Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2019-27
Hangzhou Steam Turbine Co., Ltd.
Report of the Supervisory Committee of 2018
The members of the Supervisory Committee acknowledge being responsible for the truthfulness,
accuracy, and completeness of the announcement. Not any false record, misleading statement or
significant omission carried in this announcement.
In 2018, the Supervisory Committee had been performing its duties according to the Company
Law, Securities Law, the Articles of Association, and Meeting Criteria of Supervisory Committee.
Inspections were conducted regularly on the Company’s business operation, financial position,
and operation of the Board and executives, aimed at guarding the legal benefits of the shareholders,
the Company, and employees, and promote healthy development of the Company.
I. Meeting and examinations in the report period
In the report period, the Committee had held 4 regular or provisional meetings. A number of
issues were inspected and examined, including the periodic reports, financial reports, dividend
plans, introspection reports, routine related transactions, The election of the board of
supervisors, Impairment of assets and asset write off.
Fulfilling of duties of the Supervisory Committee
No. of meeting Date of meeting Titles of proposals
1.Work Report of Supervisory Committee 2017
2.Annual Report 2017 and Summary
3.Financial Report 2017
4.Dividend Plan 2017
5.Introspective Report of Internal Control System 2017
The 9th meeting of the 7th 6.Proposal on the Signing of a Related-party Transaction Agreement
term of Supervisory March 15,2018
between the Company and Related Party Hangzhou Steam Turbine Power
Committee
Group Co., Ltd.
7.Proposal of the provision for impairment of assets of 2017
8.Proposal of 2017 Write-offs Asset of the Company
The 10th meeting of the 7th
term of Supervisory April 25,2018 The 1st Quarterly Report 2018
Committee
The 11th meeting of the 7th
August 22,2018 Interim Report 2018 and Summary
term of Supervisory
Committee
The 12th meeting of the 7th
term of Supervisory October 22,2018 The 3rd Quarterly Report 2018
Committee
II. Presenting of board meetings and shareholders’ meetings
The Committee presented 10 board meetings and 2 shareholders’ meeting during the report period.
Through participating of these meetings, the Committee acquired information about the
Company’s decision-making process and business management. Communications were made
effectively with the shareholders, directors, and executives. Flaws in operation were discovered on
time. The supervisors were exercising their duties at the meetings and performed inspection on
decision-making processes and risk-control approaches.
III. Fulfilling of duties in the report period
In 2018, the Committee performed inspections on the following aspects in viewing of legal
operation and good economic efficiency.
1. Supervising on the business operation: The Supervisors participated in the meetings of the
Board and supervised the main decision-making procedures; verified the execution of resolutions
of the shareholders’ meeting and board meetings, as well as the major investment plans and
related transactions. The Committee also provided corresponding opinions and suggestions on the
business operation of the Company.
2. Inspection on financial activities: Inspection on business operation and financial position is
the key work of the Committee. The Committee urged the Company to improve its accounting
system and internal control system according to the Accounting Law and new accounting standard,
and thereafter supervised the change of accounting policies; supervised the processes of
accounting works; improvement opinions were provided according to the laws and regulations.
3. Supervising the executives: to perform effective supervising over the performances of the
directors and executives of the Company, the Supervisory Committee urged them to study the
laws and regulations to upgrade their sense of legal operation, therefore ensure legal operation of
the Company. All of the directors, supervisors, and executives were acting according to the law
without being punished by any department.
4. Supervising on inside information managementThe Company revised the Information Insider
Registration and Administration Rules according to the regulations of CSRC and SSE.
Information Insider Files were established covering all of the directors, supervisors, executives
and other insiders, and filed to SSE. This was for the effectiveness of confidential works and
information disclosure. No illegal trade was found with the aforesaid personnel in the report
period.
IV. Summary of the Committee’s opinion on particular issues
In the report period, the Committee had issued opinions on the periodic reports, introspective
report on internal control, related transactions, Impairment of assets and asset write off with
regard to the regulations and duties of the Committee. Specific as follows：
1. The opinions on the Annual Report 2017
All of the members considered the Annual Report 2017 is frankly and completely reflecting the
financial situation and business performance in the report term (January 1 – December 31, 2017).
They will assume joint and individual responsibilities for the accuracy, authentic, and
completeness of the Report.
2. Supervisory Committee’s opinion on the Internal Control Introspection Report 2017
The Internal Control Introspection Report 2017 was reflecting the operation of the internal control
system objectively, frankly, and completely.
3. Proposal on the Signing of a Related-party Transaction Agreement between the Company and
Related Party Hangzhou Steam Turbine Power Group Co., Ltd.
The “House Rental Agreement”, “Energy Supply and Management Agreement”, “Trademark
License Agreement” and “Land Lease Agreement” signed by the company and related party
Hangzhou Steam Turbine Power Group Co., Ltd. are required for production and operation, and
the pricing is fair and follows. The principles of fairness, openness and fairness; the procedures for
the review and voting of connected transactions are in compliance with the relevant provisions of
the Company Law, the Securities Law and the Articles of Association, and do not harm the
interests of the company and its shareholders, especially the minority shareholders.
4.Proposal of the Company’s Provision for Assets Impairment of 2017
The Company conducted a withdrawal for the provision for assets impairment of 2017 for the
Company according to Accounting Standards for Business Enterprises and relevant regulations,
which complied with the actual situation and was able to reflect the Company’s financial situation
and asset situation more fairly. The procedure of the Company’s conduction upon the provision
above accorded with laws and regulations and relevant regulations.
5.Proposal of the Company’s Annual Asset Write-off in 2017
The Company’s asset write-off followed Accounting Standards for Business Enterprises and the
management system of the Company on asset write-off, which actually reflected the Company’s
financial situation, sufficient evidence of write-off and write-off asset which didn’t involve with
the Company’s related party. The procedure of the Company’s asset write-off accorded with laws
and regulations and relevant regulations.
6. Opinions on the 1st Quarterly Report 2018，Interim Report 2018 and Summary and The 3rd
Quarterly Report 2018.
The producing and examination procedures of the 1st quarterly report 2018 ,Interim Report 2018
and Summary and The 3rd Quarterly Report 2018 were legal and complying with the requirements
of the CSRC. The Report is reflecting the financial position and business performance of the
Company frankly and completely. There is no false record, misleading statement, or material
omission in the report.
The Supervisory Committee of Hangzhou Steam Turbine Co., Ltd.
March 29, 2019
