Summary of 2021 Annual Report
Stock Code: 200771 Stock ID: Hangqilun B Announcement No.：2022-17
Hangzhou Steam Turbine Co., Ltd.
Summary of 2021 Annual Report
I. Important Notice
The Board of Directors, The Supervisory Committee, the supervisors and the directors 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.
Chairman Mr. Zheng Bin, Chief Financial Officer Mr.Zhao Jiamao, and the Chief of Accounting Department
Mr.Jin Can hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.
All of the directors attended the board meeting on which this report was examined.
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.
For the risks existing in the Company's operation, please refer to the section "Prospects for the future
development of the Company" in 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.
Non-standard auditor’s opinion
□ Applicable √ Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to
the Board during the reporting period.
√ Applicable □ Not applicable
Whether provident fund reserve for share capital
□ Yes √ No
According to the profit distribution plan deliberated and adopted by the meeting of BOD, 753,898,600 for the
base, the Company would distribute cash dividend to all the shareholders at the rate of CNY 4.0 for every 10
shares (with tax inclusive) , 3 bonus shares（including tax）and no reserve would be converted into share
capital.
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √ Not applicable
1
Summary of 2021 Annual Report
II. Basic information about the company
1. Company profile
Stock ID Hangqilun B Stock code 200771
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Li Guiwen Li Xiaoyang
No.1188, Dongxin Road, Hangzhou , No.1188, Dongxin Road, Hangzhou ,
Address Zhejiang Zhejiang
Tel. 0571-85780433 0571-85780433
Fax. 0571-85780058 0571-85780438
Email. lgw@htc.cn lixiaoyang@htc.cn
2.Major operations or products during the reporting period
As the leading provider of turbo machinery equipment and relevant service in China, our company is mainly
famous for designing and producing rotating turbo machinery like industrial steam turbines and gas turbines.
Our company, one of the major companies drafting the industrial standard in Chinese domestic industry of
industrial steam turbine, has developed into the biggest base to research, develop and produce industrial steam
turbines in China and ranks first among industrial steam turbine producers in terms of the market occupancy.
Holding the principle “our products should be based on clients’ demands” as our business mode and
characteristic, our company designs and produces in accordance with every client’s personal demands so as to
meet personalized needs in engineering projects to the utmost. To realize the fast research and development of
our products, our company has adopted the advanced modular design technique and, on the other hand,
introduces information technique to assist the collaborative production to achieve the resource saving and
flexible production. In addition, our company also provides our clients with relevant service such as engineering
programs, general engineering contracting, operation and maintenance of our products as well as remote control
and so on.
Industrial steam turbines use the steam featuring high temperature and high pressure as their working medium so
as to convert the thermal energy into mechanical energy to drive various industrial equipments through the
rotating steam turbines. As for different objects driven by industrial steam turbines, the steam turbines could be
divided into industrial driving steam turbines and industrial power-generation steam turbines. Mainly driving
rotating machines like compressors, air blowers, pumps and squeezers, industrial driving steam turbines, as the
core power part in numerous large-scale industrial equipments, are always introduced into some industries like
oil refining, chemical engineering, chemical fertilizer, building materials, metallurgy, electric power, light
industry and environmental production. The industrial power-generation steam turbines, mainly utilized to drive
electric generators and provide thermal energy, are mainly adopted in private stations, regional projects of
combined heat and power generation, power generation by recycling waste heat in industrial production, urban
waster power plants and gas-steam combined cycle power stations in various industrial sectors. The gas turbines
2
Summary of 2021 Annual Report
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 Energy 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 SGT-300, SGT-700 and SGT-2000E. 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.
During the reporting period, the Company focused on the annual work policy of "digital empowerment,
transformation and upgrading, strengthening enterprises with talents and high-quality development", while
continuously ensuring epidemic prevention and control, it steadily increased the production capacity of the
manufacturing base, and fully guaranteed the contract delivery; solidly promoted technology research and
development, and made fine products with craftsman spirit; explored the construction of key customer marketing
management system and consolidated the market competitive advantage; promoted the "14th Five-Year Plan" and
started the road of transformation, upgrading and high-quality development.
In 2021, the annual operating income was RMB 5,788,288,600, the total profit was RMB 832,547,500 and the
net profit was RMB 727,247,800, of which the net profit attributable to shareholders of listed companies was
RMB 649,992,500. Compared with the same period of last year, the operating income increased by 21.54%, the
total profit increased by 25.93%, the net profit increased by 25.49% and the net profit attributable to shareholders
of listed companies increased by 36.48%. Under the macro background of "double carbon" policy and slowing
economic growth, the operating data increased against the trend, and the 14th Five-Year Plan achieved a favorable
start.
1). Focus on market
During the reporting period, in the face of the severe market situation and fierce competition pattern under the
"double carbon" policy, the Company stabilized the industry-driven market by strengthening "sales around the
front" and deepening the plate linkage mechanism. Its typical projects included 7 sets of units in Ningxia Baofeng
Phase III coal-to-methanol project, caprolactam project of Sinopec Baling Petrochemical Company and the oil
refining to chemical supporting project of Sinopec Anqing Petrochemical. By seizing the investment opportunity
of thermal power generation, it strove to compete for the industrial power generation market, and the contract
undertaking in the power generation field increased compared with the same period of last year, and it was
successively awarded with the Smart Energy Center Project of Yiwu High-tech Zone of BR Energy, the 50MW
3
Summary of 2021 Annual Report
Back Pressure Power Generation Project of Jiahua Energy, the Low-voltage Waste Heat Power Generation Project
of Pengwei Petrochemical, etc. By accurately predicting the industry background of "refining control and
chemical increase", it found out the development direction of new material market and opened up new markets. It
gained gradual improvement in gas turbine market, and it successfully signed contract on Huadian Jiangdu Natural
Gas Distributed Energy Project, Haining Guangyao Natural Gas Distributed Energy Project and Asia Symbol
Paper Self-provided Power Station Project, etc.
2). Digital empowerment
During the reporting period, the Company continued to promote intelligent construction and digital
transformation of the enterprise, continuously optimized MES system to help refine production management,
promoted ERP construction in an all-round way, determined the ERP selection scheme according to the
Company's "tailor-made" single piece and small batch production characteristics, completed the blueprint of
digital factory construction in manufacturing base, completed the preliminary scheme of digital factory
construction, put the industrial internet platform and service management platform into trial operation, fully put
the new OA system into use, put the system flow and management platform online on a large scale, continuously
optimized the rapid collaborative development platform (BCP) with independent intellectual property rights, and
deeply integrated with OA to realize the integration of office flow and business flow.
3). Transformation and upgrading
During the reporting period, the implementation of the Company's "Key Account Management System Based
on Equipment Lifecycle Management" achieved a series of achievements, and it successively renewed the
strategic cooperation agreement with Shenyang Blower, signed the strategic and long-term cooperation agreement
with Hengli Petrochemical, further consolidated the relationship with various engineering general contracting
companies, preliminarily established the key account training system, and obtained good market feedback for the
first round of customer training. In order to realize the transition to service-oriented manufacturing and build the
development direction of "big service", during the reporting period, the Company completed the construction of
"two-line" service team, focusing on breaking through modules such as "O&M training, technical training,
inspection and diagnosis". It established Hangzhou Steam Turbine New Energy Co., Ltd., and set up the
"Hangzhou Steam Turbine and Siemens Energy Joint Technology Center" in cooperation with Siemens Energy,
which marks its comprehensive engagement in the field of distributed energy, thermoelectric transformation and
new energy.
4). Strengthen enterprise with talents
During the reporting period, the Company promoted the implementation of the human resources promotion
project from three aspects: strengthening the human resources foundation, improving the efficiency of human
resources management and optimizing the human resources management mechanism. It gradually established a
performance-oriented talent evaluation model, strove to build a human resource management system based on
value creation, completed the evaluation work of eight "company-level skill master studios" such as "Leaf
Installation Skill Master Studio", and fully utilized the positive role of high-skilled talents in technological
innovation, skill inheritance and grass-roots management; successfully implemented the equity incentive plan,
formulated performance appraisal methods for the implementation of equity incentive targets, further established
4
Summary of 2021 Annual Report
and improved the long-term incentive mechanism, and attracted and retained outstanding talents.
5). High quality development
During the reporting period, the Company accelerated scientific research and achieved fruitful product
development. The Company emphasized product efficiency improvement, parameter improvement, technology
update and product development, and focused on difficult projects in the fields of large air separation, large
ethylene, subcritical, high back pressure and low-pressure waste heat utilization, etc., and accepted 29 key
research projects and completed the approval of 38 new product development and key research projects, including
15 new products, creating a record high. The Company's two projects, namely "R&D and Application of Steam
Turbine for Nuclear Island Emergency Auxiliary Feed Water Pump" and "Low-quality Energy Efficient
Utilization Technology and Application", won the first prize of Zhejiang Machinery Industry Federation's 2021
Science and Technology Award; "R&D and Application of Key Technologies for Efficient and Reliable Blades of
Industrial Steam Turbines" won the first prize of Provincial Scientific and Technological Progress; "The Last
Blade of Low-pressure Stage Group of Large-flow Air-cooled Steam Turbine" won the China Patent Excellence
Award. During the reporting period, the Company comprehensively promoted world-class benchmarking in
combination with management innovation, realized management improvement, and promoted the decomposition
and tracking of the strategic objectives of the 14th Five-Year Plan according to the requirements of enterprise
transformation and upgrading and high-quality development, so as to ensure the steady implementation and
optimization and improvement of the strategy.
3.Major accounting data and financial indicators
（1）Major accounting data and financial indicators for the last three years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√Yes □No
Retroactive adjustment or restatement of causes
Merger of enterprises under the same control
In RMB
Changed
End of 2020 over last End of 2019
End of 2021
year（％）
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Gross assets
16,319,667,628.76 15,392,653,924.41 16,375,832,611.51 -0.34% 12,600,115,579.96 13,809,675,082.80
（Yuan）
Net assets
attributable to
shareholders of 7,927,485,773.65 8,104,788,941.36 8,163,905,778.62 -2.90% 6,607,496,148.58 6,651,190,318.58
the listed
company（Yuan）
Changed
2020 over last 2019
2021 year（％）
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Operating revenue 5,788,288,588.91 4,496,445,244.55 4,762,315,089.10 21.54% 4,279,848,518.81 4,651,946,726.63
5
Summary of 2021 Annual Report
（Yuan）
Net profit
attributable to the
shareholders of 649,992,474.56 459,345,443.38 476,268,110.63 36.48% 345,138,064.00 337,347,736.45
the listed
company（Yuan）
Net profit after
deducting of
non-recurring
gain/loss
428,122,980.65 372,697,902.88 372,697,902.88 14.87% 302,012,173.45 302,012,173.45
attributable to the
shareholders of
listed company
（Yuan）
Cash flow
generated by
business 71,809,489.02 454,416,600.69 628,885,775.12 -88.58% 432,255,831.23 478,743,410.42
operation, net
（Yuan）
Basic earning per
0.88 0.62 0.64 37.50% 0.46 0.45
share(Yuan/Share)
Diluted gains per
0.88 0.62 0.64 37.50% 0.46 0.45
share(Yuan/Share)
Net asset earning
8.01% 6.24% 6.43% 1.58% 5.48% 5.31%
ratio（%）
（2）Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 1,181,683,010.42 1,784,337,440.65 1,114,367,481.21 1,707,900,656.63
Net profit attributable to the
shareholders of the listed 161,578,759.88 264,062,657.07 151,725,602.91 72,625,454.70
company
Net profit after deducting of
non-recurring gain/loss
54,440,724.84 204,072,408.44 143,471,580.39 26,138,266.98
attributable to the shareholders of
listed company
Net Cash flow generated by
157,547,348.48 19,533,664.23 -311,520,573.87 206,249,050.18
business operation
Indicate by tick mark whether any of the financial data in the table above or their summations differs
materially from what have been disclosed in the Company’s quarterly or semi-annual reports.
□ Yes √ No
4.Share capital and shareholders
（1）Number of holders of ordinary shares and preference shares with restored voting right and Top 10
shareholders
In shares
Total
Total
Total number of common shareholders at The total number of pref preferred sharehold
shareholders at the end of the end of the erred shareholders ers at the end of the
the 11,086 month from the 11,034 0 0
voting rights restored at month from the date
date of
reporting period period-end of disclosing the
disclosing the
annual report
annual report
Shareholdings of Top 10 shareholders
Shareholders Nature of Proportio Number of shares held at Amount of restricted Number or share
6
Summary of 2021 Annual Report
shareholder n of period -end pledged/frozen
shares shares held
held（%） State of share Amount
Hangzhou Steam Turbine State-owned
63.64% 479,824,800 479,824,800
Power Group Co., Ltd. legal person
GUOTAI JUNAN
Foreign legal
SECURITIES(HONGKON 1.02% 2,679,711 0
person
G) LIMITED
China Merchants State-owned
0.74% 4,117,303 0
Securities(HK)Co., Ltd. legal person
Domestic
Zhou Jie Natural 0.61% 4,341,100 0
person
VANGUARD TOTAL
Foreign legal
INTERNATIONAL 0.59% 5,365,877 0
person
STOCK INDEX FUND
VANGUARD EMERGING
Foreign legal
MARKETS STOCK 0.57% 3,962,204 0
person
INDEX FUND
ISHARES CORE MSCI
Foreign legal
EMERGING MARKETS 0.52% 3,231,301 0
person
ETF
Foreign legal
NORGES BANK 0.33% 2,514,529 0
person
Domestic
Xia Zulin Natural 0.31% 2,320,000 0
person
Domestic
Gu Yang Natural 0.21% 1,504,552 0
person
(1) Hangzhou Steam Turbine Power Group Co., Ltd. is the holder of state-shares of the
Company, all other shareholders’ are holders of domestic listed foreign shares (B
shares)
(2) There is no relationship between Hangzhou Steam Turbine Power Group Co., Ltd.
Explanation on associated relationship
and other shareholders;
among the aforesaid 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”.
Notes to the shareholders involved in
Not applicable
financing securities (if any)
(2)Total preference shareholders and the shares held by the Top 10 Preference shareholders
□ Applicable √ Not applicable
The Company has no preferred shareholders during the reporting period.
7
Summary of 2021 Annual Report
(3)Block diagram of the ownership and control relations between the Company and the actual controller
5.Bonds in existence as of the approval date of the annual report
□ Applicable √ Not applicable
III. Important Events
1. Acquisition of part of equity assets of subsidiaries of controlling shareholders
On November 3, 2021, the Eighth Session of the Nineteenth Board of Directors of the Company reviewed
and approved the Proposal on the Acquisition of Part of Equity Assets and Related Transactions of the
Companies of the Controlling Shareholders. The Company and Zhongneng Company, the holding subsidiary of
the Company, plan to conclude equity transfer agreements with Hangzhou Steam Turbine Group, Technology
Company and natural person shareholders, and purchase equity of many enterprises by cash, with a total
transaction amount of RMB 351,734,743.00, among which the transactions with Hangzhou Steam Turbine
Group and Technology Company are related transactions, with a total transaction amount of RMB
308,638,942.86 and the transaction amount with other transaction objects is RMB 43,095,800.14. As of
November 26, 2021, all the acquisition target companies have completed the industrial and commercial change
registration procedures and obtained renewed business licenses. So far, the Company holds 100% equity of
Hangzhou Hangfa Power Generation Equipment Co., Ltd. through its holding subsidiary Hangzhou Zhongneng
Steam Turbine Power Co., Ltd., and directly holds 100% equity of Hangzhou Steam Turbine Engineering Co.,
Ltd. and 30% equity of Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. (all five directors are
appointed by the Company, which constitutes actual control), 55% equity of China mechanical and Electrical
Institute -HSTG (Hangzhou) United Institutes Co., Ltd., 85.60% equity of Zhejiang Ranchuang Turbine
Machinery Co., Ltd. and 75.855% equity of Zhejiang Steam Turbine Packaged Technology Development Co.,
Ltd, all of which are included in the scope of the Company's consolidated statements.
The business of this acquisition object mainly involves the manufacturing of generators, water turbines,
steam turbines and pumps, EPC, control system integration and complete set of technical services, gas turbine
technology development, equipment transportation and warehousing services, etc., all of which have a high
8
Summary of 2021 Annual Report
correlation with the businesses of listed companies, and can quickly form synergy. Through this equity
acquisition, the Company can further improve its industrial chain, enrich product categories, improve
technology R&D capabilities, build a service-oriented manufacturing platform integrating advanced turbine
equipment manufacturing, packaged engineering and overall solutions, and promote the Company's
transformation to "service-oriented manufacturing", which is in line with the Company's long-term development
strategy.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
March 31, 2022
9
