Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Stock Code: 200771 Stock ID: Hangqilun B Announcement No.: 2023-13
Hangzhou Steam Turbine Group Co., Ltd.
2022 Financial Report
（Stock Code: 200771）
March 2023
1
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
X.Financial Report
I. Auditors' Report
Type of auditing opinion Standard report without qualified opinion
Date of signature of audit report March 27, 2023
Pan-China Certified Public Accountants (Special common
Name of the CPA
partnership)
Reference number of audit Report Tianjianshen(2023)No.:1178
Name of the certified Public Accountants Sheng Weiming, Lin Qunhui
Auditors’ Report
To the entire shareholders of Hangzhou Steam Turbine Power Group Co., Ltd.
I. Opinion
We have audited the financial statements of Hangzhou Steam Turbine Co., Ltd..(hereinafter referred to as "the
Company"), which comprise the balance sheet as at December 31, 2022, and the income statement, the statement
of cash flows and the statement of changes in owners' equity for the year then ended and notes to the financial
statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31, 2022 and its operating results and cash flows for the year then ended.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
(I) Recognition of income
1.Description of the matter
For details of the relevant information disclosure, please refer to Note xI (39) and Note X ,VII (61) in the
financial statements.
The operating income of Hangzhou Steam Turbine Co., Ltd. mainly comes from the R&D, production and
sales of industrial steam turbines and other products. In 2022, the amount of operating income items shown in the
consolidated financial statements of Hangzhou Steam Turbine Co., Ltd. was RMB 5,518.8419 million, of which
the operating income of industrial steam turbine sales business was RMB 4,569.1449 million, accounting for
82.79% of the operating income.
2
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
As operating income is one of the key performance indicators of Hangzhou Steam Turbine Co., Ltd., there
may be inherent risks that the management of Hangzhou Steam Turbine Co., Ltd. (hereinafter referred to as
management) can achieve specific goals or expectations through improper income recognition. Therefore, we
have identified revenue recognition as a key audit matter.
2. Audit Countermeasures
For revenue recognition, the audit procedures we have implemented mainly include:
(1) Understand key internal controls related to revenue recognition, evaluate the design of these controls,
determine whether they are implemented, and test the operational effectiveness of relevant internal controls;
(2) Check the sales contract, understand the main contract terms or conditions, and evaluate whether the
revenue recognition method is appropriate;
(3) Implementing substantive analysis procedures for operating income and gross profit margin according to
products and customers to identify whether there are material or abnormal fluctuations, and to identify the causes
of such fluctuations;
(4) For domestic sales income, by sampling method check the supporting documents related to revenue
recognition, including sales contracts, sales invoices, shipment bills and receipts; for export income, by sampling
method check the supporting documents including sales contracts, export declarations, freight bills of lading and
sales invoices;
(5) In conjunction with the letter confirmation of accounts receivable, the sales amount of the current period
for major customers are letter confirmed by sampling method;
(6) Implement a cut-off test on the operating income recognized before and after the balance sheet date, and
evaluate whether the operating income is recognized within an appropriate period;
(7) Obtain the sales return record after the balance sheet date, and check whether there is any situation that
the income recognition conditions are not met on the balance sheet date;
(8) Check that the information related to the operating income whether has been properly presented and
disclosed in the financial statements.
(II) Impairment of accounts receivable
1. Description of the matter
For related information disclosure, please refer to Note X,V (10) and Note x (7) of the financial statements.
As of December 31, 2022, the book balance of accounts receivable items shown in the consolidated financial
statements of Hangzhou Steam Turbine Co., Ltd. was RMB 2,914.6332 million, the bad debt provision was RMB
989.9538 million, and the book value was RMB 1,924.6794 million.
According to the credit risk characteristics of each account receivable, the management measures its loss
reserves on the basis of individual accounts receivable or a combination of accounts receivable and according to
the expected credit loss amount equivalent to the whole duration. For accounts receivable that measure expected
credit losses on a single basis, the management comprehensively considers reasonable and reliable information
about past events, current status and future economic status forecasts, estimates the expected cash flow, and
determines the provision for bad debts to be accrued accordingly; For accounts receivable whose expected credit
losses are measured on the basis of combination, the management divides the combination based on aging, refers
to historical credit loss experience, and adjusts it according to forward-looking estimation, and compiles a
comparison table between the aging of accounts receivable and loss given default, thereby determining the bad
debt reserves to be accrued.
Due to the significant amount of accounts receivable and the impairment test of accounts receivable
involving significant management judgment, we determine the impairment of accounts receivable as a key audit
matter.
2. Audit Countermeasures
For the impairment of accounts receivable, the audit procedures we have implemented mainly include:
(1) Understand the key internal controls related to the impairment of accounts receivable, evaluate the design
of these controls, determine whether they have been implemented, and test the operational effectiveness of the
relevant internal controls;
(2) Review the subsequent actual write-off or reversal of accounts receivable with provision for bad debts in
previous years, and evaluate the accuracy of the management's past forecasts;
(3) Review the management's relevant considerations and the objective evidence for the impairment test of
the accounts receivable, and evaluate whether the management fully recognizes the accounts receivable that have
been impaired;
(4) For accounts receivable that are individually tested for impairment, obtain and examine the management's
3
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
forecast on the present value of future cash flows, evaluate the rationality of the key assumptions and the accuracy
of the data used in the forecast, and verify with the external evidence obtained;
(5) For the accounts receivable that are tested for impairment using the combination method, evaluate the
rationality of the management's combination dividing according to the credit risk characteristics; based on the
historical loss rate of a combination with similar credit risk characteristics and the relevant observable data
reflecting the current situation and so on to evaluate the rationality of the management's impairment test method
(including the proportion of the provision for bad debts of each combination); test the accuracy and completeness
of the data used by the management (including the accounts receivable combination with aging as the risk
characteristics, checking the accuracy of the ageing of accounts receivable by sampling method) and test whether
the calculation of the corresponding provision for bad debts is accurate;
(6) Checking the post-payments of accounts receivable and evaluating the reasonableness of the
management's provision for bad debts of accounts receivable;
(7) Check whether the information related to the impairment of accounts receivable has been properly
presented and disclosed in the financial statements.
(III) Net realizable value of inventories
1. Description of the matter
For details of relevant information disclosure, please refer to Notex,vI (15) and Note x,vii (9) 8 of the
financial statements.
As of December 31, 2022, the book balance of the inventory items shown in the consolidated financial
statements of Hangzhou Steam Turbine Co., Ltd. was RMB 2,616.8032 million, the provision for price falling was
RMB 294.3419 million, and the book value was RMB2,322.4613 million.
On the balance sheet date, the inventories are measured at the lower of the cost and net realizable value, and
the provision for inventory falling price is made based on the difference that the cost of a single inventory
exceeding the net realizable value. On the basis of considering the purpose of holding the inventory, the
management determines the estimated selling price according to the contract price, the market price of the same or
similar products, the advance receipt, the estimated disposal income, etc., and determines the net realizable value
of the inventory by the estimated sales price subtracting the estimated occurrence cost will be happened at the
time of completion and subtracting the estimated sales expenses and related taxes and fees
Due to the significant amount of inventories and the determination of the net realizable value of inventories
involving significant management judgment, we determine the net realizable value of inventories as a key audit
item.
2. Audit Countermeasures
For the net realizable value of inventories, the audit procedures we have implemented mainly include:
(1) Understand the key internal controls related to the net realizable value of inventory, evaluate the design of
these controls, determine whether they have been implemented, and test the operational effectiveness of the
relevant internal controls;
(2) Review management's forecast of the net realizable value of inventory and the actual operating results in
previous years, and evaluate the accuracy of management's past forecasts;
(3) by sampling method review the management's forecast of the estimated selling price of the inventory, and
compare the estimated selling price with the post-event situation, the contracted selling price, the advance receipt,
and the valuation value;
(4) evaluate the management's reasonableness for the estimation on the costs, sales expenses and related
taxes and fees that will occur from the inventory to its completion sales;
(5) test the accuracy of the management's calculation on the net realizable value of inventory;
(6) In combination with the inventory monitoring, check whether the ending inventory has long storage age,
obsolete models, project suspension or termination situation, and evaluate whether the management has
reasonably estimated the net realizable value;
(7) Check whether the information related to the net realizable value of the inventory has been properly
presented and disclosed in the financial statements.
IV. Other information
The management of the Company is responsible for the other information. The other information comprises
information of the Company's annual report, but excludes the financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
4
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor's report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the
Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
5
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
March 27, 2023
6
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
II. The Financial Statements
Statement in Financial Notes are carried in RMB
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Power Group Co., Ltd
December 31,2022
In RMB
Items December 31,2022 January 1, 2022
Current asset：
Monetary fund 1,954,980,787.90 1,622,883,247.79
Settlement provision
Outgoing call loan
Transactional financial assets 607,001,143.44 960,645,259.82
Derivative financial assets
Notes receivable 95,612,927.26 215,046,941.09
Account receivable 1,924,679,367.08 1,997,950,120.70
Financing of receivables 817,555,768.45 816,653,211.21
Prepayments 401,523,615.49 443,770,434.91
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable 25,366,963.26 44,163,396.56
Including：Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories 2,322,461,286.52 3,041,643,747.35
Contract assets 587,719,735.46 583,026,649.99
Assets held for sales
Non-current asset due within 1 year
Other current asset 78,949,731.48 66,174,951.42
Total of current assets 8,815,851,326.34 9,791,957,960.84
Non-current assets：
Non-current assets：
Loans and payment on other’s behalf disbursed
Creditor's right investment
Long-term receivable 77,541,093.03 153,741,093.20
Long term share equity investment
Other equity instruments investment 3,556,127,694.48 3,485,440,140.92
Other non-current financial assets 5,534,773.22 14,792,533.96
Property investment 6,451,478.55 6,903,986.07
Fixed assets 1,926,594,610.89 1,658,423,191.83
Construction in progress 286,290,854.97 517,835,956.11
Production physical assets
Oil & gas assets
Use right assets 28,105,943.29 30,437,778.92
Intangible assets 274,844,788.47 277,469,707.24
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 352,734,092.61 382,665,279.67
Other non-current asset 44,922,954.47
Total of non-current assets 6,559,148,283.98 6,527,709,667.92
Total of assets 15,374,999,610.32 16,319,667,628.76
Current liabilities
Short-term loans 287,753,227.89 250,065,920.45
7
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 411,886,347.73 309,404,319.27
Account payable 1,202,915,727.29 1,910,150,188.14
Advance receipts 230,204.48 812,701.37
Contract liabilities 2,306,912,441.68 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 139,014,673.58 133,122,509.92
Tax payable 73,385,124.09 81,622,378.10
Other account payable 203,788,336.85 434,578,338.13
Including：Interest payable
Dividend payable 90,000.00
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 42,802,886.86 17,607,722.97
Other current liability 267,585,963.69 395,640,629.47
Total of current liability 4,936,274,934.14 6,585,520,000.88
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 159,903,673.86 180,830,007.55
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 16,334,023.10 22,575,754.77
Long-term payable 11,104,088.21 7,579,677.56
Long-term remuneration payable to staff
Expected liabilities
Deferred income 877,381,129.85 729,438,751.74
Deferred income tax liability 474,809,014.19 464,172,915.14
Other non-current liabilities
Total non-current liabilities 1,539,531,929.21 1,404,597,106.76
Total of liability 6,475,806,863.35 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 394,935,862.00 282,946,030.50
Less：Shares in stock 136,466,388.09 144,078,948.09
Other comprehensive income 2,690,397,606.30 2,629,477,756.99
Special reserve 17,841,325.92 18,369,033.52
Surplus reserves 625,178,089.82 625,178,089.82
Common risk provision
Retained profit 3,756,414,638.24 3,761,583,410.91
Total of owner’s equity belong to the parent company 8,328,481,114.19 7,927,485,773.65
Minority shareholders’ equity 570,711,632.78 402,064,747.47
Total of owners’ equity 8,899,192,746.97 8,329,550,521.12
Total of liabilities and owners’ equity 15,374,999,610.32 16,319,667,628.76
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
8
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
2.Parent Company Balance Sheet
I RMB
Items December 31,2022 January 1, 2022
Current asset：
Monetary fund 1,074,031,333.05 911,448,637.39
Transactional financial assets 381,998,737.18 870,645,259.82
Derivative financial assets
Notes receivable 34,407,856.32 6,961,501.77
Account receivable 1,438,060,860.05 1,580,364,876.72
Financing of receivables 456,488,422.29 521,567,126.16
Prepayments 316,162,169.59 362,130,094.32
Other account receivable 8,397,079.99 27,054,816.71
Including：Interest receivable
Dividend receivable 110,000.00
Inventories 1,258,239,826.08 1,972,162,485.26
Contract assets 358,622,953.48 336,771,206.36
Assets held for sales
Non-current asset due within 1 year
Other current asset 66,426,019.02 54,571,853.02
Total of current assets 5,392,835,257.05 6,643,677,857.53
Non-current assets：
Creditor's right investment
Other investment on bonds
Long-term receivable
Long term share equity investment 400,480,973.25 191,793,655.63
Other equity instruments investment 3,556,127,694.48 3,485,440,140.92
Other non-current financial assets 5,534,773.22 14,654,773.22
Property investment
Fixed assets 1,474,208,708.15 1,216,961,095.52
Construction in progress 283,786,818.95 510,746,977.12
Production physical assets
Oil & gas assets
Use right assets 2,717,667.45 5,718,846.89
Intangible assets 188,674,302.83 194,828,927.84
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 297,762,053.26 317,178,990.36
Other non-current asset 30,999,462.87
Total of non-current assets 6,240,292,454.46 5,937,323,407.50
Total of assets 11,633,127,711.51 12,581,001,265.03
Current liabilities
Short-term loans 200,169,863.01 150,136,986.30
Transactional financial liabilities
Derivative financial liabilities
Notes payable 5,900,000.00
Account payable 740,412,296.58 1,225,766,343.67
Advance receipts
Contract Liabilities 1,332,554,908.08 2,144,268,617.09
Employees’ wage payable 82,125,367.12 76,018,039.12
Tax payable 17,200,998.61 11,130,803.71
Other account payable 184,847,189.08 177,365,722.18
Including：Interest payable
9
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year 1,503,579.95 4,612,006.37
Other current liability 140,853,281.80 276,610,651.60
Total of current liability 2,705,567,484.23 4,065,909,170.04
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 1,575,000.00 2,799,027.12
Long-term payable 5,852,616.69 2,785,102.53
Long-term remuneration payable to staff
Expected liabilities
Deferred income 741,999,661.14 582,083,796.03
Deferred income tax liability 474,809,014.19 464,172,915.14
Other non-current liabilities
Total non-current liabilities 1,224,236,292.02 1,051,840,840.82
Total of liability 3,929,803,776.25 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 175,558,788.66 121,457,098.65
Less：Shares in stock 136,466,388.09 144,078,948.09
Other comprehensive income 2,690,397,606.30 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 3,385,297,545.74 3,493,193,115.19
Total of owners’ equity 7,703,323,935.26 7,463,251,254.17
Total of liabilities and owners’ equity 11,633,127,711.51 12,581,001,265.03
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin
Can
3.Consolidated Income statement
In RMB
Items Year 2022 Year 2021
I. Income from the key business 5,788,288,588.91
5,518,841,939.82
Incl：Business income 5,788,288,588.91
5,518,841,939.82
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 5,360,902,963.39
5,133,169,840.46
Incl：Business cost 4,091,955,492.69
4,027,414,803.26
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
10
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 45,829,030.25
38,383,758.77
Sales expense 221,489,523.60 202,868,557.82
Administrative expense 660,284,323.30
590,938,269.71
R & D costs 350,216,635.11
284,239,883.04
-
Financial expenses 9,748,924.22
29,296,397.92
Including：Interest expense 23,435,810.36
24,366,789.74
Interest income 18,328,752.35
18,946,425.24
Add: Other income 202,548,518.03
73,730,674.31
Investment gain（“-”for loss） 168,937,379.22
135,599,082.88
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 -141,525.84
313,477.36
Credit impairment loss 15,768,143.94
82,441,348.93
-
Impairment loss of assets -28,511,019.43
24,440,216.13
Assets disposal income 1,094,656.77
95,281.00
III. Operational profit（“-”for loss） 787,081,778.21
653,411,747.71
Add ：Non-operational income 134,352,975.28
57,650,448.40
Less: Non-operating expense 88,887,299.33
3,130,575.97
IV. Total profit(“-”for loss) 832,547,454.16
707,931,620.14
Less：Income tax expenses 105,299,694.37
82,692,261.45
V. Net profit 727,247,759.79
625,239,358.69
(I) Classification by business continuity
1.Net continuing operating profit 727,247,759.79
625,239,358.69
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 649,992,474.56
522,396,807.32
2.Minority shareholders’ equity 77,255,285.23
102,842,551.37
VI. Net after-tax of other comprehensive income -485,737,329.38
59,821,266.74
-485,484,629.85
11
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Net of profit of other comprehensive income attributable to owners of t 59,972,370.69
he parent company.
（I）Other comprehensive income items that will not be reclassified
-485,297,242.70
into gains/losses in the subsequent accounting period 60,084,420.53
1.Re-
measurement of defined benefit plans of changes in net debt or net ass
ets
2.Other comprehensive income under the equity method investee can n
ot be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments 60,084,420.53 -485,297,242.70
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
-
Other comprehensive income that will be reclassified into profit or loss -187,387.15
. 112,049.84
1.Other comprehensive income under the equity method investee can b
e 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 -187,387.15
112,049.84
7.Other
Net of profit of other comprehensive income attributable to Minority -
shareholders’ equity -252,699.53
151,103.95
VII. Total comprehensive income 241,510,430.41
685,060,625.43
Total comprehensive income attributable to the owner of the parent
company 164,507,844.71
582,369,178.01
Total comprehensive income attributable minority shareholders 77,002,585.70
102,691,447.42
VIII. Earnings per share
（I）Basic earnings per share 0.54 0.68
(II)Diluted earnings per share 0.54 0.68
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin
Can
12
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
4. Income statement of the Parent Company
In RMB
Items Year 2022 Year 2021
I. Income from the key business 3,185,535,942.16 3,367,538,714.58
Incl：Business cost 2,463,100,672.79 2,420,764,986.89
Business tax and surcharge 21,955,800.03 20,873,235.49
Sales expense 94,333,279.35 93,124,353.76
Administrative expense 392,945,595.33 435,170,658.26
R & D expense 138,488,509.23 192,171,313.79
Financial expenses -31,955,926.80 -5,277,760.85
Including：Interest expenses 5,389,750.73 4,788,907.66
Interest income 11,578,539.98 11,520,301.18
Add：Other income 46,434,957.91 174,266,374.76
Investment gain（“-”for loss） 216,423,127.90 321,333,915.33
Including: investment gains from affiliates 272,641.24
Financial assets measured at amortized cost cease to be recognized as
income
Net exposure hedging income
Changing income of fair value 313,477.36 -2,609,265.44
Credit impairment loss 13,154,499.97
68,354,461.56
-
Impairment loss of assets -18,259,455.46
28,878,579.86
Assets disposal income 26,288.11
II. Operational profit（“-”for loss） 409,341,745.21 698,597,996.40
Add ：Non-operational income 47,625,261.60 120,301,778.59
Less：Non -operational expenses 1,929,713.30 87,148,771.55
III. Total profit(“-”for loss) 455,037,293.51 731,751,003.44
Less：Income tax expenses 35,367,282.97 61,521,858.42
IV. Net profit 419,670,010.54 670,229,145.02
1.Net continuing operating profit 419,670,010.54 670,229,145.02
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 60,084,420.53 -485,297,242.70
（I）Other comprehensive income items that will not be reclassified
60,084,420.53 -485,297,242.70
into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net ass
ets
2.Other comprehensive income under the equity method investee can n
ot be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments 60,084,420.53 -485,297,242.70
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit or
loss
1.Other comprehensive income under the equity method investee can b
e 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
13
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
VI. Total comprehensive income 479,754,431.07 184,931,902.32
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 Accounting Dept Leader: Jin
Can
5. Consolidated Cash flow statement
Items Year 2022 Year 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 4,396,331,648.09 4,911,745,732.94
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 81,231,460.36 19,124,473.13
Other cash received from business operation 251,137,216.37 492,993,373.24
Sub-total of cash inflow 4,728,700,324.82 5,423,863,579.31
Cash paid for purchasing of merchandise and services 2,662,046,241.61 3,264,017,654.61
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 1,027,230,600.33 995,048,140.94
Taxes paid 344,859,140.11 566,304,337.33
Other cash paid for business activities 370,423,537.14 526,683,957.41
Sub-total of cash outflow from business activities 4,404,559,519.19 5,352,054,090.29
Net cash generated from /used in operating activities 324,140,805.63 71,809,489.02
II. Cash flow generated by investing
Cash received from investment retrieving 10,752,958.20
Cash received as investment gains 131,449,638.53 220,665,203.47
Net cash retrieved from disposal of fixed assets, intangible assets, and
other long-term assets 1,216,686.31 2,303,476.87
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received 2,627,490,212.88 4,447,665,088.15
Sub-total of cash inflow due to investment activities 2,770,909,495.92 4,670,633,768.49
Cash paid for construction of fixed assets, intangible assets and other
long-term assets 272,801,578.46 181,655,743.62
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units 298,438,942.86
Other cash paid for investment activities 2,085,697,180.39 4,383,572,000.00
Sub-total of cash outflow due to investment activities 2,358,498,758.85 4,863,666,686.48
14
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Net cash flow generated by investment 412,410,737.07 -193,032,917.99
III.Cash flow generated by financing
Cash received as investment 169,795,500.00 320,000.00
Including: Cash received as investment from minor shareholders 169,795,500.00 320,000.00
Cash received as loans 306,300,000.00 422,800,000.00
Other financing –related cash received 200,000.00 117,695,995.86
Sub-total of cash inflow from financing activities 476,295,500.00 540,815,995.86
Cash to repay debts 267,900,000.00 258,500,000.00
Cash paid as dividend, profit, or interests 363,192,673.98 269,797,633.75
Including: Dividend and profit paid by subsidiaries to minor
shareholders 44,416,370.00 76,080,370.00
Other cash paid for financing activities 273,340,869.54 271,082,296.17
Sub-total of cash outflow due to financing activities 904,433,543.52 799,379,929.92
Net cash flow generated by financing -428,138,043.52 -258,563,934.06
IV. Influence of exchange rate alternation on cash and cash equivalents 29,075,934.51 -3,028,317.00
V.Net increase of cash and cash equivalents 337,489,433.69 -382,815,680.03
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 1,805,028,401.76 1,467,538,968.07
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin
Can
6. Cash Flow Statement of the Parent Company
In RMB
Items Year 2022 Year 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,980,841,503.83 2,515,049,261.36
Tax returned 52,872,382.00 3,177,679.96
Other cash received from business operation 66,396,405.12 85,083,996.83
Sub-total of cash inflow 2,100,110,290.95 2,603,310,938.15
Cash paid for purchasing of merchandise and services 1,314,401,634.33 1,620,710,170.84
Cash paid to staffs or paid for staffs 597,944,639.72 568,164,460.95
Taxes paid 159,798,491.41 394,260,109.04
Other cash paid for business activities 85,114,385.41 165,905,142.91
Sub-total of cash outflow from business activities 2,157,259,150.87 2,749,039,883.74
Net cash generated from /used in operating activities -57,148,859.92 -145,728,945.59
II. Cash flow generated by investing
Cash received from investment retrieving 10,288,000.00
Cash received as investment gains 217,826,572.17 367,693,490.76
Net cash retrieved from disposal of fixed assets, intangible assets, and
other long-term assets 800,882.00 260,108.20
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received 1,943,515,564.65 2,580,396,347.51
Sub-total of cash inflow due to investment activities 2,172,431,018.82 2,948,349,946.47
Cash paid for construction of fixed assets, intangible assets and other
long-term assets 208,876,108.57 116,494,283.25
Cash paid as investment 203,652,611.00 279,075,715.98
Net cash received from subsidiaries and other operational units 0.00
Other cash paid for investment activities 1,260,000,000.00 2,476,000,000.00
Sub-total of cash outflow due to investment activities 1,672,528,719.57 2,871,569,999.23
Net cash flow generated by investment 499,902,299.25 76,779,947.24
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 200,000,000.00 150,000,000.00
15
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Other financing –related ash received 110,195,995.86
Sub-total of cash inflow from financing activities 200,000,000.00 260,195,995.86
Cash to repay debts 150,000,000.00 150,000,000.00
Cash paid as dividend, profit, or interests 306,578,624.17 188,403,557.65
Other cash paid for financing activities 7,456,797.00 1,103,760.00
Sub-total of cash outflow due to financing activities 464,035,421.17 339,507,317.65
Net cash flow generated by financing -264,035,421.17 -79,311,321.79
IV. Influence of exchange rate alternation on cash and cash equivalents 21,960,352.49 -2,217,274.76
V.Net increase of cash and cash equivalents 200,678,370.65 -150,477,594.90
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 1,074,013,333.05 873,334,962.40
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin
Can
16
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Year 2022
Owner’s equity Attributable to the Parent Company
Other Equity instrument Share Other Com Minor
Other Total of
Items Capital Equity Specializ mon sharehold
Share Prefe Prefe Comprehe Surplus Retained Ot owners’
Sustain instrumen ed risk Subtotal ers’
Capital rred rred nsive reserves profit her equity
able Sustainab t reserve provi equity
stock stock Income
debt le debt Other sion
I.Balance at the end of last year 754,010,4 282,946,0 144,078,9 2,629,477, 18,369,0 625,178,0 3,761,583, 7,927,485, 402,064,7 8,329,550,
00.00 30.50 48.09 756.99 33.52 89.82 410.91 773.65 47.47 521.12
Add: Change of accounting policy - -
Correcting of previous errors
- -
Merger of entities under common
control - -
Other
- -
II.Balance at the beginning of
754,010,4 282,946,0 144,078,9 2,629,477, 18,369,0 625,178,0 3,761,583, 7,927,485, 402,064,7 8,329,550,
current year - - - - -
00.00 30.50 48.09 756.99 33.52 89.82 410.91 773.65 47.47 521.12
- -
-
III.Changed in the current year 226,169,5 111,989,8 7,612,560 60,919,84 527,707. 400,995,3 168,646,8 569,642,2
- - - - - 5,168,772. -
80.00 31.50 .00 9.31 60 40.54 85.31 25.85
67
（1）Total comprehensive income 59,972,37 522,396,8 582,369,1 102,691,4 685,060,6
0.69 07.32 78.01 47.42 25.43
（II）Investment or decreasing of
54,919,48 54,919,48 171,128,1 226,047,5
capital by owners - - - - - - - - - - -
7.13 7.13 02.88 90.01
1．Ordinary Shares invested by sh
169,795,5 169,795,5
areholders -
00.00 00.00
2．Holders of other equity instrum
ents invested capital - -
3．Amount of shares paid and 54,919,48 54,919,48 1,332,602 56,252,09
accounted as owners’ equity
7.13 7.13 .88 0.01
4．Other
- -
17
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
-
- - - -
（III）Profit allotment - - - - -
7,612,560
- - - - 301,395,9 - 293,783,4 44,416,37 338,199,8
.00
99.99 39.99 0.00 09.99
1.Providing of surplus reserves
- -
2.Providing of common risk
provisions - -
-
3．Allotment to the owners (or - - - -
7,612,560
shareholders) 301,395,9 293,783,4 44,416,37 338,199,8
.00
99.99 39.99 0.00 09.99
4．Other
- -
(IV) Internal transferring of -
226,169,5
owners’ equity 226,169,5 - -
80.00
80.00
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 - -
-
6．Other 226,169,5
226,169,5 - -
80.00
80.00
-
(V). Special reserves 443,211. 275,800.9
- - - - - - - - - - 443,211.69 167,410.7
69 8
1
1. Provided this year 5,749,53 5,749,535. 999,586.7 6,749,121.
5.20 20 3 93
-
- - -
2．Used this term 5,306,32
5,306,323. 1,166,997 6,473,320.
3.51
51 .44 95
（VI）Other -
18
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
57,070,34 947,478.6 970,919. 57,046,90 - -
4.37 2 29 3.70 60,588,88 3,541,980.
4.28 58
IV. Balance at the end of this term 980,179,9 394,935,8 136,466,3 2,690,397, 17,841,3 625,178,0 3,756,414, 8,328,481, 570,711,6 8,899,192,
- - - -
80.00 62.00 88.09 606.30 25.92 89.82 638.24 114.19 32.78 746.97
Amount in last year
In RMB
Year 2021
Owner’s equity Attributable to the Parent Company
Other Equity
Com Minor
instrument Other Total of
Items Less: Specializ mon sharehold
Share Capital Comprehen Surplus Retained Oth owners’
Prefer Shares in ed risk Subtotal ers’
Capital Sustain Oth reserves sive reserves profit er equity
red stock reserve provis equity
able er Income
stock ion
debt
754,010,4 153,617,6 144,078,9 3,114,962, 17,699,6 621,112,8 3,587,465, 8,104,788, 445,350,3 8,550,139,
I.Balance at the end of last year
00.00 19.65 48.09 386.84 35.27 07.78 039.91 941.36 37.13 278.49
Add: Change of accounting policy
Correcting of previous errors
-
Merger of entities under common 226,288,8 869,345. 4,065,282 59,116,837 81,115,07 140,231,91
control 172,106,63
47.27 59 .04 .26 7.25 4.51
7.64
Other
II.Balance at the beginning of 754,010,4 379,906,4 144,078,9 3,114,962, 18,568,9 625,178,0 3,415,358, 8,163,905, 526,465,4 8,690,371,
current year 00.00 66.92 48.09 386.84 80.86 89.82 402.27 778.62 14.38 193.00
- - - - - -
346,225,00
III.Changed in the current year 96,960,43 485,484,62 199,947. 236,420,00 124,400,6 360,820,67
8.64
6.42 9.85 34 4.97 66.91 1.88
-
649,992,47 164,507,84 77,002,58 241,510,43
（1）Total comprehensive income 485,484,62
4.56 4.71 5.70 0.41
9.85
（II）Investment or decreasing of 17,297,90 17,297,907 320,000.0 17,617,907
capital by owners 7.40 .40 0 .40
1．Ordinary Shares invested by shar 320,000.0
320,000.00
eholders 0
2．Holders of other equity instrume
nts invested capital
3．Amount of shares paid and 17,297,90 17,297,907 17,297,907
accounted as owners’ equity 7.40 .40 .40
19
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
4．Other
- - - -
（III）Profit allotment 185,864,64 185,864,64 73,830,37 259,695,01
9.99 9.99 0.00 9.99
1.Providing of surplus reserves
2.Providing of common risk
provisions
- - - -
3．Allotment to the owners (or
185,864,64 185,864,64 73,830,37 259,695,01
shareholders)
9.99 9.99 0.00 9.99
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
- - -
-
(V). Special reserves 238,297. 793,099.2 1,031,396.
238,297.48
48 0 68
4,276,90 4,276,904. 696,449.7 4,973,353.
1. Provided this year
4.10 10 0 80
- - - -
2．Used this term 4,515,20 4,515,201. 1,489,548 6,004,750.
1.58 58 .90 48
- - - - -
38,350.1
（VI）Other 114,258,3 117,902,81 232,122,80 127,099,7 359,222,59
4
43.82 5.93 9.61 83.41 3.02
754,010,4 282,946,0 144,078,9 2,629,477, 18,369,0 625,178,0 3,761,583, 7,927,485, 402,064,7 8,329,550,
IV. Balance at the end of this term
00.00 30.50 48.09 756.99 33.52 89.82 410.91 773.65 47.47 521.12
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
20
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Year 2022
Other Equity instrument
Less: Other Specializ Total of
Items Share Preferr Capital Surplus Retained Oth
Oth Shares in Comprehensi ed owners’
capital ed Sustaina reserves reserves profit er
er stock ve Income reserve equity
stock ble debt
754,010,40 121,457,09 144,078,94 2,630,313,18 6,000,000 602,356,40 3,493,193,11 7,463,251,25
I.Balance at the end of last year
0.00 8.65 8.09 5.77 .00 2.65 5.19 4.17
Add: Change of accounting policy
Correcting of previous errors
Other
754,010,40 121,457,09 144,078,94 2,630,313,18 6,000,000 602,356,40 3,493,193,11 7,463,251,25
II.Balance at the beginning of current year
0.00 8.65 8.09 5.77 .00 2.65 5.19 4.17
- -
226,169,58 54,101,690. 60,084,420.5 240,072,681.
III.Changed in the current year 7,612,560.0 107,895,569.
0.00 01 3 09
0 45
60,084,420.5 419,670,010. 479,754,431.
（I）Total comprehensive income
3 54 07
(II) Investment or decreasing of capital by 54,101,690. 54,101,690.0
owners 01 1
1．Ordinary Shares invested by sharehold
ers
2．Holders of other equity instruments in
vested capital
3.Amount of shares paid and accounted as 54,101,690. 54,101,690.0
owners’ equity 01 1
4．Other
- - -
（III）Profit allotment 7,612,560.0 301,395,999. 293,783,439.
0 99 99
1.Providing of surplus reserves
2．Allotment to the owners (or - - -
shareholders) 7,612,560.0 301,395,999. 293,783,439.
21
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
0 99 99
3．Other
-
(IV) Internal transferring of owners’ 226,169,58
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
3,900,260
1. Provided this year 3,900,260.39
.39
-
-
2．Used this term 3,900,260
3,900,260.39
.39
（VI）Other
980,179,98 175,558,78 136,466,38 2,690,397,60 6,000,000 602,356,40 3,385,297,54 7,703,323,93
IV. Balance at the end of this term
0.00 8.66 8.09 6.30 .00 2.65 5.74 5.26
Amount in last year
In RMB
Year 2021
Other Equity instrument
Less: Other Specializ Total of
Items Share Preferr Capital Surplus Retained Oth
Oth Shares in Comprehensi ed owners’
Capital ed Sustaina reserves reserves profit er
er stock ve Income reserve equity
stock ble debt
754,010,40 138,953,25 144,078,94 3,115,610,42 6,000,000 602,356,40 2,978,322,47 7,451,174,00
I.Balance at the end of last year
0.00 0.09 8.09 8.47 .00 2.65 2.76 5.88
Add: Change of accounting policy
Correcting of previous errors
22
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Other
754,010,40 138,953,25 144,078,94 3,115,610,42 6,000,000 602,356,40 2,978,322,47 7,451,174,00
II.Balance at the beginning of current year
0.00 0.09 8.09 8.47 .00 2.65 2.76 5.88
- -
514,870,642. 12,077,248.2
III.Changed in the current year 17,496,151. 485,297,242.
43 9
44 70
-
670,229,145. 184,931,902.
（I）Total comprehensive income 485,297,242.
02 32
70
(II) Investment or decreasing of capital by 17,297,907. 17,297,907.4
owners 40 0
1．Ordinary Shares invested by sharehold
ers
2．Holders of other equity instruments in
vested capital
3.Amount of shares paid and accounted as 17,297,907. 17,297,907.4
owners’ equity 40 0
4．Other
- -
（III）Profit allotment 183,614,649. 183,614,649.
99 99
1.Providing of surplus reserves
- -
2．Allotment to the owners (or
183,614,649. 183,614,649.
shareholders)
99 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.
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
23
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
2,847,667
1. Provided this year 2,847,667.75
.75
-
-
2．Used this term 2,847,667
2,847,667.75
.75
-
28,256,147.4 -
（VI）Other 34,794,058.
0 6,537,911.44
84
754,010,40 121,457,09 144,078,94 2,630,313,18 6,000,000 602,356,40 3,493,193,11 7,463,251,25
IV. Balance at the end of this term
0.00 8.65 8.09 5.77 .00 2.65 5.19 4.17
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Accounting Dept Leader: Jin Can
24
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
III．Basic Information of the Company
Hangzhou Steam Turbine Power Group Co., Ltd. (Original name: Hangzhou Steam Turbine Co., Ltd. Hereinafter
referred to as "the Company") was incorporated as a joint stock limited company exclusively promoted by
Hangzhou Steam Turbine Holdings Co., Ltd(Original name: Hanghou Steam Turbine Power Group Co.,
Ltd.Hereinafter referred to as "Steam Turbine Holdings") 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 RMB 980,179.98 million with total capital share of 980,179.98 million shares (face value
RMB1.00). Among which state-owned legal person shares were 623.77224 million shares and 356.40774 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.
These Financial Statements are released upon approval at the 32nd meeting of the 8th term of Board held on
March 27, 2023.
As of December 31, 2022, the Company included the following 16 subsidiaries in the scope of the current
consolidated financial statements, as shown in Notes X(8) to this financial statement.
No Names of subsidiaries included in the consolidated financial statements of Abbreviation
the current period
1 Hangzhou Steam Turbine Auxiliary Co., Ltd. Auxiliary Company
2 Zhongneng Steam Turbine Power Co., Ltd. Guoneng Company
Zhejiang Steam Turbine Packaged Technologies Co., Ltd., Packaged Technologies
3 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 Hangfa Power Equipment Co., ltd. Hangfa Company
10 Hangzhou Steam Turbine Casing Co., ltd. Casing Company
11 Anhui Hangqi Casing Technology Co., Ltd. Anhui Casing Company
12 Hangzhou Steam Turbine New Energy Co., Ltd. New Energy Company
13 Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. Sales Company
14 Hangzhou Steam Turbine Automobile Sales Service Co., Ltd. Sales Company
China mechanical and Electrical Institute -HSTG (Hangzhou) United China mechanical In
15 Institutes Co., Ltd Ranchuang Company
stitute Company
16 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.
(II) Assessment on perpetuation
No issue or situation, in 12 months since the end of report period, composes major doubt on the
25
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 be recorded into current
income
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
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
26
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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.
2) 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
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.
(3) 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,
27
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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
B. Financial assets have been transferred, and the transfer meets the provisions of the Accounting Standards
for Business Enterprises No.23-Transfer of Financial Assets on the derecognition of financial assets.
When the current obligation of a financial liability (or part thereof) has been discharged, the financial liability
(or part thereof) shall be derecognized accordingly.
(4) 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 instrument investments measured at
fair value, whose changes are included in other comprehensive income).
(5) Impairment of financial instruments
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
28
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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
Items Basis for determining combination Methods of measuring expected credit loss
Other receivables-associated Taking related parties within the scope of
transaction combinations within the consolidated financial statements as credit Refer to the historical credit loss experience,
scope of consolidated financial risk characteristics, other receivables are combine the current situation with the forecast
of future economic situation, and calculate the
statements combined
expected credit loss through default risk
Taking aging as the credit risk characteristic, exposure and the expected credit loss rate
combine other receivables except the related within the next 12 months or the whole
Other receivables-aging combination
party receivables within the scope of the duration.
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
Bank acceptance bills receivable Refer to the historical credit loss experience, combine
the current situation and the forecast of the future
economic situation, compile a comparison table
Commercial acceptance bills Bill type between the aging of accounts receivable and the
receivable expected credit loss rate during the whole duration,
and calculate the expected credit loss.
Refer to the historical credit loss experience, combine
Taking related parties within the
Accounts receivable-associated the current situation and the forecast of the future
scope of consolidated financial
transaction combinations within the economic situation, compile a comparison table
statements as credit risk
scope of consolidated financial between the aging of accounts receivable and the
characteristics, receivables are
statements expected credit loss rate during the whole duration,
combined
and calculate the expected credit loss.
Refer to the historical credit loss experience, combine
Taking aging as the credit risk
the current situation and the forecast of the future
Accounts receivable-aging characteristic, combine receivables
economic situation, compile a comparison table
except the related party receivables
combination between the aging of accounts receivable and the
within the scope of the consolidated
expected credit loss rate during the whole duration,
financial statements
and calculate the expected credit loss.
Contract assets——associated Taking related parties within the Refer to the historical credit loss experience, combine
transaction combinations within the scope of consolidated financial the current situation and the forecast of the future
scope of consolidated financial statements as credit risk economic situation, compile a comparison table
statements characteristics, Costract assets are between the aging of accounts receivable and the
combined expected credit loss rate during the whole duration,
and calculate the expected credit loss.
29
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Contract assets——aging combination Taking aging as the credit risk Refer to the historical credit loss experience, combine
characteristic, combine receivables the current situation and the forecast of the future
except the related party contract economic situation, compile a comparison table
assets within the scope of the between the aging of accounts receivable and the
consolidated financial statements expected credit loss rate during the whole duration,
and calculate the expected credit loss.
Long-term receivable——aging Aging Refer to the historical credit loss experience, combine
combination the current situation and the forecast of the future
economic situation, compile a comparison table
between the aging of accounts receivable and the
expected credit loss rate during the whole duration,
and calculate the expected 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 (%)
5.00
Within 1 year (inclusive, the same below)
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
(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.
30
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(2) Pricing of inventory to be delivered
On company adopts the mobile weighted average method, other companies adopt the weighted average method at
the end of the month, and the individual valuation method
(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
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
31
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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
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
32
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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
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
Annual depreciation
Categories Basis of depreciation Depreciation age (year) Retain value rate
ratio
Straight average on
Houses & buildings 20-40 4-5 4.8-2.35
period
Equipment & Straight average on
5-15 4-5 19.2-6.27
machinery period
Transportation Straight average on
3-12 4-5 32-7.83
equipment period
Straight average on
Office equipment 3-10 4-5 32-9.4
period
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.
33
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
26. Loan expenses
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 3-10
(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
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
34
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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;
(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
35
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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
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
36
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 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, gas turbine or spare parts shall belong to the performance of
obligation at a certain point in time.
Domestic sales revenue is recognized when the Company has delivered the product in accordance with the co
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.
37
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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
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
38
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(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.
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
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
39
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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.
(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 [2022] No.136) 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
Contents and causes of changes in accounting policies Approval procedure Remarks
Since January 1, 2022, the Company has implemented the provisions of the "No. 15
Interpretation of Accounting Standards for Business Enterprises" issued by the
Ministry of Finance "On the Accounting Treatment of Products or By-products
Produced by an Enterprise Before the Fixed Assets Are Reached the Predetermined
40
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Usable State or in the Process of R&D", and this change in accounting policy has no
impact on the Company's financial statements.
Since January 1, 2022, the Company has implemented the "No. 15 Interpretation of
Accounting Standards for Business Enterprises "on "Judgment on Loss-making
Contracts" issued by the Ministry of Finance, and this change in accounting policy has
no impact on the Company's financial statements.
Since November 30, 2022, the Company has implemented the provisions of the No. 16
Interpretation of Accounting Standards for Business Enterprises issued by the Ministry
of Finance on "Accounting for the Income Tax Treatment of Dividends Related to
Financial Instruments Classified by Issuers as Equity Instruments", and this change in
accounting policy has no impact on the Company's financial statements.
Since November 30, 2022, the Company has implemented the provisions of the No. 16
Interpretation of Accounting Standards for Business Enterprises issued by the Ministry
of Finance On the "Accounting Treatment of Enterprises Modifying Cash-settled
Share-Based Payments to Equity-Settled Share-Based Payments", and this change in
accounting policy has no impact on the Company's financial statements.
(2) Change of main accounting estimations
□ Applicable √ Not applicable
45.Other
VI. Taxation
1. Main categories and rates of taxes
Tax (expenses) Tax (expenses) base Tax (expenses) rate
The output tax is calculated on the basis of the income from sales of
goods and taxable services calculated according to the provisions of the
VAT tax law. After deducting the input tax allowed to be deducted in the 13%，9%，6%
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
15%
Company ,Hangfa Company and Casting Company
Ranchuang Company, China mechanical and Electrical Institute -HSTG (Hangzhou) United
20%
Institutes Co., Ltd
Other Subsidiary（Domestic） 25%
41
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 2021 high-tech enterprises has not yet been determined, the corporate income tax is temporarily reduced at a
15% tax rate.
2).According to the "High-tech Enterprise Certificate" (Certificate number: GR202233002954, validity: three
years) issued by the Zhejiang Provincial Department of Science and Technology, the Zhejiang Provincial
Department of Finance and the Zhejiang Provincial Taxation Bureau of the State Administration of Taxation on
December 24, 2022, the subsidiary casting & forging company enjoys high-tech enterprise income tax incentives,
thus the enterprise income tax in 2022 shall be reduced to be 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 2021. 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%.
3.Other
VII. Notes to the Consolidated Financial Statements
1.Monetary funds
In RMB
Items End of term Beginning of term
Cash in stock 107,551.80 65,904.06
Bank deposit 1,852,884,189.83 1,467,327,722.30
Other monetary fund 101,989,046.27 155,489,621.43
Total 1,954,980,787.90 1,622,883,247.79
Incl: Total of accounts saved overseas 7,989,643.89
Other note：
The bank deposit at the end of the period included RMB 47,973,000.00 of restricted pledge time deposit and RMB
19,000.00 of ETC deposit. Other currency funds at the end of the period included RMB 92,639,033.89 restricted-
use bank acceptance bill deposit, RMB 9,321,352.25 for deposit of letter of guarantee, the balance of the
unrestricted special account for treasury stock repurchase of RMB 5,701.86, the balance of the special account for
the purchase of convertible bonds of RMB 6.30 and the deposit interest of RMB 22,951.97 that can be transferred
at any time.
2. Transactional financial assets
In RMB
Items End of term Beginning of term
Financial assets measured at fair value through profit or
607,001,143.44 960,645,259.82
loss
Of which ：
42
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Of which ：Equity instrument investment 1,998,737.18 2,645,259.82
Financing product 605,002,406.26 958,000,000.00
Of which：
Total 607,001,143.44 960,645,259.82
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 42,622,891.99 179,088,740.17
Trade acceptance bill 52,990,035.27 35,958,200.92
Total 95,612,927.26 215,046,941.09
单位：元
End of term Beginning of term
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proportion( Proporti Proportion( Proporti
Amount value Amount value
%) Amount %) Amount
on(%) on(%)
Of
which：
Accrual
of bad
debt 106,144, 10,531,4 95,612,9 218,390, 3,343,29 215,046,
100.00% 9.92% 100.00% 1.53%
380.06 52.80 27.26 231.88 0.79 941.09
provisio
n by
portfolio
Of
which：
Bank
42,622,8 42,622,8 179,088, 179,088,
acceptan 40.16% 82.00%
91.99 91.99 740.17 740.17
ce
Commer
cial 63,521,4 10,531,4 52,990,0 39,301,4 3,343,29 35,958,2
59.84% 16.58% 18.00% 8.51%
88.07 52.80 35.27 91.71 0.79 00.92
acceptan
ce
106,144, 10,531,4 95,612,9 218,390, 3,343,29 215,046,
Total 100.00% 9.92% 100.00% 1.53%
380.06 52.80 27.26 231.88 0.79 941.09
43
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Accrual of bad debt provision by single item:
Amount in year-end
Name
Book Balance Bad debt provision Proportion(%) Reason
Accrual of bad debt provision by portfolio: 10,531,452.80
In RMB
Amount in year-end
Name
Book Balance Bad debt provision Proportion(%)
Bank acceptance 42,622,891.99
Commercial
63,521,488.07 10,531,452.80 16.58%
acceptance
Total 106,144,380.06 10,531,452.80
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 Write- Closing balance
balance Accrual collected Other
off
amount
Accrual of bad debt
provision by portfolio 3,343,290.79 7,188,162.01 10,531,452.80
Total 3,343,290.79 7,188,162.01 10,531,452.80
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
（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 derecognized at the end of the Amount not yet derecognized at the end of
Items
period the period
Bank acceptance 6,413,205.40
Commercial acceptance 11,130,774.54
Total 6,413,205.40 11,130,774.54
（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
Other note：
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.
44
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
（6） The actual write-off accounts receivable
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Book Book
Proporti Proporti Proporti Proporti
Amount Amount value Amount Amount value
on % on % on % on %
Accrual of bad
74,459,0 74,459,0 77,191,5 77,191,5
debt provision 2.55% 100.00% 2.53% 100.00%
by single item 27.13 27.13 65.71 65.71
Including：
Accrual of bad
2,840,17 915,494, 1,924,67 2,979,74 981,796, 1,997,95
debt provision 97.45% 32.23% 97.47% 32.95%
by portfolio 4,129.98 762.90 9,367.08 6,652.43 531.73 0,120.70
Including：
2,914,63 989,953, 1,924,67 3,056,93 1,058,98 1,997,95
Total 100.00% 33.96% 100.00% 34.64%
3,157.11 790.03 9,367.08 8,218.14 8,097.44 0,120.70
Accrual of bad debt provision by single item：74,459,027.13
In RMB
Closing balance
Name Bad debt
Book balance Proportion Reason
provision
Xinjiang Altay Jinhao Iron Industry Co., Not expected to be
Ltd 26,010,242.82 26,010,242.82 100.00% recovered
Hangzhou New Concept Energy Saving Not expected to be
Technology Co., Ltd 11,552,855.00 11,552,855.00 100.00% recovered
Not expected to be
Dezhou Jinghua Group Zhenhua Co., Ltd. 10,980,000.00 10,980,000.00 100.00% recovered
Qingdao Jieneng Steam Turbine Group Not expected to be
7,964,672.35 7,964,672.35 100.00% recovered
Co., Ltd.
Not expected to be
Qingdao Jieneng Material Trade Co., Ltd. 6,534,000.00 6,534,000.00 100.00% recovered
Qingdao Jieneng Steam Turbine Co., Not expected to be
6,297,000.00 6,297,000.00 100.00% recovered
Ltd.Hangzhou Company
Sinosteel Tiancheng Environmental Not expected to be
2,459,550.00 2,459,550.00 100.00% recovered
Protection Science & Technology Co., Ltd.
Minhe Jinxing Hydropower Development Not expected to be
Co., Ltd. 1,468,751.96 1,468,751.96 100.00% recovered
Diebu Axia Hydropower Development Co., Not expected to be
Ltd. 1,132,000.00 1,132,000.00 100.00% recovered
Weifang Leinuote Power Equipment Co., Not expected to be
Ltd. 59,955.00 59,955.00 100.00% recovered
Total 74,459,027.13 74,459,027.13
Accrual of bad debt provision by portfolio: 915,494,762.90
Amount in year-end
Name
Book balance Bad debt provision Proportion
Within 1 year 1,088,113,527.42 54,405,676.37 5.00%
1-2 years 539,252,217.59 53,925,221.75 10.00%
2-3 years 409,886,653.36 122,965,996.01 30.00%
3-4 years 223,768,796.98 134,261,278.19 60.00%
4-5 years 146,081,720.26 116,865,376.21 80.00%
45
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Over 5 years 433,071,214.37 433,071,214.37 100.00%
Total 2,840,174,129.98 915,494,762.90
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） 1,088,113,527.42
1-2 years 539,252,217.59
2-3 years 409,886,653.36
Over 3 years 877,380,758.74
3-4 years 223,768,796.98
4-5 years 146,081,720.26
Over 5 years 507,530,241.50
Total 2,914,633,157.11
(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 collected Write-off Other
amount
Accrual of bad debt
provision by single 77,191,565.71 462,838.60 3,195,377.18 74,459,027.13
item
Accrual of bad debt
provision by portfolio 981,796,531.73 -65,271,266.77 844,467.22 186,034.84 915,494,762.90
Total 1,058,988,097.44 -65,271,266.77 462,838.60 844,467.22 3,381,412.02 989,953,790.03
(3) The actual write-off accounts receivable
In RMB
Items Amount
Accrual of bad debt provision by portfolio 844,467.22
The significant actual write-off accounts receivable for the current period
In RMB
Arising from
Nature of account Amount written Reason for Verification
Name related transactions
receivable off written off procedures
(Y/N)
Uncollectible The examined and
Hanmen Daqian Thermal Power Co., Ltd. Goods 296,392.20 adopted to Board No
amount of directors
The examined and
Xinjiang Wensu Yongan Hydroelectricity Uncollectible
Goods 207,000.00 adopted to Board No
Development Co., Ltd.
amount od directors
The examined and
Hangzhou Steam Turbine Power Group Uncollectible
Goods 158,500.00 adopted to Board Yes
Co., Ltd.Southwest Branch
amount of directors
46
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Uncollectible The examined and
Other Goods 182,575.02 adopted to Board No
amount of directors
Total 844,467.22
Note：
（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 1 751,654,053.31 25.79% 199,008,158.71
Client 2 191,733,969.26 6.58% 113,264,290.47
Client 3 82,411,200.00 2.83% 4,120,560.00
Client 4 60,631,419.75 2.08% 13,161,015.39
Client 5 51,240,000.00 1.76% 2,562,000.00
Total 1,137,670,642.32 39.04%
（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
6. Financing of receivables
In RMB
Items End of term Beginning of term
Bank acceptance 817,555,768.45 816,653,211.21
Total 817,555,768.45 816,653,211.21
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:
□ Applicable √ Not applicable
Other note：
(1) Notes receivable pledged by the Company at the end of the period
Items Pledged amount
Bank acceptance 143,516,310.23
Total 143,516,310.23
(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
47
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Items Amount of recognition termination at the period-end
Bank acceptance 535,567,912.87
Total 535,567,912.87
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 367,741,841.11 91.59% 402,228,171.12 90.64%
1-2 years 13,954,754.79 3.48% 16,849,046.80 3.80%
2-3 years 2,556,543.70 0.63% 3,119,651.33 0.70%
Over 3 years 17,270,475.89 4.30% 21,573,565.66 4.86%
Total 401,523,615.49 443,770,434.91
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
Name Amount
Proportion(%)
Siemens Energy AB 126,578,801.75 31.52
Siemens Energy Co., Ltd. 78,749,171.72 19.61
Mitsubishi Hitachi Electric Gas Engine Service (Nanjing) Co., Ltd 21,181,977.09 5.28
PROCARE PLUS LTD 16,122,035.57 4.02
Yixing Yuxiang Machinery Technology Co., Ltd. 11,232,000.00 2.80
Subtotal 253,863,986.13 63.23
Other
8. Other account receivable
In RMB
Items Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivable 25,366,963.26 44,163,396.56
Total 25,366,963.26 44,163,396.56
（1）Interest receivable
1）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
1）Dividend receivable
48
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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
25,366,963.26 44,163,396.56
portfolio:
Total 25,366,963.26 44,163,396.56
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, 2022 1,795,961.52 963,314.31 13,542,296.38 16,301,572.21
Balance as at January 1, 2022
in current
——Transfer to stage II -201,140.61 201,140.61
——Transfer to stage III -645,605.36 645,605.36
Provision in the current period -692,685.59 -116,568.34 -267,421.41 -1,076,675.34
Write - off in the current period 2,471,012.90 2,471,012.90
Other(Note) -1,230.43 -1,230.43
Balance as at December 31,
2022 900,904.89 402,281.22 11,449,467.43 12,752,653.54
[Note] Other changes are caused by the change of the merger scope and the bad debt provisions of the Indonesian
Company.
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） 18,018,097.76
1-2 years 4,022,812.16
2-3 years 6,456,053.57
Over 3 years 9,622,653.31
3-4 years 173,504.87
4-5 years 203,000.00
Over 5 years 9,246,148.44
Total 38,119,616.80
49
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Opening Amount of change in the current period
Category Closing balance
balance Reversed or
Accrual Write-off Other
collected amount
Accrual of bad debt - -
16,301,572.21 2,471,012.90 12,752,653.54
1,076,675.34 1,230.43
provision by portfolio:
- -
Total 16,301,572.21 2,471,012.90 12,752,653.54
1,076,675.34 1,230.43
4) The actual write-off accounts receivable
In RMB
Items Amount
Accrual of bad debt provision by portfolio: 2,471,012.90
The significant actual write-off other accounts receivable for the current period
In RMB
Nature of account Amount written Reason for Verification Arising from related
Name
receivable off written off procedures transactions (Y/N)
The examined
Wuhan Huazhong Automatic Receivable temporary Uncollectible and adopted to
2,331,000.00 amount No
Technology Development Co., Ltd payment Board of
directors
The examined
Uncollectible and adopted to
Other Deposit 140,012.90 No
amount Board of
directors
Total 2,471,012.90
Other note
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
Name Nature Closing balance Aging balance of the of bad debt
accounts provision
receivable
Equity transfer
PT.HANGZHOUTURBINE
payment 4,120,000.00 Within 1 year 10.81% 206,000.00
SERVICES
receivable
Shanghai Customs Waigaoqiao Office Deposit 3,710,320.94 Over 5 years 9.73% 3,710,320.94
Hangzhou Chisu Trade Co., Ltd. Deposit 2,848,700.00 2-3 years 7.47% 854,610.00
Hangzhou Chisu Trade Co., Ltd. Deposit 2,300,000.00 1-2 years 6.03% 230,000.00
Ningxia Baofeng Energy Group Co.,
Deposit 1,700,000.00 (Note) 4.46% 260,000.00
Ltd.
Total 14,679,020.94 38.50% 5,260,930.94
50
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
[Note] Within 1 year:1,000,000.00 yuan, 2-3 years:700,000.00 yuan.
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
762,193,831.50 77,637,312.67 684,556,518.83 1,292,125,192.43 107,518,112.95 1,184,607,079.48
materials
Goods in
1,019,899,099.40 74,567,968.42 945,331,130.98 871,173,637.50 62,010,483.80 809,163,153.70
progress
Stock
goods 834,710,221.13 142,136,584.42 692,573,636.71 1,189,125,044.23 141,251,530.06 1,047,873,514.17
Total 2,616,803,152.03 294,341,865.51 2,322,461,286.52 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
Closing balance
Withdrawal or write- Reverse or write-off Other
off
Raw
107,518,112.95 5,503,175.08 35,383,975.36 77,637,312.67
materials
Goods in
62,010,483.80 12,622,976.89 65,492.27 74,567,968.42
progress
Stock
goods 141,251,530.06 14,225,848.44 13,340,794.08 142,136,584.42
Total 310,780,126.81 32,352,000.41 48,790,261.71 294,341,865.51
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
Used for current production and use and
Raw materials estimated selling prices minus the estimated selling costs and relevant
sales realization
taxes and dues
The net realizable value determines the amount after deducting the Used for current production and use and
Goods in process
estimated sales cost and the relevant taxes realization
51
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
The net realizable value shall be recognized by the amount of the
estimated selling prices minus the estimated selling costs and relevant
taxes and dues, wherein regarding suspended projects expected not be to Used for current production and use and
Commodity stocks
be recovered or projects whose sales agreements are released, the net sales realization
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 guarantee 577,093,698.74 44,818,828.73 532,274,870.01 564,548,403.36 53,513,171.70 511,035,231.66
The construction
contract forms the 63,333,343.14 7,888,477.69 55,444,865.45 79,560,175.93 7,568,757.60 71,991,418.33
assets
Total 640,427,041.88 52,707,306.42 587,719,735.46 644,108,579.29 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 462,838.60
Accrual by portfolio -7,911,784.28 Accrual by aging
Total -7,911,784.28 462,838.60 ——
Other note：[Note] Other reduction in the provision for impairment in this period is caused by the transfer of
warranty guarantee into accounts receivable.
Contract assets with impairment provision in combination
Items End of term
Book balance Impairment provision Accrual proportion (%)
Aging portfolio 640,427,041.88 52,707,306.42 8.23
Subtotal 640,427,041.88 52,707,306.42 8.23
11. Assets divided as held-to-sold
12. Non-current assets due within 1 year
13. Other current assets
In RMB
Items End of term Beginning of term
Input tax deductible 51,338,998.29 34,506,442.84
52
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Prepaid income tax 26,920,714.32 30,524,440.80
Rent charge 690,018.87 1,144,067.78
Total 78,949,731.48 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 rate
Items inventory inventory
Book balance Book value Book balance Book value interval
impairment impairment
106,022,203. 28,481,110.3 77,541,093.0 205,022,203. 51,281,110.1 153,741,093.
Project item
37 4 3 37 7 20
106,022,203. 28,481,110.3 77,541,093.0 205,022,203. 51,281,110.1 153,741,093.
Total
37 4 3 37 7 20
(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
Other note
1)Changes in bad debt reserves
Closing balance
Type Book balance Bad debt provision
Book value
Amount Proportion % Amount Proportion %
Accrual by single item 41,600,000.00 39.24 24,960,000.00 60.00 16,640,000.00
Accrual by portfolio 64,422,203.37 60.76 3,521,110.34 5.47 60,901,093.03
Total 106,022,203.37 100.00 28,481,110.34 26.86 77,541,093.03
（Continued)
Beginning of term
Type Book balance Bad debt provision
Book value
Amount Proportion % Amount Proportion %
Accrual by single item 74,600,000.00 36.39 44,760,000.00 60.00 29,840,000.00
Accrual by portfolio 130,422,203.37 63.61 6,521,110.17 5.00 123,901,093.20
Total 205,022,203.37 100.00 51,281,110.17 25.01 153,741,093.20
2) Long-term receivables for individual bad debt provision at the end of the period
Name Book balance Bad debt provision Proportion % Reason
53
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Name Book balance Bad debt provision Proportion % Reason
Changzhi Yiyang Energy
41,600,000.00 24,960,000.00 60.00 Overdue
Technology Co.,Ltd.
Subtotal 41,600,000.00 24,960,000.00 60.00
3) Other receivables with overdue debt provision to for overdue debt provision
Closing balance
Age
Book balance Bad debt provision Proportion %
Not overdue 58,422,200.00 2,921,110.00 5.00
One year overdue 6,000,003.37 600,000.34 10.00
Subtotal 64,422,203.37 3,521,110.34 5.47
(4) The bad debt provision：
Increased amount Decreased amount
Opening Closing
Items write-
balance Withdraw recover Other Switch back Other balance
off
Accrual by single
44,760,000.00 19,800,000.00 24,960,000.00
item
-
Accrual by portfolio 6,521,110.17 3,521,110.34
2,999,999.83
-
Total 51,281,110.17 19,800,000.00 28,481,110.34
2,999,999.83
[Note] Mainly due to the recovery of 33.3 million yuan of long-term receivables in the current period
correspondingly resulted in reverse of 19.8 million yuan for provision to bad debts.
17. Long-term equity investment
18. Other equity instruments investment
In
RMB
Items End of term Beginning of term
Hangzhou Bank 3,556,127,694.48 3,485,440,140.92
Total 3,556,127,694.48 3,485,440,140.92
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for
Amount of other other
Reasons for being
comprehensive comprehensive
Recognized measured at fair value
Accumulating Accumulating income
Name dividend
profit profit transferred to
and whose changes are income
income included in other transferred to
retained
comprehensive income retained
earnings
earnings
The shares of Hangzhou
Bank Co., Ltd. held by
the company cannot
Hangzhou pass the contract cash
95,156,322.10
Bank flow characteristic test,
but the company does
not hold the equity
instrument for the
54
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 changes are i
5,534,773.22 14,792,533.96
ncluded in the current profit and loss
Total 5,534,773.22 14,792,533.96
Other note
(2) Detail
Increase /decrease
Change
Opening in fair
Investees Additional Decrease in value Other comprehensive
balance
investment investment gains adjustment to revenue
and
losses
Actions Xinxing No.9 Private 9,120,000.00 9,120,000.00
Equity Fund
Greenesol power systems PVT Ltd. 5,534,773.22
Heilongjiang Multi-Power
Hydropower Development United 137,760.74 137,760.74
Company
Total 14,792,533.96 9,257,760.74
(Continued)
Increase /decrease Closing
Closing balance of
Investees Other equity
Other balance impairment
changes provision
Actions Xinxing No.9 Private
Equity Fund
Greenesol power systems PVT 5,534,773.22
Ltd.
Heilongjiang Multi-Power
Hydropower Development
United Company
Total 5,534,773.22
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
55
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Construction
Items House, Building Land use right Total
in 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 10,169,000.55
II.Accumulated amortization
1.Opening balance 3,265,014.48 3,265,014.48
2.Increased amount of the period 452,507.52 452,507.52
(1) Withdrawal 452,507.52 452,507.52
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 3,717,522.00 3,717,522.00
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 6,451,478.55 6,451,478.55
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
(3) Investment real estate without certificate of ownership
In RMB
Items Book balance Reason
Other note
56
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
The investment real estate at the end of the period includes the resettlement housing with a book value of RMB 6,
437,491.19 that cannot be reformed. The housing reform is due to the demolition and relocation of the dormitory a
rea of the subsidiary Hangfa Company in 2021. Other places participated in the housing reform and other reasons ,
and the property rights of the relevant houses belonged to the Company.
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 1,926,594,610.89 1,658,423,191.83
Total 1,926,594,610.89 1,658,423,191.83
(1) List of fixed assets
In RMB
Houses & Machinery Office
Items Transportations Total
buildings equipment equipment
I. Original price
1.Opening balance 1,272,821,651.03 1,185,284,037.75 35,630,594.79 142,381,639.80 2,636,117,923.37
2.Increased amount of the period 323,961,879.02 65,410,656.28 1,576,133.10 7,210,934.67 398,159,603.07
(1) Purchase 600,921.71 4,655,891.52 1,576,133.10 2,690,471.78 9,523,418.11
(2) Transferred from construction in progress 323,360,957.31 60,754,764.76 4,520,462.89 388,636,184.96
(3)Increased of Enterprise Combination
3.Decreased amount of the period 7,304,783.73 4,496,577.29 4,316,756.22 16,118,117.24
（1）Disposal 6,146,760.01 4,084,890.29 4,067,745.73 14,299,396.03
(2) Relocation transfer 1,158,023.72 411,687.00 249,010.49 1,818,721.21
4. Balance at period-end 1,596,783,530.05 1,243,389,910.30 32,710,150.60 145,275,818.25 3,018,159,409.20
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 44,731,334.08 67,934,774.40 2,224,233.15 13,433,219.74 128,323,561.37
(1) Withdrawal 44,731,334.08 67,934,774.40 2,224,233.15 13,433,219.74 128,323,561.37
3.Decreased amount of the period 6,365,987.48 4,019,240.42 4,065,680.54 14,450,908.44
（1）Disposal 5,464,280.71 3,686,303.64 3,819,929.60 12,970,513.95
(2) Relocation transfer 901,706.77 332,936.78 245,750.94 1,480,394.49
4.Closing balance 211,726,237.99 796,580,369.31 24,487,930.68 46,508,510.13 1,079,303,048.11
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 1,871.00 715.16 2,586.16
（1）Disposal 1,871.00 715.16 2,586.16
4. Closing balance 9,028,267.09 3,233,483.11 12,261,750.20
IV. Book value
1.Book value of the period-end 1,376,029,024.97 443,576,057.88 8,222,219.92 98,767,308.12 1,926,594,610.89
2.Book value of the period-begin 1,096,798,480.03 447,037,101.25 9,347,656.84 105,239,953.71 1,658,423,191.83
57
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(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 -
43,117,019.15 In the process
Complete sets of factory
Other note
（5）Liquidation of fixed assets
22. Construction in progress
In RMB
Items End of term Beginning of term
Construction in progress 286,290,854.97 517,835,956.11
Total 286,290,854.97 517,835,956.11
(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
New Plant project 161,344,450.28 161,344,450.28 493,629,477.17 493,629,477.17
Annual output of 10
sets of gas turbine unit 81,700,278.09 81,700,278.09
project
Software project 13,362,743.79 13,362,743.79 11,327,261.17 11,327,261.17
Other project 27,285,325.58 27,285,325.58 9,356,085.45 9,356,085.45
Prepayment for
equipment or projects 2,598,057.23 2,598,057.23 3,523,132.32 3,523,132.32
Total 286,290,854.97 286,290,854.97 517,835,956.11 517,835,956.11
(2)Changes of significant construction in progress
In RMB
Includi
ng
Capital
g:
Capital iz
Budget Transf capital
Openi Other iz ation Source
erred End Project iz
（0'00 ng Increas decrea Propor ation of of
Name of project to balanc proces ation
0 balanc e se(Not tion % of interes fundin
fixed e s of
） e
assets
e) interes
interes
t g
t rate
t
(%)
this
period
58
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
493,62 337,39 161,34 Under
New Plant 173,32 5,106, 96.05 9,819,
9,477. 1,501. 4,450. constr 1.20% Other
project 8.76 474.88 % 482.47
17 77 28 uction
Annual output of
81,700 81,700 Under
10 sets of gas 50,000 16.34
,278.0 ,278.0 constr Other
turbine unit .00 %
9 9 uction
project
11,327 13,362
8,501, 6,465,
Software project ,261.1 ,743.7 Other
111.88 629.26
7 9
Photovoltaic
36,157 36,157
power 3,615. 100.00 Coom
,319.2 ,319.2 Other
generation 73 % pleted
3 3
project
30,235 12,306 27,285
9,356,
Other project ,463.9 ,223.8 ,325.5 Other
085.45
7 4 8
Prepayment for
3,523, 1,856, 2,781, 2,598,
equipment or Other
projects 132.32 065.03 140.12 057.23
517,83 163,55 388,63 286,29
226,94 6,465, 9,819,
Total 5,956. 6,713. 6,184. 0,854.
4.49 629.26 482.47
11 08 96 97
[Note] Other reductions in the current period are the software cost of intangible assets after the completion.
(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
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
In RMB
Items House and Building Mechanical equipment Total
I. Original price
1. Balance at period-
beginning 38,107,952.73 38,107,952.73
2.Increase in the current
period 9,859,326.72 391,374.21 10,250,700.93
（1）Rent 9,859,326.72 391,374.21 10,250,700.93
3.Decreased amount of
1,190,879.29 1,190,879.29
the period
(1)Disposition 1,190,879.29 1,190,879.29
4. Balance at period-end 46,776,400.16 391,374.21 47,167,774.37
59
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
II. Accumulated depreciation
1.Opening balance 7,670,173.81 7,670,173.81
2.Increased amount of the
period 12,386,849.44 195,687.12 12,582,536.56
(1) Withdrawal 12,386,849.44 195,687.12 12,582,536.56
3.Decreased amount of the
period 1,190,879.29 1,190,879.29
（1）Disposal 1,190,879.29 1,190,879.29
4.Closing balance 18,866,143.96 195,687.12 19,061,831.08
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 27,910,256.20 195,687.09 28,105,943.29
2.Book value of the period-
begin 30,437,778.92 30,437,778.92
Other note：
26. Intangible assets
(1) Information
In RMB
Items Land using right Patent Non patent technology Software Total
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 8,836,626.55 8,836,626.55
(1) Purchase 8,836,626.55 8,836,626.55
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 324,343,159.25 344,087.43 8,000,000.00 26,625,890.13 359,313,136.81
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 period 6,505,466.93 7,611.42 800,000.04 4,148,466.93 11,461,545.32
60
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(1) Withdrawal 6,505,466.93 7,611.42 800,000.04 4,148,466.93 11,461,545.32
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 67,306,817.90 283,831.36 6,066,666.95 10,811,032.13 84,468,348.34
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 257,036,341.35 60,256.07 1,933,333.05 15,814,858.00 274,844,788.47
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
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
Balance in year-end Balance in year-begin
Items
Deductible Deferred income Deductible Deferred income
temporary difference tax assets temporary difference tax assets
Provision for Asset Impairment 1,245,922,022.12 197,517,063.24 1,356,205,463.61 215,697,910.21
Internal trade profit not realized 21,474,851.24 3,221,227.69 58,598,289.97 8,789,743.49
Revenue from changes in fair value
generated by financial assets classified 870,485.96 130,572.89 7,103,959.98 1,065,594.00
at fair value through profit or loss
Temporary difference such as 99,651.17 14,947.68
61
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
amortizing of software expense
Relocation compensation 1,005,531,878.82 151,865,228.79 1,041,307,329.87 157,097,084.29
Total 2,273,799,238.14 352,734,092.61 2,463,314,694.60 382,665,279.67
[Note] Includes the relocation compensation of the Company and the machinery compan
(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 3,165,173,654.48 474,776,048.17 3,094,486,100.92 464,172,915.14
equity instruments
Accelerated 219,773.45 32,966.02
depreciation of fixed
assets
Total 3,165,393,427.93 474,809,014.19 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
352,734,092.61 382,665,279.67
assets
Deferred income tax
474,809,014.19 464,172,915.14
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible temporary difference
155,107,906.71 157,834,999.47
Deductible loss
123,070,154.92 166,619,930.21
Total 278,178,061.63 324,454,929.68
(5) The un-recognized deductible losses of deferred income tax assets will due in the following years:
In RMB
Year Balance in year-end Balance in year-begin Remark
2022 10,928,264.99
2023 10,388,277.67 14,149,816.48
2024 26,189,768.32 23,524,220.73
2025 5,397,758.37 2,773,270.33
2026 12,109,526.82 44,870,965.65
2027 2,554,125.34 1,036,145.13
2028 0.00 1,545,297.07
2029 4,137,298.09 6,802,845.68
2030 0.00 3,914,057.03
2031 46,982,771.08 57,075,047.12
2032 15,310,629.23
Total 123,070,154.92 166,619,930.21
62
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Other note
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Items Book Provision Book value Book Provision Book value
balance for balance for
devaluation devaluation
31,572,954 31,572,954
Advance equipment payment
.47 .47
13,350,000 13,350,000
Advance land payable
.00 .00
44,922,954 44,922,954
Total
.47 .47
Other note
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items
End of term Beginning of term
Mortgage Borrowings 50,059,115.83 74,897,015.73
Guarantee Borrowing 70,059,711.17 170,163,630.75
Credit borrowing 155,634,400.89 5,005,273.97
Domestic letter of credit discount loan 12,000,000.00
Total 287,753,227.89 250,065,920.45
Note：
(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 8,000,000.00 7,500,000.00
Bank acceptance bill 403,886,347.73 301,904,319.27
Total 411,886,347.73 309,404,319.27
The total amount of outstanding notes payable at the end of this period is RMB .
63
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
36. Accounts payable
(1) List of accounts payable
In RMB
Items
End of term Beginning of term
Goods 1,050,477,495.94 1,709,868,854.24
Equipment and Engineering 140,729,051.34 186,363,724.44
Other 11,709,180.01 13,917,609.46
Total 1,202,915,727.29 1,910,150,188.14
(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 230,204.48 812,701.37
Total 230,204.48 812,701.37
(2) Notes of the accounts payable aging over one year
38.Contract liabilities
In RMB
Items
End of term Beginning of term
Goods 2,306,912,441.68 3,052,515,293.06
Total 2,306,912,441.68 3,052,515,293.06
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Balance in year- Increase in this Payable in this Balance in year-
Items
begin period period(Note) end
I. Short-term compensation 99,276,656.74 911,420,247.64 910,642,301.53 100,054,602.85
II.Post-employment benefits -
defined contribution plans 33,845,853.18 121,962,082.03 116,847,864.48 38,960,070.73
III. Dismissal benefits 1,005,045.84 1,005,045.84
Total 133,122,509.92 1,034,387,375.51 1,028,495,211.85 139,014,673.58
[Note] The short-term salary of the Indonesian company is RMB 2,410.13,4..
（2）Short-term remuneration
In RMB
Balance in year- Increase in this Decrease in this Balance in year-
Items
begin period period end
(1) Salary, bonus, allowance and
82,689,765.59 712,280,561.79 707,392,082.09 87,578,245.29
subsidy
(2) Employee benefits 50,239,108.20 50,239,108.20
64
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(3) Social insurance expenses 8,702,497.23 61,362,582.76 62,509,036.82 7,556,043.17
Including: medical insurance
8,556,657.77 58,548,976.28 59,813,751.88 7,291,882.17
premium
Work-related injury insurance
145,839.46 2,813,606.48 2,695,284.94 264,161.00
premium
(4) Housing fund 458,552.96 74,911,731.37 74,912,020.37 458,263.96
(5) Labor union expenditures and
employee education expenses 7,425,840.96 12,626,263.52 15,590,054.05 4,462,050.43
Total 99,276,656.74 911,420,247.64 910,642,301.53 100,054,602.85
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
1.Basic pension
insurance 7,365,213.63 85,969,623.37 86,119,647.96 7,215,189.04
2. Unemployment
263,041.82 3,061,757.66 3,074,731.52 250,067.96
insurance
3. Enterprise annual fee 26,217,597.73 32,930,701.00 27,653,485.00 31,494,813.73
Total 33,845,853.18 121,962,082.03 116,847,864.48 38,960,070.73
Other note
40. Taxes Payable
In RMB
Items End of term Beginning of term
VAT 26,831,710.72 40,924,370.15
19,296,080.94 17,886,118.76
Enterprise Income tax
Property tax 14,880,121.69 7,532,910.03
Individual Income tax 3,947,213.74 2,870,186.04
Land use tax 3,836,290.15 1,912,650.90
City Construction tax 2,081,991.58 5,687,507.47
Education subjoin 941,347.25 2,485,447.07
Locality Education subjoin 632,108.09 1,666,388.01
Other 938,259.93 656,799.67
Total 73,385,124.09 81,622,378.10
Other note：
41.Other account payable
In RMB
Items End of term Beginning of term
Dividend payable 90,000.00
Other account payable 203,698,336.85 434,578,338.13
Total 203,788,336.85 434,578,338.13
65
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
（1) Interest payable
(2) Dividends payable
In RMB
Items End of term Beginning of term
Research Institute of Mechanical
90,000.00
Science, Zhejiang Branch Co., Ltd
Total 90,000.00
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items End of term Beginning of term
Restricted stock subscription funds(Note) 100,222,346.86 110,195,995.86
Provisional account payable 92,141,265.66 73,387,357.24
Deposit 8,650,506.77 7,710,407.05
Other 2,684,217.56 3,284,577.98
Related party demolition loan 240,000,000.00
Total 203,698,336.85 434,578,338.13
[Note] It is the accumulated restricted stock subscription payment paid by the equity incentive object during the
waiting period.
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 30,637,507.55 9,011,464.45
Rease liabilities due within 1 year 12,165,379.31 8,596,258.52
Total 42,802,886.86 17,607,722.97
Other note：
44. Other current liabilities
In RMB
Items End of term Beginning of term
Output tax to be transferred 266,480,963.69 394,535,629.47
Maintenance and renovation costs 1,105,000.00 1,105,000.00
Total 267,585,963.69 395,640,629.47
Other note
66
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items End of term Beginning of term
Mortgage loan 9,711,173.86 20,624,674.22
Guarantee loan 150,192,500.00 160,205,333.33
Total 159,903,673.86 180,830,007.55
Note：
Other notes，including interest rate range：
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
47. Lease liability
In RMB
Items End of term Beginning of term
Unpaid lease payments 17,206,632.59 24,310,879.76
Less：Financing charges are not
872,609.49 1,735,124.99
recognized
Total 16,334,023.10 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 10,774,088.21 7,249,677.56
Total 11,104,088.21 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
330,000.00 330,000.00
restructuring
Subtotal 330,000.00 330,000.00
(2) Special Payable
67
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
In RMB
Items Opening balance Increase Decrease End balance Reason
Compensation for
relocation 2,040,646.71 197,297,786.03 196,840,220.54 2,498,212.20
Funding for Personnel
Training 3,185,102.53 3,930,000.00 880,154.84 6,234,947.69
Simple dormitory area
demolition and 2,023,928.32 17,000.00 2,040,928.32
resettlement
Total 7,249,677.56 201,244,786.03 197,720,375.38 10,774,088.21
Other note：
1.The reduction of compensation for land requisition and relocation in the current period is caused by the carry-
over of compensation for land requisition and relocation, in which the corresponding part of the relocation cost of
RMB 16,150,800.00 in the current period is transferred to other income, and the corresponding part of the fixed
assets of RMB 180,689,420.54 in the new factory area put into use in the current period is transferred to deferred
revenue, as shown in Note X,XVI(8)2 to this Financial Statement.
2. Resettlement 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
729,438,751.74 199,510,020.54 51,567,642.43 877,381,129.85 government
Subsidy subsidies
Total 729,438,751.74 199,510,020.54 51,567,642.43 877,381,129.85 --
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:
Note：Please refer to Note X (7) 84 of the Financial Statements for details of the amount of government
subsidies included in the current profits and losses.
52. Other non-current liabilities
53. Stock capital
In RMB
Balance Year- Increase/decrease this time (+ , - ) Balance year-
beginning Issuing of Transferred end
Bonus shares Other Subtotal
new share from reserves
Total of
754,010,400.00 226,169,580.00 226,169,580.00 980,179,980.00
capital
68
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
shares
Other note
According to the "2021 Annual Profit Distribution Plan" adopted by the resolution of the 2021 Annual General
Meeting of Shareholders, this equity distribution was based on the total share capital of 754,010,400 shares at the
end of 2021, excluding the repurchased 111,800 treasury shares by the Company as of the record date of the
equity distribution, that was, the 753,898,600 shares was the basis, it distributed a cash dividend of 4.0 yuan per
10 shares (including tax) and 3 bonus shares (including tax) to all shareholders . The receipt of the above-
mentioned new registered capital has been verified by Zhejiang Southern Accounting Firm Co., Ltd, and the
"Capital Verification Report" (No. 012 [2022] Nanfang Yanzi) has been issued, and the Company has completed
the industrial and commercial change registration procedures on September 5, 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 Increase in the current Decrease in the current Year-end balance
Items
balance period period
Capital premium 204,650,998.01 57,888,141.49 262,539,139.50
Other capital reserves 78,295,032.49 54,101,690.01 132,396,722.50
Total 282,946,030.50 111,989,831.50 394,935,862.00
Other notes, including changes and reason of change:
(1) The current increase of share capital premium includes:
1) In the current period, the subsidiary Casting & Forging Company confirmed that due to the equity settlement
involving the share-based payment expenses for employees with immediate execution, the Company increased the
capital reserve - equity premium of 817,797.12 yuan according to the shareholding ratio.
2) Due to the purchase of equity of minority shareholders of the subsidiary Ranchuang Company, the difference
between the newly acquired long-term equity investment cost and the share of identifiable net assets of
continuously calculated from the merge date of the subsidiary enjoyed according to the proportion of newly added
shareholding was adjusted to increase capital reserve-equity premium of RMB 121,378.42
3) Due to dilution of share ratio (without loss of control) held by the Company resulted by the minority
shareholders of Zhongneng Company and Anhui Casting & Forging Company increased the capital, and the
Company included the difference between its share in the net book assets of the subsidiary before the capital
increase calculated according to the shareholding ratio before the capital increase and its share of the net book
assets of the subsidiary after the capital increase calculated according to the shareholding ratio after the capital
increase into the capital reserve- equity premium of 56,903,077.38 yuan.
(2) Other capital reserve increases in the current period include:
In the current period, the Company increased its capital reserve - other capital reserve of 54,101,690.01 yuan due
to the share-based payment expenses involving employees in the equity settlement, as detailed in Section 10 XIII
Explanation of Share Payment in this financial statement.
56. Treasury stock
In RMB
69
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
period period
Treasury stock 144,078,948.09 7,612,560.00 136,466,388.09
Total 144,078,948.09 7,612,560.00 136,466,388.09
Other notes, including changes and reason of change:
According to the resolution of the Company's 2021 Annual General Meeting, the Company distributed a cash
dividend of $4.00 (including tax) to all shareholders for every 10 shares, the number of expected lifted restricted
shares of the first grant was 19,031,400 shares, with the corresponding cash dividend of RMB 7,612,560.00, and
the corresponding reduction of other payables and treasury shares of RMB 7,612,560.00.
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 Other Closing
Items the current Less：
balance incurred composite attribute to attribute to (Note) 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
comprehensive
income that cannot 2,630,313,1 70,687,553. 10,603,133. 60,084,420. 2,690,397,6
85.77 56 03 53 06.30
be reclassified in
the loss and gain in
the future
Changes in fair
value of
2,630,313,1 70,687,553. 10,603,133. 60,084,420. 2,690,397,6
investments in 85.77 56 03 53 06.30
other equity
instruments
2.Other
comprehensive
-
income - - - 947,478.62
reclassifiable to 835,428.78 263,153.79 112,049.84 151,103.95
profit or loss in
subsequent periods
-
Difference of - - - 947,478.62
835,428.78 263,153.79 112,049.84 151,103.95
translating of
70
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
foreign currency
accounts
Total of other 59,972,370
2,629,477,7 70,424,399. 10,603,133. - 947,478.62 2,690,397,6
comprehensive 56.99 77 03 .69 151,103.95 06.30
income
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
Other changes in the current period are due to changes in the scope of consolidation and the corresponding
transfer of the difference in the translation of the foreign currency financial statements attributable to the
Company by RMB -947,478.62.
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 5,749,535.20 6,277,242.80 17,841,325.92
Total 18,369,033.52 5,749,535.20 6,277,242.80 17,841,325.92
Other note, including changes and reason of change:
(1) The current decreases include:
1) The Company withdrew safety production expenses of 5,306,323.51 yuan for the purchase of safety protective
commodity and equipment.
2) The minority shareholders of the subsidiary Zhongneng Company increased capital result in dilution of the
proportion of equity owned by the Company (without losing control), and transferred out the special reserve of
970,919.29 yuan.
(2) 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. After adding the work safety
expenses attributable to minority shareholders, the total of the Company's work safety expenses at the end of the
period is RMB27,841,261.86.
59. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus
reserves 625,178,089.82 625,178,089.82
Total 625,178,089.82 625,178,089.82
Other note, including changes and reason of change
71
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
60. Retained profits
In RMB
Items Amount of this period Amount of last period
Adjust the undistributed profits before and at
3,761,583,410.91 3,415,358,402.27
the end of the period
Add：Net profit belonging to the owner of the
522,396,807.32 649,992,474.56
parent company
Common stock dividend payable 527,565,579.99 185,864,649.99
Other 117,902,815.93
Retained profits at the period end 3,756,414,638.24 3,761,583,410.91
Other note:
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: In
2021, 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, 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），A total stock dividend of RMB 226,169,580.00 and a cash dividend of RMB 301,559,439.99, of which a cash
dividend of RMB 163,440.00 was distributed to the expected unlockable restricted stock.
(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
Main Business 5,495,693,244.56 4,016,656,619.93 5,756,713,931.47 4,062,659,604.63
Other 23,148,695.26 10,758,183.33 31,574,657.44 29,295,888.06
Total 5,518,841,939.82 4,027,414,803.26 5,788,288,588.91 4,091,955,492.69
Whether the net profit before and after deducting non-recurring gains and losses is negative after audit
□ Yes √ No
In RMB
Information related to performance obligations:
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.
Information related to transaction value assigned to residual performance obligations:
72
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 7,919,070,000.00.
Other note
62.Taxes and surcharges
In RMB
Items Amount of this period Amount of last period
Urban maintenance and construction tax 10,009,589.55 15,477,429.38
Educational surtax 4,366,464.42 6,755,116.33
Locality Education surcharge 2,910,976.25 4,506,158.80
House tax 14,957,149.91 11,919,435.52
Land royalties 2,400,686.40 4,610,225.78
Stamp tax 3,667,483.45 2,477,515.63
vehicle and vessel tax 60,286.64 69,072.31
Other 11,122.15 14,076.50
Total 38,383,758.77 45,829,030.25
Other note：
63. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 131,040,859.19 101,207,766.17
Consulting service fee 25,231,173.94 26,377,049.32
Travel expenses 24,781,070.36 26,421,118.72
Business reception expenses 17,726,723.65 16,944,060.09
Three charge 7,800,806.05 18,802,491.64
Warehousing 5,028,381.37 2,872,837.87
Conferences 1,758,083.86 1,732,483.74
Advertising fee 1,584,233.98 1,841,852.03
Other 6,538,191.20 6,668,898.24
Total 221,489,523.60 202,868,557.82
Other note
64. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 394,509,449.15 435,806,921.20
Stock payable 56,252,090.01 17,297,907.40
Asset depreciation and amortizing 42,711,626.99 33,173,062.19
Rental fee, House rental, property
22,495,865.42 38,197,856.49
management, water and power
Office expenses 10,780,226.70 12,664,641.22
Material consumption and amortization
6,589,584.68 6,451,854.48
of low-value consumables
Agency fee 8,075,703.91 8,949,478.71
Repair costs 7,522,911.20 14,285,987.83
Travel expenses and overseas travel
5,647,664.14 6,827,063.68
expenses
Enterprise relocation costs [Note] 31,652,234.54
Other 36,353,147.51 54,977,315.56
Total 590,938,269.71 660,284,323.30
73
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Other note:
The relocation expenditure incurred in the current period was RMB 16,150,800.00 and it’s presented under
employee remuneration.
65. R&D Expense
In RMB
Items Amount of this period Amount of last period
Labor cost 162,914,571.31 170,270,207.41
Direct materials 98,709,801.80 145,030,641.50
Depreciation expenses 5,331,971.14 9,953,767.74
Test and inspection fee 4,583,898.71 2,322,130.32
Commissioned research & development 5,246,830.91 8,013,059.40
Other 7,452,809.17 14,626,828.74
Total 284,239,883.04 350,216,635.11
Other note
66. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expense 24,366,789.74 23,435,810.36
Less: Incoming interests 18,946,425.24 18,328,752.35
Exchange gains/losses -38,338,007.69 1,903,566.98
Commission 3,621,245.27 2,738,299.23
Total -29,296,397.92 9,748,924.22
Other note：
67. Other income
In RMB
Items Amount of this period Amount of last period
Government subsidies related to assets 29,873,987.51 30,843,067.37
Government subsidies related to income 43,438,557.91 171,327,615.80
Individual tax commission refunds 418,128.89 377,834.86
[Note] For the government subsidies included in other income in this period, see Section X VII 84 of this report.
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity method -563,981.22
Investment income of trading financial assets during the
holding period -2,689,211.31 -3,273,132.15
Investment income obtained from the disposal of trading
financial assets 36,295,722.69 81,906,736.97
Dividend income from other equity instrument investments
during the holding period 364,839.26 21,765.89
74
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Dividend income derived from other equity instrument
95,156,322.10 95,156,322.10
investments during the holding period
Debt restructuring gains 7,035,391.36 1,617,382.00
Other -6,491,695.59
Total 135,599,082.88 168,937,379.22
Other note：
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 -646,522.64 963,450.48
Other non-current financial assets 960,000.00 -1,104,976.32
Total 313,477.36 -141,525.84
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Losses on bad debt 82,441,348.93 15,768,143.94
Total 82,441,348.93 15,768,143.94
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 costs -32,352,000.41 -26,504,227.85
V. Impairment loss of fixed assets -9,028,267.09
XII. Loss of impairment of contract assets 7,911,784.28 7,021,475.51
Total -24,440,216.13 -28,511,019.43
Other note：
73. Asset disposal income
In RMB
Source Amount of this period Amount of last period
Profits of disposal of fixed assets 95,281.00 1,094,656.77
Total 95,281.00 1,094,656.77
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
Compensation income[Note] 56,511,643.28 131,153,708.15 56,511,643.28
No payment required 1,136,297.51 2,662,252.07 1,136,297.51
Loss of non-current assets:
102,213.90
obsolescence gain
75
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Other 2,507.61 434,801.16 2,507.61
Total 57,650,448.40 134,352,975.28 57,650,448.40
Government subsidies recorded into current profits and losses：
[Note] The compensation income for this period is mainly based on the "Long-
period Suspension Unit Cancellation Agreement" signed between the company and Shenyang Turbine Machine C
o., Ltd. The project was cleared and released, and after the communication between the two parties, it was confir
med that the breach of contract income of the project was RMB 39.5835 million.
In RMB
Whether the
impact of Amount of Amount of
Whether Assets-
Issuing subsidies on
Items Issuing body Nature special related/incom
Reason the current current previous
subsidies e -related
profit and
loss
period period
75. Non-operational expenses
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Compensation expenses 1,955,731.38 9,386,784.95 1,955,731.38
Donations 765,000.00 310,000.00 765,000.00
Non-current assets scrapping
324,233.68 78,963,545.45 324,233.68
loss
Fine, late payment 45,155.29 203,901.79 45,155.29
Other 40,455.62 23,067.14 40,455.62
Total 3,130,575.97 88,887,299.33 3,130,575.97
76. Income tax expenses
(1) Details
In RMB
Items Amount of this period Amount of last period
Income tax of current term 52,728,108.37 67,189,032.96
Deferred income tax 29,964,153.08 38,110,661.41
Total 82,692,261.45 105,299,694.37
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Amount of this period
Total profit 707,931,620.14
Income tax expense at parent company's applicable tax rate 106,189,743.02
Effect of different tax rates applicable to subsidiaries 6,913,411.96
Adjustment for income tax in prior year 1,682,143.93
Income not subject to tax -14,012,598.42
Effects of non-deductible costs, expenses and losses 4,523,132.62
76
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Impact of deductible losses on the use of previously unrecognized deferred income
-2,457,232.80
tax assets
The current period does not affect the deferred tax assets recognized deductible
2,187,123.38
temporary differences or deductible loss
Impact of additional deductions for R & D expenses -30,529,223.73
Impact of additional deduction for equipment and appliances of high-tech
-32,966.02
enterprises in the fourth quarter
Impact of additional deductions for the disabled -389,996.66
Impact of share payments 8,618,724.17
Income tax expenses 82,692,261.45
77. Other Comprehensive income
For details, please refer to Note X(VII)57
78. Notes Cash flow statement
(1) Other cash received from operating activities
In RMB
Items Amount of this period Amount of last period
Recovery of operating bank deposits 199,173,666.41 398,801,063.82
Government subsidies received 27,321,284.08 31,902,074.30
Deposit interest 18,946,425.24 18,237,333.89
Receipt of operating current account 3,936,945.05 5,033,170.11
Lease income 1,091,668.02 2,966,095.79
Compensation income 97,470.00 35,240,999.31
Other 569,757.57 812,636.02
Total 251,137,216.37 492,993,373.24
Note：
(2) Other cash paid related to operation
In RMB
Items Amount of this period Amount of last period
Payment of operational bank 180,292,694.53
223,049,919.64
deposits
Payment cash Management expenses 81,915,119.72 148,934,743.59
Payment cash sales expenses 86,924,480.00 102,134,607.20
Payment cash R & D cost 16,719,251.91 25,057,788.44
Payment cash financial expenses 3,621,245.27 2,738,299.23
Pay compensation 100,134.80 4,529,909.30
Other 850,610.91 536,968.94
Payment of business transactions 19,701,721.07
Total 370,423,537.14 526,683,957.41
（3）Other investment-related cash received
In RMB
Items Amount of this period Amount of last period
Repurchasing of trusteeship 2,430,000,000.00 3,758,818,000.00
Receipt of levy and relocation
197,297,786.03
compensation
Receive the interest on the funds
192,426.85
occupied by the non-related parties
77
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Reduction of Hangzhou bank convertible
687,572,000.00
bond
Get the cash received by the subsidiaries 1,275,088.15
Total 2,627,490,212.88 4,447,665,088.15
（4）Other cash paid for investment activities
In RMB
Items Amount of this period Amount of last period
Purchasing of financial products 2,077,000,000.00 3,696,000,000.00
Net cash paid by disposal subsidiaries
8,697,180.39
(negative)
Purchasing of convertible bonds 687,572,000.00
Total 2,085,697,180.39 4,383,572,000.00
（5）Other cash paid for Financing activities
In RMB
Items Amount of this period Amount of last period
Recovering the right to use the assets
200,000.00
deposit
Received of restricted stock warrants 110,195,995.86
Discounting payment of financing bill 7,500,000.00
Total 200,000.00 117,695,995.86
（6）Other cash paid relevant to financing activities
In RMB
Items Amount of this period Amount of last period
Return the related party's capital
245,425,672.29 40,373,179.58
occupation and interest
Pay the rent of the right to use the asset 15,314,937.25 7,337,642.50
Financing notes due and payment 7,500,000.00
buy minority stake 2,902,611.00 53,295,800.13
Repurchase stocks 2,197,649.00
Payment of CDB investment interest 155,000,000.00
Subsidiary cancels and returns minority
12,725,371.88
shareholders
Pay interest on CDB Fund investment 2,021,333.33
Payment of discounted interest on
328,968.75
financing bills
Total 273,340,869.54 271,082,296.17
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 625,239,358.69 727,247,759.79
Add: Impairment loss provision of assets -58,001,132.80 12,742,875.49
Depreciation of fixed assets, oil and gas assets and consumable
biological assets 128,776,068.89 104,261,255.33
Depreciation of Use right assets 12,582,536.56 7,670,173.81
78
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Amortization of intangible assets 11,461,545.32 10,482,651.22
Amortization of Long-term deferred expenses 3,520.00
Loss on disposal of fixed assets, intangible assets and other long-
term deferred assets -95,281.00 -1,094,656.77
Fixed assets scrap loss 326,033.68 78,861,331.55
Loss on fair value changes -313,477.36 141,525.84
Financial cost -14,033,357.95 25,227,104.80
Loss on investment -131,252,902.83 -170,593,129.37
Decrease of deferred income tax assets 29,931,187.06 38,837,335.36
Increased of deferred income tax liabilities 32,966.02 -726,673.95
Decrease of inventories 686,701,189.28 -764,962,478.57
Decease of operating receivables 409,317,867.69 -297,533,528.78
Increased of operating Payable -1,433,059,686.61 284,977,912.55
Other 56,527,890.99[Note] 16,266,510.72
Net cash flows arising from operating activities 324,140,805.63 71,809,489.02
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：
Ending balance of cash 1,805,028,401.76 1,467,538,968.07
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 337,489,433.69 -382,815,680.03
[Note] Others include the net change in special reserves of RMB 275,800.98 and the confirmation of share-
based payment expenses of RMB 56,252,090.01 in the current period
(2) Net Cash paid of obtaining the subsidiary
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Current disposal of cash or cash equivalents received by
2,000,000.00
subsidiaries during the current period
Of which:
Of which:Indonesia Comapny 2,000,000.00
Less: Cash and cash equivalents held by the Company on days
10,697,180.39
of loss of control
Of which:
Of which:Indonesia Comapny 10,697,180.39
Of which:
Net cash received from the disposal of subsidiaries -8,697,180.39
79
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
1,805,028,401.76 1,467,538,968.07
I.Cash
107,551.80 65,904.06
Of which: Cash in stock
Bank savings could be used at any time 1,804,892,189.83 1,467,310,722.30
Other monetary capital could be used at any time 28,660.13 162,341.71
III. Balance of cash and cash equivalents at the
1,805,028,401.76 1,467,538,968.07
period end
(1) Monetary funds that do not belong to cash and cash equivalent
Items Year-end balance Year-beginning balance
Bank acceptance bill margin 92,639,033.89 151,092,217.21
Guarantee deposit 9,321,352.25 4,235,062.51
Pledge time deposit 47,973,000.00
ETC business margin 19,000.00 17,000.00
Subtotal 149,952,386.14 155,344,279.72
(2) Endorsement transfer amount of commercial bills not involving cash receipts and payments
Items Current amount Amount of the same period last
year
Amount of commercial bill endorsed and transferred 1,304,085,972.09 1,539,746,319.56
In which: payment for goods 1,296,077,749.78 1,486,046,319.56
Payment for the purchase of long-term assets such as fixed 8,008,222.31 12,700,000.00
assets
Payment of loan 41,000,000.00
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
Monetary capital 149,952,386.14
acceptance bill and bill of guarantees
Used as security for issuing of
Notes receivable 11,130,774.54
acceptance drafts and bill
Receivables financing 143,516,310.23
Used as security for issuing of
Fixed assets 124,868,888.02
acceptance drafts and bill
Used as security for issuing of
Intangible assets 17,207,776.09
acceptance bill and bill of guarantees
Total 446,676,135.02
82. Monetary items in foreign currencies
80
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(1) Foreign currency monetary items
In RMB
Translated to RMB at end of
Items Balance at end of period Exchange rate
period
Monetary capital 408,588,968.12
Incl：USD 58,245,732.47 6.9646 405,658,228.36
Euro 393,677.46 7.4229 2,922,228.42
HKD 6,383.13 0.89327 5,701.86
Yen 53,659.00 0.052358 2,809.48
Account receivable 183,412,441.10
Incl：USD 24,988,196.84 6.9646 174,032,795.71
Euro 1,230,284.14 7.4229 9,132,276.14
HKD
SGD 47,726.12 5.1831 247,369.25
Long-term loans
Incl：USD
Euro
HKD
Other receivable 3,482,300.00
Incl：USD 500,000.00 6.9646 3,482,300.00
Contract assets 4,302,231.28
Incl：USD 542,440.00 6.9646 3,777,877.62
Euro 70,640.00 7.4229 524,353.66
Euro 11,335,719.76
Incl：USD 625,951.96 6.9646 4,359,505.02
Euro 939,823.35 7.4229 6,976,214.74
(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
In RMB
Amount included in current profit
Items Amount Project
and loss
81
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
（2）Government subsidy return
□ Applicable √ Not applicable
Other note：
(1) Detail
1) Asset-related government subsidies
Current
Beginning Ending amortization
Items Current subsidy increase Current amortization
Deferred income Deferred income Item
presentation
Relocation and relocation 587,965,976.12
compensation (Shiqiao Road 180,689,420.54 21,141,733.79 747,513,662.87 Other income
factory area)
Relocation and relocation 126,889,398.13
compensation (Hangfa factory 8,663,283.72 118,226,114.41 Other income
area)
Financial subsidy for
143,900.00 28,780.00 115,120.00 Other income
industrial projects
Subsidy for casting and
143,900.00 28,780.00 115,120.00 Other income
forging projects
Financial subsidy for recycling
57,050.00 11,410.00 45,640.00 Other income
economy
Subtotal 715,200,224.25 180,689,420.54 29,873,987.51 866,015,657.28
2) Income-related Government grants used to compensate for related costs or losses incurred by the company
Items At the beginning of New subsidies for This period of End-of-term deferred Amortize the
the deferred this period amortization income items in this
income period
Supported by Zhejiang Gas
Turbine Machinery
14,238,527.49 68,000.00 5,487,675.12 8,818,852.37 Other income
Manufacturing Innovation
Center
Zhejiang Province science and
technology plan project 2,601,800.00 55,179.80 2,546,620.20 Other income
subsidies
Subtotal 14,238,527.49 2,669,800.00 5,542,854.92 11,365,472.57
3) Income-related government subsidies used for compensation of relevant costs and expenses or losses incurred
in the Company
Items Amount Item presentation
Relocation and relocation compensation (Shiqiao Road factory area) 16,150,800.00 Other income
Social security return 4,063,515.21 Other income
R & D investment subsidy funds 3,285,200.00 Other income
The first batch of financial support funds for district-level Kunpeng and quasi-
2,225,245.00 Other income
Kunpeng enterprises
One-time job training subsidy 1,691,000.00 Other income
Incentive funds for the first (set) product 1,500,000.00 Other income
Procurement incentive funds for backbone enterprises 1,422,000.00 Other income
Special funds for the development of military-civilian integration 1,370,000.00 Other income
Funding for Talent Cultivation 910,154.84 Other income
Subsidies for digital transformation research projects 609,300.00 Other income
Industry-university-research cooperation subsidy funds 500,000.00 Other income
Special financial funds for industrial and information technology development 500,000.00 Other income
District-level supporting funds for provincial-level industrial Internet platforms 500,000.00 Other income
82
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Special fund for new manufacturing plan 500,000.00 Other income
Factory IoT Project Grants 479,300.00 Other income
patent grant 442,580.46 Other income
"Manufacturing Quality Award" incentive funds 300,000.00 Other income
Brand building subsidy 200,000.00 Other income
Foreign trade development fund project subsidy 200,000.00 Other income
property tax refund 143,264.07 Other income
Qiantang District encourages employees from outside the province to stay in the
100,000.00 Other income
district during the New Year to stabilize jobs and promote production subsidies
Qiantang District Outstanding Contribution Enterprise Award 100,000.00 Other income
Incentive funds for stable production and growth 100,000.00 Other income
Subsidies for sea and air transportation for key foreign trade enterprises 100,000.00 Other income
Other 503,343.41 Other income
Subtotal 37,895,702.99
(2) The current amount of government subsidies included into the current profits and loss is RMB 73,312,545.42.
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）Merger 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
(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
83
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
Yes□ No
In RMB
The
differen
ce
between
the Amount
disposal Determi transferr
price Book Fair nation ed from
Perce
and the value value method other
ntage
share of of of and compreh
of Gain or
Determi the remai remai main ensive
point remai loss from
Equi Equity nation subsidia ning ning assumpti income
of ning remeasur
Subsi Equity ty dispos basis for ry's net equity equity ons of related
loss equity ement of
diary disposa disp al the point assets at on the at the fair to equity
of at the remainin
name l price osal metho of loss the date date value of investme
contr date g equity
ratio d of consolid of of remainin nt in
ol of loss at fair
control ated loss loss g equity atomic
of value
financial of of on the company
contro
stateme contr contr date of to
l
nt level ol ol loss of investme
correspo control nt profit
nding to and loss
the
disposal
investm
ent
Industria
l and
commer
Indon Agree Dece
cial -
esia 6,120,0 70.0 ment mber 993,654.
change 1,557,63
Coma 00.00 0% transfe 27, 43
registrati 5.65
pny r 2022
on is
complet
ed
Other note
In November 2022, Zhongneng Company and PT.HANGZHOU TURBINE SERVICES signed the Equity
Transfer Agreement, in which transferred its 70% equity of the Indonesian company to PT.HANGZHOU
TURBINE SERVICES at a price of 6.12 million yuan. The equity transfer was obtained with a decree issued by
the Local Ministry of Justice and Human Rights in Indonesia on December 27, 2022. The net asset value of the
Indonesia Company as of December 31,2022 was 7,323,350.80 yuan, and the net assets of the Indonesian
company enjoyed by Zhongneng Company were 5,126,345.57 yuan according to the 70% shareholding ratio, and
84
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
the difference of 993,654.43 yuan to the disposal price of 6,120,000.00 yuan was recognized as investment
income; Meanwhile, other comprehensive income related to the equity investment of the Indonesian company-
changes in the translation difference in foreign currency financial statements was transferred to the profit or loss
of the current period when lost the control, and the investment income was recorded in the consolidated statement
of -1,557,635.65 yuan; the total investment income recognized was RMB-563,981.22.
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:
Reduced scope of consolidation：
Net profit from
Equity disposal
Name Equity disposal point Net assets on disposal date opening to disposal
method
date
Hangzhou Steam
Turbine Power Group
M&A 2022.12.26 10,076,214.15 1,001,509.06
Equipment Engineering
Co., Ltd
[Note] Due to the needs of business development, the New Energy Company signed a Merger Agreement with its
subsidiary Hangzhou Steam Turbine Power Group Equipment Engineering Co., Ltd., which was absorbed and merged on
August 11, 2022 as the base date, and whose legal person status was cancelled.
6.Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Share proportion %
Name of the Main business Business
Reg. Add. Way of obtain
subsidiaries location property Direct Indir
ect
Auxiliary Hangzhou Hangzhou
Zhejiang Zhejiang Manufacturing 87.53% Incorporation
Machine Co.
Packaged Hangzhou Hangzhou
Technologies Zhejiang Zhejiang Commerce 75.86% Incorporation
Co.
Hangzhou Hangzhou
Machinery Co. Zhejiang Zhejiang Manufacturing 52.00% Incorporation
Hangzhou Hangzhou
Turbine Co. Zhejiang Zhejiang Commerce 100.00% Incorporation
Zhongneng Hangzhou Hangzhou Manufacturing 46.89% Incorporation
Company
Zhejiang Zhejiang
Casing Manufacturing
Hangzhou Hangzhou 38.03% Incorporation
Company
85
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Zhejiang Zhejiang
New Energy Hangzhou Hangzhou Construction Business consolidation
Company business 100.00% under the same control
Zhejiang Zhejiang
Hangzhou Hangzhou Business consolidation
Sales Company Transportation 30.00% under the same control
Zhejiang Zhejiang industry
China
Mechanical Hangzhou Hangzhou Business consolidation
Commerce 55.00%
Institute under the same control
Company Zhejiang Zhejiang
Ranchuang Hangzhou Hangzhou Business consolidation
Commerce 100.00%
Company under the same control
Zhejiang Zhejiang
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 2022, the subsidiary Zhongneng Company introduced strategic investors and simultaneously
implemented employee shareholding, resulting in the Company's shareholding ratio falling from 60.83% to
46.89%. Since the shareholding ratio of the Company still exceeds 1/3, the three of the seven directors are
appointed by the Company, and two other directors have signed the "Concerted Action Person Agreement" with
the Company, thus the Company controls Zhongneng Company.
(2) In December 2018, the subsidiary Casting & Forging Company introduced external strategic investors,
resulting in the Company's shareholding ratio falling from 51% to 38.03%. Since the Company still holds more
than 1 / 3 equity and holds three of the five board seats, it has control over the casting company.
(3) On November 11, 2021, the Company acquired 30% of the equity of the sales company. According to the
articles of association of the sales company and the resolution of the shareholders' meeting, the board of directors
of the sales company has five board seats, and the five directors are appointed by the company, so the Company
has control over the sales company.
(2) Significant not wholly owned subsidiary
In RMB
Share portion of Gains/loss of the period Dividend announced in Balance of equity of
Name of the
minor attributable to minor the period to minor minor shareholders at
subsidiaries
shareholders shareholders shareholders end of period
Auxiliary Machine Co. 12.47% 6,051,090.09 4,988,000.00 39,619,762.30
Packaged Technologies
Co. 24.14% 4,536,645.86 7,388,370.00 27,515,386.95
Machinery Co. 48.00% 45,796,935.33 28,800,000.00 111,510,409.92
Zhongneng Company 53.11% 30,941,153.08 159,836,453.72
Casing Company 61.97% -1,135,708.59 187,852,632.33
Sales Company 70.00% 9,063,892.86 3,150,000.00 39,631,556.03
China Mechanical
Institute Company 45.00% 131,860.13 90,000.00 1,294,748.59
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other note:
86
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
End of term Beginning of term
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
662,28 86,972 749,26 417,63 420,39 733,02 78,861 811,89 491,55 491,55
ary 2,761,
Machi 8,146. ,351.1 0,497. 8,359. 9,987. 9,315. ,833.8 1,149. 5,820. 5,820.
627.48
ne Co. 11 5 26 89 37 32 8 20 43 43
Packag
ed 289,27 298,40 183,55 184,44 295,13 302,39 176,62 176,62
9,134, 892,83 7,257,
Techn 2,485. 6,581. 4,800. 7,638. 5,373. 2,408. 2,637. 2,637.
ologies 096.47 7.72 034.74
34 81 43 15 75 49 98 98
Co.
Machi 341,33 27,559 368,89 132,13 136,58 287,17 24,884 312,05 113,11 115,15
4,453, 2,040,
nery 8,629. ,634.5 8,264. 1,820. 4,910. 3,778. ,211.2 7,989. 4,270. 4,917.
Co. 089.98 646.71
47 7 04 03 01 22 6 48 68 39
Zhong
neng 1,592, 256,91 1,849, 1,277, 271,09 1,548, 1,543, 271,31 1,814, 1,464, 289,54 1,754,
Compa 257,46 6,512. 173,97 138,14 1,873. 230,01 408,28 1,148. 719,43 528,61 8,659. 077,27
ny 5.58 99 8.57 3.86 73 7.59 8.89 18 7.07 0.29 78 0.07
Casing 488,55 161,44 649,99 324,87 20,186 345,06 447,03 163,45 610,49 278,72 36,696 315,42
Compa 0,333. 3,351. 3,684. 3,817. ,372.2 0,189. 2,301. 8,336. 0,637. 4,887. ,712.5 1,599.
ny 02 10 12 53 3 76 14 65 79 30 5 85
Sales 83,930 39,162 123,09 59,249 66,476 83,054 39,677 122,73 68,682 74,564
7,226, 5,882,
Compa ,156.8 ,681.5 2,838. ,528.0 ,329.7 ,537.4 ,964.5 2,502. ,231.7 ,411.8
ny 801.73 180.09
4 2 36 2 5 9 6 05 2 1
China
Mecha
nical
3,101, 3,102, 224,84 224,84 2,789, 3,639. 2,793, 8,885. 8,885.
Institut 827.75
e 236.65 064.40 5.30 5.30 442.19 53 081.72 14 14
Compa
ny
Other note
loss and cash flow situation
Amount of current period
Subsidiaries Name Cash flow for business
Turnover Net profit Total Misc Gains
activities
Auxiliary Machine
588,105,536.05 48,525,181.12 48,525,181.12 57,131,179.98
Co.
Packaged
234,634,434.19 18,789,173.15 18,789,173.15 35,510,559.98
Technologies Co.
Machinery Co. 306,871,315.89 95,410,281.94 95,410,281.94 87,100,058.13
Zhongneng Company 1,477,489,208.21 78,762,807.47 78,499,653.68 -108,465,527.91
Casing Company 439,244,605.73 84,265.32 84,265.32 -3,154,973.95
Sales Company 158,482,208.91 12,948,418.37 12,948,418.37 17,232,333.27
China Mechanical
2,974,643.71 293,022.52 293,022.52 298,655.05
Institute Company
(Continued)
Subsidiaries Name Amount of previous period
87
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Cash flow for business
Turnover Net profit Total Misc Gains
activities
Auxiliary Machine
604,581,929.89 84,567,191.43 84,567,191.43 -24,601,989.64
Co.
Packaged
275,556,715.10 19,607,516.09 19,607,516.09 -9,009,596.18
Technologies Co.
Machinery Co. 305,270,504.99 74,265,964.44 74,265,964.44 56,947,908.11
Zhongneng
Company 1,374,266,364.91 5,949,744.78 5,509,658.10 138,098,467.82
Casing Company 502,362,854.32 28,136,543.47 28,136,543.47 11,414,695.55
Sales Company 227,668,616.83 10,861,889.02 10,861,889.02 30,147,532.45
China Mechanical
3,614,549.00 755,007.44 755,007.44 -57,796.60
Institute Company
(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
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
Change time Shareholding ratio before Shareholding ratio after
Subsidiaries Name
change change
Ranchuang Company 2022.8.24 85.60% 100.00%
Zhongneng Company 2022.12.31 60.83% 46.89%
Anhui Casting Company 2022.12.31 67.00% 51.54%
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
In RMB
Ranchuang Company Zhongneng Company Anhui Casting Company
Cost/disposal
2,902,611.00
consideration
--Cash 2,902,611.00
-- Fair value of the non-cash
assets
Total purchase
cost/disposal 2,902,611.00
consideration
Less: share of net assets
of subsidiaries calculated
according to the 3,023,989.42 55,956,542.77 56,544.55
proportion of equity
acquired/disposed of
Difference -121,378.42 -55,956,542.77 -56,544.55
Including: adjustment of
-121,378.42 -55,956,542.77 -21,503.89
capital reserve
Adjustment of Surplus
reserve
Adjustment of the minority -35,040.66
88
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
shareholders' equity
Other note
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
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.
89
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(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.
3. Please refer to Notes X (7)4,5,8 ,10 and 16 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 December 31,2022, the Company has a
characteristic of specific credit risk concentration. 39.04% (December 31,2021: 46.36%) 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
Items Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Bank loans 478,294,409.30 501,882,838.03 331,194,021.29 119,282,104.41 51,406,712.33
Notes payable 411,886,347.73 411,886,347.73 411,886,347.73
Account payable 1,202,915,727.29 1,202,915,727.29 1,202,915,727.29
Other payable 203,788,336.85 203,788,336.85 203,788,336.85
Lease 28,499,402.41 30,325,807.64 13,119,175.05 14,501,193.61 2,705,438.98
liabilities[Note]
Subtotal 2,325,384,223.58 2,350,799,057.54 2,162,903,608.21 133,783,298.02 54,112,151.31
(Continued)
Items Year-beginning balance
90
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 93,584,460.78 104,913,424.66
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
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
Subtotal 3,125,212,251.28 3,158,554,549.75 2,935,745,784.55 110,663,356.90 112,145,408.30
Note: Exclusive of Long-term payable—Restructured withholding and special payables
(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 December 31, 2022, the company's bank borrowings with floating interest rate were RMB
160,000,000.00 (December 31, 2021: RMB189,600,000.00). 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 (VII)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
measurement measurement Total
items at level
items at level 1 items at level 3
2
I. Consistent fair value
-- -- -- --
measurement
一Consistent fair value
1,998,737.18 610,537,179.48 612,535,916.66
measurement
1. Transactional financial assets and 1,998,737.18 610,537,179.48 612,535,916.66
91
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
other non-current financial assets
Financial assets classified as fair
605,002,406.26 605,002,406.26
value through profit or loss
Financing product 1,998,737.18 5,534,773.22 7,533,510.40
Equity instrument investment 817,555,768.45 817,555,768.45
2. Financing receivable 3,556,127,694.48 3,556,127,694.48
3. Other equipment instrument
3,558,126,431.66 1,428,092,947.93 4,986,219,379.59
investment
Total liabilities of consistent fair
-- -- -- --
value measurement
II. Non-continuous 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 im
portant parameters
4. Continuous and non-continuous third-
level fair value measurement items, using valuation techniques and qualitative and quantitative information on im
portant parameters
1. For held short-
term wealth management products with floating income and equity instrument investments, the company adopted
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 ar
e 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 .
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
Name of the parent Voting ratio in the
Registered place Business nature Registered capital in the Company
company Company (%)
(%)
Steam Turbine
Hangzhou China Manufacturing 800 million 63.64% 63.64%
Holdings
92
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Notes
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of the
Company.
Other note：
2.Subsidiaries of the enterprise
For details of the subsidiary, see note X,9 to the financial statements.
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
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 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 Oxyen Cryogenic Container Co., Ltd Affiliated enterprise of Hangzhou Oxygen
Hangzhou Oxyen Tooling Pump Co., Ltd Affiliated enterprise of Hangzhou Oxygen
Hangzhou Oxygen Machine Research Institute Co.,
Affiliated enterprise of Hangzhou Oxygen
LTD
Hangzhou Guoyu International Trade Co., Ltd. Affiliated enterprise of Hangzhou Capital
Greenesolpower systems PVT Ltd. shareholding enterprise of the company
Hangzhou Relian Group Co.,Ltd. Yang Yongming is a director of the company
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 current Amount of Amount of last
Related parties trading limit or
transaction period
not?
period previous period
Hangzhou Oxygen Turbine
Parts 1,785,840.69 3,500,000.00 No 3,948,672.19
Machinery Co., Ltd
Greenesol
Technical service 1,389,571.62 0.00 Yes
power systems PVT Ltd.
Hangzhou Oxyen Tooling
Regulating value 292,917.77 0.00 Yes
Pump Co., Ltd
Hangzhou Oxygen
Machine Research Institute Test 4528.30 Yes
Co., Ltd
Steam Turbine Holdings Warehousing 0.00 No 764,983.49
Subtotal 3,472,858.38 3,500,000.00 No 4,713,655.68
93
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
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 Oxygen Turbine Machinery Co.,
Turbine 21,824,796.49 1,327.43
Ltd
Greenesolpower systems PVT Ltd. Parts 2,974,801.65 1,588,105.14
Hangzhou Oxyen Expander Machine Co.,
Parts 104,424.77
Ltd.
Hangzhou Oxyen Cryogenic Container
Transport service 87,981.66
Co., Ltd
Steam Turbine Holdings Material repair 4,344.52 460,725.47
Hangzhou Oxygen Turbine Machinery Co.,
Steam Turbine 8,654,867.26
Ltd
Hangzhou Guoyu International Trade Co.,
Material sales 2,722,604.67
Ltd.
Zhumadian Hangzhou Oxygen Gas Co. Ltd Technical serivice 11,320.75
Subtotal 24,996,349.09 13,438,950.72
(2) Related trusteeship/contract
(3) Information of related lease
The Company was lessor:
In RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in this year in last year
Steam Turbine Holdings House and Building 1,077,902.81
- The company was lessee：
In RMB
Variable lease
Rental charges for payments not
Interest expenses
short-term and included in lease Increased use right
Rent paid on lease liabilities
low-value assets liabilities assets
assumed
(if any) measurement (if
any)
Categor
y of
Lessor
leased Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
assets
t of t of t of t of t of t of t of t of t of t of
current previou current previou current previou current previou current previou
period s period period s period period s period period s period period s period
Hangzhou House
Xiangjiang and 1,145,4 668,205 225,264 130,795
Technology Buildin 95.20 .53 .58 .52
Co., Ltd. g
House
Steam
and 2,601,7
Turbine
Buildin 43.42
Holdings
g
（4）Related-party guarantee
94
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(5) Inter-bank lending of capital of related parties
In RMB
Related party
Year-beginning balance Increase in the Decrease in the Year-end balance Among them: the
interest payment
current period current period
Steam Turbine 240,000,000.00 5,425,672.29 245,425,672.29 0.00 5,425,672.29
Holdings
（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 13,050,763.17 9,701,792.35
(8) Other related transactions
(1) Service and power supply
The Company and its subsidiaries purchased hydropower services from Steam Turbine Holding and paid
RMB17,422.61 in the current period.
2) Purchase of fixed assets
In the current period, the Company purchased fixed assets such as machinery and equipment from Steam Turbine
Holdings of 285,902.66 yuan.
3) Software Usage Fees
In the current period, the Company and its subsidiaries paid the annual software usage fee of 179,891.32 yuan to
Steam Turbine Holdings.
4) Trademark royalties
In the current period, the Company uses the registered trademark owned by Steam Turbine Holdings in free of
charge.
5) Advance payment
In the current period, Steam Turbine Holdings advanced 35,392.80 yuan for the subsidiary for salary payment.
6) Miscellaneous
In the current period, the subsidiary sales company does not need to pay the Steam Turbine Holding in amount of
10,208.90 yuan for resale.
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 systems PVT Ltd. 14,774,392.59 14,738,519.62 13,490,558.24 13,490,558.24
receivable
Hangzhou Oxyen Turbine
7,847,500.00 7,847,500.00 9,225,000.00 9,225,000.00
Machinery Co., Ltd.
Hangzhou Steam Turbine 59,000.00 59,000.00 59,000.00 59,000.00
95
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Compressor Co., Ltd’
Hangzhou Oxyen Cryogenic
46,600.00 2,330.00
Container Co., Ltd
Hangzhou Oxygen Group Co., Ltd 2,460,000.00 2,460,000.00
Steam Turbine Holdings 835,349.87 486,348.07
Hangzhou Relian Group Co., Ltd. 8,937.60 8,937.60
Subtotal 22,727,492.59 22,647,349.62 26,078,845.71 25,729,843.91
Financing
Hangzhou Oxygen Group Co., Ltd 7,050,000.00
receivable
Hangzhou Oxyen Turbine
3,000,000.00
Machinery Co., Ltd.
Subtotal 7,050,000.00 3,000,000.00
Hangzhou Xiangjiang Technology
Other receivable 601,384.98 180,415.49 601,384.98 60,138.50
Co., Ltd.
Steam Turbine Holdings 462,761.45 34,304.70
Subtotal 601,384.98 180,415.49 1,064,146.43 94,443.20
Constract assets Hangzhou Oxygen Group Co., Ltd 2,823,000.00 141,150.00
Hangzhou Oxyen Turbine
489,000.00 48,900.00 489,000.00 24,450.00
Machinery Co., Ltd.
Subtotal 3,312,000.00 190,050.00 489,000.00 24,450.00
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Account payable Greenesol power systems PVT Ltd. 2,625,853.11 1,835,287.07
Hangzhou Oxyen Turbine Machinery Co.,
557,522.07 497,585.09
Ltd.
Hangzhou Oxyen Tooling Pump Co., Ltd 128,316.00
Steam Turbine Holdings 230,568.42
Subtotal 3,311,691.18 2,563,440.58
Constract
Steam Turbine Holdings 16,378,000.00 29,652,336.28
liabilities
Hangzhou Oxyen Group Co., Ltd. 4,000,000.00 7,404,000.00
Greenesol power systems PVT Ltd. 640,228.64 353,288.27
Hangzhou Oxyen Expander Machine Co.,
141,000.00 85,800.00
Ltd.
Hangzhou Steam Turbine Compressor
700.00
Co., Ltd’
Subtotal 21,159,228.64 37,496,124.55
Other payable Steam Turbine Holdings 15,211,830.51 240,448,987.71
Subtotal 15,211,830.51 240,448,987.71
[Note] The contract liabilities are the tax-inclusive balance.
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
√ Applicable □ Not applicable
In RMB
（1）Detail
96
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Total amount of various equity instruments granted by the company during the
current period N/A
Total amount of various equity instruments that the company exercises during
the period N/A
Total amount of various equity instruments that have expired in the current
531,180 Shares
period
The scope of executive price of the company’s outstanding share options at the
[Note]
end of the period and the remaining term of the contract
[Note] The range of exercise price of other equity instruments issued by the Company at the end of the period and
the remaining term of the contract
Items Exercise price Remaining term of contract
The first restriction lifting period of restricted shares granted for the first time is from
the first trading day after 24 months from the date of registration of restricted shares
granted for the first time to the last trading day within 36 months from the date of
registration of some restricted shares granted for the first time; The second restriction
First grant of restricted HKD 6.825 per lifting period of restricted shares is from the first trading day after 36 months after the
stock in 2021 share registration of restricted shares granted for the first time to the last trading day within 48
months after the registration of some restricted shares granted accordingly; The third
restriction lifting period of the restricted shares is from the first trading day 48 months
after the registration of restricted shares granted for the first time to the last trading day
within 60 months after the registration of some restricted shares granted accordingly.
The first restriction lifting period of restricted sales is from the first trading day after 24
Partial grant of 2021
HKD 6.825 per months from the date when the registration the restricted shares is completed
restricted stock
share accordingly to the last trading day within 36 months from the date when the registration
reserved
of the restricted shares is completed accordingly;
（2）Restricted stock that has expired in the current period
According to the "Proposal on Repurchase and Cancellation of Some Restricted Shares" deliberated and passed by
the 30th meeting of the 8th Board of Directors and the 19th meeting of the 8th Board of Supervisors of the
Company, 9 of the incentive objects of the Company's 2021 restricted stock incentive plan are no longer eligible
for incentive objects due to retirement, and 1 person is no longer eligible for incentive object due to personal
reasons. The afore-mentioned retirees can still lift the restricted shares according to the agreed conditions
according to the specific number of years of service during their performance appraisal period, and the remaining
restricted shares that have not yet been lifted shall not be lifted, and the Company shall repurchase and cancel the
shares at the grant price plus the bank deposit interest for the same period, and the restricted shares that have been
granted but not yet lifted by the above-mentioned leaving personnel shall be repurchased and cancelled by the
Company at the grant price. The number of restricted shares cancelled in this repurchase is 531,180 shares, and
the repurchase amount payable by the Company in connection with the repurchase of restricted shares is
2,197,649.00. The afore-mentioned receipt of the repurchase and cancellation of restricted shares has been
verified by Zhejiang Southern Accounting Firm Co., Ltd, and the "Capital Verification Report" (No. 003 [2023]
Nanfang Zhen) has been issued. As of the approval date of this financial report, the above-
mentioned capital reduction has not yet completed the industrial and commercial change registration procedures.
2. Equity-settled share-based payment
√ Applicable □Not applicable
In RMB
Determination method of the fair value of equity instruments The closing price of the company's stock on grant date - grant
on the grant date price
Equity-settled share-based payment is included in the
accumulated amount of capital reserve 71,399,597.41
Total amount of fees confirmed by equity-settled share-based
payments in the current period 54,101,690.01
Other note
97
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
In order to improve the long-term incentive mechanism, the holding subsidiary Casting & Forging Company
implemented the equity incentives for its core employees. The share-based payment expense of RMB
2,150,400.00 is recognized for the current period.
(1) In May 2022, 15 core employees including Hao Mingshan and Xu Zhixian of Casting Company purchased the
equity transferred by Yu Junming, Yu Yifeng and Tong Ziqian shareholders of Casting & Forging Company by
increasing their capital ownership platform Hangzhou Steam Turbine Co-construction Enterprise Management
Consulting Partnership (Limited Partnership), thus the equity held indirectly in Casting Company was the share
payment of immediately executed shares, and the calculated share-based payment expenses increased the capital
reserve - capital premium of 897,600.00 yuan.
(2) In August 2022, Hao Mingshan and Chen Xinnv, core employees of Casting & Forging Company, acquired
the transfer of equity by Tong Ziqian, a shareholder of Casting & Forging Company, thus the equity of Casting &
Forging Company held by was the share payment of immediately executed shares, and the calculated share-based
payment fee increased the capital reserve - capital premium of 1,252,800.00 yuan.
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
（1）With regard to bank letters of credit opened by the Company and its subsidiaries, the outstanding balance
till December 31, 2022 is as follows:
Name Bank Currency Amount Way of guarantee
The Company ICBC Banshan Branch Euro 15,227,000.00 Credit
The Company ICBC Banshan Branch Swedish krona 67,500,000.00 Credit
The Company China CITIC Bank Hangzhou Credit
USD 2,067,300.00
Branch
The Company China CITIC Bank Hangzhou Swedish Credit
352,955,000.00
Branch krona
New Enegy China CITIC Bank Hangzhou Credit
Euro 303,000.00
Company Branch
Hangfa Zhongneng Company
Hangzhou Bank High -tech Branch RMB 12,000,000.00
Comapny Guarantee
（2）With regard to bank letters of Guarantee opened by the Company and its subsidiaries, the outstanding
balance till December 31, 2022 is as follows:
Name Bank Currency Amount Way of guarantee
The Company ICBC Banshan Branch RMB 285,310,859.06 Credit
The Company ICBC Hangzhou Branch RMB 8,851,931.00 Credit
The Company China CITIC Bank Hangzhou Branch RMB 32,013,742.28 Credit
The Company China CITIC Bank Hangzhou Branch USD 1,470,970.00 Credit
The Company China Bank Hangzhou Branch RMB 107,292,635.88 Credit
The Company China Bank Hangzhou Branch USD 7,877,200.00 Credit
98
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
China Merchants Bank Hangzhou Credit
The Company RMB 1,045,000.00
Branch
Machinery Co. ICBC Banshan Branch RMB 17,900,476.90 Credit
New Energy The Company
Hangzhou Bank High -tech Branch RMB 179,100,790.00
Company Guarantee
New Energy Credit
China CITIC Bank Hangzhou Branch RMB 7,323,900.81
Company
Turbine Co. China CITIC Bank Hangzhou Branch RMB 8,954,292.00 Credit
Auxiliary ICBC Banshan Branch Credit
RMB 23,689,717.50
Company
Guoneng ICBC Banshan Branch Credit
USD 2,222,700.00
Company
Guoneng ICBC Banshan Branch Credit
Euro 1,404,914.20
Company
Guoneng ICBC Banshan Branch Credit
RMB 1,526,300.00
Company
Guoneng Credit
China Bank Tangqi Branch RMB 3,067,285.00
Company
Hangfa Ningbo Bank Hangzhou Chengdong The Company
RMB 162,000.00
Company Branch Guarantee
Hangfa Ningbo Bank Hangzhou Chengdong
RMB 9,889,294.00 Credit
Company Branch
Hangfa Hangfa company Self-
ICBC Hangzhou Xiaoshan Branch RMB 215,696.00
Company owned land mortgage
Hangfa Ningbo Bank Hangzhou Chengdong 1,611,600.00 Zhongneng Company
RMB
Company Branch Guarantee
Hangfa 148,000.00 Zhongneng Company
Hangzhou Bank High -tech Branch USD
Company Guarantee
Zhongneng China Bank Hangzhou Qiantang New 63,684,886.70 Credit
RMB
Company area Branch
Zhongneng China Bank Hangzhou Qiantang New 1,881,240.00 Credit
USD
Company area Branch
(II). Contingency
(1) Significant contingency at balance sheet date
In October 019, Hesheng Electric (Shanshan) Co., Ltd (hereinafter referred to as Hesheng Company) filed a
lawsuit against Zhongneng Company in the Turpan Intermediate People's Court, requesting to cancel the "25MW
Backpressure Steam Turbine and Auxiliary Equipment Sales Contract" (contract number: SSDY-2016-019, the
total contract price is 5.75 million yuan) signed by the two parties, and Zhongneng Company to refund the paid
amount of 4.76 million yuan of goods payment and compensate 66.29 million yuan for various losses. In March
2021, the Turpan Intermediate People's Court issued the Civil Mediation Letter, according to which after
completing the maintenance of the rotor and accessories and reinstalling and debugging the steam turbine unit to
achieve 72+24-hour smooth operation, Hesheng Company shall pay the maintenance fee of 1.193 million yuan
and the final payment of the contract of 1.19 million yuan; and if the delivered steam turbine unit has quality
problems and cannot be started and used normally due to reasons attributable to Zhongneng Company, Zhongneng
Company needs to refund the received payment of 4.76 million. After the mediation letter came into effect,
Zhongneng completed the maintenance, installation and commissioning work according to the agreement, the
steam turbine unit was connected to the grid and operated with load, and Hesheng Company unilaterally stopped
the operation of the equipment on the grounds of defectselimination. On April 7, 2022, Hesheng filed a lawsuit in
the People's Court of Shanshan, Xinjiang Uygur Autonomous Region, arguing that the steam turbine unit
delivered by Zhongneng after completing the maintenance still can not be started and used normally, and regarded
as the purpose of the contract can not be achieved, and demanded to terminate the original contract and
Zhongneng Company refunds the paid amount of 4.76 million yuan and compensates various losses of 89.55
million yuan (including 3.55 million yuan for third-party procurement price difference, 85 million yuan for
production loss and 1 million yuan for labor loss). In May 2022, Zhongneng countersued Hesheng Company for
continued to perform the original contract, requiring it to pay maintenance fees of 1.193 million yuan and the final
payment of 1.19 million yuan of the contract. As of the date of approval of this financial report, the case has not
99
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
yet been tried.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XV. Events after balance sheet date
1. Significant events had not adjusted
2. Profit distribution
3. Sales return
4. Notes of other significant events
(1) Profit distribution after the balance sheet date
According to the 2022 annual profit distribution plan reviewed and passed
at the 32nd Meeting of the eighth board of directorof the Company on
March 27,2022,In 2022, with the total share capital of 980,179,980 shares at
the end of the year deducting 111,800 treasury shares repurchased as of date
of record by Company and 531,180 shares of share capital were cancelled
Profit or dividend proposed to be distributed due to the retirement and resignation of equity incentive objects in
December 2022, that is, 979,537,000 shares, the Company would distribute
cash dividend to all the shareholders at the rate of CNY 3.0 for every 10
shares (with tax inclusive) , 2 bonus shares ，and no reserve would be
converted into share capital.
（2）Important and non-adjustment matters
(1) Capital increase of Ranchuang Company
According to the "Proposal on Capital Increase Namely Investment in Western Power in Zhejiang
Ranchuang Corporation" deliberated and passed by the 31st meeting of the Eighth Session of Board of Directors
of the Company, the Company shall invest in Pengzhou Western Blue Power Technology Co., Ltd (hereinafter
referred to as Western Power Company) through the transfer of equity and capital increase of Ranchuang
Company. According to the capital needs of the Ranchuang Company to invest in Western Power Company and
its continuous operation and development needs, the Company has increased its capital to the Ranchuang by 130
million yuan on January 13, 2023. On January 28, 2023, Ranchuang completed the registration procedures for
industrial and commercial changes.
(2) Acquisition of equity in Western Power
In January 2023, according to the first shareholders’ decision of Ranchuang in 2023, Ranchuang acquired 20%
of the equity of Western Power Company held by Chengdu Mengjiang Investment Group Co., Ltd at a price not
higher than the appraisal value of the corresponding equity assets on the record, and respectively acquired 15%
and 3% of the equity of Western Power Company held by Liaoning Paison Energy Technology Service Co., Ltd
and the natural person Liu Yuhuan at a price of 1.27 yuan per unit of registered capital, and subscribed to the
registered capital of 43 million yuan of the capital increase of Western Power for 1.27 yuan per unit of registered
capital. As of the date of approval of the financial report, the afore-said matters have not yet completed the
registration procedures for industrial and commercial changes,
Ranchuang Company has paid RMB 48.06 million for equity transfer and RMB 54.61 million for premium capital
increase.
(3) Relocation matters of Zhongneng Company
The "Proposal on the Investment and Construction of New Production Base of Zhongneng Company" was
deliberated and passed in the 27th meeting of the 8th session of Board of Directors of the Company, Zhongneng
100
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Company started the overall relocation of the enterprise, and planned to invest in the construction of a new
production base in the Qianjin intelligent manufacturing park of Dajiangdong Industrial Agglomeration Zone in
Qiantang New Area, Hangzhou. According to the needs of the development and construction of Eastern Bay New
City in Qiantang New District, Hangzhou, Zhongneng Company and Hangzhou Eastern Bay New City
Development and Construction Headquarter signed the "Non-residential Housing Relocation Compensation
Agreement" on February 13, 2023, including real estate and decoration and appurtenance compensation within the
scope of relocation, equipment relocation compensation fee, relocation fee and production and business shut-
down loss fee (including employee resettlement compensation fee, operating loss, etc.), signing incentive and
floor area ratio subsidy incentive, etc., with a total relocation compensation amount of RMB 202,227,000. The
relocation compensation fund will be compensated in installments according to the progress of land obtaining and
the actual relocation progress in the Qianjin intelligent manufacturing park by Zhongneng Company.
As of the date of approval of the financial statements, RMB 60,668,100.00 of relocation compensation has been re
ceived.
(4)Henan Junhua Development Co., Ltd litigation matters
In January 2022, Henan Junhua Development Co., Ltd (hereinafter referred to as Henan Junhua Company) sued
the Company in the People's Court of Yicheng DistrictZhumadian City, Henan Province, demanding that the
Company compensate for its losses of RMB 40 million and other expenses such as case acceptance fees and
property preservation fees. In March 2023, the People's Court of Yicheng District Zhumadian City, Henan
Province issued a Civil Judgment, confirming that the case was a contract dispute, dismissing the plaintiff Henan
Junhua Company's claim, and the case acceptance fee is borne by the plaintiff Henan Junhua Company. As of the
date of approval of this financial report, Henan Junhua Company has not appealed, and the first-instance judgment
has taken effect.
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, 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 X VII (61) 1 of the Financial
Statements.
101
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(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
(I) Lease
1. Company as lessee
(1) For information about the right-to-use assets, please refer to Note X VII 25 to this Financial Statement;
(2) The Company's accounting policies for short-term leases and low-value asset leases are detailed in Note X V
42 to this Financial Statement. The amounts of short-term lease expenses and low-value asset lease expenses
included in the current profits and losses are as follows:
Items Current term Same period of last term
Short-term lease expense 3,496,724.77 12,300,753.43
Low-value asset lease expense (except short-term lease) 2,277.88 4,866.90
Total 3,499,002.65 12,305,620.33
(3) Current profit and loss and cash flow related to leasing
Items Current term Same period of last term
Interest expense of lease liabilities 1,585,096.61 559,478.09
Total cash outflow related to leasing 15,314,937.25 7,337,642.50
(4) The maturity analysis of the lease liabilities and the corresponding liquidity risk management are detailed in
Note X 10 of this Financial Statement.
2. Company as lessor
(1) Operating lease
1) Lease income
Items Current term Same period of last term
Lease income 1,674,164.91 2,966,095.79
2) Operating lease assets
Items End amount End of last year
Real estate investment 6,451,478.55 6,903,986.07
Subtotal 6,451,478.55 6,903,986.07
3) According to the lease contract signed with the lessee, the undiscounted lease receipts that will be received in
the future for irrevocably lease
Remaining term End amount End of last year
Within 1 year 1,261,194.10 471,842.25
1-2 years 843,931.92 268,910.00
2-3 years 705,187.41 269,560.00
102
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
3-4 years 151,722.56 240,792.87
4-5 years 48,677.27 88,893.33
Over 5 years 13,040.00
Total 3,010,713.26 1,353,038.45
(II) Other
According to the planning of the Hangzhou Municipal Government, the property right bodies of 6 companies
including Hangzhou Steam Turbine Holdings within the plant area of Hangzhou Steam Shiqiao Road factory area
were included in the scope of the Expropriation and Relocation Planning. According to the Hangzhou Municipal
People's Government's Minutes (Hangfu Minutes [2016] No. 87) on the relevant issues concerning the
compensation for the relocation of the Steam Turbine Shiqiao road plant area and the spirit of the minutes (Hangfu
Minutes [2016] No. 47)of the special meeting of Hangzhou Municipal people's Government on the relevant issues
concerning speeding up the relocation of the Shiqiao Road Factory area of Hangzhou Steam Turbine and the
Construction of the Hangzhou Steam Turbine Heavy Industry Project, Hangzhou Municipal Government, in
accordance with the principle of "one factory, one policy", determines that the compensation for the overall
relocation of the plant area of Hangzhou Steam Turbine Shiqiao road plant is RMB 1.815 billion, with the
compensation contents include the compensation for physical assets such as buildings, structures, housing
renovations, equipment, and land within the area of relocation, as well as personnel resettlement fees,
compensation fees for shutdown loss and production stoppage loss and incentive fees, and the compensation
agreement shall be signed by the Xiacheng Urban Construction Investment Group-the land-making main-body
affiliated to Hangzhou Xiacheng District Municipal Government with each relocation unit.
On March 21, 2018, based on the evaluation opinion of Kunyuan Assets Appraisal Co., Ltd (No. 606-2017
Kunnyuan Appraisal Report, No. 609-2017 Kunnyuan Appraisal Report, No. 18-2018 Kunnyuan Appraisal
Report,), the company signed the “Relocation Compensation Agreement for Non-residential Buildings on State-
owned Land” with Xiacheng Urban Construction Investment Group, and determined that Xiacheng Urban
Construction Investment Group shall make full monetary relocation compensation for the Company and its
subsidiary the Machinery Company, with the total amount of compensation for various physical assets and
expenses is RMB 1,321,860,410.00 (Including the incentive fee of RMB 35,275,640.00), and this aforementioned
compensation shall be firstly collected by Hangzhou Steam Turbine Holdings.
The Company and its subsidiaries received relocation compensation of RMB197,297,786.03 in the current period,
and received RMB74,060,327.54 in 2023 as of the date of approval of the financial report, with a cumulative
relocation compensation of RMB1,131,878,961.99; The Company and its subsidiaries incurred relocation
expenses of RMB16,150,800.00 in the current period, and accumulated the relocation expenses of
RMB259,997,391.15
The subsidiary steam turbine heavy industry company incurred an asset purchase and construction
expenditure of180,689,420.54 yuan in the current period, with an accumulated asset purchase and construction
expenditure of 795,323,031.10 yuan. The corresponding special payables carried forward for the current period-
relocation compensation of 196,840,220.54 yuan, which is transferred to deferred revenue. The balance of unused
relocation compensation at the end of the period is 2,498,212.20 yuan.
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
103
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
End of term Beginning of term
Category Book balance Bad debt provision Book balance Bad debt provision
Book Book
Proporti Proporti Proporti Proporti
Amount Amount value Amount Amount value
on % on % on % on %
Including
Accrual of bad
2,132,02 693,967, 1,438,06 2,347,79 767,426, 1,580,36
debt provision 100.00% 32.55% 100.00% 32.69%
by portfolio 8,307.54 447.49 0,860.05 1,612.01 735.29 4,876.72
Including：
2,132,02 693,967, 1,438,25 2,347,79 767,426, 1,580,36
Total 100.00% 32.55% 100.00% 32.69%
8,307.54 447.49 2,956.87 1,612.01 735.29 4,876.72
Accrual of bad debt provision by portfolio:693,967,447.49
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Associated transaction portfolio 97,772,097.67
Aging portfolio 2,034,256,209.87 693,967,447.49 34.11%
Total 2,132,028,307.54 693,967,447.49
Accrual of bad debt provision by portfolio: 693,967,447.49
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
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） 724,266,757.49
1-2 years 455,105,646.76
2-3 years 307,281,131.33
Over 3 years 645,374,771.96
3-4 years 185,462,760.12
4-5 years 111,413,542.91
Over 5 years 348,498,468.93
Total 2,132,028,307.54
(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 Closing
Category Opening balance
Accrual Reversed or collected amount Write-off balance
Other
Accrual of bad debt
provision by Single term
Accrual of bad debt
provision by portfolio 767,426,735.29 -73,004,395.60 454,892.20 693,967,447.49
Total 767,426,735.29 -73,004,395.60 454,892.20 693,967,447.49
104
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(3) The actual write-off accounts receivable
In RMB
Items Amount
Accrual of bad debt provision by portfolio 454,892.20
The significant actual write-off accounts receivable
In RMB
Arising from
Nature of
Amount written Reason for related
Name account Verification procedures
off written off transactions
receivable
(Y/N)
Haimen Daqian Thermal Power Uncollectible The examined and adopted to
Goods 296,392.20 No
Co., Ltd. Board of directors
amount
Hangzhou Steam Turbine Power Uncollectible The examined and adopted to
Goods 158,500.00 Yes
Group Southwest Branch Board of directors
amount
Total 454,892.20
（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 1 733,175,082.50 34.39% 193,382,266.95
Client 2 190,409,119.52 8.93% 112,469,392.80
Client 3 82,411,200.00 3.87% 4,120,560.00
Client 4 56,983,919.41 2.67% 12,796,890.19
Client 5 51,240,000.00 2.40% 2,562,000.00
Total 1,114,219,321.43 52.26%
（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
Items Closing balance Opening balance
Interest receivable
Dividend receivable 110,000.00
Other receivable 8,287,079.99 27,054,816.71
Total 8,397,079.99 27,054,816.71
（1）Interest receivable
1）Classification of interest receivable
2）Significant overdue interest
3）Bad-debt provision
□ Applicable √ Not applicable
105
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
（2）Dividend receivable
1）Dividend receivable
In RMB
Items End of term Beginning of term
China mechanical and Electrical Institute 110,000.00
Total 110,000.00
2) Significant dividend receivable aged over 1 year
3）Bad-debt provision
□ 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 11,450,773.84 30,465,219.01
Provisional payment receivable 598,767.58 832,087.45
Other 1,672,805.50 1,999,123.61
Total 13,722,346.92 33,296,430.07
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit loss over Expected credit losses for
Bad Debt Reserves Expected credit losses Total
life (no credit the entire duration (credit
over the next 12 months
impairment) impairment occurred)
Balance as at January 1, 2022 1,271,720.39 213,125.64 4,756,767.33 6,241,613.36
Balance as at January 1, 2022 in
current
——Transfer to stage II -19,971.45 19,971.45
——Transfer to stage III -168,036.86 168,036.86
Provision in the current period -969,613.33 -25,117.33 188,384.23 -806,346.43
Balance as at December 31, 2022 282,135.61 39,942.90 5,113,188.42 5,435,266.93
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） 7,013,397.47
1-2 years 399,429.02
2-3 years 1,680,368.59
Over 3 years 4,629,151.84
3-4 years 185.00
4-5 years 100,000.00
Over 5 years 4,528,966.84
106
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Total 13,722,346.92
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
Opening
Category Reversed or Closing balance
balance
Accrual collected Write-off Other
amount
Accrual of bad
debt provision 6,241,613.36 -806,346.43 5,435,266.93
by portfolio
Total 6,241,613.36 -806,346.43 5,435,266.93
(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 Waigaoqiao Over 5
Deposit 3,710,320.94 27.04% 3,710,320.94
Office years
Within 1
Shanghai Customs Deposit 906,722.90 6.61% 45,336.15
year
Hangzhou Ganghua Gas Co., Ltd. Deposit 900,000.00 (Note) 6.56% 320,000.00
Nantong Jiaxing Thermoelectric
Deposit 700,000.00 2-3 years 5.10% 210,000.00
Co., Ltd.
Within 1
Guoneng Company Other 675,477.72 4.92%
year
Total 6,892,521.56 50.23% 4,285,657.09
[Note]2-3 years:800,000.00 yuan,4-5 years:100,000.00 yuan.
(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:
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
400,480,973.25 400,480,973.25 191,793,655.63 191,793,655.63
subsidiaries
Total 400,480,973.25 400,480,973.25 191,793,655.63 191,793,655.63
107
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
(1)Investments in subsidiaries
In RMB
Increase /decrease
Closing balance
Opening Withdrawn Closing
Investees Add Decreased of impairment
balance impairment Other balance
investment investment provision
provision
46,286,513.41 46,286,513.41
Auxiliary
Machine Co.
40,000,389.56 40,000,389.56
Packaged Co.
Machinery 7,968,000.00 7,968,000.00
Company
Turbine Company 20,208,700.14 584,992.83 20,793,692.97
Zhongneng 27,644,475.06 27,644,475.06
Company
Casting Company 11,220,000.00 11,220,000.00
New Energy 1,193,092.39 204,449,713.79 205,642,806.18
Company
Sales Company 13,721,544.50 13,721,544.50
China Mechanical 1,533,768.30 1,533,768.30
Institute Company
Ranchuang 22,017,172.27 3,652,611.00 25,669,783.27
Company
Total 191,793,655.63 208,687,317.62 400,480,973.25
（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 3,165,445,499.40 2,453,557,174.72 3,346,432,079.14 2,393,749,908.61
Other 20,090,442.76 9,543,498.07 21,106,635.44 27,015,078.28
Total 3,185,535,942.16 2,463,100,672.79 3,367,538,714.58 2,420,764,986.89
Income related information：
Information related to performance obligations:
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.
Information related to transaction value assigned to residual performance obligations:
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 5,036,010,000.00.
Other note：
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
108
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Long-term equity investment income by equity
method 95,156,322.10 95,156,322.10
Long-term equity investment income by Cost
method 90,883,630.00 153,319,630.00
Investment income obtained from the disposal of
31,896,620.07 75,612,246.06
trading financial assets
Investment income obtained from the disposal of
208,000.00
other non-current financial assets
Financing discount loss -1,721,444.27 -2,924,174.07
Dividend income from other equity instrument
272,641.24
investments during the holding period
Debt restructuring gains -102,750.00
Total 216,423,127.90 321,333,915.33
6.Other
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
Items Amount Notes
Mainly due to the investment income of -563,981.22
Non-current asset disposal gain/loss -792,933.90 yuan generated by the disposal of the equity of the
Indonesian company in the current period
(1) The net government subsidy recognized as a result
of the relocation compensation of the Shiqiao Road
plant is RMB21,141,733.79 (the government subsidy
Governmental Subsidy accounted as current related to the relocation compensation is
gain/loss, except for those subsidies at with RMB37,292,533.79, and lessening the relocation
amount or quantity fixed by the national 57,161,745.42 expenses of RMB16,150,800.00); (2) The government
government and closely related to the Company’s subsidy for the relocation compensation confirmed by
business operation. the old factory in Hangzhou is 8,663,283.72 yuan; (3)
the funded and confirmed government subsidy by
Zhejiang Gas Turbomachinery Manufacturing
Innovation Center is 5,542,854.92 yuan.
Capital occupation charges on non-financial
enterprises that are recorded into current gains 127,908.28
and losses
Gains/losses of debt restructure 7,035,391.36
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 Mainly due to the investment income of
of the transactional monetary assets, 36,974,039.31 36,295,722.69 yuan of bank wealth management
transactional financial liabilities and financial products
assets available for sale excluding the effective
hedging transaction in connection with the
Company’s normal business
Mainly due to the reverse of a provision of 19.8
Reverse of the provision for impairment of
million yuan for bad debts due to the collection of
accounts receivable undergoing impairment test 20,281,569.00
long-term receivables with single accrual in the
individually
current period
Income from custodian charge obtained from Mainly due to then non-operating income -
entrusted operation 54,844,106.11
compensation of 56,511,643.28 yuan
109
Hangzhou Steam Turbine Group Co.,,Ltd. 2022 Financial Report
Mainly due to the immediately executed share
Operating income and expenses other than the payment confirmed by the casting company of -
aforesaid items -1,732,271.11
2,150,400 yuan and other income - withholding
personal income tax fee refund
Less: Influenced amount of income tax 17,931,285.99
Amount of influence of minority interests（After
13,526,901.46
tax）
Total 142,441,367.02 --
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 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
Profit of report period Basic earnings per Diluted earnings per
returns equity(%)
share(RMB/share） share(RMB/share)
Net profit attributable to the Common
stock shareholders of Company. 6.47% 0.54 0.54
Net profit attributable to the Common
stock shareholders of Company after 4.71% 0.39 0.39
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 standa
rds. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of the ov
erseas institution should be indicated
4.Other
Hangzhou Steam Turbine Power Group Co., Ltd.
March 29,2023
110
