Stock Code: 200771 Stock ID: Hangqilun B Announcement No. :2022-52
Hangzhou Steam Turbine Co., Ltd.
Announcement of Equity Allocation 2021
The members of the Board and the Company acknowledge being responsible for the
truthfulness, accuracy, and completeness of the announcement. Not any false record, misleading
statement or significant omission carried in this announcement.
Special Note:
According to the relevant provisions of the Company Law, 111,800 shares in the special securities
account repurchased by the Company are not entitled to profit distribution. This equity distribution
is based on the total share capital of 754,010,400 shares at the end of 2021, excluding 111,800 shares
that have been repurchased by date of record of the Company in equity distribution. that is,
753,898,600 shares, the Company would distribute cash dividend to all the shareholders at the rate
of RMB 4.0 for every 10 shares (with tax inclusive) , 3 bonus shares(with tax inclusive)，and no
reserve would be converted into share capital.
Since the repurchased shares do not participate in equity distribution, the total amount of the
Company's actual cash dividend this time = the total share capital in distribution ×distribution ratio,
that is, RMB 301,559,440 =(754,010,400-111,800) shares ×RMB 0.40/share, and the cash dividend
per share converted from total share capital of the Company = total cash dividend ÷ total share
capital before this change (including repurchased shares), that is, RMB 0.399941/share
(HK$ 0.478170/share) = RMB 301,559,440 ÷754,010,400 shares; The total number of actual bonus
shares = the total share capital distributed × the bonus share ratio, that is, 226,169,580 shares
=(754,010,400-111,800) shares× 0.3, and the ratio of bonus shares converted from the total share
capital of the Company = the actual total number of bonus shares this time ÷the total share capital
before this change (including repurchased shares), that is, 0.299956 = 226,169,580 shares ÷
754,010,400 shares. After the implementation of this equity distribution, according to the principle
of constant stock market value, the ex-dividend price after the implementation of this equity
distribution = (closing price of the last trading day - RMB 0.478170/share) ÷(1 + 0.299956).
The equity allocation plan of Hangzhou Steam Turbine Co., Ltd. of 2021 has been examined and
adopted at the Shareholders’ Meeting 2021 held on April 27,2022. The followings are the details
about implementation of the plan:
1. The General Meeting of Shareholders reviewed and approved the equity distribution plan
1. The Company's equity distribution plan for 2021, which was reviewed and approved at the
General Meeting of Shareholders：With the total share capital of 754,010,400 shares at the end of
the year deducting 111,800 treasury shares repurchased as of date of record by Company at the end
of 2021, that is, 753,898,600 shares, the Company would distribute cash dividend to all the
shareholders at the rate of RMB 4.0 for every 10 shares (with tax inclusive) , 3 bonus shares(with
tax inclusive)，and no reserve would be converted into share capital. that the stock shares
repurchased by the Company will not participate in profit distribution.
2. From the disclosure of the 2021 annual equity distribution plan to its implementation, the
total share capital of the Company has not changed.
3. The equity distribution plan implemented this time is consistent with the distribution plan
reviewed and approved by the General Meeting of Shareholders.
4. The implementation time of this equity distribution plan is less than two months from the
time when the General Meeting of Shareholders reviewed and approved it.
II. The equity allocation plan
The equity allocation plan for year 2021 is: With the total share capital of 754,010,400 shares
at the end of the year deducting 111,800 treasury shares repurchased as of date of record by
Company, that is, 753,898,600 shares at the end of 2021, It decides to distribute 3 bonus shares for
every 10 shares and RMB 4.0 in cash to all shareholders (tax included), the foreign non-residential
enterprise distributed the after -tax cash dividend of RMB 3.30 per 10 shares, for churchyard
individual of B shareholders are subject different tax ratio, distributed cash dividend of RMB 4.00
per 10 shares firstly, and tax shall be paid according to the actual term of shareholding after
reducing of shares [Note] .
[Note: On first –in –first –out basis, shareholding periods are calculated upon each shareholders’
account ,namely RMB 1.40 of tax per 10 shares for under 1 month(include);RMB 0.70 of tax per
10 share for between 1 month and 1year(include);no tax is payable for over one year. ]
Special note: Since the company is a Sino-foreign joint venture, individual foreign investors
may temporarily be exempted from dividend income tax.
Before the dividend, the total share capital of the Company was 754,010,400 shares, and after
the dividend, the total share capital increased to 980,179,980 shares.
For cash dividend to be distributed to B share shareholders, the first working day after the resoluti
on of the shareholders general meeting of 2021 will be followed, that is April 28,2022 is the day
that the central parity rate of RMB against Hong Kong dollar announced by the People's Bank of
China(Hong Kong dollar: RMB=1: 0.8364) is the exchange rate for payment by HK Dollar.
III. Dividend date
The final trading day: May 23, 2022；
Ex-dividend date: May 24, 2022;
The Equity registration date: May 26 2022.
The equity registration date for the equity distribution of domestic shares is: May 26,2022.
IV. Qualifications for the dividend
This distribution object is: all B-share shareholders of the Company registered in Shenzhen
Branch of China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as "CSDC
Shenzhen Branch") after the closing of Shenzhen Stock Exchange on the afternoon of May 26, 2022
(the last trading day is May 23, 2022); As of the afternoon of May 26, 2022, after the Shenzhen
Stock Exchange closed, all domestic shareholders of the Company registered in CSDC Shenzhen
Branch.
V. Equity distribution method
1. This B-share offering (swap) will be directly credited to the shareholders' B-share securities
account on May 26, 2022. The shares offered (swapped) by domestic shares will be directly credited
to the shareholders' securities account on May 26, 2022. For the part of less than 1 share generated
in the process of share offering (swap), one share will be distributed to shareholders in order of
descending mantissa after decimal point (if the mantissa is the same, it will be distributed randomly
by the system) until the actual total number of shares offered (swapped) is consistent with the total
number of shares offered (swapped) this time.
2.The circulation B shares dividend will be directly transferred on May 26, 2022 into the
shareholder’s accounts of entrusted Security agency or entrusted bank; Shareholders whose B
shares are entrusted on May 26, 2022, they can still withdraw their dividends at the former
entrusted security agency or the entrusted banks.
3.The cash dividends of domestic shareholders and restricted shareholders with equity incentive
will be distributed by the Company itself.
4. The starting trading day of the negotiable shares offered (swapped) by this B-share is May 27,
2022.
VI. Statement of changes in shares
Before and after the implementation of this equity distribution, the changes of the Company's
share capital structure are as follows:
Before the change Increase/decrease（+， After the Change
Nature
Amount(Shares) Proportion Amount(Shares) Proportion
-）(Shares)
I. Unlisted shares 479,824,800 63.64% 143947440 623,772,240 63.64%
II.Non-restricted shares 274,185,600 36.36% 82222140 356,407,740 36.36%
Including：1. Restricted
19,498,059 2.59% 5,849,418 25,347,477 2.59%
circulating stock
2. Non-restricted
254,687,541 33.78% 76,372,722 331,060,263 33.78%
circulating stock
III. Total of capital shares 754,010,400 100.00% 226169580 980,179,980 100.00%
VII. Adjustment of related parameters
1. After the implementation of this share offering, the net income per share in 2021 is RMB 0.68
based on the diluted share capital of 980,179,980 shares.
2. Because the share repurchase does not participate in the equity distribution, the total amount
of the Company's actual cash dividend this time = the total share capital actually participated in
the distribution × the distribution ratio, that is, 301,559,440 yuan = (754,010,400-111,800) shares
× 0.40 yuan/share. The cash dividend per share = total cash dividend ÷total share capital before this
change (including repurchased shares), that is, RMB 0.399941/share (HK$ 0.478170/share) = RMB
301,559,440 ÷754,010,400 shares; The total number of actual bonus shares = the total share capital
distributed × the bonus share ratio, that is, 226,169,580 shares =753,898,600 shares× 0.3, and the
share change ratio = the actual total number of bonus shares this time ÷the total share capital before
this change (including repurchased shares), that is, 0.299956 = 226,169,580 shares ÷ 754,010,400
shares. After the implementation of this equity distribution, according to the principle of constant
stock market value, the ex-dividend price after the implementation of this equity distribution =
(closing price of the last trading day - RMB 0.478170/share) ÷(1 + 0.299956).
3. According to the Company's Restricted Stock Incentive Plan in 2021, after the implementation
of this equity distribution, for the number of restricted stock repurchases that have been granted but
with restriction not lifted, and the repurchase price adjustment, the Company will make an
announcement after the review procedure is performed separately.
VIII. Others
If the B shareholder is not belong to the churchyard individual and non-residential enterprise ,but
their bonuses tax are deducted, please contact with the Company before June 15, 2022 (including
the date ), and provide related materials requested by the Tax bureau, company will help to refund
the tax after affirmed.
IX. Consulting agencies and contacts
1. Consulting agency: Office of the Board of Directors of Hangzhou Steam Turbine Co., Ltd.
2. Consulting address: Steam Turbine Power Building, No.1188 Dongxin Road, Hangzhou
3. Consulting contact: Wang Caihua, Li Xiaoyang
4.Consulting telephone: 0571-85780438
5. Fax: 0571-85780433
X. Documents for Reference
1.The resolutions of the 23rd meeting of the Eighth board of directors;
2.The Company’s 2021 annual shareholders general meeting’s resolution;
3.Other documents required by Shenzhen Stock Exchange.
The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
May 18, 2022
