Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. :2022-74
Hangzhou Steam Turbine Co., Ltd.
The Semi-Annual Report 2022
（Stock Code：200771）
August 2022
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
I. Important Remarks, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives of the Company
guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we
will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
Mr. Zheng Bin, The Company leader, Mr. Zhao Jiamao, Person in charge of accounting and Mr. Jin Can, Person in
charge of Accounting institute（accountant in charge)hereby confirm that the financial Report of Semi-Annual
Report 2022 is authentic, accurate and complete.
All the directors attended the board meeting for the review of this Report.
This Report contains prospective descriptions, which doesn’t constitute substantial commitment to investors.
Investors are requested to be aware of the risks attached to their investment decisions. For the risks existing in the
Company's operation, please refer to the section "Prospects for the future development of the Company" in
Section III "Management Discussion & Analysis". The company's designated information disclosure media are:
Shanghai Securities News (Chinese), Securities Times (Chinese), Hong Kong Commercial Daily (English),
http://www.cninfo.com.cn (In English and Chinese), all information of the company is subject to the information
published in the above selected media. Investors are advised to pay attention to investment risks.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Company Profile & Financial Highlights.
III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Documents available for inspection
I. Financial Statements signed and sealed by the Chairman of the Board , chief accountant and director of
the financial division;
II. All the originals of the Company’s documents and public notices disclosed in the newspapers
designated by China Securities Regulatory Commission in the report period;
III. Original copy of Resolutions of the Meeting of Board.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Definition
Terms to be defined Refers to Definition
Company, the Company Refers to Hangzhou Steam Turbine Co., Ltd.
Hangzhou Steam Turbine Holdings Refers to Hangzhou Steam Turbine Holdings Co., Ltd.
State-owned Assets Supervision and Administration Commission of
Hangzhou SASAC Refers to
Hangzhou Municipal People's Government
Hangzhou Capital Refers to Hangzhou State-owned Capital Investment and Operation Co., Ltd.
The report period, the current period, the
Refers to January 1,2022-December 31,2022
current year
Zhongneng Co. Refers to Hangzhou Zhongneng Steam Turbine Power Co., Ltd.
Casting Co. Refers to Hangzhou Steam Turbine Casting Co., Ltd.
Packaged Tech. Co. Refers to Zhejiang Steam Turbine Packaged Technology Development Co., Ltd.
Machinery Co. Refers to Hangzhou Steam Turbine Machinery Equipment Co., Ltd.
Auxiliary Machine Co. Refers to Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd.
Turbine Co. Refers to Zhejiang Turbine Import & Export Co., Ltd.
Zhongrun Company Refers to Zhejiang Zhongrun Gas Turbine technology Co., Ltd.
New Energy Company Refers to Hangzhou Steam Turbine New Energy Co., Ltd.
Hangfa Company Refers to Hangzhou Hangfa Power Generation Equipment Co., Ltd.
Sales Company Refers to Hangzhou Steam Turbine Sales Service Co., Ltd.
China mechanical and Electrical Institute -HSTG (Hangzhou) United
China mechanical and Electrical Institute Refers to
Institutes Co., Ltd.
Ranchuang Company Refers to Zhejiang Ranchuang Turbine Machinery Co., Ltd.
The Board of Directors Refers to The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
The Supervisory Committee Refers to The Supervisory Committee of Hangzhou Steam Turbine Co., Ltd.
The Shareholders’ Meeting Refers to The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
RMB, RMB0’000, RMB000’000’000 Refers to RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
MW Refers to Unit of power: 1000KW
MES Refers to Manufacturing execution system
ERP Refers to Enterprise Resources Planning
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
II. Company Profile & Financial Highlights.
I. Basic Information
Stock ID Hangqilun B Stock Code 200771
Stock Exchange Listed Shenzhen Stock Exchange
Company Name in Chinese 杭州汽轮机股份有限公司
Short form of Company Name in
杭汽轮
Chinese
Name in English HANGZHOU STEAM TURBINE CO.,LTD
Abbreviation in English HTC
Legal representative: Zheng Bin
II. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Li Guiwen Li Xiaoyang
No.1188, Dongxin Road, Hangzhou , No.1188, Dongxin Road, Hangzhou ,
Address Zhejiang Zhejiang
Tel. 0571-85780058 0571-85780438
Fax. 0571-85780433 0571-85780433
Email. lgw@htc.cn lixiaoyang@htc.cn
III. Other info.
1. Contacts
No change to the registered address, office address, postal code, official website, and email address of the
Company. For details please find the Annual Report 2020.
√ Applicable □ Not applicable
No.1 Buidling, 608 Kangxin Road, Yuhang Economic &
Reg. Add.
Technological Development Zone, Hangzhou, Zhejiang
Post Code 311106
Office address No.1188, Dongxin Road, Hangzhou , Zhejiang
Post Code: 310022
Web Address www.htc.cn
Email. lgw@htc.cn
2. Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2021.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
3.Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Not applicable
IV.Summary of Accounting data and Financial index
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√Yes □No
Retroactive adjustment or restatement of causes
Merger of enterprises under the same control
This report term Same period last year Increase/decrease (%)
Before adjustment After adjustment After adjustment
Operating revenue（Yuan） 3,075,980,333.58 2,966,020,451.07 3,163,901,368.82 -2.78%
Net profit attributable to the
shareholders of the listed 348,340,310.01 425,641,416.95 336,184,909.79 3.62%
company（Yuan）
Net profit after deducting of non-
recurring gain/loss attributable to
the shareholders of listed 270,767,570.26 258,513,133.28 258,513,133.28 4.74%
company（Yuan）
Cash flow generated by business
164,877,823.29 177,081,012.71 168,326,218.43 -2.05%
operation, net（Yuan）
Basic earning per
0.36 0.45 0.35 2.86%
share(Yuan/Share)
Diluted gains per
0.36 0.45 0.35 2.86%
share(Yuan/Share)
Net asset earning ratio（%） 4.24% 5.19% 4.09% 0.15%
As at the end of the As at the end of last year YoY+/-（%）
reporting period Before adjustment After adjustment After adjustment
Gross assets (yuan) 15,707,267,144.88 16,319,667,628.76 16,319,667,628.76 -3.75%
Shareholders’ equity attributable
to shareholders of the listed 8,501,186,009.20 7,927,485,773.65 7,927,485,773.65 7.24%
company（yuan）
V. The differences between domestic and international accounting standards
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not existent
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not existent
VI. Non-recurring gain/loss items and amounts
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part for which
-187,565.35
assets impairment provision is made)
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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 and 25,321,001.13
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 fair
0.00
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 employees
0.00
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 to the 0.00
consolidation date
Gain and loss arising from contingent matters irrelevant with the Company’s
0.00
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 undergoing
0.00
impairment test individually
Gain/loss from external entrusted loan 0.00
Gain and loss arising from change in the fair value of the investment based
0.00
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 and 0.00
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
None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
III. Management Discussion & Analysis
Ⅰ.Main Business the Company is Engaged in During the Report Period
(I) Company business
As the leading provider of turbo machinery equipment and relevant service in China, our company is mainly
famous for designing and producing rotating turbo machinery like industrial steam turbines and gas turbines.
Our company, one of the major companies drafting the industrial standard in Chinese domestic industry of
industrial steam turbine, has developed into the biggest base to research, develop and produce industrial
steam turbines in China and ranks first among industrial steam turbine producers in terms of the market
occupancy. Holding the principle “our products should be based on clients’ demands” as our business mode
and characteristic, our company designs and produces in accordance with every client’s personal demands so
as to meet personalized needs in engineering projects to the utmost. To realize the fast research and
development of our products, our company has adopted the advanced modular design technique and, on the
other hand, introduces information technique to assist the collaborative production to achieve the resource
saving and flexible production. In addition, our company also provides our clients with relevant service such
as engineering programs, general engineering contracting, operation and maintenance of our products as well
as remote control and so on.
Industrial steam turbines use the steam featuring high temperature and high pressure as their working medium
so as to convert the thermal energy into mechanical energy to drive various industrial equipments through the
rotating steam turbines. As for different objects driven by industrial steam turbines, the steam turbines could be
divided into industrial driving steam turbines and industrial power-generation steam turbines. Mainly driving
rotating machines like compressors, air blowers, pumps and squeezers, industrial driving steam turbines, as the
core power part in numerous large-scale industrial equipments, are always introduced into some industries like
oil refining, chemical engineering, chemical fertilizer, building materials, metallurgy, electric power, light
industry and environmental production. The industrial power-generation steam turbines, mainly utilized to
drive electric generators and provide thermal energy, are mainly adopted in private stations, regional projects of
combined heat and power generation, power generation by recycling waste heat in industrial production, urban
waster power plants and gas-steam combined cycle power stations in various industrial sectors. The gas
turbines produced by our company are mainly used by metallurgical industry to recycle the waste heat from the
blast furnace exhaust to generate power.
In the gas turbine business, the company cooperated with Siemens on SGT-800, an advanced natural gas
turbine with high efficiency, high reliability and low emission, to enter the field of natural gas distributed
energy, with its models gradually expanded to SGT300, SGT700 and SGT2000E. As the general supplier of
Siemens gas turbine in China, the company has carried out gas turbine business from two aspects of project
procurement and integrated implementation, and has the ability of selecting combined cycle projects for
distributed energy, has established the complete system supporting standards and material systems, and can
complete the independent processing and supporting work of equipment other than the gas turbine itself. In
the industrial fields including the cogeneration /combined cycle power plant and the oil & gas project with
distributed energy projects that adopt the small and medium gas turbines, the Company not only can provide
gas turbine equipment for customers, but also can provide customers with complete sets of equipment for
gas turbine power plant and the efficient integrated solutions. Especially, it can provide customers with
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
operational support services throughout the product life, and this service model is conductive for the
establishment of long-term business cooperation relationships between the company and its customers.
As the major producer of industrial equipments in China, our company is mainly benefited from the
following factors in terms of the elements driving our business performance:
1. On the basis of market demands. The relevant market demands fluctuate differently due to various business
condition and investment cycles in different industrial fields. The company further made more specified
positions toward the market for the products, implemented the differentiated marketing strategy, and integrated
the business sectors and tapped into the potential, According to different customers' needs, it has further
consolidated the original market position and broadened the market share in new fields through precise
matching and precise policies.
2. Innovation and further reform in difficult areas of product technology ： Our company continuously
improves product technical performance and tackles hard issues in the scientific researches of product structure,
core parts, basic design, manufacturing technology, material technology, etc. In addition, basing on clients’
demands, To push forward the intelligence of our products and the development of the integration technology.
Meantime, the company cooperated with universities, scientific research institutes to build the technological
exchange and cooperation platform.
3. Upgrading of industrial structure transformation ： The company jointed with Siemens to enter the
distributed energy market and enhance the development and utilization of natural gas distributed energy. In the
industrial fields including the cogeneration /combined cycle power plant and the oil & gas project with
distributed energy projects that adopt the small and medium gas turbines, the Company not only can provide gas
turbine equipment for customers, but also can provide customers with complete sets of equipment for gas
turbine power plant and the efficient integrated solutions.
4. Brand and market position：The company’s products have a good reputation and extensive brand influence
in the domestic market, The company has maintained a leading market share in the domestic industrial drive.
The company's products have a high reputation and brand influence in the domestic market.
5.Cost controlling level：As domestic labor costs continue to rise and the price of industrial products continue
to decline, the product profitability is facing a severe test. In recent years, the company continuously improves
the level of costs controlling by improving the organizational structure, optimizing business processes,
enhancing the supply chain controlling, strengthening risk management, raising the efficiency of all the staff
and so on.
6.Emphasis on quality engineering and services: promote the key project management, meticulously plan key
projects, implement dynamic quality supervision; attach importance to products’ after-sales service market,
integrate existing resources to increase after-sales service initiative, extend product value chain, and promote
the company’s transformation from manufacturing to service.
(II) Operating conditions during the reporting period
During the reporting period, the Company further consolidated the market, accelerated digital transformation,
steadily promoted business transformation and resource integration, and continued to improve high-quality
development of the Company.
In the first half of 2022, the company realized operating income of 3,075.9803 million yuan, total profit of
453.9833 million yuan and net profit of 388.5354 million yuan, of which net profit attributable to shareholders
of listed companies was 348.3403 million yuan. Compared with the same period of last year, the operating
income decrease by 2.78% year on year, total profit decreased by 1.94% year on year, net profit increased by
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
5.69% year on year, and net profit attributable to shareholders of listed companies increased by 3.62% year on
year. Good results have been achieved.
1. Consolidating the market
During the reporting period, facing the unfavorable factors of repeated epidemics and restricted business
trips, the Company actively adjusted sales strategies in key regions and industries, and strengthened the synergy
between domestic and foreign trade, enhanced the synergy of drive and power generation, the synergy between
steam turbines and gas turbines and the synergy between the Company and China Energy. By adopting the form
of multi-user visits in the same region, multi-point docking and precision marketing, relying on video
conferences, on-site exchanges, user visits and other channels, it had better protected the traditional advantages
of the refining and chemical industry, and meanwhile it had also won a certain number of short-cycle orders in
the small and medium thermoelectric and other driving fields. Updated and implemented the system of
reporting commodity nodes, improved the integrity of the unit when it’s delivered and improved the accuracy of
the delivery status, and assisted in the collection of receivables with the help of pre-sale and after-sale links.
Further promoted the standardized service work system, implemented the service strategy with marketing as the
goal, and strengthened the in-depth integration of service and marketing. During the reporting period, the
Company centered on the quality foundation and safeguarded the lifeline of enterprise development. Be
problem-oriented, the Company coordinated multiple departments to implement measures and strengthened pre-
positioned quality management. In addition, it optimized the quality assessment documents, strengthened the
quality assessment efforts, and improved the rationality, operability and coverage of assessments.
2. Digital Guiding
During the reporting period, the Company continued to promote digital construction. We made every effort
to promote the implementation of the ERP project. There were 201 special investigations carried out for the
ERP project, completed the collection of more than 450 business data, and the version 3.0 of the blueprint
scheme had been formed. Promoted the construction of digital factories in production bases, realized the
workstation data access, work reporting, the electronic Kanban and other equipment deployment for the first
time in the blade section, implemented the function expansion and optimization of the MES system, developed
and improved the report function and delivered it for use. There were 8 new online processes were added to the
office system, and the process was revised 59 times. It also used digitalization to achieve integrated
management and control of business, finance and taxation. During the reporting period, the Company deepened
the integration of business and finance, extended cost management, advanced the construction of financial
informatization in depth, and included cost control into the asset management ecosystem. Furthermore, it
formulated the "Standardized Process of Workshop Accounting Work" to comprehensively improve the
workshop financial accounting work.
3. Business transformation
During the reporting period, the Company re-planned the major customer management system according to
changes in the market situation, strengthened the linkage between the sales side and the service side, and
focused on the management of basic customer information and the on-site service management and service
extension of customer stock units on the server side. Staged progress had been made in the compilation of
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
teaching materials for the major service training module, and the work related to the major customer credit
evaluation system had been launched, focusing on promoting the measurement and design of contract
performance. During the reporting period, the Company focused on the main business. Based on the traditional
energy, it explored the development path of new energy, and accelerated the pace of development of the
Company in the field of new energy. Through the deployment of demonstration projects, the Company actively
promoted the Company's new energy brand, and further layed out a solid technical reserve for the Company's
business expansion into the new energy industry.
4. Innovation &Development
During the reporting period, the Company accelerated the technological innovation and further consolidated
its core competitiveness. In the first half of the year, 25 scientific research projects were launched for the first
phase of the Company, and 13 scientific research projects were completed and accepted. The scientific research
focused on product expansion, efficiency improvement, informatization construction, process research, quality
control services and standard upgrades, providing technical support for the Company's development. The
preliminary work had been carried out on the second stage of the development of supercritical carbon dioxide
units (prototype design and manufacturing). The Company-led "R&D and promotion and application of key
technologies for high-efficiency and high-reliability turbine machinery" was approved by the Zhejiang
Provincial Department of Science and Technology. The first second-stage technology transfer landing project of
Siemens gas turbine had completed the localization design of the gas turbine chassis and core engine installation
materials.
II. Analysis On core Competitiveness
Firstly. A complete technical innovation system was established. The Company has under its possession of
national, provincial, and municipal grade technical centers, a doctorial workstation, and an academician
workstation. Close co-operations were carried out with institutions and universities from throughout the
country. As the main drafter of national standard on industrial steam turbine, the Company has the newest
technical trend under its close observation. The Company is now providing nearly 600 different models of
steam turbines to the customers and hold the newest technical system covering the product lines up to 150
MW.Cooperating with SIEMENS in the field of gas turbine, our company has been capable of selecting the
model of the combined recycling project of distributed energy. In addition, our company has also been able to
finish the independent processing or supporting work which doesn’t need to depend on the gas turbine
machine.
Secondly .The advantages of solutions. The modular design of industrial steam turbine and the production
pattern featuring parallelization production enable our company to give considerations to the cost, date of
delivery and clients’ demands in the process of production in accordance with clients’ personalized designs,
thereby making our company capable of advancing with the development trend of individual requirements.
Our company has always been devoting to the localization in terms of the gas turbine business so as to
achieve the localized one-stop service step by step including the sale, production, installation, debugging,
operation, training and after-sale service. Our company has always been striving to provide clients with the
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
complete equipment of gas turbine power station and the efficient total solutions.
Thirdly, the Company has established strategic co-operations with main customers in the country. Further
marketing approaches were carried on by involving itself in the customers’ value. A sound and steady image
has been set up in the domestic steam turbine market. In the global market, the Company has acquired
multiple important certifications and has established a primary global recognition.
Fourthly, the Company has its complete service providing system. The Company is not only capable to
provide onsite 24-hour service for the Company’s own products, but also accumulated rich experiences in
technical maintenance and reengineering of other manufacturers’ products.
Fifthly, the Company has cultivated a significant advantage in human resources. Great importance has been
attached to construction of work teams with collection of high-end workforce in the areas of research &
development, At the same time, our company values the cooperation with universities. “Zhejiang Technical
Association for Gas Turbines in Equipment Manufacturing Industry” was officially founded jointly by our
company and Zhejiang University and other scientific research institutions to build a new platform for
integration of production and research in terms of gas turbine technology. The Company has cultivated a
significant advantage in human resources. Great importance has been attached to construction of work teams
with collection of high-end workforce in the areas of research & development, designing, technique, testing,
and quality control. An excellent workforce provides a sound foundation to lift quality and services.
III.Main business analysis
Found more in”I. Main businesses of the Company in the reporting period”
(1)Changes in the financial data
In RMB
Same period last
This report period YOY change（%） Cause change
year
Turnover 3,075,980,333.58 3,163,901,368.82 -2.78%
Operating cost 2,228,055,203.58 2,301,413,650.95 -3.19%
Sale expenses 78,219,071.00 81,428,615.21 -3.94%
Administrative expenses 368,654,248.66 362,418,957.99 1.72%
Mainly due to the year-on-
Financial expenses -13,717,612.11 -792,306.07 -1,631.35% year increase in net foreign exc
hange gains.
Mainly due to the increase in
Income tax expenses 65,447,951.68 95,352,843.14 -31.36% deferred income tax fees in the
same period of last year.
Mainly due to the decrease in
R & D Investment 139,161,056.99 191,842,559.91 -27.46%
the number of R & D units
Cash flow generated by
164,877,823.29 168,326,218.43 -2.05%
business operation, net
mainly due to the year-on-
Net cash flow generated by year decrease in the net amount
429,088,988.42 -119,526,132.39 458.99%
investment of wealth management purchas
ed.
Net cash flow generated by
-534,111,260.71 -453,452,750.40 -17.79%
financing
mainly due to the year-on-
Net increasing of cash and year decrease in the net amount
72,879,205.50 -407,895,899.36 117.87%
cash equivalents of wealth management purchas
ed.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Significant changes in the profit structure or profit source of the Company during the reporting period
□ Applicable √ Not applicable
None
Component of Business Income
In RMB
This report period Same period last year Changed over last
Amount Proportion Amount Proportion year（％）
Total operating
3,075,980,333.58 100% 3,163,901,368.82 100% -2.78%
revenue
On Industry
Boiler and power
machine 2,423,540,620.08 78.79% 2,920,532,858.80 92.31% -17.02%
manufacture
Other 652,439,713.50 21.21% 243,368,510.02 7.69% 168.09%
On product
Industrial steam
2,186,458,154.12 71.08% 2,572,309,880.32 81.30% -15.00%
turbine
Part 224,265,413.90 7.29% 304,313,026.69 9.62% -26.30%
Complete sets of
waste heat power 12,817,052.06 0.42% 43,909,951.79 1.39% -70.81%
stations
Engineering
472,619,398.20 15.36% 107,166,884.70 3.39% 341.01%
service
Other 179,820,315.30 5.85% 136,201,625.32 4.30% 32.03%
On Area
Domestic 2,965,087,190.38 96.39% 3,046,838,020.50 96.30% -2.68%
Overseas 110,893,143.20 3.61% 117,063,348.32 3.70% -5.27%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease
Increase/decrease
Gross of business cost of gross profit rate
of revenue in the
Turnover Operation cost profit over the same over the same
same period of the
rate(%) period of previous period of the
previous year(%)
year (%) previous year (%)
On Industry
Boiler and
power
2,423,540,620.08 1,725,440,388.44 28.80% -17.02% -18.00% 0.85%
machine
manufacture
On product
Industrial
steam 2,186,458,154.12 1,520,693,071.58 30.45% -15.00% -21.53% 5.79%
turbine
On Area
Domestic 2,965,087,190.38 2,121,956,397.15 28.44% -2.68% -4.05% 1.03%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
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Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
□ Applicable √ Not applicable
Reasons for Y-o-Y relevant data with over 30% changes
√ Applicable □ Not applicable
IV. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Sustainabl
Proportion in total
Amount Explanation of cause e (yes or
profit
no)
Mainly due to the transfer of deferred inco
Other income 25,736,741.41 5.67% ——
me and government grant income.
Mainly due to confirmation of the dividends
Investment income 120,433,048.90 26.53% of Hangzhou Bank and the investment inco ——
me of wealth management products.
Mainly due to the compensation income rec
Non-operating income 44,565,419.80 9.82% ognized for the termination of the contract o ——
f the long-cycle unit in the current period.
Non-operating expenses 4,365,148.35 0.96% Mainly due to compensation payments. ——
V. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of same period of last
End of Reporting period
year Change in Reason for
As a percentage percentage(%) significant change
Amount
of total assets(%)
Monetary fund 1,620,500,753.16 10.32% 1,622,883,247.79 9.94% 0.38% ——
Accounts
1,873,526,814.67 11.93% 1,997,950,120.70 12.24% -0.31% ——
receivable
Contract assets 842,368,816.31 5.36% 583,026,649.99 3.57% 1.79% ——
Inventories 2,391,047,743.93 15.22% 3,041,643,747.35 18.64% -3.42% ——
Real Estate
6,677,732.31 0.04% 6,903,986.07 0.04% 0.00% ——
investment
Long-term equity
0.00% 0.00% 0.00% ——
investment
Fixed assets 1,902,319,122.21 12.11% 1,658,423,191.83 10.16% 1.95% ——
Construction in
292,774,103.05 1.86% 517,835,956.11 3.17% -1.31% ——
process
Using right assets 26,443,529.73 0.17% 30,437,778.92 0.19% -0.02% ——
Short-term-
191,300,000.00 1.22% 250,065,920.45 1.53% -0.31% ——
Borrowing
Contract
2,415,706,673.37 15.38% 3,052,515,293.06 18.70% -3.32% ——
liabilities
Long-term
185,305,333.33 1.18% 180,830,007.55 1.11% 0.07% ——
borrowing
Lease liabilities 21,143,942.83 0.13% 22,575,754.77 0.14% -0.01% ——
2. Major overseas assets
□ Applicable √ Not applicable
15
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
3.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
16
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
In RMB
Impairme
nt
Amount at year Gain/loss on fair Cumulative fair Purchased amount
provisions Sold amount in the
Items value change in the value change in the reporting Other changes Amount at year end
in the reporting period
beginning reporting period recorded into equity period
reporting
period
Financial assets
Financial assets
1.Transactional financial
assets（Excluding
960,645,259.82 -426,791.66 -650,751.64 912,000,000.00 1,370,000,000.00 502,218,468.16
Derivative financial
assets）
2. Derivative financial
assets
3.Other creditor's rights
investment
4.Other Equity
3,485,440,140.92 587,250,444.96 3,681,736,545.88 4,072,690,585.88
Instrument Investment
5.Other non-current
14,792,533.96 3,888,000.00 -2,992,000.00 18,680,533.96
financial assets
6. Receivable financing 816,653,211.21 -143,124,005.24 673,529,205.97
Subtotal of financial
5,277,531,145.91 590,711,653.30 3,678,093,794.24 912,000,000.00 1,370,000,000.00 -143,124,005.24 5,267,118,793.97
assets
Total of the above 5,277,531,145.91 590,711,653.30 3,678,093,794.24 912,000,000.00 1,370,000,000.00 -143,124,005.24 5,267,118,793.97
Financial Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other changes
1. Other changes in receivables financing are the decrease in the amount of bank acceptance;
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
17
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
4. Restricted asset rights as of the end of this Reporting Period
In RMB
Items End of Book value Reason
Monetary fund Utilized for issuing bank acceptance bill
80,082,579.59
and L/G
Note receivable 19,532,735.62 Utilized for issuing bank acceptance bill
Fixed assets Utilized for pledging to obtain the bank
96,504,589.40
loan
Utilized for pledging to obtain the bank
Intangible assets 52,745,671.68
loan
Receivable financing 85,446,533.12 Utilized for issuing bank acceptance bill
Total 334,312,109.41
VI. Analysis on investment Status
1. General
√ Applicable □ Not applicable
Investments made in same period of last
Investments made in the reporting period +/- %
year
102,013,987.50 847,224,756.75 -87.96%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □ Not applicable
18
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
In RMB
Accrued Reasons for not
Accrued Actual Realized Reaching the
New General Investment Project
Self- Investment Amount Capital Anticipated Income up to Planned Disclosure Disclosure
plant Yes equipment amount in this schedul
built up to the End of Source income the End of Schedule and date Index
project manufacturing reporting period e
Reporting Period Reporting Anticipated
Period Income
New General
Self- Self
plant Yes equipment 15,603,749.15 1,479,293,743.21 96.77% 0.00 0.00 No
built fund
project manufacturing
Total -- -- -- 15,603,749.15 1,479,293,743.21 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Purcha Sale
Book value Gain/lo Book value
Mode of Changes in Cumulative se amou
Security Stock Initial balance at the ss of balance at the
Securit accounting fair value of fair value amount nt in Accounti Sauce of
categor Abbreviatio investment beginning of the end of the
y code measureme the this changes in in the the ng items the shares
y n: cost the reporting reportin reporting
nt period equity this this
period g period period
period period
Other
Domest equity
ic and 60092 Hangzhou 390,954,040. 3,485,440,140. 587,250,444. 3,681,736,545. 4,072,690,585. Instrumen
FVM 0.00 0.00 0.00 Self funds
foreign 6 Bank 00 92 96 88 88 t
stocks investme
nt
Domest Financial
Debt
ic and 00091 LUTIANH assets
2,869,219.80 FVM 2,645,259.82 -426,791.66 -650,751.64 0.00 0.00 0.00 2,218,468.16 restructuri
foreign 2 UA transactio
ng
stocks n
393,823,259. 3,488,085,400. 586,823,653. 3,681,085,794. 4,074,909,054.
Total -- 0.00 0.00 0.00 -- --
80 74 30 24 04
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
19
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the
Company
In RMB
Leading
Company Company Registered Operating Operating
products and Total assets Net assets Net Profit
Name type capital Income profit
services
Hangzhou
Steam
Turbine Subsidiarie Manufacturin 315,044,411.7 336,182,737.3 41,400,696.0 34,709,082.9
80,000,000.00 728,549,788.27
Auxiliary s g 4 8 1 7
Machine
Co., Ltd.
Zhejiang
Steam
Turbine
Subsidiarie Commerce & 103,478,849.9 112,095,739.6
Packaged 51,000,000.00 282,031,245.43 9,802,087.00 8,309,079.41
s trade 2 1
Technology
Developmen
t Co., Ltd.
Hangzhou
Steam
Turbine
Subsidiarie Manufacturin 179,320,966.1 140,387,285.6 51,998,991.2 42,417,894.0
Machinery 30,000,000.00 319,558,840.68
s g 2 2 6 3
&
Equipment
Co., Ltd.
Zhejiang
Turbine
Subsidiarie Commerce & - -
Import & 20,000,000.00 124,825,192.99 60,667,007.30 40,483,907.49
s trade 1,234,439.69 1,312,072.17
Export Co.,
Ltd.
Hangzhou
Zhongneng
Steam Subsidiarie Manufacturin 1,827,861,499.2 638,303,050.6 14,569,636.4 13,886,432.7
92,500,000.00 74,576,545.96
Turbine s g 8 4 9 1
Power Co.,
Ltd.
Hangzhou Subsidiarie Manufacturin 29,500,000.00 622,200,645.48 301,209,324.8 189,427,305.7 7,684,097.87 6,513,497.00
20
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Steam s g 2 2
Turbine
Casting Co.,
Ltd.
New Energy Subsidiarie Construction 500,000,000.0 112,883,055.5
488,501,822.76 84,133,744.66 8,112,076.90 5,704,205.43
Company s business 0 0
Sales Subsidiarie Traffic
5,000,000.00 114,936,116.14 48,318,110.47 84,196,003.00 6,636,402.21 4,650,020.23
Company s business
China
mechanical
Subsidiarie Commerce &
and 1,000,000.00 2,808,420.39 2,802,241.23 1,373,226.00 18,044.65 18,044.65
s trade
Electrical
Institute
Ranchuang Subsidiarie Commerce &
24,250,000.00 37,765,465.35 24,910,249.37 0.00 -51,387.65 -51,387.65
Company s trade
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
IX．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X. Risks facing the Company and countermeasures
1. Market risks
The domestic steam turbine industry has excess capacity and intensified market competition. The national goal
of "carbon emission peak and carbon neutrality" will have a profound impact on the high-emission industries
represented by petrochemical, steel, electric power and building materials, and the sales of the company's
products will be further impacted. Relying on technological innovation, the company will actively highlight the
core technology advantages, expand the marketing channels, improve the product quality, enhance the end
service capabilities, continuously increase the added-value of products and vigorously tap into the potential
demands to positively respond to the market and defuse the market risks.
2. Contract execution risk
As the market volatility becomes more intensified, there are more frequent changes in the contract during
the execution of the contract for the company, and delays and suspensions of the project schedule happen from
time to time, which will have a large impact on the internal realization process of production of the company,
and meanwhile it also increases the cost of the company’s contract performance and the contract risk. The
company will further strengthen the connection between production and sales, improve the speed and level of
the company's response to the market, and well control the contract execution risk.
3. Accounts receivable risk
With the increasing risk in the business downturns and investment projects in some customers of the
downstream industry, the company's receivables recovery has more risk, and the average age of accounts tends
to increase, which will have a large impact on the company's operating results. The company will implement the
customer credit management, strengthen the contract signing and perform the risk control, increase the
assessment of accounts receivable, and reduce the adverse impact of overdue receivables.
4. Exchange rate risk
The expansion of the company's international procurement and international sales business will cause the
company's international balance of payments to be affected by exchange rate fluctuations, and there is a certain
21
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
risk of exchange loss. With the increase in the two-way volatility of the RMB exchange rate, the uncertainty of
foreign exchange gains and losses has been increased. The company will refer to the exchange rate volatility
cycle and adopt appropriate exchange rate risk management tools to minimize exchange loss.
5. The company's profitability decline risk
As domestic raw materials and labor costs continue to rise, while the prices of industrial products continue to
fall, the profitability of products is facing a severe test. The company will strive to improve internal management,
improve project cost management ability, reduce procurement costs and operation and management costs,
improve operational efficiency, and strive to resolve the risk of declining profitability.
6. Overseas market risk
During the "fourteenth Five-Year Plan" period, the company will vigorously implement the "go global"
strategy, further expand overseas target markets, and increase the company's share and influence in the
international market. However, at present, the overseas target market is affected by geopolitical conflicts,
unpredictable changes of internal political and economic situation and trade barrier policies in the region, thus
there is great uncertainty in the implementation of overseas market strategies. The company will increase
market research efforts, actively demonstrate countermeasures, and explore the development path of business
localization.
7. Impact of the pandemic:
The global threat of COVID-19 pandemic will continue, and economic development remains uncertain. If the
pandemic worsens, the adverse impact on the company's business development will increase accordingly, and the
implementation of the contracted projects undertaken by the company will also be affected to some extent. The
company will constantly adapt and reduce the adverse effects brought by the pandemic according to the
development and changes of the pandemic.
IV. Corporate Governance
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to
Meeting Type participation Convened date Disclosure date disclosed
ratio information
Provisional
The First provisional General Announcement
Shareholders’ 67.37% January 7,2022 January 8,2022
Meeting of 2022 No.:2022-02
general meeting
Provisional
The Second Provisional Announcement
Shareholders’ 68.46% February 18,2022 February 9,2022
Shareholders’ general of 2022 No.:2022-07
general meeting
Annual
Annual General Meeting of Announcement
Shareholders’ 67.76% April 27,2022 April 28,2022
2021 No.:2022-47
general meeting
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□ Applicable √ Not applicable
22
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
April
Lu Jianhua Supervisor Left Retire
27,2022
Zhu April
Supervisor Elected Supplement
Chenqian 27,2022
Deputy General May
Li Jiansheng Left Due to company needs
Manager 11,2022
Deputy General May
Li Binghai Appointed Due to company needs
Manager 11,2022
Chen July
Independent director Left Served as an independent director of the company for 6 years
Danhong 25,2022
July
Gu Xinjian Independent director Left Served as an independent director of the company for 6 years
25,2022
July
Jin Yingchun Independent director Elected Supplement
25,2022
July
Xu Yongbin Independent director Elected Supplement
25,2022
July
Yao Jianhua Independent director Elected Supplement
25,2022
III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
□ Applicable √ Not applicable
The Company planned not to distribute cash dividend and bonus share, and not to convert capital reserves into
share capital in half year.
IV. Implementation of any equity incentive plan, employee stock ownership plan or other incentive
measures for employees
√ Applicable □Not applicable
1. Equity incentive
(I) On July 11, 2021, the 14th Meeting of the Eighth Board of Directors reviewed and approved the Proposal
on the Company's Restricted Stock Incentive Plan (Draft) in 2021 and its Summary, the Proposal on the
Company's Implementation Assessment Management Measures for the Restricted Stock Incentive Plan in 2021,
and the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to
Handle Matters Related to the Restricted Stock Incentive Plan in 2021, and the Ninth Meeting of the Eighth
Supervisors of the Company reviewed and approved the above related proposals. The Company disclosed related
announcements such as the Restricted Stock Incentive Plan (Draft) and its Summary in 2021, the Implementation
Assessment Management Measures for the Restricted Stock Incentive Plan in 2021, the Incentive Object List of
the Restricted Stock Incentive Plan in 2021, the Self-inspection Form of Equity Incentive Plan, and the Legal
Opinions of Shanghai Allbright Law Offices on the 2021 Restricted Stock Incentive Plan of Hangzhou Steam
Turbine Co., Ltd.
Independent directors of the Company expressed their independent opinions on whether the equity incentive
23
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
plan is conducive to the sustainable development of the Company and whether there is any harm to the interests of
the Company and all shareholders.
(II) On August 12, 2021, the Company disclosed the Announcement on the Approval of Equity Incentive
Plan by Hangzhou SASAC. The Company received the Reply of Hangzhou Steam Turbine Co., Ltd. on
Implementing the Restricted Stock Incentive Plan in 2021 (HGZK [2021] No.45), and Hangzhou SASAC
agreed in principle that the Company should implement the restricted stock incentive plan in 2021.
(III)From July 12, 2021 to July 21, 2021, the company will post the "Announcement of the Company&apo
s;s 2021 Restricted Stock Incentive Objects" through the company's business premises, publicizing the na
mes and positions of the incentive objects, and clarifying the circumstances under which they cannot become eq
uity incentive objects. , as well as the ways and means of feedback during the publicity period. As of the expir
ation of the publicity period, the company has not received any objection from any organization or individual to
the incentive objects of this incentive plan.
On August 23, 2021, the Company disclosed the Publicity and Verification Opinions of the Board of
Supervisors of the Company on the List of Incentive Objects of Restricted Stock Incentive Plan. The Board of
Supervisors of the Company believes that the incentive objects listed in this incentive plan comply with the
Administrative Measures, Trial Measures, Notice and other laws, regulations, normative documents and the scope
and conditions of incentive objects stipulated in the Incentive Plan (Draft), and there is no circumstances that
forbids to be incentive objects, and its qualification as the incentive objects of this incentive plan is legal and
effective.
On August 23, 2021, the Company disclosed the Independent Financial Advisor's Report of CITIC
Securities Co., Ltd. on the Restricted Stock Incentive Plan (Draft) in 2021 of Hangzhou Steam Turbine Co., Ltd.
(IV) On August 27, 2021, the Company held the Second provisional Shareholders' General Meeting in 2021,
which reviewed and approved the Proposal on the Company's Restricted Stock Incentive Plan in 2021 and its
Summary, the Proposal on the Company's Implementation Assessment Management Measures for the Restricted
Stock Incentive Plan in 2021, and the Proposal on Requesting the General Meeting of Shareholders to Authorize
the Board of Directors to Handle Matters Related to the Restricted Stock Incentive Plan in 2021.
Meanwhile, the Company disclosed the Self-inspection Report on Insider Information of Restricted Stock
Incentive Plan in 2021 and Stock Trading of Incentive Objects.
(V) On August 30, 2021, the Company convened the 16th Meeting of the Eighth Board of Directors and the
11th Meeting of the Eighth Board of Supervisors, and respectively reviewed and approved the Proposal on
Granting Restricted Stocks to Incentive Objects for the First Time. The Board of Directors of the Company
considered that the granting conditions of restricted stocks stipulated in this incentive plan had been fulfilled, and
agreed to grant 18.17 million restricted stocks to 457 incentive objects who meet the granting conditions on
September 1, 2021 for the first time, at a price of HK$ 6.825 per share. The Board of Supervisors of the Company
verified the list of incentive objectives again and issued a clear consent opinion. Independent directors of the
Company expressed their agreed independent opinions on this.
(VI) On October 22, 2021, the Company completed the registration of granting restricted shares for the first
24
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
time, with 455 people registered for the first time and 18,060,000 shares registered.
(VII) On December 16, 2021, the 20th Meeting of the 8th Board of Directors and the 13th Meeting of 8th
Board of Supervisors of the Company reviewed and approved the Proposal on Granting Reserved Restricted
Shares to Incentive Objects.. it is agreed that December 16, 2021 will be reserved for granting restricted shares,
and 1,380,000 restricted shares will be granted to 37 eligible incentive objects at a grant price of HK$ 6.825 per
share. Independent directors of the Company expressed independent opinions on relevant proposals of the Board
of Directors
（VIII) On January 14, 2022, the Company completed the registration of reserved grant of restricted shares,
with 37 registered shareholders reserved and 1,380,000 registered shares.
2. Implementation of the ESOP plan
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
25
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
Name of company Reasons for Violation Penalty Impact on the production and Company's
or subsidiary punishment situation result operation of listed companies rectification measures
Not Not Not
Not applicable Not applicable Not applicable
applicable applicable applicable
Other Environmental Information That Should Be Disclosed
None
Administrative penalties for environmental problems during the reporting period
√ Applicable □Not applicable
1. Focusing on the construction of energy system management and creating a low-carbon energy system
framework. Based on the current situation of energy use management, the Company had successively
formulated (revised) a number of energy use management rules and regulations, starting from the system level
and gradually promoting the construction of the Company's low-carbon energy system basic framework.
2. Focusing on energy data monitoring and analysis, and leading the quantitative management of low-
carbon energy. The Company adhered to the normalization of energy data monitoring and analysis, took energy
quantitative management as the means, focused on energy analysis and research, and effectively provided
scientific guidance for the Company to effectively promote the management of low-carbon energy use.
3. Focusing on the improvement of energy business training and strengthening the level of low-carbon
energy management. The Company had organized and carried out a number of energy use management
business trainings, which’s based on the "three lows and one high" guiding strategy of "low energy
consumption, low emissions, low cost, and high efficiency", thus effectively promoted the overall improvement
of the Company's energy management personnel.
4. Focusing on the transformation of energy technology projects and centering on low-carbon energy
technology to save energy. The Company vigorously planed and promoted the implementation of a series of
energy-saving, emission-reduction and efficiency-increasing projects such as "12MWp Distributed Photovoltaic
Power Generation Project in Manufacturing Base", "Study on Recovery and Utilization of Waste Heat from
Steam Turbine Commissioning", "DCS Reconstruction Project of Final Assembly and Test Station", "Project of
Installing Natural Gas Meters in Rotor Workshop", and "Lifting equipment daily management improvement
lean project", fully utilized various low-carbon energy-saving technologies and processes to inject strong
impetus into the Company’s focus on the goals of green development. The Company explored and promoted the
construction of the "integrated energy smart platform", and promoted the fundamental transformation of the
low-carbon and energy-saving management mode through the Company's integrated energy online whole-
process monitoring, carbon emission whole-process monitoring and other means.
Reasons for no other environmental information being disclosed
Neither the company nor its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department. The company has formulated and perfected the environmental
management systems and control procedures for various types of waste water, waste gas, waste slag, and noise
in accordance with relevant environmental laws and regulations and relevant standards promulgated by the
national and local governments. The company has imported ISO14001 environmental management system since
2006 and the system has been operated effectively for more than ten years. Currently, the company has adopted
26
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
the clean production management and launched the clean production audits, which not only reduces
consumption and increases efficiency, but also reduces the pressure and cost of end-of-pipe management
The company's environmental management system has been in operation for many years, and it has been
strictly abiding by the relevant laws and regulations of the state and the principle of continuous improvement.
Each year, the company formulates the annual environmental protection goals and formulates the environmental
management plans. The company also has a complete and effective management system for waste water, waste
gas, waste residue and noise and other waste management. Over the years, there has been no incident of
environmental pollution and emissions exceeding the standard.
II. Social responsibilities
With "driving industrial civilization and sustaining China's power" as its business mission, the company
leads the its reform and development with the development concept of "innovation, coordination, green,
openness and sharing". While standardized operation and operation according to law, it strives to shoulder due
social responsibilities and promote the harmonious development of the company, shareholders, investors,
employees, suppliers, customers, consumers and the whole society.
(1) While the company is committed to long-term development and realization of shareholder value, it pays
attention to the natural environment and resources, and undertakes corresponding responsibilities to
shareholders, employees, customers, suppliers, communities and other relevant stakeholders to realize the
harmony, coordination and unity of sustainable development between the company and society.
(2) The company has formulated the "social responsibility management standard", which defines the
company's responsibilities and standard requirements in protecting shareholders and creditors, protects the
interests of employees, ensures safety in production, environmental protection, energy conservation and
emission reduction, and social welfare undertakings, and defines the importance of social responsibility.
(3) The company has further strengthened the protection of the rights and interests of small and medium-
sized investors, strengthened the management of investor relations, and established communication channels in
all aspects. For news affecting major changes in the company's stock price, the company has actively verified
the information content to clarify the facts, and issued announcements when necessary to announce the actual
situation of the company, so as to protect the legitimate rights and interests of small and medium-sized investors.
(4) The company treats suppliers and users in good faith and always maintains good commercial credit and
excellent contract performance level. The company has established a strategic cooperation relationship with
suppliers, set up a convenient information communication platform, and continuously improved the level of
cooperation between the two parties. The company provides customers with high-quality products and
professional services, as well as personalized business solutions adapted to different environments, which are
well received by customers.
(5) The company actively promotes the professional development of employees, continuously improves the
professional environment of employees, and protects the physical and mental health of employees. The
company has a number of highly skilled talents such as national technical experts and provincial and municipal
technical competition pacesetters, and has set up a number of skilled master studios in the production line to
create a golden blue collar team in modern manufacturing. The company has further raised the level of medical
expenses subsidies for employees, and provided health insurance and cancer prevention insurance for
employees. Throughout the year, the company has continuously carried out group cultural activities, expanded
the venues for cultural and sports activities for employees, supported employees to spontaneously establish
various cultural organizations, and created a dynamic enterprise atmosphere.
(6) The company attaches great importance to environmental protection and energy conservation and
emission reduction. The company has set up special assessment indicators to strictly regulate all kinds of
27
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
environmental behaviors in the business process. It strengthens the management of hazardous wastes and
strictly controls the transfer and storage of hazardous wastes. The company's safe disposal rate of hazardous
wastes has reached 100%. During the reporting period, the company's emission tests including waste water,
waste gas, noise and other items all met the national standards. The company has formulated energy
consumption control indicators for various departments, incorporated energy consumption indicators into the
annual assessment system, vigorously carried out energy-saving publicity, regularly organized energy-saving
inspections, and implemented a number of energy-saving renovation projects. The total comprehensive energy
consumption for the whole year decreased significantly year on year.
（7）The Company continued to support and carried out public welfare undertakings. During the reporting
period, it actively responded to the call of the Hangzhou Municipal Party Committee and the Municipal
Government for the "Spring Breeze Action", played a leading and exemplary role as a caring enterprise, and
donated 500,000 yuan to the "Spring Breeze Action".
VI. Important Events
I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of
the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □ Not applicable
Time of making
commitment Period of
Commitment Fulfillment
Commitment Type Contents commitment
maker
Hangzhou
Steam Turbine Commitment
Holdings Co., to the transfer
Other Ltd., target
http://www.cninfo.com.cn
commitments Hangzhou company's November Under
(Announcement No.: 2021-101
made to minority Steam Turbine accounts 16,2021 Fulfillment
and 2021-102)
shareholders Technology receivable
Co.,Ltd. and recovery and
other other matters
transferors
Executed timely
Yes
or not?
If the
commitments
failed to complete
the execution
when expired,
should
Not applicable
specifically
explain the
reasons of
unfulfillment and
the net stage of
the working plan
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
28
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
No such cases in the reporting period.
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the reporting period.
IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report of the Company has not been audited
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of
directors and supervisory board
□ Applicable √ Not applicable
VI. Notes for the related information of “non-standard audit reports” last year by board of directors
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Litigations and arbitrations
Significant litigations and arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other lawsuits
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
X. Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable √ Not applicable
29
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
XI.Material related transactions
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
No such cases in the reporting period.
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
√ Applicable □ Not applicable
Whether there is any non-operating related creditor's rights and debts
√ Yes □ No
Creditor's rights receivable from related parties
Whether New Amount
there is any Opening amount in recovered in Current Ending
Related Related occupation balance current the current interest balance
Cause Interest rate
party association of non- (RMB period period (RMB (RMB
operating '0,000) (RMB (RMB '0,000) '0,000)
funds '0,000) '0,000)
Debt payable to related parties
New Repayment
Opening amount in amount in Current Ending
Related Related balance current current interest balance
Cause Interest rate
party association (RMB period period (RMB (RMB
'0,000) (RMB (RMB '0,000) '0,000)
'0,000) '0,000)
Hangzhou
Steam
Controlling Borrowing
Turbine 24,000 404.38 12,583.56 3.85% 404.38 11,820.82
shareholder funds
Holdings
Co., Ltd.
Influence of related debt
on the Company's
No significant impact on the company's operating results and financial status
operating results and
financial status
5. Transactions with related finance company, especially one that is controlled by the Company
□Applicable √ Not applicable
No such cases in the reporting period.
30
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
6. Transactions with related finance company controlled by the Company
□ Applicable √ Not applicable
No such cases in the reporting period.
7. Other significant related-party transactions
□ Applicable √ Not applicable
No such cases in the reporting period.
XII. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
√ Applicable □ Not applicable
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Guarant
disclosur Date of
Counter ee
e happenin Actual
Amount Guaran - Complete for
Name of date/No. g mount
of Guarant guarant Guarant implementati associat
the of (Date of of ty（If
Guarant ee type ee term on ed
Company the signing guarant any） ee（If
ee or not parties
guarante agreeme ee any） (Yes or
ed nt)
no)
amount
Guarantee of the Company for the controlling subsidiaries
Relevant Date of Actual Counter Guarant
Amount Guaran Complete
Name of disclosur happenin mount - ee
of Guarant Guarant implementati
the e g of ty（If for
Guarant ee type guarant ee term on
Company date/No. (Date of guarant any） associat
ee ee（If or not
of signing ee ed
31
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
the agreeme any） parties
guarante nt) (Yes or
ed no)
amount
Two
Zhejiang
years
Steam
from the
Turbine The
date of
Packaged April joint
5,000 expirati No No
Technolog 24,2021 liability
on of
y guaranty
the
Developme
principa
nt Co., Ltd.
l debt
Three
years
from the
The
Hangzhou Novemb date of
October joint
Zhongneng er 16,800 16800 expirati No No
31,2021 liability
Company 4,2021 on of
guaranty
the
principa
l debt
Three
years
Hangzhou from the
The
Steam date of
January March joint
Turbine 30,000 6645.99 expirati No No
26,2022 15,2022 liability
New on of
guaranty
Energy the
principa
l debt
Total of actual
Total of guarantee for
guarantee for
subsidiaries approved 30,000 6,645.99
subsidiaries in the
in the period(B1)
period (B2)
Total of actual
Total of guarantee for
guarantee for
subsidiaries approved 51,800 23,445.99
subsidiaries at
at period-end(B3)
period-end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Guarant
disclosur Date of
Counter ee
e happenin Actual
Amount Guaran - Complete for
Name of date/No. g mount
of Guarant guarant Guarant implementati associat
the of (Date of of ty（If
Guarant ee type ee term on ed
Company the signing guarant any） ee（If
ee or not parties
guarante agreeme ee any） (Yes or
ed nt)
no)
amount
Two
years
Hangzhou
from the
Guoneng The
date of
Steam July July 3,897. joint
7,000 expirati No No
Turbine 20,2021 20,2021 1 liability
on of
Engineerin guaranty
the
g Co., Ltd.
principa
l debt
Two
Hangzhou years
Guoneng The from the
Steam July July 1,188. joint date of
5,000 No No
Turbine 20,2021 20,2021 22 liability expirati
Engineerin guaranty on of
g Co., Ltd. the
principa
32
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
l debt
Two
years
Hangzhou
from the
Guoneng The
date of
Steam July July 3,182. joint
5,000 expirati No No
Turbine 20,2021 20,2021 64 liability
on of
Engineerin guaranty
the
g Co., Ltd.
principa
l debt
Total amount of
Total guarantee quota guarantee to the
to the subsidiaries subsidiaries
0
approved in the actually incurred in
reporting period (C1) the reporting period
(C2)
Total balance of
Total guarantee quota
actual guarantee to
to the subsidiaries
the subsidiaries at
approved at the end of 17,000 8,267.96
the end of the
the reporting period
reporting period
(C3)
(C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual
Total of guarantee in
guarantee in the
the Period 30,000
Period 6,645.99
（A1+B1+C1）
（A2+B2+C2）
Total of guarantee at Total of actual
Period-end 70,800 guarantee at Period- 31,713.95
（A3+B3+C3） end A4+B4+C4）
Including
3.Situation of Entrusted Finance
√ Applicable □Not applicable
In RMB10，000
Source of funds The Occurred
for entrusted Amount of Un-recovered of
Specific type Undue balance Amount overdue
financial Entrusted Wealth- overdue amount
management management
Bank financial
Self fund 103,000 50,000 0 0
products
Total 103,000 50,000 0 0
The detailed information of entrusted wealth-management with significant amount or low safety, poor liquidity
or high risk with no promise of principal
□ Applicable √ Not applicable
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that
may result in impairment
□ Applicable √ Not applicable
4. Other significant contract
□Applicable √ Not applicable
No such cases in the reporting period.
33
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
XIII. Explanation on other significant events
√ Applicable □Not applicable
1. In order to meet the working capital required by the Company's wholly-owned subsidiary Hangzhou Steam
Turbine New Energy Co., Ltd to expand the new business market and promote the Company's strategic
transformation from manufacturing to manufacturing services, the Company planned to increase the registered
capital of 300 million yuan to the new energy company, the capital increase would be in place in batches
according to the actual business growth of the new energy company. After this capital increase was completed,
the registered capital of the new energy company would increase from 200 million yuan to 500 million yuan.
On March 22, 2022, the Company held the twenty-second meeting of the eighth sessionof board of directors to
consider and approve the "Proposal on Increasing Capital to New Energy Company", which did not need to be
submitted to the general meeting of shareholders for deliberation. For details, please refer to the Company
Announcement-Announcement No: 2022-11.
XIV. Significant event of subsidiary of the Company
√ Applicable □Not applicable
1. Hangzhou Zhongneng Steam Turbine Power Co., Ltd, a holding subsidiary of the Company, intended to
realize capital increase and share expansion by introducing strategic investment and simultaneously
implementing employee stock ownership in order to further improve its corporate governance structure, fully
mobilize the enthusiasm of employees, and meet the funds needs of production and operation development such
as capacity expansion, industrial chain extension, and talent introduction. The registered capital would be
increased from 92.5 million yuan to 120 million yuan, a capital increase by 27.5 million yuan.On March 22,
2022, the Company convened the 22nd meeting of the eighth session of board of directors to consider and
approve the "Proposal on Capital Increase and Share Expansion of Zhongneng Company", which did not need
to be submitted to the general meeting of shareholders. For details, please refer to the Company's
Announcement, with announcement No: 2022-10.
VII. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalization of
Share Bonus
common reserve Other Subtotal Quantity Proportion
allotment shares
fund
1.Shares with
conditional 479,824,800 63.64% 0 143,947,440 0 0 143,947,440 623,772,240 63.64%
subscription
1. Founder's
479,824,800 63.64% 0 143,947,440 0 0 143,947,440 623,772,240 63.64%
stock
Including：
State-owned 479,824,800 63.64% 0 143,947,440 0 0 143,947,440 623,772,240 63.64%
shares
34
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
II.Shares with
unconditional 274,185,600 36.36% 0 82,222,140 0 0 82,222,140 356,407,740 36.36%
subscription
2.Foreign
shares in
274,185,600 36.36% 0 82,222,140 0 0 82,222,140 356,407,740 36.36%
domestic
market
III. Total of
754,010,400 100.00% 0 226,169,580 0 0 226,169,580 980,179,980 100.00%
capital shares
Causes of Change of shares
√ Applicable □Not applicable
The Company's share changes during the reporting period were caused by the implementation of the 2021 profit
distribution plan. The Company's 2021 profit distribution plan was to distribute a cash dividend of 4.0 yuan (tax
included) and 3 bonus shares (tax included) for every 10 shares and no shared converted by reserveto all
shareholders based on the total share capital of 754,010,400 shares at the end of 2021 after excluding the
Company's repurchased 111,800 treasury shares on the equity distribution record date-that was 753,898,600
shares.
Approval of change of the shares
√ Applicable □Not applicable
The Company's 2021 profit distribution plan had been reviewed and approved at the 2021 annual general
meeting held on April 27, 2022.
Ownership transfer of share changes
√ Applicable □Not applicable
The Company completed the 2021 profit distribution on May 26, 2022. Before the dividend distribution, the
Company's total share capital was 754,010,400 shares. After the distribution, the total share capital was
increased to 980,179,980 shares.
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
35
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
In RMB
Number of
Initial Number of Increased Restricted Reason for
Shareholder Date of Restriction
Restricted Unrestricted Restricted Shares in the Restricted
Name Removal
Shares Shares This Term Shares This End of the Term Shares
Term
The limitations are lifted
Equity
according to the relevant
incentive
Zheng Bin 250,000 0 75,000 325,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Ye Zhong 250,000 0 75,000 325,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
Yang incentive
200,000 0 60,000 260,000 provisions of the 2021
Yongming restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Wang Gang 200,000 0 60,000 260,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
Kong incentive
200,000 0 60,000 260,000 provisions of the 2021
Jianqiang restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
Wang incentive
200,000 0 60,000 260,000 provisions of the 2021
Zhengrong restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Zhao Jiamao 200,000 0 60,000 260,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Li Guiwen 200,000 0 60,000 260,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Cai Weijun 200,000 0 60,000 260,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Li Shijie 0 0 260,000 260,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Other 16,268,059 0 6,349,418 22,617,477 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
Total 18,168,059 0 7,179,418 25,347,477 -- --
36
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
II. Securities issue and listing
□ Applicable √ Not applicable
37
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
III. Particulars about the shareholders and substantial controller
In shares
Total number of preferred
Total number of common shareholders at the shareholders that had restored
11108 0
end of the reporting period the voting right at the end of the
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number or
Proporti share
Non-
on of Number of Changes in Amount of pledged/froz
Shareholders Nature of shares shares held at reporting restricted
restricted en
shareholder ordinary
held period -end period shares held State
shares held Amo
（%） of
unt
share
State-owned
Hangzhou Steam Turbine Holdings Co., Ltd. 63.64% 623,772,240 143947440 623,772,240 0
legal person
GUOTAI JUNAN SECURITIES(HONGKONG) Foreign
0.81% 7,943,279 265854 0 7,943,279
LIMITED legal person
State-owned
China Merchants Securities (HK)Co., Ltd 0.71% 6,966,068 1375591 0 6,966,068
legal person
Domestic
Zhou Jie Natural 0.64% 6,250,000 1627300 0 6,250,000
person
VANGUARD TOTAL INTERNATIONAL STOCK Foreign
0.59% 5,764,789 1330336 0 5,764,789
INDEX FUND legal person
ISHARES CORE MSCI EMERGING MARKETS Foreign
0.54% 5,273,662 991580 0 5,273,662
ETF legal person
VANGUARD EMERGING MARKETS STOCK Foreign
0.52% 5,096,887 1198624 0 5,096,887
INDEX FUND legal person
Foreign
NORGES BANK 0.33% 3,268,888 754359 0 3,268,888
legal person
Domestic
Xia Zulin Natural 0.32% 3,098,060 778060 0 3,098,060
person
Domestic
Gu Yang Natural 0.21% 2,038,821 470497 0 2,038,821
person
Strategy investors or general legal person becomes top 10
Not applicable
shareholders due to rights issued (if applicable)（See Notes 3）
(1) Hangzhou Steam Turbine Holdings Co., Ltd. is the holder of state-shares
of the Company, all other shareholders’ are holders of domestic listed foreign
shares (B shares)
(2) There is no relationship between Hangzhou Steam Turbine Holdings Co.,
Explanation on associated relationship among the aforesaid Ltd. and other shareholders;
shareholders (3) Hangzhou Steam Turbine Holdings Co., Ltd. is not an “action-in-concert”
party with any of other shareholders as described by the “Administration
Rules of Informational Disclosure about Change of Shareholding Statues of
PLCs”.
Above shareholders entrusting or entrusted with voting rights, or
Not applicable
waiving voting rights
Top 10 shareholders including the special account for repurchase (if
Not applicable
any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted Share type
Name of the shareholder shares held at the end of
Share type Quantity
the reporting period
GUOTAI JUNAN SECURITIES(HONGKONG) Foreign shares placed in
7,943,279 7,943,279
LIMITED domestic exchange
China Merchants Securities (HK)Co., Ltd 6,966,068 Foreign shares placed in 6,966,068
38
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
domestic exchange
Foreign shares placed in
Zhou Jie 6,250,000 6,250,000
domestic exchange
VANGUARD TOTAL INTERNATIONAL STOCK Foreign shares placed in
5,764,789 5,764,789
INDEX FUND domestic exchange
ISHARES CORE MSCI EMERGING MARKETS Foreign shares placed in
5,273,662 5,273,662
ETF domestic exchange
VANGUARD EMERGING MARKETS STOCK Foreign shares placed in
5,096,887 5,096,887
INDEX FUND domestic exchange
Foreign shares placed in
NORGES BANK 3,268,888 3,268,888
domestic exchange
Foreign shares placed in
Xia Zulin 3,098,060 3,098,060
domestic exchange
Foreign shares placed in
Gu Yang 2,038,821 2,038,821
domestic exchange
Foreign shares placed in
Wang Yihu 2,001,956 2,001,956
domestic exchange
Explanation on associated relationship or consistent
(1)It is unknown to the Company if there is any relationship among the top 10 common
action among the top 10 shareholders of non-
share holders without restriction;
restricted negotiable shares and that between the top (2) Other shareholders do not belong to the concerted action persons as stipulated in the
Administrative Measures for Information Disclosure of Shareholding Changes of
10 shareholders of non-restricted negotiable shares Shareholders of Listed Companies
and top 10 shareholders
Notes to the shareholders involved in financing
Not applicable
securities (if any)(See Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have
no buy –back agreement dealing in reporting period.
IV. Changes in shareholdings of directors, supervisors and executive officers
√ Applicable □Not applicable
Number of Number of Number of
Number of Number of
Shares held restricted restricted d restricted
Shares held at shares shares
Working at period- shares shares shares
Name Title period- increase in decreased in
status end granted at granted at granted at
begin(share) this period this period
（share） period begin the period period end
（share） （shares）
(share) (share) (share)
Board
Zheng Bin In office 250,000 325,000 250,000 0 325,000
chairman
Ye Zhong Director, GM In office 250,000 325,000 250,000 0 325,000
Yang Vice
In office 200,000 260,000 200,000 0 260,000
Yongming Chairman
Wang Director,
In office 200,000 260,000 200,000 0 260,000
Gang Deputy GM
Kong
Deputy GM In office 200,000 260,000 200,000 0 260,000
Jianqiang
Li Deputy GM Dimission 200,000 260,000 200,000 0 260,000
39
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Jiansheng
Wang
Deputy GM In office 200,000 260,000 200,000 0 260,000
Zhengrong
Deputy
Zhao
GM,Chief In office 200,000 260,000 200,000 0 260,000
Jiamao
accountant
Deputy GM,
Li Guiwen secretary of In office 200,000 260,000 200,000 0 260,000
the board
Li Binghai Deputy GM In office 100,000 130,000 100,000 0 130,000
Chairman of
Cai the
In office 200,000 260,000 200,000 0 260,000
Weijun Supervisory
Committee
Vice Party
Secretary,
Li Shijie chairman of In office 0 260,000 0 200,000 260,000
the trade
union
Total -- -- 2,200,000 0 0 3,120,000 2,200,000 200,000 3,120,000
Note: During the reporting period, changes in the shareholdings of directors, supervisors and senior management were
caused by the Company's implementation of the 2021 annual equity distribution and bonus shares.
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
40
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
41
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
IX. Corporate Bond
□ Applicable √ Not applicable
42
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
X. Financial Report
I. Auditors’ Report
Whether the semi-annual financial report had been audited?
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd
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
43
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Use right assets 26,443,529.73 30,437,778.92
Intangible assets 273,560,374.06 277,469,707.24
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
44
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Other comprehensive income 3,128,907,574.32 2,629,477,756.99
Special reserve 17,874,910.32 18,369,033.52
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
45
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Total of assets 12,141,932,886.49 12,581,001,265.03
Current liabilities
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
46
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Interest income
Insurance fee earned
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） 266,939.11 263,724.79
47
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Other comprehensive income that will be reclassified into profit or lo
ss.
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
48
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Less：Non -operational expenses 719,961.66 81,045,992.06
III. Total profit(“-”for loss) 404,911,353.74 536,868,423.29
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
49
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 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
50
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
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
51
Hangzhou Steam Turbine Co., Ltd. The Semi-Annual Report 2022
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
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Jin Can
52
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 -
53
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
54
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
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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
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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
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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
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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
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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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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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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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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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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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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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(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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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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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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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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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.
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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
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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.
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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
80
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%.
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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.
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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：
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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
84
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
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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:
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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
87
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
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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
89
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
90
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
91
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
92
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
93
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
94
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
95
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
96
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
97
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
98
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
99
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
100
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
101
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
102
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
103
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：
104
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：
105
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.
106
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
107
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
108
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
109
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
110
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.
111
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
112
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
113
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
114
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：
115
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
116
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
117
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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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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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
120
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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
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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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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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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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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
128
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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：
129
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
130
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.
131
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
133
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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
134
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
135
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
136
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.
137
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
138
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
139
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
140
