杭州汽轮机股份有限公司 2015 年年度报告
Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2016-22
Hangzhou Steam Turbine Co., Ltd.
Auditors’ Report 2015
Table of Contents
I. The Auditors’ Report
II. Financial Statements
(I) Consolidated Balance Sheet
(II) Balance Sheet of the Parent Co.
(III) Consolidated Income Statement
(IV) Income Statement of the Parent Co.
(V) Consolidated Cash Flow Statement
(VI) Cash Flow Statement of the Parent Co.
(VII) Consolidated Statement of Change in Shareholders’ Equity
(VIII) Statement of Change in Shareholders’ Equity (Parent Co.)
III. Notes to the Financial Statements
杭汽轮机股份有限公司 2015 年年度报告
Auditors’ Report
Tian Jian Shen No.〔2016〕978
To the entire shareholders of Hangzhou Steam Turbine Co., Ltd.
We have audited the Financial Statements of Hangzhou Steam Turbine Co., Ltd. (the Company) attached hereafter,
including the Balance Sheet and Consolidated Balance Sheet ended December 31, 2015, Income Statement and
Consolidated Income Statement, Cash Flow Statement and Consolidated Cash Flow Statement, Statement of
Change in Share Equities and Consolidated Statement of Change in Share Equities of year 2015, as well as the
notes to the Financial Statements.
I. Executives’ responsibilities on the Financial Statements
Preparing and appropriately presenting of the Financial Statements are the responsibilities of the management of
The Company. This responsibilities are including: (1) Preparing the financial statements according to Enterprise
Accounting Standards and make them reflecting a fair basis. (2) Design, implement and maintain the internal
control system related to producing of the Financial Statements, to prevent the Financial Statements from major
false presentation due to cheating or error.
II. Responsibilities of the CPA
Our responsibilities are to issue auditing opinions on the Financial Statements basing on the auditing works we’ve
done on them. We carried out the auditing works with compliance to Chinese CPA Auditing Standard, which
requires us to plan and implement our works on the basis of professional ethic standards, and obtain reasonable
guarantee that the Financial Statements are free of major false statements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, we consider the internal control relevant to the entity’s preparation of financial statements in order to
design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting polices used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
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杭汽轮机股份有限公司 2015 年年度报告
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
III. Auditors’ Opinions
We believe that the Company has been following with the Enterprise Accounting Standard in preparing of the
Financial Statements. The Financial Statements is reflecting, both of the Company and the consolidated, in all
important aspects, the financial situation of Hangzhou Steam Turbine Co., Ltd. as of December 31, 2015 and the
business performance and cash flow of year 2015 both of the Company and the consolidated.
Pan-China Certified Public Accountants (Special common partnership) CPA China Jiang Xiaodong:
Hangzhou China CPA China : Zhu Guogang
March 17, 2016
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1. Consolidated balance sheet
Prepared by:：Hangzhou Steam Turbine Co., Ltd.
December 31,2016
In RMB
Items At the end of term Beginning of term
Current asset：
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杭汽轮机股份有限公司 2015 年年度报告
Monetary fund 751,596,796.24 613,958,063.91
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Bill receivable 680,518,943.49 701,109,938.01
Account receivable 2,096,090,157.61 2,388,919,641.98
Prepayments 139,267,324.65 172,022,768.39
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 25,574,057.29 25,382,223.32
Repurchasing of financial assets
Inventories 1,826,869,838.60 1,594,074,228.69
Assets held for sales
Non-current asset due in 1 year
Other current asset 427,203,835.44 382,070,235.56
Total of current assets 5,947,120,953.32 5,877,537,099.86
Non-current assets：
Loans and payment on other’s behalf disbursed
Disposable financial asset 509,409,741.77 498,990,862.94
Expired investment in possess
Long-term receivable
Long term share equity investment
Property investment
Fixed assets 642,155,636.34 678,033,380.86
Construction in progress 119,187,107.52 89,469,259.14
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 304,949,207.18 304,100,619.77
R & D petrol
Goodwill
Long-germ expenses to be amortized 2,029,471.80 1,041,796.52
Differed income tax asset 158,924,887.70 102,885,927.93
Other non-current asset
Total of non-current assets 1,736,656,052.31 1,674,521,847.16
Total of assets 7,683,777,005.63 7,552,058,947.02
Current liabilities
Short-term loans 85,350,000.00 198,600,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with variations
accounted into current income account
Derivative financial liabilities
Bill payable 194,226,049.73 150,763,452.14
Account payable 810,420,381.45 763,085,718.92
Advance payment 1,736,820,949.19 1,374,736,209.67
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杭汽轮机股份有限公司 2015 年年度报告
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 70,257,474.46 65,672,706.09
Tax payable 36,008,109.09 126,091,260.73
Interest payable
Dividend payable
Other account payable 29,705,125.51 29,597,889.12
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 300,000.00
Other current liability
Total of current liability 2,963,088,089.43 2,708,547,236.67
Non-current liabilities：
Long-term loan 123,400,000.00 18,500,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 330,000.00 330,000.00
Long-term payable employees’s remuneration
Special payable
Expected liabilities
Deferred income 6,804,425.00 8,252,705.00
Deferred income tax liability 1,017,473.05 1,017,473.05
Other non-current liabilities
Total non-current liabilities 131,551,898.05 28,100,178.05
Total of liability 3,094,639,987.48 2,736,647,414.72
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 139,590,345.09 139,590,345.09
Less：Shares in stock
Other comprehensive income -852,752.00 -640,401.72
Special reserves 31,764,920.51 24,603,149.96
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Undistributed profit 2,673,711,591.42 2,911,921,943.21
Total of owner’s equity belong to the parent company 4,219,337,312.80 4,450,598,244.32
Minority shareholders’ equity 369,799,705.35 364,813,287.98
Total of owners’ equity 4,589,137,018.15 4,815,411,532.30
Total of liabilities and owners’ equity 7,683,777,005.63 7,552,058,947.02
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader:
Zhao Jiamao
2.Parent Company Balance Sheet
In RMB
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杭汽轮机股份有限公司 2015 年年度报告
Items At the end of term Beginning of term
Current asset：
Monetary fund 387,916,202.79 248,509,410.84
Financial assets measured at fair
value with variations accounted
into current income account
Derivative financial assets
Bill receivable 365,504,827.88 385,543,218.94
Account receivable 1,637,391,672.98 2,010,980,253.99
Prepayments 53,440,645.95 72,514,421.98
Interest receivable
Dividend receivable
Other account receivable 12,245,371.97 33,537,812.35
Inventories 1,454,420,457.64 1,159,102,793.67
Assets held for sales
Non-current asset due in 1 year
Other current asset 170,653,680.58 30,000,000.00
Total of current assets 4,081,572,859.79 3,940,187,911.77
Non-current assets：
Disposable financial asset 465,604,378.26 454,010,862.94
Expired investment in possess
Long-term receivable
Long term share equity
investment 502,919,378.03 502,919,378.03
Property investment
Fixed assets 334,677,256.20 354,282,465.72
Construction in progress 79,982,551.34 67,302,264.59
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 177,872,266.49 181,918,239.41
R & D petrol
Goodwill
Long-germ expenses to be
amortized 761,660.66 1,015,547.54
Differed income tax asset 120,771,991.85 74,164,090.15
Other non-current asset
Total of non-current assets 1,682,589,482.83 1,635,612,848.38
Total of assets 5,764,162,342.62 5,575,800,760.15
Current liabilities
Short-term loans 100,000,000.00
Financial liabilities measured at
fair value with variations
accounted into current income
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杭汽轮机股份有限公司 2015 年年度报告
account
Derivative financial liabilities
Bill payable 13,500,000.00
Account payable 436,004,535.90 448,755,575.94
Advance payment 1,428,724,224.76 977,630,617.45
Employees’ wage payable 51,373,858.57 44,164,067.67
Tax payable 3,538,126.39 88,238,458.17
Interest payable
Dividend payable
Other account payable 20,338,742.44 19,738,024.51
Classified as held for sale debt
Non-current liability due in 1
year
Other current liability
Total of current liability 1,953,479,488.06 1,678,526,743.74
Non-current liabilities：
Long-term loan 100,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable to employees
Special payable
Expected liabilities
Deferred income 22,250.00 111,250.00
Deferred income tax liability 1,017,473.05 1,017,473.05
Other non-current liabilities
Total of Non-current liabilities 101,039,723.05 1,128,723.05
Total of liability 2,054,519,211.11 1,679,655,466.79
Owners’ equity
Share capital 754,010,400.00 754,010,400.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 138,953,250.09 138,953,250.09
Less：Shares in stock
Other comprehensive income
Special reserves 13,098,989.67 10,511,915.73
Surplus reserves 602,356,402.65 602,356,402.65
Undistributed profit 2,201,224,089.10 2,390,313,324.89
Total of owners’ equity 3,709,643,131.51 3,896,145,293.36
Total of liabilities and owners’
equity 5,764,162,342.62 5,575,800,760.15
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杭汽轮机股份有限公司 2015 年年度报告
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader:
Zhao Jiamao
3.Consolidated Profit statement
In RMB
Same period of the previous
Items Report period
year
I. Income from the key business 2,600,072,151.63 3,722,331,920.13
Incl：Business income 2,600,072,151.63 3,722,331,920.13
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,820,446,852.60 3,280,418,813.78
Incl：Business cost 1,805,941,522.77 2,363,125,652.50
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 12,014,265.08 30,181,499.93
Sales expense 156,702,806.61 158,590,899.44
Administrative expense 608,221,129.48 592,118,584.23
Financial expenses -7,563,749.45 15,255,789.99
Asset impairment loss 245,130,878.11 121,146,387.69
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 48,366,797.30 44,749,895.58
Incl: investment gains from affiliates
Gains from currency exchange（“-”for loss）
III. Operational profit（“-”for loss） -172,007,903.67 486,663,001.93
Add ：Non-operational income 29,025,777.14 24,073,116.78
Including：Income from disposal of non-current
assets
Less：Non business expenses 5,206,380.51 9,404,298.16
Incl：Loss from disposal of non-current assets
IV.Total profit(“-”for loss) -148,188,507.04 501,331,820.55
Less：Income tax expenses -24,157,778.85 77,385,100.71
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杭汽轮机股份有限公司 2015 年年度报告
V. Net profit -124,030,728.19 423,946,719.84
Net profit attributable to the owners of parent
company -162,809,311.79 352,077,352.23
Minority shareholders’ equity 38,778,583.60 71,869,367.61
VI. Other comprehensive income -498,713.66 -183,791.92
Net of profit of other comprehensive income attributab
le to owners of the parent company. -212,350.28 -78,257.87
（I）Other comprehensive income items that will not
be reclassified into gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit plans of changes
in net debt or net assets
2.Other comprehensive income under the equity meth
od investee can not be reclassified into profit or loss.
（II）
Other comprehensive income that will be reclassified i -212,350.28 -78,257.87
nto profit or loss.
1.Other comprehensive income under the equity meth
od investee can be reclassified into profit or loss.
2.Gains and losses from changes in fair value availabl
e for sale financial assets
3.Held-to-maturity investments reclassified to gains an
d losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial stateme
nts -212,350.28 -78,257.87
6.Other
Net of profit of other comprehensive income attributab -286,363.38 -105,534.05
le to Minority shareholders’ equity
VII. Total comprehensive income -124,529,441.85 423,762,927.92
Total comprehensive income attributable to the owner
of the parent company -163,021,662.07 351,999,094.36
Total comprehensive income attributable minority
shareholders 38,492,220.22 71,763,833.56
VIII. Earnings per share
（I）Basic earnings per share -0.22 0.47
(II)Diluted earnings per share -0.22 0.47
If there are entities merged under common control, their net profit realized before the merger were totaled to
RMB***. While it was RMB*** previous period.
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader:
Zhao Jiamao
4. Profit statement of the Parent Company
In RMB
Items Report period Same period of the
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杭汽轮机股份有限公司 2015 年年度报告
previous year
I. Income from the key business 1,555,496,371.53 2,584,209,968.34
Incl：Business cost 1,178,553,025.63 1,799,938,721.33
Business tax and surcharge 1,398,294.87 17,427,285.87
Sales expense 106,769,296.56 105,371,526.65
Administrative expense 381,197,193.85 356,505,227.23
Financial expenses -2,524,709.34 14,178,027.98
Asset impairment loss 210,969,678.28 89,634,090.49
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 149,604,635.99 196,903,483.48
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） -171,261,772.33 398,058,572.27
Add ：Non-operational income 12,361,410.34 9,768,097.16
Including：Income from disposal of non-current assets 10,283.00
Less：Non business expenses 1,955,547.08 4,565,898.06
Incl：Loss from disposal of non-current assets 41,138.39 10,307.63
III.Total profit(“-”for loss) -160,855,909.07 403,260,771.37
Less：Income tax expenses -47,167,713.28 30,379,474.06
IV. Net profit（“-”for net loss） -113,688,195.79 372,881,297.31
V.Net of profit of other comprehensive income
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit plans of changes in
net debt or net assets
2.Other comprehensive income under the equity method
investee can not be reclassified into profit or loss.
（ II ）
Other comprehensive income that will be reclassified int
o profit or loss.
1.Other comprehensive income under the equity method
investee can be reclassified into profit or loss.
2.Gains and losses from changes in fair value available f
or sale financial assets
3.Held-to-maturity investments reclassified to gains and
losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statement
s
6.Other
VI. Total comprehensive income -113,688,195.79 372,881,297.31
VII. Earnings per share：
（I）Basic earnings per share -0.15 0.49
(II)Diluted earnings per share -0.15 0.49
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader:
Zhao Jiamao
10
杭汽轮机股份有限公司 2015 年年度报告
5. Consolidated Cash flow statement
In RMB
Same period of the previous
Items Report period
year
I.Cash flows from operating activities
Cash received from sales of goods or rending of
2,631,164,968.80 3,095,800,715.65
services
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
Net increase of trade financial asset disposal
Cash received as interest, processing fee and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 11,497,951.32 1,578,096.69
Other cash received from business operation 30,394,059.57 24,600,078.90
Sub-total of cash inflow 2,673,056,979.69 3,121,978,891.24
Cash paid for purchasing of merchandise and
1,231,551,085.85 1,650,151,599.93
services
Net increase of client trade and advance
Net increase of savings n central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 667,800,831.48 669,696,270.69
Taxes paid 235,921,800.21 332,251,371.45
Other cash paid for business activities 182,105,489.10 186,150,677.25
Sub-total of cash outflow from business activities 2,317,379,206.64 2,838,249,919.32
Cash flow generated by business operation, net 355,677,773.05 283,728,971.92
II.Cash flow generated by investing
Cash received from investment retrieving 1,174,636.49
Cash received as investment gains 48,366,797.30 44,749,895.58
Net cash retrieved from disposal of fixed assets,
478,632.20 927,320.02
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received 1,744,905,999.95 1,813,194,104.88
Sub-total of cash inflow due to investment
1,794,926,065.94 1,858,871,320.48
activities
Cash paid for construction of
fixed assets, intangible assets 87,236,497.77 86,598,823.54
and other long-term assets
Cash paid as investment 11,593,515.32 26,641,036.07
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杭汽轮机股份有限公司 2015 年年度报告
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities 1,792,105,999.95 1,871,400,000.00
Sub-total of cash outflow due to investment
1,890,936,013.04 1,984,639,859.61
activities
Net cash flow generated by investment -96,009,947.10 -125,768,539.13
III.Cash flow generated by financing
Cash received as investment 11,740,000.00 1,260,000.00
Incl: Cash received as investment from minor
11,740,000.00 1,260,000.00
shareholders
Cash received as loans 200,650,000.00 249,800,000.00
Cash received from bond placing
Other financing –related ash received 300,000,000.00
Sub-total of cash inflow from financing activities 212,390,000.00 551,060,000.00
Cash to repay debts 208,700,000.00 409,600,000.00
Cash paid as dividend, profit, or interests 143,465,665.55 247,818,256.90
Incl: Dividend and profit paid by subsidiaries to
56,211,585.00 80,461,415.00
minor shareholders
Other cash paid for financing activities 300,000,000.00
Sub-total of cash outflow due to financing
352,165,665.55 957,418,256.90
activities
Net cash flow generated by financing -139,775,665.55 -406,358,256.90
IV. Influence of exchange rate alternation on cash
6,568,940.63 232,741.14
and cash equivalents
V.Net increase of cash and cash equivalents 126,461,101.03 -248,165,082.97
Add: balance of cash and cash equivalents at the
562,763,561.50 810,928,644.47
beginning of term
VI ..Balance of cash and cash equivalents at the
689,224,662.53 562,763,561.50
end of term
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader:
Zhao Jiamao
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,635,853,743.22 1,900,714,754.53
Tax returned 9,328,982.41
Other cash received from business operation 3,889,695.82 8,818,961.35
Sub-total of cash inflow 1,649,072,421.45 1,909,533,715.88
Cash paid for purchasing of merchandise and services 703,949,384.41 1,013,159,494.53
Cash paid to staffs or paid for staffs 458,460,020.00 469,600,583.04
Taxes paid 97,136,615.44 163,533,253.01
Other cash paid for business activities 113,710,360.58 105,859,510.42
Sub-total of cash outflow from business activities 1,373,256,380.43 1,752,152,841.00
Cash flow generated by business operation, net 275,816,041.02 157,380,874.88
II.Cash flow generated by investing
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杭汽轮机股份有限公司 2015 年年度报告
Cash received from investment retrieving
Cash received as investment gains 149,604,635.99 196,903,483.48
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets 296,808.00
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 440,000,000.00 510,357,990.86
Sub-total of cash inflow due to investment activities 589,901,443.99 707,261,474.34
Cash paid for construction of
fixed assets, intangible assets 58,565,139.10 45,567,613.80
and other long-term assets
Cash paid as investment 11,593,515.32 7,261,036.07
Net cash received from subsidiaries and other operational
units
Other cash paid for investment activities 580,000,000.00 538,000,000.00
Sub-total of cash outflow due to investment activities 650,158,654.42 590,828,649.87
Net cash flow generated by investment -60,257,210.43 116,432,824.47
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 100,000,000.00 100,000,000.00
Cash received from bond placing
Other financing –related ash received 300,000,000.00
Sub-total of cash inflow from financing activities 100,000,000.00 400,000,000.00
Cash to repay debts 100,000,000.00 260,000,000.00
Cash paid as dividend, profit, or interests 80,041,734.46 160,324,080.00
Other cash paid for financing activities 300,000,000.00
Sub-total of cash outflow due to financing activities 180,041,734.46 720,324,080.00
Net cash flow generated by financing -80,041,734.46 -320,324,080.00
IV. Influence of exchange rate alternation on cash and cash
equivalents 3,889,695.82 -273,191.65
V.Net increase of cash and cash equivalents 139,406,791.95 -46,783,572.30
Add: balance of cash and cash equivalents at the beginning
of term 248,509,410.84 295,292,983.14
VI ..Balance of cash and cash equivalents at the end of term 387,916,202.79 248,509,410.84
Legal Representative:Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader:
Zhao Jiamao
13
杭汽轮机股份有限公司 2015 年年度报告
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Less: Comm Total of owners’
Capital Share
Other
Specialized Surplus on risk Attributable shareholders’
Share Capital prefe Susta Comprehen equity
Ot reserves s in reserve reserves provisi profit equity
rred inabl sive Income
her stock on
stock e
debt
754,010,400.0 139,590,345. 24,603,149.9 621,112,807.7 2,911,921,943. 364,813,287. 4,815,411,532.3
I.Balance at the end of last year -640,401.72
0 09 6 8 21 98 0
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of 754,010,400.0 139,590,345. 24,603,149.9 621,112,807.7 2,911,921,943. 364,813,287. 4,815,411,532.3
current year -640,401.72
0 09 6 8 21 98 0
-238,210,351.7
III.Changed in the current year -212,350.28 7,161,770.55 4,986,417.37 -226,274,514.15
9
-162,809,311.7 38,492,220.2
（1）Total comprehensive income -212,350.28 -124,529,441.85
9 2
（II）Investment or decreasing of 19,740,000.0
capital by owners 19,740,000.00
0
14
杭汽轮机股份有限公司 2015 年年度报告
1 ． Ordinary Shares invested by S 19,740,000.0
hareholders 19,740,000.00
0
2 ． Holders of other equity instru
ments invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other
-56,211,585.0
（III）Profit allotment -75,401,040.00 -131,612,625.00
0
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or -56,211,585.0
shareholders) -75,401,040.00 -131,612,625.00
0
4．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(V). Special reserves 7,161,770.55 2,965,782.15 10,127,552.70
10,038,758.6
1. Provided this year 3,591,976.18 13,630,734.81
3
15
杭汽轮机股份有限公司 2015 年年度报告
2．Used this term 2,876,988.08 626,194.03 3,503,182.11
（VI）Other
754,010,400.0 139,590,345. 31,764,920.5 621,112,807.7 2,673,711,591. 369,799,705. 4,589,137,018.1
IV. Balance at the end of this term -852,752.00
0 09 1 8 42 35 5
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Less: Comm Total of owners’
Capital Share
Other
Specialized Surplus on risk Attributable shareholders’
Share Capital prefe Susta Comprehen equity
reserves s in reserve reserves provis profit equity
rred inabl Other sive Income
stock ion
stock e
debt
I.Balance at the end of last 139,590,34 17,276,201.1 583,824,678.0 2,736,802,630. 380,677,958.0 4,611,620,068.7
year 754,010,400.00 -562,143.85
5.09 5 5 30 0 4
Add: Change of accounting
policy 11,132,170.41 -11,132,170.41
Correcting of previous errors
Merger of entities under
common control
Other
II.Balance at the beginning of
current year 754,010,400.00 139,590,34 -562,143.85 17,276,201.1 583,824,678.0 2,747,934,800. 369,545,787.5 4,611,620,068.7
16
杭汽轮机股份有限公司 2015 年年度报告
5.09 5 5 71 9 4
163,987,142.5
III.Changed in the current year -78,257.87 7,326,948.81 37,288,129.73 -4,732,499.61 203,791,463.56
0
（1）Total comprehensive 352,077,352.2
income -78,257.87 71,763,833.56 423,762,927.92
3
（II）Investment or decreasing
of capital by owners 1,260,000.00 1,260,000.00
1 ． Ordinary Shares invested b
y Shereholders 1,260,000.00 1,260,000.00
2．Holders of other equity inst
ruments invested capital
3．Allotment to the owners (or
shareholders)
4．Other
(IV) Internal transferring of -188,090,209.7
owners’ equity 37,288,129.73 -80,461,415.00 -231,263,495.00
3
1. Capitalizing of capital
reserves (or to capital shares) 37,288,129.73 -37,288,129.73
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus -150,802,080.0
reserves. -80,461,415.00 -231,263,495.00
0
4. Other
(VI )Special reserves
1. Provided this year
2．Used this term
17
杭汽轮机股份有限公司 2015 年年度报告
（VII）Other
IV. Balance at the end of this
term
(V) Special reserves 7,326,948.81 2,705,081.83 10,032,030.64
1. Provided this year 11,060,486.26 3,721,068.19 14,781,554.45
2．Used this term 3,733,537.45 1,015,986.36 4,749,523.81
（VI）Other
IV. Balance at the end of this 139,590,34 24,603,149.9 621,112,807.7 2,911,921,943. 364,813,287.9 4,815,411,532.3
term 754,010,400.00 -640,401.72
5.09 6 8 21 8 0
Legal Representative:Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrument Other
Compr
Items Capital Less: Shares Surplus Common risk Attributable Total of owners’
Share Capital preferred ehensiv
Sustainabl Other reserves in stock reserves provision profit equity
stock e
e debt Income
754,010,400. 138,953,250. 602,356,402. 2,390,313,324.8 3,896,145,293.3
I.Balance at the end of last year 10,511,915.73
00 09 65 9 6
Add: Change of accounting
policy
Correcting of previous errors
18
杭汽轮机股份有限公司 2015 年年度报告
Other
II.Balance at the beginning of 754,010,400. 138,953,250. 602,356,402. 2,390,313,324.8 3,896,145,293.3
10,511,915.73
current year 00 09 65 9 6
III.Changed in the current year 2,587,073.94 -189,089,235.79 -186,502,161.85
（I）Total comprehensive income -113,688,195.79 -113,688,195.79
(II) Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by
shareholders
2．Holders of other equity instru
ments invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment -75,401,040.00 -75,401,040.00
1.Providing of surplus reserves
2．Allotment to the owners (or
-75,401,040.00 -75,401,040.00
shareholders)
3．Other
(IV)Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(V) Special reserves 2,587,073.94 2,587,073.94
1. Provided this year 4,484,209.97 4,484,209.97
2．Used this term 1,897,136.03 1,897,136.03
（VI）Other
IV. Balance at the end of this 754,010,400. 138,953,250. 13,098,989.6 602,356,402. 2,201,224,089.1 3,709,643,131.5
term 00 09 7 65 0 1
Amount in last year
19
杭汽轮机股份有限公司 2015 年年度报告
In RMB
Amount in last year
Other Equity instrument
Other
Less:
Items prefe Compreh Surplus Common risk Attributable Total of owners’
Share Capital Sustain Capital reserves Shares in
rred Other ensive reserves provision profit equity
able stock
stock Income
debt
754,010,400. 7,295,765.2 2,205,522,237.3 3,670,849,925.5
I.Balance at the end of last year 138,953,250.09 565,068,272.92
00 0 1 2
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current 754,010,400. 7,295,765.2 2,205,522,237.3 3,670,849,925.5
138,953,250.09 565,068,272.92
year 00 0 1 2
3,216,150.5
III.Changed in the current year 37,288,129.73 184,791,087.58 225,295,367.84
3
（I）Total comprehensive income 372,881,297.31 372,881,297.31
(II) Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by shar
eholders
2．Holders of other equity instrumen
ts invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment 37,288,129.73 -188,090,209.73 -150,802,080.00
1.Providing of surplus reserves 37,288,129.73 -37,288,129.73
2．Allotment to the owners (or
-150,802,080.00 -150,802,080.00
shareholders)
3．Other
(IV)Internal transferring of owners’
equity
1. Capitalizing of capital reserves
(or to capital shares)
20
杭汽轮机股份有限公司 2015 年年度报告
2. Capitalizing of surplus reserves
(or to capital shares)
3．Making up losses by surplus
reserves.
4. Other
3,216,150.5
(V) Special reserves 3,216,150.53
3
5,330,910.9
1. Provided this year 5,330,910.95
5
2．Used this term 2,114,760.42 2,114,760.42
（VI）Other
754,010,400. 10,511,915.7 2,390,313,324.8 3,896,145,293.3
IV. Balance at the end of this term 138,953,250.09 602,356,402.65
00 3 9 6
Legal Representative:Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
21
Hangzhou Steam Turbine Co., Ltd.
Notes to the Financial Statements
Year 2015
In RMB
I.Company Profile
Hangzhou Steam Turbine Co., Ltd. (the Company) was incorporated as a joint stock limited company exclusively
promoted by Hangzhou Steam Turbine & Power Group Company Limited (“HSTG”) approved by the Securities
Regulatory Commission of the State Council with the Document SRC [1998] No. 8 by offering domestically
listed foreign currency ordinary shares (B Shares), with registration date: April 23, 1998, legal entity business
license No.: QGZZZD No.002150. The number of Business License was changed to 330000400001023 on May 6,
2009. The Company’s registered capital is now increased to RMB754.0104 million with total capital share of
754.0104 million shares (face value RMB1.00). Among which state-owned legal person shares were 479.8248
million shares and 274.1856 million shares of current B shares. The shares were issued and listed for trading in
Shenzhen Stock Exchange on April 28, 1998.
The scope of main businesses of the Company: The design, manufacturing, and service of steam turbine, gas
turbine, other rotating and reciprocate machinery and auxiliary equipment, and spare parts and components.
Wholesale, import & export, and service of packaged equipment in electric power supply, industrial driving, and
industrial turbine.
These Financial Statements are released upon approval at the 28th meeting of the 6th term of Board held on
March 17, 2016.
24 subsidiaries including Zhejiang Steam Turbine Packaged Technologies Co., Ltd., Hangzhou Zhongneng Steam
Turbine Power Co., Ltd., Hangzhou Steam Turbine Casting Co., Hangzhou Steam Turbine Auxiliary Co., Ltd.,
Hangzhou Steam Turbine Machinery & Equipment Co., Ltd., Zhejiang Turbine Import & Export Co., Ltd., and
Hangzhou Steam Turbine Industry Co., Ltd., were consolidated to the Financial Statements. For details of
changing consolidation range and equity position please go to the Notes to the Financial Statements.
II. Basis of compiling the finance report
(1) Basis of compiling
The Company adopts perpetual operation as the basis of financial statements.
(II) Assessment on perpetuation
No issue or situation, in 12 months since the end of report period, composes major doubt on the perpetuation
assumption of the Company.
III. 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.
22
5. Accounting treatment of the entities under common control and different control
1. Treatment of entities under common control
Assets and liabilities acquired in merger of entities are measured at book values at the date of merger. The
difference between the net book value of asset and the offered price (or total of face value of shares issued) will be
adjusted into capital reserves; when the capital reserves is not enough to reduce, it will be adjusted into retained
profit.
2. Treatment of entities under different control
The difference of takeover cost over the fair value of recognizable net asset of the acquired entity is recognized as
goodwill at the day of takeover; in case the takeover cost is lower than the fair value of recognizable net asset of
the acquired entity, the measuring process over the recognizable asset, liabilities, contingent liabilities, and
takeover cost, shall be repeated, if comes out the same result, the difference shall be recorded into current income
account.
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. 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.
8. Foreign currency trade and translation of foreign currencies
1. Translation of foreign currency
Foreign currency trades are translated into RMB at the rate of the day when the trades are made. Those balances
of foreign currencies and monetary items in foreign currencies are accounted at the exchange rate of the balance
sheet date. Exchange differences, other than special loans satisfying the conditions of capitalization, are accounted
into current income account. Non-monetary items in foreign currencies and on historical cost are translated at the
rate of the trade day. Non-monetary items in foreign currencies and on fair value are translated at the rate of the
day when the fair value is recognized, where the differences are accounted as gain/loss from change of fair value.
2. Translation of foreign currency financial statements
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.
9. Financial instruments
1. Type of finance asset and finance debt
Finance assets are divided initially into four types of financial asset appointed to be measured at fair value with
their changes are accounted into current gain/loss accounts(including transactional finance asset and financial
asset appointed to be measured at fair value with their changes are accounted into current gain/loss accounts),
transactional financial assets, debt and account receivable, finance asset saleable.
Finance debts are divided initially into two types of financial debt appointed to be measured at fair value with
their changes are accounted into current gain/loss accounts(including transactional finance debt and financial debt
appointed to be measured at fair value with their changes are accounted into current gain/loss accounts), other
finance debt.
23
2. Basis of recognition and accounting of finance asset and finance debt
When the Company is one part of the finance instrument contract, one finance asset or debt is recognized. When
on recognizing initially finance asset or debt, it is measured by fair value, for the finance asset or debt which
appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, the related
transaction expenses are directly accounted into current gain and loss; for other finance asset and debt, the related
transaction expenses accounted into the initial recognition account.
The Company future measures finance asset by fair value without deducting future possible transaction fee but
with exception: (1) Due investment, debt and account receivable are measured by actual interest rate according to
the amortized costs. (2) Equity instrument investment which have no quote in active market and which fair value
can’t be measured reliably, and its derived finance assets which are connected with the equity instrument and
which are summarized through the equity instrument, are measured by cost.
The Company conduct successive measure of finance debt according to amortized cost by actual interest rate with
exception as following: (1) finance debt which appointed to be measured at fair value with their changes are
accounted into current gain/loss accounts, is measured at fir value without deducting possible future transactional
fee at settlement; (2) Equity instrument investment which have no quote in active market and which fair value
can’t be measured reliably, and its derived finance assets which are connected with the equity instrument and
which are closed off through the equity instrument, are measured by cost. (3) finance debt sponsorship contracts
which are not appointed to be measured at fair value with their changes are accounted into current gain/loss
accounts, or debt agreements at rate lower than market rate and which are not appointed to be measured at fair
value with their changes are accounted into current gain/loss accounts, are measured at the higher value between
the optimal estimated value payable according to current obligations and the surplus value from which the initial
recognition value deduct the accumulated amortized amount according to the actual interest rate.
Gain or loss from fluctuation of financial assets or liabilities are handled at the following ways, except for relating
to hedge instrument.
(1) Gain or loss from fluctuation of fair value of financial assets or liabilities and accounted into current gain/loss
account, are accounted into gain/loss of fluctuation of fair value. Interests or cash dividend received in the period
of holding these assets are recognized as investment gains. When they are disposed, the difference between the
amount actually received and initially booked value is recognized as investment gains, and adjust the gain/loss
from fair value fluctuation.
(2) Fluctuation of fair value of sellable financial assets accounted into capital reserves; interests gained at actual
interest rate are accounting into investment gains; the cash dividend received from sellable instrument investment,
are accounted into investment gains when distributed; At disposal of these investment, the difference between
actual amount received and book value are recognized as investment gains after deducting of accumulated change
of fair value which are originally accounted into capital reserves.
As soon as the contract rights of acquiring the cash flow of particular financial asset have been terminated or
almost all of the risks and rewards attached to the financial asset have been transferred, recognition of the
financial asset is terminated; as soon as the current liabilities attached to the financial liability have been
completely or partially relieved, recognition of the financial liability or part of is terminated.
3. Basis of recognition and accounting of financial asset transferring
The Company stop recognizing the finance asset which risks and remuneration of ownership are transferred to the
receiver; and continue to recognize the transferred finance asset which risks and remuneration of ownership are
kept, and recognize the value as one finance debt. For the finance assets which risks and remuneration of
ownership are not transferred or kept, the Company recognize them as following: (1) stop recognizing the finance
asset which are given up the control; (2) continue to recognize the finance asset and related finance debt according
to the extend which involved into the transferred finance asset for the finance asset which are not given up control.
The Company measured the surplus between the following two values for the transferred finance assets which
fulfill the stop recognition requirements into current gain or loss: (1) Account value of the transferred finance
asset; (2) Consideration plus the accumulated fair value changes which were accounted directed into ownership
rights. For the transferred finance assets which partly fulfill the stop recognition requirements the Company
amortized the stopped recognition part and the not-stopped recognition part of the account value of the whole
transferred finance asset, and account the surplus between the following two values into current gain or loss: (1)
Account value of the stopped recognition part; (2) consideration plus the corresponding stopped recognition part
24
of the accumulated fair value changes which were accounted directed into ownership rights.
4. Basis of recognition and accounting of fair value for the main finance asset and finance debt
For the finance asset or debt which active market exists, the Company recognize the fair value according to the
quote on the active market; for the finance asset or debt which active market not exists, the Company recognized
the fair value using estimation technology (including reference of the latest market prices from freewill
transactions by persons familiar with conditions, reference of the current fair value of other similar finance
instrument in characteristics, discounted cash flow models and Option Pricing Model); for the initially acquired or
initial finance asset or finance debt, the Company recognize the fair value basis on the market trading price.
4. Recognition of fair value of financial assets and liabilities
The Company utilizes evaluation technologies supported by sufficient data and information to recognize the fair
values of financial assets and liabilities. Values inputted to the evaluation technology are divided into following
levels and used in sequence:
(1) Level 1 input: unadjusted quotations obtained from an active market of the similar asset or liability at the date
of measurement;
(2) Level 2 input: values of the asset or liability observable, directly or indirectly, other than level 1 input,
including: quotation of similar asset or liability in an active market; quotation of similar asset or liability in an
non-active market; other observable value other than quotations, i.e. observable interest or gain curves in normal
intervals of quotations.
(3) Level 3 input: non-observable input value of the asset or liability, including interest rates which are not
observable or not testified by observable market data, fluctuation of stock prices, future cash flow of disposal
liabilities undertaken from merger of entities, or financial predictions upon data itself.
5. Impairment test and impairment reserves plan
(1) The Company conduct impairment test to the finance asset other than which appointed to be measured at fair
value with their changes are accounted into current gain/loss accounts on balance sheet day. Impairment provision
is provided as long as evidence showing that impairment has happened to the financial asset.
(2) The Company conduct independently impairment test for single finance asset with large value for single
finance asset with little value the Company conduct the impairment test with those of the finance asset
composition which have similar credit risk characteristics; for the non impairment assets which are tested
independently, the Company conduct the impairment test with those of the finance asset composition which have
similar credit risk characteristics.
(3) For the finance asset accounted by amortized cost which have subject impairment evidence at the end term, the
impairment loss was recognized according to the difference between the account value and the anticipating future
cash flow, for the finance asset which have little difference between its short term account receivable anticipating
future cash flow and its current value, the Company don’t discount the future cash flow when recognizing related
impairment loss. When there is impairment loss for the Equity instrument investment which have no quote in
active market and which fair value can’t be measured reliably and its derived finance assets which are connected
with the equity instrument and which are calculated through the equity instrument, are measured by cost, the
difference is recognized as impairment loss between the account value of the equity instrument investment and its
derived finance asset and the current value discounted by the future cash flow according to the market profit rate
of the similar finance asset. The Company recognize the impairment loss for the saleable finance asset which fair
value have sharp decreasing and the anticipating decreasing trend is not temporary, and account it into impairment
loss together with the accumulated fair vale loss which was accounted into owner’s equity directly.
When impairment occurred with a sellable financial asset, the accumulated losses caused by decreasing of fair
value which have originally been written into owners’ equity shall be carried over to current gain/loss account. If
practical evidence showing that the value of a particular financial asset has recovered in value after a impairment
loss has been recognized and practically related to the issues occurred after recognition of the loss, the impairment
loss recognized shall be restored and accounted into current gain/loss. Impairment loss of sellable equity inves
tment instrument will be restored to owners’ equity when the fair value has increased afterward.
25
10. Receivable accounts
1. Recognition and providing of bad debt provision on individual receivable account with large amount
Basis of recognition or standard amount of
Accounts take over 10% of the book balance of receivable accounts
individual account with large amount
Impairment test performed individually, bad debt provision will be provided at
Basis of bad debt provision
the difference of expected cash flow lower than the book value.
2.Recognition and providing basis of bad debt reserves for group of receivable accounts with similar
characteristics of credit risks
Name of the Group Basis of bad debt provision
Group by age analysis Age analysis method
Combined range of association Other method
Bad debt profisions are provided on age analyze basis in the group
Rate of provision on receivable Rate of provision on other receivable
Age
account account
Within 1 year)included) 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 60.00% 60.00%
4－5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
Bad debt provisions are provided on percentage basis in the group
□ Applicable √ Not applicable
Bad debt provisions are provided on other basis in the group
□ Applicable √ Not applicable
(3) Receivable accounts with minor amount but bad debt provisions are provided individually
When there is significant difference between the current value of future
Basis of providing bad debt
cash flow of the receivable account and the current value of future cash
individually
flow of the group
Impairment test performed individually, bad debt provision will be
Basis of bad debt provision provided at the difference of expected cash flow lower than the book
value.
11.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
Pricing basis:
Delivered out materials are accounted by weighted average method, issued out finished products are accounted at
individual price.
26
(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
12. Long-term equity investment
1. Recognition of common control and substantial influence
According to the contract, if the invested enterprise’s main finance and operation policy need to be agreed by the
other investing party, the investment is common control investment; if only have participating decision rights in
invested enterprise’s main finance and operation policy but have no own control or common control with other
investing part, the investment is investment with substantial influence.
2. Recognition of initial investment costs
(1) For the long-term equity investment formed by corporate merger under common control, if it is the long-term
equity investment obtained from the corporate merger by paying cash, transferring non-cash asset, bear liability
and issuing equity securities, the share of book value of owner's equity of the merged party on the merger date
shall be taken as the initial investment cost. The asset reserve is adjusted according to the difference between the
initial investment cost of long-term equity investment and the book value of paid combined consideration or
issued securities; if the capital is not enough for deduction, the remain earnings are adjusted.
Recognition of “one-off” trade when long-term equity investment is composed by merger of entities under
common control by multiple steps.
Transactions under an “one-off” trade are accounted as a common trade of ownership.
Transactions which are not “one-off” trades are recognized for their initial investment cost basing on the share of
book value of net asset in the consolidated financial statement of the entities acquired. Balance between the initial
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:
27
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.12 – 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
At disposal of equity shares, the balance between book value and actual consideration received is recorded to
current gain/loss account.
When the retained share equity is composing major influence or joint control with other parties on the invested
entity, accounting will be on equity basis;
When none of substantial control, joint control, or major influence on the entity, it will be recognized as sellable
financial asset and accounted on fair value.
(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 continuous basis since purchasing or merger, is adjusted to capital reserves (capital premium),
whereas if the capital premium is not enough to offset the amount, retained profit will be offset at corresponding
amount.
At losing of control power over a former subsidiary, the retained equity shares shall be re-calculated according to
the fair value at the day of losing power. Sum of the consideration obtained from disposal and fair value of the
retained equity shares, less the share of net asset attributable to the Company on continuous 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.
13. 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 of fixed assets
Depreciation age Annual depreciation
Categories Basis of depreciation Retain value rate
(year) ratio
Straight average on
Houses & buildings 20-30 4% 4.8%-3.2%
period
Equipment & Straight average on
8-15 4% 12%-6.4%
machinery period
Transportation Straight average on
4-8 4% 24%-12%
equipment period
Straight average on
Office equipment 5 4% 19.2%
period
28
14. Construction in process
1. Construction in process is recognized on the basis of characteristics: very possible economic benefit flow in,
cost can be measured reliably. Since the date when the construction in process reaches its useful status as expected,
the construction in process is measured by the happened cost Since the date when the construction in process
reaches its useful status as expected.
2. When the construction in process reaches its useful status as expected, it is transferred into fixed asset at actual
cost. If the construction in process has reached useful status but with completion of project settlement process, it is
transferred to fixed asset at the value estimated, and adjustment will happen after completion of project settlement
process but no adjustment on depreciation provided previously.
Notes ：Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
15. 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.
16. 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
Land using right 50
Other 5
(2) Accounting policy for internal research and development expenditure
Expenditures of internal researching projects are accounted into current term gain and loss when happens. The
development period expenditures are recognized as intangible assets when fulfill following conditions: (1) The
intangible asset is completed and technically possible to be used or sold; (2) With intention to complete the
intangible asset for purpose of use or sale; (3) Evidence showing that there are markets or the products produced
with using of the intangible asset, or markets of the intangible asset itself, by which the intangible asset may
produce financial benefits. Intangible assets used inside the Company must be approved for their usable characters.
(4) Developing of the intangible assets are supported by sufficient technical, financial, and other resources, and
the intangible assets can be used or sold. (5) Expenditures occurred in developing of the intangible asset may be
reliably measured.
17. 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
29
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.
18. Long-term amortizable expenses
Long-term amortizable expenses which have been paid but with amortizing period over 1 year (not included).
Long-term amortizable expenses are recorded at actual amount occurred, and straight amortized to stipulated
periods. In case a long-term expense was not benefiting the succeeding periods, then the balance of the account
shall be transferred over to current income account.
19. Employees’ wage
1. Employees’ wage composes of short-term wages, after-job welfare, dismiss welfare, and other long-term
welfares.
2. 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.
3. Accounting of after-job welfare
After-job welfare composes of stipulated saving plan and stipulated beneficiary plan.
(1) In the fiscal period when an employee is providing service, the payable amount calculated by the stipulated
saving plan is recognized as liability and recorded into current gain/loss or cost of related asset.
(2) Accounting of stipulated beneficiary plan is on following steps:
1) On basis of expected accumulation of welfare, estimations on population variables and financial variables,
calculating of liabilities from stipulated beneficiary plan, and recognition of the period of related liabilities, are
performed on basis of non-bias and accordance actuary. Meanwhile, discount is performed on the liabilities from
stipulated beneficiary plan to recognize the current value and service cost of the liabilities from the stipulated
beneficiary plan.
2) When there is asset involved in the stipulated beneficiary asset, the deficit or premium from the balance of the
current value of liabilities of stipulated beneficiary plan over their fair values is recognized as its net liability or
net asset. When there is a premium with a stipulated beneficiary plan, the lower one between the premium and the
upper limit of the asset is recognized as the net asset of such stipulated beneficiary asset;
3) At end of period, employees’ wages from stipulated beneficiary plan are recognized by three parts including
service cost, net interest of net liability or net asset, and recalculated net asset or liability variation. The first two
are recorded into current gain/loss or related asset cost, the third is recorded to other gains, which will not be
written back to gain/loss in successive fiscal periods, but the amount can be transferred with the range of equity.
4. Accounting of dismissing welfare
Welfares for employees who are dismissed, the earlier one of the following is recognized as employee wage
liability, and recorded to current gain /loss:
(1) When the Company cannot, on its own call only, retrieve the dismissing welfare provided by dismissing of
service plan or suggestion;
(2) When the costs or expenses related to restructuring involved in the dismissing welfare are recognized by the
Company.
5. 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.
20. 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.
21.Revenue
1. Recognizing of revenue
30
(1) Sales of goods
Sales income is recognized when all of these conditions are satisfied: (1) Major risks and rewards attached to the
goods have been transferred to the purchaser; (2) The Company holds neither successive management power
which is normally attached to ownership, nor effective control, over the goods which have been sold out; (4)
Amount of income may be reliably measured; (5) when the costs, occurred or will occur, may be measured
reliably.
(2) Providing of services
At balance sheet day, those service trades (simultaneously satisfying the requirements of those: income can be
measured reliably, related economic benefit will flow in very possibly, transaction procedure can be confirmed
reliably, happened and happening cost can be measured reliably) which can be reliably estimated are recognized
at the percentage of completion, and progress of completion of service is decided by the portion of costs occurred
over the estimated total costs. At balance sheet day, those service trades which can not be reliably estimated, if the
happened services cost will be compensated, the services income are recognized according to happened service
cost and transited to service cost according to same amount; if the happened services cost will not be compensated,
the happened services cost are accounted into current term’s gain or loss and the services income will not be
recognized.
(3) Giving of asset using rights
Income from giving of assets is recognized when satisfying requirements: related economic benefit flows in very
possibly, income can be measured reliably. Amount of interest income is calculated according to the time and
actual interest rate of the monetary capital is used by other party. Income of using fee is calculated upon the
charge period and calculation provided by the related contract or agreement.
(4) Construction contracts
1) When the result of the construction contract is able to be evaluated reliably at the balance sheet date, the
income and cost of the contract are recognized on completion percentage basis. If the result of the construction
contract is not able to be evaluated reliably, but the contract cost may be recovered, the income is recognized at
the cost actually recovered, and the cost of the contract is recognized as contract expenses of the current period
when it is occurred.
2) When all of the following conditions were satisfied, the result of a fix-amount contract is regarded as can be
evaluated reliably: the total income of the contract may be measured reliably, there is great possibility that the
financial benefit in relation with the contract will inflow, the actual contract costs may be identified and measured
clearly and reliably, the construction progress and the cost to occur are able to be measured reliably. When all of
the following conditions are satisfied, the result of a cost-plus-commission contract is regarded as can be
evaluated reliably: there is great possibility that the financial benefit in relation with the contract will inflow, the
actual costs may be identified and measured clearly and reliably.
3) Contract progress is recognized at the ratio of accumulative actual cost on the predicted complete cost.
4) In case the expected total cost is greater than the total income, the expected loss will be recognized as expense
of the current period. If the construction is in process, the balance is accounted as inventory impairment provision;
if the contract is not executed, the balance is accounted as expected liability.
2. Practical basis for recognition of revenue
Particular methods for recognition of revenue. The Company is mainly engaged in designing, manufacturing,
sales, and service of steam turbines and gas turbines falling in the range of rotating and reciprocating machinery,
and parts. Recognition of sales in the country shall satisfy: products had been delivered to the buyer and the
amount had been fixed. Payment was received or documents received with great possibility of cash inflow. And
the cost of the products is able to be measured appropriately. Recognition of sales outside the country shall satisfy:
The goods had been filed by the custom and departed with bill of lading obtained. The amount had been fixed, and
payment was received or documents received with great possibility of cash inflow. And the cost of the products is
able to be measured appropriately.
22. Government subsidy
1. Recognition basis and accounting of asset-related government subsidy
Government subsidies to the Company for purchasing or acquiring by other means of long-term asset are
asset-related government subsidies. They are recognized as deferred income and amortized straightly to their
service lives and accounted in current gain/loss. Whereas government subsidy measured by nominal amount are
recorded to current gain/loss account.
2. Recognition basis and accounting of income-related government subsidy
Government subsidies other than asset-related subsidies are recognized as income-related government subsidies.
31
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.
23. 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.
24. Lease
Accounting of operational lease
When the Company is the leasee, the amount is recorded to asset cost or recognized as gain/loss of current period
on straight basis to the periods of lease. Initial direct expenses are accounted into current gain/loss. Contingent
rentals are recorded to current gain/loss at actual occurrence.
When the Company is the leaser, the amount is recorded to current gain/loss at straight basis to the periods of
lease. Initial direct expenses are recorded to current gain/loss other than those with greater amount which are
capitalized and recorded to gain/loss of different periods. Contingent rentals are recorded to current gain/loss at
actual occurrence.
25.Other important accounting policies and accounting estimates
According to document CQ〔2012〕No.16 issued by National Department of Finance and National Safety
Inspection Bureau General, the Company was categorized as machinery production enterprise. Providing of
workplace safety funds are to be provided on monthly basis according to the following schedule: 2% provided on
the turnover less than RMB10 million; 1% on the amount over RMB10 million and less than RMB100 million;
0.2% on the amount over RMB100 million and less than RMB1 billion; 0.1% on the amount over RMB1 billion
and less than RMB5 billion; 0.05% on the amount over RMB5 billion.
The above safety expenses are drawn according to national regulations and accounted to costs of related products
and recorded to “special reserves” at the same tine. At providing of safety expenses, expense-related costs are
deducted from the special reserves. When a safety fund was drawn and composes part of a fixed asset, they are
collected under construction-in-process, and recognized to fixed asset when the asset reaches usable status.
Meanwhile, the special reserve is deducted by the costs which compose part of the fixed asset, and accumulative
depreciation is recognized at the same amount. This fixed asset is not subject to depreciation in successive
periods.
26. Change of main accounting policies and estimations
（1）Change of main accounting policies
Remar
Content and Reason Vetting process Suitable Time
k
In order to adapt to the change of market
environment, better prevent and control accounts The above changes have been
receivable risks and make Company’s receivable examined and adopted at the 19th
March 26,2015
accounts accord with relevant risks situation and meeting of the 6th term of Board
the proportion of actual loss. The Company 2015.
decided to change the accounting evaluation of
32
provision for bad debts set up on accounts
receivable, reduce and raise the percentage it in 3
years and over 3 years respectively and make
devaluation provision for full accounts receivable
in line with cautious and objective principle.
1) The use of an aged analysis of bad debts of accounts receivable for the changes in accounting estimates
before and after comparison：
Aging Proportion（%） Proportion of change
（%）
Within 1 year 5 5
1-2 years 20 10
2-3 years 40 30
3-4 years 60 60
4-5 years 60 80
Over 5 years 60 100
2) Report items and amounts affected
Report items subject to significant impact Amount
Balance sheet ites (December 31, 2015)
Account receivable 46,087,385.33
Other receivable -744,443.85
Undistributed profit 36,582,571.20
Profit statement items in 2015
Assets impairment loss -45,342,941.48
Income tax expenses 8,760,370.28
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
VAT Sales of goods or providing of taxable labor service 17%
Operational tax Taxable turnover 5%
City maintenance and
Turnover tax payable 7%
construction tax
Enterprise income tax Amount of income taxable 15%、25%
For those on price basis, taxes are paid at 1.2% of the balance of
House tax original value of the property after deducting of 30%; for those on 1.2%、12%
rental basis, taxes are paid at 12% of the rental.
Educational surcharge Taxable turnover 3%
Local education
Taxable turnover 2%
additional
33
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The company and the subsidiary of Hangzhou Zhongneng Steam Turbine Power
Co., Ltd., Zhejiang Steam Turbine Packaged Technology Development Co., Ltd.,
15%
Hangzhou Steam Turbine Casting Co., Ltd., Zhejiang Huayuan Steam Turbine
Machinery Co.,Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co.,Ltd.
Other Subsidiary（Domestic） 25%
(II) Preferential tax
1. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2015〕No.29) issued
by Department of Science and Technology High-tech Development Center, the Company along with Hangzhou
Zhongneng Steam Turbine Power Co., Ltd. and Zhejiang Packaged Technologies Development Co., Ltd. –
subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they enjoy
15% of tax for 2014-2016.
2. According to the document ZKFGD〔2013〕No.294 titled “Notice for Recognition of 491 High-tech
Enterprises” issued jointly by Zhejiang Bureau of Science and Technology, Zhejiang Bureau of Finance, Zhejiang
National Tax Bureau, and Zhenjiang Local Tax Bureau, Hangzhou Steam Turbine Casting Co., Ltd. was
recognized as a High-Tech Enterprise, therefore enjoys 15% of income tax rate from 2013 to 2015.
3. According to the document “Notice for Qualification of High-tech Enterprises” (GKHZD〔2015〕No.36) issued
by Department of Science and Technology High-tech Development Center, Zhejiang Huayuan Steam Turbine
Machinery Co., Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co., Ltd. – subsidies of the Company,
were renewed or their qualifications as high-tech enterprises. Therefore they enjoy 15% of tax for 2014-2016.
3. Other
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd. registered in Indonesia overseas subsidiaries,
the applicable local relevant tax laws and regulations.
VII. Notes to the Consolidated Financial Statements
1. Monetary capital
In RMB
Items End of term Beginning of term
Cash in stock 391,106.17 307,654.85
Bank deposit 688,833,556.36 562,455,906.65
Other monetary fund 62,372,133.71 51,194,502.41
Total 751,596,796.24 613,958,063.91
Incl:Total of accounts saved overseas 9,182,145.32 9,198,137.90
Other statements
Other monetary fund composes of RMB59,872,133.71 of security for bank acceptance notes and
RMB2,500,000.00 of security for bank guarantee letter. Both under limitation of using.
2. Bills receivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
34
Bank acceptance 637,528,943.49 689,241,938.01
Total 680,518,943.49 701,109,938.01
(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
Amount of recognition termination Amount of not terminated
Items
at the period-end recognition at the preriod -end
Bank acceptance 400,375,131.86
Total 400,375,131.86
35
3. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportio Proportio Book value Proportio Proportio Book value
Amount Amount Amount Amount Propo
n n n n
Accounts
receivable
Proportio
portfolio subject 2,861,049,700.73 98.97% Amount 2,096,090,157.61 2,969,407,602.57 99.01% 580,487,960.59 19.55% 2,388,919,641.98
to impairment by n
credit risk
Account
receivable of
individual not
significance
29,819,607.69 1.03% 29,819,607.69 100.00% 29,819,607.69 0.99% 29,819,607.69 100.00%
subject to
individually
assessment for
impairment
Total 2,890,869,308.42 100.00% 794,779,150.81 27.49% 2,096,090,157.61 2,999,227,210.26 100.00% 610,307,568.28 20.35% 2,388,919,641.98
Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
Account receivable in the portfolio which are provided bad debt provision on age basis
In RMB
End of term
Age
Book balance Bad debt provision Providing rate%
Subitem within 1 year
Within 1 year 780,946,769.51 39,047,338.50 5.00%
36
Subtotal within 1 year 780,946,769.51 39,047,338.50 5.00%
1-2 years 852,535,246.15 85,253,524.61 10.00%
2-3 years 615,601,136.27 184,680,340.89 30.00%
Over 3 years 310,992,707.13 186,595,624.29 60.00%
3-4 years 157,955,634.19 126,364,507.35 80.00%
4-5 years 172,837,815.17 172,837,815.17 100.00%
Over 5 years 2,890,869,308.42 794,779,150.81 27.49%
Total
37
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB190,166,947.80 ; recovery or payback for bad debts
Amount is RMB0.00.
Where the current bad debts back or recover significant amounts:
(3) Receivable accounts actually written off in the report period
In RMB
Items Amount
Difficult to recover 5,695,365.27
Of which the significant actual write-off accounts receivable:
In RMB
Arising from
Nature of account Amount written Reason for Verification related
Name
receivables off write-off procedures transactions
(Y/N)
Zhejiang Jiahua The examined an
Difficult to
Energy Chemical Goods 1,920,000.00 d adopted to No
Co., Ltd. recover
Board of directors
Oriental The examined an
Electrical Difficult to
No
Group .Beijing Goods 1,599,316.10
recover
d adopted to
Company Board of directors
China
Petrochemical The examined an
Difficult to
Group Sichuan Goods 290,000.00 d adopted to No
Vigny Lun recover
factory Board of directors
The examined an
Difficult to
Other Goods 1,886,049.17 d adopted to No
recover
Board of directors
Total -- 5,695,365.27
Explanation for write-off of account receivables:
The amount of the account receivable actually written off in this period was of RMB
5,695,365.27.
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Proportion(%) Bad debt provision
Client 1 767,883,553.92 26.56 218,791,022.90
Client 2 338,964,890.80 11.73 128,687,041.80
38
Client 3 118,867,104.21 4.11 11,886,710.42
Client 4 49,710,305.99 1.72 3,657,185.10
Client 5 40,110,000.00 1.39 4,011,000.00
Subtotal 1,315,535,854.92 45.51 367,532,960.22
4. Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance in year-begin
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 107,708,874.45 77.34% 145,672,687.02 84.68%
1-2 years 25,792,370.60 18.52% 23,007,830.11 13.37%
2-3 years 2,763,347.80 1.98% 2,055,629.60 1.20%
Over 3 years 3,002,731.80 2.16% 1,286,621.66 0.75%
Total 139,267,324.65 -- 172,022,768.39 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
39
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Amount
Proportion(%)
GOTE BORG ELECTRICAL AND MECHANICAL 7,553,044.90 5.42
ENGINEERING FAR EAST LIMITED
Hangzhuo Xuesong Electric Equipment Co., Ltd. 7,120,000.00 5.11
Shanghai Jiebiao Energy Technology Co., Ltd. 5,941,642.66 4.27
Beijing Jingcheng Zeyu Energy Protection Engineering 5,370,000.00 3.86
Technology Co., Ltd.
Zhongguang International Engineering Co., Ltd. 4,918,271.09 3.53
Subtotal 30,902,958.65 22.19
5. Other account receivable
1) Detailed categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportio Proportio Book value Providing Proporti Book value
Amount Amount Amount Amount
n% n% rate % on %
Major single amount and bad
debt provision provided 3,710,320.94 10.97% 3,710,320.94 100.00% 3,710,320.94 10.92% 3,710,320.94 100.00%
individually
Bad debt provision provided on
30,117,186.12 89.03% 4,543,128.83 15.08% 25,574,057.29 30,275,426.55 89.08% 4,893,203.23 16.16% 25,382,223.32
risk groups
Total 33,827,507.06 100.00% 8,253,449.77 24.40% 25,574,057.29 33,985,747.49 100.00% 8,603,524.17 25.32% 25,382,223.32
Other receivables with individually significant amount and provision for bad and doubtful debts individually provided at the end of the reporting period.
40
End of term
Other account receivable（Other Unit）
Other receivable account Bad debt provision Providing rate% Reason
Shanghai Customs Waigaoqiao Office 3,710,320.94 3,710,320.94 100.00% Difficult to recover
Total 3,710,320.94 3,710,320.94 -- --
Other receivable accounts in the group on which bad debt provisions are provided on age basis
In RMB
End of term
Age
Other receivable account Bad debt provision Providing rate %
Subitem within 1 year
Within 1 year 16,866,162.42 843,308.14 5.00%
Subtotal within 1 year 16,866,162.42 843,308.14 5.00%
1-2 years 6,449,811.70 644,981.17 10.00%
2-3 years 4,655,921.60 1,396,776.48 30.00%
Over 3 years 910,500.00 546,300.00 60.00%
3-4 years 615,136.80 492,109.44 80.00%
4-5 years 4,329,974.54 4,329,974.54 100.00%
Over 5 years 33,827,507.06 8,253,449.77 24.40%
Total
(2)The current amount of provision for bad debts is RMB -64,824.40; recovery or payback for bad debts Amount is RMB 0.00.
(3) The actual write-off other accounts receivable
In RMB
Items Amount
Difficult to recover 285,250.00
Of which the significant write-off other accounts receivable:
41
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Luoyang Jinlong
The examined
Electric Power Difficult to
Deposit 200,000.00 and approved of No
extension recover
board of directors
command
Total 200,000.00
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 21,439,653.49 23,526,521.57
Provisional payment receivalbe 5,862,759.48 4,720,051.08
Petty cash 1,371,901.86 920,428.38
Other 5,153,192.23 4,818,746.46
Total 33,827,507.06 33,985,747.49
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the total
Closing balance
year end balance of
Name Nature Closing balance Aging of bad debt
the accounts
provision
receivable(%)
Shanghai Customs Waigaoqiao Deposit in Over 5
Office custom 3,710,320.94 10.97% 3,710,320.94
years
Investment from Indonesia
Investment 3,246,800.00 2-3 years 9.60% 974,040.00
Company receivable
42
Within 1
Export drawback receivable Export Rebates 2,581,750.03 7.63% 129,087.50
year
Guoxin Bidding Group Co.,Ltd. Bidding deposit 1,659,500.00 0-5 years 4.91% 120,100.00
Guodian Trust Bidding Co., Ltd. Bidding deposit 1,455,150.00 0-4 years 4.30% 365,115.00
Total -- 12,653,520.97 -- 37.41% 5,298,663.44
6. Inventories
(1) Details
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw
materials 458,779,130.89 458,779,130.89 461,117,423.30 461,117,423.30
Product in
process 564,392,004.76 564,392,004.76 539,174,718.21 539,174,718.21
Products in
stock 856,686,717.61 52,988,014.66 803,698,702.95 593,940,331.76 158,244.58 593,782,087.18
Total 1,879,857,853.26 52,988,014.66 1,826,869,838.60 1,594,232,473.27 158,244.58 1,594,074,228.69
(2) Inventory depreciation provision
In RMB
Beginning of Increased this period Decreased this period
Items Written back or Others End of term
term Provided Others
off
Product in
process 2,198,984.63 2,198,984.63
Products in
stock 158,244.58 52,829,770.08 52,988,014.66
Total 158,244.58 55,028,754.71 2,198,984.63 52,988,014.66
The rotary pin for inventories of the company for the period due to the disposal of suspension units, corresponding to marketing costs and
inventory provision have occurred.
7. Other current asset
43
In RMB
Items End of term Beginning of term
Bank financing products [note] 426,000,000.00 378,800,000.00
Input tax deductible 1,089,566.15 2,385,481.70
Prepaid income tax
113,279.98 884,753.86
Prepayment of other tax
989.31
Total
427,203,835.44 382,070,235.56
[Note]: Financial products are financial products and trust financial products, are in non-guaranteed floating-income short-term (or short-term redeemable) financial
products, and no active market price.
8. Sellable financial asset
(1) Details
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Available-for-sale equity
509,409,741.77 509,409,741.77 498,990,862.94 498,990,862.94
instruments
On cost basis 509,409,741.77 509,409,741.77 498,990,862.94 498,990,862.94
Total 509,409,741.77 509,409,741.77 498,990,862.94 498,990,862.94
(2) Sellable financial assets on cost basis
In RMB
Book balance Impairment provision Shareholding
Beginning of Increased this period Beginning of Increased this Decreas End
term term period ed this of
proportion Cash bonus of the
Company invested in
period term among the reporting period
investees
Bank of Hangzhou Co.,Ltd. 390,954,040.00 390,954,040.00 6.92% 27,742,368.00
Greenesol Co.(India) 5,534,773.22 5,534,773.22 37.00%
44
Hangzhou Changdi Equity Investment
27,522,049.72 11,593,515.32 39,115,565.04 2.97%
Partnership(Limited liability)
Hangzhou Steam Turbine Engineering Co.,
30,000,000.00 30,000,000.00 15.00%
Ltd.
Zhejiang Sanxin Automatic Engineering
600,000.00 600,000.00 6.00%
Co., Ltd.
Zhejiang Zhongkong Solar Energy
15,000,000.00 15,000,000.00 5.27%
Technology Co., Ltd.
Zhejiang Tianhang Steam Turbine Auxiliary
10,000,000.00 10,000,000.00 33.33% 1,000,000.00
Machinery Co., Ltd.
1,174,636.
Wuxi Xinchang Steel Tube Co., Ltd. 19,380,000.00 18,205,363.51 18.00%
49
1,174,636.
Total 498,990,862.94 11,593,515.32 509,409,741.77 -- 28,742,368.00
49
9. Fixed assets
（1）Details
In RMB
Items Houses & buildings Machinery equipment Transportation equipment Office equipment Total
I.Original value
1.Opening balance 426,487,329.57 931,262,735.06 33,152,494.69 96,116,812.56 1,487,019,371.88
45
2.Increased amount of the
4,352,583.36 41,537,856.16 1,046,145.39 4,020,784.69 50,957,369.60
period
（1）Outsourcing 3,222,341.23 866,427.74 1,478,306.75 5,618,357.77
（2）Inventory, Fixed assetsand
4,352,583.36 38,221,497.84 179,717.65 2,542,477.94 45,339,011.83
Construction project into
（ 3 ） Enterprise
consolidation
3.Decreased amount ofthe
2,800,783.43 4,412,665.00 587,651.54 7,801,099.97
period
（1）Disposal 2,795,603.43 4,412,665.00 587,651.54 7,795,919.97
Other 5,180.00 5,180.00
4.Closing balance 430,839,912.93 969,999,807.79 29,785,975.08 99,549,945.71 1,530,175,641.51
II.Accumulated depreciation
accumulated amortization
1.Opening balance 151,139,947.58 560,699,909.96 19,348,619.55 71,014,360.27 802,202,837.36
2.Increased amount of the
12,389,372.17 62,046,111.40 2,340,792.98 9,052,764.56 85,829,041.11
period
（1）Withdrawal 12,389,372.17 62,046,111.40 2,340,792.98 9,052,764.56 85,829,041.11
3.Decreased amount ofthe
period 2,279,459.72 2,784,692.57 1,824,891.76 6,889,044.05
（1）Disposal 2,279,459.72 2,784,692.57 1,824,891.76 6,889,044.05
4.Closing balance 163,529,319.75 620,466,561.64 18,904,719.96 78,242,233.07 881,142,834.42
III. Impairment provision
1.Opening balance 1,504,928.24 4,074,858.43 1,203,366.99 6,783,153.66
46
2.Increased amount of the
period
（1）Withdrawal
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 1,504,928.24 4,074,858.43 1,203,366.99 6,783,153.66
IV. Book value
1.Closing book value 265,805,664.94 345,458,387.72 10,881,255.12 20,104,345.65 642,249,653.43
2.Opening book 273,842,453.75 366,487,966.67 13,803,875.14 23,899,085.30 678,033,380.86
10. Project under construction
（1）Project under construction
In RMB
End of term Beginning of term
Items Impairment
Book balance Book value Book balance Impairment provision Book value
provision
Construction in process of parent
79,982,551.34 79,982,551.34 31,563,732.35 31,563,732.35
Company（127 projects）
Completed project of parent
35,738,532.24 35,738,532.24
Company（109 projects）
Tangxi Workshop PhaseII,
19,540,353.62 19,540,353.62 13,036,376.35 13,036,376.35
Gouneng Company
Project of steam turbine heavy
18,177,025.86 18,177,025.86 5,718,626.32 5,718,626.32
industry
Minor purchasing of equipment
1,780,341.88 1,780,341.88
by subsidiaries
47
Prepayment for equipment or
1,487,176.70 1,487,176.70 1,631,650.00 1,631,650.00
projects
Total 119,187,107.52 119,187,107.52 89,469,259.14 89,469,259.14
(2) Changes of significant construction in progress
In RMB
Capital Including
Capital
isation ：Current
isation
Progre of amount Sour
Beginning of Increased this Transferred into Other Proportion( of
Project Budget RMB x10000 End of term ss of interest of ce of
term period fixed assets decreases %)
work accumu interest
capitaliza funds
ratio
lated tion of
（%)
balance interest
Under
Construction in process of Othe
180,359,400.00 31,563,732.35 48,418,818.99 79,982,551.34 44.35% Constr
parent Company（127 projects） r
uction
Com
Completed project of parent Othe
42,710,600.00 35,738,532.24 2,441,502.30 38,180,034.54 89.61% plete
Company（109 projects） r
d
Unde
r
Tangxi Workshop PhaseII, Othe
30,000,000.00 13,036,376.35 9,743,979.74 3,240,002.47 19,540,353.62 75.93% Cons
Gouneng Company r
tructi
on
Unde
r
Project of steam turbine heavy Othe
1,794,100,000.00 5,718,626.32 12,458,399.54 18,177,025.86 1.01% Cons
industry r
tructi
on
48
Com
Minor purchasing of Othe
3,331,551.41 1,780,341.88 1,551,209.53 3,331,551.41 100.00% plete
equipment by subsidiaries r
d
Unde
r
Prepayment for equipment or Othe
2,604,195.84 1,631,650.00 972,545.84 1,117,019.14 1,487,176.70 Cons
projects r
tructi
on
Total 2,053,105,747.25 89,469,259.14 75,586,455.94 45,868,607.56 119,187,107.52 -- -- --
49
11. Intangible assets
（1）Details
In RMB
Items Land using right Patent Non-patent right Software Total
I. Original price
1.Opening balance 332,298,312.33 200,000.00 260,000.00 332,758,312.33
2.Increased amount ofthe
period 8,000,000.00 68,376.07 8,068,376.07
(1) Purchase 68,376.07 68,376.07
(2)Internal Development
(3)Increased of Enterprise
Combination
Capital invested by stockholder 8,000,000.00 8,000,000.00
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 332,298,312.33 200,000.00 8,000,000.00 328,376.07 340,826,688.40
II.Accumulated amortization
1.Opening balance 28,456,359.23 58,000.00 143,333.33 28,657,692.56
2.Increased amount of the
6,662,865.37 28,000.00 466,666.67 62,256.62 7,219,788.66
period
(1) Withdrawal 6,662,865.37 28,000.00 466,666.67 62,256.62 7,219,788.66
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 35,119,224.60 86,000.00 466,666.67 205,589.95 35,877,481.22
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
50
4.Closing balance
IV. Book value
1.Closing book value 297,179,087.73 114,000.00 7,533,333.33 122,786.12 304,949,207.18
2.Opening book value 303,841,953.10 142,000.00 116,666.67 304,100,619.77
The intangible assets by the end of the formation of the company's internal R & D accounted for 0.00% of the
proportion of the balance of intangible assets
12. Long-term amortize expenses
In RMB
Amortized expenses
Items Balance in year-begin Increase in this period Other loss Balance in year-end
Redecoration 1,041,796.52 1,050,172.00 310,672.72 1,781,295.80
Afforestation fees 372,263.00 124,087.00 248,176.00
Total 1,041,796.52 1,422,435.00 434,759.72 2,029,471.80
13. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets 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 assets difference assets
Provision for Asset
862,665,829.01 134,087,883.30 6,783,153.66 1,017,473.05
Impairment
Internal trade profit not
51,540,875.71 7,731,131.35 31,366,833.60 4,784,324.37
realized
Deductible loss 109,318,315.61 16,427,657.71 0.00 0.00
Bad debt provision 4,521,435.59 678,215.34 6,567,225.16 985,083.78
Inventory impairment
1,028,046,455.92 158,924,887.70 663,708,944.40 102,885,927.93
provision
Temporary difference
such as amortizing of 4,521,435.59 678,215.34 6,567,225.16 985,083.78
software expense
Total
1,025,181,586.07 158,924,887.70 663,708,944.40 102,885,927.93
(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
Accumulated
depreciation: 6,783,153.66 1,017,473.05 6,783,153.66 1,017,473.05
51
Total
6,783,153.66 1,017,473.05 6,783,153.66 1,017,473.05
（3）Details of the un-recognized deferred income tax assets
In RMB
Items Balance in year-end Balance in year-begin
Deductible provisional differences 137,939.89 77,605.05
Recoverable losses 5,606,704.52 2,086,222.26
Sub-total
5,744,644.41 2,163,827.31
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2017 873,013.84
2018 1,088,275.32 744,962.67
2019 903,272.74 468,245.75
2020 3,615,156.46
Total 5,606,704.52 2,086,222.26 --
17.Short-term loans
（1）Category of short-term loans
In RMB
Items Balance in year-end Balance in year-begin
Loan by pledge 10,000,000.00 10,000,000.00
Mortgage loan
75,350,000.00 88,600,000.00
Guarantee loan
100,000,000.00
Total 85,350,000.00 198,600,000.00
15. Notes payable
In RMB
Category Balance in year-end Balance in year-begin
Bank acceptance 194,226,049.73 150,763,452.14
Total
194,226,049.73 150,763,452.14
The amount payable at the end of this term is RMB 0.00.
16. Account payable
（1）List of Account payable
In RMB
Items Balance in year-end Balance in year-begin
Goods 796,106,637.10 689,452,672.67
52
Payment for equipment and projects 14,313,744.35 73,633,046.25
Total 810,420,381.45 763,085,718.92
17. Advance from customers
(1) List of advance from customers
In RMB
Items Balance in year-end Balance in year-begin
Goods 1,736,820,949.19 1,374,736,209.67
Total 1,736,820,949.19 1,374,736,209.67
18. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the Decrease in the
Year-end balance
balance current period current period
I. Short-term
43,878,015.68 593,701,438.73 590,935,963.73 46,643,490.68
compensation
II.Post-employment b
enefits - defined contr 21,794,690.41 72,391,638.02 70,572,344.65 23,613,983.78
ibution plans
Total 65,672,706.09 666,093,076.75 661,508,308.38 70,257,474.46
（2）Short-term compensation
In RMB
Items Year-beginning Increase in the Decrease in the
Year-end balance
balance current period current period
1.Wages, bonuses,
28,767,519.81 443,703,113.87 437,798,876.14 34,671,757.54
allowances and subsidies
2.Employee welfare 45,687,602.76 45,687,602.76
3. Social insurance
7,648,459.07 42,249,920.56 44,512,706.69 5,385,672.94
premiums
Inlduding ：Medical
7,056,425.63 35,725,121.71 38,034,663.13 4,746,884.21
insurance
Work injury insurance 194,756.44 2,233,265.14 2,208,986.39 219,035.19
Maternity insurance 397,277.00 4,291,533.71 4,269,057.17 419,753.54
4.Public reserves for housing 220,900.96 50,275,861.00 50,385,867.00 110,894.96
5.Union funds and staff
6,606,703.84 11,784,940.54 11,916,479.14 6,475,165.24
education fee
7.Short-term profit shareing
634,432.00 634,432.00
scheme
Total 43,878,015.68 593,701,438.73 590,935,963.73 46,643,490.68
53
(3) Details of fixed provision scheme
In RMB
Increase in this Payable in this period Balance in year-end
Items Balance in year-begin
period
1. Basic old-age
4,681,929.48 48,045,727.87 47,760,587.35 4,967,070.00
insurance premiums
2.Unemployment
664,347.08 5,439,117.17 5,571,348.34 532,115.91
insurance
3.Enterprise annuity
16,448,413.85 18,906,792.98 17,240,408.96 18,114,797.87
payment
Total 21,794,690.41 72,391,638.02 70,572,344.65 23,613,983.78
19. Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 14,415,685.85 64,272,374.25
Business Tax 26,734.00 5,570.00
Enterprise Income tax 13,503,170.56 48,371,910.29
Individual Income tax 2,576,708.03 2,395,496.64
City Construction tax 1,039,687.83 4,901,454.49
Property tax 39,647.76 1,944.00
Education subjoin 453,914.47 2,113,092.00
Locality Education subjoin 303,713.60 1,398,939.85
Stamp tax 19,236.84 43,704.27
Local water source foundation 2,382,364.75 2,584,778.06
Land use tax 1,245,105.20
Disabled security fund 2,140.20
Price adjustment foundation 1,996.88
Total 36,008,109.09 126,091,260.73
20. Other account payable
(1) Other accounts payable listed by nature of the account
In RMB
Items End of term Beginning of term
Deposit 1,462,038.45 2,424,372.25
54
Provisional account payable 22,729,311.10 26,127,465.27
Others 5,513,775.96 1,046,051.60
Total
29,705,125.51 29,597,889.12
21. Non-current liabilities due within 1 year
In RMB
Items End of term Beginning of term
Long-term loans due within 1 year 300,000.00
Total 300,000.00
Other explanation ：
22. Long-term loan
(1) Category of long-term loan
In RMB
Items End of term Beginning of term
Mortgage loan 23,400,000.00 18,500,000.00
Guaranteed loans 100,000,000.00
Total 123,400,000.00 18,500,000.00
23.Long term payroll payable
（1）List of long term payroll payable
In RMB
Items End of term Beginning of term
Drawing in administrative
330,000.00 330,000.00
restructuring
23. Deferred income
(1) Details
In RMB
Items Beginning of Increased this Decreased this
End of term Cause
term period period
Government Government
subsidy 8,252,705.00 1,448,280.00 6,804,425.00 subsidy
Total
8,252,705.00 1,448,280.00 6,804,425.00 --
(2) Details of government subsidies
In RMB
New Amount
Other Asset-related
subsidy in transferred to
Items Beginning of term change End of term or
current non-operational
s income-related
period income
55
Government subsidy Asset-related
for casting project 5,901,165.00 997,380.00 4,903,785.00
Subsidy for industrial Asset-related
upgrading by 800,000.00 160,000.00 640,000.00
provincial government
Government subsidy Asset-related
for industrial entities
from Yuhang District 534,650.00 106,930.00 427,720.00
Government in the
2nd half of 2009
Government finance Asset-related
for industrial project 345,360.00 28,780.00 316,580.00
in the 2nd half of 2006
Finance for casting Asset-related
345,360.00 28,780.00 316,580.00
project
Government subsidy Asset-related
136,920.00 11,410.00 125,510.00
for recycling economy
10K ton casting line Asset-related
78,000.00 26,000.00 52,000.00
enlarging project
Government fund for Asset-related
advanced
111,250.00 89,000.00 22,250.00
manufacturing
enterprise
Total 8,252,705.00 1,448,280.00 6,804,425.00 --
25. Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Transferr
Issuing of Bonus Subtota Balance year-end
Year-beginning ed from Other
new share shares l
reserves
Total of
754,010,400.00 754,010,400.00
capital shares
26. Capital reserves
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
Share premium 81,815,220.00 81,815,220.00
Other capital reserves 57,775,125.09 57,775,125.09
56
Total 139,590,345.09 139,590,345.09
27. Other comprehensive income
In RMB
Occurred current term
Less: accounted
Amount Less:
Beginning of as other gains Attributable to
Items occurred Income Attributable to End of term
term previously but minority
before income tax the parent co.
transferred to shareholders
tax of the expense after tax
gain/loss this after tax
period s
period
II.
Later reclassified into profit an
-640,401.72 -498,713.66 -212,350.28 -286,363.38 -852,752.00
d loss of other comprehensive i
ncome
Difference of translating of
-640,401.72 -498,713.66 -212,350.28 -286,363.38 -852,752.00
foreign currency accounts
Total of other comprehensive
-640,401.72 -498,713.66 -212,350.28 -286,363.38 -852,752.00
income
28. Surplus reserve
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
Labor safety
expenses 24,603,149.96 10,038,758.63 2,876,988.08 31,764,920.51
Total 24,603,149.96 10,038,758.63 2,876,988.08 31,764,920.51
Other notes, including changes and reason of change:：
(2) According to the “Notice for Provision of Labor Safety Fund” (.〔2012〕CQ No 16) issued by the Department
of Finance and Safety Inspection Bureau General on February 14, 2012, the labor safety fund provided this period
was RMB10,038,758.63, and RMB2,876,988.08 was used.
29. Surplus reserves
In RMB
Beginning of term Increased this Decreased this End of term
Items
period period
Statutory surplus
reserves 621,112,807.78 621,112,807.78
Total 621,112,807.78 621,112,807.78
Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making
up losses, and dividends：
30. Retained profits
In RMB
57
Items Amount of this period Amount of last period
Adjustment on retained profit at end of previous
2,911,921,943.21 2,736,802,630.30
term
Amount of retained profit at beginning of period
11,132,170.41
adjusted (+,-)
Retained profit at beginning of term after
2,911,921,943.21 2,747,934,800.71
adjustment
Plus: Net profit attributable to owners of the
-162,809,311.79 352,077,352.23
parent company
Less: Statutory surplus reserves
37,288,129.73
Common share dividend payable
75,401,040.00 150,802,080.00
Retained profit at the end of term 2,673,711,591.42 2,911,921,943.21
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 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
31.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items Income Cost Income Cost
Main
operation 2,590,940,234.32 1,801,566,917.72 3,712,245,023.30 2,356,223,787.76
Other
operation 9,131,917.31 4,374,605.05 10,086,896.83 6,901,864.74
Total 2,600,072,151.63 1,805,941,522.77 3,722,331,920.13 2,363,125,652.50
32. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Business tax
168,455.47 395,605.17
Urban construction tax
6,811,793.17 17,274,570.78
Education surcharge 3,020,314.16 7,506,915.80
Locality Education surcharge 2,013,702.28 5,004,408.18
Total 12,014,265.08 30,181,499.93
58
33. Sales expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 55,578,994.47 59,145,939.95
Transportation 46,831,719.53 36,715,265.29
Business trips 21,738,647.26 23,629,326.46
Business reception expenses 6,581,264.62 7,147,501.90
Conferences 3,090,197.44 4,657,261.07
Consulting service fee 12,052,251.77 12,069,902.23
Insurance for turbine unit 513,268.74 808,458.03
Warranty expense 3,092,751.43 7,713,784.14
Product exhibition 1,262,003.93 887,305.80
Office expenses 887,755.72 476,111.80
Others 5,073,951.70 5,340,042.77
Total 156,702,806.61 158,590,899.44
34. Administrative expense
In RMB
Items Amount of this period Amount of last period
Employees’ remunerations 310,949,457.62 315,672,788.11
R&D 179,039,951.91 160,360,992.99
Asset depreciation and amortizing 21,438,092.85 19,576,145.22
Business reception expenses 14,480,442.18 15,642,585.41
House rental, property management, water
and power 14,901,746.04 18,319,231.84
Traveling fees 7,094,343.92 6,262,888.00
Tax 9,623,889.66 8,356,544.03
Material, low-value-consumable 4,181,569.01 4,192,567.96
Office expenses 4,877,897.81 3,790,444.45
Maintaining 2,811,447.33 4,167,891.59
Others 38,822,291.15 35,776,504.63
Total 608,221,129.48 592,118,584.23
35.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expense 11,853,040.55 16,566,219.27
Less: Incoming interests 7,263,343.36 8,389,049.84
Exchange gains/losses -14,356,533.14 5,179,576.54
59
Commission 2,203,086.50 1,899,044.02
Total -7,563,749.45 15,255,789.99
36. Asset impairment loss
In RMB
Items Amount of this period Amount of last period
Bad debt losses 190,102,123.40 121,146,387.69
Fixed assets impairment losses
55,028,754.71
Total
245,130,878.11 121,146,387.69
37. Investment income
In RMB
Items Amount of this period Amount of last period
Investment gains from holding of
sellable financial assets 28,742,368.00 24,118,640.00
Gains from financing products
19,624,429.30 20,631,255.58
Total 48,366,797.30 44,749,895.58
38. Non-operational income
In RMB
Amount accounted into
Items Current term Same period of last term non-recurring gain/loss of
current term
Total of gains from disposal of
non-current assets 55,683.00
Incl. Gains from disposal of
fixed assets 55,683.00 510,865.15 55,683.00
Government subsidy 15,752,977.27 12,268,275.22 15,752,977.27
Compensation income 11,181,491.50 10,791,741.62 11,181,491.50
Payment not to be paid 1,462,564.00 404,380.80 1,462,564.00
Others 573,061.37 97,853.99 573,061.37
Total
29,025,777.14 24,073,116.78 29,025,777.14
Government subsidy reckoned into current gains/losses
In RMB
Whether the Asset-related or
income-related
impact of Whether
Amount of this Amount of last
Subsidy items subsidies on the special period period
current profit subsidies
and loss
Transferred from deferred income No No 1,448,280.00 Asset-related
Coal chemical industry, iron and steel industry COGEN
No No 5,060,000.00 Income related
50MW steam turbine series development level
Enterprise Funding by Hangzhou Economy & No No 1,330,900.00 Income related
60
Technology Development Zone Finance office
Refunding of property tax No No 1,253,825.27 Income related
Award for Enterprise R&D Investment 2011 No No 971,000.00 Income related
Land use tax return No No 868,205.00 Income related
Water fund return No No 786,093.91
Science and technology overall plan fund robot project No No 635,000.00 Income related
Financial support fund No No 635,000.00 Income related
2015 FINANCIAL Subsidy No No 500,000.00 Income related
Hangzhou Industrial and fiscal 2015 financial
No No 500,000.00 Income related
information development funding
2015 Quality and Technical Supervision grant funds No No 300,000.00 Income related
Yuhang District 2013 annual enterprise training the first
No No 287,700.00 Income related
batch of financial support fund
Quality award financial incentives No No 200,000.00 Income related
2013 second batch of quality and technical supervision
No No 120,000.00 Income related
grants
Stable employment social securitysubsidies No No 116,589.42 Income related
Hangzhou Xiacheng District financial subsidies granted
No No 100,000.00 Income related
for safety production financial subsidies
Production safety standards of financial reward fund No No 100,000.00 Income related
2014 The first safety standardization standards
No No 100,000.00 Income related
(re-evaluation) enterprise financial assistance
Other small amount subsidies No No 440,383.67 Income related
Deferred revenue transfer No No 1,448,280.00 Asset-related
Exemption of local water preservation found 2013 No No 3,536,744.90 Income related
Subsidies to Major Innovative Projects from Hangzhou
No No 1,122,000.00 Income related
Industrial Fund 2013
Award for Technical Innovative Enterprise 2013 No No 1,115,000.00 Income related
Government subsidy for 1st production of special
equipment manufacturing of strategic new industry No No 1,000,000.00 Income related
Subsidy for industrializing of technologies, Hangzhou
Economy and Technology Development Zone No No 800,000.00 Income related
Subsidy for enterprise R&D 2012
No No 630,000.00 Income related
Award for technical standard 2013
No No 540,000.00 Income related
Subsidy for innovative industrial projects 2013 of
Hangzhou No No 500,000.00 Income related
Property tax exemption 2013
No No 358,486.06 Income related
Subsidy for R&D from Hangzhou Economy &
Technology Development Zone 2012 No No 206,400.00 Income related
Exemption of Land-using Tax 2013 No No 117,059.68 Income related
Award for the Enterprise of Year 2013 No No 110,000.00 Income related
Special fund for international trading 2013 from
No No 100,000.00 Income related
Zhejiang Provincial Government
Award for Technical Projects No No 100,000.00 Income related
61
Other small amount subsidies
No No 584,304.58 Income related
Total -- -- 15,752,977.27 12,268,275.22 --
39. Non-operational expenditure
In RMB
Amount accounted into
Same period of
Items Current term non-recurring gain/loss of current
last term
term
Total of loss from disposal of
non-current assets 497,599.66
Incl. Loss from disposal of fixed
assets 497,599.66 427,820.27 497,599.66
Donations 370,000.00 610,000.00 370,000.00
Penalty paid out 506,973.23 1,495,921.10 506,973.23
Local water source foundation 3,656,045.61 5,084,356.89
Penalties 37,457.69 317,968.45 37,457.69
Others 138,304.32 1,468,231.45 172,239.32
Total
5,206,380.51 9,404,298.16 1,550,334.90
40. Income tax expenses
(1) Details
In RMB
Items Current term Same period of last term
Income tax of current term 31,881,180.92 89,793,577.50
Deferred income tax -56,038,959.77 -12,408,476.79
Total -24,157,778.85 77,385,100.71
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Current term
Total profit -148,188,507.04
Income tax expenses calculated on legal / applicable tax rate -22,228,276.06
Impact of different tax rates of subsidiaries 3,160,197.56
Impact of income tax adjustment in previous periods 1,235,288.54
Impact of non-taxable income -4,411,355.20
Impact of un-deductible costs, expenses or losses 2,978,439.52
Change on open balance of deferred income tax asset by change of
-116,838.71
tax rate
Impact of provisional differences by using unrecognized deferred
895,204.27
income tax asset of previous period
Impact of extra deduction of R&D expenses -5,665,533.49
Impact of deductible temporary difference of un-recognized
-4,905.28
deferred income tax asset of current period
62
Income tax expenses -24,157,778.85
41. Other Comprehensive income
Please find the statement in the notes of consolidated balance sheet.
42. Notes Cash flow statement
(1) Other cash received from business operation
In RMB
Items Occurred current term Occurred in previous term
Deposit interest 7,263,343.36 8,389,049.84
Government subsidies received 11,396,573.09 10,849,995.22
Deposit for bidding and other 9,164,486.54 3,669,590.00
Compensation income 204,038.50 1,594,307.63
Other 2,365,618.08 97,136.21
Total 30,394,059.57 24,600,078.90
2. Other cash paid for business activities
In RMB
Items Occurred current term Occurred in previous term
Travel expenses 48,696,007.83 38,445,727.11
Transportation 27,665,861.80 28,646,346.08
Business trips 21,637,189.33 22,417,855.72
Maintaining 2,824,225.05 4,191,987.22
Property management and civil
15,113,839.76 25,466,837.10
services
Deposit for bidding and others 1,086,259.96 7,277,860.47
Office expenses 5,767,669.91 6,754,541.50
Conferences 3,308,152.54 4,473,984.77
Consulting service fee 12,970,940.60 12,316,585.78
Transportation and vehicles 7,467,278.69 6,970,905.17
Other 35,568,063.63 29,188,046.33
Total 182,105,489.10 186,150,677.25
3. Other investment-related cash received
In RMB
Items Occurred current term Occurred in previous term
Repurchasing of trusteeship 1,744,905,999.95 1,810,600,000.00
Principal and interest of loans
retrieved from Hangzhou Hengsheng 2,594,104.88
Thermal Power Equipment Co., Ltd.
Total 1,744,905,999.95 1,813,194,104.88
4. Other cash paid for investment activities
63
In RMB
Items Current term Same period of last term
Purchasing of financial products 1,792,105,999.95 1,871,400,000.00
Total 1,792,105,999.95 1,871,400,000.00
5. Other financing-related cash received
In RMB
Items Current term Same period of last term
Financing notes received from
HSTG 300,000,000.00
Total 300,000,000.00
6. Other cash paid for financing activities
In RMB
Items Current term Same period of last term
Repayment of financing notes to
HSTG 300,000,000.00
Total 300,000,000.00
43. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
In RMB
Amount of the Current Amount of the Previous
Supplementary Info.
Term Term
I. Adjusting net profit to cash flow from operating
-- --
activities
Net profit -124,030,728.19 423,946,719.84
Add: Impairment loss provision of assets 245,130,878.11 121,146,387.69
Depreciation of fixed assets, oil and gas assets and
85,829,041.11 82,042,922.86
consumable biological assets
Amortization of intangible assets 7,219,788.66 6,742,865.49
Amortization of Long-term deferred expenses 434,759.72 264,386.48
Loss on disposal of fixed assets, intangible assets and other
435,942.14 -83,044.88
long-term deferred assets
Loss on scrap of fixed assets
5,974.52
Financial cost 5,284,099.92 16,322,020.76
Loss on investment -48,366,797.30 -44,749,895.58
Decrease of deferred income tax assets -56,038,959.77 -12,408,476.79
Decrease of inventories -287,824,364.62 -71,411,960.25
64
Decease of operating receivables 135,158,915.99 -98,723,280.79
Increased of operating Payable 382,311,670.05 -149,391,703.55
Other 10,127,552.71 10,032,030.64
Net cash flows arising from operating activities 355,677,773.05 283,728,971.92
II. Significant investment and financing activities that
-- --
without cash flows:
3．Movement of cash and cash equivalents：
-- --
Ending balance of cash 689,224,662.53 562,763,561.50
Less: Beginning balance of cash equivalents 562,763,561.50 810,928,644.47
Net increase of cash and cash equivalents 126,461,101.03 -248,165,082.97
（2）Composition of cash and cash equivalents
In RMB
Items End of term Beginning of term
1) Cash 689,224,662.53 562,763,561.50
Incl: Cash in stock 391,106.17 307,654.85
Bank savings could be used at any time 688,833,556.36 562,455,906.65
3) Balance of cash and cash equivalents at end of
689,224,662.53 562,763,561.50
term
(3) Monetary capital not categorized as cash or cash equivalents
Items End of term Beginning of term
Security deposit not attributable as cash or cash equivalent 62,372,133.71 51,194,502.41
Sub-total 62,372,133.71 51,194,502.41
44. Assets with limitation on ownership or using rights
In RMB
Items Closing book value Causation of limitation
Used as security for issuing of acceptance
Monetary capital 62,372,133.71
drafts and bill of guarantees
Fixed assets Securities for loans
126,746,585.06
Intangible assets Securities for loans
20,781,028.64
Total
209,899,747.41 --
45. Monetary items in foreign currencies
(1) Details
In RMB
Items Balance at end of period Exchange rate Translated to RMB at
end of period
65
Monetary capital -- -- 119,133,836.90
Incl. USD 16,745,776.61 6.4936 108,740,375.00
EURO 1,167,219.44 7.0952 8,281,655.37
HKD 5.51 0.8378 4.62
JPY 3,531.00 0.0539 190.22
Indonesia Rubi 4,505,170,987.00 0.000469 2,110,878.30
SWF 114.56 6.4018 733.39
Account receivable -- -- 167,308,082.78
Incl：USD 24,131,152.87 6.4936 156,698,054.27
Euro 1,334,724.51 7.0952 9,470,137.34
Indonesia Rubi 1,965,545,080.00 0.000469 920,947.60
SGD 47,726.12 4.5875 218,943.57
Account payable 9,835,665.12
Incl：USD 1,395,108.56 6.4936 9,059,276.95
Euro 4,150.86 7.0952 29,451.18
Indonesia Rubi 1,594,160,546.00 0.000469 746,936.99
Other receivable 3,246,800.00
Incl：USD 500,000.00 6.4936 3,246,800.00
Other payable 253,156.40
Indl：Indonesia Rubi 540,302,517.00 0.000469 253,156.40
(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.
Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd. has its business located in Indonesia Rupee is
the pricing and booking currency of business operation.
VIII. Change in consolidation scope
1.Change in consolidation scope due to other cause
Description of consolidation scope changes and other causes (eg, the new subsidiary, the subsidiary liquidation, et
c.) and related conditions:
Way of
Increased of Consolidation scope Date of acquiring Capital input Proportion %
acquiring equity
Zhejiang Zhongrun Fuel Engine Newly
May 22, 2015 10,000,000 55.55%
Technology Co., Ltd. incorporated
IX. Equities in Other Entities
(I) Equity in major subsidiaries
1. Composition of major subsidiaries
Share proportion %
Main business Business Way
Name of the subsidiaries Reg. Add. Direct Indirect
location property
of
66
obtain
Zhejiang Steam Trubine Packaged Technologies Incorp
Hangzhou Hangzhou
Development Co., Ltd. Manufacturing 70.86% oratio
Zhejiang Zhejiang
n
Incorp
Hangzhou Zhongneng Steam Turbine Power Co., Ltd. Hangzhou Hangzhou
Manufacturing 60.83% oratio
(Zhongneng Co.) Zhejiang Zhejiang
n
Incorp
Hangzhou Hangzhou
Hangzhou Steam Turbine Casting Co., Ltd. Manufacturing 51.00% oratio
Zhejiang Zhejiang
n
Incorp
Hangzhou Steam Turbine Machinery Equipment Co., Hangzhou Hangzhou
Manufacturing 52.00% oratio
Ltd. Zhejiang Zhejiang
n
Incorp
Hangzhou Steam Turbine Auxiliary Machinery Co., Hangzhou Hangzhou
Manufacturing 87.53% oratio
Ltd. (Auxiliary Machinery Co.) Zhejiang Zhejiang
n
Incorp
Zhejiang Turbine Import & Export Co., Ltd. (Turbine Hangzhou Hangzhou
Commerce 100.00% oratio
Co.) Zhejiang Zhejiang
n
Incorp
Hangzhou Steam Turbine Heavy Industry Co., Ltd. Hangzhou Hangzhou
Manufacturing 100.00% oratio
(Steam Turbine Heavy Industry) Zhejiang Zhejiang
n
Incorp
Zhejiang Huayuan Steam Turbine Machinery Co., Hangzhou Hangzhou
Manufacturing 75.00% oratio
Ltd. (Huayuan Co.) Zhejiang Zhejiang
n
Incorp
Hangzhou Guoneng Steam Turbine Engineering Co., Hangzhou Hangzhou
Manufacturing 75.00% oratio
Ltd. (Guoneng Co.) Zhejiang Zhejiang
n
Incorp
Xinjiang Taifeng Hangzhou Steam Turbine Packaged
Xinjiang Xinjiang Manufacturing 51.00% oratio
Technology Development Co., Ltd.
n
Incorp
Hangzhou Bypass Mechanical & Electrical Hangzhou Hangzhou
Manufacturing 70.00% oratio
Equipment Co., Ltd. Zhejiang Zhejiang
n
Incorp
Shijiazhuang Hangneng Steam Turbine Technology Shijiazhuang Shijiazhuang
Service 60.00% oratio
Service Co., Ltd. Hebei Hebei
n
Kunming Hangzhong Steam Turbine Technology Incorp
Kunming Yunnan Kunming Yunnan Service 60.00%
Sevrvice Co., Ltd. oratio
67
n
Incorp
Wulumuqi Hangzhongneng Steam Turbine Qulumuqi Qulumuqi
Service 60.00% oratio
Technology Sevrvice Co., Ltd. Xingjiang Xingjiang
n
Incorp
Tangshan Hangneng Steam turbine Technology
Tangshan Hebei Tangshan Hebei Service 60.00% oratio
Sevrvice Co., Ltd.
n
Incorp
Jilin Hangzhongneng Steam turbine Technology
Jilin Jilin Service 60.00% oratio
Sevrvice Co., Ltd.
n
Incorp
Guangxi Hangzhongneng Steam turbine Technology
Nanning Guangxi Nanning Guangxi Service 60.00% oratio
Sevrvice Co., Ltd.
n
Incorp
Chengdu Hangzhongneng Steam turbine Technology
Chengdu Sichuan Chengdu Sichuan Service 60.00% oratio
Sevrvice Co., Ltd.
n
Incorp
Luoyang Hangzhongneng Steam turbine Technology
Luoyang Henan Luoyang Henan Service 60.00% oratio
Sevrvice Co., Ltd.
n
Incorp
Hangzhou Hangzhou
Hangzhou Steam turbine Boiler Co., Ltd. Manufacturing 50.00% oratio
Zhejiang Zhejiang
n
Incorp
Hangzhou Zhongneng Steam turbine (Indonesia) Co.,
Indonesia Indonesia Manufacturing 70.00% oratio
Ltd.
n
Incorp
Hangzhou Hangzhou
Hangzhou Kaineng Casting Co., Ltd. Manufacturing 100.00% oratio
Zhejiang Zhejiang
n
Incorp
Zhejiang Runhong Burming Machine Engineering Hangzhou Hangzhou
Manufacturing 58.00% oratio
Co., Ltd. Zhejiang Zhejiang
n
Incorp
Zhejiang Zhongrun Burning machine Technology
Huzhou Zhejiang Huzhou Zhejiang Manufacturing 55.55% oratio
Co., Ltd.
n
（2）Major non-fully-Owned subsidiaries
In RMB
Share protion Gains/loss of the Dividend announced Balance of eqiuty of
Name of the subsidiaries
of minor period attributable to in the period to minor minor shareholders at
68
shareholders minor shareholders shareholders end of period
Zhejiang Steam trubine Packaged
29.14% 2,701,452.58 4,459,185.00 33,022,226.42
Technology Development Co., Ltd.
Hangzhou Zhongneng Steam
39.17% 8,947,688.57 11,751,600.00 145,574,590.73
turbine PowerCo., Ltd.
Hangzhou Steam Turbine Casting
49.00% 2,777,180.98 9,800,000.00 74,254,700.04
Co., Ltd.
Hangzhou Steam Turbine
48.00% 22,960,442.64 21,600,000.00 70,770,558.32
Machinery Equipment Co., Ltd.
Hangzhou Steam Turbine Auxiliary
12.47% 2,589,696.45 7,980,800.00 26,789,819.41
Machinery Co., Ltd.
Notes：
According to the articles of association of Huayuan Co., Hong Kong Ruiyun Enterprise Co., Ltd. – the overseas
investor – will no longer enjoy the equity of the joint-venture as soon as the return reaches RMB10.50 million. As
of December 31, 2012, Hong Kong Ruiyun Enterprise Co., Ltd. had received RMB10.50 million of dividend,
therefore the minority shareholder’s equity is neutralized to zero.
According to the articles of association of Guoneng Co., Hong Kong Ruiyun Enterprise Co., Ltd. – the overseas
investor – will no longer enjoy the equity of the joint-venture as soon as the return reaches RMB20 million. As of
December 31, 2011, Hong Kong Ruiyun Enterprise Co., Ltd. had received RMB20 million of dividend, therefore
the minority shareholder’s equity is neutralized to zero.
69
3 Material financial information of major non-fully-owned subsidiaries
In RMB
End of term Beginning of term
Subsidiaries Name Non-current Current Non-current Total of Non-current Non-current Total of
Current assets Total of assets Current assets Total of assets Current liabilities
assets liabilities liabilities liability assets liabilities liability
Zhejiang Steam trubine
260,227,660.6 282,936,750.3 190,272,137.4 190,272,137.4 242,916,104.7 184,460,725.
Packaged Technology 22,709,089.71 30,828,926.61 273,745,031.39 184,460,725.05
3 4 9 9 8 05
Development Co., Ltd.
Hangzhou Zhongneng Steam 804,557,533.7 886,147,802.2 548,736,452.5 549,066,452.5 654,074,224.9 114,095,212.1 442,548,457.
81,590,268.49 330,000.00 768,169,437.01 442,218,457.32 330,000.00
7 6 5 5 1 0 32
turbine PowerCo., Ltd.
Hangzhou Steam Turbine 223,797,190.8 199,438,595.7 423,235,786.6 224,664,623.5 254,419,078.5 249,835,889.1 212,563,075.4 26,106,805.0 283,603,772.
29,754,455.00 462,398,964.61 257,496,967.62
5 8 3 2 2 2 9 0 62
Casting Co., Ltd.
Hangzhou Steam Turbine
185,381,983.0 206,715,259.0 138,628,223.5 76,377,497.0
Machinery Equipment Co., 21,333,275.97 59,276,595.83 59,276,595.83 20,941,588.24 159,569,811.80 76,377,497.04
6 3 6 4
Ltd.
Hangzhou Steam Turbine
400,114,948.2 112,067,629.6 512,182,577.9 272,629,536.6 273,057,256.6 135,991,610.1 49,629,812.1
Auxiliary Machinery Co., 427,720.00 62,538,428.35 198,530,038.54 49,629,812.11
4 8 2 3 3 9 1
Ltd.
In RMB 元
Amount of current period Amount of previous period
Subsidiaries Name Cash flow for business Cash flow for business
Turnover Net profit Total Misc Gains Turnover Net profit Total Misc Gains
activities activities
Zhejiang Steam trubine Packaged
216,220,744.25 10,511,797.60 10,511,797.60 16,070,589.71 231,731,289.67 18,414,619.99 18,414,619.99 23,432,599.74
Technology Development Co., Ltd.
Hangzhou Zhongneng Steam turbine
704,991,946.83 20,863,372.38 19,240,043.27 39,621,832.18 713,411,107.53 81,996,808.93 81,996,808.93 -21,698,214.35
PowerCo., Ltd.
70
Hangzhou Steam Turbine Casting Co.,
293,407,553.21 5,944,783.76 5,944,783.76 36,007,460.88 307,664,308.13 12,028,805.45 12,028,805.45 6,568,378.24
Ltd.
Hangzhou Steam Turbine Machinery
190,469,672.28 47,834,255.49 47,834,255.49 26,726,329.69 193,261,167.91 46,709,357.68 46,709,357.68 13,968,622.41
Equipment Co., Ltd.
Hangzhou Steam Turbine Auxiliary
393,879,695.72 33,520,334.09 33,520,334.09 78,733,368.09 152,984,962.37 52,105,904.36 52,105,904.36 18,621,347.18
Machinery Co., Ltd.
71
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.
The credit risks of the Company are mainly composed by bank savings and receivable accounts. Following
measurements are adopted to control these risks:
1. Bank deposit
The Company puts its bank savings in financial institutions with higher credit ranks, therefore with lower risks.
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.
(1) Keep constant awareness on risks and supervising receivable accounts.
(2) Keep tracking every detail of business and accounting practices. Trade payment records are maintained as
important references to the ranking of client credit. Dynamic management is performed on the clients latest
situation and policies are made relatively.
(3) Keep on with direct sales and ensure every contract is followed by corresponding personnel.
For the Company only trade with parties with good credit ranks, no security property is needed. As of December
31,2015, the credit risks feature collectiveness within the Company. 45.07%(48.95%,December 31, 2014) of
the receivable accounts were attributable to top 5 clients. The Company holds no property as pledge or other
credit ranking up.
Analyzing of receivable accounts neither due nor impaired, and those have due but not impaired:
Items End of term
Not overdue and not Overdue but not impaired Total
impaired Within 1 1-2 year Over 2 years
year
Bill receivable 680,518,943.49 680,518,943.49
Subtotal 680,518,943.49 680,518,943.49
(Continue)
Items Beinning of term
Not overdue and not Overdue but not impaired Total
impaired Within 1 1-2 year Over 2 years
year
Bill receivable 701,109,938.01 701,109,938.01
Subtotal 701,109,938.01 701,109,938.01
(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.
72
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
End of term
Items Book value Contract amount not within 1 year 1-3 years Over 3
discounted years
Financial
liabilities
Short-term loans 85,350,000.00 89,602,537.84 89,602,537.84
Notes payable 194,226,049.73 194,226,049.73 194,226,049.73
Non-current 300,000.00 331,550.05 331,550.05
liabilities due to 1
year
Long-term loan 123,400,000.00 142,672,805.36 142,672,805.36
Account payable 810,420,381.45 810,420,381.45 810,420,381.45
Other account 29,705,125.51 29,705,125.51 29,705,125.51
payable
Subtotal 1,243,401,556.69 1,266,958,449.94 1,124,285,644.58 142,672,805.36
(Continue)
Items Beginning of term
Book value Contract amount not within 1 year 1-3 years Over 3
discounted years
Financial
liabilities
Short-term 198,600,000.00 205,225,558.91 205,225,558.91
loans
Notes payable
150,763,452.14 150,763,452.14 150,763,452.14
Long-term 18,500,000.00 21,917,202.85 21,917,202.85
loans
Account 763,085,718.92 763,085,718.92 763,085,718.92
payable
73
Other account
payable 29,597,889.12 29,597,889.12 29,597,889.12
Sub-total
1,160,547,060.18 1,170,589,821.94 1,148,672,619.09 21,917,202.85
(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.
As of December 31, 2015, the Company had raised RMB83,850,000.00 (Dec 31 2014: RMB58,700,000.00) on
floating interest rates. In case of other variables remain unchanged, if the interest rates change, reasonably and
possibly, for 50% of the benchmark, the total profit and shareholders’ equity will be free of major impact.
2. Foreign currency risks
XI. Related parties and related transactions
(I) Related parties
1. Parent company of the Company
Name of the Shareholding of Voting rights of the
Reg. Add. Business property Registered capital
parent co. the parent co. parent co. %
Hangzhou Steam
Hangzhou China Manufacturing 800 mil 63.64% 63.64%
Turbine Group
Notes
(1) Place of registration, organizational form and address of headquarters.
Hangzhou Steam Turbine Power Group Co. Ltd., is a solely state-owned limited liability company approved
by Hangzhou government. It was registered in Hangzhou administrative bureau for industry and commerce on
May 7, 1998, with the License of The Business Corporation now numbered 330100000031779. Place of
registration: Hangzhou. Legal representative: Zhonghai Nie. Registered capital of the company is 800 million
Yuan, fully contributed by State-owned Assets Supervision and Administration Commission of Hangzhou
government.
The predecessor of Hangzhou Steam Turbine Power Group Co. Ltd., is turbine factory, and it was built to be
Hangzhou Steam Turbine Group Power Co. Ltd., on Dec. 14, 1992, officially replied and approved by files
numbered [1992]68 by Hangzhou Commission for Structural Reforms, numbered [1992]883 by Hangzhou
planning commission and numbered [1992]705 by Hangzhou economic committee. In June, 1995, Hangzhou
Steam Turbine (Group) corporation reorganized to be Hangzhou Steam Turbine Group Co. Ltd., according to file
No. [1995]61 published by Hangzhou government and file No.[1995]112 published by the government of
Zhejiang province and state economic and trade commission, becoming solely state-owned corporation with
registered capital 156.85 million authorized by Hangzhou government. In Jan. 2008, according to decisions of the
second-session 32nd board meeting and the brief response note of the official document processing issued by the
Hangzhou government State-owned Assets Supervision and Administration Commission “SASACJF [2008] No.
2 ”, and respond opinion and revised regulation of No.4 Hangzhou government State-owned Assets Supervision
and Administration Commission, the registered capital of the Group increased by 343.15 million. In Feb. 2008,
the Group completed industrial and commercial change procedure, with registered capital 500 million after
change. In Sept. 2012, according to the Group’s board decision and the brief response note of the official
document processing issued by and revised regulation received from the Hangzhou government State-owned
Assets Supervision and Administration Commission “SASACJF [2008] No. 33 ” , the Group increased by 300
74
million in registered capital. In Nov. 2012, the Group settled the industry and commercial change procedure, with
registered capital of 800 million after change.
(2) Nature of business and main business scope
Hangzhou Steam Turbine Group is a group company, whose business covers manufacture, process and textile
machine, paper manufacturing machine, pump, casting, electric tool, variable gear devices, heat exchanger,
numerical control and digital display devices and spare part of above equipment. It undertakes overseas machinery
industry and domestic international bidding projects and equipment, material export, appointing contract workers
needed by above foreign projects. It also involves thermoelectric project contracting and whole set of equipment,
wholesale and retail products, spare parts and technology development, consulting, service of products mentioned
above produced by group member enterprises. It provides raw materials, equipment, spare parts needed by group
member enterprises for production and water, electricity and gas supply for subordinate companies.
Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of the
Company.。
2.Subsidiaries
For details of subsidiaries please go to the statement of equities in other entities.
3. Other related parties
Name of the related parties Relationship with the Company
Hangzhou Steam turbine Automobile sales service Co.,
Affiliate of the Group
Ltd.
Hangzhou Hangfa Power Generating Equipment Co.,
Affiliate of the Group
Ltd.
Hangzhou Nanfangtongda Gears Co., Ltd. Affiliate of the Group
Hangzhou Nanhua Wooden Packaging Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Industrical Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Technologies Co., Ltd. Affiliate of the Group
HSTG Technology Association Affiliate of the Group
angzhou Steam Turbine Engineering Co., Ltd. Affiliate of the Group
HSTG Equipment Engineering Co., Ltd. Affiliate of the Group
Hangzhou Relian Group Co., Ltd. Affiliate of the Group
Zhejiang Hanglian Steel & Iron Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Electronic Valve Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Compressor Co., Ltd. Affiliate of the Group
HSTG(Hangzhou) United Institutes Co., Ltd. Affiliate of the Group
Hangzhou Wandong Electric Co., Ltd Affiliate of the Group
Greenesol Co.(India) Affiliates of the auxiliary Co
Other explanation
4.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
Related parties Content Reporting period Trading limit Over the Prior period
75
approved trading
limit or not
Hangzhou Steam Turbine Automobile freight,
Sales Service Co., Ltd. repairing fee 58,984,034.85 64,000,000.00 No 59,249,879.59
Hangzhou Hangfa Power Generating Generators
Equipment Co., Ltd. 126,685,952.21 120,000,000.00 Yes 119,833,954.27
Hangzhou Nanhua Wooden Packaging Packaging
Co., Ltd. materials 11,948,339.94 12,000,000.00 No 12,526,915.52
Hangzhou Nanfang Tongda Gears Co., Gear boxes
Ltd. 5,421,380.35 16,000,000.00 No 16,252,887.19
Hangzhou Steam Turbine Industrial Co. Raw
materials,
Industrial 1,286,863.61 945,078.92
cooperation
Hangzhou Steam Turbine Group Equipment
maintenance 331,131.48 182,857.89
HSTG Technology Association Industrial
cooperation 16,923.08 3,760.68
Greenesol Co. (India) Generators 25,924,364.86 50,000,000.00 No 49,868,293.64
HSTG (Hangzhou) United Institutes Co., Technical
Ltd. service 200,000.00 11,400.00
Hangzhou Steam Turbine Engineering
Law material 1,538,461.54
Co., Ltd.
Hangzhou Steam Turbine Electronic Tube
Law material 770,000.03
Co., Ltd.
Industrial
Hangzhou Wandong Electric Co., Ltd. 13,743.59
cooperation
Subtotal 233,121,195.54 No 258,875,027.70
Related transactions regarding sales of goods or providing of services
In RMB
Subjects of the related
Related parties Current term Same period of last term
transactions
Hangzhou Hangfa Power Generating Cast parts, industrial
Equipment Co., Ltd. co-operation 11,111,122.55 10,527,798.78
Hangzhou Steam Turbine Steam turbine
188,034,438.04 25,040,660.40
Engineering Co., Ltd.
Hangzhou Steam Turbine Group Industrial cooperation 94,339.62 94,339.62
Hangzhou Steam Turbine
Small amount materials 408.87 982.30
Automobile Sales Service Co., Ltd.
Hangzhou Nanhua Wooden
Small amount materials 854.70
Packaging Co., Ltd.
Greenesol Co.(India) Steam turbine 1,885,925.23 2,198,986.74
Hangzhou Steam Turbine Compressor,Industrial
620,733.76
Compressor Co., Ltd. cooperation
Subtotal 201,747,822.77 37,862,767.84
2. Rental with related parties
76
The Company as leasee
In RMB
Category of asset Rental recognized this Rental recognized
Name of the owner
for rent period previous period
Hangzhou Steam Turbine Group Houses & plants 3,241,447.16 6,433,118.75
Engineering
Hangzhou Steam Turbine Group 1,760,683.76
Equipment
Hangzhou Steam Turbine Group Land using right 3,545,791.00 3,545,791.00
Hangzhou Steam Turbine Automobile
Site leasing 5,464,123.22 5,242,213.66
Sales Service Co., Ltd.
Subtotal 14,012,045.14 15,221,123.41
Notes
3. Guarantees among the related parties
The Company as the provider
In RMB
Guarantee Guarantee Completed or
The beneficiary Amount guaranteed
Start date Expired on not
Hangzhou Steam
100,000,000.00 December 18,2017 December 18,2019 No
Turbine Group
4. Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements 8,825,900.72
5. Other related transactions
(1) Service and power supply
HSTG supplies water and power to the Company and some of the subsidiaries amounted to RMB15,348,844.59
this period.
Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. provided transportation to the Company’s
employees and RMB2,475,553.85 was paid this period.
Hangzhou Steam Turbine Industry Co., Ltd. provided cleaning services to the Company and RMB1,166,665.00
was paid this period.
(2) Using of trademark
The Company pays RMB1,698,113.20 to HSTG for using of the registered trademark.
(3) Expenses paid on behalf the Company
Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. paid RMB9,797,655.09 of tarrif on behalf of
Turbine Co. during the period.
5.Payables and receivables of the related party
（1）Receivable
In RMB
Projects Related parties End of term Beginning of term
77
Bad debt Bad debt
Book balance Book balance
provision provision
Account Hangzhou Steam Turbine
49,710,305.99 3,657,185.10 8,351,855.99 1,693,436.30
payable Engineering Co., Ltd.
Hangzhou Hangfa Power
16,174,291.35 972,428.47 10,824,277.96 541,213.90
Generating Equipment Co., Ltd.
Hangzhou Nanhua Wooden
310,060.00 186,036.00 1,017,560.00 447,753.00
Packaging Co., Ltd.
Hangzhou Steam Turbine Group 236,000.00 11,800.00
Hangzhou Steam Turbine Group 258,500.00 163,500.00 258,500.00 115,100.00
Hangzhou Nanfangtongda Gears
16.48 0.82 1,149.30 57.47
Co., Ltd.
Hangzhou Nanfangtongda Gears
4,434.00 2,660.40
Co., Ltd.
Greenesol Co. (India) 14,642,682.67 8,785,609.60 13,797,981.90 5,519,192.76
Subtotal 81,331,356.49 13,776,059.99 34,255,759.15 8,319,413.83
Hangzhou Steam Turbine
Prepayment 2,270,000.00
Engineering Co., Ltd.
Hangzhou Steam Turbine
Electronic Valve Co., Ltd. 26,834,825.00 22,009,425.00
Hangzhou Steam Turbine
Electronic Valve Co., Ltd. 900,900.00
Hangzhou Steam Turbine Group 107,715.92
Subtotal 29,104,825.00 23,018,040.92
（2）Payables
In RMB
Projects Related parties End of term Beginning of term
Account Hangzhou Hangfa Power Generating Equipment
payable Co., Ltd. 100,434,643.05 79,049,778.95
Greenesol Co. (India) 8,495,882.02 11,133,713.63
Hangzhou Steam Turbine Group 5,251,995.90 1,134,000.82
Hangzhou Steam Turbine Automobile Sales
2,737,416.93 1,458,189.74
Service Co., Ltd.
Hangzhou Nanhua Wooden Packaging Co., Ltd. 404,433.00 313,983.80
Hangzhou Steam Turbine Engineering Co., Ltd. 380,000.00
HSTG (Hangzhou) United Institutes Co., Ltd. 153,000.00
Hangzhou Nanfangtongda Gears Co., Ltd. 112,273.00 982,000.00
Hangzhou Steam Turbine Industrial Co. 8,440.00 203,484.86
78
Hangzhou Steam Turbine Group 1,134,000.82
Subtotal 117,978,083.90 94,275,151.80
Advances
Hangzhou Steam Turbine Engineering Co., Ltd. 55,573,740.00 15,979,200.00
received
Hangzhou Steam Turbine Compressor Co., Ltd. 14,235,000.00 14,190,000.00
Subtotal 69,808,740.00 30,169,200.00
Other account
Hangzhou Steam Turbine Group 6,050,024.82 5,688,406.79
payable
Subtotal 6,050,024.82 5,688,406.79
6. Related party commitment
XII. Commitment and Contingency Issues
(I) Material commitment issues
Significant contingency at balance sheet date
1. External investment contracts engaged but not exercised or not fully exercised and related financial outflow
The Company invested RMB10 million to be one of the partners of Hangzhou Changdi Share Investment
Partnership (with limited liabilities) in 2011. This was the initial input of capital, and the Company committed to
input supplementary capital when necessary according to the portion of interests, but not greater than RMB50
million accumulative in 8-11 years during the existing period of the firm. Extra RMB11.5935 million was inputted
in , accumulated to RMB39.1155 million thereof.
2. Outsourcing contracts engaged with large amounts and are under processing or preparation
Capital commitment related to construction of workshops or purchasing of equipment by the Company or
subsidiaries is amounted to RMB25. 138 million.
XIII. Major contingencies on balance sheet date
1.Major non adjusting events
In RMB
Items Content Influence Reason
To improve the return on investment of
company funds, the company intends to use
its own funds of RMB 50 million to invest
in Hangzhou Jushi investment partnership
Major overseas (limited partnership), the company as a
limited partner, in order to limit the amount Yet the actual contribution
investment of capital subscribed by foreign limited
liability. The 26th session of the 6th matter
by the company Board of Directors. As
financial report, the company has not yet
actual contribution to the partnership.
1. Profit distribution
N/A
XIV. Other Material Issues
A.Segment information
1. Recognition of segments and accounting policies
Business segments are determined according to the administration structure, management requirement, and
internal reporting mechanism. Segments are parts of the Company’s business satisfying all of the following
conditions:
(1) Generate revenue and expenses in daily operations;
(2) Operational results can be assessed by the management to decide the resources to be allocated;
79
(3) Financial position, business results, and cash flow of the part is accessible through analyzing.
2. Reasons of not being able to report about the segments
The Company’s business range is relatively narrow and mainly involved in producing and selling of steam
turbines, gas turbines and auxiliary machinery and parts. It is regarded as an integral business by the management.
Therefore segment report is not included in this report.
B.Other important impact on investor decision-making transactions and events
Controlling shareholder of the company, Hangzhou Steam Turbine Group, is planning mixed ownership
reform. We are the biggest shareholding subsidiary corporation in manufacturing industry of subordinate company
of the Hangzhou Steam Turbine Group . In this mixed ownership reform, it will be involved into reform range as
the core business and property taking-in company of the Hangzhou Steam Turbine Group industry plate. If the
ownership structure of Hangzhou Steam Turbine Group changes significantly, it will have a profound influence on
the government structure and operational mechanism for the company’s future. But that matter is now being
pushed on, and there is still pretty much uncertainty in mixed ownership reforms.
80
XV. Notes s of main items in financial reports of parent company
. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Bad debt provision
Book balance Bad debt provision Book balance Bad debt provision
Category
Book value Proportio Book value
Amount Proportion Amount Proportion Amount Proportion Amount
n
Accounts receivable
portfolio subject to
2,236,823,799.21 98.68% 599,432,126.23 26.80% 1,637,391,672.98 2,455,949,951.86 98.80% 444,969,697.87 18.12% 2,010,980,253.99
impairment by credit
risk
Account receivable
of individual not
significance subject
29,819,607.69 1.32% 29,819,607.69 100.00% 29,819,607.69 1.20% 29,819,607.69 100.00%
to individually
assessment for
impairment
Total 2,266,643,406.90 100.00% 629,251,733.92 100.00% 1,637,391,672.98 2,485,769,559.55 100.00% 474,789,305.56 19.10% 2,010,980,253.99
Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
81
Account receivable in the group which are provided bad debt provision on age basis
In RMB
End of term
Age
Book balance Bad debt provision Providing rate%
Subitem within 1 year
Within 1 year 488,212,821.42 24,410,641.07 5.00%
Subtotal within 1 year 478,212,821.42 23,910,641.07 5.00%
1-2 years 526,046,749.31 52,604,674.93 10.00%
2-3 years 517,304,017.26 155,191,205.18 30.00%
3-4 years 243,626,138.33 146,175,683.00 60.00%
4-5 years 118,292,313.95 94,633,851.16 80.00%
Over 5 years 156,235,678.58 156,235,678.58 100.00%
Total 2,049,717,718.85 629,251,733.92 30.70%
Receivable accounts combined within consolidating range for providing of bad debt provisions
End of term
Name of the Group Providing
Book balance Bad debt provision
rate %
Combinations of related 216,925,688.05
transactions in consolidation
range
Sub-total
216,925,688.05
Remarks on deciding of combinations:
Receivable accounts and other receivable accounts within the consolidation range are tested for impairment
individually. No bad debt provision is provided in case there is no impairment occurred.
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB159,201,949.70 ; recovery or payback for bad debts
Amount is RMB0.00.
(3) Receivable accounts actually written off in the report period
In RMB
Items Amount
Difficult to recover 4,739,521.34
Of which the significant actual write-off accounts receivable:
In RMB
Nature of
Reason for Arising from related
Name account Amount written off Verification procedures
write-off transactions (Y/N)
receivables
Difficult to The examined and adopted to
Zhejiang Jiahua Energy Chemical Co., Ltd. Goods 1,920,000.00 No
recover Board of directors
Oriental Electrical Group .Beijing Difficult to The examined and adopted to
Goods 1,599,316.10 No
Company
recover Board of directors
82
China Petrochemical Group Sichuan Vigny Difficult to The examined and adopted to
Goods 290,000.00 No
Lun factory
recover Board of directors
Difficult to The examined and adopted to
Other Goods 930,205.24 No
recover Board of directors
Total -- 4,739,521.34 -- -- --
Explanation for write-off of account receivables:
（4）The ending balance of other receivables owed by the imputation of the top five parties
Portion in balance of receivable
Name of the companies Book balance Bad debt provision
accounts (%)
Client 1 710,533,035.92 31.35 199,807,870.90
Client 2 338,964,890.80 14.95 128,687,041.80
Xiuping Company 142,218,190.42 6.27
Complete company 68,455,845.24 3.02
Client 5 77,454,736.96 3.42 56,802,786.87
Subtotal l 1,337,626,699.34 59.01 385,297,699.57
83
杭汽轮机股份有限公司 2015 年年度报告
3. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportio Proportio Book value Proportio Book value
Amount Amount Amount Amount Proportion
n n n
Accounts receivable
portfolio subject to
18,100,881.19 100.00% 5,855,509.22 32.35% 12,245,371.97 35,956,830.09 90.65% 2,419,017.74 6.73% 33,537,812.35
impairment by credit
risk
Account receivable of
individual not
significance subject to
3,710,320.94 9.35% 3,710,320.94 100.00%
individually
assessment for
impairment
Total 18,100,881.19 100.00% 5,855,509.22 32.35% 12,245,371.97 39,667,151.03 100.00% 6,129,338.68 15.45% 33,537,812.35
Other receivables with individually significant amount and provision for bad and doubtful debts individually provided at the end of the reporting period.
Not applicable
84
杭汽轮机股份有限公司 2015 年年度报告
Other receivable accounts in the group on which bad debt provisions are provided on age basis
In RMB
End of term
Age
Other receivable account Bad debt provision Proportion%
Subitem within 1 year
Within 1 year 5,874,981.66 293,749.08 5.00%
Subtotal within 1 year 5,874,981.66 293,749.08 5.00%
1-2 years 3,432,681.62 343,268.16 10.00%
2-3 years 1,031,692.00 309,507.60 30.00%
3-4 years 700,000.00 420,000.00 60.00%
4-5 years 554,999.80 443,999.84 80.00%
Over 5 years 4,044,984.54 4,044,984.54 100.00%
Total 15,639,339.62 5,855,509.22 37.44%
Other receivable accounts combined within consolidating range for providing of bad debt provisions
Name End of term
Bad debt
Book balance Providing rate %
provision
Combinations of related 2,461,541.57
transactions in consolidation
range
Subtotal 2,461,541.57
Remarks on deciding of combinations:
Receivable accounts and other receivable accounts within the consolidation range are tested for impairment individually. No bad debt provision is provided in case
there is no impairment occurred.
85
杭汽轮机股份有限公司 2015 年年度报告
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB11,420.54 ; recovery or payback for bad debts Amount is RMB0.00.
(3) Receivable accounts actually written off in the report period
In RMB
Items Amount
Difficult to recover 285,250.00
Of which the significant actual write-off accounts receivable:
In RMB
Nature of Arising from
Amount written Reason for Verification
Name account related
off write-off procedures
receivables transactions (Y/N)
Luoyang Jinlong
The examined and
Electric Power Difficult to
Deposit 200,000.00 adopted to Board No
Extension recover
of directors
Command
Total -- 200,000.00 -- -- --
（4）Other account receivable classified by account nature
In RMB
Nature Closing book value Opening book value
Deposit 15,557,676.02 17,537,246.23
Pretty cash 66,000.00 237,970.00
Provisional payment receivable 2,461,541.57 21,438,383.99
Other 15,663.60 453,550.81
Total 18,100,881.19 39,667,151.03
(5) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
86
杭汽轮机股份有限公司 2015 年年度报告
In RMB
Percentage in
Account Bad debt
Name of the company Book balance Age total other
property provision
receivable %
Shanghai Customs Waigaoqiao Over 5
Deposit 3,710,320.94 20.50% 3,710,320.94
Office years
Advance With in 1
Casting Company 2,124,732.77 11.74%
in cash year
Guoxin Bidding Group Co., Ltd. Deposit 1,659,500.00 0-5 years 9.17% 120,100.00
Guodian Trust Bidding Co., Ltd. Deposit 1,455,150.00 0-4 years 8.04% 365,115.00
Jiangsu International Bidding Co., Within 1
Deposit 800,000.00 4.42% 40,000.00
Ltd. year
Inner Mongolia Bidding Co., Ltd. Deposit 550,000.00 1-2 years 3.04% 55,000.00
Total -- 9,749,703.71 -- 53.86% 4,235,535.94
3. Long-term share equity investment
In RMB
End of term Beginning of term
Impair Impair
Items ment ment
Book balance Book value Book balance Book value
provisi provisi
on on
Investment on
502,919,378.03 502,919,378.03 502,919,378.03 502,919,378.03
subsidiaries
Total 502,919,378.03 502,919,378.03 502,919,378.03 502,919,378.03
(1) Investment on subsidiaries
87
杭汽轮机股份有限公司 2015 年年度报告
In RMB
Curr Provided
Impairmen
Increas ent current
t provision
Company invested in Beginning of term ed this term End of term term
End of
period decr Impairmen
term
ease t provision
Zhejiang Xiuping Import and export
20,000,000.00 20,000,000.00
trade Co., Ltd.
Hangzhou Heavy Industry 360,000,000.00 360,000,000.00
Hangzhou Auxiliary Machine Co. 46,286,513.41 46,286,513.41
Zhejiang Turbine Packaged Co. 29,800,389.56 29,800,389.56
Zhongneng Co. 27,644,475.06 27,644,475.06
Machinery Co. 7,968,000.00 7,968,000.00
Casting Co. 11,220,000.00 11,220,000.00
Total 502,919,378.03 502,919,378.03
4.Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main
business 1,530,893,344.10 1,156,539,776.01 2,562,005,959.74 1,781,188,582.14
Other
business 24,603,027.43 22,488,463.30 22,204,008.60 18,750,139.19
Total 1,555,496,371.53 1,179,028,239.31 2,584,209,968.34 1,799,938,721.33
5. Investment income
In RMB
Items Current term Same period of last term
88
杭汽轮机股份有限公司 2015 年年度报告
Long-term equity investment gains on cost basis 118,708,415.00 170,983,585.00
Investment income received from holding of
27,742,368.00 23,118,640.00
available-for –sale financial assets
Gains from financing products 3,153,852.99 2,801,258.48
Total 149,604,635.99 196,903,483.48
89
杭汽轮机股份有限公司 2015 年年度报告
XIV. Supplementary Information
(I) Non-recurring gain/loss
Items Amount Remarks
Gain/loss from disposal of non-working capital, including
the neutralized part of the impairment provision provided -441,916.66
already
Refunding and exemption of taxes in excess of authority
or without official approval documents
Government subsidies accounted into current income
account (except for those government subsidies closely
15,752,977.27
related to the Company’s business, and received at
national statutory standard and amount)
Capital adoption fee collected from non-financial
organizations and accounted into current gain/loss
Gain/loss from differences between the cost of enterprise
merger and the fair value of recognizable net asset of the
invested entities
Gain/loss from non-monetary assets
Gain/loss from commissioned investment or assets
Asset impairment provisions provided for force-majeur
Gain/loss from debt reorganization
Enterprise reorganizing expenses, such as employee
placement fee and integration fee
Gain/loss from trade departing from fair value
Current net gain/loss of subsidiaries under same control
from beginning of term till date of consolidation
Gain/loss generated by contingent liabilities without
connection with main businesses
Except for effective hedge instruments held for routine
operation, the financial assets on fair value with changes
into current gain/loss, gains from change of fair value of
19,624,429.30
financial liabilities, disposal of financial assets on fair
value and changes into current gain/loss, and investment
gains from sellable financial assets
90
杭汽轮机股份有限公司 2015 年年度报告
Restoring of receivable account impairment provision
tested individually
Gain/loss from commissioned loans
Gain/loss from change of fair value of investment
property measured at fair value in follow-up
measurement
Influence of one-time adjustment made on current
gain/loss account according to the laws and regulations
regarding tax and accounting
Consigning fee received for cosigned operation
Other non-business income and expenditures other
12,164,381.63
than the above
Other gain/loss items satisfying the definition of
non-recurring gain/loss account
Sub-total 47,099,871.54
Less: Influence of enterprise income tax (??for
8,553,255.35
decrease of income tax)
Influence on minority shareholders’ equity (after tax) 5,191,956.32
Net non-recurring gain/loss attributable to the
33,354,659.87
owners of the parent company
(II) Net income on asset ratio and earning per share
1. Details
Earnings per share (yuan/share)
Weighted average net
Profit of the report period Basic earnings per Diluted earnings
income on asset %
share per share
Net profit attributable to
common shareholders of the -3.77 -0.22 -0.22
Company
Net profit attributable to the
common owners of the PLC
-4.53 -0.26 -0.26
after deducting of
non-recurring gains/losses
2. Calculation process of weighted average net income on asset
Items No. Current term
Net profit attributable to common shareholders of the
A -162,809,311.79
Company
91
杭汽轮机股份有限公司 2015 年年度报告
Non-recurring gain/loss B 33,354,659.87
Net profit attributable to common shareholders of the
C=A-B -196,163,971.66
Company after deducting of non-recurring gain/loss
Net asset attributable to the common shareholders of
D 4,450,598,244.32
the Company at beginning of term
Net asset increased by issuing of new shares or
converting of debt to shares, and attributable to the E
common shareholders of the Company
Total number of months from the next month of when
F
the asset was newly added to the end of report term
Net asset decreased by repurchasing or cash dividend
and attributable to common shareholders of the G 75,401,040.00
Company
Total number of months from the next month of when
H 7
the asset is decreased to the end of report term
Change of other misc. gains I1 -212,350.28
Accumulative number of months from
the next month when the change of net J1 6
asset to the end of report term
Others
Change of special reserves I2 7,161,770.55
Accumulative number of months from
the next month when the change of net J2 6
asset to the end of report term
Number of months in the report term K 12
L= D+A/2+
Weighted average net asset E×F/K-G×H/K±I×J/ 4,328,684,358.56
K
Net income on asset, weighted M=A/L -3.76%
Weighted average net income on asset after deducting
N=C/L -4.53%
of non-recurring gain/loss
3. Calculation formula of basic earnings per share and diluted earnings per share
(1) Calculation process of basic earning per share
Items No. Current term
Net profit attributable to common shareholders
A -162,809,311.79
of the Company
Non-recurring gain/loss B 33,354,659.87
Net profit attributable to common shareholders C=A-B -196,163,971.66
92
杭汽轮机股份有限公司 2015 年年度报告
of the Company after deducting of non-recurring
gain/loss
Total of shares at beginning of shares D 754,010,400.00
Shares increased due to capitalizing of reserves
E
or share dividend
Increasing of shares by issuing of new shares or
F
converting of debt to shares
Total number of months from the next month of
when the shares are increased to the end of G
report term
Decrease of shares caused by repurchasing H
Total number of months from the next month of
when the shares are decreased to the end of I
report term
Amount of shares reduced J
Number of months in the report term K 12
Weighted average of common shares issued to L=D+E+F×G/K
754,010,400.00
the outside -H×I/K-J
Basic earnings per share M=A/L -0.22
Basic earning per share after deducting of
N=C/L -0.26
non-recurring gain/loss
(2) Calculation process of diluted earnings per share is the same as that of the earnings per share.
93
杭汽轮机股份有限公司 2015 年年度报告
Hangzhou Steam Turbine Co., Ltd.
March 17, 2016
94
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