Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. :2021-77
Hangzhou Steam Turbine Co., Ltd.
The Semi-Annual Report 2021
（Stock Code：200771）
August ,2021
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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, The Company leader,Mr. Zhao Jiamao, Person in charge of accounting and Mr. Jin Can, Person in
charge of Accounting institute（accountant in charge)hereby confirm that the financial Report of Semi-Annual
Report 2021 is authentic, accurate and complete.
All the directors attended the board meeting for the review of this Report.
This Report contains prospective descriptions, which doesn’t constitute substantial commitment to investors.
Investors are requested to be aware of the risks attached to their investment decisions.
The company has detailed the possible risks in this report, please refer to the possible risk factors that
the company may face in the "Risks facing the Company and countermeasures " in the Section III
"Management Discussion & Analysis" .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. The Semi-Annual Report 2021
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Company Profile & Financial Highlights.
III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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 Meeting of Board.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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.
State-owned Assets Supervision and Administration Commission of
Hangzhou SASAC Refers to
Hangzhou Municipal People's Government
Hangzhou Capital Refers to Hangzhou State-owned Capital Investment and Operation Co., Ltd.
The report period, the current period, the
Refers to January 1 – June 30 2021
current year
Zhongneng Co. Refers to Hangzhou Zhongneng Steam Turbine Power Co., Ltd.
Casting Co. Refers to Hangzhou Steam Turbine Casting Co., Ltd.
Packaged Tech. Co. Refers to Zhejiang Steam Turbine Packaged Technology Development Co., Ltd.
Machinery Co. Refers to Hangzhou Steam Turbine Machinery Equipment Co., Ltd.
Auxiliary Machine Co. Refers to Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd.
Turbine Co. Refers to Zhejiang Turbine Import & Export Co., Ltd.
Heavy Industry Co. Refers to Hangzhou Steam Turbine Heavy Industry Co., Ltd.
Zhongrun Company Refers to Zhejiang Zhongrun Gas Turbine technology Co., Ltd.
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
MES Refers to Manufacturing execution system
ERP Refers to Enterprise Resources Planning
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
II. Company Profile & Financial Highlights.
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 Chinese 杭汽轮
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.1188, Dongxin Road, Hangzhou , Zhejiang No.1188, Dongxin Road, Hangzhou , Zhejiang
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 2020.
√ Applicable □ Not applicable
No.1 Buidling, 608 Kangxin Road, Yuhang Economic & Technological
Reg. Add.
Development Zone, Hangzhou, Zhejiang
Post Code 311106
Office address No.1188, Dongxin Road, Hangzhou , Zhejiang
Post Code: 310022
Web Address www.htc.cn
Email. lgw@htc.cn
2. Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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 2020.
IV. Summary of Accounting Data and Financial Index
Are there any retrospective adjustment or restatement of financial information of previous year
□ Yes √No
Same period last Increase/decrease
This report term
year (%)
Turnover (yuan) 2,966,020,451.07 2,021,667,426.27 46.71%
Net profit attributable to shareholders of the listed company
425,641,416.95 230,908,137.72 84.33%
(yuan)
Net profit attributable to the shareholders of the listed
258,513,133.28 165,508,020.80 56.19%
company and after deducting of non-recurring gain/loss(yuan)
Net Cash flow generated by business operation (yuan) 177,081,012.71 326,964,692.03 -45.84%
Basic earnings per share (Yuan/share) 0.58 0.31 87.10%
Diluted earnings per share (Yuan/share) 0.58 0.31 87.10%
Net income on asset, weighted 5.19% 3.53% 1.66%
As at the end of the As at the end of last
YoY+/-（%）
reporting period year
Gross assets (yuan) 15,541,038,818.73 15,392,653,924.41 0.96%
Shareholders’ equity attributable to shareholders of the listed
8,307,349,990.32 8,104,788,941.36 2.50%
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
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part for which assets impairment
-73,072,277.48
provision is made)
Tax refund, deduction and exemption that is examined and approved by authority exceeding or has 0.00
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
no official approval document.
Governmental Subsidy accounted as current gain/loss, except for those subsidies at with amount or
87,541,784.25
quantity fixed by the national government and closely related to the Company’s business operation.
Capital occupation charges on non-financial enterprises that are recorded into current gains and
0.00
losses
Gains due to that the investment costs for the Company to obtain subsidiaries, associates and joint
ventures are lower than the enjoyable fair value of the identifiable net assets of the investees when 0.00
making the investments
Gain/loss on non-monetary asset swap 0.00
Gain/loss on entrusting others with investments or asset management 0.00
Asset impairment provisions due acts of God such as natural disasters 0.00
Gains/losses of debt restructure 0.00
Reorganization expenses, such as expenditure for allocation of employees and integration fee 0.00
Gains/losses exceeding the fair value arising from transactions with obviously unfair prices 0.00
Net gain and loss of the subsidiary under the common control and produced from enterprise
0.00
consolidation from the beginning of the period to the consolidation date
Gain and loss arising from contingent matters irrelevant with the Company’s normal operation
0.00
business
Gain and loss from change of the fair value arising from transactional monetary assets,
transactional financial liabilities as held as well as the investment income arising from disposal of
71,421,557.92
the transactional monetary assets, transactional financial liabilities and financial assets available for
sale excluding the effective hedging transaction in connection with the Company’s normal business
Reverse of the provision for impairment of accounts receivable undergoing impairment test
0.00
individually
Gain/loss from external entrusted loan 0.00
Gain and loss arising from change in the fair value of the investment based real estate measure
0.00
afterwards by means of fair value model
Influence upon the current gains and losses from the once-and –for –all adjustment over the current
0.00
gains and losses according to the taxation and accounting laws and regulations
Income from custodian charge obtained from entrusted operation 0.00
Operating income and expenses other than the aforesaid items 111,817,601.21
Less: Influenced amount of income tax 30,157,870.60
Amount of influence of minority interests（After tax） 422,511.63
Total 167,128,283.67 --
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
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. The Semi-Annual Report 2021
III. Management Discussion & Analysis
I. Main Business the Company is Engaged in During the Report Period
(I) Company business
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 cooperated with Siemens on SGT-800, an advanced natural gas turbine
with high efficiency, high reliability and low emission, to enter the field of natural gas distributed energy, with its
models gradually expanded to SGT300, SGT700 and SGT2000E. As the general supplier of Siemens gas turbine
in China, the company has carried out gas turbine business from two aspects of project procurement and
integrated implementation, and has the ability of selecting combined cycle projects for distributed energy, has
established the complete system supporting standards and material systems, and can complete the independent
processing and supporting work of equipment other than the gas turbine itself. 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 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, our company is mainly benefited from the following
factors in terms of the elements driving our business performance:
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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, According to different customers' needs, it has further consolidated the
original market position and broadened the market share in new fields through precise matching and precise
policies.
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, 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) Operating conditions during the reporting period
During the reporting period, focused on the annual work policy of "digital empowerment, transformation and
upgrading, strengthening enterprises by talents and high quality development", while continuing to well ensure
epidemic prevention and control, the company steadily restored the production capacity of the manufacturing
base and fully guaranteed the contract delivery; solidly promoted the R&D of technology and made first-class
products with the spirit of artisans; explored the construction of key customer marketing management system to
maintain market competitive advantage; planned and promoted the "14th Five-Year Plan", and opened up the
road of transformation and upgrading and high-quality development.
In the first half of 2021, the company realized operating income of 2,966.0205 million yuan, total profit of
544.2381 million yuan and net profit of 474.4713 million yuan, of which net profit attributable to shareholders of
listed companies was 425.6414 million yuan. Compared with the same period of last year, the operating income
increased by 46.71% year on year, total profit increased by 81.51% year on year, net profit increased by 76.19%
year on year, and net profit attributable to shareholders of listed companies increased by 84.33% year on year.
Good results have been achieved.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
1. Digital empowerment
The company actively promoted the construction of data analysis center, and comprehensively improved the
enterprise data analysis and management capabilities. It continuously optimized MES system to help refine
production management. It further promoted the ERP construction, and determined the ERP selection scheme
according to the characteristics of the company's "tailor-made" single piece and small batch production. It
completed the blueprint of digital factory construction in manufacturing base, completed the preliminary plan of
digital factory construction through demand investigation, and put the industrial internet platform and service
management platform into trial operation.
2. Transformation and upgrading
The company improved the basic framework and path of the key account management system, formulated
the strategic plan for the comprehensive transformation of marketing business for "key account & big service",
started the customer training module, maintained the technical reserve and core customers in the energy-driven
field, strengthened the mutual promotion and progress between the steam turbine plate and the gas turbine plate,
helped the marketing with the establishment of the key account management system, output comprehensive and
professional overall solutions to users, and maintained the market competitive advantage.
3. Market consolidation
During the reporting period, the domestic driving sector contract was well undertaken. Typical projects
include Ningxia Baofeng Phase III Coal-to-Methanol Project, Sinopec Baling Petrochemical Caprolactam Project,
and Sinopec Anqing Petrochemical Refining-to-Chemical Supporting Project; The contracts undertaken in the
power generation field have increased compared with that during the same period last year, and the company has
successively obtained the Smart Energy Center Project of Borui Energy Yiwu High-tech Zone, Jiahua Energy
50MW Back Pressure Power Generation Project, and Pengwei Petrochemical LP Waste Heat Power Generation
Project, etc.; The gas turbine market is gradually improving, and in the first half of the year, Huadian Jiangdu Gas
Turbine Project was successfully signed, and Haining Guangyao Project contract came into effect. However,
affected by the "double carbon" target, the company's target market situation still remained uncertain.
4. Strengthening enterprises by talents
During the reporting period, the company completed the evaluation of eight "company-level skill master
studios" such as "Leaf Installation Skill Master Studio", gave full play to the positive role of high-skilled talents in
technological innovation, skill inheritance and grassroots management; completed Hangzhou Turbine's special
talent development plan and laid the foundation for building a talent team with sufficient quantity, complete
categories, reasonable structure and excellent quality. It actively explored the implementation of the equity
incentive plan and made great progress, which would further establish and improve the company's long-term
incentive mechanism to attract and retain outstanding talents.
5. High quality development
During the reporting period, the company further improved its governance structure, explored the
transformation of its operating mechanism, and focused on the competitiveness of its main business; deepened the
"lean production" and constantly improved the "lean production" evaluation system; completed and accepted 16
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
key scientific research projects, completed the new type 3.6 twist blade group development and key process issues
of subcritical units, and continuously promoted the development of supercritical carbon dioxide turbine project.
The company's "R&D and Application of Key Technologies for High Efficiency and High Reliability Blade of
Industrial Steam Turbine" won the first prize of provincial scientific and technological progress, "The Last Blade
of LP Group of Large Flow Air-cooled Steam Turbine" won the Chinese Patent Excellence Award, and "1.5
million tons/year Industrial Steam Turbine for Driving Ethylene Plant" won the title of the first International (set
of) equipment in Zhejiang Manufacturing.
II. Analysis On core Competitiveness
Firstly. 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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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.
III.Main business analysis
Found more in”I. Main businesses of the Company in the reporting period”
Changes in the financial data
In RMB
YOY
Same period last
This report period change Cause change
year
（%）
It is mainly because the sales in the same period of last year were
affected by the "COVID-19" pandemic, the business situation in
Turnover 2,966,020,451.07 2,021,667,426.27 46.71%
the current period basically recovered, and the sales revenue
increased substantially year on yea
Mainly because with the growth of sales revenue, the cost
Operating cost 2,158,596,271.56 1,411,473,466.88 52.93%
increases accordingly..
It is mainly because the current travel expenses and hospitality
Sale expenses 76,767,307.50 60,320,227.44 27.27% expenses for business recovery increased year on year due to the
impact of the "COVID-19" pandemic in the same period last year.
It is mainly the employee salary growth due to performance
Administrative
329,940,741.71 261,099,800.18 26.37% growth; In the same period of last year, it was entitled to social
expenses
security relief due to the "pandemic".
It is mainly because the interest income was higher than that of the
Financial expenses -7,070,093.22 -19,214,436.12 63.20% current period due to the large amount of time deposit interest
recorded in the same period last year.
It is mainly because of the corresponding increase in income tax
Income tax expenses 69,766,786.53 30,545,431.68 128.40%
due to the increase in total profit.
R & D Investment 173,503,554.69 103,228,915.93 68.08% It is mainly due to the increase of newly developed model projects.
Cash flow generated
It is mainly due to the year-on-year increase of various taxes and
by business 177,081,012.71 326,964,692.03 -45.84%
fees paid in the current period and cash paid for employees.
operation, net
It is mainly due to the year-on-year decrease in the net purchase of
Net cash flow
wealth management products in the current period; In the current
generated by -119,079,701.71 -459,136,704.20 74.06%
period, it received dividend income from Hangzhou Bank, which
investment
was received in July last year.
Net cash flow It is mainly due to the year-on-year decrease in net bank loans in
generated by -419,503,802.62 -58,479,245.83 -617.36% the current period; Cash dividends are distributed in the current
financing period, and this expenditure was paid in July last year; In the
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
current period, the investment amount returned to CDB
Development Fund Co., Ltd. is RMB 155 million.
Net increasing of
It is mainly due to the decrease in net cash flow from operating
cash and cash -364,742,859.24 -183,903,994.56 -98.33%
activities and financing activities in the current period
equivalents
Business tax and It is mainly due to the increase in sales gross profit and the
14,472,540.93 10,846,939.80 33.43%
surcharge increase in VAT payable YOY.
Impairment loss of
5,641,961.36 10,855,928.32 -48.03% It is mainly due to reversal of impairment loss of contract assets.
assets
It is mainly because the collection period of accounts receivable
increased due to the impact of the "COVID-19" pandemic in the
Credit impairment
17,027,776.46 -80,718,669.70 121.10% same period last year, the collection in the current period was
loss
obviously better than that in the previous period, and bad debts
were withdrawn.
Changing income of It is mainly due to the change in fair value of the shares held in the
-1,796,914.44 -597,375.82 -200.80%
fair value current period.
It is mainly due to the convertible bond investment income of
Investment gain 158,196,305.47 118,388,068.47 33.63%
Hangzhou Bank recognized in the current period.
It is mainly due to the relocation compensation income confirmed
Other income 106,608,553.64 55,716,643.40 91.34%
by asset transfer in the current period.
It is mainly due to the termination of the gas turbine contract of
Non-operational
118,723,722.62 6,216,124.18 1,809.93% Huoqiu project with Sinosteel Equipment Co., Ltd., with a
income
recognized loss compensation of RMB 109 million.
Non -operational It is mainly due to the relocation compensation income confirmed
79,947,694.04 4,178,810.71 1,813.17%
expenses by asset transfer in the current period.
It is mainly the sales in the current period operating basically
returned to normal while that was affected due to the "pandemic"
in the same period of last year, and the sales gross profit increased
Total profit 544,238,087.83 299,841,472.57 81.51%
year-on-year; Compensation for contract losses with Huoqiu
Project of Sinosteel Equipment Co., Ltd. is confirmed in the
current period.
It is mainly because the wealth management products increased at
the end of this period, cash dividends were paid in the current
Monetary fund 1,453,242,706.35 1,829,481,187.49 -20.57%
period, In the current period, the investment amount returned to
CDB Development Fund Co., Ltd. is RMB 155 million.
It is mainly due to the increase in the current collection compared
Note receivable 176,809,390.23 118,107,076.67 49.70% with the previous year, and the increase in the proportion of
settlement by bill in the collection.
It is mainly due to the increase of operating income in the current
Account receivable 2,012,036,037.78 1,618,798,305.46 24.29%
period and the corresponding increase of accounts receivable.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
It is mainly due to the increase in the current collection compared
Financing of
994,303,517.76 774,663,468.76 28.35% with the previous year, and the increase in the proportion of
receivables
settlement by bill in the collection.
It is mainly due to the arrival of supporting equipment purchased
Prepayments 377,611,163.55 577,604,707.85 -34.62%
from outside.
Other account
25,789,676.98 20,786,864.53 24.07% It is mainly due to the increase of bid bond.
receivable
It is mainly because Zhongrun Company, which is mainly invested
Long term share
by Turbine Company, was included in the scope of combination in
equity investment 11,456,132.77 23,355,441.61 -50.95%
the current period, and the long-term equity investment was offset
（Note)
by combination.
It is mainly because the contract between the company and
Sinosteel Equipment Co., Ltd. Huoqiu Project was suspended in
Other account
29,268,335.65 75,212,591.46 -61.09% 2019, and the original accounts received in advance were
Payable
transferred to other payables. Now the judgment result is clear, and
it should be reversed.
It is mainly due to the investment of RMB 155 million returned to
Long-term CDB Steam Turbine Heavy Industry Company in the current
153,237,596.83 405,872,616.77 -62.24%
payable(Note) period; Revenue shall be recognized at the same time for the
relocation expenses incurred.
[Note] Special payables are included.
Significant changes in the profit structure or profit source of the Company during the reporting period
□ Applicable √ Not applicable
None
Component of Business Income
In RMB
This report period Same period last year
Changed over last year（％）
Amount Proportion Amount Proportion
Total operating revenue 2,966,020,451.07 100% 2,021,667,426.27 100% 46.71%
On Industry
Boiler and power machine manufacture 2,628,191,998.23 88.61% 1,860,877,423.66 92.05% 41.23%
Nonferrous metal alloy manufacture 241,115,719.56 8.13% 78,346,262.00 3.88% 207.76%
Other 96,712,733.28 3.26% 82,443,740.61 4.07% 17.31%
On product
Industrial steam turbine 2,019,873,632.39 68.10% 1,445,493,683.04 71.50% 39.74%
Casting products 241,115,719.56 8.13% 78,346,262.00 3.88% 207.76%
Auxiliary machinery 162,120,261.87 5.47% 182,399,905.43 9.02% -11.12%
16
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Complete sets of waste heat power
149,200,266.50 5.03% 49,710,081.27 2.46% 200.14%
stations
Part 296,997,837.47 10.01% 183,273,753.92 9.07% 62.05%
Other 96,712,733.28 3.26% 82,443,740.61 4.07% 17.31%
On Area
Domestic 2,850,711,198.82 96.11% 1,991,733,306.63 98.52% 43.13%
Overseas 115,309,252.25 3.89% 29,934,119.64 1.48% 285.21%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
On Industry
Boiler and power
2,628,191,998.23 1,888,011,519.60 28.16% 41.23% 46.49% -2.58%
machine manufacture
On product
Industrial steam
2,019,873,632.39 1,517,826,565.80 24.86% 39.74% 49.45% -4.88%
turbine
On Area
Domestic 2,850,711,198.82 2,071,607,775.84 27.33% 43.13% 52.14% -4.30%
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.
□ Applicable √ Not applicable
Reasons for Y-o-Y relevant data with over 30% changes
√ Applicable □ Not applicable
In 2020, due to the impact of the "COVID-19" pandemic, the company and the upstream and downstream units of
the industry were delayed in resuming work and production and the delivery of customer orders was blocked. In
the first half of 2021, the company's operations and the delivery of orders from upstream and downstream
customers basically recovered, therefore the sales revenue of industrial steam turbines and spare parts increased
significantly year on year.
IV. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
17
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Proportion in Sustainable (yes or
Amount Explanation of cause
total profit no)
It is mainly due to the dividends of Hangzhou Bank ，
Investment
158,196,305.47 29.07% Convertible bonds and the investment income of wealth
income management products
Non-operating It is mainly due to receipt of compensation for contract
118,723,722.62 21.81%
income termination
Non-operating It is mainly due to the loss of disposal of non-current
79,947,694.04 14.69%
expenses assets caused by policy relocation
Mainly due to the recognition of other income in the
Other income 106,608,553.64 19.59%
relocation compensation
V. 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
Reason for
As a percentage Change in
significant
Amount of total percentage(%)
change
assets(%)
Monetary fund 1,453,242,706.35 9.35% 1,829,481,187.49 11.89% -2.54%
Accounts receivable 2,012,036,037.78 12.95% 1,618,798,305.46 10.52% 2.43%
Contract assets 520,392,893.88 3.35% 486,569,325.17 3.16% 0.19%
Inventories 2,060,650,883.02 13.26% 2,171,753,113.46 14.11% -0.85%
Long-term equity
11,456,132.77 0.07% 23,355,441.61 0.15% -0.08%
investment
Fixed assets 1,243,170,988.41 8.00% 1,094,505,770.45 7.11% 0.89%
Construction in
749,670,180.36 4.82% 804,921,709.95 5.23% -0.41%
process
Short-term-Borrowing 213,800,000.00 1.38% 216,722,803.41 1.41% -0.03%
Contract liabilities 2,885,791,451.36 18.57% 2,871,186,991.05 18.65% -0.08%
Long-term borrowing 21,600,000.00 0.14% 21,623,520.00 0.14% 0.00%
2. Major overseas assets
□ Applicable √ Not applicable
18
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
3.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/loss on Impairment
Cumulative fair
fair value provisions Purchased Sold amount in
Amount at year value change Other Amount at year
Items change in the in the amount in the the reporting
recorded into changes end
beginning reporting reporting reporting period period
equity
period period
Financial assets
1.Transactional
financial assets
（Excluding 1,021,681,809.34 45,455,813.88 44,268,403.42 3,080,572,000.00 2,989,951,752.00 1,157,757,871.22
Derivative financial
assets）
4.Other Equity
Instrument 4,056,378,073.52 -46,218,785.02 3,619,205,248.50 4,010,159,288.50
Investment
5.Other non-current
18,376,081.45 -1,872,976.32 -10,451,668.09 16,503,105.13
financial assets
Subtotal of financial
5,096,435,964.31 -2,635,947.46 3,653,021,983.83 3,080,572,000.00 2,989,951,752.00 5,184,420,264.85
assets
Total of the above 5,096,435,964.31 -2,635,947.46 3,653,021,983.83 3,080,572,000.00 2,989,951,752.00 5,184,420,264.85
Financial Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other changes
None
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
4. Restricted asset rights as of the end of this Reporting Period
Items End of Book Reason
value
Monetary fund 107,777,286.14 Utilized for issuing bank acceptance bill and L/G
Note receivable 35,800,000.00 Utilized for issuing bank acceptance bill
Fixed assets Utilized for pledging to obtain the bank loan, Utilized for guaranteeing the investment loan
505,334,979.41
for China Development Funds，The formalities for lifting the ban have not been completed.
Intangible assets Utilized for pledging to obtain the bank loan，Utilized for guaranteeing the investment loan
80,937,896.54
for China Development Funds，The formalities for lifting the ban have not been completed.
Construction in 295,194,303.14 Utilized for guaranteeing the investment loan for China Development Funds，The
19
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
process formalities for lifting the ban have not been completed.
Transactional Financial 1,757,871.22 In a lock-up period
Assets
Dividend receivable 43,605,292.60 Utilized for guaranteeing the investment loan for China Development Funds，The
formalities for lifting the ban have not been completed.
Other equity 664,930,000.00 Utilized for guaranteeing the investment loan for China Development Funds，The
Instrument investment formalities for lifting the ban have not been completed。
Receivables financing 52,031,517.98 Utilized for issuing bank acceptance bill
Total 1,787,369,147.03
As mentioned in VII. 48 (1) of Section X of this report: as of June 30, 2021, Hangzhou Steam Turbine Group has r
epurchased all the remaining shares of Steam Turbine Heavy Industry Co., Ltd held by CDB Development Fund i
n advance and resold it to the Company at the same price, which totaled in 208,000,000.00 yuan. The guarantee pr
ovided by the Company and Steam Turbine Heavy Industry Co., Ltd for the performance of the equity transfer obl
igation by Hangzhou Steam Turbine Group was also released accordingly. However, since the lifting procedures h
ave not been completed by the end of the current period, the Company holds 45.08 million shares of Hangzhou Ba
nk Co., Ltd with a book value of 664,930,000.00 yuan and the dividends receivable of 43,605,292.60 yuan, and th
e land use rights with a book value of RMB 62,964,423.45, the fixed assets with a book value of RMB 434,012,41
1.62 and the construction in progress with a book value of RMB 295,194,303.14 held by Steam Turbine Heavy In
dustry Company are still subject to restrictions for use.
VI. Analysis on investment Status
1. General
√ Applicable □ Not applicable
Investments made in same period of last
Investments made in the reporting period +/- %
year
846,492,376.19 288,571,709.12 193.34%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □ Not applicable
In RMB
Proje Investme Fixed Industry Investment Accrued Capit Project Anticipat Accrued Reasons Disclosu Disclosu
re date re Index
ct nt investmen involved in amount in Actual al sched ed income Realized for not
20
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
name method ts or not investment this reporting Investment Sourc ule Income Reaching
projects period Amount up to e up to the the
the End of End of Planned
Reporting Reportin Schedule
Period g Period and
Anticipat
ed
Income
New General
plant equipment 155,073,874. 1,433,816,450. Self
Self-built Yes 82.72% 0.00 0.00 No
42 79 fund
projec manufacturi
t ng
155,073,874. 1,433,816,450.
Total -- -- -- -- -- 0.00 0.00 -- -- --
42 79
21
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Book value Book value
Mode of Changes in Cumulative fair Purchase Gain/loss of Sauce of
Security Security Stock Initial balance at the Sale amount in balance at the Accounting
accounting fair value of value changes in amount in the the reporting the
category code Abbreviation: investment cost beginning of the the this period end of the items
measurement the this period equity this period period shares
reporting period reporting period
Other
Domestic
Hangzhou equity Self
and foreign 600926 390,954,040.00 FVM 4,056,378,073.52 -46,218,785.02 3,619,205,248.50 95,156,322.10 4,010,159,288.50
Bank Instrument funds
stocks
investment
Domestic Financial Debt
and foreign 000912 LUTIANHUA 2,869,219.80 FVM 1,681,809.34 76,061.88 -1,111,348.58 76,061.88 1,757,871.22 assets restructur
stocks transaction ing
Hangyin Financial
Convertible Self
110079 convertible 687,572,000.00 FVM 0.00 45,379,752.00 45,379,752.00 687,572,000.00 732,951,752.00 45,379,752.00 0.00 assets
bonds funds
bonds transaction
1,081,395,259.8
Total -- 4,058,059,882.86 45,379,752.00 45,379,752.00 687,572,000.00 732,951,752.00 140,612,135.98 4,011,917,159.72 -- --
0
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.
22
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
VIII. 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
Leading
Company Company Registered Operating Operating
products and Total assets Net assets Net Profit
Name type capital Income profit
services
Zhejiang
Steam
Turbine Trade of 136,214,923.7 12,075,352.4 10,373,335.4
Subsidiarie
Packaged packaged 51,000,000.00 296,154,087.14 116,535,589.85
s 4 9 3
Technology equipment
Developme
nt Co., Ltd.
Hangzhou
Zhongneng
Steam Subsidiarie Manufacturin 1,218,376,446. 655,360,470.2 43,547,579.0 35,766,530.5
92,500,000.00 286,002,645.59
Turbine s g 56 2 2 5
Power Co.,
Ltd.
Hangzhou
Steam 248,488,984.2 16,736,292.7 15,582,080.8
Subsidiarie
Turbine Casting 29,500,000.00 586,681,972.77 283,858,074.89
s 0 5 0
Casting
Co., Ltd.
Hangzhou
Steam
Turbine 148,512,198.0 45,865,135.7 36,082,500.9
Subsidiarie Manufacturin
Machinery 30,000,000.00 288,445,416.01 158,719,608.59
s g 3 1 4
&
Equipment
Co., Ltd.
Hangzhou
Steam
Turbine Subsidiarie Manufacturin 281,813,987.5 48,075,341.9 40,893,794.7
80,000,000.00 758,901,809.00 276,661,932.12
Auxiliary s g 4 4 8
Machine
Co., Ltd.
Zhejiang -10,303,324.9 -6,766,602.5
Subsidiarie Commerce &
Turbine 20,000,000.00 158,641,611.63 56,027,261.79 60,602,793.66
s trade 2 0
Import &
23
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Export Co.,
Ltd.
Hangzhou
Steam
Turbine Subsidiarie Manufacturin 1,000,000,000. 1,036,357,191. 1,003,263,560. -1,159,238.8
16,215,844.48 -1,545,651.77
Heavy s g 00 69 23 3
Industry
Co., Ltd.
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
IX．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
1. Market risks
The domestic steam turbine industry has excess capacity and intensified market competition. The national goal of "carbon emission
peak and carbon neutrality" will have a profound impact on the high-emission industries represented by petrochemical, steel, electric
power and building materials, and the sales of the company's products 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
24
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
As domestic raw materials and labor costs continue to rise, while the prices of industrial products continue to
fall, the profitability of products is facing a severe test. The company will strive to improve internal management,
improve project cost management ability, reduce procurement costs and operation and management costs, improve
operational efficiency, and strive to resolve the risk of declining profitability.
6. Overseas market risk
During the "fourteenth 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. Impact of the pandemic:
The global threat of COVID-19 pandemic will continue, and economic development remains uncertain. If the
pandemic worsens, the adverse impact on the company's business development will increase accordingly, and the
implementation of the contracted projects undertaken by the company will also be affected to some extent. The
company will constantly adapt and reduce the adverse effects brought by the pandemic according to the
development and changes of the pandemic.
25
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
IV. Corporate Governance
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
Resolutions of the
Shareholders’
Annual Meeting
Annual
2020 Shareholders’ 2020
Shareholders’ 69.44% May 10,2021 May 11,2021
(Announcement No.
general meeting
General Meeting 2021-39)
Http://www.cninfo.c
om.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□ Applicable √ Not applicable
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Deputy General Due to the development needs of the
Li Guiwen Appointed February 6,2021
Manager company
To further improve the corporate
Pan Xiaohui Director Elected May 10,2021
governance structure
III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
□ Applicable √ Not applicable
The Company planned not to distribute cash dividend and bonus share, and not to convert capital reserves into
share capital in half year.
IV. Implementation of any equity incentive plan, employee stock ownership plan or other incentive
measures for employees
□ Applicable √ Not applicable
None.
26
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
Impact on the
Company's
Name of company or Reasons for production and
Violation situation Penalty result rectification
subsidiary punishment operation of listed
measures
companies
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Other Environmental Information That Should Be Disclosed
None
Reasons for no other environmental information being disclosed
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.
II. Social responsibilities
With "driving industrial civilization and sustaining China's power" as its business mission, the company leads
the its reform and development with the development concept of "innovation, coordination, green, openness and
sharing". While standardized operation and operation according to law, it strives to shoulder due social
responsibilities and promote the harmonious development of the company, shareholders, investors, employees,
suppliers, customers, consumers and the whole society.
(1) While the company is committed to long-term development and realization of shareholder value, it pays
attention to the natural environment and resources, and undertakes corresponding responsibilities to shareholders,
employees, customers, suppliers, communities and other relevant stakeholders to realize the harmony,
coordination and unity of sustainable development between the company and society.
(2) The company has formulated the "social responsibility management standard", which defines the
company's responsibilities and standard requirements in protecting shareholders and creditors, protects the
interests of employees, ensures safety in production, environmental protection, energy conservation and emission
reduction, and social welfare undertakings, and defines the importance of social responsibility.
27
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(3) The company has further strengthened the protection of the rights and interests of small and medium-sized
investors, strengthened the management of investor relations, and established communication channels in all
aspects. For news affecting major changes in the company's stock price, the company has actively verified the
information content to clarify the facts, and issued announcements when necessary to announce the actual
situation of the company, so as to protect the legitimate rights and interests of small and medium-sized investors.
(4) The company treats suppliers and users in good faith and always maintains good commercial credit and
excellent contract performance level. The company has established a strategic cooperation relationship with
suppliers, set up a convenient information communication platform, and continuously improved the level of
cooperation between the two parties. The company provides customers with high-quality products and
professional services, as well as personalized business solutions adapted to different environments, which are well
received by customers.
(5) The company actively promotes the professional development of employees, continuously improves the
professional environment of employees, and protects the physical and mental health of employees. The company
has a number of highly skilled talents such as national technical experts and provincial and municipal technical
competition pacesetters, and has set up a number of skilled master studios in the production line to create a golden
blue collar team in modern manufacturing. The company has further raised the level of medical expenses
subsidies for employees, and provided health insurance and cancer prevention insurance for employees.
Throughout the year, the company has continuously carried out group cultural activities, expanded the venues for
cultural and sports activities for employees, supported employees to spontaneously establish various cultural
organizations, and created a dynamic enterprise atmosphere.
(6) The company attaches great importance to environmental protection and energy conservation and emission
reduction. The company has set up special assessment indicators to strictly regulate all kinds of environmental
behaviors in the business process. It strengthens the management of hazardous wastes and strictly controls the
transfer and storage of hazardous wastes. The company's safe disposal rate of hazardous wastes has reached 100%.
During the reporting period, the company's emission tests including waste water, waste gas, noise and other items
all met the national standards. The company has formulated energy consumption control indicators for various
departments, incorporated energy consumption indicators into the annual assessment system, vigorously carried
out energy-saving publicity, regularly organized energy-saving inspections, and implemented a number of
energy-saving renovation projects. The total comprehensive energy consumption for the whole year decreased
significantly year on year.
（7）The company continues to support and carry out public welfare undertakings. The company participated
in the assistance activities of "Connecting Townships and Linking Villages" in Hangzhou. From 2017 to 2021, the
company participated in assistance activities in Zitong Town, Chun 'an County with an annual fund of RMB
150,000, and in 2021, it once again subsidized RMB 150,000 to help Zitong Town, Chun'an County, and realized
precise poverty alleviation in the form of cash assistance. During the reporting period, the company carried out
activities such as "Enlightening the Children with Revolutionary Spirit, and Building Dreams with One Target to
Welcome a Hundred Years", such as mutual assistance in Zhangcun Central Primary School (Hangzhou Turbine
Hope Primary School) in Zhongzhou Town, and donation in "Spring Breeze Action", which showed that the
company attached importance to and supported social welfare undertakings while pursuing business development.
28
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
VI. Important Events
I. 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.
□ Applicable √Not applicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of
the Company
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No such cases in the reporting period.
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the reporting period.
IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report of the Company has not been audited
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board
□ Applicable √ Not applicable
VI. Notes for the related information of “non-standard audit reports” last year by board of directors
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
29
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
VIII. Litigations and arbitrations
Significant litigations and arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other lawsuits
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X. Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI.Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □ Not applicable
Whethe
Trading r over
Principle Market
Subjects Amount Ratio limit the
of pricing price of Index of
of the Price of trade in approve approve Way of Date of
Related Relationsh Type of the similar informati
related of （Ten simil payme disclosu
parties ip trade related trade on
transactio trade thousan ar d（Ten d nt re
transactio availabl disclosure
ns d yuan) trades
ns e
thousan limited
d yuan) or not
(Y/N)
Hangzhou
Hangfa
Bank Not
Power Affiliate Purcha Mark 6,454.8 17,462.
Generator Fair and
Generatin of the se of et Yes transfe applicab
s just 8 7
g Group goods price
Equipmen r le
t Co., Ltd.
Hangzhou
Steam
Bank Not
Turbine Affiliate freight, Mark 3,031.3
Fair and
Automobi of the service repairing just et 6,872 N o transfe applicab
le Sales Group fee price 7
Service s r le
Co., Ltd.
30
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Hangzhou
Steam
Affiliate Bank Not
Turbine Sale Steam Mark 3,527.5
Fair and
of the et 10,150 No transfe applicab
just 2
Engineer goods Turbine price
Group r le
ing Co.,
Ltd.
13,013. 34,484.
Total -- -- -- -- -- -- -- --
77 7
Details of any sales return of a large
None
amount
Give the actual situation in the report
period where a forecast had been made
for the total amounts of routine Not applicable
related-party transactions by type to occur
in the current period(if any)
Reason for any significant difference
between the transaction price and the No applicable
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
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporting period.
5. Transactions with related finance company, especially one that is controlled by the Company
□Applicable √ Not applicable
No such cases in the reporting period.
6. Other significant related-party transactions
□Applicable √ Not applicable
31
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
No such cases in the reporting period.
XII. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
√ Applicable □ Not applicable
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Guarante
Relevant e
Date of
disclosure Counter Complete for
happening Actual
Name of the date/No. of Amount of Guarantee Guaranty -guarant Guarantee implemen associate
(Date of mount of
Company the Guarantee type （If any） ee（If term tation d
signing guarantee
guaranteed any） or not parties
agreement)
amount (Yes or
no)
Total amount of outward
Total amount of outward
guarantee actually
guarantee approved in the
incurred in the report
report period（A1）
period（A2）
Total balance of actual
Total of external guarantee
external guarantee at
approved at Period-end(A3)
Period-end(A4)
32
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Date of Complet
disclosure Counter- for
happening Actual Guara e
Name of the date/No. of Amount of Guarantee guarante associate
(Date of mount of nty（If Guarantee term impleme
Company the Guarantee type e（If d
signing guarantee any） ntation
guaranteed any） parties
agreement) or not
amount (Yes or
no)
Zhejiang Steam
Turbine Two years from
The joint
Packaged April February the date of
5,000 809.9 liability No No
Technology 24,2020 5,2021 expiration of the
guaranty
Development principal debt
Co., Ltd.
Hangzhou Two years from
The joint
Steam Turbine May March the date of
2,000 1,000.0 liability No No
Casting Co., 27,2020 29,2020 expiration of the
guaranty
Ltd. principal debt
Total of guarantee for Total of actual guarantee
subsidiaries approved in the for subsidiaries in the 809.9
period(B1) period (B2)
Total of guarantee for Total of actual guarantee
subsidiaries approved at 7,000 for subsidiaries at 1809.9
period-end(B3) period-end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of
disclosure Counter- Complete for
happening Actual Guara
Name of the date/No. of Amount of Guarantee guarante implemen associate
(Date of mount of nty（If Guarantee term
Company the Guarantee type e（If tation d
signing guarantee any）
guaranteed any） or not parties
agreement)
amount (Yes or
no)
Hangzhou Three years
Guoneng Steam June The joint from the date
June
Turbine 10,000 6,917.13 liability of expiration of No No
25,2019 19,2020
Engineering guaranty the principal
Co., Ltd.
debt
Hangzhou Two years
July July The joint
Guoneng Steam 7,000 1,626.00 from the date No No
25,2019 21,2020 liability
Turbine of expiration of
33
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Engineering guaranty the principal
Co., Ltd. debt
Total amount of
Total guarantee quota to the guarantee to the
subsidiaries approved in the 0 subsidiaries actually 0
reporting period (C1) incurred in the reporting
period (C2)
Total guarantee quota to the Total balance of actual
subsidiaries approved at the guarantee to the
17,000 8,543.13
end of the reporting period subsidiaries at the end of
(C3) the reporting period (C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual guarantee
Total of guarantee in the Period
0 in the Period 809.9
（A1+B1+C1）
（A2+B2+C2）
Total of actual guarantee
Total of guarantee at Period-end
24,000 at Period-end 10353.03
（A3+B3+C3）
A4+B4+C4）
The proportion of the total amount of actually
guarantee in the net assets of the Company(that is 1.25%
A4+B4+C4)
Including
Amount of guarantee for shareholders, actual
0
controller and its associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 8,543.13
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets
0
of the company exceed 50%（F）
Total guarantee Amount of the abovementioned
8,543.13
guarantees（D+E+F）
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees ( If None
any)
Explanations on external guarantee against regulated
None
procedures(If any)
34
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
3.Situation of Entrusted Finance
√ Applicable □Not applicable
In RMB10，000
Source of funds for The Occurred
Un-recovered of
Specific type entrusted financial Amount of Entrusted Undue balance Amount overdue
overdue amount
management Wealth-management
Bank financial
Self fund 152,000 115,600 0 0
products
Total 152,000 115,600 0 0
The detailed information of entrusted wealth-management with significant amount or low safety, poor liquidity or
high risk with no promise of principal
□ Applicable √ Not applicable
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that
may result in impairment
□ Applicable √ Not applicable
4.Major contracts for daily operations
□ Applicable √ Not applicable
5. Other significant contract
□Applicable √ Not applicable
No such cases in the reporting period.
XIII. Explanation on other significant events
□Applicable √ Not applicable
XIV. Significant event of subsidiary of the Company
□Applicable √ Not applicable
35
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
VII. 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 Capitalization
Share Bonus
of common Other Subtotal Quantity Proportion
allotment shares
reserve fund
1.Shares with
conditional 479,824,800 63.64% 479,824,800 63.64%
subscription
1. Founder's
479,824,800 63.64% 479,824,800 63.64%
stock
Including：
State-owned 479,824,800 63.64% 479,824,800 63.64%
shares
II.Shares with
unconditional 274,185,600 36.36% 274,185,600 36.36%
subscription
2.Foreign shares
in domestic 274,185,600 36.36% 274,185,600 36.36%
market
III. Total of
754,010,400 100.00% 754,010,400 100.00%
capital shares
Causes of Change of shares
□ Applicable √ Not applicable
Approval of change of the shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ 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
□ Applicable √ Not applicable
36
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
II. Securities issue and listing
□ Applicable √ Not applicable
III. Particulars about the shareholders and substantial controller
In shares
Total number of preferred
Total number of common shareholders at the shareholders that had restored the voting
11,070 0
end of the reporting period right at the end of the reporting period (if
any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number or share
Proporti Changes
Number of Amount of Non-restrict pledged/frozen
Shareholders Nature of on of in
shares held at restricted ed ordinary State
shareholder shares reporting
period -end shares held shares held of Amount
held（%） period
share
State-owned
Hangzhou Steam Turbine Power Group Co., Ltd. 63.64% 479,824,800 0 479,824,800 0
legal person
GUOTAI JUNAN SECURITIES(HONGKONG) Foreign
0.75% 5,684,382 3,004,671 0 5,684,382
LIMITED legal person
VANGUARD TOTAL INTERNATIONAL STOCK Foreign
0.71% 5,365,877 0 0 5,365,877
INDEX FUND legal person
State-owned
China Merchants Securities (HK)Co., Ltd 0.61% 4,571,548 454,245 0 4,571,548
legal person
Domestic
Zhou Jie Natural 0.59% 4,455,700 114,600 0 4,455,700
person
VANGUARD EMERGING MARKETS STOCK Foreign
0.55% 4,168,082 205,878 0 4,168,082
INDEX FUND legal person
ISHARES CORE MSCI EMERGING MARKETS Foreign
0.50% 3,765,863 534,562 0 3,765,863
ETF legal person
NORGES BANK Foreign 0.33% 2,514,529 0 0 2,514,529
37
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
legal person
Domestic
Xia Zulin Natural 0.31% 2,320,000 0 0 2,320,000
person
Domestic
Wang Yihu Natural 0.20% 1,539,966 75,800 0 1,539,966
person
Strategy investors or general legal person becomes top 10
Not applicable
shareholders due to rights issued (if applicable)（See Notes 3）
(1) Hangzhou Steam Turbine Power Group Co., Ltd. is the holder of state-shares
of the Company, all other shareholders’ are holders of domestic listed foreign
shares (B shares)
(2) There is no relationship between Hangzhou Steam Turbine Power Group Co.,
Explanation on associated relationship among the aforesaid
Ltd. 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”.
Above shareholders entrusting or entrusted with voting rights, or
Not applicable
waiving voting rights
The repurchase account of the company is not listed in the "Top Ten
Top 10 shareholders including the special account for repurchase (if Shareholders' Shareholding Situation". As of the end of the reporting period, the
any) (see note 11) number of shares in the special account repurchased by the company was
19,551,800, accounting for 2.59% of the total share capital of the company.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of Share type
unrestricted
Name of the shareholder shares held at the
Share type Quantity
end of the
reporting period
GUOTAI JUNAN SECURITIES(HONGKONG) Foreign shares placed in domestic
5,684,382 5,684,382
LIMITED exchange
VANGUARD TOTAL INTERNATIONAL STOCK Foreign shares placed in domestic
5,365,877 5,365,877
INDEX FUND exchange
Foreign shares placed in domestic
China Merchants Securities (HK)Co., Ltd 4,571,548 4,571,548
exchange
Foreign shares placed in domestic
Zhou Jie 4,455,700 4,455,700
exchange
VANGUARD EMERGING MARKETS STOCK Foreign shares placed in domestic
4,168,082 4,168,082
INDEX FUND exchange
ISHARES CORE MSCI EMERGING MARKETS Foreign shares placed in domestic
3,765,863 3,765,863
ETF exchange
NORGES BANK 2,514,529 Foreign shares placed in domestic 2,514,529
38
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
exchange
Foreign shares placed in domestic
Xia Zulin 2,320,000 2,320,000
exchange
Foreign shares placed in domestic
Wang Yihu 1,539,966 1,539,966
exchange
Foreign shares placed in domestic
Gu Yang 1,531,852 1,531,852
exchange
Explanation on associated relationship or consistent 1）It is unknown to the Company if there is any relationship among the top 10 common share
action among the top 10 shareholders of holders without restriction;
non-restricted negotiable shares and that between the (2) Hangzhou Steam Turbine Group Co., Ltd. is not an action-in-concert” party with any of
top 10 shareholders of non-restricted negotiable other shareholders as described by the “Administration Rules of Informational Disclosure about
shares and top 10 shareholders Change of Shareholding Statues of PLCs”.
Notes to the shareholders involved in financing
Not applicable
securities (if any)(See Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Changes in shareholdings of directors, supervisors and executive officers
□ Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2020 Annual Report
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
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
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
39
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
40
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
IX. Corporate Bond
□ Applicable √ Not applicable
41
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
X. 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 30,2021 December 31,2020
Current asset：
Monetary fund 1,453,242,706.35 1,829,481,187.49
Settlement provision
Outgoing call loan
Transactional financial assets 1,157,757,871.22 1,021,681,809.34
Derivative financial assets
Notes receivable 176,809,390.23 118,107,076.67
Account receivable 2,012,036,037.78 1,618,798,305.46
Financing of receivables 994,303,517.76 774,663,468.76
Prepayments 377,611,163.55 577,604,707.85
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 69,394,969.58 64,392,157.13
Including：Interest receivable
Dividend receivable 43,605,292.60 43,605,292.60
Repurchasing of financial assets
Inventories 2,060,650,883.02 2,171,753,113.46
Contract assets 520,392,893.88 486,569,325.17
Assets held for sales
Non-current asset due within 1 year
Other current asset 44,599,532.42 48,964,817.02
Total of current assets 8,866,798,965.79 8,712,015,968.35
Non-current assets：
42
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other investment on bonds
Long-term receivable
Long term share equity investment 11,456,132.77 23,355,441.61
Other equity instruments investment 4,010,159,288.50 4,056,378,073.52
Other non-current financial assets 16,503,105.13 18,376,081.45
Property investment
Fixed assets 1,243,170,988.41 1,094,505,770.45
Construction in progress 749,670,180.36 804,921,709.95
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 239,447,260.05 273,812,314.29
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 403,832,897.72 409,288,564.79
Other non-current asset
Total of non-current assets 6,674,239,852.94 6,680,637,956.06
Total of assets 15,541,038,818.73 15,392,653,924.41
Current liabilities
Short-term loans 213,800,000.00 216,722,803.41
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 221,949,985.82 230,724,303.75
Account payable 1,449,034,434.34 1,207,797,820.78
Advance receipts
Contract liabilities 2,885,791,451.36 2,871,186,991.05
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
43
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Employees’ wage payable 116,928,909.51 116,400,157.12
Tax payable 308,211,889.42 281,909,641.60
Other account payable 29,405,321.95 75,212,591.46
Including：Interest payable 136,986.30
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 500,000.00 1,001,088.89
Other current liability 375,654,309.62 374,106,541.36
Total of current liability 5,601,276,302.02 5,375,061,939.42
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 21,600,000.00 21,623,520.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 153,237,596.83 405,872,616.77
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 482,517,778.09 489,416,290.74
Deferred income tax liability 542,880,787.28 550,540,278.99
Other non-current liabilities
Total non-current liabilities 1,200,236,162.20 1,467,452,706.50
Total of liability 6,801,512,464.22 6,842,514,645.92
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 153,617,619.65 153,617,619.65
Less：Shares in stock 144,078,948.09 144,078,948.09
44
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Other comprehensive income 3,075,940,144.37 3,114,962,386.84
Special reserve 17,256,159.74 17,699,635.27
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Retained profit 3,829,491,806.87 3,587,465,039.91
Total of owner’s equity belong to the
8,307,349,990.32 8,104,788,941.36
parent company
Minority shareholders’ equity 432,176,364.19 445,350,337.13
Total of owners’ equity 8,739,526,354.51 8,550,139,278.49
Total of liabilities and owners’ equity 15,541,038,818.73 15,392,653,924.41
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Can
45
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
2.Parent Company Balance Sheet
In RMB
Items June 30,2021 December 31,2020
Current asset：
Monetary fund 1,010,374,772.01 1,068,802,728.63
Transactional financial assets 901,757,871.22 901,681,809.34
Derivative financial assets
Notes receivable 61,084,607.08 2,386,000.00
Account receivable 1,568,204,111.11 1,233,324,781.52
Financing of receivables 661,017,748.20 560,214,105.19
Prepayments 289,949,436.91 435,233,928.27
Other account receivable 52,637,470.19 52,338,992.66
Including：Interest receivable
Dividend receivable 43,605,292.60 43,605,292.60
Inventories 1,407,217,853.28 1,504,591,192.03
Contract assets 334,715,700.00 298,440,051.27
Assets held for sales
Non-current asset due within 1 year
Other current asset -593,028.32
Total of current assets 6,286,366,541.68 6,057,013,588.91
Non-current assets：
Creditor's rights investment
Other creditor's rights investment
Long-term receivable
Long term share equity investment 1,132,648,454.39 925,188,454.39
Other equity instruments investment 4,010,159,288.50 4,056,378,073.52
Other non-current financial assets 16,354,512.82 18,227,489.14
Property investment
Fixed assets 511,605,844.23 353,788,891.57
Construction in progress 403,568,767.25 495,409,362.19
Production physical assets 0.00
Oil & gas assets 0.00
Use right assets 0.00
Intangible assets 127,258,895.59 163,116,618.58
Development expenses 0.00
46
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Goodwill 0.00
Long-germ expenses to be amortized 0.00
Deferred income tax asset 347,326,769.70 355,670,069.60
Other non-current asset
Total of non-current assets 6,548,922,532.48 6,367,778,958.99
Total of assets 12,835,289,074.16 12,424,792,547.90
Current liabilities
Short-term loans 150,000,000.00 150,136,986.30
Transactional financial liabilities
Derivative financial liabilities
Notes payable 6,955,000.00
Account payable 1,001,125,650.51 820,258,129.08
Advance receipts
Contract Liabilities 2,123,085,258.84 2,077,614,427.93
Employees’ wage payable 85,557,235.69 67,025,966.88
Tax payable 271,712,428.46 240,368,823.36
Other account payable 27,725,139.15 56,602,697.52
Including：Interest payable 136,986.30
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability 273,665,689.87 267,804,499.76
Total of current liability 3,932,871,402.52 3,686,766,530.83
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 150,837,908.18 247,309,261.46
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 482,103,958.09 489,002,470.74
Deferred income tax liability 542,880,787.28 550,540,278.99
47
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Other non-current liabilities
Total non-current liabilities 1,175,822,653.55 1,286,852,011.19
Total of liability 5,108,694,056.07 4,973,618,542.02
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 144,078,948.09 144,078,948.09
Other comprehensive income 3,076,324,461.21 3,115,610,428.47
Special reserve 5,998,110.00 6,000,000.00
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 3,293,031,342.23 2,978,322,472.76
Total of owners’ equity 7,726,595,018.09 7,451,174,005.88
Total of liabilities and owners’ equity 12,835,289,074.16 12,424,792,547.90
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Can
3.Consolidated Income Statement
In RMB
Items The first half year of 2021 The first half year of 2020
I. Income from the key business 2,966,020,451.07 2,021,667,426.27
Incl：Business income 2,966,020,451.07 2,021,667,426.27
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,746,210,323.17 1,827,754,914.11
Incl：Business cost 2,158,596,271.56 1,411,473,466.88
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
48
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 14,472,540.93 10,846,939.80
Sales expense 76,767,307.50 60,320,227.44
Administrative expense 329,940,741.71 261,099,800.18
R & D costs 173,503,554.69 103,228,915.93
Financial expenses -7,070,093.22 -19,214,436.12
Including：Interest expense 8,368,050.03 3,356,373.45
Interest income 7,141,624.05 14,883,294.02
Add: Other income 106,608,553.64 55,716,643.40
Investment gain（“-”for loss） 158,196,305.47 118,388,068.47
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 -1,796,914.44 -597,375.82
Credit impairment loss 17,027,776.46 -80,718,669.70
Impairment loss of assets 5,641,961.36 10,855,928.32
Assets disposal income -25,751.14 247,052.27
III. Operational profit（“-”for loss） 505,462,059.25 297,804,159.10
Add ：Non-operational income 118,723,722.62 6,216,124.18
Less: Non-operating expense 79,947,694.04 4,178,810.71
IV. Total profit(“-”for loss) 544,238,087.83 299,841,472.57
Less：Income tax expenses 69,766,786.53 30,545,431.68
V. Net profit 474,471,301.30 269,296,040.89
(I) Classification by business continuity
1.Net continuing operating profit 474,471,301.30 269,296,040.89
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 425,641,416.95 230,908,137.72
2.Minority shareholders’ equity 48,829,884.35 38,387,903.17
VI. Net after-tax of other comprehensive income -38,666,598.38 -122,468,038.54
-39,022,242.47 -122,474,780.71
Net of profit of other comprehensive income attributable to owner
49
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
s of the parent company.
（I）Other comprehensive income items that will not be
-39,285,967.26 -122,479,780.31
reclassified into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt
or net assets
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-39,285,967.26 -122,479,780.31
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 o 263,724.79 4,999.60
r loss.
1.Other comprehensive income under the equity method investee
can 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 263,724.79 4,999.60
7.Other
Net of profit of other comprehensive income attributable to Minor
355,644.09 6,742.17
ity shareholders’ equity
VII. Total comprehensive income 435,804,702.92 146,828,002.35
Total comprehensive income attributable to the owner of the
386,619,174.48 108,433,357.01
parent company
Total comprehensive income attributable minority shareholders 49,185,528.44 38,394,645.34
VIII. Earnings per share
（I）Basic earnings per share 0.58 0.31
(II)Diluted earnings per share 0.58 0.31
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Can
50
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
4. Income statement of the Parent Company
In RMB
Items The first half year of 2021 The first half year of 2020
I. Income from the key business 1,887,026,653.89 1,148,712,572.64
Incl：Business cost 1,445,877,122.80 808,931,953.66
Business tax and surcharge 9,461,259.64 4,568,531.98
Sales expense 39,639,769.92 31,895,054.01
Administrative expense 227,123,091.22 194,237,408.24
R & D expense 112,889,389.79 56,990,534.25
Financial expenses -6,661,202.38 -18,514,981.66
Including：Interest expenses 6,496,739.73 628,468.93
Interest income 4,450,243.67 11,826,317.27
Add：Other income 105,331,636.74 52,463,135.32
Investment gain（“-”for loss） 315,026,146.53 230,963,096.02
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 -1,796,914.44 -597,375.82
Credit impairment loss 23,250,789.28 -62,592,863.13
Impairment loss of assets 3,822,083.02 1,119,478.84
Assets disposal income 247,056.74
II. Operational profit（“-”for loss） 504,330,964.03 292,206,600.13
Add ：Non-operational income 113,583,451.32 1,978,691.24
Less：Non -operational expenses 81,045,992.06 2,656,166.56
III. Total profit(“-”for loss) 536,868,423.29 291,529,124.81
Less：Income tax expenses 39,422,315.20 10,297,132.71
IV. Net profit 497,446,108.09 281,231,992.10
1.Net continuing operating profit 497,446,108.09 281,231,992.10
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -39,285,967.26 -122,479,780.31
（I）Other comprehensive income items that will not be reclassified into
-39,285,967.26 -122,479,780.31
gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net a
51
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
ssets
2.Other comprehensive income under the equity method investee can not
be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments -39,285,967.26 -122,479,780.31
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 458,160,140.83 158,752,211.79
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 Can
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2021 The first half year of 2020
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,156,808,992.59 1,728,815,809.43
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
52
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Cash received against original insurance contract
Net cash received from reinsurance business
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 7,360,655.36 5,387,680.16
Other cash received from business operation 17,186,143.02 65,325,817.64
Sub-total of cash inflow 2,181,355,790.97 1,799,529,307.23
Cash paid for purchasing of merchandise and services 1,240,857,453.26 862,580,281.24
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 455,997,823.77 418,895,651.22
Taxes paid 183,353,491.75 106,510,146.66
Other cash paid for business activities 124,066,009.48 84,578,536.08
Sub-total of cash outflow from business activities 2,004,274,778.26 1,472,564,615.20
Net cash generated from /used in operating activities 177,081,012.71 326,964,692.03
II. Cash flow generated by investing
Cash received from investment retrieving 50,000,000.00
Cash received as investment gains 164,715,502.79 28,996,731.18
Net cash retrieved from disposal of fixed assets, intangible assets, and
82,509.20 17,924.42
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 2,945,372,000.00 1,533,898,000.00
Sub-total of cash inflow due to investment activities 3,110,170,011.99 1,612,912,655.60
Cash paid for construction of fixed assets, intangible assets and other
148,677,713.70 158,051,359.80
long-term assets
Cash paid as investment 0.00
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
53
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Other cash paid for investment activities 3,080,572,000.00 1,913,998,000.00
Sub-total of cash outflow due to investment activities 3,229,249,713.70 2,072,049,359.80
Net cash flow generated by investment -119,079,701.71 -459,136,704.20
III.Cash flow generated by financing
Cash received as investment 320,000.00
Including: Cash received as investment from minor shareholders
Cash received as loans 153,800,000.00 177,700,000.00
Other financing –related cash received
Sub-total of cash inflow from financing activities 154,120,000.00 177,700,000.00
Cash to repay debts 157,000,000.00 77,800,000.00
Cash paid as dividend, profit, or interests 261,623,802.62 82,634,116.70
Including: Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities 155,000,000.00 75,745,129.13
Sub-total of cash outflow due to financing activities 573,623,802.62 236,179,245.83
Net cash flow generated by financing -419,503,802.62 -58,479,245.83
IV. Influence of exchange rate alternation on cash and cash equivalents -3,240,367.62 6,747,263.44
V.Net increase of cash and cash equivalents -364,742,859.24 -183,903,994.56
Add: balance of cash and cash equivalents at the beginning of term 1,710,208,279.45 1,645,907,650.92
VI ..Balance of cash and cash equivalents at the end of term 1,345,465,420.21 1,462,003,656.36
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Can
6. Cash flow statement of the Parent Company
In RMB
Items The first half year of 2021 The first half year of 2020
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,347,455,018.07 1,009,834,279.72
Tax returned 2,194,465.42 4,056.54
Other cash received from business operation 6,242,968.48 49,456,848.95
Sub-total of cash inflow 1,355,892,451.97 1,059,295,185.21
Cash paid for purchasing of merchandise and services 782,527,824.96 502,853,109.86
Cash paid to staffs or paid for staffs 292,113,266.18 285,820,623.95
Taxes paid 102,628,455.90 25,792,568.08
Other cash paid for business activities 44,154,055.08 26,431,269.07
Sub-total of cash outflow from business activities 1,221,423,602.12 840,897,570.96
54
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Net cash generated from /used in operating activities 134,468,849.85 218,397,614.25
II. Cash flow generated by investing
Cash received from investment retrieving 0.00 50,000,000.00
Cash received as investment gains 315,030,313.20 141,288,093.65
Net cash retrieved from disposal of fixed assets, intangible assets, and
0.00 0.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational units 0.00 0.00
Other investment-related cash received 2,147,572,000.00 625,000,000.00
Sub-total of cash inflow due to investment activities 2,462,602,313.20 816,288,093.65
Cash paid for construction of fixed assets, intangible assets and other
100,388,842.40 70,383,582.14
long-term assets
Cash paid as investment 207,460,000.00 0.00
Net cash received from subsidiaries and other operational units 0.00 0.00
Other cash paid for investment activities 2,147,572,000.00 1,045,000,000.00
Sub-total of cash outflow due to investment activities 2,455,420,842.40 1,115,383,582.14
Net cash flow generated by investment 7,181,470.80 -299,095,488.49
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 100,000,000.00 100,000,000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 100,000,000.00 100,000,000.00
Cash to repay debts 100,000,000.00
Cash paid as dividend, profit, or interests 190,111,389.72 535,318.25
Other cash paid for financing activities 0.00 73,364,395.79
Sub-total of cash outflow due to financing activities 290,111,389.72 73,899,714.04
Net cash flow generated by financing -190,111,389.72 26,100,285.96
IV. Influence of exchange rate alternation on cash and cash equivalents -3,041,237.94 6,556,443.98
V.Net increase of cash and cash equivalents -51,502,307.01 -48,041,144.30
Add: balance of cash and cash equivalents at the beginning of term 1,023,812,557.30 967,501,994.48
VI ..Balance of cash and cash equivalents at the end of term 972,310,250.29 919,460,850.18
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting institute: Jin Can
55
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Minor
Items Other Common Total of
Capital Less: Shares Specialized Surplus shareholders’
Share Capital Preferred Comprehensive risk Retained profit Other Subtotal owners’ equity
Sustainable Other reserves in stock reserve reserves equity
stock Income provision
debt
I.Balance at the end of
754,010,400.00 153,617,619.65 144,078,948.09 3,114,962,386.84 17,699,635.27 621,112,807.78 3,587,465,039.91 8,104,788,941.36 445,350,337.13 8,550,139,278.49
last year
II.Balance at the
beginning of current 754,010,400.00 153,617,619.65 144,078,948.09 3,114,962,386.84 17,699,635.27 621,112,807.78 3,587,465,039.91 8,104,788,941.36 445,350,337.13 8,550,139,278.49
year
III.Changed in the
-39,022,242.47 -443,475.53 242,026,766.96 202,561,048.96 -13,173,972.94 189,387,076.02
current year
（1）Total
-39,022,242.47 425,641,416.95 386,619,174.48 49,185,528.44 435,804,702.92
comprehensive income
（II）Investment or
decreasing of capital 6,241,321.65 6,241,321.65
by owners
1.Ordinary shares
6,241,321.65 6,241,321.65
invested by shareholders
（III）Profit allotment -183,614,649.99 -183,614,649.99 -68,180,370.00 -251,795,019.99
1.Providing of surplus
reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or -183,614,649.99 -183,614,649.99 -68,180,370.00 -251,795,019.99
shareholders)
(V)Special reserves -443,475.53 -443,475.53 -420,453.03 -863,928.56
1. Provided this year 1,778,581.54 1,778,581.54 29,700.15 1,808,281.69
2．Used this term -2,222,057.07 -2,222,057.07 -450,153.18 -2,672,210.25
IV. Balance at the end
754,010,400.00 153,617,619.65 144,078,948.09 3,075,940,144.37 17,256,159.74 621,112,807.78 3,829,491,806.87 8,307,349,990.32 432,176,364.19 8,739,526,354.51
of this term
Amount in last year
In RMB
56
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Other Equity instrument Minor
Items Other Common Total of
Capital Less: Shares Specialized Surplus shareholders’
Share Capital Comprehensive risk Retained profit Other Subtotal owners’ equity
reserves in stock reserve reserves equity
Preferred Income provision
Sustainable Other
stock
debt
I.Balance at the
754,010,400.00 152,973,219.65 1,784,195,156.34 18,324,473.28 621,112,807.78 3,276,880,091.53 6,607,496,148.58 451,479,493.03 7,058,975,641.61
end of last year
II.Balance at the
beginning of 754,010,400.00 152,973,219.65 1,784,195,156.34 18,324,473.28 621,112,807.78 3,276,880,091.53 6,607,496,148.58 451,479,493.03 7,058,975,641.61
current year
III.Changed in the
73,364,395.79 -122,474,780.71 -218,142.40 82,147,642.72 -113,909,676.18 -42,871,915.67 -156,781,591.85
current year
（1）Total
comprehensive -122,474,780.71 230,908,137.72 108,433,357.01 38,394,645.34 146,828,002.35
income
（II）Investment
or decreasing of 73,364,395.79 -73,364,395.79 -73,364,395.79
capital by owners
1.Ordinary shares
invested by 73,364,395.79 -73,364,395.79 -73,364,395.79
shareholders
（III）Profit
-148,760,495.00 -148,760,495.00 -81,063,160.00 -229,823,655.00
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or -148,760,495.00 -148,760,495.00 -81,063,160.00 -229,823,655.00
shareholders)
(V). Special
-218,142.40 -218,142.40 -203,401.01 -421,543.41
reserves
1. Provided this
838,616.00 838,616.00 19,739.28 858,355.28
year
2．Used this term -1,056,758.40 -1,056,758.40 -223,140.29 -1,279,898.69
Other
IV. Balance at the
754,010,400.00 152,973,219.65 73,364,395.79 1,661,720,375.63 18,106,330.88 621,112,807.78 3,359,027,734.25 6,493,586,472.40 408,607,577.36 6,902,194,049.76
end of this term
57
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2021
Other Equity instrument
Items Capital Less: Shares in Other Comprehensive Specialized Surplus Total of owners’
Share capital Preferred Sustainable Retained profit Other
Other reserves stock Income reserve reserves equity
stock debt
I.Balance at the end of
754,010,400.00 138,953,250.09 144,078,948.09 3,115,610,428.47 6,000,000.00 602,356,402.65 2,979,199,884.13 7,452,051,417.25
last year
II.Balance at the
754,010,400.00 138,953,250.09 144,078,948.09 3,115,610,428.47 6,000,000.00 602,356,402.65 2,979,199,884.13 7,452,051,417.25
beginning of current year
III.Changed in the current
-39,285,967.26 -1,890.00 313,831,458.10 274,543,600.84
year
（I）Total comprehensive
-39,285,967.26 497,446,108.09 458,160,140.83
income
（III）Profit allotment -183,614,649.99 -183,614,649.99
1.Providing of surplus
reserves
2．Allotment to the
-183,614,649.99 -183,614,649.99
owners (or shareholders)
3．Other
(V) Special reserves -1,890.00 -1,890.00
1. Provided this year 1,570,108.88 1,570,108.88
2．Used this term -1,571,998.88 -1,571,998.88
（VI）Other
IV. Balance at the end of
754,010,400.00 138,953,250.09 144,078,948.09 3,076,324,461.21 5,998,110.00 602,356,402.65 3,293,031,342.23 7,726,595,018.09
this term
58
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Amount in last year
In RMB
The first half year of 2020
Other Equity
instrument
Items Other
Capital Less: Shares Specialized Surplus Retained Total of owners’
Share Capital Preferr Comprehensive Other
Sustai Oth reserves in stock reserve reserves profit equity
ed Income
nable er
stock
debt
2,709,696,42
I.Balance at the end of last year 754,010,400.00 138,953,250.09 1,784,509,419.91 6,000,000.00 602,356,402.65 5,995,525,899.08
6.43
2,709,696,42
II.Balance at the beginning of current year 754,010,400.00 138,953,250.09 1,784,509,419.91 6,000,000.00 602,356,402.65 5,995,525,899.08
6.43
132,471,497.
III.Changed in the current year 73,364,395.79 -122,479,780.31 -63,372,679.00
10
281,231,992.
（I）Total comprehensive income -122,479,780.31 158,752,211.79
10
(II) Investment or decreasing of capital by
73,364,395.79 -73,364,395.79
owners
1．Ordinary Shares invested by shareholders 73,364,395.79 -73,364,395.79
2 ． Holders of other equity instruments investe
d capital
3.Amount of shares paid and accounted as
owners’ equity
-148,760,495
（III）Profit allotment -148,760,495.00
.00
1.Providing of surplus reserves
-148,760,495
2．Allotment to the owners (or shareholders) -148,760,495.00
.00
(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
2,842,167,92
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 73,364,395.79 1,662,029,639.60 6,000,000.00 602,356,402.65 5,932,153,220.08
3.53
59
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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 16th meeting of the 8th term of Board held on
August 30, 2021.
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 X 8(1) of Financial statement notes
Change of combination scope
1. Business combination under different control in the current period
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
place of Proportion of
Name gaining the the stock Purchase date basis of during the during the
gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock right
to period-end to period-end
Capital
Zhejiang
contribution
Zhongrun
January 12,600,000.0 and equity January
Gas Turbine 51.99% Note 3,289,613.51 -1,171,962.83
4,2021 0 transfer of 4,2021
Technology
original
Co., Ltd.
shares
Note：Basis for determining the purchase date: On April 15, 2020, Turbine Company invested RMB 12.6 million
and acquired 51.99% equity of Zhejiang Zhongrun Gas Turbine Technology Co., Ltd., but only one of the 3
directors of Zhongrun Company was from the Turbine Company, which still failed to meet the actual control
conditions. On January 4, 2021, after the change of the articles of association of Zhongrun Company, three of
the 5 directors of Zhongrun Company were from the Turbine Company and had its actual control right. Therefore,
January 4, 2021 is determined as the actual purchase date.
IV. Basis of compiling the financial statement
(1) Basis of compiling
60
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
The Company adopts perpetual operation as the basis of financial statements.
(2) 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
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
incom.
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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’ 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. The initial measurement is made according
to the transaction price defined in Accounting Standards for Business Enterprises No.14-Income.
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.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
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
Measurement is conducted in accordance with the relevant provisions of the Accounting Standards for
Business Enterprises No.23-Transfer of Financial Assets.
③ Financial guarantee contracts that do not belong to the case of 1) or 2) above, and loan commitments that
do not belong to 1) above and lend at below market interest rates
After initial recognition, subsequent measurement shall be made according to the higher of the
following two amounts: ① Loss reserve amount determined according to the impairment provisions of financial
instruments; ② The balance of the initial recognized amount after deducting the accumulated amortization
amount determined in accordance with relevant provisions of Accounting Standards for Business Enterprises
No.14-Income.
④ Financial liabilities measured in amortized cost
The real interest rate method is adopted to measure in amortized cost. Gains or losses arising from financial
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
liabilities measured in amortized cost that are not part of any hedging relationship are included in current profits
and losses when derecognized and amortized according to the effective interest rate method.
4) Termination of recognition of financial assets and financial liabilities
① Financial assets are derecognized when one of the following conditions is met:
I. The contractual right to receive cash flow from the financial asset is terminated;
II. 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
(4) Method for determining the fair value of financial assets and financial liabilities
The company adopts valuation techniques which are applicable under current circumstances and supported
by sufficient available data and other information to determine the fair value of relevant financial assets and
financial liabilities. The company divides the input values used by valuation technology into the following levels
and uses them in turn:
1) The input values at the first level are that the company can obtain unadjusted quotations of the same assets
or liabilities in the active market on the measurement date;
2) The input values at the second level are directly or indirectly observable input values of related assets or
liabilities except the input value at the first level, including: quotations of similar assets or liabilities in active
markets; Quotations for the same or similar assets or liabilities in inactive markets; Other observable input values
besides quotation, such as observable interest rate and yield curve during normal quotation interval; Input value of
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
market verification, etc.;
3) The input values at third level are unobservable input values of related assets or liabilities, including
interest rates and stock volatility that cannot be directly observed or verified by observable market data, future
cash flows of abandonment obligations undertaken in business combination, and financial forecasts made using
their own data, etc.
(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 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.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
transaction combinations within the of consolidated financial statements as
Refer to the historical credit loss experience,
scope of consolidated financial credit risk characteristics, other
combine the current situation with the forecast of
statements receivables are combined
future economic situation, and calculate the
Taking aging as the credit risk
expected credit loss through default risk exposure
characteristic, combine other
and the expected credit loss rate within the next 12
Other receivables-aging combination receivables except the related party
months or the whole duration.
receivables within the scope of the
consolidated financial statements
(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
Bill type Refer to the historical credit loss experience,
Bank acceptance bills receivable
combine the current situation and the forecast of
the future economic situation, compile a
comparison table between the aging of accounts
Commercial acceptance bills
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 current situation and the forecast of
Accounts receivable-associated Taking related parties within the scope of
the future economic situation, compile a
transaction combinations within the consolidated financial statements as credit
comparison table between the aging of accounts
scope of consolidated financial risk characteristics, receivables are
receivable and the expected credit loss rate during
statements combined
the whole duration, and calculate the expected
credit loss.
Accounts receivable-aging Taking aging as the credit risk Refer to the historical credit loss experience,
characteristic, combine receivables except combine the current situation and the forecast of
combination
the related party receivables within the the future economic situation, compile a
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
scope of the consolidated financial comparison table between the aging of accounts
statements receivable and the expected credit loss rate during
the whole duration, and calculate the expected
credit loss.
Refer to the historical credit loss experience,
Contract assets——a Taking aging as
Taking aging as the credit risk combine the current situation and the forecast of
the credit risk characteristic, combine
characteristic, combine receivables except the future economic situation, compile a
receivables except the related party
the related party receivables within the comparison table between the aging of accounts
receivables within the scope of the
scope of the consolidated financial receivable and the expected credit loss rate during
consolidated financial statements aging
statements the whole duration, and calculate the expected
combination
credit loss.
2) Account receivable、Contract assets——Table of Aging of Aging Combination and Expected Credit Loss
Rate for the Whole Duration
Aging Receivable receivable/contract assets Expected credit loss rate (%)
Within 1 year (inclusive, the same below) 5.00
10.00
1-2 years
30.00
2-3 years
60.00
3-4 years
80.00
4-5 years
100.00
Over 5 years
(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 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 X(5)-10 Financial instrument of this report.
12.Account receivable
For details, please refer to Section X(5)-10 Financial instrument of this report.
13. Financing of receivables
For details, please refer to Section X(5)-10 Financial instrument of this report.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
14.Other account receivable
Methods for determining expected credit losses of other receivables and accounting treatment
For details, please refer to Section X(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
Basis of amortizing: one-off
2.Packaging materials
Basis of amortizing: one-off
16.Contract assets
According to the relationship between performance obligation and customer payment, the company lists
contract assets or contract liabilities in the balance sheet. The company will offset the contractual assets and
contractual liabilities under the same contract and list them in net amount.
The company lists the right to receive consideration from customers unconditionally (that is, only depending
on the passage of time) as receivables, and lists the right to receive consideration after transferring goods to
customers (which depends on factors other than the passage of time) as contract assets.
The Company's obligation to transfer goods to customers for received or receivable consideration from
customers is listed as a contractual liability.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
17.Constract cost
None
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.
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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.
23. Investment property
The measurement mode of investment property
Not applicable
24. Fixed assets
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
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 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.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
For details, please refer to Section X （5）42 Lease.
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 rights and proprietary technology 5-20
Software 5
(2) Accounting policy for internal research and development expenditure
Expenditures of internal researching projects are accounted into current term gain and loss when happens. The
development period expenditures are recognized as intangible assets when fulfill following conditions: (1) The
intangible asset is completed and technically possible to be used or sold; (2) With intention to complete the
intangible asset for purpose of use or sale; (3) Evidence showing that there are markets or the products produced
with using of the intangible asset, or markets of the intangible asset itself, by which the intangible asset may
produce financial benefits. Intangible assets used inside the Company must be approved for their usable characters.
(4) Developing of the intangible assets are supported by sufficient technical, financial, and other resources, and
the intangible assets can be used or sold. (5) Expenditures occurred in developing of the intangible asset may be
reliably measured.
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
For details, please refer to Section X （5）16 Contract Assets of this report.
34. Employees’ wage
1. Accounting of short-term wages
In the fiscal period when an employee is providing services, short-term wages actually occurred is recognized as
liability, and recorded into current gain/loss account or cost of related asset.
2.Accounting of stipulated beneficiary plan is on following steps:
1) On basis of expected accumulation of welfare, estimations on population variables and financial variables,
calculating of liabilities from stipulated beneficiary plan, and recognition of the period of related liabilities, are
performed on basis of non-bias and accordance actuary. Meanwhile, discount is performed on the liabilities from
stipulated beneficiary plan to recognize the current value and service cost of the liabilities from the stipulated
beneficiary plan.
2) When there is asset involved in the stipulated beneficiary asset, the deficit or premium from the balance of the
current value of liabilities of stipulated beneficiary plan over their fair values is recognized as its net liability or
net asset. When there is a premium with a stipulated beneficiary plan, the lower one between the premium and the
upper limit of the asset is recognized as the net asset of such stipulated beneficiary asset;
3) At end of period, employees’ wages from stipulated beneficiary plan are recognized by three parts including
service cost, net interest of net liability or net asset, and recalculated net asset or liability variation. The first two
are recorded into current gain/loss or related asset cost, the third is recorded to other gains, which will not be
written back to gain/loss in successive fiscal periods, but the amount can be transferred with the range of equity.
3. Accounting of dismissing welfare
Welfares for employees who are dismissed, the earlier one of the following is recognized as employee wage
liability, and recorded to current gain /loss:
(1) When the Company cannot, on its own call only, retrieve the dismissing welfare provided by dismissing of
service plan or suggestion;
(2) When the costs or expenses related to restructuring involved in the dismissing welfare are recognized by the
Company.
4. Accounting of other long-term employees’ welfares
As of long-term welfares provided to the employees, those which satisfy conditions of the stipulated saving plan
are treated according to related regulations of stipulated saving plan; those which other than the aforesaid, are
treated according to the stipulated beneficiary plan. In viewing of simplifying accounting treatment, employee
wage costs are recognized as service costs, the net amounts of interests of other long-term welfare net liability or
asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related asset.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
35. Lease liabilities
For details, please refer to Section X （5）42 Lease.
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
Accounting policies used for revenue recognition and measurement
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 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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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.
Domestic sales revenue is recognized when the Company has delivered the product in accordance with the co
ntract and obtained the receipt confirmed by the purchaser, with received the payment or obtained the right to rece
ive payment and the relevant economic benefits are likely to flow in. Export sales revenue is recognized when the
Company has declared the product in accordance with the contract and obtained the export goods declaration form
and the bill of lading, with received the payment or obtained the right to receive payment and the relevant econo
mic benefits are likely to flow in.
The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
None
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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 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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
□ Applicable √ Not applicable
(2) Accounting Method for Financing Leases
□ Applicable √ Not applicable
（3）Recognition Method and Accounting Method of Leasing under New Leasing Standards
√ Applicable □ Not applicable
1) Company as the Lessee
On the start date of the lease term, the company will recognize the lease with a lease term of no more than 12
months and without the purchase option as a short-term lease; and recognize the lease with lower value when a
single leased asset is a brand-new asset as a low-value asset lease. If the company subleases or expects to sublet
the leased assets, the original lease shall not be deemed as low-value asset lease.
For all short-term leases and low-value asset leases, the company will calculate the lease payment amount
into the relevant asset cost or current profits and losses according to the straight-line method in each period of the
lease term.
In addition to the above-mentioned short-term leases and low-value asset leases with simplified processing,
the company recognizes the right to use assets and lease liabilities for leases on the start date of the lease term.
① Right-to-use assets
The right-to-use assets are initially measured according to the cost, which includes: i. The initial
measurement amount of lease liabilities; ii. If there is lease incentive for the lease payment issued on or before the
start date of the lease term, the amount related to the lease incentive enjoyed shall be deducted; ⅲ. Initial direct
expenses incurred by the lessee; iv. The estimated costs that the lessee will incur for dismantling and removing the
leased assets, restoring the leased assets' site or restoring the leased assets to the state agreed in the lease terms.
The company depreciates the right-to-use assets according to the straight-line method. If it can be reasonably
determined that the ownership of the leased asset is acquired at the expiration of the lease term, the company shall
accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine
that the ownership of the leased asset can be acquired at the expiration of the lease term, the company shall accrue
depreciation within the shorter of the lease term and the remaining service life of the leased asset.
② Lease liabilities
On the lease start date, the company recognizes the present value of the unpaid lease payment as the lease
liability. When calculating the present value of the lease payment amount, the lease inclusive interest rate is used
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
as the discount rate. If the lease inclusive interest rate cannot be determined, the company's incremental loan
interest rate is used as the discount rate. The difference between the lease payment amount and its present value is
considered as unrecognized financing expense, and the interest expense is recognized according to the discount
rate for recognizing the present value of the lease payment amount in each period of the lease term, which is
included in the current profits and losses. The variable lease payments that are not included in the measurement of
lease liabilities are included in the current profits and losses when they actually occur.
After the start of the lease term, when the actual fixed payment amount changes, the estimated payable
amount of the guarantee residual value changes, the index or ratio used to determine the lease payment amount
changes, and the evaluation result or actual exercise situation of the purchase option, renewal option or
termination option changes, the company will re-measure the lease liability according to the present value of the
changed lease payment amount, and adjust the book value of the right-to-use assets accordingly. If the book value
of the right-to-use assets has been reduced to zero, but the lease liability still needs to be further reduced, the
remaining amount will be included in the current profits and losses.
2) Company as the Lessor
On the lease start date, the company classifies the lease with almost all risks and rewards related to the
ownership of leased assets transferred as financial lease, and all other leases as operating leases.
① Operating lease
During each period of the lease term, the company recognizes the lease receipts as lease income according to
the straight-line method, and the initial direct expenses incurred are capitalized and allocated on the same basis as
the lease income recognition, and are included in the current profits and losses by stages. The variable lease
payments related to operating leases that are not included in the lease receipts obtained by the company are
included in the current profits and losses when they actually occur.
② Financing lease
On the start date of the lease term, the company recognizes the receivable financing lease payments
according to the net lease investment (the sum of the unsecured residual value and the present value of the lease
receipts that have not been received at the start date of the lease term), and derecognizes the financing lease assets.
During each period of the lease term, the company calculates and recognizes the interest income according to the
interest rate included in the lease.
The variable lease payments obtained by the company that are not included in the measurement of net lease
investment are recorded into the current profits and losses when they actually occur.
3) After-sale leaseback
① Company as the Lessee
According to the Accounting Standards for Business Enterprises No.14-Income, the company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction is a sale.
If the asset transfer in the after-sale leaseback transaction is a sale, the company shall measure the
right-to-use assets formed by the after-sale leaseback according to the part of the book value of the original assets
related to the right-to-use acquired by leaseback, and only recognize the related gains or losses for the rights
transferred to the lessor.
If the asset transfer in the after-sale leaseback transaction is not a sale, the company will continue to
recognize the transferred asset, and at the same time recognize a financial liability equal to the transfer income,
and conduct accounting treatment on the financial liability in accordance with Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
② Company as the Lessor
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
According to the Accounting Standards for Business Enterprises No.14-Income, the company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction is a sale.
If the asset transfer in the after-sale leaseback transaction is a sale, the company shall conduct accounting
treatment on asset purchase according to other applicable accounting standards for enterprises, and conduct
accounting treatment on asset lease according to Accounting Standards for Enterprises No.21-Lease.
If the asset transfer in the after-sale leaseback transaction is not a sale, the company will not recognize the
transferred asset, but recognize a financial asset equal to the transfer income, and conduct accounting treatment on
the financial asset in accordance with Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments.
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
√ Applicable □ Not applicable
Contents and causes of changes in accounting policies Approval procedure Remarks
The Ministry of Finance promulgated the New Leasing Standards in
December 2018. According to the requirements of the Ministry of Finance, for
enterprises listed at home and abroad and enterprises listed overseas and adopting
international financial reporting standards or accounting standards for business The fourth resolution of the
enterprises to prepare financial statements, the New Leasing Standards will be eighth meeting of board of
directors
implemented as of January 1, 2019; For other enterprises that implement the
Accounting Standards for Business Enterprises, the New Leasing Standards shall
be implemented as of January 1, 2021. According to the documents of the
Ministry of Finance, the company changed its accounting policies accordingly.
1) The company will, since January 1, 2021, implement the "Accounting Standards for Business Enterprises
No.21-lease" revised by the Ministry of Finance (hereinafter referred to as the new lease standards). In accordance
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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 period.
2）According to the relevant provisions of the New Leasing Standards, all the leases of the Company are
short-term leases, that is, leases with a lease period of no more than 12 months. It meets the conditions of
simplified processing, so it is not required to adjust the financial statements.
(2) Change of main accounting estimations
□ Applicable √ 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 2021
√ Applicable □ Not applicable
Whether need to adjust the balance sheet account at the beginning of the year
□ Yes √ No
Explanation of the reasons why there is no need to adjust the balance sheet accounts at the beginning of the year:
According to the relevant provisions of the “No. 21 Accounting Standards for Business Enterprises -Leases", the
Company's lease items are all short-term leases, that is, the lease term of the leases is no more than 12 months, wh
ich meets the conditions for simplified processing, thus there is no need to adjust the financial statements.
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2021
□ Applicable √ Not applicable
45.Other
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
The output tax is calculated on the basis of the income
from sales of goods and taxable services calculated
VAT according to the provisions of the tax law. After 13%，6%
deducting the input tax allowed to be deducted in the
current period, the difference is the VAT payable
City maintenance and construction tax Turnover tax payable 5%，7%
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Enterprise income tax Amount of income taxable 15%，20%，25%
For those on price basis, taxes are paid at 1.2% of the
balance of original value of the property after
House tax 1.2%，12%
deducting of 30%; for those on 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 Steam Turbine Engineering 15%
Co.,Ltd.
Kunming Hangzhong Steam Turbine Power Technology Service C., Ltd., Guangxi Hangzhong
Steam Turbine Technology Service Co., Ltd., Tangshan Hangneng Steam Turbine Power Service
Co., Ltd.,Jilin Hangzhong Steam Turbine Technology Service Co., Ltd., Chengdu Hangzhongneng 10%
Technology Co., Ltd.,Urumqi Hangzhong Steam Turbine Technology Service Co., Ltd. and
Luoyang Hangqi Steam Turbine Technology Service Co., Ltd.
Hangzhou Zhongneng Steam
Turbine Power (Indonesia) Co.,
Ltd. registered in Indonesia
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd.
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〔2020〕No.251) 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 January -June 2021 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 January -June 2021.
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 and the Announcement on
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
the Implementation of Preferential Income Tax Preferential Policies for Small and Micro Enterprises and
Individual Industrial and Commercial Businesses (Finance and Taxation No.12,2021), 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 January -June 2021. For the part of annual taxable
income not exceeding 1 million yuan, it shall be included in the taxable income by 25%, and the enterprise
income tax shall be calculated and paid at 10%; 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
VII. Notes to the Consolidated Financial Statements
1.Monetary funds
In RMB
Items End of term Beginning of term
Cash in stock 78,942.87 141,788.02
Bank deposit 1,345,314,409.81 1,710,528,295.66
Other monetary fund 107,849,353.67 118,811,103.81
Total 1,453,242,706.35 1,829,481,187.49
Incl: Total of accounts saved overseas 8,208,030.18 7,598,393.25
The total amount of money that has restrictions on use due to
107,777,286.14 119,272,908.04
mortgage , pledge or freezing
At the end of the period, the bank deposits include RMB 2,000.00 of ETC deposit with limited use. At the end
of the period, other monetary funds included RMB 106,818,486.14 of restricted bank acceptance bill, RMB
956,800.00 of guarantee deposit, RMB 5018.87 of unrestricted deposit investment and RMB 69048.66 of
unrestricted deposit interest that can be transferred and used 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
1,157,757,871.22 1,021,681,809.34
loss
Of which ：
Equity instrument investment 1,757,871.22 1,681,809.34
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Financing product 1,156,000,000.00 1,020,000,000.00
Of which：
Total 1,157,757,871.22 1,021,681,809.34
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 95,147,376.54 95,760,020.23
Commercial acceptance 81,662,013.69 22,347,056.44
Total 176,809,390.23 118,107,076.67
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Proportion( Proportio value Proportion( Proportio value
Amount Amount Amount Amount
%) %)
n(%) n(%)
Of which：
Accrual of bad debt
200,868, 24,058,6 176,809,3 123,909,3 5,802,300.2 118,107,0
provision by 100.00% 11.98% 100.00% 4.68%
032.04 41.81 90.23 76.92 5 76.67
portfolio
Of which：
95,147,3 95,147,37 95,760,02 95,760,02
Bank acceptance 47.37% 77.28%
76.54 6.54 0.23 0.23
Commercial 105,720, 24,058,6 81,662,01 28,149,35 5,802,300.2 22,347,05
52.63% 22.76% 22.72% 20.61%
655.50 41.81 3.69 6.69 5 6.44
acceptance
200,868, 24,058,6 176,809,3 123,909,3 5,802,300.2 118,107,0
Total 100.00% 11.98% 100.00% 4.68%
032.04 41.81 90.23 76.92 5 76.67
Accrual of bad debt provision by single item: 24,058,641.81 yuan
In RMB
End of term
Name
Book balance Bad debt provision Proportion%
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Commercial acceptance 105,720,655.50 24,058,641.81 22.76%
Total 105,720,655.50 24,058,641.81 --
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
Category Opening balance Reversed or Closing balance
Accrual Write-off Other
collected amount
Commercial
acceptance by 5,802,300.25 18,256,341.56 0.00 0.00 24,058,641.81
portfolio term
Total 5,802,300.25 18,256,341.56 24,058,641.81
Of which the significant actual write-off accounts receivable:
□ Applicable √ Not applicable
（3）Notes receivable pledged by the Company at the end of the period
In RMB
Items Amount
Commercial acceptance 35,800,000.00
Total 35,800,000.00
（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
Items
period-end the period-end
Bank acceptance bill 15,891,907.68 0.00
Commercial acceptance 0.00 17,721,232.32
Total 15,891,907.68 17,721,232.32
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
（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
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 Book
Proportio Proportio value Proportio Proportio Book value
Amount Amount Amount Amount
n% n% n% n%
Accrual of bad debt
2,817,01 2,817,01 2,817,017 2,817,017
provision by single 0.09% 100.00% 0.11% 100.00%
7.89 7.89 .89 .89
item
Including：
Accrual of bad debt 2,967,12 955,091, 2,012,036 2,607,988 989,190,0 1,618,798,3
99.91% 32.19% 99.89% 37.93%
provision by portfolio 7,270.58 232.80 ,037.78 ,316.42 10.96 05.46
Including：
2,969,94 957,908, 2,012,036 2,610,805 992,007,0 1,618,798,3
Total 100.00% 32.25% 100.00% 38.00%
4,288.47 250.69 ,037.78 ,334.31 28.85 05.46
Accrual of bad debt provision by single item：
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Not expected to be
Dabi Oleo 2,817,017.89 2,817,017.89 100.00%
recovered
Total 2,817,017.89 2,817,017.89 -- --
Accrual of bad debt provision by portfolio: 955,091,232.80 yuan
In RMB
Name Closing balance
85
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Book balance Bad debt provision Proportion
Accrual of bad debt provision
2,967,127,270.58 955,091,232.80 32.19%
by portfolio
Total 2,967,127,270.58 955,091,232.80 --
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
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 1,243,132,900.47
1-2 years 485,067,073.89
2-3 years 391,636,887.22
Over 3 years 850,107,426.89
3-4 years 245,858,239.59
4-5 years 110,756,232.68
Over 5 years 493,492,954.62
Total 2,969,944,288.47
(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 Closing balance
Accrual collected Write-off Other
amount
Accrual of bad debt
provision by single 2,817,017.89 2,817,017.89
item
Accrual of bad debt
989,190,010.96 -31,576,749.61 2,522,028.55 955,091,232.80
provision by portfolio
Total 992,007,028.85 -31,576,749.61 2,522,028.55 957,908,250.69
86
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(3) The actual write-off accounts receivable
None
（4）The ending balance of account receivables owed by the imputation of the top five parties
Name Closing balance Proportion% Bad debt provision
Customer 1 764,736,822.16 25.75% 234,378,296.89
Customer 2 342,207,279.90 11.52% 27,164,908.97
Customer 3 225,264,896.36 7.58% 108,301,694.91
Customer 4 60,610,034.00 2.04% 22,458,377.21
Customer 5 43,827,686.19 1.48% 4,039,049.44
Total 1,436,646,718.61 48.37%
（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 994,303,517.76 774,663,468.76
Total 994,303,517.76 774,663,468.76
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:
□ Applicable √ Not applicable
7. Prepayments
（1）Age analysis
In RMB
Aging End of term Beginning of term
87
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Book balance Proportion(%) Book balance Proportion(%)
Within 1 year 334,925,965.68 89.81% 505,778,971.10 87.56%
1-2 years 21,307,142.28 5.09% 46,784,353.50 8.10%
2-3 years 15,015,400.00 3.59% 17,087,017.61 2.96%
Over 3 years 6,362,655.59 1.51% 7,954,365.64 1.38%
Total 377,611,163.55 -- 577,604,707.85 --
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 138,537,020.00 36.69%
China United Engineering Co., Ltd. 86,985,412.00 23.04%
Mitsubishi Hitachi Electric Gas Engine Service (Nanjing) Co., Ltd 41,309,723.26 10.94%
Shanghai Jiyi Thermal Energy Technology Co., Ltd. 28,896,140.00 7.65%
Wuxi Zhongding Integration Technology Co., Ltd. 22,190,000.00 5.88%
Total 317,918,295.26 84.20%
8. Other account receivable
In RMB
Nature Closing balance Opening balance
Dividend receivable 43,605,292.60 43,605,292.60
Other receivable 25,789,676.98 20,786,864.53
Total 69,394,969.58 64,392,157.13
（1）Interest receivable
None
（2）Dividend receivable
（1）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 43,605,292.60 43,605,292.60
Total 43,605,292.60 43,605,292.60
2) Significant dividend receivable aged over 1 year
In RMB
Items Closing balance Aging Reason Whether occurred
88
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
impairment and its
judgment basis
The balance of 1-2 years is Equity pledge, The
15778000 yuan，The balance of
formalities for lifting
Hangzhou Bank 43,605,292.60 2-3 years is 11,270,000.00 yuan, No
The balance of over 3 years is the ban have not been
16557292.60 yuan. completed.
Total 43,605,292.60 -- -- --
3）Bad-debt provision
□ Applicable √ Not applicable
Other note：
（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 single term
Accrual of bad debt provision by portfolio: 38,429,854.43 35,240,866.98
Total 38,429,854.43 35,240,866.98
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses for the entire
Bad Debt Reserves Expected credit losses Expected credit loss over Total
duration (credit impairment
over the next 12 months life (no credit impairment)
occurred)
Balance as at January
849,462.66 361,830.44 13,242,709.35 14,454,002.45
1, 2021
Balance as at January
—— —— —— ——
1, 2021 in current
-23,730.76 23,730.76
——Transfer to stage
-29,293.70 29,293.70
III
Provision in the current
243,751.42 -20,485.46 -2,037,090.96 -1,813,825.00
period
Balance as at June 30,
1,069,483.32 335,782.04 11,234,912.09 12,640,177.45
2021
Loss provision changes in current period, change in book balance with significant amount
□Applicable √ Not applicable
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 21,916,242.99
1-2 years 3,413,449.84
2-3 years 2,096,119.00
Over 3 years 11,004,042.60
3-4 years 689,689.49
4-5 years 760,220.07
Over 5 years 9,554,133.04
Total 38,429,854.43
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
Opening Closing
Category Reversed or collected
balance Accrual Write-off Other balance
amount
Accrual of bad debt provision by
14,454,002.45 -1,813,825.00 12,640,177.45
portfolio:
Total 14,454,002.45 -1,813,825.00 12,640,177.45
4) The actual write-off of the other accounts receivable
None
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
Closing Closing balance of bad
Name Nature Aging balance of the accounts
balance debt provision
receivable
Shanghai Customs Over 5
Deposit 3,710,320.94 9.65% 3,710,320.94
years
Waigaoqiao Office
Temporary
Beijing No.1 Intermediate Within 1
payment 1,306,350.00 3.40% 65,317.50
People's Court year
receivable
90
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Temporary
Zhejiang Wansheng Canal Within 1
payment 1,255,101.08 3.27% 62,755.05
Steel and Cable Co., Ltd. year
receivable
Within 1
Huadian Tendering Co., Ltd. Deposit 950,000.00 2.47% 47,500.00
year
Shandong Shaohua Project Within 1
Deposit 800,000.00 2.08% 40,000.00
Management Co., Ltd. year
Total -- 8,021,772.02 -- 20.87% 3,925,893.49
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
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 555,922,915.64 126,037,190.21 429,885,725.43 555,853,674.67 126,037,190.21 429,816,484.46
Goods in progress 597,681,174.91 62,846,628.97 534,834,545.94 873,917,291.98 62,846,628.97 811,070,663.01
Stock goods 1,227,251,004.38 131,320,392.73 1,095,930,611.65 1,077,831,518.71 146,965,552.72 930,865,965.99
Total 2,380,855,094.93 320,204,211.91 2,060,650,883.02 2,507,602,485.36 335,849,371.90 2,171,753,113.46
(2) Falling price reserves of inventory
In RMB
91
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Increased amount Decreased amount
Items Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 126,037,190.21 126,037,190.21
Goods in progress 62,846,628.97 62,846,628.97
Stock goods 146,965,552.72 1,772,402.80 17,417,562.79 131,320,392.73
Total 335,849,371.90 1,772,402.80 17,417,562.79 320,204,211.91
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
None
(4) Completed unsettled assets formed from the construction contact at the period-end
None
10.Contact assets
In RMB
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Quality
570,713,216.78 50,320,322.90 520,392,893.88 545,823,724.87 59,254,399.70 486,569,325.17
guarantee
Total 570,713,216.78 50,320,322.90 520,392,893.88 545,823,724.87 59,254,399.70 486,569,325.17
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:
□ Applicable √ Not applicable
Provision for impairment of contract assets in the current period
In RMB
Reversal/write-off in
Items Current accrual Change amount Reason
current period
Accrual by single item 0.00
Accrual by portfolio -8,934,076.80 Accrual by aging
Total -8,934,076.80 0.00 0.00 --
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
11. Assets divided as held-to-sold
None
12. Non-current assets due within 1 year
None
13. Other current assets
In RMB
Items
Year-end balance Year-beginning balance
VAT to be deducted 44,025,878.35 39,814,956.16
Input tax deductible
Prepaid income tax 1,270,811.36 6,437,194.30
Rent charge 1,897,814.76
Profit and loss of property to the disposed -697,157.29
Treasury bonds 814,851.80
Total 44,599,532.42 48,964,817.02
Other note：
14.Creditor's right investment：None
15.Other Creditor's right investment: None
16. Long-term accounts receivable : None
17. Long-term equity investment
In RMB
Increase /decrease
Profits Closing
and losses Cash Withdraw
balance of
Opening on Other Closing
Addition Decrease investmen Change bonus or al of
Investees impairme
balance al in comprehensi s in balance
ts profits impairme Other
investme investme ve other nt
nt Recognize equity announce nt
nt income provision
d under
the equity d to issue provision
method
I. Joint venture
2. Affiliated Company
Zhejiang 11,899,308. -11,899,308.
84 84
Zhongrun
93
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Gas
turbine
technolog
y Co.,
Ltd.
Zhejiang
Ranchuan
g Turbine 11,456,132. 11,456,132.
77 77
Machiner
y Co.,
Ltd.
23,355,441. -11,899,308. 11,456,132.
Subtotal
61 84 77
23,355,441. -11,899,308. 11,456,132.
Total
61 84 77
18. Other equity instruments investment
In RMB
Items Closing balance Opening balance
Hangzhou Bank 4,010,159,288.50 4,056,378,073.52
Total 4,010,159,288.50 4,056,378,073.52
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Amount of other Reasons for other
Reasons for being measured at fair
Recognized comprehensive comprehensive
Accumulating Accumulating value and whose changes are
Name dividend income transferred income transferred
profit profit included in other comprehensive
income to retained to retained
income
earnings earnings
The shares of Hangzhou Bank Co.,
Ltd. held by the company cannot
pass the contract cash flow
characteristic test, but the company
Hangzhou does not hold the equity instrument
95,156,322.10
Bank for the purpose of trading, so it is
designated as a financial asset
measured at fair value and its
changes are included in other
comprehensive income.
94
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Other note：
19.Other non-current Financing assets
In RMB
Items Closing balance Opening balance
Classified as financial assets measured by f
air value and whose changes are included i 16,503,105.13 18,376,081.45
n the current profit and loss
Total 16,503,105.13 18,376,081.45
20. Investment property
(1) Investment property adopted the cost measurement mode
□ Applicable √ Not applicable
(2) Investment property adopted fair value measurement mode
□ Applicable √ Not applicable
(3) Details of investment property failed to accomplish certification of property
None
21. Fixed assets
In RMB
Items Closing balance Opening balance
Fixed assets 1,243,170,988.41 1,094,505,770.45
Total 1,243,170,988.41 1,094,505,770.45
(1) Details
In RMB
Houses & Machinery Transportation
Items Office equipment Total
buildings equipment equipment
I. Original price
1. Balance at period-beginning 1,163,341,053.88 804,685,905.45 26,557,841.58 52,653,676.15 2,047,238,477.06
2.Increase in the current period 371,928.16 223,696,789.77 989,703.71 1,631,198.14 226,689,619.78
(1) Purchase 0.00 3,307,531.09 952,163.71 625,294.72 4,884,989.52
95
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
（ 2 ）
371,928.16 212,973,169.01 0.00 826,808.61 214,171,905.78
Transferred from construction in progress
(3)Increased of Enterprise
0.00 7,416,089.67 37,540.00 179,094.81 7,632,724.48
Combination
0.00
3.Decreased amount of the period 181,399,807.73 523,025.82 1,508,269.95 860,242.26 184,291,345.76
（1）Dispose 181,399,807.73 523,025.82 1,508,269.95 860,242.26 184,291,345.76
0.00 0.00
4. Balance at period-end 982,313,174.31 1,027,859,669.40 26,039,275.34 53,424,632.03 2,089,636,751.08
II.Accumulated amortization 0.00
1.Opening balance 245,275,984.77 646,156,116.39 20,552,799.62 35,903,312.81 947,888,213.59
2.Increased amount of the period 16,994,571.95 19,975,638.03 551,835.64 1,812,769.80 39,334,815.42
(1) Withdrawal 16,994,571.95 19,975,638.03 551,835.64 1,812,769.80 39,334,815.42
0.00
3.Decrease in the reporting period 138,092,408.51 976,525.42 975,731.22 712,601.19 140,757,266.34
（1）Disposal 138,092,408.51 976,525.42 975,731.22 712,601.19 140,757,266.34
0.00
4.Closing balance 124,178,148.21 665,155,229.00 20,128,904.04 37,003,481.42 846,465,762.67
III. Impairment provision 0.00
1.Opening balance 1,504,928.24 3,263,331.46 0.00 76,233.32 4,844,493.02
2.Increase in the reporting period 0.00 0.00 0.00 0.00 0.00
（1）Withdrawal 0.00
0.00
3.Decrease the reporting period 1,504,928.24 3,263,331.46 0.00 76,233.32 4,844,493.02
（1）Disposal 1,504,928.24 3,263,331.46 0.00 76,233.32 4,844,493.02
0.00
4. Closing balance 0.00 0.00 0.00 0.00 0.00
IV. Book value 0.00
1.Book value of the period-end 858,135,026.10 362,704,440.40 5,910,371.30 16,421,150.61 1,243,170,988.41
2.Book value of the period-begin 916,560,140.87 155,266,457.60 6,005,041.96 16,674,130.02 1,094,505,770.45
(2) List of temporarily idle fixed assets
None
96
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(3) Fixed assets leased in from financing lease
None
(4) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Steam turbine power Building 188,915,073.76 In process
Steam Turbine Heavy Industry Plant -Complete sets of factory 119,176,700.79 In process
Steam Turbine Heavy Industry Plant -Jingzi Large Workshop 96,527,022.05 In process
Steam Turbine Heavy Industry Plant -Rotor workshop 77,131,911.33 In process
Steam Turbine Heavy Industry Plant -Small and Medium Welding In process
68,625,345.20
Heat Treatment Workshop
Steam Turbine Heavy Industry Plant -Complete Plant 38,566,977.82 In process
Steam Turbine Heavy Industry Plant -Distribution Centre 36,342,957.89 In process
Steam Turbine Heavy Industry Plant -Canteen and Staff Activity In process
17,697,414.06
Centre
Steam Turbine Heavy Industry Plant -Joint station 10,019,907.70 In process
Subtotal 653,003,310.60
（5）Liquidation of fixed assets
None
22. Construction in progress
In RMB
Items Closing balance Opening balance
Construction in progress 749,670,180.36 804,921,709.95
Total 749,670,180.36 804,921,709.95
(1) List of construction in progress
In RMB
Items Closing balance Opening balance
97
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
New Plant project 727,823,457.45 727,823,457.45 784,750,054.12 784,750,054.12
Software project 4,735,700.77 4,735,700.77 2,995,615.18 2,995,615.18
Other project 13,846,465.51 13,846,465.51 13,821,041.54 13,821,041.54
Prepayment for
equipment or 3,264,556.63 3,264,556.63 3,354,999.11 3,354,999.11
projects
Total 749,670,180.36 749,670,180.36 804,921,709.95 804,921,709.95
(2)Changes of significant construction in progress
In RMB
Includin
g
Transferr g: Capitaliz
Capitaliz Source
Name of Opening ed to Other End Proportio Project capitaliz ation of
Budget Increase ation of of
project balance fixed decrease balance n% process ation of interest
interest funding
assets interest rate (%)
this
period
New
173,328. 784,750, 155,073, 212,000, 727,823, 9,828,06 857,666.
Plant 82.72% 82.72% 1.20% Other
76 054.12 874.42 471.09 457.45 4.02 68
project
Software 2,995,61 1,740,08 4,735,70
0.00 0.00 Other
5.18 5.59 0.77
project
Other 13,821,0 2,106,41 2,080,99 13,846,4
Other
project 41.54 6.18 2.21 65.51
Prepaym
ent for
3,354,99 90,442.4 3,264,55
equipme Other
9.11 8 6.63
nt or
projects
173,328. 804,921, 158,920, 214,171, 749,670, 9,828,06 857,666.
Total 0.00 -- -- --
76 709.95 376.19 905.78 180.36 4.02 68
(3) List of the withdrawal of the impairment provision of the construction in progress
None
98
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
（4）Engineering material
None
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
None
26. Intangible assets
(1) Information
In RMB
Items Land using right Patent Non patent technology Software Total
I. Original price
1. Balance at period-beginning 332,298,312.33 309,433.96 12,986,647.20 345,594,393.49
2.Increase in the current period 0.00 0.00 8,402,203.09 8,402,203.09
(1) Purchase 0.00 0.00 402,203.09 402,203.09
(2)Internal Development 0.00 0.00 0.00 0.00
(3)Increased of Enterprise Combination 0.00 0.00 8,000,000.00 8,000,000.00
3.Decreased amount of the period 59,022,553.08 0.00 0.00 59,022,553.08
（1）Disposal 59,022,553.08 0.00 0.00 59,022,553.08
4.Closing balance 273,275,759.25 309,433.96 21,388,850.29 294,974,043.50
II.Accumulated amortization
1.Opening balance 68,432,571.28 269,390.78 3,080,117.14 71,782,079.20
99
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
2.Increased amount of the period 2,657,103.86 2,735.10 5,598,353.02 8,258,191.98
(1) Withdrawal 2,657,103.86 2,735.10 5,598,353.02 8,258,191.98
3.Decreased amount of the period 24,513,487.73 0.00 0.00 24,513,487.73
（1）Disposal 24,513,487.73 0.00 0.00 24,513,487.73
4.Closing balance 46,576,187.41 272,125.88 8,678,470.16 55,526,783.45
III. Impairment provision
1.Opening balance
2.Increased amount of the period 0.00
(1) Withdrawal
3.Decreased amount of the period 0.00
（1）Disposal
4.Closing balance 0.00
IV. Book value
1.Closing book value 226,699,571.84 37,308.08 12,710,380.13 239,447,260.05
2.Opening book value 263,865,741.05 40,043.18 9,906,530.06 273,812,314.29
(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
100
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
30. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income Deductible temporary Deferred income
difference tax assets difference tax assets
Provision for Asset Impairment 1,362,704,341.43 210,360,768.60 1,409,307,333.29 217,500,327.81
Internal trade profit not realized 63,380,089.05 10,486,668.31 53,583,539.53 8,037,530.93
Revenue from changes in fair value generated
by financial assets classified at fair value 36,743,016.67 5,511,452.50 34,946,102.23 5,241,915.33
through profit or loss
Temporary difference such as amortizing of
708,010.50 106,201.59 708,010.50 106,201.59
software expense
Relocation compensation 1,180,347,608.38 177,367,806.72 1,187,246,121.02 178,402,589.13
Total 2,643,883,066.03 403,832,897.72 2,685,791,106.57 409,288,564.79
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of investments
3,619,205,248.50 542,880,787.28 3,665,424,033.52 549,813,605.04
in other equity instruments
Accumulated depreciation 4,844,493.02 726,673.95
Total 3,619,205,248.50 542,880,787.28 3,670,268,526.54 550,540,278.99
（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Deferred Income Tax Temporarily Deductable
Deferred Income Tax Temporarily Deductable
Assets or Liabilities at or Taxable Difference at
Items Assets or Liabilities at or Taxable Difference at
the Beginning of Report the Beginning of Report
the End of Report Period the End of Report Period
Period Period
Deferred income tax
403,832,897.72 409,288,564.79
assets
Deferred income tax
542,880,787.28 550,540,278.99
liabilities
101
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(4)Details of income tax assets not recognized
Items Balance in year-end Balance in year-begin
Deductible temporary difference -806.22 2,904,262.90
Deductible loss 1,445,971.69 11,420.89
Total 1,445,165.47 2,915,683.79
(5) The un-recognized deductible losses of deferred income tax assets will due in the following years:
Year Balance in year-end Balance in year-begin Remark
2022 11,420.89 11,420.89
2023
2024
2025
2026 1,434,550.80
Total 1,445,971.69 11,420.89 --
31.Other Non-current assets：None
32. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Items Closing balance Opening balance
Pledge borrowings 0.00 0.00
Mortgage Borrowings 48,800,000.00 38,846,473.78
Guarantee Borrowing 165,000,000.00 177,876,329.63
Credit borrowings 0.00 0.00
Total 213,800,000.00 216,722,803.41
(2) List of the short-term borrowings overdue but not return
None
33. Transactional financial liabilities
None
102
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
34. Derivative financial liability
None
35.Notes payable
In RMB
Items Closing balance Opening balance
Bank acceptance bill 221,949,985.82 230,724,303.75
Total 221,949,985.82 230,724,303.75
36. Accounts payable
(1) List of accounts payable
In RMB
Items Closing balance Opening balance
Goods 1,389,192,467.21 1,078,949,831.94
Equipment and Engineering 59,841,967.13 128,847,988.84
Total 1,449,034,434.34 1,207,797,820.78
(2) Notes of the accounts payable aging over one year
None
37. Advances received
None
38.Contract liabilities
In RMB
Items Closing balance Opening balance
Goods 2,885,791,451.36 2,871,186,991.05
Total 2,885,791,451.36 2,871,186,991.05
39. Payroll payable
(1) List of Payroll payable
In RMB
Items Beginning of term Increased this period Decreased this period End of term
103
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Short-term compensation 89,959,718.32 405,202,754.35 398,283,429.98 96,879,042.69
Post-employment
benefits - defined 26,440,438.80 49,990,735.04 56,381,307.02 20,049,866.82
contribution plans
Total 116,400,157.12 455,193,489.39 454,664,737.00 116,928,909.51
（2）Presentation of short-term compensation
In RMB
Items Opening balance Increase Decrease Closing balance
(1) Salary, bonus,
71,927,655.58 324,495,541.16 324,630,379.68 71,792,817.06
allowance and subsidy
(2) Employee benefits 16,405,525.53 12,448,218.15 3,957,307.38
(3) Social insurance
7,418,186.81 26,646,737.50 24,185,144.60 9,879,779.71
expenses
Including: medical
7,349,855.63 25,962,400.06 23,602,420.32 9,709,835.37
insurance premium
Work-related injury
68,331.18 683,347.32 581,734.16 169,944.34
insurance premium
Maternity insurance
990.12 990.12 0.00
premium
(4) Housing fund 91,808.96 28,298,940.00 28,295,202.00 95,546.96
(5) Labor union
expenditures and
10,522,066.97 9,356,010.16 8,724,485.55 11,153,591.58
employee education
expenses
6. Short-term paid
0.00 0.00
absence
7. Short-term
0.00 0.00
profit-sharing plan
Total 89,959,718.32 405,202,754.35 398,283,429.98 96,879,042.69
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
1.Basic pension
3,193,953.31 34,670,763.25 29,633,870.80 8,230,845.76
insurance
2. Unemployment
114,069.76 1,218,973.79 1,037,005.22 296,038.33
insurance
3. Enterprise annual fee 23,132,415.73 14,100,998.00 25,710,431.00 11,522,982.73
Total 26,440,438.80 49,990,735.04 56,381,307.02 20,049,866.82
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Other note：
40. Taxes Payable
In RMB
Items Closing balance Opening balance
VAT 74,954,098.43 55,676,116.89
228,645,004.69 208,118,129.72
Enterprise Income tax
Individual Income tax 1,273,035.43 2,438,046.35
City Construction tax 1,634,600.23 6,111,245.89
Property tax 350,463.35 1,427,604.15
Land use tax 98,643.50 3,407,434.59
Education subjoin 708,019.15 2,618,495.23
Locality Education subjoin 465,393.89 1,745,663.49
Other 82,630.75 366,905.29
Total 308,211,889.42 281,909,641.60
Other note：
41.Other account payable
In RMB
Items Closing balance Opening balance
Interest payable 136,986.30
Other account payable 29,268,335.65 75,212,591.46
Total 29,405,321.95 75,212,591.46
（1) Interest payable
In RMB
Items Closing balance Opening balance
Interest on short-term borrowings 136,986.30
Total 136,986.30
(2) Dividends payable
None
105
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Deposit 6,898,102.41 17,621,478.00
Provisional account payable 18,543,859.73 55,896,456.04
Other 3,826,373.51 1,694,657.42
Total 29,268,335.65 75,212,591.46
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 Closing balance Opening balance
Long-term Borrowing loans due within 1
500,000.00 1,001,088.89
year
Total 500,000.00 1,001,088.89
44. Other current-liabilities
In RMB
Items Closing balance Opening balance
Output tax to be transferred 372,267,097.23 370,383,121.84
Maintenance and renovation costs 3,387,212.39 3,723,419.52
Total 375,654,309.62 374,106,541.36
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
Mortgage borrowings 21,600,000.00 21,623,520.00
Total 21,600,000.00 21,623,520.00
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
46. Bonds payable
（1）Bond payable
None
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability
None
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
47. Lease liability
None
48. Long-term payable
In RMB
Items Closing balance Opening balance
Long term account payable 330,000.00 156,493,666.66
Special Payable 152,907,596.83 249,378,950.11
Total 153,237,596.83 405,872,616.77
(1) Long-term payable listed by nature of the account
In RMB
Items Closing balance Opening balance
CDB investment fund 155,000,000.00
Income payable of CDB 1,163,666.66
Drawing in administrative restructuring 330,000.00 330,000.00
Total 330,000.00 156,493,666.66
Other notes：
According to the relevant agreement of the National Development Fund Investment Contract (hereinafter
referred 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
107
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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;From 2019 onwards, Hangzhou Steam Turbine Group repurchased its holding shares of Steam
Turbine Heavy Industry Co., Ltd from CDB Development Fund in installments and resold them to the Company a
t the same price. As of the end of 2020, Hangzhou Steam Turbine Group has completed two phases of repurchase
and returned the investment fund of RMB 53,000,000.00. The four parties re-signed the "Equity Transfer Agreeme
nt" on June 15, 2021. According to the latest agreement, Hangzhou Steam Turbine Group shall repurchase the rem
aining shares of Steam Turbine Heavy Industry Co., Ltd held by CDB Development Fund in advance and resell th
em to the Company at the same price. As of June 30, 2021, Hangzhou Steam Turbine Group has completed the ear
ly repurchase work and returned all remaining investment funds of RMB 155,000,000.00. This investment has acc
umulatively recognized a payable income of RMB 10,683,666.68, of which RMB 857,666.68 is recognized for th
e current period.
(2) Special Payable
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason
period
Compensation for
246,942,943.24 96,605,806.14 150,337,137.10
relocation
Funding for
2,436,006.87 557,290.00 422,837.14 2,570,459.73
Personnel Training
Total 249,378,950.11 557,290.00 97,028,643.28 152,907,596.83 --
Other note：
The decrease in the current period is caused by the use and carry-over of compensation for expropriation and
relocation, in which the corresponding part of the relocation expenses of RMB 96,605,806.14 in the current period
is transferred to other income.
49. Long term payroll payable
None
50. Estimated liabilities
None
51. Deferred income
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason
period
Receive government
Government Subsidy 489,416,290.74 96,605,806.14 103,504,318.79 482,517,778.09
subsidies
Total 489,416,290.74 96,605,806.14 103,504,318.79 482,517,778.09 --
Details of government subsidies
108
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Please refer to Note X (7)84 3 of the Financial Statements for details of the amount of government subsidies
included in the current profits and losses.
52. Other non-current liabilities
None
53. Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Balance
Issuing of new Transferred
Year-beginning Bonus shares Other Subtotal year-end
share from 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 the current Decrease in the current Year-end balance
Items
period period
Capital premium 92,942,694.56 92,942,694.56
Other capital reserves 60,674,925.09 60,674,925.09
Total 153,617,619.65 153,617,619.65
56. Treasury stock
In RMB
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
period period
Treasury stock 144,078,948.09 144,078,948.09
Total 144,078,948.09 144,078,948.09
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
57. Other comprehensive income
In RMB
Occurred current term
Less：
Less：Prior
Amount
period
transferred
included
into profit
in other After-tax
Amount and loss in Less： After-tax
Opening composite attribute to Closing
Items incurred the current Income attribute to
balance income minority balance
before period that tax the parent
transfer to shareholde
income tax recognied expenses company
retained r
into other
income in
comprehensi
the current
ve income in
period
prior period
1. Other comprehensive income
3,115,610,4 -46,218,78 -6,932,817 -39,285,96 3,076,32
that cannot be reclassified in the 0.00 0.00 0.00
28.47 5.02 .76 7.26 4,461.21
loss and gain in the future
Including: Changes in fair value
3,115,610,4 -46,218,78 -6,932,817 -39,285,96 3,076,32
of investments in other equity
28.47 5.02 .76 7.26 4,461.21
instruments
II. Other Comprehensive income
619,368.8 263,724.7 355,644.0 -384,316
that will be reclassified -648,041.63 0.00 0.00 0.00
8 9 9 .84
subsequently to profit or loss
Including: Difference of
619,368.8 263,724.7 355,644.0 -384,316
translating of foreign currency -648,041.63
8 9 9 .84
accounts
Total of other comprehensive 3,114,962,3 -45,599,41 -6,932,817 -39,022,24 355,644.0 3,075,94
0.00 0.00
income 86.84 6.14 .76 2.47 9 0,144.37
58.Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 17,699,635.27 1,778,581.54 2,222,057.07 17,256,159.74
Total 17,699,635.27 1,778,581.54 2,222,057.07 17,256,159.74
59. Surplus reserves
110
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus
621,112,807.78 621,112,807.78
reserves
Total 621,112,807.78 621,112,807.78
60. Retained profit
In RMB
Items Amount of this period Amount of last period
After adjustments: Retained profits at the period
3,587,465,039.91 3,276,880,091.53
beginning
Add：Net profit belonging to the owner of the
425,641,416.95 459,345,443.38
parent company
Less: Common stock dividend payable 183,614,649.99 148,760,495.00
Retained profit at the end of this term 3,829,491,806.87 3,587,465,039.91
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 2,950,865,460.38 2,111,754,998.28 2,014,106,118.81 1,406,690,502.53
Other 15,154,990.69 46,841,273.28 7,561,307.46 4,782,964.35
Total 2,966,020,451.07 2,158,596,271.56 2,021,667,426.27 1,411,473,466.88
Information related to performance obligations:
The Company’s sales segment has entered into legal and effective sales contracts/orders with the customers. The
111
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
obligation at 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 RMB5,878,606,742.67.
62.Taxes and surcharges
In RMB
Items Amount of this period Amount of last period
City maintenance and construction tax 7,619,760.82 5,680,290.68
Education surtax 3,316,095.14 2,463,698.33
House tax 564,024.62 348,901.29
Land use tax -58,880.85 98,643.50
vehicle and vessel tax 24,024.77 23,420.08
Stamp tax 794,169.94 589,540.08
Locality Education surcharge 2,213,346.49 1,642,445.84
Total 14,472,540.93 10,846,939.80
63. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 32,466,137.73 31,552,848.27
Transportation
Travel expenses 11,993,591.77 7,154,671.71
Business reception expenses 6,619,365.08 3,275,416.18
Consulting service fee 11,298,490.90 12,063,577.89
Conferences 431,217.85 497,005.86
Three charge 9,567,390.40 2,318,038.13
Advertising fee 719,647.22 213,848.82
Office expenses 513,590.13 434,985.47
Unit premium 498,385.84 199,193.37
Other 2,659,490.58 2,610,641.74
Total 76,767,307.50 60,320,227.44
112
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
64. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 229,598,860.23 161,494,325.81
Enterprise relocation costs 18,805,207.57 50,087,508.78
Asset depreciation and amortizing 12,347,434.02 13,405,445.30
Business reception expenses 1,554,270.94 1,212,732.17
Rental fee, House rental, property
15,974,177.40 8,307,176.25
management, water and power
Traveling fees 2,757,693.74 2,136,128.58
Material, low-value-consumable 3,166,168.88 1,004,457.29
Office expenses 1,431,960.79 1,343,574.69
Repair costs 2,927,179.65 4,308,076.64
Transpiration expenses 5,954,609.64 3,061,654.14
Other 35,423,178.85 14,738,720.53
Total 329,940,741.71 261,099,800.18
65. R&D Expense
In RMB
Items Amount of this period Amount of last period
Labor cost 70,539,455.40 53,727,113.87
Direct materials 88,979,831.98 41,609,825.30
Depreciation expenses 7,520,157.04 6,079,964.29
Test and inspection fee 639,897.34 106,249.26
Commissioned research & development 405,660.36 0.00
Other 5,418,552.57 1,705,763.21
Total 173,503,554.69 103,228,915.93
66. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expense 8,304,393.46 3,356,373.45
Less: Incoming interests 7,229,636.28 14,883,294.02
113
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Exchange gains/losses -9,407,466.51 -8,469,678.49
Commission 1,198,441.69 1,027,188.78
Other 64,174.42 -245,025.84
Total -7,070,093.22 -19,214,436.12
67. Other income
In RMB
Items Amount of this period Amount of last period
Government subsidies 106,346,991.82 55,591,999.22
Individual tax commission refunds 261,561.82 124,644.18
Total 106,608,553.64 55,716,643.40
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by
-6,491,695.59 -944,417.34
equity method
Dividend income from other equity
95,156,322.10 95,156,322.10
investments during the holding period
Interest income from creditor's rights
3,148.20
investment during the holding period
The disposal is classified as the investment
income of financial assets measured at fair
716,981.13
value and recorded in the profits and losses of
the current period
Investment income from other equity
investments during the holding period
The disposal is classified as the investment
income of financial assets measured at fair
69,528,530.76 23,459,182.58
value and recorded in the profits and losses of
the current period
Total 158,196,305.47 118,388,068.47
69.Net exposure hedging income
None
114
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
70. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
Revenue from changes in fair value
generated by financial assets classified at -1,796,914.44 -597,375.82
fair value through profit or loss
Total -1,796,914.44 -597,375.82
71. Credit impairment loss
In RMB
Source Amount of this period Amount of last period
Losses on bad debt 17,027,776.46 -80,718,669.70
Total 17,027,776.46 -80,718,669.70
72. Losses from asset impairment
In RMB
Items Amount of this period Amount of last period
II. Loss of inventory value and impairment
-1,772,402.80
of contract performance costs
XII. Loss of impairment of contract assets 7,414,364.16 10,855,928.32
Total 5,641,961.36 10,855,928.32
73. Asset disposal income
In RMB
Source Amount of this period Amount of last period
Profits of disposal of fixed assets -25,751.14 247,052.27
Total -25,751.14 247,052.27
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
Loss of non-current assets:
126,309.16 126,309.16
obsolescence gain
115
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Compensation income 117,439,736.00 4,631,112.82 117,439,736.00
No payment required 902,165.95 1,240,080.10 902,165.95
Equity gains 0.00
Other 255,511.51 344,931.26 250,557.80
Total 118,723,722.62 6,216,124.18 118,718,768.91
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whether Amount of Amount of Assets-relate
Issuing subsidies on
Items Issuing body Nature special current previous d/income-rela
reason the current
subsidies period period ted
profit and
loss
Other note：
75. Non-operational expenses
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Donations 10,000.00 77,709.00 10,000.00
Debt restructuring loss 115,229.71 0.00
Non-current assets scrapping
73,136,420.42 395,264.37 73,136,420.42
loss
Compensation expenses 6,694,518.46 3,561,655.09 6,694,518.46
Estimated liabilities 0.00
Fine, late payment 1,537.61 3,462.40 1,537.61
Special investment for water
0.00
conservancy construction
Other 105,217.55 25,490.14 105,217.55
Total 79,947,694.04 4,178,810.71 79,947,694.04
Other note：
76. Income tax expenses
(1) Details
116
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
In RMB
Items Amount of this period Amount of last period
Income tax of current term 61,722,582.62 40,874,307.40
Deferred income tax 8,044,203.91 -10,328,875.72
Total 69,766,786.53 30,545,431.68
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Amount of this period
Total profit 544,238,087.83
Income tax expenses calculated on legal / applicable tax rate 81,635,713.18
Effect of different tax rates applicable to subsidiaries 1,580,363.40
Adjustment for income tax in prior year 253,933.43
Influence of non taxable income -14,273,448.32
Impact of non-deductible costs, expenses and losses 7,600,466.93
Impact of deductible losses on the use of previously unrecognized deferred income tax
0.00
assets
The current period does not affect the deferred tax assets recognized deductible
71,525.98
temporary differences or deductible loss
Super deduction of R&D expenses -7,101,768.07
Income tax expenses 69,766,786.53
Other note
77. Other Comprehensive income
For details, please refer to Section X(7)-57 Other comprehensive income
78. Notes Cash flow statement
(1) Other cash received from operating activities
In RMB
Items Amount of this period Amount of last period
Court freezing of deposits 35,000,000.00
117
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Deposit interest 7,102,510.37 14,883,294.02
Government subsidies received 2,770,968.13 7,103,735.64
Tender and other margin 5,080,612.30 6,080,914.51
Receipt of operating current account 1,653,143.54 1,229,295.31
Other 578,908.68 1,028,578.16
Total 17,186,143.02 65,325,817.64
2. Other cash paid for Operating activities
In RMB
Items Amount of this period Amount of last period
Transportation 5,579,756.61 2,716,781.40
16,504,651.54 10,926,514.53
Travel expenses
Business trips 8,211,316.21 4,510,515.68
Maintaining 2,693,953.97 2,152,993.76
Property management and civil services 16,948,291.60 5,187,945.81
Deposit for bidding and others 4,175,435.30 9,105,081.51
Office expenses 1,807,090.80 2,045,990.41
Conferences 591,395.94 455,082.31
Consulting service fee 8,926,333.61 4,671,841.14
Transportation and vehicles 1,767,851.20 1,455,786.99
Other 56,859,932.70 41,350,002.54
Total 124,066,009.48 84,578,536.08
3.Other investment-related cash received
In RMB
Items Amount of this period Amount of last period
Repurchasing of trusteeship 2,257,800,000.00 1,533,898,000.00
Sell convertible bonds 687,572,000.00
Total 2,945,372,000.00 1,533,898,000.00
（4）Other cash paid for investment activities
In RMB
Items Amount of this period Amount of last period
Purchasing of financial products 2,393,000,000.00 1,913,998,000.00
118
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Purchasing of convertible bonds 687,572,000.00
Total 3,080,572,000.00 1,913,998,000.00
（5）Other cash paid for Financing activities
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
Repurchase stocks 73,364,395.79
Return of CDB Fund investment 155,000,000.00
Total 155,000,000.00 75,745,129.13
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 474,471,301.30 269,296,040.89
Add: Impairment loss provision of assets -22,669,737.82 69,862,741.38
Depreciation of fixed assets, oil and gas assets and consumable
39,334,815.42 33,992,427.93
biological assets
Depreciation of Use right assets
Amortization of intangible assets 8,258,191.98 3,988,647.81
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets, intangible assets and other
25,751.14 -247,052.27
long-term deferred assets
Fixed assets scrap loss 73,010,111.26 395,264.37
Loss on fair value changes 1,796,914.44 597,375.82
Financial cost -1,103,073.05 -5,113,305.04
Loss on investment -158,196,305.47 -118,388,068.47
Decrease of deferred income tax assets 5,455,667.07 -10,920,421.52
119
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Increased of deferred income tax liabilities -7,659,491.71 -22,269,196.75
Decrease of inventories 104,708,982.24 -207,394,199.77
Decease of operating receivables -638,514,760.58 -167,471,610.97
Increased of operating Payable 298,606,122.02 480,854,191.02
Other -443,475.53 -218,142.40
Net cash flows arising from operating activities 177,081,012.71 326,964,692.03
II. Significant investment and financing activities that without cash
-- --
flows:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 1,345,465,420.21 1,462,003,656.36
Less: Beginning balance of cash equivalents 1,710,208,279.45 1,645,907,650.92
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent -364,742,859.24 -183,903,994.56
(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 Year-end balance Year-beginning balance
1,345,465,420.21 1,710,208,279.45
I.Cash
141,788.02
49,682.89
Of which: Cash in stock
Bank savings could be used at any time 1,345,341,669.79 1,710,025,951.59
Other monetary capital could be used at any 40,539.84
74,067.53
time
A central bank deposit available for payment
Deposit of inter-bank funds
120
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Debit and release of interbank money
II.Cash equivalents
Including: Bond investment due in three
months
III. Balance of cash and cash equivalents at
1,345,465,420.21 1,710,208,279.45
the period end
Including ： Use of restricted cash and cash
equivalents by parent or group subsidiaries
Other note：
80. Note of statement of changes in the owner's equity
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 bill and bill of
Monetary funds 107,777,286.14
guarantees
Notes receivable 35,800,000.00 Used as security for issuing of acceptance drafts and bill
Utilized for pledging to obtain the bank loan，Utilized for
guaranteeing the investment loan for China Development
Fixed assets 505,334,979.41
Funds，The formalities for lifting the ban have not been
completed.
Utilized for pledging to obtain the bank loan，Utilized for
guaranteeing the investment loan for China Development
Intangible assets 80,937,896.54
Funds，The formalities for lifting the ban have not been
completed.
Utilized for guaranteeing the investment loan for China
Construction in process 295,194,303.14 Development Funds，The formalities for lifting the ban have
not been completed.
Fransaction financial assets 1,757,871.22 In a lock-up period
Utilized for guaranteeing the investment loan for China
Dividend receivable 43,605,292.60 Development Funds，The formalities for lifting the ban have
not been completed.
Utilized for guaranteeing the investment loan for China
Other equity instrument investment 664,930,000.00 Development Funds，The formalities for lifting the ban have
not been completed.
Financing receivable 52,031,517.98 Used as security for issuing of acceptance drafts and bill
121
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Total 1,787,369,147.03 --
Other note：
As mentioned in VII. 48 (1) of Section X of this report: as of June 30, 2021, Hangzhou Steam Turbine Group has r
epurchased all the remaining shares of Steam Turbine Heavy Industry Co., Ltd held by CDB Development Fund i
n advance and resold it to the Company at the same price, which totaled in 208,000,000.00 yuan. The guarantee pr
ovided by the Company and Steam Turbine Heavy Industry Co., Ltd for the performance of the equity transfer obl
igation by Hangzhou Steam Turbine Group was also released accordingly. However, since the lifting procedures h
ave not been completed by the end of the current period, the Company holds 45.08 million shares of Hangzhou Ba
nk Co., Ltd with a book value of 664,930,000.00 yuan and the dividends receivable of 43,605,292.60 yuan, and th
e land use rights with a book value of RMB 62,964,423.45, the fixed assets with a book value of RMB 434,012,41
1.62 and the construction in progress with a book value of RMB 295,194,303.14 held by Steam Turbine Heavy In
dustry Company are still subject to restrictions for use.
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 -- -- 296,920,484.17
Incl：USD 42,506,119.91 6.460100 274,593,785.23
Euro 1,834,710.30 7.686200 14,101,950.32
HKD 5.51 0.831216 4.58
YEN 286,059.00 0.058428 16,713.86
Rupiah 18,403,655,102.56 0.000446 8,208,030.18
Account receivable -- -- 172,867,051.61
Incl：USD 25,078,914.85 6.460100 162,012,297.82
Euro 1,206,475.99 7.686200 9,273,215.75
HKD
Rupiah 3,032,116,164.06 0.000446 1,352,323.81
SGD 47,726.12 4.802700 229,214.23
Long-term Loans -- --
Incl：USD
Euro
HKD
Account payable 146,410,741.58
122
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Incl：USD 711,090.96 6.460100 4,593,718.71
Euro 17,765,518.86 7.686200 136,549,331.06
Rupiah 8,542,584,280.00 0.000446 3,809,992.59
YEN 24,948,641.30 0.058428 1,457,699.22
Other note：
(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.
□ Applicable √ Not applicable
83. Arbitrage
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information:
84. Government subsidy
1) Government subsidies related to assets
None
（2）Government subsidy return
□ Applicable √ Not applicable
Other note：
(1) Detail
1) Asset-related government subsidies
Ending Current
Beginning Current subsidy Current
Items amortization n
increase amortization
Deferred income Deferred income Item presentation
Financial subsidy for industrial projects 172,680.00 172,680.00 Other income
Subsidy for casting and forging projects 172,680.00 172,680.00 Other income
Financial subsidy for recycling 68,460.00 68,460.00
Other income
economy
Land requisition and demolishing 480,314,032.84 6,451,247.40 473,862,785.44
compensation-complete plant of heavy Other income
industry
Land requisition and demolishing 8,688,437.90 447,265.25 8,241,172.65
compensation-heavy industry Other income
equipment
123
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Subtotal 489,416,290.74 0.00 6,898,512.65 482,517,778.09
2) Income-related government subsidies used for compensation of relevant costs and expenses or losses incurred
in the Company
Amount included in current
Items Amount Project
profit and loss
Land requisition and demolishing 96,605,806.14 96,605,806.14
Other income
compensation-removal cost
The first (set of) bonus in key fields of 949,420.00 949,420.00
equipment manufacturing industry in Other income
Zhejiang Province
The state will mainly support subsidies 500,000.00 500,000.00
Other income
for high and new technologies
Science and technology innovation 283,656.39 283,656.39
leading talent award for ten thousand Other income
people plan
Newly identified research and 200,000.00 200,000.00
Other income
development center reward
Outstanding contribution award of 200,000.00 200,000.00
Other income
"average output on per mu"
Patent incentive rewards 127,536.00 Other income 127,536.00
Proportional employment subsidies for 59,295.00 59,295.00
Other income
disabled persons
Energy "double control" target 36,064.94 36,064.94
Other income
assessment award
Subsidies for operation in lieu of 42,000.00 42,000.00
Other income
training
Newly identified provincial science and 50,000.00 50,000.00
technology type of small and Other income
medium-sized enterprises to reward
Other incidental government subsidies 394,700.70 Other income 394,700.70
Subtotal 99,448,479.17 99,448,479.17
(2) The current amount of government subsidies included into the current profits and loss is RMB106,346,991.82.
85.Other ：None
124
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
place of Proportion of
Name gaining the the stock Purchase date basis of during the during the
gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock right
to period-end to period-end
Capital
Zhejiang
contribution
Zhongrun
January 12,600,000.0 and equity January
Gas Turbine 51.99% Note 3,289,613.51 -1,171,962.83
4,2021 0 transfer of 4,2021
Technology
original
Co., Ltd.
shares
Note：Basis for determining the purchase date: On April 15, 2020, Turbine Company invested RMB 12.6 million
and acquired 51.99% equity of Zhejiang Zhongrun Gas Turbine Technology Co., Ltd., but only one of the 3
directors of Zhongrun Company was from the Turbine Company, which still failed to meet the actual control
conditions. On January 4, 2021, after the change of the articles of association of Zhongrun Company, three of
the 5 directors of Zhongrun Company were from the Turbine Company and had its actual control right. Therefore,
January 4, 2021 is determined as the actual purchase date.
（2）Combined cost and Goodwill
None
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value of the purchase date Book value of the purchase date
Monetary fund 1,275,088.15 1,275,088.15
Inventories 860,531.28 860,531.28
Fixed assets 5,835,202.38 5,835,202.38
Intangible assets 3,533,333.13 3,533,333.13
Account receivable 354,228.02 354,228.02
Prepayments 22,090.00 22,090.00
Other account receivable 31,074.75 31,074.75
125
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Contract assets 223,382.45 223,382.45
Other current asset 410,226.94 410,226.94
Long-germ expenses to be amortized 3,520.00 3,520.00
Total of assets 12,548,677.10 12,548,677.10
Account payable 1,062,521.42 1,062,521.42
Employees’ wage payable 132,221.40 132,221.40
Tax payable 9,569.38 9,569.38
Other account payable 15,430.00 15,430.00
Total of liability 1,219,742.20 1,219,742.20
Share capital 27,000,000.00 27,000,000.00
Retained profit -15,671,065.10 -15,671,065.10
Total of net assets 11,328,934.90 11,328,934.90
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities
of the acquiree at acquisition date or closing period of the merge
（6）Other note
2. Business combination under the same control
None
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
126
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
6.Other
2.Other
IX. Equity in other entity
1. Equity in subsidiary
(1) The structure of the enterprise group
Name of the Main business Share proportion %
Reg. Add. Business property Way of obtain
subsidiaries location
Direct Indirect
Zhejiang Steam
Turbine Packaged
Hangzhou Hangzhou
Technologies Commerce 70.86% Incorporation
Zhejiang Zhejiang
Development Co.,
Ltd.
Hangzhou
Zhongneng Steam Hangzhou Hangzhou
Manufacturing 60.83% Incorporation
Turbine Power
Zhejiang Zhejiang
Co., Ltd.
Hangzhou Steam
Hangzhou Hangzhou
Turbine Casting 38.03% Incorporation
Zhejiang Zhejiang Manufacturing
Co., Ltd.
Hangzhou Steam
Turbine
Hangzhou Hangzhou
Machinery Manufacturing 52.00% Incorporation
Zhejiang Zhejiang
Equipment Co.,
Ltd.
Hangzhou Steam
Hangzhou Hangzhou
Turbine Auxiliary Manufacturing 87.53% Incorporation
Zhejiang Zhejiang
Machinery Co.,
127
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Ltd. (Auxiliary
Machinery Co.)
Zhejiang Turbine
Import & Export Hangzhou Hangzhou
Commerce 100.00% Incorporation
Co., Ltd. (Turbine Zhejiang Zhejiang
Co.)
Hangzhou Steam
Hangzhou Hangzhou
Turbine Heavy 100.00% Incorporation
Zhejiang Zhejiang Manufacturing
Industry Co., Ltd.
Basis for holding half or less voting rights but still controlling the investee, and holding more than half voting
rights but not controlling the investee
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 Dividend announced in Balance of equity of
Share portion of minor
Name of the subsidiaries attributable to minor the period to minor minor shareholders at
shareholders
shareholders shareholders end of period
Zhejiang Steam Turbine
Packaged Technologies 29.14% 3,023,308.61 8,918,370.00 33,958,453.29
Development Co., Ltd.
Hangzhou Zhongneng
Steam turbine Power Co., 39.17% 14,294,570.66 20,486,000.00 130,993,555.85
Ltd.
Hangzhou Steam Turbine
61.97% 9,655,607.77 161,399,613.33
Casting Co., Ltd.
Hangzhou Steam Turbine
48.00% 17,319,600.45 28,800,000.00 76,185,412.11
Machinery Equipment
128
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Co., Ltd.
Hangzhou Steam Turbine
Auxiliary Machinery Co., 12.47% 5,099,456.21 9,976,000.00 30,415,642.50
Ltd.
3. Material financial information of major non-fully-owned subsidiaries
In RMB
End of term Beginning of term
Subsidia
Non-curr Non-curr Non-curr Non-curr
ries Current Total of Current Total of Current Total of Current Total of
ent ent ent ent
Name assets assets liabilities liability assets assets liabilities liability
assets liabilities assets liabilities
Zhejiang
Steam
Turbine
Package
d 288,481, 7,672,43 296,154, 179,618, 179,618, 335,835, 7,867,34 343,702, 206,940, 206,940,
0.00
Technolo 653.73 3.41 087.14 497.29 497.29 538.47 5.88 884.35 629.93 629.93
gies
Develop
ment
Co., Ltd.
Hangzho
u
Zhongne
1,147,21 71,163,2 1,218,37 932,043, 330,000. 932,373, 1,109,23 69,769,9 1,179,00 877,661, 330,000. 877,991,
ng Steam
3,167.65 78.91 6,446.56 800.97 00 800.97 7,142.17 98.20 7,140.37 499.09 00 499.09
turbine
Power
Co., Ltd.
Hangzho
u Steam
442,514, 144,167, 586,681, 280,810, 22,013,8 302,823, 413,618, 148,061, 561,680, 271,003, 22,037,3 293,040,
Turbine
285.22 687.55 972.77 077.88 20.00 897.88 493.18 570.82 064.00 586.47 40.00 926.47
Casting
Co., Ltd.
Hangzho
259,748, 28,696,5 288,445, 127,656, 2,069,68 129,725, 278,552, 27,278,0 305,830, 121,123, 2,069,68 123,192,
u Steam 914.05 01.96 416.01 118.77 8.65 807.42 028.79 24.91 053.70 257.40 8.65 946.05
Turbine
129
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Machine
ry
Equipme
nt Co.,
Ltd.
Hangzho
u Steam
Turbine
Auxiliar 681,315, 77,585,8 758,901, 478,852, 3,387,21 482,239, 773,794, 78,925,5 852,720, 533,228, 3,723,41 536,951,
y 984.99 24.01 809.00 664.49 2.39 876.88 591.67 39.42 131.09 574.23 9.52 993.75
Machine
ry Co.,
Ltd.
In RMB
Amount of current period Amount of previous period
Subsidiaries
Cash flow for Cash flow for
Name Total Misc Total Misc
Turnover Net profit business Turnover Net profit business
Gains Gains
activities activities
Zhejiang
Steam
Turbine
Packaged 136,214,923.7 10,373,335.4 10,373,335.4 28,261,637.1 18,180,159.4 18,180,159.4 50,678,440.3
88,950,190.73
Technologie 4 3 3 8 2 2 3
s
Developmen
t Co., Ltd.
Hangzhou
Zhongneng
Steam 655,360,470.2 35,766,530.5 36,385,899.4 463,773,371.5 26,262,274.4 26,274,016.2 48,380,466.3
-360,851.38
turbine 2 5 3 4 3 0 1
Power Co.,
Ltd.
Hangzhou
248,488,984.2 15,582,080.8 15,582,080.8 188,039,370.6 13,810,994.9 13,810,994.9
Steam 300,247.84 -2,650,207.83
0 0 0 2 4 4
Turbine
130
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Casting Co.,
Ltd.
Hangzhou
Steam
Turbine 148,512,198.0 36,082,500.9 36,082,500.9 26,439,043.2 131,998,141.5 26,242,201.3 26,242,201.3 10,784,295.0
Machinery 3 4 4 3 4 6 6 8
Equipment
Co., Ltd.
Hangzhou
Steam
Turbine 281,813,987.5 40,893,794.7 40,893,794.7 307,652,062.4 25,359,176.3 25,359,176.3
-4,085,908.95 3,444,358.68
Auxiliary 4 8 8 0 6 6
Machinery
Co., Ltd.
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
None
(2) Main financial information of significant joint venture
None
(3) Main financial information of significant associated enterprise
None
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
131
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
period previous period
Joint venture： -- --
Total amount of the pro rata calculation of
-- --
the following items
Associated enterprise： -- --
Total book value of the investment 11,456,132.77 23,355,441.61
Total amount of the pro rata calculation of
-- --
the following--Net profit ms
-Net profit -129,987.83 -944,417.34
--Total comprehensive income -129,987.83 -944,417.34
Other note
(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
5. Equity of structure entity not including in the scope of consolidated financial statements
None
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. Risks related to financial instruments
The objective of the Company’s risk management is to achieve a balance between the risk and gains. Constrain the
negative influence on business operation to the lowest limit, and maximum the interests of shareholders and other
equity holders. With regard to this target, the basic policies of the Company are; locate and analyse the risks, set
appropriate bottom line for risks, and manage and monitor on each risk and constrain them in a certain extent.
Risks attached to financial instruments are mainly credit risks, liquidity risks, and market risks.
132
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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
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 X (7)4,5,8 and 10 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
133
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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 30,2021, the Company has a
characteristic of specific credit risk concentration. 48.37% (June 30,2020: 37.69%) 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.
Categorizing of financial liabilities on remained period to due
End of term
Items Book value Contract amount within 1 year 1-3 years Over 3 years
not discounted
Short-term loans 213,800,000.00 219,335,846.22 219,335,846.22
Notes payable 221,949,985.82 221,949,985.82 221,949,985.82
Account payable 1,449,034,434.34 1,449,034,434.34 1,449,034,434.34
Other payable 29,405,321.95 29,405,321.95 29,405,321.95
Non-current liabilities
500,000.00 509,418.89 509,418.89
due to 1 year
Long-term loan 21,600,000.00 23,664,184.89 - 23,664,184.89
Long-term
payable(Note)
Subtotal 1,936,289,742.11 1,943,899,192.11 1,920,235,007.22 23,664,184.89 -
(Continued)
134
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Items Beginning of term
Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
97,840,187.21 99,448,165.24 99,448,165.24
Short-term loans
Notes 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 payable 82,148,405.19 82,148,405.19 82,148,405.19
Non-current liabilities 200,319.30 205,283.05 205,283.05
due to 1 year
Long-term loan 22,435,762.23 23,820,343.69 23,820,343.69
183,554,599.99 190,484,000.00 29,184,000.00 57,396,000.00 103,904,000.00
Long-term
payable(Note)
1,644,549,531.78 1,654,476,455.03 1,469,356,111.34 81,216,343.69 103,904,000.00
Subtotal
Note: Exclusive of special accounts receivable
(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 30,2021, the company's bank borrowings with floating interest rate were RMB 5,000,000.00 (June
30,2020: 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
135
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
to the descriptions in the notes to the consolidated financial statements.
Details of the company's foreign currency monetary assets and liabilities at the end of the period are
described in note X (7)82 to the 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
Items Fair value measurement Fair value measurement
measurement items at Total
items at level 1 items at level 3
level 2
Consistent fair value
-- -- -- --
measurement
1. Transactional financial assets
and other non-current financial 1,757,871.22 1,172,503,105.13 1,174,260,976.35
assets
1.Financial assets classified as fair
1,757,871.22 1,172,503,105.13 1,174,260,976.35
value through profit or loss
（1）Financing product 1,156,000,000.00 1,156,000,000.00
（2）Equity instrument investment 1,757,871.22 16,503,105.13 18,260,976.35
(II) Financing receivable 994,303,517.76 994,303,517.76
(III)Other equipment instrument
4,010,159,288.50 4,010,159,288.50
investment
Total assets of consistent fair value
4,011,917,159.72 2,166,806,622.89 6,178,723,782.61
measurement
II. Non-continuous fair value
-- -- -- --
measurement
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.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 2
None
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
better estimate 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
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%
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Turbine Group
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of the
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 Capital The parent company of Hangzhou Steam turbine Group
Hangzhou Steam turbine Automobile sales service Co., Ltd. Affiliate of the Group
Hangzhou Hangfa Power Generating Equipment Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Engineering Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Compressor Co., Ltd. Affiliate of the Group
China Electrical and Mechanical Institute-Hangzhou Turbine
Affiliate of the Group
Group (Hangzhou) United Research Institute Co., Ltd.
Hangzhou Steam Turbine Industry & Trade Co., Ltd. Affiliate of the Group
Hangzhou Xiangjiang Technology Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Technology Co., Ltd. Affiliate of the Group
Greenesol power systems PVT Ltd. Shareholding enterprise
Hangzhou Bank Shareholding enterprise
Hangzhou Oxygen Machine Group Co., Ltd Affiliates of Hangzhou Capital
Hangzhou Hangzhou Oxygen Turbine Machinery Co., Ltd Affiliates of Hangzhou Oxygen Company
Zhumadian Hangzhou Oxygen Gas Co. Ltd Affiliates of Hangzhou Oxygen Company
Hangzhou Hangzhou Oxygen Air Separation Spare Parts Co.,
Affiliates of Hangzhou Oxygen Company
Ltd
Other note
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 Amount of Amount of last
Related parties trading limit
transaction period
or not?
current period previous period
Hangzhou Hangfa Generating Generators 64,548,826.45 174,627,000.00 No 80,787,433.63
138
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Equipment Co., Ltd.
Hangzhou Steam Turbine Industry & Grind fee, Bagging
7,104,497.55 15,900,000.00 No 7,148,374.71
Trade Co., Ltd.
China Electrical and Mechanical
Institute-Hangzhou Turbine Group Raw materials,
1,551,804.00 4,430,000.00 No 775,896.30
(Hangzhou) United Research Institute Development ,design
Co., Ltd.
Hangzhou Steam Turbine Raw material,
0.00 0.00 613,207.55
Engineering Co., Ltd. Technical service
Hangzhou Steam turbine Automobile Transportation , repair ,
30,313,726.88 68,720,000.00 No 31,678,281.96
sales service Co., Ltd. etc.
Total 103,518,854.88 263,677,000.00 121,003,194.15
Related transactions regarding sales of goods or providing of services
In RMB
Subjects of the related
Related parties Current term Same period of last term
transactions
Steam Turbine,
Hangzhou Steam Turbine Engineering Co.,
Compressor, Installation 35,275,185.84 36,248,770.80
Ltd.
service
Hangzhou Hangfa Generating Equipment Co., Cast parts
5,994,952.11 5,135,196.02
Ltd.
Greenesol power systems PVT Ltd. Part 434,687.41 114,322.52
Training fees, labour
Hangzhou Steam Turbine Group 0.00 349.80
insurance costs
Hangzhou Steam Turbine Automobile Sales
Small amount materials 0.00 69.52
Service Co., Ltd.
Total 41,704,825.36 41,498,708.66
（2）Related trusteeship or contracting
None
(3) Information of related lease
- The company was lessee：
In RMB
139
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
HSTG House &Building 801,757.33 0.00
Total 801,757.33 0.00
The Company was lessee：
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
HSTG House and building 0.00 614,470.42
Hangzhou Steam Turbine
House and building 1,269,010.14 958,376.15
Industry & Trade Co., Ltd.
Hangzhou Steam Turbine
Site leasing 358,490.57 153,250.00
Industry & Trade Co., Ltd.
Hangzhou Xiangjiang
House and building 1,145,495.20 0.00
Technology Co., Ltd.
Hangzhou Steam Turbine
Automobile Sales Service Co., Car rental 0.00 21,238.94
Ltd.
Total 2,772,995.91 1,747,335.51
（4）Related-party guarantee
The Company was guarantor
None
The Company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
HSTG 50,000,000.00 November 23,2020 October 29,2021 No
HSTG 100,000,000.00 June 4,2020 June 3,2022 No
Hangzhou Steam Turbine
5,644,000.00 March 9,2021 September 9,2021 No
Power Technology Co., Ltd.
Hangzhou Steam Turbine
1,550,000.00 February 5,2021 August 4,2021 No
Power Technology Co., Ltd.
Total; 157,194,000.00
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(5) Inter-bank lending of capital of related parties
None
（6）Related party asset transfer and debt restructuring
In RMB
Related party Content Current term Same period of last term
Hangzhou Steam Turbine
Automobile Sales Service Co., Purchase fixed assets 0.00 225,663.72
Ltd.
（7） Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 6,805,529.55 4,221,118.60
(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 RMB101,995.13
this period.
②Hangzhou Turbine Group provided high and low allocation management services for the Company and its
subsidiaries, and paid high and low allocation management fees of RMB 1,846,969.08 in the current period.
3) Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. provided transportation to the Company’s
employees and RMB1,340,238.40 was paid this period.
4) Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. provides site management services for the
company. RMB1,166,933.96 is paid in this regard for the current period.
⑤The Company has supplied water and electricity for Hangzhou Turbine Group, and received RMB 57,848.71 of
water and electricity in the current period.
⑥The Company provided property management services for Hangzhou Turbine Group, and received property
management fees of RMB 67,644.08 in the current period.
(2) Expenses paid on behalf the Company
During the current period, HSTG advanced the payment of RMB540,975.32 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, 2021, the balance of loan under the line of credit was still RMB 50,000,000.000.
2) The Company entered into a financial management agent contract with Bank of Hangzhou Co., Ltd. in the
141
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
cumulative amount of financial management of RMB 1,740,000,000.00 and till June 30, 2021, the balance of the
financial management was RMB 740,000,000.00.
3)The company applied to Hangzhou Bank Co., Ltd. for bill discount in the current period, with an
accumulated discount amount of 8196,682,097.75 yuan, and a discount interest of2.088,451.85 yuan.
6. Receivables and payables of related parties
（1）Receivables
In RMB
End of term Beginning of term
Name Related party
Book balance Bad debt provision Book balance Bad debt provision
Account Hangzhou Steam Turbine
26,812,818.00 19,820,081.34 36,758,818.00 27,172,181.70
receivable
Engineering Co., Ltd.
Hangzhou Hangfa Generating
15,023,042.67 751,152.13 13,250,394.22 779,529.08
Equipment Co., Ltd.
Greenesol power systems PVT
13,806,255.54 13,806,255.54 13,806,255.54 13,806,255.54
Ltd.
Hangzhou Oxygen Co., Ltd 2,460,000.00 2,460,000.00 5,385,000.00 5,385,000.00
Hangzhou Hangzhou Oxygen
9,225,000.00 9,162,900.00 9,550,500.00 9,485,400.00
Turbine Machinery Co., Lt
HSTG 158,500.00 158,500.00 158,500.00 158,500.00
Hangzhou Steam Turbine
59,000.00 59,000.00 59,000.00 59,000.00
Compressor Co., Ltd’
Zhumadian Hangzhou Oxygen
14,800.00 1,480.00 14,800.00 740.00
Gas Co. Ltd
Subtotal 67,559,416.21 46,219,369.01 78,983,267.76 56,846,606.32
Financing Hangzhou Hangfa Generating
6,000,000.00
receivable Equipment Co., Ltd.
Hangzhou Steam Turbine
7,000,000.00
Engineering Co., Ltd.
Subtotal 7,000,000.00 6,000,000.00
Hangzhou Hangfa Generating
Prepayment 2,779,500.00 1,290,000.00
Equipment Co., Ltd.
Hangzhou Steam Turbine
828,000.00 0.00
Engineering Co., Ltd.
Subtotal 3,607,500.00 1,290,000.00
Other Hangzhou Xiangjiang Technology 601,384.98 30,069.25 601,384.98 30,069.25
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
receivable Co., Ltd.
Hangzhou Steam Turbine
Automobile Sales Service Co., 33,653.25 1,682.66 69,694.56 3,484.73
Ltd.
HSTG 136,987.47 6,849.37 19,628.00 981.40
Hangzhou Steam Turbine Industry
27,841.00 2,784.10 27,841.00 1,392.05
& Trade Co., Ltd.
Subtotal 799,866.70 41,385.38 718,548.54 35,927.43
Hangzhou Steam Turbine
Contract assets 7,292,500.00 338,350.00 6,087,500.00 387,500.00
Engineering Co., Ltd.
Subtotal 7,292,500.00 338,350.00 6,087,500.00 387,500.00
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Account
Hangzhou Hangfa Generating Equipment Co., Ltd. 70,549,730.20 85,515,939.33
payable
Hangzhou Steam Turbine Automobile Sales Service
21,103,331.46 22,854,634.24
Co., Ltd.
Hangzhou Steam Turbine Industry & Trade Co., Ltd. 4,393,560.72 1,105,678.64
Hangzhou Steam Turbine Engineering Co., Ltd. 753,000.00 1,277,000.00
Greenesol power systems PVT Ltd. 1,859,582.16 1,878,235.27
HSTG 468,327.25 0.00
China Electrical and Mechanical Institute-Hangzhou
Turbine Group (Hangzhou) United Research Institute 1,140,192.60 242,457.32
Co., Ltd.
Subtotal 100,267,724.39 112,873,944.80
Notes payable Hangzhou Steam Turbine Industry & Trade Co., Ltd. 700,000.00 400,000.00
Hangzhou Steam Turbine Automobile Sales Service
1,600,000.00 660,000.00
Co., Ltd.
Subtotal 2,300,000.00 1,060,000.00
Contract Hangzhou Steam Turbine
28,459,288.00
liabilities Engineering Co., Ltd.
Hangzhou Steam Turbine Power Group Co., Ltd. 29,652,336.28 16,378,000.00
Hangzhou Oxygen Air Separation Spare Parts Co., Ltd 42,287.00 167,015.00
Greenesol power systems PVT Ltd. 338,751.05 145,052.57
Subtotal 48,523,374.33 45,149,355.57
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Hangzhou Steam Turbine Automobile Sales Service
Other payable 100,000.00 100,000.00
Co., Ltd
HSTG 685,318.72 59,033.62
Hangzhou Steam Turbine Industry & Trade Co., Ltd. 0.00 27,840.40
Subtotal 785,318.72 186,874.02
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
2.Contingency
（1）Significant contingency at balance sheet date
（2）The Company have no significant contingency to disclose, also should be stated
The was no significant contingency in the Company.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
3.Other
XIV. Post-balance-sheet events
1. Significant events had not adjusted
None
2. Profit distribution
None
3. Sales return
None
4. Note to other matters after the balance sheet date
On July 11, 2021, the 14th Meeting of the Eighth Board of Directors of the Company reviewed and approved the
Restricted Stock Incentive Plan (Draft) in 2021 and its summary and other related proposals. On August 12, 2021,
the company received the Reply of Hangzhou Steam Turbine Co., Ltd. on Implementing the Restricted Stock
Incentive Plan in 2021 (HGZK [2021] No.45), and Hangzhou SASAC agreed in principle that the company
should implement the restricted stock incentive plan in 2021. On August 27, 2021, the second provisional
shareholders' General meeting of the company in 2021 reviewed and approved the relevant proposals of the
company's restricted stock incentive plan.
XVI.Other significant events
1. The accounting errors correction in previous period
None
2. Debt restructuring
None
3. Replacement of assets
(1) Non-monetary assets exchange
None
145
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(2) Other assets replacement
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
(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 is single in its business, which is mainly for production and sales of steam turbines, gas turbines
and auxiliary turbines. The company’s management regard these businesses as a whole to implement management
so as to evaluate the business performance, thus there will be no report divisions. According to the product
classifications of main business income and main business cost, the Company will make details for them as
follows:
Items Main Business Income Main Business Cost
2,019,873,632.39 1,517,826,565.80
Industrial Steam Turbine
241,115,719.56 192,803,604.97
Castings and Forging
162,120,261.87 114,019,481.82
Auxiliary Engines
Complete set of waste heat 149,200,266.50 113,381,505.16
power station
296,997,837.47 142,783,966.82
Part
81,557,742.59 30,939,873.71
Other
2,950,865,460.38 2,111,754,998.28
Subtotal
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
(4) Other notes
None
7. Other important transactions and events have an impact on investors’ decision-making
None
8. Other
None
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportio Book value
Amount Amount value Amount Amount
n% n% n% n%
Including
Accrual of bad debt 2,318,94 750,741, 1,568,204 2,028,542 795,217,2 1,233,324,7
100.00% 32.37% 100.00% 39.20%
provision by portfolio 5,293.87 182.76 ,111.11 ,002.24 20.72 81.52
Including：
2,318,94 750,741, 1,568,204 2,028,542 795,217,2 1,233,324,7
Total 100.00% 32.37% 100.00% 39.20%
5,293.87 182.76 ,111.11 ,002.24 20.72 81.52
Accrual of bad debt provision by portfolio: 750,741,182.76 yuan
In RMB
End of term
Name
Book balance Bad debt provision Proportion
Portfolio 1 2,318,945,293.87 750,741,182.76 32.37%
Total 2,318,945,293.87 750,741,182.76 --
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
Disclosure by aging
In RMB
147
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Aging End of term
Within 1 year（Including 1 year） 931,445,487.07
1-2 years 364,695,710.10
2-3 years 341,008,655.95
Over 3 years 681,795,440.75
3-4 years 189,429,742.41
4-5 years 90,235,978.57
Over 5 years 402,129,719.77
Total 2,318,945,293.87
(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
collected amount
Write-off Other
Portfolio 1 795,217,220.72 -44,476,050.68 750,741,182.76
Total 795,217,220.72 -44,476,050.68 750,741,182.76
(3) The actual write-off accounts receivable
None
（4）The ending balance of account receivables owed by the imputation of the top five parties
None
（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 43,605,292.60 43,605,292.60
148
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Other 9,032,177.59 8,733,700.06
Total 52,637,470.19 52,338,992.66
（1）Interest receivable ：None
1) Category of interest receivable
None
(2) Significant overdue interest
None
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
（1）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 43,605,292.60 43,605,292.60
Total 43,605,292.60 43,605,292.60
2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
The Balance of 1-2 year is
15,778,000.00 yuan，The Balance of 2-3
Hangzhou Bank 43,605,292.60 years is 11,270,000.00 yuan，The Equity pledge
Balance of Over 3 years is
16,557,292.60 yuan.
Total 43,605,292.60 -- -- --
3）Provision for bad debts
□ Applicable √ Not applicable
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
（3） Other accounts receivable
(1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 12,750,112.31 11,200,823.94
Provisional payment receivable 837,914.54 612,831.32
Other 323,463.60 1,703,075.58
Total 13,911,490.45 13,516,730.84
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1, 404,506.46 36,300.59 4,342,223.73 4,783,030.78
1
Balance as at January 1,
—— —— —— ——
2021 in current
——Transfer to stage II -22,421.26 22,421.26 0.00 0.00
——Transfer to stage III 0.00 -22,293.70 22,293.70 0.00
Provision in the current
78,890.86 44,714.95 -27,323.73 96,282.08
period
Balance as at June 30,
460,976.06 81,143.10 4,337,193.70 4,879,312.86
2021
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 8,409,609.02
1-2 years 961,431.00
2-3 years 112,278.00
Over 3 years 4,428,172.43
3-4 years 140,174.99
4-5 years 6,004.00
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Over 5 years 4,281,993.44
Total 13,911,490.45
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
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Accrual of bad debt
4,783,030.78 96,282.08 4,879,312.86
provision by portfolio
Total 4,783,030.78 96,282.08 4,879,312.86
4) The actual write-off accounts receivable
None
(5) Top 5 of the closing balance of Other accounts receivable
In RMB
Account Book Percentage in total other Bad debt
Name of the company Aging
property balance receivable % provision
Deposit in Over 5
Shanghai Customs Waigaoqiao Office 3,710,320.94 26.67% 3,710,320.94
custom years
Deposit in Within 1
Huadian Tendering Co., Ltd. 950,000.00 6.83% 47,500.00
custom year
Shandong Shaohua Project Deposit in Within 1
800,000.00 5.75% 40,000.00
Management Co., Ltd. custom year
Hangzhou Golden Taurus Catering Co., Current Within 1
700,000.00 5.03% 35,000.00
Ltd. account year
Nantong Jiaxing Thermal Power Co., Deposit in Within 1
700,000.00 5.03% 35,000.00
Ltd. custom year
Total -- 6,860,320.94 49.31% 3,867,820.94
（6）Account receivable involving government subsidies
None
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
（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 Impairmen Impairment
Book balance Book value Book balance Book value
t provision provision
Investments in
1,121,192,321.62 1,121,192,321.62 913,732,321.62 913,732,321.62
subsidiaries
Investments in
associates and joint 11,456,132.77 11,456,132.77 11,456,132.77 11,456,132.77
ventures
Total 1,132,648,454.39 1,132,648,454.39 925,188,454.39 925,188,454.39
（1） Investments in subsidiaries
In RMB
Increase /decrease
Company Beginning of Withdrawn Closing balance of
Add Decreased Closing balance
invested in term impairment Other impairment provision
investment investment
provision
Turbine
20,000,000.00 20,000,000.00
Company
Hangzhou
770,812,943.59 207,460,000.00 978,272,943.59
Heavy Industry
Hangzhou
Auxiliary 46,286,513.41 46,286,513.41
Machine Co.
Zhejiang Turbine
29,800,389.56 29,800,389.56
Packaged Co.
Zhongneng Co. 27,644,475.06 27,644,475.06
Machinery Co. 7,968,000.00 7,968,000.00
Casting Co. 11,220,000.00 11,220,000.00
Total 913,732,321.62 207,460,000.00 1,121,192,321.62
152
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
（2）Investments in associates and joint ventures
In RMB
Increase /decrease in reporting period
Closing
Decrease Gain/loss Adjustment Other Declaratio Withdraw
Opening Add Closing balance of
Name d of of other equity n of cash n Othe
balance investmen balance impairmen
investmen Investmen comprehensiv change dividends impairmen r
t t provision
t t e income s or profit t provision
I. Joint ventures
II. Associated enterprises
Zhejiang
Ranchuan
g Turbine 11,456,132.7 11,456,132.7
7 7
Machiner
y Co.,
Ltd.
11,456,132.7 11,456,132.7
Subtotal
7 7
11,456,132.7 11,456,132.7
Total
7 7
（3）Other note
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main business 1,874,781,657.52 1,397,535,102.84 1,143,805,459.09 788,681,371.84
Other 12,244,996.37 48,342,019.96 4,907,113.55 3,076,640.04
Total 1,887,026,653.89 1,397,535,102.84 1,148,712,572.64 791,758,011.88
Information related to performance obligations:
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
obligation at 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:
153
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
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 RMB4,084,277,300.00.
5. Investment income
In RMB
Occurred current Occurred in previous
Items
term term
Long-term equity investment income by Cost method 153,319,630.00 120,936,840.00
Investment income from disposal of Long-term equity investment -944,417.34
Dividend income from other equity instrument investments during the holding period 95,156,322.10 95,156,322.10
The disposal is classified as the investment income of financial assets measured at fair
66,550,194.43 15,814,351.26
value and recorded in the profits and losses of the current period
Total 315,026,146.53 230,963,096.02
6,Other
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -73,072,277.48
Tax refund, deduction and exemption that is examined and approved by authority
0.00
exceeding or has no official approval document.
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 Company’s 87,541,784.25
business operation.
Capital occupation charges on non-financial enterprises that are recorded into current gains
0.00
and losses
Gains due to that the investment costs for the Company to obtain subsidiaries, associates
and joint ventures are lower than the enjoyable fair value of the identifiable net assets of 0.00
the investees when making the investments
Gain/loss on non-monetary asset swap 0.00
Gain/loss on entrusting others with investments or asset management 0.00
Asset impairment provisions due acts of God such as natural disasters 0.00
Gains/losses of debt restructure 0.00
Reorganization expenses, such as expenditure for allocation of employees and integration
0.00
fee
154
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
Gains/losses exceeding the fair value arising from transactions with obviously unfair prices 0.00
Net gain and loss of the subsidiary under the common control and produced from
0.00
enterprise consolidation from the beginning of the period to the consolidation date
Gain and loss arising from contingent matters irrelevant with the Company’s normal
0.00
operation business
Gain and loss from change of the fair value arising from transactional monetary assets,
transactional financial liabilities as held as well as the investment income arising from
disposal of the transactional monetary assets, transactional financial liabilities and financial 71,421,557.92
assets available for sale excluding the effective hedging transaction in connection with the
Company’s normal business
Reverse of the provision for impairment of accounts receivable undergoing impairment test
0.00
individually
Gain/loss from external entrusted loan 0.00
Gain and loss arising from change in the fair value of the investment based real estate
0.00
measure afterwards by means of fair value model
Influence upon the current gains and losses from the once-and –for –all adjustment over the
0.00
current gains and losses according to the taxation and accounting laws and regulations
Income from custodian charge obtained from entrusted operation 0.00
Operating income and expenses other than the aforesaid items 111,817,601.21
Less: Influenced amount of income tax 30,157,870.60
Amount of influence of minority interests（After tax） 422,511.63
Total 167,128,283.67 --
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.
□ Applicable√ 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
5.19% 0.58 0.58
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
3.15% 0.35 0.35
deduction of non-recurring profit
and loss
155
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2021
3. Differences between accounting data under domestic and overseas accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable□√ Not applicable
(3).Explanation of the reasons for the differences in accounting data under domestic and foreign accounting standa
rds. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of the ov
erseas institution should be indicated
4.Other
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 31, 2021
156
