Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. :2020-45
Hangzhou Steam Turbine Co., Ltd.
Semi-Annual Report 2020
（Stock Code：200771）
August 2020
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
I. 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.
Mr. Zheng Bin,Chairman of the Company, Mr. Zhao Jiamao, Person in charge of accounting and Mr. Jin Chan,
Person in charge of Accounting institute（accountant in charge)hereby confirm that the financial Report of
Semi-Annual Report is authentic, accurate and complete.
All of the directors attended the board meeting on which this report was examined.
For risks in company's operations, please refer to Article X "Risks Faced by Company and The
Countermeasures" in Section IV "Discussion and Analysis on Business Conditions". The company's designated
information disclosure media are: Shanghai Securities News (Chinese), Securities Times (Chinese), Hong Kong
Commercial Daily (English), http://www.cninfo.com.cn (In English and Chinese), all information of the company
is subject to the information published in the above selected media. Investors are advised to pay attention to
investment risks.
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 2020
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
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 convertible corporate bonds
IX. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Definition
Terms to be defined Refers to Definition
Company, the Company Refers to Hangzhou Steam Turbine Co., Ltd.
The Group, Hangqi Group Refers to Hangzhou Steam Turbine Power Group Co., Ltd.
The report period, In the report period Defined to January 1,2020-June 30,2020
Hangzhou Zhongneng Steam Turbine Power Co., Ltd. – the holding
Zhongneng Co. Refers to
subsidiary of the Company
Hangzhou Steam Turbine Casting Co., Ltd. – the holding subsidiary of the
Casting Co. Refers to
Company
Zhejiang Steam Turbine Packaged Technology Development Co., Ltd. –
Packaged Tech. Co. Refers to
the holding subsidiary of the Company
Hangzhou Steam Turbine Machinery Equipment Co., Ltd. - the holding
Machinery Co. Refers to
subsidiary of the Company
Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. - the holding
Auxiliary Machine Co. Refers to
subsidiary of the Company
Zhejiang Turbine Import & Export Co., Ltd. – the holding subsidiary of
Turbine Co. Refers to
the Company
Hangzhou Steam Turbine Heavy Industry Co., Ltd. - the holding
Heavy Industry Co. Refers to
subsidiary of the Company
The Board of Directors Refers to The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
The Supervisory Committee Refers to The Supervisory Committee of Hangzhou Steam Turbine Co., Ltd.
The Shareholders’ Meeting Refers to The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
RMB, RMB0’000, RMB000’000’000 Refers to RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
MW Refers to Unit of power: 1000KW
PLM Refers to Product life circle management information system
MES Refers to Manufacturing execution system
WMS Refers to Warehouse management system
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
II.Basic Information of the Company and Financial index
I. Basic Information
Stock ID Hangqilun B Stock Code 200771
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese 杭州汽轮机股份有限公司
Short form of Company Name in
杭汽轮
Chinese
Name in English HANGZHOU STEAM TURBINE CO.,LTD
Abbreviation in English HTC
Legal representative: Zheng Bin
II. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Li Guiwen Wang Caihua
Address No. 357 Shiqiao Rd. Hangzhou No. 357 Shiqiao Rd. Hangzhou
Tel. 0571-85780058 0571-85780438
Fax. 0571-85780433 0571-85780433
Email. lgw@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 2019.
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 2019.
IV. Summary of Accounting Data and Financial Index
Are there any retrospective adjustment or restatement of financial information of previous year
No
Increase/decrease
This report term Same period last year
(%)
Turnover (yuan) 2,021,667,426.27 1,920,181,703.03 5.29%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Net profit attributable to shareholders of the
230,908,137.72 160,325,133.00 44.02%
listed company (yuan)
Net profit attributable to the shareholders of the
listed company and after deducting of 165,508,020.80 131,574,189.68 25.79%
non-recurring gain/loss(yuan)
Net Cash flow generated by business operation
326,964,692.03 -9,340,596.37 3,600.47%
(yuan)
Basic earnings per share (Yuan/share) 0.31 0.21 47.62%
Diluted earnings per share (Yuan/share) 0.31 0.21 47.62%
Net income on asset, weighted 3.53% 2.62% 0.91%
As at the end of the reporting
As at the end of last year YoY+/-（%）
period
Gross assets (yuan) 13,190,384,302.57 12,600,115,579.96 4.68%
Shareholders’ equity attributable to shareholders
6,493,586,472.40 6,607,496,148.58 -1.72%
of the listed company（yuan）
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 assets
-148,212.10
impairment provision is made)
Governmental Subsidy accounted as current gain/loss, except for those subsidies at
with amount or quantity fixed by the national government and closely related to the 55,716,643.40
Company’s business operation.
Debt restructuring profit or loss -115,229.71
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 22,861,806.76
trading of financial assets, trading financial liabilities and available-for-sale
financial assets gains return on investment
Other non-operating income and expenditure beside for the above items 2,547,807.55
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Less: Influenced amount of income tax 12,626,321.11
Amount of influence of minority interests（After tax） 2,836,377.87
Total 65,400,116.92 --
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 2020
III. Outline of Company Business
I. Main Business the Company is Engaged in During the Report Period
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 cycle power 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.
In the gas turbine business, the Company has cooperated with Siemens on the advanced natural gas turbine
SGT-800 model-with features of high efficiency, high reliability and low emission, thus to enter the
distributed natural gas field. As the general whole-set maker of SGT-800 in China, the company has launched
the gas turbine business in respect of the project procurement and the integrated implementation. Hangzhou
Steam Turbine has the type selection ability for the distributed energy combined cycle project, has
established a complete system of supporting standard and material system, and it can complete the
independent processing or matching work for the equipment besides the gas turbine body. In the industrial
fields including the cogeneration /combined cycle power plant and the oil & gas project with distributed
energy projects that adopt the small and medium gas turbines, the Company not only can provide gas turbine
equipment for customers, but also can provide customers with complete sets of equipment for gas turbine
power plant and the efficient integrated solutions. Especially, it can provide customers with operational
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
support services throughout the product life, and this service model is conductive for the establishment of
long-term business cooperation relationships between the company and its customers.
As the major producer of industrial equipments in China during the report period, our company is mainly
benefited from the following factors in terms of the elements driving our business performance:
1. On the basis of market demands. The relevant market demands fluctuate differently due to various
business condition and investment cycles in different industrial fields. The company further made more
specified positions toward the market for the products, implemented the differentiated marketing strategy,
and integrated the business sectors and tapped into the potential. During the reporting period, the domestic oil
refining and chemical investment projects started at multiple points and drove the demand for related
equipment manufacturing. The company grasped the growth opportunities in the petrochemical sector, and
formulated the flexible price strategies for the fields of low-end and mid-end drive, ensured the market share
and continuously consolidated and strengthened the existing market advantages. Adhering to the "Go global"
strategy, the Company continued to expand the overseas markets, establish overseas offices and increase its
market influence.
2. Innovation and further reform in difficult areas of product technology.
Our company continuously improves product technical performance and tackles hard issues in the scientific
researches of product structure, core parts, basic design, manufacturing technology, material technology, etc.
In addition, basing on clients’ demands, our company launches the study “The Demonstration and
Application Project for Packaging Technology of Steam Turbine” to push forward the intelligence of our
products and the development of the integration technology. Meantime, the company cooperated with
universities, scientific research institutes to build the technological exchange and cooperation platform.
3. Upgrading of industrial structure transformation.
The company jointed with Siemens to enter the distributed energy market and enhance the development and
utilization of natural gas distributed energy. In the industrial fields including the cogeneration /combined
cycle power plant and the oil & gas project with distributed energy projects that adopt the small and medium
gas turbines, the Company not only can provide gas turbine equipment for customers, but also can provide
customers with complete sets of equipment for gas turbine power plant and the efficient integrated solutions.
4. Brand and market position. The company’s products have a good reputation and extensive brand influence
in the domestic market, The company has maintained a leading market share in the domestic industrial drive.
The company's products have a high reputation and brand influence in the domestic market.
5.Cost controlling level. As domestic labor costs continue to rise and the price of industrial products
continue to
decline, the product profitability is facing a severe test. In recent years, the company continuously improves
the
level of costs controlling by improving the organizational structure, optimizing business processes,
enhancing the supply chain controlling, strengthening risk management, raising the efficiency of all the staff
and so on.
6.Emphasis on quality engineering and services: promote the key project management, meticulously plan
key projects, implement dynamic quality supervision; attach importance to products’ after-sales service
market, integrate existing resources to increase after-sales service initiative, extend product value chain, and
promote the company’s transformation from manufacturing to service.
II. Major Changes in Main Assets
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
1.Major Changes in Main Assets
Main assets Major changes
Mainly caused by the volatility in share price of Hangzhou Bank with the Company’s
Equity assets
investment and participation
Fixed assets Mainly due to the company‘s fixed assets depreciation
Intangible assets No major changes
Mainly caused by the new investment in the current period of the steam turbine Heavy
Construction in progress
industry project with the progress of the project
2. Main Conditions of Overseas Assets
Not applicable
III. Analysis On core Competitiveness
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.
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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
IV. Performance Discussion and Analysis
1.General
During reporting period, based on the annual work policy of "decisively relocate and rebuild, intensively
study market, develop culture-based company, and strive to be the first-class", while focusing on the prevention
and control of the pandemic, the company also promotes the relocation in an orderly manner to ensure production
capacity, execute precise marketing to grasp orders from key projects and emerging markets, continuously
research technology to make competitive products with craftsmanship spirit, and lead the company with culture
and drive it's growth through management improvement.
In the first half of 2020, the company realized operating income of 2021.6674 million yuan, total profit of
299.8415 million yuan and net profit of 269.296 million yuan, of which net profit attributable to shareholders of
listed companies was 230.9081 million yuan. Compared with the same period of last year, the operating income
increased by 5.29% year on year, total profit increased by 35.40% year on year, net profit increased by 45.83%
year on year, and net profit attributable to shareholders of listed companies increased by 44.02% year on year.
Good results have been achieved.
1. Decisive relocation and rebuilding to ensure productivity
During the reporting period, the company lists relocation work as "Project No. 1", emphasizing on
construction and equipment relocation. The company started a full relocation on May 8, 2020. At present, major
production workshops such as stator workshop, rotor workshop, assembly workshop, joint workshop, and
distribution center have been relocated and the steam turbine no-load test bench is already equipped with on-site
commissioning capability. More than 100 sets of devices are relocated and enter into full installation and
commissioning stage.
2. Precise marketing and intensive market research
In petrochemical field, the company successfully signed 30 sets of devices for Shenghong Petrochemical
Group's large-scale refining and chemical integration project, and ethylene compressors with 1.2 million tons/year
capacity for SINOPEC Zhenhai Refining & Chemical Company. In coal chemical industry, the company signed
orders of 21 sets of steam turbines from Shanxi Coal and Chemical Group's 1.8 million tons of ethylene glycol
project (Phase I). In new thermal power market, the company obtained air compressor contracts with Hengming
Chemical Fiber Company, Taiaisi Company and Xinzhonggang Company. Affected by the global pandemic, as the
company's main overseas client projects are in suspension or postponement, a total of 15 sets devices have been
ordered from overseas markets.
3. Continue to innovate and strive to be first-class
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
In reporting period, the company have overall established 22 new product development (5) and scientific
research projects (17). The company promoted the ethylene unit project of Zhenhai Refinery and Chemical as
planned, completed the trial production of the subcritical unit regulating-stage moving blade pin, and completed
technical development for Hong Kong Garbage Power Station, Dalian Hengli Flash Unit, Jieyang 1.4 million
tons/year ethylene cracking gas turbine, and Sanjiang ethylene unit, etc.
4. Develop culture-based company and improve management
The Company issued the "Corporate Culture Construction Implementation Outline for 2020-2022" to start the
corporate culture journey, promoted the solid implementation of corporate culture construction projects, and
continuously promoted the deep integration of corporate cultural soft power and corporate management hard
power. The Company continued to promote the MES system, the blade production management multi-system,
supply chain system,thetridimensional WMS system adoption application research, and the quality inspection
process information management and control research projects, and it continued to promote the construction of the
Company's industrial Internet application service platform, user service platform, and continuously improved the
Company’s Product "smart manufacturing" ability, comprehensively promoted the "lean production" and
continuously improved the "lean production" evaluation system.
II.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
YOY change
This report period Same period last year Cause change
（%）
Turnover 2,021,667,426.27 1,920,181,703.03 5.29%
Operating cost 1,387,814,297.42 1,366,404,401.26 1.57%
Sale expenses 83,979,396.90 86,895,939.32 -3.36%
Administrative expenses 261,099,800.18 235,168,325.98 11.03%
Mainly due to the decrease of interest
Financial expenses -19,214,436.12 -4,254,503.16 -351.63% expenses and the increase of exchange
earnings in the current period.
Income tax expenses 30,545,431.68 36,775,399.29 -16.94%
R & D Investment 103,228,915.93 116,760,942.52 -11.59%
Mainly due to the year-on-year increase in
Cash flow generated by
326,964,692.03 -9,340,596.37 3,600.47% cash receipts for goods sales the decrease
business operation, net
of paid taxes in the current period
Mainly due to the increase in new
Net cash flow generated by purchases of wealth-management during
-459,136,704.20 682,424,067.27 -167.28%
investment the current period and the decrease in
redemption of due wealth-management.
Net cash flow generated by -58,479,245.83 -248,157,520.13 76.43% Mainly due to the dividends temporarily
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
financing not be distributed during the current
period but in the same periodlast year the
dividends paid out and the increased
short-term borrowings.
Mainly due to the decrease of net cash
Net increasing of cash and
-183,903,994.56 424,218,280.91 -143.35% flow from investment activities in the
cash equivalents
current period.
Transactional Financial Mainly due to the increase of financing
1,233,985,614.62 854,210,990.44 44.46%
Assets products holding at the end of the period.
Mainly due to the increase of holding
Note receivable 71,054,030.62 46,484,259.65 52.86%
unexpired trade acceptance bills.
Mainly due to the confirmation that Bank
Dividend receivable 122,983,614.70 27,827,292.60 341.95% of Hangzhou has announced that it has
not issued dividends.
Mainly due to the decrease in the balance
Other current assets 47,586,554.02 71,592,063.09 -33.53% of value-added tax to be deducted at the
end of the period.
It is mainly due to the continuous
investment in the new factory
Construction in process 1,077,342,567.61 799,410,358.84 34.77%
construction project of heavy industry in
the current period.
Other non-current Financial Mainly due to the sale of non-current
87,445,986.77 142,244,014.16 -38.52%
assets financial assets in the current period.
Mainly due to the fact that original
Short-term borrowing 197,700,000.00 97,840,187.21 102.06% long-term loan funds have changed into
short-term loans.
Mainly due to the fact that year-end
Payroll payable 68,418,984.73 96,205,949.57 -28.88% bonuses for the last period is issued in the
current period.
Mainly due to the increase of corporate
Tax payable 46,909,288.66 34,521,756.98 35.88% income tax payable at the end of the
period.
Mainly due to the fact that accrued and
Dividend payable 148,760,495.00 0.00
distributed dividends have not issued yet.
Mainly due to the repurchase of treasury
Treasury stock 73,364,395.79 0.00
stocks in the current period.
Mainly due to the impact of new
coronavirus, customer account period is
Credit impairment losses -69,862,741.38 6,225,948.82 -1,222.12%
extended and the accrued bad debts
increase.
Income from changes in fair Mainly due to changes in the fair value of
-597,375.82 -1,474,755.34 59.49%
value stocks obtained through debt repayment.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Mainly due to the increase of other
Other income 55,716,643.40 15,761,589.03 253.50% income from relocation compensation in
the current period.
Mainly due to the increase of supplier
Non-operating income 6,216,124.18 744,839.16 734.56% quality compensation and liquidated
damages in the current period.
It is mainly because the gross profit
Total profit 299,841,472.57 221,442,313.03 35.40% margin of sales increased by 2.51% year
on year.
It is mainly because the gross profit
Net profit 269,296,040.89 184,666,913.74 45.83% margin of sales increased by 2.51% year
on year.
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Component of Business Income
In RMB
This report period Same period last year Changed over last
Amount Proportion Amount Proportion year（％）
Total operating revenue 2,021,667,426.27 100% 1,920,181,703.03 100% 5.29%
On Industries
Boiler and power machine
1,860,877,423.66 92.05% 1,728,016,908.35 89.99% 7.69%
manufacture
Nonferrous metal alloy
78,346,262.00 3.88% 84,257,416.72 4.39% -7.02%
manufacture
Other 82,443,740.61 4.07% 107,907,377.96 5.62% -23.60%
On Products
Industrial steam turbine 1,445,493,683.04 71.50% 1,465,469,922.92 76.32% -1.36%
Casting products 78,346,262.00 3.88% 84,257,416.72 4.39% -7.02%
Auxiliary machinery 182,399,905.43 9.02% 78,122,117.16 4.07% 133.48%
Complete sets of waste
49,710,081.27 2.46% 49,244,940.88 2.56% 0.94%
heat power stations
Part 183,273,753.92 9.07% 135,179,927.39 7.04% 35.58%
Other 82,443,740.61 4.07% 107,907,377.96 5.62% -23.60%
District
Domestic 1,991,733,306.63 98.52% 1,711,280,921.02 89.12% 16.39%
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Overseas 29,934,119.64 1.48% 208,900,782.01 10.88% -85.67%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
In RMB
Increase/decr
Increase/decreas
Increase/decreas ease of gross
e of business
Gross e of revenue in profit rate
cost over the
Turnover Operation cost profit the same period over the same
same period of
rate(%) of the previous period of the
previous year
year(%) previous year
(%)
(%)
On Industries
Boiler and power machine
1,860,877,423.66 1,288,875,035.35 30.74% 7.69% 4.52% 2.10%
manufacture
On Products
Industrial steam turbine 1,445,493,683.04 1,015,618,424.48 29.74% -1.36% -3.04% 1.21%
District
Domestic 1,991,733,306.63 1,361,662,881.45 31.63% 16.39% 13.72% 1.61%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
Not applicable
Reasons for y-o-y relevant data with over 30% changes
1.The YOY increase in sales of auxiliary machinery products was mainly due to the increase in the number of
sales units of auxiliary machinery products in this period compared with the previous period;
2. The YOY increase in sales of spare parts was mainly due to the increase in the number of overhaulgas turbine
this year compared to the previous year, and the corresponding sales of gas turbine spare partsincreased;
3. The significant YOY decrease in overseas sales was mainly due to the decrease in export orders and the delayed
delivery due to the impact of the new coronavirus epidemic.
III.Non-core business analysis
In RMB
Sustainable
Amount Proportion in total profit Explanation of cause
(yes or no)
Mainly due to the investment income of
Investment income 118,388,068.47 39.48% wealth management products and
dividends of Hangzhou Bank this year
Fair value changes income -597,375.82 -0.20% It is mainly due to the change in fair value
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
of the shares held in the current period.
Impairment of assets 0.00%
It is mainly due to the contract
Non-operating income 6,216,124.18 2.07% compensation paid by the supplier
received in the current period.
Mainly due to the compensation paid to
Non-operating expenses 4,178,810.71 1.39%
customers.
Mainly due to the bad debt losses accrued
Credit impairment losses -69,862,741.38 -23.30%
in the current period.
Mainly due to the recognition of other
Other income 55,716,643.40 18.58% income in the relocation compensation
during the current period.
16
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
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
Change in
As a percentage of total As a percentage of total Reason for significant change
Amount Amount percentage(%)
assets(%) assets(%)
Monetary fund 1,531,835,132.63 11.61% 1,819,859,022.91 15.08% -3.47%
Accounts receivable 2,054,003,687.68 15.57% 2,060,368,351.36 17.08% -1.51%
Inventories 2,258,594,388.00 17.12% 2,222,781,933.26 18.42% -1.30%
Long-term equity
21,185,168.49 0.16% 10,261,439.29 0.09% 0.07%
investment
Fixed assets 692,659,233.28 5.25% 761,603,992.58 6.31% -1.06%
Construction in process 1,077,342,567.61 8.17% 659,588,447.28 5.47% 2.70%
Short-term-Borrowing 197,700,000.00 1.50% 97,500,000.00 0.81% 0.69%
Long-term borrowing 22,400,000.00 0.17% 22,600,000.00 0.19% -0.02%
2.Asset and Liabilities Measured by Fair Value
In RMB
Profit/loss on fair Impairment
Cumulative fair value
value changes in provided in Purchased in this Sold in this
Financial assets Opening balance changes charged to Other changes Closing balance
this reporting this Reporting reporting period reporting period
equity
period period
Financial assets
1.Transactional financial 854,210,990.44 -325,375.82 -1,153,605.18 1,913,998,000.00 1,533,898,000.00 1,233,985,614.62
17
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
assets（Excluding Derivative
financial assets）
4.Other Equity Instrument
2,490,376,886.96 -144,093,859.18 1,955,328,987.78 2,346,283,027.78
Investment
Subtotal 3,486,831,891.56 -140,254,211.62 1,951,103,789.34 1,913,998,000.00 1,592,861,050.77 3,667,714,629.17
5.Other non-current financial
142,244,014.16 4,165,023.38 -3,071,593.26 58,963,050.77 87,445,986.77
assets
6. Financing receivable 680,279,893.94 -16,849,595.09 663,430,298.85
Subtotal of financial assets 4,167,111,785.50 -140,254,211.62 1,951,103,789.34 - 1,913,998,000.00 1,592,861,050.77 -16,849,595.09 4,331,144,928.02
Total of the above 4,167,111,785.50 -140,254,211.62 1,951,103,789.34 - 1,913,998,000.00 1,592,861,050.77 -16,849,595.09 4,331,144,928.02
Financial Liabilities 0.00 0.00 0.00 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
Items End of Book value Reason
Monetary fund 69,831,476.27 Utilized for issuing bank acceptance bill and L/G.
Fixed assets 114,535,863.69 Utilized for pledging to obtain the bank loan and guaranteeing the investment loan for China
Development Funds
Invisible assets 82,929,877.00 Utilized for pledging to obtain the bank loan and guaranteeing the investment loan for China
Development Funds
Transactional Financial Assets 1,715,614.62 In the lock-up period
Dividend receivable 43,605,292.60 Utilized for guaranteeing the investment loan for China Development Funds
Other equity Instrument investment 389,040,400.00 Utilized for guaranteeing the investment loan for China Development Funds
Construction in process 619,207,141.72 Utilized for guaranteeing the investment loan for China Development Funds
Receivables financing 125,299,879.99 Utilized for issuing bank acceptance bill
18
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Total 1,446,165,545.89 --
V. Investment situation
1. General
Investments made in same period of last
Investments made in the reporting period +/- %
year
288,571,709.12 229,114,374.05 25.95%
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
In RMB
Accrued Reasons for
Accrued Actual Antici Realized not Reaching
Turbine
New plant General equipment Investment Amount Capital Project pated Income up the Planned Disclosure Disclosure
heavy Self-built Yes
date Index
project manufacturing up to the End of Source schedule incom to the End of Schedule and
industry
Reporting Period e Reporting Anticipated
Period Income
General equipment
Total Self-built Yes 255,849,977.65 1,078,891,174.28 Self fund 59.68% 0.00 0.00 No
manufacturing
Total -- -- -- 255,849,977.65 1,078,891,174.28 -- -- 0.00 0.00 -- -- --
4. Financial assets at fair value
√ Applicable □ Not applicable
In RMB
19
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Changes in fair Cumulative fair
Purchase amount in the Sale amount in the this Gain/loss of the Source of the
Category Initial investment cost value of the this value changes in Accounting items
this period period reporting period shares
period equity
Other 852,170,000.00 1,913,998,000.00 1,533,898,000.00 19,022,159.20 1,232,270,000.00 Self-fund
Debt
Stock 2,869,219.80 -325,375.82 -1,153,605.18 1,715,614.62
restructuting
Fund 16,000,000.00 -272,000.00 -7,776,000.00 8,224,000.00 Self-fund
Stock 390,954,040.00 -144,093,859.18 1,955,328,987.78 513,680,156.40 2,346,283,027.78 Self-fund
Total 1,261,993,259.80 -144,691,235.00 1,946,399,382.60 1,913,998,000.00 1,533,898,000.00 532,702,315.60 3,588,492,642.40
5.Investment of Financial Asset
（1）Securities investment
Mode of Purchase Sale Sauc
Stock accounti Book value balance Changes in fair Cumulative fair amount amount Book value balance e of
Security Security Initial investment Gain/loss of the Accountin
Abbreviatio ng at the beginning of value of the this value changes in in the in the at the end of the the
category code cost reporting period g items
n: measure the reporting period period equity this this reporting period shar
ment period period es
Other
Self
Domestic and Hangzhou equity
600926 390,954,040.00 FVM 2,490,376,886.96 -144,093,859.18 1,955,328,987.78 95,156,322.10 2,346,283,027.78 fund
foreign stocks Bank Instrument
s
investment
Financial Debt
Domestic and LUTIANHU assets instr
000912 2,869,219.80 FVM 2,040,990.44 -325,375.82 -1,153,605.18 -325,375.82 1,715,614.62
foreign stocks A available ume
for sale nt
Total 393,823,259.80 -- 2,492,417,877.40 -144,419,235.00 1,954,175,382.60 0.00 0.00 94,830,946.28 2,347,998,642.40 -- --
20
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Disclosure Date of Announcement on
Securities Investment Approved by the
Board of Directors
Disclosure Date of Announcement on
Securities Investment Approved by the
Shareholders Meeting(If any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
Not applicable
Ⅶ. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Leading
Company Name Registered capital Total assets Net assets Operating Income Operating profit Net Profit
type products and
21
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
services
Trade of
Zhejiang Steam Turbine Packaged
Subsidiaries packaged 51,000,000.00 345,503,014.02 121,683,766.83 88,950,190.73 21,176,212.04 18,180,159.42
Technology Development Co., Ltd.
equipment
Hangzhou Zhongneng Steam Turbine Manufacturi
Subsidiaries 92,500,000.00 1,253,476,418.68 276,031,305.09 463,773,371.54 29,311,510.78 26,262,274.43
Power Co., Ltd. ng
Hangzhou Steam Turbine Casting Co.,
Subsidiaries Casting 29,500,000.00 567,046,220.37 263,952,094.43 188,039,370.62 16,463,133.96 13,810,994.94
Ltd.
Hangzhou Steam Turbine Machinery & Manufacturi
Subsidiaries 30,000,000.00 293,129,755.38 135,403,747.47 131,998,141.54 30,806,884.79 26,242,201.36
Equipment Co., Ltd. ng
Hangzhou Steam Turbine Auxiliary Manufacturi
Subsidiaries 80,000,000.00 795,598,838.19 267,715,113.99 307,652,062.40 29,975,261.07 25,359,176.36
Machine Co., Ltd. ng
Zhejiang Turbine Import & Export Co., Commerce
Subsidiaries 20,000,000.00 184,075,324.41 54,609,421.18 73,541,913.79 244,596.66 461,496.10
Ltd. & trade
Hangzhou Steam Turbine Heavy Industry Manufacturi
Subsidiaries 1,000,000,000.00 964,011,228.25 950,860,157.38 886,935.44 665,201.58
Co., Ltd. ng
Subsidiaries obtained or disposed in the reporting period
Not applicable
VIII．Structured vehicle controlled by the Company
Not applicable
IX. Prediction of business performance for January -September 2020
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 2020
X. Risks facing the Company and countermeasures
1. Market risks
In view of distinct excess production capacity of domestic turbines, the market competition will be further intensified,
and the product distribution of the Company will be further impacted. Relying on technological innovation, the company
will actively highlight the core technology advantages, expand the marketing channels, improve the product quality,
enhance the end service capabilities, continuously increase the added-value of products and vigorously tap into the
potential demands to positively respond to the market and defuse the market risks.
2. Contract execution risk
As the market volatility becomes more intensified, there are more frequent changes in the contract during the
execution of the contract for the company, and delays and suspensions of the project schedule happen from time to time,
which will have a large impact on the internal realization process of production of the company, and meanwhile it also
increases the cost of the company’s contract performance and the contract risk. The company will further strengthen the
connection between production and sales, improve the speed and level of the company's response to the market, and
well control the contract execution risk.
3. Accounts receivable risk
With the increasing risk in the business downturns and investment projects in some customers of the downstream
industry, the company's receivables recovery has more risk, and the average age of accounts tends to increase, which
will have a large impact on the company's operating results. The company will implement the customer credit
management, strengthen the contract signing and perform the risk control, increase the assessment of accounts
receivable, and reduce the adverse impact of overdue receivables.
4. Exchange rate risk
The expansion of the company's international procurement and international sales business will cause the
company's international balance of payments to be affected by exchange rate fluctuations, and there is a certain risk of
exchange loss. With the increase in the two-way volatility of the RMB exchange rate, the uncertainty of foreign
exchange gains and losses has been increased. The company will refer to the exchange rate volatility cycle and adopt
appropriate exchange rate risk management tools to minimize exchange loss.
5. The company's profitability decline risk
Along with adjustments and changes of market structure, the company's product mix is altered which may leads to
possible business sales decline and product profitability fluctuation. The Company will strive to improve the internal
management, reduce the operating costs and increase the operational efficiency to resolve the risk of declining
profitability.
6. Overseas market risk
During the "Thirteenth Five-Year Plan" period, the company will vigorously implement the "go global" strategy,
further expand overseas target markets, and increase the company's share and influence in the international market.
However, at present, the overseas target market is affected by geopolitical conflicts, unpredictable changes of internal
political and economic situation and trade barrier policies in the region, thus there is great uncertainty in the
implementation of overseas market strategies. The company will increase market research efforts, actively demonstrate
countermeasures, and explore the development path of business localization.
7. Operating environment change risk
23
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
The plant will be comprehensively relocated in 2019 for the Company with inevitable large impact and influence on the
manufacturing. Although the company will formulate the plans of relocation safety, security and emergency
countermeasures to avoid various issues arising from the equipment disassembly, cargo transportation and storage,
turnover and so on, the possibility of various types of personnel injuries, loss of goods and instability incidents will still
exist in the relocation process. Therefore, the company will ensure the smooth and orderly implementation of all
aspects of comprehensive security, safety production and logistical support in the relocation and reconstruction process.
8. Impact of the epidemic
Affected by the epidemic, the company's overseas market orders decreased, the delivery of some imported supporting
parts was delayed, the company's project execution was affected to a certain extent. In combination with the
development and changes of the epidemic, the company continuously ADAPTS to and reduces the adverse effects
brought by the epidemic.
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
Meeting 2019 (Announcement No.
Annual
2019 Shareholders’ 2020-38) released by Securities Times,
Shareholders’ 72.59% June 5,2020 June 6,2020
general meeting Shanghai Securities Daily, Hong Kong
General Meeting
Commercial Daily, and
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 2020
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
The semi-annual report was not audited.
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. Lawsuit
Significant lawsuits or arbitrations
No such cases in the reporting period.
Other legal matters
Litigation
Litigation Date Index
Amount involved Forming of Litigation (arbitration)
Basic conditions of litigation (arbitration) of of
（Ten thousand the predicted (arbitration) judgement
(arbitration) judgement result disclos disclos
yuan ） debt progress execution
and influence ure ure
condition
See section 11, 14, 2
See section 11, 14, 2 for details 13,220.25 No Not applicable Not applicable
for details
IX. Doubt6s from media
□ Applicable √Not applicable
The Company had no issues about which media generally raised doubts in the reporting period.
X. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
XI. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
Not existent
25
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
XII. Equity incentive plans, employee stock ownership plans or other incentive measures for employees
□ Applicable √ Not applicable
No such cases in the reporting period.
26
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
XIII. Material related transactions
1. Related transactions in connection with daily operation
Whether
Principle of Amount of Trading limit over the Market price Index of
Subjects of the Ratio in Date of
pricing the Price of Way of of similar informatio
Related parties Relationship Type of trade related trade （ Ten approved（Ten approved disclosur
related trade payment trade n
transactions similar trades e
transactions available disclosure
thousand） thousand） limited or
not (Y/N)
Hangzhou Hangfa
Power Generating Affiliate of the Purchase of Market Bank Not August
Generators Fair and just 8,078.74 8,078.74 No 2020-50
Equipment Co., Group goods price 28,2020
Ltd. transfer applicable
Related
Hangzhou Steam
Turbine Affiliate of the transactions to freight, repairing Market Bank Not August
Fair and just 3,167.83 3,167.83 No 2020-50
Automobile Sales Group fee price 28,2020
Service Co., Ltd. procure goods / transfer applicable
services
Hangzhou Steam
Turbine Affiliate of the Market Bank Not August
Sale goods Steam Turbine Fair and just 3,624.88 3,624.88 No 2020-50
price 28,2020
Engineering Co., Group transfer applicable
Ltd.
Total -- -- 14,871.45 -- 14,871.45 -- -- -- --
Details of any sales return of a large amount No
Give the actual situation in the report period where a forecast had been
made for the total amounts of routine related-party transactions by type Not applicable
to occur in the current period(if any)
27
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Reason for any significant difference between the transaction price and
No applicable
the market reference price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
No such cases in the reporting period.
4. Credits and liabilities with related parties
No such cases in the reporting period.
No such cases in the reporting period.
5. Other material related transactions
XIV. 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.
28
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
XV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
No such cases in the reporting period.
(2) Contract
No any contract for the Company in the reporting period.
（3）Leasing
No such cases in the reporting period.
2.Significant guarantees
（1）Guarantees
In RMB 10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant Date of
Guarantee
disclosure happening Complete
Actual for
Name of the date/No. of Amount of (Date of implementat
mount of Guarantee type Guarantee term associated
Company the Guarantee signing ion
guarantee parties
guaranteed agreement or not
(Yes or no)
amount )
Hangzhou Two years from
Steam Turbine December the date of
October 22,2016 20,800 20,800 Mortgage No Yes
Power Group 28,2016 expiration of the
Co., Ltd principal debt
Total amount of outward
Total amount of outward guarantee approved in
0 guarantee actually incurred in 0
the report period（A1）
the report period（A2）
Total of external guarantee approved at Total balance of actual external
20,800 20,800
Period-end(A3) guarantee at Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
29
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implement for
date/No. of Guarantee
Company of (Date o mount of Guarantee term ation associated
the type
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Zhejiang
Steam Turbine Two years from
The joint
Packaged the date of
April 24,2020 5,000 0 liability No No
Technology expiration of the
guaranty
Development principal debt
Co., Ltd.
Hangzhou Two years from
The joint
Steam Turbine May 29, the date of
May 27,2020 2,000 1,870 liability No No
Casting Co., 2020 expiration of the
guaranty
Ltd. principal debt
Total of guarantee for
Total of actual guarantee for
subsidiaries approved in the 7,000 1870
subsidiaries in the period (B2)
period(B1)
Total of guarantee for
Total of actual guarantee for
subsidiaries approved at 7,000 1870
subsidiaries at period-end(B4)
period-end(B3)
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
Company of (Date o mount of Guarantee term ation associated
the type
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Hangzhou Three years from
Guoneng The joint
June 20, the date of
Steam Turbine June 25,2019 10,000 6,192.24 liability No No
2019 expiration of the
Engineering guaranty
Co., Ltd. principal debt
Hangzhou Two years from
Guoneng The joint
July 25, the date of
Steam Turbine July 25,2019 7,000 3,702.39 liability No No
2019 expiration of the
Engineering guaranty
Co., Ltd. principal debt
Total guarantee quota to the
Total amount of guarantee to the subsidiaries actually
subsidiaries approved in the 0 5,522.51
incurred in the reporting period (C2)
reporting period (C1)
30
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Total guarantee quota to the
Total balance of actual guarantee to the subsidiaries at the end
subsidiaries approved at the end 17,000 9,894.63
of the reporting period (C4)
of the reporting period (C3)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual guarantee in the Period
Total of guarantee in the Period（A1+B1+C1） 7,000 7,392.51
（A2+B2+C2）
Total of actual guarantee at Period-end
Total of guarantee at Period-end（A3+B3+C3） 44,800 32,564.63
A4+B4+C4）
The proportion of the total amount of actually guarantee in the net
5.01%
assets of the Company (that is A4+B4+C4）%
Including：
Amount of guarantee for shareholders, actual controller and its associated parties（D） 20,800
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 17,000
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the company exceed 50%（F） 0
Total guarantee Amount of the abovementioned guarantees（D+E+F） 37,800
Explanations about joint and several liability for repayment in respect of undue guarantee(if any) Not applicable
Explanation about external guarantee violating established procedure if any） Not applicable
31
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Description of the guarantee with complex method
Hangzhou Heavy Machinery Co., Ltd, which is the company's subsidiary, had made an application of special construction funds of 208 million 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)
（2）Illegal providing of external guarantees
No illegal providing of external guarantees in the report period.
3Situation of Entrusted Finance
Summary of entrusted finance during the reporting period
In RMB 10,000
Source Amount Unexpired balance Overdue amount
Type
Bank financing product Idle own funds 136,527 123,227 0
Trust financing product Idle own funds 2,000 0 0
Total 138,527 123,227 0
Specific Circumstance of Trust Investment which is large in single amount, low in security, poor in liquidity or unguaranteed in high risk
In RMB 10,000
Actual
Actual Whether
Referentia Prospe recovery of Provisio Summary of
Way of profit or or not Is there a
Name of Type of Capital l ctive profits and n for matters and
Type of Date of Date of Confirm loss for due commission
Trustees (or Trustees (or Amount Source Investment Annualize Yield losses impairm related
Production Beginning Expiry ing the process plan in the
Entrustees) Entrustees) Orientation d Yield (if during the ent (if query Index
Rewards reportin has been future
Rate any) reporting any) (if any)
g period followed
period
32
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Treasury bonds,
Bank
corporate bonds,
non-capital-pres
inter-bank
Bank of erving and Idle own January March Floating
Bank 6,000 lending, 3.00% 27.62 27.62 27.62 Yes No
China interest-saving funds 20,2020 16,2020 profit
medium-term
financial
notes, financing
products
bonds, etc.
Total 6,000 -- -- -- -- -- -- 27.62 27.62 -- -- -- --
Situation with the appearance of principals which cannot be recovered expectedly or other existing situations which may lead to impairment
Not applicable
33
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
4. Other significant contract
No other significant contracts for the Company in reporting period.
XVI.Social responsibilities
1.Major environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
No
Neither the company nor its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department. The company has formulated and perfected the environmental management
systems and control procedures for various types of waste water, waste gas, waste slag, and noise in accordance with
relevant environmental laws and regulations and relevant standards promulgated by the national and local governments.
The company has imported ISO14001 environmental management system since 2006 and the system has been operated
effectively for more than ten years. Currently, the company has adopted the clean production management and
launched the clean production audits, which not only reduces consumption and increases efficiency, but also reduces
the pressure and cost of end-of-pipe management. In terms of environmental greening, after years of meticulous
maintenance, the company has become a garden-style enterprise.
The company's environmental management system has been in operation for many years, and it has been strictly
abiding by the relevant laws and regulations of the state and the principle of continuous improvement. Each year, the
company formulates the annual environmental protection goals and formulates the environmental management plans.
The company also has a complete and effective management system for waste water, waste gas, waste residue and
noise and other waste management. Over the years, there has been no incident of environmental pollution and
emissions exceeding the standard.
2.Implementation of the social responsibility of precise poverty relief
(1) Precision poverty alleviation planning
The company participates in the “Lianxiangjiecun” helping and supporting activities in Hangzhou, from 2017 to
2021 for 5 years, with an annual funding of RMB 150,000 to assist Zitong Township in Chun’an County.
（4）Subsequent targeted poverty alleviation program
In the future, the company will follow up the assistance activities of "linking and connecting villages" as planned.
In 2021, we will continue to implement targeted poverty alleviation through cash funding to Zitong Town, Chun'an
County.
34
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
XVII.Other material events
1.The company's estimated amount of daily related transactions in 2019 was not approved in shareholders meeting
The "Proposal on the Estimated Amount of Daily Related Transactions of the Company in 2019" has been submitted to
the Company's 2019 Annual General Meeting of Shareholders for deliberation. The related party Hangzhou Steam
Turbine Power Group abstains from voting and the proposal failed to pass approval. The complete report is available as
Announcement 2020-38 with Securities Times, Shanghai Securities Daily, Hong Kong Commercial Daily and at
www.cninfo.com.cn dated June 6,2020.
XVIII. 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
479,824,80
I. Unlisted shares 479,824,800 63.64% 0 0 0 0 0 63.64%
0
479,824,80
1. Founder's stock 479,824,800 63.64% 0 0 0 0 0 63.64%
0
Including ： State-owned 479,824,80
479,824,800 63.64% 0 0 0 0 0 63.64%
0
shares
274,185,60
II.Non-restricted shares 274,185,600 36.36% 0 0 0 0 0 36.36%
0
2. Overseas listed foreign 274,185,60
274,185,600 36.36% 0 0 0 0 0 36.36%
shares 0
III. Total of capital shares 754,010,400 100.00% 0 0 0 0 0 754,010,40 100.00%
35
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
0
Causes of Change of shares
Not applicable
Approval of change of the shares
Not applicable
Ownership transfer of share changes
Not applicable
Progress on any share repurchase:
The company held the second 2019 extraordinary general meeting of shareholders on December 10, 2019, and
reviewed and passed the "Proposal on Repurchase of Company Shares". On February 18, 2020, the company
implemented share repurchase for the first time. As of June 30, 2020, through a special securities account repurchase,
the company has obtained 10,207,925 shares of the company based on a centralized auction transaction, accounting for
1.35% of the company's current total share capital, with the highest transaction price 8.52 HKD/share and the lowest
price of 7.22 HKD/share. The total transaction amount is HKD 81,081,099.84.
Progress on reducing the repurchased shares by means of centralized bidding:
Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
Not applicable
2. Change of shares with limited sales condition
Not applicable
II. Shareholders and shareholding
In Shares
Total number of preferred shareholders that had
Total number of common shareholders at
12,533 restored the voting right at the end of the reporting 0
the end of the reporting period
period
Particulars about shares held above 5% by shareholders or top ten shareholders
Shareholders Nature of Proporti Number of Changes in Amount of Amount of Number or
36
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
shareholder on of shares held at reporting restricted shares un-restricted share
shares period -end period held shares held pledged/froz
held（%） en
State
Amo
of
unt
share
Hangzhou Steam Turbine Power Group Co., State-owned
legal person 63.64% 479,824,800 0 479,824,800 0
Ltd.
VANGUARD TOTAL INTERNATIONAL Foreign legal
0.80% 6,036,036 481,600 0 6,036,036
STOCK INDEX FUND person
Domestic
Zhou Jie 0.58% 4,341,100 2,400 0 4,341,100
Natural person
VANGUARD EMERGING MARKETS Foreign legal
0.56% 4,198,304 -524,500 0 4,198,304
STOCK INDEX FUND person
State-owned
China Merchants Securities (HK)Co., Ltd. 0.49% 3,705,777 -130,500 0 3,705,777
legal person
GUOTAI JUNAN Foreign legal
0.49% 3,667,054 -1,280,618 0 3,667,054
SECURITIES(HONGKONG) LIMITED person
ISHARES CORE MSCI EMERGING Foreign legal
0.41% 3,054,577 -608,500 0 3,054,577
MARKETS ETF person
Foreign legal
NORGES BANK 0.33% 2,514,529 0 0 2,514,529
person
Domestic
Xia Zulin 0.31% 2,301,000 0 0 2,301,000
Natural person
Domestic
Gu Yang 0.20% 1,504,552 76,100 0 1,504,552
Natural person
Particulars about strategic investors or general corporations
becoming among the top 10 shareholders due to share Not applicable
placing
(1) Hangzhou Steam Turbine Power Group Co., Ltd. is the holder of state-shares of the
Company, all other shareholders’ are holders of domestic listed foreign shares (B
shares)
(2) There is no relationship between Hangzhou Steam Turbine Power Group Co., Ltd.
Explanation on associated relationship among the aforesaid
and other shareholders;
shareholders
(3) Hangzhou Steam Turbine Power Group Co., Ltd. is not an “action-in-concert” party
with any of other shareholders as described by the “Administration Rules of
Informational Disclosure about Change of Shareholding Statues of PLCs”.
Top 10 holders of shares without trading limited conditions
Amount of Category of shares
Name of the shareholder unconditional shares
Category of shares Amount
held at end of period
Foreign shares placed in
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 6,036,036 6,036,036
domestic exchange
Foreign shares placed in
Zhou Jie 4,341,100 4,341,100
domestic exchange
37
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Foreign shares placed in
VANGUARD EMERGING MARKETS STOCK INDEX FUND 4,198,304 4,198,304
domestic exchange
Foreign shares placed in
China Merchants Securities(HK)Co., Ltd. 3,705,777 3,705,777
domestic exchange
Foreign shares placed in
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 3,667,054 3,667,054
domestic exchange
Foreign shares placed in
ISHARES CORE MSCI EMERGING MARKETS ETF 3,054,577 3,054,577
domestic exchange
Foreign shares placed in
NORGES BANK 2,514,529 2,514,529
domestic exchange
Foreign shares placed in
Xia Zulin 2,301,000 2,301,000
domestic exchange
Foreign shares placed in
Gu Yang 1,504,552 1,504,552
domestic exchange
Foreign shares placed in
Wang Yihu 1,488,524 1,488,524
domestic exchange
1）It is unknown to the Company if there is any relationship among
the top 10 common share holders without restriction;
Explanation on associated relationship or consistent action among the top 10
(2) Hangzhou Steam Turbine Group Co., Ltd. is not an
shareholders of non-restricted negotiable shares and that between the top 10
action-in-concert” party with any of other shareholders as described
shareholders of non-restricted negotiable shares and top 10 shareholders
by the “Administration Rules of Informational Disclosure about
Change of Shareholding Statues of PLCs”.
Top ten ordinary shareholders conducting securities margin trading Not applicable
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.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
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.
38
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
VII. Situation of the Preferred Shares
The Company had no preferred shares in the reporting period
39
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
VIII Information about convertible corporate bonds
During the reporting period, the company did not have convertible corporate bonds.
IX. Information about Directors, Supervisors and Senior Executives
I. Change of shareholding of directors, supervisors and senior executives
Share held by directors, supervisors and senior executive of the Company had no changes, more details can be
seen in annual report 2019.
II. Changes in directors, supervisors and senior management staffs
□Applicable √Not applicable
No change has taken place in directors, supervisors and senior executives of the Company during the reporting period.
For the detail, refer to 2019 Annual Report.
X. 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
XI. Financial Report
I. Auditors’ Report
Whether the semi-annual financial report had been audited?
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
In RMB
Items June 30,2020 December 31,2019
40
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Current asset：
Monetary fund 1,531,835,132.63 1,756,320,237.50
Settlement provision
Outgoing call loan
Transactional financial assets 1,233,985,614.62 854,210,990.44
Derivative financial assets
Notes receivable 71,054,030.62 46,484,259.65
Account receivable 2,054,003,687.68 2,025,081,342.74
Financing of receivables 663,430,298.85 680,279,893.94
Prepayments 453,228,749.94 388,562,447.80
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable 142,054,905.86 45,520,789.89
Including：Interest receivable
Dividend receivable 122,983,614.70 27,827,292.60
Repurchasing of financial assets
Inventories 2,258,594,388.00 2,051,290,269.07
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 47,586,554.02 71,592,063.09
Total of current assets 8,455,773,362.22 7,919,342,294.12
Non-current assets：
Loans and payment on other’s behalf disbursed
Creditor's right investment
Other investment on bonds
Long-term receivable
Long term share equity investment 21,185,168.49 22,129,585.83
Other equity instruments investment 2,346,283,027.78 2,490,376,886.96
Other non-current financial assets 87,445,986.77 142,244,014.16
Property investment
Fixed assets 692,659,233.28 724,702,558.18
Construction in progress 1,077,342,567.61 799,410,358.84
Production physical assets
41
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Oil & gas assets
Use right assets
Intangible assets 272,005,020.25 275,140,367.22
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 237,689,936.17 226,769,514.65
Other non-current asset
Total of non-current assets 4,734,610,940.35 4,680,773,285.84
Total of assets 13,190,384,302.57 12,600,115,579.96
Current liabilities
Short-term loans 197,700,000.00 97,840,187.21
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 240,170,034.62 227,961,541.12
Account payable 1,334,931,698.36 1,030,408,716.74
Advance receipts 2,818,130,397.17
Contract liabilities 3,099,833,164.03
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 68,418,984.73 96,205,949.57
Tax payable 46,909,288.66 34,521,756.98
Other account payable 217,709,036.28 82,148,405.19
Including：Interest payable 93,150.68
Dividend payable 148,760,495.00
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 100,000.00 200,319.30
Other current liability
Total of current liability 5,205,772,206.68 4,387,417,273.28
42
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 22,400,000.00 22,435,762.23
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 682,651,713.17 730,460,508.59
Long-term remuneration payable to staff
Expected liabilities 32,202,504.57 32,202,504.57
Deferred income 50,522,553.07 51,713,417.61
Deferred income tax liability 294,641,275.32 316,910,472.07
Other non-current liabilities
Total non-current liabilities 1,082,418,046.13 1,153,722,665.07
Total of liability 6,288,190,252.81 5,541,139,938.35
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 152,973,219.65 152,973,219.65
Less：Shares in stock 73,364,395.79
Other comprehensive income 1,661,720,375.63 1,784,195,156.34
Special reserve 18,106,330.88 18,324,473.28
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Retained profit 3,359,027,734.25 3,276,880,091.53
Total of owner’s equity belong to the parent
6,493,586,472.40 6,607,496,148.58
company
Minority shareholders’ equity 408,607,577.36 451,479,493.03
Total of owners’ equity 6,902,194,049.76 7,058,975,641.61
Total of liabilities and owners’ equity 13,190,384,302.57 12,600,115,579.96
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
43
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
2.Parent Company Balance Sheet
In RMB
Items June 30,2020 December 31,2019
Current asset：
Monetary fund 935,342,495.72 1,017,072,165.81
Transactional financial assets 951,715,614.62 532,040,990.44
Derivative financial assets
Notes receivable 31,559,000.00 4,712,981.35
Account receivable 1,382,426,967.39 1,470,224,608.96
Financing of receivables 399,963,786.26 376,974,822.75
Prepayments 299,162,731.52 222,187,452.27
Other account receivable 127,042,515.71 31,067,688.80
Including：Interest receivable
Dividend receivable 122,983,614.70 27,827,292.60
Inventories 1,569,151,168.52 1,402,933,995.29
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 100,631.70 30,332,464.25
Total of current assets 5,696,464,911.44 5,087,547,169.92
Non-current assets：
Creditor's rights investment
Other creditor's rights investment
Long-term receivable
Long term share equity investment 897,034,001.41 897,978,418.75
Other equity instruments investment 2,346,283,027.78 2,490,376,886.96
Other non-current financial assets 64,547,865.74 119,345,893.13
Property investment
Fixed assets 388,908,028.03 413,089,308.63
Construction in progress 458,129,713.38 246,387,266.69
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 159,665,388.35 161,688,374.81
Development expenses
Goodwill
44
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Long-germ expenses to be amortized
Deferred income tax asset 183,734,008.93 174,060,251.09
Other non-current asset
Total of non-current assets 4,498,302,033.62 4,502,926,400.06
Total of assets 10,194,766,945.06 9,590,473,569.98
Current liabilities
Short-term loans 100,000,000.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable 59,855,000.00 10,000,000.00
Account payable 870,541,884.64 623,426,940.99
Advance receipts 1,908,382,258.12
Contract Liabilities 2,093,277,784.86
Employees’ wage payable 43,161,622.57 49,620,330.21
Tax payable 21,462,612.64 3,776,368.66
Other account payable 199,571,747.54 54,954,443.47
Including：Interest payable 93,150.68 0.00
Dividend payable 148,760,495.00 0.00
Liabilities held for sales
Non-current liability due within 1 year
Other current liability
Total of current liability 3,387,870,652.25 2,650,160,341.45
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 498,773,794.77 545,357,990.20
Long-term remuneration payable to staff
Expected liabilities 32,202,504.57 32,202,504.57
Deferred income 49,125,498.07 50,316,362.61
Deferred income tax liability 294,641,275.32 316,910,472.07
Other non-current liabilities
Total non-current liabilities 874,743,072.73 944,787,329.45
45
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Total of liability 4,262,613,724.98 3,594,947,670.90
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 138,953,250.09 138,953,250.09
Less：Shares in stock 73,364,395.79
Other comprehensive income 1,662,029,639.60 1,784,509,419.91
Special reserve 6,000,000.00 6,000,000.00
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 2,842,167,923.53 2,709,696,426.43
Total of owners’ equity 5,932,153,220.08 5,995,525,899.08
Total of liabilities and owners’ equity 10,194,766,945.06 9,590,473,569.98
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
3.Consolidated Income Statement
In RMB
Items The first half year of 2020 The first half year of 2019
I. Income from the key business 2,021,667,426.27 1,920,181,703.03
Incl：Business income 2,021,667,426.27 1,920,181,703.03
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,827,754,914.11 1,814,433,246.91
Incl：Business cost 1,387,814,297.42 1,366,404,401.26
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
46
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Business tax and surcharge 10,846,939.80 13,458,140.99
Sales expense 83,979,396.90 86,895,939.32
Administrative expense 261,099,800.18 235,168,325.98
R & D costs 103,228,915.93 116,760,942.52
Financial expenses -19,214,436.12 -4,254,503.16
Including：Interest expense 3,356,373.45 7,163,329.72
Interest income 14,883,294.02 13,686,150.29
Add: Other income 55,716,643.40 15,761,589.03
Investment gain（“-”for loss） 118,388,068.47 99,460,322.66
Incl: investment gains from affiliates
Financial assets measured at amortized cost cease to be
recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value -597,375.82 -1,474,755.34
Credit impairment loss -69,862,741.38 6,225,948.82
Impairment loss of assets 197,857.88
Assets disposal income 247,052.27 -1,183.02
III. Operational profit（“-”for loss） 297,804,159.10 225,918,236.15
Add ：Non-operational income 6,216,124.18 744,839.16
Less: Non-operating expense 4,178,810.71 5,220,762.28
IV. Total profit(“-”for loss) 299,841,472.57 221,442,313.03
Less：Income tax expenses 30,545,431.68 36,775,399.29
V. Net profit 269,296,040.89 184,666,913.74
(I) Classification by business continuity
1.Net continuing operating profit 269,296,040.89 184,666,913.74
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 230,908,137.72 160,325,133.00
2.Minority shareholders’ equity 38,387,903.17 24,341,780.74
VI. Net after-tax of other comprehensive income -122,468,038.54 215,462,868.76
Net of profit of other comprehensive income attributable to owners -122,474,780.71 215,149,629.90
of the parent company.
（I）Other comprehensive income items that will not be reclassified -122,479,780.31 214,917,350.34
47
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt o
r net assets
2.Other comprehensive income under the equity method investee ca
n not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-122,479,780.31 214,917,350.34
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into profit or l 4,999.60 232,279.56
oss.
1.Other comprehensive income under the equity method investee ca
n be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of
financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 4,999.60 232,279.56
7.Other
Net of profit of other comprehensive income attributable to Minorit
6,742.17 313,238.86
y shareholders’ equity
VII. Total comprehensive income 146,828,002.35 400,129,782.50
Total comprehensive income attributable to the owner of the parent
108,433,357.01 375,474,762.90
company
Total comprehensive income attributable minority shareholders 38,394,645.34 24,655,019.60
VIII. Earnings per share
（I）Basic earnings per share 0.31 0.21
(II)Diluted earnings per share 0.31 0.21
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
4. Income statement of the Parent Company
In RMB
48
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Items The first half year of 2020 The first half year of 2019
I. Income from the key business 1,148,712,572.64 1,201,433,732.23
Incl：Business cost 791,758,011.88 868,692,769.43
Business tax and surcharge 4,568,531.98 6,969,423.29
Sales expense 49,068,995.79 48,049,960.92
Administrative expense 194,237,408.24 159,919,647.14
R & D expense 56,990,534.25 72,044,163.87
Financial expenses -18,514,981.66 -7,258,639.20
Including：Interest expenses 628,468.93 3,304,641.54
Interest income 11,826,317.27 12,022,468.87
Add：Other income 52,463,135.32 5,455,874.12
Investment gain（“-”for loss） 230,963,096.02 152,548,740.20
Including: investment gains from affiliates
Financial assets measured at amortized cost cease to be recognized as
income
Net exposure hedging income
Changing income of fair value -597,375.82 -1,474,755.34
Credit impairment loss -61,473,384.29 1,997,481.94
Impairment loss of assets 0.00 197,857.88
Assets disposal income 247,056.74 0.00
II. Operational profit（“-”for loss） 292,206,600.13 211,741,605.58
Add ：Non-operational income 1,978,691.24 631,962.46
Less：Non -operational expenses 2,656,166.56 2,904,084.35
III. Total profit(“-”for loss) 291,529,124.81 209,469,483.69
Less：Income tax expenses 10,297,132.71 11,979,726.29
IV. Net profit 281,231,992.10 197,489,757.40
1.Net continuing operating profit 281,231,992.10 197,489,757.40
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -122,479,780.31 214,917,350.34
（I）Other comprehensive income items that will not be reclassified into
-122,479,780.31 214,917,350.34
gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net a
ssets
2.Other comprehensive income under the equity method investee can not
be reclassified into profit or loss.
49
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
3. Changes in the fair value of investments in other equity instruments -122,479,780.31 214,917,350.34
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit or los
s
1.Other comprehensive income under the equity method investee can be r
eclassified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of
financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
VI. Total comprehensive income 158,752,211.79 412,407,107.74
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2020 The first half year of 2019
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,728,815,809.43 1,518,810,866.20
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
50
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Net increase of client deposit and investment
Cash received from interest, commission charge and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 5,387,680.16 5,744,179.17
Other cash received from business operation 65,325,817.64 26,127,131.84
Sub-total of cash inflow 1,799,529,307.23 1,550,682,177.21
Cash paid for purchasing of merchandise and services 862,580,281.24 898,280,785.94
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee and commission
Cash paid to staffs or paid for staffs 418,895,651.22 379,575,581.35
Taxes paid 106,510,146.66 180,054,533.44
Other cash paid for business activities 84,578,536.08 102,111,872.85
Sub-total of cash outflow from business activities 1,472,564,615.20 1,560,022,773.58
Net cash generated from /used in operating activities 326,964,692.03 -9,340,596.37
II. Cash flow generated by investing
Cash received from investment retrieving 50,000,000.00
Cash received as investment gains 28,996,731.18 31,491,521.16
Net cash retrieved from disposal of fixed assets, intangible
17,924.42 24,493.28
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 1,533,898,000.00 2,050,778,164.28
Sub-total of cash inflow due to investment activities 1,612,912,655.60 2,082,294,178.72
Cash paid for construction of fixed assets, intangible assets and
158,051,359.80 228,526,111.45
other long-term assets
Cash paid as investment 13,440,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
51
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Other cash paid for investment activities 1,913,998,000.00 1,157,904,000.00
Sub-total of cash outflow due to investment activities 2,072,049,359.80 1,399,870,111.45
Net cash flow generated by investment -459,136,704.20 682,424,067.27
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor
shareholders
Cash received as loans 177,700,000.00 77,700,000.00
Other financing –related cash received
Sub-total of cash inflow from financing activities 177,700,000.00 77,700,000.00
Cash to repay debts 77,800,000.00 119,900,000.00
Cash paid as dividend, profit, or interests 82,634,116.70 203,426,853.46
Including: Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities 75,745,129.13 2,530,666.67
Sub-total of cash outflow due to financing activities 236,179,245.83 325,857,520.13
Net cash flow generated by financing -58,479,245.83 -248,157,520.13
IV. Influence of exchange rate alternation on cash and cash
6,747,263.44 -707,669.86
equivalents
V.Net increase of cash and cash equivalents -183,903,994.56 424,218,280.91
Add: balance of cash and cash equivalents at the beginning of
1,645,907,650.92 1,262,186,817.20
term
VI ..Balance of cash and cash equivalents at the end of term 1,462,003,656.36 1,686,405,098.11
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
6. Cash flow statement of the Parent Company
In RMB
Items The first half year of 2020 The first half year of 2019
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,009,834,279.72 771,903,511.87
Tax returned 4,056.54 0.00
Other cash received from business operation 49,456,848.95 13,952,892.56
Sub-total of cash inflow 1,059,295,185.21 785,856,404.43
Cash paid for purchasing of merchandise and services 502,853,109.86 469,234,191.52
52
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Cash paid to staffs or paid for staffs 285,820,623.95 246,224,211.20
Taxes paid 25,792,568.08 109,451,334.92
Other cash paid for business activities 26,431,269.07 43,083,180.34
Sub-total of cash outflow from business activities 840,897,570.96 867,992,917.98
Net cash generated from /used in operating activities 218,397,614.25 -82,136,513.55
II. Cash flow generated by investing
Cash received from investment retrieving 50,000,000.00 0.00
Cash received as investment gains 141,288,093.65 84,579,938.70
Net cash retrieved from disposal of fixed assets, intangible
0.00 0.00
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 625,000,000.00 1,236,201,629.52
Sub-total of cash inflow due to investment activities 816,288,093.65 1,320,781,568.22
Cash paid for construction of fixed assets, intangible assets and
70,383,582.14 102,779,580.07
other long-term assets
Cash paid as investment 0.00 369,212,943.59
Net cash received from subsidiaries and other operational units 0.00 0.00
Other cash paid for investment activities 1,045,000,000.00 302,000,000.00
Sub-total of cash outflow due to investment activities 1,115,383,582.14 773,992,523.66
Net cash flow generated by investment -299,095,488.49 546,789,044.56
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 100,000,000.00 0.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 100,000,000.00
Cash to repay debts
Cash paid as dividend, profit, or interests 535,318.25 154,217,773.32
Other cash paid for financing activities 73,364,395.79 0.00
Sub-total of cash outflow due to financing activities 73,899,714.04 154,217,773.32
Net cash flow generated by financing 26,100,285.96 -154,217,773.32
IV. Influence of exchange rate alternation on cash and cash
6,556,443.98 -976,692.26
equivalents
V.Net increase of cash and cash equivalents -48,041,144.30 309,458,065.43
Add: balance of cash and cash equivalents at the beginning of 967,501,994.48 842,347,117.83
53
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
term
VI ..Balance of cash and cash equivalents at the end of term 919,460,850.18 1,151,805,183.26
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
54
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Other Minor
Pref Common Total of owners’
Items Share Capital Less: Shares Comprehe Specialized Surplus Retained shareholders’
erre risk Other Subtotal equity
Capital Sustai Othe reserves in stock nsive reserve reserves profit equity
d provision
nable r Income
stoc
debt
k
754,010, 152,973,2 1,784,195, 621,112, 3,276,880,0 6,607,496,1
I.Balance at the end of last year 18,324,473.28 451,479,493.03 7,058,975,641.61
400.00 19.65 156.34 807.78 91.53 48.58
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current 754,010, 152,973,2 1,784,195, 621,112, 3,276,880,0 6,607,496,1
18,324,473.28 451,479,493.03 7,058,975,641.61
year 400.00 19.65 156.34 807.78 91.53 48.58
73,364,395. -122,474,7 82,147,642. -113,909,67
III.Changed in the current year -218,142.40 -42,871,915.67 -156,781,591.85
79 80.71 72 6.18
-122,474,7 230,908,137 108,433,357
（1）Total comprehensive income 38,394,645.34 146,828,002.35
80.71 .72 .01
（II）Investment or decreasing of capital 73,364,395. -73,364,395.
-73,364,395.79
by owners 79 79
1．Ordinary Shares invested by shareho 73,364,395. -73,364,395.
-73,364,395.79
lders 79 79
2 ． Holders of other equity instruments
invested capital
55
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
3．Amount of shares paid and accounted
as owners’ equity
4．Other
-148,760,49 -148,760,49
（III）Profit allotment -81,063,160.00 -229,823,655.00
5.00 5.00
1.Providing of surplus reserves
2.Providing of common risk provisions
3．Allotment to the owners (or -148,760,49 -148,760,49
-81,063,160.00 -229,823,655.00
shareholders) 5.00 5.00
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.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V). Special reserves -218,142.40 -218,142.40 -203,401.01 -421,543.41
1. Provided this year 838,616.00 838,616.00 19,739.28 858,355.28
-1,056,758.4
2．Used this term -1,056,758.40 -223,140.29 -1,279,898.69
0
（VI）Other
IV. Balance at the end of this term 754,010, 152,973,2 73,364,395. 1,661,720, 18,106,330.88 621,112, 3,359,027,7 6,493,586,4 408,607,577.36 6,902,194,049.76
56
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
400.00 19.65 79 375.63 807.78 34.25 72.40
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
Amount in last year
In RMB
The first half year of 2019
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Pref Minor
Items Less: Other Common Total of owners’
Share Capital Specialized Surplus Retained shareholders’
erre Sust Shares Comprehensiv risk Other Subtotal
Othe reserves equity
Capital reserve reserves profit equity
d aina in stock e Income provision
r
stoc ble
k debt
754,010, 151,684, 1,377,168,522 621,112, 3,082,544,107 6,007,540,929
I.Balance at the end of last year 21,020,671.47 416,989,449.71 6,424,530,378.87
400.00 419.65 .74 807.78 .52 .16
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current 754,010, 151,684, 1,377,168,522 621,112, 3,082,544,107 6,007,540,929
21,020,671.47 416,989,449.71 6,424,530,378.87
year 400.00 419.65 .74 807.78 .52 .16
215,149,629.9 223,888,645.2
III.Changed in the current year -784,037.71 9,523,053.01 -22,025,528.44 201,863,116.76
0 0
215,149,629.9 160,325,133.0 375,474,762.9
（1）Total comprehensive income 24,655,019.60 400,129,782.50
0 0 0
（II）Investment or decreasing of capital
by owners
1．Ordinary Shares invested by shareho
lders
57
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
2 ． Holders of other equity instruments
invested capital
3．Amount of shares paid and accounted
as owners’ equity
4．Other
-150,802,079. -150,802,079.
（III）Profit allotment -46,358,790.00 -197,160,869.99
99 99
1.Providing of surplus reserves
2.Providing of common risk provisions
3．Allotment to the owners (or -150,802,079. -150,802,079.
-46,358,790.00 -197,160,869.99
shareholders) 99 99
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.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V). Special reserves -784,037.71 -784,037.71 -321,758.04 -1,105,795.75
1. Provided this year 434,456.69 434,456.69 434,456.69
2．Used this term 1,218,494.40 1,218,494.40 321,758.04 1,540,252.44
58
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
（VI）Other
754,010, 151,684, 1,592,318,152 621,112, 3,092,067,160 6,231,429,574
IV. Balance at the end of this term 20,236,633.76 394,963,921.27 6,626,393,495.63
400.00 419.65 .64 807.78 .53 .36
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2020
Other Equity
instrument
Other
Items Pref Capital Less: Shares Specialized Total of owners’
Share capital Sust Comprehensive Surplus reserves Retained profit Other
erred reserves in stock reserve equity
aina Other Income
stoc
ble
k
debt
138,953,250 2,709,696,426.4
I.Balance at the end of last year 754,010,400.00 1,784,509,419.91 6,000,000.00 602,356,402.65 5,995,525,899.08
.09 3
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current 138,953,250 2,709,696,426.4
754,010,400.00 1,784,509,419.91 6,000,000.00 602,356,402.65 5,995,525,899.08
year .09 3
73,364,395.
III.Changed in the current year -122,479,780.31 132,471,497.10 -63,372,679.00
79
（I）Total comprehensive income -122,479,780.31 281,231,992.10 158,752,211.79
(II) Investment or decreasing of capital 73,364,395.
-73,364,395.79
by owners 79
1．Ordinary Shares invested by shareho 73,364,395.
-73,364,395.79
lders 79
59
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
2 ． Holders of other equity instruments
invested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other
（III）Profit allotment -148,760,495.00 -148,760,495.00
1.Providing of surplus reserves
2．Allotment to the owners (or
-148,760,495.00 -148,760,495.00
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.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V) Special reserves
1. Provided this year 700,061.12 700,061.12
2．Used this term 700,061.12 700,061.12
（VI）Other
60
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
138,953,250 73,364,395. 2,842,167,923.5
IV. Balance at the end of this term 754,010,400.00 1,662,029,639.60 6,000,000.00 602,356,402.65 5,932,153,220.08
.09 79 3
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
Amount in last year
In RMB
The first half year of 2019
Other Equity
instrument
Less: Other
Items Capital Specialized Retained
Share Capital Shares in Comprehensive Surplus reserves Other Total of owners’ equity
Preferr Sust reserves reserve profit
ed aina Other stock Income
stock ble
debt
138,953,250.0 2,602,026,967
I.Balance at the end of last year 754,010,400.00 1,377,784,111.74 7,609,505.31 602,356,402.65 5,482,740,637.35
9 .56
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of 138,953,250.0 2,602,026,967
754,010,400.00 1,377,784,111.74 7,609,505.31 602,356,402.65 5,482,740,637.35
current year 9 .56
III.Changed in the current year 214,917,350.34 -218,275.51 46,687,677.41 261,386,752.24
197,489,757.4
（I）Total comprehensive income 214,917,350.34 412,407,107.74
0
(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
accounted as owners’ equity
61
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
4．Other
-150,802,079.
（III）Profit allotment -150,802,079.99
99
1.Providing of surplus reserves
2．Allotment to the owners (or -150,802,079.
-150,802,079.99
shareholders) 99
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.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V) Special reserves -218,275.51 -218,275.51
1. Provided this year 434,456.69 434,456.69
2．Used this term 652,732.20 652,732.20
（VI）Other
138,953,250.0 2,648,714,644
IV. Balance at the end of this term 754,010,400.00 1,592,701,462.08 7,391,229.80 602,356,402.65 5,744,127,389.59
9 .97
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Chan
62
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
III．Basic Information of the Company
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 design, manufacturing, Main Business Activities: R&D, Production and Sales of Industrial Steam Turbine.
Main Products: Industrial Steam Turbine.
These Financial Statements are released upon approval at the 7th meeting of the 8th term of Board held on August 27,
2020.
19 subsidiaries including Zhejiang Steam Turbine Packaged Technologies Co., Ltd., Hangzhou Zhongneng Steam
Turbine Power Co., Ltd., Hangzhou Steam Turbine Casting Co.,Ltd. Hangzhou Steam Turbine Auxiliary Co., Ltd.,
Hangzhou Steam Turbine Machinery & Equipment Co., Ltd., Zhejiang Turbine Import & Export Co., Ltd., and
Hangzhou Steam Turbine Heavy Industry Co., Ltd., were consolidated to the Financial Statements. For details Note VI
of Financial statement notes
IV. Basis of compiling the finance report
(I) 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.
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
63
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
The Company uses Renminbi (RMB) as the standard currency for book keeping.
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
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. Joint venture arrangements classification and Co-operation accounting treatment
None
8. 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.
9. 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’
64
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
equity in the balance sheet.
10.Financial instruments
(1) Classification of financial assets and financial liabilities
Financial assets are divided into the following three categories upon initial recognition: 1) Financial assets
measured in amortized cost; 2) Financial assets measured at fair value, whose changes are included in other
comprehensive income; 3) Financial assets measured at fair value, whose changes are included in current profits and
losses.
Financial liabilities are divided into the following four categories upon initial recognition: 1) Financial liabilities
measured at fair value, whose changes are included in current profits and losses; 2) Financial liabilities resulting from
the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the
transferred financial assets; 3) Financial guarantee contracts that do not belong to the above 1) or 2), and loan
commitments that do not belong to the above 1) and lend at a lower than market interest rate; 4) Financial liabilities
measured in amortized cost.
(2) Recognition basis, measurement methods and conditions for derecognition of financial assets and financial
liabilities
However, if the accounts receivable initially recognized by the company do not contain significant financing
components or the company does not consider the financing components in the contract for less than one year, the
initial measurement shall be made according to the transaction price.
2) Subsequent measurement methods of financial assets
①Financial assets measured at amortized cost
The actual interest rate method is adopted for subsequent measurement according to amortized cost. Gains or
losses arising from financial assets measured in amortized cost that are not part of any hedging relationship are
included in current profits and losses when derecognition, reclassification, amortization according to the effective
interest rate method, or impairment recognition.
② Debt instruments investment measured at fair value, whose changes are included in other comprehensive
income
Fair value is adopted for subsequent measurement. Interest, impairment losses or gains and exchange gains and
losses calculated by the effective interest rate method are included in the current profits and losses, while other gains or
losses are included in other comprehensive income. Upon termination of recognition, the accumulated gains or losses
previously included in other comprehensive income shall be transferred out of other comprehensive income and
included in current profits and losses.
③ Equity instrument investments measured at fair value, whose changes are included in other comprehensive
income
Fair value is adopted for subsequent measurement. Dividends received (except those that belong to the part of
investment cost recovery) are included in current profits and losses, and other gains or losses are included in other
comprehensive income. Upon termination of recognition, the accumulated gains or losses previously included in other
comprehensive income shall be transferred out of other comprehensive income and included in retained income.
④ Financial assets measured at fair value and changes included in current profits and losses
The fair value is adopted for subsequent measurement, and the resulting gains or losses (including interest and
dividend income) are included in the current profits and losses unless the financial asset is part of the hedging
relationship.
3) Subsequent measurement methods of financial liabilities
① Financial liabilities measured at fair value, whose changes are included in current profits and losses
65
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Such financial liabilities include transactional financial liabilities (including derivatives of financial liabilities) and
financial liabilities designated to be measured at fair value, whose changes are included in current profits and losses.
Such financial liabilities are subsequently measured at fair value. Changes in the fair value of financial liabilities
designated to be measured at fair value, whose changes are included in the profits and losses of the current period due
to changes in the company's own credit risk are included in other comprehensive income, unless such treatment will
cause or expand accounting mismatch in profits and losses. Other gains or losses arising from such financial liabilities
(including interest expenses and changes in fair value except for changes in the company's own credit risk) are included
in the current profits and losses unless the financial liabilities are part of the hedging relationship. Upon termination of
recognition, the accumulated gains or losses previously included in other comprehensive income shall be transferred
out of other comprehensive income and included in retained income.
② Financial liabilities resulting from the transfer of financial assets that do not meet the conditions for
derecognition or continue to be involved in the transferred financial assets
B. Financial assets have been transferred, and the transfer meets the provisions of the Accounting Standards for
Business Enterprises No.23-Transfer of Financial Assets on the derecognition of financial assets.
② When the current obligation of a financial liability (or part thereof) has been discharged, the financial liability
(or part thereof) shall be derecognized accordingly.
(3) Recognition basis and measurement method of financial asset transfer
If the company has transferred almost all risks and rewards in the ownership of financial assets, it shall terminate
the recognition of the financial assets and separately recognize the rights and obligations arising from or retained in the
transfer as assets or liabilities; If almost all risks and rewards on the ownership of financial assets are retained, the
transferred financial assets shall continue to be recognized. If the company neither transfers nor retains almost all risks
and rewards in the ownership of the financial asset, the following situations shall be handled respectively: 1) If the
control over the financial asset is not retained, the recognition of the financial asset shall be terminated, and the rights
and obligations generated or retained in the transfer shall be separately recognized as assets or liabilities; 2) If the
control over the financial assets is retained, the relevant financial assets shall be recognized according to the extent of
continuing involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the
following two amounts shall be included in the current profits and losses: 1) The book value of the transferred financial
assets on the derecognition date; 2) The sum of the consideration received for the transfer of financial assets and the
amount of the corresponding derecognized portion of the accumulated amount of changes in fair value originally
directly included in other comprehensive income (the financial assets involved in the transfer are debt instrument
investments measured at fair value, whose changes are included in other comprehensive income). If a part of the
financial asset is transferred and the transferred part meets the conditions for derecognition as a whole, the book value
of the financial asset before transfer shall be apportioned between the derecognition part and the continuing recognition
part according to their respective relative fair values on the transfer date, and the difference between the following two
amounts shall be included in the current profits and losses: 1) The book value of the derecognition part; 2) The sum of
the consideration of the derecognized portion and the amount of the corresponding derecognized portion of the
cumulative amount of changes in fair value originally directly included in other comprehensive income (financial
assets involved in transfer are debt instrument investments measured at fair value, whose changes are included in other
comprehensive income).
(5) Impairment of financial instruments
1) Impairment measurement and accounting treatment of financial instruments
On the basis of expected credit losses, the company carries out impairment treatment on financial assets measured
at amortized cost, debt instrument investments measured at fair value whose changes are included in other
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
comprehensive income, lease receivables, loan commitments other than financial liabilities classified as financial
liabilities measured at fair value, whose changes are included in current profits and losses, financial liabilities not
measured at fair value, whose changes are included in current profits and losses, or financial guarantee contracts that
are not financial asset transfers which do not meet the conditions for derecognition or which continue to be involved in
financial liabilities formed by transferred financial assets, and recognize loss provisions.
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by the
risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted according to the
original real interest rate and the expected cash flow of all contracts receivable according to the contract, that is, the
present value of all cash shortages. Among them, the Company discounts the financial assets purchased or originated
with credit impairment at the actual interest rate adjusted by credit.
For financial assets purchased or originated that have suffered credit impairment, the company will only recognize
the accumulated changes in expected credit losses during the entire duration since initial recognition as loss reserves on
the balance sheet date.
For accounts receivable that do not contain significant financing components or that the company does not
consider financing components in contracts of not more than one year, the company uses simplified measurement
methods to measure the loss reserve according to the expected credit loss amount equivalent to the entire duration.
For lease receivables and receivables containing significant financing components, the company uses simplified
measurement methods to measure the loss reserve according to the expected credit loss amount equivalent to the entire
duration.
For financial assets other than the above measurement methods, the company evaluates whether its credit risk has
increased significantly since the initial recognition on each balance sheet date. If the credit risk has increased
significantly since the initial recognition, the company shall measure the loss reserve according to the amount of
expected credit loss during the whole duration. If the credit risk has not increased significantly since the initial
recognition, the company shall measure the loss reserve according to the expected credit loss amount of the financial
instrument within the next 12 months.
The company uses the available reasonable and reliable information, including forward-looking information, to
determine whether the credit risk of financial instruments has increased significantly since the initial recognition by
comparing the risk of default on the balance sheet date with the risk of default on the initial recognition date.
The company evaluates expected credit risks and measures expected credit losses on the basis of individual
financial instruments or combinations of financial instruments. When based on the combination of financial
instruments, the company divides financial instruments into different combinations based on common risk
characteristics.
For financial assets measured in amortized cost, the loss reserve shall be offset against the book value of the
financial assets listed in the balance sheet; For creditor's rights investments measured at fair value, whose changes are
included in other comprehensive income, the company recognizes its loss reserve in other comprehensive income,
which does not offset the book value of the financial asset.
(2) Financial instruments for assessing expected credit risks and measuring expected credit losses by combination
Items Basis for determining combination Methods of measuring expected credit loss
Other receivables-associated Taking related parties within the scope Refer to the historical credit loss experience, combine the
transaction combinations within the of consolidated financial statements as current situation with the forecast of future economic
scope of consolidated financial credit risk characteristics, other situation, and calculate the expected credit loss through
statements receivables are combined default risk exposure and the expected credit loss rate within
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the next 12 months or the whole duration.
Taking aging as the credit risk Refer to the historical credit loss experience, combine the
characteristic, combine other current situation with the forecast of future economic
Other receivables-aging combination receivables except the related party situation, and calculate the expected credit loss through
receivables within the scope of the default risk exposure and the expected credit loss rate within
consolidated financial statements the next 12 months or the whole duration.
(3) Expected credit risks and measuring expected credit losses by combination
1) Methods of specific combination and measurement of expected credit loss
Items Basis for determining combination Methods of measuring expected credit loss
Bank acceptance bills receivable Refer to the historical credit loss experience, combine the
current situation and the forecast of the future economic
Bill type situation, compile a comparison table between the aging of
Commercial acceptance bills
accounts receivable and the expected credit loss rate during
receivable
the whole duration, and calculate the expected credit loss.
Refer to the historical credit loss experience, combine the
Accounts receivable-associated Taking related parties within the scope of
current situation and the forecast of the future economic
transaction combinations within consolidated financial statements as credit
situation, compile a comparison table between the aging of
the scope of consolidated risk characteristics, receivables are
accounts receivable and the expected credit loss rate during
financial statements combined
the whole duration, and calculate the expected credit loss.
Refer to the historical credit loss experience, combine the
Taking aging as the credit risk characteristic,
Accounts receivable-aging current situation and the forecast of the future economic
combine receivables except the related party
situation, compile a comparison table between the aging of
combination receivables within the scope of the
accounts receivable and the expected credit loss rate during
consolidated financial statements
the whole duration, and calculate the expected credit loss.
2) Account receivable——Table of Aging of Aging Combination and Expected Credit Loss Rate for the Whole
Duration
Receivables
Aging
Expected credit loss rate (%)
Within 1 year (inclusive, the same below) 5.00
1-2 years 10.00
2-3 years 30.00
3-4 years 60.00
4-5 years 80.00
Over 5 years 100.00
(6) Setoff of Financial Assets and Liabilities
The financial assets and liabilities of the company are shown separately in the balance sheet which do not offset
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
each other. However, when the following conditions are met at the same time, the net amount after mutual offset is
shown on the balance sheet. 1. The company has the legal right to offset the recognized amount, and this legal right is
currently enforceable. 2. The company plans to settle the financial assets or liquidate the financial liabilities at the same
time for netting settlement.
If the transfer of financial assets does not meet the conditions for the termination of recognition, the company
shall not set off the transferred financial assets and related liabilities.
11.Notes receivable
For details, please refer to Section XI(5)-10 Financial instrument of this report.
12.Account receivable
For details, please refer to Section XI(5)-10 Financial instrument of this report.
13. Financing of receivables
For details, please refer to Section XI(5)-10 Financial instrument of this report.
14.Other account receivable
Methods for determining expected credit losses of other receivables and accounting treatment
For details, please refer to Section XI(5)-10 Financial instrument of this report.
15..Inventories
(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
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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Basis of amortizing: one-off
2.Packaging materials
Basis of amortizing: one-off
16.Contract assets
17.Constract cost
18.Held-for-sale asset
None
19.Creditor's rights investment
None
20.Other Creditor's rights investment
None
21.Long-term account receivable
None
22. Long-term equity investment
1. Recognition of common control and substantial influence
According to the contract, if the invested enterprise’s main finance and operation policy need to be agreed by the other
investing party, the investment is common control investment; if only have participating decision rights in invested
enterprise’s main finance and operation policy but have no own control or common control with other investing part,
the investment is investment with substantial influence.
2. Recognition of initial investment costs
(1) For the long-term equity investment formed by corporate merger under common control, if it is the long-term
equity investment obtained from the corporate merger by paying cash, transferring non-cash asset, bear liability and
issuing equity securities, the share of book value of owner's equity of the merged party on the merger date shall be
taken as the initial investment cost. The asset reserve is adjusted according to the difference between the initial
investment cost of long-term equity investment and the book value of paid combined consideration or issued securities;
if the capital is not enough for deduction, the remain earnings are adjusted.
Recognition of “one-off” trade when long-term equity investment is composed by merger of entities under common
control by multiple steps.
Transactions under an “one-off” trade are accounted as a common trade of ownership.
Transactions which are not “one-off” trades are recognized for their initial investment cost basing on the share of book
value of net asset in the consolidated financial statement of the entities acquired. Balance between the initial
investment cost and the book value of the long-term equity investment before merger and the premium paid for the new
shares after merger, is adjusted to capital reserves; when the capital reserve is not enough to offset, retained profit shall
be adjusted thereof.
(2) For the long-term equity investments formed by merger of enterprises under different control, the initial investment
cost is recognized by the fair value of combined consideration on purchasing day and related expenses.
Long-term equity investment formed by acquisition of entities under different control by trade in multiple stages are
accounted separately in the financial statements and consolidated financial statements.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
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.7 – 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
The difference between the book value and the actual purchase price of the disposed equity is recorded into the current
profit and loss. With regard to the remaining equity, which still has a significant impact on the invested entity or
exercises joint control with other parties, it shall be converted to equity accounting; if the entity under investment can
no longer be controlled, jointly controlled or significantly affected, it shall be recognized as a financial asset,
Accounting shall be carried out in accordance with the relevant provisions of Accounting Standards for Enterprises No.
22-recognition and Measurement of Financial Instruments.
(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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
23. Investment property
The measurement mode of investment property
Not applicable
24. 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
Straight average on
Transportation equipment 4-8 4 24-12
period
Straight average on
Office equipment 5 4 19.2
period
（3）Recognition basis, valuation and depreciation method for financing leased fixed assets
None
25. 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.
26. 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
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
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.
27. Biological assets
None
28. Oil-gas assets
None
29. Assets of the right to use
None
30. 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 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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
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.
31. 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.
32. Long-term amortizable expenses
None
33.Constract Liabilities
Before transferring goods to the customer, if the customer has already paid the contract consideration or the
company has obtained the right to unconditionally receive the contract consideration, the company shall, at the earlier
of the time between the actual payment by the customer and the payment due, make the paid or receivable sums of
money the contract liabilities.
34. Employees’ wage
1. Employee compensation comprises short-term compensation, post-service benefit, resignation benefit and other
long-term employee benefits.
2. Accounting of short-term wages
In the fiscal period when an employee is providing services, short-term wages actually occurred is recognized as
liability, and recorded into current gain/loss account or cost of related asset.
3.Accounting of 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.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
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.
35. Lease liabilities
None
36. 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.
37.Share-based Payment
None
38 . Other financial instruments such as preferred shares and perpetual capital securities
None
39.Revenues
1. Recognizing of revenue
Since the starting date of the contract, the company shall evaluate the contract, identifies each individual
performance obligation contained in, and determines whether each individual performance obligation is performed
within a certain period of time or at a certain point of time.
The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met, otherwise, it is defined as fulfilled at a certain point in time: (1) The customer obtains and consumes
the economic benefits brought by the company's performance while the company performs the contract; 2) The
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
customer can control the goods under manufacturing or services during the company's performance; (3) The goods or
services produced during the company's performance have irreplaceable uses, and the company has the right to
accumulate for the completed performances during the entire contract period.
For obligations performed within a certain period of time, the company recognizes revenue in accordance with the
performance progress in that period. If the performance progress cannot be reasonably determined, and the cost
incurred is expected to be compensated, the revenue shall be recognized according to the amount of the cost incurred
until the performance progress can be reasonably determined. For obligations performed at a certain point in time,
revenue shall be recognized at the point when the customer obtains control of the relevant goods or services. When
judging whether the customer has obtained control of the product, the company shall consider the following points: (1)
The company has the current right to receive payment for the product, that is, the customer has the current payment
obligation for the product; (2) The company has transferred the legal ownership of the product to the customer, that is,
the customer has the legal ownership of the product; (3) The company has transferred the physical product to the
customer, that is, the customer has physically taken possession of the product; (4) The company has transferred the
main risks and rewards on the ownership of the product to the customer, that is, the customer has obtained the main
risks and rewards on the ownership of the product; (5) the customer has accepted the product; (6) other signs that the
customer has obtained control of the product.
2. Principle of income measurement
(1) The company shall measure revenue based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive due
to the transfer of goods or services to customers, while does not include payments received on behalf of third parties
and payments expected to be returned to customers.
(2) If there is variable consideration in the contract, the company shall determine its best estimate according to the
expected value or the most likely amount, but the transaction price including the variable consideration shall not
exceed the accumulated amount that, if relevant uncertainty is eliminated, will most likely have no significant reversal.
(3) If there is any significant financing component in the contract, the company shall determine the transaction
price based on the amount payable in cash when the customer assumes control of the goods or services. The difference
between transaction price and contract consideration shall be amortized through effective interest method during the
contract period.
(4) If the contract contains two or more performance obligations, the company shall, on date of the contract,
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.
3. Specific methods of revenue recognition
The company's selling of steam turbines, gas turbine or spare parts shall belong to the performance of obligation at
a certain point in time. Recognition of domestic product revenue shall meet the following conditions: The company has
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
delivered the product to the customer in accordance with the contract and the customer has accepted the product. the
payment has been recovered or the receipt of payment has been obtained and the relevant economic benefits are likely
to flow in, the main risk and remuneration on ownership of the product has been transferred, and the legal ownership of
the goods has been transferred. Recognition of export product revenue shall meet the following conditions: The
company has declared the product in accordance with the contract, obtained the bill of lading, recovered the payment
or obtained the receipt of payment and related economic benefits are likely to flow in, the main risks and rewards on
the ownership of the product have been transferred, and the legal ownership of the goods has been transferred.
40. Government subsidy
1. Government subsidies are recognized while they meet the following conditions at the same time: (1) the Company can
meet the conditions attached to the government subsidies; (2) the Company can receive government subsidies. Where
government subsidies are monetary assets, they shall be measured by the amount received or receivable. Where
government subsidies are non-monetary assets, they shall be measured by the fair value; if the fair value cannot be
reliably obtained, they shall be measured by the nominal amount.
2. Recognition basis and accounting of asset-related government subsidy
Government subsidies used for formation of long-term assets through purchase, construction or any other method as
stipulated by government documents fall into the category of asset-related government subsidies. If government
subsidies are not defined in the government documents, a judgment shall be made on the ground of essential conditions
for obtaining the subsidies, among which, ones with an essential condition of formation of long-term assets through
purchase, construction or any other method shall be asset-related government subsidies. For government subsidies
related to assets, the book value of the relevant assets is deducted or the deferred income is recognized. Where such
subsidies are recognized as deferred income, the relevant assets shall, within the useful life of the relevant assets, be
reasonably recognized, The method of the system shall be recorded into profit and loss by stages. The government
subsidy measured according to the nominal amount shall be directly accounted for in the profits and losses of the
current period. Where the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life,
Transfer the undistributed balance of deferred income to the current profit or loss of asset disposal.
3. Recognition basis and accounting of income-related government subsidy
A government subsidy other than an asset-related government subsidy is divided into profit-related government
subsidies. It is difficult to distinguish between asset-related and revenue-related government subsidies that include both
asset-related and revenue-related components. Overall classification as government subvention related to income. 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.
4. Government subsidies related to routine business activities of the Company shall be included into other incomes or
offset relevant costs and expenses by nature of economic business. Government subsidies irrelevant to routine activities
of the Company shall be included into the non-operating receipt and disbursement.
5. Accounting treatment method for interest subsidies for policy-based preferential loans
(1) If the finance allocates interest subsidy funds to a lending banks that serves a loan to the Company at a policy-based
preferential rate, the actual debit amount received shall be seen as the entry value of loan and relevant loan costs shall be
worked out pursuant to the loan principal and the policy-based preferential rate.
(2) If the finance directly allocates interest subsidy funds to the Company, corresponding interest subsidies shall
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
offset relevant loan costs.
41. 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.
42. Lease
(1)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.
(2) Accounting Method for Financing Leases
None
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
43. Other significant accounting policies and estimates
Work safety costs
The Company withdraws and includes work safety costs into relevant product costs or current profits and loss and the
subject of "special reserve" as per Measures for Management of Enterprise Withdrawal and Use of Work Safety Costs
(Cai Qi [2012] No.16) jointly promulgated by Ministry of Finance and State Administration of Work Safety. As work
safety costs withdrawn are used, ones attributable to the cost disbursement shall directly offset special reserve. To form
fixed assets, the disbursement incurred for inclusion into the subject of "construction in progress" shall be recognized as
fixed assets when safety projects are completed and available for use as expected; meanwhile, costs for forming fixed
assets shall offset special reserve, cumulative depreciation in the corresponding amount shall be recognized and
depreciation shall no longer be withdrawn for the fixed assets in the following period.
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
Contents and causes of changes in accounting policies Approval procedure Remarks
In July 2017, the Ministry of Finance issued the "Notice on the Amendment and
Issuance of the 'Accounting Standards for Business Enterprises No. 14-Revenue' (Cai
Kuai [2017] No. 22)" targeting companies that are listed both at home and abroad or
those are listed abroad and adopt international finance reporting standards or
corporate accounting standards to prepare financial statements, effected on January 1,
2018. For other domestic listed companies, effected on January 1, 2020. The new The fourth resolution of the
revenue standard incorporates the original standards on revenue and construction eighth meeting of board of
contract into a unified model. Replace the transfer of control rights to the transfer of directors
risk rewards as the time of revenue recognition. Identify individual performance
obligations contained in the contract and recognize revenue at each performance.
Provide clearer guidance for the accounting treatment of contracts that include
multiple transaction arrangements. Provide clear rules for revenue recognition and
measurement of certain specific transactions (or events).
1. Changes in important accounting policies
(1) Changes in accounting policies caused from amendment of corporate accounting standards
1) The company will, since January 1, 2020, implement the "Accounting Standards for Business Enterprises No.
14-Revenue" revised by the Ministry of Finance (hereinafter referred to as the new revenue standards). In accordance
with relevant regulations for convergence of the old and new standards, the comparable period information is not
adjusted, and the cumulative impact from new standards on the first implementation date is retrospectively adjusted to
the amount of retained earnings and other related items in the financial statements at the beginning of the reporting
79
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
period.
① The main impact of the implementation of the new financial instrument standards on the company's financial
statements on January 1, 2020 is as follows:
Items Balance sheet
December 31,2019 Impact of the adjustment of new January 1,2020
financial instrument
Advance payment 2,818,130,397.17 -2,818,130,397.17
Contract liabilities 2,818,130,397.17 2,818,130,397.17
(2) Change of main accounting estimations
Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases from year 2020
Applicable
Whether need to adjust the balance sheet account at the beginning of the year
Consolidated balance sheet
In RMB
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Current asset：
Monetary fund 1,756,320,237.50 1,756,320,237.50
Settlement provision
Outgoing call loan
Transactional financial assets 854,210,990.44 854,210,990.44
Derivative financial assets
Notes receivable 46,484,259.65 46,484,259.65
Account receivable 2,025,081,342.74 2,025,081,342.74
Financing of receivables 680,279,893.94 680,279,893.94
Prepayments 388,562,447.80 388,562,447.80
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
80
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Other account receivable 45,520,789.89 45,520,789.89
Including：Interest receivable
Dividend receivable 27,827,292.60 27,827,292.60
Repurchasing of financial assets
Inventories 2,051,290,269.07 2,051,290,269.07
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 71,592,063.09 71,592,063.09
Total of current assets 7,919,342,294.12 7,919,342,294.12
Non-current assets
Loans and payment on other’s behalf
disbursed
Creditor' rights investment
Other creditor's rights investment
Long-term receivable
Long term share equity investment 22,129,585.83 22,129,585.83
Other equity instruments investment 2,490,376,886.96 2,490,376,886.96
Other non-current financial assets 142,244,014.16 142,244,014.16
Property investment
Fixed assets 724,702,558.18 724,702,558.18
Construction in progress 799,410,358.84 799,410,358.84
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 275,140,367.22 275,140,367.22
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 226,769,514.65 226,769,514.65
Other non-current asset
Total of non-current assets 4,680,773,285.84 4,680,773,285.84
Total of assets 12,600,115,579.96 12,600,115,579.96
Current liabilities
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Short-term loans 97,840,187.21 97,840,187.21
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 227,961,541.12 227,961,541.12
Account payable 1,030,408,716.74 1,030,408,716.74
Advance receipts 2,818,130,397.17 -2,818,130,397.17
Contract liabilities 2,818,130,397.17 2,818,130,397.17
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 96,205,949.57 96,205,949.57
Tax payable 34,521,756.98 34,521,756.98
Other account payable 82,148,405.19 82,148,405.19
Including：Interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 200,319.30 200,319.30
Other current liability
Total of current liability 4,387,417,273.28 4,387,417,273.28
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 22,435,762.23 22,435,762.23
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 730,460,508.59 730,460,508.59
Long-term remuneration payable to staff
Expected liabilities 32,202,504.57 32,202,504.57
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Deferred income 51,713,417.61 51,713,417.61
Deferred income tax liability 316,910,472.07 316,910,472.07
Other non-current liabilities
Total non-current liabilities 1,153,722,665.07 1,153,722,665.07
Total of liability 5,541,139,938.35 5,541,139,938.35
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 152,973,219.65 152,973,219.65
Less：Shares in stock
Other comprehensive income 1,784,195,156.34 1,784,195,156.34
Special reserve 18,324,473.28 18,324,473.28
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Retained profit 3,276,880,091.53 3,276,880,091.53
Total of owner’s equity belong to the parent
6,607,496,148.58 6,607,496,148.58
company
Minority shareholders’ equity 451,479,493.03 451,479,493.03
Total of owners’ equity 7,058,975,641.61 7,058,975,641.61
Total of liabilities and owners’ equity 12,600,115,579.96 12,600,115,579.96
Parent Company Balance Sheet
In RMB
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Current asset：
Monetary fund 1,017,072,165.81 1,017,072,165.81
Transactional financial assets 532,040,990.44 532,040,990.44
Derivative financial assets
Notes receivable 4,712,981.35 4,712,981.35
Account receivable 1,470,224,608.96 1,470,224,608.96
Financing of receivables 376,974,822.75 376,974,822.75
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Prepayments 222,187,452.27 222,187,452.27
Other account receivable 31,067,688.80 31,067,688.80
Including：Interest receivable
Dividend receivable 27,827,292.60 27,827,292.60
Inventories 1,402,933,995.29 1,402,933,995.29
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 30,332,464.25 30,332,464.25
Total of current assets 5,087,547,169.92 5,087,547,169.92
Non-current assets：
Creditor's rights investment
Other Creditor's rights investment
Long-term receivable
Long term share equity investment 897,978,418.75 897,978,418.75
Other equity instruments investment 2,490,376,886.96 2,490,376,886.96
Other non-current financial assets 119,345,893.13 119,345,893.13
Property investment
Fixed assets 413,089,308.63 413,089,308.63
Construction in progress 246,387,266.69 246,387,266.69
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 161,688,374.81 161,688,374.81
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 174,060,251.09 174,060,251.09
Other non-current asset
Total of non-current assets 4,502,926,400.06 4,502,926,400.06
Total of assets 9,590,473,569.98 9,590,473,569.98
Current liabilities
Short-term loans
Transactional financial liabilities
84
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Derivative financial liabilities
Notes payable 10,000,000.00 10,000,000.00
Account payable 623,426,940.99 623,426,940.99
Advance receipts 1,908,382,258.12 -1,908,382,258.12
Contract Liabilities 1,908,382,258.12 1,908,382,258.12
Employees’ wage payable 49,620,330.21 49,620,330.21
Tax payable 3,776,368.66 3,776,368.66
Other account payable 54,954,443.47 54,954,443.47
Including：Interest payable 0.00 0.00
Dividend payable 0.00 0.00
Liabilities held for sales
Non-current liability due within 1 year
Other current liability
Total of current liability 2,650,160,341.45 2,650,160,341.45
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 545,357,990.20 545,357,990.20
Long-term remuneration payable to staff
Expected liabilities 32,202,504.57 32,202,504.57
Deferred income 50,316,362.61 50,316,362.61
Deferred income tax liability 316,910,472.07 316,910,472.07
Other non-current liabilities
Total non-current liabilities 944,787,329.45 944,787,329.45
Total of liability 3,594,947,670.90 3,594,947,670.90
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 138,953,250.09 138,953,250.09
85
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Less：Shares in stock
Other comprehensive income 1,784,509,419.91 1,784,509,419.91
Special reserve 6,000,000.00 6,000,000.00
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 2,709,696,426.43 2,709,696,426.43
Total of owners’ equity 5,995,525,899.08 5,995,525,899.08
Total of liabilities and owners’ equity 9,590,473,569.98 9,590,473,569.98
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2020
Not applicable
45.Other:None
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 13%，6%
City maintenance and
Turnover tax payable 5%，7%
construction tax
Enterprise income tax Amount of income taxable 15%，25%
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.
Educational surcharge Turnover tax payable 3%
Local education additional Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company , Zhongneng Company, Packaged Tech. Company,Casting Company,
Zhejiang Huayuan Steam Turbine Machinery Co.,Ltd. and Hangzhou Guoneng 15%
Steam Turbine Engineering Co.,Ltd.
Hangzhou Zhongneng Steam Turbine Power
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd.
(Indonesia) Co., Ltd. registered in Indonesia
86
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
overseas subsidiaries, the applicable local relevant
tax laws and regulations.
Other Subsidiary（Domestic） 25%
2. Preferential tax
1. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2017〕No.201) issued by
Department of Science and Technology High-tech Development Center, the Company along with Hangzhou
Zhongneng Steam Turbine Power Co., Ltd. ,Zhejiang Packaged Technologies Development Co., Ltd., Zhejiang Huayuan
Steam Turbine Machinery Co.,Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co.,Ltd. – subsidies of the
Company, were qualified as high-tech enterprises for term of three years. As the result of the re-examination on 2020
high-tech enterprises has not yet been determined, the corporate income tax is temporarily reduced at a 15% tax rate.
2. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2020〕No.32) issued by
Department of Science and Technology High-tech Development Center, the Company along with The Casting
Company – subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they
enjoy 15% of tax for 2020.
3. According to the Notice on Implementing the Policy of Inclusive Tax Relief for Small and Micro Enterprises (CS
[2019] No.13) of the Ministry of Finance and the State Administration of Taxation, the subsidiary companies Kunming
Hangzhonneng Steam Turbine Power Technology Service Co., Ltd., Guangxi Hangzhonneng Steam Turbine
Technology Service Co., Ltd., Tangshan Hangneng Steam Turbine Power Technology Service Co., Ltd., Jilin
Hangzhongneng Steam Turbine Power Technology Service Co., Ltd., Urumqi Hangzhonneng Steam Turbine
Technology Service Co., Ltd. and Luoyang Hangqi Steam Turbine Technology Service Co., Ltd. shall adopt
preferential tax policies for small profit-making enterprises in 2020. For the part of annual taxable income not
exceeding 1 million yuan, it shall be included in the taxable income by 20%,% and the enterprise income tax shall be
calculated and paid at 20%; For the part with an annual taxable income over 1 million yuan but less than 3 million yuan,
it shall be included in the taxable income by 50%, and the enterprise income tax shall be calculated and paid at 20%.
3.Other
None
VII. Notes to the Consolidated Financial Statements
1.Monetary funds
In RMB
Items End of term Beginning of term
Cash in stock 81,043.96 272,578.83
Bank deposit 1,388,051,822.12 1,680,635,443.37
Other monetary fund 143,702,266.55 75,412,215.30
Total 1,531,835,132.63 1,756,320,237.50
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Incl: Total of accounts saved overseas 7,359,628.75 11,220,811.11
The total amount of money that has restrictions on use due to
69,831,476.27 110,412,586.58
mortgage , pledge or freezing
Other note:
The bank deposits at the end of the period include the use of restricted guarantee deposit of RMB 92,000.00; the other
currency funds at the end of the period include the use of restricted bank acceptance deposit of RMB 68,856,676.27,
the guarantee deposit of RMB 882,800.00, and the use of unrestricted repurchase of treasury stock special account
funds RMB 72,761,124.46 he can transfer out the payment of RMB 1,201,665.82 due to the acceptance bill at any
time.
2. Transactional financial assets
In RMB
Items End of term Beginning of term
Financial assets measured at fair value through profit or loss 1,233,985,614.62 854,210,990.44
Of which ：
Equity instrument investment 1,715,614.62 2,040,990.44
Financing product 1,232,270,000.00 852,170,000.00
Of which：
Total 1,233,985,614.62 854,210,990.44
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
Bank acceptance bill 25,322,344.94 30,437,261.72
Trade acceptance bill 45,731,685.68 16,046,997.93
Total 71,054,030.62 46,484,259.65
88
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
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
%)
%) (%) %)
Accrual of bad debt provision by portfolio 82,460,961.46 100.00% 11,406,930.84 13.83% 71,054,030.62 47,328,838.49 100.00% 844,578.84 1.78% 46,484,259.65
Of which：
Bank acceptance 25,322,344.94 31.00% 0.00 25,322,344.94 30,437,261.72 64.31% 30,437,261.72
Commercial acceptance 57,138,616.52 69.00% 11,406,930.84 19.96% 45,731,685.68 16,891,576.77 35.69% 844,578.84 5.00% 16,046,997.93
Total 82,460,961.46 100.00% 11,406,930.84 13.83% 71,054,030.62 47,328,838.49 100.00% 844,578.84 1.78% 46,484,259.65
Accrual of bad debt provision by portfolio: 11,406,930.84yuan
In RMB
End of term
Name
Book balance Bad debt provision Proportion%
Commercial acceptance by 57,138,616.52 11,406,930.84 19.96%
portfolio term
Total 57,138,616.52 11,406,930.84 --
89
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other
receivables if the provision for bad debts of bills receivable is accrued according to the general model of expected
credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Commercial acceptance
844,578.84 10,740,824.20 178,472.20 0.00 0.00 11,406,930.84
by portfolio term
Total 844,578.84 10,740,824.20 178,472.20 11,406,930.84
Of which the significant actual write-off accounts receivable:
Not applicable
（3）Notes receivable pledged by the Company at the end of the period
None
（4）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 the
Items
period-end period-end
Bank acceptance bill 15,647,625.54
Total 15,647,625.54
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
None
（6） The actual write-off accounts receivable
None
90
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proporti Book value Proportion Book value
Amount Amount Amount Proportion % Amount
% on % %
Accrual of bad debt
3,047,721.94 0.10% 3,047,721.94 100.00%
provision by single item
Including：
Accrual of bad debt
3,149,069,584.24 100.00% 1,095,065,896.56 34.77% 2,054,003,687.68 3,056,135,168.07 99.90% 1,031,053,825.33 33.74% 2,025,081,342.74
provision by portfolio
Including：
Total 3,149,069,584.24 100.00% 1,095,065,896.56 34.77% 2,054,003,687.68 3,059,182,890.01 100.00% 1,034,101,547.27 33.80% 2,025,081,342.74
Accrual of bad debt provision by portfolio: 1,095,065,896.56 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Accrual of bad debt provision
3,149,069,584.24 1,095,065,896.56 34.77%
by portfolio
Total 3,149,069,584.24 1,095,065,896.56 --
91
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other
receivables if the provision for bad debts of bills receivable is accrued according to the general model of expected
credit loss:
Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 1,064,517,972.95
1-2 years 742,589,235.91
2-3 years 373,245,355.16
Over 3 years 968,717,020.22
3-4 years 199,679,718.64
4-5 years 166,188,325.66
Over 5 years 602,848,975.92
Total 3,149,069,584.24
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off Other
collected amount
Provision for
bad debts shall 3,047,721.94 3,047,721.94
be withdrawn
on an
individual
basis
Accrual of bad
debt provision 1,031,006,728.47 71,127,520.77 7,068,352.68 1,095,065,896.56
by portfolio
Total 1,031,006,728.47 71,127,520.77 10,116,074.62 1,095,065,896.56
(3) The actual write-off accounts receivable
None
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Client 1 717,819,306.07 22.79% 312,265,318.85
Client 2 218,722,248.37 6.95% 148,431,273.75
Client 3 102,167,200.56 3.24% 6,537,862.02
Client 4 80,455,224.36 2.55% 11,647,977.91
Client 5 67,863,644.77 2.16% 67,863,644.77
Total 1,187,027,624.13 37.69%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
6. Financing of receivables
In RMB
Items End of term Beginning of term
Notes receivable 663,430,298.85 680,279,893.94
Total 663,430,298.85 680,279,893.94
Changes in the current period of receivables financing and fair value
□ Applicable √ Not applicable
Relevant information of the financing provision for bad debts will be disclosed with reference to the disclosure method
of other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
Not applicable
7. Prepayments
（1）Aging analysis
In RMB
End of term Beginning of term
Aging
Book balance Proportion(%) Book balance Proportion(%)
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Within 1 year 407,653,650.74 89.94% 350,460,871.05 90.19%
1-2 years 27,977,000.00 6.17% 29,444,937.03 7.58%
2-3 years 11,844,055.00 2.61% 3,055,563.05 0.79%
Over 3 years 5,754,044.20 1.28% 5,601,076.67 1.44%
Total 453,228,749.94 -- 388,562,447.80 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Name Amount Proportion(%)
SIEMENS (CHINA) LIMITED 127,678,790.00 28.17%
Shanghai Xiji Generator Co., Ltd. 37,408,095.58 8.25%
Siemens Industrial Turbo machinery AB 23,674,974.26 5.22%
Kailuowen thermal Power technology (Jiangsu) Co., Ltd. 19,364,627.00 4.27%
Mitsubishi Hitachi Electric Gas Engine Service (Nanjing) 16,363,851.14 3.61%
Co., Ltd
Total 224,490,337.98 49.53%
8. Other account receivable
In RMB
Nature Closing balance Opening balance
Dividend receivable 122,983,614.70 27,827,292.60
Other 19,071,291.16 17,693,497.29
Total 142,054,905.86 45,520,789.89
（1）Interest receivable ：None
2) Significant overdue interest
None
3）Bad-debt provision
Not applicable
（2）Dividend receivable
（1）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 122,983,614.70 27,827,292.60
Total 122,983,614.70 27,827,292.60
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Hangzhou Bank 27,827,292.60 1-4 years Equity pledge No
Total 27,827,292.60 -- -- --
3）Bad-debt provision
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Accrual of bad debt provision by portfolio: 33,551,927.96 32,955,532.35
Total 33,551,927.96 32,955,532.35
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for the
Bad Debt Reserves Expected credit loss over life Total
losses over the next entire duration (credit
(no credit impairment)
12 months impairment occurred)
Balance as at January 1, 2020 724,820.99 254,659.24 14,282,554.83 15,262,035.06
Balance as at January 1, 2020 in
—— —— —— ——
current
--Transfer to Stage 2 -321,894.20 321,894.20
--Transfer to Stage 3 -186,179.70 186,179.70
--Transfer to Stage 2
--Transfer to Stage 1
Provision in the current period 403,985.52 35,200.21 132,353.69 571,539.42
Turn back in the current period 110,792.87 82,713.92 1,159,430.89 1,352,937.68
Reseller in the current period
Write - off in the current period
95
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Other
Balance as at June 30, 2020 696,119.44 342,860.03 13,441,657.33 14,480,636.80
Loss provision changes in current period, change in book balance with significant amount
Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 14,546,253.61
1-2 years 4,247,456.70
2-3 years 1,039,713.21
Over 3 years 13,718,504.44
3-4 years 1,298,936.82
4-5 years 910,852.25
Over 5 years 11,508,715.37
Total 33,551,927.96
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual Write-off Other
amount
Accrual of bad
debt provision by 15,262,035.06 571,539.42 1,352,937.68 14,480,636.80
portfolio:
Total 15,262,035.06 571,539.42 1,352,937.68 14,480,636.80
4) The actual write-off accounts receivable
None
96
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the total
year end balance of Closing balance of
Name Nature Closing balance Aging
the accounts bad debt provision
receivable
Shanghai Customs Waigaoqiao Office Deposit 3,710,320.94 Over 5 years 11.06% 3,710,320.94
Temporary
Shandong Jinan Power Generation Equipment
payment 1,360,000.00 Over 5 years 4.05% 1,360,000.00
Plant Co., ltd.
receivable
Temporary
Hangzhou Boiler Group Co., Ltd. payment 1,000,000.00 Over 5 years 2.98% 1,000,000.00
receivable
Within 1
Nantong Jiaxing Thermal Power Co., Ltd. Deposit 700,000.00 2.09% 35,000.00
year
Hangzhou Yuhang District Finance Bureau
Deposit 567,423.00 Over 3 years 1.69% 387,854.80
non-tax income settlement account
Total -- 7,337,743.94 -- 21.87% 6,493,175.74
6) Accounts receivable involved with government subsidies
None
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
97
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Closing book balance Opening book balance
Provision for Provision for
Items inventory inventory
Book balance Book value Book balance Book value
impairment impairment
Raw materials 453,367,537.48 102,764,892.58 350,602,644.90 496,493,898.48 102,764,892.58 393,729,005.89
Goods in
progress 780,364,308.68 62,335,747.40 718,028,561.28 777,309,981.82 62,335,747.40 714,974,234.42
Stock goods 1,313,451,640.66 123,488,458.84 1,189,963,181.82 1,067,164,081.98 124,577,053.23 942,587,028.76
Total 2,547,183,486.82 288,589,098.82 2,258,594,388.00 2,340,967,962.28 289,677,693.21 2,051,290,269.07
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Reverse
Items Opening balance Reverse or Closing balance
Withdrawal or Other
write-off
write-off
Raw materials 102,764,892.58 102,764,892.58
Goods in progress 62,335,747.40 62,335,747.40
Stock goods 124,577,053.23 1,088,594.39 123,488,458.84
Total 289,677,693.21 1,088,594.39 288,589,098.82
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
10.Contact assets
None
11. Assets divided as held-to-sold
None
12. Non-current assets due within 1 year
None
13. Other current assets
In RMB
98
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Items End of term Beginning of term
Bank financing product
Input tax deductible 45,412,042.24 65,719,458.12
To verify the input tax
Prepaid income tax 1,167,776.62 1,771,366.76
Rent charge 915,551.87 4,101,238.21
Property losses pending disposal 91,183.29
Total 47,586,554.02 71,592,063.09
14.Creditor's right investment：None
15.Other Creditor's right investment: None
16. Long-term accounts receivable : None
99
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
17. Long-term equity investment
In RMB
Increase /decrease
Closing
Withdrawa
Addition Decreas Profits and losses Other Cash bonus or balance of
Investees Opening balance Closing balance
al e in on investments comprehensi Changes l of
impairment
in other profits announced Other
investme investme Recognized under ve impairmen
equity to issue provision
nt nt the equity method income
t provision
2. Affiliated Company
Zhejiang Zhongrun Gas turbine
10,883,488.70 10,883,488.70
technology Co., Ltd.
Zhejiang Ranchuang Touping Machinery
11,246,097.13 -944,417.34 10,301,679.79
Co., Ltd.
Subtotal 22,129,585.83 -944,417.34 21,185,168.49
Total 22,129,585.83 -944,417.34 21,185,168.49
18. Other equity instruments investment
In RMB
Items End of term Beginning of term
Hangzhou Bank 2,346,283,027.78 2,490,376,886.96
Total 2,346,283,027.78 2,490,376,886.96
Itemized disclosure of the current non - trading equity instrument investment
In RMB
100
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Amount of other Reasons for other
Accumu Reasons for being measured at fair value and whose
Recognized Accumulat comprehensive income comprehensive
Name lating changes are included in other comprehensive
dividend income ing profit transferred to retained income transferred to
profit income
earnings retained earnings
The company's intention to hold this equity i
nstrument is not to sell or repurchase it in the near f
Hangzhou Bank 95,156,322.10
uture, but to hold it for a long time to obtain stable
dividends.
101
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
19.Other non-current assets
In RMB
Items End of term Beginning of term
Classified as financial assets measured by fair value and whose changes are included
87,445,986.77 142,244,014.16
in the current profit and loss
Total 87,445,986.77 142,244,014.16
20. Investment property
(1) Investment property adopted the cost measurement mode
Not applicable
(2) Investment property adopted fair value measurement mode
Not applicable
(3) Details of investment property failed to accomplish certification of property
None
21. Fixed assets
In RMB
Items End of term Beginning of term
Fixed assets 692,659,233.28 724,702,558.18
Total 692,659,233.28 724,702,558.18
(1) Details
In RMB
Transportation
Items Houses & buildings Machinery equipment Office equipment Total
equipment
I. Original price
1. Balance at
723,688,582.73 1,017,986,468.77 27,373,257.78 98,848,619.12 1,867,896,928.40
period-beginning
2.Increase in the current
0.00 3,614,300.92 346,866.82 2,447,593.23 6,408,760.97
period
(1) Purchase 0.00 3,614,300.92 346,866.82 1,271,552.58 5,232,720.32
102
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
（ 2 ）
Transferred from constru 0.00 0.00 0.00 1,176,040.65 1,176,040.65
ction in progress
(3)Increased of
0.00 0.00 0.00 0.00 0.00
Enterprise Combination
3.Decreased amount of
3,855,956.51 2,899,770.36 627,118.00 1,453,706.35 8,836,551.22
the period
（1）Dispose 3,855,956.51 2,899,770.36 627,118.00 1,453,706.35 8,836,551.22
4. Balance at period-end 719,832,626.22 1,018,700,999.33 27,093,006.60 99,842,506.00 1,865,469,138.15
II.Accumulated
amortization
1.Opening balance 223,930,021.17 811,201,684.42 20,847,765.51 81,033,928.62 1,137,013,399.72
2.Increased amount of
10,794,157.09 22,244,367.55 272,845.70 681,057.59 33,992,427.93
the period
(1) Withdrawal 10,794,157.09 22,244,367.55 272,845.70 681,057.59 33,992,427.93
3.Decrease in the
154,238.25 2,260,007.51 567,349.64 1,386,377.64 4,367,973.04
reporting period
（1）Disposal 154,238.25 2,260,007.51 567,349.64 1,386,377.64 4,367,973.04
4.Closing balance 234,569,940.01 831,186,044.46 20,553,261.57 80,328,608.57 1,166,637,854.61
III. Impairment
provision
1.Opening balance 1,504,928.24 3,600,121.12 1,075,921.14 6,180,970.50
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease the reporting
0.00 0.00 0.00 8,920.24 8,920.24
period
（1）Disposal 0.00 0.00 0.00 8,920.24 8,920.24
4. Closing balance 1,504,928.24 3,600,121.12 0.00 1,067,000.90 6,172,050.26
IV. Book value
1.Book value of the
483,757,757.97 183,914,833.75 6,539,745.03 18,446,896.53 692,659,233.28
period-end
2.Book value of the
498,253,633.32 203,184,663.23 6,525,492.27 16,738,769.36 724,702,558.18
period-begin
103
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
(2) List of temporarily idle fixed assets
None
(3) Fixed assets leased in from financing lease
None
(4) Fixed assets leased out from operation lease
None
(5) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Steam turbine power Building 210,830,073.49 In process
Complete sets of factory 39,920,071.94 In process
（6）Liquidation of fixed assets
None
22. Construction in progress
In RMB
Items End of term Beginning of term
Construction in progress 1,077,342,567.61 799,410,358.84
Total 1,077,342,567.61 799,410,358.84
(1) List of construction in progress
In RMB
End of term Beginning of term
Provision Provision
Items
Book balance for Book value Book balance for Book value
impairment impairment
New Plant project 1,025,968,176.03 1,025,968,176.03 770,118,198.38 770,118,198.38
104
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Software project 7,779,939.24 7,779,939.24 7,779,939.24 7,779,939.24
Other project 35,161,210.08 35,161,210.08 13,337,401.59 13,337,401.59
Prepayment for
8,433,242.26 8,433,242.26 8,174,819.63 8,174,819.63
equipment or projects
Total 1,077,342,567.61 1,077,342,567.61 799,410,358.84 799,410,358.84
105
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
(2)Changes of significant construction in progress
In RMB
Including
g:
Capitaliz Source
Capitaliz capitaliz
Name of Transferred to Proportion Project ation of of
Budget Opening balance Increase Other decrease End balance ation of ation of
project fixed assets % process interest fundin
interest interest
rate (%) g
this
period
New Plant
173,328.76 770,118,198.38 255,849,977.65 1,025,968,176.03 59.19% 59.68% 7,806,913.54 1,155,487.14 1.20% Other
project
Software
797.00 7,779,939.24 7,779,939.24 97.62% 95.00% Other
project
Other project 13,337,401.59 24,648,440.91 1,176,040.65 1,648,591.77 35,161,210.08 Other
Prepayment
for equipment 8,174,819.63 8,073,290.56 7,814,867.93 8,433,242.26 Other
or projects
Total 174,125.76 799,410,358.84 288,571,709.12 1,176,040.65 9,463,459.70 1,077,342,567.61 -- -- 7,806,913.54 1,155,487.14 --
(3) List of the withdrawal of the impairment provision of the construction in progress
None
（4）Engineering material
None
106
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
23. Productive biological assets
(1) Productive biological assets measured at cost methods
Not applicable
(2) Productive biological assets measured at fair value
Not applicable
24. Oil and gas assets
Not applicable
25. Right to use assets
None
107
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
26. Intangible assets
(1) Information
In RMB
Non patent
Items Land using right Patent Software Total
technology
I. Original price
1. Balance at
332,298,312.33 309,433.96 0.00 6,203,204.75 338,810,951.04
period-beginning
2.Increase in the current
0.00 0.00 0.00 853,300.84 853,300.84
period
(1) Purchase 853,300.84 853,300.84
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of
the period
（1）Disposal
4.Closing balance 332,298,312.33 309,433.96 0.00 7,056,505.59 339,664,251.88
II.Accumulated
amortization
1.Opening balance 61,769,705.92 263,920.58 0.00 1,636,957.32 63,670,583.82
2.Increased amount of
3,331,432.68 2,735.10 0.00 654,480.03 3,988,647.81
the period
(1) Withdrawal 3,331,432.68 2,735.10 0.00 654,480.03 3,988,647.81
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 65,101,138.60 266,655.68 0.00 2,291,437.35 67,659,231.63
III. Impairment provision
1.Opening balance
2.Increased amount of the
108
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
period
(1) Withdrawal
3.Decreased amount of
the period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 267,197,173.73 42,778.28 0.00 4,765,068.24 272,005,020.25
2.Opening book
270,528,606.41 45,513.38 0.00 4,566,247.43 275,140,367.22
value
(2) Details of fixed assets failed to accomplish certification of land use right
None
27. R&D expenses
None
28. Goodwill
None
29. Long-term amortized expenses
None
30. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
End of term Beginning of term
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for Asset Impairment 1,409,447,153.05 217,427,661.47 1,342,544,151.28 207,111,114.23
Internal trade profit not realized 51,940,784.12 9,292,438.63 49,610,648.35 8,942,918.26
Deductible loss
Revenue from changes in fair value
39,466,566.08 5,919,984.91 37,770,873.39 5,665,631.00
generated by financial assets
109
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
classified at fair value through profit
or loss
Estimated liabilities 32,202,504.57 4,830,375.69 32,202,504.57 4,830,375.69
Temporary difference such as
1,463,169.81 219,475.47 1,463,169.81 219,475.47
amortizing of software expense
Total 1,534,520,177.63 237,689,936.17 1,463,591,347.40 226,769,514.65
(2) Deferred income tax liabilities had not been off-set
In RMB
End of term Beginning of term
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Appraisal and appreciation of
combined assets of companies not
under the same control
Changes in fair value of investments
in other creditor's rights
Changes in fair value of investments
1,955,328,987.78 293,299,348.17 2,099,422,846.96 314,913,427.04
in other equity instruments
Revenue from changes in fair value
generated by financial assets
4,526,027.39 678,904.11
classified at fair value through profit
or loss
Accumulated depreciation 6,180,970.50 927,145.58 6,180,970.50 927,145.57
Deferred income 2,765,210.50 414,781.57 1,574,345.96 390,995.35
Total 1,964,275,168.78 294,641,275.32 2,111,704,190.81 316,910,472.07
Note: The opening balance and closing balance of unoffset deferred income tax assets or deferred income tax liabilities
are presented according to the category of temporary differences, and the corresponding amount of temporary
differences.
（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Deferred Income Tax Temporarily Deductable or Deferred Income Tax Temporarily Deductable or
Items Assets or Liabilities at Taxable Difference at the Assets or Liabilities at Taxable Difference at the
the End of Report End of Report Period the Beginning of Beginning of Report Period
110
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Period Report Period
Deferred income tax
237,689,936.17 226,769,514.65
assets
Deferred income tax
294,641,275.32 316,910,472.07
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible provisional differences 6,276,380.47 3,522,673.60
Deductible losses 3,869,065.70 3,363,565.02
Total 10,145,446.17 6,886,238.62
(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
2021 507,583.48 507,583.48
2022 2,762,296.57 2,762,296.57
2023 93,489.37 93,489.37
2024 195.60 195.60
2025 505,500.68
Total 3,869,065.70 3,363,565.02 --
31. Other non-current assets
None
32. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Items End of term Beginning of term
Mortgage Borrowings 60,000,000.00 60,085,066.67
Guarantee Borrowing 137,700,000.00 37,755,120.54
Total 197,700,000.00 97,840,187.21
Note：
111
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
(2) List of the short-term borrowings overdue but not return
None
33. Transactional financial liabilities
None
34. Derivative financial liability
None
35.Notes payable
In RMB
Items End of term Beginning of term
Bank acceptance bill 240,170,034.62 227,961,541.12
Total 240,170,034.62 227,961,541.12
36. Accounts payable
(1) List of accounts payable
In RMB
Items End of term Beginning of term
Goods 1,237,895,913.72 976,932,194.16
Equipment and Engineering 97,035,784.64 53,476,522.58
Total 1,334,931,698.36 1,030,408,716.74
(2) Notes of the accounts payable aging over one year
None
37. Advances received
(1) List of Advances received
None
(2) Notes of the accounts payable aging over one year
None
112
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
38.Contract liabilities
In RMB
Items End of term Beginning of term
Goods 3,099,833,164.03 2,818,130,397.17
Total 3,099,833,164.03 2,818,130,397.17
39. Payroll payable
(1) List of Payroll payable
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Short-term compensation 71,207,361.75 351,348,653.30 371,917,120.47 50,638,894.58
Post-employment benefits - defined
contribution plans 24,998,587.82 35,354,803.41 42,573,301.08 17,780,090.15
Dismissal welfare 18,678.00 18,678.00
Total 96,205,949.57 386,722,134.71 414,509,099.55 68,418,984.73
（2）Presentation of short-term compensation
In RMB
Items Opening balance Increase Decrease Closing balance
(1) Salary, bonus, allowance and
subsidy 53,459,703.08 281,526,390.60 311,371,037.89 23,615,055.79
(2) Employee benefits 16,415,741.25 9,133,138.48 7,282,602.77
(3) Social insurance expenses 7,315,733.29 18,930,218.11 19,097,217.83 7,148,733.57
Including: medical insurance
premium 6,806,787.26 18,203,750.80 17,965,805.39 7,044,732.67
Work-related injury insurance
premium 106,621.82 479,887.61 483,048.53 103,460.90
Maternity insurance premium 402,324.21 246,579.70 648,363.91 540.00
(4) Housing fund 104,323.96 27,175,999.00 27,180,689.00 99,633.96
(5) Labor union expenditures and
10,327,601.42 7,300,304.34 5,135,037.27 12,492,868.49
employee education expenses
Total 71,207,361.75 351,348,653.30 371,917,120.47 50,638,894.58
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
113
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
1.Basic pension
4,734,914.56 20,128,512.71 20,388,644.52 4,474,782.75
insurance
2. Unemployment
171,523.17 719,828.70 728,676.20 162,675.67
insurance
3. Enterprise annual fee 20,092,150.09 14,506,462.00 21,455,980.36 13,142,631.73
Total 24,998,587.82 35,354,803.41 42,573,301.08 17,780,090.15
40. Taxes Payable
In RMB
Items End of term Beginning of term
VAT 11,926,489.68 7,102,002.57
Enterprise Income tax 32,029,014.71 16,168,061.29
Individual Income tax 847,846.85 1,471,876.19
City Construction tax 854,907.02 702,531.26
Property tax 348,901.25 5,020,068.01
Land use tax 98,643.50 3,152,220.40
Education subjoin 367,175.72 312,788.18
Locality Education subjoin 244,764.03 208,525.44
Other 191,545.90 383,683.64
Total 46,909,288.66 34,521,756.98
41.Other account payable
In RMB
Items End of term Beginning of term
Interest payable 93,150.68
Dividend payable 148,760,495.00
Other account payable 68,855,390.60 82,148,405.19
Total 217,709,036.28 82,148,405.19
（1) Interest payable
In RMB
Items End of term Beginning of term
Interest on short-term borrowings 93,150.68
114
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Total 93,150.68
Particulars of significant overdue unpaid interest：
None
(2) Dividends payable
In RMB
Items End of term Beginning of term
Common dividends 148,760,495.00
Total 148,760,495.00
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items End of term Beginning of term
Deposit 14,466,786.31 13,661,447.55
Provisional account payable 53,035,769.01 66,817,647.74
Other 1,352,835.28 1,669,309.90
Total 68,855,390.60 82,148,405.19
② Significant other payables for over 1 year
None
42. Liabilities classified as holding for sale
None
43. Non-current liabilities due within 1 year
In RMB
Items End of term Beginning of term
Long-term Borrowing loans due within 1
100,000.00 200,319.30
year
Total 100,000.00 200,319.30
115
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
44. Other current-liabilities
None
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items End of term Beginning of term
Mortgage loan 12,500,000.00 12,519,956.60
Guarantee loan 9,900,000.00 9,915,805.63
Total 22,400,000.00 22,435,762.23
46. Bonds payable
None
47. Lease liability
None
48. Long-term payable
In RMB
Items End of term Beginning of term
Long term account payable 182,330,000.00 183,554,599.99
Special Payable 500,321,713.17 546,905,908.60
Total 682,651,713.17 730,460,508.59
(1) Long-term payable listed by nature of the account
In RMB
Items End of term Beginning of term
CDB investment fund 182,000,000.00 182,000,000.00
Income payable of CDB 1,224,599.99
Drawing in administrative restructuring 330,000.00 330,000.00
Total 182,330,000.00 183,554,599.99
Other notes：
According to the relevant agreement of the National Development Fund Investment Contract (hereinafter referred
116
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
to as the Investment Contract) jointly signed by the Company, National Development Fund Co., Ltd. (hereinafter
referred to as the NDF), Hangzhou Steam Turbine Industry Co., Ltd. and Hangzhou Steam Turbine Group, the NDF
invested RMB 208,000,000.00 in Hangzhou Steam Turbine Industry Co., Ltd., the subsidiary, The NDF obtains 1.2%
of the proceeds through dividends or repurchasing premium each year for the above investment; According to the
investment contract, Hangzhou Turbine Group will buy back its stake in the turbine heavy industry company by stages
from 2019 to the national development fund. In addition, according to the share transfer agreement in the buyback
stage, Hangzhou Turbine Group will resell the shares to the company at the same price after buyback. Hangzhou
Turbine Group has bought back the investment of 26,000,000.00 yuan from the national development fund and resold it
to the company at the same price. Turbine Heavy Industry Company received the above-mentioned investment from
CDI Development Fund on December 27, 2016. According to the relevant investment return agreement in the
investment contract, the Company will report it as long-term payables when preparing the consolidated financial
statements. As of June 30, 2020, the accumulated recognized income payable for this investment is 8，662，333.35 yuan,
of which the current recognized income payable is 1，156，133.35 yuan.
(2) Special Payable
In RMB
Items Beginning of term Increased this period Decreased this period End of term Reason
Compensation for
545,401,106.60 47,297,399.04 498,103,707.56
relocation
Funding for Personnel
1,504,802.00 1,220,000.00 506,796.39 2,218,005.61
Training
Subtotal 546,905,908.60 1,220,000.00 47,804,195.43 500,321,713.17 --
Other note：
The decrease of relocation compensation in the current period is mainly because RMB 47,297,399.04 is transferred into
other income.
49. Long term payroll payable
None
50. Estimated liabilities
In RMB
117
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Items End of term Beginning of term Reason
Proceedings without judgement 32,202,504.57 32,202,504.57
Total 32,202,504.57 32,202,504.57 --
51. Deferred income
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason
period
Receive government
Government Subsidy 51,713,417.61 47,297,399.04 48,488,263.58 50,522,553.07
subsidies
Total 51,713,417.61 47,297,399.04 48,488,263.58 50,522,553.07 --
Details of government subsidies
In RMB
Amount Amount of
transferred Asset-related
Other income cost Other
Beginning of New subsidy in to or
Items recorded in the deducted in change End of term
term current period non-operat income-relate
ional current period the current s d
income period
Financial support for
Related to
201,460.00 201,460.00
industrial projects assets
Government subsidy for
Related to
201,460.00 201,460.00
casting project assets
Circular economy Related to
79,870.00 79,870.00
financial subsidy assets
Related to
Finance for casting project 914,265.00 914,265.00
assets
Compensation for
requisition and Related to
40,595,635.04 674,719.70 39,920,915.34
relocation-newly built assets
complete plant
Compensation for
Related to
requisition and relocation- 9,720,727.57 516,144.84 9,204,582.73
assets
Heavy Equipment
118
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Compensation for
requisition and Related to
0.00 47,297,399.04 47,297,399.04 0.00
relocation-- Relocation earnings
expenditure
Total 51,713,417.61 47,297,399.04 0.00 48,488,263.58 0.00 0.00 50,522,553.07
52. Other non-current liabilities
None
53. Stock capital
In RMB
Increase/decrease this time (+ , - )
Transferre
Balance Year-beginning Issuing of new Bonus Balance year-end
d from Other Subtotal
share shares
reserves
Total of capital
754,010,400.00 754,010,400.00
shares
54. Other equity instruments
None
55. Capital reserves
In RMB
Year-beginning balance Increase in Decrease in the current Year-end balance
Items
the current period
period
Capital premium 92,942,694.56 92,942,694.56
Other capital reserves 60,030,525.09 60,030,525.09
Total 152,973,219.65 152,973,219.65
56. Treasury stock
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
period period
119
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Treasury stock 0.00 73,364,395.79 73,364,395.79
Total 73,364,395.79 73,364,395.79
120
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
57. Other comprehensive income
In RMB
Occurred current term
Less：Amount
transferred into
Less：Prior period
profit and loss in
included in other After-tax
the current period
Items Opening balance Amount incurred composite income Less：Income tax After-tax attribute to attribute to Closing balance
that recognied into
before income tax transfer to retained expenses the parent company minority
other
income in the shareholder
comprehensive
current period
income in prior
period
1. Other comprehensive income
that cannot be reclassified in the 1,784,509,419.91 -144,093,859.18 0.00 0.00 -21,614,078.87 -122,479,780.31 0.00 1,662,029,639.60
loss and gain in the future
Changes in fair value of
investments in other equity 1,784,509,419.91 -144,093,859.18 -21,614,078.87 -122,479,780.31 0.00 1,662,029,639.60
instruments
II. Other Comprehensive
income that will be reclassified -314,263.57 11,741.77 0.00 0.00 0.00 4,999.60 6,742.17 -309,263.97
subsequently to profit or loss
Difference of translating of
-314,263.57 11,741.77 4,999.60 6,742.17 -309,263.97
foreign currency accounts
Total of other comprehensive 1,784,195,156.34 -144,082,117.41 0.00 0.00 -21,614,078.87 -122,474,780.71 6,742.17 1,661,720,375.63
121
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
income
58.Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 18,324,473.28 838,616.00 1,056,758.40 18,106,330.88
Total 18,324,473.28 838,616.00 1,056,758.40 18,106,330.88
Other note, including changes and reason of change:
1) The decrease in the current period is due to the safety production expenses extracted by the company for the purchase of safety protection articles and
equipment.
2) On December 5, 2016, Upon the application of the Company and the approval of Hangzhou Safety Production Supervision and Administration Bureau
(HSPSAB), the minimum reserved amount for the collection and use of the safety production cost of the Company and its subsidiaries is RMB 20 million. If the
safety production costs that have been withdrawn in previous years have exceeded the minimum reserved amount, it will no longer be reduced; if the safety
production costs for the subsequent years are less than the above-mentioned minimum reserved amount, withdraw in the current year to compensate up to the
minimum reserved amount.
122
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
59. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus reserves 621,112,807.78 621,112,807.78
Total 621,112,807.78 621,112,807.78
60. Retained profit
In RMB
Items Amount of this period Amount of last period
After adjustments: Retained profits at the period 3,082,544,107.52
3,276,880,091.53
beginning
Add：Net profit belonging to the owner of the parent 345,138,064.00
230,908,137.72
company
Common stock dividend payable 148,760,495.00 150,802,079.99
Retained profit at the end of this term 3,359,027,734.25 3,276,880,091.53
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.
61. Business income and Business cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main Business 2,014,106,118.81 1,383,031,333.07 1,911,865,806.20 1,364,677,904.22
Other 7,561,307.46 4,782,964.35 8,315,896.83 1,726,497.04
Total 2,021,667,426.27 1,387,814,297.42 1,920,181,703.03 1,366,404,401.26
Information related to performance obligations:
The Company’s sales segment has entered into legal and effective sales contracts/orders with the customers. The
123
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
contract/order clarifies the terms of the subject product, specification and model, transaction quantity, unit price,
settlement method, delivery obligation, etc. The performance obligation is clear, and it is a single performance
obligationat a single time point. The Company's various product contracts/orders have clear transaction prices, and the
Company will confirm revenue after fulfilling the relevant performance obligations in accordance with the
contract/order related agreements.
Information related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performed
incompletely but the contract has been signed at the end of the reporting period is RMB5,578,080,000.00.
62.Taxes and surcharges
In RMB
Items Amount of this period Amount of last period
City maintenance and construction tax 5,680,290.68 6,258,277.92
Education surtax 2,463,698.33 2,722,783.20
House tax 348,901.29 332,977.63
Land use tax 98,643.50 1,655,168.00
vehicle and vessel tax 23,420.08 26,793.80
Stamp tax 589,540.08 646,951.82
Locality Education surcharge 1,642,445.84 1,815,188.62
Total 10,846,939.80 13,458,140.99
63. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 31,552,848.27 35,345,136.48
Transportation 19,931,848.17 17,358,879.72
Travel expenses 7,154,671.71 11,000,584.22
Business reception expenses 3,275,416.18 3,518,464.60
Consulting service fee 12,063,577.89 8,877,804.98
Conferences 497,005.86 857,979.45
Three charge 2,318,038.13 2,965,403.66
Advertising fee 213,848.82 645,456.86
Office expenses 434,985.47 294,547.52
Unit premium 199,193.37 443,566.81
Other 6,337,963.03 5,588,115.02
124
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Total 83,979,396.90 86,895,939.32
64. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 161,494,325.81 163,845,277.06
Enterprise relocation costs 50,087,508.78 1,960,436.28
Asset depreciation and amortizing 13,405,445.30 12,905,965.64
Business reception expenses 1,212,732.17 1,341,508.33
Rental fee, House rental, property
management, water and power 8,307,176.25 11,812,826.37
Traveling fees 2,136,128.58 4,586,971.31
Material, low-value-consumable 1,004,457.29 1,755,846.28
Office expenses
1,343,574.69 1,171,344.18
Repair costs 4,308,076.64 1,822,902.87
Transpiration expenses 3,061,654.14 4,533,846.56
Other 14,738,720.53 29,431,401.10
Total 261,099,800.18 235,168,325.98
65. R&D Expense
In RMB
Items Amount of this period Amount of last period
Labor cost 53,727,113.87 50,307,098.47
Direct materials 41,609,825.30 51,643,451.05
Depreciation expenses 6,079,964.29 6,273,507.75
Test and inspection fee 106,249.26 5,852,855.49
Commissioned research & development 0.00 906,393.74
Other 1,705,763.21 1,777,636.02
Total 103,228,915.93 116,760,942.52
66. Financial expenses
In RMB
Items Amount of this period Amount of last period
125
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Interest expense 3,356,373.45 7,163,329.72
Less: Incoming interests 14,883,294.02 13,686,150.29
Exchange gains/losses -8,469,678.49 1,120,184.65
Commission 1,027,188.78 1,072,945.23
Other -245,025.84 75,187.53
Total -19,214,436.12 -4,254,503.16
67. Other income
In RMB
Items Amount of this period Amount of last period
Government subsidies 55,591,999.22 14,470,802.89
Individual tax commission refunds 124,644.18 1,290,786.14
Total 55,716,643.40 15,761,589.03
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long - term equity investment income calculated by the equity
-944,417.34
method
Revenue from changes in fair value generated by financial
assets classified at fair value through Other comprehensive 716,981.13 2,763,749.82
income
Other equity instrument investment during the holding period
95,156,322.10 67,968,801.50
of dividend income
Revenue from changes in fair value generated by financial
assets classified at fair value through Other comprehensive 23,459,182.58 28,727,771.34
income
Total 118,388,068.47 99,460,322.66
69.Net exposure hedging income
None
70. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
126
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Revenue from changes in fair value generated by financial assets
-597,375.82 -1,474,755.34
classified at fair value through profit or loss
Total -597,375.82 -1,474,755.34
71. Credit impairment loss
In RMB
Source Amount of this period Amount of last period
Losses on bad debt -69,862,741.38 6,225,948.82
Total -69,862,741.38 6,225,948.82
72. Losses from asset impairment
In RMB
Amount of this
Items Amount of last period
period
II. Loss of inventory value and impairment of contract performance
197,857.88
costs
Total 197,857.88
73. Asset disposal income
In RMB
Source Amount of this period Amount of last period
Profits of disposal of fixed assets 247,052.27 -1,183.02
Total 247,052.27 -1,183.02
74. Non-operating income
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Compensation income 4,631,112.82 576,158.72
Payment not to be paid 1,240,080.10
127
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Others 344,931.26 168,680.44
Total 6,216,124.18 744,839.16
75. Non-operational expenditure
In RMB
Amount of last Recorded in the amount of the non-recurring
Items Amount of this period
period gains and losses
Debt restructuring loss 115,229.71 526,315.79 115,229.71
Donations 77,709.00 70,000.00 77,709.00
Non-current assets scrapping loss 395,264.37 497,573.36 395,264.37
Compensation expenses 3,561,655.09 3,681,180.41 3,561,655.09
Fine, late payment 3,462.40 87,175.73 3,462.40
Special Fund for Water Conservancy
66.99
Construction
Other 25,490.14 358,450.00 25,490.14
Total 4,178,810.71 5,220,762.28 4,178,810.71
76. Income tax expenses
(1) Details
In RMB
Items Amount of this period Amount of last period
Income tax of current term 40,874,307.40 37,570,544.94
Deferred income tax -10,328,875.72 -795,145.65
Total 30,545,431.68 36,775,399.29
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Amount of this period
Total profit 299,841,472.57
128
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Income tax expense at statutory / applicable tax rates 44,976,220.89
Effect of different tax rates applicable to subsidiaries 1,960,499.20
Adjustment for income tax in prior year 787,507.48
Income not subject to tax -16,910,365.81
Expenses not deductible for tax purposes 182,000.78
Affect the use of deferred tax assets early unconfirmed deductible losses -492,103.27
The current period does not affect the deferred tax assets recognized deductible temporary differences
41,672.41
or deductible loss
Income tax expenses 30,545,431.68
77. Other Comprehensive income
See note.
78. Notes Cash flow statement
(1) Other cash received from business operation
In RMB
Items Amount of this period Amount of last period
Court freezing of deposits 35,000,000.00
Deposit interest 14,883,294.02 12,657,033.86
Government subsidies received 7,103,735.64 8,849,942.78
Tender and other margin 6,080,914.51 3,376,150.00
Compensation income 63,697.10
Receipt of operating current account 1,229,295.31 900,072.19
Other 1,028,578.16 280,235.91
Total 65,325,817.64 26,127,131.84
2. Other cash paid for Operating activities
In RMB
Items Amount of this period Amount of last period
Transportation 2,716,781.40 1,852,243.48
10,926,514.53 16,200,400.44
Travel expenses
Business trips 4,510,515.68 4,675,551.83
129
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Maintaining 2,152,993.76 932,917.88
Property management and civil services 5,187,945.81 14,459,646.16
Deposit for bidding and others 9,105,081.51 7,002,407.01
Office expenses 2,045,990.41 1,125,869.55
Conferences 455,082.31 1,012,286.97
Consulting service fee 4,671,841.14 4,134,383.92
Transportation and vehicles 1,455,786.99 1,800,422.55
Other 41,350,002.54 48,915,743.06
Total 84,578,536.08 102,111,872.85
3.Other investment-related cash received
In RMB
Items Amount of this period Amount of last period
Repurchasing of trusteeship 1,533,898,000.00 1,736,229,711.39
Receipt of levy and relocation
314,548,452.89
compensation
Total 1,533,898,000.00 2,050,778,164.28
4. Other cash paid for investment activities
In RMB
Items Amount of this period Amount of last period
Purchasing of financial products 1,913,998,000.00 1,157,904,000.00
Total 1,913,998,000.00 1,157,904,000.00
5. Other financing-related cash received
None
(6) Other cash paid relevant to financing activities
In RMB
Items Amount of this period Amount of last period
Payment of CDB investment interest 2,380,733.34 2,530,666.67
Repurchase stocks 73,364,395.79
Total 75,745,129.13 2,530,666.67
130
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplementary Info. Amount of this period Amount of last period
-- --
I. Adjusting net profit to cash flow from operating activities
Net profit 269,296,040.89 184,666,913.74
Add: Impairment loss provision of assets 69,862,741.38 -6,423,806.70
Depreciation of fixed assets, oil and gas assets and consumable
33,992,427.93 30,399,548.46
biological assets
Depreciation of use rights assets
Amortization of intangible assets 3,988,647.81 3,642,170.34
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets, intangible assets and other
-247,052.27 1,183.02
long-term deferred assets
Loss on scrap of fixed assets 395,264.37 497,573.36
Loss to changes in fair value 597,375.82 1,474,755.34
Financial cost -5,113,305.04 8,467,221.60
Loss on investment -118,388,068.47 -99,460,322.66
Decrease of deferred income tax assets -10,920,421.52 -825,829.94
Increased of deferred income tax liabilities -22,269,196.75 37,957,275.53
Decrease of inventories -207,394,199.77 -28,264,852.32
Decease of operating receivables -167,471,610.97 -127,219,533.71
Increased of operating Payable 480,854,191.02 -12,688,968.55
Other -218,142.40 -1,563,923.88
Net cash flows arising from operating activities 326,964,692.03 -9,340,596.37
II. Significant investment and financing activities that without
-- --
cash flows:
Debts converted to capital
Convertible debts mature within one year
131
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Fixed assets acquired under finance leases
III. Net changes in cash and cash equivalents: -- --
Cash at end of year 1,462,003,656.36 1,686,405,098.11
Less: cash at beginning of year 1,645,907,650.92 1,262,186,817.20
Add：cash equivalents at end of year
Less: cash equivalents at beginning of year
Net increase of cash and cash equivalents -183,903,994.56 424,218,280.91
(2) Net Cash paid of obtaining the subsidiary
None
(3) Net Cash receive of disposal of the subsidiary
None
(4) Component of cash and cash equivalents
In RMB
Items End of term Beginning of term
1,462,003,656.36 1,645,907,650.92
I. Cash
81,043.96 272,578.83
Of which: Cash in stock
Bank savings could be used at any time 1,645,633,443.37
1,387,959,822.12
Other monetary capital could be used at any time 1,628.72
73,962,790.28
A central bank deposit available for payment
Deposit of inter-bank funds
Debit and release of interbank money
2) Cash equivalents
Including: Bond investment due in three months
III. Balance of cash and cash equivalents at the period end 1,462,003,656.36 1,645,907,650.92
132
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Including ：
Use of restricted cash and cash equivalents by parent or group sub
sidiaries
80. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.
None
81. Assets with limitation on ownership or using rights
In RMB
Items Closing book value Causation o limitation
Used as security for issuing of acceptance drafts and bill of
Monetary capital 69,831,476.27
guarantees
Collateral for obtaining bank loans and investment funds from
Fixed assets 114,535,863.69
CDB
Collateral for obtaining bank loans and investment funds from
Intangible assets 82,929,877.00
CDB
Transactional Financial Assets 1,715,614.62 In a lock-up period
Collateral for obtaining bank loans and investment funds from
Dividend receivable 43,605,292.60
CDB
Collateral for obtaining bank loans and investment funds from
Other equity instrument investment 389,040,400.00
CDB
Collateral for obtaining bank loans and investment funds from
Construction in process 619,207,141.72
CDB
Financing receivable 125,299,879.99 Used as security for issuing of acceptance drafts and bill
Total 1,446,165,545.89 --
82. Monetary 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 -- -- 356,095,052.41
Incl：USD 48,874,318.87 7.0795 346,005,740.41
Euro 298,716.50 7.9610 2,378,082.06
133
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
HKD 5.51 0.9129 5.03
Yen 5,342,757.00 0.0658 351,596.16
Rupiah 15,929,932,352.59 0.0005 7,359,628.75
Account receivable -- -- 154,711,030.76
Incl：USD 20,414,411.55 7.0795 144,523,826.57
Euro 970,509.14 7.9610 7,726,223.26
HKD
Rupiah 4,801,883,549.79 0.0005 2,218,470.20
SGD 47,726.12 5.0813 242,510.73
Long-term borrowing -- --
Incl：USD
Euro
HKD
Account payable 26,465,651.62
Incl：USD 573,574.99 7.0795 4,060,624.14
Euro 2,385,626.86 7.9610 18,991,975.43
Rupiah 7,387,558,549.79 0.0005 3,413,052.05
Other receivable 3,539,750.00
Incl：USD 500,000.00 7.0795 3,539,750.00
(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.
Not applicable
83. Hedging
None
84. Government subsidy
1) Government subsidies related to assets
In RMB
Amount included in current profit
Items Amount Project
and loss
Compensation for requisition- Relocation costs 48,488,263.58 Other income 48,488,263.58
Social security fee refund 2,290,961.12 Other income 2,290,961.12
Hangzhou Economic and Technological Development
1,595,400.00 Other income 1,595,400.00
Zone promotes subsidies for scientific and
134
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
technological innovation & entrepreneurship
Several policies for subsidies for the first (set) of
1,455,000.00 Other income 1,455,000.00
major technical equipment
Awards for military-civilian integration industry
800,000.00 Other income 800,000.00
development
Performance reward for high-level talents in Zhejiang
285,000.00 Other income 285,000.00
province
Electricity subsidies for pandemic prevention and
control to help companies resume work and 214,248.00 Other income 214,248.00
production
Hero rewards for yield per unit area 200,000.00 Other income 200,000.00
Patent incentive rewards 120,600.00 Other income 120,600.00
Proportional employment subsidies for disabled
58,290.00 Other income 58,290.00
persons
Financial subsidy for green enterprise development 50,000.00 Other income 50,000.00
Other 34,236.52 Other income 34,236.52
Total 55,591,999.22 55,591,999.22
（2）Government subsidy return
Not applicable
85.Other ：None
VIII. Changes of merge scope
1. Business merger not under same control
None
2. Business combination under the same control
None
3. Counter purchase
None
135
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting
period
□ Yes √ No
5. Other reasons for the changes in combination scope
None
6. Other
None
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Name of the Main business Share proportion %
Reg. Add. Business property
subsidiaries location Way of obtain
Direct Indirect
Zhejiang Steam
Trubine Packaged
Hangzhou Hangzhou
Technologies Commerce 70.86% Incorporation
Zhejiang Zhejiang
Development Co.,
Ltd.
Hangzhou
Zhongneng Steam Hangzhou Hangzhou
Manufacturing
Turbine Power Co., 60.83% Incorporation
Zhejiang Zhejiang
Ltd.
Hangzhou Steam
Hangzhou Hangzhou
Turbine Casting Co.,
Zhejiang Zhejiang Manufacturing 38.03% Incorporation
Ltd.
Hangzhou Steam
Hangzhou Hangzhou
Turbine Machinery Manufacturing
Zhejiang Zhejiang 52.00% Incorporation
Equipment Co., Ltd.
136
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Hangzhou Steam
Turbine Auxiliary
Hangzhou Hangzhou
Machinery Co., Ltd.
Zhejiang Zhejiang Manufacturing 87.53% Incorporation
(Auxiliary Machinery
Co.)
Zhejiang Turbine
Hangzhou Hangzhou
Import & Export Co., Commerce 100.00% Incorporation
Zhejiang Zhejiang
Ltd. (Turbine Co.)
Hangzhou Steam
Hangzhou Hangzhou
Turbine Heavy
Zhejiang Zhejiang Manufacturing 100.00% Incorporation
Industry Co., Ltd.
Basis for holding 50% or less than 50% of the voting power but still controlling the invested organizations
In December 2018, the subsidiary Casting Company introduced external strategic investors, leading to a decrease in
the shareholding ratio of the Company from 51% to 38.03%. Since the Company still held more than 1/3 of shares and
took three seats in the board of five directors, it still had power of control over the Casting Company.
2.Major non-fully-Owned subsidiaries
In RMB
Gains/loss of the period
Name of the Share portion of minor Dividend announced in the Balance of equity of minor
attributable to minor
subsidiaries shareholders period to minor shareholders shareholders at end of period
shareholders
Zhejiang Steam
Turbine Packaged
Technologies 29.14% 5,298,607.46 11,891,160.00 35,464,716.25
Development Co.,
Ltd.
Hangzhou
Zhongneng Steam
39.17% 9,593,156.54 40,372,000.00 118,900,238.50
turbine Power Co.,
Ltd.
137
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Hangzhou Steam
Turbine Casting Co., 61.97% 8,558,134.94 159,213,425.42
Ltd.
Hangzhou Steam
Turbine Machinery 48.00% 12,596,256.65 28,800,000.00 64,993,798.78
Equipment Co., Ltd.
Hangzhou Steam
Turbine Auxiliary 12.47% 3,162,289.29 30,035,398.41
Machinery Co., Ltd.
138
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
3. Material financial information of major non-fully-owned subsidiaries
In RMB
End of term Beginning of term
Subsidiaries
Non-current Current Non-current Total of Non-current Current Non-current Total of
Name Current assets Total of assets Current assets Total of assets
assets liabilities liabilities liability assets liabilities liabilities liability
Zhejiang
Steam Turbine
Packaged
336,710,841.28 223,819,247.1 223,819,247.1 325,685,155.5 333,894,411.2 189,590,803.8 189,590,803.8
Technologies 8,792,172.74 345,503,014.02 - 8,209,255.66 -
9 9 7 3 2 2
Development
Co., Ltd.
Hangzhou
Zhongneng
Steam turbine 1,183,766,254.68 977,115,113.5 977,445,113.5 1,168,147,686 1,238,717,046 887,176,126.3 887,506,126.3
69,710,164.00 1,253,476,418.68 330,000.00 70,569,360.17 330,000.00
9 9 .49 .66 7 7
Power Co.,
Ltd.
Hangzhou
Steam Turbine
415,751,268.77 151,294,951.6 279,297,070.9 303,094,125.9 387,332,497.0 158,618,200.3 545,950,697.3 271,808,868.6 295,641,685.8
Casting Co., 567,046,220.37 23,797,055.00 23,832,817.23
0 4 4 8 0 8 5 8
Ltd.
Hangzhou
Steam Turbine
264,845,211.12 156,178,089.5 157,726,007.9 275,472,861.6 305,708,203.7 134,998,739.2 136,546,657.6
28,284,544.26 293,129,755.38 1,547,918.40 30,235,342.07 1,547,918.40
Machinery 1 1 7 4 3 3
Equipment
139
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Co., Ltd.
Hangzhou
Steam Turbine
Auxiliary 694,988,768.03 100,610,070.1 527,883,724.2 527,883,724.2 659,359,841.2 103,773,643.1 763,133,484.4 520,777,546.8 520,777,546.8
795,598,838.19 - -
6 0 0 9 8 7 4 4
Machinery
Co., Ltd.
In RMB
Amount of current period Amount of previous period
Subsidiaries Name
Cash flow for Cash flow for business
Turnover Net profit Total Misc Gains Turnover Net profit Total Misc Gains
business activities activities
Zhejiang Steam
Turbine Packaged
Technologies 88,950,190.73 18,180,159.42 18,180,159.42 50,678,440.33 132,931,775.76 14,770,529.69 14,770,529.69 16,677,677.17
Development Co.,
Ltd.
Hangzhou Zhongneng
Steam turbine Power 463,773,371.54 26,262,274.43 26,274,016.20 48,380,466.31 434,209,306.91 17,020,437.04 17,565,955.46 25,182,061.76
Co., Ltd.
Hangzhou Steam
Turbine Casting Co., 188,039,370.62 13,810,994.94 13,810,994.94 -2,650,207.83 201,953,546.36 -4,923,525.49 -4,923,525.49 -4,923,310.09
Ltd.
Hangzhou Steam
131,998,141.54 26,242,201.36 26,242,201.36 10,784,295.08 134,372,561.91 31,959,387.07 31,959,387.07 34,542,152.34
Turbine Machinery
140
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Equipment Co., Ltd.
Hangzhou Steam
Turbine Auxiliary 307,652,062.40 25,359,176.36 25,359,176.36 3,444,358.68 238,328,136.56 6,346,621.51 6,346,621.51 1,340,271.89
Machinery Co., Ltd.
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
None
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the parent company
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
None
141
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
（2）Major joint ventures and associates
None
(3) Main financial information of significant associated enterprise
None
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Amount of current period Amount of previous period
Joint venture： -- --
The total of following items according to the
shareholding proportions
-- --
Associated enterprise: -- --
Total book value of investment
21,185,168.49 22,129,585.83
Totals calculated by shareholding ratio are
-- --
as follows
Net profit
-944,417.34
Total comprehensive income
-944,417.34
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
142
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
None
X. The risk related 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.
1. Credit risk management practice
(1) Evaluation method of credit risk
On each balance sheet date, the company evaluates whether the credit risk of relevant financial instruments
has increased significantly since the initial confirmation. When determining whether the credit risk has increased
significantly since the initial confirmation, the company considers to obtain reasonable and reliable information
without unnecessary extra costs or efforts, including qualitative and quantitative analysis based on historical data,
external credit risk rating and forward-looking information. Based on a single financial instrument or a
combination of financial instruments with similar credit risk characteristics, the company compares the risk of
default of financial instruments on the balance sheet date with the risk of default on the initial confirmation date to
determine the change of default risk of financial instruments during their expected duration.
When one or more of the following quantitative and qualitative criteria are triggered, the company believes
that the credit risk of financial instruments has increased significantly:
1) The quantitative standard is mainly that the probability of default for the remaining duration on the
balance sheet date rises by more than a certain proportion compared with the initial confirmation;
2) Qualitative criteria mainly include significant adverse changes in the debtor's operation or financial
situation, changes in existing or expected technology, market, economic or legal environment, and significant
adverse effects on the debtor's repayment ability of the company.
(2) Definition of default and credit impairment assets
When a financial instrument meets one or more of the following conditions, the company defines the
financial asset as having defaulted, and its criteria are consistent with the definition of having incurred credit
impairment:
1) The debtor has major financial difficulties;
2) The debtor violates the binding provisions on the debtor in the contract;
3) The debtor is likely to go bankrupt or undergo other financial restructuring;
4) The creditor gives concessions that the debtor will not make under any other circumstances due to
143
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
economic or contractual considerations related to the debtor's financial difficulties.
2. Measurement of expected credit loss
Key parameters of expected credit loss measurement include default probability, loss given default and
default risk exposure. The company considers the quantitative analysis and forward-looking information of
historical statistical data (such as counterparty rating, guarantee method, collateral type, repayment method, etc.)
to establish default probability, loss given default and default risk exposure models.
3. Please refer to Notes V (I)3, V (I)4, V (I)5 and V (I)7 of these financial statements for details of the
reconciliation statement of the opening balance and closing balance of the financial instrument loss reserve.
4. Credit risk exposure and credit risk concentration
The company's credit risk mainly comes from monetary funds and receivables. In order to control the
above-mentioned related risks, the company has taken the following measures respectively.
(1) Monetary fund
The company deposits bank deposits and other monetary funds in financial institutions with high credit rating,
so its credit risk is low.
(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, 2020, the Company has a
characteristic of specific credit risk concentration. 37.69% (June 30, 2019: 38.08%) 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.
The maximum credit risk exposure the company is subject to is the book value of each financial asset in the
balance sheet.
(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.
Financial liabilities are classified by remaining maturity date
Items Balance in year-end
Book value Undiscounted contract Within 1 year 1-3 years Over 3 years
amount
Short-term loan 197,700,000.00 203,869,044.63 203,869,044.63
Note payable 240,170,034.62 240,170,034.62 240,170,034.62
Account payable 1,334,931,698.36 1,334,931,698.36 1,334,931,698.36
144
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Other account payable 217,709,036.28 217,709,036.28 217,709,036.28
Non-current liability 100,000.00 101,190.14 101,190.14
due within 1 year
Long-term loan 22,400,000.00 23,184,940.14 23,184,940.14
Long-term payable 182,330,000.00 189,722,000.00 29,352,000.00 57,072,000.00 103,298,000.00
[Note]
Subtotal 2,195,340,769.26 2,209,687,944.16 2,026,133,004.02 80,256,940.14 103,298,000.00
(Continued)
Items Balance in year-Beginning
Book value Undiscounted contract Within 1 year 1-3 years Over 3 years
amount
Short-term loan 97,840,187.21 99,448,165.24 99,448,165.24
Note payable 227,961,541.12 227,961,541.12 227,961,541.12
Account payable 1,030,408,716.74 1,030,408,716.74 1,030,408,716.74
Other account payable 82,148,405.19 82,148,405.19 82,148,405.19
Non-current liability 200,319.30 205,283.05 205,283.05
due within 1 year
Long-term loan 22,435,762.23 23,820,343.69 23,820,343.69
Long-term payable 183,554,599.99 190,484,000.00 29,184,000.00 57,396,000.00 103,904,000.00
[Note]
Subtotal 1,644,549,531.78 1,654,476,455.03 1,469,356,111.34 81,216,343.69 103,904,000.00
Note: Special payables are not included.
(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.
Fixed-rate interest-bearing financial instruments expose the Company to fair value interest rate risks, while
floating-rate interest-bearing financial instruments expose the Company to cash flow interest rate risks. The
Company determines the ratio of fixed interest rate to floating interest rate financial instruments according to the
market environment, and maintains an appropriate portfolio of financial instruments through regular review and
monitoring. The cash flow interest rate risk faced by the Company is mainly related to the bank borrowings with
floating interest rates.
As of June 30, 2020, the company's bank borrowings with floating interest rate were RMB 19,000,000.00
145
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
(December 31, 2019: RMB 19,000,000.00). Under the assumption that other variables remain unchanged,
assuming that the interest rate changes by 50 benchmark points, there will be no significant impact on the
company's total profits and shareholders' equity.
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. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fair value
Fair value
Items Fair value measurement measuremen
measurement items Total
items at level 1 t items at
at level 3
level 2
I. Consistent fair value measurement -- -- -- --
（ I ） Transactional financial assets and
1,715,614.62 1,319,715,986.77 1,321,431,601.39
other non-current financial assets
1.Financial assets classified as fair
1,715,614.62 1,319,715,986.77 1,321,431,601.39
value through profit or loss
（1）Financing product 1,232,270,000.00 1,232,270,000.00
（2）Equity instrument investment 1,715,614.62 87,445,986.77 89,161,601.39
(II) Financing receivable 663,430,298.85 663,430,298.85
(III)Other equipment instrument
2,346,283,027.78 2,346,283,027.78
investment
Total assets of consistent fair value
2,347,998,642.40 1,983,146,285.62 4,331,144,928.02
measurement
Total liabilities of consistent fair value
1,715,614.62 1,319,715,986.77 1,321,431,601.39
measurement
II. Non-continuous fair value measurement -- -- -- --
Total assets of inconsistent fair value
measurement
Total liabilities of inconsistent fair value
measurement
146
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The company adopts unadjusted quotations on active markets for the same assets that can be obtained on the
measurement date.
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 3
1. For held short-term wealth management products with floating income and equity instrument investments, the
company adopted valuation techniques for fair value measurement, mainly using a discounted future cash flow
model.
2. Financing of receivables means that the measurement mode held by the company is bills receivable that are
measured at fair value and whose changes are included in other comprehensive income. Cost represents the best es
timate of fair value, so the cost is used to confirm its fair value .
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing
book value of consistent fair value measurement items at level 3
None
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens
among consistent fair value measurement items at different levels
None
7. Changes in the valuation technique in the current period and the reason for change
None
8. Fair value of financial assets and liabilities not measured at fair value
None
9. Other
None
147
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
XII. Related party and related Transaction
1. Information related to parent company of the Company
Name of the parent Shareholding ratio in Voting ratio in the
Registered place Business nature Registered capital
company the Company (%) Company (%)
Hangzhou Steam
Hangzhou China Manufacturing 800 million yuan 63.64% 63.64%
Turbine Group
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of the
Company.
2.Subsidiaries of the enterprise
For details of subsidiaries please go to the statement of equities in other entities.
3. Situation of joint ventures and associated enterprises
For details of joint ventures and associated enterprises please go to the statement of equities in other entities.
4. Other related parties
Name of the related parties Relationship with the Company
Hangzhou Steam turbine Automobile sales service Co., Ltd. Affiliate of the Group
Hangzhou Hangfa Power Generating Equipment Co., Ltd. Affiliate of the Group
Hangzhou Nanhua Wooden Packaging 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 Compressor Co., Ltd. Affiliate of the Group
China Electrical and Mechanical Institute-Hangzhou Turbine Group
Affiliate of the Group
(Hangzhou) United Research Institute Co., Ltd.
Hangzhou Steam Turbine Industry & Trade Co., Ltd. Affiliate of the Group
Greenesol power systems PVT Ltd. Shareholding enterprise
Hangzhou Bank Shareholding enterprise
5.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 Amount of last
Related parties trading limit
transaction period
or not?
period period
148
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Hangzhou Hangfa Generating Equipment 80,787,433.63
Generators 80,787,433.63 No 80,979,594.17
Co., Ltd.
Hangzhou Steam turbine Automobile Transportation , 31,678,281.96
31,678,281.96 No 30,443,515.87
sales service Co., Ltd. repair , etc.
Hangzhou Nanhua Wooden Packaging
Packaging No 7,475,985.95
Co., Ltd.
China Electrical and Mechanical 775,896.30
Institute-Hangzhou Turbine Group
Raw material 775,896.30 No 171,982.76
(Hangzhou) United Research Institute
Co., Ltd.
Hangzhou Steam Turbine Industry & Grind fee, Bagging 7,148,374.71
7,148,374.71 No
Trade Co., Ltd.
Hangzhou Steam Turbine Engineering Raw material, 613,207.55
613,207.55 No 861,320.75
Co., Ltd. Technical service
Subtotal 121,003,194.15 121,003,194.15 119,932,399.50
Related transactions regarding sales of goods or providing of services
In RMB
Same period of
Related parties Subjects of the related transactions Current term
last term
Hangzhou Steam Turbine Engineering Co., Steam Turbine, Compressor, Installation
36,248,770.80 3,209,482.76
Ltd. service
Hangzhou Hangfa Generating Equipment Co., Cast parts
5,135,196.02 3,902,039.33
Ltd.
Greenesol power systems PVT Ltd. Part 114,322.52 315,180.53
Hangzhou Steam Turbine Power Group Co.,
Small amount materials 349.80 1,019.70
Ltd.
Hangzhou Steam Turbine Automobile Sales
Small amount materials 69.52 117.49
Service Co., Ltd.
Subtotal 41,498,708.66 7,427,839.81
(2) Related trusteeship/contract
None
(3) Information of related lease
- The company was lessee：None
The Company was lessee：
149
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
In RMB
Category of leased The lease income confirmed The lease income
Name of lessee
assets in this year confirmed in last year
HSTG House and building 614,470.42 1,693,306.96
Hangzhou Steam Turbine Industry & Trade Co.,
House and building 958,376.15
Ltd.
Hangzhou Steam Turbine Industry & Trade Co.,
Site leasing 153,250.00
Ltd.
Hangzhou Steam Turbine Automobile
Site leasing 1,032,514.68
Sales Service Co., Ltd.
Hangzhou Steam Turbine Automobile
Car rental 21,238.94
Sales Service Co., Ltd.
Subtotal 1,747,335.51 2,725,821.64
（4）Related-party guarantee
The Company was guarantor
In RMB
Execution
Guarantor Guarantee amount Start date End date accomplished or
not
HSTG 208,000,000.00 December 28,2016 December 22,2026 No
The company as guarantor: None
The company and its subsidiaries as guarantors
Guokai Development Fund's investment of 208,000,000.00 yuan to Steam Turbine Heavy Industries Co., Ltd.
shall be repurchased by Hangzhou Steam Turbine Group from 2019. The Fund requires the Company and Steam
Turbine Heavy Industries Co., Ltd. to provide guarantee for The performance of the equity obligation of the
transferred shares by Hangzhou Steam Turbine Group. The company mortgaged to the Development Fund the
45.08 million shares of Hangzhou Bank Co., Ltd. with a carrying value of 389,040,400.00 yuan and dividends
receivable of 43,605,292.60 yuan, and the land use right with a carrying value of 64,445,939.27 yuan, the fixed
assets with a carrying value of 39,920,071.94 yuan and the on-going projects with a carrying value of
619,207,141.72 yuan held by Steamboat Heavy Industry.
(5) Inter-bank lending of capital of related parties
None
（6）Related party asset transfer and debt restructuring
In RMB
150
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Related party Content Current term Same period of last term
Hangzhou Steam Turbine Automobile Sales Service
Purchase fixed assets 225,663.72 131,110.93
Co., Ltd.
（7） Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 4,221,118.60 4,302,268.00
(8) Other related transactions
(1) Service and power supply
1）HSTG supplies water and power to the Company and some of the subsidiaries amounted to RMB 5521043.12
this period.
2) Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. provided transportation to the Company’s
employees and RMB 1050284 was paid this period.
3) Hangzhou Steam Turbine Industry & Trade Co., Ltd. provides garbage clearance services for the company.
RMB 14,971.70 is paid in this regard for the current period.
4) Hangzhou Steam Turbine Industry & Trade Co., Ltd. provides site management services for the company. RMB
1,480,71.32 is paid in this regard for the current period.
(2) Expenses paid on behalf the Company
During the current period, Hangzhou Steam Turbine Group advanced the payment of RMB 541001.76 salaries
for the company.
(3) Bank credit and entrusted wealth-management
1) The Company applied for a line of credit of RMB 300 million to Shiqiao Sub-branch, Bank of Hangzhou Co.,
Ltd. and till June 30,2020, the balance of loan under the line of credit was still RMB 0.
2) The Company entered into a financial management agent contract with Bank of Hangzhou Co., Ltd. in the
cumulative amount of financial management of RMB 550,000,000.00 and till June 30.ber 31, 2020, the balance of
the financial management was RMB500,000,000.00.
3)The company applied to Hangzhou Bank Co., Ltd. for bill discount in the current period, with an
accumulated discount amount of39,345,163.903 yuan, and a discount interest of 374,762.69 yuan.
6. Receivables and payables of related parties
（1）Receivables
In RMB
151
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
End of term Beginning of term
Name Related party
Book balance Bad debt provision Book balance Bad debt provision
Hangzhou Steam Turbine Engineering
Note receivable 2,000,000.00 3,000,000.00
Co., Ltd.
Hangzhou Hangfa Generating Equipment
16,780,000.00 3,000,000.00
Co., Ltd.
Subtotal 18,780,000.00 0.00 6,000,000.00
Account Hangzhou Steam Turbine Engineering
58,039,265.88 16,739,207.31 44,581,617.41 14,738,525.53
receivable Co., Ltd.
Hangzhou Hangfa Generating Equipment
16,080,958.86 1,150,365.12 17,554,187.37 1,502,203.97
Co., Ltd.
GreenesolpowersystemsPVTLtd. 14,761,176.40 14,761,176.40 14,761,176.40 14,761,176.40
Hangzhou Steam Turbine Power Group
158,500.00 158,500.00 158,936.29 158,521.81
Co., Ltd.
Hangzhou Steam Turbine Compressor
59,000.00 47,200.00 59,000.00 47,200.00
Co., Ltd’
Subtotal 89,098,901.14 20,012,241.78 77,114,917.47 31,207,627.71
Contract Hangzhou Hangfa Generating Equipment
3,696,000.00 3,020,960.00
liability Co., Ltd.
Hangzhou Steam Turbine Engineering
670,000.00
Co., Ltd.
Subtotal 4,366,000.00 0.00 3,020,960.00
Other account Hangzhou Steam Turbine Compressor
receivable Co., Ltd.
Hangzhou Steam Turbine Power Group
78,221.03 13,687.39
Co., Ltd.
Hangzhou Steam Turbine Industry &
27,841.00 1,392.05
Trade Co., Ltd.
Hangzhou Steam Turbine Automobile
24,120.00 1,206.00
Sales Service Co., Ltd.
Subtotal 51,961.00 2,598.05 78,221.03 13,687.39
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Note payable Hangzhou Hangfa Generating Equipment Co., 7,000,000.00 6,810,000.00
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Ltd.
Hangzhou Steam Turbine Industry & Trade Co.,
300,000.00
Ltd.
Hangzhou Steam Turbine Automobile Sales
135,000.00 195,000.00
Service Co., Ltd.
Subtotal 7,135,000.00 7,305,000.00
Hangzhou Hangfa Generating Equipment Co.,
Account payable 127,709,355.52 81,467,799.85
Ltd.
Hangzhou Steam Turbine Automobile Sales
23,530,484.71 16,258,569.66
Service Co., Ltd
Hangzhou Steam Turbine Industry & Trade Co.,
1,238,188.83 4,249,563.88
Ltd.
Hangzhou Steam Turbine Engineering Co., Ltd. 1,769,000.00 2,955,000.00
Greeneso l power systems PVTLtd. 2,037,880.52 2,008,144.93
HSTG 6,581,873.05 886,447.75
Zhejiang Zhongrun Gas turbine technology Co.,
292,907.12 555,637.12
Ltd.
China Electrical and Mechanical
Institute-Hangzhou Turbine Group (Hangzhou) 509,984.82 120,209.00
United Research Institute Co., Ltd.
Subtotal 163,669,674.57 108,501,372.19
Contract liability Hangzhou Steam Turbine Compressor Co., Ltd. 12,760,000.00 12,760,000.00
Hangzhou Steam Turbine Industry & Trade Co.,
21,007,300.00 12,024,769.03
Ltd.
Hangzhou Steam Turbine Power Group 3,618,000.00 3,618,000.00
Greeneso l power systems PVTLtd.
Subtotal 37,385,300.00 28,402,769.03
Other account Hangzhou Steam Turbine Automobile Sales
100,000.00 100,000.00
payable Service Co., Ltd
HSTG 777,633.82 47,114.51
Subtotal 877,633.82 147,114.51
7. Related party commitment
None
8.Other
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
XIII. Stock payment
1. The Stock payment overall situation
Not applicable
2. The Stock payment settled by equity
Not applicable
3. The Stock payment settled by cash
Not applicable
4. Modification and termination of the stock payment
5.Other
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
2. Contingency
(1) Significant contingency at balance sheet date
Litigation matters
(1) On September 5, 2018, due to tort liability, Henan Junhua Development Co., Ltd. sued the ompany and
Xi'an Shangu Power Co., Ltd. in Zhumadian Intermediate People's Court of Henan Province. On May 22, 2019,
the Intermediate People's Court of Zhumadian City in Henan Province ruled against the Company, involving a
compensation amount of 32.225 million yuan. The Company appealed to Henan Higher People's Court. On April
30, 2020, the Higher People's Court of Henan Province ruled that it should be sent back for retrial and the
first-instance judgment should be revoked.
(2) In 2013, the subsidiary Turbine Company of the Company and Sinosteel Equipment Co., Ltd
(hereinafter referred to as Sinosteel Equipment) signed the Supply Contract for M251S Gas Turbine Generator
Unit, while the Company also signed a corresponding supply contract with the Turbine Company. In April 2019,
the Company sued its subsidiary Turbine Company, requesting to cancel the above-mentioned supply contract and
compensate the Company for its losses. On June 30, 2020, Hangzhou Intermediate People's Court ruled that
Zhejiang Turbine Import and Export Trade Co., Ltd. would compensate the Company for the loss of 100 million
154
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
yuan.
（2）The Company have no significant contingency to disclose, also should be stated
None
3.Other
XV. Events after balance sheet date
As of July 31, 2020, the company repurchased 12,489,446 shares through the special securities account of share repurchase through
centralized bidding, accounting for 1.66% of the company's current total share capital. The highest transaction price was HK $8.52 /
share, while the lowest transaction price was HK $7.22 / share, and the total transaction amount was HK $99,687,219.93.
XVI. Other significant events
1. The accounting errors correction in previous period
None
2. Debt restructuring
None
3. Replacement of assets
None
4. Pension plan
None
5. Discontinuing operation
None
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
None
(2) The financial information of reportable segment
None
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
The Company's business is relatively simple, mainly for the production and sale of steam turbines, gas turbines
and their auxiliaries and accessories. The management regards this business as a whole to implement management
and evaluate operating results, so there is no reporting division. The main business income and main business cost
of the Company by product classification are as follows:
Item Main business income Main business cost
Industry steam turbine
1,445,493,683.04 1,015,618,424.48
Casting
78,346,262.00 59,318,994.79
Auxillaries
182,399,905.43 137,918,096.69
Complete set of waste heat power
station 49,710,081.27 47,943,557.79
Spare parts
183,273,753.92 87,394,956.39
Other
74,882,433.15 34,837,302.93
Subtotal
2,014,106,118.81 1,383,031,333.07
(4) Other notes
None
7. Other important transactions and events have an impact on investors’ decision-making
None
8. Other
None
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
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
% % % %
Including
Accrual of bad debt
provision by 2,240,981,224.05 100.00% 858,554,256.66 38.31% 1,382,426,967.39 2,275,968,563.22 100.00% 805,743,954.26 35.40% 1,470,224,608.96
portfolio
Including：
Total 2,240,981,224.05 100.00% 858,554,256.66 38.31% 1,382,426,967.39 2,275,968,563.22 100.00% 805,743,954.26 35.40% 1,470,224,608.96
Accrual of bad debt provision by portfolio: 858,554,256.66
In RMB
End of term
Name
Book balance Bad debt provision Proportion
Associated transaction portfolio
within the scope of consolidated 80,158,034.22
financial statement
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Aging portfolio 2,160,823,189.83 858,554,256.66 39.73%
Total 2,240,981,224.05 858,554,256.66 --
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
Bad debt provision
Disclosure by aging
In RMB
Aging End of term
Within 1 year（Including 1 year） 610,300,245.80
1-2 years 537,579,114.36
2-3 years 283,861,228.55
Over 3 years 809,240,635.34
3-4 years 164,746,625.04
4-5 years 134,792,614.38
Over 5 years 509,701,395.92
Total 2,240,981,224.05
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Reversed or
Category Opening balance Write- Othe Closing balance
Accrual collected
off
amount r
Accrual of bad debt provision
805,743,954.26 52,810,302.40 858,554,256.66
by portfolio
Total 805,743,954.26 52,810,302.40 858,554,256.66
(3) The actual write-off accounts receivable
None
（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Client 1 673,249,693.90 30.05% 289,237,299.47
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Client 2 214,257,848.80 9.56% 146,657,818.26
Client 3 98,165,919.28 4.38% 6,337,797.96
Client 4 55,789,769.23 2.49% 9,188,932.39
Client 5 51,344,018.00 2.29% 51,344,018.00
Total 1,092,807,249.21 48.77%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
2. Other account receivable
In RMB
Nature End of term Beginning of term
Dividend receivable 122,983,614.70 27,827,292.60
Other 4,058,901.01 3,240,396.20
Total 127,042,515.71 31,067,688.80
（1）Interest receivable ：None
（2）Dividend receivable
（1）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 122,983,614.70 27,827,292.60
Total 122,983,614.70 27,827,292.60
2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Hangzhou Bank 27,827,292.60 1-4 years Equity pledge
Total 27,827,292.60 -- -- --
3）Provision for bad debts
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Not applicable
（3） Other accounts receivable
(1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 7,718,787.84 6,599,993.65
Provisional payment receivable 571,087.08 473,078.04
Other 253,663.60 1,079,186.43
Total 8,543,538.52 8,152,258.12
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for the
Bad Debt Reserves Expected credit loss over life Total
losses over the entire duration (credit
(no credit impairment)
next 12 months impairment occurred)
Balance as at January 1, 2020 122,993.39 29,895.89 4,758,972.64 4,911,861.92
Balance as at January 1, 2020 in
—— —— —— ——
current
——Transfer to stage II -45,884.20 45,884.20 0.00
——Transfer to stage III -35,024.70 35,024.70 0.00
——Transfer to stage II 0.00
——Transfer to stage I 86,397.06 -14,298.84 -499,322.63 -427,224.41
Balance as at June 30, 2020 163,506.25 26,456.55 4,294,674.71 4,484,637.51
Loss provision changes in current period, change in book balance with significant amount
Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 3,841,212.00
1-2 years 264,565.50
2-3 years 149,763.58
Over 3 years 4,287,997.44
3-4 years 6,004.00
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
4-5 years 179,251.00
Over 5 years 4,102,742.44
Total 8,543,538.52
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off Other
collected amount
Other receivables with -427,224.41
provision for bad debts
4,911,861.92 4,484,637.51
based on credit risk
characteristics
Total 4,911,861.92 -427,224.41 4,484,637.51
4) The actual write-off accounts receivable
None
(5) Top 5 of the closing balance of Other accounts receivable
In RMB
Account Percentage in total Bad debt
Name of the company Book balance Age
property other receivable % provision
Deposit in
Over 5
Shanghai Customs Waigaoqiao Office 3,710,320.94 3,710,320.94
custom years
43.43%
Deposit in
Nantong Jiaxing Thermal Power Co., Ltd. 500,000.00 1 year 25,000.00
custom
5.85%
Zhejiang City Construction Gas Thermal Deposit in
300,000.00 1 year 15,000.00
custom
Power Design Institute 3.51%
Deposit in
Huadian Tendering Co., Ltd. 300,000.00 1 year 15,000.00
custom
3.51%
China Electric Power Complete Equipment Deposit in
300,000.00 1 year 15,000.00
custom
Co., Ltd. 3.51%
162
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
59.82%
Total -- 5,110,320.94 -- 3,780,320.94
（6）Account receivable involving government subsidies
None
（7）Other account receivable derecognized due to the transfer of financial assets
None
（8）Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement.
None
3. Long-term share equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investments in
subsidiaries 886,732,321.62 886,732,321.62 886,732,321.62 886,732,321.62
Investments in
associates and 10,301,679.79 944,417.34 10,301,679.79 11,246,097.13 11,246,097.13
joint ventures
Total 897,034,001.41 944,417.34 897,034,001.41 897,978,418.75 897,978,418.75
（1） Investments in subsidiaries
In RMB
Increase /decrease Closing
Company Withdrawn balance of
Beginning of term Add Decreased Closing balance
invested in impairment Other impairment
investment investment
provision provision
Turbine
20,000,000.00 20,000,000.00
Company
Hangzhou
Heavy 743,812,943.59 743,812,943.59
Industry
Hangzhou
46,286,513.41 46,286,513.41
Auxiliary
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
Machine Co.
Zhejiang
Turbine 29,800,389.56 29,800,389.56
Packaged Co.
Zhongneng
27,644,475.06 27,644,475.06
Co.
Machinery Co. 7,968,000.00 7,968,000.00
Casting Co. 11,220,000.00 11,220,000.00
Total 886,732,321.62 886,732,321.62
（2）Investments in associates and joint ventures
In RMB
Increase /decrease in reporting period
Adjustm Withdra
Closing
Decre ent of Other Declaration wn
Opening Add Closing balance of
Name ased Gain/loss of other equity of cash impairm
balance investme Other balance impairment
invest Investment compreh change dividends or ent
nt provision
ment ensive s profit provisio
income n
I. Joint ventures
II. Associated enterprises
Zhejiang
Ranchuang
Turbine 11,246,097.13 -944,417.34 10,301,679.79
Machinery Co.,
Ltd.
Subtotal 11,246,097.13 -944,417.34 10,301,679.79
Total 11,246,097.13 -944,417.34 10,301,679.79
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main business 1,143,805,459.09 788,681,371.84 1,195,173,183.58 864,005,383.66
Other 4,907,113.55 3,076,640.04 6,260,548.65 4,687,385.77
Total 1,148,712,572.64 791,758,011.88 1,201,433,732.23 868,692,769.43
Information related to performance obligations:
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
The Company’s sales segment has entered into legal and effective sales contracts/orders with the customers. The
contract/order clarifies the terms of the subject product, specification and model, transaction quantity, unit price,
settlement method, delivery obligation, etc. The performance obligation is clear, and it is a single performance
obligationat a single time point. The Company's various product contracts/orders have clear transaction prices, and
the Company will confirm revenue after fulfilling the relevant performance obligations in accordance with the
contract/order related agreements.
Information related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performed
incompletely but the contract has been signed at the end of the reporting period is RMB4,108,390,000.00
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment income by Cost method 120,936,840.00 61,041,210.00
Investment income from disposal of Long-term equity investment -944,417.34
It is classified as the investment income during the holding period
of financial assets measured at fair value and recorded into the 1,320,462.15
current profit and loss
Disposal is classified as investment income of financial assets
15,814,351.26 22,218,266.55
measured at fair value and recorded into current profit and loss
Dividend income from other equity instrument investments
95,156,322.10 67,968,801.50
during the holding period
Total 230,963,096.02 152,548,740.20
6.Other
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/losses from the disposal of non-current asset -148,212.10
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 55,716,643.40
governmental subsidy according to the unified national standard）
Gain/loss from debt reorganization -115,229.71
In addition to normal business with the company effective hedging related business,
22,861,806.76
holders of tradable financial assets, transactions and financial liabilities arising from
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
changes in fair value gains and losses, as well as the disposal of trading of financial assets,
trading financial liabilities and available-for-sale financial assets gains return on investment
Other non-business income and expenditures other than the above 2,547,807.55
Less: Influenced amount of income tax 12,626,321.11
Amount of influence of minority interests 2,836,377.87
Total 65,400,116.92 --
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 average EPS（Yuan/share）
Profit as of reporting period
ROE (%) EPS-basic EPS-diluted
Net profit attributable to common
3.53% 0.31 0.31
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
2.53% 0.22 0.22
deduction of non-recurring profit
and loss
166
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2020
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards
Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards
Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign
institutions
4.Other
XII. Documents available for inspection
(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 7th Meeting of the 8th Term of Board.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 27, 2020
167
