Stock Code:20077 Hangqilun B Announcement No.:2021-27
Hangzhou Steam Turbine Co., Ltd.
Report of the Supervisory Committee of 2020
In 2020, the Supervisory Committee had been performing its duties according to the Company Law,
Securities Law, the Articles of Association, and Meeting Criteria of Supervisory Committee.
Inspections were conducted regularly on the Company’s business operation, financial position, and
operation of the Board and executives, aimed at guarding the legal benefits of the shareholders, the
Company, and employees, and promote healthy development of the Company.
I. Meeting and examinations in the report period
In the report period, the Committee had held 3 regular or provisional meetings. A number of issues
were inspected and examined, including the periodic reports, financial reports, dividend plans,
introspection reports, Changes in accounting policies and amendments to articles of association, The
election of the board of supervisors, Impairment of assets and asset write off.
Fulfilling of duties of the Supervisory Committee
No. of meeting Date of meeting Titles of proposals
1. Work Report of the Supervisory Committee 2019 ；
2. Annual Report 2019 and Summary；
The 3rd meeting of the 8th 3. The Financial Report 2019；
April 22,2020
term of Supervisory 4. . The Dividend Plan 2019 ；
5. The Internal Control Introspection Report 2019；
6. The Proposal on Changes in Accounting Policies;
7.The Full Text and Official Text of the First Quarter Report 2020.
The 4th meeting of the 8th 1.The semi-annual report 2020 and the Summary
August 27,2020
2. The Proposal on Revising the Company’s Article of Association
term of Supervisory
The 5th meeting of the 8th
October 28,2020 The Full Text and Official Text of the Third Quarter Report 2020
term of Supervisory
II. Presenting of board meetings and shareholders’ meetings
The Committee presented 7 board meetings and 2 shareholders’ meeting during the report period.
Through participating of these meetings, the Committee acquired information about the Company’s
decision-making process and business management. Communications were made effectively with the
shareholders, directors, and executives. Flaws in operation were discovered on time. The supervisors
were exercising their duties at the meetings and performed inspection on decision-making processes
and risk-control approaches.
III. Fulfilling of duties in the report period
In 2020, the Committee performed inspections on the following aspects in viewing of legal operation
and good economic efficiency.
1. Supervising on the business operation: The Supervisors participated in the meetings of the Board
and supervised the main decision-making procedures; verified the execution of resolutions of the
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shareholders’ meeting and board meetings, as well as the major investment plans and related
transactions. The Committee also provided corresponding opinions and suggestions on the business
operation of the Company.
2. Inspection on financial activities: Inspection on business operation and financial position is the
key work of the Committee. The Committee urged the Company to improve its accounting system
and internal control system according to the Accounting Law and new accounting standard, and
thereafter supervised the change of accounting policies; supervised the processes of accounting
works; improvement opinions were provided according to the laws and regulations.
3. Supervising the executives: to perform effective supervising over the performances of the directors
and executives of the Company, the Supervisory Committee urged them to study the laws and
regulations to upgrade their sense of legal operation, therefore ensure legal operation of the Company.
All of the directors, supervisors, and executives were acting according to the law without being
punished by any department.
4. Supervising on inside information managementThe Company revised the Information Insider
Registration and Administration Rules according to the regulations of CSRC and SSE. Information
Insider Files were established covering all of the directors, supervisors, executives and other insiders,
and filed to SSE. This was for the effectiveness of confidential works and information disclosure. No
illegal trade was found with the aforesaid personnel in the report period.
IV. Summary of the Committee’s opinion on particular issues
In the report period, the Committee had issued opinions on the periodic reports, introspective report
on internal control and Changes in Accounting Policies with regard to the regulations and duties of the
Committee. Specific as follows：
1. Opinions on the periodic reports of the company
The Board of Supervisors believes that the procedures for the preparation and review of the Annual
Report of 2019, the First Quarter Report of 2020, the Semi-annual Report of 2020 and the Third
Quarter Report of 2020 of the Company by the Board of Directors comply with laws, administrative
regulations and the provisions of the China Securities Regulatory Commission, and the contents of
the reports truly, accurately and completely reflect the actual situation of listed companies, with no
false records, misleading statements or major omissions.
2. Opinions on the internal control self-evaluation report of the company
The Internal Control Introspection Report 2019 was reflecting the operation of the internal control
system objectively, frankly, and completely.
3 .Opinions on Changes in Accounting Policies
The Board of Supervisors considered that: this accounting policy change is a reasonable change and
adjustment according to the regulations promulgated by the Ministry of Finance, the implementation
of accounting policy changes can objectively and fairly reflect the Company's financial status and
operating results; the relevant decision-making procedures are in compliance with relevant laws and
regulations and the Company’s Articles of Association, with that there is no situation jeopardizing the
interests of the Company and its shareholders. The company's board of supervisors agreed to this
accounting policy change.
The Supervisory Committee of Hangzhou Steam Turbine Co., Ltd.
April 17.2021
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