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杭汽轮B:2023年半年度报告(英文版)2023-08-31  

                                                                     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


                                                                                                                        14
                                                       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


                                                                                                                                         43
                                                   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


                                                                                                                            47
                                           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


                                                                                                             48
                                                        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


                                                                                                                          49
                                               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


                                                                                                                    50
                                                              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

                                                                                                                                    52
                                                              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


                                                                                                                                  53
                                                                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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                                                    Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023


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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                                                          Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023


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


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                                                    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

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                                                       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

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                                                            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

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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




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(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.




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                                                           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


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                                                         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




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                                                            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


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                                                                   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




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                                                           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




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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

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                                                                                              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



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                                                        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



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                                                               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

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                                                                   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



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                                                        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


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                                                               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



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                                                             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


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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


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                                                      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


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                                                       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:




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                                                             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.




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                                                           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

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                                                   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:


                                                                                                                               116
                                                         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


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                                                              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:


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                                                                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.

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                                                        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 (%)
                                                                                             (%)


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                                                                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.


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                                                             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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                                                 Hangzhou Turbine Power Group Co., Ltd. The Semi-Annual Report 2023


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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(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
                                                                                                                  
                                                                                                                  


                                                                                                                  
                                                                                                                  




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