Stock Code: 200771 Stock ID: Hangqilun B Announcement No.: 2023-15
Hangzhou Steam Turbine Co., Ltd.
Report of the Supervisory Committee of 2022
The members of the Supervisory Committee acknowledge being responsible for the truthfulness,
accuracy, and completeness of the announcement. Not any false record, misleading statement or
significant omission carried in this announcement.
In 2022, the Supervisory Committee had been performing its duties according to the Company
Law, Securities Law, the Articles of Association, and Meeting Criteria of Supervisory Committee.
Inspections were conducted regularly on the Company’s business operation, financial position,
and operation of the Board and executives, aimed at guarding the legal benefits of the shareholders,
the Company, and employees, and promote healthy development of the Company.
I. Meeting and examinations in the report period
In the report period, the Committee had held 6 regular or provisional meetings. It mainly
deliberated on the Company's periodic report, financial report, profit distribution, self-evaluation of
internal control, write-off of asset impairment, change of accounting policy, entrusted financial
management, equity incentive, supplement of supervisors, election of chairman of the Board of
Supervisors and other important matters, To perform the supervisory duties of the Board of
Supervisors.
Fulfilling of duties of the Supervisory Committee:
Date of meeting No. of meeting Titles of proposals
Proposal on Retrospective Adjustment of Financial
The 14th meeting of the
March 22,2022 Data for Business Combinations under the Same
8th term of Supervisory
Control
1.Work Report of the Supervisory Committee 2021;
2.Annual Report 2021 and Summary;
3.The Financial Report 2021;
The 15th meeting of the
March 29,,20221 4.The Dividend Plan 2021;
8th term of Supervisory
5.The Internal Control Introspection Report 2021;
6..Proposal of the provision for impairment of assets
of 2021;
7.Proposal on the Write-offs Asset of 2021;
8.Proposal on the use of idle funds for short-term
and medium-term financial management by the
company in 2022.
The 16th meeting of the
April26, 2022 The First Quarter Report 2022
8th term of Supervisory
The 16th meeting of the
April26, 2022 The First Quarter Report 2022
8th term of Supervisory
The 18th meeting of the
October 27,2022 The Third Quarterly Report 2022
8th term of Supervisory
1. Proposal on Adjusting the Repurchase Quantity
and Repurchase Price of the 2021 Restricted Stock
The 19th meeting of the
December 21, 2022 Incentive Plan;
8th term of Supervisory
2. Proposal on Repurchase and Cancellation of
Some Restricted Shares.
II. Presenting of board meetings and shareholders’ meetings
The Committee presented 10 board meetings and 4 shareholders’ meeting during the report period.
Through participating of these meetings, the Committee acquired information about the
Company’s decision-making process and business management. Communications were made
effectively with the shareholders, directors, and executives. Flaws in operation were discovered on
time. The supervisors were exercising their duties at the meetings and performed inspection on
decision-making processes and risk-control approaches.
III. Fulfilling of duties in the report period
In 2022, the Committee performed inspections on the following aspects in viewing of legal
operation and good economic efficiency.
1. Supervising on the business operation: The Supervisors participated in the meetings of the
Board and supervised the main decision-making procedures; verified the execution of resolutions
of the shareholders’ meeting and board meetings, as well as the major investment plans and
related transactions. The Committee also provided corresponding opinions and suggestions on the
business operation of the Company.
2. Inspection on financial activities: Inspection on business operation and financial position is
the key work of the Committee. The Committee urged the Company to improve its accounting
system and internal control system according to the Accounting Law and new accounting standard,
and thereafter supervised the change of accounting policies; supervised the processes of
accounting works; improvement opinions were provided according to the laws and regulations.
3. Supervising the executives: to perform effective supervising over the performances of the
directors and executives of the Company, the Supervisory Committee urged them to study the
laws and regulations to upgrade their sense of legal operation, therefore ensure legal operation of
the Company. All of the directors, supervisors, and executives were acting according to the law
without being punished by any department.
4. Supervising on inside information managementThe Company revised the Information Insider
Registration and Administration Rules according to the regulations of CSRC and SSE.
Information Insider Files were established covering all of the directors, supervisors, executives
and other insiders, and filed to SSE. This was for the effectiveness of confidential works and
information disclosure. No illegal trade was found with the aforesaid personnel in the report
period.
IV. Summary of the Committee’s opinion on particular issues
In the report period, the Committee had issued opinions on the periodic reports, introspective
report on internal control and Changes in Accounting Policies with regard to the regulations and duties
of the Committee. Specific as follows：
1. Opinions on the periodic reports of the company
The Board of Supervisors believes that the procedures for the preparation and review of the
Annual Report of 2021, the First Quarter Report of 2022, the Semi-annual Report of 2022 and the
Third Quarter Report of 2022 of the Company by the Board of Directors comply with laws,
administrative regulations and the provisions of the China Securities Regulatory Commission, and
the contents of the reports truly, accurately and completely reflect the actual situation of listed
companies, with no false records, misleading statements or major omissions.
2. Opinions on the internal control self-evaluation report of the company
The Internal Control Introspection Report 2021 was reflecting the operation of the internal control
system objectively, frankly, and completely.
3. Opinions on the Company's restricted stock incentive plan
The Board of Supervisors believes that the content of the Company's restricted stock incentive plan
in 2021 complies with the provisions of relevant laws, regulations and normative documents such as
the Company Law, the Securities Law and the Measures for the Administrative Measures for Equity
Incentives of Listed Companies. The implementation of this incentive plan is conducive to further
establishing and improving the Company's long-term incentive mechanism, attracting and retaining
outstanding talents, fully mobilizing the enthusiasm of the Company's directors (excluding
independent directors and external directors), senior managers, other leading group members,
middle management and key personnel of the Company, effectively combining the interests of
shareholders, the interests of the Company and the personal interests of the key team, so that all
parties can pay attention to the long-term development of the Company together, without harming
the interests of the Company and all shareholders.
4.Relevant opinions on adjusting the repurchase quantity and repurchase price of restricted
stock incentive plan in 2021
The Board of Supervisors believes that the adjustment methods and procedures of the
Company's restricted stock repurchase price and repurchase quantity are in line with the relevant
provisions of the Administrative Measures for Equity Incentives of Listed Companies and the 2021
Restricted Stock Incentive Plan (Draft) on the adjustment of the restricted stock repurchase price
and quantity, and there is no profit and loss situation for the Company and all shareholders,
especially minority shareholders.
5.Relevant opinions on repurchase and cancellation of restricted stocks
The Board of Supervisors believes that the Company's repurchase and cancellation of 531,180
granted but not yet unlocked restricted stocks held by retired and resigned personnel is in line with
the provisions of the Company's 2021 Restricted Stock Incentive Plan (Draft) on repurchase
cancellation.
The Supervisory Committee of Hangzhou Steam Turbine Power Group Co., Ltd.
March 29,2023
