shareholders’ Meeting 2014 held on May 15, 2015.
The Company disclosed the “Announcement of Dividend Distribution for Year 2014” (Announcement No.
2015-35), by which the final trading day of B stocks were June 17, 2015; the ex-dividend day was June 18, 2015;
and the shareholding registration day was June 23, 2015.
The Company entrusted China Securities Registration and Clearance Co., Ltd. Shenzhen Branch to carry out the
dividend plan on June 23, 2015. Income taxes payable by the shareholders were deducted and paid by China
Securities Registration and Clearance Co., Ltd. Shenzhen Branch on behalf.
Particulars about Cash Dividend Policy
Whether satisfying the requirements of the Articles of Association or resolutions of the shareholders’
Yes
meeting
Are standard and rate of dividend definite and clear Yes
Complete decision making process Yes
Independent directors fulfilling their responsibilities Yes
Whether the minority shareholders were given opportunities to express their claims or opinions,
Yes
whether their legal rights are safeguarded
Whether the conditions and procedures of adjusting cash dividend policy legal and transparent Yes
X. Profit distribution for the report period.
None of cash dividend, bonus shares, or capitalizing of common reserves will be carried out for the first half of
year.
XI. Reception of investigations, communications, or interviews
Main content involved and material
Time/date Place Way Type of visitors Visitors
provided
The Company's main business,
performance situation; the Company
gas turbine project; the Company
shares of Hangzhou Bank; the
The Field British Schroder Group .
May 21,2015 Individual Company’s building projects
Company research Shanghai Office
situation; the Company's attitude
towards the reform of B shares;
export business situation and
overseas cooperation in the future.
19
杭汽轮机股份有限公司 2015 年半年度报告
V. Important Events
I. Administrative Position
For the report period, the Company’s actual administration practices were complying with the requirements of the Company Law and CSRC without any differences.
II. Material lawsuit
In the report period, the Company had no material lawsuits or arbitrations.
Other lawsuit
Inde
Involved Whether to Date
x of
Basic situation of litigation amount form The oucome and effects of Execution of litigation of
Progress of the litigation(arbitration(arbitration) discl
(arbitration) (RMB’00 expected litigation(arbitration) (arbitration)judgement disclo
osur
00) liability sure
e
The Company sued to Qianan District People's Court for
Yanshan Tangshan Iron& Steel Co., Ltd. (ID: Yanshan Iron&
Steel), requiring Yanshan Iron& Steel to pay the remain
RMB6,260,000 loans of the Steam Turbine contract. After
As of June 30, 2015, Yanshan
Qianan People's Court opened a court session heard this case The court made effective
lodged a complaint against Iron& Steel hadn’t paid the loans
and made judgements in September, October, November 2014 judgements that Yanshan Iron&
Yanshan Tangshan Iron& Steel 626 No and the Company applied for
respectively which required Yanshan Iron& Steel to pay the Steel paid RMB6,260,000 and
Co., Ltd. defaulting on loans Qianan People's Court to enforce
loans and overdue interests. Yanshan Iron& Steel didn’t obey overdue interests.
execution in August 2015.
the first trial judgement and lodged an appeal to The Tangshan
intermediate People's Court. The Tangshan
intermediate People's Court opened a court session heard this
case in April, 2015 and confirmed the first trial judgement.
20
杭汽轮机股份有限公司 2015 年半年度报告
After both sides reached an
The Company sued to Xiacheng District Hangzhou People's
agreement, the court made
Court for Tianji Shanxi Chemical Co., Ltd. (ID: Luan
The Company lodged a mediation agreement which
Chemical) on June, 2014, requiring Luan Chemical to pay the Luan Chemical had paid RMB
complaint against Luan Tianji required
287.15 No remains RMB 2.8715 million loans of the contract and overdue 200,000 and owed RMB 2.6715
Shanxi Chemical Co. , Luan Chemical to pay RMB
interests. Both sides reached an agreement after mediation and million on June 30, 2015.
Ltd .defaulting on loans 2.8715 million in instalments and
the court made mediation agreement.
finish the payments by September
30, 2015.
Yanshan Tangshan Iron& Steel
Yanshan Iron& Steel sued to Qianan District People's Court for The case came on for trial on
Co., Ltd. lodged a complaint The court didn’t make effective
377.2 No the Company’s late shipment contract according to the June 8, 2015 and the court didn’t
against the Company late shipment judgements.
“memorandum” sighed with the Company. make judgements currently.
contract
The Company sued to Suzhou District People's Court for
The Company lodged a Qilianshan Gansu Pharmaceutical Co., Ltd. (ID: Qilianshan The court made judgement which Qilianshan Pharmaceutical had
complaint against Qilianshan Pharmaceutical), requiring Qilianshan Pharmaceutical to pay required Qilianshan paid RMB 31,000 on June30,
6.2 No
Gansu Pharmaceutical Co. , the remains RMB 62,000 loans of the contract and overdue Pharmaceutical to pay RMB 2015 and the remains will be paid
Ltd .defaulting on loans interests. The court opened a court session heard this case on 62,000 on two instalments. later.
June, 2015.
21
杭汽轮机股份有限公司 2015 年半年度报告
III. Questioning by the media
No media queries raised in the report period.
IV. Bankruptcy and reconstruction
No bankruptcy or capital reorganizing issues occurred in the report period.
V. Asset transactions
1. Asset acquisition
No asset acquisition occurred in the report period.
2. Disposal of assets
No disposal of assets in the report period.
3. Merger of entities
No merger of entities occurred in the report period.
VI. Implementing of share incentive scheme and influence to the Company
No share incentive scheme was implemented in the report period
22
杭汽轮机股份有限公司 2015 年半年度报告
VII. Material related transactions
1. Related transactions related to daily operation
Whether Index
Trading limit over the Market of
Principle of
Subjects of the Ratio in price of infor
Type of pricing the Price of Amount of trade Way of Date of
Related parties Relationship related similar approved approved similar matio
trade related trade RMB0’000 payment disclosure
transactions trades trade n
transactions
（RMB’0000） limited or available disclo
sure
not (Y/N)
Hangzhou Steam Accept Freight, Bank March 2015-
Market
Turbine Automobile Affiliate of the Group Fair and just 2,683.73 6400 No
price
Sales Service Co., Ltd. labor repairing, etc. transfer 26,2015 13
Hangzhou Hangfa Bank March 2015-
Purchase Market
Power Generating Affiliate of the Group Generators Fair and just 3,894.02 13000 No
of goods price
Equipment Co., Ltd. transfer 26,2015 13
Shares held by the Purchase Market Bank March 2015-
Greenesol Co. (India) Generators Fair and just 2,538.06 5200 No
Company of goods price
transfer 26,2015 13
Total -- -- 9,115.81 -- 24600 -- -- -- --
2. Related transactions in terms of acquisition or disposal of assets:
No related transaction regarding asset purchase or disposal up to the end of report period.
3. Related transactions in term of collective external investment
No related transaction of joint external investment in the report period.
4. Debts and credits with related parties
Debts receivable from related party
Whether has Balance at
Current newly Balance at
non-business period-begin Current recovery Current interest
Related Relationship Causes added Interest rate period-end
capital occupying （RMB’000 （RMB’0000） （RMB’0000）
（RMB’0000） （RMB’0000）
or not 0）
23
杭汽轮机股份有限公司 2015 年半年度报告
Hangzhou Steam Turbine Controlled
Casting Co., Ltd. subsidiaries Disbursement Yes 0 1,458.34 5.61% 40.91 1,458.34
Influence on business performance and
financial status of the Company from related
liabilities
5. Other material related transactions
No other material related transactions.
VIII. Non-operational capital appropriation by holding shareholder and related parties
No non-operational capital appropriation by holding shareholder or related parties occurred in the report period.
IX. Material contracts and execution
1. Entrustment, contracting, and leasing issues
(1) Entrustment
No entrustment in the report period.
(2) Contracting
No contracting in the report period.
(3) Leasing
No leasing in the report period.
2. Guarantees
In RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Amount of Actual date of
Amount of guarantee and Complet Related
Guarantee provided to the occurring (signing date Actual amount of guarantee Type of guarantee Term
date of disclosure ed or not guarantee
guarantee of agreements
24
杭汽轮机股份有限公司 2015 年半年度报告
Hangzhou Guoneng Steam Joint liability
Fubruary 14,2015 10,000 Fubruary 11, 2015 10,000 1 year No No
TurbineEngineering Co., Ltd. quaranty
Total guarantee quota to the subsidiaries approved in the reporting Total amount of guarantee to the subsidiaries actually
10,000 0
period (C1) incurred in the reporting period (C2)
Total guarantee quota to the subsidiaries approved at the end of ）otal balance of actual guarantee to the subsidiaries at
10,000 0
the reporting period (C3) the end of the reporting period (C4)
The Company’s total guarantee(i.e.total of the first three main items)
Total guarantee quota approved in the reportingperiod Total amount of guarantee actually incurred in the
10,000 0
（A1+B1+C1） reporting period（A2+B2+C2）
Total guarantee quota already approved at theendof the reporting Total balance of the actual guarantee at the end of the
10,000 0
period（A3+B3+C3） reporting period（A4+B4+C4）
Description of the possibility of bearing joint repayment liability due to undue guarantee (if any) N/A
Description of external guarantee against the specified procedures (if any) N/A
(1) Illegal providing of external guarantees
No illegal providing of external guarantees in the report period.
3. Other material contracts
No other material contract in the report period.
4. Other material trades
No other material trade in the report period.
25
杭汽轮机股份有限公司 2015 年半年度报告
X. Commitment issues by shareholders with 5% or over of shares in the report period or carried over to the report
period from previous periods
No commitment issues by shareholders with 5% or over of shares in the report period or carried over to the
report period from previous periods
XI. Engaging and dismissing of CPAs
The semi-annual financial report has not been audited.
XII. Punishment and improvement
No punishment or improving approach in the report period.
XIII. Disclosure of illegal action causing risk of delisting.
No such illegal action causes risk of delisting.
XIV. Statement on other material issues
1. The Company applied for suspension as the controlling shareholder Hangzhou Steam Turbine Engineering Co.,
Ltd. was planning major issues.The Company’s stock was suspending trading from May 29, 2015. Please see
detailed information on Company’s announcement.
（Announcement No：2015-33,2015-34,2015-36,2015-37 and 2015-38）
26
杭汽轮机股份有限公司 2015 年半年度报告
27
杭汽轮机股份有限公司 2015 年半年度报告
VI. Change of share capital and shareholding of Principal Shareholders
1.Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitaliz
Share ation of
Bonus
allotmen common Other Subtotal Quantity Proportion
shares
t reserve
fund
I. Shares with trade
479,919,891 63.65% 0 0 0 16,950 16,950 479,936,841 63.65%
restriction conditions
1. State-owned shares 479,824,800 63.64% 0 0 0 0 0 479,824,800 63.64%
2. Other domestic shares 95,091 0.01% 0 0 0 16,950 16,950 112,041 0.01%
Domestic natural person
95,091 0.01% 0 0 0 16,950 16,950 112,041 0.01%
shares
II. Shares without trading
274,090,509 36.35% 0 0 0 -16,950 -16,950 274,073,559 36.35%
limited conditions
Foreign shares listed at
274,090,509 36.35% 0 0 0 -16,950 -16,950 274,073,559 36.35%
home
III. Total of capital shares 754,010,400 100.00% 0 0 0 0 0 754,010,400 100.00%
II. Number of shareholders and shareholding positions
In shares
Total number of preferred
Total common shareholders at the end shareholders that had restored the
15,540 voting right at the end of the 0
of the report period
reporting period (if any) (note 8)
Shareholding of shareholders holding more than 5% shares
Number os
share
Proporti pledged/froze
Number of Changes in Amount of Amount of
Nuture of on of n
Shareholders shares held at reporting restricted shares un-restricted
shareholder shares
period -end period held shares held State
held（%） Amou
of
nt
share
Hangzhou Steam Turbine Power Group State-owned
Co., Ltd. legal person 63.64% 479,824,800 0 479,824,800 0
GUOTAI JUNAN Foreign legal
1.89% 14,284,477 11162299 0 14,284,477
SECURITIES(HONGKONG) LIMITED person
Foreign legal
First Shanghai Secrutities Co., Ltd. 0.68% 5,095,921 5095921 0 5,095,921
person
Foreign legal
NORGES BANK 0.57% 4,303,675 1845100 0 4,303,675
person
28
杭汽轮机股份有限公司 2015 年半年度报告
CHINA INT'L CAPITAL CORP HONG Foreign legal
0.41% 3,066,768 3066768 0 3,066,768
KONG SECURITIES LTD person
Foreign legal
GIC PRIVATE LIMITED 0.35% 2,665,330 0 0 2,665,330
person
VANGUARD TOTAL
Foreign legal
INTERNATIONAL STOCK INDEX 0.30% 2,286,336 257500 0 2,286,336
person
FUND
BOCHK INVESTMENT
Foreign legal
FUNDS-BOCHK CHINA GOLDEN 0.30% 2,273,227 1235227 0 2,273,227
person
DRAGON FUND
Foreign legal
AUSTRALIANSUPER PTY LTD 0.28% 2,108,321 0 0 2,108,321
person
Domestic
Xia Zulin 0.28% 2,100,000 42000 0 2,100,000
Natural person
Particulars about strategic investors or general
corporations becoming among the top 10 shareholders due Not applicable
to share placing (if any) (See Note 3)
(1) Hangzhou Steam Turbine Power Group Co., Ltd. is the holder of state-shares of the
Company, all other shareholders’ are holders of domestic listed foreign shares (B shares)
(2) There is no relationship between Hangzhou Steam Turbine Power Group Co., Ltd.
Notes to relationship or “action in concert” among the top
and other shareholders;
ten shareholders.
(3) Hangzhou Steam Turbine Group Co., Ltd. is not an “action-in-concert” party with
any of other shareholders as described by the “Administration Rules of Informational
Disclosure about Change of Shareholding Statues of PLCs”.
Top 10 holders of shares without trading limited conditions
Amount of unconditional Category of shares
Name of the shareholder shares held at end of
Category of shares Amount
period
Foreign shares placed in
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 14,284,477 14,284,477
domestic exchange
Foreign shares placed in
First Shanghai Secrutities Co., Ltd. 5,095,921 5,095,921
domestic exchange
Foreign shares placed in
NORGES BANK 4,303,675 4,303,675
domestic exchange
Foreign shares placed in
CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD 3,066,768 3,066,768
domestic exchange
Foreign shares placed in
GIC PRIVATE LIMITED 2,665,330 2,665,330
domestic exchange
Foreign shares placed in
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 2,286,336 2,286,336
domestic exchange
BOCHK INVESTMENT FUNDS-BOCHK CHINA GOLDEN Foreign shares placed in
2,273,227 2,273,227
DRAGON FUND domestic exchange
AUSTRALIANSUPER PTY LTD 2,108,321 Foreign shares placed in 2,108,321
29
杭汽轮机股份有限公司 2015 年半年度报告
domestic exchange
Foreign shares placed in
Xia Zulin 2,100,000 2,100,000
domestic exchange
Foreign shares placed in
Taifook Securities Company Limited-Account Client 1,753,655 1,753,655
domestic exchange
1）It is unknown to the Company if there is any relationship among the
top 10 common share holders without restriction;
Explanation on associated relationship or consistent action among the top
(2) Hangzhou Steam Turbine Group Co., Ltd. is not an action-in-concert”
10 shareholders of non-restricted negotiable shares and that between the
party with any of other shareholders as described by the “Administration
top 10 shareholders of non-restricted negotiable shares and top 10
Rules of Informational Disclosure about Change of Shareholding Statues
shareholders
of PLCs”.
Notes to the shareholders involved in financing securities (if any)(See
Not applicable
Notes 4)
No agreed repurchasing trade by shareholders in the report period
III. Change of holding shareholder or substantial controller
No changes in holding shareholder or substantial controller in the report period.
IV. Proposals raised by the shareholders or their action-in-concert parties about increasing of shareholding
To the knowledge of the Company, there is not any proposal raised by the shareholders or their action-in-concert
parties about increasing of shareholding.
30
杭汽轮机股份有限公司 2015 年半年度报告
VII. Situation of the Preferred Shares
No issue regarding preference shares in the report period.
VIII. Information about Directors, Supervisors and Senior Executives
I. Change of shareholding of directors, supervisors and senior executives
Shares
holding at Shares Shares Shares under Shares put
Shares Shares under
Status of the increased decreased restriction at under
Name Position held at the restriction at end
service beginning this term this term beginning of restriction in
end of term of period
of term (shares) (shares) period the period
(shares)
Wang
Supervisor On duty 37,556 22,600 0 60,156 0 0 0
Xiaohui
Total -- -- 37,556 22,600 0 60,156 0 0 0
II. Replacing of directors, supervisors, and executives
No changes happened to any of the directors, supervisors, or executives in the report period. For details please
refer to the Annual Report 2014.
31
杭汽轮机股份有限公司 2015 年半年度报告
IX. 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.
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd
June 30,2015
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 556,567,843.18 613,958,063.91
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Bill receivable 680,533,170.35 701,109,938.01
Account receivable 2,155,076,664.91 2,388,919,641.98
Prepayments 192,415,265.82 172,022,768.39
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 26,855,901.45 25,382,223.32
Repurchasing of financial assets
Inventories 2,056,698,608.69 1,594,074,228.69
Assets held for sales
Non-current asset due in 1 year
Other current asset 432,903,394.85 382,070,235.56
Total of current assets 6,101,050,849.25 5,877,537,099.86
32
杭汽轮机股份有限公司 2015 年半年度报告
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 504,966,453.19 498,990,862.94
Expired investment in possess
Long-term receivable
Long term share equity investment
Property investment
Fixed assets 643,577,368.14 678,033,380.86
Construction in progress 106,182,252.58 89,469,259.14
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 308,508,911.77 304,100,619.77
R & D petrol
Goodwill
Long-germ expenses to be amortized 1,041,796.52 1,041,796.52
Differed income tax asset 107,051,174.86 102,885,927.93
Other non-current asset
Total of non-current assets 1,671,327,957.06 1,674,521,847.16
Total of assets 7,772,378,806.31 7,552,058,947.02
Current liabilities
Short-term loans 193,300,000.00 198,600,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 123,907,495.41 150,763,452.14
Account payable 962,111,122.36 763,085,718.92
Advance payment 1,656,586,126.69 1,374,736,209.67
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 41,557,798.81 65,672,706.09
Tax payable 19,622,641.69 126,091,260.73
33
杭汽轮机股份有限公司 2015 年半年度报告
Interest payable
Dividend payable
Other account payable 26,359,396.25 29,597,889.12
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 3,023,444,581.21 2,708,547,236.67
Non-current liabilities：
Long-term loan 23,700,000.00 18,500,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 330,000.00 330,000.00
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Differed income 7,108,355.00 8,252,705.00
Differed income tax liability 1,017,473.05 1,017,473.05
Other non-current liabilities 5,084,464.00
Total non-current liabilities 37,240,292.05 28,100,178.05
Total of liability 3,060,684,873.26 2,736,647,414.72
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Capital reserves 139,590,345.09 139,590,345.09
Less：Shares in stock
Other comprehensive income -799,284.89 -640,401.72
Special reserves 24,954,102.00 24,603,149.96
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Undistributed profit 2,826,238,569.89 2,911,921,943.21
Total of owner’s equity belong to the
parent company 4,365,106,939.87 4,450,598,244.32
Minority shareholders’ equity 346,586,993.18 364,813,287.98
34
杭汽轮机股份有限公司 2015 年半年度报告
Total of owners’ equity 4,711,693,933.05 4,815,411,532.30
Total of liabilities and owners’ equity 7,772,378,806.31 7,552,058,947.02
Legal Representative:Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
2.Parent Company Balance Sheet
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 257,164,117.40 248,509,410.84
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 440,980,570.67 385,543,218.94
Account receivable 1,704,877,619.52 2,010,980,253.99
Prepayments 77,807,950.85 72,514,421.98
Interest receivable
Dividend receivable
Other account receivable 24,935,426.35 33,537,812.35
Inventories 1,634,702,407.73 1,159,102,793.67
Assets held for sales
Non-current asset due in 1 year
Other current asset 108,833,703.95 30,000,000.00
Total of current assets 4,249,301,796.47 3,940,187,911.77
Non-current assets：
Disposable financial asset 459,986,453.19 454,010,862.94
Expired investment in possess
Long-term receivable
Long term share equity investment 502,919,378.03 502,919,378.03
Property investment
Fixed assets 327,923,082.97 354,282,465.72
Construction in progress 79,921,470.83 67,302,264.59
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 179,895,252.95 181,918,239.41
R & D petrol
Goodwill
35
杭汽轮机股份有限公司 2015 年半年度报告
Long-germ expenses to be amortized 1,015,547.54 1,015,547.54
Differed income tax asset 77,252,961.40 74,164,090.15
Other non-current asset
Total of non-current assets 1,628,914,146.91 1,635,612,848.38
Total of assets 5,878,215,943.38 5,575,800,760.15
Current liabilities
Short-term loans 100,000,000.00 100,000,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable 616,514,772.31 448,755,575.94
Advance payment 1,230,819,214.41 977,630,617.45
Employees’ wage payable 22,305,845.76 44,164,067.67
Tax payable 3,662,291.73 88,238,458.17
Interest payable
Dividend payable
Other account payable 15,687,969.73 19,738,024.51
Non-current liability due in 1 year
Other current liability
Total of current liability 1,988,990,093.94 1,678,526,743.74
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income 219,250.00 111,250.00
Differed income tax liability 1,017,473.05 1,017,473.05
Other non-current liabilities
Total of Non-current liabilities 1,236,723.05 1,128,723.05
Total of liability 1,990,226,816.99 1,679,655,466.79
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instrument
Capital reserves 138,953,250.09 138,953,250.09
Less：Shares in stock
Special reserves 10,511,915.73 10,511,915.73
36
杭汽轮机股份有限公司 2015 年半年度报告
Surplus reserves 602,356,402.65 602,356,402.65
Undistributed profit 2,382,157,157.92 2,390,313,324.89
Total of owners’ equity 3,887,989,126.39 3,896,145,293.36
Total of liabilities and owners’ equity 5,878,215,943.38 5,575,800,760.15
Legal Representative:Zheng Bin
Person in charge of accounting：Pu Yangshuo
Accounting Dept Leader: Zhao Jiamao
3.Consolidated Profit statement
In RMB
Item Report period Same period of the previous year
I. Income from the key business 1,054,996,326.24 1,743,362,642.27
Incl：Business income 1,054,996,326.24 1,743,362,642.27
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,079,531,378.43 1,517,296,543.27
Incl：Business cost 662,509,347.18 1,074,446,850.16
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 6,334,593.42 11,426,673.94
Sales expense 67,934,574.09 68,197,974.19
Administrative expense 315,169,862.90 298,799,463.80
Financial expenses 4,932,440.34 9,202,486.72
Asset impairment loss 22,650,560.50 55,223,094.46
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 39,231,462.05 33,668,236.76
Incl: investment gains from affiliates
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） 14,696,409.86 259,734,335.76
37
杭汽轮机股份有限公司 2015 年半年度报告
Add ：Non-operational income 6,285,206.55 12,194,329.71
Including：Income from disposal of
non-current assets 29,583.00 347,012.69
Less：Non business expenses 2,157,162.89 4,552,652.16
Incl：Loss from disposal of non-current
assets 303,677.88 120,844.93
IV.Total profit(“-”for loss) 18,824,453.52 267,376,013.31
Less：Income tax expenses 11,290,456.20 39,673,928.67
V. Net profit 7,533,997.32 227,702,084.64
Net profit attributable to the owners of
parent company -10,282,333.32 196,174,851.01
Minority shareholders’ equity 17,816,330.64 31,527,233.63
VI. Other comprehensive income -373,143.88 751,350.27
Net of profit of other comprehensive inco
me attributable to owners of the parent co -158,883.17 319,921.94
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be -158,883.17 319,921.94
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements -158,883.17 319,921.94
6.Other
7.Net of profit of other comprehensive in
come attributable to Minority -214,260.71 431,428.33
shareholders’ equity
VII. Total comprehensive income 7,160,853.44 228,453,434.91
Total comprehensive income attributable
to the owner of the parent company -10,441,216.49 196,494,772.95
Total comprehensive income
attributable minority shareholders 17,602,069.93 31,958,661.96
VIII. Earnings per share
38
杭汽轮机股份有限公司 2015 年半年度报告
（I）Basic earnings per share -0.01 0.26
(II)Diluted earnings per share -0.01 0.26
Legal Representative:Zheng Bin
Person in charge of accounting：Pu Yangshuo
Accounting Dept Leader: Zhao Jiamao
4. Profit statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 620,574,048.28 1,201,478,303.95
Incl：Business cost 425,237,391.19 781,172,768.01
Business tax and surcharge 1,398,211.91 6,040,737.39
Sales expense 45,577,385.16 42,538,296.57
Administrative expense 203,813,839.11 186,037,313.75
Financial expenses 4,831,005.55 8,086,889.06
Asset impairment loss 25,190,173.12 49,149,559.39
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 146,889,193.96 195,852,809.48
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） 61,415,236.20 324,305,549.26
Add ：Non-operational income 2,885,613.95 1,044,088.00
Including：Income from disposal of non-current assets
Less：Non business expenses 704,659.95 2,487,972.76
Incl：Loss from disposal of non-current assets
III.Total profit(“-”for loss) 63,596,190.20 322,861,664.50
Less：Income tax expenses -3,648,682.83 21,559,787.22
IV. Net profit（“-”for net loss） 67,244,873.03 301,301,877.28
V.Net of profit of other comprehensive income
39
杭汽轮机股份有限公司 2015 年半年度报告
VI. Total comprehensive income 67,244,873.03 301,301,877.28
VII. Earnings per share：
（I）Basic earnings per share 0.09 0.40
(II)Diluted earnings per share 0.09 0.40
Legal Representative:Zheng Bin
Person in charge of accounting：Pu Yangshuo
Accounting Dept Leader: Zhao Jiamao
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or rending of
services 1,221,502,011.12 1,494,144,550.03
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 2,774,168.11 230,602.76
Other cash received from business operation 11,618,304.30 2,670,915.77
Sub-total of cash inflow 1,235,894,483.53 1,497,046,068.56
Cash paid for purchasing of merchandise and services 532,710,262.96 784,127,440.61
Net increase of client trade and advance
Net increase of savings n central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
40
杭汽轮机股份有限公司 2015 年半年度报告
Cash paid to staffs or paid for staffs 354,148,818.72 323,206,406.63
Taxes paid 179,449,049.67 173,868,146.85
Other cash paid for business activities 67,764,778.89 96,057,090.75
Sub-total of cash outflow from business activities 1,134,072,910.24 1,377,259,084.84
Cash flow generated by business operation, net 101,821,573.29 119,786,983.72
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 39,231,462.05 33,668,236.76
Net cash retrieved from disposal of fixed assets,
intangible assets, and other long-term assets 147,758.20 1,142,941.52
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 718,855,999.95 1,063,000,000.00
Sub-total of cash inflow due to investment activities 758,235,220.20 1,097,811,178.28
Cash paid for construction of
fixed assets, intangible assets 33,297,388.80 51,200,201.74
and other long-term assets
Cash paid as investment 5,975,590.25
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities 754,555,999.95 1,105,001,561.00
Sub-total of cash outflow due to investment activities 793,828,979.00 1,156,201,762.74
Net cash flow generated by investment -35,593,758.80 -58,390,584.46
III.Cash flow generated by financing
Cash received as investment 11,340,000.00 729,626.40
Incl: Cash received as investment from minor
shareholders
Cash received as loans 75,400,000.00 68,100,000.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities 86,740,000.00 68,829,626.40
Cash to repay debts 75,500,000.00 154,040,000.00
Cash paid as dividend, profit, or interests 135,671,470.02 88,569,981.17
41
杭汽轮机股份有限公司 2015 年半年度报告
Incl: Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities 211,171,470.02 242,609,981.17
Net cash flow generated by financing -124,431,470.02 -173,780,354.77
IV. Influence of exchange rate alternation on cash and
cash equivalents 813,434.80 573,188.90
V.Net increase of cash and cash equivalents -57,390,220.73 -111,810,766.61
Add: balance of cash and cash equivalents at the
beginning of term 613,958,063.91 883,141,568.17
VI ..Balance of cash and cash equivalents at the end of
term 556,567,843.18 771,330,801.56
Legal Representative:Zheng Bin
Person in charge of accounting：Pu Yangshuo
Accounting Dept Leader: Zhao Jiamao
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 802,001,490.60 995,027,205.44
Tax returned 2,122,030.27
Other cash received from business operation 1,160,090.01 2,446,973.54
Sub-total of cash inflow 805,283,610.88 997,474,178.98
Cash paid for purchasing of merchandise and services 421,933,411.17 516,126,399.41
Cash paid to staffs or paid for staffs 247,730,407.99 227,071,963.41
Taxes paid 95,021,306.39 92,848,391.75
Other cash paid for business activities 16,133,251.46 52,823,344.01
Sub-total of cash outflow from business activities 780,818,377.01 888,870,098.58
42
杭汽轮机股份有限公司 2015 年半年度报告
Cash flow generated by business operation, net 24,465,233.87 108,604,080.40
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 146,889,193.96 195,852,809.48
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets 564.00
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 60,000,000.00 334,000,000.00
Sub-total of cash inflow due to investment activities 206,889,757.96 529,852,809.48
Cash paid for construction of
fixed assets, intangible assets 20,231,766.66 25,752,130.39
and other long-term assets
Cash paid as investment 5,975,590.25
Net cash received from subsidiaries and other operational
units
Other cash paid for investment activities 120,000,000.00 398,000,000.00
Sub-total of cash outflow due to investment activities 146,207,356.91 423,752,130.39
Net cash flow generated by investment 60,682,401.05 106,100,679.09
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities
43
杭汽轮机股份有限公司 2015 年半年度报告
Cash to repay debts 80,000,000.00
Cash paid as dividend, profit, or interests 76,551,039.99 6,972,000.01
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities 76,551,039.99 86,972,000.01
Net cash flow generated by financing -76,551,039.99 -86,972,000.01
IV. Influence of exchange rate alternation on cash and cash
109,733.33 399,302.95
equivalents
V.Net increase of cash and cash equivalents 8,706,328.26 128,132,062.43
Add: balance of cash and cash equivalents at the beginning
248,509,410.84 295,292,983.14
of term
VI ..Balance of cash and cash equivalents at the end of
257,215,739.10 423,425,045.57
term
Legal Representative:Zheng Bin
Person in charge of accounting：Pu Yangshuo
Accounting Dept Leader: Zhao Jiamao
44
杭汽轮机股份有限公司 2015 年半年度报告
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Items Minor
Other Total of owners’
Specialized Common risk shareholders’
Share Capital Capital reserves Comprehensive Surplus reserves Attributable profit equity
Income
reserve provision equity
I.Balance at the end of last year 754,010,400.00 139,590,345.09 -640,401.72 24,603,149.96 621,112,807.78 2,911,921,943.21 364,813,287.98 4,815,411,532.30
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current
year 754,010,400.00 139,590,345.09 -640,401.72 24,603,149.96 621,112,807.78 2,911,921,943.21 364,813,287.98 4,815,411,532.30
III.Changed in the current year -158,883.17 350,952.04 -85,683,373.32 -18,226,294.80 -103,717,599.25
（1）Total comprehensive income -158,883.17 -10,282,333.32 17,602,069.94 7,160,853.45
（II）Investment or decreasing of
19,340,000.00 19,340,000.00
capital by owners
1 ． Ordinary Shares invested by hareh
19,340,000.00 19,340,000.00
olders
2 ． Holders of other equity instrument
s invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment -75,401,040.00 -55,591,585.00 -130,992,625.00
1.Providing of surplus reserves
2.Providing of common risk
provisions
45
杭汽轮机股份有限公司 2015 年半年度报告
3．Allotment to the owners (or
-75,401,040.00 -55,591,585.00 -130,992,625.00
shareholders)
4．Other
(IV) 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. Other
(V). Special reserves 350,952.04 423,220.26 774,172.30
1. Provided this year 1,239,471.57 572,847.25 1,812,318.82
2．Used this term 888,519.53 149,626.99 1,038,146.52
（VI）Other
IV. Balance at the end of this term 754,010,400.00 139,590,345.09 -799,284.89 24,954,102.00 621,112,807.78 2,826,238,569.89 346,586,993.18 4,711,693,933.05
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company Minor
Items Total of owners’
Specialized Common risk shareholders’
Share Capital Surplus reserves Attributable profit equity
reserve provision equity
I.Balance at the end of last year 754,010,400.00 139,590,345.09 -562,143.85 17,276,201.15 583,824,678.05 2,736,802,630.30 380,677,958.00 4,611,620,068.74
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current
754,010,400.00 139,590,345.09 -562,143.85 17,276,201.15 583,824,678.05 2,736,802,630.30 380,677,958.00 4,611,620,068.74
year
III.Changed in the current year 319,921.94 251,527.38 45,372,268.92 -48,321,539.02 -2,377,820.78
46
杭汽轮机股份有限公司 2015 年半年度报告
（1）Total comprehensive income 319,921.94 196,174,851.01 31,958,661.96 228,453,434.91
（II）Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by hareh
olders
2 ． Holders of other equity instrument
s invested capital
3．Allotment to the owners (or
shareholders)
4．Other
(IV) Internal transferring of owners’
equity -150,802,080.00 -80,581,307.97 -231,383,387.97
1. Capitalizing of capital reserves (or
to capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3．Making up losses by surplus
-150,802,080.00 -80,581,307.97 -231,383,387.97
reserves.
4. Other
(VI )Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this term
(V) Special reserves 251,527.38 301,430.33 552,957.71
1. Provided this year 1,689,177.58 563,714.86 2,252,892.44
2．Used this term 1,437,650.20 262,284.53 1,699,934.73
（VI）Other -502.09 -323.34 -825.43
IV. Balance at the end of this term 754,010,400.00 139,590,345.09 -242,221.91 17,527,728.53 583,824,678.05 2,782,174,899.22 332,356,418.98 4,609,242,247.96
Legal Representative:Zheng Bin
Person in charge of accounting：Pu Yangshuo
47
杭汽轮机股份有限公司 2015 年半年度报告
Accounting Dept Leader: Zhao Jiamao
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other
Items Less: Shares Specialized
Share Capital Capital reserves Comprehensive Surplus reserves Attributable profit Total of owners’ equity
in stock reserve
Income
I.Balance at the end of last year 754,010,400.00 138,953,250.09 10,511,915.73 602,356,402.65 2,390,313,324.89 3,896,145,293.36
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current year 754,010,400.00 138,953,250.09 10,511,915.73 602,356,402.65 2,390,313,324.89 3,896,145,293.36
III.Changed in the current year -8,156,166.97 -8,156,166.97
（I）Total comprehensive income 67,244,873.03 67,244,873.03
(II) Investment or decreasing of capital by owners
1．Ordinary Shares invested by hareholders
2．Holders of other equity instruments invested capital
3.Amount of shares paid and accounted as owners’
equity
4．Other
（III）Profit allotment -75,401,040.00 -75,401,040.00
1.Providing of surplus reserves
2．Allotment to the owners (or shareholders) -75,401,040.00 -75,401,040.00
3．Other
(IV)Internal transferring of owners’ equity
1. Capitalizing of capital reserves (or to capital
shares)
48
杭汽轮机股份有限公司 2015 年半年度报告
2. Capitalizing of surplus reserves (or to capital shares)
3．Making up losses by surplus reserves.
4. Other
(V) Special reserves
1. Provided this year 618,887.05 618,887.05
2．Used this term 618,887.05 618,887.05
（VI）Other
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 10,511,915.73 602,356,402.65 2,382,157,157.92 3,887,989,126.39
Amount in last year
In RMB
Amount in last year
Other
Items Less: Shares in Specialized
Share Capital Capital reserves Comprehensive Surplus reserves Attributable profit Total of owners’ equity
stock reserve
Income
I.Balance at the end of last year 754,010,400.00 138,953,250.09 7,295,765.20 565,068,272.92 2,205,522,237.31 3,670,849,925.52
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current year 754,010,400.00 138,953,250.09 7,295,765.20 565,068,272.92 2,205,522,237.31 3,670,849,925.52
III.Changed in the current year 150,499,797.28 150,499,797.28
（I）Total comprehensive income 301,301,877.28 301,301,877.28
(II) Investment or decreasing of capital by owners
1．Ordinary Shares invested by hareholders
2．Holders of other equity instruments invested capital
3.Amount of shares paid and accounted as owners’
equity
4．Other
（III）Profit allotment -150,802,080.00 -150,802,080.00
1.Providing of surplus reserves
2．Allotment to the owners (or shareholders) -150,802,080.00 -150,802,080.00
49
杭汽轮机股份有限公司 2015 年半年度报告
3．Other
(IV)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. Other
(V) Special reserves
1. Provided this year 1,078,331.01 1,078,331.01
2．Used this term 1,078,331.01 1,078,331.01
（VI）Other
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 7,295,765.20 565,068,272.92 2,356,022,034.59 3,821,349,722.80
Legal Representative:Zheng Bin
Person in charge of accounting：Pu Yangshuo
Accounting Dept Leader: Zhao Jiamao
50
杭汽轮机股份有限公司 2015 年半年度报告
(1) Basis of compiling
The Company adopts perpetual operation as the basis of financial statements.
(II) Assessment on perpetuation
No issue or situation, in 12 months since the end of report period, composes major doubt on the perpetuation
assumption of the Company.
V. Principal Accounting Policies and Estimations
Important prompt: The Company utilized detailed accounting polices and estimations on providing of bad debt
provisions, fixed asset depreciation, intangible asset amortization, recognition of revenue, and so forth, according
to its business practices.
(I) 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.
(II) Fiscal year
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
(III) Operational period
The Company’s relatively shorter operational period, which is 12 months, and is used as division of liquidity of
assets and liabilities.
(IV) Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
(V) Accounting treatment of the entities under common control and different control
1. Treatment 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. Treatment of entities 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.
(VI) Method for preparing the consolidated financial statements
The parent company puts all of its subsidiaries under its control into the consolidated financial statements. The
consolidated financial statements are prepared according to the “Enterprise Accounting Standard No. 33 –
Consolidated Financial Statements”, basing on the accounts of the parent company and the subsidiaries, and after
adjusting the long-term investment equity in the subsidiary on equity basis.
(VII) Recognition 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.
(VIII) Foreign currency trade and translation of foreign currencies
1. Translation of foreign currency
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
51
杭汽轮机股份有限公司 2015 年半年度报告
day when the fair value is recognized, where the differences are accounted as gain/loss from change of fair value.
2. Translation of foreign currency financial statements
Asset and liability items in the balance sheet are translated basing on the exchange rate of the balance sheet date;
Owners’ equities other than Retained Profit are translated at the exchange rate of the date when the trade
happened. Income and expense items in the income statement are translated at the similar rate of the date when the
trade happened. Differences generated by the above translating of foreign currencies are demonstrated separately
under the owners’ equity in the balance sheet.
(IX) Financial instruments
1. Type of finance asset and finance debt
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.
2. 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 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 sponsorship 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
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杭汽轮机股份有限公司 2015 年半年度报告
of fair value which are originally accounted into capital reserves.
As soon as the contract rights of acquiring the cash flow of particular financial asset have been terminated or
almost all of the risks and rewards attached to the financial asset have been transferred, recognition of the
financial asset is terminated; as soon as the current liabilities attached to the financial liability have been
completely or partially relieved, recognition of the financial liability or part of is terminated.
3. Basis of recognition and accounting of financial asset transferring
The Company stop recognizing the finance asset which risks and remuneration of ownership are transferred to the
receiver; and continue to recognize the transferred finance asset which risks and remuneration of ownership are
kept, and recognize the value as one finance debt. For the finance assets which risks and remuneration of
ownership are not transferred or kept, the Company recognize them as following: (1) stop recognizing the finance
asset which are given up the control; (2) continue to recognize the finance asset and related finance debt according
to the extend which involved into the transferred finance asset for the finance asset which are not given up control.
The Company measured the surplus between the following two values for the transferred finance assets which
fulfill the stop recognition requirements into current gain or loss: (1) Account value of the transferred finance
asset; (2) Consideration plus the accumulated fair value changes which were accounted directed into ownership
rights. For the transferred finance assets which partly fulfill the stop recognition requirements the Company
amortized the stopped recognition part and the not-stopped recognition part of the account value of the whole
transferred finance asset, and account the surplus between the following two values into current gain or loss: (1)
Account value of the stopped recognition part; (2) consideration plus the corresponding stopped recognition part
of the accumulated fair value changes which were accounted directed into ownership rights.
4. 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.
5. Impairment test and impairment reserves plan
(1) 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. Impairment provision
is provided as long as evidence showing that impairment has happened to the financial asset.
(2) 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.
(3) 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.
When impairment occurred with a sellable financial asset, the accumulated losses caused by decreasing of fair
value which have originally been written into owners’ equity shall be carried over to current gain/loss account. If
practical evidence showing that the value of a particular financial asset has recovered in value after a impairment
loss has been recognized and practically related to the issues occurred after recognition of the loss, the impairment
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杭汽轮机股份有限公司 2015 年半年度报告
loss recognized shall be restored and accounted into current gain/loss. Impairment loss of sellable equity inves
tment instrument will be restored to owners’ equity when the fair value has increased afterward.
(X) Receivable accounts
1. Recognition and providing of bad debt provision on individual receivable account with large amount
Basis of recognition or standard amount
Accounts take over 10% of the book balance of receivable accounts
of individual account with large amount
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.
2. Recognition and providing basis of bad debt reserves for group of receivable accounts with similar
characteristics of credit risks
Name of the porfolio Basis of bad debt provision
Group by age analysis Age analysis method
Bad debt profisions are provided on age analyze basis in the protfolio
Rate of provision on receivable Rate of provision on other receivable
Age
account account
Within 1 year)included) 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
Over 3 years
3－4 years 60.00% 60.00%
4－5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
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 cash flow of
Basis of providing bad debt individually
the receivable account and the current value of future cash flow of the group
Impairment test performed individually, bad debt provision will be provided at the
Basis of bad debt provision
difference of expected cash flow lower than the book value.
（XI）Inventories
(1) Inventory classification
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and goods
in manufacturing procedure or working procedure.
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杭汽轮机股份有限公司 2015 年半年度报告
(2) Pricing of inventory to be delivered
Pricing basis:
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
(5) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: one-off
Packaging materials
Basis of amortizing: one-off
(XII) Long-term equity investment
1. Recognition of common control and substantial influence
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 substantial influence.
2. 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.
Recognition of “one-off” trade when long-term equity investment is composed by merger of entities under
common control by multiple steps.
Transactions under an “one-off” trade are accounted as a common trade of ownership.
Transactions which are not “one-off” trades are recognized for their initial investment cost basing on the share of
book value of net asset in the consolidated financial statement of the entities acquired. Balance between the initial
investment cost and the book value of the long-term equity investment before merger and the premium paid for
the new shares after merger, is adjusted to capital reserves; when the capital reserve is not enough to offset,
retained profit shall be adjusted thereof.
(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.
Long-term equity investment formed by acquisition of entities under different control by trade in multiple stages
are accounted separately in the financial statements and consolidated financial statements.
1) In individual financial account, the sum of book value of original equity investment plus new investment cost is
recognized as the initial investment cost on cost basis.
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杭汽轮机股份有限公司 2015 年半年度报告
2) Recognition of “one-off” trade in consolidated financial statements
Transactions under an “one-off” trade are accounted as a common trade of ownership. Transactions which are not
“one-off” trades are re-measured for their fair value at the day of acquisition. Balance between the fair value and
the book value of the long-term equity investment is adjusted to current investment gains; other gains from equity
on equity basis before the acquisition day are written over to current gains of at the day of acquisition, but not the
gains from re-calculating of changes in net liability or asset by the invested entity.
(3) Formed by means other than entity merger:
Acquired by cash payment – initial investment cost is the actual amount of payment;
Acquired by issuing of equity certificates – initial investment cost is the fair value of equity certificate issued;
Acquired by debtor restructuring – initial cost recognized as according to the Enterprise Accounting Standard
No.12 – Debtor restructuring;
Acquired by trading of non-monetary asset - initial cost recognized as according to the Enterprise Accounting
Standard No.12 – Trade of non-monetary assets;
3. Subsequent measurement and recognition of gain/loss
Cost basis is adopted in accounting of long-term equity investment in entities under substantial control of the
Company; while equity basis is adopted in accounting of investment in affiliates and joint-ventures.
4. Treatment of disposal of subsidiaries by stages till losing of control power
(1) Individual account
At disposal of equity shares, the balance between book value and actual consideration received is recorded to
current gain/loss account.
When the retained share equity is composing major influence or joint control with other parties on the invested
entity, accounting will be on equity basis;
When none of substantial control, joint control, or major influence on the entity, it will be recognized as sellable
financial asset and accounted on fair value.
(2) Basis of Consolidated Financial Statements
1) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and not recognized
as “one-off” trade:
Before losing of control power, the balance of disposal consideration and the share of net asset attributable to the
Company on continuous basis since purchasing or merger, is adjusted to capital reserves (capital premium),
whereas if the capital premium is not enough to offset the amount, retained profit will be offset at corresponding
amount.
At losing of control power over a former subsidiary, the retained equity shares shall be re-calculated according to
the fair value at the day of losing power. Sum of the consideration obtained from disposal and fair value of the
retained equity shares, less the share of net asset attributable to the Company on continuous basis since purchasing
or merger, is accounted into investment gains of the period when the control power is disposed, and goodwill shall
be offset meanwhile. Other gains related to the equities in formal subsidiary shall be written over to current
investment gains at the period when control power was disposed.
2) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and recognized as
“one-off” trade:
The multiple trades are treated as one trade that causes losing of control power on a subsidiary. However, the
balance between the consideration received from each trade and corresponding share of net asset is recognized as
other gains in the consolidated accounts, and transferred collectively to gain/loss account of the period in which
the control power was lost.
(XIII) Fixed assets
1. Conditions for fixed asset recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life. Fixed assets are
recognized at satisfying of great possibility of benefit inflow and costs are accountable.
2. Depreciation of fixed assets
Depreciation age Annual depreciation
Categories Basis of depreciation Retain value rate
(year) ratio
Straight average on
Houses & buildings 20-30 4.00% 4.8-3.2
period
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杭汽轮机股份有限公司 2015 年半年度报告
Equipment & Straight average on
8-15 4.00% 12-6.4
machinery period
Transportation Straight average on
4-8 4.00% 24-12
equipment period
Straight average on
Office equipment 5 4.00% 19.2
period
(3) Basis for recognizing the fixed assets under financing lease, Pricing and Depreciation Methods Inapplicable
(XIV) Construction in process
1. 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. 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.
Notes ：Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
(XV) Loan expenses
1. Capitalizing of loan expenses
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. Capitalization period of loan expenses
(1) Capitalization started as soon as all of these conditions are satisfied: 1) Capital expenditures have occurred; 2)
Loan expenses have occurred; 3) Necessary purchasing or construction processes have been started to make the
asset usable or sellable.
(2) If irregular interruption occurred in the purchasing or construction process of the assets satisfying the
capitalizing conditions, and suspended for over successive three months, capitalizing of loan expenses is
suspended; loan expenses occurred during the suspension period are recognized as current expenses until the
purchasing or construction process resumes.
(3) Capitalizing of loan expenses is terminated as soon as the asset satisfying the capitalizing conditions reaches
the state of usable or sellable as expected.
3. Rates and amounts of loan expense capitalization
Special loans raised for purchasing or construction of assets satisfying the conditions of capitalization, interest to
be capitalized will be the actual interest expenses occurred in the current period of loan (including the discount,
premium, or amortizing decided on actual interest rate basis), less the interest income from the unused loans in
bank account or provisional investment gains; common loans used for purchasing or construction of assets
satisfying the conditions of capitalization, the interest to be capitalized will be the weighted average of balance
over special loans multiply capitalization rate of common loans.
(XVI) Intangible assets
（1）Pricing Method, service life and impairment test
1. Intangible assets are land using rights, patents, and non-patent technologies, which are measured at cost basis.
2. For intangible assets with limited useful life, during the use life it is amortized according to the anticipating
implementation method of the economic benefit of the intangible asset systematically and reasonably. If can’t
recognize the anticipating implementation method, the straight basis is deployed.
Items Amortiing years
Land using right 50
Other 5
(2) Accounting policy for internal research and development expenditure
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
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杭汽轮机股份有限公司 2015 年半年度报告
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.
(XVII) Impairment of partial long-term assets
For those long-term assets such as equity investment, fixed assets measured on cost basis, construction-in-process,
intangible assets with limited service life, their recoverable amount shall be evaluated as soon as there was
evidence indicating impairment at the balance sheet day. For intangible assets such as goodwill from merger or
intangible assets with uncertain service lives, impairment test is performed each year whatever there is evidence
of impairment or not. Impairment test on goodwill is performed on combination of related assets.
When the result of prediction shows that the recoverable amount is lower than its book value, the balance shall be
provided impairment provision and accounted into current gain/loss.
(XVIII) Long-term amortizable expenses
Long-term amortizable expenses which have been paid but with amortizing period over 1 year (not included).
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.
(XIX) Employees’ wage
1. Employees’ wage composes of short-term wages, after-job welfare, dismiss welfare, and other long-term
welfares.
2. Accounting of short-term wages
In the fiscal period when an employee is providing services, short-term wages actually occurred is recognized as
liability, and recorded into current gain/loss account or cost of related asset.
3. Accounting of after-job welfare
After-job welfare composes of stipulated saving plan and stipulated beneficiary plan.
(1) In the fiscal period when an employee is providing service, the payable amount calculated by the stipulated
saving plan is recognized as liability and recorded into current gain/loss or cost of related asset.
(2) Accounting of stipulated beneficiary plan is on following steps:
1) On basis of expected accumulation of welfare, estimations on population variables and financial variables,
calculating of liabilities from stipulated beneficiary plan, and recognition of the period of related liabilities, are
performed on basis of non-bias and accordance actuary. Meanwhile, discount is performed on the liabilities from
stipulated beneficiary plan to recognize the current value and service cost of the liabilities from the stipulated
beneficiary plan.
2) When there is asset involved in the stipulated beneficiary asset, the deficit or premium from the balance of the
current value of liabilities of stipulated beneficiary plan over their fair values is recognized as its net liability or
net asset. When there is a premium with a stipulated beneficiary plan, the lower one between the premium and the
upper limit of the asset is recognized as the net asset of such stipulated beneficiary asset;
3) At end of period, employees’ wages from stipulated beneficiary plan are recognized by three parts including
service cost, net interest of net liability or net asset, and recalculated net asset or liability variation. The first two
are recorded into current gain/loss or related asset cost, the third is recorded to other gains, which will not be
written back to gain/loss in successive fiscal periods, but the amount can be transferred with the range of equity.
4. Accounting of dismissing welfare
Welfares for employees who are dismissed, the earlier one of the following is recognized as employee wage
liability, and recorded to current gain /loss:
(1) When the Company cannot, on its own call only, retrieve the dismissing welfare provided by dismissing of
service plan or suggestion;
(2) When the costs or expenses related to restructuring involved in the dismissing welfare are recognized by the
Company.
5. Accounting of other long-term employees’ welfares
As of long-term welfares provided to the employees, those which satisfy conditions of the stipulated saving plan
are treated according to related regulations of stipulated saving plan; those which other than the aforesaid, are
treated according to the stipulated beneficiary plan. In viewing of simplifying accounting treatment, employee
wage costs are recognized as service costs, the net amounts of interests of other long-term welfare net liability or
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杭汽轮机股份有限公司 2015 年半年度报告
asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related asset.
(XX) Revenue
1. Recognizing of revenue
(1) Sales of goods
Sales income is recognized when all of these conditions are satisfied: (1) Major risks and rewards attached to the
goods have been transferred to the purchaser; (2) The Company holds neither successive management power
which is normally attached to ownership, nor effective control, over the goods which have been sold out; (4)
Amount of income may be reliably measured; (5) when the costs, occurred or will occur, may be measured
reliably.
(2) Providing of services
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.
(3) Giving of asset using rights
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.
(4) Construction contracts
1) When the result of the construction contract is able to be evaluated reliably at the balance sheet date, the
income and cost of the contract are recognized on completion percentage basis. If the result of the construction
contract is not able to be evaluated reliably, but the contract cost may be recovered, the income is recognized at
the cost actually recovered, and the cost of the contract is recognized as contract expenses of the current period
when it is occurred.
2) When all of the following conditions were satisfied, the result of a fix-amount contract is regarded as can be
evaluated reliably: the total income of the contract may be measured reliably, there is great possibility that the
financial benefit in relation with the contract will inflow, the actual contract costs may be identified and measured
clearly and reliably, the construction progress and the cost to occur are able to be measured reliably. When all of
the following conditions are satisfied, the result of a cost-plus-commission contract is regarded as can be
evaluated reliably: there is great possibility that the financial benefit in relation with the contract will inflow, the
actual costs may be identified and measured clearly and reliably.
3) Contract progress is recognized at the ratio of accumulative actual cost on the predicted complete cost.
4) In case the expected total cost is greater than the total income, the expected loss will be recognized as expense
of the current period. If the construction is in process, the balance is accounted as inventory impairment provision;
if the contract is not executed, the balance is accounted as expected liability.
2. Practical basis for recognition of revenue
Particular methods for recognition of revenue. The Company is mainly engaged in designing, manufacturing,
sales, and service of steam turbines and gas turbines falling in the range of rotating and reciprocating machinery,
and parts. Recognition of sales in the country shall satisfy: products had been delivered to the buyer and the
amount had been fixed. Payment was received or documents received with great possibility of cash inflow. And
the cost of the products is able to be measured appropriately. Recognition of sales outside the country shall satisfy:
The goods had been filed by the custom and departed with bill of lading obtained. The amount had been fixed, and
payment was received or documents received with great possibility of cash inflow. And the cost of the products is
able to be measured appropriately.
(XXI) Government subsidy
1. Recognition basis and accounting of asset-related government subsidy
Government subsidies to the Company for purchasing or acquiring by other means of long-term asset are
asset-related government subsidies. They are recognized as deferred income and amortized straightly to their
service lives and accounted in current gain/loss. Whereas government subsidy measured by nominal amount are
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杭汽轮机股份有限公司 2015 年半年度报告
recorded to current gain/loss account.
2. Recognition basis and accounting of income-related government subsidy
Government subsidies other than asset-related subsidies are recognized as income-related government subsidies.
Those, which are used to cover costs or losses in subsequent periods, are recognized as deferred income and
accounted to current gain/loss to the periods of related expenses. Those, which are used to makeup expenses or
losses already occurred, are recorded to current gain/loss account.
(XXII) Deferred income tax assets/ deferred income tax liabilities
1. 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. Deferred income tax assets are recognized limitedly by the income tax which very possibly deduct deductible
temporary difference. At balance sheet day, the not-yet recognized deferred income tax assets in previous fiscal
term are recognized if have evidence to prove there is enough income tax very possibly to deduct deductible
temporary difference.
3. At the balance sheet day, verification will be performed on the book value of differed income tax assets. If it is
not possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the book
value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible,
the reduced amount shall be restored.
4. Current income tax and differed income tax are accounted into current gain/loss account as income tax
expenditures or gains, but exclude the following income taxes: (1) Merger of enterprises; (2) Transactions or
events recognized directly in owners’ equity.
(XXIII) Lease
Accounting of operational lease
When the Company is the leasee, the amount is recorded to asset cost or recognized as gain/loss of current period
on straight basis to the periods of lease. Initial direct expenses are accounted into current gain/loss. Contingent
rentals are recorded to current gain/loss at actual occurrence.
When the Company is the leaser, the amount is recorded to current gain/loss at straight basis to the periods of
lease. Initial direct expenses are recorded to current gain/loss other than those with greater amount which are
capitalized and recorded to gain/loss of different periods. Contingent rentals are recorded to current gain/loss at
actual occurrence.
(XXIV). Change of main accounting policies and estimations
（1）Change of main accounting policie
Remar
Content and Reason Vetting process Suitable Time
k
In order to adapt to the change of market environment, better prevent and The above changes
control accounts receivable risks and make Company’s receivable accounts have been
accord with relevant risks situation and the proportion of actual loss. The examined and
Company decided to change the accounting evaluation of provision for bad adopted at the 19th March 26,2015
debts set up on accounts receivable, reduce and raise the percentage it in 3 meeting of the 6th
years and over 3 years respectively and make devaluation provision for full term of Board
accounts receivable in line with cautious and objective principle. 2015.
(XXV).Other
Expenses for workplace safety
According to document CQ〔2012〕No.16 issued by National Department of Finance and National Safety
Inspection Bureau General, the Company was categorized as machinery production enterprise. Providing of
workplace safety funds are to be provided on monthly basis according to the following schedule: 2% provided on
the turnover less than RMB10 million; 1% on the amount over RMB10 million and less than RMB100 million;
0.2% on the amount over RMB100 million and less than RMB1 billion; 0.1% on the amount over RMB1 billion
and less than RMB5 billion; 0.05% on the amount over RMB5 billion.
The above safety expenses are drawn according to national regulations and accounted to costs of related products
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杭汽轮机股份有限公司 2015 年半年度报告
and recorded to “special reserves” at the same tine. At providing of safety expenses, expense-related costs are
deducted from the special reserves. When a safety fund was drawn and composes part of a fixed asset, they are
collected under construction-in-process, and recognized to fixed asset when the asset reaches usable status.
Meanwhile, the special reserve is deducted by the costs which compose part of the fixed asset, and accumulative
depreciation is recognized at the same amount. This fixed asset is not subject to depreciation in successive
periods.
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
Sales of goods or providing of taxable
VAT 17%
labor service
Consumption tax
Operational tax Taxable turnover 5%
City maintenance and construction tax Turnover tax payable 7%
Enterprise income tax Amount of income taxable 15%、25%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company 15%
Hangzhou Zhongneng Steam Turbine Power Co., Ltd. 15%
Zhejiang Steam Turbine Packaged Technology Development Co.,
15%
Ltd.
Hangzhou Steam Turbine Casting Co., Ltd. 15%
Zhejiang Huayuan Steam Turbine Machinery Co.,Ltd. 15%
Hangzhou Guoneng Steam Turbine Engineering Co.,Ltd. 15%
Other Subsidiary（Domestic） 25%
(II) Preferential tax
1. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2015〕No.29) issued
by Department of Science and Technology High-tech Development Center, the Company along with Hangzhou
Zhongneng Steam Turbine Power Co., Ltd. and Zhejiang Packaged Technologies Development Co., Ltd. –
subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they enjoy
15% of tax for 2014-2016.
2. According to the document ZKFGD〔2013〕No.294 titled “Notice for Recognition of 491 High-tech
Enterprises” 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
recognized as a High-Tech Enterprise, therefore enjoys 15% of income tax rate from 2013 to 2015.
3. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2015〕No.36) issued
by Department of Science and Technology High-tech Development Center, Zhejiang Huayuan Steam Turbine
Machinery Co., Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co., Ltd. – subsidies of the Company,
were renewed or their qualifications as high-tech enterprises. Therefore they enjoy 15% of tax for 2014-2016.
3. Other
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd. registered in Indonesia overseas subsidiaries, the
applicable local relevant tax laws and regulations.
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杭汽轮机股份有限公司 2015 年半年度报告
VII. Notes to the Consolidated Financial Statements
1. Monetary capital
In RMB
Items End of term Beginning of term
Cash in stock 330,003.92 307,654.85
Bank deposit 546,521,114.46 562,455,906.65
Other monetary fund 9,716,724.80 51,194,502.41
Total 556,567,843.18 613,958,063.91
Incl:Total of accounts saved overseas 7,498,892.65 9,198,137.90
(2) Other statements
Other monetary fund composes of RMB9，516，724.8 of security for bank acceptance notes and RMB200，000.00
of security for bank guarantee letter. Both under limitation of using.
2. Bills receivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
Bank acceptance 680,403,170.35 689,241,938.01
Commercial acceptance 130,000.00 11,868,000.00
Total 680,533,170.35 701,109,938.01
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount on pledge
Bank acceptance 86,660,069.47
Commercial acceptance
Total 86,660,069.47
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet
date at the period-end
In RMB
Amount of recognition termination Amount of not terminated
Items
at the period-end recognition at the preriod -end
Bank acceptance 404,692,563.77
Commercial acceptance
Total 404,692,563.77
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杭汽轮机股份有限公司 2015 年半年度报告
4. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
provision
Categoty Withdra Book Withdraw Book
Proporti wal value Amou Proporti al value
Amount Amount Amount
on proporti nt on proportio
on n
Receivables with
major individual
amount and bad debt
provision provided
individually
receivables with
major individual
amount and bad debt
provision provided
individually
Account receivable 2,969,4
with minor individual 2,754,22 599,147, 2,155,076 580,487,9 2,388,919,6
amount but bad debt 98.93% 21.75% 07,602. 99.01% 19.55%
4,453.66 788.75 ,664.91 60.59 41.98
provision is provided 57
Receivables with
major individual
amount and bad debt
provision provided
individually 29,819,6 29,819,6 29,819, 29,819,60
1.07% 100.00% 0.99% 100.00%
receivables with not 07.69 07.69 607.69 7.69
major individual
amount and bad debt
provision provided
individually
2,999,2
2,784,04 628,967, 2,155,076 610,307,5 2,388,919,6
Total 100.00% 22.59% 27,210. 100.00% 20.35%
4,061.35 396.44 ,664.91 68.28 41.98
26
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
In RMB
End of term
Age
Book balance Bad debt provision Providing rate%
Subitem within 1 year
Within 1 year 1,073,018,085.92 53,650,904.32 5.00%
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杭汽轮机股份有限公司 2015 年半年度报告
Subtotal within 1 year 1,073,018,085.92 53,650,904.32 5.00%
1-2 years 785,763,881.43 78,576,388.16 10.00%
2-3 years 419,854,720.90 125,956,416.29 30.00%
Over 3 years 475,587,765.41 340,964,079.98
3-4 years 299,324,161.24 179,594,496.75 60.00%
4-5 years 74,470,104.72 59,576,083.78 80.00%
Over 5 years 101,793,499.45 101,793,499.45 100.00%
Total 2,754,224,453.66 599,147,788.75
(2) Receivable accounts written back or retrieved in the report period
Bad dept provision of RMB23,258,342.99 provided current period with no written back or retrieving of bad debt.
(3) Receivable accounts actually written off in the report period
In RMB
Items Amount
Zhejiang Jiahua Energy Chemical Co., Ltd. 1,920,000.00
Oriental Electrical Group .Beijing Company 1,599,316.10
Other 1,078,382.00
Of which the significant actual write-off accounts receivable:
In RMB
Whether
occurred
from the
Name of the units Nature Amount Reason Process
related
transactio
ns
The examined and adopted to
Zhejiang Jiahua Energy Chemical Co., Difficult to
Goods 1,920,000.00 General manager of the office No
Ltd. recover
meeting
The examined and adopted to
Oriental Electrical Group .Beijing Difficult to
Goods 1,599,316.10 General manager of the office No
Company recover
meeting
The examined and adopted to
Difficult to
Other Goods 1,078,382.00 General manager of the office No
recover
meeting
Total -- 4,597,698.10 -- -- --
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Total accounts receivable due from the top five debtors of the Group in the current period is RMB
1,350,142,518.35, accounting for 49.02% of the total accounts receivable as at the end of the current period and
the total provision for bad and doubtful debts made as at the end of the current period is RMB 254，211，430.02.
4. Prepayment
(1) Age analysis
64
杭汽轮机股份有限公司 2015 年半年度报告
In RMB
End of term Beginning of term
Age
Amount Proportion% Amount Proportion%
Within 1 year 158,806,017.77 82.53% 145,672,687.02 84.68%
1-2 years 17,286,433.54 8.98% 23,007,830.11 13.37%
2-3 years 4,683,313.01 2.43% 2,055,629.60 1.20%
Over 3 years 11,639,501.50 6.05% 1,286,621.66 0.75%
Total 192,415,265.82 -- 172,022,768.39 --
(2) Advance payment to the top five payees of the ending balance collected based on the payees of the advance
payment
The total amount of advance payment to the top five payees of the ending balance collected based on the payees
of the advance payment was RMB41，284，344.85, taking 21.46% of the toal ending balance of the advance
payment.
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杭汽轮机股份有限公司 2015 年半年度报告
5. Other account receivable
(1) Detailed categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Proporti Book value Proporti Book value
Amount Amount Proportion Amount Amount Proportion
on on
Other receivables with major individual amount and had
debt provision provided individually
Other receivables provided bad debt provision in cridit
risk groups 31,141,322.19 89.35% 4,285,420.74 13.76% 26,855,901.45 30,275,426.55 89.08% 4,893,203.23 16.16% 25,382,223.32
Other account receivable with minor individual amount
but bad debt provision is provided 3,710,320.94 10.65% 3,710,320.94 100.00% 3,710,320.94 10.92% 3,710,320.94 100.00%
Total 34,851,643.13 100.00% 7,995,741.68 25.32% 26,855,901.45 33,985,747.49 100.00% 8,603,524.17 25.32% 25,382,223.32
Other receivables with individually significant amount and provision for bad and doubtful debts individually provided at the end of the reporting period.
Not applicable
2) Other receivable accounts in the group on which bad debt provisions are provided on age basis
In RMB
End of term
Age
Other receivable account Bad debt provision Providing rate %
Subitem within 1 year
Within 1 year 19,455,067.16 972,753.35 5.00%
Subtotal within 1 year 19,455,067.16 972,753.35 5.00%
1-2 years 7,195,863.80 719,586.38 10.00%
2-3 years 1,601,341.90 480,402.57 30.00%
Over 3 years 2,889,049.33 2,112,678.44
3-4 years 1,886,458.73 1,131,875.24 60.00%
4-5 years 108,937.00 87,149.60 80.00%
Over 5 years 893,653.60 893,653.60 100.00%
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杭汽轮机股份有限公司 2015 年半年度报告
Total 31,141,322.19 4,285,420.74
Other receivables with provision for bad and doubtful debts based on the balance percentage method in the portfolio
Not applicable
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio
Not applicable
(2) Bad debt provision accrual, received or reversed in current period
Bad debt provision of RMB-607,782.49 was provided this period without recovering or writing back of provisions.
(3) Combination of other receivable accounts
In RMB
Account property End of term Beginning of term
Deposit 16,394,327.53 23,526,521.57
Provisional payment receivalbe 5,224,904.77 4,720,051.08
Petty cash 7,695,144.07 920,428.38
Other 5,537,266.76 4,818,746.46
Total 34,851,643.13 33,985,747.49
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
In RMB
Account Percentage in total other
Name of the company Book balance Age Bad debt provision
property receivable %
Deposit in
Shanghai Customs Waigaoqiao Office 3,710,320.94 Over 3 years 10.65% 3,710,320.94
custom
Guodian Trust Bidding Co., Ltd. Bidding deposit 3,188,750.00 0-4 years 9.15% 520,597.50
Investment from indonesia
Investment 3,059,500.00 1-2 years 8.78% 305,950.00
companyreceivable
Inner Mongolia Bidding Co., Ltd. Bidding deposit 550,000.00 Over 3 years 1.58% 330,000.00
Guodian Longyuan Power Technology
Bidding deposit 500,000.00 1-2 years 1.43% 50,000.00
Engineering Co., Ltd.
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杭汽轮机股份有限公司 2015 年半年度报告
Jian Group Co., Ltd. Bidding deposit 500,000.00 Within 1 year 1.43% 25,000.00
Total -- 11,508,570.94 -- 33.02% 4,941,868.44
6. Inventories
（1）Details
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 425,070,428.08 425,070,428.08 461,117,423.30 461,117,423.30
Product in process 614,444,364.92 614,444,364.92 539,174,718.21 539,174,718.21
Products in stock 1,017,342,060.27 158,244.58 1,017,183,815.69 593,940,331.76 158,244.58 593,782,087.18
Turnover materials
Consumable biological assets
Unsettled assets formed from the construction
contact
Total 2,056,856,853.27 158,244.58 2,056,698,608.69 1,594,232,473.27 158,244.58 1,594,074,228.69
（2）Inventory depreciation provision
In RMB
Increased this period Decreased this period
Items Beginning of term End of term
Provided Other Written back or off Other
Raw materials
Product in process
Products in stock 158,244.58 158,244.58
Turnover materials
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杭汽轮机股份有限公司 2015 年半年度报告
Consumable biological assets
Unsettled assets formed from the
construction contact
Total 158,244.58 158,244.58
7. Other current asset
In RMB
Items End of term Beginning of term
Bank financing products 414,000,000.00 378,800,000.00
Input tax deductible 18,903,394.85 2,385,481.70
Prepaid income tax 884,753.86
Total 432,903,394.85 382,070,235.56
8. Sellable financial asset
（1）Details
In RMB
End of term Beginning of term
Items
Book balance Impairment provision Book value Book balance Impairment provision Book value
Available-for –sale Liabilities
instruments
Available-for –sale equity instruments 504,966,453.19 504,966,453.19 498,990,862.94 498,990,862.94
Measured by fair value
Measured by cost 504,966,453.19 504,966,453.19 498,990,862.94 498,990,862.94
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杭汽轮机股份有限公司 2015 年半年度报告
Total 504,966,453.19 504,966,453.19 498,990,862.94 498,990,862.94
Amount of impairment
(2) Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholding
proportion Cash bonus of the
Investee Period-B Period
Period-begin Increase Decrease Period-end Increase Decrease among the reporting period
egin -end
investees
Bank of Hangzhou Co.,Ltd. 390,954,040.00 390,954,040.00 6.92% 27,742,368.00
Greenesol Co.(India) 5,534,773.22 5,534,773.22 37.00%
Hangzhou Changdi Equity
Investment
27,522,049.72 5,975,590.25 33,497,639.97 2.97%
Partnership(Limited
liability)
Hangzhou Steam Turbine
30,000,000.00 30,000,000.00 15.00%
Engineering Co., Ltd.
Zhejiang Sanxin Automatic
600,000.00 600,000.00 6.00%
Engineering Co., Ltd.
Zhejiang Zhongkong Solar
15,000,000.00 15,000,000.00 5.27%
Energy Technology Co., Ltd.
Zhejiang Tianhang Steam
Turbine Auxiliary 10,000,000.00 10,000,000.00 33.33% 1,000,000.00
Machinery Co., Ltd.
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杭汽轮机股份有限公司 2015 年半年度报告
Wuxi Xinchang Steel Tube
19,380,000.00 19,380,000.00 18.00%
Co., Ltd.
Total 498,990,862.94 5,975,590.25 504,966,453.19 -- 28,742,368.00
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杭汽轮机股份有限公司 2015 年半年度报告
9. Fixed assets
（1）Details
In RMB
Transportation
Items Houses & buildings Machinery equipment Other Total
equipment
1. Original book value
1.Beginning of term 426,487,329.57 931,262,735.06 33,152,494.69 96,116,812.56 1,487,019,371.88
2.Increased currentperiod 80,000.00 7,201,360.99 61,965.81 1,903,148.11 9,246,474.91
（1）Purchase 4,677,422.22 61,965.81 1,494,536.33 6,233,924.36
（2）Transferredinfrom
80,000.00 2,523,938.77 408,611.78 3,012,550.55
construction in process
（3）Increase ofenterprise
consolidation
3.Decreased currentperiod 1,799,267.00 38,000.00 162,205.00 1,999,472.00
（1）Disposal 1,799,267.00 38,000.00 5,180.00 1,842,447.00
（2）Other 157,025.00 157,025.00
4.End of term 426,567,329.57 936,664,829.05 33,176,460.50 97,857,755.67 1,494,266,374.79
II. Accumulated depreciation
1.Beginning of term 151,139,947.58 560,699,909.96 19,348,619.55 71,014,360.27 802,202,837.36
2.Increased currentof term 6,229,569.97 31,312,518.22 1,919,158.60 3,803,725.03 43,264,971.82
（1）Provision 6,229,569.97 31,312,518.22 1,919,158.60 3,803,725.03 43,264,971.82
3.Decreased current period 1,392,494.74 13,537.45 155,924.00 1,561,956.19
（1）Disposal 1,392,494.74 13,537.45 5,180.00 1,411,212.19
（2）Other 150,744.00 150,744.00
4.End of term 157,369,517.55 590,619,933.44 21,254,240.70 74,662,161.30 843,905,852.99
III. Impairment provision 1,504,928.24 4,074,858.43 1,203,366.99 6,783,153.66
1.Beginning of term 1,504,928.24 4,074,858.43 1,203,366.99 6,783,153.66
2.Increased current period
（1）Provision
3.Decreased current period
（1）Disposal
4.End of term 1,504,928.24 4,074,858.43 1,203,366.99 6,783,153.66
IV. Book value
1.Closing book value 267,692,883.78 341,970,037.18 11,922,219.80 21,992,227.38 643,577,368.14
2.Opening book value 273,842,453.75 366,487,966.67 13,803,538.74 23,899,085.30 678,033,380.86
10. Construction in process
72
杭汽轮机股份有限公司 2015 年半年度报告
（1）Details
In RMB
End of term Beginning of term
Impairme Impairme
Items
Boook balance nt Book value Boook balance nt Book value
provision provision
Construction in process of
79,261,494.76 79,261,494.76 60,805,346.48 60,805,346.48
parent Company（185 projects）
Completed project of parent
659,976.07 659,976.07 6,496,918.11 6,496,918.11
Company（10 projects）
Tangxi Workshop PhaseII,
15,433,217.90 15,433,217.90 13,036,376.35 13,036,376.35
Gouneng Company
Project of steam turbine heavy
9,349,575.83 9,349,575.83 5,718,626.32 5,718,626.32
industry
Minor purchasing of
1,477,988.02 1,477,988.02 1,780,341.88 1,780,341.88
equipment by subsidiaries
Prepayment for equipment or
0.00 0.00 1,631,650.00 1,631,650.00
projects
Total 106,182,252.58 106,182,252.58 89,469,259.14 89,469,259.14
(2) Variation of costs of major construction-in-process
73
杭汽轮机股份有限公司 2015 年半年度报告
In RMB
Interest
Other Accumulated Ratio of interest
Beginning of Increased this Transferred Accumulate of interest capitaliz Fund
Project Budget decrease End of term input on budget Progress capitalizing this
term period fixed assets capitalized ed this recourse
s % term %
term
Construction
in process of
Under
parent
229,649,322.00 60,805,346.48 18,456,148.28 0.00 79,261,494.76 34.51% Construc Other
Company
tion
（185
projects）
Completed
project of
Complet
parent 8,150,000.00 6,496,918.11 279,367.54 6,116,309.58 0.00 659,976.07 83.14% Other
ed
Company（10
projects）
Tangxi
Workshop Under
PhaseII, 29,510,000.00 13,036,376.35 2,396,841.55 0.00 0.00 15,433,217.90 52.30% Construc Other
Gouneng tion
Company
Project of
Under
steam turbine
2,084,000,000.00 5,718,626.32 3,647,171.73 16,222.22 9,349,575.83 0.45% Construc Other
heavy
tion
industry
74
杭汽轮机股份有限公司 2015 年半年度报告
Minor
Under
purchasing of
1,780,341.88 2,228,202.55 2,530,556.41 1,477,988.02 Construc Other
equipment by
tion
subsidiaries
Prepayment
1,631,65 Complet
for equipment 1,631,650.00 0.00 Other
0.00 ed
or projects
1,631,65
Total 2,351,309,322.00 89,469,259.14 27,007,731.65 8,663,088.21 106,182,252.58 -- -- --
0.00
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杭汽轮机股份有限公司 2015 年半年度报告
11. Intangible assets
（1）Details
In RMB
Not patent
Items Land using right Patent Other Total
technology
I. Original book value
1.Beginning of term 332,298,312.33 200,000.00 260,000.00 332,758,312.33
2.Increased current period 8,000,000.00 68,376.07 8,068,376.07
（1）Purchase 68,376.07 68,376.07
（2）Internal research and
development
（3）Increased
8,000,000.00 8,000,000.00
fromenterprise merger
3.Decreased amountof the
period
（1）Disposal
4.End of term 332,298,312.33 200,000.00 8,000,000.00 328,376.07 340,826,688.40
II. Accumulative
depreciation
1.Beginning of term 28,456,359.23 58,000.00 143,333.33 28,657,692.56
2.Increased amount of the
3,586,665.01 28,000.00 45,419.06 3,660,084.07
period
（1）Provision 3,586,665.01 28,000.00 45,419.06 3,660,084.07
3.Decreased current period
（1）Disposal
4.End of term 32,043,024.24 86,000.00 188,752.39 32,317,776.63
III. Impairment provision
1.Beginning of term
2.Increased amount of the
period
（1）Provision
3.Decreased current period
（1）Disposal
4.End of term
IV. Book value
1.Closing book value 300,255,288.09 114,000.00 8,000,000.00 139,623.68 308,508,911.77
2.Opening book value 303,841,953.10 142,000.00 116,666.67 304,100,619.77
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杭汽轮机股份有限公司 2015 年半年度报告
12. Long-term amortizable expenses
In RMB
Items Beginning of term Increased this period Amortized this term Other decrease End of term
Redecoration 1,041,796.52 1,041,796.52
Total 1,041,796.52 1,041,796.52
13. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets not neutralized yet
In RMB
End of term Beginnin gof term
Items Deductible provisional Deferred income tax Deductible provisional Deferred income tax
differences asset differences asset
Bad debt provision 643,871,901.60 100,282,203.75 625,774,885.64 97,116,519.78
Internal trade profit not
38,030,586.68 5,783,887.33 31,366,833.60 4,784,324.37
realized
Deductible losses
Temporary difference
such as amortizing of 6,567,225.16 985,083.78 6,567,225.16 985,083.78
software expense
Total 688,469,713.44 107,051,174.86 663,708,944.40 102,885,927.93
(2) Details of taxable differences and deductible differences
In RMB
End of term Beginning of term
Items Taxable provisional Deferred income tax Taxable provisional Deferred income tax
difference liability difference liability
Revaluation surplus in
business combination not
under common control
Changes in fair value of
tradable financial assets
Accumulated
6,783,153.66 1,017,473.05 6,783,153.66 1,017,473.05
depreciation
Total 6,783,153.66 1,017,473.05 6,783,153.66 1,017,473.05
（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Deferred income tax Deductible or taxable Deferred income tax Deductible or taxable
asset or liability after provisional difference asset or liability after provisional difference
Items
neutralizing at end of after neutralizing at end neutralizing at end of after neutralizing at end
report period of report period report period of report period
77
杭汽轮机股份有限公司 2015 年半年度报告
Deferred income tax
107,051,174.86 102,885,927.93
asset
Deferred income tax
1,017,473.05 1,017,473.05
liability
(3) Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible provisional differences 20,578.50 77,605.05
Recoverable losses 8,184,275.62 2,086,222.26
Total 8,204,854.12 2,163,827.31
(4) The un-recognized deductible losses of deferred income tax assets will due in the following years:
In RMB
Year End of term Beginning of term Remark
2017 873,013.84 873,013.84
2018 744,962.67 744,962.67
2019 468,245.75 468,245.75
2020 6,098,053.36
Total 8,184,275.62 2,086,222.26 --
14.Short-term loans
（1）Details
In RMB
Year End of term Beginning of term
Loan by pledge 10,000,000.00 10,000,000.00
Mortgage loan 83,300,000.00 88,600,000.00
Guarantee loan 100,000,000.00 100,000,000.00
Credit loan
Total 193,300,000.00 198,600,000.00
15.Bill payable
In RMB
Type End of term Beginning of term
Tcommercial acceptance bill
Bank acceptance 123,907,495.41 150,763,452.14
Total 123,907,495.41 150,763,452.14
16. Account payable
（1）Details
In RMB
78
杭汽轮机股份有限公司 2015 年半年度报告
Items End of term Beginning of term
Goods 923,983,584.00 689,452,672.67
Payment for equipment and projects 38,127,538.36 73,633,046.25
Total 962,111,122.36 763,085,718.92
17. Advances received
（1）Details
In RMB
Items End of term Beginning of term
Goods 1,656,586,126.69 1,374,736,209.67
Total 1,656,586,126.69 1,374,736,209.67
18. Employees’ wage payable
(1) Details
In RMB
Items Beginning of term Increased this period Decreased this period End of term
I. Short-term wages 43,878,015.68 284,703,727.36 300,962,743.66 27,618,999.38
II. Welfare afterleaving
of position-fixed 21,794,690.41 36,738,467.55 44,594,358.53 13,938,799.43
provision scheme
III. Dismissing welfare 40,618.10 40,618.10
IV.Other welfare within 1
year
Total 65,672,706.09 321,482,813.01 345,597,720.29 41,557,798.81
(2) Details of short term wages
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Wage, bonus,
28,767,519.81 200,038,146.02 222,915,191.64 5,890,474.19
allowance and subsidies
2. Employee welfare 26,682,218.34 22,034,521.34 4,647,697.00
3. Social insurance 7,648,459.07 23,185,036.24 23,256,811.23 7,576,684.08
Incl. Medical insurance 7,056,425.03 20,171,096.11 20,127,422.86 7,100,098.88
Labor injury insurance 194,756.44 1,011,155.62 1,042,189.71 163,722.35
Maternity insurance 397,277.00 2,002,784.51 2,087,198.66 312,862.85
4. Housing fund 220,900.96 26,151,501.00 26,145,995.00 226,406.96
5. Labour union fee and
6,606,703.84 8,646,825.76 5,975,792.45 9,277,737.15
employee education fee
6.Short –term
compensated absences
7.Short-term profit 634,432.00 634,432.00
79
杭汽轮机股份有限公司 2015 年半年度报告
shareing scheme
Total 43,878,015.68 284,703,727.36 300,962,743.66 27,618,999.38
(3) Details of fixed provision scheme
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Basic pension
4,681,929.48 24,076,008.98 25,045,828.38 3,712,110.08
insurance
2. Unemployment
664,347.08 2,541,744.59 2,803,025.91 403,065.76
insurance
3. Enterprise annual fee 16,448,413.85 10,120,713.98 16,745,504.24 9,823,623.59
Total 21,794,690.41 36,738,467.55 44,594,358.53 13,938,799.43
19. Tax payable
In RMB
Items End of term Beginning of term
VAT 6,803,669.36 64,272,374.25
Consumption tax
Operational tax 43,540.60 5,570.00
Enterprise income tax 5,873,676.66 48,371,910.29
Individual income tax 2,918,354.05 2,395,496.64
City maintenance and construction tax 619,621.39 4,901,454.49
Property tax 39,647.76 1,944.00
Education surtax 276,363.87 2,113,092.00
Local water source foundation 175,984.25 1,398,939.85
Stamp tax 9,541.85 43,704.27
Local water source construction funds 1,941,765.02 2,584,778.06
Price adjustment foundation 1,996.88
Disabled persons 1,996.88
Land use tax 918,480.00
Total 19,622,641.69 126,091,260.73
20.Other account payable
（1）Details
In RMB
Items End of term Beginning of term
Deposite 851,060.10 2,424,372.25
Provisional account payable 18,346,517.77 26,127,465.27
Other 7,161,818.38 1,046,051.60
80
杭汽轮机股份有限公司 2015 年半年度报告
Total 26,359,396.25 29,597,889.12
22.Differed income
In RMB
Increased this Decreased this
Items Beginning of term End of term Cause
period period
Government subsidy 8,252,705.00 108,000.00 1,252,350.00 7,108,355.00
Total 8,252,705.00 108,000.00 1,252,350.00 7,108,355.00 --
Details of government subsidies
In RMB
Amount
New subsidy Other
transferred to Asset-related or
Items Beginning of term in current chang End of term
non-operational income-related
period es
income
2014 Hangzhou Grants on
100,000.00 100,000.00 Income-related
safetypro
Subsidy for Intellectual Patent 2013 8,000.00 8,000.00 Income-related
Financial allocation of advance
111,250.00 111,250.00 Asset-related
manufacturing base
Finance subsidy for casting
5,901,165.00 997,380.00 4,903,785.00 Asset-related
project
Financial subsidy for Provincial
industrial transformation and 800,000.00 160,000.00 640,000.00 Asset-related
upgrading
Financial subsidy of Industry
345,360.00 57,560.00 287,800.00 Asset-related
project
Subsidy for casting project 345,360.00 345,360.00 Asset-related
Financial subsidy for Circular
136,920.00 11,410.00 125,510.00 Asset-related
economy
The renovation project Subsidy 78,000.00 26,000.00 52,000.00 Asset-related
Government subsidy for
industrial entities from Yuhang
534,650.00 534,650.00 Asset-related
District Government in the 2nd
half of 2009
Total 8,252,705.00 108,000.00 1,252,350.00 7,108,355.00 --
23.Other non-current Liability
81
杭汽轮机股份有限公司 2015 年半年度报告
In RMB
Items End of term Beginning of term
Special payable 5,084,464.00
Total 5,084,464.00
24.Share capital
In RMB
Change of current period（+、—）
Beginning of
Issuing of new Transferred End of term
term Bonus shares Other Subtotal
shares from reserves
Total of capital
754,010,400.00 754,010,400.00
shares
25. Capital reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Capital premium 81,815,220.00 81,815,220.00
Other capital reserves 57,775,125.09 57,775,125.09
26.Other Comprehensive income
In RMB
Occurred current term
Less：Accounted
Amount Less：
as other gains Attributable Attributable
Beginning of occurred Incom
Items previously but to the parent to minority End of term
term before income e tax
transferred to Company shareholders
tax of the expen
gain/loss this after tax after tax
period ses
period
1.Other comprehensive income that will
not be reclassified subsequently to profit
or loss
Indluding ： Change as a result of
remeasurement of the net defined
benefit plan liability or asset
Share of other comprehensive income of
the investee underthe equity method that
will not be reclassified to profit or loss
II. Other Comprehensive income that will
-640,401.72 -373,143.88 -158,883.17 -214,260.71 -799,284.89
be reclassified subsequently to profit or
82
杭汽轮机股份有限公司 2015 年半年度报告
loss
Indluding：Share of other comprehensive
income of the investee under the
equity method that w8ill be
reclassified to profit or loss
Gains or losses on changes in fair value of
available-for-sale financial assets
Gains or losses on reclassification of
held-to-maturityinvestments to
available-for –sale financial assets
Effective portion of gains or losses on cash
flow hedges
Translation differences of financial
statements denominated in foreign -640,401.72 -373,143.88 -158,883.17 -214,260.71 -799,284.89
currencies
Total -640,401.72 -373,143.88 -158,883.17 -214,260.71 -799,284.89
27.Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 24,603,149.96 1,239,471.57 888,519.53 24,954,102.00
Total 24,603,149.96 1,239,471.57 888,519.53 24,954,102.00
Notes:
According to the “Notice for Provision of Labor Safety Fund” (CQD〔2012〕No.16) issued by the Department of
Finance and Safety Inspection Bureau General on February 14, 2012, the labor safety fund provided this period
was RMB1，239，471.57, and RMB888，519.53was used.
28. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus
621,112,807.78 621,112,807.78
reserves
Arbitrarily surplus
reserve
Reserve funds
Enterprise development
funds
83
杭汽轮机股份有限公司 2015 年半年度报告
Other
Total 621,112,807.78 621,112,807.78
29. Retained profit
In RMB
Items Current term Same period of last term
Before adjustment: Retained profits at the end of
priodyear
Adjustment: Total retained profits at the beginning of
year
After adjustment: Retained profits at the beginning of
2,911,921,943.21 2,736,802,630.30
year
Add：Net profit attributable to shareholders of the
-10,282,333.32 196,174,851.01
parent Company for the period
Less：Appropriation to statutory surplus reserve
Appropriation to discretionary surplus reserve
Appropriation to general risk reserve
Ordinary shares’ dividends payable 75,401,040.00 150,802,080.00
Ordinary shares’ dividends converted into share capital
Other 502.09
Retained profits at the end of the period 2,826,238,569.89 2,782,174,899.22
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
30. Business income and Business cost
In RMB
Occurred current term Occurred in previous term
Items
Income Cost Income Cost
84
杭汽轮机股份有限公司 2015 年半年度报告
Main Business 1,051,651,934.26 661,731,977.04 1,739,190,751.12 1,071,939,995.03
Other 3,344,391.98 777,370.14 4,171,891.15 2,506,855.13
Total 1,054,996,326.24 662,509,347.18 1,743,362,642.27 1,074,446,850.16
31. Business tax and surcharge
In RMB
Items Occurred current term Occurred in previous term
Consumption tax
Business tax 76,064.57 488,987.28
City maintenance and construction tax 3,597,396.78 6,332,862.90
Education surtax 1,596,580.15 2,898,601.19
Resource tax
Local education surcharges 1,064,551.92 1,706,222.57
Total 6,334,593.42 11,426,673.94
32. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
Employees’ remunerations 27,276,709.31 26,190,370.61
Transportation 17,125,216.83 15,768,193.46
Business trips 8,118,609.81 9,946,751.67
Business reception expenses 3,388,749.62 3,083,101.34
Conferences 1,233,208.24 1,471,227.51
Consulting service fee 5,715,017.95 5,576,202.81
Insurance for turbine unit 132,272.45 446,352.77
Warranty expense 907,943.92 97,254.34
Product exhibition 475,420.96 521,582.74
Office expenses 398,913.10 259,147.19
Others 3,162,511.90 4,837,789.75
Total 67,934,574.09 68,197,974.19
33.Administrative expense
In RMB
Items Occurred current term Occurred in previous term
Employees’ remunerations 150,393,259.60 161,065,363.45
R&D expenses 107,033,616.25 77,853,332.85
Asset depreciation and amortizing 10,524,580.76 7,032,780.50
Business reception expenses 6,689,781.94 6,166,377.83
House rental, property management, water
and power 6,764,416.69 4,951,988.06
85
杭汽轮机股份有限公司 2015 年半年度报告
Traveling fees 2,928,486.47 2,492,300.79
Taxes 1,819,584.25 5,464,108.25
Material, low-value-consumable 1,517,319.57 1,971,131.66
Office expenses 1,867,126.81 1,632,507.20
Maintaining 1,516,499.13 1,583,476.71
Others 24,115,191.43 28,586,096.50
Total 315,169,862.90 298,799,463.80
34. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 6,368,172.77 10,430,724.17
Less: Incoming interests 3,258,526.77 4,439,655.78
Exchange gains/losses 600,522.74 2,268,764.67
Commission 1,185,235.00 726,302.24
Other 37,036.60 216,351.42
Total 4,932,440.34 9,202,486.72
35. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
22,650,560.50 55,223,094.46
I .Losses for bad debts
II. Losses for falling price of inventory
III. Losses of available for sale financial
assets impairment
IV.Impairment on held-to-mathurity
investments
V.Impairment on long-term equity
investment
VI.Impairment on investment properties
VII.Impairment on fixed assets
VIII. Impairment on construction materials
IX. Impairment on construction in progress
86
杭汽轮机股份有限公司 2015 年半年度报告
X. Impairment on bearer biological assets
XI. Impairment on oil and gas assets
XII. Impairment on intangible assets
XIII. Impairment on goodwill
XIV.Other
Total 22,650,560.50 55,223,094.46
36. Investment income
In RMB
Occurred in previous
Items Occurred current term
term
Long-term equity investment income by equity method
Investment income from the disposal of
long-term equity investment
Investment income from holding the financialasset of which fair value
recognized in profit or loss
Investment income from disposal of financialassets measured by fair value with
changes in fair value recognised in profit or loss
Hold the investment income during from available-for-sale financial assets
Investment income gain from available for sale financial assets 28,742,368.00 24,118,640.00
Investment income from the disposal of available-for-sale financial assets
Investment income from disposal of financialassets available for sale
Reverse repurchase treasury investment income 10,489,094.05 9,549,596.76
Total 39,231,462.05 33,668,236.76
37. Non-Operation income
In RMB
Recorded in the
amount of the
Items Occurred current term Occurred in previous term
non-recurring
gains and losses
Total gains from disposal of
29,583.00 347,012.69 29,583.00
non-current assets
87
杭汽轮机股份有限公司 2015 年半年度报告
Including：Gains from disposal
29,583.00 347,012.69 29,583.00
of fixed assets
Gains from disposal of
intangible assets
Gains from debt restructuting
Non-monetary assets
exchangegains
Accepting donations
Government Subsidy 3,309,950.00 4,003,211.00 3,309,950.00
Compensation income 2,763,960.00 7,693,940.02 63,960.00
Payment not to be paid 150,000.00
Other 181,713.55 2,881,713.55
Total 6,285,206.55 12,194,329.71 6,285,206.55
Government subsidy reckoned into current gains/losses
In RMB
Amount of last Assets-related/income
Items Amount of this period
period -related
Transferred from deferrecd income 1,252,350.00 Related to the income
Hangzhou Xihu Production Promotion Center Pattent
5,000.00 Related to the income
Grant
Baiyang street Labor grant 5,600.00 Related to the income
2014 financial grants on intellectual property right 971,000.00 Related to the income
2014 financial grants on intellectual property
16,000.00 Related to the income
right
2014 Yuhang industrial risk-pooling funds 635,000.00 Related to the income
2014Hangzhou city grants on safety production
100,000.00 Related to the income
standardization
2014 Yuhang District grants on Quality Awards 200,000.00 Related to the income
Xiacheng District financial subsidies granted for
100,000.00 Related to the income
safety production financial subsidies
Grants on Deqing Finance Bureau upgrading 25,000.00 Related to the income
Subsidy for R&D Hangzhou Economy & Technology
206,400.00 Related to the income
Development Zone 2012
Enterprise Funding by Hangzhou Economy &
1,866,200.00 Related to the income
Technology Development Zone Finance office
Hangzhou Human Resource and Social security
Bureau in 2013 College student enterprise training 21,671.00 Related to the income
Subsidies
Award for Technology of Tangqia tax advanced 110,000.00 Related to the income
Subsidy for Technology Patent 27,500.00 Related to the income
Award for Technical Projects 2014 100,000.00 Related to the income
88
杭汽轮机股份有限公司 2015 年半年度报告
Subsidy for enter prise R & D 2012 630,000.00 Related to the income
Subsidy for innovative industrial projects 2013 of
540,000.00 Related to the income
Hangzhou
Award for technical standard 2013 500,000.00 Related to the income
Other small amount subsidies 1,440.00 Related to the income
Total 3,309,950.00 4,003,211.00 --
38. Non-business expenditures
In RMB
Carried to current
Items Occurred current term Occurred in previous term
contingent gain/loss
Total of non-current asset
303,677.88 120,844.93 303,677.88
Disposition loss
Incl ： loss of fixed assets
303,677.88 120,844.93 303,677.88
disposition
Loss of intangible assets
disposition
Loss of Debt restructuring
disposition
Non-monetary assets exchange
loss
Foreign donation 110,000.00 310,000.00 110,000.00
Penalty paid out 72,168.36 649,434.40 72,168.36
water conservancy special fund 1,509,082.13 2,353,054.95
Penalty paid 100.00 100.00
Other 162,134.52 1,119,317.88 162,134.52
Total 2,157,162.89 4,552,652.16 648,080.76
39. Income tax expenses
(1) Lists of income tax expense
In RMB
Items Occurred current term Occurred in previous term
Income tax calculated according to the law
and regulations of current term 15,455,703.13 44,486,881.81
-4,165,246.93 -4,812,953.14
Deferred income tax
In RMB
89
杭汽轮机股份有限公司 2015 年半年度报告
Items Amount of current period
Total profits 18,824,453.52
Income tax expenses calculated on legal / applicable tax
2,823,668.03
rate
Impact of different tax rates of subsidiaries 1,698,121.64
Impact of income tax adjustment in previous periods -559,811.58
Impact of non-taxable income -4,561,355.20
Impact of un-deductible costs, epenses or losses\ 3,088,871.25
Impact of deductible loss of un-recognized deferred income
taxassets of previous periods
Impact of deductible temporary difference of un-recognized
8,446,515.32
deferred income tax asset of current period
Impact of consolidated duduction of profit 354,446.74
Income tax expenses 11,290,456.20
40.Other Comprehensive income
Please find the statement in the notes of consolidated balance sheet.
41. Notes Cash flow statement
(1) Other cash received from business operation
In RMB
Items Occurred current term Occurred in previous term
Deeposit interest 2,932,337.44 4,073,827.69
Government subsidies received 7,253,115.90 4,679,042.27
Deposit for bidding and other 382,225.60 320,000.00
Compensation income 6,434.94
Other 1,050,625.36 -6,408,389.13
Total 11,618,304.30 2,670,915.77
2. Other cash paid for business activities
In RMB
Items Occurred current term Occurred in previous term
Travel expenses 11,117,335.44 12,061,008.28
Transportation 2,241,434.65 2,065,151.60
Business trips 10,258,389.65 9,434,011.17
Maintaining 794,837.37 692,095.29
Property management and civil services 3,437,124.78 5,354,362.72
Deposit for bidding and others 6,037,215.36 3,490,184.58
Office expenses 3,460,947.30 6,077,175.02
Conferences 1,491,417.75 1,813,704.93
90
杭汽轮机股份有限公司 2015 年半年度报告
Consulting service fee 5,690,876.65 9,370,140.22
Transportation and vehicles 2,541,010.58 2,810,707.20
Donations 100,000.00 210,000.00
Other 20,594,189.36 42,678,549.74
Total 67,764,778.89 96,057,090.75
3. Other investment-related cash received
In RMB
Items Occurred current term Occurred in previous term
Repurchasing of trusteeship 718,855,999.95 1,063,000,000.00
Total 718,855,999.95 1,063,000,000.00
4. Other cash paid for investment activities
In RMB
Items Occurred current term Occurred in previous term
Purchasing of financial products 754,555,999.95 1,105,001,561.00
Total 754,555,999.95 1,105,001,561.00
5. Other financing-related cash received
Not applicable
6. Other cash paid for financing activities
Not applicable
42. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
I. Adjusting net profit to cash flow from operating activities -- --
Net profit 7,533,997.32 227,702,084.64
Add: Impairment loss provision of assets 22,650,560.50 55,223,919.89
Depreciation of fixed assets, oil and gas assets and
43,264,971.82 40,989,166.35
consumable biological assets
Amortization of intangible assets 3,660,084.07 2,381,540.21
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets, intangible assets and other
17,462.55 226,573.76
long-term deferred assets
Loss on scrap of fixed assets
286,215.33
Losson fair value changes
Financial cost 7,181,607.57 12,699,488.84
Loss on investment -39,231,462.05 -33,668,236.76
91
杭汽轮机股份有限公司 2015 年半年度报告
Decrease of deferred income tax assets -4,165,246.93 -4,362,015.98
Increased of deferred income tax liabilities
Decrease of inventories -462,624,380.00 -260,721,690.77
Decease of operating receivables 199,800,810.01 52,127,359.71
Increased of operating Payable 322,672,780.80 27,188,793.83
Other 774,172.30
Net cash flows arising from operating activities 101,821,573.29 119,786,983.72
II. Significant investment and financing activities that
-- --
without cash flows:
Debt-to-capital conversion
Convertible loan due within 1 year
Fixed assets acquired under fianancial lease
3．Movement of cash and cash equivalents：
-- --
Ending balance of cash 556,567,843.18 771,330,801.56
Less: Beginning balance of cash equivalents 613,958,063.91 883,141,568.17
Add：Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents -57,390,220.73 -111,810,766.61
(2) Net Cash paid of obtaining the subsidiary
Not applicalbe
(3) Net Cash receive of disposal of the subsidiary
Not applicalbe
（2）Composition of cash and cash equivalents
In RMB
Items Amount of current period Amount of previous period
556,567,843.18 613,958,063.91
I. Cash
92
杭汽轮机股份有限公司 2015 年半年度报告
330,003.92 307,654.85
Of which: Cash in stock
Demand bank deposit
546,521,114.46 562,455,906.65
Demand other monetary funds
Demanddeposit in the Central Bank
Depositin peerfirms
Loan to peerfirms
II. Cash equivalents
Including：Debt instrument maturedwithin
three months
III. Balance of cash and cash equivalents at
556,567,843.18 613,958,063.91
the period end
Including： The parent company and the
group holding owned subsidiary use the
confined cash and cash equivalents.
43. Assets with limitation on ownership or using rights
In RMB
Items Closing book value Causation o limitation
Used as security for issuing ofacceptance
Monetary capital 9,716,724.80
drafts and bill of guarantees
Bill receivable 86,660,069.47 Usedassecurity for bank acceptance
Inventory Securities for loan
Fixed assets 100,003,058.65 Securities for loan
Intangible assets 21,141,028.64 Securities for loan
Account receivable 11,000,000.00 Securities for loan
Total 228,520,881.56 --
44. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Translated to RMB AT END OF
Items Balance at end of period Exchange rate
PERIOD
Monetary capital -- -- 74,043,939.24
Incl：USD 10,924,171.40 6.1136 66,786,014.27
93
杭汽轮机股份有限公司 2015 年半年度报告
Euro 350,020.78 6.8699 2,404,607.76
HKD 5.51 0.7886 4.35
JPY 3,460.00 0.0501 173.18
Indonesia rubi 10,238,691,329.10 0.0005 4,853,139.69
Account receibable -- --
Incl：USD 21,627,219.73 6.1136 132,220,170.54
Euro 1,238,408.74 6.8699 8,507,744.20
HKD
Indonesia rubi 487,702,367.75 0.0005 231,170.92
Long-term loan -- --
Incl：USD
Euro
HKD
(2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosed
about its principal business place, function currency for bookkeeping and basis for the choice. In case of any
change in function currency, the cause should be disclosed.
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd. has its business located in Indonesia Rupee is
the pricing and booking currency of business operation.
VIII. Change in consolidation scope
1. Consolidation of enterprises not under common control
(1) Consolidation of enterprises not under common control occurred in the current period
Not applicable
(2) Consolidation cost and goodwill
Not applicable
(3) Distinguishable assets/liabilities of the acquiree as at the date of acquisition
Not applicable
(4) Gain or loss from remeasurement of the equity held before the date of acquisition based on the fair value
Not applicable
(5) Note to failure in reasonable determination of consolidation consideration or the fair value of the fair value of
distinguishable assets and liabilities of the acquiree as at the date of acquisiton or the very period of consolidation.
Not applicable
2. Consolidation of enterprises under the common control.
(1) Consolidation of enterprises under common control incurred in the reporting period
Not applicable
(2) Consolidation cost
Not applicable
(3) Book value of the assets and liabilities of the consolidatee as at the date of consolidation
Not applicable
3.Disposal of subsidiaries
Not applicable
Change in consolidation scope due to other cause
Description of consolidation scope changes and other causes (eg, the new subsidiary, the subsidiary liquidation, et
c.) and related conditions:
Way of
Increased of Consolidationscope Date of acquiring Captial input Proportion %
acquiring equity
Zhejiang Zhongrun Fuel Engine Newly May 22, 2015 10,000,000 55.55%
94
杭汽轮机股份有限公司 2015 年半年度报告
Technology Co., Ltd. incorporated
IX. Equity in major subsidiaries
1. Equity in major subsidiaries
（1）Composition of enterprise group
Shareholding ratio Way of
Plance of Nature of
Subsidiaries Main business acquisiti
registration business Directr Hidirect
on
Zhejiang Steam trubine Packaged Technology Hangzhou Hangzhou Manufacturin Incorpor
70.86%
Development Co., Ltd. Zhejiang Zhejiang g ation
Hangzhou Hangzhou Manufacturin Incorpor
Hangzhou Zhongneng Steam turbine PowerCo., Ltd. 60.83%
Zhejiang Zhejiang g ation
Hangzhou Hangzhou Manufacturin Incorpor
Hangzhou Steam Turbine Casting Co., Ltd. 51.00%
Zhejiang Zhejiang g ation
Hangzhou Steam Turbine Machinery Equipment Co., Hangzhou Hangzhou Manufacturin Incorpor
52.00%
Ltd. Zhejiang Zhejiang g ation
Hangzhou Steam Turbine Auxiliary Machinery Co., Hangzhou Hangzhou Manufacturin Incorpor
87.53%
Ltd. Zhejiang Zhejiang g ation
Hangzhou Hangzhou Incorpor
Zhejiang Tubine Import & Export Co.,Ltd. Commerce 100.00%
Zhejiang Zhejiang ation
Hangzhou Hangzhou Manufacturin Incorpor
Hangzhou Steam Turbine Heavy Industry Co., Ltd. 100.00%
Zhejiang Zhejiang g ation
Zhejiang Huayuan Steam Turbine Machinery Co., Hangzhou Manufacturin Incorpor
Deqing Zhejiang 75.00%
Ltd. Zhejiang g ation
Hangzhou Guoneng Steam Turbine Engineering Co., Hangzhou Hangzhou Manufacturin Incorpor
75.00%
Ltd. Zhejiang Zhejiang g ation
Xinjiang Taifeng Hangzhou Steam Turbine Packaged Manufacturin Incorpor
Xinjiang Xinjiang 51.00%
Technology Development Co., Ltd. g ation
Hangzhou Bypass Mechanical & Electrical Hangzhou Hangzhou Manufacturin Incorpor
70.00%
Equipment Co., Ltd. Zhejiang Zhejiang g ation
Shijiazhuang Hangneng Steam Turbine Technology Shijiazhuang Shijiazhuang Incorpor
Service 60.00%
Service Co., Ltd. Hebei Hebei ation
Kunming Hangzhong Steam Turbine Technology Incorpor
Kunming Yunnan Kunming Yunnan Service 60.00%
Sevrvice Co., Ltd. ation
Wulumuqi Hangzhongneng Steam Turbine Qulumuqi Qulumuqi Incorpor
Service 60.00%
Technology Sevrvice Co., Ltd. Xingjiang Xingjiang ation
Tangshan Hangneng Steam turbine Technology Incorpor
Tangshan Hebei Tangshan Hebei Service 60.00%
Sevrvice Co., Ltd. ation
Jilin Hangzhongneng Steam turbine Technology Incorpor
Jilin Jilin Service 60.00%
Sevrvice Co., Ltd. ation
Guangxi Hangzhongneng Steam turbine Technology Nanning Guangxi Nanning Guangxi Service 60.00% Incorpor
95
杭汽轮机股份有限公司 2015 年半年度报告
Sevrvice Co., Ltd. ation
Chengdu Hangzhongneng Steam turbine Technology Incorpor
Chengdu Sichuan Chengdu Sichuan Service 60.00%
Sevrvice Co., Ltd. ation
Luoyang Hangzhongneng Steam turbine Technology Incorpor
Luoyang Henan Luoyang Henan Service 60.00%
Sevrvice Co., Ltd. ation
Hangzhou Hangzhou Manufacturin Incorpor
Hangzhou Steam turbine Boiler Co., Ltd. 50.00%
Zhejiang Zhejiang g ation
Hangzhou Zhongneng Steam turbine (Indonesia) Co., Manufacturin Incorpor
Indonesia Indonesia 70.00%
Ltd. g ation
Hangzhou Hangzhou Manufacturin Incorpor
Hangzhou Kaineng Casting Co., Ltd. 100.00%
Zhejiang Zhejiang g ation
Zhejiang Runhong Burming Machine Engineering Hangzhou Hangzhou Incorpor
S 58.00%
Co., Ltd. Zhejiang Zhejiang ation
Zhejiang Zhongrun Burning machine Technology Manufacturin Incorpor
Huzhou Zhejiang Huzhou Zhejiang 55.55%
Co., Ltd. g ation
（2）Major non-fully-Owned subsidiaries
In RMB
Share protion Gains/loss of the period Dividend announced in
Balance of eqiuty of minor
Name of the subsidiaries of minor attributable to minor the period to minor
shareholders at end of period
shareholders shareholders shareholders
Zhejiang Steam trubine Packaged
29.14% 2,988,783.06 4,459,185.00 24,305,347.51
Technology Development Co., Ltd.
Hangzhou Zhongneng Steam turbine
39.17% 2,900,386.98 11,751,600.00 117,702,363.00
PowerCo., Ltd.
Hangzhou Steam Turbine Casting Co., Ltd. 49.00% -592,114.23 9,800,000.00 78,011,376.52
Hangzhou Steam Turbine Machinery
48.00% 10,968,450.37 21,600,000.00 58,505,941.02
Equipment Co., Ltd.
Hangzhou Steam Turbine Auxiliary
12.47% 2,886,057.92 7,980,800.00 28,338,424.18
Machinery Co., Ltd.
Zhejiang Huayuan Steam Turbine
25.00%
Machinery Co., Ltd.
Hangzhou Guoneng Steam Turbine
25.00%
Engineering Co., Ltd.
Notes：
According to the articles of association of Huayuan Co., Hong Kong Ruiyun Enterprise Co., Ltd. – the
overseas investor – will no longer enjoy the equity of the joint-venture as soon as the return reaches RMB10.50
million. As of December 31, 2012, Hong Kong Ruiyun Enterprise Co., Ltd. had received RMB10.50 million of
dividend, therefore the minority shareholder’s equity is neutralized to zero.
According to the articles of association of Guoneng Co., Hong Kong Ruiyun Enterprise Co., Ltd. – the overseas
investor – will no longer enjoy the equity of the joint-venture as soon as the return reaches RMB20 million. As of
December 31, 2011, Hong Kong Ruiyun Enterprise Co., Ltd. had received RMB20 million of dividend, therefore
96
杭汽轮机股份有限公司 2015 年半年度报告
the minority shareholder’s equity is neutralized to zero.
97
杭汽轮机股份有限公司 2015 年半年度报告
(3 Material financial information of major non-fully-owned subsidiaries
In RMB
End of term Beginning of term
Subsidiaries
Current Non-current Non-curren Current Non-current Total of
Name Total of assets Current liabilities Total of liability Current assets Non-current assets Total of assets
assets assets t liabilities liabilities liabilities liability
Zhejiang
Steam trubine
Packaged 248,025, 242,916,104. 184,460,725. 184,460,72
30,772,561.61 278,797,599.16 194,330,574.55 194,330,574.55 30,828,926.61 273,745,031.39
Technology 037.55 78 05 5.05
Development
Co., Ltd.
Hangzhou
Zhongneng
701,247, 5,414,464. 654,074,224. 442,218,457. 442,548,45
Steam turbine 111,354,261.57 812,602,176.09 501,518,999.15 506,933,463.15 114,095,212.10 768,169,437.01 330,000.00
914.52 00 91 32 7.32
PowerCo.,
Ltd.
Hangzhou
Steam
215,157, 30,054,455 249,835,889. 257,496,967. 283,603,77
Turbine 206,353,517.37 421,511,208.51 233,257,010.41 263,311,465.41 212,563,075.49 462,398,964.61 26,106,805.00
691.14 .00 12 62 2.62
Casting Co.,
Ltd.
Hangzhou
Steam
Turbine 136,093, 138,628,223. 76,377,497.0 76,377,497
20,120,768.90 156,213,970.61 71,260,772.19 71,260,772.19 20,941,588.24 159,569,811.80
Machinery 201.71 56 4 .04
Equipment
Co., Ltd.
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杭汽轮机股份有限公司 2015 年半年度报告
Hangzhou
Steam
Turbine 108,249, 135,991,610. 49,629,812.1 49,629,812
62,449,966.72 170,699,625.17 33,662,555.09 33,662,555.09 62,538,428.35 198,530,038.54
Auxiliary 658.45 19 1 .11
Machinery
Co., Ltd.
Zhejiang
Huayuan
Steam 75,442,9 91,042,867.3 32,295,367.8 32,295,367
16,167,123.78 91,610,042.05 33,059,129.49 33,059,129.49 16,653,192.84 107,696,060.16
Turbine 18.27 2 4 .84
Machinery
Co., Ltd.
Hangzhou
Guoneng
Steam 285,613, 302,097,628. 226,870,725. 227,405,37
76,549,971.57 362,163,840.82 241,413,460.77 534,650.00 241,948,110.77 74,614,838.31 376,712,466.72 534,650.00
Turbine 869.25 41 33 5.33
Engineering
Co., Ltd.
In RMB： 元
Amount of current period Amount of previous period
Subsidiaries Name
Cash flow for Cash flow for
Turnover Net profit Total Misc Gains Turnover Net profit Total Misc Gains
business activities business activities
99
杭汽轮机股份有限公司 2015 年半年度报告
Zhejiang Steam trubine Packaged
87,432,537.33 10,482,718.27 10,482,718.27 33,589,568.13 110,761,508.75 88,919,156.86 88,919,156.86 16,378,793.87
Technology Development Co., Ltd.
Hangzhou Zhongneng Steam
240,412,407.45 10,375,173.77 10,375,173.77 30,147,920.45 365,627,789.07 33,572,063.79 33,572,063.79 30,147,920.45
turbine PowerCo., Ltd.
Hangzhou Steam Turbine Casting
130,950,701.52 -476,368.10 -476,368.10 29,971,613.39 152,915,382.21 6,661,654.49 6,661,654.49 7,961,196.57
Co., Ltd.
Hangzhou Steam Turbine
77,342,694.24 40,492,049.42 40,492,049.42 -124,069.76 77,796,566.20 45,648,297.22 45,648,297.22 1,063,553.77
Machinery Equipment Co., Ltd.
Hangzhou Steam Turbine Auxiliary
61,537,320.08 52,136,843.65 52,136,843.65 -26,176,905.93 81,069,606.25 49,693,413.51 49,693,413.51 -14,480,315.66
Machinery Co., Ltd.
Zhejiang Huayuan Steam Turbine
45,142,364.93 19,145,261.19 19,145,261.19 3,968,911.01 43,169,239.60 19,065,567.83 19,065,567.83 27,988,750.01
Machinery Co., Ltd.
Hangzhou Guoneng Steam Turbine
191,568,130.71 21,007,165.35 21,007,165.35 34,247,826.55 219,182,613.76 20,932,753.99 20,932,753.99 19,619,086.15
Engineering Co., Ltd.
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杭汽轮机股份有限公司 2015 年半年度报告
X. Risks related to financial instruments
The objective of the Company’s risk management is to achieve a balance between the risk and gains. Constrain
the negative influence on business operation to the lowest limit, and maximum the interests of shareholders and
other equity holders. With regard to this target, the basic policies of the Company are; locate and analyse the risks,
set appropriate bottom line for risks, and manage and monitor on each risk and constrain them in a certain extent.
Risks attached to financial instruments are mainly credit risks, liquidity risks, and market risks.
The following risk managing policies have been examined and approved by the management:
(I) Credit risks
Credit risks are introduced when one party of the financial instrument failed to exercise its liabilities and then
caused financial loss to another.
The credit risks of the Company are mainly composed by bank savings and receivable accounts. Following
measurements are adopted to control these risks:
1. Bank deposit
The Company puts its bank savings in financial institutions with higher credit ranks, therefore with lower risks.
2. Account receivable
The Company performs credit assessment on the clients on periodic and constant basis. Results suggested by the
assessment are used by the Company to determine clients with higher ranks and to overlook the rest. This was
conducted to avoid risks brought by material bad debts.
(1) Keep constant awareness on risks and supervising receivable accounts.
(2) Keep tracking every detail of business and accounting practices. Trade payment records are maintained as
important references to the ranking of client credit. Dynamic management is performed on the clients latest
situation and policies are made relatively.
(3) Keep on with direct sales and ensure every contract is followed by corresponding personnel.
For the Company only trade with parties with good credit ranks, no security property is needed. As of June
30,2015, the credit risks feature collectiveness within the Company. 49.02% of the receivable accounts were
attributable to top 5 clients. The Company holds no property as pledge or other credit ranking up.
Analyzing of receivable accounts neither due nor impaired, and those have due but not impaired:
End of term
Overdue but not
impaired
Not overdue and not Within 1 year 1-2 years Over 2
Items impaired years Total
Bill receivable 680,533,170.35 680,533,170.35
Subtotal 680,533,170.35 680,533,170.35
(Continue)
End of term
Overdue but not impaired Total
Within 1 year 1-2 years Over 2
Items years
Bill receivable 701,109,938.01 701,109,938.01
Subtotal 701,109,938.01 701,109,938.01
Categorizing of financial liabilities on remained period to due
End of term
Items Contract amount not Over 3
Book value Within 1 year 1-3 years
discounted years
Financial liabilities
Short-term loans 193,300,000.00 198,433,402.27 198,433,402.27
Bill payable 123,907,495.41 123,907,495.41 123,907,495.41
Long-term loan 23,700,000.00 27,264,332.88 105,523.29 27,158,809.59
Account payable 962,111,122.36 962,111,122.36 962,111,122.36
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杭汽轮机股份有限公司 2015 年半年度报告
Other account
26,359,396.25 26,359,396.25 26,359,396.25
payable
Subtotal 1,329,378,014.02 1,338,075,749.17 1,310,916,939.58 27,158,809.59
-
（Continue）
Beginning of term
Items Contract amount not Over 3
Book value Within 1 year 1-3 years
discounted years
Financial liabilities
Short-term loans 198,600,000.00 205,225,558.91 205,225,558.91
Bill payable 150,763,452.14 150,763,452.14 150,763,452.14
Long-term loan 18,500,000.00 21,917,202.85 21,917,202.85
Account payable 763,085,718.92 763,085,718.92 763,085,718.92
Other account
29,597,889.12 29,597,889.12 29,597,889.12
payable
Subtotal 1,160,547,060.18 1,170,589,821.94 1,148,672,619.09
21,917,202.85
(II) Liquidation risks
Liquidation risks are the possibilities of short in cash at fulfilling liabilities of payment or settlement for financial
assets. They may be caused by failing to cash financial assets at fair value instantly; debtors’ failing of paying
debts due; debts due before schedule; or failing of generating expected cash flow.
To handle these risks, the Company adopted multiple measures such as note clearance and bank loans.
Long-term and short-term financing approaches were used to maintain balance between constancy and flexibility.
The Company has obtained credit from multiple banks to satisfy the needs of business operation and capital
output.
Categorizing of financial liabilities on remained period to due
(III) Market risks
Market risks are those brought by change of fair value or expectable cash flow of financial instruments due to
change of market prices, mainly interest risks and exchange rate risks.
1. Interest risks
Interest risks are those brought by change of fair value or expectable cash flow of financial instruments due to
change of interest rates, mainly regards the loans at floating interest rates.
2. Foreign currency risks
Foreign currency risks (exchange rate risks) are those caused by change of fair value or expectable cash flow of
financial instruments due to fluctuation of exchange rates. These risks are mainly related to foreign currency
assets and liabilities. The Company operates in mainland China and mostly uses RMB as standard currency,
therefore no major risks regarding exchange rates.
For details of foreign currency assets and liabilities, please go to the descriptions in the notes to the
consolidated financial statements.
The disclosure of the fair value
1.Closing fair value of assets and liabilities calculated by fair value
Not applicable
XI. Related parties and related transactions
1.Parent company of the Compnay
Name of the parent Shareholding of the Voting rights of the
Reg.Add Business property Registered capital
Company parent company parent Company %
Hangzhou Steam
Hangzhou China Manufacturing RMB 800 million 63.64% 63.64%
Turbine Group
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杭汽轮机股份有限公司 2015 年半年度报告
Notes:
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of the
Company.。
2.Subsidiaries
For details of subsidiaries please go to the statement of equities in other entities.
3. Joint ventures and associated enterprises of the Company
Not applicable
4. Other related parties
Name of the related parties Relationship with the Company
Hangzhou Steam turbine Automobile sales service Co., Ltd. Affiliate of the Group
Hangzhou Hangfa Power Generating Equipment Co., Ltd. Affiliate of the Group
Hangzhou Nanfangtongda Gears Co., Ltd. Affiliate of the Group
Hangzhou Nanhua Wooden Packaging Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Industrical Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Technologies Co., Ltd. Affiliate of the Group
HSTG Technology Association Affiliate of the Group
Hangzhou Steam Turbine Engineering Co., Ltd. Affiliate of the Group
Hangzhou Relian Group Co., Ltd. Affiliate of the Group
Zhejiang Hanglian Steel & Iron Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Electronic Valve Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Compressor Co., Ltd. Affiliate of the Group
HSTG(Hangzhou) United Institutes Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Group Equipment Co., Ltd. Affiliate of the Group
Greenesol Co.(India) Affiliates of the auxiliary Co
Zhejiang Tianhang Steam Turbine Auxiliary Machinery Co., Ltd. Affiliates of the auxiliary Co
4.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
Over the
Trading limit
Ralated parties Content Reporting period trading Prior period
approved
limit or not
Hangzhou Hangfa Power Generating
Generators 38,940,170.91 38,940,170.91 No 79,987,800.43
Equipment Co., Ltd.
Hangzhou Steam turbine Automobile
Transportation , repair , etc. 26,837,296.97 26,837,296.97 No 26,300,402.48
sales service Co., Ltd.
Greenesol Co.(India) Generators 25,380,594.36 25,380,594.36 No 21,433,795.50
Hangzhou Steam Turbine Group Co.,
Water and electricity 6,473,823.78 6,473,823.78 No 8,259,161.07
Ltd.
103
杭汽轮机股份有限公司 2015 年半年度报告
Hangzhou Nanhua Wooden Packaging
Packaging 4,800,810.58 4,800,810.58 No 5,937,357.17
Co., Ltd.
Hangzhou Nanfang Tongda Gears Co.,
Gear boxes 1,046,126.50 1,046,126.50 No 8,619,991.46
Ltd.
Hangzhou Steam Turbine Industrial Co., Raw materials processing ,
973,521.04 973,521.04 No 1,867,077.55
Ltd. cleaning fees, etc.
Hangzhou Steam TurbineValve Co., Ltd. Part 770,000.00 770,000.00 No
HSTG Technology Association Industrial cooperation 169,230.76 169,230.76 No 599,145.24
Subtotal 105,391,574.90 105,391,574.90 No 153,004,730.90
Related transactions regarding sales of goods or providing of services
In RMB
Subjects of the related
Realted parties Current term Same period of last term
traqnsactions
Hangzhou Hangfa Power Generating Equipment Cast part, industrial
6,359,396.39 5,948,399.41
Co.,Ltd. cooperation
Hangzhou Steam Turbine Engineering Co., Ltd. Steam turbine 3,447,863.25 7,963,148.72
Hangzhou Steam Turbine Power Group
Steam turbine -531,623.94
Equipment Co., Ltd.
HSTG Technology Association Industrial cooperation 136,923.08 206,153.84
Greenesol Co.(India) Steam turbine 1,101,423.11 257,008.38
Hangzhou Steam Turbine Automobile Sales
Service Co., Ltd. Small amount materials 250.03 207.82
Hangzhou Nanhua Wooden Packaging Co., Ltd. Waste bin packing 854.70
Hangzhou Steam Turbine Compressor Co., Ltd. Rent 70,050.00
Subtotal 10,585,136.62 14,374,918.17
（1）Related trusteeship/contract
Not applicable
（2）Information of related lease
The Company was lessor
In RMB
Category of lease The lease income confirmed in The lease income confirmed in
Name of lessee
assets this year last year
Hangzhou Steam Turbine Compressor
Office 70,050.00
Co., Ltd.
Subtotal 70,050.00
The company was lessee
In RMB
104
杭汽轮机股份有限公司 2015 年半年度报告
Category of leased The lease income cnfirmed in
Lessor Gategory of leased assets
assets this year
Hangzhou Steam Turbine Power Group
Co., Ltd. House and Building 989,013.38 711,175.20
Hangzhou Steam Turbine Automobile
Sales Service Co., Ltd. Site leasing 3,611,046.39 2,892,592.00
Subtotal 4,600,059.77 3,603,767.20
（3）Related-party guarantee
The Company was guarantor
In RMB
Execution accomplished
The Guarantor Guarantee amunt Start date End date
or not
Hangzhou Steam Turbine December 19, December 17,
100,000,000.00 No
Group 2014 2015
Notes
（4）Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements
2,819,750.04 5,529,472.49
5. Receivables and payables of related parties
（1）Receivables
In RMB
End of term Beginning of term
Name Related party
Book balance Bad debt provision Book balance Bad debt provision
Account Hangzhou Hangfa Power
Generating Equipment Co., 15,264,771.71 886,557.62 10,824,277.96 541,213.90
receivable Ltd.
Hangzhou Steam Turbine
Engineering Co., Ltd. 8,070,505.99 1,462,061.10 8,351,855.99 1,693,436.30
Hangzhou Steam Turbine
Power Group Engineering 310,060.00 93,018.00 1,017,560.00 447,753.00
Co., Ltd.
Hangzhou Steam Turbine
258,500.00 163,500.00 258,500.00 115,100.00
Power Group Co., Ltd.
Hangzhou Nanfangtongda
Gears Co., Ltd. 4,434.00 2,660.40
Hangzhou Steam Turbine
Automobile Sales Service Co., 1,441.84 72.09 1,149.30 57.47
Ltd.
Subtotal 23,905,279.54 2,605,208.81 20,457,777.25 2,800,221.07
Hangzhou Hangfa Power
Prepayment Generating Equipment Co., 33,805,625.00 22,009,425.00
Ltd.
Hangzhou Steam Turbine
Engineering Co., Ltd. 540,000.00
HSTG (Hangzhou) United
Institutes Co., Ltd. 80,000.00
105
杭汽轮机股份有限公司 2015 年半年度报告
Hangzhou Steam Turbine
49,244.66 107,715.92
Power Group Co., Ltd.
Hangzhou Steam
900,900.00
TurbineValve Co., Ltd.
Subtotal 34,474,869.66 23,018,040.92
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Hangzhou Hangfa Power Generating Equipment
Account payable Co., Ltd. 82,404,560.15 79,049,778.95
Hangzhou Steam Turbine Power Group Co., Ltd. 8,535,691.05 1,134,000.82
Greenesol Co.(India) 8,495,882.02 11,133,713.63
Hangzhou Steam Turbine Automobile Sales
6,114,232.76 1,458,189.74
Service Co., Ltd
Hangzhou Nanhua Wooden Packaging Co., Ltd. 380,511.90 313,983.80
Hangzhou Nanfang Tongda Gears Co., Ltd. 129,011.00 982,000.00
Hangzhou Steam Turbine Industrial Co., Ltd. 91,592.87 203,484.86
Subtotal 106,151,481.75 94,275,151.80
Advances received Hangzhou Steam Turbine Engineering Co., Ltd. 56,329,840.00 15,979,200.00
Hangzhou Steam Turbine Compressor Co., Ltd. 14,589,000.00 14,190,000.00
Greenesol Co.(India) 481,337.18
Subtotal 71,400,177.18 30,169,200.00
Other account
Hangzhou Steam Turbine Group 6,437,767.21 5,688,406.79
payable
Hangzhou Steam Turbine Automobile Sales
Service Co., Ltd. 101,000.00
Subtotal 6,538,767.21 5,688,406.79
XII. Commitment and Contingency Issues
(I) Material commitment issues
1. External investment contracts engaged but not exercised or not fully exercised and related financial outflow
The Company invested RMB10 million to be one of the partners of Hangzhou Changdi Share Investment
Partnership (with limited liabilities) in 2011. 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. Extra RMB5.9756 million was inputted
in , accumulated to RMB33.4976 million thereof.
2. Outsourcing contracts engaged with large amounts and are under processing or preparation
Capital commitment related to construction of workshops or purchasing of equipment by the Company or
subsidiaries is amounted to RMB144.7080 million.
Contingent issues
(1) Major contingencies on balance sheet date
Note: Please see "Note IX, legal rights in other subjects" the relevant content for searching for the contents which
were related to the joint venture or relevant investment and debts of it.
(2) For no major contingencies disclosed, explain reasons
The Company has no major contingencies should be disclosed
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杭汽轮机股份有限公司 2015 年半年度报告
XIII. Other Material Issues
Segment information
1. Recognition of segments and accounting policies
Business segments are determined according to the administration structure, management requirement, and
internal reporting mechanism. Segments are parts of the Company’s business satisfying all of the following
conditions:
(1) Generate revenue and expenses in daily operations;
(2) Operational results can be assessed by the management to decide the resources to be allocated;
(3) Financial position, business results, and cash flow of the part is accessible through analyzing.
2. Reasons of not being able to report about the segments
The Company’s business range is relatively narrow and mainly involved in producing and selling of steam
turbines, gas turbines and auxiliary machinery and parts. It is regarded as an integral business by the management.
Therefore segment report is not included in this report.
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杭汽轮机股份有限公司 2015 年半年度报告
XIV. Notes to the Financial Statements of the Parent Co.
(I) Notes to items of parent company financial statements
1. Account receivable
（1）Detailed categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Proporti Providin Book value Proporti Providing Book value
Amount Amount Amount Amount
on % g rate% on % rate%
Receivables with major individual
amount and had debt provision
provided individually
Receivables provided bad debt
provision in cridit risk groups 2,170,510,438.82 100.00% 465,632,819.30 21.45% 1,704,877,619.52 2,455,949,951.86 98.80% 444,969,697.87 18.12% 2,010,980,253.99
Account receivable with minor
individual amount but bad debt 29,819,607.69 1.37% 29,819,607.69 100.00% 29,819,607.69 1.20% 29,819,607.69 100.00%
provision is provided
Total 2,200,330,046.51 100.00% 495,452,426.99 21.45% 1,704,877,619.52 2,485,769,559.55 100.00% 474,789,305.56 19.10% 2,010,980,253.99
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
In RMB
End of term
Age
Account receivable Bad debt provision Proportion%
Subitem within 1 year
Within 1 year 627,217,036.88 31,360,851.84 5.00%
Subwithin 1 year 627,217,036.88 31,360,851.84 5.00%
1-2 years 639,374,216.28 63,937,421.63 10.00%
2-3 years 306,645,757.10 91,993,727.13 30.00%
Over 3 years 383,064,191.10 278,340,818.70
3-4 years 233,046,782.17 139,828,069.30 60.00%
4-5 years 57,523,297.63 46,018,638.10 80.00%
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杭汽轮机股份有限公司 2015 年半年度报告
Over 5 years 92,494,111.30 92,494,111.30 100.00%
Total 1,956,301,201.36 465,632,819.30
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杭汽轮机股份有限公司 2015 年半年度报告
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
Not applicable
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB25,260,819.53; recovery or payback for bad debts Amount
is RMB 0.00.
（3）The current accounts receivable write-offs situation
In RMB
Items Amount written off
Zhejiang Jiahua Energy Chemical Co., Ltd. 1,920,000.00
Oriental electrical Group Beijing Company 1,599,316.10
Other 1,078,382.00
Account receivables actually written-off during the reporting period：
In RMB
Nature of account Reason for Verification Arising from related
Name Amount written off
receivable written-off procedures transactions(Y/N)
The examined and ad
Zhejiang Jiahua
opted to General
Energy Chemical Co., Goods 1,920,000.00 Difficult to recover No
manager of the office
Ltd.
meeting
The examined and ad
Oriental Electrical
opted to General
Group .Beijing Goods 1,599,316.10 Difficult to recover No
manager of the office
Company
meeting
The examined and ad
opted to General
Other Goods 1,078,382.00 Difficult to recover No
manager of the office
meeting
Total -- 4,597,698.10 -- -- --
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Total accounts receivable due from the top five debtors of the Group in the current period is RMB 1，171，206，
702.14, accounting for 53.23% of the total accounts receivable as at the end of the current period and the total
provision for bad and doubtful debts made as at the end of the current period is RMB 234，841，090.21.
（5）Other account receivable derecognied due to the transfer of financial assets
Not applicable
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杭汽轮机股份有限公司 2015 年半年度报告
（6）Amount of transfer other account receivable and assets and liabilities formed by its continuous invovement.
Not applicable
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杭汽轮机股份有限公司 2015 年半年度报告
5. Other account receivable
(1) Detailed categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Book value Proporti Book value
Amount Proportion Amount Proportion Amount Proportion Amount
on
Other receivables with major
individual amount and had debt
provision provided individually
Other receivables provided bad
debt provision in cridit risk 27,283,797.68 88.03% 2,348,371.33 8.61% 24,935,426.35 35,956,830.09 90.65% 2,419,017.74 6.73% 33,537,812.35
groups
Other account receivable with
minor individual amount but bad 3,710,320.94 11.97% 3,710,320.94 100.00% 3,710,320.94 9.35% 3,710,320.94 100.00%
debt provision is provided
Total 30,994,118.62 100.00% 6,058,692.27 19.55% 24,935,426.35 39,667,151.03 100.00% 6,129,338.68 15.45% 33,537,812.35
Other receivables with individually significant amount and provision for bad and doubtful debts individually provided at the end of the reporting period.
Not applicable
Other receivable accounts in the group on which bad debt provisions are provided on age basis
In RMB
End of term
Age
Other receivable account Bad debt provision Proportion%
Subitem within 1 year
Within 1 year 6,457,836.69 322,891.83 5.00%
Subtotal within 1 year 6,457,836.69 322,891.83 5.00%
1-2 years 1,827,434.20 182,743.42 10.00%
2-3 years 862,242.00 258,672.60 30.00%
Over 3 years 2,217,163.40 1,584,063.48
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3-4 years 1,557,999.80 934,799.88 60.00%
4-5 years 49,500.00 39,600.00 80.00%
Over 5 years 609,663.60 609,663.60 100.00%
Total 11,364,676.29 2,348,371.33
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Other receivables with provision for bad and doubtful debts based on the balance percentage method in the
portfolio
Not applicable
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio
Not applicable
(2) Bad debt provision accrual, received or reversed in current period
Bad debt provision of RMB-70,646.41 was provided this period without recovering or writing back of provisions.
(3) Combination of other receivable accounts
In RMB
Account property End of term Beginnin gof term
Deposit 9,752,744.00 17,537,246.23
Provisional payment receivalbe 20,859,813.45 21,438,383.99
Petty cash 365,000.00 237,970.00
Other 16,561.17 453,550.81
Total 30,994,118.62 39,667,151.03
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
In RMB
Percentage in total other
Name of the company Account property Book balance Age Bad debt provision
receivable %
Over 3
Shanghai Customs Waigaoqiao Office Deposit in custom 3,710,320.94 11.97% 3,710,320.94
years
Guodian Trust Bidding Co., Ltd. Bidding deposit 3,188,750.00 0-4 years 10.29% 520,597.50
Over 3
Inner Mongolia Bidding Co., Ltd. Bidding deposit 550,000.00 1.77% 330,000.00
years
Guodian Longyuan Power Technology
Bidding deposit 500,000.00 1-2 years 1.61% 50,000.00
Engineering Co., Ltd.
Within 1
Jian Group Co., Ltd. Bidding deposit 500,000.00 1.61% 25,000.00
year
Total -- 8,449,070.94 -- 27.26% 4,635,918.44
（5）Account receivable involving government subsidies
Not applicable
（6）Other account receivable derecognied due to the transfer of financial assets
Not applicable
（7）Amount of transfer other account receivable and assets and liabilities formed by its continuous invovement.
Not applicable
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杭汽轮机股份有限公司 2015 年半年度报告
3. Long-term share equity investment
(1) Details
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment on subsidiaries 502,919,378.03 502,919,378.03 502,919,378.03 502,919,378.03
Investment to joint ventures
and associated enterprises
Total 502,919,378.03 502,919,378.03 502,919,378.03 502,919,378.03
（1）Investment to the subsidiary
In RMB
Withdrawn
impairment Closing balance of
Name Opening balance Increase Decrease Closing balance
provision in the impairment provision
reporting period
Turbine Co 20,000,000.00 20,000,000.00
Heavy Industry Co. 360,000,000.00 360,000,000.00
Auxiliary Machine Co 46,286,513.41 46,286,513.41
Packaged Co. 29,800,389.56 29,800,389.56
Zhongneng Co. 27,644,475.06 27,644,475.06
Machinery Co. 7,968,000.00 7,968,000.00
Casting Co. 11,220,000.00 11,220,000.00
Total 502,919,378.03 502,919,378.03
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Revenue Cost Revenue Cost
Main business 605,562,263.07 411,394,602.32 1,188,528,375.95 770,843,032.46
Other business 15,011,785.21 13,842,788.87 12,949,928.00 10,329,735.55
Total 620,574,048.28 425,237,391.19 1,201,478,303.95 781,172,768.01
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income by Cost method 146,450,783.00 194,102,225.00
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杭汽轮机股份有限公司 2015 年半年度报告
Long-term equity investment income by equity method
Investment income from the disposal of
long-term equity investment
Investment income from holding the financialasset of which
fair value recognized in profit or loss
Investment income from disposal of financialassets measured
by fair value with changes in fair value recognised in profit
or loss
Hold the investment income during from available-for-sale
financial assets
Investment income gain from available for sale financial
assets
Investment income from the disposal of available-for-sale
financial assets
Investment income from disposal of financialassets available
for sale
Reverse repurchase treasury investment income 438,410.96 1,750,584.48
Total 146,889,193.96 195,852,809.48
XV. Supplement information
1. Particulars about current non-recurring gains and loss
In RMB
Items Amount Notes
Gains/losses from the disposal of non-current asset -293,394.88
Tax refund or mitigate due to examination-and –approvalbeyond power or without official approval document
Governmental subsidy calculated into current gains and loess（while closely related with the normal business of
the Company, excluding the fixed-amount or fixed-proportion governmental subsidy according to the unified 3,309,950.00
national standard）
Capital occupancy expense, collected from non-financialenterprises and recorded in current gains and losses.
Income from the exceeding part between investment costofthe Company paid for obtaining subsidiaries ,
associates and joint-ventures and recognizable net assets fair value attributable to the Company when
acquiring the investment
Gains and losses from exchange of non-monetary assets
Gains and losses from assets under trusted investment or management
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Various provision for impairment of assets withdrew duetoact of God, such as nutural disaster
Gains and losses from debt restructuring
Enterprise reorganization expense(eg.expenditure of staffreplacement and integration change)
Gains and losses of the part arising from transaction in which price is not fair and exceeding fair value
Current net gains and losses occurred from period-begin tocombination day by subsidiaries resulting from
business combination under common control
Gains and losses arising from contingent proceedings irrelevant to normal operation of the Company
Gains and losses from change of fair values of held-for-transaction financial assets and financial liabilities
except for the effective hedge business related to normal business of the Company, and investment income 10,489,094.59
from disposal of transactional financial assets and liabilities and financial assets available for sale
Switch-back of provision of impairment of account receivable which are treated with separate depreciation test
Gains and losses obtained from external trusted loans
Gains and losses arising from change of fair value of investment real estate whose follow-up measurement are
conducted according to fair value pattern.
Affect on current gains and losses after an one-time adjustment according to requirements of laws and
regulations regarding to taxation and accounting
Trust fee obtained from trust operation
Other non-operating income and expenditure except for the aforementioned items 2,620,570.67
Other non-business income and expenditures other than the above
Less: Influenced amount of income tax 3,247,782.47
Amount of influence of minority interests 996,730.88
Total 11,881,707.03 --
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
shareholders of the Company -0.23% -0.01 -0.01
Net profit attributable to common
shareholders of the Company after
deduction of non-recurring profit -0.51% -0.03 -0.03
and loss
3.The differences between domestic and international accounting standards
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杭汽轮机股份有限公司 2015 年半年度报告
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
In RMB
Net profit Net asset
Current term Amount of last term End of term Beginning of term
On Chinese
-10,282,333.32 196,174,851.01 4,365,106,939.87 4,450,598,244.32
accounting standard
Items and amounts adjusted on IAS
On International
accounting standard
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
In RMB
Net profit Net assets
Current term Amount of last term End of term Beginning of term
On Chinese
Accounting -10,282,333.32 196,174,851.01 4,365,106,939.87 4,450,598,244.32
Standard
Accounts and amounts adjusted according to overseas accounting standard
On International
accounting standard
3. Statement on the differences of accounting information on IAS and domestic accounting standard
Not applicable
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杭汽轮机股份有限公司 2015 年半年度报告
X. Documents for Reference
(I) Financial Statements signed and sealed by the Chairman of the Board , chief accountant and director of
the financial division;
(II) All the originals of the Company’s documents and public notices disclosed in the newspapers
designated by China Securities Regulatory Commission in the report period;
(III) Original copy of Resolutions of the 22th Meeting of the 6th Term of Board.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 25, 2015
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