200771 Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2009, Announcement 2009-12
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Hangzhou Steam Turbine Co., Ltd.
The 1st Quarterly Report 2009 (Full Text)
I. Important Statement
1. 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.
2. The 1st Quarterly Report 2009 was examined at the 9th meeting of the 4th term of Board, and was approved
by al
of the 11 directors at the meeting.
3 This report is prepared both in English and Chinese. When there is any conflict in understanding, the
Chinese
version shall prevail.
4. None of the directors is holding uncertain or objective attitude on the truthfulness, accuracy, and
completeness of this quarterly report.
5. All of the directors presented the meeting on which this report was examined.
6. Chairman Mr. Nie Zhonghai, General Manager Mr. Yan Jianhuan, Chief Financial Officer Mr. Bo Ronghua, and
the Chief of
Accounting Department Mr. Wu Guomei hereby declares: the Financial Statement in the report is guaranteed to
be truthful and
complete.
II. Company Profile
1. Main accounting data in RMB Yuan
Ended this report term Ended previous year Changed by (%)
Gross Assets 4,748,890,931.63 4,569,605,900.83 3.92%
Owners’ Equity Attributable to the Parent Company 1,998,010,452.41 1,901,311,875.65 5.09%
Share capital 371,800,000.00 371,800,000.00
Net asset per share attributable to the owners of the parent company 5.37 5.11 5.09%
This report term Same period last year Changed by (%)
Turnover 716,800,324.88 625,798,102.61 14.54%
Net profit attributable to the owners of parent company 96,697,447.87 93,995,794.75 2.87%
Cash flow generated by business operation, net -41,605,455.48 -53,865,464.65 22.76%
Net Cash flow per share generated by business operation -0.11 -0.145 24.14%
Basic gains per share 0.26 0.25 4.00%
Diluted gains per share 0.26 0.25 4.00%
Net earnings / asset 4.84% 5.99% -1.15%
Net earnings / capital ratio after deducting of non-recurring gain/loss 4.86% 5.98% -1.12%200771 Hangzhou
Steam Turbine Co., Ltd. The 1st Quarterly Report 2009, Announcement 2009-12
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Non-recurring gain and loss items
Amount of the period from the
beginning of year to the end of report
term
Gain/loss of non-current assets 55,616.59
Government subsidies accounted into current gain/loss account, other than those closely
related to the Company’s common business, comply with the national policy and continues to
enjoy at certain fixed rate or amount.
1,890,369.66
Other non-business income and expenditures other than the above -1,370,354.07
Influenced amount of minority shareholders’ equity -696,549.73
Influenced amount of income tax -266,801.31
Total -387,718.86
Statements on non-recurring gain/loss items:
1. Government subsidy accounted into current gain/loss account, which was caused by (1)Package Engineering
Co. the subsidiary of
Zhongneng Co., received RMB1,163,100.00 from Hangzhou Xiacheng District Bureau as government subsidy; (2)
According to 杭财
企2008(1211) – “Awarding Subsidy to the Second Lot of Technical Innovation Projects”, Auxiliary Co.
received RMB600 thousand.
2 Total of shareholders and top-10 holders of current shares in shares
Total shareholders at the end of the report period (accounts) 15,136
Top Ten Shareholders of Negotiable Shares
Full name of shareholder Negotiable shares held at
the end of report term Categories
SCHRODER INTL SELECTION FD-GREATER CN FD
GTI 25287 6,287,474 Foreign shares placed in domestic exchange
SCHRODER INTERNATIONAL SELECTION FUND 5,663,033 Foreign shares placed in domestic exchange
HSBC CHINA DRAGON FUND 2,729,991 Foreign shares placed in domestic exchange
NORGES BANK 2,562,014 Foreign shares placed in domestic exchange
SCHRODERS KOREA LIMITED 2,042,251 Foreign shares placed in domestic exchange
LAU YAM HOI 1,783,600 Foreign shares placed in domestic exchange
TOYO SECURITIES ASIA LIMITED-A/C CLEENT. 1,492,965 Foreign shares placed in domestic exchange
Gong Xihua 1,292,204 Foreign shares placed in domestic exchange
BOCHK INVESTMENT FUNDS-BOCHK CHINA
GOLDEN DRAGON FUND 1,276,797 Foreign shares placed in domestic exchange
INVESTERINGSFORENINGEN DANSKE INVEST 1,173,395Foreign shares placed in domestic exchange200771 Hangzhou
Steam Turbine Co., Ltd. The 1st Quarterly Report 2009, Announcement 2009-12
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III. Important issues
1. Particulars and reasons of major changes in accounting items and financial data
(1) Statement on major changes of the consolidated financial statements:
Items with fluctuate of amounts in Financial Statements over 30% (include) and its difference is over 5%
(include)
of the total profit RMB0’000
Amount Difference and changes
No. Items Jan-Mar
2009
Jan-Mar
2008 Amount Scale %
Portion of difference in
total profit >= 5%
Major influencing
facts
4、 Financial
expenses -818.11 24.32 -842.43 -3,463.39% -.630%
Influenced by
exchange gain/loss
5、 Investment
income 120.00 2,822.95 -2,702.95 -95.75% -20.20% Note 1
Note: Decreasing was caused by dividend of RMB25 million from Bank of Hangzhou in 2007, and the dividend
of RMB2.412 million from Zhejiang Tianyu Holdings Co., Ltd. in 2007.
2. Progress, influence, and resolution of significant issues
□applicable √ not applicable
3. Fulfilling of commitments of the Company, the shareholders, and substantial controlling party
□applicable √ not applicable
4. Alarming prompt and statement of reasons on possible loss or significant change of accumulative net
profit from the beginning of end of next report term
□applicable √ not applicable
5. Other significant issues need to be clarified
(1) Investment in stocks
□applicable √ not applicable
(2) Brief of accepting investigation, communication, and visiting
Time/date Place Way Visitors Main content involved and material provided
Jan 04 2009 The
Company
Onsite
investigation
Individual
shareholder
Application of the products, B share’s way out, market
environment of year 2009
Feb 12
2009
The
Company
Onsite
investigation Boshi Fund Market share, annual remuneration, sate of personnel and sales
Feb 16,
2009
The
Company
Onsite
investigation
Individual
shareholder
Market trend of 09, relationship between the share price and the
Company’s performance
(3) Statement on other significant issues
According to “Rules of Certifying the High-tech Enterprises” issued by Department of Technologies,
Department
of Finance, and National Tax Bureau, Zhongneng Co. – the subsidiary of the Company was certified by
Zhejiang
Department of Technologies as high-tech enterprises. Since January 1, 2008, Zhongneng started to enjoy 15%
of
the income tax rate for three years. Relative announcement was released by Securities Times, Shanghai
Securities
Daily and http://www.cninfo.com.cn on April 9, 2009 (Announcement: Lin 2009-10), and December 26, 2008
(Announcement: Lin 2008-32).200771 Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2009,
Announcement 2009-12
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IV. Attachment
4.1 Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd. Ended March 31st 2009 in RMB Yuan
Balance at the end of term Balance at the beginning of year
Items
Consolidated Parent company Consolidated Parent company
Current asset:
Monetary capital 466,850,899.83 177,988,289.77 450,103,030.94 158,711,304.02
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 311,533,906.12 242,731,985.92 374,122,522.90 279,142,200.00
Account receivable 1,272,625,633.29 1,106,392,420.86 1,184,421,641.17 1,045,972,821.97
Prepayment 265,943,566.84 144,720,005.79 230,097,109.65 84,096,664.49
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable 17,212,500.00
Other account receivable 19,055,248.90 22,369,731.32 17,241,574.65 13,786,223.02
Repurchasing of financial assets
Inventories 1,303,079,549.21 947,917,285.52 1,192,643,294.30 850,043,203.46
Non-current asset due in 1 year
Other current asset 76,550.51 236,603.00
Total of current asset 3,639,165,354.70 2,642,119,719.18 3,448,865,776.61 2,448,964,916.96
Non-current assets
Loans and payment on other’s behalf disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 408,093,320.85 456,741,640.85 408,093,320.85 455,849,320.85
Investment real estate
Fixed assets 514,379,799.01 387,940,151.53 523,475,639.79 397,301,612.80
Construction in process 36,772,651.28 6,883,900.44 37,083,938.18 11,299,250.13
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 101,412,929.98 47,902,806.89 102,596,697.16 49,081,454.61
R&D expense
Goodwill
Long-term amortizable expenses 10,360,589.61 9,467,565.08 10,370,103.45 9,467,565.08
Differed income tax asset 38,706,286.20 30,966,989.05 39,120,424.79 30,966,989.05
Other non-current asset
Total of non-current assets 1,109,725,576.93 939,903,053.84 1,120,740,124.22 953,966,192.52
Total of assets 4,748,890,931.63 3,582,022,773.02 4,569,605,900.83 3,402,931,109.48200771 Hangzhou Steam
Turbine Co., Ltd. The 1st Quarterly Report 2009, Announcement 2009-12
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Current liabilities
Short-term loans 181,000,000.00 100,000,000.00 181,000,000.00 100,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 288,722,799.14 350,622,799.14 298,203,241.55 366,981,929.55
Account payable 390,115,040.32 313,021,549.48 283,861,630.55 221,991,259.71
Prepayment received 1,357,866,362.87 933,023,163.22 1,497,363,927.16 1,056,118,723.46
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 21,675,217.95 14,344,061.06 19,952,410.05 12,844,851.17
Tax payable 61,077,429.77 50,310,826.09 22,361,297.05 13,811,247.32
Interest payable 114,125.00
Dividend payable
Other account payable 41,844,180.77 31,490,085.03 36,174,381.34 26,661,061.72
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year
Other current liability 14,700,000.00
Total of current liability 2,342,301,030.82 1,792,812,484.02 2,353,731,012.70 1,798,409,072.93
Non-current liabilities
Long-term borrowings 90,463,800.00 90,463,800.00
Bond payable
Long-term payable 330,000.00 330,000.00
Special payable 80,000.00
Expected liabilities
Differed income tax liability 1,225,374.71 1,225,374.71 1,225,374.71 1,225,374.71
Other non-recurring liabilities 7,663,710.00 6,188,250.00 6,523,710.00 5,048,250.00
Total of non-current liabilities 99,762,884.71 97,877,424.71 8,079,084.71 6,273,624.71
Total of liability 2,442,063,915.53 1,890,689,908.73 2,361,810,097.41 1,804,682,697.64
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 371,800,000.00 371,800,000.00 371,800,000.00 371,800,000.00
Capital reserves 138,954,378.98 138,953,250.09 138,953,250.09 138,953,250.09
Less: Shares in stock
Surplus reserves 279,205,827.20 260,449,422.07 279,205,827.20 260,449,422.07
Common risk provision
Retained profit 1,208,050,246.23 920,130,192.13 1,111,352,798.36 827,045,739.68
Different of foreign currency translation
Total of owner’s equity belong to the parent company 1,998,010,452.41 1,691,332,864.29 1,901,311,875.65
1,598,248,411.84
Minor shareholders’ equity 308,816,563.69 306,483,927.77
Total of owners’ equity 2,306,827,016.10 1,691,332,864.29 2,207,795,803.42 1,598,248,411.84
Total of liabilities and owners’ equity 4,748,890,931.63 3,582,022,773.02 4,569,605,900.83
3,402,931,109.48200771 Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2009, Announcement 2009-12
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4.2 Income Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan - Mar 2009 in RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Total revenue 716,800,324.88 492,913,863.62 625,798,102.61 477,674,673.39
Incl. Business income 716,800,324.88 492,913,863.62 625,798,102.61 477,674,673.39
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 584,770,532.46 411,077,211.89 515,611,698.80 422,582,125.75
Incl. Business cost 474,040,731.30 332,334,060.43 374,682,726.84 314,794,103.88
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 1,705,196.17 460,274.06 1,204,493.27 281,291.80
Sales expense 24,538,057.17 17,702,128.19 24,039,855.37 16,419,572.12
Administrative expense 74,335,470.02 53,420,366.94 97,629,903.02 74,918,107.05
Financial expenses -8,181,068.89 -8,716,604.49 243,217.18 266,496.24
Asset impairment loss 18,332,146.69 15,876,986.76 17,811,503.12 15,902,554.66
Plus: Gains from change of fair value (“-“ for loss)
Investment gain (“-“ for loss) 1,200,000.00 24,320,000.00 28,229,451.17 33,946,057.99
Incl. Investment gains from affiliates -541,606.82
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 133,229,792.42 106,156,651.73 138,415,854.98 89,038,605.63
Plus: Non business income 2,095,987.62 155,617.96 939,740.80 354,140.80
Less: Non-business expenses 1,520,355.44 1,092,913.86 937,915.81 535,175.68
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 133,805,424.60 105,219,355.83 138,417,679.97 88,857,570.75
Less: Income tax expenses 19,537,038.92 12,134,903.38 21,648,083.44 13,727,878.19
V. Net profit (“-“ for net loss) 114,268,385.68 93,084,452.45 116,769,596.53 75,129,692.56
Net profit attributable to the owners of parent company 96,697,447.87 93,084,452.45 93,995,794.75
75,129,692.56
Minor shareholders’ equity 17,570,937.81 22,773,801.78
VI. Earnings per share:
(I) Basic earnings per share 0.26 0.25 0.25 0.20
(II) Diluted earnings per share 0.26 0.25 0.25 0.20200771 Hangzhou Steam Turbine Co., Ltd. The 1st
Quarterly Report 2009, Announcement 2009-12
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4.3 Cash Flow Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd. Jan - Mar 2009 in RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent
company
I. Net cash flow from business operation
Cash received from sales of products and providing of
services 596,113,098.37 381,712,075.45 652,908,997.07 470,861,459.11
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 14,458,577.73 14,407,182.93
Other cash received from business operation 39,872,265.56 1,853,462.25 4,867,876.69 365,093.97
Sub-total of cash inflow from business activities 650,443,941.66 397,972,720.63 657,776,873.76
471,226,553.08
Cash paid for purchasing of merchandise and services 496,060,972.85 402,429,264.06 487,433,587.96
351,668,113.02
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 106,449,877.42 84,972,704.35 93,022,104.73 80,533,339.74
Taxes paid 40,865,671.94 17,420,227.70 89,959,959.74 69,178,534.00
Other cash paid for business activities 48,672,874.93 9,128,533.74 41,226,685.98 25,550,077.59
Sub-total of cash outflow from business activities 692,049,397.14 513,950,729.85 711,642,338.41
526,930,064.35
Cash flow generated by business operation, net -41,605,455.48 -115,978,009.22 -53,865,464.65 -55,703,511.27
II. Cash flow generated by investing
Cash received from investment retrieving 12,000,000.00 12,000,000.00
Cash received as investment gains 1,200,000.00 41,532,500.00 28,771,057.99 27,571,057.99
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets 33,625.00 33,625.00
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 1,200,000.00 41,532,500.00 40,804,682.99
39,604,682.99
Cash paid for construction of fixed assets, intangible assets
and other long-term assets 13,627,787.76 4,678,937.74 38,476,851.64 13,204,682.94
Cash paid as investment 892,320.00 892,320.00
Net increase of loan against pledge
Net cash received from subsidiaries and other operational
units200771 Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2009, Announcement 2009-12
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Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 14,520,107.76 5,571,257.74 38,476,851.64
13,204,682.94
Net cash flow generated by investment -13,320,107.76 35,961,242.26 2,327,831.35 26,400,000.05
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 140,463,800.00 90,463,800.00 20,000,000.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 140,463,800.00 90,463,800.00 20,000,000.00
Cash to repay debts 50,000,000.00
Cash paid as dividend, profit, or interests 28,887,833.00 1,267,500.00 5,115,800.00
Incl. Dividend and profit paid by subsidiaries to minor
shareholders 4,900,000.00
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 78,887,833.00 1,267,500.00 5,115,800.00
Net cash flow generated by financing 61,575,967.00 89,196,300.00 14,884,200.00
IV. Influence of exchange rate alternation on cash and cash
equivalents 10,097,465.13 10,097,452.71 -216,607.82 -216,299.44
V. Net increase of cash and cash equivalents 16,747,868.89 19,276,985.75 -36,870,041.12 -29,519,810.66
Plus: Balance of cash and cash equivalents at the beginning
of term 450,103,030.94 158,711,304.02 296,605,363.48 125,110,310.08
VI. Balance of cash and cash equivalents at the end of term 466,850,899.83 177,988,289.77 259,735,322.36
95,590,499.42
4.4 Auditors’ Report
Auditor’s opinion: not audited.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board (Signature)
April 28, 2009
