Hangzhou Turrbine Power Grroup Co., Ltd. T Semi-Annual Report 2023
Stock Code: 200771 Stock ID: Hanggqilun B Annnouncement No. :2023-71
Haangzhou Tuurbine Powwer Group Co., Ltd.
The Semi--Annual Reeport 2023
（Stock Code：2000771）
A 20223
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
I. Important Remarks, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives of the Company
guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we
will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
Mr. Zheng Bin, The Company leader, Mr. Zhao Jiamao, Person in charge of accounting and Mr.Lv Lin, Person in
charge of Accounting institute（accountant in charge)hereby confirm that the financial Report of Semi-Annual
Report 2023 is authentic, accurate and complete.
All the directors attended the board meeting for the review of this Report.
This Report contains prospective descriptions, which doesn’t constitute substantial commitment to investors.
Investors are requested to be aware of the risks attached to their investment decisions. For the risks existing in the
Company's operation, please refer to the section "Prospects for the future development of the Company" in
Section III "Management Discussion & Analysis". The company's designated information disclosure media are:
Shanghai Securities News (Chinese), Securities Times (Chinese), Hong Kong Commercial Daily (English),
http://www.cninfo.com.cn (In English and Chinese), all information of the company is subject to the information
published in the above selected media. Investors are advised to pay attention to investment risks.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Company Profile & Financial Highlights.
III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Documents available for inspection
I. Financial Statements signed and sealed by the Chairman of the Board , chief accountant and director of
the financial division;
II. All the originals of the Company’s documents and public notices disclosed in the newspapers
designated by China Securities Regulatory Commission in the report period;
III. Original copy of Resolutions of the Meeting of Board.
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Definition
Terms to be defined Refers to Definition
Company, the Company Refers to Hangzhou Turbine Power Group Co., Ltd.
Holding shareholder, Turbine Holdings Refers to Hangzhou Turbine Holdings Co., Ltd.
State-owned Assets Supervision and Administration Commission of
Hangzhou SASAC Refers to
Hangzhou Municipal People's Government
Hangzhou Capital Refers to Hangzhou State-owned Capital Investment and Operation Co., Ltd.
Hangzhou Qitong Refers to Hangzhou Qitong Equity Investment Partnership（LP）
The report period, the current period, the
Refers to January 1,2023-June 30,2023
current year
Zhongneng Co. Refers to Hangzhou Zhongneng Steam Turbine Power Co., Ltd.
Casting Co. Refers to Hangzhou Steam Turbine Casting Co., Ltd.
Packaged Tech. Co. Refers to Zhejiang Steam Turbine Packaged Technology Development Co., Ltd.
Machinery Co. Refers to Hangzhou Steam Turbine Machinery Equipment Co., Ltd.
Auxiliary Machine Co. Refers to Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd.
Turbine Co. Refers to Zhejiang Turbine Import & Export Co., Ltd.
Zhongrun Company Refers to Zhejiang Zhongrun Gas Turbine technology Co., Ltd.
New Energy Company Refers to Hangzhou Steam Turbine New Energy Co., Ltd.
Hangfa Company Refers to Hangzhou Hangfa Power Generation Equipment Co., Ltd.
Sales Company Refers to Hangzhou Steam Turbine Sales Service Co., Ltd.
China mechanical and Electrical Institute -HSTG (Hangzhou) United
China mechanical and Electrical Institute Refers to
Institutes Co., Ltd.
Ranchuang Company Refers to Zhejiang Ranchuang Turbine Machinery Co., Ltd.
Western Power Refers to Pengzhou Western Power Blue Technology Co., Ltd.
The Board of Directors Refers to The Board of Directors of Hangzhou Steam Turbine Group Co., Ltd.
The Supervisory Committee of Hangzhou Steam Turbine
The Supervisory Committee Refers to
Power Group Co., Ltd.
The Board of Directors of Hangzhou Steam Turbine Power Group Co.,
The Shareholders’ Meeting Refers to
Ltd.
RMB, RMB0’000, RMB000’000’000 Refers to RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan
MW Refers to Unit of power: 1000KW
MES Refers to Manufacturing execution system
PLM Refers to Product lifecycle management
ERP Refers to Enterprise Resources Planning
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
II. Basic Information of the Company and Financial index
I. Basic Information
Stock ID Hangqilun B Stock Code 200771
Modified stock ID (if any) Not applicable
Stock Exchange Listed Shenzhen Stock Exchange
Company Name in Chinese 杭州汽轮动力集团股份有限公司
Short form of Company Name in
杭汽轮
Chinese
Name in English HANGZHOU TURBINE POWER GROUP CO.,LTD.
Abbreviation in English HTC
Legal representative: Zheng Bin
II. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Li Guiwen Li Xiaoyang
No.1188, Dongxin Road, Hangzhou , No.1188, Dongxin Road, Hangzhou ,
Address Zhejiang Zhejiang
Tel. 0571-85780058 0571-85780438
Fax. 0571-85780433 0571-85780433
Email. lgw@htc.cn lixiaoyang@htc.cn
III. Other info.
1.Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2022.
2. Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2022.
3.Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Not applicable
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
IV.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
This report term Same period last year YoY+/-（%）
Operating revenue（Yuan） 2,622,245,052.99 3,075,980,333.58 -14.75%
Net profit attributable to the shareholders of the listed
149,699,746.13 348,340,310.01 -57.02%
company（Yuan）
Net profit after deducting of non-recurring gain/loss
attributable to the shareholders of listed company 105,115,646.97 270,767,570.26 -61.18%
（Yuan）
Cash flow generated by business operation, net 335,166,177.34 164,877,823.29 103.28%
（Yuan）
Basic earning per share(Yuan/Share) 0.13 0.30 -56.67%
Diluted gains per share(Yuan/Share) 0.13 0.30 -56.67%
Net asset earning ratio（%） 1.84% 4.24% -2.40%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets (yuan) 16,177,803,025.04 15,374,999,610.32 5.22%
Shareholders’ equity attributable to shareholders of the
7,904,195,621.68 8,328,481,114.19 -5.09%
listed company（yuan）
V. The differences between domestic and international accounting standards
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not existent
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not existent
VI. Non-recurring gain/loss items and amounts
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
2,605,562.00
for which assets impairment provision is made)
Tax refund, deduction and exemption that is examined and
approved by authority exceeding or has no official approval 0.00
document.
Governmental Subsidy accounted as current gain/loss, except for
those subsidies at with amount or quantity fixed by the national
29,314,983.25
government and closely related to the Company’s business
operation.
Capital occupation charges on non-financial enterprises that are
0.00
recorded into current gains and losses
Gains due to that the investment costs for the Company to obtain
subsidiaries, associates and joint ventures are lower than the
0.00
enjoyable fair value of the identifiable net assets of the investees
when making the investments
Gain/loss on non-monetary asset swap 0.00
Gain/loss on entrusting others with investments or asset
0.00
management
Asset impairment provisions due acts of God such as natural
0.00
disasters
Gains/losses of debt restructure 0.00
Reorganization expenses, such as expenditure for allocation of 0.00
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
employees and integration fee
Gains/losses exceeding the fair value arising from transactions
0.00
with obviously unfair prices
Net gain and loss of the subsidiary under the common control and
produced from enterprise consolidation from the beginning of the 0.00
period to the consolidation date
Gain and loss arising from contingent matters irrelevant with the
0.00
Company’s normal operation business
Gain and loss from change of the fair value arising from
transactional monetary assets, transactional financial liabilities as
held as well as the investment income arising from disposal of the
6,284,699.41
transactional monetary assets, transactional financial liabilities and
financial assets available for sale excluding the effective hedging
transaction in connection with the Company’s normal business
Reverse of the provision for impairment of accounts receivable
0.00
undergoing impairment test individually
Gain/loss from external entrusted loan 0.00
Gain and loss arising from change in the fair value of the
investment based real estate measure afterwards by means of fair 0.00
value model
Influence upon the current gains and losses from the once-and –for
–all adjustment over the current gains and losses according to the 0.00
taxation and accounting laws and regulations
Income from custodian charge obtained from entrusted operation 0.00
Operating income and expenses other than the aforesaid items 16,982,656.52
Less: Influenced amount of income tax 6,567,614.24
Amount of influence of minority interests（After tax） 4,036,187.78
Total 44,584,099.16
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
III. Management Discussion & Analysis
Ⅰ.Main Business the Company is Engaged in During the Report Period
(I) Company business
During the reporting period, the company's main business and business model did not change significantly.
As the leading provider of turbo machinery equipment and relevant service in China, our company is mainly
famous for designing and producing rotating turbo machinery like industrial steam turbines and gas turbines.
Our company, one of the major companies drafting the industrial standard in Chinese domestic industry of
industrial steam turbine, has developed into the biggest base to research, develop and produce industrial
steam turbines in China and ranks first among industrial steam turbine producers in terms of the market
occupancy. Holding the principle “our products should be based on clients’ demands” as our business mode
and characteristic, our company designs and produces in accordance with every client’s personal demands so
as to meet personalized needs in engineering projects to the utmost. To realize the fast research and
development of our products, our company has adopted the advanced modular design technique and, on the
other hand, introduces information technique to assist the collaborative production to achieve the resource
saving and flexible production. In addition, our company also provides our clients with relevant service such
as engineering programs, general engineering contracting, operation and maintenance of our products as well
as remote control and so on.
Industrial steam turbines use the steam featuring high temperature and high pressure as their working medium
so as to convert the thermal energy into mechanical energy to drive various industrial equipments through the
rotating steam turbines. As for different objects driven by industrial steam turbines, the steam turbines could be
divided into industrial driving steam turbines and industrial power-generation steam turbines. Mainly driving
rotating machines like compressors, air blowers, pumps and squeezers, industrial driving steam turbines, as the
core power part in numerous large-scale industrial equipments, are always introduced into some industries like
oil refining, chemical engineering, chemical fertilizer, building materials, metallurgy, electric power, light
industry and environmental production. The industrial power-generation steam turbines, mainly utilized to
drive electric generators and provide thermal energy, are mainly adopted in private stations, regional projects of
combined heat and power generation, power generation by recycling waste heat in industrial production, urban
waster power plants and gas-steam combined cycle power stations in various industrial sectors. The gas
turbines produced by our company are mainly used by metallurgical industry to recycle the waste heat from the
blast furnace exhaust to generate power.
In the gas turbine business, the company cooperated with Siemens on SGT-800, an advanced natural gas turbine
with high efficiency, high reliability and low emission, to enter the field of natural gas distributed energy, with
its models gradually expanded to SGT300, SGT700 and SGT2000E. As the general supplier of Siemens gas
turbine in China, the company has carried out gas turbine business from two aspects of project procurement and
integrated implementation, and has the ability of selecting combined cycle projects for distributed energy, has
established the complete system supporting standards and material systems, and can complete the independent
processing and supporting work of equipment other than the gas turbine itself. In the industrial fields including
the cogeneration /combined cycle power plant and the oil & gas project with distributed energy projects that
adopt the small and medium gas turbines, the Company not only can provide gas turbine equipment for
customers, but also can provide customers with complete sets of equipment for gas turbine power plant and the
efficient integrated solutions. Especially, it can provide customers with operational support services throughout
the product life, and this service model is conductive for the establishment of long-term business cooperation
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
relationships between the company and its customers.
As the major producer of industrial equipments in China, our company is mainly benefited from the
following factors in terms of the elements driving our business performance:
1. On the basis of market demands. The relevant market demands fluctuate differently due to various business
condition and investment cycles in different industrial fields. The company further made more specified
positions toward the market for the products, implemented the differentiated marketing strategy, and integrated
the business sectors and tapped into the potential, According to different customers' needs, it has further
consolidated the original market position and broadened the market share in new fields through precise
matching and precise policies.
2. Innovation and further reform in difficult areas of product technology ： Our company continuously
improves product technical performance and tackles hard issues in the scientific researches of product structure,
core parts, basic design, manufacturing technology, material technology, etc. In addition, basing on clients’
demands, To push forward the intelligence of our products and the development of the integration technology.
Meantime, the company cooperated with universities, scientific research institutes to build the technological
exchange and cooperation platform.
3. Upgrading of industrial structure transformation ： The company jointed with Siemens to enter the
distributed energy market and enhance the development and utilization of natural gas distributed energy. In the
industrial fields including the cogeneration /combined cycle power plant and the oil & gas project with
distributed energy projects that adopt the small and medium gas turbines, the Company not only can provide gas
turbine equipment for customers, but also can provide customers with complete sets of equipment for gas
turbine power plant and the efficient integrated solutions. the Company took the new energy company as the
platform to deeply explore the cogeneration needs of customers in the petrochemical field, and gradually
transformed to engineering, systematization and financialization.
4. Brand and market position：The company’s products have a good reputation and extensive brand influence
in the domestic market, The company has maintained a leading market share in the domestic industrial drive.
The company's products have a high reputation and brand influence in the domestic market.
5.Cost controlling level：As domestic labor costs continue to rise and the price of industrial products continue
to decline, the product profitability is facing a severe test. In recent years, the company continuously improves
the level of costs controlling by improving the organizational structure, optimizing business processes,
enhancing the supply chain controlling, strengthening risk management, raising the efficiency of all the staff
and so on.
6.Emphasis on quality engineering and services: promote the key project management, meticulously plan key
projects, implement dynamic quality supervision; attach importance to products’ after-sales service market,
integrate existing resources to increase after-sales service initiative, extend product value chain, and promote
the company’s transformation from manufacturing to service.
(II) Operating conditions during the reporting period
During the reporting period, optimized and adjusted its business strategy, continued to increase market
development, steadily promoted transformation and upgrading, as well as management efficiency enhancement,
and continued to promote the high-quality development of enterprise. In the first half of 2023, the company
realized operating income of 2,622.2451 million yuan, total profit of 179.1560 million yuan and net profit of
178.1285 million yuan, of which net profit attributable to shareholders of listed companies was 149.6997
million yuan. Compared with the same period of last year, the operating income decrease by 14.75% year on
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
year, total profit decreased by 60.54% year on year, net profit decreased by 54.15% year on year, and net profit
attributable to shareholders of listed companies decreased by 57.02% year on year. Facing the risks and
opportunities brought by industrial policies, the Company maintained its strategic determination and patience,
and tackled the annual business objectives with the determination and attitude of sprinting.
1. Strategic Lead
During the reporting period, The Company will scientifically formulate the strategic performance targets
for 2023, and do well in tracking management, performance measurement and quantitative analysis of monthly
strategic performance indicators. It shall start from the objective actual situation, comprehensively analyze the
changes in the Company's internal and external operating environment, benchmark the four "first-class",
reference the 9 strategic measures, soundly do well in the mid-term assessment and mid-term adjustment of the
"14th Five-Year Plan" strategic plan, map out the 2023-2025 three-year action plan, and comprehensively
handle the relationship between strategy and tactics. With the comprehensive reform of regional state-owned
assets and state-owned enterprises as an opportunity, it deeply promoted the deepening reform of Hangzhou
Steam Turbine, successfully introduced strategic investors, further improved the governance structure of listed
companies, and ensured the efficient promotion and implementation of the Company's business strategies and
decisions. Each subsidiary also grasped the relevant policies of state-owned enterprise reform in time and fully
grasped the historical opportunity of the new round of deepening reform of state-owned enterprises. Zhongneng
Company and Casting and Forging Company successively completed the shareholding system reform.
2. Market development
During the reporting period, the Company scientifically formulated marketing strategy and sales strategy
to ensure the stable market share of industrial drive; On the basis of pilot areas and expanding areas, it further
deepened customer relations, realized a broader market layout with deeper customer resources and a broader
stock market, and achieved ideal results in projects such as Ningxia Baofeng, Hengli New Materials, CNOOC
Ningbo Daxie, China Petroleum Jilin Ethylene and Wanhua Chemical, and achieved fruitful orders from major
customers; Its orders in overseas markets were on the rise, and projects in the Middle East and Eastern Europe
were growing rapidly. At present, it focuses on cultivating the overall sales and service capabilities around
overseas hot markets, and strives to form new support points for overseas business; It has started the business
adjustment of spare parts and services, increased customer return visits, kept track of key projects, implemented
the "Going Out" strategy, and actively expanded the incremental market.
3. Transformation and upgrading
During the reporting period, the new energy company actively expanded the market field of gas turbine
products, and its gas turbine project orders were well received. In addition, a new energy research institute and a
market development team were established to play the role of a carrier platform for research and market
development in the new energy field and comprehensively expand the comprehensive smart energy business
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
including distributed optical storage integration. During the reporting period, the Company solidly promoted the
R&D of independent gas turbines as planned, with more than 280 new technical reports, more than 800 new
two-dimensional drawings, more than 700 new three-dimensional models, 14 new technical specifications, 41
component tests, and more than 100 trial-manufactured products; It established 3 provincial "Top" key R&D
projects, and applied for the first set of key research projects in the province for one project. During the
reporting period, the Company invested in Western Power to achieve the initial integration with Western Power,
and jointly explored new business directions in gas turbine inspection and maintenance and localization of gas
turbine core components.
4. Management efficiency enhancement
During the reporting period, the Company successfully completed the construction of ERP system and the
optimization of MES and PLM systems, which were data-driven, providing basic guarantee for the Company to
optimize its production and operation mode and improve its operation and management efficiency; According
to the requirements of lean 2.0 construction planning outline, centered by the customer requirements, the
Company issued a list of lean improvement tasks of "reducing cost, shortening delivery period, improving
efficiency and enhancing quality" to promote the improvement of lean whole value chain; The Company
strengthened the execution of comprehensive budget by all business departments and enhanced its
comprehensive budget management ability; During the reporting period, the Company drafted and released the
Cultural Construction Plan 2.0 and the Cultural Construction Practice Plan for 2023, carried out corporate
culture publicity at all levels of the Company, planned cultural exchange activities, and built the brand cultural
position of Hangzhou Steam Turbine, with three-dimensional, diversified and rich cultural activities to assist
strategic implementation, lean landing and business execution.
II. Analysis On core Competitiveness
Firstly. A complete technical innovation system was established. The Company has under its possession of
national, provincial, and municipal grade technical centers, a doctorial workstation, and an academician
workstation. Close co-operations were carried out with institutions and universities from throughout the
country. As the main drafter of national standard on industrial steam turbine, the Company has the newest
technical trend under its close observation. The Company is now providing nearly 600 different models of
steam turbines to the customers and hold the newest technical system covering the product lines up to 150
MW.Cooperating with SIEMENS in the field of gas turbine, our company has been capable of selecting the
model of the combined recycling project of distributed energy. In addition, our company has also been able to
finish the independent processing or supporting work which doesn’t need to depend on the gas turbine
machine.
Secondly .The advantages of solutions. The modular design of industrial steam turbine and the production
pattern featuring parallelization production enable our company to give considerations to the cost, date of
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
delivery and clients’ demands in the process of production in accordance with clients’ personalized designs,
thereby making our company capable of advancing with the development trend of individual requirements.
Our company has always been devoting to the localization in terms of the gas turbine business so as to
achieve the localized one-stop service step by step including the sale, production, installation, debugging,
operation, training and after-sale service. Our company has always been striving to provide clients with the
complete equipment of gas turbine power station and the efficient total solutions.
Thirdly, the Company has established strategic co-operations with main customers in the country. Further
marketing approaches were carried on by involving itself in the customers’ value. A sound and steady image
has been set up in the domestic steam turbine market. In the global market, the Company has acquired
multiple important certifications and has established a primary global recognition.
Fourthly, the Company has its complete service providing system. The Company is not only capable to
provide onsite 24-hour service for the Company’s own products, but also accumulated rich experiences in
technical maintenance and reengineering of other manufacturers’ products.
Fifthly, the Company has cultivated a significant advantage in human resources. Great importance has been
attached to construction of work teams with collection of high-end workforce in the areas of research &
development, At the same time, our company values the cooperation with universities. “Zhejiang Technical
Association for Gas Turbines in Equipment Manufacturing Industry” was officially founded jointly by our
company and Zhejiang University and other scientific research institutions to build a new platform for
integration of production and research in terms of gas turbine technology. The Company has cultivated a
significant advantage in human resources. Great importance has been attached to construction of work teams
with collection of high-end workforce in the areas of research & development, designing, technique, testing,
and quality control. An excellent workforce provides a sound foundation to lift quality and services.
III.Main business analysis
Summary
Found more in”I. Main businesses of the Company in the reporting period”
Changes in the financial data
In RMB
YOY change
This report period Same period last year Cause change
（%）
Turnover 2,622,245,052.99 3,075,980,333.58 -14.75%
Operating cost 1,979,305,685.39 2,228,055,203.58 -11.16%
It was mainly due to the increase
of sales activities of the
Company, the refinement of
Sale expenses 126,209,530.20 78,219,071.00 61.35% employee compensation
accounting and the adjustment of
presentation basis for social
security expenses.
It was mainly due to the
refinement of employee
Administrative
269,254,477.73 368,654,248.66 -26.96% compensation accounting and the
expenses
adjustment of presentation basis
for social security expenses.
It was mainly due to the increase
Financial expenses -4,056,339.45 -13,717,612.11 70.43%
in interest income in this period.
Income tax expenses 1,027,570.07 65,447,951.68 -98.43% It was mainly due to the year-on-
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
year decrease in total profit in this
period.
It was mainly due to the increase
R & D Investment 167,318,299.83 139,161,056.99 20.23%
in R&D investment in this period.
It was mainly due to the reduction
of value-added tax payable in this
period, the corresponding
Taxes and surcharges 6,661,298.14 10,228,475.79 -34.87%
reduction of additional tax and the
increase of land use tax relief in
this period.
It was mainly due to the increase
in recognized income such as
Other income 37,572,220.73 25,736,741.41 45.99%
depreciation of Requisition and
relocated assets in this period.
It was mainly due to the year-on-
year increase in the maturity of
Changing income of
-21,128.30 3,461,208.34 -100.61% bank acceptance bills and receipt
fair value of large gas turbine advance
payments.
It was mainly due to the year-on-
Credit impairment loss -65,899,840.15 -14,898,317.52 -342.33% year decrease in the return of
accounts receivable.
It was mainly due to the year-on-
Impairment loss of
-4,387,308.52 13,716,296.24 -131.99% year decrease in the return of
assets contract assets.
It was mainly due to the decrease
in sales revenue in this period and
Operational profit 159,876,059.16 413,783,066.27 -61.36% the decrease in sales gross profit
margin due to the influence of
product structure.
It was mainly due to the
Non-operational liquidated damage income from
22,172,554.01 44,565,419.80 -50.25%
income the long-term suspension of units
recognized in the previous period.
It was mainly due to the decrease
Non-operating expense 2,892,576.42 4,365,148.35 -33.73% in quality compensation
expenditure.
The reason for the change is the
Total profit 179,156,036.75 453,983,337.72 -60.54%
same as that of operating profit.
The reason for the change is the
Net profit 178,128,466.68 388,535,386.04 -54.15%
same as that of operating profit.
It was mainly due to the increase
in the maturity of bank
Cash flow generated by acceptance bills over the same
335,166,177.34 164,877,823.29 103.28%
business operation, net period last year and the receipt of
large advance payments for gas
turbines.
It was mainly due to the increase
Net cash flow
in land transfer fees paid and the
generated by 361,953,601.24 429,088,988.42 -15.65%
purchase of shares in Western
investment
Power Company in this period.
It was mainly due to the increase
in net inflow of bank loans in this
Net cash flow
-237,447,765.57 -534,111,260.71 55.54% period and the return of related
generated by financing
party borrowings in the same
period last year.
Net increasing of cash See the above reasons that affect
463,857,344.43 72,879,205.50 536.47%
and cash equivalents the net cash flow.
Significant changes in the profit structure or profit source of the Company during the reporting period
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
□ Applicable √ Not applicable
None
Component of Business Income
In RMB
This report period Same period last year Changed over last
Amount Proportion Amount Proportion year（％）
Total operating revenue 2,622,245,052.99 100% 3,075,980,333.58 100% -14.75%
On Industry
Boiler and power machine manufacture 2,319,494,291.76 88.45% 2,759,723,357.46 89.72% -15.95%
Other 302,750,761.23 11.55% 316,256,976.12 10.28% -4.27%
On product
Industrial steam turbine and
1,997,885,578.89 76.19% 2,522,640,891.50 82.01% -20.80%
complement
Part 278,614,772.37 10.63% 224,265,413.90 7.29% 24.23%
Complete sets of waste heat power
42,993,940.50 1.64% 12,817,052.06 0.42% 235.44%
stations
Engineering service 74,956,930.98 2.86% 136,436,660.82 4.44% -45.06%
Other 227,793,830.25 8.68% 179,820,315.30 5.84% 26.68%
On Area
Domestic 2,527,614,140.49 96.39% 2,965,087,190.38 96.39% -14.75%
Overseas 94,630,912.50 3.61% 110,893,143.20 3.61% -14.66%
Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □ Not applicable
In RMB
Increase/decrea
Increase/decrea Increase/decrease
se of business
se of revenue in of gross profit rate
Gross profit cost over the
Turnover Operation cost the same period over the same
rate(%) same period of
of the previous period of the
previous year
year(%) previous year (%)
(%)
On Industry
Boiler and
2,319,494,291. 1,783,544,802.
power machine 23.11% -15.95% -10.08% -5.02%
76 09
manufacture
On product
Industrial steam
1,997,885,578. 1,521,362,277.
turbine and 23.85% -20.80% -13.99% -6.03%
89 40
complement
On Area
2,527,614,140. 1,915,856,251.
Domestic 24.20% -14.75% -9.71% -4.24%
49 41
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √ Not applicable
IV. Analysis of Non-core Business
√ Applicable □Not applicable
15
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
In RMB
Proportion in Sustainable (yes or
Amount Explanation of cause
total profit no)
Mainly due to confirmation of the dividends
Investment income 115,055,910.11 64.22% of Hangzhou Bank and the investment income
of wealth management products.
Fair value change profit
-21,128.30 -0.01%
or loss
It was mainly due to the liquidated damage
Non-operating income 22,172,554.01 12.38% income from the termination of the agreement
with customers and the Company.
It was mainly due to quality compensation
Non-operating expenses 2,892,576.42 1.61%
expenditure.
It was mainly due to the requisition and
Other income 37,572,220.73 20.97% relocation compensation confirmation income
and government subsidy income.
It was mainly the provision for bad debts of
Credit impairment loss -65,899,840.15 -36.78%
accounts receivable in this period.
Loss of asset It was mainly due to the provision for bad
-4,387,308.52 -2.45%
impairment debts of contract assets in this period.
16
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
V. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of Reporting period End of same period of last year
Change in Reason for significant
As a percentage of percentage(%) change
Amount
total assets(%)
Monetary fund 2,376,579,866.09 14.69% 1,954,980,787.90 12.72% 1.97%
Accounts receivable 2,155,481,566.58 13.32% 1,924,679,367.08 12.52% 0.80%
Contract assets 535,458,776.30 3.31% 587,719,735.46 3.82% -0.51%
Inventories 2,467,086,961.82 15.25% 2,322,461,286.52 15.11% 0.14%
Real Estate investment 6,225,224.79 0.04% 6,451,478.55 0.04% 0.00%
Long-term equity investment 0.00% 0.00% 0.00%
Fixed assets 1,911,721,079.96 11.82% 1,926,594,610.89 12.53% -0.71%
Construction in process 365,010,402.45 2.26% 286,290,854.97 1.86% 0.40%
Using right assets 21,414,725.46 0.13% 28,105,943.29 0.18% -0.05%
Short-term-Borrowing 395,505,710.62 2.44% 287,753,227.89 1.87% 0.57%
Contract liabilities 2,672,342,862.55 16.52% 2,306,912,441.68 15.00% 1.52%
Long-term borrowing 154,700,000.00 0.96% 159,903,673.86 1.04% -0.08%
Lease liabilities 13,498,941.33 0.08% 16,334,023.10 0.11% -0.03%
2. Major overseas assets
□ Applicable √ Not applicable
3.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
17
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
In RMB
Impairment
Amount at year Gain/loss on fair Cumulative fair Purchased Sold amount in
provisions in
Items value change in the value change amount in the the reporting Other changes Amount at year end
the reporting
beginning reporting period recorded into equity reporting period period
period
Financial assets
1.Transactional financial
assets（Excluding
607,001,143.44 -21,128.30 -891,610.92 673,000,000.00 878,002,406.26 401,977,608.88
Derivative financial
assets）
4.Other Equity Instrument
3,556,127,694.48 -361,594,024.98 2,803,579,629.50 3,194,533,669.50
Investment
5.Other non-current
5,534,773.22 5,534,773.22
financial assets
6. Receivable financing 817,555,768.45 184,266,122.10 1,001,821,890.55
Total of the above 4,986,219,379.59 -361,615,153.28 2,802,688,018.58 673,000,000.00 878,002,406.26 184,266,122.10 4,603,867,942.15
Financial Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other changes
Other changes in receivables financing were the increase in the amount of bank acceptance bills.
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
4. Restricted asset rights as of the end of this Reporting Period
In RMB
Items End of Book value Reason
Monetary fund 107,694,119.90 Utilized for issuing bank acceptance bill and L/G
Note receivable 23,811,059.87 Commercial acceptance bill endorsed and not terminated
Receivable financing 173,017,714.97 Utilized for issuing bank acceptance bill
Fixed assets 88,896,960.49 Utilized for pledging to obtain the bank loan
Intangible assets 23,168,681.57 Utilized for pledging to obtain the bank loan
Total 416,588,536.80
18
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
VI. Analysis on investment Status
1. General
√ Applicable □ Not applicable
Investments made in the reporting Investments made in same period of last
+/- %
period(RMB) year(RMB)
196,924,681.83 102,013,987.50 94.73%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
Gain or Wheth
Name of Progress
Capit Less or er to
the Share Investm up to Date of
Main Investm Investment al Product Anticipat the Involv
Compan Proportion Partner ent Balance Disclos Disclosure Index
Business ent Way Amount Sour Type ed Current e in
y % Horizon Sheet ure
ce Income Investm Lawsu
Invested Date
ent it
Liaoning
Passion
Energy
Technolo
gy Co.,
Pengzho Complet
Ltd.,
u Purchas ed
Chengdu Gas http//.www.cninfo.c
Western e equity equity -
Manufactur 102,670,000 Self Mengjia Long- turbine January om.cn
Power and 56.64% acquisiti 0.00 640,576. No
ing .00 fund ng term maintena 17,2023 Announcement
Technolo increase on and 48
Investme nce No.:2023-02
gy Co., capital increase
nt Group
Ltd. capital
Co.,
Ltd., and
other
natural
persons
-
102,670,000
Total -- -- -- -- -- -- -- -- 0.00 640,576. -- -- --
.00
48
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □ Not applicable
19
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
In RMB
Reasons
Accrued for not
Accrued Actual Realized Reaching
Investment
General Investment Project Income the
New plant Self- amount in this Capital Anticipated Disclosure
Yes equipment Amount up to schedu up to the Planned Disclosure Index
date
project built reporting Source income
manufacturing the End of le End of Schedule
period
Reporting Period Reporting and
Period Anticipated
Income
General
New plant Self- Self
Yes equipment 6,176,965.54 1,670,999,705.34 96.41% No
project fund
built
manufacturing
Annual output General
Self- http//.www.cninfo.com.cn
of 10 sets of gas Self December
Yes equipment 56,706,378.38 138,406,656.47 27.68% No Announcement
turbine unit fund 22,2022
built No.:2022-60
project manufacturing
Total -- -- -- 62,883,343.92 1,809,406,361.81 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Mode Purch Sale Gain/ Sauc
Securit Acco
Stock of Book value balance Changes in fair Cumulative fair ase amou loss Book value balance e of
y Security Initial investment untin
Abbrevi accou at the beginning of value of the this value changes in amou nt in of the at the end of the the
categor code cost g
ation: nting the reporting period period equity nt in the report reporting period share
y items
measu the this ing s
20
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
remen this perio perio
t perio d d
d
Other
Domes equit
tic and Hangzh y
Self
600926 390,954,040.00 FVM 3,556,127,694.48 -361,594,024.98 2,803,579,629.50 0.00 0.00 0.00 3,194,533,669.50 Instru
funds
foreign ou Bank ment
invest
stocks
ment
Domes Finan
Debt
tic and LUTIA cial
restru
000912 2,869,219.80 FVM 1,998,737.18 -21,128.30 -891,610.92 0.00 0.00 0.00 1,977,608.88 assets
cturi
foreign NHUA transa
ng
ction
stocks
Total 393,823,259.80 -- 3,558,126,431.66 -361,615,153.28 2,802,688,018.58 0.00 0.00 0.00 3,196,511,278.38 -- --
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
21
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
VIII. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Leading products
Company Name Company type Registered capital Total assets Net assets Operating Income Operating profit Net Profit
and services
Hangzhou Steam
Turbine Auxiliary Subsidiaries Manufacturing 80,000,000.00 700,279,324.75 308,870,873.99 314,224,574.12 25,651,694.39 20,010,364.10
Machine Co., Ltd.
Zhejiang Steam
Turbine Packaged
Commerce &
Technology Subsidiaries 51,000,000.00 286,113,032.61 106,252,515.65 154,694,789.16 16,919,762.66 12,693,571.99
trade
Development Co.,
Ltd.
Hangzhou Steam
Turbine
Machinery & Subsidiaries Manufacturing 30,000,000.00 352,030,332.97 224,040,043.08 195,114,256.70 63,254,993.54 51,726,689.05
Equipment Co.,
Ltd.
Zhejiang Turbine
Commerce &
Import & Export Subsidiaries 20,000,000.00 125,448,551.08 60,670,294.23 43,084,908.43 -1,941,563.29 -1,224,204.39
trade
Co., Ltd.
Hangzhou
Zhongneng Steam
Subsidiaries Manufacturing 120,000,000.00 1,873,225,819.81 296,559,272.95 641,833,933.26 -7,648,150.57 -4,129,894.47
Turbine Power
Co., Ltd.
Hangzhou Steam
Turbine Casting Subsidiaries Manufacturing 29,500,000.00 719,169,385.80 311,486,886.84 227,460,965.32 6,894,713.57 6,924,389.57
Co., Ltd.
New Energy Construction
Subsidiaries 500,000,000.00 1,153,428,255.05 238,132,484.58 452,482,787.07 44,433,644.40 45,140,138.23
Company business
Sales Company Subsidiaries Traffic business 5,000,000.00 87,378,394.79 51,249,384.11 34,862,889.07 2,384,341.18 2,132,875.50
China mechanical
Commerce &
and Electrical Subsidiaries 1,000,000.00 2,972,308.95 2,973,016.50 887,100.00 99,082.21 95,797.40
trade
Institute
Ranchuang Commerce &
Subsidiaries 155,000,000.00 239,269,375.56 203,873,893.11 10,340,024.41 -2,558,128.49 -2,065,027.93
Company trade
22
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Subsidiaries obtained or disposed in the reporting period
√ Applicable □Not applicable
Means of acquisition and disposal of Impact on overall production, operation
Company name
subsidiaries during the reporting period and performance
Pengzhou Western Power Technology Business merger are not under the same
No significant impact
Co., Ltd. control
Note
23
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
IX. Structured subject situation controlled by the company
□ Applicable √ Not applicable
X. Risks facing the Company and countermeasures
1. Market risks
The domestic steam turbine industry has excess capacity and intensified market competition. The national goal of
"carbon emission peak and carbon neutrality" will have a profound impact on the high-emission industries
represented by petrochemical, steel, electric power and building materials, and the sales of the company's products
will be further impacted. Relying on technological innovation, the company will actively highlight the core
technology advantages, expand the marketing channels, improve the product quality, enhance the end service
capabilities, continuously increase the added-value of products and vigorously tap into the potential demands to
positively respond to the market and defuse the market risks.
2. Contract execution risk
As the market volatility becomes more intensified, there are more frequent changes in the contract during the
execution of the contract for the company, and delays and suspensions of the project schedule happen from time to
time, which will have a large impact on the internal realization process of production of the company, and
meanwhile it also increases the cost of the company’s contract performance and the contract risk. The company
will further strengthen the connection between production and sales, improve the speed and level of the company's
response to the market, and well control the contract execution risk.
3. Accounts receivable risk
With the increasing risk in the business downturns and investment projects in some customers of the
downstream industry, the company's receivables recovery has more risk, and the average age of accounts tends to
increase, which will have a large impact on the company's operating results. The company will implement the
customer credit management, strengthen the contract signing and perform the risk control, increase the assessment
of accounts receivable, and reduce the adverse impact of overdue receivables.
4. Exchange rate risk
The expansion of the company's international procurement and international sales business will cause the
company's international balance of payments to be affected by exchange rate fluctuations, and there is a certain
risk of exchange loss. With the increase in the two-way volatility of the RMB exchange rate, the uncertainty of
foreign exchange gains and losses has been increased. The company will refer to the exchange rate volatility cycle
and adopt appropriate exchange rate risk management tools to minimize exchange loss.
5. The company's profitability decline risk
As domestic raw materials and labor costs continue to rise, while the prices of industrial products continue to
fall, the profitability of products is facing a severe test. The company will strive to improve internal management,
improve project cost management ability, reduce procurement costs and operation and management costs,
improve operational efficiency, and strive to resolve the risk of declining profitability.
6. Overseas market risk
During the "fourteenth Five-Year Plan" period, the company will vigorously implement the "go global"
strategy, further expand overseas target markets, and increase the company's share and influence in the
international market. However, at present, the overseas target market is affected by geopolitical conflicts,
unpredictable changes of internal political and economic situation and trade barrier policies in the region, thus
there is great uncertainty in the implementation of overseas market strategies. The company will increase market
research efforts, actively demonstrate countermeasures, and explore the development path of business localization.
24
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
IV. Corporate Governance
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Convened Disclosure Index to disclosed
Meeting Type
participation ratio date date information
Annual General Annual Shareholders’ April April Announcement
69.67%
Meeting of 2022 general meeting 19,2023 20,2023 No.:2023-36
The First provisional
Provisional Shareholders’ June Announcement
General Meeting of 67.53% July 1,2023
general meeting 30,2023 No.:2023-61
2023
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□ Applicable √ Not applicable
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Wang Gang Director Left June 30,2023 Election
Li Bo Director Elected June 30,2023 Election
Zhu Chenqian Supervisor Left June 30,2023 Election
Xie Xueqing Supervisor Elected June 30,2023 Election
III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
□ Applicable √ Not applicable
The Company planned not to distribute cash dividend and bonus share, and not to convert capital reserves into
share capital in half year.
IV. Implementation of any equity incentive plan, employee stock ownership plan or other incentive
measures for employees
√ Applicable □Not applicable
1. Equity incentive
(I) On July 11, 2021, the 14th Meeting of the Eighth Board of Directors reviewed and approved the Proposal
on the Company's Restricted Stock Incentive Plan (Draft) in 2021 and its Summary, the Proposal on the
Company's Implementation Assessment Management Measures for the Restricted Stock Incentive Plan in 2021,
and the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to
Handle Matters Related to the Restricted Stock Incentive Plan in 2021, and the Ninth Meeting of the Eighth
Supervisors of the Company reviewed and approved the above related proposals. The Company disclosed related
announcements such as the Restricted Stock Incentive Plan (Draft) and its Summary in 2021, the Implementation
Assessment Management Measures for the Restricted Stock Incentive Plan in 2021, the Incentive Object List of
the Restricted Stock Incentive Plan in 2021, the Self-inspection Form of Equity Incentive Plan, and the Legal
Opinions of Shanghai Allbright Law Offices on the 2021 Restricted Stock Incentive Plan of Hangzhou Steam
Turbine Co., Ltd.
25
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Independent directors of the Company expressed their independent opinions on whether the equity incentive
plan is conducive to the sustainable development of the Company and whether there is any harm to the interests of
the Company and all shareholders.
(II) On August 12, 2021, the Company disclosed the Announcement on the Approval of Equity Incentive
Plan by Hangzhou SASAC. The Company received the Reply of Hangzhou Steam Turbine Co., Ltd. on
Implementing the Restricted Stock Incentive Plan in 2021 (HGZK [2021] No.45), and Hangzhou SASAC
agreed in principle that the Company should implement the restricted stock incentive plan in 2021.
(III)From July 12, 2021 to July 21, 2021, the company will post the "Announcement of the Company's 2021
Restricted Stock Incentive Objects" through the company's business premises, publicizing the names and
positions of the incentive objects, and clarifying the circumstances under which they cannot become equity
incentive objects. , as well as the ways and means of feedback during the publicity period. As of the
expiration of the publicity period, the company has not received any objection from any organization or
individual to the incentive objects of this incentive plan. On August 23, 2021, the Company disclosed the
Publicity and Verification Opinions of the Board of Supervisors of the Company on the List of Incentive Objects
of Restricted Stock Incentive Plan. The Board of Supervisors of the Company believes that the incentive objects
listed in this incentive plan comply with the Administrative Measures, Trial Measures, Notice and other laws,
regulations, normative documents and the scope and conditions of incentive objects stipulated in the Incentive
Plan (Draft), and there is no circumstances that forbids to be incentive objects, and its qualification as the
incentive objects of this incentive plan is legal and effective. On August 23, 2021, the Company disclosed the
Independent Financial Advisor's Report of CITIC Securities Co., Ltd. on the Restricted Stock Incentive Plan
(Draft) in 2021 of Hangzhou Steam Turbine Co., Ltd.
(IV) On August 27, 2021, the Company held the Second provisional Shareholders' General Meeting in 2021,
which reviewed and approved the Proposal on the Company's Restricted Stock Incentive Plan in 2021 and its
Summary, the Proposal on the Company's Implementation Assessment Management Measures for the Restricted
Stock Incentive Plan in 2021, and the Proposal on Requesting the General Meeting of Shareholders to Authorize
the Board of Directors to Handle Matters Related to the Restricted Stock Incentive Plan in 2021.
Meanwhile, the Company disclosed the Self-inspection Report on Insider Information of Restricted Stock
Incentive Plan in 2021 and Stock Trading of Incentive Objects.
(V) On August 30, 2021, the Company convened the 16th Meeting of the Eighth Board of Directors and the
11th Meeting of the Eighth Board of Supervisors, and respectively reviewed and approved the Proposal on
Granting Restricted Stocks to Incentive Objects for the First Time. The Board of Directors of the Company
considered that the granting conditions of restricted stocks stipulated in this incentive plan had been fulfilled, and
agreed to grant 18.17 million restricted stocks to 457 incentive objects who meet the granting conditions on
September 1, 2021 for the first time, at a price of HK$ 6.825 per share. The Board of Supervisors of the Company
verified the list of incentive objectives again and issued a clear consent opinion. Independent directors of the
Company expressed their agreed independent opinions on this.
(VI) On October 22, 2021, the Company completed the registration of granting restricted shares for the first
time, with 455 people registered for the first time and 18,060,000 shares registered.
26
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(VII) On December 16, 2021, the 20th Meeting of the 8th Board of Directors and the 13th Meeting of 8th
Board of Supervisors of the Company reviewed and approved the Proposal on Granting Reserved Restricted
Shares to Incentive Objects.. it is agreed that December 16, 2021 will be reserved for granting restricted shares,
and 1,380,000 restricted shares will be granted to 37 eligible incentive objects at a grant price of HK$ 6.825 per
share. Independent directors of the Company expressed independent opinions on relevant proposals of the Board
of Directors
（VIII) On January 14, 2022, the Company completed the registration of reserved grant of restricted shares,
with 37 registered shareholders reserved and 1,380,000 registered shares.
(IX)On December 21, 2022, the Company held the 30th meeting of the 8th session of the Board of
Directors and the 19th meeting of the 8th session of the Board of Supervisors, in which it deliberated and passed
the "Proposal on Repurchase and Cancellation of Some Restricted Shares" and "Proposal on Adjusting the
Repurchase Quantity and Repurchase Price of the 2021 Restricted Stock Incentive Plan". In view of the fact that 9
of the incentive objects are no longer eligible for incentive objects due to retirement reasons, and 1 person is no
longer eligible for incentive object due to personal reasons, it’s agreed to repurchase and cancel a total of 531,180
shares of restricted shares held by them that have been granted but have not yet been lifted. Meanwhile, as the
Company had completed the implementation of the 2021 profit distribution plan, in accordance with the
provisions of the Incentive Plan, the repurchase price of restricted shares has been adjusted from RMB 5.6764 per
share (HKD price is HK$ 6.825 per share) to RMB 4.06 per share. After the review and confirmation of the
Shenzhen branch of China Securities Depository and Clearing Co., Ltd, the afore-said repurchase cancellation has
been completed .
On March 27, 2023, the Company completed the repurchase and cancellation of 531,180 restricted incentive
shares of 10 incentive targets, and issued the Announcement on Completion of Repurchase and Cancellation of
Some Restricted Shares(Announcement No.:2023-08).
2. Implementation of the ESOP plan
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
27
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
Impact on the
Company's
Name of company or Reasons for production and
Violation situation Penalty result rectification
subsidiary punishment operation of listed
measures
companies
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Other Environmental Information That Should Be Disclosed
None
Measures and effects taken to reduce its carbon emissions during the reporting period
√Applicable □Not applicable
The Company continuously improved and refined the energy management system, and successively
formulated (revised) a series of rules and regulations such as Air Conditioning Management System, Gas
Inspection Management System, Gas Use Management System, Energy Daily Inspection System and Energy
Management Assessment Method, so as to effectively improve the standardization, systematization and
institutionalization level of energy conservation and carbon reduction of the Company. It has scientifically
promoted energy management analysis and research, strengthened statistical monitoring of all kinds of energy
data, adhered to both energy monitoring and energy analysis, improved the potential of energy conservation and
carbon reduction, coordinated the decomposition of energy management indicators, improved the target
management of energy saving and carbon reduction, scientifically decomposed the annual energy consumption
indicators to workshops and departments, and with responsibility as the guide and indicators as focus, solidly
promoted the collaborative efforts of workshops and departments in energy conservation, carbon reduction and
green transformation of the Company. innovated and explored the development of energy management
technology, and improved the effectiveness of energy conservation and carbon reduction technology. The
Company has attached great importance to the technical research on energy technology development and surplus
energy recovery, and insisted on combining various energy utilization and demand realities every year, and
innovatively explored the intelligent, informationalized, energy-saving and low-carbon technical and green
development path of the Company's energy management. It promoted the construction and implementation of
"12MWp Distributed Photovoltaic Power Generation Project in Manufacturing Base". Since the project was
connected to the grid in July 2022, it has achieved a green power generation of 11.18 million kWh.
Reasons for not disclosing other environmental information
Neither the Company nor its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department, but the Company has always attached great importance to environmental
protection and energy conservation and emission reduction. In view of the relevant environmental laws,
regulations and standards issued by the state and local governments, the Company has formulated and improved
various environmental management systems and operating procedures for equipment and facilities such as waste
water, waste gas, noise and solid waste. Since 2006, the Company has introduced IS014001 environmental
28
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
management system and operated effectively. At present, the Company adopts cleaner production management in
an all-round way and practices corporate social responsibility with its own efforts.
Since its environmental management system has been running for many years, the Company has been
strictly abiding by the provisions of relevant national laws and regulations and the principle of continuous
improvement. It has set the environmental protection objectives in stages, and broken them down level by level
for implementation. It has formed the environmental protection responsibility system of each department and
subsidiary, and defined the environmental protection responsibilities of the staff of each department, subsidiary
and each post.
In view of the management of waste water, waste gas, noise and solid waste, the Company has achieved
good environmental performance through the renovation and upgrading of equipment and facilities and effective
management, and there have been no environmental pollution accidents and emissions exceeding the standard for
many years, with good environmental performance.
II. Social responsibilities
With "driving industrial civilization and sustaining China's power" as its business mission, the company leads
the its reform and development with the development concept of "innovation, coordination, green, openness and
sharing". While standardized operation and operation according to law, it strives to shoulder due social
responsibilities and promote the harmonious development of the company, shareholders, investors, employees,
suppliers, customers, consumers and the whole society.
(1) While the company is committed to long-term development and realization of shareholder value, it pays
attention to the natural environment and resources, and undertakes corresponding responsibilities to shareholders,
employees, customers, suppliers, communities and other relevant stakeholders to realize the harmony,
coordination and unity of sustainable development between the company and society.
(2) The company has formulated the "social responsibility management standard", which defines the
company's responsibilities and standard requirements in protecting shareholders and creditors, protects the
interests of employees, ensures safety in production, environmental protection, energy conservation and emission
reduction, and social welfare undertakings, and defines the importance of social responsibility.
(3) The company has further strengthened the protection of the rights and interests of small and medium-sized
investors, strengthened the management of investor relations, and established communication channels in all
aspects. For news affecting major changes in the company's stock price, the company has actively verified the
information content to clarify the facts, and issued announcements when necessary to announce the actual
situation of the company, so as to protect the legitimate rights and interests of small and medium-sized investors.
(4) The company treats suppliers and users in good faith and always maintains good commercial credit and
excellent contract performance level. The company has established a strategic cooperation relationship with
suppliers, set up a convenient information communication platform, and continuously improved the level of
cooperation between the two parties. The company provides customers with high-quality products and
professional services, as well as personalized business solutions adapted to different environments, which are well
received by customers.
(5) The company actively promotes the professional development of employees, continuously improves the
29
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
professional environment of employees, and protects the physical and mental health of employees. The company
has a number of highly skilled talents such as national technical experts and provincial and municipal technical
competition pacesetters, and has set up a number of skilled master studios in the production line to create a golden
blue collar team in modern manufacturing. The company has further raised the level of medical expenses
subsidies for employees, and provided health insurance and cancer prevention insurance for employees.
Throughout the year, the company has continuously carried out group cultural activities, expanded the venues for
cultural and sports activities for employees, supported employees to spontaneously establish various cultural
organizations, and created a dynamic enterprise atmosphere.
(6) The company attaches great importance to environmental protection and energy conservation and emission
reduction. The company has set up special assessment indicators to strictly regulate all kinds of environmental
behaviors in the business process. It strengthens the management of hazardous wastes and strictly controls the
transfer and storage of hazardous wastes. The company's safe disposal rate of hazardous wastes has reached 100%.
During the reporting period, the company's emission tests including waste water, waste gas, noise and other items
all met the national standards. The company has formulated energy consumption control indicators for various
departments, incorporated energy consumption indicators into the annual assessment system, vigorously carried
out energy-saving publicity, regularly organized energy-saving inspections, and implemented a number of energy-
saving renovation projects. The total comprehensive energy consumption for the whole year decreased
significantly year on year.
（7）The Company continued to support and carried out public welfare undertakings. During the reporting period,
it actively responded to the call of the Hangzhou Municipal Party Committee and the Municipal Government for
the "Spring Breeze Action", played a leading and exemplary role as a caring enterprise, and donated 500,000 yuan
to the "Spring Breeze Action".
（8）The Company participated in the assistance activities of "Connecting Villages and Towns" in Hangzhou,
and from 2022 to 2025, it provided assistance activities to Zitong Town, Chun'an County with an annual fund of
RMB 150,000.
30
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
VI. Important Events
I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □ Not applicable
Time of making Period of
commitment commitme Fulfillment
Commitment
Commitment Type Contents nt
maker
Hangzhou
Commitment to
Turbine Power
the transfer
Other Group Co., http://www.cninfo.
target
commitments Ltd., Hangzhou com.cn
company's November Under
made to Steam Turbine (Announcement
accounts 16,2021 Fulfillment
minority Technology No.: 2021-101 and
receivable
shareholders Co.,Ltd. and 2021-102)
recovery and
other
other matters
transferors
Executed
Yes
timely or not?
Note: Hangzhou Turbine Power Group Co., Ltd has been renamed as Hangzhou Turbine Holdings Co., Ltd, and
Hangzhou Steam Turbine Power Technology Co., Ltd has been renamed as Hangzhou Guoyu Property
Management Co., Ltd.
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No such cases in the reporting period.
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the reporting period.
IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report of the Company has not been audited
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board
□ Applicable √ Not applicable
VI. Notes for the related information of “non-standard audit reports” last year by board of directors
□ Applicable √ Not applicable
31
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Litigations and arbitrations
Significant litigations and arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other lawsuits
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
X. Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI.Material related transactions
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
No such cases in the reporting period.
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporting period.
5. Transactions with related finance company, especially one that is controlled by the Company
□Applicable √ Not applicable
No such cases in the reporting period.
6. Transactions with related finance company controlled by the Company
□ Applicable √ Not applicable
32
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
No such cases in the reporting period.
7. Other significant related-party transactions
□ Applicable √ Not applicable
No such cases in the reporting period.
XII. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
√ Applicable □ Not applicable
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Guarantee
disclosure Date of Counter-
Guaranty for
Name of date/No. Amount happening Actual guarantee Complete
Guarantee Guarantee associated
the of of (Date of mount of （If implementation
type （If term parties
Company the Guarantee signing guarantee any） or not
any） (Yes or
guaranteed agreement)
no)
amount
Guarantee of the Company for the controlling subsidiaries
Relevant
Guarantee
disclosure Date of Counter-
Guaranty for
Name of date/No. Amount happening Actual guarantee Complete
Guarantee Guarantee associated
the of of (Date of mount of （If implementation
type （If term parties
Company the Guarantee signing guarantee any） or not
any） (Yes or
guaranteed agreement)
no)
amount
Two
Hangzhou years
Zhongneng The joint from the
Turbine November November
16,800 15,500 liability date of No No
Machinery 4,2021 29,2021
Equipment guaranty expiration
Co., Ltd. of the
principal
33
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
debt
Three
years
Hangzhou from the
Steam The joint
October November date of
Turbine 5,000 1,465.1 liability No No
28,2022 15,2022 expiration
Casting guaranty
Co., Ltd. of the
principal
debt
Three
years
Hangzhou from the
Steam The joint
January March date of
Turbine 30,000 17,023.53 liability No No
26,2022 11,2022 expiration
New guaranty
Energy of the
principal
debt
Three
years
Hangzhou from the
Steam The joint
March April date of
Turbine 30,000 30,000 liability No No
22,2023 6,2023 expiration
New guaranty
Energy of the
principal
debt
Total of actual
Total of guarantee for
guarantee for
subsidiaries approved in 30,000 30,000
subsidiaries in the
the period(B1)
period (B2)
Total of actual
Total of guarantee for
guarantee for
subsidiaries approved at 81,800 63,988.63
subsidiaries at period-
period-end(B3)
end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Guarantee
disclosure Date of Counter-
Guaranty for
Name of date/No. Amount happening Actual guarantee Complete
Guarantee Guarantee associated
the of of (Date of mount of （If implementation
type （If term parties
Company the Guarantee signing guarantee any） or not
any） (Yes or
guaranteed agreement)
no)
amount
Two
Hangzhou years
Guoneng The joint from the
Steam July July date of
5,000 4,267.69 liability No No
Turbine 20,2021 20,2021 expiration
Engineering guaranty of the
Co., Ltd. principal
debt
Hangzhou Two
Guoneng The joint years
Steam July July from the
5,000 1,544.73 liability No No
Turbine 20,2021 20,2021 date of
Engineering guaranty expiration
Co., Ltd. of the
34
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
principal
debt
Two
Hangzhou years
Guoneng The joint from the
Steam July July date of
7,000 3,078.05 liability No No
Turbine 20,2021 20,2021 expiration
Engineering guaranty of the
Co., Ltd. principal
debt
Two
years
Hangzhou
The joint from the
Hangfa
March October date of
Machinery 8,000 5,441.70 liability No No
29,2023 14,2022 expiration
Equipment guaranty of the
Co., Ltd.
principal
debt
Two
years
Hangzhou
The joint from the
Hangfa
March November date of
Machinery 4,000 1,200.00 liability No No
29,2023 3,2022 expiration
Equipment guaranty of the
Co., Ltd.
principal
debt
Total amount of
Total guarantee quota to
guarantee to the
the subsidiaries approved
0 subsidiaries actually 0
in the reporting period
incurred in the reporting
(C1)
period (C2)
Total balance of actual
Total guarantee quota to
guarantee to the
the subsidiaries approved
29,000 subsidiaries at the end 15,532.17
at the end of the reporting
of the reporting period
period (C3)
(C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual
Total of guarantee in the
30,000 guarantee in the Period 30,000
Period（A1+B1+C1）
（A2+B2+C2）
Total of guarantee at Total of actual
Period-end 110,800 guarantee at Period-end 79,520.8
（A3+B3+C3） A4+B4+C4）
The proportion of the total amount of actually
guarantee in the net assets of the Company(that is 10.06%
A4+B4+C4)
Including
Amount of guarantee for shareholders, actual
0
controller and its associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 69,165.24
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets
0
of the company exceed 50%（F）
Total guarantee Amount of the abovementioned
69,165.24
guarantees（D+E+F）
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees ( If 0
any)
35
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Explanations on external guarantee against regulated
0
procedures(If any)
Description of the guarantee with complex method
3.Situation of Entrusted Finance
√ Applicable □Not applicable
In RMB10，000
Source of funds The Occurred
for entrusted Amount of Un-recovered of
Specific type Undue balance Amount overdue
financial Entrusted Wealth- overdue amount
management management
Bank financial
Self fund 61,300.24 40,000 0 0
products
Total 61,300.24 40,000 0 0
The detailed information of entrusted wealth-management with significant amount or low safety, poor liquidity or
high risk with no promise of principal
√ Applicable □Not applicable
In RMB10，000
Am
Sum
ount
mar
of
Whe y of
reser Whe
Actu ther the
Trus Refe Anti ve ther
Actu al has item
tee Capi Crit renc cipat for appr
al colle entr s
insti Sour tal eria e ed deva oved
gain cted ust and
tutio Trus Prod ce Expi inve for annu inco luati by
Am Start s/los gain fina relat
n (or tee uct of ry stme fixin al me on legal
ount date ses s/los nce ed
nam type type fund date nt g rate (if of proc
in ses plan quer
e of s purp rewa of appl with edur
peri in in y
trust ose rd retur icabl dra e
od peri the inde
ee) n e) win (Y/
od futur x (if
g (if N)
e appl
appl
icabl
icabl
e)
e)
Ban Mon
Han k Dec ey
Janu Floa
gzho fina Self emb mar
Ban 6,50 ary ting 1.48
u ncin fund er ket 1.84 1.84 1.84 Yes No
k 0 6,20 inco %
Ban g s 30,2 instr
23 me
k prod 022 ume
uct nt
6,50
Total -- -- -- -- -- -- 1.84 1.84 -- -- -- --
0
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that
may result in impairment
□ Applicable √ Not applicable
36
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
4. Other significant contract
□ Applicable √ Not applicable
No such cases in the reporting period.
XIII. Explanation on other significant events
√ Applicable □Not applicable
On February 3, 2023, the Company received a notice from Hangzhou Turbine Holdings Co., Ltd (hereinafter
referred to as "Turbine Holdings")-the Company's controlling shareholder, that Turbine Holdings intends to
transfer its 5% non-tradable shares of the Company through a public solicitation transfer. For details, please refer
to the "Indicative Announcement on the Controlling Shareholder's Intention to Transfer the Company's Shares by
Agreement through Public Solicitation and Transfer" disclosed by the Company on February 6,
2023(Announcement No.:2023-04). On March 10, 2023, the Company received a written notice from Turbine
Holdings that the public solicitation and transfer plan has been filed by the state-owned assets management
information system. On March 11, 2023, the Company disclosed the "Announcement on the Controlling
Shareholder's Intention to Transfer the Company's Shares by Agreement through Public Solicitation and
Transfer"(Announcement No.:2023-06), and the Company's controlling shareholder-Turbine Holdings intends to
transfer 49,008,999 shares of the Company-accounting for 5% of the total share capital of the Company held by it
by agreement through public solicitation and transfer, and the transfer price is not less than 8.95 yuan per share.
After the comprehensive review by Turbine Holdings, Hangzhou Qitong as finally determined to be the intended
transferee of this public solicitation transfer, and Turbine Holdings and Hangzhou Qitong signed the Share
Transfer Agreement with conditional effect on April 3, 2023. For details, please refer to the "Announcement on
the Progress of the Transfer of the Company's Shares by Controlling Shareholder by Agreement through Public
Solicitation and Transfer Namely the Signing of the Share Transfer Agreement" disclosed by the Company on
April 4, 2023. As at the disclosure date of this report, the approval and share delivery of the afore-said Share
Transfer Agreement have not yet been completed( Announcement No.:2023-32),On June 5,2023,.
The equity delivery of the above-mentioned "Share transfer Agreement" has been completed.
For details, please refer to the "Announcement on the Completion of Transfer Registration of Part of the Co
mpany's Shares Transferred by the Controlling Shareholder Agreement" disclosed by the company on June 6, 202
3(Announcement No.: 2023-45).
XIV. Significant event of subsidiary of the Company
√ Applicable □Not applicable
1. On January 13, 2023, the Company held the 31st meeting of the eighth Meeting of the board of directors, in
which the "Proposal on Increasing Capital in Zhejiang Ranchuang Namely Investing in Western Power" was
deliberated and passed. Ranchuang Company, a wholly-owned subsidiary of the Company, acquired 20% of the
37
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
equity of Western Power Company transferred by Chengdu Meijiang Investment Group Co., Ltd at a price not
higher than the appraisal value of the corresponding equity asset in the appraisal filing, 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 for the
registered capital of 43 million yuan of the capital increase of Western Power Company at a price of 1.27 yuan per
unit of registered capital. For details, please refer to the "Announcement on Increasing Capital in Zhejiang
Ranchuang Namely Investing in Western Power" disclosed by the Company on January 17, 2023(Announcement
No.:2023-02). The afore-said matters have completed the registration procedures for industrial and commercial
changes on March 31, 2023, and obtained the "Business License" renewed by the Pengzhou Administrative
Examination and Approval Bureau, Zhejiang Ranchuang holds 56.64% of the equity of Western Power Company,
and Western Power Company is included in the scope of consolidation of the Company's financial statement in
the current period. For details, please refer to the Company Announcement-Announcement No: 2023-02.
2.On January 17, 2023, the Company received a notice from its subsidiary Zhongneng Company that Zhongneng
Company had completed the relevant industrial and commercial change registration procedures for this capital
increase and share expansion, and received the Business License renewed by the Qiantang District Market
Supervision Administration of Hangzhou. After the completion of this capital increase and share expansion, the
registered capital of Zhongneng Company increased from RMB 92.5 million to RMB 120 million. After
Zhongneng Company completed the change registration, the Company's shareholding ratio of Zhongneng
Company decreased from 60.828% to 46.8883%. The Company has signed an Acting-in-Concert Agreement with
Li Ximing (director of Zhongneng Company, holding 8.2% of Zhongneng Company's equity) and Ge Cunfei
(director of Zhongneng Company, holding 6% of Zhongneng Company's equity), taking concerted actions with a
total shareholding ratio of Zhongneng Company's total share capital of over 50%. Zhongneng Company is still a
holding subsidiary within the scope of the Company's consolidated statements. For details, please refer to the
Company Announcement-Announcement No: 2023-03.
3. In order to further improve the corporate governance structure, improve the management level, enhance
management efficiency and comprehensive competitiveness, and achieve sustainable development, Hangzhou
Zhongneng Steam Turbine Power Co., Ltd. has completed the shareholding system transformation and overall
changed to "Hangzhou Zhongneng Turbine Machinery Co., Ltd.".For details, please refer to the Company
Announcement-Announcement No: 2023-59.
4. In order to further improve the corporate governance structure, improve the management level, enhance
management efficiency and comprehensive competitiveness, and achieve sustainable development, Hangzhou
Steam Turbine Casting Co., Ltd. has completed the shareholding system transformation and overall changed to
"Hangzhou Steam Turbine Casting Co., Ltd.".For details, please refer to the Company Announcement-
Announcement No: 2023-60.
38
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
VII. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalization
Share Bonus
of common Other Subtotal Quantity Proportion
allotment shares
reserve fund
1.Shares with
conditional 623,772,240 63.64% 0 124,754,448 0 0 124,754,448 748,526,688 63.68%
subscription
1.
Founder's 623,772,240 63.64% 0 124,754,448 0 0 124,754,448 748,526,688 63.68%
stock
Of which：
Domestic
623,772,240 63.64% 0 124,754,448 0 0 124,754,448 748,526,688 63.68%
legal person
shares
II.Shares
with -
356,407,740 36.36% 0 71,152,952 0 70,509,972 426,917,712 36.32%
unconditional 642,980
subscription
2.Foreign
shares in -
356,407,740 36.36% 0 71,152,952 0 70,509,972 426,917,712 36.32%
domestic 642,980
market
III. Total of -
980,179,980 100.00% 0 195,907,400 0 195,264,420 1,175,444,400 100.00%
capital shares 642,980
Causes of Change of shares
√ Applicable □Not applicable
Causes of Change of shares:
1. On March 27, 2023, the repurchase of 531,180 restricted shares of 10 incentive targets was canceled;
2. The implementation of the 2022 profit distribution plan leads to that: The Company's profit distribution plan for
2022 is based on the total share capital of 980,179,980 shares at the end of 2022, after deducting 111,800 shares
repurchased by date of record Company in equity distribution and 531,180 shares canceled in December 2022 due
to the retirement and resignation of equity incentive objects, that is, based on 979,537,000 shares, a cash dividend
of RMB 3 and 2 bonus shares are distributed to all shareholders for every 10 shares, instead of converting reserve
fund into share capital;
3. On June 21, 2023, the repurchase cancellation of 111,800 shares remained in the special securities account was
completed.
Approval of change of the shares
√ Applicable □Not applicable
1. On December 21, 2022, the Company held the 30th meeting of the Eighth Board of Directors and the 19th
meeting of the Eighth Board of Supervisors, and deliberated and passed the Proposal on Repurchase Cancellation
of Some Restricted Stocks and the Proposal on Adjusting the Repurchase Quantity and Repurchase Price of the
Restricted Stock Incentive Plan in 2021, agreeing to repurchase and cancel a total of 531,180 restricted stocks
held by 9 retirees and 1 resigned employee, which have been granted but have not been lifted for sales restriction.
39
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
2. The Company's profit distribution plan for 2022 was reviewed and approved at the 2022 Annual General
Meeting of Shareholders held on April 19, 2023.
3. The Company convened the 32nd session of the Eighth Board of Directors on March 27, 2023, and the 2022
Annual General Meeting of Shareholders on April 19, 2023, at which the Proposal on Canceling the Repurchase
of Remaining Shares in the Special Securities Account was reviewed and approved, and the Company agreed to
cancel the repurchase of the remaining 111,800 shares in the special securities account and reduce the registered
capital.
Ownership transfer of share changes
√ Applicable □Not applicable
1. On March 27, 2023, the Company completed the repurchase cancellation of 531,180 restricted shares. The
Company's total share capital was 980,179,980 before the cancellation, and 979,648,800 after the cancellation.
2. On June 16, 2023, the Company completed the profit distribution for 2022. The total share capital of the
Company was 979,648,800 before the dividend, and was increased to 1,175,556,200 after the dividend.
3. On June 21, 2023, the Company completed the repurchase cancellation of the remaining 111,800 shares in the
special securities account. The total share capital of the Company was 1,175,556,200 shares before cancellation,
and 1,175,444,400 shares after cancellation.
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
Number of Number of
Initial Restricted Shares Reason for
Shareholder Unrestricted Increased Date of Restriction
Restricted in the End of the Restricted
Name Shares This Restricted Shares Removal
Shares Term Shares
Term This Term
The limitations are lifted
Equity
according to the relevant
incentive
Zheng Bin 325,000 65,000 390,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Ye Zhong 325,000 65,000 390,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
Equity The limitations are lifted
Yang
260,000 52,000 312,000 incentive according to the relevant
Yongming
restricted provisions of the 2021
40
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
stocks restricted stock incentive
plan
The limitations are lifted
Equity
according to the relevant
incentive
Wang Gang 260,000 52,000 312,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
Kong incentive
260,000 52,000 312,000 provisions of the 2021
Jianqiang restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
Wang incentive
260,000 52,000 312,000 provisions of the 2021
Zhengrong restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
Zhao incentive
260,000 52,000 312,000 provisions of the 2021
Jiamao restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Li Guiwen 260,000 52,000 312,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Li Shijie 260,000 52,000 312,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Cai Weijun 260,000 52,000 312,000 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
The limitations are lifted
Equity
according to the relevant
incentive
Other 22,617,477 3,797,937.00 26,415,414.00 provisions of the 2021
restricted
restricted stock incentive
stocks
plan
Total 25,347,477 0 4,343,937.00 29,691,414.00 -- --
II. Securities issue and listing
□ Applicable √ Not applicable
III. Particulars about the shareholders and substantial controller
In shares
Total number of preferred
shareholders that had
Total number of common shareholders at the end
10,972 restored the voting right at 0
of the reporting period the end of the reporting
period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Non- Number or share
Proportion Number of
Changes in Amount of restricted pledged/frozen
Shareholders of shares shares held
Nature of shareholder reporting restricted ordinary State
held at period -
period shares held shares of Amount
（%） end
held share
Hangzhou Turbine
State-owned legal person 58.68% 689,715,889 65,943,649 689,715,889 0
Holdings Co., Ltd.
41
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Hangzhou Qitong
Equity Investment State-owned legal person 5.00% 58,810,799 58,810,799 58,810,799 0
Partnership（LP）
China Merchants
Secutities(HK)Co., Foreign legal person 0.72% 8,415,610 1,449,232 0 8,415,610
Ltd.
GUOTAI JUNAN
SECURITIES
Foreign legal person 0.67% 7,862,166 1,314,659 0 7,862,166
（HONG KONG）
LIMITED
Zhou Jie Domestic Natural person 0.67% 7,850,000 1,547,700 0 7,850,000
ISHARES CORE
MSCI EMERGING Foreign legal person 0.57% 6,725,834 1,424,572 0 6,725,834
MARKETS ETF
VANGUARD
TOTAL
INTERNATIONAL Foreign legal person 0.56% 6,578,411 1,096,402 0 6,578,411
STOCK INDEX
FUND
VANGUARD
EMERGING
Foreign legal person 0.52% 6,144,344 1,047,457 0 6,144,344
MARKETS STOCK
INDEX FUND
NORGES BANK Foreign legal person 0.33% 3,922,665 653,777 0 3,922,665
Xia Zulin Domestic Natural person 0.32% 3,810,000 640,000 0 3,810,000
Strategy investors or general legal person
becomes top 10 shareholders due to rights issued Not applicable
(if applicable)（See Notes 3）
(1) Hangzhou Turbine Holdings Co., Ltd. and Hangzhou Qitong Equity Investment
Partnership（LP） are the holder of state-shares of the Company, all other shareholders’
are holders of domestic listed foreign shares (B shares)
(2) There is no relationship between Hangzhou Turbine Holdings Co., Ltd. and Hangzhou
Explanation on associated relationship among the Qitong Equity Investment Partnership（LP）.;
aforesaid shareholders (3) Hangzhou Turbine Holdings Co., Ltd. and Hangzhou Qitong Equity Investment
Partnership（LP）are not an “action-in-concert” party with any of other shareholders as
described by the “Administration Rules of Informational Disclosure about Change of
Shareholding Statues of PLCs”.
Above shareholders entrusting or entrusted with
Not applicable
voting rights, or waiving voting rights
Top 10 shareholders including the special
Not applicable
account for repurchase (if any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted Share type
Name of the shareholder shares held at the end of the
reporting period Share type Quantity
Foreign shares placed in
China Merchants Securities (HK)Co., Ltd 8,415,610 8,415,610
domestic exchange
Foreign shares placed in
GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED 7,862,166 7,862,166
domestic exchange
Foreign shares placed in
Zhou Jie 7,850,000 7,850,000
domestic exchange
Foreign shares placed in
ISHARES CORE MSCI EMERGING MARKETS ETF 6,725,834 6,725,834
domestic exchange
Foreign shares placed in
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 6,578,411 6,578,411
domestic exchange
VANGUARD EMERGING MARKETS STOCK INDEX FUND 6,144,344 Foreign shares placed in 6,144,344
42
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
domestic exchange
Foreign shares placed in
NORGES BANK 3,922,665 3,922,665
domestic exchange
Foreign shares placed in
Xia Zulin 3,810,000 3,810,000
domestic exchange
Foreign shares placed in
Wang Yihu 2,568,923 2,568,923
domestic exchange
VFTC INSTITUTIONAL TOTAL INTERNATIONAL STOCK Foreign shares placed in
2,497,664 2,497,664
MARKET INDEX TRUST II domestic exchange
(1)It is unknown to the Company if there is any relationship among
Explanation on associated relationship or consistent action among the the top 10 common share holders without restriction;
top 10 shareholders of non-restricted negotiable shares and that (2) Other shareholders do not belong to the concerted action persons
between the top 10 shareholders of non-restricted negotiable shares and as stipulated in the Administrative Measures for Information
top 10 shareholders Disclosure of Shareholding Changes of Shareholders of Listed
Companies
Notes to the shareholders involved in financing securities (if any)(See
Not applicable
Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-
back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Changes in shareholdings of directors, supervisors and executive officers
√ Applicable □Not applicable
Number Number
Number
Number Number of of of
Shares of
of shares shares restricted restricted
Shares held held at restricted
Working increase decreased shares d shares
Name Title at period- period- shares
status in this in this granted at granted
begin(share) end granted at
period period period at the
（share） period end
（share） （shares） begin period
(share)
(share) (share)
Board
Zheng Bin In office 325,000 65,000 0 390,000 325,000 0 390,000
chairman
Director,
Ye Zhong In office 325,000 65,000 0 390,000 325,000 0 390,000
GM
Yang Vice
In office 260,000 52,000 0 312,000 260,000 0 312,000
Yongming Chairman
Wang Deputy
In office 260,000 52,000 0 312,000 260,000 0 312,000
Gang GM
Deputy
Kong
GM, Chief In office 260,000 52,000 0 312,000 260,000 0 312,000
Jianqiang
Engineer
Wang Deputy
In office 260,000 52,000 0 312,000 260,000 0 312,000
Zhengrong GM
Deputy
Zhao
GM, Chief In office 260,000 52,000 0 312,000 260,000 0 312,000
Jiamao
accountant
Deputy
GM,
Li Guiwen secretary In office 260,000 52,000 0 312,000 260,000 0 312,000
of the
board
Li Binghai Deputy In office 130,000 26,000 0 156,000 130,000 0 156,000
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
GM
Employee
Yan Ying In office 2,700 540 0 3,240 0 0 0
supervisor
Total -- -- 2,342,700 468,540 0 2,811,240 2,340,000 0 2,808,000
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
。
44
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
45
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
IX. Corporate Bond
□ Applicable √ Not applicable
46
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
X. Financial Report
I. Auditors’ Report
Whether the semi-annual financial report had been audited
□Yes No
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by: Hangzhou Turbine Power Group Co., Ltd
June 30,2023
In RMB
Items June 30,2023 January 1,2023
Current asset：
Monetary fund 2,376,579,866.09 1,954,980,787.90
Settlement provision
Outgoing call loan
Transactional financial assets 401,977,608.88 607,001,143.44
Derivative financial assets
Notes receivable 169,351,525.80 95,612,927.26
Account receivable 2,155,481,566.58 1,924,679,367.08
Financing of receivables 1,001,821,890.55 817,555,768.45
Prepayments 575,232,699.61 401,523,615.49
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable 186,786,694.76 25,366,963.26
Including：Interest receivable 0
Dividend receivable 108,750,082.40
Repurchasing of financial assets
Inventories 2,467,086,961.82 2,322,461,286.52
Contract assets 535,458,776.30 587,719,735.46
Assets held for sales
Non-current asset due within 1 year
Other current asset 38,823,238.02 78,949,731.48
Total of current assets 9,908,600,828.41 8,815,851,326.34
Non-current assets：
Loans and payment on other’s behalf disbursed
Creditor's right investment
Other investment on bonds
Long-term receivable 54,741,093.20 77,541,093.03
Long term share equity investment
Other equity instruments investment 3,194,533,669.50 3,556,127,694.48
Other non-current financial assets 5,534,773.22 5,534,773.22
Property investment 6,225,224.79 6,451,478.55
Fixed assets 1,911,721,079.96 1,926,594,610.89
Construction in progress 365,010,402.45 286,290,854.97
Production physical assets
Oil & gas assets
Use right assets 21,414,725.46 28,105,943.29
Intangible assets 294,892,702.25 274,844,788.47
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Development expenses 0
Goodwill 8,417,413.42
Long-germ expenses to be amortized 318,715.60
Deferred income tax asset 375,064,792.31 352,734,092.61
Other non-current asset 31,327,604.47 44,922,954.47
Total of non-current assets 6,269,202,196.63 6,559,148,283.98
Total of assets 16,177,803,025.04 15,374,999,610.32
Current liabilities
Short-term loans 395,505,710.62 287,753,227.89
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 857,066,160.56 411,886,347.73
Account payable 1,327,342,216.64 1,202,915,727.29
Advance receipts 261,912.17 230,204.48
Contract liabilities 2,672,342,862.55 2,306,912,441.68
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 87,838,626.79 139,014,673.58
Tax payable 17,571,527.35 73,385,124.09
Other account payable 187,505,997.93 203,788,336.85
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 63,356,135.03 42,802,886.86
Other current liability 345,837,229.27 267,585,963.69
Total of current liability 5,954,628,378.91 4,936,274,934.14
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 154,700,000.00 159,903,673.86
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 13,498,941.33 16,334,023.10
Long-term payable 15,508,960.46 11,104,088.21
Long-term remuneration payable to staff
Expected liabilities
Deferred income 1,106,056,465.04 877,381,129.85
Deferred income tax liability 424,259,146.87 474,809,014.19
Other non-current liabilities
Total non-current liabilities 1,714,023,513.70 1,539,531,929.21
Total of liability 7,668,651,892.61 6,475,806,863.35
Owners’ equity
Share capital 1,175,444,400.00 980,179,980.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 418,679,076.60 394,935,862.00
Less：Shares in stock 132,070,090.19 136,466,388.09
Other comprehensive income 2,383,042,685.06 2,690,397,606.30
Special reserve 17,575,576.02 17,841,325.92
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Surplus reserves 625,178,089.82 625,178,089.82
Common risk provision
Retained profit 3,416,345,884.37 3,756,414,638.24
Total of owner’s equity belong to the parent company 7,904,195,621.68 8,328,481,114.19
Minority shareholders’ equity 604,955,510.75 570,711,632.78
Total of owners’ equity 8,509,151,132.43 8,899,192,746.97
Total of liabilities and owners’ equity 16,177,803,025.04 15,374,999,610.32
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Lv Lin
2.Parent Company Balance Sheet
In RMB
Items June 30,2023 January 1,2023
Current asset：
Monetary fund 1,263,059,937.51 1,074,031,333.05
Transactional financial assets 261,977,608.88 381,998,737.18
Derivative financial assets
Notes receivable 98,021,434.41 34,407,856.32
Account receivable 1,541,313,608.26 1,438,060,860.05
Financing of receivables 541,281,826.33 456,488,422.29
Prepayments 306,702,425.94 316,162,169.59
Other account receivable 116,055,878.23 8,397,079.99
Including：Interest receivable
Dividend receivable 108,750,082.40 110,000.00
Inventories 1,363,804,155.97 1,258,239,826.08
Contract assets 346,093,474.39 358,622,953.48
Assets held for sales
Non-current asset due within 1 year
Other current asset 11,824,733.57 66,426,019.02
Total of current assets 5,850,135,083.49 5,392,835,257.05
Non-current assets：
Creditor's rights investment
Other creditor's rights investment
Long-term receivable
Long term share equity investment 532,728,455.35 400,480,973.25
Other equity instruments investment 3,194,533,669.50 3,556,127,694.48
Other non-current financial assets 5,534,773.22 5,534,773.22
Property investment
Fixed assets 1,426,594,375.07 1,474,208,708.15
Construction in progress 358,778,967.76 283,786,818.95
Production physical assets
Oil & gas assets
Use right assets 5,113,665.03 2,717,667.45
Intangible assets 185,618,374.91 188,674,302.83
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 315,078,488.20 297,762,053.26
Other non-current asset 30,999,462.87 30,999,462.87
Total of non-current assets 6,054,980,231.91 6,240,292,454.46
Total of assets 11,905,115,315.40 11,633,127,711.51
Current liabilities
Short-term loans 300,000,000.00 200,169,863.01
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Transactional financial liabilities
Derivative financial liabilities
Notes payable 332,696,991.58 5,900,000.00
Account payable 823,649,848.20 740,412,296.58
Advance receipts
Contract Liabilities 1,379,325,175.50 1,332,554,908.08
Employees’ wage payable 48,916,599.72 82,125,367.12
Tax payable 1,002,446.56 17,200,998.61
Other account payable 169,833,384.51 184,847,189.08
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year 1,503,579.95 1,503,579.95
Other current liability 179,036,407.78 140,853,281.80
Total of current liability 3,235,964,433.80 2,705,567,484.23
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 3,651,018.96 1,575,000.00
Long-term payable 7,397,388.69 5,852,616.69
Long-term remuneration payable to staff
Expected liabilities
Deferred income 974,036,749.93 741,999,661.14
Deferred income tax liability 420,569,910.45 474,809,014.19
Other non-current liabilities
Total non-current liabilities 1,405,655,068.03 1,224,236,292.02
Total of liability 4,641,619,501.83 3,929,803,776.25
Owners’ equity
Share capital 1,175,444,400.00 980,179,980.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 199,302,003.26 175,558,788.66
Less：Shares in stock 132,070,090.19 136,466,388.09
Other comprehensive income 2,383,042,685.06 2,690,397,606.30
Special reserve 6,000,000.00 6,000,000.00
Surplus reserves 602,356,402.65 602,356,402.65
Retained profit 3,029,420,412.79 3,385,297,545.74
Total of owners’ equity 7,263,495,813.57 7,703,323,935.26
Total of liabilities and owners’ equity 11,905,115,315.40 11,633,127,711.51
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Lv Lin
3.Consolidated Income Statement
In RMB
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 2,622,245,052.99 3,075,980,333.58
Incl：Business income 2,622,245,052.99 3,075,980,333.58
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,544,692,951.84 2,810,600,443.91
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Incl：Business cost 1,979,305,685.39 2,228,055,203.58
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 6,661,298.14 10,228,475.79
Sales expense 126,209,530.20 78,219,071.00
Administrative expense 269,254,477.73 368,654,248.66
R & D costs 167,318,299.83 139,161,056.99
Financial expenses -4,056,339.45 -13,717,612.11
Including：Interest expense 10,263,749.18 14,311,023.99
Interest income 19,561,114.67 8,990,251.62
Add: Other income 37,572,220.73 25,736,741.41
Investment gain（“-”for loss） 115,055,910.11 120,433,048.90
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 -21,128.30 3,461,208.34
Credit impairment loss -65,899,840.15 -14,898,317.52
Impairment loss of assets -4,387,308.52 13,716,296.24
Assets disposal income 4,104.14 -45,800.77
III. Operational profit（“-”for loss） 159,876,059.16 413,783,066.27
Add ：Non-operational income 22,172,554.01 44,565,419.80
Less: Non-operating expense 2,892,576.42 4,365,148.35
IV. Total profit(“-”for loss) 179,156,036.75 453,983,337.72
Less：Income tax expenses 1,027,570.07 65,447,951.68
V. Net profit 178,128,466.68 388,535,386.04
(I) Classification by business continuity
1.Net continuing operating profit 178,128,466.68 388,535,386.04
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 149,699,746.13 348,340,310.01
2.Minority shareholders’ equity 28,428,720.55 40,195,076.03
VI. Net after-tax of other comprehensive income -307,354,921.24 499,789,796.07
Net of profit of other comprehensive income attributable to -307,354,921.24 499,429,817.33
owners of the parent company.
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -307,354,921.24 499,162,878.22
period
1.Re-
measurement of defined benefit plans of changes in net deb
t or net assets
2.Other comprehensive income under the equity method in
vestee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-307,354,921.24 499,162,878.22
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into 266,939.11
profit or loss.
1.Other comprehensive income under the equity method in
51
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
vestee can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the
reclassification of financial assets
4.Allowance for credit impairments in investments in other
debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 266,939.11
7.Other
Net of profit of other comprehensive income attributable to
359,978.74
Minority shareholders’ equity
VII. Total comprehensive income -129,226,454.56 888,325,182.11
Total comprehensive income attributable to the owner of
-157,655,175.11 847,770,127.34
the parent company
Total comprehensive income attributable minority
28,428,720.55 40,555,054.77
shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.13 0.30
(II)Diluted earnings per share 0.13 0.30
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Lv Lin
4. Income statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 1,354,566,807.13 2,013,198,153.90
Incl：Business cost 1,122,489,549.61 1,526,757,618.92
Business tax and surcharge -1,095,724.82 4,396,939.54
Sales expense 48,610,544.38 30,480,772.71
Administrative expense 153,298,889.89 255,877,513.27
R & D expense 112,101,542.39 76,889,969.80
Financial expenses -6,941,422.67 -18,753,297.78
Including：Interest expenses 4,061,792.74 3,136,478.56
Interest income 12,807,834.86 5,673,663.33
Add：Other income 28,885,376.28 12,527,605.37
Investment gain（“-”for loss） 196,807,835.66 210,274,771.02
Including: investment gains from affiliates
Financial assets measured at amortized cost cease to be
recognized as income
Net exposure hedging income
Changing income of fair value -21,128.30 3,461,208.34
Credit impairment loss -41,527,398.87 -6,885,349.68
Impairment loss of assets -6,964,479.71 8,693,618.73
Assets disposal income
II. Operational profit（“-”for loss） 103,283,633.41 365,620,491.22
Add ：Non-operational income 17,482,924.34 40,010,824.18
Less：Non -operational expenses 504,492.85 719,961.66
III. Total profit(“-”for loss) 120,262,064.90 404,911,353.74
Less：Income tax expenses -13,629,302.15 35,267,132.98
IV. Net profit 133,891,367.05 369,644,220.76
1.Net continuing operating profit 133,891,367.05 369,644,220.76
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -307,354,921.24 499,162,878.22
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -307,354,921.24 499,162,878.22
period
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
1.Re-
measurement of defined benefit plans of changes in net deb
t or net assets
2.Other comprehensive income under the equity method in
vestee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-307,354,921.24 499,162,878.22
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified in
to profit or loss
1.Other comprehensive income under the equity method in
vestee can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the
reclassification of financial assets
4.Allowance for credit impairments in investments in other
debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
VI. Total comprehensive income -173,463,554.19 868,807,098.98
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Lv Lin
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,655,109,561.45 2,097,233,724.19
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 8,471,171.94 21,326,964.77
Other cash received from business operation 60,990,421.55 40,264,529.14
Sub-total of cash inflow 2,724,571,154.94 2,158,825,218.10
Cash paid for purchasing of merchandise and services 1,610,979,524.10 1,204,523,128.29
Net increase of client trade and advance
Net increase of savings in central bank and brother
company
Cash paid for original contract claim
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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 522,888,947.83 521,746,808.63
Taxes paid 123,258,720.03 177,243,515.41
Other cash paid for business activities 132,277,785.64 90,433,942.48
Sub-total of cash outflow from business activities 2,389,404,977.60 1,993,947,394.81
Net cash generated from /used in operating activities 335,166,177.34 164,877,823.29
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 6,110,625.39 25,226,094.97
Net cash retrieved from disposal of fixed assets, intangible
60,795,460.31 18,446.90
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 1,135,609,404.44 1,370,000,000.00
Sub-total of cash inflow due to investment activities 1,202,515,490.14 1,395,244,541.87
Cash paid for construction of fixed assets, intangible assets
124,528,838.53 54,155,553.45
and other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational
43,033,050.37
units
Other cash paid for investment activities 673,000,000.00 912,000,000.00
Sub-total of cash outflow due to investment activities 840,561,888.90 966,155,553.45
Net cash flow generated by investment 361,953,601.24 429,088,988.42
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor
shareholders
Cash received as loans 235,500,000.00 134,300,000.00
Other financing –related cash received
Sub-total of cash inflow from financing activities 235,500,000.00 134,300,000.00
Cash to repay debts 121,000,000.00 187,300,000.00
Cash paid as dividend, profit, or interests 346,073,282.00 358,116,690.75
Including: Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities 5,874,483.57 122,994,569.96
Sub-total of cash outflow due to financing activities 472,947,765.57 668,411,260.71
Net cash flow generated by financing -237,447,765.57 -534,111,260.71
IV. Influence of exchange rate alternation on cash and cash
4,185,331.42 13,023,654.50
equivalents
V.Net increase of cash and cash equivalents 463,857,344.43 72,879,205.50
Add: balance of cash and cash equivalents at the beginning
1,805,028,401.76 1,467,538,968.07
of term
VI ..Balance of cash and cash equivalents at the end of
2,268,885,746.19 1,540,418,173.57
term
Legal Representative: Zheng Bin Person in charge of accounting：Zhao Jiamao Person in charge of Accounting
institute: Lv Lin
6. Cash flow statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,133,708,635.10 981,713,319.15
Tax returned 5,743,511.24 2,343,960.61
Other cash received from business operation 25,930,597.93 13,801,143.82
Sub-total of cash inflow 1,165,382,744.27 997,858,423.58
54
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Cash paid for purchasing of merchandise and services 683,428,608.51 741,904,708.85
Cash paid to staffs or paid for staffs 285,579,275.60 303,082,621.53
Taxes paid 10,686,723.52 69,643,322.68
Other cash paid for business activities 59,571,850.33 11,840,392.70
Sub-total of cash outflow from business activities 1,039,266,457.96 1,126,471,045.76
Net cash generated from /used in operating activities 126,116,286.31 -128,612,622.18
II. Cash flow generated by investing
Cash received from investment retrieving 0.00
Cash received as investment gains 88,167,753.26 115,030,229.74
Net cash retrieved from disposal of fixed assets, intangible
61,985.07 0.00
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
0.00 0.00
operational units
Other investment-related cash received 784,890,547.93 1,143,000,000.00
Sub-total of cash inflow due to investment activities 873,120,286.26 1,258,030,229.74
Cash paid for construction of fixed assets, intangible assets
76,984,654.95 44,020,470.64
and other long-term assets
Cash paid as investment 130,000,000.00 100,000,000.00
Net cash received from subsidiaries and other operational
0.00 0.00
units
Other cash paid for investment activities 410,000,000.00 620,000,000.00
Sub-total of cash outflow due to investment activities 616,984,654.95 764,020,470.64
Net cash flow generated by investment 256,135,631.31 494,009,759.10
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 150,000,000.00 50,000,000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 150,000,000.00 50,000,000.00
Cash to repay debts 50,000,000.00 100,000,000.00
Cash paid as dividend, profit, or interests 297,211,655.57 304,369,338.99
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities 347,211,655.57 404,369,338.99
Net cash flow generated by financing -197,211,655.57 -354,369,338.99
IV. Influence of exchange rate alternation on cash and cash
3,986,342.41 12,193,353.57
equivalents
V.Net increase of cash and cash equivalents 189,026,604.46 23,221,151.50
Add: balance of cash and cash equivalents at the beginning
1,074,013,333.05 873,334,962.40
of term
VI ..Balance of cash and cash equivalents at the end of
1,263,039,937.51 896,556,113.90
term
55
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Com Minor Total of
Items Other
Less: Specializ mon sharehold owners’
Share Capital Comprehen Surplus Retained Oth
Prefer Shares in ed risk Subtotal ers’ equity equity
Capital Sustain Oth reserves sive reserves profit er
red stock reserve provis
able er Income
stock ion
debt
980,179,98 394,935,8 136,466,3 2,690,397,6 17,841,3 625,178,0 3,756,414,6 8,328,481,1 570,711,6 8,899,192,7
I.Balance at the end of last year
0.00 62.00 88.09 06.30 25.92 89.82 38.24 14.19 32.78 46.97
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current 980,179,98 394,935,8 136,466,3 2,690,397,6 17,841,3 625,178,0 3,756,414,6 8,328,481,1 570,711,6 8,899,192,7
year 0.00 62.00 88.09 06.30 25.92 89.82 38.24 14.19 32.78 46.97
- - - - - -
195,264,42 23,743,21 34,243,87
III.Changed in the current year 4,396,297. 307,354,92 265,749. 340,068,75 424,285,49 390,041,61
0.00 4.60 7.97
90 1.24 90 3.87 2.51 4.54
- - -
149,699,74 28,428,72
（1）Total comprehensive income 307,354,92 157,655,17 129,226,45
6.13 0.55
1.24 5.11 4.56
-
（II）Investment or decreasing of - 23,743,21 27,496,532. 27,496,532.
4,396,297.
capital by owners 642,980.00 4.60 50 50
90
- -
1．Ordinary Shares invested by shar -
3,753,317. 4,396,297.
eholders 642,980.00
90 90
2．Holders of other equity instrumen
ts invested capital
3．Amount of shares paid and 27,496,53 27,496,532. 27,496,532.
accounted as owners’ equity 2.50 50 50
4．Other
- - - -
（III）Profit allotment 293,861,10 293,861,10 43,963,58 337,824,68
0.00 0.00 0.00 0.00
1.Providing of surplus reserves
2.Providing of common risk
56
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
provisions
- - - -
3．Allotment to the owners (or
293,861,10 293,861,10 43,963,58 337,824,68
shareholders) 0.00 0.00 0.00 0.00
4．Other
-
(IV) Internal transferring of owners’ 195,907,40
195,907,40
equity 0.00
0.00
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
-
195,907,40
6．Other 195,907,40
0.00
0.00
- -
- -
(V). Special reserves 265,749. 365,217.7
265,749.90 630,967.64
90 4
4,918,20 4,918,206.6 1,782,533. 6,700,740.4
1. Provided this year
6.68 8 76 4
- - - -
2．Used this term 5,183,95 5,183,956.5 2,147,751. 7,331,708.0
6.58 8 50 8
50,143,95 50,143,955.
（VI）Other
5.16 16
1,175,444,4 418,679,0 132,070,0 2,383,042,6 17,575,5 625,178,0 3,416,345,8 7,904,195,6 604,955,5 8,509,151,1
IV. Balance at the end of this term
00.00 76.60 90.19 85.06 76.02 89.82 84.37 21.68 10.75 32.43
Amount in last year
In RMB
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Com Minor Total of
Items Other
Less: Specializ mon sharehold owners’
Share Capital Comprehen Surplus Retained Oth
Prefer Shares in ed risk Subtotal ers’ equity equity
Capital Sustain Oth reserves sive reserves profit er
red stock reserve provis
able er Income
stock ion
debt
57
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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,
I.Balance at the end of last year
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 current 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,
year 00.00 30.50 48.09 756.99 33.52 89.82 410.91 773.65 47.47 521.12
- - -
226,169,5 27,983,67 499,429,81 573,700,23 569,470,86
III.Changed in the current year 494,123. 179,388,70 4,229,373
80.00 1.40 7.33 5.55 1.80
20 9.98 .75
499,429,81 348,340,31 847,770,12 40,555,05 888,325,18
（1）Total comprehensive income
7.33 0.01 7.34 4.77 2.11
（II）Investment or decreasing of 27,983,67 27,983,671 27,983,671
capital by owners 1.40 .40 .40
1．Ordinary Shares invested by shar
eholders
2．Holders of other equity instrume
nts invested capital
3．Amount of shares paid and 27,983,67 27,983,671 27,983,671
accounted as owners’ equity 1.40 .40 .40
4．Other
- - - -
（III）Profit allotment 301,559,43 301,559,43 44,326,37 345,885,80
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
301,559,43 301,559,43 44,326,37 345,885,80
shareholders) 9.99 9.99 0.00 9.99
4．Other
-
(IV) Internal transferring of owners’ 226,169,5
226,169,58
equity 80.00
0.00
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
58
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
-
226,169,5
6．Other 226,169,58
80.00
0.00
- -
- -
(V). Special reserves 494,123. 458,058.5
494,123.20 952,181.72
20 2
1,393,02 1,393,028. 1,416,416.
1. Provided this year 23,388.07
8.84 84 91
- - - -
2．Used this term 1,887,15 1,887,152. 481,446.5 2,368,598.
2.04 04 9 63
（VI）Other
980,179,9 310,929,7 144,078,9 3,128,907, 17,874,9 625,178,0 3,582,194, 8,501,186, 397,835,3 8,899,021,
IV. Balance at the end of this term
80.00 01.90 48.09 574.32 10.32 89.82 700.93 009.20 73.72 382.92
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2023
Other Equity instrument
Items Other Total of
Preferr Capital Less: Shares Specialize Surplus Retained Oth
Share capital Oth Comprehensi owners’
ed Sustaina reserves in stock d reserve reserves profit er
er ve Income equity
stock ble debt
980,179,980. 175,558,788 136,466,388 2,690,397,60 6,000,000. 602,356,402 3,385,297,54 7,703,323,93
I.Balance at the end of last year
00 .66 .09 6.30 00 .65 5.74 5.26
Add: Change of accounting policy
Correcting of previous errors
Other
980,179,980. 175,558,788 136,466,388 2,690,397,60 6,000,000. 602,356,402 3,385,297,54 7,703,323,93
II.Balance at the beginning of current year
00 .66 .09 6.30 00 .65 5.74 5.26
- - - -
195,264,420. 23,743,214.
III.Changed in the current year 4,396,297.9 307,354,921. 355,877,132. 439,828,121.
00 60
0 24 95 69
- -
133,891,367.
（I）Total comprehensive income 307,354,921. 173,463,554.
05
24 19
59
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
-
(II) Investment or decreasing of capital by 23,743,214. 27,496,532.5
-642,980.00 4,396,297.9
owners 60 0
0
- -
1．Ordinary Shares invested by shareholder 27,496,532.5
-642,980.00 3,753,317.9 4,396,297.9
s 0
0 0
2．Holders of other equity instruments inves
ted capital
3.Amount of shares paid and accounted as 27,496,532. 27,496,532.5
owners’ equity 50 0
-
4．Other 307,354,921.
24
- -
（III）Profit allotment 293,861,100. 293,861,100.
00 00
1.Providing of surplus reserves
- -
2．Allotment to the owners (or
293,861,100. 293,861,100.
shareholders)
00 00
3．Other
-
195,907,400.
(IV) Internal transferring of owners’ equity 195,907,400.
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
-
195,907,400.
6．Other 195,907,400.
00
00
(V) Special reserves
1. Provided this year 1,965,808.
1,965,808.97
97
60
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
-
-
2．Used this term 1,965,808.
1,965,808.97
97
（VI）Other
1,175,444,40 199,302,003 132,070,090 2,383,042,68 6,000,000. 602,356,402 3,029,420,41 7,263,495,81
IV. Balance at the end of this term
0.00 .26 .19 5.06 00 .65 2.79 3.57
Amount in last year
In RMB
The first half year of 2022
Other Equity instrument
Other Total of
Items Share Preferr Capital Less: Shares Specialize Surplus Retained Oth
Oth Comprehensi owners’
capital ed Sustaina reserves in stock d reserve reserves profit er
er ve Income equity
stock ble debt
754,010,400 121,457,098 144,078,948 2,630,313,18 6,000,000. 602,356,402 3,493,193,11 7,463,251,25
I.Balance at the end of last year
.00 .65 .09 5.77 00 .65 5.19 4.17
Add: Change of accounting policy
Correcting of previous errors
Other
754,010,400 121,457,098 144,078,948 2,630,313,18 6,000,000. 602,356,402 3,493,193,11 7,463,251,25
II.Balance at the beginning of current year
.00 .65 .09 5.77 00 .65 5.19 4.17
-
226,169,580 27,983,671. 499,162,878. 595,231,330.
III.Changed in the current year 158,084,799.
.00 40 22 39
23
499,162,878. 369,644,220. 868,807,098.
（I）Total comprehensive income
22 76 98
(II) Investment or decreasing of capital by 27,983,671. 27,983,671.4
owners 40 0
1．Ordinary Shares invested by shareholder
s
2．Holders of other equity instruments inve
sted capital
3.Amount of shares paid and accounted as 27,983,671. 27,983,671.4
owners’ equity 40 0
4．Other
- -
（III）Profit allotment 301,559,439. 301,559,439.
99 99
1.Providing of surplus reserves
2．Allotment to the owners (or - -
61
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
shareholders) 301,559,439. 301,559,439.
99 99
3．Other
-
226,169,580
(IV) Internal transferring of owners’ equity 226,169,580.
.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
-
226,169,580
6．Other 226,169,580.
.00
00
(V) Special reserves
1,228,862.
1. Provided this year 1,228,862.21
21
-
2．Used this term 1,228,862. -1,228,862.21
21
（VI）Other
980,179,980 149,440,770 144,078,948 3,129,476,06 6,000,000. 602,356,402 3,335,108,31 8,058,482,58
IV. Balance at the end of this term
.00 .05 .09 3.99 00 .65 5.96 4.56
62
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
III．Basic Information of the Company
Hangzhou 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 Turbine Holdings Co., Ltd(Original name: Hangazhou Steam Turbine Power Group Co., Ltd. Here in
after referred to as "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 1,175.4444 million with total capital share of 1,175.4444 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 June 30, 2022, the Company included the following 17 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 Abbreviation
financial statements of the current period
1 Hangzhou Steam Turbine Auxiliary Co., Ltd. Auxiliary Company
Hangzhou Guoneng Steam Turbine Engineering Co.,
2 Guoneng Company
Ltd.
Zhejiang Steam Turbine Packaged Technologies Co., Packaged Technologies Co.
3
Ltd.,
Hangzhou Steam Turbine Machinery & Equipment Machinery Company
4
Co., Ltd
Zhyejiang Huayuan Steam Turbine Machinery Co., Huayuan Company
5
Ltd.
6 Zhejiang Turbine Import & Export Co., Ltd. Turbine Company
7 Zhejiang Zhongrun Gas Turbine technology Co., Ltd. Zhongrun Company
Hangzhou Zhongneng Turbine Machinery Equiment
8 Zhongneng Company
Co., Ltd.
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
Hangzhou Steam Turbine Automobile Sales Service Sales Company
13
Co., Ltd.
14 Hangzhou Steam Tubine Industry and Trade Co., ltd. Industry and Trade Company
China mechanical and Electrical Institute -HSTG China Mechanical Institute Company
15
(Hangzhou) United Institutes Co., Ltd
16 Zhejiang Ranchuang Turbine mechanical Co., Ltd. Ranchuang Company
17 Pengzhou Western Power Technology Co., Ltd. Western Power Company
IV. Basis of compiling the financial statement
(1) Basis of compiling
The Company adopts perpetual operation as the basis of financial statements.
(2) Assessment on perpetuation
63
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
No issue or situation, in 12 months since the end of report period, composes major doubt on the 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.
64
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(2). Translation of foreign currency financial statements
Asset and liability items in the balance sheet are translated basing on the exchange rate of the balance sheet date;
Owners’ equities other than Retained Profit are translated at the exchange rate of the date when the trade
happened. Income and expense items in the income statement are translated at the similar rate of the date when the
trade happened. Differences generated by the above translating of foreign currencies are demonstrated separately
under the owners’ equity in the balance sheet.
10.Financial instruments
(1) Classification of financial assets and financial liabilities
Financial assets are divided into the following three categories upon initial recognition: 1) Financial assets
measured in amortized cost; 2) Financial assets measured at fair value, whose changes are included in other
comprehensive income; 3) Financial assets measured at fair value, whose changes are included in current profits
and losses.
Financial liabilities are divided into the following four categories upon initial recognition: 1) Financial
liabilities measured at fair value, whose changes are included in current profits and losses; 2) Financial liabilities
resulting from the transfer of financial assets that do not meet the conditions for derecognition or continue to be
involved in the transferred financial assets; 3) Financial guarantee contracts that do not belong to the above 1) or
2), and loan commitments that do not belong to the above 1) and lend at a lower than market interest rate; 4)
Financial liabilities measured in amortized cost.
(2) Recognition basis, measurement methods and conditions for derecognition of financial assets and
financial liabilities
1) The recognition basis and the initial measurement method of the financial assets and the financial
liabilities
When the firm becomes a party to a financial instrument contract, it recognizes a financial asset or financial
liability. For initial recognition of financial assets or financial liabilities, they shall be measured at fair value; for
financial assets and financial liabilities measured at fair value with changes in the current profit and loss, relevant
transaction expenses are directly included in the current profit and loss; for other categories of financial assets or
financial liabilities, relevant transaction expenses are included in the initial recognition amount 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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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,
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
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.
③After initial recognition, the following measurement is the higher of the following two amounts: ① The
reserve amount of loss determined in accordance with the impairment of financial instruments; ② the balance of
the initial recognized amount after deducting the accumulated amortization amount determined in accordance with
the relevant provisions of Accounting Standards for Business Enterprises No.14 —— Revenue.
④ Financial liabilities measured at amortized cost
The real interest rate method is adopted to measure in amortized cost. Gains or losses arising from financial
liabilities measured in amortized cost that are not part of any hedging relationship are included in current profits
and losses when derecognized and amortized according to the effective interest rate method.
4) Termination and recognition of financial assets and financial liabilities
① Terminrecognition of financial assets when one of the following conditions is met:
I. The contractual right to receive cash flow from the financial asset is terminated;
II. Financial assets have been transferred, and the transfer meets the provisions of the Accounting Standards
for Business Enterprises No.23-Transfer of Financial Assets on the derecognition of financial assets.
② When the current obligation of a financial liability (or part thereof) has been discharged, the financial
liability (or part thereof) shall be derecognized accordingly.
(3) Recognition basis and measurement method of financial asset transfer
If the company has transferred almost all risks and rewards in the ownership of financial assets, it shall
terminate the recognition of the financial assets and separately recognize the rights and obligations arising from or
retained in the transfer as assets or liabilities; If almost all risks and rewards on the ownership of financial assets
are retained, the transferred financial assets shall continue to be recognized. If the company neither transfers nor
retains almost all risks and rewards in the ownership of the financial asset, the following situations shall be
handled respectively: 1) If the control over the financial asset is not retained, the recognition of the financial asset
shall be terminated, and the rights and obligations generated or retained in the transfer shall be separately
recognized as assets or liabilities; 2) If the control over the financial assets is retained, the relevant financial assets
shall be recognized according to the extent of continuing involvement in the transferred financial assets, and the
relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the
following two amounts shall be included in the current profits and losses: 1) The book value of the transferred
financial assets on the derecognition date; 2) The sum of the consideration received for the transfer of financial
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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).
(4) Method for determining the fair value of financial assets and financial liabilities
The company adopts valuation techniques which are applicable under current circumstances and supported
by sufficient available data and other information to determine the fair value of relevant financial assets and
financial liabilities. The company divides the input values used by valuation technology into the following levels
and uses them in turn:
1) The input values at the first level are that the company can obtain unadjusted quotations of the same assets
or liabilities in the active market on the measurement date;
2) The input values at the second level are directly or indirectly observable input values of related assets or
liabilities except the input value at the first level, including: quotations of similar assets or liabilities in active
markets; Quotations for the same or similar assets or liabilities in inactive markets; Other observable input values
besides quotation, such as observable interest rate and yield curve during normal quotation interval; Input value of
market verification, etc.;
3) The input values at third level are unobservable input values of related assets or liabilities, including
interest rates and stock volatility that cannot be directly observed or verified by observable market data, future
cash flows of abandonment obligations undertaken in business combination, and financial forecasts made using
their own data, etc.
(5) Impairment of financial instruments
1) Impairment measurement and accounting treatment of financial instruments
On the basis of expected credit losses, the company carries out impairment treatment on financial assets
measured at amortized cost, debt instrument investments measured at fair value whose changes are included in
other comprehensive income, lease receivables, loan commitments other than financial liabilities classified as
financial liabilities measured at fair value, whose changes are included in current profits and losses, financial
liabilities not measured at fair value, whose changes are included in current profits and losses, or financial
guarantee contracts that are not financial asset transfers which do not meet the conditions for derecognition or
which continue to be involved in financial liabilities formed by transferred financial assets, and recognize loss
provisions.
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by
the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted according
to the original real interest rate and the expected cash flow of all contracts receivable according to the contract,
that is, the present value of all cash shortages. Among them, the Company discounts the financial assets purchased
or originated with credit impairment at the actual interest rate adjusted by credit.
For financial assets purchased or originated that have suffered credit impairment, the company will only
recognize the accumulated changes in expected credit losses during the entire duration since initial recognition as
loss reserves on the balance sheet date.
For accounts receivable that do not contain significant financing components or that the company does not
consider financing components in contracts of not more than one year, the company uses simplified measurement
methods to measure the loss reserve according to the expected credit loss amount equivalent to the entire duration.
For lease receivables and receivables containing significant financing components, the company uses
simplified measurement methods to measure the loss reserve according to the expected credit loss amount
equivalent to the entire duration.
For financial assets other than the above measurement methods, the company evaluates whether its credit risk
has increased significantly since the initial recognition on each balance sheet date. If the credit risk has increased
significantly since the initial recognition, the company shall measure the loss reserve according to the amount of
expected credit loss during the whole duration. If the credit risk has not increased significantly since the initial
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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
statements combined of future economic situation, and calculate the
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, Contract 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.
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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.
(2) Pricing of inventory to be delivered
On the Zhongneng 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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
the fair value at the day of losing power. Sum of the consideration obtained from disposal and fair value of the
retained equity shares, less the share of net asset attributable to the Company on continued basis since purchasing
or merger, is accounted into investment gains of the period when the control power is disposed, and goodwill shall
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
transferred to fixed asset at the value estimated, and adjustment will happen after completion of project settlement
process but no adjustment on depreciation provided previously.
26. Loan expenses
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
produce financial benefits. Intangible assets used inside the Company must be approved for their usable characters.
(4) Developing of the intangible assets are supported by sufficient technical, financial, and other resources, and
the intangible assets can be used or sold. (5) Expenditures occurred in developing of the intangible asset may be
reliably measured.
31. Impairment of partial long-term assets
For those long-term assets such as equity investment, fixed assets measured on cost basis, construction-in-process,
intangible assets with limited service life, their recoverable amount shall be evaluated as soon as there was
evidence indicating impairment at the balance sheet day. For intangible assets such as goodwill from merger or
intangible assets with uncertain service lives, impairment test is performed each year whatever there is evidence
of impairment or not. Impairment test on goodwill is performed on combination of related assets.
When the result of prediction shows that the recoverable amount is lower than its book value, the balance shall be
provided impairment provision and accounted into current gain/loss.
32. Long-term amortizable expenses
Long-term deferred expenses are accounted for and amortized for more than one year (excluding one year). Long-
term deferred expenses are recorded according to the actual amount, and amortized evenly by stages during the
benefit period or within the specified period. If the long-term deferred expense item cannot benefit the future
accounting period, all the amortized value of the item that has not been amortized will be transferred to the current
profits and losses.
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 treatment for post-resignation benefits
Post-resignation benefits are divided into set deposit plan and set benefit plan.
1. During the accounting period when the employee provides services to the company, the payable amount
calculated according to the set deposit plan shall be recognized as liabilities and included in the profit and loss of
the current period or related asset costs.
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Company.
(4) Accounting of other long-term employees’ welfares
As of long-term welfares provided to the employees, those which satisfy conditions of the stipulated saving plan
are treated according to related regulations of stipulated saving plan; those which other than the aforesaid, are
treated according to the stipulated beneficiary plan. In viewing of simplifying accounting treatment, employee
wage costs are recognized as service costs, the net amounts of interests of other long-term welfare net liability or
asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related asset.
35. Lease liabilities
For details, please refer to Section X （5）42 Lease.
36. Expected liabilities
(1) When it is very much likely to cause economic interests which can be reliably calculated outflow from
the company to fulfill the obligation which is due to giving security outside, contentious matter, quality guarantee
of products, onerous contract and other contingency, the company will regard the obligation as anticipation
liabilities.
(2) The company will make an initial measurement of anticipation liabilities according to needed expense
of best estimation when fulfilling related obligations and check the book value of anticipation liabilities on the
balance sheet date.
37.Share-based Payment
(1) Types of share-based payment
Including equity-settled share-based payment and cash-settled share-based payment.
(2) Accounting treatment related to implementation, modification and termination of share-based payment
plan
1) Equity-settled share-based payment
Equity-settled share-based payment in exchange for employee services immediately after the grant, shall be
included in relevant costs or expenses according to the fair value of equity instruments on the grant date, and the
capital reserve shall be adjusted accordingly. For equity-settled share-based payment that can only be exchanged
for employee services if the service in the waiting period is completed or the specified performance conditions are
met, on each balance sheet date in the waiting period, based on the best estimation of the number of equity
instruments with the vesting right, the services obtained in the current period shall be included in relevant costs or
expenses according to the fair value of the equity instruments on the granting date, and the capital reserve shall be
adjusted accordingly.
Share-based payment for equity settlement of other parties' services, if the fair value of other parties'
services can be reliably measured, shall be measured according to the fair value of other parties' services on the
acquisition date; If the fair value of other parties' services cannot be measured reliably, but the fair value of equity
instruments can be measured reliably, it shall be measured according to the fair value of equity instruments on the
service acquisition date, and included in the related costs or expenses, and the owner's equity shall be increased
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
correspondingly recognize the increase of the obtained services according to the increase of the fair value of the
equity instruments; If the modification increases the number of equity instruments granted, the fair value of the
increased equity instruments will be recognized as the increase of services by the Company; If the Company
modifies the vesting conditions in a way that is beneficial to employees, the Company will consider the modified
vesting conditions when dealing with the vesting conditions.
If the modification reduces the fair value of the granted equity instruments, the Company will continue to
recognize the amount of services obtained based on the fair value of the equity instruments on the granting date,
without considering the reduction of the fair value of the equity instruments; If the modification reduces the
number of granted equity instruments, the Company will treat the reduced part as the cancellation of the granted
equity instruments; If the vesting conditions are modified in a way that is unfavorable to employees, the modified
vesting conditions will not be considered when dealing with the vesting conditions.
If the Company cancels the granted equity instruments or settles the granted equity instruments during the
waiting period (except those cancelled due to failure to meet the vesting right conditions), the cancellation or
settlement will be treated as accelerated vesting right, and the amount originally recognized during the remaining
waiting period will be immediately recognized.
38 . Other financial instruments such as preferred shares and perpetual capital securities
39.Revenues
Accounting policies used for revenue recognition and measurement
1. Recognizing of revenue
Since the starting date of the contract, the company shall evaluate the contract, identifies each individual
performance obligation contained in, and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.
The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met, otherwise, it is defined as fulfilled at a certain point in time: (1) The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the 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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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.
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
77
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
routine activities of the Company shall be included into the non-operating receipt and disbursement.
5. Accounting treatment method for interest subsidies for policy-based preferential loans
(1) If the finance allocates interest subsidy funds to a lending banks that serves a loan to the Company at a
policy-based preferential rate, the actual debit amount received shall be seen as the entry value of loan and
relevant loan costs shall be worked out pursuant to the loan principal and the policy-based preferential rate.
(2) If the finance directly allocates interest subsidy funds to the Company, corresponding interest subsidies
shall offset relevant loan costs.
41. Deferred income tax assets/ deferred income tax liabilities
1. Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or
paying the liabilities according to difference (for not recognized assets and liabilities which tax basis can be
recognized, the difference is between the tax basis and the book value) between book value of the assets or
liabilities and the tax basis.
2. Deferred income tax assets are recognized limitedly by the income tax which very possibly deduct deductible
temporary difference. At balance sheet day, the not-yet recognized deferred income tax assets in previous fiscal
term are recognized if have evidence to prove there is enough income tax very possibly to deduct deductible
temporary difference.
3. At the balance sheet day, verification will be performed on the book value of differed income tax assets. If it is
not possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the book
value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible,
the reduced amount shall be restored.
4. Current income tax and differed income tax are accounted into current gain/loss account as income tax
expenditures or gains, but exclude the following income taxes: (1) Merger of enterprises; (2) Transactions or
events recognized directly in owners’ equity.
42. Lease
(1)Accounting of operational lease
1) Company as the Lessee
On the start date of the lease term, the company will recognize the lease with a lease term of no more than 12
months and without the purchase option as a short-term lease; and recognize the lease with lower value when a
single leased asset is a brand-new asset as a low-value asset lease. If the company subleases or expects to sublet
the leased assets, the original lease shall not be deemed as low-value asset lease.
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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
According to the Accounting Standards for Business Enterprises No.14-Income, the company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction is a sale.
If the asset transfer in the after-sale leaseback transaction is a sale, the company shall measure the right-to-
use assets formed by the after-sale leaseback according to the part of the book value of the original assets related
to the right-to-use acquired by leaseback, and only recognize the related gains or losses for the rights transferred
to the lessor.
If the asset transfer in the after-sale leaseback transaction is not a sale, the company will continue to
recognize the transferred asset, and at the same time recognize a financial liability equal to the transfer income,
and conduct accounting treatment on the financial liability in accordance with Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
② Company as the Lessor
According to the Accounting Standards for Business Enterprises No.14-Income, the company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction is a sale.
If the asset transfer in the after-sale leaseback transaction is a sale, the company shall conduct accounting
treatment on asset purchase according to other applicable accounting standards for enterprises, and conduct
accounting treatment on asset lease according to Accounting Standards for Enterprises No.21-Lease.
If the asset transfer in the after-sale leaseback transaction is not a sale, the company will not recognize the
transferred asset, but recognize a financial asset equal to the transfer income, and conduct accounting treatment on
the financial asset in accordance with Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments.
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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
Since January 1, 2023, the Company has implemented the provisions of the Interpretation No.16 of Accounting
Standards for Business Enterprises - Accounting Treatment for Deferred Income Tax Related to Assets and
Liabilities Arising from Individual Transactions, which was promulgated by the Ministry of Finance.
（2）Significant estimates changes
□Applicable√ Not applicable
（3）The information of the adjusting items related to the financial statements at the beginning of the year
of first implementation due to the first implementation of new accounting standards from 2023.Adjustment
description
□Applicable√ Not applicable
45.Other
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
The output tax is calculated on the basis 13%，9%，6%
VAT of the income from sales of goods and
taxable services calculated according to
80
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
the provisions of the tax law. After
deducting the input tax allowed to be
deducted in the current period, the
difference is the VAT payable
For those on price basis, taxes are paid at
1.2% of the balance of original value of
House tax the property after deducting of 30%; for 1.2%，12%
those on rental basis, taxes are paid at
12% of the rental.
City maintenance and construction tax Turnover tax payable 7%，5%
Educational surcharge Turnover tax payable 3%
Local education additional Turnover tax payable 2%
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, Huayuan Company,
Zhongneng Company Hangfa Company, Casting Company and 15%
Western Power Company
China mechanical and Electrical Institute -HSTG (Hangzhou)
20%
United Institutes Co., Ltd
Other Subsidiary（Domestic） 25%
2. Preferential tax
(1) According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2020〕No.251)
issued by Department of Science and Technology High-tech Development Center, the Company along with
Guoneng Company , Huayuan Company, Zhongneng Company and Hangfa. – subsidies of the Company, were
qualified as high-tech enterprises for term of three years. As the review result of high-tech enterprises in 2023 has
not yet been determined, 15% of enterprise income tax will be calculated and charged temporarily.
(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 company enjoys high-tech enterprise income tax incentives, thus the
enterprise income tax in 2023 shall be reduced to be 15%.
(3) According to the High-tech Enterprise Certificate (Certificate No.: GR202251003392, valid for three years)
issued by Sichuan Provincial Department of Science and Technology, Sichuan Provincial Department of Finance
and Sichuan Provincial Tax Service, State Taxation Administration on November 2, 2022, the subsidiary Western
Power is entitled to the preferential income tax for high-tech enterprises, so the enterprise income tax in 2023 will
be calculated and charged at a reduced rate of 15%.
(4) According to the Announcement on Further Supporting the Development of Small and Micro Enterprises and
Individual Industrial and Commercial Households (No.12, 2023) of the Ministry of Finance and the State Taxation
Administration, the subsidiary China mechanical and Electrical Institute applies the preferential tax policies for
small and low-profit enterprises in 2023, and the taxable income will be reduced by 25%, and the enterprise
income tax will be paid at a rate of 20%.
3.Other
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
VII. Notes to the Consolidated Financial Statements
1.Monetary funds
In RMB
Items End of term Beginning of term
Cash in stock 27,237.07 107,551.80
Bank deposit 1,961,051,588.60 1,852,884,189.83
Other monetary fund 415,501,040.42 101,989,046.27
Total 2,376,579,866.09 1,954,980,787.90
Total amount of money limited to use,
107,694,119.90 149,952,386.14
such as mortgage, pledge or freeze
Other note：
The bank deposit at the end of the period included RMB 12,178,303.31 of restricted pledge time deposit and RMB
21,000.00 of ETC deposit. Other currency funds at the end of the period included RMB 93,266,077.20 restricted-
use bank acceptance bill deposit, RMB 2,228,739.39 for deposit of letter of guarantee.
2. Transactional financial assets
In RMB
Items End of term Beginning of term
Classified as Financial assets measured
401,977,608.88 607,001,143.44
at fair value through profit or loss
Of which ：
Equity instrument investment 1,977,608.88 1,998,737.18
Financing product 400,000,000.00 605,002,406.26
Of which：
Total 401,977,608.88 607,001,143.44
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 42,997,740.69 42,622,891.99
Trade acceptance bill 126,353,785.11 52,990,035.27
Total 169,351,525.80 95,612,927.26
In RMB
End of term Beginning of term
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proportion( Proporti value Proportion( Proporti value
Amount Amount Amount Amount
%) %)
on(%) on(%)
Of
82
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
which：
Accrual
of bad
debt 176,062, 6,710,63 169,351, 106,144, 10,531,4 95,612,9
107.00% 3.81% 100.00% 9.92%
provisio 165.12 9.32 525.80 380.06 52.80 27.26
n by
portfolio
Of
which：
Bank
42,997,7 42,997,7 42,622,8 42,622,8
acceptan 24.42% 0.00 0.00% 40.16%
40.69 40.69 91.99 91.99
ce
Commer
cial 133,064, 6,710,63 126,353, 63,521,4 10,531,4 52,990,0
75.58% 5.04% 59.84% 16.58%
424.43 9.32 785.11 88.07 52.80 35.27
acceptan
ce
176,062, 6,710,63 169,351, 106,144, 10,531,4 95,612,9
Total 100.00% 3.81% 100.00% 9.92%
165.12 9.32 525.80 380.06 52.80 27.26
Accrual of bad debt provision by portfolio: 6,710,639.32
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion(%)
Bank acceptance bill portfolio 42,997,740.69
Commercial acceptance bill
133,064,424.43 6,710,639.32 5.04%
portfolio
Total 176,062,165.12 6,710,639.32
Note：
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
Category Opening balance Reversed or
Closing balance
Accrual collected Write-off Other
amount
Commercial
acceptance bill 10,531,452.80 -3,820,813.48 6,710,639.32
portfolio
Total 10,531,452.80 -3,820,813.48 6,710,639.32
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
83
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance bill 13,881,414.00
Commercial acceptance 23,811,059.87
Total 13,881,414.00 23,811,059.87
（5）Accounts receivable financing transferred to accounts receivable by the Company at the end of the
period due to failure of the drawer to perform
（6） The actual write-off accounts receivable
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
End of term Beginning of term
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
debt 74,459,0 74,459,0 74,459,0 74,459,0
2.32% 100.00% 2.55% 100.00%
provision 27.13 27.13 27.13 27.13
by single
item
Including
：
Accrual
of bad
debt 3,134,34 978,862, 2,155,48 2,840,17 915,494, 1,924,67
97.68% 31.23% 97.45% 32.23%
provision 4,410.69 844.11 1,566.58 4,129.98 762.90 9,367.08
by
portfolio
Including
：
3,208,80 1,053,32 2,155,48 2,914,63 989,953, 1,924,67
Total 100.00% 32.83% 100.00% 33.96%
3,437.82 1,871.24 1,566.58 3,157.11 790.03 9,367.08
Accrual of bad debt provision by single item：74,459,027.13
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Xinjiang Altay Jinhao Iron Industry Co., Not expected to be
26,010,242.82 26,010,242.82 100.00%
Ltd recovered
Hangzhou New Concept Energy Saving Not expected to be
11,552,855.00 11,552,855.00 100.00%
Technology Co., Ltd 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 Co., Not expected to be
8,974,672.35 8,974,672.35 100.00%
Ltd. recovered
Not expected to be
Qingdong 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
5,287,000.00 5,287,000.00 100.00%
Ltd.Hangzhou Company recovered
Sinosteel Tiancheng Environmental Not expected to be
2,459,550.00 2,459,550.00 100.00%
Protection Science & Technology Co., Ltd. recovered
Minhe Jinxing Hydropower Development Not expected to be
1,468,751.96 1,468,751.96 100.00%
Co., Ltd. recovered
84
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Diebu Axia Hydropower Development Co., Not expected to be
1,132,000.00 1,132,000.00 100.00%
Ltd. recovered
Weifang Leinuote Power Equipment Co., Not expected to be
59,955.00 59,955.00 100.00%
Ltd. recovered
Total 74,459,027.13 74,459,027.13
Accrual of bad debt provision by portfolio: 978,862,844.11
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Accrual of bad debt provision
3,134,344,410.69 978,862,844.11 31.23%
by portfolio
Total 3,134,344,410.69 978,862,844.11
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） 1,096,787,660.85
1-2 years 685,875,589.26
2-3 years 520,422,755.90
Over 3 years 905,717,431.81
3-4 years 267,254,913.49
4-5 years 125,236,819.64
Over 5 years 513,225,698.68
Total 3,208,803,437.82
(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 74,459,027.13 74,459,027.13
by single item
Accrual of bad
debt provision 915,494,762.90 64,375,481.21 1,007,400.00 978,862,844.11
by portfolio
Total 989,953,790.03 64,375,481.21 1,007,400.00 1,053,321,871.24
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Name Amount Way
Jiangxi Huahui Industry Co., Ltd. 475,800.00 Bank transfer
Shanxi Guihua Xunhe Hydroelectricity
531,600.00 Bank transfer
Development Co., Ltd.
Total 1,007,400.00
85
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(3) The actual write-off accounts receivable
（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Client 1 347,378,057.73 10.83% 191,755,034.63
Client 2 118,418,418.74 3.69% 40,659,777.18
Client 3 99,240,301.88 3.09% 5,290,600.00
Client 4 80,644,316.98 2.51% 6,611,620.00
Client 5 45,384,000.00 1.41% 2,269,200.00
Total 691,065,095.33 21.53%
（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 1,001,821,890.55 817,555,768.45
Total 1,001,821,890.55 817,555,768.45
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.
In RMB
Items Pledged amount
Bank acceptance 173,017,714.97
Total 173,017,714.97
(2) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet
date at the period-end
In RMB
Items Amount of recognition termination at the period-end
Bank acceptance 685,509,490.43
Subtotal 685,509,490.43
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.
86
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
7. Prepayments
（1）Age analysis
In RMB
End of term Beginning of term
Age
Book balance Proportion(%) Book balance Proportion(%)
Within 1 year 529,869,933.35 128.00% 367,741,841.11 91.59%
1-2 years 21,969,844.20 5.31% 13,954,754.79 3.48%
2-3 years 5,079,481.43 1.23% 2,556,543.70 0.63%
Over 3 years 18,313,440.63 4.42% 17,270,475.89 4.30%
Total 575,232,699.61 401,523,615.49
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Amount
Proportion(%)
Siemens Energy AB（Simens Energy（Sweden）Co., Ltd. 214,529,846.38 37.29%
China Union Engineering Co., Ltd. 87,403,924.00 15.19%
Keluowen Thermal Energy Technology (Jiangsu) Co., Ltd. 20,758,147.00 3.61%
Xizi Clean Energy Equipment Manufacturing Co., Ltd. 20,414,000.00 3.55%
Shanghai Customs District P.R.China 17,079,607.73 2.97%
Subtotal 360,185,525.11 62.61%
8. Other account receivable
In RMB
Items Closing balance Opening balance
Interest receivable
Dividend receivable 108,750,082.40
Other 78,036,612.36 25,366,963.26
Total 186,786,694.76 25,366,963.26
（1）Interest receivable
1）Classification of interest receivable
In RMB
Items Closing balance Opening balance
Fixed deposit
Total
2）Significant overdue interest
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
1）Dividend receivable
In RMB
Items Closing balance Opening balance
87
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Hangzhou Bank 108,750,082.40
Total 108,750,082.40
2) Significant dividend receivable aged over 1 year
3）Bad-debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Accrual of bad debt provision by single
term
Accrual of bad debt provision by
78,036,612.36 25,366,963.26
portfolio:
Total 78,036,612.36 25,366,963.26
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
900,904.89 402,281.22 11,449,467.43 12,752,653.54
1, 2023
Balance as at January
1, 2023 in current
——Transfer to stage
-3,257,918.80 3,257,918.80 0.00
II
——Transfer to stage
-126,076.34 126,076.34 0.00
III
Provision in the current
2,489,401.93 456,325.19 591,450.50 3,537,177.62
period
Write - off in the
38,937.00 38,937.00
current period
Balance as at June 30,
132,388.02 3,990,448.87 12,128,057.27 16,250,894.16
2023
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） 67,576,186.36
1-2 years 8,576,064.08
2-3 years 8,586,920.65
Over 3 years 9,548,335.43
3-4 years 283,484.21
88
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
4-5 years 45,185.00
Over 5 years 9,219,666.22
Total 94,287,506.52
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 Closing
Category Reversed or
balance balance
Accrual collected Write-off Other
amount
Accrual of bad
debt provision 12,752,653.54 3,537,177.62 38,937.00 16,250,894.16
by portfolio:
Total 12,752,653.54 3,537,177.62 0.00 38,937.00 0.00 16,250,894.16
4) The actual write-off accounts receivable
In RMB
Items Amount
Accrual of bad debt provision by portfolio: 38,937.00
The significant actual write-off other accounts receivable
In RMB
Nature of account Verification Arising from related
Name Amount written off Reason for written off
receivable procedures transactions (Y/N)
Hangzhou Yuhang
Receivable The General
Development of Uncollectible
temporary 38,937.00 Manager's office No
new wall materials amount
payment Meeting
office
Total 38,937.00
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 of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
Beijing Airport Customs of the
Deposit 9,251,353.00 Within 1 year 9.81% 462,567.65
People's Republic of China
Shanghai Customs Waigaoqiao
Deposit 3,710,320.94 Over 5 years 3.94% 3,710,320.94
Office
Hangzhou Chisu Trade Co., Ltd. Deposit 2,848,700.00 2-3 years 3.02% 854,610.00
Fuding City Guanxi Cross-basin
Water Diversion Investment Co., Deposit 2,300,000.00 2-3 years 2.44% 690,000.00
Ltd.
Wanhua Chemical Group Deposit 1,600,000.00 Within 1 year 1.70% 80,000.00
89
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Materials Co., Ltd.
Total 19,710,373.94 20.91% 5,797,498.59
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
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
994,311,885.38 77,637,312.67 916,674,572.71 762,193,831.50 77,637,312.67 684,556,518.83
materials
Goods in
671,593,618.88 74,567,968.42 597,025,650.46 1,019,899,099.40 74,567,968.42 945,331,130.98
progress
Stock
1,094,833,448.56 141,446,709.91 953,386,738.65 834,710,221.13 142,136,584.42 692,573,636.71
goods
Total 2,760,738,952.82 293,651,991.00 2,467,086,961.82 2,616,803,152.03 294,341,865.51 2,322,461,286.52
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Reverse or Reverse or Closing balance
Other Other
write-off write-off
Raw materials 77,637,312.67 77,637,312.67
Goods in
74,567,968.42 74,567,968.42
progress
Stock goods 142,136,584.42 1,162,010.05 1,851,884.56 141,446,709.91
Total 294,341,865.51 1,162,010.05 1,851,884.56 293,651,991.00
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
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
90
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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
581,286,993.03 57,661,449.79 523,625,543.24 577,093,698.74 44,818,828.73 532,274,870.01
guarantee
The
construction
contract 15,340,885.51 3,507,652.45 11,833,233.06 63,333,343.14 7,888,477.69 55,444,865.45
forms the
assets
Total 596,627,878.54 61,169,102.24 535,458,776.30 640,427,041.88 52,707,306.42 587,719,735.46
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Provision for impairment of contract assets in the current period
In RMB
Reversal/write-off in
Items Current accrual Change amount Reason
current period
Accrual by single item
Accrual by portfolio 8,461,795.82 Accrual by aging
Total 8,461,795.82 0.00 0.00
Other note
Contract assets with impairment provision in combination
Items End of term
Book balance Impairment provision Accrual proportion (%)
Aging
596,627,878.54 61,169,102.24 10.25%
portfolio
Subtotal 596,627,878.54 61,169,102.24 10.25%
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 29,827,028.33 51,338,998.29
Prepaid income tax 7,808,370.39 26,920,714.32
Rent charge 154,500.00 690,018.87
Profit and loss of property to be handled 1,033,339.30
Total 38,823,238.02 78,949,731.48
91
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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
82,022,203.3 27,281,110.1 54,741,093.2 106,022,203. 28,481,110.3 77,541,093.0
Project item
7 7 0 37 4 3
82,022,203.3 27,281,110.1 54,741,093.2 106,022,203. 28,481,110.3 77,541,093.0
Total
7 7 0 37 4 3
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial
assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-
term accounts receivable
Changes in bad debt reserves
In RMB
Opening Increased amount Decreased amount Closing
Items
balance Withdraw recover Other Switch back write-off Other balance
Accrual by single item 24,960,000.00 24,960,000.00
-
Accrual by portfolio 3,521,110.34 1,200,000.17 2,321,110.17
1,200,000.17
Total 28,481,110.34 -1,200,000.17 1,200,000.17 27,281,110.17
17. Long-term equity investment
18.Other non-current Financing assets
In RMB
Items End of term Beginning of term
Hangzhou Bank Co., Ltd. 3,194,533,669.50 3,556,127,694.48
Total 3,194,533,669.50 3,556,127,694.48
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for
Amount of other Reasons for being
other
Recognized comprehensive measured at fair value
Accumulating Accumulating comprehensive
Name dividend income and whose changes are
profit profit income
income transferred to included in other
transferred to
retained earnings comprehensive income
retained earnings
92
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
The stocks of Hangzhou
Bank Co., Ltd. held by
the company cannot pass
the contract cash flow
characteristic test, but the
company does not hold
Hangzhou
the equity instrument for
Bank Co., 108,750,082.40
the purpose of trading, so
Ltd.
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 b
y fair value and whose changes are inclu 5,534,773.22 5,534,773.22
ded in the current profit and loss
Total 5,534,773.22 5,534,773.22
Other note：
Detail
In RMB
Increase /decrease
Change in fair Other
Investees Opening balance Additional Decrease in value comprehensive
investment investment Adjustment to
Gains and losses
revenue
GreenesolpowersystemsPVTLtd. 5,534,773.22
Total 5,534,773.22 0.00 0.00 0.00 0.00
(Continued)
Increase /decrease Closing
Closing balance of
Investees Other equity
Other balance impairment
changes provision
GreenesolpowersystemsPVTLtd. 5,534,773.22
Total 0.00 0.00 0.00 0.00 5,534,773.22 0.00
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at period-beginning 10,169,000.55 10,169,000.55
2.Increase in the current period
93
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(1) Purchase
（2）Inventory \ fixed assets \
project under construction
transfer
(3)Increased of Enterprise
Combination
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 10,169,000.55 0.00 0.00 10,169,000.55
II.Accumulated amortization
1.Opening balance 3,717,522.00 3,717,522.00
2.Increased amount of the period 226,253.76 0.00 0.00 226,253.76
(1) Withdrawal 226,253.76 0.00 0.00 226,253.76
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 3,943,775.76 0.00 0.00 3,943,775.76
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 6,225,224.79 0.00 0.00 6,225,224.79
2.Book value at period-beginning 6,451,478.55 0.00 0.00 6,451,478.55
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
Other note
At the end of the this period, the book value of the investment real estate was RMB6,213,158.93, which was due
to the housing reform to resettlement house: that is, when the family dormitory area of the subsidiary Hangfa
Company was demolished and renovated in 2011, part of the resettlement area could not be renovated because
some residents had received housing subsidies, enjoyed affordable housing, participated in the housing reform in
other places, failed to submit the housing reform information in time, etc., and the property rights belonged to the
Company.
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 1,911,760,989.02 1,926,594,610.89
liquidation of fixed assets -39,909.06
Total 1,911,721,079.96 1,926,594,610.89
94
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(1) List of fixed assets
In RMB
Houses & Machinery Office
Items Transportations Total
buildings equipment equipment
I. Original price
1.Opening balance 1,596,783,530.05 1,243,389,910.30 32,710,150.60 145,275,818.25 3,018,159,409.20
2.Increased amount of the period 26,106,562.65 39,797,675.44 521,466.69 2,162,431.89 68,588,136.67
(1) Purchase 2,443,366.39 521,466.69 1,075,581.99 4,040,415.07
(2) Transferred from construction in progress 790,973.27 0.00 247,161.08 1,038,134.35
(3)Increased of Enterprise Combination 26,106,562.65 36,563,335.78 0.00 839,688.82 63,509,587.25
3.Decreased amount of the period 1,227,439.35 15,946,064.76 1,098,711.00 285,669.93 18,557,885.04
（1）Disposal 1,227,439.35 15,946,064.76 1,098,711.00 285,669.93 18,557,885.04
4. Balance at period-end 1,621,662,684.54 1,267,241,489.79 32,132,906.29 147,152,580.21 3,068,189,660.83
II. Accumulated depreciation
1.Opening balance 211,726,237.99 796,580,369.31 24,487,930.68 46,508,510.13 1,079,303,048.11
2.Increased amount of the period 25,847,097.70 52,502,663.79 407,718.07 2,992,064.51 81,749,544.07
(1) Withdrawal 25,142,406.51 39,728,180.66 407,718.07 2,657,089.41 67,935,394.65
（2）Increased of Enterprise Combination 704,691.19 12,774,483.13 0.00 334,975.10 13,814,149.42
3.Decreased amount of the period 163,658.51 15,418,459.09 1,032,280.35 271,272.62 16,885,670.57
（1）Disposal 163,658.51 15,418,459.09 1,032,280.35 271,272.62 16,885,670.57
4.Closing balance 237,409,677.18 833,664,574.01 23,863,368.40 49,229,302.02 1,144,166,921.61
III. Impairment provision
1.Opening balance 9,028,267.09 3,233,483.11 0.00 0.00 12,261,750.20
2.Increase in the reporting period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
4. Closing balance 9,028,267.09 3,233,483.11 0.00 0.00 12,261,750.20
IV. Book value
1.Book value of the period-end 1,375,224,709.08 430,343,463.86 8,269,537.89 97,923,278.19 1,911,760,989.02
2.Book value of the period-begin 1,376,029,024.97 443,576,057.88 8,222,219.92 98,767,308.12 1,926,594,610.89
(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
In RMB
95
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Items End of term Beginning of term
Transportations -39,909.06
Total -39,909.06
Other note：
22. Construction in progress
In RMB
Items End of term Beginning of term
Construction in progress 365,010,402.45 286,290,854.97
Total 365,010,402.45 286,290,854.97
(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
167,521,415.82 167,521,415.82 161,344,450.28 161,344,450.28
project
Annual output
of 10 sets of
138,406,656.47 138,406,656.47 81,700,278.09 81,700,278.09
gas turbine unit
project
Software
15,309,187.64 15,309,187.64 13,362,743.79 13,362,743.79
project
Other project 40,909,350.40 40,909,350.40 27,285,325.58 27,285,325.58
Prepayment for
equipment or 2,863,792.12 2,863,792.12 2,598,057.23 2,598,057.23
projects
Total 365,010,402.45 365,010,402.45 286,290,854.97 286,290,854.97
(2)Changes of significant construction in progress
In RMB
Includi
ng
Capital
g:
Capital iz
Budget Transf capital
Openi iz ation Source
erred Other End Project iz
Name of （0'00 ng Increas Propor ation of of
to decrea balanc proces ation
project 0 balanc e tion % of interes fundin
fixed se e s of
） e interes t g
assets interes
t rate
t
(%)
this
period
161,34 167,52 Under
New Plant 173,32 6,176, 96.41 9,819,
4,450. 1,415. constr Other
project 8.76 965.54 % 482.47
28 82 uction
Annual
81,700 56,706 138,40 Under
output of 50,000 27.68
,278.0 ,378.3 6,656. constr Other
10 sets of .00 %
9 8 47 uction
gas turbine
96
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
unit project
Software 13,362 15,309
1,946,
,743.7 ,187.6 Other
443.85
project 9 4
Other 27,285 14,262 40,909
638,81
,325.5 ,837.6 ,350.4 Other
project 2.82
8 4 0
Prepaymen
t for 2,598, 665,05 399,32 2,863,
Other
equipment 057.23 6.42 1.53 792.12
or projects
286,29 79,757 365,01
223,32 1,038, 9,819,
Total 0,854. ,681.8 0,402. 0.00
8.76 134.35 482.47
97 3 45
(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-
46,776,400.16 391,374.21 47,167,774.37
beginning
2.Increase in the current
12,720.10 12,720.10
period
（1）Rent 12,720.10 12,720.10
3.Decreased amount of the
period
4. Balance at period-end 46,789,120.26 391,374.21 47,180,494.47
II. Accumulated depreciation
1.Opening balance 18,866,143.96 195,687.12 19,061,831.08
2.Increased amount of the
6,606,094.37 97,843.56 6,703,937.93
period
(1) Withdrawal 6,606,094.37 97,843.56 6,703,937.93
3.Decreased amount of the
period
（1）Disposal
97
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
4.Closing balance 25,472,238.33 293,530.68 25,765,769.01
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-
21,316,881.93 97,843.53 21,414,725.46
end
2.Book value of the period-
27,910,256.20 195,687.09 28,105,943.29
begin
Other note：
26. Intangible assets
(1) Information
In RMB
Non patent
Items Land using right Patent Software Total
technology
I. Original price
1. Balance at
324,343,159.25 344,087.43 8,000,000.00 26,625,890.13 359,313,136.81
period-beginning
2.Increase in the
25,709,423.22 40,269.89 0.00 1,253,759.04 27,003,452.15
current period
(1) Purchase 13,750,500.00 0.00 0.00 746,500.00 14,497,000.00
(2)Internal
0.00 0.00 0.00 0.00 0.00
Development
(3)Increased of
Enterprise 11,958,923.22 40,269.89 0.00 507,259.04 12,506,452.15
Combination
3.Decreased
amount of the
period
（1）Disposal
4.Closing balance 350,052,582.47 384,357.32 8,000,000.00 27,879,649.17 386,316,588.96
II.Accumulated
amortization
1.Opening balance 67,306,817.90 283,831.36 6,066,666.95 10,811,032.13 84,468,348.34
2.Increased
4,021,724.41 25,665.30 400,000.02 2,500,233.50 6,947,623.23
amount of the
98
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
period
(1) Withdrawal 3,338,807.86 16,159.62 400,000.02 2,364,578.55 6,119,546.05
（2）Increased of
Enterprise 682,916.55 9,505.68 0.00 135,654.95 828,077.18
Combination
3.Decreased
amount of the
period
（1）Disposal
4.Closing balance 71,328,542.31 309,496.66 6,466,666.97 13,311,265.63 91,415,971.57
III. Impairment
provision
1.Opening balance
2.Increased
amount of the 0.00 7,915.14 0.00 0.00 7,915.14
period
(1) Withdrawal 0.00
（2）Increased of
Enterprise 0.00 7,915.14 0.00 0.00 7,915.14
Combination
3.Decreased
amount of the
period
（1）Disposal
4.Closing balance 0.00 7,915.14 0.00 0.00 7,915.14
IV. Book value
1.Closing book
278,724,040.16 66,945.52 1,533,333.03 14,568,383.54 294,892,702.25
value
2.Opening book
257,036,341.35 60,256.07 1,933,333.05 15,814,858.00 274,844,788.47
value
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
Other note
27. .Development expenses
In RMB
Increase in this period Decrease in this period
Balance in Internal Recognized Transfer to Balance in
Items developme as current
year-begin Other year-end
nt intangible profit and
expenditure assets loss
Gas turbine 0.00 2,042,159.6 2,042,159.6 0.00
99
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
developme 8 8
nt
2,042,159.6 2,042,159.6
Total 0.00 0.00
8 8
Other note
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the Increase Decrease
investees or the Opening
The merger of Closing balance
events formed balance disposition
goodwill enterprises
Pengzhou
Western Blue
Power 8,417,413.42 8,417,413.42
Technology
Co., Ltd.
Total 0.00 8,417,413.42 0.00 0.00 0.00 8,417,413.42
（2）Impairment provision of goodwill
29.Long-term amortization expenses
In RMB
Balance in year- Increase at this Amortization Balance in year-
Items Other decrease
begin period balance end
Housing
354,128.44 35,412.84 318,715.60
decoration fee
Total 354,128.44 35,412.84 0.00 318,715.60
Other note
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 temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for Asset
1,312,506,186.90 208,613,108.08 1,245,922,022.12 197,517,063.24
Impairment
Internal trade profit not
28,606,742.42 4,291,011.36 21,474,851.24 3,221,227.69
realized
Deduction loss 90,766,393.69 13,614,959.05
Revenue from changes
in fair value generated
by financial assets 891,610.92 133,741.64 870,485.96 130,572.89
classified at fair value
through profit or loss
Requisition and
relocation 982,577,468.66 148,411,972.18 1,005,531,878.82 151,865,228.79
compensation
Total 2,415,348,402.59 375,064,792.31 2,273,799,238.14 352,734,092.61
100
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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
Not the same control
enterprise combined
14,756,945.71 3,689,236.42
assets evaluation value
appreciation
Changes in fair value
of investments in other 2,803,579,629.50 420,536,944.43 3,165,173,654.48 474,776,048.17
equity instruments
Accelerated
depreciation of fixed 219,773.45 32,966.02 219,773.45 32,966.02
assets
Total 2,818,556,348.66 424,259,146.87 3,165,393,427.93 474,809,014.19
（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
375,064,792.31 352,734,092.61
assets
Deferred income tax
424,259,146.87 474,809,014.19
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
Deductible temporary difference
155,449,789.18 155,107,906.71
Deductible loss 119,754,259.29 123,070,154.92
Total 275,204,048.47 278,178,061.63
(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
2023 10,388,277.67
2024 26,189,768.32 26,189,768.32
2025 5,397,758.37 5,397,758.37
2026 12,109,526.82 12,109,526.82
2027 11,525,813.83 2,554,125.34
2028 4,050,142.61 0.00
2029 4,137,298.09 4,137,298.09
2030 0.00 0.00
2031 46,982,771.08 46,982,771.08
2032 1,032,104.86 15,310,629.23
2033 8,329,075.31
Total 119,754,259.29 123,070,154.92
101
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Other note
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book balance Provision Book value Book balance Provision Book value
Items for for
devaluatio devaluatio
n n
Advance
equipment 31,327,604.47 31,327,604.47 31,572,954.47 31,572,954.47
payment
Advance land
13,350,000.00 13,350,000.00
payable
Total 31,327,604.47 31,327,604.47 44,922,954.47 44,922,954.47
Other note
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items
End of term Beginning of term
Mortgage Borrowings 40,000,000.00 50,059,115.83
Guarantee Borrowing 70,000,000.00 70,059,711.17
Credit borrowing 273,505,710.62 155,634,400.89
Domestic letter of credit discount loan 12,000,000.00 12,000,000.00
Total 395,505,710.62 287,753,227.89
Note：
(2) Situation of Overdue Outstanding Short-Term Borrowing
Other note
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 8,000,000.00
Bank acceptance bill 849,066,160.56 403,886,347.73
Total 857,066,160.56 411,886,347.73
The total amount of outstanding notes payable at the end of this period is RMB .
36. Accounts payable
(1) List of accounts payable
In RMB
Items
End of term Beginning of term
Goods 1,104,760,433.42 1,050,477,495.94
102
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Equipment and Engineering 188,501,467.34 140,729,051.34
Other 34,080,315.88 11,709,180.01
Total 1,327,342,216.64 1,202,915,727.29
(2) Notes of the accounts payable aging over one year
Other note：
37. Advances received
(1) List of Advances received
In RMB
Items
End of term Beginning of term
Rent 261,912.17 230,204.48
Total 261,912.17 230,204.48
(2) Notes of the accounts payable aging over one year
38.Contract liabilities
In RMB
Items
End of term Beginning of term
Goods 2,672,342,862.55 2,306,912,441.68
Total 2,672,342,862.55 2,306,912,441.68
Amount and reasons for the significant change in the book value during the reporting period
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short-term
100,054,602.85 411,277,608.64 471,745,455.06 39,586,756.43
compensation
II.Post-
employment benefits -
38,960,070.73 61,982,180.98 52,690,381.35 48,251,870.36
defined contribution pl
ans
Total 139,014,673.58 473,259,789.62 524,435,836.41 87,838,626.79
（2）Short-term remuneration
In RMB
Balance in year- Increase in this period Decrease in this period Balance in year-end
Items
begin
(1) Salary, bonus,
87,578,245.29 306,039,321.39 367,712,056.24 25,905,510.44
allowance and subsidy
(2) Employee benefits 23,687,132.63 22,340,490.55 1,346,642.08
(3) Social insurance
7,556,043.17 31,482,488.61 32,601,858.82 6,436,672.96
expenses
Including: medical
7,291,882.17 29,772,106.82 30,907,718.93 6,156,270.06
insurance premium
Work-related injury
264,161.00 1,710,381.79 1,694,139.89 280,402.90
insurance premium
Maternity insurance
0.00
premium
(4) Housing fund 458,263.96 39,760,564.56 39,769,998.56 448,829.96
103
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(5) Labor union
expenditures and
4,462,050.43 10,308,101.45 9,321,050.89 5,449,100.99
employee education
expenses
Total 100,054,602.85 411,277,608.64 471,745,455.06 39,586,756.43
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
1.Basic pension
7,215,189.04 43,395,576.23 43,493,174.70 7,117,590.57
insurance
2. Unemployment
250,067.96 1,557,593.75 1,553,460.65 254,201.06
insurance
3. Enterprise annual fee 31,494,813.73 17,029,011.00 7,643,746.00 40,880,078.73
Total 38,960,070.73 61,982,180.98 52,690,381.35 48,251,870.36
Other note：
40. Taxes Payable
In RMB
Items Closing balance Opening balance
VAT 4,570,738.90 26,831,710.72
8,823,169.65 19,296,080.94
Enterprise Income tax
Individual Income tax 1,287,176.40 3,947,213.74
City Construction tax 740,690.87 2,081,991.58
Property tax 721,767.22 14,880,121.69
Land use tax 369,208.52 3,836,290.15
Education subjoin 338,413.30 941,347.25
Locality Education subjoin 229,992.23 632,108.09
Other 490,370.26 938,259.93
Total 17,571,527.35 73,385,124.09
Other note
41.Other account payable
In RMB
Items Closing balance Opening balance
Dividend payable 90,000.00
Other account payable 187,505,997.93 203,698,336.85
Total 187,505,997.93 203,788,336.85
（1) Interest payable
(2) Dividends payable
In RMB
Items Closing balance Opening balance
Research Institute of Mechanical 90,000.00
104
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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) 100,222,346.86 100,222,346.86
Deposit 8,278,112.93 8,650,506.77
Provisional account payable 75,167,609.46 92,141,265.66
Related party demolition loan
Other 3,837,928.68 2,684,217.56
Total 187,505,997.93 203,698,336.85
[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 55,100,000.00 30,637,507.55
Rent liabilities due within 1 year 8,256,135.03 12,165,379.31
Total 63,356,135.03 42,802,886.86
44. Other current liabilities
In RMB
Items End of term Beginning of term
Output tax to be transferred 284,064,129.27 266,480,963.69
Maintenance and renovation costs 1,105,000.00 1,105,000.00
Relocation compensation 60,668,100.00
Total 345,837,229.27 267,585,963.69
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items End of term Beginning of term
Mortgage loan 29,700,000.00 9,711,173.86
Guarantee loan 125,000,000.00 150,192,500.00
Total 154,700,000.00 159,903,673.86
105
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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 19,654,863.63 17,206,632.59
Less：Financing charges are not
6,155,922.30 872,609.49
recognized
Total 13,498,941.33 16,334,023.10
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 15,178,960.46 10,774,088.21
Total 15,508,960.46 11,104,088.21
(1) Long-term payable listed by nature of the account
In RMB
Items End of term Beginning of term
Drawing in administrative restructuring 330,000.00 330,000.00
Subtotal 330,000.00 330,000.00
Other note：
(2) Special Payable
In RMB
Items Opening balance Increase Decrease End balance Reason
Compensation for
2,498,212.20 257,606,998.18 254,890,547.93 5,214,662.45
relocation
Funding for
6,234,947.69 1,842,450.00 317,428.00 7,759,969.69
Personnel Training
Resettlement 2,040,928.32 56,600.00 1,984,328.32
Special technical 220,000.00 220,000.00
106
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
transformation and
research funds
Other note 10,774,088.21 259,669,448.18 255,264,575.93 15,178,960.46
Other note：
①The 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 7,953,100.69 in the current period is transferred to other income, and the corresponding part of the fixed
assets of RMB246,937,447.24 in the new factory area put into use in the current period is transferred to deferred
revenue
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
877,381,129.85 250,317,447.24 21,642,112.05 1,106,056,465.04 government
Subsidy subsidies
Total 877,381,129.85 250,317,447.24 21,642,112.05 1,106,056,465.04
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
Increase/decrease this time (+ , - )
Balance Year- Transferre
Issuing of Balance year-end
beginning Bonus shares d from Other Subtotal
new share
reserves
Total of
capital 980,179,980.00 195,907,400.00 -642,980.00 195,264,420.00 1,175,444,400.00
shares
Other note：
107
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
According to the "2022 Annual Profit Distribution Plan" adopted by the resolution of the 2022 Annual General
Meeting of Shareholders, this equity distribution was based on the total share capital of 980,179,980 shares at the
end of 2022, deducting 111,800 treasury shares repurchased as of date of record by Company and 531,180 shares
of share capital were cancelled 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
2 for every 10 shares , A total of RMB 195,907,400 in stock dividends.
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 Decrease in the current Year-end balance
Items
balance current period period
Capital premium 262,539,139.50 3,753,317.90 258,785,821.60
Other capital reserves 132,396,722.50 27,496,532.50 159,893,255.00
Total 394,935,862.00 27,496,532.50 3,753,317.90 418,679,076.60
Other notes, including changes and reason of change:
(1) Other capital reserve increases in the current period include:
In the current period, the Company increased its capital reserve - other capital reserve of 27,496,532.5 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.
(2) The current decrease of share capital premium includes:
In this period, the Company cancelled 111,800 repurchased treasury shares and 531,180 shares of share capital
due to the retirement and resignation of equity incentive objects, reducing the capital stock premium by
3,753,317.90 yuan , and correspondingly reducing the treasury shares by RMB 4,396,297.90.
56. Treasury stock
In RMB
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
period period
Treasury stock 136,466,388.09 4,396,297.90 132,070,090.19
Total 136,466,388.09 0.00 4,396,297.90 132,070,090.19
Other notes, including changes and reason of change:
For details, please refer to Section X （10）55 Capital reserves.
57. Other comprehensive income
In RMB
Occurred current term
Less： Less：
Opening Amount After-tax After-tax Closing
Items Amount Prior Less：
balance incurred attribute to attribute to balance
transferred period Income tax
before the parent minority
into profit included in expenses
income tax company shareholder
and loss in other
108
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
the current composite
period that income
recognied transfer to
into other retained
comprehen income in
sive the current
income in period
prior period
1. Other
comprehen
sive
income that
- - -
2,690,397,6 2,383,042,6
cannot be 361,594,02 0.00 0.00 54,239,103. 307,354,92 0.00
06.30 85.06
4.98 74 1.24
reclassified
in the loss
and gain in
the future
Changes in
fair value
of
- - -
2,690,397,6 2,383,042,6
investment 361,594,02 54,239,103. 307,354,92
06.30 85.06
4.98 74 1.24
s in other
equity
instruments
Total of
other - - -
2,690,397,6 2,383,042,6
comprehen 361,594,02 0.00 0.00 54,239,103. 307,354,92 0.00
06.30 85.06
4.98 74 1.24
sive
income
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
58. Special reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Labor safety expenses 17,841,325.92 4,918,206.68 5,183,956.58 17,575,576.02
Total 17,841,325.92 4,918,206.68 5,183,956.58 17,575,576.02
Other note, including changes and reason of change:
1) The Company withdrew safety production expenses of 5,183,956.58 yuan for the purchase of safety protective
commodity and equipment.
109
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(2) 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 RMB 27,210,294.22.
59. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus
625,178,089.82 625,178,089.82
reserves
Total 625,178,089.82 625,178,089.82
Other note, including changes and reason of change
60. Retained profits
In RMB
Items Amount of this period Amount of last period
Adjust the undistributed profits before
3,756,414,638.24 3,761,583,410.91
and at the end of the period
Add：Net profit belonging to the owner
149,699,746.13 522,396,807.32
of the parent company
Common stock dividend payable 489,768,500.00 527,565,579.99
Other 3,416,345,884.37 3,756,414,638.24
Retained profits at the period end
According to the "2022 Annual Profit Distribution Plan" adopted by the resolution of the 2022 Annual General
Meeting of Shareholders, this equity distribution was based on the total share capital of 980,179,980 shares at the
end of 2022, deducting 111,800 treasury shares repurchased as of date of record by Company and 531,180 shares
of share capital were cancelled 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 for every 10 shares , 2 bonus shares, A total of RMB195,907,400 in stock dividends and RMB 293,861,100 in
cash dividends were distributed.
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0 .
61. Business income and Business cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main Business 2,599,633,551.65 1,969,237,839.67 3,067,134,533.67 2,222,246,894.26
Other 22,611,501.34 10,067,845.72 8,845,799.91 5,808,309.32
Total 2,622,245,052.99 1,979,305,685.39 3,075,980,333.58 2,228,055,203.58
Information concerning obligation performance:
The Company’s sales link has entered into a legal and effective sales contract/order with the customer. The
110
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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 the transaction price allocated to the remaining obligations performance:
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 7,727,490,000.00.
Other note
62.Taxes and surcharges
In RMB
Items Amount of this period Amount of last period
Urban maintenance and construction tax 3,539,897.65 5,146,140.51
Educational surtax 1,619,110.01 2,265,944.35
House tax 1,165,418.72 1,142,229.75
Land royalties -3,048,177.01 -1,339,170.18
vehicle and vessel tax 18,819.28 25,432.83
Stamp tax 2,278,234.98 1,474,867.75
Locality Education surcharge 1,079,406.71 1,510,629.58
Environmental protection tax 8,587.80 2,401.20
Total 6,661,298.14 10,228,475.79
Other note：
63. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 61,206,343.11 36,485,677.51
Transportation 2,609,107.53 1,138,484.93
Travel expenses 11,966,033.13 8,888,561.95
Business reception expenses 10,663,020.87 6,206,490.00
Consulting service fee 23,772,895.90 12,267,342.77
Conferences 1,269,162.10 371,169.20
Three charge 3,224,824.79 4,784,318.15
Advertising fee 1,166,492.51 324,934.24
Office fee 365,010.36 691,321.48
Unit insurance premium 351,536.58 250,605.80
Other 9,615,103.32 6,810,164.97
Total 126,209,530.20 78,219,071.00
Other note：
64. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 141,749,530.35 253,557,627.13
Enterprise requisition and relocation fee 7,953,100.69 8,016,795.00
Asset depreciation and amortizing 26,745,927.80 25,141,560.43
Business reception expenses 2,784,366.63 1,461,204.40
Rental fee, House rental, property
10,502,785.78 15,174,258.65
management, water and power
Travel expenses and overseas travel 3,392,668.37 1,859,818.08
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
expenses
Agency fee 7,660,191.15 4,687,329.96
Materials, low-value consumables
Office expenses 2,730,435.63 2,292,109.56
Repair costs 3,415,949.16 2,937,385.10
Share payable 27,640,314.04 27,983,671.40
Other 34,679,208.13 25,542,488.95
Total 269,254,477.73 368,654,248.66
Other note
65. R&D Expense
In RMB
Items Amount of this period Amount of last period
Labor cost 66,829,622.13 73,148,374.92
Direct materials 89,539,355.22 56,613,592.38
Depreciation expenses 1,294,411.73 2,116,766.61
Test and inspection fee 3,867,908.54 1,454,777.83
Commissioned research & development 2,912,404.64 2,603,124.12
Other 2,874,597.57 3,224,421.13
Total 167,318,299.83 139,161,056.99
Other note
66. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expense 9,900,556.41 13,901,898.42
Less: Income interests 19,561,114.67 9,020,380.48
Exchange gains/losses -231,777.63 -21,050,554.98
Commission 5,469,399.35 1,966,300.16
Other 366,597.09 485,124.77
Total -4,056,339.45 -13,717,612.11
Other note
67. Other income
In RMB
Items Amount of this period Amount of last period
Government subsidies related to assets 19,332,847.21 14,245,334.64
Government subsidies related to income 17,935,236.73 11,075,666.49
Individual tax commission refunds 304,136.79 415,740.28
Total 37,572,220.73 25,736,741.41
68. Investment income
In RMB
Items Amount of this period Amount of last period
Investment income obtained from the
6,305,827.71 25,276,726.80
disposal of trading financial assets
Dividend income from other equity
instrument investments during the 108,750,082.40 95,156,322.10
holding period
Total 115,055,910.11 120,433,048.90
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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 -21,128.30 -426,791.66
Other non-current financial assets 3,888,000.00
Total -21,128.30 3,461,208.34
Other note：
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Losses on bad debt -65,899,840.15 -14,898,317.52
Total -65,899,840.15 -14,898,317.52
Other note
72. Losses from asset impairment
In RMB
Items Amount of this period Amount of last period
II. Loss of inventory value and
impairment of contract performance -86,982.08 -5,052,367.50
costs
XII. Loss of impairment of contract
-4,300,326.44 18,768,663.74
assets
Total -4,387,308.52 13,716,296.24
Other note：
73. Asset disposal income
In RMB
Source Amount of this period Amount of last period
Profits of disposal of fixed assets 4,104.14 -45,800.77
Total 4,104.14 -45,800.77
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
Loss of non-current assets:
2,783,904.55 6,459.28 2,783,904.55
obsolescence gain
Compensation income 19,098,713.47 43,248,533.26 19,098,713.47
No payment required 254,089.78 1,202,147.40 254,089.78
Equity gains 0.00
Other 35,846.21 108,279.86 35,846.21
Total 22,172,554.01 44,565,419.80 22,172,554.01
Government subsidies recorded into current profits and losses：
75. Non-operational expenses
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Donations 605,000.00 515,000.00 605,000.00
Non-current assets scrapping
182,446.69 148,223.86 182,446.69
loss
Compensation expenses 2,006,000.00 3,553,023.12 2,006,000.00
Fine, late payment 10,153.76 21,746.87 10,153.76
Other 88,975.97 127,154.50 88,975.97
Total 2,892,576.42 4,365,148.35 2,892,576.42
Other note：
76. Income tax expenses
(1) Details
In RMB
Items Amount of this period Amount of last period
Income tax of current term 23,413,289.05 55,703,420.35
Deferred income tax 29,964,153.08 38,110,661.41
Total 1,027,570.07 65,447,951.68
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Amount of this period
Total profit 179,156,036.75
Income tax expense at parent company's applicable tax rate 26,873,405.52
Effect of different tax rates applicable to subsidiaries 7,673,193.43
Adjustment for income tax in prior year 0.00
Income not subject to tax -19,843,685.58
Effects of non-deductible costs, expenses and losses 2,494,557.65
Impact of deductible losses on the use of previously
-7,298,114.00
unrecognized deferred income tax assets
The current period does not affect the deferred tax assets
2,319,981.60
recognized deductible temporary differences or deductible loss
Impact of Temporary difference on the use of previously
-4,606,337.32
unrecognized deferred income tax assets
Impact of additional deductions for R & D expenses -6,585,431.23
Income tax expenses 1,027,570.07
Other note：
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
Deposit interest 19,326,707.96 8,484,848.65
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Government subsidies received 10,412,360.48 13,152,574.06
Recovery of operating bank deposits 15,837,529.89 6,581,305.32
Compensation income 116,372.80 10,035,833.79
Recovery of operating bank deposits 13,215,947.13 82,676.43
Rent incomer 216,231.50 57,665.00
Other 1,865,271.79 1,869,625.89
Total 60,990,421.55 40,264,529.14
Note：
(2) Other cash paid related to operation
In RMB
Items Amount of this period Amount of last period
Transportation 3,921,756.80 1,459,697.66
Travel expenses 19,532,550.73 13,484,827.09
Business trips 13,702,248.87 7,919,566.45
Repairing cost 3,600,562.74 675,311.13
Property management and civil services 22,854,101.61 17,577,949.78
Deposit for bidding and others 36,793,767.69 19,454,848.00
Office expenses 1,935,271.48 2,716,373.67
Conferences 1,512,505.70 439,793.46
Consulting service fee 20,682,286.06 5,817,084.52
Transportation and vehicles 1,905,068.60 1,522,498.91
Other 5,837,665.36 19,365,991.81
Total 132,277,785.64 90,433,942.48
(3).Other investment-related cash received
In RMB
Items Amount of this period Amount of last period
Repurchasing of trusteeship 878,002,406.26 1,370,000,000.00
Receipt of levy and relocation
257,606,998.18
compensation
Total 1,135,609,404.44 1,370,000,000.00
（4）Other cash paid for investment activities
In RMB
Items Amount of this period Amount of last period
Purchasing of financial products 673,000,000.00 912,000,000.00
Total 673,000,000.00 912,000,000.00
（5）Other cash paid for Financing activities
（6）Other cash paid relevant to financing activities
In RMB
Items Amount of this period Amount of last period
Return the related party's capital
121,791,800.00
occupation and interest
Lease Liability Payments 5,874,483.57 1,202,769.96
Total 5,874,483.57 122,994,569.96
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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 178,128,466.68 388,535,386.04
Add: Impairment loss provision of assets 70,287,148.67 1,182,021.28
Depreciation of fixed assets, oil and gas assets and
67,983,326.81 61,269,369.18
consumable biological assets
Depreciation of Use right assets 6,703,937.93 3,994,249.19
Amortization of intangible assets 6,119,546.05 4,566,749.10
Amortization of Long-term deferred expenses 35,412.84
Loss on disposal of fixed assets, intangible assets and other
-4,104.14 45,800.77
long-term deferred assets
Fixed assets scrap loss -2,601,457.86 141,764.58
Loss on fair value changes 21,128.30 -3,461,208.34
Financial cost 10,105,664.51 -2,994,327.06
Loss on investment -115,055,910.11 -120,433,048.90
Decrease of deferred income tax assets -22,330,699.70 3,907,367.92
Increased of deferred income tax liabilities -50,549,867.32 88,087,566.74
Decrease of inventories -142,687,810.46 644,637,223.04
Decease of operating receivables -822,962,254.16 284,265,347.33
Increased of operating Payable 1,124,742,866.70 -1,216,355,985.78
Other 27,230,782.60 27,489,548.20
Net cash flows arising from operating activities 335,166,177.34 164,877,823.29
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 2,268,885,746.19 1,540,418,173.57
Less: Beginning balance of cash equivalents 1,805,028,401.76 1,467,538,968.07
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 463,857,344.43 72,879,205.50
(2) Net Cash paid of obtaining the subsidiary
Amount
Cash or cash equivalents paid by the merger of the enterprise in
48,060,000.00
the current period
Including：
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Western Power Company 48,060,000.00
Cash and cash equivalents held by the Company on the
5,026,949.63
purchase days
Including：
Western Power Company 5,026,949.63
Net cash paid by the subsidiary company 43,033,050.37
(3) Net Cash receive of disposal of the subsidiary
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
2,268,885,746.19 1,805,028,401.76
I.Cash
27,237.07 107,551.80
Of which: Cash in stock
Bank savings could be used at any time 1,948,852,285.29 1,804,892,189.83
Other monetary capital could be used at
320,006,223.83 28,660.13
any time
III. Balance of cash and cash equivalents
2,268,885,746.19 1,805,028,401.76
at the period end
Including：The use of restricted cash
and cash equivalents by the parent
company or subsidiaries within the 107,694,119.90 149,952,386.14
Group
Other note：
80. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.
81. Assets with limitation on ownership or using rights
In RMB
Items Closing book value Causation o limitation
Used as security for issuing of
Monetary capital 107,694,119.90
acceptance bill and bill of guarantees
Used as security for issuing of
Notes receivable 23,811,059.87
acceptance drafts and bill
Used as security for issuing of
Financing of receivable 173,017,714.97
acceptance drafts and bill
Fixed assets 88,896,960.49 Collateral for obtaining bank loans
Intangible assets 23,168,681.57 Collateral for obtaining bank loans
Total 416,588,536.80
Other note：
82. Monetary items in foreign currencies
(1) Foreign currency monetary items
In RMB
Translated to RMB at end of
Items Balance at end of period Exchange rate
period
117
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Monetary capital 395,720,279.33
Incl：USD 54,543,130.59 7.2258 394,117,753.02
Euro 203,103.32 7.8771 1,599,865.16
HKD 0.00 0.00
Yen 53,123.12 0.0501 2,661.15
Account receivable 144,343,851.50
Incl：USD 15,195,520.90 7.2258 109,799,794.91
Euro 4,352,997.76 7.8771 34,288,998.66
HKD
SGD 47,726.12 5.3442 255,057.93
Long-term loans
Incl：USD
Euro
HKD
Contract assets 1,229,300.23
Incl: Euro 156,060.00 7.8771 1,229,300.23
Account payable 1,424,711.00
Incl：USD 49,800.00 7.2258 359,844.84
Euro 135,185.05 7.8771 1,064,866.16
Other note：
(2) Note to overseas operating entities, including important overseas operating entities, which should be
disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In
case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
83. Arbitrage
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information:
84. Government subsidy
(1) Government subsidies related to assets
（2）Government subsidy return
□ Applicable √ Not applicable
Other note：
(1) Detail
1) Asset-related government subsidies
Current
Current
Beginning Ending amortization
Items subsidy Current amortization
Deferred income Deferred income Item
increase
presentation
elocation and relocation compensation
747,513,662.87 246,937,447.24 15,001,309.47 979,449,800.64 Other income
(Shiqiao Road factory area)
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Relocation and relocation compensation
118,226,114.41 4,331,537.74 113,894,576.67 Other income
(Hangfa factory area)
Financial subsidy for industrial projects 115,120.00 115,120.00 Other income
Subsidy for casting and forging projects 115,120.00 115,120.00 Other income
Financial subsidy for recycling
45,640.00 45,640.00 Other income
economy
Subtotal 866,015,657.28 246,937,447.24 19,332,847.21 1,093,620,257.31
2) Income-related Government grants used to compensate for related costs or losses incurred by the company
Items At the beginning of New subsidies This period of End-of-term Amortize the
the deferred income for this period amortization deferred income items in this
period
Supported by Zhejiang Gas Turbine
Machinery Manufacturing Innovation 8,818,852.37 2,231,589.57 6,587,262.80 Other income
Center
Zhejiang Province science and
2,546,620.20 3,380,000.00 77,675.27 5,848,944.93 Other income
technology plan project subsidies
Subtotal 11,365,472.57 3,380,000.00 2,309,264.84 12,436,207.73
3) Income-related government subsidies used for compensation of relevant costs and expenses or losses incurred
in the Company
Items Amount Item presentation Amount included in current
profit and loss
Relocation and relocation compensation (Shiqiao
7,953,100.69 Other income 7,953,100.69
Road factory area)
Incentive funds for the first (set) product 1,032,200.00 Other income 1,032,200.00
Zhejiang JM integrated development special fund 3,360,000.00 Other income 3,360,000.00
PROPERTY tax reduction and exemption
1,065,620.40 Other income 1,065,620.40
concessions
Subsidies for high-tech enterprises 800,000.00 Other income 800,000.00
Increase incentive funds for manufacturing
545,000.00 Other income 545,000.00
enterprises
Special fund for JM science and technology
150,000.00 Other income 150,000.00
collaborative innovation
Performance award for special experts 105,000.00 Other income 105,000.00
Xiaoshan District technical standard subsidy 100,000.00 Other income 100,000.00
Other 515,050.80 Other income 515,050.80
Subtotal 15,625,971.89 15,625,971.89
(2) The current amount of government subsidies included into the current profits and loss is RMB37,268,083.94.
85.Other note
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
place of Proportion of
Name gaining the the stock Purchase date basis of during the during the
gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock right
to period-end to period-end
119
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Pengzhou Equity
Western Blue
March 7, 102,670,000. Transfer and March 31, Obtain 10,339,024.4
Power 56.64% -1,130,894.28
2023 00 increase 2023 control 1
Technology
Co., Ltd. capital
Other note：
(2) Combined cost and goodwill
In RMB
Combined cost Western Power Company
--Cash 102,670,000.00
-- Fair value of non-cash assets
-- Fair value of debt issued or assumed
-- Fair value of equity securities issued
-- Fair value of contingent consideration
-- Fair value of equity held before the acquisition date at the
acquisition date
--Other
Total merger cost 102,670,000.00
Less: fair value share of identifiable net assets obtained 94,252,586.58
Goodwill/merger cost is less than the amount of fair value
8,417,413.42
share of identifiable net assets obtained
Method for determining the fair value of the merger cost, and explanation of contingent consideration and its
changes:
Main reasons for the formation of large goodwill:
Other note：
The Company's subsidiary, Ranchuang Company, invested RMB 102,670,000.00, and acquired 81,000,000 shares
of Pengzhou Western Power Blue Technology Co., Ltd. (hereinafter referred to as "Western Power Company")
through equity transfer and capital increase, accounting for 56.64% of the total share capital. As of March 31,
2023, according to the asset appraisal report (BFYSPB Zi [2022] No.1-739), the fair value share of the identifiable
net assets owned by the owner of the parent company of Western Power Company was RMB 94,252,586.58, and
formed a goodwill of RMB 8,417,413.42 between the capital contribution and its difference.
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Western Power Company
Fair value of the purchase date Book Vulue of the purchase date
Assets：
Current assets 103,183,025.46 103,183,025.46
Non Current assets 62,684,488.43 47,570,314.05
Liabilities：
Current Liabilities 17,692,428.55 17,692,428.55
Non Current Liabilities 3,778,543.60
Net assets 144,396,541.74 133,060,910.96
Less： Minority equity 50,143,955.16 45,229,206.15
Net assets obtained 94,252,586.58 87,831,704.81
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
The recognition method of the fair value of identifiable assets and liabilities
The fair values of identifiable assets and liabilities are assessed and determined by the Company's management
according to the asset assessment report (BFYSPB Zi [2022] No.1-739).
Contingent liability of acquiree undertaken by business merger
Other note：
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
(6) Other note:
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
(2) Combination cost
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
6.Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Share proportion %
Name of the Main business Business
Reg. Add. Way of obtain
subsidiaries location property Direct Indire
ct
Auxiliary Hangzhou Hangzhou
Zhejiang Zhejiang Manufacturing 87.53% Incorporation
Machine Co.
Packaged Hangzhou Hangzhou
Technologies Commerce 75.86% Incorporation
Co.
Zhejiang Zhejiang
Hangzhou Hangzhou
Machinery Co. Manufacturing 52.00% Incorporation
Zhejiang Zhejiang
Hangzhou Hangzhou
Turbine Co. Commerce 100.00% Incorporation
Zhejiang Zhejiang
Zhongneng Hangzhou Hangzhou Manufacturin
46.89% Incorporation
Company g
Zhejiang Zhejiang
Casing Hangzhou Hangzhou Manufacturin
38.03% Incorporation
Company g
Zhejiang Zhejiang
New Energy Hangzhou Hangzhou Construction Business consolidation
100.00%
Company business 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:
122
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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 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
Gains/loss of the Dividend announced in Balance of equity of
Name of the Share portion of minor
period attributable to the period to minor minor shareholders at
subsidiaries shareholders
minor shareholders shareholders end of period
Auxiliary Machine Co. 12.47% 2,495,292.40 4,988,000.00 37,127,054.70
Packaged Technologies
24.14% 3,064,862.96 4,925,580.00 25,654,669.91
Co.
Machinery Co. 48.00% 24,828,810.74 28,800,000.00 107,539,220.66
Zhongneng
Company 53.11% -2,193,459.23 157,642,994.49
Casing Company 61.97% 4,220,456.48 200,549,084.43
Sales Company 70.00% 1,493,012.85 5,250,000.00 35,874,568.88
China Mechanical
45.00% 43,108.83 1,337,857.42
Institute Company
Holding proportion of minority shareholder in subsidiary different from voting proportion:
(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 618,27 82,000 700,27 388,64 391,40 662,28 86,972 749,26 417,63 420,39
ary 2,765, 2,761,
9,290. ,034.5 9,324. 3,014. 8,450. 8,146. ,351.1 0,497. 8,359. 9,987.
Machi 436.68 627.48
ne Co. 18 7 75 08 76 11 5 26 89 37
Packag
ed 277,57 286,11 178,96 179,86 289,27 298,40 183,55 184,44
8,536, 892,83 9,134, 892,83
Techn 6,990. 3,032. 7,679. 0,516. 2,485. 6,581. 4,800. 7,638.
ologies 041.78 7.72 096.47 7.72
83 61 24 96 34 81 43 15
Co.
Machi 325,40 26,626 352,03 121,84 127,99 341,33 27,559 368,89 132,13 136,58
6,149, 4,453,
nery 3,839. ,493.4 0,332. 1,043. 0,289. 8,629. ,634.5 8,264. 1,820. 4,910.
Co. 246.38 089.98
56 1 97 51 89 47 7 04 03 01
Zhon 1,624, 249,13 1,873, 1,335, 241,49 1,576, 1,592, 256,91 1,849, 1,277, 271,09 1,548,
gneng 092,94 2,874. 225,81 175,06 1,485. 666,54 257,46 6,512. 173,97 138,14 1,873. 230,01
123
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Comp 5.13 68 9.81 0.87 99 6.86 5.58 99 8.57 3.86 73 7.59
any
Casing 564,47 154,69 719,16 367,50 40,175 407,68 488,55 161,44 649,99 324,87 20,186 345,06
Compa 2,271. 7,113. 9,385. 7,300. ,198.3 2,498. 0,333. 3,351. 3,684. 3,817. ,372.2 0,189.
ny 82 98 80 59 7 96 02 10 12 53 3 76
Sales 46,921 40,457 87,378 26,916 36,129 83,930 39,162 123,09 59,249 66,476
9,212, 7,226,
Compa ,062.4 ,332.3 ,394.7 ,165.5 ,010.6 ,156.8 ,681.5 2,838. ,528.0 ,329.7
ny 845.10 801.73
2 7 9 8 8 4 2 36 2 5
China
Mecha
nical
2,972, 2,972, - - 3,101, 3,102, 224,84 224,84
Institut 0.00 0.00 827.75
e 308.95 308.95 707.55 707.55 236.65 064.40 5.30 5.30
Compa
ny
In RMB
Amount of current period Amount of previous period
Subsidiarie Cash flow Cash flow
s Name Total Misc for Total Misc for
Turnover Net profit Turnover Net profit
Gains business Gains business
activities activities
Auxiliary
314,224,57 20,010,364. 20,010,364. 2,418,069.6 336,182,73 34,709,082. 34,709,082. 70,186,293.
Machine
Co. 4.12 10 10 5 7.38 97 97 32
Packaged -
Technologi 154,694,78 12,693,571. 12,693,571. 112,095,73 8,309,079.4 8,309,079.4 61,873,587.
2,122,567.5
es Co. 9.16 99 99 9.61 1 1 40
6
-
Machinery 195,114,25 51,726,689. 51,726,689. 140,387,28 42,417,894. 42,417,894. 51,444,426.
10,413,931.
Co. 6.70 05 05 5.62 03 03 73
64
Zhongneng - - - -
641,833,93 638,303,05 13,886,432. 14,513,350.
Company 4,129,894.4 4,129,894.4 91,477,289. 27,762,299.
3.26 0.64 71 56
7 7 86 67
-
Casing 227,460,96 6,924,389.5 6,924,389.5 189,427,30 6,513,497.0 6,513,497.0
968,806.49 28,808,688.
Company 5.32 7 7 5.72 0 0
90
- -
Sales 34,862,889. 2,132,875.5 2,132,875.5 84,196,003. 4,650,020.2 4,650,020.2
21,994,970. 17,172,157.
Company 07 0 0 00 3 3
20 10
China
Mechanical - 1,373,226.0
887,100.00 95,797.40 95,797.40 18,044.65 18,044.65 370,800.98
Institute 597,232.70 0
Company
Other note：
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Other note：
124
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
（2）Major joint ventures and associates
(3) Main financial information of significant associated enterprise
(4) Summary financial information of insignificant joint venture or associated enterprise
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
(6) The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statements
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.
125
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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 June 30,2023, the Company has a
characteristic of specific credit risk concentration. 21.53% (December 31,2022: 39.04%) of the Company's
accounts receivable comes from the top five customers. The Company does not hold any collateral or other credit
enhancement for the balance of accounts receivable.
The maximum credit risk exposure the company is subject to is the book value of each financial asset in the
balance sheet.
(II) Liquidation risks
Liquidation risks are the possibilities of short in cash at fulfilling liabilities of payment or settlement for financial
assets. They may be caused by failing to cash financial assets at fair value instantly; debtors’ failing of paying
debts due; debts due before schedule; or failing of generating expected cash flow.
To handle these risks, the Company adopted multiple measures such as note clearance and bank loans. Long-
term and short-term financing approaches were used to maintain balance between constancy and flexibility. The
Company has obtained credit from multiple banks to satisfy the needs of business operation and capital output.
Categorizing of financial liabilities on remained period to due
Year-end balance m
Items Book value Contract amount not within 1 year 1-3 years Over 3 years
discounted
Bank loans 605,305,710.62 634,132,801.35 464,718,988.56 41,832,562.79 127581250
Notes payable 857,066,160.56 857,066,160.56 857,066,160.56
Account payable 1,327,342,216.64 1,327,342,216.64 1,327,342,216.64
Other payable 187,505,997.93 187,505,997.93 187,505,997.93
Lease
21,755,076.36 22,860,423.41
liabilities[Note] 8,733,032.90 11,563,695.26 2,563,695.26
Subtotal 2,998,975,162.11 3,028,907,599.89 2,845,366,396.59 53,396,258.05 130,144,945.26
126
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(Continued)
Items Year-beginning balance
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 51406712.33
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
28,499,40 13,119,17 14,501,19 2,705,43
Lease liabilities 30,325,807.64
2.41 5.05 3.61 8.98
Subtotal 2,325,384,223.58 2,350,799,057.54 2,162,903,608.21 133,783,298.02 54,112,151.31
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 June 30, 2023, the company's bank borrowings with floating interest rate were RMB 155,000,000.00
(December 31, 2022: RMB160,000,000.00). Under the assumption that other variables remain unchanged,
assuming that the interest rate changes by 50 benchmark points, there will be no significant impact on the
company's total profits and shareholders' equity.
2. Foreign currency risks
Foreign currency risks (exchange rate risks) are those caused by change of fair value or expectable cash flow
of financial instruments due to fluctuation of exchange rates. These risks are mainly related to foreign currency
assets and liabilities. The Company operates in mainland China and mostly uses RMB as standard currency,
therefore no major risks regarding exchange rates. For details of foreign currency assets and liabilities, please go
to the descriptions in the notes to the consolidated financial statements.
Details of the company's foreign currency monetary assets and liabilities at the end of the period are
described in note X (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 items at measurement items at measurement items at Total
level 1 level 2 level 3
-- -- -- --
I. Consistent fair value
1,977,608.88 0.00 405,534,773.22 407,512,382.10
measurement
127
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Financial assets
classified as fair value 1,977,608.88 0.00 405,534,773.22 407,512,382.10
through profit or loss
Financing
400,000,000.00 400,000,000.00
product
Equity instrument
1,977,608.88 5,534,773.22 7,512,382.10
nvestment
2.Financing receivable 1,001,821,890.55 1,001,821,890.55
3. Other equipment
3,194,533,669.50 3,194,533,669.50
instrument investment
Total liabilities of
consistent fair value 3,196,511,278.38 0.00 1,407,356,663.77 4,603,867,942.15
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 informatio
n on important parameters
4. Continuous and non-continuous third-
level fair value measurement items, using valuation techniques and qualitative and quantitative informatio
n on important 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 (%)
(%)
128
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Turbine Holdings Hangzhou China Manufacturing 800 million 58.68% 58.68%
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 Turbine Holdings
Hangzhou Steam Turbine Compressor Co., Ltd. A subsidiary enterprise of Hangzhou Turbine Holdings
Hangzhou Xiangjiang Technology Co., Ltd. A subsidiary enterprise of Hangzhou 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., LTD Affiliated enterprise of Hangzhou Oxygen
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
Other note
5.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
Content of related Amount of current Approved trading Over the trading Amount of last
Related parties transaction limit or not? period
period quota
Hangzhou Oxygen 1,800,000.00
Turbine Machinery Parts 876,106.19 No 1,122,123.85
Co., Ltd
Turbine Holdings Finance service 190,000.00 No 27,015.42
Greenesol 1,000,000.00
power systems Technical service 655,488.39 No
PVT Ltd.
Subtotal 1,531,594.58 2,990,000.00 1,149,139.27
Related transactions regarding sales of goods or providing of services
In RMB
129
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Subjects of the related
Related parties Current term Same period of last term
transactions
Hangzhou Oxygen Table cooler, etc 8,849,557.52
Greenesol
Parts 2,355,131.88 702,102.87
power systems PVT Ltd.
Hangzhou Oxyen Expander
Parts 415,929.20 99,741.55
Machine Co., Ltd.
Hangzhou Oxyen Cryogenic
Transport service 18,348.62
Container Co., Ltd
Subtotal 11,638,967.22 801,844.42
(2) Related trusteeship/contract
(3) Information of related lease
- 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
Hangzh
ou
Xiangji House
ang and 1,145,4 1,145,4 169,447 118,032
Technol Buildin 95.20 95.20 .18 .04
ogy g
Co.,
Ltd.
（4）Related-party guarantee
(5) Inter-bank lending of capital of related parties
（6）Related party asset transfer and debt restructuring
（7） Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 11,278,220.91 11,563,132.00
(8) Other related transactions
130
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
6. Receivables and payables of related parties
（1）Receivables
In RMB
End of term Beginning of term
Name Related party
Book balance Bad debt provision Book balance Bad debt provision
Account Greenesol power
14,774,402.78 14,738,520.13 14,774,392.59 14,738,519.62
receivable systems PVT Ltd.
Hangzhou Oxyen
Turbine Machinery 6,251,500.00 6,251,500.00 7,847,500.00 7,847,500.00
Co., Ltd.
Hangzhou Oxyen
Cryogenic 11,600.00 580.00 46,600.00 2,330.00
Container Co., Ltd
Hangzhou Steam
Turbine
0.00 59,000.00 59,000.00
Compressor Co.,
Ltd’
Subtotal 21,037,502.78 20,990,600.13 22,727,492.59 22,647,349.62
Financing Hangzhou Oxygen
7,050,000.00
receivable Company
Subtotal 0.00 0.00 7,050,000.00 0.00
Hangzhou
Xiangjiang
Other receivable 601,384.98 180,415.49 601,384.98 180,415.49
Technology Co.,
Ltd.
Subtotal 601,384.98 180,415.49 601,384.98 180,415.49
Hangzhou Oxyen
Constrict assets Turbine Machinery 489,000.00 48,900.00 489,000.00 48,900.00
Co., Ltd.
Hangzhou Oxygen
4,323,000.00 216,150.00 2,823,000.00 141,150.00
Company
Hangzhou Oxyen
Expander Machine 47,000.00 2,350.00
Co., Ltd.
Greenesol power
99,665.17 4,983.26
systems PVT Ltd.
Subtotal 4,958,665.17 272,383.26 3,312,000.00 190,050.00
（2）Payables
In RMB
Name Related party Amount at year Amount at year beginning
Greenesol power
Account payable 1,823,504.04 2,625,853.11
systems PVT Ltd.
Hangzhou Oxyen Tooling
128,316.00
Pump Co., Ltd
Hangzhou Oxyen Turbine
1,096,194.68 557,522.07
Machinery Co., Ltd.
Subtotal 2,919,698.72 3,311,691.18
Constrict liabilities Turbine Holdings 13,274,336.28 16,378,000.00
Hangzhou Oxyen Expander
676,991.15
Machine Co., Ltd.
Hangzhou Oxyen Company 0.00 4,000,000.00
Greenesol
643,818.01 640,228.64
power systems PVT Ltd.
131
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Hangzhou Oxyen Expander
0.00 141,000.00
Machine Co., Ltd.
Subtotal 14,595,145.44 21,159,228.64
Other payable Turbine Holdings 211,830.51 15,211,830.51
Subtotal 211,830.51 15,211,830.51
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
√Applicable □ Not applicable
Other note:
（1）Detail In RMB
Total amount of various equity instruments granted by the company during the
N/A
current period
Total amount of various equity instruments that the company exercises during the
N/A
period
Total amount of various equity instruments that have expired in the current period N/A
The scope of executive price of the company’s outstanding share options at the end
[Note]
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 lifting period of restricted shares is from the first trading
First grant of restricted
HKD 6.825 per share day after 36 months after the registration of restricted shares granted for the first
stock in 2021
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 is from the first trading day after 24 months
from the date of registration of some restricted shares granted accordingly 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 lifting period of restricted
Partial grant of 2021 shares is from the first trading day after 36 months after the registration of some
restricted stock HKD 6.825 per share restricted shares granted accordingly to the last trading day within 48 months
reserved 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 accordingly to the last
trading day within 60 months after the registration of some restricted shares
granted accordingly
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 98,896,129.91
132
Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
accumulated amount of capital reserve
Total amount of fees confirmed by equity-settled share-based
27,496,532.50
payments in the current period
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
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 June 30, 2023 is as follows:
Name Bank Currency Amount Way of guarantee
The Company China CITIC Bank Credit
Swedish krona 225,925,500.00
Hangzhou Branch
The Company ICBC Banshan Sub- Credit
Euro 765,000.00
Branch
The Company ICBC Banshan Sub- Credit
Swedish krona 67,785,750.00
Branch
Bank of China Zhejiang Credit
The Company Swedish krona 360,582,750.00
Branch
China CITIC Bank
New Energy Company Euro 24,735,000.00 The Company Guarantee
Hangzhou Branch
ICBC Banshan Sub-
New Energy Company Euro 24,735,000.00 Credit
Branch
Hangzhou Bank High - Zhongneng Company
Hangfa Comapny RMB 12,000,000.00
tech Sub-Branch Guarantee
（2）With regard to bank letters of Guarantee opened by the Company and its subsidiaries, the outstanding
balance till June 30, 2023 is as follows:
Name Bank Currency Amount Way of guarantee
The Company Bank of China Zhejiang Credit
USD 6,093,200.00
Branch
The Company Bank of China Zhejiang Credit
RMB 59,920,750.00
Branch
The Company China CITIC Bank Credit
USD 299,670.00
Hangzhou Branch
The Company China CITIC Bank Credit
RMB 24,150,951.38
Hangzhou Branch
The Company ICBC Hangzhou Branch RMB 2,337,931.00 Credit
The Company ICBC Banshan Sub- Credit
RMB 305,846,779.26
Branch
China Merchants Bank Credit
The Company RMB 3,800,000.00
Hangzhou Branch
Auxiliary Company ICBC Banshan Sub- Credit
RMB 22,846,480.00
Branch
Guoneng Company ICBC Banshan Sub- Credit
Euro 1,443,017.07
Branch
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
Guoneng Company ICBC Banshan Sub- Credit
USD 2,007,700.00
Branch
Guoneng Company ICBC Banshan Sub-
RMB 1,526,279.00 Credit
Branch
Guoneng Company Bank of China Bank Auxiliary Company
RMB 3,067,285.00
Tangqi Sub-Branch guarantee
Machinery Co. ICBC Banshan Sub-
RMB 12,407,500.00 Credit
Branch
Chengdu Bank Pengzhou
Western Power Company RMB 437,000.00 Pledge
Sub-Branch
Turbine Co. China CITIC Bank
RMB 12,389,561.20 Credit
Hangzhou Branch
Hangzhou Bank High -
New Energy Company RMB 88,004,255.13 The Company Guarantee
tech Sub-Branch
China CITIC Bank
New Energy Company RMB 112,451,000.00 The Company Guarantee
Hangzhou Branch
China CITIC Bank
New Energy Company RMB 272,869,900.81 Credit
Hangzhou Branch
Zhongneng Company China Bank Hangzhou
Qiantang New area RMB 46,837,110.00 Credit
Branch
Zhongneng Company China Bank Hangzhou
Qiantang New area Sub- USD 2,587,180.00 Credit
Branch
Hangzhou Bank High - Zhongneng Company
Hangfa Company RMB 1,919,252.00
tech Sub-Branch Guarantee
Ningbo Bank Hangzhou Zhongneng Company
Hangfa Company RMB 11,193,158.00
Chengdong Sub-Branch Guarantee
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2. Contingency
(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XV. Events after balance sheet date
1. Significant events had not adjusted
2. Profit distribution
3. Sales return
4. Notes of other significant events
XVI. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
（2）Prospective application
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
The Company's main business is to produce and sell industrial steam turbines, 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) of the Financial Statements.
(2) The financial information of reportable segment
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
End of term Beginning of term
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proporti Proporti Proporti Proporti
Amount Amount value Amount Amount value
on % on % on % on %
Includin
g
Accrual
of bad
debt 2,274,24 732,930, 1,541,31 2,132,02 693,967, 1,438,06
100.00% 32.23% 100.00% 32.55%
provisio 4,122.09 513.83 3,608.26 8,307.54 447.49 0,860.05
n by
portfolio
Includin
g：
2,274,24 732,930, 1,541,31 2,132,02 693,967, 1,438,06
Total 100.00% 32.23% 100.00% 32.55%
4,122.09 513.83 3,608.26 8,307.54 447.49 0,860.05
Accrual of bad debt provision by portfolio：732,930,513.83
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Portfolio 1 2,274,244,122.09 732,930,513.83 32.23%
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） 652,839,940.24
1-2 years 528,537,276.98
2-3 years 433,789,152.58
Over 3 years 659,077,752.29
3-4 years 217,719,823.19
4-5 years 92,864,406.70
Over 5 years 348,493,522.40
Total 2,274,244,122.09
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(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
Portfolio 1 693,967,447.49 38,963,066.34 732,930,513.83
Total 693,967,447.49 38,963,066.34 732,930,513.83
(3) The actual write-off accounts receivable
（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Client 1 338,236,826.85 14.87% 184,764,960.02
Client 2 114,782,518.74 5.05% 40,333,177.42
Client 3 99,184,301.88 4.36% 5,287,800.00
Client 4 80,644,316.98 3.55% 6,611,620.00
Client 5 45,384,000.00 2.00% 2,269,200.00
Total 678,231,964.45 29.83%
（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
Dividend receivable 108,750,082.40 110,000.00
Other receivable 7,305,795.83 8,287,079.99
Total 116,055,878.23 8,397,079.99
（1）Interest receivable
1）Classification of interest receivable
2）Significant overdue interest
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
1）Dividend receivable
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
In RMB
Items End of term Beginning of term
Hangzhou Bank 108,750,082.40 110,000.00
Total 108,750,082.40 110,000.00
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 2,926,822.00 11,450,773.84
Provisional payment receivable 9,479,149.15 598,767.58
Petty cash 70,000.00
Other 1,672,805.50
Total 12,475,971.15 13,722,346.92
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
282,135.61 39,942.90 5,113,188.42 5,435,266.93
1, 2023
Balance as at January
1, 2023 in current
——Transfer to stage
-3,257,918.80 3,257,918.80 0.00 0.00
II
——Transfer to stage
0.00 -126,076.32 126,076.32 0.00
III
Provision in the current
3,014,243.60 -2,520,202.00 -759,133.21 -265,091.61
period
Balance as at June 30,
38,460.41 651,583.38 4,480,131.53 5,170,175.32
2023
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） 1,174,329.36
1-2 years 6,515,837.59
2-3 years 378,229.02
Over 3 years 4,407,575.18
3-4 years 102,189.34
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
4-5 years 185.00
Over 5 years 4,305,200.84
Total 12,475,971.15
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 5,435,266.93 -265,091.61 5,170,175.32
by portfolio
Total 5,435,266.93 -265,091.61 5,170,175.32
(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
Closing balance
total year end
Name Nature Closing balance Aging of bad debt
balance of the
provision
accounts receivable
Shanghai Customs Waigaoqiao
Deposit 3,710,320.94 Over 5 years 29.74% 3,710,320.94
Office
2-3 years，4-5
Hangzhou Ganghua Gas Co., Ltd. Deposit 900,000.00 7.21% 320,000.00
years
Ningxia Baofeng Energy Group
Deposit 500,000.00 1-2 years 4.01% 50,000.00
Co., Ltd.
Taizhou Jiaojiang Thermal Power
Deposit 499,000.00 1-2 years 4.00% 49,900.00
Co., Ltd
Non-tax income settlement special
Current
account of Hangzhou Yuhang 472,553.00 1-2 years 3.79% 47,255.30
account
District Finance Bureau
Total 6,081,873.94 48.75% 4,177,476.24
(6) Accounts receivable involved with government subsidies
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
532,728,455.35 532,728,455.35 400,480,973.25 400,480,973.25
subsidiaries
Total 532,728,455.35 532,728,455.35 400,480,973.25 400,480,973.25
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(1)Investments in subsidiaries
In RMB
Increase /decrease Closing
Withdrawn balance of
Investees Opening balance Decreased Closing balance
Add investment impairment Other impairment
investment provision
provision
Hangzhou
Auxiliary
46,286,513.41 46,286,513.41
Machine
Co.
Zhejiang
Turbine
40,000,389.56 40,000,389.56
Packaged
Co.
Machinery
7,968,000.00 7,968,000.00
Company
Turbine
20,793,692.97 241,111.92 21,034,804.89
Company
Zhongneng
27,644,475.06 27,644,475.06
Company
Casting
11,220,000.00 11,220,000.00
Company
New
Energy 205,642,806.18 2,006,370.18 207,649,176.36
Company
Sales
13,721,544.50 13,721,544.50
Company
China
Mechanical
1,533,768.30 1,533,768.30
Institute
Company
Ranchuang
25,669,783.27 130,000,000.00 155,669,783.27
Company
Total 400,480,973.25 132,247,482.10 532,728,455.35
（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 1,345,647,975.31 1,119,101,129.45 2,005,447,334.39 1,522,270,649.74
Other 8,918,831.82 3,388,420.16 7,750,819.51 4,486,969.18
Total 1,354,566,807.13 1,122,489,549.61 2,013,198,153.90 1,526,757,618.92
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
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
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:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations of the
contracts which have been signed, but not yet performed or not yet completed is RMB3,917,750,000.00.
Other note：
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment income by
83,936,420.00 90,773,630.00
Cost method
Long-term equity investment income by
0.00
equity method
Disposition of the investment income
generated by the long-term equity 0.00
investments
Investment income obtained from the
4,121,333.26 24,344,818.92
disposal of trading financial assets
Dividend income from other equity
instrument investments during the 108,750,082.40 95,156,322.10
holding period
Total 196,807,835.66 210,274,771.02
6.Other
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
2,605,562.00
for which assets impairment provision is made)
Tax refund, deduction and exemption that is examined and
approved by authority exceeding or has no official approval 0.00
document.
Governmental Subsidy accounted as current gain/loss, except for
those subsidies at with amount or quantity fixed by the national
29,314,983.25
government and closely related to the Company’s business
operation.
Capital occupation charges on non-financial enterprises that are
0.00
recorded into current gains and losses
Gains due to that the investment costs for the Company to obtain
subsidiaries, associates and joint ventures are lower than the
0.00
enjoyable fair value of the identifiable net assets of the investees
when making the investments
Gain/loss on non-monetary asset swap 0.00
Gain/loss on entrusting others with investments or asset
0.00
management
Asset impairment provisions due acts of God such as natural
0.00
disasters
Gains/losses of debt restructure 0.00
Reorganization expenses, such as expenditure for allocation of 0.00
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
employees and integration fee
Gains/losses exceeding the fair value arising from transactions
0.00
with obviously unfair prices
Net gain and loss of the subsidiary under the common control
and produced from enterprise consolidation from the beginning 0.00
of the period to the consolidation date
Gain and loss arising from contingent matters irrelevant with the
0.00
Company’s normal operation business
Gain and loss from change of the fair value arising from
transactional monetary assets, transactional financial liabilities as
held as well as the investment income arising from disposal of
the transactional monetary assets, transactional financial 6,284,699.41
liabilities and financial assets available for sale excluding the
effective hedging transaction in connection with the Company’s
normal business
Reverse of the provision for impairment of accounts receivable
0.00
undergoing impairment test individually
Gain/loss from external entrusted loan 0.00
Gain and loss arising from change in the fair value of the
investment based real estate measure afterwards by means of fair 0.00
value model
Influence upon the current gains and losses from the once-and –
for –all adjustment over the current gains and losses according to 0.00
the taxation and accounting laws and regulations
Income from custodian charge obtained from entrusted operation 0.00
Operating income and expenses other than the aforesaid items 16,982,656.52
Less: Influenced amount of income tax 6,567,614.24
Amount of influence of minority interests（After tax） 4,036,187.78
Total 44,584,099.16 --
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 returns
Profit of report period Basic earnings per Diluted earnings per
equity(%)
share(RMB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders 1.84% 0.13 0.13
of Company.
Net profit attributable to the
Common stock shareholders
1.30% 0.09 0.09
of Company after deducting
of non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
（ 1 ） Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable□√ Not applicable
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Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023
(3)Explanation of the reasons for the differences in accounting data under domestic and foreign accounting
standards. If the data that has been audited by an overseas audit institution is adjusted for differences, the
name of the overseas institution should be indicated
4.Other
Hangzhou Turbine Power Group Co., Ltd.
Chairman of the Board: Zheng Bin
August 31, 2023
143
