杭汽轮机股份有限公司 2015 年第三季度报告 Stock code:200771 Stock ID:Hangqilun B Announcement No.2015-72 Hangzhou Steam Turbine Co., Ltd. The 3rd Quarterly Report 2015(Full Text) 1 Important notes 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 Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr. Zheng Bin, The Company Leader, Mr. Pu Yangshuo, Chief financial officer and the Mr.Zhao Jiamao, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report. 1 杭汽轮机股份有限公司 2015 年第三季度报告 II.Main financial data and changes of shareholders (1)Main accounting data and financial Index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not. No As at the end of the As at the end of last Changed (%)over end of prev. year reporting period year Gross assets(RMB) 7,878,473,837.07 7,552,058,947.02 4.32% Net assets attributable to the shareholders of the listed company 4,285,742,488.14 4,450,598,244.32 -3.70% (RMB) Increase/decrease Between beginning over the same of the year to the Changed (%)over Reporting period period of last year end of the report end of prev. year (%) period Operating income(RMB) 493,672,866.88 -30.13% 1,548,669,193.12 -36.79% Net profit attributable to the shareholders of the listed company -78,993,858.42 -546.97% -89,276,191.74 -148.53% (RMB) Net profit after deducting of non-recurring gain/loss attributable to -88,136,672.99 -457.27% -110,300,713.34 -166.61% the shareholders of listed company (RMB) Cash flow generated by business -- -- 275,609,830.02 30.76% operation, net(RMB) Basic earning per share(RMB/Share) -0.105 -546.97% -0.118 -148.36% Diluted gains per -0.105 -546.97% -0.118 -148.36% share(RMB/Share)(RMB/Share) Weighted average income/asset ratio -1.83% -1.54% -2.04% -6.35% (%) Items and amount of non-current gains and losses In RMB Amount (Year-beginning to the Items Notes end of the report period.) Non-current asset disposal gain/loss(including the write-off part for -321,207.57 which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding 9,525,674.00 those closely related to the Company’s business and granted under the 2 杭汽轮机股份有限公司 2015 年第三季度报告 state’s policies) Gain/loss from change of fair value of transactional financial asset and liabilities, and investment gains from disposal of transactional financial 13,493,718.06 assets and 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 6,641,505.10 Less:Amount of influence of income tax 5,396,149.24 Influence on minority shareholders’ equity (after tax) 2,919,018.75 Total 21,024,521.60 -- 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. (II) Total number of shareholders and shareholding of top 10 shareholders by the end of the report period (1) Total number of common shareholders and shareholding of top 10 common shareholders by the end of the report period In Shares Total number of shareholders at the 15,540 end of report period Particular about shares held by top ten shareholders Amount of Pledging or Share tradable freezing Properties of Shareholder name proportion Quantity shares with shareholder Status of Quan % Conditional the shares tity held State-owned 479,824,80 Hangzhou Steam Turbine Power Group Co., Ltd. 63.64% 479,824,800 legal person 0 GUOTAI JUNAN SECURITIES(HONGKONG) Foreign Legal 1.89% 14,284,477 0 LIMITED person Foreign Legal First Shanghai Securities Co., Ltd. 0.68% 5,095,921 0 person Foreign Legal NORGES BANK 0.57% 4,303,675 0 person CHINA INT'L CAPITAL CORP HONG KONG Foreign Legal 0.41% 3,066,768 0 SECURITIES LTD person Foreign Legal GIC PRIVATE LIMITED 0.35% 2,665,330 0 person VANGUARD TOTAL INTERNATIONAL STOCK Foreign Legal 0.30% 2,286,336 0 INDEX FUND person BOCHK INVESTMENT FUNDS-BOCHK CHINA Foreign Legal 0.30% 2,273,227 0 GOLDEN DRAGON FUND person 3 杭汽轮机股份有限公司 2015 年第三季度报告 Foreign Legal AUSTRALIANSUPER PTY LTD 0.28% 2,108,321 0 person Domestic Xia Zulin natural person 0.28% 2,100,000 0 shares Shareholding of top 10 shareholders of unrestricted shares Quantity of Share type unrestricted shares Name of the shareholder held at the end of Share type Quantity the reporting period Foreign shares placed in GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 14,284,477 14,284,477 domestic exchange Foreign shares placed in First Shanghai Securities Co., Ltd. 5,095,921 5,095,921 domestic exchange Foreign shares placed in NORGES BANK 4,303,675 4,303,675 domestic exchange CHINA INT'L CAPITAL CORP HONG KONG SECURITIES Foreign shares placed in 3,066,768 3,066,768 LTD domestic exchange Foreign shares placed in GIC PRIVATE LIMITED 2,665,330 2,665,330 domestic exchange VANGUARD TOTAL INTERNATIONAL STOCK INDEX Foreign shares placed in 2,286,336 2,286,336 FUND domestic exchange BOCHK INVESTMENT FUNDS-BOCHK CHINA GOLDEN Foreign shares placed in 2,273,227 2,273,227 DRAGON FUND domestic exchange Foreign shares placed in AUSTRALIANSUPER PTY LTD 2,108,321 2,018,321 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 whether there is any relationship Explanation on associated relationship among the aforesaid among the 10 unrestricted current-share holders. (2) None of shareholders other shareholders is acting-in-concert as described by Administration Rules of Information Disclosure on Change of Shareholding Position. No agreed repurchasing trade by shareholders in the report period 2. Total of shareholders and top-10 preferential shareholders at end of the report period: Not applicable III Significant Events I. Particulars and causations of material change in major accounting items and indices. Balance sheet items End of term Beginning of term Scale of Remarks on the change change Inventories 2,238,230,893.16 1,594,074,228.69 40.41% Mainly caused by the increase of pause and delay of the headquarters’ delivery unit. Account payables 1,011,671,506.98 763,085,718.92 32.58% Mainly caused by the increase of 4 杭汽轮机股份有限公司 2015 年第三季度报告 payables for the headquarters’ major accessories. Tax payable 17,666,778.67 126,091,260.73 -85.99% Mainly caused by the decrease of the current sales, which brought in decrease of related tax expense accordingly Income statement items End of term Same period of last Scale of Remarks on the change term change Operation income 1,548,669,193.12 2,449,907,171.38 -36.79% Mainly caused by the recession in the whole equipment manufacturing industry, which brought in a falling in the company’s sales performance Operation cost 998,351,747.61 1,501,106,574.52 -33.49% Mainly caused by the decrease of sales income, which brought in decrease of sales cost accordingly Financial expenses 3,734,964.80 13,514,406.60 -72.36% Mainly caused by decrease of the current average bank loan balance, which brought in decrease of related interest expense accordingly Income tax expenses 11,535,844.37 41,577,702.02 -72.25% Mainly caused by the falling of the current profit, which brought in decrease of income tax expense accordingly Asset impairment loss 67,120,657.09 107,639,925.91 -37.64% Mainly caused by the accounting estimate of the current changes in the bad-debt provision of receivables Cash Flow statement items End of term Same period of last Scale of Remarks on the change term change Net cash flow generated by -123,207,589.47 -239,012,783.71 -48.45% Mainly caused by the current investment purchase of financial products decreased year on year Net cash flow generated by -129,049,862.51 -406,522,951.44 -68.26% Mainly caused by the repayment financing to the bank loan and the dividend distribution Net increasing of cash and 26,366,068.26 -434,376,078.12 -106.07% Mainly caused by the increase of cash equivalents net cash flow generated by the current investment and financing activity 5 杭汽轮机股份有限公司 2015 年第三季度报告 II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. For Hangzhou Steam Turbine Group, the holding shareholder of the Company, is according with the unified deployment of Hangzhou State-owned Asset Commission, the Company is arranging Turbine Group Mixed Ownership Reform. This reform may bring in significant adjustments and changes to the holding shareholders and shareholding structure of Turbine Group which closely relates to the Company. During the suspending period, the Company will fulfill the obligation of disclosing information according to the reform progress and relevant provisions. Description of the website for disclosing Overview of material matters Date of disclosing provisional announcements For Hangzhou Steam Turbine Group, the holding shareholder of http://www.cninfo.com.cn (2015-33)、 the Company, is arranging May 29,June 5, June 12, June 19, June 26, July (2015-34)、(2015-36)、(2015-37)、 Turbine Group Mixed Ownership 3, July 10,July 17,July 24, July 31,August 7, (2015-38)、 (2015-39)、(2015-40)、 Reform, and after the Company’s August 14,August 21,August 28,September (2015-42)、(2015-43)、2015-44)、 application to Shenzhen Stock 8,September 15,September 22 and September (2015-45)、(2015-46)、 (2015-47)、 Exchange, the Company’s shares 29. (2015-62)、(2015-63)、(2015-64)、 suspended trading as of May 29, (2015-65)、(2015-66) 2015. III.The commitments of the Company and its shareholders holding over 5% of the Company’s total shares in the report year of extending to the report year from previous year. IV.Prediction of Business performance for 2015. According to the financial condition and production management achievement of the first three quarters and the estimation of the fourth quarter’s operation performance, the net profit attributable to listed company’s shareholders of the Company of 2015 is expected to be loss. Investors please be aware of the investment risks. For annual performance changes of 2015, investors please follow the related announcements of performance projection of 2015 annual reports published by the Company during the period of statutory disclosure. V. The Company did not have any security investments during the reporting period. VI. The Company did not hold any equity interests in other listed companies as at the end of the reporting period VII.The Company did not hold any derivative investments during the reporting period. VIII. Reception of investigation, communication, or visiting in report period. Content of discussion and materials Date Place Mode Type Visitor provided The mid-term and long-term Hangzhou Steam Turbine On-site Individua August 7, 2015 Individual development plan of the company, Co., Ltd. research l industry condition, market 6 杭汽轮机股份有限公司 2015 年第三季度报告 Investigat sharehold competitiveness, the delisting of the ion er company’s shares , the status of mixed ownership’s reform VII. Reception of investigation, communication, or visiting in report period 7 杭汽轮机股份有限公司 2015 年半年度报告 IV. Financial statement 1. Financial statement 1.Consolidated Balance sheet Prepared by : Hangzhou Steam Turbine Co., Ltd. In RMB Items Year-end balance Year-beginning balance Current asset: Monetary fund 640,324,132.17 613,958,063.91 Settlement provision Outgoing call loan Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable 517,304,764.42 701,109,938.01 Account receivable 2,088,683,149.48 2,388,919,641.98 Prepayments 183,746,143.61 172,022,768.39 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable Dividend receivable Other account receivable 28,766,523.96 25,382,223.32 Repurchasing of financial assets Inventories 2,238,230,893.16 1,594,074,228.69 Assets held for sales Non-current asset due in 1 year Other current asset 511,584,141.64 382,070,235.56 Total of current assets 6,208,639,748.44 5,877,537,099.86 Non-current assets: Loans and payment on other’s behalf disbursed Disposable financial asset 509,409,741.77 498,990,862.94 Expired investment in possess 8 杭汽轮机股份有限公司 2015 年半年度报告 Long-term receivable Long term share equity investment Property investment Fixed assets 632,039,679.95 678,033,380.86 Construction in progress 107,962,881.89 89,469,259.14 Engineering material Fixed asset disposal Production physical assets Gas & petrol Intangible assets 306,962,392.81 304,100,619.77 R & D petrol Goodwill Long-germ expenses to be amortized 1,432,382.52 1,041,796.52 Differed income tax asset 112,027,009.69 102,885,927.93 Other non-current asset Total of non-current assets 1,669,834,088.63 1,674,521,847.16 Total of assets 7,878,473,837.07 7,552,058,947.02 Current liabilities Short-term loans 193,200,000.00 198,600,000.00 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 138,884,886.50 150,763,452.14 Account payable 1,011,671,506.98 763,085,718.92 Advance payment 1,765,344,655.68 1,374,736,209.67 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 53,016,504.86 65,672,706.09 Tax payable 17,666,778.67 126,091,260.73 Interest payable Dividend payable 9 杭汽轮机股份有限公司 2015 年半年度报告 Other account payable 30,112,675.90 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 3,209,897,008.59 2,708,547,236.67 Non-current liabilities: Long-term loan 23,700,000.00 18,500,000.00 Bond payable Long-term payable 330,000.00 330,000.00 Long-term payable employees’s remuneration Special payable Expected liabilities Differed income 7,401,909.90 8,252,705.00 Differed income tax liability 1,017,473.05 1,017,473.05 Other non-current liabilities Total non-current liabilities 32,449,382.95 28,100,178.05 Total of liability 3,242,346,391.54 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 -1,115,155.51 -640,401.72 Special reserves 24,899,379.31 24,603,149.96 Surplus reserves 621,112,807.78 621,112,807.78 Common risk provision Undistributed profit 2,747,244,711.47 2,911,921,943.21 Total of owner’s equity belong to the parent company 4,285,742,488.14 4,450,598,244.32 Minority shareholders’ equity 350,384,957.39 364,813,287.98 10 杭汽轮机股份有限公司 2015 年半年度报告 Total of owners’ equity 4,636,127,445.53 4,815,411,532.30 Total of liabilities and owners’ equity 7,878,473,837.07 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 280,913,517.85 248,509,410.84 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable 256,051,427.92 385,543,218.94 Account receivable 1,638,359,899.08 2,010,980,253.99 Prepayments 69,236,041.34 72,514,421.98 Interest receivable Dividend receivable Other account receivable 20,097,411.89 33,537,812.35 Inventories 1,814,078,428.53 1,159,102,793.67 Assets held for sales Non-current asset due in 1 year Other current asset 237,610,865.54 30,000,000.00 Total of current assets 4,316,347,592.15 3,940,187,911.77 Non-current assets: Disposable financial asset 465,604,378.26 454,010,862.94 Expired investment in possess Long-term receivable Long term share equity investment 502,919,378.03 502,919,378.03 Property investment Fixed assets 320,780,055.07 354,282,465.72 Construction in progress 76,292,095.51 67,302,264.59 Engineering material Fixed asset disposal Production physical assets 11 杭汽轮机股份有限公司 2015 年半年度报告 Gas & petrol Intangible assets 178,883,759.72 181,918,239.41 R & D petrol Goodwill Long-germ expenses to be amortized 1,015,547.54 1,015,547.54 Differed income tax asset 81,749,087.20 74,164,090.15 Other non-current asset Total of non-current assets 1,627,244,301.33 1,635,612,848.38 Total of assets 5,943,591,893.48 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 13,000,000.00 Account payable 660,329,686.61 448,755,575.94 Advance payment 1,316,347,368.49 977,630,617.45 Employees’ wage payable 31,407,750.83 44,164,067.67 Tax payable 3,002,187.11 88,238,458.17 Interest payable Dividend payable Other account payable 18,276,946.59 19,738,024.51 Liabilities held for sales Non-current liability due in 1 year Other current liability Total of current liability 2,142,363,939.63 1,678,526,743.74 Non-current liabilities: Long-term loan Bond payable Long-term payable Employees’ wage Long-term payable Special payable Expected liabilities Differed income 512,804.90 111,250.00 Differed income tax liability 1,017,473.05 1,017,473.05 12 杭汽轮机股份有限公司 2015 年半年度报告 Other non-current liabilities Total of Non-current liabilities 1,530,277.95 1,128,723.05 Total of liability 2,143,894,217.58 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 Other comprehensive income Special reserves 10,511,915.73 10,511,915.73 Surplus reserves 602,356,402.65 602,356,402.65 Undistributed profit 2,293,865,707.43 2,390,313,324.89 Total of owners’ equity 3,799,697,675.90 3,896,145,293.36 Total of liabilities and owners’ equity 5,943,591,893.48 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 of the Report period In RMB Same period of the previous Item Report period year I. Income from the key business 493,672,866.88 706,544,529.11 Incl:Business income 493,672,866.88 706,544,529.11 Interest income Insurance fee earned Fee and commission received II. Total business cost 580,669,969.95 705,484,827.53 Incl:Business cost 335,842,400.43 426,659,724.36 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Insurance policy dividend paid 13 杭汽轮机股份有限公司 2015 年半年度报告 Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 2,224,854.69 3,132,113.23 Sales expense 35,992,771.84 40,281,485.15 Administrative expense 163,337,321.94 178,682,753.46 Financial expenses -1,197,475.54 4,311,919.88 Asset impairment loss 44,470,096.59 52,416,831.45 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 3,226,553.62 4,110,745.22 Incl: investment gains from affiliates Gains from currency exchange(“-”for loss) III. Operational profit(“-”for loss -83,770,549.45 5,170,446.80 Add:Non-business income 10,459,046.84 644,378.96 Incl:Gains from disposal of non-current assets -29,583.00 -347,012.69 Less:Non business expenses 1,039,638.56 1,449,834.18 Incl:Loss from disposal of non-current assets -303,677.88 -120,844.93 IV.Total profit(“-”for loss) -74,351,141.17 4,364,991.58 Less:Income tax expenses 245,388.17 1,903,773.35 V. Net profit(“-”for net loss -74,596,529.34 2,461,218.23 Net profit attributable to the owners of parent company -78,993,858.42 -12,209,753.03 Minority shareholders’ equity 4,397,329.08 14,670,971.26 VI. Net after-tax of Other comprehensive income -741,835.57 -211,118.68 Net after-tax of other comprehensive income attributable to owners of the parent c -315,870.62 -89,893.49 ompany. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. (II) -315,870.62 -89,893.49 Other comprehensive income that will be reclassified into profit or l 14 杭汽轮机股份有限公司 2015 年半年度报告 oss. 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. 2.Gains and losses from changes in fair value available for sale finan cial assets 3.Held-to-maturity investments reclassified to gains and losses of av ailable for sale financial assets 4.The effective portion of cash flow hedges and losses 5.Translation differences in currency financial statements -315,870.62 -89,893.49 6.Other Net after-tax of other comprehensive income attributable to Minority -425,964.95 -121,225.19 shareholders’ equity VII. Total comprehensive income -75,338,364.91 2,250,099.55 Total comprehensive income attributable to the owner of the parent -79,309,729.04 -12,299,646.52 company Total comprehensive income attributable minority shareholders 3,971,364.13 14,549,746.07 VIII. Earnings per share (I)Basic earnings per share -0.105 -0.016 (II)Diluted earnings per share -0.105 -0.016 Legal Representative:Zheng Bin Person in charge of accounting:Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 4. Profit statement of the Parent Company of the Report period In RMB Items Report period Same period of the previous year I. Income from the key business 267,659,008.23 443,746,680.14 Incl:Business cost 208,002,999.52 295,827,680.15 Business tax and surcharge 0.00 147,931.96 Sales expense 25,074,884.70 25,112,415.75 Administrative expense 104,296,835.88 116,945,798.30 Financial expenses -1,927,945.06 3,148,783.60 Asset impairment loss 29,974,171.98 39,732,317.21 Add:Gains from change of fir value (“-”for loss) 0.00 0.00 Investment gain(“-”for loss) 1,249,986.09 619,989.06 15 杭汽轮机股份有限公司 2015 年半年度报告 Incl: investment gains from affiliates 0.00 0.00 II. Operational profit(“-”for loss -96,511,952.70 -36,548,257.77 Add:Non-business income 4,196,931.14 496,938.53 Incl:Gains from disposal of non-current assets 0.00 0.00 Less:Non business expenses 472,554.73 743,746.68 Incl:Loss from disposal of non-current assets 0.00 0.00 III.Total profit(“-”for loss) -92,787,576.29 -36,795,065.92 Less:Income tax expenses -4,496,125.80 -5,534,058.28 IV. Net profit(“-”for net loss) -88,291,450.49 -31,261,007.64 V. Net after-tax of Other comprehensive income (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net de bt or net assets 2.Other comprehensive income under the equity method investe e can not be reclassified into profit or loss. (II) Other comprehensive income that will be reclassified into profit or loss. 1.Other comprehensive income under the equity method investe e can be reclassified into profit or loss. 2.Gains and losses from changes in fair value available for sale financial assets 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets 4.The effective portion of cash flow hedges and losses 5.Translation differences in currency financial statements 6.Other VI. Total comprehensive income -88,291,450.49 -31,261,007.64 VII. Earnings per share: (I)Basic earnings per share -0.117 -0.041 (II)Diluted earnings per share -0.117 -0.041 Legal Representative:Zheng Bin Person in charge of accounting:Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 16 杭汽轮机股份有限公司 2015 年半年度报告 5. Consolidated Profit statement between the beginning of the year and end of the report period In RMB Items Report period Same period of the previous year I. Total operating income 1,548,669,193.12 2,449,907,171.38 Including:Operating income 1,548,669,193.12 2,449,907,171.38 Interest income Insurance gained Commission charge and commission income II. Total operating cost 1,660,201,348.38 2,222,781,370.80 Including:Operating cost 998,351,747.61 1,501,106,574.52 Interest expense Commission chare and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Operating tax and extras 8,559,448.11 14,558,787.17 Sales expenses 103,927,345.93 108,479,459.34 Administration expenses 478,507,184.84 477,482,217.26 Financial expenses 3,734,964.80 13,514,406.60 Losses of devaluation of assets 67,120,657.09 107,639,925.91 Add :Changing income of fair value Investment income 42,458,015.67 37,778,981.98 Including:Investment income on affiliate company and joint venture Exchange income III. Operating profit -69,074,139.59 264,904,782.56 Add :Non-operating income 16,744,253.39 12,838,708.67 Including :Disposal Gains of non-current assets Less:Non-operating expense 3,196,801.45 6,002,486.34 17 杭汽轮机股份有限公司 2015 年半年度报告 Including :Disposal loss of non-current assets IV. Total profit -55,526,687.65 271,741,004.89 Less:Income tax 11,535,844.37 41,577,702.02 V. Net profit(“-”for net loss -67,062,532.02 230,163,302.87 Net profit attributable to the owners of parent company -89,276,191.74 183,965,097.98 Minority shareholders’ equity 22,213,659.72 46,198,204.89 VI. Net after-tax of Other comprehensive income -1,114,979.45 540,231.59 Net after-tax of other comprehensive income attributable to owners of the paren -474,753.79 230,028.45 t company. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net de bt or net assets 2.Other comprehensive income under the equity method investe e can not be reclassified into profit or loss. (II) Other comprehensive income that will be reclassified into profit -474,753.79 230,028.45 or loss. 1.Other comprehensive income under the equity method investe e can be reclassified into profit or loss. 2.Gains and losses from changes in fair value available for sale financial assets 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets 4.The effective portion of cash flow hedges and losses 5.Translation differences in currency financial statements -474,753.79 230,028.45 6.Other Net after-tax of other comprehensive income attributable to Minority -640,225.66 310,203.14 shareholders’ equity VII. Total comprehensive income -68,177,511.47 230,703,534.46 Total comprehensive income attributable to the owner of the -89,750,945.53 184,195,126.43 parent company 18 杭汽轮机股份有限公司 2015 年半年度报告 Total comprehensive income attributable minority 21,573,434.06 46,508,408.03 shareholders VIII. Earnings per share (I)Basic earnings per share -0.118 0.244 (II)Diluted earnings per share -0.118 0.244 Legal Representative:Zheng Bin Person in charge of accounting:Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 6.Profit Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Report period Same period of the previous year I. Business income 888,233,056.51 1,645,224,984.09 Less:Business cost 633,240,390.71 1,077,000,448.16 Business tax and surcharge 1,398,211.91 6,188,669.35 Sales expense 70,652,269.86 67,650,712.32 Administrative expense 308,110,674.99 302,983,112.05 Financial expenses 2,903,060.49 11,235,672.66 Asset impairment loss 55,164,345.10 88,881,876.60 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 148,139,180.05 196,472,798.54 Incl: investment gains from affiliates II. Operational profit -35,096,716.50 287,757,291.49 Add:Non-business income 7,082,545.09 1,541,026.53 Incl:Gains from disposal of non-current assets Less:Non business expenses 1,177,214.68 3,231,719.44 Incl:Loss from disposal of non-current assets III.Total profit -29,191,386.09 286,066,598.58 Less:Income tax expenses -8,144,808.63 16,025,728.94 IV. Net profit) -21,046,577.46 270,040,869.64 V. Net after-tax of Other comprehensive income Net after –tax of profit of other comprehensive income attributable to owners of the parent company. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting 19 杭汽轮机股份有限公司 2015 年半年度报告 period 1.Re-measurement of defined benefit plans of changes in net de bt or net assets 2.Other comprehensive income under the equity method investe e can not be reclassified into profit or loss. (II) Other comprehensive income that will be reclassified into profit or loss. 1.Other comprehensive income under the equity method investe e can be reclassified into profit or loss. 2.Gains and losses from changes in fair value available for sale financial assets 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets 4.The effective portion of cash flow hedges and losses 5.Translation differences in currency financial statements 6.Other -21,046,577.46 270,040,869.64 V. Earnings per share (I)Basic earnings per share -0.028 0.358 (II)Diluted earnings per share -0.028 0.358 Legal Representative:Zheng Bin Person in charge of accounting:Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period In RMB Same period of the Items Report period previous year I.Cash flows from operating activities Cash received from sales of goods or rending of services 1,863,008,900.61 2,249,496,848.88 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 20 杭汽轮机股份有限公司 2015 年半年度报告 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 3,923,733.08 727,421.29 Other cash received from business operation 39,495,626.45 11,400,718.81 Sub-total of cash inflow 1,906,428,260.14 2,261,624,988.98 Cash paid for purchasing of merchandise and services 802,483,049.81 1,142,505,900.71 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 Cash paid to staffs or paid for staffs 515,899,321.06 483,472,204.24 Taxes paid 207,976,861.79 263,554,947.64 Other cash paid for business activities 104,459,197.46 161,323,590.63 Sub-total of cash outflow from business activities 1,630,818,430.12 2,050,856,643.22 Cash flow generated by business operation, net 275,609,830.02 210,768,345.76 II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 42,458,402.03 37,778,981.98 Net cash retrieved from disposal of fixed assets, intangible 149,120.20 1,143,341.52 assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 1,189,105,999.95 1,506,500,000.00 Sub-total of cash inflow due to investment activities 1,231,713,522.18 1,545,422,323.50 Cash paid for construction of fixed assets, intangible assets 44,795,233.90 64,653,546.21 and other long-term assets Cash paid as investment 10,419,276.30 19,380,000.00 Net increase of loan against pledge Net cash received from subsidiaries and other operational units 21 杭汽轮机股份有限公司 2015 年半年度报告 Other cash paid for investment activities 1,299,706,601.45 1,700,401,561.00 Sub-total of cash outflow due to investment activities 1,354,921,111.65 1,784,435,107.21 Net cash flow generated by investment -123,207,589.47 -239,012,783.71 III.Cash flow generated by financing Cash received as investment 11,740,000.00 1,989,626.40 Incl: Cash received as investment from minor shareholders Cash received as loans 90,400,000.00 113,100,000.00 Cash received from bond placing Other financing –related ash received Sub-total of cash inflow from financing activities 102,140,000.00 115,089,626.40 Cash to repay debts 90,600,000.00 279,040,000.00 Incl: Dividend and profit paid by subsidiaries to minor shareholder Other cash paid for financing activities Sub-total of cash outflow due to financing activities 231,189,862.51 521,612,577.84 Net cash flow generated by financing -129,049,862.51 -406,522,951.44 IV. Influence of exchange rate alternation on cash and cash 3,013,690.22 391,311.27 equivalents V.Net increase of cash and cash equivalents 26,366,068.26 -434,376,078.12 Add: balance of cash and cash equivalents at the beginning of 613,958,063.91 883,141,568.17 term VI ..Balance of cash and cash equivalents at the end of term 640,324,132.17 448,765,490.05 Legal Representative:Zheng Bin Person in charge of accounting:Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period 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 1,222,686,383.60 1,511,986,900.40 services Tax returned 2,122,030.27 495,978.53 Other cash received from business operation 1,643,931.08 2,919,304.73 Sub-total of cash inflow 1,226,452,344.95 1,515,402,183.66 22 杭汽轮机股份有限公司 2015 年半年度报告 Cash paid for purchasing of merchandise and services 598,048,343.03 764,505,559.08 Cash paid to staffs or paid for staffs 352,513,290.86 340,242,709.56 Taxes paid 96,364,022.69 141,456,732.73 Other cash paid for business activities 21,553,427.07 82,644,685.61 Sub-total of cash outflow from business activities 1,068,479,083.65 1,328,849,686.98 Cash flow generated by business operation, net 157,973,261.30 186,552,496.68 II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 148,139,577.52 196,472,798.54 Net cash retrieved from disposal of fixed assets, 1,926.00 intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 200,000,000.00 408,000,000.00 Sub-total of cash inflow due to investment activities 348,141,503.52 604,472,798.54 Cash paid for construction of fixed assets, intangible assets 25,625,615.45 33,205,930.34 and other long-term assets Cash paid as investment 11,593,912.79 Net cash received from subsidiaries and other operational units Other cash paid for investment activities 360,000,601.50 508,000,000.00 Sub-total of cash outflow due to investment activities 397,220,129.74 541,205,930.34 Net cash flow generated by investment -49,078,626.22 63,266,868.20 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 Cash to repay debts 160,000,000.00 23 杭汽轮机股份有限公司 2015 年半年度报告 Cash paid as dividend, profit, or interests 78,902,151.12 159,170,746.67 Other cash paid for financing activities Sub-total of cash outflow due to financing activities 78,902,151.12 319,170,746.67 Net cash flow generated by financing -78,902,151.12 -319,170,746.67 IV. Influence of exchange rate alternation on cash and 2,411,623.05 -175,536.37 cash equivalents V.Net increase of cash and cash equivalents 32,404,107.01 -69,526,918.16 Add: balance of cash and cash equivalents at the 248,509,410.84 295,292,983.14 beginning of term VI ..Balance of cash and cash equivalents at the end 280,913,517.85 225,766,064.98 of term Legal Representative:Zheng Bin Person in charge of accounting:Pu Yangshuo Accounting Dept Leader: Zhao Jiamao II. Auditor‘s report The Q3 Report is not audited. Hangzhou Steam Turbine Co., Ltd. Chairman of the Board: Zheng Bin October 28, 2015 24