The 3rd Quarterly Report 2018(Full Text)
Stock code：200771 Stock ID：Hangqilun B Announcement No.2018-69
Hangzhou Steam Turbine Co., Ltd.
The Third Quarterly Report 2018(Full Text)
（Stock code：200771）
2017 年 08 月
October 2018
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The 3rd Quarterly Report 2018(Full Text)
1 Important notes
The Board of Directors，the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and
completeness of the Quarterly Report.
All of the directors presented the board meeting at which this Quarterly Report was examined.
Mr. Zheng Bin, The Company Leader, Mr.Zhao Jiamao, Chief financial officer and the Mr.Jin Can, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in the report.
II. Basic information about the company
I. Main financial data and indices
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
No
Changed （%）over
As at the end of the reporting period As at the end of last year
end of prev. year
Gross assets（Yuan） 11,705,467,175.92 10,830,597,182.38 8.08%
Net assets attributable to the shareholders of
6,041,748,628.95 5,884,816,809.55 2.67%
the listed company（Yuan）
Increase/decrease
Between beginning of
over the same Changed （%）over
Reporting period the year to the end of
period of last year end of prev. year
the report period
（%）
Operating income（RMB） 1,108,687,686.30 19.79% 3,392,818,668.43 31.04%
Net profit attributable to the shareholders of
163,313,243.33 716.66% 291,823,837.34 356.02%
the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 144,020,340.79 1,384.86% 233,491,067.51 1,660.94%
listed company（RMB）
Cash flow generated by business operation,
-- -- 600,061,531.02 200.14%
net（RMB）
Basic earning per share(RMB/Share) 0.217 703.70% 0.387 355.29%
Diluted gains per
0.217 703.70% 0.387 355.29%
share(RMB/Share)(RMB/Share)
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The 3rd Quarterly Report 2018(Full Text)
Weighted average income/asset ratio（%） 2.73% 2.41% 4.89% 3.88%
Items and amount of non-current gains and losses
In RMB yuan
Amount (Year-beginning to the
Non-recurring gain and loss items Notes
end of the report period.)
Non-current asset disposal gain/loss(including the write-off part for which assets
-15,902.82
impairment provision is made)
Govemment subsidy recognized in current gain and loss(excluding those closely
22,867,462.28
related to the Company’s business and granted under the state’s policies)
Gain/loss from debt reorganization 6,613,000.00
In addition to normal business with the company effective hedging related business,
holders of tradable financial assets, transactions and financial liabilities arising from
changes in fair value gains and losses, as well as the disposal of trading of financial 38,271,017.01
assets, trading financial liabilities and available-for-sale financial assets gains return on
investment
Net amount of non-operating income and expense except the aforesaid items 1,389,571.44
Less: .Amount of influence of income tax 9,791,306.35
Influence on minority shareholders’ equity (after tax) 1,001,071.73
Total 58,332,769.83 --
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 recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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The 3rd Quarterly Report 2018(Full Text)
II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period
1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered
and the Shares Held by Top Ten Common Shareholders
In shares
Total number of common Total preference shareholders with the voting power
14,284 0
shareholders at the period-end recovered at the end of the reporting period(if any)
Shares held by the top 10 shareholders
Pledging or
Amount of
Share freezing
Properties of tradable shares
Shareholder name proportion Quantity Status
shareholder with Conditional Qua
% of the
held ntity
shares
State-owned
Hangzhou Steam Turbine Power Group Co., Ltd. 63.64% 479,824,800 479,824,800
legal person
Foreign legal 4,722,804 0
VANGUARD EMERGING MARKETS STOCK INDEX FUND 0.63%
person
Domestic 3,960,000 0
Zhou Jie 0.53%
Natural person
Foreign legal 3,493,674 0
ISHARES CORE MSCI EMERGING MARKETS ETF 0.46%
person
State-owned 3,459,717 0
China Merchants Securities (HK)Co., Ltd. 0.46%
legal person
Foreign legal 3,454,046 0
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 0.46%
person
Foreign legal 2,771,277 0
NORGES BANK 0.37%
person
Foreign legal 2,652,063 0
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 0.35%
person
Domestic 2,280,000 0
Xia Zulin 0.30%
Natural person
Domestic 1,441,324 0
Wang Yihu 0.19%
Natural person
To 10 holders of unconditional shares
Amount of shares without sales Share type
Shareholders’ Names
restriction Share type Quantity
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The 3rd Quarterly Report 2018(Full Text)
Foreign shares placed in
VANGUARD EMERGING MARKETS STOCK INDEX FUND 4,722,804 4,722,804
domestic exchange
Foreign shares placed in
Zhou Jie 3,960,000 3,960,000
domestic exchange
Foreign shares placed in
ISHARES CORE MSCI EMERGING MARKETS ETF 3,493,674 3,493,674
domestic exchange
Foreign shares placed in
China Merchants Securities (HK)Co., Ltd. 3,459,717 3,459,717
domestic exchange
Foreign shares placed in
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3,454,046 3,454,046
domestic exchange
Foreign shares placed in
NORGES BANK 2,771,277 2,771,277
domestic exchange
Foreign shares placed in
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 2,652,063 2,652,063
domestic exchange
Foreign shares placed in
Xia Zulin 2,280,000 2,280,000
domestic exchange
Foreign shares placed in
Wang Yihu 1,441,324 1,441,324
domestic exchange
Foreign shares placed in
CREDIT SUISSE AG HONG KONG BRANCH 1,301,759 1,301,759
domestic exchange
(1)It is unknown to the Company if there is any relationship among the top
10 common share holders without restriction. (2) Other Shareholders. is
Explanation on associated relationship or concerted action of the
not an action-in-concert” party with any of other shareholders as described by
above shareholders
the “Administration Rules of Informational Disclosure about Change of
Shareholding Statues of PLCs”.
Note to the top 10 common stockholders involved in margin
Not applicable
financing & securities lending (If any)
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.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of
the report period
Not applicable
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The 3rd Quarterly Report 2018(Full Text)
III. Significant Events
I. Changes in the principal accounting statement items and financial indications and the causes
In RMB yuan
Balance sheet items Ending balance Opening balance Proportion Causes of change
of the
change
Mainly due to the increase in prepayments for
Advance payments 22,867,462.28 3,158,099.85 624.09%
raw materials during the period.
Mainly due to the increase in dividends
Other receivable 54,032,024.96 5,860,337.77 822.00% receivable from Hangzhou Bank pledged shares
in the current period.
Mainly due to the increase in the purchase of
Other current assets 22,867,462.28 3,158,099.85 624.09% Financial management products during the
period.
Mainly due to the increase in construction
Construction in process 54,032,024.96 5,860,337.77 822.00% investment in new plant projects and research
buildings in the current period.
Mainly due to the payment of materials and the
Notes payable and account
22,867,462.28 3,158,099.85 624.09% issuance of acceptance bills for the current
payable
period.
Mainly due to the increase in income tax at the
Taxes payable 54,032,024.96 5,860,337.77 822.00%
end of the period.
Mainly received the second demolition
Long-term payable 22,867,462.28 3,158,099.85 624.09%
compensation in the current period.
Income statement items End of term Same period of last Scale of Remarks on the change
term change
Mainly due to the realization of the company's
Operation revenue 3,392,818,668.43 2,589,226,220.63 31.04% key projects in the current period, the sales
revenue increased year-on-year.
Taxes and surcharges Mainly due to the year-on-year increase in
33,984,172.83 20,922,948.45 62.43%
payable VAT payable in the current period.
Mainly due to the increase in interest income
Financial expenses -9,991,434.12 12,279,377.17 -181.37%
and net exchange income during the period.
Mainly due to the increase in contract
Non-operation expenses 3,264,511.69 -1,268,990.81 357.25%
compensation in the current period.
Other gains 22,867,462.28 3,158,099.85 624.09% Mainly due to the state-owned value-added tax
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The 3rd Quarterly Report 2018(Full Text)
relief for military products in the current period.
Mainly due to the increase in profits during the
Income tax expenses 54,032,024.96 5,860,337.77 822.00% period, resulting in an increase in current
income tax expenses.
Cash flow statement Amount in the Same period of the Proportion Causes of change
Items reporting period previous year n f the
change
Cash flow generated by Mainly due to the increase in cash received
business operation, net from sales of goods during the period and the
600,061,531.02 199,924,781.38 200.14%
decrease in cash paid for the purchase of raw
materials.
Net cash flow generated by Mainly due to the increase in cash paid for the
investment -417,696,615.32 -60,830,933.81 -586.65% construction and construction projects in the
current period.
Net increasing of cash and Mainly due to the increase in dividends
-66,417,360.93 -43,551,275.93 -52.50%
cash equivalents distributed during the period.
II. Progress of Significant Events, their Influences and Analytical Notice on the Solutions
1. During the reporting period, the company promoted the construction of two major projects as planned, and fully
prepared for the relocation work. As of the disclosure date, the company's steam turbine heavy-duty plant was put
into operation and the painting workshop was first relocated to the heavy factory area; the company's scientific re
search building has been successfully completed and is expected to be delivered at the end of the year.
2.The company signed the “ Compensation Agreement for the Relocation of Non-residential Houses on
State-owned Land” with Hangzhou Xiacheng City Construction Investment Development Group Co., Ltd.
Up to now, it has received a total of RMB 306,793,224.24 for relocation compensation. The complete report is
available as Announcement 2018-57 with Securities Times, Shanghai Securities Daily, Hong Kong Commercial
Daily and at www.cninfo.com.cn dated August 7, 2018.
Summary of important matters Disclosure date Temporary report disclosure of website query index
Announcement on receipt of dividends from
3、The company received and confirmed the Hangzhou
July 7, 2018 hangzhou Bank. Disclosed by http://www.
Bank's 2017 dividend income.
cninfo.com.cn.（2018-50）
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer,
directors, supervisors, senior executives or other related parties in the reporting period and commitments
unfinished in implementation at the end of the reporting period
Non-existence
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The 3rd Quarterly Report 2018(Full Text)
IV. Anticipation of Business Performance of 2018
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or
comparing with the same period of last year, and statement of causations.
Not applicable
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The 3rd Quarterly Report 2018(Full Text)
V. Investment in securities
In RMB yuan
Purcha
Mode of Sale
se Gain/los
Stock accounti Book value balance at Changes in fair amount Book value balance at Sauce
Security Security Cumulative fair value amoun s of the Accounting
Abbreviatio Initial investment cost ng the beginning of the value of the this in the the end of the reporting of the
category code changes in equity t in the reportin Items
n measure reporting period period this period shares
this g period
ment period
period
Financial
Domestic and Hangzhou assets Self
600926 390,954,040.00 FVM 2,239,086,521.28 -113,022,410.36 1,474,843,560.28 0.00 0.00 0.00 2,126,064,110.92
foreign stocks Bank available for funds
sale
Total 390,954,040.00 -- 2,239,086,521.28 -113,022,410.36 1,474,843,560.28 0.00 0.00 0.00 2,126,064,110.92 -- --
Disclosure Date of Announcement on
Securities investment approved by the Nil
Board of Directors
Disclosure Date of Announcement on
Securities Investment Approved by Nil
the Shareholders Meeting (If any)
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The 3rd Quarterly Report 2018(Full Text)
VI. Entrusted financial management
Unit :Ten thousand yuan
Type Source Amount Unexpired balance Overdue amount
Bank financing product Self fund 109,797 95,307 0
Brokerage financing
Self fund 0 0 0
product
Trust financing product Self fund 28,620 23,120 0
Other Self fund 1,600.5 0 0
Total 140,017.5 118,427 0
Specific Circumstance of Trust Investment which is Large in single amount, low insecurity, poor in liquidity
or unguaranteed in high risk
Not applicable
Situation with the appearance of principals which can not be recovered expectedly or other existing
situations which may lead to impairment\
Not applicable
VII. Investment in derivatives
Non-existence
VIII. Registration form of such Activities as Reception, Research, Communication, Interview in the
Reporting Period
Reception time Way of reception Types of visitors Basic index
Details are the relevant information disclosure
July 13,2018 Onsite investigation Organization
（http://www.cninfo.com.cn/）
IX. Outward Guarantee against the Regulations
Not applicable
X. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related
Parties
Non-existence
IV. Financial Statement
I. Financial statement
1. Consolidated balance sheet
Prepared by:：Hangzhou Steam Turbine Co., Ltd.
September 30, 2018
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The 3rd Quarterly Report 2018(Full Text)
In RMB yuan
Items At the end of term Beginning of term
Current asset：
Monetary fund 1,342,999,993.39 1,222,677,495.94
Settlement provision 0.00 0.00
Outgoing call loan 0.00 0.00
Financial assets measured at fair value with variations accounted
0.00 0.00
into current income account
Derivative financial assets 0.00 0.00
Notes receivable and account receivable 2,580,584,590.59 2,410,628,336.14
Including： Notes receivable 664,017,173.08 715,410,887.68
Account receivable 1,916,567,417.51 1,695,217,448.46
Advance payment 586,394,937.81 446,166,710.77
Insurance receivable 0.00 0.00
Reinsurance receivable 0.00 0.00
Provisions of Reinsurance contracts receivable 0.00 0.00
Other account receivable 38,177,796.01 23,805,005.57
Repurchasing of financial assets 0.00 0.00
Inventories 2,188,080,401.23 2,092,575,691.92
Assets held for sales 0.00 0.00
Non-current asset due in 1 year 0.00 0.00
Other current asset 1,229,525,764.77 904,426,265.79
Total of current assets 7,965,763,483.80 7,100,279,506.13
Non-current assets：
Loans and payment on other’s behalf disbursed 0.00 0.00
Available for sale of financial assets 2,250,394,141.72 2,417,780,984.08
Expired investment in possess 0.00 0.00
Long-term receivable 0.00 0.00
Long term share equity investment 5,800,000.00 5,800,000.00
Property investment 0.00 0.00
Fixed assets 526,924,872.84 566,710,937.10
Construction in progress 472,162,058.17 255,921,660.09
Production physical assets 0.00 0.00
Gas & petrol 0.00 0.00
Intangible assets 282,571,884.53 285,670,638.55
development expenses 0.00 0.00
Goodwill 0.00 0.00
Long-germ expenses to be amortized 367,261.52 253,886.90
Deferred income tax asset 201,483,473.34 198,179,569.53
Other non-current asset 0.00 0.00
Total of non-current assets 3,739,703,692.12 3,730,317,676.25
Total of assets 11,705,467,175.92 10,830,597,182.38
Current liabilities
Short-term loans 139,600,000.00 115,500,000.00
Loan from Central Bank 0.00 0.00
Deposit received and hold for others 0.00 0.00
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The 3rd Quarterly Report 2018(Full Text)
Call loan received 0.00 0.00
Financial liabilities measured at fair value with variations accounted
0.00 0.00
into current income account
Derivative financial liabilities 0.00 0.00
Notes payable and account payable 1,422,196,611.90 1,098,125,424.57
Advance receipts 2,695,144,757.26 2,419,751,405.08
Selling of repurchased financial assets 0.00 0.00
Fees and commissions receivable 0.00 0.00
Employees’ wage payable 98,652,710.32 79,525,773.69
Tax payable 47,981,958.73 34,920,073.37
Other account payable 29,730,854.53 28,128,478.10
Reinsurance fee payable 0.00 0.00
Insurance contract provision 0.00 0.00
Entrusted trading of securities 0.00 0.00
Entrusted selling of securities 0.00 0.00
Liabilities held for sales 0.00 0.00
Non-current liability due in 1 year 0.00 4,900,000.00
Other current liability 0.00 0.00
Total of current liability 4,433,306,892.74 3,780,851,154.81
Non-current liabilities：
Long-term loan 122,800,000.00 100,000,000.00
Bond payable 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Long-term payable 515,885,987.27 447,292,297.73
Long-term payable employee’s remuneration 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income 4,063,615.00 4,063,615.00
Deferred income tax liability 261,264,306.39 278,217,667.94
Other non-current liabilities 0.00 0.00
Total non-current liabilities 904,013,908.66 829,573,580.67
Total of liability 5,337,320,801.40 4,610,424,735.48
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instrument 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
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The 3rd Quarterly Report 2018(Full Text)
Capital reserves 139,545,089.02 139,545,089.02
Less：Shares in stock 0.00 0.00
Other comprehensive income 1,474,288,831.20 1,570,358,510.09
Special reserves 24,247,895.56 25,369,714.61
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision 0.00 0.00
Retained profit 3,028,543,605.39 2,774,420,288.05
Total of owner’s equity belong to the parent company 6,041,748,628.95 5,884,816,809.55
Minority shareholders’ equity 326,397,745.57 335,355,637.35
Total of owners’ equity 6,368,146,374.52 6,220,172,446.90
Total of liabilities and owners’ equity 11,705,467,175.92 10,830,597,182.38
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
2.Parent Company Balance Sheet
In RMB yuan
Items At the end of term Beginning of term
Current asset：
Monetary fund 916,564,000.24 654,407,180.33
Financial assets measured at fair value with
variations accounted into current income 0.00 0.00
account
Derivative financial assets 0.00 0.00
Notes receivable and account receivable 1,700,902,834.11 1,553,594,608.07
Including：Notes receivable 368,148,291.23 357,644,500.75
Account receivable 1,332,754,542.88 1,195,950,107.32
Advance payment 391,058,051.09 163,701,036.86
Other account receivable 21,768,829.35 11,211,538.86
Inventories 1,468,441,256.53 1,598,522,597.27
Assets held for sales 0.00 0.00
Non-current asset due in 1 year 0.00 0.00
Other current asset 869,541,143.44 737,474,571.12
Total of current assets 5,368,276,114.76 4,718,911,532.51
Non-current assets：
Available for sale of financial assets 2,210,948,884.14 2,377,021,294.50
Expired investment in possess 0.00 0.00
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Long-term receivable 0.00 0.00
Long term share equity investment 502,919,378.03 502,919,378.03
Property investment 0.00 0.00
Fixed assets 238,984,395.60 265,423,321.11
Construction in progress 195,854,732.86 151,569,540.89
Production physical assets 0.00 0.00
Gas & petrol 0.00 0.00
Intangible assets 167,757,334.19 169,780,320.65
Development expenses 0.00 0.00
Goodwill 0.00 0.00
Long-germ expenses to be amortized 126,943.46 253,886.90
Deferred income tax asset 152,071,235.92 146,802,178.11
Other non-current asset 0.00 0.00
Total of non-current assets 3,468,662,904.20 3,613,769,920.19
Total of assets 8,836,939,018.96 8,332,681,452.70
Current liabilities
Short-term loans 0.00 0.00
Financial liabilities measured at fair value
with variations accounted into current 0.00 0.00
income account
Derivative financial liabilities 0.00 0.00
Notes payable and account payable 573,230,505.31 462,704,271.86
Advance receipts 1,927,831,540.60 1,817,869,660.07
Employees’ wage payable 69,179,266.76 42,770,536.86
Tax payable 24,344,927.52 3,918,864.69
Other account payable 18,130,675.13 15,628,537.39
Classified as held for sale debt 0.00 0.00
Non-current liability due in 1 year 0.00 0.00
Other current liability 0.00 0.00
Total of current liability 2,612,716,915.32 2,342,891,870.87
Non-current liabilities：
Long-term loan 100,000,000.00 100,000,000.00
Bond payable 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Long-term payable 306,790,724.24 237,067,491.46
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Long-term payable to employees 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income 0.00 0.00
Deferred income tax liability 261,264,306.39 278,217,667.94
Other non-current liabilities 0.00 0.00
Total of Non-current liabilities 668,055,030.63 615,285,159.40
Total of liability 3,280,771,945.95 2,958,177,030.27
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instrument 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Capital reserves 138,953,250.09 138,953,250.09
Less：Shares in stock 0.00 0.00
Other comprehensive income 1,474,843,560.28 1,570,912,609.09
Special reserves 9,362,821.15 9,629,800.19
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 2,576,640,638.84 2,298,641,960.41
Total of owners’ equity 5,556,167,073.01 5,374,504,422.43
Total of liabilities and owners’ equity 8,836,939,018.96 8,332,681,452.70
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
3.Consolidated Income statement of the Report period
In RMB yuan
Items Amount in this period Amount in last period
I. Total revenue 1,108,687,686.30 925,501,518.37
Incl：Business income 1,108,687,686.30 925,501,518.37
Interest income 0.00 0.00
Insurance fee earned 0.00 0.00
Fee and commission received 0.00 0.00
II. Total business cost 983,622,964.03 912,082,177.92
Incl：Business cost 698,663,985.04 635,724,163.85
Interest expenses 0.00 0.00
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The 3rd Quarterly Report 2018(Full Text)
Fee and commission paid 0.00 0.00
Insurance discharge payment 0.00 0.00
Net claim amount paid 0.00 0.00
Net amount provided as insurance contract reserves 0.00 0.00
Insurance policy dividend paid 0.00 0.00
Reinsurance expenses 0.00 0.00
Business tax and surcharge 4,164,943.79 2,186,397.87
Sales expense 44,033,676.52 39,315,517.86
Administrative expense 119,519,553.39 114,058,767.46
R & D expenses 72,054,029.60 56,091,776.09
Financial expenses -9,994,611.19 4,334,132.88
Including：Interest cost 3,096,191.82 2,542,658.52
Interest income 2,655,725.65 3,172,798.81
Asset impairment loss 55,181,386.88 60,371,421.91
Add： Other gains 2,529,767.83 652,862.58
Investment gain（“-”for loss） 70,813,800.50 17,742,166.35
Incl: Investment gains from affiliates 0.00 0.00
Fair value change income 0.00 0.00
Gains from currency exchange（“-”for loss） 0.00 0.00
Assets disposal income -3,512.61 2,555,740.94
III. Operational profit（“-”for loss） 198,404,777.99 34,370,110.32
Add ：Non-operational income 7,064,195.75 2,009,924.28
Less：Non-operational expenses 673,357.15 -1,537,490.37
IV .Gross profit(“-”for loss) 204,795,616.59 37,917,524.97
Less：Income tax expenses 22,054,153.14 -668,029.80
V. Net profit 182,741,463.45 38,585,554.77
(1) Categorized by going concern 182,741,463.45 38,585,554.77
(2) Termination of operating net profit 0.00 0.00
Net profit attributable to the owners of parent company 163,313,243.33 19,997,776.79
Minority shareholders’ equity 19,428,220.12 18,587,777.98
VI. After tax net amount of comprehensive income -23,360,682.96 -152,355,402.50
Net of profit of other comprehensive income attributable to -23,405,956.89 -152,071,929.42
owners of the parent company
（I）Other comprehensive income items that will not be 0.00 0.00
reclassified into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt 0.00 0.00
or net assets
2.Other comprehensive income under the equity method investee 0.00 0.00
can not be reclassified into profit or loss.
（II） -23,405,956.89 -152,071,929.42
Other comprehensive income that will be reclassified into profit o
r loss.
1.Other comprehensive income under the equity method investee 0.00 0.00
can be reclassified into profit or loss.
16
The 3rd Quarterly Report 2018(Full Text)
2.Gains and losses from changes in fair value available for sale fi -23,439,529.39 -151,861,722.43
nancial assets
3.Held-to-maturity investments reclassified to gains and losses of 0.00 0.00
available for sale financial assets
4.The effective portion of cash flow hedges and losses 0.00 0.00
5.Translation differences in currency financial statements 33,572.50 -210,206.99
6.Other 0.00 0.00
45,273.93 -283,473.08
Net
after-tax of other comprehensive income attributable to Minority
shareholders’ equity
VII. Total comprehensive income 159,380,780.49 -113,769,847.73
Total comprehensive income attributable to the owner of the 139,907,286.44 -132,074,152.63
parent company
Total comprehensive income attributable minority shareholders 19,473,494.05 18,304,304.90
VIII. Earnings per share
（I）Basic earnings per share 0.217 0.027
(II)Diluted earnings per share
0.217 0.027
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
4.Income statement of the Parent Company of the Report period
In RMB yuan
Items Amount in this period Amount in last period
I. Turnover 698,411,449.47 621,115,493.86
Less：Operation cost 422,591,187.82 469,564,314.90
Taxes and surcharge 853,658.87 -1,059,866.18
Sales expenses 28,830,027.49 24,919,849.58
Administrative expenses 78,734,803.39 67,825,021.24
R & D cost 49,502,603.39 35,954,115.57
Financial expenses -9,515,143.09 2,694,873.23
Including：Interest cost 941,722.22 856,111.11
Interest income 1,672,779.68 2,359,676.57
Impairment loss on assets 49,956,816.30 56,967,035.94
Add：Other gains 1,603,129.49 0.00
Investment gains(“-“for loss) 101,614,644.02 17,628,312.14
Including: investment income from associates and joint 0.00 0.00
ventures
Fair value change income 0.00 0.00
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The 3rd Quarterly Report 2018(Full Text)
Assets disposal income 0.00 2,555,740.94
II. Operational profit（“-”for loss） 180,675,268.81 -15,565,797.34
Add ：Non-operational income 6,804,403.21 1,892,394.36
Less：Non -operational expenses 0.00 -1,618,696.05
III.Gross profit(“-”for loss) 187,479,672.02 -12,054,706.93
Less：Income tax expenses 14,396,702.89 -3,501,175.09
IV. Net profit 173,082,969.13 -8,553,531.84
(1) Categorized by going concern 173,082,969.13 -8,553,531.84
(2) Termination of operating net profit 0.00 0.00
V.After tax net amount of comprehensive income -23,439,529.39 -151,861,722.43
（I）Other comprehensive income items that will not be 0.00 0.00
reclassified into gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit plans of changes in net de 0.00 0.00
bt or net assets
2.Other comprehensive income under the equity method investe 0.00 0.00
e can not be reclassified into profit or loss.
（ II ） -23,439,529.39 -151,861,722.43
Other comprehensive income that will be reclassified into profit
or loss.
1.Other comprehensive income under the equity method investe 0.00 0.00
e can be reclassified into profit or loss.
2.Gains and losses from changes in fair value available for sale -23,439,529.39 -151,861,722.43
financial assets
3.Held-to-maturity investments reclassified to gains and losses 0.00 0.00
of available for sale financial assets
4.The effective portion of cash flow hedges and losses 0.00 0.00
5.Translation differences in currency financial statements 0.00 0.00
6.Other 0.00 0.00
VI. Total comprehensive income 149,643,439.74 -160,415,254.27
VII. Earnings per share：
（I）Basic earnings per share 0.23 -0.011
(II)Diluted earnings per share 0.23 -0.011
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
18
The 3rd Quarterly Report 2018(Full Text)
5. Consolidated Income statement between the beginning of the year and end of the report period
In RMB yuan
Items Amount in this period Amount in last period
I. Total revenue 3,392,818,668.43 2,589,226,220.63
Including：Business income 3,392,818,668.43 2,589,226,220.63
Interest income 0.00 0.00
Insurance fee earned 0.00 0.00
Commission charge and commission income 0.00 0.00
II. Total Business cost 3,134,486,798.63 2,602,813,222.01
Including：Business cost 2,310,780,137.30 1,828,109,215.33
Interest expense 0.00 0.00
Commission chare and commission expense 0.00 0.00
Insurance discharge payment 0.00 0.00
Net claim amount paid 0.00 0.00
Insurance policy dividend paid 0.00 0.00
Insurance policy dividend paid 0.00 0.00
Reinsurance expenses 0.00 0.00
Business tax and surcharge 33,984,172.83 20,922,948.45
Sales expenses 121,041,978.74 121,189,533.71
Administrative expense 356,975,613.55 327,970,088.85
R & D cost 223,403,590.63 196,592,232.51
Financial expenses -9,991,434.12 12,279,377.17
Including：Interest cost 9,518,675.26 7,785,823.29
Interest income 8,999,590.97 6,463,128.04
Asset impairment loss 98,292,739.70 95,749,825.99
Add：Other gains 22,867,462.28 3,158,099.85
Investment gain（“-”for loss） 107,958,407.94 106,730,672.88
Including: investment income from associates and joint ventures 0.00 0.00
Fair value change income 0.00 0.00
Gains from currency exchange（“-”for loss） 0.00 0.00
Assets disposal income -3,512.61 2,741,359.47
III. Operational profit（“-”for loss） 389,154,227.41 99,043,130.82
Add ：Non-operational income 11,253,922.23 3,862,626.79
Less：Non-operational expenses 3,264,511.69 -1,268,990.81
IV. Gross profit(“-”for loss) 397,143,637.95 104,174,748.42
Less：Income tax expenses 54,032,024.96 5,860,337.77
V. Net profit 343,111,612.99 98,314,410.65
(1) Categorized by going concern 343,111,612.99 98,314,410.65
(2) Termination of operating net profit 0.00 0.00
Net profit attributable to the owners of parent company 291,823,837.34 63,993,581.17
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The 3rd Quarterly Report 2018(Full Text)
Minority shareholders’ equity 51,287,775.65 34,320,829.48
VI.After tax net amount of comprehensive income -96,070,528.59 -170,633,756.07
Net of profit of other comprehensive income attributable to owners
-96,069,678.89 -170,687,028.76
of the parent company
（I）Other comprehensive income items that will not be reclassified
0.00 0.00
into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt o
0.00 0.00
r net assets
2.Other comprehensive income under the equity method investee ca
0.00 0.00
n not be reclassified into profit or loss.
（II）
Other comprehensive income that will be reclassified into profit or l -96,069,678.89 -170,687,028.76
oss.
1.Other comprehensive income under the equity method investee ca
0.00 0.00
n be reclassified into profit or loss.
2.Gains and losses from changes in fair value available for sale fina
-96,069,048.81 -170,726,532.67
ncial assets
3.Held-to-maturity investments reclassified to gains and losses of a
0.00 0.00
vailable for sale financial assets
4.The effective portion of cash flow hedges and losses 0.00 0.00
5.Translation differences in currency financial statements -630.08 39,503.91
6.Other 0.00 0.00
Net
after-tax of other comprehensive income attributable to Minority -849.70 53,272.69
shareholders’ equity
VII. Total comprehensive income 247,041,084.40 -72,319,345.42
Total comprehensive income attributable to the owner of the parent
195,754,158.45 -106,693,447.59
company
Total comprehensive income attributable minority shareholders 51,286,925.95 34,374,102.17
VIII. Earnings per share
（I）Basic earnings per share 0.387 0.085
(II)Diluted earnings per share 0.387 0.085
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period
In RMB yuan
20
The 3rd Quarterly Report 2018(Full Text)
Items Amount in this period Amount in last period
I. Turnover 2,189,150,333.95 1,737,260,574.47
Less：Business cost 1,515,016,894.16 1,318,546,461.50
Taxes and surcharge 20,834,534.64 7,296,536.20
Sales expenses 70,905,475.62 74,276,730.74
Administrative expense 233,577,791.35 204,899,573.50
R & D cost 161,617,772.84 149,028,291.26
Financial expenses -10,794,244.88 8,841,881.84
Including：Interest cost 3,846,459.27 2,549,722.22
Interest income 5,902,263.69 4,040,603.14
Asset impairment loss 82,930,149.30 84,610,943.77
Add：Other gains 19,859,416.82 0.00
Investment gain（“-”for loss） 199,260,434.93 158,941,964.67
Including: investment income from associates and joint
ventures 0.00 0.00
Fair value change income 0.00 0.00
Assets disposal income 0.00 2,555,740.94
II. Operational profit（“-”for loss） 334,181,812.67 51,257,861.27
Add ：Non-operational income 10,929,928.48 3,305,008.31
Less：Non-operational expenses 991,089.95 -1,604,826.65
III.Gross profit(“-”for loss) 344,120,651.20 56,167,696.23
Less：Income tax expenses 28,421,452.77 -8,278,292.12
IV. Net profit 315,699,198.43 64,445,988.35
(1) Categorized by going concern 315,699,198.43 64,445,988.35
(2) Termination of operating net profit 0.00 0.00
V.After tax net amount of comprehensive income -96,069,048.81 -170,726,532.67
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting 0.00 0.00
period
1.Re-measurement of defined benefit plans of changes in ne
0.00 0.00
t debt or net assets
2.Other comprehensive income under the equity method inv
0.00 0.00
estee can not be reclassified into profit or loss.
（ II ）
Other comprehensive income that will be reclassified into p -96,069,048.81 -170,726,532.67
rofit or loss.
1.Other comprehensive income under the equity method inv
0.00 0.00
estee can be reclassified into profit or loss.
2.Gains and losses from changes in fair value available for s
-96,069,048.81 -170,726,532.67
ale financial assets
3.Held-to-maturity investments reclassified to gains and los 0.00 0.00
21
The 3rd Quarterly Report 2018(Full Text)
ses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
0.00 0.00
5.Translation differences in currency financial statements 0.00 0.00
6.Other 0.00 0.00
VI. Total comprehensive income 219,630,149.62 -106,280,544.32
VII. Earnings per share：
（I）Basic earnings per share 0.419 0.085
(II)Diluted earnings per share 0.419 0.085
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period
In RMB yuan
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 2,922,174,240.29 2,568,093,696.92
Net increase of customer deposits and capital kept for brother
0.00 0.00
company
Net increase of loans from central bank 0.00 0.00
Net increase of inter-bank loans from other financial bodies 0.00 0.00
Cash received against original insurance contract 0.00 0.00
Net cash received from reinsurance business 0.00 0.00
Net increase of client deposit and investment 0.00 0.00
Net increase of the financial assets that are measured at fair value
0.00 0.00
and whose movement is counted to the current gain and loss
Cash received as interest, processing fee and commission 0.00 0.00
Net increase of inter-bank fund received 0.00 0.00
Net increase of repurchasing business 0.00 0.00
Tax returned 4,436,443.28 14,404,590.75
Other cash received from business operation 23,972,719.40 17,353,241.43
Sub-total of cash inflow 2,950,583,402.97 2,599,851,529.10
Cash paid for purchasing of merchandise and services 1,410,074,595.43 1,552,659,985.01
Net increase of client trade and advance 0.00 0.00
Net increase of savings n central bank and brother company 0.00 0.00
22
The 3rd Quarterly Report 2018(Full Text)
Cash paid for original contract claim 0.00 0.00
Cash paid for interest, processing fee and commission 0.00 0.00
Cash paid for policy dividend 0.00 0.00
Cash paid to staffs or paid for staffs 546,423,474.68 516,677,860.36
Taxes paid 268,804,298.07 204,017,110.68
Other cash paid for business activities 125,219,503.77 126,571,791.67
Sub-total of cash outflow from business activities 2,350,521,871.95 2,399,926,747.72
Cash flow generated by business operation, net 600,061,531.02 199,924,781.38
II.Cash flow generated by investing
Cash received from investment retrieving 101,314,432.00 87,259,813.79
Cash received as investment gains 98,301,115.34 99,830,672.88
Net cash retrieved from disposal of fixed assets, intangible assets,
4,138.00 16,449,715.72
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
0.00 0.00
units
Other investment-related cash received 3,373,416,055.08 2,862,767,338.00
Sub-total of cash inflow due to investment activities 3,573,035,740.42 3,066,307,540.39
Cash paid for construction of fixed assets, intangible assets and
323,721,857.46 -19,054,636.97
other long-term assets
Cash paid as investment 67,000,000.00 100,243,111.17
Net increase of loan against pledge 0.00 0.00
Net cash received from subsidiaries and other operational units 0.00 0.00
Other cash paid for investment activities 3,600,010,498.28 3,045,950,000.00
Sub-total of cash outflow due to investment activities 3,990,732,355.74 3,127,138,474.20
Net cash flow generated by investment -417,696,615.32 -60,830,933.81
III.Cash flow generated by financing
Cash received as investment 0.00 0.00
Incl: Cash received as investment from minor shareholders 0.00 0.00
Cash received as loans 144,800,000.00 114,500,000.00
Cash received from bond placing 0.00 0.00
Other financing –related ash received 0.00 0.00
Sub-total of cash inflow from financing activities 144,800,000.00 114,500,000.00
Cash to repay debts 102,800,000.00 90,300,000.00
Cash paid as dividend, profit, or interests 108,417,360.93 46,822,775.75
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The 3rd Quarterly Report 2018(Full Text)
Incl: Dividend and profit paid by subsidiaries to minor shareholders 0.00 0.00
Other cash paid for financing activities 0.00 20,928,500.18
Sub-total of cash outflow due to financing activities 211,217,360.93 158,051,275.93
Net cash flow generated by financing -66,417,360.93 -43,551,275.93
IV. Influence of exchange rate alternation on cash and cash
4,374,942.68 -5,816,792.67
equivalents
V.Net increase of cash and cash equivalents 120,322,497.45 89,725,778.97
Add: balance of cash and cash equivalents at the beginning of term 1,222,677,495.94 895,037,559.34
VI ..Balance of cash and cash equivalents at the end of term 1,342,999,993.39 984,763,338.31
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period
In RMB yuan
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 1,652,796,257.32 1,571,897,429.24
Tax returned 1,710,862.98 1,250,418.38
Other cash received from business operation 8,454,029.21 7,165,542.91
Sub-total of cash inflow 1,662,961,149.51 1,580,313,390.53
Cash paid for purchasing of merchandise and services 851,307,428.18 1,003,979,797.77
Cash paid to staffs or paid for staffs 363,539,423.10 355,704,642.77
Taxes paid 162,465,388.01 104,637,532.52
Other cash paid for business activities 39,414,332.67 44,601,771.76
Sub-total of cash outflow from business activities 1,416,726,571.96 1,508,923,744.82
Cash flow generated by business operation, net 246,234,577.55 71,389,645.71
II.Cash flow generated by investing
Cash received from investment retrieving 100,000,000.00 78,558,351.80
Cash received as investment gains 189,603,142.33 152,041,964.67
Net cash retrieved from disposal of fixed assets,
0.00 16,038,461.54
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
0.00 0.00
operational units
Other investment-related cash received 2,429,775,072.51 1,815,992,395.89
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The 3rd Quarterly Report 2018(Full Text)
Sub-total of cash inflow due to investment activities 2,719,378,214.84 2,062,631,173.90
Cash paid for construction of fixed assets, intangible
assets 120,259,505.35 42,300,701.68
and other long-term assets
Cash paid as investment 66,000,000.00 100,000,000.00
Net cash received from subsidiaries and other operational
0.00 0.00
units
Other cash paid for investment activities 2,480,000,000.00 1,855,000,000.00
Sub-total of cash outflow due to investment activities 2,666,259,505.35 1,997,300,701.68
Net cash flow generated by investment 53,118,709.49 65,330,472.22
III.Cash flow generated by financing
Cash received as investment 0.00 0.00
Cash received as loans 0.00 0.00
Cash received from bond placing 0.00 0.00
Other financing –related ash received 0.00 0.00
Sub-total of cash inflow from financing activities 0.00 0.00
Cash to repay debts 0.00 0.00
Cash paid as dividend, profit, or interests 41,558,617.59 2,549,722.22
Other cash paid for financing activities 0.00 0.00
Sub-total of cash outflow due to financing activities 41,558,617.59 2,549,722.22
Net cash flow generated by financing -41,558,617.59 -2,549,722.22
IV. Influence of exchange rate alternation on cash and
4,362,150.46 -6,284,198.45
cash equivalents
V.Net increase of cash and cash equivalents 262,156,819.91 127,886,197.26
Add: balance of cash and cash equivalents at the
654,407,180.33 293,454,126.93
beginning of term
VI ..Balance of cash and cash equivalents at the end of
916,564,000.24 421,340,324.19
term
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
II. Auditor‘s report
Whether the Q3 report is audited
The Q3 Report is not audited.
Hangzhou Steam Turbine Co., Ltd.
25
The 3rd Quarterly Report 2018(Full Text)
Chairman of the Board: Zheng Bin
October 23, 2018
26