Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. :2022-77
Hangzhou Steam Turbine Co., Ltd.
The Semi-Annual Financial Report 2022
（Stock Code：200771）
August 2022
1
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
June 30,2022
In RMB
Items June 30,2022 January 1,2022
Current asset：
Monetary fund 1,620,500,753.16 1,622,883,247.79
Settlement provision
Outgoing call loan
Transactional financial assets 502,218,468.16 960,645,259.82
Derivative financial assets
Notes receivable 157,563,096.31 215,046,941.09
Account receivable 1,873,526,814.67 1,997,950,120.70
Financing of receivables 673,529,205.97 816,653,211.21
Prepayments 413,953,272.81 443,770,434.91
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 123,839,204.47 44,163,396.56
Including：Interest receivable
Dividend receivable 95,156,322.10
Repurchasing of financial assets
Inventories 2,391,047,743.93 3,041,643,747.35
Contract assets 842,368,816.31 583,026,649.99
Assets held for sales
Non-current asset due within 1 year
Other current asset 14,448,499.09 66,174,951.42
Total of current assets 8,612,995,874.88 9,791,957,960.84
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other investment on bonds
Long-term receivable 113,541,093.20 153,741,093.20
Long term share equity investment
Other equity instruments investment 4,072,690,585.88 3,485,440,140.92
Other non-current financial assets 18,680,533.96 14,792,533.96
Property investment 6,677,732.31 6,903,986.07
Fixed assets 1,902,319,122.21 1,658,423,191.83
Construction in progress 292,774,103.05 517,835,956.11
Production physical assets
Oil & gas assets
Use right assets 26,443,529.73 30,437,778.92
Intangible assets 273,560,374.06 277,469,707.24
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Development expenses 8,826,283.85
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 378,757,911.75 382,665,279.67
Other non-current asset
Total of non-current assets 7,094,271,270.00 6,527,709,667.92
Total of assets 15,707,267,144.88 16,319,667,628.76
Current liabilities
Short-term loans 191,300,000.00 250,065,920.45
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 320,332,010.57 309,404,319.27
Account payable 1,585,258,800.30 1,910,150,188.14
Advance receipts 43,034.40 812,701.37
Contract liabilities 2,415,706,673.37 3,052,515,293.06
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 111,740,373.62 133,122,509.92
Tax payable 62,177,327.84 81,622,378.10
Other account payable 308,870,811.81 434,578,338.13
Including：Interest payable 87,003.63
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 16,096,645.58 17,607,722.97
Other current liability 312,731,160.87 395,640,629.47
Total of current liability 5,324,256,838.36 6,585,520,000.88
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 185,305,333.33 180,830,007.55
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 21,143,942.83 22,575,754.77
Long-term payable 12,489,403.06 7,579,677.56
Long-term remuneration payable to staff
Expected liabilities
Deferred income 712,789,762.50 729,438,751.74
Deferred income tax liability 552,260,481.88 464,172,915.14
Other non-current liabilities
Total non-current liabilities 1,483,988,923.60 1,404,597,106.76
Total of liability 6,808,245,761.96 7,990,117,107.64
Owners’ equity
Share capital 980,179,980.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 310,929,701.90 282,946,030.50
Less：Shares in stock 144,078,948.09 144,078,948.09
Other comprehensive income 3,128,907,574.32 2,629,477,756.99
Special reserve 17,874,910.32 18,369,033.52
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Surplus reserves 625,178,089.82 625,178,089.82
Common risk provision
Retained profit 3,582,194,700.93 3,761,583,410.91
Total of owner’s equity belong to the
8,501,186,009.20 7,927,485,773.65
parent company
Minority shareholders’ equity 397,835,373.72 402,064,747.47
Total of owners’ equity 8,899,021,382.92 8,329,550,521.12
Total of liabilities and owners’ equity 15,707,267,144.88 16,319,667,628.76
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Jin Can
2.Parent Company Balance Sheet
In RMB
Items June 30,2022 January 1,2022
Current asset：
Monetary fund 896,556,113.90 911,448,637.39
Transactional financial assets 347,218,468.16 870,645,259.82
Derivative financial assets
Notes receivable 45,044,808.21 6,961,501.77
Account receivable 1,348,119,879.42 1,580,364,876.72
Financing of receivables 450,433,874.60 521,567,126.16
Prepayments 354,324,233.37 362,130,094.32
Other account receivable 104,657,561.33 27,054,816.71
Including：Interest receivable
Dividend receivable 95,156,322.10
Inventories 1,301,050,338.81 1,972,162,485.26
Contract assets 635,909,746.51 336,771,206.36
Assets held for sales
Non-current asset due within 1 year
Other current asset 512,484.67 54,571,853.02
Total of current assets 5,483,827,508.98 6,643,677,857.53
Non-current assets：
Creditor's rights investment
Other creditor's rights investment
Long-term receivable
Long term share equity investment 294,384,923.57 191,793,655.63
Other equity instruments investment 4,072,690,585.88 3,485,440,140.92
Other non-current financial assets 18,542,773.22 14,654,773.22
Property investment
Fixed assets 1,474,805,698.77 1,216,961,095.52
Construction in progress 277,084,856.48 510,746,977.12
Production physical assets
Oil & gas assets
Use right assets 4,128,878.49 5,718,846.89
Intangible assets 192,586,314.06 194,828,927.84
Development expenses 8,826,283.85
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 315,055,063.19 317,178,990.36
Other non-current asset
Total of non-current assets 6,658,105,377.51 5,937,323,407.50
Total of assets 12,141,932,886.49 12,581,001,265.03
Current liabilities
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Short-term loans 100,000,000.00 150,136,986.30
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 990,774,090.43 1,225,766,343.67
Advance receipts
Contract Liabilities 1,399,382,054.66 2,144,268,617.09
Employees’ wage payable 82,979,837.37 76,018,039.12
Tax payable 19,947,998.17 11,130,803.71
Other account payable 172,248,567.30 177,365,722.18
Including：Interest payable 81,369.86
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year 2,586,758.67 4,612,006.37
Other current liability 180,520,285.05 276,610,651.60
Total of current liability 2,948,439,591.65 4,065,909,170.04
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 2,799,027.12 2,799,027.12
Long-term payable 7,712,128.03 2,785,102.53
Long-term remuneration payable to staff
Expected liabilities
Deferred income 572,239,073.25 582,083,796.03
Deferred income tax liability 552,260,481.88 464,172,915.14
Other non-current liabilities
Total non-current liabilities 1,135,010,710.28 1,051,840,840.82
Total of liability 4,083,450,301.93 5,117,750,010.86
Owners’ equity
Share capital 980,179,980.00 754,010,400.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 149,440,770.05 121,457,098.65
Less：Shares in stock 144,078,948.09 144,078,948.09
Other comprehensive income 3,129,476,063.99 2,630,313,185.77
Special reserve 6,000,000.00 6,000,000.00
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 3,335,108,315.96 3,493,193,115.19
Total of owners’ equity 8,058,482,584.56 7,463,251,254.17
Total of liabilities and owners’ equity 12,141,932,886.49 12,581,001,265.03
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
The first half year of
Items The first half year of 2022
2021
I. Income from the key business 3,075,980,333.58 3,163,901,368.82
Incl：Business income 3,075,980,333.58 3,163,901,368.82
Interest income
Insurance fee earned
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Fee and commission received
II. Total business cost 2,810,600,443.91 2,952,184,762.21
Incl：Business cost 2,228,055,203.58 2,301,413,650.95
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 10,228,475.79 15,873,284.22
Sales expense 78,219,071.00 81,428,615.21
Administrative expense 368,654,248.66 362,418,957.99
R & D costs 139,161,056.99 191,842,559.91
Financial expenses -13,717,612.11 -792,306.07
Including：Interest expense 14,311,023.99 14,705,841.55
Interest income 8,990,251.62 7,929,200.71
Add: Other income 25,736,741.41 116,999,312.58
Investment gain（“-”for loss） 120,433,048.90 157,867,336.72
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 3,461,208.34 -1,796,914.44
Credit impairment loss -14,898,317.52 -23,691,585.21
Impairment loss of assets 13,716,296.24 -36,804,146.37
Assets disposal income -45,800.77 -49,541.80
III. Operational profit（“-”for loss） 413,783,066.27 424,241,068.09
Add ：Non-operational income 44,565,419.80 118,863,751.28
Less: Non-operating expense 4,365,148.35 80,127,942.29
IV. Total profit(“-”for loss) 453,983,337.72 462,976,877.08
Less：Income tax expenses 65,447,951.68 95,352,843.14
V. Net profit 388,535,386.04 367,624,033.94
(I) Classification by business continuity
1.Net continuing operating profit 388,535,386.04 367,624,033.94
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 348,340,310.01 336,184,909.79
2.Minority shareholders’ equity 40,195,076.03 31,439,124.15
VI. Net after-tax of other comprehensive income 499,789,796.07 -38,666,598.38
Net of profit of other comprehensive income attributable to owners o 499,429,817.33 -39,022,242.47
f the parent company.
（I）Other comprehensive income items that will not be reclassified
499,162,878.22 -39,285,967.26
into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net as
sets
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
499,162,878.22 -39,285,967.26
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 or lo 266,939.11 263,724.79
ss.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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 266,939.11 263,724.79
7.Other
Net of profit of other comprehensive income attributable to Minority
359,978.74 355,644.09
shareholders’ equity
VII. Total comprehensive income 888,325,182.11 328,957,435.56
Total comprehensive income attributable to the owner of the parent
847,770,127.34 297,162,667.32
company
Total comprehensive income attributable minority shareholders 40,555,054.77 31,794,768.24
VIII. Earnings per share
（I）Basic earnings per share 0.36 0.35
(II)Diluted earnings per share 0.36 0.35
The current business combination under common control, the net profits of the combined party before achieved net pro
fit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Jin Can
4. Income statement of the Parent Company
In RMB
The first half year of
Items The first half year of 2022
2021
I. Income from the key business 2,013,198,153.90 1,887,026,653.89
Incl：Business cost 1,526,757,618.92 1,445,877,122.80
Business tax and surcharge 4,396,939.54 9,461,259.64
Sales expense 30,480,772.71 39,639,769.92
Administrative expense 255,877,513.27 227,123,091.22
R & D expense 76,889,969.80 112,889,389.79
Financial expenses -18,753,297.78 -6,661,202.38
Including：Interest expenses 3,136,478.56 6,496,739.73
Interest income 5,673,663.33 4,450,243.67
Add：Other income 12,527,605.37 105,331,636.74
Investment gain（“-”for loss） 210,274,771.02 315,026,146.53
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 3,461,208.34 -1,796,914.44
Credit impairment loss -6,885,349.68 23,250,789.28
Impairment loss of assets 8,693,618.73 3,822,083.02
Assets disposal income
II. Operational profit（“-”for loss） 365,620,491.22 504,330,964.03
Add ：Non-operational income 40,010,824.18 113,583,451.32
Less：Non -operational expenses 719,961.66 81,045,992.06
III. Total profit(“-”for loss) 404,911,353.74 536,868,423.29
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Less：Income tax expenses 35,267,132.98 39,422,315.20
IV. Net profit 369,644,220.76 497,446,108.09
1.Net continuing operating profit 497,446,108.09
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 499,162,878.22 -39,285,967.26
（I）Other comprehensive income items that will not be reclassified
499,162,878.22 -39,285,967.26
into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net as
sets
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
499,162,878.22 -39,285,967.26
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
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
7.Other
VI. Total comprehensive income 868,807,098.98 458,160,140.83
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
The first half year of
Items The first half year of 2022
2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,097,233,724.19 2,313,126,129.59
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
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 21,326,964.77 7,589,047.84
Other cash received from business operation 40,264,529.14 32,482,142.11
Sub-total of cash inflow 2,158,825,218.10 2,353,197,319.54
Cash paid for purchasing of merchandise and services 1,204,523,128.29 1,323,869,966.90
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 521,746,808.63 511,550,958.75
Taxes paid 177,243,515.41 197,273,750.43
Other cash paid for business activities 90,433,942.48 152,176,425.03
Sub-total of cash outflow from business activities 1,993,947,394.81 2,184,871,101.11
Net cash generated from /used in operating activities 164,877,823.29 168,326,218.43
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 25,226,094.97 164,715,502.79
Net cash retrieved from disposal of fixed assets, intangible assets,
18,446.90 201,567.44
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received 1,370,000,000.00 2,945,372,000.00
Sub-total of cash inflow due to investment activities 1,395,244,541.87 3,110,289,070.23
Cash paid for construction of fixed assets, intangible assets and other
54,155,553.45 149,243,202.62
long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 912,000,000.00 3,080,572,000.00
Sub-total of cash outflow due to investment activities 966,155,553.45 3,229,815,202.62
Net cash flow generated by investment 429,088,988.42 -119,526,132.39
III.Cash flow generated by financing
Cash received as investment 560,000.00
Including: Cash received as investment from minor shareholders
Cash received as loans 134,300,000.00 177,800,000.00
Other financing –related cash received
Sub-total of cash inflow from financing activities 134,300,000.00 178,360,000.00
Cash to repay debts 187,300,000.00 181,000,000.00
Cash paid as dividend, profit, or interests 358,116,690.75 273,100,074.49
Including: Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities 122,994,569.96 177,712,675.91
Sub-total of cash outflow due to financing activities 668,411,260.71 631,812,750.40
Net cash flow generated by financing -534,111,260.71 -453,452,750.40
IV. Influence of exchange rate alternation on cash and cash
13,023,654.50 -3,243,235.00
equivalents
V.Net increase of cash and cash equivalents 72,879,205.50 -407,895,899.36
Add: balance of cash and cash equivalents at the beginning of term 1,467,538,968.07 1,850,354,648.10
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
VI ..Balance of cash and cash equivalents at the end of term 1,540,418,173.57 1,442,458,748.74
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
The first half year of
Items The first half year of 2022
2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 981,713,319.15 1,347,455,018.07
Tax returned 2,343,960.61 2,194,465.42
Other cash received from business operation 13,801,143.82 6,242,968.48
Sub-total of cash inflow 997,858,423.58 1,355,892,451.97
Cash paid for purchasing of merchandise and services 741,904,708.85 782,527,824.96
Cash paid to staffs or paid for staffs 303,082,621.53 292,113,266.18
Taxes paid 69,643,322.68 102,628,455.90
Other cash paid for business activities 11,840,392.70 44,154,055.08
Sub-total of cash outflow from business activities 1,126,471,045.76 1,221,423,602.12
Net cash generated from /used in operating activities -128,612,622.18 134,468,849.85
II. Cash flow generated by investing
Cash received from investment retrieving 0.00 0.00
Cash received as investment gains 115,030,229.74 315,030,313.20
Net cash retrieved from disposal of fixed assets, intangible assets,
0.00 0.00
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
0.00 0.00
units
Other investment-related cash received 1,143,000,000.00 2,147,572,000.00
Sub-total of cash inflow due to investment activities 1,258,030,229.74 2,462,602,313.20
Cash paid for construction of fixed assets, intangible assets and other
44,020,470.64 100,388,842.40
long-term assets
Cash paid as investment 100,000,000.00 207,460,000.00
Net cash received from subsidiaries and other operational units 0.00 0.00
Other cash paid for investment activities 620,000,000.00 2,147,572,000.00
Sub-total of cash outflow due to investment activities 764,020,470.64 2,455,420,842.40
Net cash flow generated by investment 494,009,759.10 7,181,470.80
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 50,000,000.00 100,000,000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 50,000,000.00 100,000,000.00
Cash to repay debts 100,000,000.00 100,000,000.00
Cash paid as dividend, profit, or interests 304,369,338.99 190,111,389.72
Other cash paid for financing activities 0.00
Sub-total of cash outflow due to financing activities 404,369,338.99 290,111,389.72
Net cash flow generated by financing -354,369,338.99 -190,111,389.72
IV. Influence of exchange rate alternation on cash and cash
12,193,353.57 -3,041,237.94
equivalents
V.Net increase of cash and cash equivalents 23,221,151.50 -51,502,307.01
Add: balance of cash and cash equivalents at the beginning of term 873,334,962.40 1,023,812,557.30
VI ..Balance of cash and cash equivalents at the end of term 896,556,113.90 972,310,250.29
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Jin Can
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Minor
Items Other Equity instrument Capita Less: Surplu Comm Total of
Share Other Speciali sharehold
l Shares s on risk Retaine Oth Subtota owners’
Capita Preferr
Oth Comprehen zed ers’
ed reserv in reserv provisi d profit er l equity
l Sustaina sive Income reserve equity
er es stock es on
stock ble debt
754,010,40 282,946,03 144,078,94 625,178,08 3,761,583,41 7,927,485,77 8,329,550,52
I.Balance at the end of last year 2,629,477,756.99 18,369,033.52 402,064,747.47
0.00 0.50 8.09 9.82 0.91 3.65 1.12
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common control
Other
754,010,40 282,946,03 144,078,94 625,178,08 3,761,583,41 7,927,485,77 8,329,550,52
II.Balance at the beginning of current year 2,629,477,756.99 18,369,033.52 402,064,747.47
0.00 0.50 8.09 9.82 0.91 3.65 1.12
-
226,169,58 27,983,671. 573,700,235. 569,470,861.
III.Changed in the current year 499,429,817.33 -494,123.20 179,388,709. -4,229,373.75
0.00 40 55 80
98
348,340,310. 847,770,127. 888,325,182.
（1）Total comprehensive income 499,429,817.33 40,555,054.77
01 34 11
（II）Investment or decreasing of capital 27,983,671. 27,983,671.4 27,983,671.4
by owners 40 0 0
1．Ordinary Shares invested by sharehold
ers
2．Holders of other equity instruments inv
ested capital
3．Amount of shares paid and accounted 27,983,671. 27,983,671.4 27,983,671.4
as owners’ equity 40 0 0
4．Other
- - -
（III）Profit allotment 301,559,439. 301,559,439. -44,326,370.00 345,885,809.
99 99 99
1.Providing of surplus reserves
2.Providing of common risk provisions
3．Allotment to the owners (or - - -44,326,370.00 -
12
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
shareholders) 301,559,439. 301,559,439. 345,885,809.
99 99 99
4．Other
-
226,169,58
(IV) Internal transferring of owners’ equity 226,169,580.
0.00
00
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or to
capital shares)
3．Making up losses by surplus reserves.
4.Change amount of defined benefit plans
that carry forward
Retained earnings
5．Other comprehensive income carry-
over retained earnings
-
226,169,58
6．Other 226,169,580.
0.00
00
(V). Special reserves -494,123.20 -494,123.20 -458,058.52 -952,181.72
1. Provided this year 1,393,028.84 1,393,028.84 23,388.07 1,416,416.91
- -
2．Used this term -1,887,152.04 -481,446.59
1,887,152.04 2,368,598.63
（VI）Other
980,179,98 310,929,70 144,078,94 625,178,08 3,582,194,70 8,501,186,00 8,899,021,38
IV. Balance at the end of this term 3,128,907,574.32 17,874,910.32 397,835,373.72
0.00 1.90 8.09 9.82 0.93 9.20 2.92
Amount in last year
In RMB
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Items Other Equity instrument Less: Surplu Comm Minor Total of
Capital Other Specializ shareholde owners’
Share Preferr Shares s on risk Retaine Oth Subtota
Oth reserve Comprehens ed rs’ equity equity
Capital ed Sustaina in reserve provisi d profit er l
er s ive Income reserve
stock ble debt stock s on
754,010,400 153,617,619 144,078,948 621,112,807 3,587,465,03 8,104,788,94 8,550,139,27
I.Balance at the end of last year 3,114,962,386.84 17,699,635.27 445,350,337.13
.00 .65 .09 .78 9.91 1.36 8.49
Add: Change of accounting policy
Correcting of previous errors
13
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
-
226,288,847 4,065,282.0 140,231,914.
Merger of entities under common control 869,345.59 172,106,637. 59,116,837.26 81,115,077.25
.27 4 51
64
Other
754,010,400 379,906,466 144,078,948 625,178,089 3,415,358,40 8,163,905,77 8,690,371,19
II.Balance at the beginning of current year 3,114,962,386.84 18,568,980.86 526,465,414.38
.00 .92 .09 .82 2.27 8.62 3.00
150,320,259. 110,854,541.8
III.Changed in the current year -39,022,242.47 -443,475.53 -41,736,054.79 69,118,487.01
80 0
336,184,909. 297,162,667. 328,957,435.
（1）Total comprehensive income -39,022,242.47 31,794,768.24
79 32 56
（II）Investment or decreasing of capital by
owners
320,000.00 320,000.00
1．Ordinary Shares invested by shareholders 320,000.00 320,000.00
2．Holders of other equity instruments inves
ted capital
3．Amount of shares paid and accounted as
owners’ equity
4．Other
- - -
（III）Profit allotment 185,864,649. 185,864,649. -73,430,370.00 259,295,019.
99 99 99
1.Providing of surplus reserves
2.Providing of common risk provisions
- - -
3．Allotment to the owners (or
shareholders)
185,864,649. 185,864,649. -73,430,370.00 259,295,019.
99 99 99
4．Other
(IV) Internal transferring of owners’ equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or to
capital shares)
3．Making up losses by surplus reserves.
4.Change amount of defined benefit plans
that carry forward
Retained earnings
5．Other comprehensive income carry-over
retained earnings
6．Other
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(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
（VI）Other
754,010,400 379,906,466 144,078,948 625,178,089 3,565,678,66 8,274,760,32 8,759,489,68
IV. Balance at the end of this term 3,075,940,144.37 18,125,505.33 484,729,359.59
.00 .92 .09 .82 2.07 0.42 0.01
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2022
Other Equity instrument
Items Less: Other Total of
Share Capital Specialized Surplus Retained
Preferred Shares Comprehensive Other owners’
capital Sustainable Other reserves reserve reserves profit
stock in stock Income equity
debt
I.Balance at the end of last year 754,010,400.00 121,457,098.65 144,078,948.09 2,630,313,185.77 6,000,000.00 602,356,402.65 3,493,193,115.19 7,463,251,254.17
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current year 754,010,400.00 121,457,098.65 144,078,948.09 2,630,313,185.77 6,000,000.00 602,356,402.65 3,493,193,115.19 7,463,251,254.17
III.Changed in the current year 226,169,580.00 27,983,671.40 499,162,878.22 -158,084,799.23 595,231,330.39
（I）Total comprehensive income 499,162,878.22 369,644,220.76 868,807,098.98
(II) Investment or decreasing of capital by owners 27,983,671.40 27,983,671.40
1．Ordinary Shares invested by shareholders
2．Holders of other equity instruments invested capital
3.Amount of shares paid and accounted as owners’ equity 27,983,671.40 27,983,671.40
4．Other
（III）Profit allotment -301,559,439.99 -301,559,439.99
1.Providing of surplus reserves
2．Allotment to the owners (or shareholders) -301,559,439.99 -301,559,439.99
3．Other
(IV) Internal transferring of owners’ equity 226,169,580.00 -226,169,580.00
1. Capitalizing of capital reserves (or to capital shares)
2. Capitalizing of surplus reserves (or to capital shares)
3．Making up losses by surplus reserves.
4.Change amount of defined benefit plans that carry
forward
Retained earnings
5．Other comprehensive income carry-over retained
earnings
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
6．Other 226,169,580.00 -226,169,580.00
(V) Special reserves
1. Provided this year 1,228,862.21 1,228,862.21
2．Used this term -1,228,862.21 -1,228,862.21
（VI）Other
IV. Balance at the end of this term 980,179,980.00 149,440,770.05 144,078,948.09 3,129,476,063.99 6,000,000.00 602,356,402.65 3,335,108,315.96 8,058,482,584.56
Amount in last year
In RMB
The first half year of 2021
Other Equity instrument
Items Less: Other Total of
Share Capital Specialized Surplus Retained
Preferred Shares Comprehensive Other owners’
capital Sustainable Other reserves reserve reserves profit
stock in stock Income equity
debt
I.Balance at the end of last year 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
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current year 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
III.Changed in the current year -39,285,967.26 -1,890.00 313,831,458.10 274,543,600.84
（I）Total comprehensive income -39,285,967.26 497,446,108.09 458,160,140.83
(II) Investment or decreasing of capital by owners
1．Ordinary Shares invested by shareholders
2．Holders of other equity instruments invested capital
3.Amount of shares paid and accounted as owners’ equity
4．Other
（III）Profit allotment -183,614,649.99 -183,614,649.99
1.Providing of surplus reserves
2．Allotment to the owners (or shareholders) -183,614,649.99 -183,614,649.99
3．Other
(IV) Internal transferring of owners’ equity
1. Capitalizing of capital reserves (or to capital shares)
2. Capitalizing of surplus reserves (or to capital shares)
3．Making up losses by surplus reserves.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
4.Change amount of defined benefit plans that carry forward
Retained earnings
5．Other comprehensive income carry-over retained earnings
6．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 this term 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
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
As of June 30, 2022, the Company included the following 18 subsidiaries in the scope of the
current consolidated financial statements.
No Names of subsidiaries included in the consolidated financial Abbreviation
statements of the current period
1 Hangzhou Steam Turbine Auxiliary Co., Ltd. Auxiliary Company
2 Zhongneng Steam Turbine Power Co., Ltd. Guoneng Company
3 Zhejiang Steam Turbine Packaged Technologies Co., Ltd., Packaged Technologies Co.
4 Hangzhou Steam Turbine Machinery & Equipment Co., Ltd Machinery Company
5 Zhyejiang Huayuan Steam Turbine Machinery Co., Ltd. Huayuan Company
6 Zhejiang Turbine Import & Export Co., Ltd. Turbine Company
7 Zhejiang Zhongrun Gas Turbine technology Co., Ltd. Zhongrun Company
8 Hangzhou Zhongneng Steam Turbine Power Co.,Ltd. Zhongneng Company
9 Hangzhou Zhongneng Steam Turbine Power（Indonesia）Co., Ltd. Indonesia Company
10 Hangzhou Hangfa Power Equipment Co., ltd. Hangfa Company
11 Hangzhou Steam Turbine Casing Co., ltd. Casing Company
12 Anhui Hangqi Casing Technology Co., Ltd. Anhui Casing Company
13 Hangzhou Steam Turbine New Energy Co., Ltd. New Energy Company
14 Hangzhou Steam Turbine Power Group Equipment Packaged Packaged Engineering Company
Engineering Co., Ltd.
15 Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. Sales Company
16 Hangzhou Steam Tubine Industry and Trade Co., ltd. Industry and Trade Company
17 China mechanical and Electrical Institute -HSTG (Hangzhou) United China Mechanical Institute Company
Institutes Co., Ltd
18 Zhejiang Ranchuang Turbine mechanical Co., Ltd. Ranchuang Company
IV. Basis of compiling the financial statement
(1) Basis of compiling
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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
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
20
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
1) 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.
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
21
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
2) 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
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.
3) 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
22
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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
23
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
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
24
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
scope of consolidated financial credit risk characteristics, other Refer to the historical credit loss experience,
statements receivables are combined combine the current situation with the forecast of
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.
Refer to the historical credit loss experience,
Taking aging as the credit risk combine the current situation and the forecast of
characteristic, combine receivables except the future economic situation, compile a
Accounts receivable-aging
the related party receivables within the comparison table between the aging of accounts
combination
scope of the consolidated financial receivable and the expected credit loss rate during
statements 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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(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.
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
17.Constract cost
18.Held-for-sale asset
19.Creditor's rights investment
20.Other Creditor's rights investment
21.Long-term account receivable
For details, please refer to Section X(5)-10 Financial instrument of this report.
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
Measurement cost method
Depreciation or amortization method
(1) Investment real estate includes leased land use rights, land use rights held and ready to be transferred
after appreciation, and leased buildings.
(2) Investment real estate is initially measured according to cost, followed by measurement by cost model,
and depreciated or amortized in the same way as fixed assets and intangible assets.
24. Fixed assets
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
Houses & buildings Straight average on period 20-40 4-5 4.8-2.35
Equipment & machinery Straight average on period 5-15 4-5 19.2-6.27
Transportation equipment Straight average on period 3-12 4-5 32-7.83
Office equipment Straight average on period 3-10 4-5 32-9.4
（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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
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
28. Oil-gas assets
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
50
Land using right
5-20
Patent
Non patent technology 10
Software 5-10
(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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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 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
33.Constract Liabilities
For details, please refer to Section X, V 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;
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(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.
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
(1) Types of share-based payment
Including equity-settled share-based payment and cash-settled share-based payment.
(2) Accounting treatment related to implementation, modification and termination of share-based payment
plan
1) Equity-settled share-based payment
Equity-settled share-based payment in exchange for employee services immediately after the grant, shall be
included in relevant costs or expenses according to the fair value of equity instruments on the grant date, and the
capital reserve shall be adjusted accordingly. For equity-settled share-based payment that can only be exchanged
for employee services if the service in the waiting period is completed or the specified performance conditions are
met, on each balance sheet date in the waiting period, based on the best estimation of the number of equity
instruments with the vesting right, the services obtained in the current period shall be included in relevant costs or
expenses according to the fair value of the equity instruments on the granting date, and the capital reserve shall be
adjusted accordingly.
Share-based payment for equity settlement of other parties' services, if the fair value of other parties'
services can be reliably measured, shall be measured according to the fair value of other parties' services on the
acquisition date; If the fair value of other parties' services cannot be measured reliably, but the fair value of equity
instruments can be measured reliably, it shall be measured according to the fair value of equity instruments on the
service acquisition date, and included in the related costs or expenses, and the owner's equity shall be increased
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
accordingly.
2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services immediately after the grant, shall be
included in relevant costs or expenses according to the fair value of liabilities borne by the Company on the grant
date, and liabilities shall be increased accordingly. For cash-settled share-based payment in exchange for
employee services only after the service in the waiting period is completed or the specified performance
conditions are met, on each balance sheet date in the waiting period, based on the best estimation of the situation
of the vesting right, the services obtained in the current period shall be included in the relevant costs or expenses
and corresponding liabilities according to the fair value of the liabilities assumed by the Company.
3) Modification and termination of the share-based payment plan
If the modification increases the fair value of the granted equity instruments, the Company shall
correspondingly recognize the increase of the obtained services according to the increase of the fair value of the
equity instruments; If the modification increases the number of equity instruments granted, the fair value of the
increased equity instruments will be recognized as the increase of services by the Company; If the Company
modifies the vesting conditions in a way that is beneficial to employees, the Company will consider the modified
vesting conditions when dealing with the vesting conditions.
If the modification reduces the fair value of the granted equity instruments, the Company will continue to
recognize the amount of services obtained based on the fair value of the equity instruments on the granting date,
without considering the reduction of the fair value of the equity instruments; If the modification reduces the
number of granted equity instruments, the Company will treat the reduced part as the cancellation of the granted
equity instruments; If the vesting conditions are modified in a way that is unfavorable to employees, the modified
vesting conditions will not be considered when dealing with the vesting conditions.
If the Company cancels the granted equity instruments or settles the granted equity instruments during the
waiting period (except those cancelled due to failure to meet the vesting right conditions), the cancellation or
settlement will be treated as accelerated vesting right, and the amount originally recognized during the remaining
waiting period will be immediately recognized.
38 . Other financial instruments such as preferred shares and perpetual capital securities
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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 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
1) Industrial steam turbine and other products sales business
The company's selling of steam turbines, Recreciprocating mechanical equipment and its accessories ,
auxiliary equipment, spare parts and other products and provide after-sales service.
Domestic sales revenue is recognized when the Company has delivered the product in accordance with the co
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
2) Hydro-generator set sales business and engineering service business (including EPC and other general
contracting projects)
The Company's business of selling hydro-generator sets and providing engineering services are the
performance obligations performed within a certain period of time. The performance progress is determined
according to the proportion of the incurred cost to the estimated total cost, and the revenue is recognized
according to the performance progress. When the performance progress cannot be reasonably recognized, if the
cost already incurred by the Company is expected to be compensated, the revenue will be recognized according to
the cost amount already incurred until the performance progress can be reasonably recognized.
The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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
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.
36
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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
37
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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.
38
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(2) Accounting Method for Financing Leases
43. Other significant accounting policies and estimates
(1)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.
（2）Accounting treatment methods related to repurchase of company shares
If the shares of the Company are acquired for reasons such as reducing the registered capital or rewarding
employees, they shall be treated as treasury shares according to the actual amount paid, and registered for future
reference. If the repurchased shares are cancelled, the difference between the total face value of the shares
calculated according to the face value of the cancelled shares and the number of cancelled shares and the amount
actually paid for the repurchase will be offset against the capital reserve; if the capital reserve is insufficient for
offset, the retained earnings will be offset; If rewarding of the repurchased shares to the employees of the
Company is equity-settled share-based payment, when the employees exercise their right to purchase the shares of
the Company and receive the price, the cost of the treasury stocks delivered to the employees and the accumulated
amount of capital reserves (other capital reserves) during the waiting period will be written off, and meanwhile,
the capital reserves (equity premium) will be adjusted according to such difference.
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable√ Not applicable
（2）Significant estimates changes
□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
VAT goods and taxable services calculated according to the provisions of the 13%，9%，6%
tax law. After deducting the input tax allowed to be deducted in the
39
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
current period, the difference is the VAT payable
For those on price basis, taxes are paid at 1.2% of the balance of
House tax original value of the property after deducting of 30%; for those on 1.2%，12%
rental basis, taxes are paid at 12% of the rental.
City maintenance and
Turnover tax payable 7%，5%
construction tax
Educational surcharge Turnover tax payable 3%
Local education
Turnover tax payable 2%
additional
Enterprise income tax Amount of income taxable 15%，20%，25%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company , Guoneng Company, Packaged Tech. Company,Huayuan
Company, ,Zhongneng Company ,Hangfa Company and Casting 15%
Company
Ranchuang Company, China mechanical and Electrical Institute -HSTG
20%
(Hangzhou) United Institutes Co., Ltd
Hangzhou Zhongneng Steam Turbine Power
(Indonesia) Co., Ltd. registered in Indonesia overseas
Indonesia Company. 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
Guoneng Company , Packaged Tech Company, Huayuan Company, Zhongneng Company and Hangfa. –
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 2022 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.
The current high-tech enterprise qualification review is in progress and has not yet been approved. Therefore,
from January to June 2022, the enterprise income tax shall be temporarily calculated and paid at the tax rate of
15%.
3).According to the Announcement on the Implementation of Preferential Income Tax Policies for Small and
Micro Enterprises and Individual Industrial and Commercial Households (No.12, 2021) issued by the Ministry of
Finance and the State Administration of Taxation, the preferential tax policies for small and low-profit
enterprises was applicable to subsidiary Ranchuang Turbine and China mechanical and Electrical Institute -
HSTG (Hangzhou) United Institutes Co., Ltd in January- June 2022. If the annual taxable income does not
exceed RMB 1 million, it would be included in the taxable income at a reduced rate of 12.5%, and the enterprise
income tax would be paid at the rate of 20%.
40
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
3.Other
VII. Notes to the Consolidated Financial Statements
1.Monetary funds
In RMB
Items End of term Beginning of term
Cash in stock 77,169.28 65,904.06
Bank deposit 1,540,276,071.21 1,467,327,722.30
Other monetary fund 80,147,512.67 155,489,621.43
Total 1,620,500,753.16 1,622,883,247.79
Incl: Total of accounts saved
8,343,113.87 7,989,643.89
overseas
Total amount of money limited to
80,082,579.59 155,344,279.72
use, such as mortgage, pledge or freeze
Other note
At the end of the period, other monetary funds included RMB 69,451,909.66 of deposit for bank acceptance
bills with limited use, RMB 10,630,669.93 of deposit for letter of guarantee, and RMB 64,933.08 of
unrestricted deposit interest that could be transferred at any time.
41
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
2. Transactional financial assets
In RMB
Items End of term Beginning of term
Classified as Financial assets measured at fair value
502,218,468.16 960,645,259.82
through profit or loss
Of which ：
Equity instrument investment 2,218,468.16 2,645,259.82
Financing product 500,000,000.00 958,000,000.00
Of which：
Total 502,218,468.16 960,645,259.82
Other note：
3. Derivative financial assets
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
Bank acceptance bill 79,519,419.78 179,088,740.17
Trade acceptance bill 78,043,676.53 35,958,200.92
Total 157,563,096.31 215,046,941.09
In RMB
End of term Beginning of term
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proportion( Proporti value Proportion( Proporti value
Amount Amount Amount Amount
%) on(%) %) on(%)
Of
which：
Accrual
of bad
debt 164,342, 6,779,56 157,563, 218,390, 3,343,29 215,046,
100.00% 4.13% 100.00% 1.53%
provisio 659.95 3.64 096.31 231.88 0.79 941.09
n by
portfolio
Of
which：
Bank
79,519,4 79,519,4 179,088, 179,088,
acceptan 48.39% 0.00 0.00% 82.00%
19.78 19.78 740.17 740.17
ce
Commer
cial 84,823,2 6,779,56 78,043,6 39,301,4 3,343,29 35,958,2
51.61% 7.99% 18.00% 8.51%
acceptan 40.17 3.64 76.53 91.71 0.79 00.92
ce
164,342, 6,779,56 157,563, 218,390, 3,343,29 215,046,
Total 100.00% 4.13% 100.00% 1.53%
659.95 3.64 096.31 231.88 0.79 941.09
Accrual of bad debt provision by portfolio: 6,779,563.64
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion(%)
Bank acceptance bill portfolio 79,519,419.78
Commercial acceptance bill
84,823,240.17 6,779,563.64 7.99%
portfolio
Total 164,342,659.95 6,779,563.64
Note：
42
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Commercial
acceptance bill 3,343,290.79 3,436,272.85 0.00 0.00 6,779,563.64
portfolio
Total 3,343,290.79 3,436,272.85 6,779,563.64
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（3）Notes receivable pledged by the company at the end of the period
In RMB
Items Amount
Commercial acceptance bill 19,532,735.62
Total 19,532,735.62
（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period and not
expired yet on the date of balance sheet
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance bill 67,275,684.30
Commercial acceptance 14,769,808.88
Total 67,275,684.30 14,769,808.88
（5）Accounts receivable financing transferred to accounts receivable by the Company at the end of the period
due to failure of the drawer to perform
（6） The actual write-off accounts receivable
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
End of term Beginning of term
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on % on % on % on %
Accrual
of bad
77,654,4 77,654,4 77,191,5 77,191,5
debt 2.65% 100.00% 2.53% 100.00%
04.31 04.31 65.71 65.71
provisio
n by
43
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
single
item
Includin
g：
Accrual
of bad
debt 2,848,66 975,136, 1,873,52 2,979,74 981,796, 1,997,95
97.35% 34.23% 97.47% 32.95%
provisio 2,910.98 096.31 6,814.67 6,652.43 531.73 0,120.70
n by
portfolio
Includin
g：
2,926,31 1,052,79 1,873,52 3,056,93 1,058,98 1,997,95
Total 100.00% 35.98% 100.00% 34.64%
7,315.29 0,500.62 6,814.67 8,218.14 8,097.44 0,120.70
Accrual of bad debt provision by single item： 77,654,404.31
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Not expected to
Xinjiang Altay Jinhao Iron Industry Co., Ltd 26,010,242.82 26,010,242.82 100.00%
be recovered
Hangzhou New Concept Energy Saving Not expected to
11,552,855.00 11,552,855.00 100.00%
Technology Co., Ltd be recovered
Not expected to
Dezhou Jinghua Group Zhenhua Co., Ltd. 10,980,000.00 10,980,000.00 100.00%
be recovered
Qingdao Jieneng Steam Turbine Group Co., Not expected to
9,456,241.35 9,456,241.35 100.00%
Ltd. be recovered
Not expected to
Qingdong Jieneng Material Trade Co., Ltd. 6,534,000.00 6,534,000.00 100.00%
be recovered
Qingdao Jieneng Steam Turbine Co., Not expected to
5,287,000.00 5,287,000.00 100.00%
Ltd.Hangzhou Company be recovered
Sinosteel Tiancheng Environmental Not expected to
2,459,550.00 2,459,550.00 100.00%
Protection Science & Technology Co., Ltd. be recovered
Minhe Jinxing Hydropower Development Not expected to
1,468,751.96 1,468,751.96 100.00%
Co., Ltd. be recovered
Diebu Axia Hydropower Development Co., Not expected to
1,132,000.00 1,132,000.00 100.00%
Ltd. be recovered
Weifang Leinuote Power Equipment Co., Not expected to
59,955.00 59,955.00 100.00%
Ltd. be recovered
Not expected to
DabiOleo 2,713,808.18 2,713,808.18 100.00%
be recovered
Total 77,654,404.31 77,654,404.31
Accrual of bad debt provision by portfolio: 975,136,096.31
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Accrual of bad debt provision
2,848,662,910.98 975,136,096.31 34.23%
by portfolio
Total 2,848,662,910.98 975,136,096.31
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） 871,516,967.39
44
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
1-2 years 707,523,338.47
2-3 years 407,724,736.22
Over 3 years 939,552,273.21
3-4 years 226,711,181.37
4-5 years 163,610,498.96
Over 5 years 549,230,592.88
Total 2,926,317,315.29
(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
Accrual of bad
debt provision 77,191,565.71 462,838.60 77,654,404.31
by single item
Accrual of bad
debt provision 981,796,531.73 -6,660,435.42 975,136,096.31
by portfolio
Total 1,058,988,097.44 -6,197,596.82 1,052,790,500.62
(3) The actual write-off accounts receivable
（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Client 1 1,047,935,350.35 35.81% 254,125,217.56
Client 2 228,866,892.89 7.82% 109,485,531.33
Client 3 191,422,613.74 6.54% 30,231,192.31
Client 4 90,386,682.40 3.09% 29,687,768.24
Client 5 41,061,527.27 1.40% 27,960,972.45
Total 1,599,673,066.65 54.66%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other note：
6. Financing of receivables
In RMB
Items End of term Beginning of term
Bank acceptance 673,529,205.97 816,653,211.21
Total 673,529,205.97 816,653,211.21
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:
45
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
□ Applicable √ Not applicable
Other note：
(1) Notes receivable pledged by the Company at the end of the period.
In RMB
Items Pledged amount
Bank acceptance 85,446,533.12
Total 85,446,533.12
(2) 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
Items Amount of recognition termination at the period-end
Bank acceptance 348,402,129.17
Subtotal 348,402,129.17
The acceptor of the bank acceptance bill is a commercial bank, because the commercial bank has high
credit, the possibility of the bank acceptance bill not being paid at maturity is low, so the company has endorsed
or discounted the bank acceptance bill to terminate the confirmation. However, if the bill is not paid at maturity,
the company shall remain jointly and severally liable to the holder under the provisions of the bill act.
7. Prepayments
（1）Age analysis
In RMB
End of term Beginning of term
Age
Book balance Proportion(%) Book balance Proportion(%)
Within 1 year 316,092,674.29 76.36% 402,228,171.12 90.64%
1-2 years 84,398,934.13 20.39% 16,849,046.80 3.80%
2-3 years 1,173,266.32 0.28% 3,119,651.33 0.70%
Over 3 years 12,288,398.07 2.97% 21,573,565.66 4.86%
Total 413,953,272.81 443,770,434.91
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
In RMB
Name Amount
Proportion(%)
China Union Engineering Co., Ltd. 86,985,412.00 21.01%
Siemens Energy Industrial Turbo machinery Ltd 62,116,873.91 15.01%
Siemens Industrial Turbine machinery AB 60,168,632.93 14.54%
Siemens Energy Co., Ltd. 54,002,950.00 13.05%
Xizi Clean Energy Equipment Manufacturing Co., Ltd. 30,060,000.00 7.26%
Subtotal 293,333,868.84 70.87%
Other note：
8. Other account receivable
46
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
In RMB
Nature Closing balance Opening balance
Dividend receivable 95,156,322.10
Other 28,682,882.37 44,163,396.56
Total 123,839,204.47 44,163,396.56
（1）Interest receivable
1）Classification of interest receivable
2）Significant overdue interest
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
2）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 95,156,322.10
Total 95,156,322.10
2) Significant dividend receivable aged over 1 year
3）Bad-debt provision
□ Applicable √ Not applicable
（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
43,891,273.92 60,464,968.77
portfolio:
Total 43,891,273.92 60,464,968.77
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit losses Expected credit loss
Bad Debt Reserves for the entire duration Total
over the next 12 over life (no credit
(credit impairment
months impairment)
occurred)
Balance as at January
1,795,961.52 963,314.31 13,542,296.38 16,301,572.21
1, 2022
Balance as at January
1, 2022 in current
47
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
——Transfer to stage
-82,609.15 82,609.15 0.00 0.00
II
——Transfer to stage
0.00 -309,943.67 309,943.67 0.00
III
Provision in the current
-1,188,985.86 460,291.05 -364,485.85 -1,093,180.66
period
Balance as at June 30,
524,366.51 1,196,270.84 13,487,754.20 15,208,391.55
2022
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） 20,371,434.45
1-2 years 8,593,728.27
2-3 years 1,655,550.87
Over 3 years 13,270,560.33
3-4 years 909,934.00
4-5 years 364,024.99
Over 5 years 11,996,601.34
Total 43,891,273.92
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
Category Opening balance Reversed or Closing balance
Accrual collected Write-off Other
amount
Accrual of bad
debt provision 16,301,572.21 -1,093,180.66 15,208,391.55
by portfolio:
Total 16,301,572.21 -1,093,180.66 0.00 0.00 0.00 15,208,391.55
4) The actual write-off accounts receivable
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 balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
Over 5
Shanghai Customs Deposit 3,710,320.94 8.45% 3,710,320.94
years
Wuhan Huazhong Automatic Temporary Over 5
2,331,000.00 5.31% 2,331,000.00
Control Technology Development payment years
48
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Co., Ltd receivable
Shandong Chenming Paper Within 1
Deposit 1,200,000.00 2.73% 60,000.00
Holdings Limited year
Current Within 1
Hangzhou Ganghua Gas Co., Ltd. 900,000.00 2.05% 45,000.00
account year
Hangzhou Xiangjiang Technology
Deposit 601,384.98 1-2 years 1.37% 60,138.50
Co., Ltd.
Total 8,742,705.92 19.91% 6,206,459.44
6) Accounts receivable involved with government subsidies
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Other note：
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
767,894,003.61 107,518,112.95 660,375,890.66 1,292,125,192.43 107,518,112.95 1,184,607,079.48
materials
Goods in
836,057,754.73 62,010,483.80 774,047,270.93 871,173,637.50 62,010,483.80 809,163,153.70
progress
Stock
1,090,675,084.52 134,050,502.18 956,624,582.34 1,189,125,044.23 141,251,530.06 1,047,873,514.17
goods
Total 2,694,626,842.86 303,579,098.93 2,391,047,743.93 3,352,423,874.16 310,780,126.81 3,041,643,747.35
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Reverse or Reverse or Closing balance
Withdrawal Other
write-off write-off
Raw materials 107,518,112.95 107,518,112.95
Goods in
62,010,483.80 62,010,483.80
progress
Stock goods 141,251,530.06 5,958,780.38 13,159,808.26 134,050,502.18
Total 310,780,126.81 5,958,780.38 0.00 13,159,808.26 0.00 303,579,098.93
The specific basis for determining the net realizable value, and the reasons for reversing or reselling the
inventory depreciation reserve in the current period
Items Current write-off Reason for provision for
Specific basis for determining net realizable value
inventory
The net realizable value shall be recognized by the amount of the
Raw materials estimated selling prices minus the estimated selling costs and relevant Used for current production and use and
taxes and dues sales realization
Goods in process The net realizable value shall be recognized by the amount of the Current realized sales
49
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
and commodity estimated selling prices minus the estimated selling costs and relevant
stocks taxes and dues, wherein regarding suspended projects expected not be to
be recovered or projects whose sales agreements are released, the net
realizable value shall be recognized by the expected recoverable
compensation
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
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
874,849,984.99 70,240,921.26 804,609,063.73 564,548,403.36 53,513,171.70 511,035,231.66
guarantee
The
construction
40,189,755.35 2,430,002.77 37,759,752.58 79,560,175.93 7,568,757.60 71,991,418.33
contract forms
the assets
Total 915,039,740.34 72,670,924.03 842,368,816.31 644,108,579.29 61,081,929.30 583,026,649.99
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 contract assets 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
Accrual by portfolio 11,588,994.73 According to the age
Total 11,588,994.73 0.00 0.00 ——
Other note
1) Contract assets with single provision for impairment at the end of the period
None
2) Contract assets with impairment provision in combination
Items End of term
Book balance Impairment provision Accrual proportion (%)
Aging
915,039,740.34 72,670,924.03 7.94%
portfolio
Subtotal 915,039,740.34 72,670,924.03 7.94%
11. Assets divided as held-to-sold
12. Non-current assets due within 1 year
13. Other current assets
In RMB
50
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Items End of term Beginning of term
Input tax deductible 3,483,483.05 34,506,442.84
Prepaid income tax 10,452,531.37 30,524,440.80
Rent charge 1,144,067.78
Profit and loss of property to be handled 512,484.67
Total 14,448,499.09 66,174,951.42
Other note：
14.Creditor's right investment
15.Other creditor's rights investment
16. Long-term accounts receivable
(1) List of long-term accounts receivable
In RMB
Closing balance Opening balance
Provision for Provision for Discount
Items inventory inventory rate
Book balance Book value Book balance Book value
interval
impairment impairment
Project
154,022,203.37 40,481,110.17 113,541,093.20 205,022,203.37 51,281,110.17 153,741,093.20
item
Total 154,022,203.37 40,481,110.17 113,541,093.20 205,022,203.37 51,281,110.17 153,741,093.20
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term
accounts receivable
Changes in bad debt reserves
In RMB
Increased amount Decreased amount
Items Opening balance write- Closing balance
Withdraw recover Other Switch back Other
off
Accrual by single item 44,760,000.00 9,000,000.00 35,760,000.00
Accrual by portfolio 6,521,110.17 1,800,000.00 4,721,110.17
Total 51,281,110.17 10,800,000.00 40,481,110.17
Other note：
17. Long-term equity investment
18.Other non-current Financing assets
In RMB
Items End of term Beginning of term
51
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Hangzhou Bank 4,072,690,585.88 3,485,440,140.92
Total 4,072,690,585.88 3,485,440,140.92
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for
Amount of other Reasons for being
other
Recognized comprehensive measured at fair value and
Accumulating Accumulating comprehensive
Name dividend income whose changes are
profit profit income
income transferred to included in other
transferred to
retained earnings comprehensive income
retained earnings
The stocks of Hangzhou
Bank Co., Ltd. held by the
company cannot pass the
contract cash flow
characteristic test, but the
company does not hold
Hangzhou
95,156,322.10 the equity instrument for
Bank
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.
Other note：
19.Other non-current Financing assets
In RMB
Items End of term Beginning of term
Classified as financial assets measured by fair value and whose
18,680,533.96 14,792,533.96
changes are included in the current profit and loss
Total 18,680,533.96 14,792,533.96
Other note：
Increase /decrease
Increase /decrease Other
Investees Opening balance Additional Decrease in comprehensive
investment investment Additional adjustment to
investment revenue
Actions Xinxing No.9 Private Equity
9,120,000.00 3,888,000.00
Fund
GreenesolpowersystemsPVTLtd. 5,534,773.22
Heilongjiang Multi-Power Hydropower
137,760.74
Development United Company
Total 14,792,533.96 0.00 0.00 3,888,000.00 0.00
(Continued)
Increase /decrease Closing
balance of
Investees Other equity Closing balance
Other impairment
changes provision
Actions Xinxing No.9 Private Equity
13,008,000.00
Fund
GreenesolpowersystemsPVTLtd. 5,534,773.22
52
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Heilongjiang Multi-Power
Hydropower Development United 137,760.74
Company
Total 0.00 0.00 0.00 0.00 18,680,533.96 0.00
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Construction in
Items House, Building Land use right Total
process
I. Original price
1. Balance at period-beginning 10,169,000.55 10,169,000.55
2.Increase in the current period
(1) Purchase
（2）Inventory \ fixed assets \ project under
construction transfer
(3)Increased of Enterprise Combination
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 10,169,000.55 0.00 0.00 10,169,000.55
II.Accumulated amortization
1.Opening balance 3,265,014.48 3,265,014.48
2.Increased amount of the period 226,253.76 226,253.76
(1) Withdrawal 226,253.76 226,253.76
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 3,491,268.24 0.00 0.00 3,491,268.24
III. Impairment provision
1. Balance at period-beginning
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV. Book value
1.Book value at period -end 6,677,732.31 6,677,732.31
2.Book value at period-beginning 6,903,986.07 6,903,986.07
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
53
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(3) Investment real estate without certificate of ownership
(4) Other note
At the end of the this period, the book value of the investment real estate was RMB6663744.95, which was due
to the housing reform to resettlement house: that is, when the family dormitory area of the subsidiary Hangfa
Company was demolished and renovated in 2011, part of the resettlement area could not be renovated because
some residents had received housing subsidies, enjoyed affordable housing, participated in the housing reform
in other places, failed to submit the housing reform information in time, etc., and the property rights belonged to
the Company.
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 1,902,319,122.21 1,658,423,191.83
Total 1,902,319,122.21 1,658,423,191.83
(1) List of fixed assets
In RMB
Houses & Machinery Transportation Other
Items Total
buildings equipment s equipment
I. Original price
1.Opening balance 1,272,821,651.0 1,185,284,037.7 142,381,639.8
35,630,594.79 2,636,117,923.37
3 5 0
2.Increased amount of the period 284,231,219.25 18,126,993.73 633,068.05 2,405,716.31 305,396,997.34
(1) Purchase 233,144.04 649,367.17 0.00 1,486,356.17 2,368,867.38
(2) Transferred from construction in progres
s 283,998,075.21 17,477,626.56 633,068.05 919,360.14 303,028,129.96
(3)Increased of Enterprise Combination
3.Decreased amount of the period 0.00 2,602,669.42 1,348,199.00 2,686,756.47 6,637,624.89
（1）Disposal 0.00 2,602,669.42 1,348,199.00 2,686,756.47 6,637,624.89
1,557,052,870.2 1,200,808,362.0 142,100,599.6 2,934,877,295.8
4. Balance at period-end 34,915,463.84
8 6 4 2
II. Accumulated depreciation
1.Opening balance 166,994,903.91 735,011,582.39 26,282,937.95 37,140,970.93 965,430,395.18
2.Increased amount of the period 19,828,112.78 38,525,915.92 573,922.02 2,143,311.25 61,071,261.97
(1) Withdrawal 19,828,112.78 38,525,915.92 573,922.02 2,143,311.25 61,071,261.97
3.Decreased amount of the period 0.00 2,451,008.86 1,283,910.50 2,472,900.54 6,207,819.90
（1）Disposal 0.00 2,451,008.86 1,283,910.50 2,472,900.54 6,207,819.90
1,020,293,837.2
4.Closing balance 186,823,016.69 771,086,489.45 25,572,949.47 36,811,381.64
5
III. Impairment provision
1.Opening balance 9,028,267.09 3,235,354.11 715.16 12,264,336.36
2.Increase in the reporting period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
54
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
4. Closing balance 9,028,267.09 3,235,354.11 0.00 715.16 12,264,336.36
IV. Book value
1,361,201,586.5 105,288,502.8 1,902,319,122.2
1.Book value of the period-end 426,486,518.50 9,342,514.37
0 4 1
1,096,798,480.0 105,239,953.7 1,658,423,191.8
2.Book value of the period-begin 447,037,101.25 9,347,656.84
3 1 3
(2) Fixed assets temporarily idled
⑶Fixed assets leased out through operating leases
（4）Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Steam Turbine Heavy Industry Plant -Complete In process
155,518,895.77
sets of factory
Steam Turbine Heavy Industry Plant -Jingzi Large In process
129,286,565.30
Workshop
Steam Turbine Heavy Industry Plant -Rotor In process
98,224,226.43
workshop
Steam Turbine Heavy Industry Plant -Small and In process
91,902,498.22
Medium Welding Heat Treatment Workshop
Steam Turbine Heavy Industry Plant -Complete In process
49,690,091.14
Plant
Steam Turbine Heavy Industry Plant -Distribution In process
48,663,742.48
Centre
Steam Turbine Heavy Industry Plant -Canteen and In process
22,719,314.46
Staff Activity Centre
Steam Turbine Heavy Industry Plant -Joint station 12,250,078.84 In process
Steam Turbine Heavy Industry Plant- Integrated In process
160,001,399.88
Technology Office Building
Institute Yaju community 4,923,533.49 In process
Other 68,664.80 In process
Subtotal 773,249,010.81
Other note
（5）Liquidation of fixed assets
22. Construction in progress
In RMB
Items End of term Beginning of term
Construction in progress 292,774,103.05 517,835,956.11
Total 292,774,103.05 517,835,956.11
(1) List of construction in progress
In RMB
End of term Beginning of term
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
55
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
New Plant
199,994,810.88 199,994,810.88 493,629,477.17 493,629,477.17
project
Software
14,514,179.94 14,514,179.94 11,327,261.17 11,327,261.17
project
Other
35,844,605.97 35,844,605.97 9,356,085.45 9,356,085.45
project
Prepayment
for
42,420,506.26 42,420,506.26 3,523,132.32 3,523,132.32
equipment
or projects
Total 292,774,103.05 292,774,103.05 517,835,956.11 517,835,956.11
(2)Changes of significant construction in progress
In RMB
Includ
ing Cap
g: itali
Capita
capital z Sour
Name Budge Projec liz
Transferred iz atio ce
of (RMB Opening Other End Proporti t ation
Increase to fixed ation n of of
projec '0,000) balance decrease balance on % proces of
assets of inter fund
t s interes
interes est ing
t
t rate
this (%)
period
New
Under
Plant 493,629, 309,238,415 199,994,8 Othe
173,328.76 15,603,749.15 0.00 96.77% constr
projec 477.17 .44 10.88 r
uction
t
Softw
are 11,327,26 14,514,17 Othe
3,186,918.77 0.00 0.00
projec 1.17 9.94 r
t
Other
9,356,08 16,995,301. 35,844,60 Othe
projec 43,483,821.58 0.00
5.45 06 5.97 r
t
Prepa
yment
for
equip 3,523,13 42,420,50 Othe
39,739,498.00 842,124.06 0.00
ment 2.32 6.26 r
or
projec
ts
517,835, 102,013,987.5 327,075,840 292,774,1
Total 173,328.76 0.00
956.11 0 .56 03.05
(3) List of the withdrawal of the impairment provision of the construction in progress
（4）Engineering material
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
56
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
In RMB
Items House and Building Total
I. Original price
1.Opening balance 38,107,952.73 38,107,952.73
2.Increased amount of the period
3.Decreased amount of the period
4. Balance at period-end 38,107,952.73 38,107,952.73
II. Accumulated depreciation
1.Opening balance 7,670,173.81 7,670,173.81
2.Increased amount of the period 3,994,249.19 3,994,249.19
(1) Withdrawal 3,994,249.19 3,994,249.19
3.Decreased amount of the period
（1）Disposal
4.Closing balance 11,664,423.00 11,664,423.00
III. Impairment provision
1.Opening balance
2.Increase in the reporting period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
4. Closing balance
IV. Book value
1.Book value of the period-end 26,443,529.73 26,443,529.73
2.Book value of the period-begin 30,437,778.92 30,437,778.92
Other note：
26. Intangible assets
(1) Information
In RMB
Non patent
Items Land using right Patent Software Total
technology
I. Original price
1. Balance at period-beginning 324,343,159.25 344,087.43 8,000,000.00 17,789,263.58 350,476,510.26
2.Increase in the current period 0.00 0.00 0.00 657,415.92 657,415.92
(1) Purchase 657,415.92 657,415.92
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
57
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
4.Closing balance 324,343,159.25 344,087.43 8,000,000.00 18,446,679.50 351,133,926.18
II.Accumulated amortization
1.Opening balance 60,801,350.97 276,219.94 5,266,666.91 6,662,565.20 73,006,803.02
2.Increased amount of the
3,252,243.38 3,754.32 400,000.02 910,751.38 4,566,749.10
period
(1) Withdrawal 3,252,243.38 3,754.32 400,000.02 910,751.38 4,566,749.10
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 64,053,594.35 279,974.26 5,666,666.93 7,573,316.58 77,573,552.12
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 260,289,564.90 64,113.17 2,333,333.07 10,873,362.92 273,560,374.06
2.Opening book value 263,541,808.28 67,867.49 2,733,333.09 11,126,698.38 277,469,707.24
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
27. .Development expenses
In RMB
Increase in this period Decrease in this period
Balance in Recognized Transfer to Balance in
Items Internal
year-begin as current
development Other year-end
intangible profit and
expenditure
assets loss
Gas turbine
0.00 8,826,283.85 8,826,283.85
development
Total 0.00 8,826,283.85 0.00 0.00 0.00 0.00 0.00 8,826,283.85
Other note
28. Goodwill
(1) Original book value of goodwill
（2）Impairment of goodwill
29. Long term amortize expenses
30. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
58
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Balance in year-end Balance in year-begin
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for Asset
1,344,990,876.14 213,786,444.13 1,356,205,463.61 215,697,910.21
Impairment
Internal trade profit not
58,598,289.97 8,789,743.49 58,598,289.97 8,789,743.49
realized
Revenue from changes
in fair value generated
by financial assets 3,642,751.64 546,412.75 7,103,959.98 1,065,594.00
classified at fair value
through profit or loss
Temporary difference
such as amortizing of 99,651.17 14,947.68 99,651.17 14,947.68
software expense
Relocation
1,031,462,607.09 155,620,363.70 1,041,307,329.87 157,097,084.29
compensation
Total 2,438,794,176.01 378,757,911.75 2,463,314,694.60 382,665,279.67
(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 in other 3,681,736,545.88 552,260,481.88 3,094,486,100.92 464,172,915.14
equity instruments
Total 3,681,736,545.88 552,260,481.88 3,094,486,100.92 464,172,915.14
（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Temporarily
Deferred Income Tax Temporarily Deferred Income Tax
Deductable or Taxable
Assets or Liabilities at Deductable or Taxable Assets or Liabilities at
Items Difference at the
the End of Report Difference at the End the Beginning of
Beginning of Report
Period of Report Period Report Period
Period
Deferred income tax
378,757,911.75 382,665,279.67
assets
Deferred income tax
552,260,481.88 464,172,915.14
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible temporary difference 118,277,591.82 157,834,999.47
Deductible loss
159,936,130.06 166,619,930.21
Total 278,213,721.88 324,454,929.68
(5) The un-recognized deductible losses of deferred income tax assets will due in the following years:
In RMB
59
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Year Balance in year-end Balance in year-begin Remark
2022 3,921,743.37 10,928,264.99
2023 14,149,816.48 14,149,816.48
2024 23,524,220.73 23,524,220.73
2025 2,773,270.33 2,773,270.33
2026 43,732,679.01 44,870,965.65
2027 1,087,532.18 1,036,145.13
2028 1,545,297.07 1,545,297.07
2029 6,667,497.15 6,802,845.68
2030 3,914,057.03 3,914,057.03
2031 57,075,047.12 57,075,047.12
2032 1,544,969.59
Total 159,936,130.06 166,619,930.21
Other note
31 .Other non-current assets
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items
End of term Beginning of term
Mortgage Borrowings 75,800,000.00 74,897,015.73
Guarantee Borrowing 60,000,000.00 170,163,630.75
Credit borrowing 55,500,000.00 5,005,273.97
Total 191,300,000.00 250,065,920.45
(2) List of the short-term borrowings overdue but not return
33. Transactional financial liabilities
34. Derivative financial liability
35.Notes payable
In RMB
Items
End of term Beginning of term
Commercial acceptance bill 7,500,000.00
Bank acceptance bill 320,332,010.57 301,904,319.27
Total 320,332,010.57 309,404,319.27
The total amount of outstanding notes payable at the end of this period is RMB .
36. Accounts payable
(1) List of accounts payable
In RMB
Items
End of term Beginning of term
Goods 1,511,417,996.10 1,709,868,854.24
Equipment and Engineering 72,692,079.33 186,363,724.44
Other 1,148,724.87 13,917,609.46
Total 1,585,258,800.30 1,910,150,188.14
60
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(2) Notes of the accounts payable aging over one year
37. Advances received
(1) List of Advances received
In RMB
Items
End of term Beginning of term
Rent 43,034.40 812,701.37
Total 43,034.40 812,701.37
(2) Notes of the accounts payable aging over one year
38.Contract liabilities
In RMB
Items
End of term Beginning of term
Goods 2,415,706,673.37 3,052,515,293.06
Total 2,415,706,673.37 3,052,515,293.06
Amount and reasons for the significant change in the book value during the reporting period
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short-term
99,276,656.74 430,652,044.23 444,486,323.20 85,442,377.77
compensation
II.Post-
employment benefits -
33,845,853.18 65,984,229.42 73,532,086.75 26,297,995.85
defined contribution pl
ans
III. Dismissal benefits 232,949.00 232,949.00 0.00
Total 133,122,509.92 496,869,222.65 518,251,358.95 111,740,373.62
（2）Short-term remuneration
In RMB
Balance in year- Increase in this period Decrease in this Balance in year-end
Items
begin period
(1) Salary, bonus, allowance
82,689,765.59 330,840,031.47 349,857,710.25 63,672,086.81
and subsidy
(2) Employee benefits 22,314,189.25 21,086,257.79 1,227,931.46
(3) Social insurance expenses 8,702,497.23 31,924,402.44 29,439,289.04 11,187,610.63
Including: medical insurance
8,556,657.77 30,877,740.44 28,798,858.77 10,635,539.44
premium
Work-related injury insurance
145,839.46 1,046,662.00 640,430.27 552,071.19
premium
Maternity insurance premium 0.00 0.00 0.00
(4) Housing fund 458,552.96 36,460,066.00 36,466,294.00 452,324.96
(5) Labor union expenditures
and employee education 7,425,840.96 9,113,355.07 7,636,772.12 8,902,423.91
expenses
6. Short-term paid absence 0.00 0.00 0.00 0.00
61
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
7. Short-term profit-sharing
0.00 0.00 0.00 0.00
plan
Total 99,276,656.74 430,652,044.23 444,486,323.20 85,442,377.77
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
1.Basic pension
7,365,213.63 46,459,594.76 43,164,544.13 10,660,264.26
insurance
2. Unemployment
263,041.82 1,830,619.66 1,456,506.62 637,154.86
insurance
3. Enterprise annual fee 26,217,597.73 17,694,015.00 28,911,036.00 15,000,576.73
Total 33,845,853.18 65,984,229.42 73,532,086.75 26,297,995.85
Other note：
40. Taxes Payable
In RMB
Items Closing balance Opening balance
VAT 33,756,129.88 40,924,370.15
Enterprise Income tax 20,986,884.48 17,886,118.76
Individual Income tax 741,229.20 2,870,186.04
City Construction tax 2,563,963.52 5,687,507.47
Property tax 1,886,100.28 7,532,910.03
Land use tax 98,643.50 1,912,650.90
Education subjoin 1,159,881.32 2,485,447.07
Locality Education subjoin 773,254.22 1,666,388.01
Other 211,241.44 656,799.67
Total 62,177,327.84 81,622,378.10
Other note
41.Other account payable
In RMB
Items End of term Beginning of term
Interest payable 87,003.63
Other account payable 308,783,808.18 434,578,338.13
Total 308,870,811.81 434,578,338.13
（1) Interest payable
In RMB
Items End of term Beginning of term
Advance the bank loan interest 87,003.63 0.00
Total 87,003.63
Particulars of significant overdue unpaid interest：
(2) Dividends payable
(3) Other accounts payable
1) Other accounts payable listed by nature of the account
In RMB
62
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Items End of term Beginning of term
Deposit 7,349,250.43 7,710,407.05
Provisional account payable 67,589,412.31 73,387,357.24
Related party demolition loan 118,208,200.00 240,000,000.00
Restricted stock subscription funds 110,282,142.86 110,195,995.86
Other 5,354,802.58 3,284,577.98
Total 308,783,808.18 434,578,338.13
2）Significant other payables for over 1 year
42. Liabilities classified as holding for sale
43. Non-current liabilities due within 1 year
In RMB
Items End of term Beginning of term
Long-term loans due within 1 year 10,010,266.67 9,011,464.45
Lease liabilities due within 1 year 6,086,378.91 8,596,258.52
Total 16,096,645.58 17,607,722.97
Other note：
44. Other current liabilities
In RMB
Items End of term Beginning of term
Output tax to be transferred 311,626,160.87 394,535,629.47
Maintenance and renovation costs 1,105,000.00 1,105,000.00
Total 312,731,160.87 395,640,629.47
Changes on short term bonds payable:
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items End of term Beginning of term
Mortgage loan 30,600,000.00 20,624,674.22
Guarantee loan 154,705,333.33 160,205,333.33
Total 185,305,333.33 180,830,007.55
Note：
Other notes，including interest rate range：
63
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
46. Bonds payable
(1) Bonds payable
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
Other note
47. Lease liability
In RMB
Items End of term Beginning of term
Unpaid lease payments 22,781,891.26 24,310,879.76
Financing charges are not recognized -1,637,948.43 -1,735,124.99
Total 21,143,942.83 22,575,754.77
Other note：
48. Long-term payable
In RMB
Items End of term Beginning of term
Long term account payable 330,000.00 330,000.00
Special Payable 12,159,403.06 7,249,677.56
Total 12,489,403.06 7,579,677.56
(1) Long-term payable listed by nature of the account
In RMB
Items End of term Beginning of term
Drawing in administrative restructuring 330,000.00 330,000.00
Subtotal 330,000.00 330,000.00
Other note：
(2) Special Payable
In RMB
Items Opening balance Increase Decrease End balance Reason
Compensation for
2,040,646.71 0.00 0.00 2,040,646.71
relocation
Funding for
3,185,102.53 6,350,800.00 1,441,074.50 8,094,828.03
Personnel Training
Resettlement 2,023,928.32 0.00 0.00 2,023,928.32
Total 7,249,677.56 6,350,800.00 1,441,074.50 12,159,403.06
Other note：
64
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
①The compensation for requisition was mainly the compensation for the relocation of the Shiqiao Plant of
the subsidiary Machinery Company.
②Resettlement payment mainly refers to the compensation and resettlement transition fee saved during the
demolition and housing reform of the family dormitory area of the subsidiary, Hangfa Company.
49. Long term payroll payable
(1) List of long term payroll payable
(2) Changes of defined benefit plans
50. Estimated liabilities
51. Deferred income
In RMB
Increased this Decreased this
Items Beginning of term End of term Reason
period period
Receive
Government
729,438,751.74 68,000.00 16,716,989.24 712,789,762.50 government
Subsidy
subsidies
Total 729,438,751.74 68,000.00 16,716,989.24 712,789,762.50 --
Items involved in government subsidies:：
In RMB
Amount of newly Amount accrued Related to the
Items Opening balance Other changes Closing balance
subsidy in non-business assets/income
Other note:
52. Other non-current liabilities
53. Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Year- Issuing Transferred Balance year-end
beginning of new Bonus shares from Other Subtotal
share reserves
Total of
capital 754,010,400.00 226,169,580.00 226,169,580.00 980,179,980.00
shares
Other note：
The Company's 2021 equity distribution plan reviewed and approved by the general meeting of shareholders 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, s, the Company would distribute cash
dividend to all the shareholders at the rate of CNY 4.0 for every 10 shares（including tax）, 3 bonus shares
（including tax），and no reserve would be converted into share capital. The treasury shares repurchased by
the Company shall not participate in profit distribution. The total share capital of the Company before the
dividend was 754,010,400 shares, and the total share capital was increased to 980,179,980 shares after the
dividend.
65
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued
at period-end
55. Capital reserves
In RMB
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
period period
Capital premium 204,650,998.01 204,650,998.01
Other capital reserves 78,295,032.49 27,983,671.40 106,278,703.89
Total 282,946,030.50 27,983,671.40 0.00 310,929,701.90
Other notes, including changes and reason of change:
1) The current increase of share capital premium includes: the Company's capital reserves increased due to
employees involved equity-settled share-based payments in 2022.1-6—other capital reserves of RMB
27,983,671.40
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
Other notes, including changes and reason of change:
It is the total 19,551,800 shares repurchased by the Company, of which 19,440,000 shares were used as equity
incentives to grant restricted shares to employees.
57. Other comprehensive income
In RMB
Occurred current term
Less：
Less：
Amount
Prior
transferred
period
into profit
included in
and loss in
Opening Amount other After-tax After-tax Closing
Items the current Less：
balance incurred composite attribute to attribute to balance
period that Income tax
before income the parent minority
income tax recognied expenses company shareholder
transfer to
into other
retained
comprehen
income in
sive
the current
income in
period
prior period
1. Other
comprehen
sive
income that 2,630,313,1 587,250,44 88,087,566. 499,162,87 3,129,476,0
cannot be 85.77 4.96 74 8.22 63.99
reclassified
in the loss
and gain in
66
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
the future
Changes in
fair value
of
2,630,313,1 587,250,44 88,087,566. 499,162,87 3,129,476,0
investment
85.77 4.96 74 8.22 63.99
s in other
equity
instruments
2.Other
comprehen
sive
income
- -
reclassifiab 626,917.85 266,939.11 359,978.74
835,428.78 568,489.67
le to profit
or loss in
subsequent
periods
Difference
of
translating - -
626,917.85 266,939.11 359,978.74
of foreign 835,428.78 568,489.67
currency
accounts
Total of
other
2,629,477,7 587,877,36 88,087,566. 499,429,81 3,128,907,5
comprehen 0.00 0.00 359,978.74
56.99 2.81 74 7.33 74.32
sive
income
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
58. Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 18,369,033.52 1,393,028.84 1,887,152.04 17,874,910.32
Total 18,369,033.52 1,393,028.84 1,887,152.04 17,874,910.32
Other note, including changes and reason of change:
(1)The decrease in the current period is due to the safety production expenses extracted by the company for the
purchase of safety protection articles and equipment.
(2) On December 5, 2016, Upon the application of the Company and the approval of Hangzhou Safety
Production Supervision and Administration Bureau (HSPSAB), the minimum reserved amount for the collection
and use of the safety production cost of the Company and its subsidiaries is RMB 20 million. If the safety
production costs that have been withdrawn in previous years have exceeded the minimum reserved amount, it
will no longer be reduced; if the safety production costs for the subsequent years are less than the above-
mentioned minimum reserved amount, withdraw in the current year to compensate up to the minimum reserved
amount.
59. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus
625,178,089.82 625,178,089.82
reserves
Total 625,178,089.82 625,178,089.82
Other note, including changes and reason of change
67
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
60. Retained profits
In RMB
Items Amount of this period Amount of last period
Adjust the undistributed profits before and at the end
3,761,583,410.91 3,587,465,039.91
of the period
Retained profits at the period beginning -172,106,637.64
After adjustments: Retained profits at the period
3,761,583,410.91 3,415,358,402.27
beginning
Add：Net profit belonging to the owner of the parent
348,340,310.01 649,992,474.56
company
Less:Common stock dividend payable 301,559,439.99 185,864,649.99
Other [Note] 226,169,580.00 117,902,815.93
Retained profits at the period end 3,582,194,700.93 3,761,583,410.91
[Note] It is the difference between the book value of the merger consideration paid for the merger of Hangfa
Company under the same control of the subsidiary Zhongneng Company in 2021 and the share of the book
value of the net assets of the merged party obtained in the consolidated financial statements of the ultimate
controlling party. The difference is due to the insufficient balance of the capital reserve-capital premium of
Zhongneng Company to offset the undistributed profit of RMB 117,902,815.93.
This period is the company's equity distribution, please refer to Section X VII 53 Shares of this report for
details
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.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed
profits are RMB 0.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0 .
61. Business income and Business cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
3,067,134,533.67 2,222,246,894.26 3,147,336,235.16 2,254,456,368.85
Main Business
8,845,799.91 5,808,309.32 16,565,133.66 46,957,282.10
Other
3,075,980,333.58 2,228,055,203.58 3,163,901,368.82 2,301,413,650.95
Total
The Company’s sales link has entered into a legal and effective sales contract/order with the customer. The
contract/order clarifies the terms of the subject product, specification model, transaction quantity, unit price,
settlement method, delivery obligation, etc., and the performance obligation is clear, and it is the single
performance obligation at a single point in time. The transaction prices of the Company’s various product
contracts/orders are clear, and the Company will confirm revenue after fulfilling the relevant performance
obligations in accordance with the contract/order related agreements.
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 RMB 5,475,320,000.00.
Other note
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
62.Taxes and surcharges
In RMB
Items Amount of this period Amount of last period
Urban maintenance and construction tax 5,146,140.51 7,890,356.44
Educational surtax 2,265,944.35 3,436,980.61
House tax 1,142,229.75 1,048,115.48
Land royalties -1,339,170.18 179,130.65
vehicle and vessel tax 25,432.83 31,373.66
Stamp tax 1,474,867.75 991,798.43
Locality Education surcharge 1,510,629.58 2,293,936.79
Environmental protection tax 2,401.20 1,592.16
Total 10,228,475.79 15,873,284.22
Other note：
63. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 36,485,677.51 34,381,559.67
Transportation(Note) 1,138,484.93 1,812,995.82
Travel expenses 8,888,561.95 12,156,888.32
Business reception expenses 6,206,490.00 6,697,139.85
Consulting service fee 12,267,342.77 11,301,260.90
Conferences 371,169.20 431,217.85
Three charge 4,784,318.15 9,567,390.40
Advertising fee 324,934.24 719,647.22
Office fee 691,321.48 516,901.13
Unit insurance premium 250,605.80 498,385.84
Other 6,810,164.97 3,345,228.21
Total 78,219,071.00 81,428,615.21
Other note：
64. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 253,557,627.13 252,145,940.87
Enterprise relocation fee 8,016,795.00 18,805,207.57
Asset depreciation and amortizing 25,141,560.43 14,658,733.95
Business reception expenses 1,461,204.40 2,173,433.86
Rental fee, House rental, property
15,174,258.65 18,658,446.91
management, water and power
Travel expenses and overseas travel
1,859,818.08 3,439,663.81
expenses
Agency fee 4,687,329.96 4,413,066.17
Office expenses 2,292,109.56 1,585,746.52
Repair costs 2,937,385.10 2,940,399.64
Share payable 27,983,671.40 0.00
Other 25,542,488.95 43,598,318.69
Total 368,654,248.66 362,418,957.99
Other note
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
65. R&D Expense
In RMB
Items Amount of this period Amount of last period
Labor cost 73,148,374.92 75,775,902.80
Direct materials 56,613,592.38 95,917,152.33
Depreciation expenses 2,116,766.61 7,830,358.96
Test and inspection fee 1,454,777.83 648,983.19
Commissioned research & development 2,603,124.12 4,308,600.06
Other 3,224,421.13 7,361,562.57
Total 139,161,056.99 191,842,559.91
Other note
66. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expense 13,901,898.42 15,396,380.49
Less: Income interests 9,020,380.48 8,271,324.38
Exchange gains/losses -21,050,554.98 -9,420,390.34
Commission 1,966,300.16 1,318,853.72
Other 485,124.77 184,174.44
Total -13,717,612.11 -792,306.07
Other note
67. Other income
In RMB
Items Amount of this period Amount of last period
Government subsidies related to assets 14,245,334.64 11,336,952.56
Government subsidies related to income 11,075,666.49 105,359,633.51
Individual tax commission refunds 415,740.28 302,726.51
Total 25,736,741.41 116,999,312.58
68. Investment income
In RMB
Items Amount of this period Amount of last period
Investment income obtained from the
25,276,726.80 69,528,530.76
disposal of trading financial assets
Dividend income from other equity
instrument investments during the 95,156,322.10 95,156,322.10
holding period
Interest income obtained from the debt
3,148.20
investment during the holding period
Receivables financing discount loss -328,968.75
Other [Note] -6,491,695.59
Total 120,433,048.90 157,867,336.72
Other note
[Note] It is the investment loss caused by the merger of the subsidiary Turbine Company with Zhongrun
Company under different control in the current period.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
69.Net exposure hedging income
70. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
Transactional Financial assets -426,791.66 76,061.88
Other non-current financial assets 3,888,000.00 -1,872,976.32
Total 3,461,208.34 -1,796,914.44
Other note：
71. Credit impairment loss
In RMB
Source Amount of this period Amount of last period
Losses on bad debt -14,898,317.52 -23,691,585.21
Total -14,898,317.52 -23,691,585.21
Other note
72. Losses from asset impairment
In RMB
Items Amount of this period Amount of last period
II. Loss of inventory value and
impairment of contract performance -5,052,367.50 -44,218,510.53
costs
XII. Loss of impairment of contract
18,768,663.74 7,414,364.16
assets
Total 13,716,296.24 -36,804,146.37
Other note：
73. Asset disposal income
In RMB
Source Amount of this period Amount of last period
Profits of disposal of fixed assets -45,800.77 -49,541.80
Total -45,800.77 -49,541.80
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:
6,459.28 102,213.90 6,459.28
obsolescence gain
Compensation income 43,248,533.26 117,449,736.00 43,248,533.26
No payment required 1,202,147.40 902,165.95 1,202,147.40
Equity gains 0.00
Other 108,279.86 409,635.43 108,279.86
Total 44,565,419.80 118,863,751.28 44,565,419.80
Government subsidies recorded into current profits and losses：
75. Non-operational expenses
In RMB
71
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Donations 515,000.00 10,000.00 515,000.00
Debt restructuring loss 0.00
Non-current assets scrapping
148,223.86 73,145,390.83 148,223.86
loss
Compensation expenses 3,553,023.12 6,951,918.46 3,553,023.12
Estimated liabilities 0.00
Fine, late payment 21,746.87 1,552.92 21,746.87
Special funds for water
0.00
conservancy construction
Other 127,154.50 19,080.08 127,154.50
Total 4,365,148.35 80,127,942.29 4,365,148.35
Other note：
76. Income tax expenses
(1) Details
In RMB
Items Amount of this period Amount of last period
Income tax of current term 55,703,420.35 67,741,287.09
Deferred income tax 9,744,531.33 27,611,556.05
Total 65,447,951.68 95,352,843.14
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Amount of this period
Total profit 453,983,337.72
Income tax expenses calculated on legal / applicable tax rate 68,097,500.65
Effect of different tax rates applicable to subsidiaries 2,790,837.85
Adjustment for income tax in prior year 418,264.22
Influence of non taxable income -10,597,826.90
Impact of non-deductible costs, expenses and losses 3,968,834.97
Impact of deductible losses on the use of previously
-304,873.94
unrecognized deferred income tax assets
The current period does not affect the deferred tax assets
1,075,214.83
recognized deductible temporary differences or deductible loss
Income tax expenses 65,447,951.68
Other note
77. Other Comprehensive income
72
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
For details, please refer to Note X(VII)18
78. Notes Cash flow statement
(1) Other cash received from operating activities
In RMB
Items Amount of this period Amount of last period
Deposit interest 8,484,848.65 7,861,638.97
Government subsidies received 13,152,574.06 2,890,282.04
Recovery of operating bank deposits 6,581,305.32 5,540,612.30
Compensation income 10,035,833.79 13,793,307.10
Receipt of operating current account 82,676.43 1,695,348.39
Lease income 57,665.00 106,285.71
Other 1,869,625.89 594,667.60
Total 40,264,529.14 32,482,142.11
Note：
(2) Other cash paid related to operation
In RMB
Items Amount of this period Amount of last period
Transportation 1,459,697.66 5,754,489.33
13,484,827.09 17,791,754.26
Travel expenses
Business trips 7,919,566.45 9,070,289.00
Maintaining 675,311.13 2,704,395.20
Property management and civil services 17,577,949.78 19,740,148.14
Deposit for bidding and others 19,454,848.00 15,992,126.30
Office expenses 2,716,373.67 2,148,108.99
Conferences 439,793.46 680,083.03
Consulting service fee 5,817,084.52 9,162,482.70
Transportation and vehicles 1,522,498.91 1,999,464.21
Other 19,365,991.81 67,133,083.87
Total 90,433,942.48 152,176,425.03
3.Other investment-related cash received
In RMB
Items Amount of this period Amount of last period
Repurchasing of trusteeship 1,370,000,000.00 2,257,800,000.00
Sell convertible bonds 687,572,000.00
Total 1,370,000,000.00 2,945,372,000.00
（4）Other cash paid for investment activities
In RMB
Items Amount of this period Amount of last period
Purchasing of financial products 912,000,000.00 2,393,000,000.00
Purchasing of convertible bonds 687,572,000.00
Total 912,000,000.00 3,080,572,000.00
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
（5）Other cash paid for Financing activities
（6）Other cash paid relevant to financing activities
In RMB
Items Amount of this period Amount of last period
Payment of CDB investment interest 155,000,000.00
Return the related party's capital lending
121,791,800.00 22,712,675.91
and interest
Lease Liability Payments 1,202,769.96
Total 122,994,569.96 177,712,675.91
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 388,535,386.04 367,624,033.94
Add: Impairment loss provision of assets 1,182,021.28 60,495,731.58
Depreciation of fixed assets, oil and gas assets and consumable
61,269,369.18 44,649,310.13
biological assets
Depreciation of Use right assets 3,994,249.19 3,835,086.91
Amortization of intangible assets 4,566,749.10 3,894,667.41
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets, intangible assets and other long-
45,800.77 49,541.80
term deferred assets
Fixed assets scrap loss 141,764.58 73,046,526.34
Loss on fair value changes -3,461,208.34 1,796,914.44
Financial cost -2,994,327.06 5,843,636.52
Loss on investment -120,433,048.90 -157,867,336.72
Decrease of deferred income tax assets 3,907,367.92 8,394,326.30
Increased of deferred income tax liabilities 88,087,566.74 -7,659,491.71
Decrease of inventories 644,637,223.04 104,708,982.24
Decease of operating receivables 284,265,347.33 -638,648,357.24
Increased of operating Payable -1,216,355,985.78 298,606,122.02
Other 27,489,548.20 -443,475.53
Net cash flows arising from operating activities 164,877,823.29 168,326,218.43
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：
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Ending balance of cash 1,540,418,173.57 1,442,458,748.74
Less: Beginning balance of cash equivalents 1,467,538,968.07 1,850,354,648.10
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 72,879,205.50 -407,895,899.36
(2) Net Cash paid of obtaining the subsidiary
(3) Net Cash receive of disposal of the subsidiary
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
1,540,418,173.57 1,467,538,968.07
I.Cash
77,169.28 65,904.06
Of which: Cash in stock
Bank savings could be used at any time 1,540,276,071.21 1,467,310,722.30
Other monetary capital could be used at any
64,933.08 162,341.71
time
A central bank deposit available for payment
Deposit of inter-bank funds
Debit and release of interbank money
II.Cash equivalents
Including: Bond investment due in three
months
III. Balance of cash and cash equivalents at
1,540,418,173.57 1,467,538,968.07
the period end
Including ： Use of restricted cash and cash
0.00 0.00
equivalents by parent or group subsidiaries
Other note：
80. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.
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
Monetary capital 80,082,579.59
bill of guarantees
Used as security for issuing of acceptance drafts
Notes receivable 19,532,735.62
and bill
Fixed assets 96,504,589.40 Collateral for obtaining bank loans
Intangible assets 52,745,671.68 Collateral for obtaining bank loans
Used as security for issuing of acceptance drafts
Financing of receivable 85,446,533.12
and bill
Total 334,312,109.41
Other note：
82. Monetary items in foreign currencies
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(1) Foreign currency monetary items
In RMB
Translated to RMB at end of
Items Balance at end of period Exchange rate
period
Monetary capital 375,005,614.15
Incl：USD 53,991,895.61 6.7114 362,361,208.20
Euro 612,578.76 7.0084 4,293,196.98
HKD 6,382.81 0.85519 5,458.52
Yen 53,659.00 0.049136 2,636.59
Rupiah 18,875,823,228.32 0.000442 8,343,113.87
Account receivable 185,700,994.36
Incl：USD 26,392,348.66 6.7114 177,129,608.79
Euro 1,175,284.14 7.0084 8,236,861.37
HKD
Rupiah 756,842,087.03 0.000442 334,524.20
SGD
Long-term loans
Incl：USD
Euro
HKD
Other receivable 3,187,850.00
Incl：USD 500,000.00 6.3757 3,187,850.00
Contract assets 134,210.86
Euro 19,150.00 7.0084 134,210.86
Account payable 146,465,909.33
Incl：USD 1,187,281.04 6.7114 7,968,317.97
Euro 4,932,478.73 7.0084 34,568,783.93
Rupiah 7,312,862,477.00 0.000442 3,232,285.21
SEK 64,188,884.26 0.6547 42,024,462.53
GBP 7,195,053.00 8.1545 58,672,059.69
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
（1）Government subsidy return
□ Applicable √ Not applicable
Other note：
(2) Detail
76
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(3) Asset-related government subsidies
Ending Current
Beginning Current
Current amortization n
Items subsidy
Deferred income amortization Deferred Item
increase
income presentation
Relocation and relocation compensation
587,965,976.12 9,844,722.78 578,121,253.34 Other income
(Shiqiao Road factory area)
Relocation and relocation compensation
126,889,398.13 4,331,641.86 122,557,756.27 Other income
(Hangfa factory area)
Financial subsidy for industrial projects 143,900.00 28,780.00 115,120.00 Other income
Subsidy for casting and forging projects 143,900.00 28,780.00 115,120.00 Other income
Financial subsidy for recycling economy 57,050.00 11,410.00 45,640.00 Other income
Subtotal 715,200,224.25 0.00 14,245,334.64 700,954,889.61
2) Income-related Government grants used to compensate for related costs or losses incurred by the company
Items At the beginning of New subsidies This period of End-of-term Amortize the
the deferred income for this period amortization deferred items in this
income period
Supported by Zhejiang Gas Turbine
14,238,527.49 68,000.00 2,471,654.60 11,834,872.89 Other income
Machinery Manufacturing Innovation Center
Subtotal 14,238,527.49 68,000.00 2,471,654.60 11,834,872.89
3) Income-related government subsidies used for compensation of relevant costs and expenses or losses
incurred in the Company
Items Amount Item presentation Amount included in
current profit and loss
Financial subsidies for enterprises in Linping District to use
2,225,245.00 Other income 2,225,245.00
capital market and strengthen financial security
Hangzhou city enterprise r & D investment subsidy fund 1,040,000.00 Other income 1,040,000.00
Zhejiang Province industrial Internet platform municipal
1,000,000.00 Other income 1,000,000.00
award funds
Industry and information technology provincial service-type
500,000.00 Other income 500,000.00
enterprise award
Special funds for the new manufacturing plan 304,700.00 Other income 304,700.00
Zhongneng steam turbine discrete type project
304,600.00 Other income 304,600.00
manufacturing digital construction project funds
Provincial-level first set of award 250,000.00 Other income 250,000.00
Zhejiang manufacturing certification subsidy 200,000.00 Other income 200,000.00
Patent subsidy 200,000.00 Other income 200,000.00
Hangzhou's first batch of export-oriented development of
100,000.00 Other income 100,000.00
special fund
Hangzhou Qiantang District Development and Reform
100,000.00 Other income 100,000.00
Bureau award funds
Hangzhou city foreign trade development fund project
100,000.00 Other income 100,000.00
subsidy
Stable post subsidies 1,920,645.23 Other income 1,920,645.23
Other incidental government subsidies 358,821.66 Other income 358,821.66
Subtotal 8,604,011.89 8,604,011.89
The current amount of government subsidies included into the current profits and loss is RMB25,321,001.13.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
85.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
（2）Combined cost and Goodwill
(3) The identifiable assets and liabilities of acquiree at purchase date
(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
(1) Business combination under the same control during the reporting period
（2）Combination cost
（3）Book value of the assets and liabilities of the mergee at the merger date
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
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Share proportion %
Name of the
business Reg. Add. Business property Way of obtain
subsidiaries Direct Indirect
location
Auxiliary Machine Hangzhou Hangzhou
Zhejiang Zhejiang Manufacturing 87.53% Incorporation
Co.
Packaged Hangzhou Hangzhou
Technologies Co. Zhejiang Zhejiang Commerce 75.86% Incorporation
Hangzhou Hangzhou
Machinery Co. Zhejiang Zhejiang Manufacturing 52.00% Incorporation
Hangzhou Hangzhou
Turbine Co. Zhejiang Zhejiang Commerce 100.00% Incorporation
Zhongneng Hangzhou Hangzhou Manufacturing 60.83% Incorporation
Company Zhejiang Zhejiang
Hangzhou Hangzhou Manufacturing
Casing Company 38.03% Incorporation
Zhejiang Zhejiang
Business
New Energy Hangzhou Hangzhou
Construction business 100.00% consolidation under
Company Zhejiang Zhejiang
the same control
Business
Hangzhou Hangzhou
Sales Company Transportation 30.00% consolidation under
Zhejiang Zhejiang
industry the same control
Business
China Mechanical Hangzhou Hangzhou
Commerce 55.00% consolidation under
Institute Company Zhejiang Zhejiang
the same control
Business
Ranchuang Hangzhou Hangzhou
Commerce 85.60% consolidation under
Company Zhejiang Zhejiang
the same control
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
1)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
79
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Company.
2)On November 11, 2021, the Company acquired 30% equity of the Sales Company. According to the Articles
of Association of the Sales Company and the resolution of the General Meeting of shareholders, the Board of
Directors of the Sales Company had five board seats, and all five directors were appointed by the Company and
had control over the Sales Company.
Basis of determine whether the Company is the agent or the principal:
(2) Significant not wholly owned subsidiary
In RMB
Gains/loss of the Dividend announced in Balance of equity of
Name of the Share portion of minor
period attributable to the period to minor minor shareholders at
subsidiaries shareholders
minor shareholders shareholders end of period
Auxiliary Machine Co. 12.47% 4,328,222.65 4,988,000.00 35,096,042.81
Packaged Technologies
24.14% 2,006,227.22 7,388,370.00 24,984,968.31
Co.
Machinery Co. 48.00% 20,360,589.13 28,800,000.00 86,074,063.72
Zhongneng Company 39.17% 5,448,840.43 30,933,377.86
Casing Company 61.97% 4,036,160.06 177,988,452.80
Sales Company 70.00% 3,255,014.16 3,150,000.00 33,822,677.33
China Mechanical
45.00% 8,120.09 1,261,008.55
Institute Company
Ranchuang Company 14.40% -7,399.82 2,945,075.92
80
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other note:
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Subsid Curren Non- Total Curren Non- Total
Non- Total Non- Total
iaries Curren t current of Curren t current of
Name current of current of
t assets liabiliti liabiliti liabilit t assets liabiliti liabiliti liabilit
assets assets assets assets
es es y es es y
Auxili 649,44 79,109 728,54 413,50 413,50 733,02 78,861 811,89 491,55 491,55
ary
0,246. ,542.0 9,788. 5,376. 0.00 5,376. 9,315. ,833.8 1,149. 5,820. 0.00 5,820.
Machi
ne Co. 20 7 27 53 53 32 8 20 43 43
Packag
ed 274,96 282,03 178,55 178,55 295,13 302,39 176,62 176,62
7,067, 7,257,
Techn 3,867. 1,245. 2,395. 0.00 2,395. 5,373. 2,408. 2,637. 0.00 2,637.
ologies 377.71 034.74
72 43 51 51 75 49 98 98
Co.
Machi 295,24 24,311 319,55 138,19 140,23 287,17 24,884 312,05 113,11 115,15
2,040, 2,040,
nery 7,663. ,177.0 8,840. 7,227. 7,874. 3,778. ,211.2 7,989. 4,270. 4,917.
Co. 646.71 646.71
59 9 68 85 56 22 6 48 68 39
Zhong
neng 1,560, 267,10 1,827, 1,473, 280,19 1,753, 1,543, 271,31 1,814, 1,464, 289,54 1,754,
Compa 755,11 6,384. 861,49 085,23 9,717. 284,95 408,28 1,148. 719,43 528,61 8,659. 077,27
ny 4.56 72 9.28 5.40 92 3.32 8.89 18 7.07 0.29 78 0.07
Casing 467,28 154,91 622,20 274,38 46,603 320,99 447,03 163,45 610,49 278,72 36,696 315,42
Compa 5,454. 5,191. 0,645. 8,252. ,068.3 1,320. 2,301. 8,336. 0,637. 4,887. ,712.5 1,599.
ny 03 45 48 33 3 66 14 65 79 30 5 85
Sales 75,036 39,899 114,93 60,735 66,618 83,054 39,677 122,73 68,682 74,564
5,882, 5,882,
Compa ,427.6 ,688.4 6,116. ,825.5 ,005.6 ,537.4 ,964.5 2,502. ,231.7 ,411.8
ny 180.09 180.09
7 7 14 8 7 9 6 05 2 1
China
Mecha
nical
2,806, 2,065. 2,808, 6,179. 6,179. 2,789, 3,639. 2,793, 8,885. 8,885.
Institut 0.00 0.00
e 354.84 55 420.39 16 16 442.19 53 081.72 14 14
Compa
ny
Ranch 37,731 37,765 12,134 12,855 39,613 39,661 14,538 14,699
uang 33,513 720,34 47,917 160,85
,951.4 ,465.3 ,872.8 ,215.9 ,104.7 ,022.1 ,527.4 ,385.1
Compa .86 3.09 .40 7.68
ny 9 5 9 8 9 9 9 7
In RMB
Amount of current period Amount of previous period
Subsidiarie Cash flow Cash flow
s Name Total Misc for Total Misc for
Turnover Net profit Turnover Net profit
Gains business Gains business
activities activities
Auxiliary -
336,182,73 34,709,082. 34,709,082. 70,186,293. 281,813,98 40,893,794. 40,893,794.
Machine 4,085,908.9
Co. 7.38 97 97 32 7.54 78 78
5
Packaged
112,095,73 8,309,079.4 8,309,079.4 61,873,587. 136,214,92 10,373,335. 10,373,335. 28,261,637.
Technologi
es Co. 9.61 1 1 40 3.74 43 43 18
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Machinery 140,387,28 42,417,894. 42,417,894. 51,444,426. 148,512,19 36,082,500. 36,082,500. 26,439,043.
Co. 5.62 03 03 73 8.03 94 94 23
Zhongneng - - - -
638,303,05 13,886,432. 14,513,350. 683,760,39
Company 27,762,299. 15,433,532. 14,347,099. 15,428,010.
0.64 71 56 5.43
67 16 90 34
-
Casing 189,427,30 6,513,497.0 6,513,497.0 248,488,98 15,582,080. 15,582,080.
28,808,688. 300,247.84
Company 5.72 0 0 4.20 80 80
90
- -
Sales 84,196,003. 4,650,020.2 4,650,020.2 80,200,903. 3,512,767.6 3,512,767.6
17,172,157. 6,017,976.6
Company 00 3 3 51 4 4
10 6
China
Mechanical 1,373,226.0 1,878,333.0 -
18,044.65 18,044.65 370,800.98 267,802.84 267,802.84
Institute 0 0 407,041.91
Company
- -
Ranchuang
0.00 -51,387.65 -51,387.65 1,960,843.3 0.00 592,166.90 592,166.90 4,255,295.9
Company
0 5
Other note：
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Other note：
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
（2）Major joint ventures and associates
(3) Main financial information of significant associated enterprise
(4) Summary financial information of insignificant joint venture or associated enterprise
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
(6) The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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.
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.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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
Year-end balance m
Items Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Bank loans 386,615,600.00 414,070,871.41 214,117,964.41 122,041,674.14 77,911,232.87
Notes payable 320,332,010.57 320,332,010.57 320,332,010.57
Account payable 1,585,258,800.30 1,585,258,800.30 1,585,258,800.30
Other payable 308,870,811.81 308,870,811.81 308,870,811.81
Lease
27,230,321.74 29,953,578.70 7,171,687.44 17,078,896.12 5,702,995.14
liabilities[Note]
Long-term payable
Subtotal 2,628,307,544.42 2,658,486,072.79 2,435,751,274.53 139,120,570.26 83,614,228.01
(Continued)
Items Year-beginning balance
Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Bank loans 439,907,392.45 470,301,376.99 271,803,491.55 93,584,460.78 104913424.7
Notes payable 309,404,319.27 309,404,319.27 309,404,319.27
Account payable 1,910,150,188.14 1,910,150,188.14 1,910,150,188.14
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Other payable 434,578,338.13 434,578,338.13 434,578,338.13
Lease liabilities 31,172,013.29 34,120,327.22 9,809,447.46 17,078,896.12 7,231,983.64
Long-term payable
Subtotal 3,125,212,251.28 3,158,554,549.75 2,935,745,784.55 110,663,356.90 112,145,408.30
(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, 2022, the company's bank borrowings with floating interest rate were RMB 195,100,000.00
(June 30, 2021: RMB5,000,000.00). 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 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 (II) 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 Fair value Fair value
Items
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
Consistent fair value
measurement
1. Transactional
financial assets and 2,218,468.16 0.00 518,680,533.96 520,899,002.12
other non-current
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
financial assets
1.Financial assets
classified as fair value 2,218,468.16 0.00 518,680,533.96 520,899,002.12
through profit or loss
（ 1 ） Financing
500,000,000.00 500,000,000.00
product
（ 2 ） Equity
2,218,468.16 18,680,533.96 20,899,002.12
instrument investment
(II) Financing
673,529,205.97 673,529,205.97
receivable
(III)Other equipment
4,072,690,585.88 4,072,690,585.88
instrument investment
Total assets of
consistent fair value 4,074,909,054.04 0.00 1,192,209,739.93 5,267,118,793.97
measurement
Total liabilities of
consistent fair value
measurement
II. Non-continuous fair
-- -- -- --
value measurement
Total assets of Non-
consistent fair value
measurement
Total liabilities of Non-
consistent 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.
3. Continuous and non-continuous Second-
level fair value measurement items, using valuation techniques and qualitative and quantitative information on i
mportant parameters
4. Continuous and non-continuous third-
level fair value measurement items, using valuation techniques and qualitative and quantitative information on i
mportant parameters
1). For held short-
term wealth management products with floating income and equity instrument investments, the company adopte
d 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
best estimate of fair value, so the cost is used to confirm its fair value .
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing
book value of consistent fair value measurement items at level 3
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
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
Shareholding ratio
Business Voting ratio in the
Name of the parent company Registered place Registered capital in the Company
nature Company (%)
(%)
Hangzhou Steam Turbine Hangzhou Manufactu
800 million yuan 63.64% 63.64%
Holdings Co., Ltd. China ring
Note
The parent company of the company, formerly known as Hangzhou Turbine Power Group Co., Ltd., changed it
s name to Hangzhou Turbine Holdings Co., Ltd. on August 5, 2022, hereinafter referred to as Hangzhou Turbin
e Holdings.The parent company of the company, formerly known as Hangzhou Turbine Power Group Co., Ltd.,
was renamed as Hangzhou Turbine Holdings Co., Ltd., on August 5,2022., hereinafter referred to as Hangzhou
Turbine Holdings.
The ultimate controller of the enterprise is Hangzhou Municipal Government State-owned Asset Supervisory
Committee
Other note：
2.Subsidiaries of the enterprise
For details of the subsidiary, see note
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name of joint venture or associate Relationship with the company
Other note
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4.Other related parties of the Company
Name of other related parties Relationship with the Company
Hangzhou Capital The parent company of Hangzhou Steam Turbine Holdings
Hangzhou Steam Turbine Compressor Co., Ltd. A subsidiary enterprise of Hangzhou Steam Turbine Holdings
Hangzhou Xiangjiang Technology Co., Ltd. A subsidiary enterprise of Hangzhou Steam Turbine Holdings
Hangzhou Guoyu Property Management Co., Ltd [Note 1] A subsidiary enterprise of Hangzhou Steam Turbine Holdings
Hangzhou Oxygen Group Co., Ltd Affiliated enterprise of Hangzhou Capital
Hangzhou Oxygen Turbine Machinery Co., Ltd Affiliated enterprise of Hangzhou Oxygen
Zhumadian Hangzhou Oxygen Gas Co. Ltd Affiliated enterprise of Hangzhou Oxygen
Hangzhou Oxyen Expander Machine Co., Ltd. Affiliated enterprise of Hangzhou Oxygen
Hangzhou Guoyu International Trade Co., Ltd. Affiliated enterprise of Hangzhou Capital
Greenesol power systems PVT Ltd. The company's shareholding enterprises
Hangzhou Heat Group Limited Yang Yongming serves as a director of the company
Other note
[Note 1] Formerly known as Hangzhou Steam Turbine Power Technology Co., Ltd., it was renamed on January
13, 2022.
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 Oxygen Turbine Parts, dynamic balance
1,122,123.85 3,500,000.00 No 1,911,504.43
Machinery Co., Ltd processing costs
Hangzhou Steam Turbine Financial system
27,015.42 32,000.00 No
Holdings service charge
Subtotal 1,149,139.27 3,532,000.00 1,911,504.43
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
Hangzhou Guoyu International Trade Co.,
Material sales 0.00 2,722,604.67
Ltd.
Greenesol power systems PVT Ltd. Parts 702,102.87 434,687.41
Hangzhou Oxygen Expander Machine Co.,
Parts 99,741.55
Ltd
Subtotal 801,844.42 3,157,292.08
(2) Related trusteeship/contract
(3) Information of related lease
The Company was lessor:
In RMB
The lease income confirmed The lease income confirmed in
Name of lessee Category of leased assets
in this year last year
Hangzhou Steam Turbine
House and Building 0.00 801,757.33
Holdings
Subtotal 0.00 801,757.33
The Company was lessee：
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Note
①January -June 2022
Simplified rental expenses for short- The rent paid (excluding the simplified
Types of term leases and low-value asset rent for short-term leases and low- Increased Recognized
Name of lessor leased leases and variable lease payments value asset leases and the variable right-to-use interest
assets that are not included in the lease payment not included in the assets expense
measurement of lease liabilities measurement of lease liabilities)
Hangzhou
Xiangjiang House and
1,145,495.20 118,032.04
Technology Co., Building
Ltd.
①January -June 2021
Simplified rental expenses for short- The rent paid (excluding the simplified
Types of term leases and low-value asset rent for short-term leases and low- Increased Recognized
Name of lessor leased leases and variable lease payments value asset leases and the variable right-to-use interest
assets that are not included in the lease payment not included in the assets expense
measurement of lease liabilities measurement of lease liabilities)
Hangzhou
Xiangjiang House and
668,205.53 130,795.52
Technology Co., Building
Ltd.
（4）Related-party guarantee
The Company was guarantor
In RMB
Execution
Guarantor Guarantee amount Start date End date
accomplished or not
The Company was secured party
In RMB
Execution
Guarantor Guarantee amount Start date End date
accomplished or not
The Company was secured party
(1) Loan guarantee
Guarantor Send a letter Bank Guarantee amount Currency
Ningbo Bank.
Hangzhou Steam Turbine Holdings Hangfa Company 3,124,650.00 RMB
Chengdong Branch
(5) Inter-bank lending of capital of related parties
In RMB
Related Amount borrowed and
Initial date Due date Notes
party loaned
Borrowed
Hangzhou Steam
118,208,200.00 July 1,2022 September 30,2023
Turbine Holdings
Loaned
（6）Related party asset transfer and debt restructuring
（7） Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 11,563,132.00 6,805,529.55
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(8) Other related transactions
(1) Purchase of fixed assets
The Company purchased machinery equipment and office equipment and other fixed assets of RMB 285,902.65
from Hangzhou Steam Turbine Holdings.
(2) Substitute payment
During the current period, Hangzhou Steam Turbine Holdings advanced the payment of RMB 21,054.09 salaries
for the company.
6. Receivables and payables of related parties
（1）Receivables
In RMB
End of term Beginning of term
Name Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Greenesol power
13,490,819.98 13,490,571.33 13,490,558.24 13,490,558.24
receivable systems PVT Ltd.
Hangzhou Oxygen Group Co.,
2,460,000.00 2,460,000.00 2,460,000.00 2,460,000.00
Ltd
Hangzhou Oxyen Turbine
9,225,000.00 9,225,000.00 9,225,000.00 9,225,000.00
Machinery Co., Ltd.
Hangzhou Steam Turbine
830,013.67 481,011.87 835,349.87 486,348.07
Holdings
Hangzhou Steam Turbine
59,000.00 59,000.00 59,000.00 59,000.00
Compressor Co., Ltd’
Hangzhou Heat Group Limited 8,937.60 8,937.60 8,937.60 8,937.60
Subtotal 26,073,771.25 25,724,520.80 26,078,845.71 25,729,843.91
Financing Hangzhou Oxyen Turbine
3,000,000.00
receivable Machinery Co., Ltd.
Subtotal 0.00 0.00 3,000,000.00
Other Hangzhou Xiangjiang
601,384.98 60,138.50 601,384.98 60,138.50
receivable Technology Co., Ltd.
Hangzhou Steam Turbine
0.00 0.00 462,761.45 34,304.70
Holdings
Subtotal 601,384.98 60,138.50 1,064,146.43 94,443.20
Hangzhou Oxyen Turbine
Contract assets 489,000.00 24,450.00 489,000.00 24,450.00
Machinery Co., Ltd.
Subtotal 489,000.00 24,450.00 489,000.00 24,450.00
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Account payable Greenesol powersystems PVT Ltd. 1,931,920.52 1,835,287.07
Hangzhou Steam Turbine Holdings 230,568.42 230,568.42
Hangzhou Oxyen Turbine Machinery Co.,
769,911.43 497,585.09
Ltd.
Subtotal 2,932,400.37 2,563,440.58
Contract
Hangzhou Steam Turbine Holdings 29,652,336.28 29,652,336.28
liabilities
Hangzhou Oxyen Group Co., Ltd. 12,508,008.83 7,404,000.00
Greenesol powersystems PVT Ltd. 0.00 353,288.27
Hangzhou Oxyen Expander Machine Co.,
0.00 85,800.00
Ltd.
90
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Hangzhou Steam Turbine Compressor
0.00 700.00
Co., Ltd’
Subtotal 42,160,345.11 37,496,124.55
Other payable Hangzhou Steam Turbine Holdings 118,472,691.80 240,448,987.71
Subtotal 118,472,691.80 240,448,987.71
Hangzhou power equipment
Prepayments 87,000.00
manufacturing Co., Ltd
Subtotal 87,000.00
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) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
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XV. Events after balance sheet date
1. Significant events had not adjusted
2. Profit distribution
3. Sales return
4. Notes of other significant events
XVI. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
（2）Prospective application
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
The Company's main business is to produce and sell industrial steam turbines and its accessories , their auxiliaries,
accessories and other products. The Company regards such business as a whole to implement management and
evaluate the operating results. Therefore, the Company does not need to disclose segment information. The
operating income and operating costs of the Company by product/region are detailed in Note III (III) of the
Financial Statements.
(2) The financial information of reportable segment
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
（4）Other note
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
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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
Prop Prop Prop Prop
Book value Book value
Amount ortion Amount ortio Amount ortion Amount ortio
% n% % n%
Including
Accrual
of bad
debt 2,092,280,66 100.0 744,160,78 35.5 1,348,119,87 2,347,791,61 100.0 767,426,73 32.6 1,580,364,87
provision 4.98 0% 5.56 7% 9.42 2.01 0% 5.29 9% 6.72
by
portfolio
Including
：
2,092,280,66 100.0 744,160,78 35.5 1,348,119,87 2,347,791,61 100.0 767,426,73 32.6 1,580,364,87
Total
4.98 0% 5.56 7% 9.42 2.01 0% 5.29 9% 6.72
Accrual of bad debt provision by portfolio:744,160,785.56
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Portfolio 1 2,092,280,664.98 744,160,785.56 35.57%
Total 2,092,280,664.98 744,160,785.56
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 Book balance
Within 1 year（Including 1 year） 498,169,574.52
1-2 years 582,521,897.22
2-3 years 320,584,135.99
Over 3 years 691,005,057.25
3-4 years 182,167,514.79
4-5 years 141,083,968.17
Over 5 years 367,753,574.29
Total 2,092,280,664.98
(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 Closing balance
Reversed or
Accrual Write-off Other
collected
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
amount
Accrual of bad
debt provision 797,530,567.13 -8,623,978.91 788,906,588.22
by portfolio
Total 797,530,567.13 -8,623,978.91 788,906,588.22
(3) The actual write-off accounts receivable
（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Customer 1 1,005,358,934.32 36.26% 235,186,412.70
Customer 2 227,542,065.29 8.21% 109,088,083.05
Customer 3 184,354,487.19 6.65% 30,231,192.31
Customer 4 64,043,682.40 2.31% 3,344,768.24
Customer \5 40,350,223.01 1.46% 4,035,022.30
Total 1,521,649,392.21 54.89%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Other note：
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
2. Other account receivable
In RMB
Nature Closing balance Opening balance
Dividend receivable 95,156,322.10
Other 9,501,239.23 27,054,816.71
Total 104,657,561.33 27,054,816.71
（1）Interest receivable
1）Classification of interest receivable
2）Significant overdue interest
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
1）Dividend receivable
In RMB
Items End of term Beginning of term
Hangzhou Bank 95,156,322.10
Total 95,156,322.10
2) Significant dividend receivable aged over 1 year
3）Bad-debt provision
94
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
□ 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
Deposit 6,781,493.00 30,465,219.01
Provisional payment receivable 7,728,640.03 832,087.45
Petty cash 80,000.00
Other 15,663.60 1,999,123.61
Total 14,605,796.63 33,296,430.07
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit Expected credit loss
Bad Debt Reserves for the entire duration Total
losses over the next over life (no credit
(credit impairment
12 months impairment)
occurred)
Balance as at January 1,
1,271,720.39 213,125.64 4,756,767.33 6,241,613.36
2022
Balance as at January 1,
2022 in current
——Transfer to stage II -82,609.15 82,609.15 0.00 0.00
——Transfer to stage III 0.00 -309,943.67 309,943.67 0.00
——Transfer to stage II 0.00 0.00 0.00 0.00
Provision in the current
-801,122.80 30,730.71 -366,663.86 -1,137,055.95
period
Balance as at June 30,
387,988.44 16,521.83 4,700,047.13 5,104,557.40
2022
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Book balance
Within 1 year(Including 1 year） 9,047,640.91
1-2 years 165,218.29
2-3 years 929,831.00
Over 3 years 4,463,106.43
3-4 years 34,934.00
4-5 years 140,174.99
Over 5 years 4,287,997.44
Total 14,605,796.63
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
(3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
(4) The actual write-off accounts receivable
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion of the
total year end Closing balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
Shanghai Customs office in
Deposit 3,710,320.94 Over 5 years 25.40% 3,710,320.94
Gaoqiao port area
Shandong Chenming Holding
Deposit 1,200,000.00 Within 1 year 8.22% 60,000.00
Group Co., Ltd.
Hangzhou Ganghua Gas Co.,
Deposit 900,000.00 Within 1 year 6.16% 45,000.00
Ltd.
Hangzhou Steam Turbine
Deposit 687,217.64 Within 1 year 4.71% 34,360.88
Machinery Equipment Co., Ltd
Huaxia Hanhua Chemical
Deposit 580,000.00 Within 1 year 3.97% 29,000.00
Equipment Co., Ltd
Total 7,077,538.58 48.46% 3,878,681.82
(6) Accounts receivable involved with government subsidies
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
294,384,923.57 294,384,923.57 191,793,655.63 191,793,655.63
subsidiaries
Total 294,384,923.57 294,384,923.57 191,793,655.63 191,793,655.63
(1)Investments in subsidiaries
In RMB
Increase /decrease Closing
Withdrawn balance of
Investees Opening balance Decreased Closing balance
Add investment impairment Other impairment
investment provision
provision
Turbine
20,208,700.14 313,050.24 20,521,750.38
Company
Hangzhou
Auxiliary 46,286,513.41 46,286,513.41
Machine Co.
Zhejiang
Turbine
40,000,389.56 40,000,389.56
Packaged
Co.
Zhongneng
27,644,475.06 27,644,475.06
Co.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Machinery
7,968,000.00 7,968,000.00
Co.
Casting Co. 11,220,000.00 11,220,000.00
New Energy
1,193,092.39 102,278,217.70 103,471,310.09
Company
Sales
13,721,544.50 13,721,544.50
Company
China
Mechanical
1,533,768.30 1,533,768.30
Institute
Company
Ranchuang
22,017,172.27 22,017,172.27
Company
Total 191,793,655.63 102,591,267.94 294,384,923.57
（2）Investments in associates and joint ventures
（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 2,005,447,334.39 1,522,270,649.74 1,874,781,657.52 1,397,535,102.84
Other 7,750,819.51 4,486,969.18 12,244,996.37 48,342,019.96
Total 2,013,198,153.90 1,526,757,618.92 1,887,026,653.89 1,445,877,122.80
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:
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 RMB3,641,720,000.00.
Other note：
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment income by Cost method 90,773,630.00 153,319,630.00
Investment income obtained from the disposal of
24,344,818.92 66,550,194.43
trading financial assets
Dividend income from other equity instrument
95,156,322.10 95,156,322.10
investments during the holding period
Total 210,274,771.02 315,026,146.53
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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(including the write-off part for
-187,565.35
which assets impairment provision is made)
Tax refund, deduction and exemption that is examined and approved by
0.00
authority 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 25,321,001.13
and closely related to the Company’s business operation.
Capital occupation charges on non-financial enterprises that are recorded
0.00
into current gains and losses
Gains due to that the investment costs for the Company to obtain
subsidiaries, associates and joint ventures are lower than the enjoyable
0.00
fair value of the identifiable net assets of 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
0.00
employees and integration fee
Gains/losses exceeding the fair value arising from transactions with
0.00
obviously unfair prices
Net gain and loss of the subsidiary under the common control and
produced from enterprise consolidation from the beginning of the period 0.00
to the consolidation date
Gain and loss arising from contingent matters irrelevant with the
0.00
Company’s normal 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
28,737,935.14
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
0.00
undergoing impairment test individually
Gain/loss from external entrusted loan 0.00
Gain and loss arising from change in the fair value of the investment
0.00
based real estate measure afterwards by means of fair value model
Influence upon the current gains and losses from the once-and –for –all
adjustment over the current gains and losses according to the taxation 0.00
and accounting laws and regulations
Income from custodian charge obtained from entrusted operation 0.00
Operating income and expenses other than the aforesaid items 40,757,776.31
Less: Influenced amount of income tax 13,536,814.80
Amount of influence of minority interests（After tax） 3,519,592.68
Total 77,572,739.75 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on net asset and earnings per share
Earnings per share
Weighted average returns
Profit of report period Basic earnings per Diluted earnings per
equity(%)
share(RMB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders of 4.24% 0.36 0.36
Company.
Net profit attributable to the
Common stock shareholders of
3.30% 0.28 0.28
Company after deducting of non-
recurring gain/loss.
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 stan
dards. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of th
e overseas institution should be indicated
4.Other
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 25, 2022
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