Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2017-57
Hangzhou Steam Turbine Co., Ltd.
SEMIANNUAL REPORT 2017
（Stock Code：200771）
August 2017
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Important Remarks, Table of Contents, and Definitions
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.
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.
All of the directors attended the board meeting on which this report was examined.
This Report contains prospective descriptions, which doesn’t constitute substantial commitment to investors.
Investors are requested to be aware of the risks attached to their investment decisions.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV. Performance Discussion and Analysis
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. Corporate Bonds
X. Financial Report
XI. Documents available for inspection
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Definition
Defined
Terms to be defined Definition
as
Defined
Company, the Company Hangzhou Steam Turbine Co., Ltd.
as
Defined
The Group, Hangqi Group Hangzhou Steam Turbine Power Group Co., Ltd.
as
Defined
The report period, In the report period January 1,2017-June 30,2017
as
Defined Hangzhou Zhongneng Steam Turbine Power Co., Ltd. – the holding
Zhongneng Co.
as subsidiary of the Company
Defined Hangzhou Steam Turbine Casting Co., Ltd. – the holding subsidiary of
Casting Co.
as the Company
Defined Zhejiang Steam Turbine Packaged Technology Development Co., Ltd.
Packaged Tech. Co.
as – the holding subsidiary of the Company
Defined Hangzhou Steam Turbine Machinery Equipment Co., Ltd. - the holding
Machinery Co.
as subsidiary of the Company
Defined Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. - the holding
Auxiliary Machine Co.
as subsidiary of the Company
Defined Zhejiang Turbine Import & Export Co., Ltd. – the holding subsidiary of
Turbine Co.
as the Company
Defined Hangzhou Steam Turbine Heavy Industry Co., Ltd. - the holding
Heavy Industry Co.
as subsidiary of the Company
Defined
The Board of Directors The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
as
Defined
The Supervisory Committee The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
as
Defined
The Shareholders’ Meeting The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
as
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Defined
RMB, RMB0’000, RMB000’000’000 RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
as
Defined
MW Unit of power: 1000KW
as
Defined
PLM Product life circle management information system
as
Defined
PTA Pure Terephthalic Acid
as
Defined
MES Product lifecycle management information system
as
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
II. Corporate Profile and Key Financial Indicators
1. Company Information
Stock ID Hangqilun B Stock Code 200771
Stock Exchange Listed 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
2. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Wang Gang Wang Caihua
Address No. 357 Shiqiao Rd. Hangzhou No. 357 Shiqiao Rd. Hangzhou
Tel. 0571-85780198 0571-85780438
Fax. 0571-85780433 0571-85780433
Email. wg@htc.cn wangch@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 2016.
2. Information inquiry
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2016.
IV. Summary of Accounting Data and Financial Index
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) 1,663,724,702.26 1,367,423,771.88 21.67%
Net profit attributable to shareholders of the 43,995,804.38 -31,252,238.19 240.78%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
listed company (yuan)
Net profit attributable to the shareholders of the
listed company and after deducting of 3,560,218.39 -43,478,314.33 108.19%
non-recurring gain/loss(RMB)
Net Cash flow generated by business operation
34,849,647.14 214,699,052.95 -104.80%
(RMB)
Basic earnings per share (Yuan/share) 0.06 -0.04 250.00%
Diluted earnings per share (Yuan/share) 0.06 -0.04 250.00%
Net income on asset, weighted 0.69% -0.74% 1.43%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets (RMB) 11,111,682,905.80 10,550,899,708.34 5.32%
Shareholders’ equity attributable to shareholders
6,410,591,387.20 6,385,346,243.23 0.40%
of the listed company（RMB）
V.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 existent
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not existent
VI. Non-recurring gain/loss items and amounts
In RMB
Items Amount Remarks
Non-current asset disposal gain/loss(including the write-off part for which
180,553.42
assets impairment provision is made)
Govemment subsidies recognized in current gain and loss(excluding those
closely related to the Company’s business and granted under the state’s 2,505,237.27
policies)
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 from disposal of 44,784,598.29
transactional financial assets and liabilities and financial assets available for
sale
Other non-operating income and expenditure beside for the above items 1,590,730.74
Less: Influenced amount of income tax 7,982,642.11
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Amount of influence of minority interests（After tax） 642,891.62
Total 40,435,585.99 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
None of Non-recurring gain /loss items recorgnized 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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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
As the leading provider of turbo machinery equipment and relevant service in China, our company is mainly
famous for designing and producing rotating turbo machinery like industrial steam turbines and gas turbines. Our
company, one of the major companies drafting the industrial standard in Chinese domestic industry of industrial
steam turbine, has developed into the biggest base to research, develop and produce industrial steam turbines in
China and ranks first among industrial steam turbine producers in terms of the market occupancy. Holding the
principle “our products should be based on clients’ demands” as our business mode and characteristic, our
company designs and produces in accordance with every client’s personal demands so as to meet personalized
needs in engineering projects to the utmost. To realize the fast research and development of our products, our
company has adopted the advanced modular design technique and, on the other hand, introduces information
technique to assist the collaborative production to achieve the resource saving and flexible production. In addition,
our company also provides our clients with relevant service such as engineering programs, general engineering
contracting, operation and maintenance of our products as well as remote control and so on.
Industrial steam turbines use the steam featuring high temperature and high pressure as their working
medium so as to convert the thermal energy into mechanical energy to drive various industrial equipments through
the rotating steam turbines. As for different objects driven by industrial steam turbines, the steam turbines could
be divided into industrial driving steam turbines and industrial power-generation steam turbines. Mainly driving
rotating machines like compressors, air blowers, pumps and squeezers, industrial driving steam turbines, as the
core power part in numerous large-scale industrial equipments, are always introduced into some industries like oil
refining, chemical engineering, chemical fertilizer, building materials, metallurgy, electric power, light industry
and environmental production. The industrial power-generation steam turbines, mainly utilized to drive electric
generators and provide thermal energy, are mainly adopted in private stations, regional projects of combined heat
and power generation, power generation by recycling waste heat in industrial production, urban waster power
plants and gas-steam combined cyclepower stations in various industrial sectors. The gas turbines produced by our
company are mainly used by metallurgical industry to recycle the waste heat from the blast furnace exhaust to
generate power. The mode of independent sales and cooperative productions is adopted in the sector of gas turbine
business. We win our orders by participating in bidding for engineering equipments needed in new or
reconstruction projects in domestic large-scale metallurgical industry. Our design for products is provided by
technical partner, major parts of our products are systematically produced and purchased in China and some parts
are imported overseas. In the report period, our company cooperating with SIEMENS in the field of distributed
energy of gas has started our gas turbine business as the purchaser and implementor of integration of the project.
Our company provides life-long operation guarantee service for our clients who have purchased our gas turbines,
which has brought long-term business cooperation between our company and our clients.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
Construction in process No major changes
2. Main Conditions of Overseas Assets
Not applicable
Ⅲ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
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
research to production, from marketing to customer services.
1. A complete technical innovation system was established. The Company has under its possession of national,
provincial, and municipal grade technical centers, a doctorial workstation, and 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. Cooperating with SIEMENS in the
field of gas turbine, our company has been capable of selecting the model of the combined recycling project of
distributed energy. In addition, our company has also been able to finish the independent processing or supporting
work which doesn’t need to depend on the gas turbine machine.
Secondly ,The advantages of solutions. The modular design of industrial steam turbine and the production pattern
featuring parallelization production enable our company to give considerations to the cost, date of delivery and
clients’ demands in the process of production in accordance with clients’ personalized designs, thereby making our
company capable of advancing with the development trend of individual requirements. Our company has always
been devoting to the localization in terms of the gas turbine business so as to achieve the localized one-stop
service step by step including the sale, production, installation, debugging, operation, training and after-sale
service. Our company has always been striving to provide clients with the complete equipment of gas turbine
power station and the efficient total solutions.
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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, At the same time, our company values the cooperation with universities. “Zhejiang Technical
Association for Gas Turbines in Equipment Manufacturing Industry” was officially founded jointly by our
company and Zhejiang University and other scientific research institutions to build a new platform for integration
of production and research in terms of gas turbine technology.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.
IV. Performance Discussion and Analysis
I. General
In the first half of 2017, China's economy has maintained a steady and good trend, the manufacturing
industry accelerated its pace to enter middle and high-end manufacturing, and the added value of new and high
technology industries and equipment manufacturing industry gained a growth year on year. However, the steam
turbine industry has been affected by the global energy structure adjustment, the serious excess capacity of the
industry and the slowdown in domestic power investment, therefore the profitability of the industry continued to
decline. The company had formulated the annual economic work policy of "Advancing strategy, continuous
innovation, deeply exploring market, lean management and enhancing the risk-control”, continued to promote the
"13th Five-Year" strategy implementation, strengthened the technological innovation to enhance the core
competitiveness of the company, actively developed the market to seize more market share and orders, promoted
the "lean production" and "integrated management" to improve operating efficiency, strengthened the risk
prevention and control in major business areas and adopted a number of practicable measures and strategies, thus
realized the operating goal of a turnaround and gained profits.
、
For the report period, For the report period, the Company has realized turnover of RMB 1,663,724,702.26, a
increase of 21.67%; Buinsess profit of RMB61,982,164.70 , a increase of 282.31%,total profit of
RMB66,257,223.45, a increase of 327.60, Net profit of RMB59,728,855.88, a increase of 327.30%, net profit
attributable to owners of the parent company of RMB43,995,804.38, a increase of 240.78%.
The main reason for the big increase in net profit attributable to the shareholders of the Company was due to
the increase in non-operating income gained from the bonus of Bank of Hangzhou and the sale of the Hangzhou
Changti Partnership enterprise and so on during the reporting period and meanwhile the collection situation of the
accounts receivable during the reporting period was good and the provision for bad debt was less than the
previous accounting period.
Implementation of business plans disclosed in previous periods in this period
1. Promoting the strategy and realizing the goal.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
The company takes "Made in China 2025" as an opportunity to continue to accelerate the transformation and
upgrading of the company. The company has been increased the efforts in technological innovation, combining
independent innovation with technology introduction, increasing R & D investment and enhancing the company's
core competitiveness. The company promoted the business model innovation, and on the basis of consolidating the
market status of industrial steam turbine, the company promoted the gas turbine business, expanded services and
engineering business and made changes of the status of single product structure. According to the "13th
Five-Year" strategic planning and its decomposition implementation scheme, the company carried out the
decomposition, implementation, examination and assessment of the annual strategic performance. The company
further adjusted the organizational structure of production, further integrated and optimized the internal resources
by institutional adjustment, and improved the process efficiency.
In order to ensure the relocation of the factory and promote the smooth implementation of "Heavy machinery
construction project of steam turbine" and "Construction of scientific research building", the company set up a
special working organization to study and formulate the project construction promotion plan to ensure that the
construction and relocation tasks will be completed as planned.
2. Constant innovation and keeping perfecting
The company increased the R & D investment, constantly made technological innovation, promoted the
high-quality goods project and carried out the in-depth implementation of application and promotion for the
containerization technology research results. On the basis of the achievements realized on the demonstration unit
of containerization technology for Yongfeng Paper Industry KWT5501/02, the company carried out the
normalization work of excellent project, which formed and formulated the corresponding standard document and
operation manual for the whole process of design, process, manufacture and assembly; relying on Dalian Hengli
and Zhejiang Petrochemical Traction unit projects, the in-depth implementation of application and promotion for
the containerization technology research results was carried out, thus enhanced the company's market
competitiveness and soft power. During the reporting period, the Company initiated 8 R&D projects and launched
6 projects of new products, including 1 gas turbine project and 3 technical process projects and 2 vane projects.
The company has taken "containerization, intelligence, efficiency and light weight" as the technological
innovation orientation, and constantly improved the test and application of the new process, and focused on
solving common technical problems, such as vibration, bending, valve head fall off and stem damage or fracture,
etc, thus enhanced the company's product quality. In the first half of this year, the company was authorized with 3
invention patents and 4 utility model patents. The company was awarded "Standardized good behavior
demonstration enterprise" by China Electrical Equipment Industry Association.
During the reporting period, the company cooperated with universities and scientific research units to build a
platform for technical exchanges and cooperation. The "Zhejiang Hangzhou Steam Turbine Gas Turbine
Machinery Innovation Center", which was led by the company and was appraised by the provincial economic
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
committee and the expert group, had become one of the three innovation centers firstly established in Zhejiang
province.
3. Deeply developing the market and actively seizing the orders
During the reporting period, the number of steam turbine contract of the company and the contract amount all
increased year-on-year. As the domestic refining industry improved and the private capital entered the field of
refining, the company, by virtue of good historical performance and competitive advantages in product
manufacturing, pushed the section to have a record new orders, thereinto, the amount of the project contract
signed with Dalian Hengli was RMB 555,580,000, which has become the highest amount of a single contract of
the company.
Due to the adverse effects of national energy conservation and environmental protection policy planning and
the serious overcapacity of the industry, the Company's orders in the traditional-driven product fields such as coal
chemical industry, PTA, nitric acid and metallurgy and in the industrial power generation feed pump field
decreased obviously.
The company has cooperated with Siemens, and signed the supply contract for distributed energy projects
with EPC general contractor-Southwest Power system Design Institute, and such contract included two SGT-8OO
gas turbines and the matching turbo-generator unit. This project was the first time that the company has
successfully realized the successful cooperation with the domestic power Design Institute on the gas turbine
products, which had a great significance.
The company had held the development forum and user forum of efficient and clean energy use, and the
company had invited more than 70 users in the industry to enter the forum and had signed the "Strategic Partner
Agreement" with the users. The company had rolled out the "going out" strategy, upgraded the Thailand
Office-which will play the role of bridgehead in the company's future market development in Southeast Asian
market. The company continued to promote the localized management strategy in Iran.
4. Lean management, reducing costs and raising efficiency.
During the reporting period, the company launched the "lean production management". Through the combing
of trans-department processes and by the SIPOC analysis of the process such as placing order, planning and
implementation, material management and procurement, the company optimized the production process. The
company initiated the implementation of the MES manufacturing execution system and took the intelligent
manufacturing project as an opportunity to accelerate the demonstration project of intelligent manufacturing and
the practice of lean manufacturing.
The company continued to promote the bidding work, and the sales of waste materials, the out sourcing
cylinder processing, the cutting fluid and office supplies, the auxiliary materials and so on were put out tender by
the company, thus continuously saved the company’s production costs.
The company initiated the "Integrated management" project, which implemented the integration of main
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
business processes including the contract management, after-sales service, product research and development,
manufacturing and quality control, constructed the end-to-end whole process management from the sales and
production to the delivery, improved the marketing system architecture, the production and delivery system
framework (including procurement) and the R & D system framework and integrated the enterprise management
system.
In the 2017 Hangzhou Enterprise Management Modernization and Innovation Achievement appraisal
activities, the "Big data platform project of discrete manufacturing industry construction process " and the
"craftsmen and engineers cultivation project to shape "state elite" quality" and other 3 projects were respectively
awarded prizes, including 1 gained the first prize, 2 gained the second prize and 2 projects gained the third prize
5. Deepening the risk control and strengthening the management
The company always emphasized the contract execution management. According to the past years contract
execution and the new problems occurred in the current market environment, the company sorted out a series of
risk points, perfected the company's Internal Control Implementation Rules of steam turbine business and
strengthened the contract review. The company has been made the constant follow-up of the execution of signed
contracts, paid close attention to the risk control of contract execution quality and extended the risk control work
from contract signing stage to contract execution. By establishing and improving the price system, the company
carried out the analysis on the costs, profitability and cash flow of the contract products, thus to lay a foundation
for the company implementing the goals of product profits and costs control.
The company increased the assessment and incentive for the collection of accounts receivable, improved the
daily handling mechanism and the process of accounts receivable, regularly visited customers to know the
progress well and properly used the legal means to actively make the collection. The company continuously
strengthened the inventory management, actively communicated and made consultations with the unit users who
had a long period inventory and carried out the timely and reasonable disposal of inventory.
The company strengthened the management of fund use, perfected the management processes including
entrusted wealth management, investment cooperation with the external and guarantees for the external, and
strengthened the examination and approval and supervision of the outflow of funds, thus ensured the safety and
liquidity of the company's operating funds. The company enhanced the legal risk management, and it combed the
process of the main business of the company, identified the legal risk and proposed the measures, thus constructed
the company's legal risk management system.
2.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
YOY change
This report period Same period last year Cause change
（%）
Operating income 1,663,724,702.26 1,367,423,771.88 21.67%
Mainly due to the current sales
Operating cost 1,192,385,051.48 850,937,906.04 40.13% growth and the decline in overall
gross in this period.
Sale expenses 81,874,015.85 75,867,593.98 7.92%
Administrative expenses 354,411,777.81 355,106,918.55 -0.20%
Mainly due to the depreciation of
Financial expenses 7,945,244.29 512,029.17 1,451.72% the dollar caused by the increase in
exchange losses
Mainly due to the provision for
impairment losses arising from the
Income tax expenses 6,528,367.57 -2,833,931.34 330.36%
current deferred income tax
increase.
R & D Investment 140,500,456.42 138,018,919.01 1.80%
Mainly due to the current advance
Cash flow generated by business
operation, net
-10,310,355.58 214,699,052.95 -104.80% payment for materials to pay the
cash increased year on year
Mainly due to the current
Net cash flow generated by redemption of financial products
158,091,370.23 -160,303,138.04 198.62%
investment
and investment income increased
year on year
Mainly due to the increase in bank
Net cash flow generated by financing -29,043,280.80 -41,830,084.28 30.57%
borrowings in the current period
Mainly due to the increase in net
Net increasing of cash and cash
equivalents
115,611,816.42 16,763,311.05 589.67% cash flow from investing activities
in the current period
Mainly due to the aging of
accounts receivable increases, the
Asset impairment loss 35,378,404.08 125,619,636.17 -71.84%
corresponding provision for bad
loans decrease in this period
Significant changes in the profit structure or profit source of the Company during the reporting period
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Main business composition
In RMB
Increase/dec
Increase/decrea rease of
Increase/decrea
se of business gross profit
Gross se of revenue in
cost over the rate over the
Turnover Operation cost profit the same period
same period of same period
rate(%) of the previous
previous year of the
year(%)
(%) previous
year (%)
On Industries
Boiler and power machine
1,169,308,889.22 844,849,752.79 27.75% 1.10% 14.11% -8.23%
manufacture
Casting 40,738,639.98 29,705,385.12 27.08% 51.59% 52.27% -0.32%
Petrochemical and other
85,931,536.04 70,075,861.18 18.45% 380.87% 403.54% -3.67%
special machineries
Complete set of waste
62,921,917.55 51,744,663.80 17.76% 168.05% 185.76% -5.10%
heat power plant
Spare parts 206,641,005.65 99,788,527.03 51.71% 56.06% 79.50% -6.31%
Other 98,182,713.82 96,220,861.55 2.00% 857.70% 2,715.47% -64.67%
Subtotal 1,663,724,702.26 1,192,385,051.48 28.33% 21.67% 40.13% -9.44%
On Products
Industrial steam turbine 1,169,308,889.22 844,849,752.79 27.75% 1.10% 14.11% -8.23%
Casting products 40,738,639.98 29,705,385.12 27.08% 51.59% 52.27% -0.32%
Auxiliary machinery 85,931,536.04 70,075,861.18 18.45% 380.87% 403.54% -3.67%
Complete set of waste
62,921,917.55 51,744,663.80 17.76% 168.05% 185.76% -5.10%
heat power plant
Spare parts 206,641,005.65 99,788,527.03 51.71% 56.06% 79.50% -6.31%
Other 98,182,713.82 96,220,861.55 2.00% 857.70% 2,715.47% -64.67%
Subtotal 1,663,724,702.26 1,192,385,051.48 28.33% 21.67% 40.13% -9.44%
District
Domestic 1,558,077,382.88 1,109,066,314.68 28.82% 36.79% 60.70% -10.59%
Overseas 105,647,319.38 83,318,736.80 21.14% -53.75% -48.18% -8.48%
Subtotal 1,663,724,702.26 1,192,385,051.48 28.33% 21.67% 40.13% -9.44%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
3.Non-core business analysis
In RMB
Proportion in total Sustainable
Amount Explanation of cause
profit (yes or no)
Mainly due to the current period received the Hangzhou
Investment income 88,988,506.53 134.31% Bank dividends and the sale of Long Beach to increase
the formation of income
Mainly due to the current accounts receivable provision
Impairment of assets 35,378,404.08 53.40%
for bad debts increased
Mainly for the received government subsidy and contract
Non-operating income 4,554,849.88 6.87%
compensation
Non-operating expenses 279,791.13 0.42% Mainly due to the payment of the contract compensation
IV.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of Reporting period End of same period of last year
As a Change in Reason for
Amount percentage of percentage(%) significant change
total assets(%)
Monetary fund 1,055,809,378.48 9.50% 794,767,589.76 9.79% -0.29%
Accounts receivable 1,812,297,540.52 16.31% 1,926,721,216.38 23.74% -7.43%
Inventories 2,052,667,695.99 18.47% 2,235,683,051.12 27.54% -9.07%
Fixed assets 601,473,873.27 5.41% 620,876,192.67 7.65% -2.24%
Construction in
156,071,663.76 1.40%
process 173,392,716.87 2.14% -0.74%
Short-term loans 197,700,000.00 1.78% 81,250,000.00 1.00% 0.78%
Long-term loans 4,900,000.00 0.04% 123,400,000.00 1.52% -1.48%
2.Asset and Liabilities Measured by Fair Value
In RMB
Items Opening balance Profit/losson Cumulative Impairment Purchased Sold inthis Closing balance
17
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
fair value fairvalue changes provided in in this reporting
changes in charged to equity this reporting period
this reporting Reporting period
period period
Financial assets
3.Available-for –sale
2,906,013,048.00 -22,193,894.40 2,883,819,153.60
financial assets
Subtotal of fainancial
2,906,013,048.00 -22,193,894.40 2,883,819,153.60
assets
Total of the above 2,906,013,048.00 -22,193,894.40 2,883,819,153.60
Financial Liabilities 0.00 0.00 0.00
Significant changes in the measurement attributes of the main assets in this Reporting Period
No
3. Restricted asset rights as of the end of this Reporting Period
Assets under ownership or use rights
Items End of Book value Reason
Monetary fund Utilized for issuing bank acceptance bill, L/C and L/G.
45,160,002.72
Bill receivable Utilized for issuing bank acceptance bill
22,970,000.00
Fixed assets Utilized for guaranteeing to obtain bank loan
117,870,021.27
Invisible assets Utilized for pledging to obtain the bank loan and guaranteeing the
89,391,343.91
investment loan for China Development Funds
Available for salefinancial
478,170,000.00 Utilized for guaranteeing the investment loan for China Development
assets
Funds
Total 753,561,367.90
V.Investment situation
1. General
Investments made in same period of last
Investments made in the reporting period +/- %
year
20,000,000.00 0.00 100.00%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
Not applicable
4.Investment of Financial Asset
18
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
（1）Securities investment
Nil.
（2）Investment in Derivatives
Nil.
5.Application of the raised capital
Nil
19
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
VI.Significant Asset and Right Offering
1.sisposal of material assets
Ratio of
Net profit
the net
constributio
profit Carried out
n to the
contributio on schedule
Company Pricing Related Relevant
Transaction n to the Relevant or not if not,
form the Effect of disposal on basis of party Relationship equity
Equity interest Disposal consideratio Company debt fully the reasons Disclos
Counterparty beginning of the Company disposal of transacti with interest fully Disclosure index
disposed of date n(RMB’000 of disposal transferred and ure date
the period （Notes3） equity on or counterparty transferred
0) of equity or not measures
up to the interest not or not
interest taken by the
disposal
over total company
date(RMB’0
net
000)
profit(%)
It optimized the Not less Securities
company's asset than the Times, Shanghai
Hangzhou
Zhejiang structure, so as to evaluation Securities Daily,
Changdi Equity
Juqing January meet the company's value January and
Investment 7,368 2,512.16 42.06% No Not applicable Yes Yes Yes
Investment 3,2017 operating capital confirmed 12,2017 http://www.cnin
Partnership
Co., Ltd. needs. Not having an by the fo.com.cn
（LP）
adverse impact on the state-owne （Announcemen
company's production d assets t No.:2017-01）
20
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
and operation and supervisio
after the sale, it would n
achieve the department
investment income 's
and have a positive file-record.
impact on the
company's financial
situation and
operating results.
2.Sales of major equity
Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Sectors
Name Industry Registered capital Total assets Net assets Turnover Operating profit Net Profit
type engaged in
Technological
Trade of
Zhejiang Steam Turbine Packaged Subsidiari development of automatic
packadged 51,000,000.00 293,108,271.48 79,946,778.30 95,183,579.66 2,500,388.02 2,530,829.59
Technology Development Co., Ltd. es control and instrument
equipment
control
Hangzhou Zhongneng Steam Subsidiari Manufacturi Designing and
Turbine Power Co., Ltd. es ng manufacturing of steam 92,500,000.00 1,059,632,038.81 312,429,362.85 308,881,733.81 -4,118,072.56 -4,491,604.31
21
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
turbines
Hangzhou Steam Turbine Casting Subsidiari
Casting Iron and steel casting 22,000,000.00 417,837,013.19 161,338,663.77 144,755,281.64 6,178,211.61 5,817,815.64
Co., Ltd. es
Hangzhou Steam Turbine Subsidiari Manufacturi Producing and processing
Machinery & Equipment Co., Ltd. es ng of steam turbine parts 30,000,000.00 210,446,253.12 126,459,272.71 112,615,226.37 28,155,909.53 23,574,045.69
Hangzhou Steam Turbine Auxiliary Subsidiari Manufacturi Manufacturing of steam
Machine Co., Ltd. es ng turbine auxiliary machines 80,000,000.00 500,953,839.08 220,771,357.58 214,290,527.44 23,216,468.67 21,921,639.27
Zhejiang Turbine Import & Export Subsidiari Commerce
International trade 20,000,000.00 223,219,438.88 68,235,677.83 37,184,537.75 -773,342.23 -785,188.01
Co., Ltd. es & trade
Designing and
Hangzhou Steam Turbine Heavy Subsidiari Manufacturi
manufacturing of steam 558,966,865.00 584,345,233.13 583,994,018.73 0.00 2,703,229.98 2,067,933.23
Industry Co., Ltd. es ng
turbines
Subsidiaries obtained or disposed in the reporting period
Acquisition and disposal of subsidiaries during
Name Influence
the reporting period
Xinjiang Taifeng Hangzhou Steam turbine complete
Write off Nil
technology development Co., Ltd.
Hangzhou Hangqi Boiler Co., Ltd Write off Nil
VIII．Structured vehicle controlled by the Company
Not applicable
IX. Prediction of business performance for January -September 2017
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change
compared with the corresponding period of the last year and explanation of reason.
Not applicable
22
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
X.Risks facing the Company and countermeasures
1. Market risks
With the decreasing demands for domestic heavy industry investment, the turbine market demands in dive area
are under weak boost，More competition and decreasing of gross profit ratio are expectable, and will bring certain
pressure to the Company’s market share and competition. However the Company will do all its best in aspects of
technical innovation, market exploring, quality lifting, service upgrading, and value adding, to neutralize the
negative impact of the market.
2. Risks of contract fulfilling
With the aggravation of market fluctuations and during the process of contract execution, frequent
changes in the contracts, delay and pause in project progress occurred occasionally, which brought huge
impacts and influences to the Company’s internal product implementation process. Meanwhile, market
fluctuations also increased the cost and risk for fulfilling the Company’s contracts. The Company will further
strengthen the marketability and improve the speed and level of corporate response to the market to control the
risk of contract execution.
（3）Account receivable risks
With declines in operation of partial downstream clients and increases in risk of investment project, risks
increased continuously in the Company’s receivables, of which the average aging tends to increase, which will
bring huge impacts to the Company’s business performance. The Company will implement customer credit
management, strengthening the contract signing and controlling the fulfillment risk to intensify the examination
for receivables and reduce the adverse effect of overdue account receivables.
（4）Exchange rate risks
Increasing expanding of international purchase and international marketing entails the internal payments to
be influenced by exchange rate fluctuations. So, exchange loss will be suffered to some extent. As two-way
volatility of the RMB exchange rate is changing sharply, profit or loss on exchange becomes more uncertain. We
are attempting to refer to the fluctuation cycle of exchange rate and take appropriate risk-management tools to
cut down the loss maximally.
（5）Corporate earnings decline risks
To adapt to the adjustment and changes on the market structure, In 2017,we made considerable alteration on
the product mix. Orders received from high-end markets like oil and gas are declined sharply, while low-profit
products are substantially ascending, bringing about adverse impact on the overall gross margin. On the other
hand, drastic market competition forces the sales price to keep falling. So it is natural that the return on sales is
going down. Faced with this phenomenon, more efforts will be paid to upgrade internal management, lower
operation cost and enhance operating efficiency, based on which, the risk of profitability downturn will be
mitigated.
（6）Technology innovation risks
We will practice the spirit of “13th five-year strategy” to invest more on independent technology of
researching gas turbine. Given poor domestic technology, long-range of technology development, enormous
funding, uncertainty from development to application and greater risk of technology, we are planning to
accelerate R&D building, intensify cooperation with research institutions at home and abroad, launch study of
new technology in a scientific and scrupulous manner and reduce the risk of technical innovation.
23
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
（7）Overseas market risks
During implementation of “13th five-year strategy”, we are intending to devote major efforts to “going
global” strategy to further open up oversea targeted markets where we will gain more international market shares
and improve our influence. However, influenced by geopolitical conflict, volatile political and economic
situation and trade barriers in the overseas markets, the strategy of expanding overseas market becomes more
uncertain. In view of this, we will reinforce market investigation, validate solutions and figure out development
way for the localized business.
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Meeting Type participation Convened date Disclosure date Index to disclosed information
ratio
Resolutions of the Shareholders’
Annual Annual Meeting
2016 Shareholders’ general
Shareholders’ 69.41% June 30,2017 July 1,2017 2016(Announcement No. 2017-48)
meeting
General Meeting
released by
Http://www.cninfo.com.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the
reporting period
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of
the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
Not existent
24
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□Yes√No
V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
Not applicable
VII. Bankruptcy and restructuring
No such cases in the reporting period.
VIII. Legal matters
Signifieant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other legal matters
Not applicable
IX. Punishments and rectifications
Not existent
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
Not existent
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
Not existent
25
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
XII.Material related transactions
1. Related transactions in connection with daily operation
Whether
Trading
over the
Principle of limit Index of
Amount of Ratio in approve Market price
Type of Subjects of the related pricing the Price of Way of informatio
Related parties Relationship trade similar approved of similar Date of disclosure
trade transactions related trade payment n
RMB0’000 trades d limited trade available
transactions disclosure
（RMB’000
or not
0）
(Y/N)
Hangzhou Hangfa Bank
Affiliate of the Purchase of Market
Power Generating Generators Fair and just 5,668.89 6.04% 14,100 No 6000.00 March 18,2017 2017-21
Group goods price
Equipment Co., Ltd. transfer
Total -- -- 5,668.89 -- 14,100 -- -- -- -- --
Details of any sales return of a large amount No
Give the actual situation in the report period where a forecast had been
No more than expected
made for the total amounts of routine related-party transactions by type to
occur in the current period(if any)
Reason for any significant difference between the transaction price and
Not applicable
the market refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
No such cases in the reporting period.
26
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
3. Related-party transitions with joint investments
Balance at Current newly
Whether has non-business capital Current recovery Current i
Related Relationship Causes period-begin added Interest rate
occupying or not （RMB’0000） （RMB’
（RMB’0000） （RMB’0000）
The controlling Hangzhou Jushi Investment Services: investment management,
Hangzhou Steam Turbine Power
shareholder of the Partnership（Limited industrial investment, investment 190 million 31,493.69 18,990.29 -5.13
Group Co., Ltd
company parnership） advice (except securities, futures)
Progress of major construction projects under construction (if
Nil
any)
27
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
4. Credits and liabilities with related parties
No such cases in the reporting period.
5. Other significant related-party transactions
No such cases in the reporting period.
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
No such cases in the reporting period.
（2）Contracting
No such cases in the reporting period.
（3）Leasing
No such cases in the reporting period.
2.Significant guarantees
（1）Guarantees
In RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Amount Complete
happening Actual for
Name of the date/No. of of implement
(Date of mount of Guarantee type Guarantee term associated
Company the Guarant ation
signing guarantee parties
guaranteed ee or not
agreement) (Yes or no)
amount
Hangzhou Steam October 22,2016 20,800 December 28,2016 20,800 Mortgage Two years No Yes
28
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Turbine Power from the date
Group Co., Ltd of expiration
of the
principal debt
Total amount ofoutward
Total amount of outward guaranteeapproved
20,800 guarantee actuaily incurred 20,800
in the report period（A1）
in the report period（A2）
Total balance of actual
Total of external guarantee
20,800 external guarantee at 20,800
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Relevant Complet
Date of Guarantee
disclosure e
Name of the Amount happening Actual for
date/No. of Guarantee Guarantee impleme
Company of (Date o mount of associated
the type term ntation
guaranteed guarantee signing guarantee parties
guaranteed or
agreement) (Yes or no)
amount not
Hangzhou
Guoneng Steam
The joint liability
Turbine January 21,2017 2,000 January 20,20 17 2,000 1 year No No
guaranty
Engineering Co.,
Ltd.
Total of actual guarantee
Total of guarantee for subsidiaries
2,000 for subsidiaries in the 1,900
approved in the Period (B1)
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
2,000 for subsidiaries at 1,900
approved at Period-end (B3)
Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implement for
date/No. of Guarantee Guarant
Company of (Date o mount of ation associated
the type ee term
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Hangzhou
Guoneng Steam
The joint liability
Turbine January 21,2017 5,000 January 20,2017 5,000 1 year No No
guaranty
Engineering Co.,
Ltd.
Hangzhou
The joint liability
Guoneng Steam April 26,2017 10,000 April 26,2017 10,000 1 year No No
guaranty
Turbine
29
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Engineering Co.,
Ltd.
Total amount of guarantee to
Total guarantee quota to the subsidiaries the subsidiaries actually
15,000 6,183
approved in the reporting period (C1) incurred in the reporting
period (C2)
Total balance of actual
Total guarantee quota to the subsidiaries
guarantee to the subsidiaries
approved at the end of the reporting period 15,000 6,183
at the end of the reporting
(C3)
period (C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
37,800 28,883
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
37,800 Period-end 28,883
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net
4.51%
assets of the company(A4+B4+C4)
Including ：
Amount of guarantee for shareholders, actual controller and its
20,800
associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 0
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the company
0
exceed 50%（F）
Total guarantee Amount of the abovementioned guarantees（D+E+F） 20,800
Explanations on possibly bearing joint and several liquidating
Nil
responsibilities for undue guarantees ( If any)
Explanations on external guarantee against regulated procedures(If
Nil
any)
Description of the guarantee with complex method
(1) Hangzhou Heavy Machinery Co., Ltd, which is the company's subsidiary, had made an application of special
construction funds of RMB 0.208 billion to China Development Fund Co.,Ltd, and it has signed the four-party
China Development Fund Investment Contract with China Development Fund ,the company and Hangzhou Steam
Turbine Group Co.,Ltd. In order to ensure the performance of the "Investment contract" by Hangzhou steam
group, the company and the Heavy Machinery Co., Ltd provide guarantee for Hangzhou Steam Group in the
forms of pledge and mortgage.
The contents is detailed in the Announcement on External Guarantee of Hangzhou Steam Turbine Co., Ltd.
announced on October 22, 2016 at the website designated by the Shenzhen Stock Exchange (http //
www.cninfo.com.cn). (Announcement No. 2016-75)
30
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
（2）Illegal providing of external guarantees
No illegal providing of external guarantees in the report period.
3. Other significant contracts
No such cases in the reporting period.
XV.Social responsibilities
1.Overview of the annual targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up plan
either.
2.Major environmental protection
The listed company and its subsidiary not belongs to the key sewage units released from environmental protection
department Not applicable such cases in the reporting period.
XVI.Other material events
No such cases in the reporting period.
XVII. Material events of subsidiaries
Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus
common Other Subtotal Quantity Proportion
allotment shares
reserve
fund
I. Shares with trade restriction 479,944,281 63.65% 0 0 0 1,044 1,044 479,945,325 63.65%
31
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
conditions
2. State-owned shares 479,824,800 63.64% 0 0 0 0 0 479,824,800 63.64%
3. Other domestic shares 119,481 0.01% 0 0 0 1,044 1,044 120,525 0.01%
Domestic natural person
119,481 0.01% 0 0 0 1,044 1,044 120,525 0.01%
shares
II. Shares without trading
274,066,119 36.35% 0 0 0 -1,044 -1,044 274,065,075 36.35%
limited conditions
2.Foreign shares listed at
274,066,119 36.35% 0 0 0 -1,044 -1,044 274,065,075 36.35%
home
III. Total of capital shares 754,010,400 100.00% 0 0 0 0 0 754,010,400 100.00%
Causes of Change of shares
Not applicable
Approval of change of the shares
Not applicable
Transfer in change of shares
Not applicable
Influence of the change of the shares upon such financial indicators as the basic EPS and diluted EPS, net asset
value per share attributable to the common stockholders in the past year and the latest period
Not applicable
Other information the Company considers it necessary or required by the securities regulatory authority to be
disclosed
Not applicable
2. Change of shares with limited sales condition
Not applicable
II.Issuing and listing
Not applicable
32
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
III. Shareholders and shareholding
In Shares
Total number of preferred
Total number of common
shareholders that had restored the
shareholders at the end of the 15,147 0
voting right at the end of the
reporting period
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of
share
Proporti
Number of Changes in Amount of Amount of pledged/froz
Nature of on of
Shareholders shares held at reporting restricted shares un-restricted en
shareholder shares
period -end period held shares held State
held（%） Amo
of
unt
share
Hangzhou Steam Turbine Power Group State-owned
Co., Ltd. legal person 63.64% 479,824,800 0 479,824,800 0
Shanwan Hongyuan Securities (HK) Foreign legal
0.65% 4,901,766 -331,500 0 4,901,766
Co.,Ltd. person
BBH A/C VANGUARD EMERGING Foreign legal
0.63% 4,722,804 0 0 4,722,804
MARKETS STOCK INDEX FUND person
Foreign legal
NORGES BANK 0.57% 4,303,675 0 0 4,303,675
person
VANGUARD TOTAL
Foreign legal
INTERNATIONAL STOCK INDEX 0.46% 3,454,046 83,900 0 3,454,046
person
FUND
GUOTAI JUNAN Foreign legal
0.38% 2,885,894 -1,098,274 0 2,885,894
SECURITIES(HONGKONG) LIMITED person
CHINA INT'L CAPITAL CORP HONG Foreign legal
0.32% 2,425,960 150,000 0 2,425,960
KONG SECURITIES LTD person
ISHARES CORE MSCI EMERGING Foreign legal
0.32% 2,382,800 832,300 0 2,382,800
MARKETS ETF person
State-owned
China Merchants Secutities(HK)Co., Ltd. 0.31% 2,304,255 162,275 0 2,304,255
legal person
Domestic
Xia Zulin 0.28% 2,100,000 0 0 2,100,000
Natural person
Strategy investors or general legal person becomes top 10
shareholders due to rights issued (if applicable)（See Not applicable
Notes 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)
Explanation on associated relationship among the (2) There is no relationship between Hangzhou Steam Turbine Power Group Co., Ltd.
and other shareholders;
aforesaid 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
33
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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 period Category of shares Amount
Foreign shares placed
Shanwan Hongyuan Securities (HK) Co.,Ltd. 4,901,766 4,901,766
in domestic exchange
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX Foreign shares placed
4,722,804 4,722,804
FUND in domestic exchange
Foreign shares placed
NORGES BANK 4,303,675 4,303,675
in domestic exchange
Foreign shares placed
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3,454,046 3,454,046
in domestic exchange
Foreign shares placed
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 2,885,894 2,885,894
in domestic exchange
Foreign shares placed
CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD 2,425,960 2,425,960
in domestic exchange
Foreign shares placed
ISHARES CORE MSCI EMERGING MARKETS ETF 2,382,800 2,382,800
in domestic exchange
Foreign shares placed
China Merchants Secutities(HK)Co., Ltd. 2,304,255 2,304,255
in domestic exchange
Foreign shares placed
Xia Zulin 2,100,000 2,100,000
in domestic exchange
Foreign shares placed
CREDIT SUISSE AG HONG KONG BRANCH 1,729,759 1,729,759
in domestic exchange
1）It is unknown to the Company if there is any relationship among the top
Explanation on associated relationship or consistent action among the 10 common share holders without restriction;
top 10 shareholders of non-restricted negotiable shares and that (2) Hangzhou Steam Turbine Group Co., Ltd. is not an action-in-concert”
between the top 10 shareholders of non-restricted negotiable shares and party with any of other shareholders as described by the “Administration
top 10 shareholders Rules of Informational Disclosure about Change of Shareholding Statues of
PLCs”.
Notes to the shareholders involved in financing securities (if any)(See
Not applicable
Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
34
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
There was no any change of the actual controller of the Company in the reporting period.
VII. Situation of the Preferred Shares
The Company had no preferred shares in the reporting period
35
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount of Amount of Number of Number of
Number of
Shares shares shares Shares restricted restricted
restricted stock
Office held at the increased at decreased at held at the stock granted stock granted
Name Position granted at the
status year-begin the reporting the reporting year-endin at the at the
year-begin .
(share) period(share period(share g（share） reporting year-ending(sh
share)
) ) period(share) are)
In
Zhen Bin Chairman 0 0 0 0 0 0 0
office
Yan In
Vice Chairman 0 0 0 0 0 0 0
Jinhua office
Yang In
Vice Chairman 0 0 0 0 0 0 0
Yongming office
Nie In
Director 0 0 0 0 0 0 0
Zhonghai office
In
Ye Zhong Director 0 0 0 0 0 0 0
office
Wang Director, secretary of the In
0 0 0 0 0 0 0
office
Gang board
Kong Director, Vice GM, Chief In
0 0 0 0 0 0 0
office
Jianqiang engineer
Gu In
Independent Director 0 0 0 0 0 0 0
Xinjian office
Ma In
Independent Director 0 0 0 0 0 0 0
Lihong office
ZhangXia In
Independent Director 0 0 0 0 0 0 0
oyan office
Chen In
Independent Director 0 0 0 0 0 0 0
Danhong office
Chairman of the In
Li Shijie 0 0 0 0 0 0 0
Supervisory Committee office
Wang In
Supervisor 70,076 7,100 0 77,176 0 0 0
office
Xiaohui
Liu In
Supervisor 15,400 1,200 0 16,600 0 0 0
office
Zhiyong
36
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
In
Lu Jianhua Employee Supervisor 0 0 0 0 0 0 0
office
In
Fang Yin Employee Supervisor 0 0 0 0 0 0 0
office
Zhang In
Vice GM 66,924 0 0 66,924 0 0 0
office
Shutan
Pu In
Vice GM, Chif Accountant 0 0 0 0 0 0 0
office
Yangshuo
Li In
Vice GM 0 0 0 0 0 0 0
office
Jiansheng
Wang In
Vice GM 0 0 0 0 0 0 0
office
Zhengrong
Liu Dimiss
Director 0 0 0 0 0 0 0
ion
Guoqiang
Zhang Dimiss
Supervisor 0 0 0 0 0 0 0
ion
Yougen
Yu
Vice GM, secretary of the Dimiss
Changqua 0 0 0 0 0 0 0
ion
board
n
Total -- -- 152,400 8,300 0 160,700 0 0 0
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Due to the legal retirement age, apply
Liu Guoqiang Director Dimission June 8,2017
for resignation of director.
Due to the legal retirement age, apply
for resignation of Vice General
Yu Changquan Vice GM, secretary of the board Dimission June 8,2017 Manager and secretary of the board
Due to the legal retirement age, apply
Zhang Yougen Supervisor Dimission June 8,2017
for resignation of Supervisor.
37
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No
38
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
X. 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 30,2017
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 1,055,809,378.48 895,037,559.34
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations accounted into
current income account
Derivative financial assets
Bill receivable 696,089,138.40 479,716,321.62
Account receivable 1,812,297,540.52 1,870,173,348.32
Prepayments 449,234,213.67 202,184,858.83
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable 6,900,000.00
Other account receivable 20,732,713.40 31,024,707.72
Repurchasing of financial assets
Inventories 2,052,667,695.99 1,901,544,358.26
Assets held for sales
Non-current asset due in 1 year
Other current asset 773,074,562.65 863,018,479.59
Total of current assets 6,866,805,243.11 6,242,699,633.68
Non-current assets：
Loans and payment on other’s behalf disbursed
Disposable financial asset 3,010,113,616.40 3,060,865,862.60
Expired investment in possess
Long-term receivable
Long term share equity investment
Property investment
39
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Fixed assets 601,473,873.27 615,922,109.91
Construction in progress 156,071,663.76 153,743,889.41
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 294,379,424.68 297,405,434.08
R & D petrol
Goodwill
Long-germ expenses to be amortized 1,298,386.93 1,430,968.81
Deferred income tax asset 181,540,697.65 178,831,809.85
Other non-current asset
Total of non-current assets 4,244,877,662.69 4,308,200,074.66
Total of assets 11,111,682,905.80 10,550,899,708.34
Current liabilities
Short-term loans 197,700,000.00 173,000,000.00
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 151,467,745.11 143,007,715.10
Account payable 1,098,063,222.70 853,452,589.51
Advance payment 2,197,267,051.95 1,827,959,793.62
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 61,066,908.72 71,224,634.03
Tax payable 30,489,787.90 90,239,673.16
Interest payable 134,376.32
Dividend payable
Other account payable 29,028,860.33 30,820,980.80
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 18,300,000.00 18,500,000.00
Other current liability
Total of current liability 3,783,383,576.71 3,208,339,762.54
Non-current liabilities：
Long-term loan 4,900,000.00 4,900,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 208,330,000.00 208,357,733.33
40
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Long-term payable employees’s remuneration
Special payable
Expected liabilities
Deferred income 7,230,895.00 5,422,895.00
Deferred income tax liability 374,927,562.79 378,256,646.95
Other non-current liabilities
Total non-current liabilities 595,388,457.79 596,937,275.28
Total of liability 4,378,772,034.50 3,805,277,037.82
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 139,590,345.09 139,590,345.09
Less：Shares in stock
Other comprehensive income 2,118,804,200.50 2,137,419,299.84
Special reserves 27,410,792.30 27,546,353.37
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Undistributed profit 2,749,662,841.53 2,705,667,037.15
Total of owner’s equity belong to the parent company 6,410,591,387.20 6,385,346,243.23
Minority shareholders’ equity 322,319,484.10 360,276,427.29
Total of owners’ equity 6,732,910,871.30 6,745,622,670.52
Total of liabilities and owners’ equity 11,111,682,905.80 10,550,899,708.34
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
41
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
2.Parent Company Balance Sheet
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 509,852,012.62 293,454,126.93
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 432,739,001.55 269,527,716.22
Account receivable 1,303,750,154.04 1,424,950,696.58
Prepayments 336,165,228.69 115,383,408.34
Interest receivable
Dividend receivable 6,900,000.00
Other account receivable 6,716,918.20 68,004,706.24
Inventories 1,613,252,066.78 1,446,652,799.71
Assets held for sales
Non-current asset due in 1 year
Other current asset 520,521,180.25 600,000,000.00
Total of current assets 4,729,896,562.13 4,217,973,454.02
Non-current assets：
Disposable financial asset 2,969,353,926.82 3,020,106,173.02
Expired investment in possess
Long-term receivable
Long term share equity investment 502,919,378.03 502,919,378.03
Property investment
Fixed assets 294,792,259.17 315,900,380.66
Construction in progress 97,239,204.16 94,170,909.99
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 172,814,800.34 173,826,293.57
R & D petrol
Goodwill
Long-germ expenses to be amortized 507,773.78 507,773.78
Deferred income tax asset 138,358,890.73 133,581,773.70
Other non-current asset
Total of non-current assets 4,175,986,233.03 4,241,012,682.75
Total of assets 8,905,882,795.16 8,458,986,136.77
Current liabilities
42
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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 695,002,224.56 486,810,046.42
Advance payment 1,730,607,672.72 1,476,780,338.78
Employees’ wage payable 36,149,617.16 44,035,408.19
Tax payable 13,893,568.58 64,247,326.24
Interest payable
Dividend payable
Other account payable 13,499,400.95 21,562,998.72
Classified as held for sale debt
Non-current liability due in 1 year
Other current liability
Total of current liability 2,589,152,483.97 2,193,436,118.35
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable to employees
Special payable
Expected liabilities
Deferred income 400,000.00
Deferred income tax liability 374,927,562.79 378,256,646.95
Other non-current liabilities
Total of Non-current liabilities 375,327,562.79 378,256,646.95
Total of liability 2,964,480,046.76 2,571,692,765.30
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 138,953,250.09 138,953,250.09
Less：Shares in stock
Other comprehensive income 2,118,935,346.56 2,137,800,156.80
Special reserves 10,848,700.83 10,874,033.85
Surplus reserves 602,356,402.65 602,356,402.65
Undistributed profit 2,316,298,648.27 2,243,299,128.08
43
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Total of owners’ equity 5,941,402,748.40 5,887,293,371.47
Total of liabilities and owners’ equity 8,905,882,795.16 8,458,986,136.77
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
3.Consolidated Income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 1,663,724,702.26 1,367,423,771.88
Incl：Business income 1,663,724,702.26 1,367,423,771.88
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,690,731,044.09 1,416,467,334.78
Incl：Business cost 1,192,385,051.48 850,937,906.04
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 18,736,550.58 8,423,250.87
Sales expense 81,874,015.85 75,867,593.98
Administrative expense 354,411,777.81 355,106,918.55
Financial expenses 7,945,244.29 512,029.17
Asset impairment loss 35,378,404.08 125,619,636.17
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 88,988,506.53 15,045,334.62
Incl: investment gains from affiliates
Gains from currency exchange（“-”for loss）
Other income
III. Operational profit（“-”for loss） 61,982,164.70 -33,998,228.28
Add ：Non-operational income 4,554,849.88 6,844,762.02
Including：Income from disposal of non-current assets 196,910.10 17,299.04
Less：Non business expenses 279,791.13 1,957,694.65
Incl：Loss from disposal of non-current assets 16,356.68 181,198.86
IV.Total profit(“-”for loss) 66,257,223.45 -29,111,160.91
Less：Income tax expenses 6,528,367.57 -2,833,931.34
V. Net profit 59,728,855.88 -26,277,229.57
Net profit attributable to the owners of parent company 43,995,804.38 -31,252,238.19
Minority shareholders’ equity 15,733,051.50 4,975,008.62
VI. Other comprehensive income -18,278,353.57 881,469.91
Net of profit of other comprehensive income attributable to owner -18,615,099.34 375,326.36
44
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
s of the parent 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 debt
or net assets
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
（II）
Other comprehensive income that will be reclassified into profit o -18,615,099.34 375,326.36
r loss.
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 fi
-18,864,810.24
nancial 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 249,710.90 375,326.36
6.Other
Net of profit of other comprehensive income attributable to Minor 336,745.77 506,143.55
ity shareholders’ equity
VII. Total comprehensive income 41,450,502.31 -25,395,759.66
Total comprehensive income attributable to the owner of the
25,380,705.04 -30,876,911.83
parent company
Total comprehensive income attributable minority shareholders 16,069,797.27 5,481,152.17
VIII. Earnings per share
（I）Basic earnings per share 0.06 -0.04
(II)Diluted earnings per share 0.06 -0.04
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 1,116,145,080.61 873,700,389.36
Incl：Business cost 848,982,146.60 546,117,341.96
Business tax and surcharge 8,356,402.38 4,800,667.41
Sales expense 49,356,881.16 47,863,806.18
Administrative expense 250,148,727.95 229,290,837.78
Financial expenses 6,147,008.61 -1,442,851.52
Asset impairment loss 27,643,907.83 112,015,979.74
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 141,313,652.53 78,813,819.71
Incl: investment gains from affiliates
Other income
II. Operational profit（“-”for loss） 66,823,658.61 13,868,427.52
45
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Add ：Non-operational income 1,412,613.95 17,813.04
Including：Income from disposal of non-current assets 17,299.04
Less：Non business expenses 13,869.40 755,697.76
Incl：Loss from disposal of non-current assets 1,824.00 10,000.00
III.Total profit(“-”for loss) 68,222,403.16 13,130,542.80
Less：Income tax expenses -4,777,117.03 -9,434,020.27
IV. Net profit（“-”for net loss） 72,999,520.19 22,564,563.07
V.Net of profit of other comprehensive income -18,864,810.24
（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 ）
Other comprehensive income that will be reclassified into profit o -18,864,810.24
r loss.
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 fi
nancial assets -18,864,810.24
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 54,134,709.95 22,564,563.07
VII. Earnings per share：
（I）Basic earnings per share 0.10 0.03
(II)Diluted earnings per share 0.10 0.03
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
46
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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 1,555,387,534.42 1,473,696,926.54
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 12,410,348.67 3,966,504.78
Other cash received from business operation 8,010,282.03 6,687,244.05
Sub-total of cash inflow 1,575,808,165.12 1,484,350,675.37
Cash paid for purchasing of merchandise and
services 981,236,472.17 734,853,982.91
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 364,610,619.54 359,098,202.15
Taxes paid 161,287,307.24 96,854,083.68
Other cash paid for business activities 78,984,121.75 78,845,353.68
Sub-total of cash outflow from business activities 1,586,118,520.7 1,269,651,622.42
Cash flow generated by business operation, net -10,310,355.58 214,699,052.95
II.Cash flow generated by investing
47
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Cash received from investment retrieving 48,558,351.80
Cash received as investment gains 82,088,506.53 15,045,334.62
Net cash retrieved from disposal of fixed assets,
intangible assets, and other long-term assets 411,254.18 16,900.00
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received 1,819,767,338.00 812,150,000.00
Sub-total of cash inflow due to investment
activities 1,950,825,450.51 827,212,234.62
Cash paid for construction of fixed assets,
intangible assets and other long-term assets 43,584,080.28 48,665,372.66
Cash paid as investment 20,000,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities 1,729,150,000.00 938,850,000.00
Sub-total of cash outflow due to investment
activities 1,792,734,080.28 987,515,372.66
Net cash flow generated by investment 158,091,370.23 -160,303,138.04
III.Cash flow generated by financing
Cash received as investment 706,350.00
Incl: Cash received as investment from minor
shareholders
Cash received as loans 84,700,000.00 69,000,000.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities 84,700,000.00 69,706,350.00
Cash to repay debts 60,200,000.00 73,200,000.00
Cash paid as dividend, profit, or interests 40,718,824.40 38,336,434.28
Incl: Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities 12,824,456.40
Sub-total of cash outflow due to financing
activities 113,743,280.80 111,536,434.28
Net cash flow generated by financing -29,043,280.80 -41,830,084.28
IV. Influence of exchange rate alternation on cash
and cash equivalents -3,125,917.43 4,197,480.42
V.Net increase of cash and cash equivalents 115,611,816.42 16,763,311.05
Add: balance of cash and cash equivalents at the
beginning of term 895,037,559.34 751,596,796.24
VI ..Balance of cash and cash equivalents at the
end of term 1,010,649,375.76 768,360,107.29
48
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
49
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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 1,049,529,364.15 956,195,266.24
Tax returned 359,071.25
Other cash received from business operation 2,093,123.85 4,624,232.32
Sub-total of cash inflow 1,051,622,488.00 961,178,569.81
Cash paid for purchasing of merchandise and
services 734,953,285.93 421,216,904.08
Cash paid to staffs or paid for staffs 253,543,483.95 252,191,310.76
Taxes paid 94,956,342.26 30,208,059.26
Other cash paid for business activities 27,015,518.68 21,407,844.59
Sub-total of cash outflow from business activities 1,110,468,630.82 725,024,118.69
Cash flow generated by business operation, net -58,846,142.82 236,154,451.12
II.Cash flow generated by investing
Cash received from investment retrieving 48,558,351.80
Cash received as investment gains 134,413,652.53 78,813,819.71
Net cash retrieved from disposal of fixed assets,
intangible assets, and other long-term assets 16,900.00
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received 1,145,943,056.16 383,150,000.00
Sub-total of cash inflow due to investment
activities 1,328,915,060.49 461,980,719.71
Cash paid for construction of fixed assets,
intangible assets and other long-term assets 24,023,500.62 33,856,128.76
Cash paid as investment 20,000,000.00
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities 1,005,000,000.00 643,150,000.00
Sub-total of cash outflow due to investment
activities 1,049,023,500.62 677,006,128.76
Net cash flow generated by investment 279,891,559.87 -215,025,409.05
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 1,693,611.11 1,702,916.67
Cash paid as dividend, profit, or interests
Other cash paid for financing activities
Sub-total of cash outflow due to financing
activities 1,693,611.11 1,702,916.67
50
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Net cash flow generated by financing -1,693,611.11 -1,702,916.67
IV. Influence of exchange rate alternation on cash
and cash equivalents -3,383,920.25 2,534,574.35
V.Net increase of cash and cash equivalents 215,967,885.69 21,960,699.75
Add: balance of cash and cash equivalents at the
beginning of term 293,454,126.93 387,916,202.79
VI ..Balance of cash and cash equivalents at the
end of term 509,422,012.62 409,876,902.54
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
51
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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
Other Equity
instrument Less
: Comm Minor
Items pref Other Total of owners’
Shar Specialized on risk shareholders’
Share Capital erre Sust Ot Capital reserves Comprehensive Surplus reserves Attributable profit equity
es in reserve provisi equity
d aina he Income
stoc on
stoc ble r k
k debt
I.Balance at the end of last year 754,010,400.00 139,590,345.09 2,137,419,299.84 27,546,353.37 621,112,807.78 2,705,667,037.15 360,276,427.29 6,745,622,670.52
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of
754,010,400.00 139,590,345.09 2,137,419,299.84 27,546,353.37 621,112,807.78 2,705,667,037.15 360,276,427.29 6,745,622,670.52
current year
III.Changed in the current year -18,615,099.34 -135,561.07 43,995,804.38 -37,956,943.19 -12,711,799.22
（1）Total comprehensive income -18,615,099.34 43,995,804.38 16,069,797.27 41,450,502.31
（II）Investment or decreasing of
-19,800,000.00 -19,800,000.00
capital by owners
1．Ordinary Shares invested by S
hareholders
2 ． Holders of other equity instru
ments invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment -34,303,448.90 -34,303,448.90
1.Providing of surplus reserves
2.Providing of common risk
52
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
provisions
3．Allotment to the owners (or
-34,303,448.90 -34,303,448.90
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 -135,561.07 76,708.44 -58,852.63
1. Provided this year 537,862.83 220,142.02 758,004.85
2．Used this term 673,423.90 143,433.58 816,857.48
（VI）Other
IV. Balance at the end of this term 754,010,400.00 139,590,345.09 2,118,804,200.50 27,410,792.30 621,112,807.78 2,749,662,841.53 322,319,484.10 6,732,910,871.30
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Comm Minor
Items pref Other Total of owners’
Shares Specialized on risk shareholders’
Share Capital erre Ot Capital reserves Comprehensiv Surplus reserves Attributable profit equity
in reserve provisi equity
d Sustai he stock
e Income
on
stoc nable r
debt
k
I.Balance at the end of last year 754,010,400.00 139,590,345.09 -852,752.00 31,764,920.51 621,112,807.78 2,673,711,591.42 369,799,705.35 4,589,137,018.15
Add: Change of accounting policy
Correcting of previous errors
53
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Merger of entities under common
control
Other
II.Balance at the beginning of
754,010,400.00 139,590,345.09 -852,752.00 31,764,920.51 621,112,807.78 2,673,711,591.42 369,799,705.35 4,589,137,018.15
current year
III.Changed in the current year 375,326.36 -179,698.16 -31,252,238.19 -28,601,193.39 -59,657,803.38
（1）Total comprehensive income 375,326.36 -31,252,238.19 5,481,152.16 -25,395,759.67
（II）Investment or decreasing of
capital by owners
1．Ordinary Shares invested by She
reholders
2．Holders of other equity instrume
nts invested capital
3．Allotment to the owners (or
shareholders)
4．Other
（III）Profit allotment -34,421,187.50 -34,421,187.50
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
-34,421,187.50 -34,421,187.50
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 -179,698.16 338,841.95 159,143.79
54
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
1. Provided this year 1,168,964.22 570,903.32 1,739,867.54
2．Used this term 1,348,662.38 232,061.37 1,580,723.75
（VI）Other
IV. Balance at the end of this term 754,010,400.00 139,590,345.09 -477,425.64 31,585,222.35 621,112,807.78 2,642,459,353.23 341,198,511.96 4,529,479,214.77
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
55
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrument Less:
Other
Items Shares Common risk Total of owners’
Share Capital Capital reserves Comprehensive Surplus reserves Attributable profit
preferred in provision equity
Sustaina Other
stock Income
ble debt stock
I.Balance at the end of last year 754,010,400.00 138,953,250.09 2,137,800,156.80 10,874,033.85 602,356,402.65 2,243,299,128.08 5,887,293,371.47
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of
754,010,400.00 138,953,250.09 2,137,800,156.80 10,874,033.85 602,356,402.65 2,243,299,128.08 5,887,293,371.47
current year
III.Changed in the current year -18,864,810.24 -25,333.02 72,999,520.19 54,109,376.93
（I）Total comprehensive income -18,864,810.24 72,999,520.19 54,134,709.95
(II) Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by sha
reholders
2．Holders of other equity instrume
nts invested capital
3.Amount of shares paid and
56
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
accounted as owners’ equity
4．Other
（III）Profit allotment
1.Providing of surplus reserves
2．Allotment to the owners (or
shareholders)
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 -25,333.02 -25,333.02
1. Provided this year 299,375.65 299,375.65
2．Used this term 324,708.67 324,708.67
（VI）Other
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 2,118,935,346.56 10,848,700.83 602,356,402.65 2,316,298,648.27 5,941,402,748.40
Amount in last year
In RMB
Items Amount in last year
57
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Other Equity instrument Other
Less:
Compre Common risk Total of owners’
Share Capital Capital reserves Shares in Surplus reserves Attributable profit
preferre hensive provision equity
Sustainable Other
d stock stock
debt Income
I.Balance at the end of last year 754,010,400.00 138,953,250.09 13,098,989.67 602,356,402.65 2,201,224,089.10 3,709,643,131.51
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
754,010,400.00 138,953,250.09 13,098,989.67 602,356,402.65 2,201,224,089.10 3,709,643,131.51
current year
III.Changed in the current year 22,564,563.07 22,564,563.07
（I）Total comprehensive
22,564,563.07 22,564,563.07
income
(II) Investment or decreasing of
capital by owners
1．Ordinary Shares invested by
shareholders
2 ． Holders of other equity instr
uments invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment
1.Providing of surplus reserves
58
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
2．Allotment to the owners (or
shareholders)
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 549,654.39 549,654.39
2．Used this term 549,654.39 549,654.39
（VI）Other
IV. Balance at the end of this
754,010,400.00 138,953,250.09 13,098,989.67 602,356,402.65 2,223,788,652.17 3,732,207,694.58
term
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiama
59
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
III.Company Profile
Hangzhou Steam Turbine Co., Ltd. (the Company) was incorporated as a joint stock limited company
exclusively promoted by Hangzhou Steam Turbine & Power Group Company Limited (“HSTG”) approved by the
Securities Regulatory Commission of the State Council with the Document SRC [1998] No. 8 by offering
domestically listed foreign currency ordinary shares (B Shares), with registration date: April 23, 1998,
Headquartered in Hangzhou, Zhejiang Province. The company now holds a unified social credit code for the
913300007042026204 business license, The Company’s registered capital is increased to RMB754.0104 million
with total capital share of 754.0104 million shares (face value RMB1.00). Among which state-owned legal person
shares were 479.8248 million shares and 274.1856 million shares of current B shares. The shares were issued and
listed for trading in Shenzhen Stock Exchange on April 28, 1998.
The scope of main businesses of the Company: The design, manufacturing, and service of steam turbine, gas
turbine, other rotating and reciprocate machinery and auxiliary equipment, and spare parts and components.
Wholesale, import & export, and service of packaged equipment in electric power supply, industrial driving, and
industrial turbine, Energy Conservation and environmental protection project general contracting.
24 subsidiaries including Zhejiang Steam Turbine Packaged Technologies Co., Ltd., Hangzhou Zhongneng Steam
Turbine Power Co., Ltd., Hangzhou Steam Turbine Casting Co., Hangzhou Steam Turbine Auxiliary Co., Ltd.,
Hangzhou Steam Turbine Machinery & Equipment Co., Ltd., Zhejiang Turbine Import & Export Co., Ltd., and
Hangzhou Steam Turbine Industry Co., Ltd., were consolidated to the Financial Statements. For details of
changing consolidation range and equity position please go to the Notes to the Financial Statements.
IV. Basis of compiling the finance report
(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
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.
Important prompt:
1. 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.
2. Fiscal year
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
3. Operational period
The Company’s relatively shorter operational period, which is 12 months, and is used as division of liquidity of
assets and liabilities.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
5. 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.
6. 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.
7. 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.
8. 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
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.
9. Financial instruments
1. Type of finance asset and finance debt Finance assets fall into four categories at initial recognition: 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 fall into two types at initial recognition: 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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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.
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
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
62
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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. Recognition of fair value of financial assets and liabilities
The Company utilizes evaluation technologies supported by sufficient data and information to recognize the fair
values of financial assets and liabilities. Values inputted to the evaluation technology are divided into following
levels and used in sequence:
(1) Level 1 input: unadjusted quotations obtained from an active market of the similar asset or liability at the date
of measurement;
(2) Level 2 input: values of the asset or liability observable, directly or indirectly, other than level 1 input,
including: quotation of similar asset or liability in an active market; quotation of similar asset or liability in an
non-active market; other observable value other than quotations, i.e. observable interest or gain curves in normal
intervals of quotations.
(3) Level 3 input: non-observable input value of the asset or liability, including interest rates which are not
observable or not testified by observable market data, fluctuation of stock prices, future cash flow of disposal
liabilities undertaken from merger of entities, or financial predictions upon data itself.
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) In dealing with major financial assets such as investment hold-to-mature, loans, and receivables, the Company
conduct independently impairment test for single finance asset. Impairment tests are conducted 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. The balance of book value over current value of expected future cash flow
is recognized as impairment loss.
(3) Objective evidences of impairment on sellable financial assets 1) Objective evidences supporting the
impairment of investment on sellable liability instruments are: a. Material financial dilemma with the debtor; b.
Violating of the contract by the debtor, e.g. overdue of payment for interests or principal; c. Compromise made to
the debtor who is in financial crisis with consideration of financial or legal factors; d. Possible bankruptcy or
financial restructuring of the debtor; e. The liability instrument is not able to be traded in an active market for the
debtor is in material financial dilemma; f. Other circumstances that are showing that impairment has already
occurred.
2) Objective evidence showing that impairment has already occurred on sellable equity instruments are:
significant or non-temporary fall of fair value, the invested entities suffers from material negative situations in
aspects of technical, market, economy, or legislation environment. The Company performs tests on investments on
sellable equity instruments individually on the balance sheet day. For investment on equity instruments measured
on fair value, if the fair value on the balance sheet day is lower than the cost by 50% (included), or lower than the
costs for successively 12 months (included), impairment is recognized; If the fair value is lower than the cost by
more than 20% (included), but higher than 50%, or lower than the cost for successively 6 months (included) but
not more than 12 months, the Company will determine if impairment occurred with consideration of other factors,
e.g. fluctuation of prices. For those equity instruments on cost basis, the Company will decided about impairment
with consideration of the invested entities’ situations in aspects of technical, market, economy, or legislation
environment.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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
loss recognized shall be restored and accounted into current gain/loss. Impairment loss of sellable equity
investment instrument will be restored to owners’ equity when the fair value has increased afterward. When
impairment occurs on sellable equity instrument on cost basis, the balance between its book value and the current
value of the predictable future cash flow upon current market gain rate, is recognized as impairment loss and
recorded to current gain/loss account. It will not be written back in subsequent years.
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
loss recognized shall be restored and accounted into current gain/loss. Impairment loss of sellable equity
investment instrument will be restored to owners’ equity when the fair value has increased afterward.
10. Receivable accounts
(1) Recognition and providing of bad debt provision on individual receivable account with large amount
Basis of recognition or standard amount of
Accounts take over 10% of the book balance of receivable accounts
individual account with large amount
Impairment test performed individually, bad debt provision will be provided at
Basis of bad debt provision
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 Group Basis of bad debt provision
Group by age analysis Age analysis method
Combined range of association Other method
Bad debt profisions are provided on age analyze basis in the protfolio
Rate of provision on other receivable
Age Rate of provision on receivable account
account
Within 1 year)included) 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
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
64
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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.
11.Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Inventory classification
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and goods
in manufacturing procedure or working procedure.
(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
1.Low price consumable
Basis of amortizing: one-off
2.Packaging materials
Basis of amortizing: one-off
12. 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
65
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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.
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.
66
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
(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 continued 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 continued 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.
13. 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
Categories Basis of depreciation Depreciation age (year) Retain value rate Annual depreciation ratio
Straight average on
Houses & buildings 20-30 4 4.8-3.2
period
Straight average on
Equipment & machinery 8-15 4 12-6.4
period
Transportation Straight average on
4-8 4 24-12
equipment period
Straight average on
Office equipment 5 4 19.2
period
14. 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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
15. 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.
16. 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
Patent and Special technology 5-20
Software 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
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
17. 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.
18. 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.
19. Employees’ wage
1. 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.
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.
3. 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.
4. 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
asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related asset.
69
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
20. Expected liabilities
(1) When it is very much likely to cause economic interests which can be reliably calculated outflow from
the company to fulfill the obligation which is due to giving security outside, contentious matter, quality guarantee
of products, onerous contract and other contingency, the company will regard the obligation as anticipation
liabilities.
(2) The company will make an initial measurement of anticipation liabilities according to needed expense
of best estimation when fulfilling related obligations and check the book value of anticipation liabilities on the
balance sheet date.
21.Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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 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.
22. 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
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.
23. 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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
24. 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.
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
VAT Sales of goods or providing of taxable labor service 17%
City maintenance and
Turnover tax payable 7%
construction tax
Enterprise income tax Amount of income taxable 15%、25%[Notes]
Educational surcharge Turnover tax payable 3%
Local education additional Turnover tax payable 2%
For those on price basis, taxes are paid at 1.2% of the balance of
House tax original value of the property after deducting of 30%; for those on 1.2%、12%
rental basis, taxes are paid at 12% of the rental.
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Hangzhou Steam Turbine Co., Ltd. 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%
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co.,
Hangzhou Zhongneng Steam Turbine Power( Indonesia)Co., Ltd Ltd. registered in Indonesia overseas subsidiaries, the applicable
local relevant tax laws and regulations
Other Subsidiary（Domestic） 25%
(II) Preferential tax
1. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2015〕No.29) issued
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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 2016.
2. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2016〕No.149) issued
by Department of Science and Technology High-tech Development Center, Hangzhou Steam Turbine Casting Co.,
Ltd– subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they
enjoy 15% of tax for 2016.
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 2016.
VII. Notes to the Consolidated Financial Statements
1.Monetary Capital
In RMB
Items End of term Beginning of term
Cash in stock 204,146.76 326,226.09
Bank deposit 1,010,445,229.00 830,910,758.76
Other monetary fund 45,160,002.72 63,800,574.49
Total 1,055,809,378.48 895,037,559.34
Incl:Total of accounts saved overseas 3,256,410.89 4,796,746.67
Other statements
Other monetary fund composes of security for bank acceptance notes, RMB43,585,002.75 of security for Letter of
credit, RMB1,575,000 of security for bank guarantee letter. Both under limitation of using.
2.Billsreceivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
Bank acceptance 645,701,184.36 421,520,454.12
Commercial acceptance 50,387,954.04 58,195,867.50
Total 696,089,138.40 479,716,321.62
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount on pledge
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Bank acceptance 22,970,000.00
Total 22,970,000.00
（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 at the Amount of not terminated recognition at
Items
period-end the preriod -end
Bank acceptance 470,957,242.50
Total 470,957,242.50
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
3. Account receivable
（1）Detailed categories
In RMB
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision Propor
Book value Amount
Amount Proportion Amount Proportion Amount Proportion Amount Proportion tion
Account receivables
provided bad debt
2,784,969,667.51 98.94% 972,672,126.99 34.93% 1,812,297,540.52 2,812,043,945.50 98.95% 941,870,597.18 33.49% 1,870,173,348.32
provision in credit
risk groups
Account receivable
with minor
individual amount
29,819,607.69 1.06% 29,819,607.69 100.00% 29,819,607.69 1.05% 29,819,607.69 100.00%
but bad debt
provision is
provided
Total 2,814,789,275.20 100.00% 1,002,491,734.68 35.62% 1,812,297,540.52 2,841,863,553.19 100.00% 971,690,204.87 34.19% 1,870,173,348.32
Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Receivable accounts in the group on which bad debt provisions are provided on age basis
In RMB
End of term
Age
Book balance Bad debt provision Proportion
Subitem Within 1 year
Within 1 year 897,301,429.87 44,874,653.80 5.00%
Subtotal within 1 year 897,301,429.87 44,874,653.80 5.00%
1-2 years 516,378,722.74 51,637,872.29 10.00%
2-3 years 412,409,612.41 123,722,883.75 30.00%
Over 3 years 958,879,902.49 752,436,717.15
3-4 years 399,567,205.23 239,740,323.14 60.00%
4-5 years 233,081,516.26 186,465,213.01 80.00%
Over 5 years 326,231,181.00 326,231,181.00 100.00%
Total 2,784,969,667.51 972,672,126.99 34.93%
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:：
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB35,164,522.75 ; recovery or payback for bad debts
Amount is RMB0.00.
(3)The current accounts receivable write-offs situation
In RMB
Items Amount
Uncollectible amount 4,362,992.94
Of which the significant actual write-off accounts receivable:
In RMB
Nature of Arising from related
Reason for
Name account Amount written off Verification procedures transactions (Y/N)
written off
receivable
The examined and adopted to
China Air Separation Engineering Co., Ltd. Goods 1,674,643.00 quality loss No
Board of directors
Huaneng Energy saving Powergeneration Goods 760,000.00 quality loss The examined and adopted to No
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Co., Ltd. Board of directors
Debt The examined and adopted to
Tangshan Yanshan Steel Co.,Ltd. Goods 623,280.00 No
Restructuring Board of directors
Inner Mongolia Runbang Biogechnology The examined and adopted to
Goods 620,000.00 quality loss No
Co., Ltd. Board of directors
allowance The examined and adopted to
Other Goods 685,069.94 No
method Board of directors
Total -- 4,362,992.94 -- -- --
（4）Receivables account of the top five parties
Name Amount Proportion(%) Bad debt provision
Client 1 706,982,732.92 25.12% 321,311,615.97
Client 2 302,917,954.20 10.76% 177,345,224.20
Client 3 61,659,500.00 2.19% 3,164,975.00
Client 4 53,974,395.99 1.92% 6,766,258.59
Client 5 27,635,200.00 0.98% 1,381,760.00
Subtotal 1,153,169,783.11 40.97% 509,969,833.76
4. Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance in year-begin
Age
Book balance Proportion(%) Book balance Proportion(%)
Within 1 year 422,625,349.59 94.08% 169,302,923.28 83.74%
1-2 years 5,019,419.00 1.12% 10,874,142.27 5.38%
2-3 years 14,313,131.18 3.19% 17,195,603.48 8.50%
Over 3 years 7,276,313.90 1.62% 4,812,189.80 2.38%
Total 449,234,213.67 -- 202,184,858.83 --
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Amount Proportion(%)
Siemens Industrial Turbomachinery AB 117,785,363.75 26.22%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Hangzhou Boiler Group Co., Ltd. 36,012,500.00 8.02%
Shanghai Huiyi International Freight agency Co., Ltd. 33,390,658.96 7.43%
Jinling International Co., Ltd. 23,163,441.57 5.16%
GEA Batyneo Heat-energy Technology(Changshu) Co., Ltd. 10,700,108.80 2.38%
Subtotal 221,051,073.08 49.21%
5.Dividend Receivable
（1）Dividend Receivable
In RMB
Items Balance in year-end Balance in year-begin
Hangzhou Bank（Pledged share bonus） 6,900,000.00
Total 6,900,000.00
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
6. 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
Proportion Proportion Book value Proportion Proportion Book value
Amount Amount Amount Amount
% % % %
Other Accounts
receivable portfolio
32,074,225.09 100.00% 11,341,511.69 35.36% 20,732,713.40 42,152,338.08 100.00% 11,127,630.36 26.40% 31,024,707.72
subject to impairment
by credit risk
Total 32,074,225.09 100.00% 11,341,511.69 35.36% 20,732,713.40 42,152,338.08 100.00% 11,127,630.36 26.40% 31,024,707.72
Other Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio
In RMB
End of term
Age
Book balance Bad debt provision Proportion
Subitem within 1 year
Within 1 year 12,493,631.86 624,514.21 5.00%
Subtotal within 1 year 12,493,631.86 624,514.21 5.00%
1-2 years 3,214,702.62 321,470.26 10.00%
2-3 years 5,218,118.67 1,565,295.20 30.00%
Over 3 years 11,147,771.94 8,830,232.02
3-4 years 5,741,839.00 3,445,103.40 60.00%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
4-5 years 104,021.60 83,217.28 80.00%
Over 5 years 5,301,911.34 5,301,911.34 100.00%
Total 32,074,225.09 11,341,511.69 35.36%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Notes：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:：
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB213,881.33 ; recovery or payback for bad debts Amount is
RMB0.00.
(3) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Export drawback receivable 1,888,034.21 13,234,170.89
Deposit 16,802,825.24 19,810,421.19
Petty cash 1,010,482.25 1,156,796.99
Other 12,372,883.39 7,950,949.01
Total 32,074,225.09 42,152,338.08
（4）Top 5 of the closing balance of Other accounts receivable collated according to the arrears party
In RMB
Percentage in total other
Name of the company Account property Book balance Age Bad debt provision
receivable %
Shanghai Customs
Current account 3,710,320.94 Over 5 years 11.57% 3,710,320.94
Waigaoqiao Office
Export drawback
Export drawback 1,888,034.21 Within 1 year 5.89% 94,401.71
receivable
Guodian Chengxin Within 1 year, Over
Deposit 1,294,500.00 4.04% 539,725.00
Tendering Co. Ltd. 5 years
Guoxin Bidding Group 1-2 years, Over 5
Deposit 849,500.00 2.65% 129,500.00
Co.,Ltd. years
Guodian Trust Bidding
Deposit 728,000.00 Within 1 year 2.27% 36,400.00
Co., Ltd.
Toal -- 8,470,355.15 -- 26.41% 4,510,347.65
7. Inventories
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Details
In RMB
End of term Beginning of term
Items
Impairment
Book balance Impairment provision Book value Book balance Book value
provision
Raw
521,124,494.23 309,803.19 520,814,691.04 568,639,726.41 309,803.19 568,329,923.22
materials
Product in
486,153,169.10 10,345,866.48 475,807,302.62 400,195,046.11 10,345,866.48 389,849,179.63
process
Products in
1,109,393,564.03 53,347,861.70 1,056,045,702.33 998,661,308.19 55,296,052.78 943,365,255.41
stock
Total 2,116,671,227.36 64,003,531.37 2,052,667,695.99 1,967,496,080.71 65,951,722.45 1,901,544,358.26
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Inventory depreciation provision
In RMB
Increased this period Decreased this period
Items Beginning of term End of term
Provided Others Written back or off Others
Raw materials 309,803.19 309,803.19
Product in 10,345,866.48 10,345,866.48
82
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
process
Products in stock 55,296,052.78 1,948,191.08 53,347,861.70
Total 65,951,722.45 1,948,191.08 64,003,531.37
At the end of the period, for the finished products which are directly to be sold and the raw materials that need
further process, the estimated selling price of the finished products after the completion of the production reduces
the expected cost incurring at the time of completion, the estimated selling expenses and the relevant taxes and
fees, which determines the amount of net realizable value. According to the balance between the net realizable
value and the cost of single inventory, the inventory depreciation reserve is extracted. The reduction of the
inventory depreciation reserve for the current period is RMB1,948,191.08, which is the provision for the
inventory depreciation reserve due to the use or sale of inventory.
8. Other current asset
In RMB
Items End of term Beginning of term
Bank financing products[Notes] 763,150,000.00 853,767,338.00
Input tax deductible 3,745,966.92 6,410,137.62
To verify the input tax 995,153.86
Prepaid income tax 1,042,554.65 1,845,850.11
Prepayment of other tax
4,838,380.58
Profit & loss of assets pending disposal 297,660.50
Total 773,074,562.65 863,018,479.59
[Note]: Financial products are financial products and trust financial products, are in non-guaranteed
floating-income short-term (or short-term redeemable) financial products, and no active market price.
9 Sellable financial asset
(1) Details
In RMB
83
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
End of term Beginning of term
Impairm Impair
Items
Book balance ent Book value Book balance ment Book value
provisio provis
n ion
Available-for-sale equity
3,010,113,616.40 3,010,113,616.40 3,060,865,862.60 3,060,865,862.60
instruments
Including ：
2,883,819,153.60 2,883,819,153.60 2,906,013,048.00 2,906,013,048.00
Measured by fair value
Measured by cost 126,294,462.80 126,294,462.80 154,852,814.60 154,852,814.60
Total 3,010,113,616.40 3,010,113,616.40 3,060,865,862.60 3,060,865,862.60
(2) Available-for-sale financial assets measured by vair value at the period-end
In RMB
Available-for-sale equity Available-for –sale
Type instruments Liabilities instruments Total
Vair value 2,883,819,153.60 2,883,819,153.60
84
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
(3)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 Period-e
Period-begin Increase Increase Decrease among the reporting period
-begin nd
investees
Hangzhou Changdi Equity Investment
48,558,351.80 48,558,351.80 0.00 0.00%
Partnership(Limited liability)
Hangzhou Steam Turbine Engineering Co., Ltd. 30,000,000.00 30,000,000.00 15.00%
Hangzhou Jushi Investment Partnership（Limited
30,000,000.00 20,000,000.00 50,000,000.00 33.33%
partnership）
Wuxi Xinchang Steel Bube Co., ltd. 15,159,689.58 15,159,689.58 18.00%
Zhejiang Zhongkong Solar Energy Technology
15,000,000.00 15,000,000.00 5.27%
Co., Ltd.
Zhejiang Tianhang Steam Turbine Auxiliary
10,000,000.00 10,000,000.00 33.33%
Machinery Co., Ltd.
Greenesol Co.(India) 5,534,773.22 5,534,773.22 37.00% 1,590,356.24
Zhejiang Sanxin Automatic Engineering Co., Ltd. 600,000.00 600,000.00 6.00%
Total 154,852,814.60 20,000,000.00 48,558,351.80 126,294,462.80 -- 1,590,356.24
85
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
10Fixed assets
(1) Details
In RMB
Transportation
Items Houses & buildings Machinery equipment Office equipment Total
equipment
I. Original price
1. Balance at
446,446,798.60 998,985,150.60 29,749,331.84 95,844,377.35 1,571,025,658.39
period-beginning
2.Increase in the current
17,550,203.26 4,763,758.46 244,258.80 1,818,156.12 24,376,376.64
period
(1) Purchase 1,361,091.42 244,258.80 580,855.49 2,186,205.71
（ 2 ） Inventory\Fixed
assets\ Transferred from 17,550,203.26 3,402,667.04 1,237,300.63 22,190,170.93
construction in progress
(3)Increased of
0.00
Enterprise Combination
0.00
3.Decreased amount of the
784,794.00 760,019.44 1,544,813.44
period
（1）Dispose 784,794.00 760,019.44 1,544,813.44
0.00 0.00
4. Balance at period-end 463,997,001.86 1,003,748,909.06 29,208,796.64 96,902,514.03 1,593,857,221.59
II.Accumulated
amortization
1.Opening balance 176,390,042.92 673,282,598.59 20,553,828.14 78,225,107.16 948,451,576.81
2.Increased amount ofthe
6,755,225.91 28,241,862.25 321,364.35 3,236,536.24 38,554,988.75
period
(1) Withdrawal 6,755,225.91 28,241,862.25 321,364.35 3,236,536.24 38,554,988.75
0.00
3.Decrease in the reporting
571,591.86 703,597.05 1,275,188.91
period
（1）Disposal 571,591.86 703,597.05 1,275,188.91
0.00
4.Closing balance 183,145,268.83 701,524,460.84 20,303,600.63 80,758,046.35 985,731,376.65
III. Impairment provision 0.00
1.Opening balance 1,504,928.24 4,033,520.42 1,113,523.01 6,651,971.67
86
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
2.Increase in the reporting
0.00
period
（1）Withdrawl 0.00
0.00
3.Decrease i the reporting
0.00
period
（1）Disposal 0.00
0.00
4. Closing balance 1,504,928.24 4,033,520.42 0.00 1,113,523.01 6,651,971.67
IV. Book value
1.Book value ofthe
279,346,804.79 298,190,927.80 8,905,196.01 15,030,944.67 601,473,873.27
period-end
2.Book value of the
268,551,827.44 321,669,031.59 9,195,503.70 16,505,747.18 615,922,109.91
period-begin
87
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
11 Construction in process
（1）Details
In RMB
End of term Beginning of term
Items
Impairment Impairment
Boook balance Book value Boook balance Book value
provision provision
Construction in process of
97,239,204.16 97,239,204.16 94,170,909.99 94,170,909.99
parent Company
Tangxi Workshop PhaseII,
3,343,792.51 3,343,792.51 16,246,978.15 16,246,978.15
Gouneng Company
Project of steam turbine heavy
44,399,257.47 44,399,257.47 32,654,575.18 32,654,575.18
industry
Casting companies to clean up
5,350,975.59 5,350,975.59 4,870,579.64 4,870,579.64
cross project
Casting company networking
1,588,669.64 1,588,669.64 1,517,473.06 1,517,473.06
system project
Prepayment for equipment or
4,149,764.39 4,149,764.39 4,283,373.39 4,283,373.39
projects
Total 156,071,663.76 156,071,663.76 153,743,889.41 153,743,889.41
(2) Changes of significant construction in progress
88
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
In RMB
Includin
g:
Capitaliz Source
Project Capitaliz capitaliz
Transferred to fixed Proportion ation of of
Name of project Budget Opening balance Increase Other decrease End balance proces ation of ation of
assets % interest fundin
s interest interest
rate (%) g
this
period
Under
Construction in process of
128,221,400.00 90,619,544.91 6,619,659.25 97,239,204.16 75.84% Constr Self
parent Company
uction
Completed project of parent Compl
6,750,000.00 3,551,365.08 566,834.20 4,118,199.28 61.01% Self
Company eted
Under
Tangxi Workshop PhaseII,
30,000,000.00 16,246,978.15 5,168,786.01 18,071,971.65 0.00 3,343,792.51 71.39% Constr Self
Gouneng Company
uction
Under
Project of steam turbine heavy
1,794,100,000.00 32,654,575.18 11,744,682.29 44,399,257.47 2.47% Constr Self
industry
uction
Under
Casting companies to clean up
10,000,000.00 4,870,579.64 480,395.95 5,350,975.59 53.51% Constr Self
cross project
uction
Under
Casting company networking
4,000,000.00 1,517,473.06 71,196.58 1,588,669.64 39.72% Constr Self
system project
uction
89
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Under
Prepayment for equipment or
4,283,373.39 725,000.00 858,609.00 4,149,764.39 Constr Self
projects uction
Total 1,973,071,400.00 153,743,889.41 25,376,554.28 22,190,170.93 858,609.00 156,071,663.76 -- -- --
90
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
12 Intangible assets
（1）Details
In RMB
Non patent
Items Landusing right Patent Software Total
technology
I. Original price
1. Balance at
332,298,312.33 209,433.96 8,000,000.00 328,376.07 340,836,122.36
period-beginning
2.Increase in the current
period
(1) Purchase
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of
the period
（1）Disposal
4.Closing balance 332,298,312.33 209,433.96 8,000,000.00 328,376.07 340,836,122.36
II.Accumulated
amortization
1.Opening balance 41,782,089.97 114,000.00 1,266,666.71 267,931.60 43,430,688.28
2.Increased amount of
2,575,171.78 28,000.00 400,000.02 22,837.60 3,026,009.40
the period
(1) Withdrawal 2,575,171.78 28,000.00 400,000.02 22,837.60 3,026,009.40
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 44,357,261.75 142,000.00 1,666,666.73 290,769.20 46,456,697.68
III. Impairment provision
91
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of
the period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 287,941,050.58 67,433.96 6,333,333.27 37,606.87 294,379,424.68
2.Opening book value 290,516,222.36 95,433.96 6,733,333.29 60,444.47 297,405,434.08
The intangible assets by the end of the formation of the company's internal R & D accounted for 0.00% of the
proportion of the balance of intangible assets
13 Long-term amortize expenses
In RMB
Amortized expenses
Balance in Increase in this
Items year-begin period Other loss Balance in year-end
Redecoration 1,306,880.81 132,581.88 1,174,298.93
Afforestation fees 124,088.00 124,088.00
Total 1,430,968.81 132,581.88 1,298,386.93
14 Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for Asset Impairment 1,012,675,154.36 157,148,474.80 981,341,256.69 153,377,711.38
Internal trade profit not realized
49,905,473.34 7,485,821.00 58,099,229.91 9,500,467.96
Deductible loss 38,302,132.26 5,745,319.84 30,002,132.26 4,500,319.84
Inventory impairment provision 64,003,531.37 9,600,529.70 65,951,722.45 9,892,758.36
92
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Fixed assets depreciation reserves 6,651,971.67 997,795.75 6,651,971.67 997,795.75
Temporary difference such as
3,751,710.39 562,756.56 3,751,710.39 562,756.56
amortizing of software expense
Total 1,175,289,973.39 181,540,697.65 1,145,798,023.37 178,831,809.85
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of tradable
2,492,865,113.60 373,929,767.04 2,515,059,008.00 377,258,851.20
financial assets
Accumulated depreciation 6,651,971.67 997,795.75 6,651,971.67 997,795.75
Total 2,499,517,085.27 374,927,562.79 2,521,710,979.67 378,256,646.95
（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Deferred Income Tax Assets Temporarily Deductable or Deferred Income Tax Assets Temporarily Deductable or
Items or Liabilities at the End of Taxable Difference at the End or Liabilities at the Taxable Difference at the
Report Period of Report Period Beginning of Report Period Beginning of Report Period
Deferred income tax
181,540,697.65 178,831,809.85
assets
Deferred income tax
374,927,562.79 378,256,646.95
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible provisional differences 931,148.96 1,476,578.54
Deductible losses 9,924,189.66 12,315,626.29
Subtotal 10,855,338.62 13,792,204.83
(5) 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
2018 684,308.39
93
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
2019 1,037,052.28
2020 2,272,672.55 3,113,580.77
2021 6,550,312.26 7,480,684.85
2022 1,101,204.85
Total 9,924,189.66 12,315,626.29 --
15Short-term loans
（1）Category of short-term loans
In RMB
Items Balance in year-end Balance in year-begin
Mortgage loan 78,700,000.00 73,000,000.00
Guarantee loan 100,000,000.00 100,000,000.00
Credit loan 19,000,000.00
Total 197,700,000.00 173,000,000.00
16.Bill payable
In RMB
Items End of term Beginning of term
Bank acceptance 151,467,745.11 143,007,715.10
Total 151,467,745.11 143,007,715.10
17. Account payable
（1）Category of Account payable
In RMB
Items End of term Beginning of term
Goods 1,090,300,026.76 832,264,375.15
Payment for equipment and projects 7,763,195.94 21,188,214.36
Total 1,098,063,222.70 853,452,589.51
18. Advances received
（1）Category of Advances received
In RMB
Items End of term Beginning of term
Goods 2,197,267,051.95 1,827,959,793.62
94
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Total 2,197,267,051.95 1,827,959,793.62
19. Employees’ wage payable
(1) Details
In RMB
Items Beginning of term Increased this period Decreased this period End of term
I. Short-term wages 48,273,561.62 312,239,012.26 312,792,720.04 47,719,853.84
II. Welfare after leaving
of position-fixed 22,951,072.41 36,715,209.10 46,319,226.63 13,347,054.88
provision scheme
Total 71,224,634.03 348,954,221.36 359,111,946.67 61,066,908.72
(2) Details of short term wages
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Wage, bonus, allowance and subsidies 35,531,106.94 228,812,538.96 244,250,107.13 20,093,538.77
2. Employee welfare 26,723,363.71 14,392,988.46 12,330,375.25
3. Social insurance 5,862,944.64 23,214,535.38 23,283,256.62 5,794,223.40
Incl. Medical insurance 5,423,894.94 20,690,298.82 20,705,065.85 5,409,127.91
Labor injury insurance
124,073.45 760,449.54 768,860.84 115,662.15
Maternity insurance 314,976.25 1,763,787.02 1,809,329.93 269,433.34
4. Housing fund 109,020.96 22,800,436.00 22,792,856.00 116,600.96
5. Labour union fee and employee
6,770,489.08 9,683,454.88 7,068,828.50 9,385,115.46
education fee
7.Short-term profit sharing scheme 1,004,683.33 1,004,683.33
Total 48,273,561.62 312,239,012.26 312,792,720.04 47,719,853.84
(3) Details of fixed provision scheme
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Basic pension
4,430,334.68 25,046,017.10 25,693,581.95 3,782,769.83
insurance
2. Unemployment
314,118.76 1,535,422.12 1,673,757.04 175,783.84
insurance
3. Enterprise annual fee 18,206,618.97 10,133,769.88 18,951,887.64 9,388,501.21
Total 22,951,072.41 36,715,209.10 46,319,226.63 13,347,054.88
20. Tax Payable
In RMB
95
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Items Balance in year-end Balance in year-begin
VAT 18,399,163.94 59,676,617.21
Expenditure taxes 0.00 0.00
3,962,801.22 16,338,759.59
Enterprise Income tax
Individual Income tax 2,582,904.92 2,035,807.07
City Construction tax 1,401,749.60 4,224,180.62
Business Tax
Property tax 945,279.30
Education subjoin 639,818.15 1,822,362.43
Locality Education subjoin 376,718.50 1,202,457.87
Stamp tax 29,716.82 56,823.07
Local water source foundation 1,767,814.88 1,767,814.88
Disabled security fund 2,087.42 2,087.42
Land use tax 381,733.15 3,112,763.00
Total 30,489,787.90 90,239,673.16
21. Interest payable
In RMB
Items End of term Beginning of term
Long term interest on borrowings due in
41,750.63
installments
Interest on short-term borrowings 92,625.69
Total 134,376.32
22.Other account payable
(1) Details
In RMB
Items End of term Beginning of term
Deposite 1,005,905.34 3,607,868.79
Provisional account payable 19,168,000.22 23,344,791.25
Other 8,854,954.77 3,868,320.76
Total 29,028,860.33 30,820,980.80
96
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
23. Non-current liabilities due within 1 year
In RMB
Items End of term Beginning of term
Long-term loans due within 1 year 18,300,000.00 18,500,000.00
Total 18,300,000.00 18,500,000.00
24.. Long-term loan
(1) Details
In RMB
Items End of term Beginning of term
Mortgage loan 4,900,000.00 4,900,000.00
Total 4,900,000.00 4,900,000.00
25.Long term account payable
(1) Details
In RMB
Items End of term Beginning of term
CDB investment fund 208,000,000.00 208,000,000.00
Drawing in administrative restructuring 330,000.00 330,000.00
Income payable of CDB 27,733.33
Total 208,330,000.00 208,357,733.33
26. Deferred income
In RMB
Items Decreased this
Beginning of term Increased this period End of term Cause
period
Government subsidy 5,422,895.00 1,808,000.00 7,230,895.00
Total 5,422,895.00 1,808,000.00 7,230,895.00 --
(2) Details of government subsidies
In RMB
97
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Amount
New subsidy in transferred to Other Asset-related or
Items Beginning of term End of term
current period non-operational changes income-related
income
Financial support for industrial
287,800.00 400,000.00 687,800.00 Asset-related
projects
Government subsidy for casting
287,800.00 287,800.00 Asset-related
project
Circular economy financial subsidy 114,100.00 114,100.00 Asset-related
Projects of technological
26,000.00 26,000.00 Asset-related
transformation
Subsidy for industrial upgrading by
480,000.00 480,000.00 Asset-related
provincial government
Finance for casting project 3,906,405.00 3,906,405.00 Asset-related
Government subsidy for industrial
entities from Yuhang District 320,790.00 320,790.00 Asset-related
Government in the 2nd half of 2009
Financial subsidy for R & D
1,408,800.00 1,408,800.00 Asset-related
projects
Total 5,422,895.00 1,808,000.00 7,230,895.00 --
98
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
27.Stockcapital
In RMB
Increase/decrease this time (+ , - )
Balance Year-beginning Issuing of new Bonus Transferred from Balance year-end
Other Subtotal
share shares reserves
Total of capital
754,010,400.00 754,010,400.00
shares
28.Capitalreserves
In RMB
Items Year-beginning balance Increase in the Decrease in the Year-end balance
current period current period
Share premium 81,815,220.00 81,815,220.00
Other capital reserves 57,775,125.09 57,775,125.09
Total 139,590,345.09 139,590,345.09
29. Other comprehensive income
In RMB
Occurred current term
Items Beginning of term Amount occurred Less: accounted as other gains Less: Income tax Attributable to the Attributable to End of term
before income tax of previously but transferred to expenses parent co. after tax minority
99
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
the period gain/loss this period shareholders
after tax
II. Other Comprehensive income
that will be reclassified 2,137,419,299.84 -21,607,437.73 -3,329,084.16 -18,615,099.34 336,745.77 2,118,804,200.50
subsequently to profit or loss
Gains or losses on changes in fair
value of available-for-sale 2,137,800,156.80 -22,193,894.40 -3,329,084.16 -18,864,810.24 2,118,935,346.56
financial assets
Difference of translating of foreign
-380,856.96 586,456.67 249,710.90 336,745.77 -131,146.06
currency accounts
Total of other comprehensive
2,137,419,299.84 -21,607,437.73 -3,329,084.16 -18,615,099.34 336,745.77 2,118,804,200.50
income
100
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
30.Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 27,546,353.37 537,862.83 673,423.90 27,410,792.30
Total 27,546,353.37 537,862.83 673,423.90 27,410,792.30
31. 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
Total 621,112,807.78 621,112,807.78
32. Retained profit
In RMB
Items Current term Same period of last term
Amount of retained profit at beginning of period 2,705,667,037.15
Plus: Net profit attributable to owners of the parent
43,995,804.38
company
Common share dividend payable 2,749,662,841.53
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 .
101
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
33. Business income and Business cost
In RMB
Occurred current term Occurred in previous term
Items
Income Cost Income Cost
Main Business 1,565,958,109.92 1,100,055,409.37 1,362,270,491.45 848,808,322.11
Other 97,766,592.34 92,329,642.11 5,153,280.43 2,129,583.93
Total 1,663,724,702.26 1,192,385,051.48 1,367,423,771.88 850,937,906.04
34. Business tax and surcharge
In RMB
Items Occurred current term Occurred in previous term
City maintenance and construction tax 5,790,983.04 4,848,384.15
Education surtax 2,632,346.60 2,123,039.65
House tax 4,754,574.06
Land use tax 2,768,440.30
vehicle and vessel tax 23,508.00
Stamp tax 1,196,199.41
Locality Education surcharge 1,570,499.17 1,415,359.85
Business tax 36,467.22
Total 18,736,550.58 8,423,250.87
35. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 31,132,404.87 24,144,838.68
Transportation 15,433,500.28 22,067,695.57
Business trips 11,409,777.43 9,321,130.31
Business reception expenses 3,630,718.14 3,856,181.75
Conferences
1,702,501.62 762,768.90
Consulting service fee
8,523,496.71 7,376,359.34
Insurance for turbine unit 241,740.99 115,012.33
Warranty expense 2,654,824.68 1,360,196.29
Product exhibition
462,976.14 879,035.70
102
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Office expenses
803,886.89 290,453.85
Others
5,878,188.10 5,693,921.26
Total 81,874,015.85 75,867,593.98
36.Administrativeexpense
In RMB
Items Occurred current term Occurred in previous term
Employees’ remunerations 158,545,322.20 154,766,064.42
R&D expenses 140,500,456.42 138,018,919.01
Asset depreciation and amortizing 7,147,861.91 10,600,496.96
Business reception expenses 6,238,067.45 6,075,008.72
House rental, property management, water
3,701,610.81 3,912,114.29
and power
Traveling fees 3,768,385.52 3,693,110.12
Taxes 5,995,092.98
Material, low-value-consumable 1,137,285.58 1,179,867.75
Office expenses
1,693,719.65 1,529,414.33
Maintaining 1,863,668.96 1,393,232.10
Other 29,815,399.31 27,943,597.87
Total 354,411,777.81 355,106,918.55
37.Financialexpenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense
5,243,164.77 4,856,082.74
Less: Incoming interests
3,290,329.23 2,276,735.92
Exchange gains/losses
3,746,363.69 -3,218,647.71
Commission 1,795,106.71 1,004,308.45
Other 450,938.35 147,021.61
Total 7,945,244.29 512,029.17
38.Assetimpairmentloss
In RMB
103
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Items Occurred current term Occurred in previous term
I .Losses for bad debts 35,378,404.08 125,619,636.17
Total 35,378,404.08 125,619,636.17
39. Investment income
In RMB
Items Occurred current term Occurred in previous term
Investment gains from holding of sellable financial assets 44,203,908.24 3,587,659.70
Investment income from disposal of available for sale financial
25,121,648.20
assets
Gains from financing products 19,662,950.09 11,457,674.92
Total 88,988,506.53 15,045,334.62
40.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
196,910.10 17,299.04 196,910.10
non-current assets
Including：Gains from disposal of
196,910.10 17,299.04 196,910.10
fixed assets
Government Subsidy 2,505,237.27 318,530.00 2,505,237.27
Compensation income 1,397,065.22 6,372,280.92 1,397,065.22
Other 455,637.29 136,652.06 455,637.29
Total 4,554,849.88 6,844,762.02 4,554,849.88
Government subsidy reckoned into current gains/losses
In RMB
Whether the
Asset-related or
Issuin Releas impact of Whether
Amount of this Amount of last income-related
Subsidy items g e Type subsidies on the special
period period
subject cause current profit subsidies
and loss
In 2014 the provincial patent grant / No No 4,000.00 Income-related
104
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Yuhang District of Hangzhou Science
and Technology Bureau
2014 R & D investment subsidy No No 314,200.00 Income-related
Tax service fee No No 330.00 Income-related
Yuhang District Finance Bureau 2016
Industrial Supplies and Industrial No No 1,230,000.00 Income-related
Internet Project Grant
Yuhang District in 2016 Hangzhou high
- tech industrialization project special No No 1,000,000.00 Income-related
funds
Color steel shed "Chu Lan Mei Hua"
No No 251,851.20 Income-related
incentive funds
Other small amount subsidies No No 23,386.07 Income-related
Total -- -- -- -- -- 2,505,237.27 318,530.00 --
41. Non-operational expenditure
In RMB
Amount accounted into
Items Current term Same period of last term non-recurring gain/loss of
current term
Total of loss from disposal of non-current
16,356.68 181,198.86 16,356.68
assets
Incl. Loss from disposal of fixed assets 16,356.68 181,198.86
Donations 10,000.00 10,000.00
Penalty paid out 232,194.24 121,140.00 232,194.24
Local water source foundation 1,462.68 1,606,344.54
4,129.58
Penalties
Loss damage 19,777.53 44,881.67 19,777.53
Other 279,791.13 1,957,694.65 278,328.45
Total
42. Income tax expenses
(1) Details
105
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
In RMB
Items Current term Same period of last term
Income tax of current term 9,237,255.37 10,258,830.52
Deferred income tax -2,708,887.80 -13,092,761.86
Total 6,528,367.57 -2,833,931.34
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Current term
Total profit 66,257,223.45
Income tax expense at statutory / applicable tax rates 9,938,583.52
Effect of different tax rates applicable to subsidiaries 2,431,049.22
Income not subject to tax -6,730,586.24
Expenses not deductible for tax purposes 614,019.86
Taxation influence of unrecognized deductible loss and
275,301.21
deductible temporary difference
Income tax expenses 6,528,367.57
43.Other Comprehensive income
Please find the statement in the notes of consolidated balance sheet.
44. Notes Cash flow statement
(1) Other cash received from business operation
In RMB
Items Occurred current term Occurred in previous term
Deposit interest 3,290,329.23 2,276,884.34
Government subsidies received 4,313,237.27 3,628,381.23
Deposit for bidding and other 350,000.00 -50,000.00
Compensation income 10,697.28 163,534.00
Other 46,018.25 668,444.48
Total 8,010,282.03 6,687,244.05
106
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
2. Other cash paid for business activities
In RMB
Items Occurred current term Occurred in previous term
Travel expenses 15,569,947.22 16,226,976.75
Transportation 2,386,213.92 3,272,653.84
Business trips 9,114,231.52 10,323,734.57
Maintaining 892,883.85 609,448.28
Property management and civil services 3,045,005.51 3,269,592.99
Deposit for bidding and others 533,396.53 3,788,086.28
Office expenses 3,374,787.41 2,915,351.76
Conferences 1,984,035.08 1,286,764.88
Consulting service fee 9,794,242.77 7,080,357.89
Transportation and vehicles 2,794,047.26 2,377,922.97
Other 29,495,330.68 27,694,463.47
Total 78,984,121.75 78,845,353.68
3. Other investment-related cash received
In RMB
Items Occurred current term Occurred in previous term
Repurchasing of trusteeship 1,819,767,338.00 812,150,000.00
Total 1,819,767,338.00 812,150,000.00
4. Other cash paid for investment activities
In RMB
Items Current term Same period of last term
Purchasing of financial products 1,729,150,000.00 938,850,000.00
Total 1,729,150,000.00 938,850,000.00
5. Other financing-related cash received
In RMB
Items Occurred current term Occurred in previous term
Cancellation of company property
12,824,456.40
assignment
Total 12,824,456.40
107
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
45 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 59,728,855.88 -26,277,229.57
Add: Impairment loss provision of assets 35,378,404.08 125,619,636.17
Depreciation of fixed assets, oil and gas assets and consumable
38,554,988.75 41,159,790.67
biological assets
Amortization of intangible assets 3,026,009.40 3,663,502.57
Amortization of Long-term deferred expenses 132,581.88
Loss on disposal of fixed assets, intangible assets and other
-180,553.42 5,418.05
long-term deferred assets
Financial cost 8,369,082.20 9,053,563.16
Loss on investment -88,988,506.53 -15,045,334.62
Decrease of deferred income tax assets -2,708,887.80 -13,949,461.00
Increased of deferred income tax liabilities -3,329,084.16 0.00
Decrease of inventories -151,123,337.73 -408,813,212.52
Decease of operating receivables -431,306,194.64 62,274,426.08
Increased of operating Payable 522,271,847.58 437,187,652.12
Other -135,561.07 -179,698.16
Net cash flows arising from operating activities -10,310,355.58 214,699,052.95
II. Significant investment and financing activities that without
-- --
cash flows:
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 1,010,649,375.76 768,360,107.29
Less: Beginning balance of cash equivalents 895,037,559.34 751,596,796.24
Net increase of cash and cash equivalents 115,611,816.42 16,763,311.05
（2）Composition of cash and cash equivalents
108
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
In RMB
Items Amount of current period Amount of previous period
1,055,809,378.48 895,037,559.34
I. Cash
204,146.76 326,226.09
Of which: Cash in stock
Demand bank deposit 1,010,875,229.00 840,734,362.93
III. Balance of cash and cash equivalents at
1,055,809,378.48 895,037,559.34
the period end
46. Assets with limitation on ownership or using rights
In RMB
Items Closing book value Causation o limitation
Monetary capital 45,160,002.72 Used as security for issuing of acceptance drafts and bill of guarantees
Bill receivable 22,970,000.00Used as security for issuing of acceptance drafts
Fixed assets 117,870,021.27Used to obtain bank loans
Intangible assets 89,391,343.91Collateral for obtaining bank loans and investment funds from CDB
Available for sale financial
478,170,000.00 nvestment funds for the development of the State Fund
assets
Total 753,561,367.90 --
47Monetary items in foreign currencies
(1) Foreign currency monetary items
In RMB
Translated to RMB at end of
Items Balance at end of period Exchange rate
period
Monetary capital -- -- 175,766,140.21
Incl：USD 25,328,618.45 6.774 171,576,061.38
Euro 120,248.35 7.750 931,876.62
JPY 9,031.00 0.060 543.45
Rupiah 6,286,507,508.01 0.00052 3,256,410.89
109
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Ruble 10,650.00 0.117 1,247.87
Account receivable -- -- 191,093,308.06
Incl：USD 24,542,406.53 6.774 166,250,261.83
Euro 2,582,293.40 7.750 20,011,741.08
Rupiah 9,326,843,918.91 0.00052 4,831,305.15
Other account receivable 247,685.61
Incl：USD 36,562.00 6.774 247,685.61
(2) Note to overseas operating entities, including important overseas operating entities, which 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.Changes of consolidation scope
1.Disposal of subsidiary
Whether there is a single disposition to invest in the subsidiary that is the case of loss of control
No
Whether there is a case where the investment is made to the subsidiary and the loss of control in the current period
No
2.Other reasons for the merger scope change
Other causes of the consolidation scope changes (e.g., the new subsidiary, liquidation subsidiary, etc.) and its
related conditions:
Acquisition and
disposal of subsidiaries
Company name Write off time Contribution Funded ratio
during the reporting
period
Xinjiang Taifeng Hangzhou Steam turbine complete
Write off April 2017 10.20 million 51%
technology development Co., Ltd.
Hangzhou Hangqi Boiler Co., Ltd Write off April 2017 10 million 50%
110
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
IX. Equities in Other Entities
(I) Equity in major subsidiaries
1. Composition of major subsidiaries
Main business Business Share proportion %
Name of the subsidiaries Reg. Add. Way of obtain
location property Direct Indirect
Zhejiang Steam Trubine Packaged
Hangzhou Hangzhou
Technologies Development Co., Manufacturing 70.86% Incorporation
Ltd. Zhejiang Zhejiang
Hangzhou Zhongneng Steam
Hangzhou Hangzhou
Turbine Power Co., Ltd. Manufacturing 60.83% Incorporation
Zhejiang Zhejiang
(Zhongneng Co.)
Hangzhou Steam Turbine Casting Hangzhou Hangzhou
Manufacturing 51.00% Incorporation
Zhejiang
Co., Ltd. Zhejiang
Hangzhou Steam Turbine Hangzhou Hangzhou
Manufacturing 52.00% Incorporation
Machinery Equipment Co., Ltd. Zhejiang Zhejiang
Hangzhou Steam Turbine Auxiliary
Hangzhou Hangzhou
Machinery Co., Ltd. (Auxiliary Manufacturing 87.53% Incorporation
Zhejiang Zhejiang
Machinery Co.)
Zhejiang Turbine Import & Export Hangzhou Hangzhou
Commerce 100.00% Incorporation
Zhejiang
Co., Ltd. (Turbine Co.) Zhejiang
Hangzhou Steam Turbine Heavy Hangzhou Hangzhou
Manufacturing 100.00% Incorporation
Industry Co., Ltd. Zhejiang Zhejiang
Zhejiang Huayuan Steam Turbine Deqing Hangzhou
Manufacturing 75.00% Incorporation
Machinery Co., Ltd. Zhejiang Zhejiang
Hangzhou Guoneng Steam Turbine Hangzhou Hangzhou
Manufacturing 75.00% Incorporation
Engineering Co., Ltd. Zhejiang Zhejiang
Xinjiang Taifeng Hangzhou Steam
Turbine Packaged Technology Xinjiang Xinjiang Manufacturing 51.00% Incorporation
Development Co., Ltd.
Hangzhou Bypass Mechanical & Hangzhou Hangzhou Manufacturing 70.00% Incorporation
111
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Electrical Equipment Co., Ltd. Zhejiang Zhejiang
Shijiazhuang Hangneng Steam
Shijiazhuang Shijiazhuang
Turbine Technology Service Co., Service 60.00% Incorporation
Hebei Hebei
Ltd.
Kunming Hangzhong Steam
Turbine Technology Sevrvice Co., Kunming Yunnan Kunming Yunnan Service 60.00% Incorporation
Ltd.
Wulumuqi Hangzhongneng Steam
Wulumuqi Wulumuqi
Turbine Technology Sevrvice Co., Service 60.00% Incorporation
Xingjiang Xingjiang
Ltd.
Tangshan Hangneng Steam turbine
Tangshan Hebei Tangshan Hebei Service 60.00% Incorporation
Technology Sevrvice Co., Ltd
Jilin Hangzhongneng Steam turbine
Jilin Jilin Service 60.00% Incorporation
Technology Sevrvice Co., Ltd
Guangxi Hangzhongneng Steam
turbine Technology Sevrvice Co., Nanning Guangxi Nanning Guangxi Service 60.00% Incorporation
Ltd. N
Chengdu Hangzhongneng Steam
turbine Technology Sevrvice Co., Chengdu Sichuan Chengdu Sichuan Service 60.00% Incorporation
Ltd
Luoyang Hangzhongneng Steam
turbine Technology Sevrvice Co., Luoyang Henan Luoyang Henan Service 60.00% Incorporation
Ltd
Hangzhou Steam turbine Boiler Hangzhou Hangzhou
Manufacturing 50.00% Incorporation
Co., Ltd. Zhejiang Zhejiang
Hangzhou Zhongneng Steam
Indonesia Indonesia Manufacturing 70.00% Incorporation
turbine (Indonesia) Co., Ltd
Hangzhou Kaineng Casting Co., Hangzhou Hangzhou
Manufacturing 100.00% Incorporation
Ltd Zhejiang Zhejiang
Zhejiang Runhong Burming Hangzhou Hangzhou
Manufacturing 58.00% Incorporation
Machine Engineering Co., Ltd Zhejiang Zhejiang
Zhejiang Zhongrun Burning
Huzhou Zhejiang Huzhou Zhejiang Manufacturing 55.55% Incorporation
machine Technology Co., Ltd
（2）Major non-fully-Owned subsidiaries
In RMB
112
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Share protion Gains/loss of the Dividend announced in Balance of eqiuty of
Name of the subsidiaries of minor period attributable to the period to minor minor shareholders at
shareholders minor shareholders shareholders end of period
Zhejiang Steam Trubine Packaged
29.14% 800,412.38 2,229,600.00 21,839,491.20
Technologies Development Co., Ltd.
Hangzhou Zhongneng Steam turbine
39.17% -1,237,068.91 3,917,200.00 130,094,169.76
PowerCo., Ltd.
Hangzhou Steam Turbine Casting Co., Ltd. 49.00% 2,850,729.66 9,702,000.00 79,055,945.25
Hangzhou Steam Turbine Machinery
48.00% 11,315,541.93 21,600,000.00 60,700,450.90
Equipment Co., Ltd.
Hangzhou Steam Turbine Auxiliary
12.47% 2,733,628.42 2,992,800.00 27,530,188.29
Machinery Co., Ltd.
113
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
(3) Material financial information of major non-fully-owned subsidiaries
In RMB
End of term Beginning of term
Subsidiaries Name Non-current Current Non-current Current Non-current
Current assets Total of assets Total of liability Current assets Non-current assetsTotal of assets Total of liability
assets liabilities liabilities liabilities liabilities
Zhejiang Steam trubine
269,344,697. 23,763,573.8 293,108,271. 218,161,493. 218,161,493. 279,877,771. 191,451,594. 191,451,594.
Packaged Technology 255,821,238.00 24,056,533.07
59 9 48 18 18 07 17 17
Development Co., Ltd.
Hangzhou Zhongneng Steam 986,770,801. 72,861,237.4 1,059,632,03 745,464,675. 747,202,675. 960,130,000. 623,195,514. 623,525,514.
1,738,000.00 884,998,690.44 75,131,310.55 330,000.00
turbine PowerCo., Ltd. 41 0 8.81 96 96 99 10 10
Hangzhou Steam Turbine 229,398,790. 188,438,223. 417,837,013. 246,496,244. 10,002,105.0 256,498,349. 406,270,109. 230,708,288. 240,710,393.
211,392,397.15 194,877,712.30 10,002,105.00
Casting Co., Ltd. 06 13 19 42 0 42 45 79 79
Hangzhou Steam Turbine
189,297,411. 21,148,841.5 210,446,253. 83,986,980.4 83,986,980.4 222,830,937. 75,404,339.6 75,404,339.6
Machinery Equipment Co., 200,333,215.84 22,497,721.65
54 8 12 1 1 49 7 7
Ltd.
Hangzhou Steam Turbine 383,280,878. 117,672,960. 500,953,839. 279,861,691. 280,182,481. 548,004,777. 324,598,336. 324,919,126.
320,790.00 432,548,733.64 115,456,043.82 320,790.00
Auxiliary Machinery Co., Ltd. 88 20 08 50 50 46 06 06
In RMB
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
Zhejiang Steam Turbine Packaged
95,183,579.66 2,530,829.59 2,530,829.59 9,781,050.35 83,612,988.73 3,773,929.86 3,773,929.86 16,927,682.56
Technology Development Co., Ltd
Hangzhou Zhongneng Steam turbine 308,881,733.81 -4,491,604.31 -4,491,604.31 10,110,775.10 341,837,358.58 -5,746,192.61 -5,746,192.61 24,130,671.69
114
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Power Co., Ltd.
Hangzhou Steam Turbine Casting Co.,
144,755,281.64 5,817,815.64 5,817,815.64 422,629.68 154,101,020.08 3,014,779.43 3,014,779.43 -7,002,715.11
Ltd.
Hangzhou Steam Turbine Machinery
112,615,226.37 23,574,045.69 23,574,045.69 36,474,841.23 87,048,057.73 20,374,232.88 20,374,232.88 20,967,344.33
Equipment Co., Ltd.
Hangzhou Steam Turbine Auxiliary
214,290,527.44 21,921,639.27 21,921,639.27 30,104,537.33 170,532,221.25 12,008,146.90 12,008,146.90 20,063,610.04
Machinery Co., Ltd.
115
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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.
As the Company only does business with recognized and reputable third parties, so no collateral is needed.
Credit risks are centralized managed in accordance with customers. As of June 30, 2017, the Company has a
characteristic of specific credit risk concentration. 40.97% (December 31, 2016: 41.79%) of the Company's
accounts receivable comes from the top five customers. The Company does not hold any collateral or other credit
enhancement for the balance of accounts receivable.
(1) Analyzing of receivable accounts neither due nor impaired, and those have due but not impaired:
Items End of term
Not overdue and not Overdue but not impaired Total
impaired
Within 1 year 1-2 years Over 2 years
Bill receivable 696,089,138.4 696,089,138.4
Subtotal 696,089,138.4 696,089,138.4
(Continued)
Items Beginning of term
Not overdue and not Overdue but not impaired Total
impaired
Within 1 year 1-2 years Over 2 years
Bill receivable 479,716,321.62 479,716,321.62
Subtotal 479,716,321.62 479,716,321.62
(2) See the accounts receivable of the individual impairment losses in the notes to the financial statement,
116
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
the explanation for the accounts receivable of the financial statement item.
(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
End of term
Items
Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Financial liabilities
Short-term loans 197,700,000.00 201,600,408.27 201,600,408.27
Notes payable 151,467,745.11 151,467,745.11 151,467,745.11
Non-current liabilities
18,300,000.00 18,347,631.00 18,347,631.00
due to 1 year
Long-term loan 4,900,000.00 5,066,355.00 5,066,355.00
Long-term payable 208,330,000.00 222,751,733.33 24,779,733.33 197,972,000.00
Account payable 1,098,063,222.70 1,098,063,222.70 1,098,063,222.70
Other account payable 29,028,860.33 29,028,860.33 29,028,860.33
Subtotal 1,707,789,828.14 1,726,325,955.74 1,498,507,867.41 29,856,088.33 197,972,000.00
(Continued)
Beginning of term
Items
Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Financial liabilities
Short-term loans 173,000,000.00 177,681,933.75 177,681,933.75
Notes payable 143,007,715.10 143,007,715.10 143,007,715.10
Non-current liabilities
due to 1 year 18,500,000.00 19,583,120.86 19,583,120.86
Long-term loan 4,900,000.00 5,145,034.03 5,145,034.03
Long-term payable
208,027,733.33 223,972,000.00 26,000,000.00 197,972,000.00
117
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Account payable 853,452,589.51 853,452,589.51 853,452,589.51
Other account payable 30,820,980.80 30,820,980.80 30,820,980.80
Subtotal 1,431,709,018.74 1,453,663,374.05 1,224,546,340.02 31,145,034.03 197,972,000.00
(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.
XI. Related parties and related transactions
1. Parent company of the Company
Business Shareholding of the parent Voting rights of the parent
Name of the parent co. Reg. Add. Registered capital
property co. co. %
Hangzhou Steam Hangzhou
Manufacturing RMB 800 milllion 63.64% 63.64%
Turbine Group China
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of the Company.。
2. For details of subsidiaries please go to the statement of equities in other entities.
3. 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
118
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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
Hangzhou Steam Turbine Engineering Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Group Equipment Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Electronic Tube Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Compressor Co., Ltd. Affiliate of the Group
HSTG(Hangzhou )Union Research Co., Ltd Affiliate of the Group
Hangzhou Wandong Electric Co., Ltd Affiliate of the Group
Greenesol Co.(India) Affiliate of the Group
Hangzhou Steam Turbine Industry & Trade Co., Ltd. Affiliate of the Group
Zhejiang Juqing Investment Co., Ltd. Affiliate of the Group
4.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
Over the
Content of related Amount of current Amount of previous trading Amount of last
Ralated parties
transaction limit or period
period period
not?
Hangzhou Steam turbine Automobile sales service Transportation ,
22,740,891.37 22,740,891.37 No 22,025,165.68
Co., Ltd. repair , etc.
Hangzhou Hangfa Power Generating Equipment
Generators 56,688,888.99 56,688,888.99 No 66,620,352.11
Co., Ltd.
Hangzhou Nanhua Wooden Packaging Co., Ltd. Packaging 5,928,878.83 5,928,878.83 No 7,597,558.46
Hangzhou Nanfang Tongda Gears Co., Ltd. Gear boxes 5,635,780.34 5,635,780.34 No 1,806,463.25
Raw materials
Hangzhou Steam Turbine Industrial Co., Ltd. processing , 482,896.70 482,896.70 No 640,102.34
cleaning fees, etc.
Hangzhou Steam Turbine Group Equipment
7,154,774.65 7,154,774.65 No 6,699,607.87
maintenance
HSTG Technology Association Industrial No
119
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
cooperation
Greenesol Co. (India) Generators 34,062.49 34,062.49 No
HSTG (Hangzhou) United Institutes Co., Ltd. Law material 677,912.62 677,912.62 No 277,500.00
Hangzhou Steam Turbine Engineering Co., Ltd. Technical service 86,792.45 86,792.45 No 2,420,773.08
Hangzhou Steam Turbine Electronic Tube Co., Ltd. Law material No
Industrial
Hangzhou Wandong Electric Co., Ltd. No 13,333.33
cooperation
Hangzhou Steam Turbine Industry & Trade Co., Grinding service
2,368,081.20 2,368,081.20 No
Ltd. fee
Subtotal 101,798,959.64 101,798,959.64 No 108,100,856.11
Related transactions regarding sales of goods or providing of services
In RMB
Subjects of the related
Related parties Current term Same period of last term
transactions
Hangzhou Hangfa Power Generating Equipment Cast parts, industrial
5,756,434.06 5,447,419.07
Co., Ltd. co-operation
Hangzhou Steam Turbine Engineering Co., Ltd. Steam turbine 28,790,427.34 136,752.14
Hangzhou Steam Turbine Group Development services 45,283.02 376.09
Hangzhou Steam Turbine Automobile Sales
Small amount materials 24,077.26
Service Co., Ltd.
Hangzhou Nanhua Wooden Packaging Co., Ltd. Small amount materials
Greenesol Co.(India) Part 422,686.78 1,664,712.44
Compressor,Industrial
Hangzhou Steam Turbine Compressor Co., Ltd. 34,012.82 76,923.08
cooperation
Subtotal 35,072,921.28 7,326,182.82
（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
HSTG House and Building 677,309.71 474,116.80
Hangzhou Steam Turbine Automobile Sales Site leasing 1,397,601.51 782,514.62
120
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Service Co., Ltd.
（3）Related-party guarantee
The Company was guarantor
In RMB
Execution
Guarantor Guarantee amount Start date End date accomplished or
not
HSTG 100,000,000.00 December 18,2017 December 18,2019 No
Notes
in accordance with the National Development Fund Investment Contract, jointly signed by the Company,
NDF, Turbine Industry Company and Hangzhou Steam Turbine Group, the investment of the NDF on Turbine
Industry Company, RMB 20,800,000.00, is repurchased by the Hangzhou Steam Turbine Group, and the NDF
asks the Company and Hangzhou Steam Turbine Group to provide guarantee for the fulfillment of Hangzhou
Steam Turbine Group of the transferee equity obligations. The Company and Steam Turbine Company pledge to
the NDF with a total of 23 million shares of Hangzhou Bank Co., Ltd. with book value of RMB 481,850,000.00
and the land use right with book value of RMB 69,631,244.57.
4. Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 2,116,859.61 2,269,038.36
5. Other related transactions
(1) Service and power supply
HSTG supplies water and power to the Company and some of the subsidiaries amounted to RMB6,069,868.99
this period.
Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. provided transportation to the Company’s
employees and RMB1,105,560 was paid this period.
Hangzhou Steam Turbine Industry Co., Ltd. provided cleaning services to the Company and RMB708,176.09 was
paid this period.
HSTC pay the wages on behalf and newspapers fee of the company , this period occurred RMB767,548.28 and
RMB 1,740,399.52.
(2) Using of trademark
The Company pays RMB495,163.96 to HSTG for using of the registered trademark.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Name Related party End of term Beginning of term
121
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Book balance Bad debt provision Book balance Bad debt provision
Account Hangzhou Steam Turbine Engineering
66,174,395.99 6,767,458.59 52,898,295.99 6,117,053.80
receivable Co., Ltd.
Hangzhou Hangfa Power Generating
21,483,302.40 1,428,322.45 17,950,170.60 1,146,223.10
Equipment Co., Ltd.
Hangzhou Steam Turbine Power Group
Complete Equipment Engineering Co., 305,000.00 244,000.00 305,000.00 244,000.00
Ltd.
Hangzhou Steam Turbine Compressor
59,000.00 5,900.00 59,000.00 5,900.00
Co., Ltd.
Hangzhou Steam Turbine Power Group
158,500.00 158,500.00 158,500.00 158,500.00
Co., Ltd.
Hangzhou Steam Turbine Automobile
544.67 27.23
Sales Service Co., Ltd.
Greenesol Co.(India) 17,411,522.43 13,575,418.13 15,642,523.36 12,514,018.69
Subtotal 105,591,720.82 22,179,599.17 87,014,034.62 20,185,722.82
Hangzhou Steam Turbine Engineering
Prepayment 2,272,000.00
Co., Ltd.
Hangzhou Hangfa Power Generating
49,157,785.00 21,515,346.37
Equipment Co., Ltd.
Hangzhou Nanfang Tongda Gears Co.,
455,000.00
Ltd.
Subtotal 51,884,785.00 21,515,346.37
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Account payable Hangzhou Hangfa Power Generating Equipment Co., Ltd. 151,726,504.75 115,744,578.95
Greenesol Co.(India) 3,510,877.24 3,595,145.76
Hangzhou Steam Turbine Power Group Co., Ltd. 15,707,353.86 3,395,546.79
Hangzhou Steam Turbine Automobile Sales Service Co.,
8,089,221.80 7,504,708.74
Ltd
Hangzhou Nanhua Wooden Packaging Co., Ltd. 1,111,165.97 963,509.03
Hangzhou Steam Turbine Engineering Co., Ltd. 1,690,000.00 1,780,566.04
HSTG (Hangzhou) United Institutes Co., Ltd. 306,375.00 597,075.00
Hangzhou Nanfang Tongda Gears Co., Ltd. 4,230,250.00 2,464,950.00
Hangzhou Steam Turbine Industrial Co., Ltd. 212,774.10 212,294.57
Hangzhou Wandong Electric Co., Ltd. 0.00 20,640.00
Subtotal 186,584,522.72 136,279,014.88
122
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Advances received Hangzhou Steam Turbine Engineering Co., Ltd. 53,933,290.00 38,972,720.00
Hangzhou Steam Turbine Compressor Co., Ltd. 14,310,724.49 14,190,000.00
Greenesol Co.(India) 84,526.93
Subtotal 68,328,541.42 53,162,720.00
Other account
Hangzhou Steam Turbine Group 2,737,187.43 5,731,384.50
payable
Hangzhou Steam Turbine Automobile Sales Service Co.,
100,000.00 100,000.00
Ltd.
Subtotal 2,737,187.43 5,831,384.50
XII. 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.
123
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
XIII. Notes to the Financial Statements of the Parent Co.
1. Account receivable
（1）Detailed categories
In RMB
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Account receivables
provided bad debt
2,079,709,555.62 98.59% 775,959,401.58 37.31% 1,303,750,154.04 2,177,424,114.16 98.65% 752,473,417.58 34.56% 1,424,950,696.58
provision in credit risk
groups
Account receivable
with minor individual
29,819,607.69 1.41% 29,819,607.69 100.00% 0.00 29,819,607.69 1.35% 29,819,607.69 100.00%
amount but bad debt
provision is provided
Total 2,109,529,163.31 100.00% 805,779,009.27 38.20% 1,303,750,154.04 2,207,243,721.85 100.00% 782,293,025.27 35.44% 1,424,950,696.58
Receivables with individually significant amount and provision for bad and doubtful debts individually provided at the end of the reporting period.
Not applicable
124
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Receivable accounts in the group on which bad debt provisions are provided on age basis
In RMB
End of term
Aging
Other receivable account Bad debt provision Proportion%
Subitem within 1 year
Within 1 year 556,071,174.35 27,803,558.71 5.00%
Subtotal within 1 year 556,071,174.35 27,803,558.71 5.00%
1-2 years 342,131,995.28 34,213,199.53 10.00%
2-3 years 312,878,346.40 93,863,503.92 30.00%
Over 3 years 786,450,051.61 620,079,139.42
3-4 years 331,895,783.51 199,137,470.11 60.00%
4-5 years 168,062,993.95 134,450,395.16 80.00%
Over 5 years 286,491,274.15 286,491,274.15 100.00%
Total 1,997,531,567.64 775,959,401.58 38.85%
Receivable accounts combined within consolidating range for providing of bad debt provisions
End of term
Name
Book balance Bad debt provision Providing rate %
Combinations of related transactions in 82，177，987.98
consolidation range
Subtotal 82，177，987.98
Remarks on deciding of combinations:
Receivable accounts and other receivable accounts within the consolidation range are tested for impairment
individually. No bad debt provision is provided in case there is no impairment occurred.
Receivables with provision for bad and doubtful debts based on the balance percentage method in the portfolio
Not applicable
Receivables with provision for bad and doubtful debts based on the other method in the portfolio
Nil
(2) Provision of allowance for doubtful debts within this year is RMB27,582,445.00 and no recovery or
reversal of provision during the year.
(3) Receivable accounts actually written off in the report period
In RMB
Items Amount
Uncollectible amount 4,096,461.00
125
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
The significant actual write-off accounts receivable:
In RMB
Nature of
Reason for Verification Arising from related
Name account Amount written off
written-off procedures transactions(Y/N)
receivable
The examined and
China Air Separation Engineering Co., Ltd. Goods 1,674,643.00 quality loss adopted to Board No
of directors
The examined and
Huaneng Energy saving Powergeneration Co.,
Goods 760,000.00 quality loss adopted to Board No
Ltd.
of directors
The examined and
Debt
Tangshan Yanshan Steel Co.,Ltd. Goods 623,280.00 adopted to Board No
Restructuring
of directors
The examined and
Inner Mongolia Runbang Biogechnology Co.,
Goods 620,000.00 quality loss adopted to Board No
Ltd.
of directors
The examined and
allowance
Other Goods 418,538.00 adopted to Board No
method
of directors
Total -- 4,096,461.00 -- -- --
Notes ：
（4）Receivables account of the top five parties
Name Amount Proportion(%) Bad debt provision
Client 1 600,440,422.92 28 273.708.897.87
Client 2 301,330,454.20 14 175,770,724.20
Client 3 61,659,500.00 3 3,164,975.00
Client 4 57,859,245.99 3 5,861,438.59
Client 5 35,751,500.00 2 1,787,575.00
Subtotal 1,057,041,123.11 50 460,293,610.66
126
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
2. Other account receivable
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Book value Proportion Proportion Book value
Amount Amount Proportion % Amount Amount
% % %
Other receivables provided bad
debt provision in credit risk 12,963,578.72 100.00% 6,246,660.52 48.19% 6,716,918.20 74,189,903.93 100.00% 6,185,197.69 8.34% 68,004,706.24
groups
Total 12,963,578.72 100.00% 6,246,660.52 48.19% 6,716,918.20 74,189,903.93 100.00% 6,185,197.69 8.34% 68,004,706.24
Other Receivable accounts with large amount individually and bad debt provisions were provided
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 3,182,783.71 159,139.19 5.00%
Subtotal within 1 year 3,182,783.71 159,139.19 5.00%
1-2 years 1,253,519.24 125,351.92 10.00%
2-3 years 1,363,026.90 408,908.07 30.00%
Over 3 years 6,050,215.34 5,553,261.34
3-4 years 1,203,039.00 721,823.40 60.00%
127
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
4-5 years 78,692.00 62,953.60 80.00%
Over 5 years 4,768,484.34 4,768,484.34 100.00%
Total 11,849,545.19 6,246,660.52 52.72%
128
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Notes ：
Receivable accounts combined within consolidating range for providing of bad debt provisions
End of term
Name
Book balance Bad debt provision Providing rate %
Combinations of related transactions 1，114，033.53
in consolidation range
Subtotal 1，114，033.53
Remarks on deciding of combinations:
Receivable accounts and other receivable accounts within the consolidation range are tested for impairment
individually. No bad debt provision is provided in case there is no impairment occurred.
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 withdrawal, reversed or recovered in the report period.
Provision of allowance for doubtful debts within this year is RMB 61,462.83 and no recovery or reversal of
provision during the year.
(3) Combination of other receivable accounts
In RMB
Property End of term Beginning of term
Related party funds 1,114,033.53 60,000,000.00
Deposit 6,460,710.00 13,039,563.14
Petty cash 4,935,171.59 167,900.00
Provisional payment receivable 453,663.60 982,440.79
Total 12,963,578.72 74,189,903.93
(4) Top 5 of the closing balance of Other accounts receivable
129
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
In RMB
Account Percentage in total
Name of the company Book balance Age Bad debt provision
property other receivable %
Deposit in
Shanghai Customs Waigaoqiao Office 3,710,320.94 Over 5 years 28.62% 3,710,320.94
custom
Guodian Trust Bidding Co., Ltd. Deposit in Within 1 year, over 5
1,294,500.00 9.99% 539,725.00
custom
years
Guoxin Bidding Group Co., Ltd. Deposit in
849,500.00 1-2 years, over 5 years 6.55% 129,500.00
custom
China Electric Power Complete
Services 728,000.00 Within 1 year 5.62% 36,400.00
Equipment Co., Ltd.
Guodian Longyuan Power Technology Deposit in
500,000.00 3-4 years 3.86% 300,000.00
Engineering Co., Ltd. custom
Total -- 7,082,320.94 -- 4,715,945.94
3. Long-term share equity investment
In RMB
End of term Beginning of term
Impairm Impair
Items ent ment
Book balance Book value Book balance Book value
provisio provisi
n on
Investment on
502,919,378.03 502,919,378.03 502,919,378.03 502,919,378.03
subsidiaries
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
Closing
impairment
balance of
Name Opening balance Increase Decrease Closing balance provision in
impairment
the reporting
provision
period
Touping Imports & Exports Co. 20,000,000.00 20,000,000.00
130
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
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 1,022,711,006.96 758,653,563.38 865,641,911.52 540,221,337.74
Other business 93,434,073.65 90,328,583.22 8,058,477.84 5,896,004.22
Total 1,116,145,080.61 848,982,146.60 873,700,389.36 546,117,341.96
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Investment income form holding available-for-sale equity
43,203,908.24 2,587,659.70
instrument
Investment income from disposal of available for sale
25,121,648.20
financial assets
Long-term equity investment income by Cost method 60,959,407.50 73,528,812.50
Investment income of financial products 12,028,688.59 2,697,347.51
Total 141,313,652.53 78,813,819.71
XIII. Supplement information
1. Particulars about current non-recurring gains and loss
In RMB
131
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
Items Amount Notes
Gains/losses from the disposal of non-current asset 180,553.42
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 2,505,237.27
governmental subsidy according to the unified national standard）
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
44,784,598.29
Company, and investment income from disposal of transactional financial assets and
liabilities and financial assets available for sale
Other non-business income and expenditures other than the above 1,590,730.74
Less: Influenced amount of income tax 7,982,642.11
Amount of influence of minority interests 642,891.62
Total 40,435,585.99 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Weighted EPS（Yuan/share）
Profit as of reporting period average ROE
EPS-basic EPS-diluted
(%)
Net profit attributable to common
0.69% 0.06 0.06
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
0.06% 0.005 0.005
deduction of non-recurring profit
and loss
132
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2017
XI. 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 13th Meeting of the 7th Term of Board.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 18, 2017
133
