Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Stock Code：200771 Stock ID：HangqilunB Announcement No：2016-65
Hangzhou Steam Turbine Co., Ltd.
Notes to financial statements
January -June 2016
I. Auditors’ Report
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd
June 30,2016
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 794,767,589.76 751,596,796.24
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Bill receivable 545,123,313.54 680,518,943.49
Account receivable 1,926,721,216.38 2,096,090,157.61
Prepayments 241,112,284.16 139,267,324.65
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 27,087,825.30 25,574,057.29
Repurchasing of financial assets
Inventories 2,235,683,051.12 1,826,869,838.60
Assets held for sales
Non-current asset due in 1 year
Other current asset 567,415,616.85 427,203,835.44
Total of current assets 6,337,910,897.11 5,947,120,953.32
Non-current assets：
Loans and payment on other’s behalf disbursed
Disposable financial asset 509,409,741.77 509,409,741.77
Expired investment in possess
Long-term receivable
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Long term share equity investment
Property investment
Fixed assets 620,876,192.67 642,155,636.34
Construction in progress 173,392,716.87 119,187,107.52
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 300,895,138.55 304,949,207.18
R & D petrol
Goodwill
Long-germ expenses to be amortized 1,824,637.17 2,029,471.80
Deferred income tax asset 172,874,348.70 158,924,887.70
Other non-current asset
Total of non-current assets 1,779,272,775.73 1,736,656,052.31
Total of assets 8,117,183,672.84 7,683,777,005.63
Current liabilities
Short-term loans 81,250,000.00 85,350,000.00
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 198,065,752.08 194,226,049.73
Account payable 1,059,189,681.62 810,420,381.45
Advance payment 2,015,952,250.97 1,736,820,949.19
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 52,279,831.19 70,257,474.46
Tax payable 21,050,931.67 36,008,109.09
Interest payable
Dividend payable
Other account payable 24,853,931.26 29,705,125.51
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 200,000.00 300,000.00
Other current liability
Total of current liability 3,452,842,378.79 2,963,088,089.43
Non-current liabilities：
Long-term loan 123,400,000.00 123,400,000.00
Bond payable
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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 10,114,606.23 6,804,425.00
Deferred income tax liability 1,017,473.05 1,017,473.05
Other non-current liabilities
Total non-current liabilities 134,862,079.28 131,551,898.05
Total of liability 3,587,704,458.07 3,094,639,987.48
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 -477,425.64 -852,752.00
Special reserves 31,585,222.35 31,764,920.51
Surplus reserves 621,112,807.78 621,112,807.78
Common risk provision
Undistributed profit 2,642,459,353.23 2,673,711,591.42
Total of owner’s equity belong to the parent company 4,188,280,702.81 4,219,337,312.80
Minority shareholders’ equity 341,198,511.96 369,799,705.35
Total of owners’ equity 4,529,479,214.77 4,589,137,018.15
Total of liabilities and owners’ equity 8,117,183,672.84 7,683,777,005.63
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
2.Parent Company Balance Sheet
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 409,876,902.54 387,916,202.79
Financial assets measured at fair value with variations accounted
into current income account
Derivative financial assets
Bill receivable 239,273,049.00 365,504,827.88
Account receivable 1,471,822,789.50 1,637,391,672.98
Prepayments 141,635,500.72 53,440,645.95
Interest receivable
Dividend receivable
Other account receivable 7,483,761.06 12,245,371.97
Inventories 1,810,124,761.92 1,454,420,457.64
Assets held for sales
Non-current asset due in 1 year
Other current asset 438,733,569.03 170,653,680.58
Total of current assets 4,518,950,333.77 4,081,572,859.79
Non-current assets：
Disposable financial asset 465,604,378.26 465,604,378.26
Expired investment in possess
Long-term receivable
Long term share equity investment 502,919,378.03 502,919,378.03
Property investment
Fixed assets 311,612,630.28 334,677,256.20
Construction in progress 86,034,126.55 79,982,551.34
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 175,849,280.03 177,872,266.49
R & D petrol
Goodwill
Long-germ expenses to be amortized 761,660.66 761,660.66
Deferred income tax asset 130,206,012.12 120,771,991.85
Other non-current asset
Total of non-current assets 1,672,987,465.93 1,682,589,482.83
Total of assets 6,191,937,799.70 5,764,162,342.62
Current liabilities
Short-term loans
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Financial liabilities measured at fair value with variations
accounted into current income account
Derivative financial liabilities
Bill payable 13,500,000.00
Account payable 673,453,072.14 436,004,535.90
Advance payment 1,636,815,174.84 1,428,724,224.76
Employees’ wage payable 24,010,757.66 51,373,858.57
Tax payable 4,696,110.56 3,538,126.39
Interest payable
Dividend payable
Other account payable 16,405,085.64 20,338,742.44
Classified as held for sale debt
Non-current liability due in 1 year
Other current liability
Total of current liability 2,355,380,200.84 1,953,479,488.06
Non-current liabilities：
Long-term loan 100,000,000.00 100,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable to employees
Special payable
Expected liabilities
Deferred income 3,332,431.23 22,250.00
Deferred income tax liability 1,017,473.05 1,017,473.05
Other non-current liabilities
Total of Non-current liabilities 104,349,904.28 101,039,723.05
Total of liability 2,459,730,105.12 2,054,519,211.11
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 13,098,989.67
Surplus reserves 602,356,402.65 602,356,402.65
Undistributed profit 2,223,788,652.17 2,201,224,089.10
Total of owners’ equity 3,732,207,694.58 3,709,643,131.51
Total of liabilities and owners’ equity 6,191,937,799.70 5,764,162,342.62
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
3.Consolidated Income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 1,367,423,771.88 1,054,996,326.24
Incl：Business income 1,367,423,771.88 1,054,996,326.24
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,416,467,334.78 1,079,531,378.43
Incl：Business cost 850,937,906.04 662,509,347.18
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 8,423,250.87 6,334,593.42
Sales expense 75,867,593.98 67,934,574.09
Administrative expense 355,106,918.55 315,169,862.90
Financial expenses 512,029.17 4,932,440.34
Asset impairment loss 125,619,636.17 22,650,560.50
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 15,045,334.62 39,231,462.05
Incl: investment gains from affiliates
Gains from currency exchange（“-”for loss）
III. Operational profit（“-”for loss） -33,998,228.28 14,696,409.86
Add ：Non-operational income 6,844,762.02 6,285,206.55
Including：Income from disposal of non-current assets 17,299.04 29,583.00
Less：Non business expenses 1,957,694.65 2,157,162.89
Incl：Loss from disposal of non-current assets 181,198.86 303,677.88
IV.Total profit(“-”for loss) -29,111,160.91 18,824,453.52
Less：Income tax expenses -2,833,931.34 11,290,456.20
V. Net profit -26,277,229.57 7,533,997.32
Net profit attributable to the owners of parent company -31,252,238.19 -10,282,333.32
Minority shareholders’ equity 4,975,008.62 17,816,330.64
VI. Other comprehensive income 881,469.91 -373,143.88
Net of profit of other comprehensive income attributable to owners of the
375,326.36 -158,883.17
parent company.
（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 a
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
ssets
2.Other comprehensive income under the equity method investee can not
be reclassified into profit or loss.
（II）
375,326.36 -158,883.17
Other comprehensive income that will be reclassified into profit or loss.
1.Other comprehensive income under the equity method investee can be r
eclassified into profit or loss.
2.Gains and losses from changes in fair value available for sale financial a
ssets
3.Held-to-maturity investments reclassified to gains and losses of availabl
e for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements 375,326.36 -158,883.17
6.Other
Net of profit of other comprehensive income attributable to Minority
506,143.55 -214,260.71
shareholders’ equity
VII. Total comprehensive income -25,395,759.66 7,160,853.44
Total comprehensive income attributable to the owner of the parent
-30,876,911.83 -10,441,216.49
company
Total comprehensive income attributable minority shareholders 5,481,152.17 17,602,069.93
VIII. Earnings per share
（I）Basic earnings per share -0.04 -0.01
(II)Diluted earnings per share -0.04 -0.01
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 rson in charge of accounting：Pu Yangshuo ccounting Dept Leader: Zhao Jiamao
4. Income statement of the Parent Company
In RMB
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Same period of the previous
Items Report period
year
I. Income from the key business 873,700,389.36 620,574,048.28
Incl：Business cost 546,117,341.96 425,237,391.19
Business tax and surcharge 4,800,667.41 1,398,211.91
Sales expense 47,863,806.18 45,577,385.16
Administrative expense 229,290,837.78 203,813,839.11
Financial expenses -1,442,851.52 4,831,005.55
Asset impairment loss 112,015,979.74 25,190,173.12
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 78,813,819.71 146,889,193.96
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） 13,868,427.52 61,415,236.20
Add ：Non-operational income 17,813.04 2,885,613.95
Including：Income from disposal of non-current assets 17,299.04
Less：Non business expenses 755,697.76 704,659.95
Incl：Loss from disposal of non-current assets 10,000.00
III.Total profit(“-”for loss) 13,130,542.80 63,596,190.20
Less：Income tax expenses -9,434,020.27 -3,648,682.83
IV. Net profit（“-”for net loss） 22,564,563.07 67,244,873.03
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 de
bt or net assets
2.Other comprehensive income under the equity method investe
e can not be reclassified into profit or loss.
（ II ）
Other comprehensive income that will be reclassified into profit
or loss.
1.Other comprehensive income under the equity method investe
e can be reclassified into profit or loss.
2.Gains and losses from changes in fair value available for 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 statements
6.Other
VI. Total comprehensive income 22,564,563.07 67,244,873.03
VII. Earnings per share：
（I）Basic earnings per share 0.03 0.09
(II)Diluted earnings per share 0.03 0.09
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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 services 1,473,696,926.54 1,221,502,011.12
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 3,966,504.78 2,774,168.11
Other cash received from business operation 6,687,244.05 11,618,304.30
Sub-total of cash inflow 1,484,350,675.37 1,235,894,483.53
Cash paid for purchasing of merchandise and services 734,853,982.91 532,710,262.96
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 359,098,202.15 354,148,818.72
Taxes paid 96,854,083.68 179,449,049.67
Other cash paid for business activities 78,845,353.68 67,764,778.89
Sub-total of cash outflow from business activities 1,269,651,622.42 1,134,072,910.24
Cash flow generated by business operation, net 214,699,052.95 101,821,573.29
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 15,045,334.62 39,231,462.05
Net cash retrieved from disposal of fixed assets, intangible assets, and
other long-term assets 16,900.00 147,758.20
Net cash received from disposal of subsidiaries or other operational
units
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Other investment-related cash received 812,150,000.00 718,855,999.95
Sub-total of cash inflow due to investment activities 827,212,234.62 758,235,220.20
Cash paid for construction of fixed assets, intangible assets and other
long-term assets 48,665,372.66 33,297,388.80
Cash paid as investment 5,975,590.25
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 938,850,000.00 754,555,999.95
Sub-total of cash outflow due to investment activities 987,515,372.66 793,828,979.00
Net cash flow generated by investment -160,303,138.04 -35,593,758.80
III.Cash flow generated by financing
Cash received as investment 706,350.00 11,340,000.00
Incl: Cash received as investment from minor shareholders
Cash received as loans 69,000,000.00 75,400,000.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities 69,706,350.00 86,740,000.00
Cash to repay debts 73,200,000.00 75,500,000.00
Cash paid as dividend, profit, or interests 38,336,434.28 135,671,470.02
Incl: Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities 111,536,434.28 211,171,470.02
Net cash flow generated by financing -41,830,084.28 -124,431,470.02
IV. Influence of exchange rate alternation on cash and cash equivalents 4,197,480.42 813,434.80
V.Net increase of cash and cash equivalents 16,763,311.05 -57,390,220.73
Add: balance of cash and cash equivalents at the beginning of term 751,596,796.24 613,958,063.91
VI ..Balance of cash and cash equivalents at the end of term 768,360,107.29 556,567,843.18
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
6. Cash Flow Statement of the Parent Company
In RMB
Amount in this Amount in last
Items
period period
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 956,195,266.24 802,001,490.60
Tax returned 359,071.25 2,122,030.27
Other cash received from business operation 4,624,232.32 1,160,090.01
Sub-total of cash inflow 961,178,569.81 805,283,610.88
Cash paid for purchasing of merchandise and services 421,216,904.08 421,933,411.17
Cash paid to staffs or paid for staffs 252,191,310.76 247,730,407.99
Taxes paid 30,208,059.26 95,021,306.39
Other cash paid for business activities 21,407,844.59 16,133,251.46
Sub-total of cash outflow from business activities 725,024,118.69 780,818,377.01
Cash flow generated by business operation, net 236,154,451.12 24,465,233.87
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 78,813,819.71 146,889,193.96
Net cash retrieved from disposal of fixed assets, intangible assets, and other
long-term assets 16,900.00 564.00
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 383,150,000.00 60,000,000.00
Sub-total of cash inflow due to investment activities 461,980,719.71 206,889,757.96
Cash paid for construction of fixed assets, intangible assets and other long-term
assets 33,856,128.76 20,231,766.66
Cash paid as investment 5,975,590.25
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 643,150,000.00 120,000,000.00
Sub-total of cash outflow due to investment activities 677,006,128.76 146,207,356.91
Net cash flow generated by investment -215,025,409.05 60,682,401.05
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts
Cash paid as dividend, profit, or interests 1,702,916.67 76,551,039.99
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities 1,702,916.67 76,551,039.99
Net cash flow generated by financing -1,702,916.67 -76,551,039.99
IV. Influence of exchange rate alternation on cash and cash equivalents 2,534,574.35 109,733.33
V.Net increase of cash and cash equivalents 21,960,699.75 8,706,328.26
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Add: balance of cash and cash equivalents at the beginning of term 387,916,202.79 248,509,410.84
VI ..Balance of cash and cash equivalents at the end of term 409,876,902.54 257,215,739.10
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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
Com
instrument Less: Minor Total of
Items Other mon
Share Specialized shareholders’ owners’
Share Capital prefer Capital reserves Comprehensive Surplus reserves risk Attributable profit
Oth s in reserve equity equity
red Sustai Income provi
nable er stock
stock sion
debt
4,589,137,01
I.Balance at the end of last year 754,010,400.00 139,590,345.09 -852,752.00 31,764,920.51 621,112,807.78 2,673,711,591.42 369,799,705.35
8.15
Add: Change of accounting
policy
Correcting of previous errors
Merger of entities under
common control
Other
II.Balance at the beginning of 4,589,137,01
current year 754,010,400.00 139,590,345.09 -852,752.00 31,764,920.51 621,112,807.78 2,673,711,591.42 369,799,705.35
8.15
-59,657,803.
III.Changed in the current year 375,326.36 -179,698.16 -31,252,238.19 -28,601,193.39
38
（1）Total comprehensive -25,395,759.
375,326.36 -31,252,238.19 5,481,152.16
income 67
（II）Investment or decreasing
of capital by owners
1 ． Ordinary Shares invested b
y Shareholders
2 ． Holders of other equity inst
ruments invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment -34,421,187.50 -34,421,187.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
50
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or -34,421,187.
-34,421,187.50
shareholders) 50
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 -179,698.16 338,841.95 159,143.79
1. Provided this year 1,168,964.22 570,903.32 1,739,867.54
2．Used this term 1,348,662.38 232,061.37 1,580,723.75
（VI）Other
IV. Balance at the end of this 4,529,479,21
term 754,010,400.00 139,590,345.09 -477,425.64 31,585,222.35 621,112,807.78 2,642,459,353.23 341,198,511.96
4.77
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
15
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor Total of
Items Less: Commo
pref Other owners’
Share Specialized Surplus n risk Attributa shareholders’
Share Capital erre Capital reserves Comprehensi
equity equity
Oth s in ve Income reserve reserves provisio ble profit
d Sustai
nable er stock n
stoc
k debt
2,911,92 4,815,411,532
I.Balance at the end of last year 754,010,400.00 139,590,345.09 -640,401.72 24,603,149.96 621,112,807.78 364,813,287.98
1,943.21 .30
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of 2,911,92 4,815,411,532
754,010,400.00 139,590,345.09 -640,401.72 24,603,149.96 621,112,807.78 364,813,287.98
current year 1,943.21 .30
-85,683, -103,717,599.
III.Changed in the current year -158,883.17 350,952.04 -18,226,294.80
373.32 25
-10,282,
（1）Total comprehensive income -158,883.17 17,602,069.94 7,160,853.45
333.32
（II）Investment or decreasing of
19,340,000.00 19,340,000.00
capital by owners
1．Ordinary Shares invested by She
19,340,000.00 19,340,000.00
reholders
2．Holders of other equity instrume
nts invested capital
3．Allotment to the owners (or
shareholders)
4．Other
（III）Profit allotment -75,401, -55,591,585.00 -130,992,625.
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Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
040.00 00
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or -75,401, -130,992,625.
-55,591,585.00
shareholders) 040.00 00
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 350,952.04 423,220.26 774,172.30
1. Provided this year 1,239,471.57 572,847.25 1,812,318.82
2．Used this term 888,519.53 149,626.99 1,038,146.52
（VI）Other
2,826,23 4,711,693,933
IV. Balance at the end of this term 754,010,400.00 139,590,345.09 -799,284.89 24,954,102.00 621,112,807.78 346,586,993.18
8,569.89 .05
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
17
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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
Less: Other
Items Common risk Total of owners’
Share Capital prefer Capital reserves Shares Comprehensi Surplus reserves Attributable profit
Sustai provision equity
red Other in stock ve Income
nable
stock
debt
I.Balance at the end of last year 754,010,400.00 138,953,250.09 13,098,989.67 602,356,402.65 2,201,224,089.10 3,709,643,131.51
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of
754,010,400.00 138,953,250.09 13,098,989.67 602,356,402.65 2,201,224,089.10 3,709,643,131.51
current year
III.Changed in the current year 22,564,563.07 22,564,563.07
（I）Total comprehensive income 22,564,563.07 22,564,563.07
(II) Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by sha
reholders
2．Holders of other equity instrume
nts invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment
1.Providing of surplus reserves
18
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
2．Allotment to the owners (or
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
1. Provided this year 549,654.39 549,654.39
2．Used this term 549,654.39 549,654.39
（VI）Other
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 13,098,989.67 602,356,402.65 2,223,788,652.17 3,732,207,694.58
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
19
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Amount in last year
In RMB
Amount in last year
Other Equity
instrument Less: Other
Items Common risk Total of owners’
Share Capital Capital reserves Shares Comprehensi Surplus reserves Attributable profit
prefer provision equity
Sustai Othe in stock ve Income
red
nable r
stock
debt
3,896,145,293.
I.Balance at the end of last year 754,010,400.00 138,953,250.09 10,511,915.73 602,356,402.65 2,390,313,324.89
36
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current 3,896,145,293.
754,010,400.00 138,953,250.09 10,511,915.73 602,356,402.65 2,390,313,324.89
year 36
III.Changed in the current year -8,156,166.97 -8,156,166.97
（I）Total comprehensive income 67,244,873.03 67,244,873.03
(II) Investment or decreasing of capital
by owners
1 ． Ordinary Shares invested by share
holders
2 ． Holders of other equity instrument
s invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
20
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
（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
1. Provided this year 618,887.05 618,887.05
2．Used this term 618,887.05 618,887.05
（VI）Other
3,887,989,126.
IV. Balance at the end of this term 754,010,400.00 138,953,250.09 10,511,915.73 602,356,402.65 2,382,157,157.92
39
Legal Representative: Zheng Bin Person in charge of accounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiama
21
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
III. 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, Registered address:
No.357 Shiqiao Road, Hangzhou City, Zhijiang.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 3rd meeting of the 7th term of Board held on August
12, 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.
IV. 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.
V. Principal Accounting Policies and Estimations
Important prompt: The Company utilized detailed accounting polices and estimations on providing of bad debt
provisions, fixed asset depreciation, intangible asset amortization, recognition of revenue, and so forth, according
to its business practices.
1. Statement of compliance to the Enterprise Accounting Standard
The finance report produced by the Company is accordance with the Enterprise Accounting Standard, and reflects
the Company’s financial state, business performance and cash flow frankly and completely.
2. Fiscal year
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
3. Operational period
The Company’s relatively shorter operational period, which is 12 months, and is used as division of liquidity of
assets and liabilities.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
5. Accounting treatment of the entities under common control and different control
1. Treatment of entities under common control
Assets and liabilities acquired in merger of entities are measured at book values at the date of merger. The
difference between the net book value of asset and the offered price (or total of face value of shares issued) will be
22
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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 fall into four categories at initial recognition: 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 fall into two types at initial recognition: 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.
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
23
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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
of the accumulated fair value changes which were accounted directed into ownership rights.
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;
24
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
(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) In dealing with major financial assets such as investment hold-to-mature, loans, and receivables, the Company
conduct independently impairment test for single finance asset. Impairment tests are conducted 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. The balance of book value over current value of expected future cash flow
is recognized as impairment loss.
(3) Objective evidences of impairment on sellable financial assets 1) Objective evidences supporting the
impairment of investment on sellable liability instruments are: a. Material financial dilemma with the debtor; b.
Violating of the contract by the debtor, e.g. overdue of payment for interests or principal; c. Compromise made to
the debtor who is in financial crisis with consideration of financial or legal factors; d. Possible bankruptcy or
financial restructuring of the debtor; e. The liability instrument is not able to be traded in an active market for the
debtor is in material financial dilemma; f. Other circumstances that are showing that impairment has already
occurred.
2) Objective evidence showing that impairment has already occurred on sellable equity instruments are:
significant or non-temporary fall of fair value, the invested entities suffers from material negative situations in
aspects of technical, market, economy, or legislation environment. The Company performs tests on investments on
sellable equity instruments individually on the balance sheet day. For investment on equity instruments measured
on fair value, if the fair value on the balance sheet day is lower than the cost by 50% (included), or lower than the
costs for successively 12 months (included), impairment is recognized; If the fair value is lower than the cost by
more than 20% (included), but higher than 50%, or lower than the cost for successively 6 months (included) but
not more than 12 months, the Company will determine if impairment occurred with consideration of other factors,
e.g. fluctuation of prices. For those equity instruments on cost basis, the Company will decided about impairment
with consideration of the invested entities’ situations in aspects of technical, market, economy, or legislation
environment.
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
investment instrument will be restored to owners’ equity when the fair value has increased afterward. When
impairment occurs on sellable equity instrument on cost basis, the balance between its book value and the current
value of the predictable future cash flow upon current market gain rate, is recognized as impairment loss and
recorded to current gain/loss account. It will not be written back in subsequent years.
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
investment instrument will be restored to owners’ equity when the fair value has increased afterward.
25
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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 provisions are provided on age analyze basis in the group
√ Applicable □Not applicable
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 cash flow of
Basis of providing bad debt individually
the receivable account and the current value of future cash flow of the group
Impairment test performed individually, bad debt provision will be provided at the
Basis of bad debt provision
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
26
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
individual price.
(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.
27
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
(3) Formed by means other than entity merger:
Acquired by cash payment – initial investment cost is the actual amount of payment;
Acquired by issuing of equity certificates – initial investment cost is the fair value of equity certificate issued;
Acquired by debtor restructuring – initial cost recognized as according to the Enterprise Accounting Standard
No.12 – Debtor restructuring;
Acquired by trading of non-monetary asset - initial cost recognized as according to the Enterprise Accounting
Standard No.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
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
Straight average on
Equipment & machinery 8-15 4% 12%-6.4%
period
Transportation Straight average on
4-8 4% 24%-12%
equipment period
Office equipment Straight average on 5 4% 19.2%
28
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
period
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.
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
29
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
evidence indicating impairment at the balance sheet day. For intangible assets such as goodwill from merger or
intangible assets with uncertain service lives, impairment test is performed each year whatever there is evidence
of impairment or not. Impairment test on goodwill is performed on combination of related assets.
When the result of prediction shows that the recoverable amount is lower than its book value, the balance shall be
provided impairment provision and accounted into current gain/loss.
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.
(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.
3. Accounting of dismissing welfare
Welfares for employees who are dismissed, the earlier one of the following is recognized as employee wage
liability, and recorded to current gain /loss:
(1) When the Company cannot, on its own call only, retrieve the dismissing welfare provided by dismissing of
service plan or suggestion;
(2) When the costs or expenses related to restructuring involved in the dismissing welfare are recognized by the
Company.
4. Accounting of other long-term employees’ welfares
As of long-term welfares provided to the employees, those which satisfy conditions of the stipulated saving plan
are treated according to related regulations of stipulated saving plan; those which other than the aforesaid, are
treated according to the stipulated beneficiary plan. In viewing of simplifying accounting treatment, employee
wage costs are recognized as service costs, the net amounts of interests of other long-term welfare net liability or
asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related asset.
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
(1) Sales of goods
30
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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.
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
31
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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.
VI. Taxation
1. Main categories and rates of taxes
Category of taxes Tax base Tax rate
Sales of goods or providing of taxable
VAT 17%
labor service
Operational tax Taxable turnover 5%
City maintenance and construction tax Turnover tax payable 7%
Enterprise income tax Amount of income taxable 15%、25%
For those on price basis, taxes are paid at
House tax 1.2%、12%
1.2% of the balance of original value of the
32
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
property after deducting of 30%; for those
on rental basis, taxes are paid at 12% of the
rental.
Educational surcharge Taxable turnover 3%
Local education additional Taxable turnover 2%
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., Hangzhou Steam Turbine
15%
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 313,693.52 391,106.17
Bank deposit 768,046,413.77 688,833,556.36
Other monetary fund 26,407,482.47 62,372,133.71
Total 794,767,589.76 751,596,796.24
Incl:Total of accounts saved overseas 7,337,985.88 9,182,145.32
(2) Other statements
Other monetary fund composes of RMB25,755,592.47 of security for bank acceptance notes and RMB641,890.00
of security for bank guarantee letter. Other of RMB 10000.00.Both under limitation of using.
33
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
2. Bills receivable
(1) Notes receivable listed by category
In RMB
Items End of term Beginning of term
Bank acceptance 502,979,313.54 637,528,943.49
Commercial acceptance 42,144,000.00 42,990,000.00
Total 545,123,313.54 680,518,943.49
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount on pledge
Bank acceptance 69,210,000.00
Total 69,210,000.00
（3）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 period -end
Bank acceptance 145,548,135.52
Total 145,548,135.52
3. Account receivable
（1）Detailed categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio value Proportio Book value
Amount Amount Amount Amount Proportion
n n n
Account receivables
2,861,0
provided bad debt 2,816,58 889,866, 1,926,721 764,959,5 2,096,090,1
98.95% 31.59% 49,700. 98.97% 26.74%
provision in credit 7,421.03 204.65 ,216.38 43.12 57.61
73
risk groups
Account receivable
with minor individual 29,819,6 29,819,6 29,819, 29,819,60
1.05% 100.00% 1.03% 100.00%
amount but bad debt 07.69 07.69 607.69 7.69
provision is provided
2,890,8
2,846,40 919,685, 1,926,721 794,779,1 2,096,090,1
Total 7,028.72
100.00%
812.34
32.31%
,216.38
69,308. 100.00%
50.81
27.49%
57.61
42
Receivables with individually significant amount and provision for bad and doubtful debts individually provided
at the end of the reporting period.
□ Applicable √Not applicable
Receivable accounts in the group on which bad debt provisions are provided on age basis
√ Applicable □Not applicable
In RMB
34
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
End of term
Age
Other receivable account Bad debt provision Proportion%
Subitem within 1 year
Within 1 year 839,983,392.07 42,040,985.31 5.00%
Subtotal within 1 year 839,983,392.07 42,040,985.31 5.00%
1-2 years 582,897,134.47 58,289,713.46 10.00%
2-3 years 606,296,568.64 181,888,970.62 30.00%
Over 3 years 787,410,325.85 607,646,535.26 77.17%
3-4 years 306,686,159.94 184,011,695.96 60.00%
4-5 years 285,446,633.00 228,357,306.39 80.00%
Over 5 years 195,277,532.91 195,277,532.91 100.00%
Total 2,816,587,421.03 889,866,204.65
Notes：
Receivables with provision for bad and doubtful debts based on the balance percentage method in the portfolio
□ Applicable √Not applicable
Receivables with provision for bad and doubtful debts based on the other method in the portfolio
（2）The ending balance of receivables owed by the imputation of the top five parties
Name Amount Proportion(%) Bad debt provision
Client 1 731,099,586.92 25.68% 248,033,881.74
Client 2 348,865,840.80 12.26% 155,544,016.80
Client 3 38,934,865.99 1.37% 2,179,009.80
Client 4 35,773,604.12 1.26% 1,788,680.21
Client 5 34,982,213.00 1.23% 3,302,601.05
Subtotal 1,189,656,110.83 41.80% 410,848,189.59
4. Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance in year-begin
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 209,505,588.85 86.89% 107,708,874.45 77.34%
1-2 years 17,312,679.02 7.18% 25,792,370.60 18.52%
2-3 years 819,746.06 0.34% 2,763,347.80 1.98%
Over 3 years 13,474,270.23 5.59% 3,002,731.80 2.16%
Total 241,112,284.16 -- 139,267,324.65 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
35
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Amount Proportion(%)
Simemens Industrial Turbomachinery AB 13,104,732.53 5.44%
GOTE BORG ELECTRICAL AND MECHANICAL 11,313,321.30 4.69%
ENGINEERING FAR EAST LIMITED
Zhenjiang Xinhua Group Co., Ltd. 7,176,000.00 2.98%
Qingdao Shengdaxin Electric power Technology Co., Ltd. 6,336,000.00 2.63%
Hangzhou Boiler Group Co., Ltd. 5,393,500.00 2.24%
Total 43,323,553.83 17.97%
Other notes：
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 Book
Proportio Proportio Proportio Book value
Amount Amount value Amount Amount Proportion
n n n
Other Accounts
30,117
receivable portfolio 32,205, 5,117,5 27,087, 4,543,12 25,574,05
89.67% 15.89% ,186.1 89.03% 15.08%
subject to impairment 360.49 35.19 825.30 8.83 7.29
2
by credit risk
Other Accounts
receivable with
3,710, 3,710,3 100.00 3,710, 3,710,32
minor individual 10.33% 10.97% 100.00%
320.94 20.94 % 320.94 0.94
amount and bad debt
provision provided
33,827
35,915, 100.00 8,827,8 27,087, 100.00 8,253,44 25,574,05
Total 24.58% ,507.0 24.40%
681.43 % 56.13 825.30 % 9.77 7.29
6
Other receivable accounts in the group on which bad debt provisions are provided on age basis
√ Applicable □ Not applicable
In RMB
End of term
Age
Other receivable account Bad debt provision Proportion%
Within 1 year
Subtotal within 1 year 15,425,864.79 771,202.79 5.00%
Subtotal within 1 year 15,425,864.79 771,202.79 5.00%
36
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
1-2 years 9,025,838.98 902,583.90 10.00%
2-3 years 5,631,234.32 1,689,370.30 30.00%
Over 3 years 2,122,422.40 1,754,378.20 82.66%
3-4 years 499,392.00 299,635.20 60.00%
4-5 years 841,737.00 673,389.60 80.00%
Over 5 years 781,293.40 781,353.40 100.00%
Total 32,205,360.49 5,117,535.19
Notes ：
Other receivables with provision for bad and doubtful debts based on the balance percentage method in the
portfolio
□ Applicable √ Not applicable
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio
□ Applicable √Not applicable
（2） Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 13,816,415.30 21,439,653.49
Provisional payment receivable 5,900,249.47 5,862,759.48
Petty cash 7,236,680.11 1,371,901.86
Other 8,962,336.55 5,153,192.23
Total 35,915,681.43 33,827,507.06
（3）Top 5 of the closing balance of Other accounts receivable collated according to the arrears party
In RMB
Name of the Percentage in total
Account property Book balance Age Bad debt provision
company other receivable %
Shanghai Customs
Import CNC lathe 3,710,320.94 Over 5 years 10.33% 3,710,320.94
Waigaoqiao Office
Investment from
Indonesia Company Investment 3,246,800.00 2-3 years 9.04% 974,040.00
receivable
Export drawback
Export Rebates 2,732,899.36 Within 1 year 7.61% 136,644.97
receivable
Shanghai Huiyi
International Payment of customs
2,132,201.18 Within 1 year 5.94% 106,610.06
Freight Agency duties and VAT
Co., Ltd.
37
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Jiangxi Baohuashan
Group Ningdu
Bidding deposit 650,000.00 1-2 years 1.81% 65,000.00
Hengfeng Mining
Co., Ltd.
Total -- 12,472,221.48 -- 34.73% 4,992,615.97
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 401,944,097.21 401,944,097.21 458,779,130.89 458,779,130.89
Product in
722,446,356.62 722,446,356.62 564,392,004.76 564,392,004.76
process
Products in stock 1,163,561,254.53 52,268,657.24 1,111,292,597.29 856,686,717.61 52,988,014.66 803,698,702.95
Total 2,287,951,708.36 52,268,657.24 2,235,683,051.12 1,879,857,853.26 52,988,014.66 1,826,869,838.60
(2) Inventory depreciation provision
In RMB
Increased this period Decreased this period
Beginning of
Items Written back End of term
term Provided Others Others
or off
Products in
52,988,014.66 719,357.42 52,268,657.24
stock
Total 52,988,014.66 719,357.42 52,268,657.24
7. Other current asset
In RMB
Items End of term Beginning of term
Bank financing products 552,700,000.00 426,000,000.00
Input tax deductible 9,655,533.03 1,089,566.15
Prepaid income tax 68,658.61 113,279.98
Prepayment of other tax 4,991,425.21 989.31
Total 567,415,616.85 427,203,835.44
Other notes：
8. Sellable financial asset
(1) Details
In RMB
38
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Available-for-sale equity
509,409,741.77 509,409,741.77 509,409,741.77 509,409,741.77
instruments
On cost basis 509,409,741.77 509,409,741.77 509,409,741.77 509,409,741.77
Total 509,409,741.77 509,409,741.77 509,409,741.77 509,409,741.77
(2) Sellable financial assets on cost basis
In RMB
Book balance Impairment provision Shareholdi Cash
Beginning Increased Beginning Increased Decreased End of ng bonus of
Company
of term this period of term this period this period term
Decreased End of proportion the
invested in
this period term among the reporting
investees period
Bank of
390,954,04 390,954,04
Hangzhou 5.89%
0.00 0.00
Co.,Ltd.
Greenesol 5,534,773. 5,534,773.
37.00%
Co.(India) 22 22
Hangzhou
Changdi
Equity
39,115,565 39,115,565
Investment 2.97%
.04 .04
Partnershi
p(Limited
liability)
Hangzhou
Steam
30,000,000 30,000,000
Turbine 15.00%
.00 .00
Engineerin
g Co., Ltd.
Zhejiang
Sanxin
Automatic 600,000.00 600,000.00 6.00%
Engineerin
g Co., Ltd.
Zhejiang 15,000,000 15,000,000
5.27%
Zhongkon .00 .00
39
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
g Solar
Energy
Technolog
y Co., Ltd.
Zhejiang
Tianhang
Steam
10,000,000 10,000,000
Turbine 33.33%
.00 .00
Auxiliary
Machinery
Co., Ltd.
Wuxi
Xinchang 18,205,363 18,205,363
18.00%
Steel Tube .51 .51
Co., Ltd.
509,409,74 509,409,74
Total --
1.77 1.77
9. Fixed assets
（1）Details
In RMB
Houses & Machinery Transportation
Items Office equipment Total
buildings equipment equipment
I. Original value
1.Opening balance 430,839,912.93 969,905,790.70 29,785,975.08 99,549,945.71 1,530,081,624.42
2.Increased amount
11,336,962.90 5,214,475.58 70,997.00 3,172,297.96 19,794,733.44
of the period
（1）Outsourcing 3,492,019.44 70,997.00 831,250.73 4,394,267.17
（ 2 ） Inventory,
Fixed assets and
11,336,962.90 1,722,456.14 2,341,047.23 15,400,466.27
Construction
project into
（ 3 ） Enterprise
consolidation
3.Decreased
44,945.00 260,336.00 305,281.00
amount of the
40
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
period
（1）Disposal 44,945.00 44,945.00
260,336.00 260,336.00
4.Closing
442,176,875.83 975,075,321.28 29,856,972.08 102,461,907.67 1,549,571,076.86
balance
II.Accumulated
depreciation
accumulated
amortization
1.Opening balance 163,529,319.75 620,466,561.64 18,904,719.96 78,242,233.07 881,142,834.42
2.Increased amount
5,920,011.61 30,129,079.27 1,024,167.64 3,985,087.10 41,058,345.62
of the period
（1）Withdrawal 5,920,011.61 30,129,079.27 1,024,167.64 3,985,087.10 41,058,345.62
3.Decreased
39,526.95 249,922.56 289,449.51
amount of the period
（1）Disposal 39,526.95 39,526.95
249,922.56 249,922.56
4.Closing balance 169,449,331.36 650,556,113.96 19,928,887.60 81,977,397.61 921,911,730.53
III. Impairment
provision
1.Opening balance 1,504,928.24 4,074,858.43 1,203,366.99 6,783,153.66
2.Increased amount
of the period
（1）Withdrawal
3.Decreased
amount of the period
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
41
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
IV. Book value
1.Closing book value 271,222,616.23 320,444,348.89 9,928,084.48 19,281,143.07 620,876,192.67
2.Opening book 265,805,664.94 345,364,370.63 10,881,255.12 20,104,345.65 642,155,636.34
10. Project under construction
（1）Project under construction
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Construction in
process of parent
86,034,126.55 86,034,126.55 79,982,551.34 79,982,551.34
Company （ 113
projects）
Tangxi Workshop
PhaseII, Gouneng 14,592,961.69 14,592,961.69 19,540,353.62 19,540,353.62
Company
Project of steam
turbine heavy 69,422,380.30 69,422,380.30 18,177,025.86 18,177,025.86
industry
Minor purchasing
of equipment by 3,343,248.33 3,343,248.33
subsidiaries
Prepayment for
equipment or 1,487,176.70 1,487,176.70
projects
Total 173,392,716.87 173,392,716.87 119,187,107.52 119,187,107.52
(2) Changes of significant construction in progress
In RMB
Accumul Accumul Ratio of
Interest
Increase Transferr Other ated ate of interest
Beginnin End of capitaliz Fund
Project Budget d this ed fixed decrease input on Progress interest capitalizi
g of term term ed this recourse
period assets s budget capitaliz ng this
term
% ed term %
Construc
Under
tion in 208,385, 76,494,8 9,539,30 86,034,1
41.29% Construc
process 880.00 25.13 1.42 26.55
tion
of parent
42
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Compan
y （ 113
projects）
Complet
ed
project
5,071,10 3,487,72 575,543. 4,063,26 Complet
of parent
0.00 6.21 70 9.91 ed
Compan
y （ 55
projects）
Tangxi
Worksho
p Under
29,510,0 19,540,3 6,389,57 11,336,9 14,592,9
PhaseII, 49.45% Construc
00.00 53.62 0.97 62.90 61.69
Gouneng tion
Compan
y
Project
of steam Under
1,794,10 18,177,0 51,245,3 69,422,3
turbine 3.87% Construc
0,000.00 25.86 54.44 80.30
heavy tion
industry
Minor
purchasi
ng of Under
8,343,24 3,343,24 3,343,24
equipme 40.07% Construc
8.33 8.33 8.33
nt by tion
subsidiar
ies
Prepaym
ent for
2,604,19 1,487,17 1,487,17 Complet
equipme
5.84 6.70 6.70 ed
nt or
projects
2,048,01 119,187, 71,093,0 15,400,2 1,487,17 173,392,
Total -- -- --
4,424.17 107.52 18.86 32.81 6.70 716.87
11. Intangible assets
（1）Details
In RMB
Items Land using right Patent Non-patent right Other Total
I. Original price
43
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
1.Opening
332,298,312.33 200,000.00 8,000,000.00 328,376.07 340,826,688.40
balance
2.Increased amount
9,433.96 9,433.96
of the period
(1) Purchase 9,433.96 9,433.96
(2)Internal
Developm
ent
(3)Increased of
Enterprise
Combination
3.Decreased
amount of the period
（1）Disposal
4.Closing balance 332,298,312.33 209,433.96 8,000,000.00 328,376.07 340,836,122.36
II.Accumulated
amortization
1.Opening balance 35,119,224.60 86,000.00 466,666.67 205,589.95 35,877,481.22
2.Increased amount
3,586,665.01 37,999.96 400,000.02 38,837.60 4,063,502.59
of the period
(1) Withdrawal 3,586,665.01 37,999.96 400,000.02 38,837.60 4,063,502.59
3.Decreased amount
of the period
（1）Disposal
4.Closing balance 38,705,889.61 123,999.96 866,666.69 244,427.55 39,940,983.81
III. Impairment
provision
1.Opening balance
44
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
2.Increased amount
of the period
(1) Withdrawal
3.Decreased amount
of the period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 293,592,422.72 85,434.00 7,133,333.31 83,948.52 300,895,138.55
2.Opening book
297,179,087.73 114,000.00 7,533,333.33 122,786.12 304,949,207.18
value
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
Balance in Increase in this
Items year-begin period Other loss Balance in year-end
Redecoration 1,781,295.80 51,377.11 132,123.74 1,700,549.17
Afforestation fees 248,176.00 124,088.00 124,088.00
Total 2,029,471.80 51,377.11 256,211.74 1,824,637.17
Other notes
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
988,021,920.95 153,518,142.89 862,665,829.01 134,087,883.30
Impairment
Internal trade profit not
64,032,268.73 9,604,840.31 51,540,875.71 7,731,131.35
realized
Deductible loss 60,288,265.27 9,073,150.16 109,318,315.61 16,427,657.71
Temporary difference 4,521,435.59 678,215.34 4,521,435.59 678,215.34
45
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
such as amortizing of
software expense
Total 1,116,863,890.54 172,874,348.70 1,028,046,455.92 158,924,887.70
(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
6,783,153.66 1,017,473.05 6,783,153.66 1,017,473.05
depreciation:
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 262,915.84 137,939.89
Deductible loss 8,569,983.75 5,606,704.52
Total 8,832,899.59 5,744,644.41
（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
2018 1,088,275.32 1,088,275.32
2019 903,272.74 903,272.74
2020 3,615,156.46 3,615,156.46
2021 2,963,279.23
Total 8,569,983.75 5,606,704.52 --
Other notes：
14.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 71,250,000.00 75,350,000.00
46
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Total 81,250,000.00 85,350,000.00
Notes：
15. Notes payable
In RMB
Balance in year-end Balance in year-begin
Category
Bank acceptance 198,065,752.08 194,226,049.73
Total 198,065,752.08 194,226,049.73
The amount payable at the end of this term is RMB 0.00.
16. Account payable
（1）Details
In RMB
Items End of term Beginning of term
Goods 1,050,191,962.10 796,106,637.10
Payment for equipment and projects 8,997,719.52 14,313,744.35
Total 1,059,189,681.62 810,420,381.45
17. Advances received
（1）Details
In RMB
Items End of term Beginning of term
Goods 2,015,952,250.97 1,736,820,949.19
Total 2,015,952,250.97 1,736,820,949.19
18. Employees’ wage payable
(1) Details
In RMB
Items Beginning of term Increased this period Decreased this period End of term
I. Short-term wages 46,643,490.67 277,164,866.72 284,685,461.96 39,122,895.43
II. Welfare after leaving
of position-fixed 23,613,983.79 36,622,933.27 47,079,981.30 13,156,935.76
provision scheme
Total 70,257,474.46 313,787,799.99 331,765,443.26 52,279,831.19
(2) Details of short term wages
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Wage, bonus,
34,671,757.54 196,907,397.75 216,190,193.64 15,388,961.65
allowance and subsidies
2. Employee welfare 26,083,209.59 16,941,272.87 9,141,936.72
3. Social insurance 5,385,672.93 22,815,971.83 23,444,293.77 4,757,350.99
47
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Incl. Medical insurance 4,746,884.21 20,247,907.48 20,621,235.24 4,373,556.45
Labor injury insurance 219,035.19 786,430.24 888,552.97 116,912.46
Maternity insurance 419,753.53 1,781,634.11 1,934,505.56 266,882.08
4. Housing fund 110,894.96 22,484,107.00 22,481,321.00 113,680.96
5. Labour union fee and
6,475,165.24 8,682,347.22 5,436,547.35 9,720,965.11
employee education fee
7.Short-term profit
191,833.33 191,833.33
sharing scheme
Total 46,643,490.67 277,164,866.72 284,685,461.96 39,122,895.43
(3) Details of fixed provision scheme
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Basic pension
4,967,070.01 24,462,875.84 25,663,360.42 3,766,585.43
insurance
2. Unemployment
532,115.91 2,330,359.71 2,582,745.30 279,730.32
insurance
3. Enterprise annual fee 18,114,797.87 9,829,697.72 18,833,875.58 9,110,620.01
Total 23,613,983.79 36,622,933.27 47,079,981.30 13,156,935.76
Other notes：
19. Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 8,708,538.56 14,415,685.85
Business Tax 14,341.11 26,734.00
6,014,563.60 13,503,170.56
Enterprise Income tax
Individual Income tax 1,714,381.25 2,576,708.03
City Construction tax 941,556.39 1,039,687.83
Land use tax 918,480.00 1,245,105.20
Property tax 39,647.76
Education subjoin 416,322.64 453,914.47
Locality Education subjoin 277,543.45 303,713.60
Stamp tax 13,402.28 19,236.84
Local water source foundation 2,029,462.39 2,382,364.75
Disabled security fund 2,140.20
Vehicles use fee 2,340.00
48
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Total 21,050,931.67 36,008,109.09
Other notes：
20. Other account payable
(1) Other accounts payable listed by nature of the account
In RMB
Items End of term Beginning of term
Deposit 1,074,845.10 1,462,038.45
Provisional account payable 8,917,962.69 22,729,311.10
Other 14,861,123.47 5,513,775.96
Total 24,853,931.26 29,705,125.51
21. Non-current liabilities due within 1 year
In RMB
Items End of term Beginning of term
Long-term loans due within 1 year 200,000.00 300,000.00
Total 200,000.00 300,000.00
Other notes：
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 23,400,000.00
Guaranteed loans 100,000,000.00 100,000,000.00
Total 123,400,000.00 123,400,000.00
Notes ：
Other notes，Include interest rate range：
23. Deferred income
In RMB
Items Decreased this
Beginning of term Increased this period End of term Cause
period
Government subsidy 6,804,425.00 3,310,181.23 10,114,606.23
Total 6,804,425.00 3,310,181.23 10,114,606.23 --
49
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Details of government subsidies
In RMB
Amount
New subsidy in transferred to Other Asset-related or
Items Beginning of term End of term
current period non-operational changes income-related
income
Financial allocation of advance Asset-related
52,000.00 52,000.00
manufacturing base
Financial subsidy for Provincial Asset-related
industrial transformation and 125,510.00 125,510.00
upgrading
Government subsidy for Asset-related
industrial entities from Yuhang
427,720.00 427,720.00
District Government in the 2nd
half of 2009
Government finance for industrial Asset-related
4,903,785.00 4,903,785.00
project in the 2nd half of 2006
Finance for casting project 640,000.00 640,000.00 Asset-related
Government subsidy for Asset-related
316,580.00 316,580.00
recycling economy
10K ton casting line enlarging Asset-related
316,580.00 316,580.00
project
Government fund for advanced Asset-related
22,250.00 22,250.00
manufacturing enterprise
Enterprise stable job subsidies 3,210,181.23 3,210,181.23 Asset-related
MPT spectrometer for the first Asset-related
time in the application of the
project funding for the
100,000.00 100,000.00
maintenance of the apparent
condition of the steam turbine
2013YQ47078106
Total 6,804,425.00 3,310,181.23 10,114,606.23 --
Other notes：
24. Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance
Issuing of new Transferred Balance year-end
Year-beginning Bonus shares Other Subtotal
share from reserves
50
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Total of capital
754,010,400.00 754,010,400.00
shares
Other notes：
25. Capital reserves
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Share premium 81,815,220.00 81,815,220.00
Other capital reserves 57,775,125.09 57,775,125.09
Total 139,590,345.09 139,590,345.09
Notes：
26. Other comprehensive income
In RMB
Occurred current term
Less:
Amount
accounted as
occurred Attributable Attributable
Beginning of other gains Less:
Items before to the to minority End of term
term previously but Income tax
income tax parent co. shareholders
transferred to expenses
of the after tax after tax
gain/loss this
period
period
II. Other Comprehensive income that
will be reclassified subsequently to -852,752.00 881,469.91 375,326.36 506,143.55 -477,425.64
profit or loss
Translation differences of financial
statements denominated in foreign -852,752.00 881,469.91 375,326.36 506,143.55 -477,425.64
currencies
Total -852,752.00 881,469.91 375,326.36 506,143.55 -477,425.64
Notes：
28. Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
51
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
period period
Labor safety expenses 31,764,920.51 1,168,964.22 1,348,662.38 31,585,222.35
Total 31,764,920.51 1,168,964.22 1,348,662.38 31,585,222.35
Other notes, including changes and reason of change:：
28. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus
621,112,807.78 621,112,807.78
reserves
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：
29. Retained profits
In RMB
Items Amount of this period Amount of last period
Adjustment on retained profit at end of previous
2,673,711,591.42 2,911,921,943.21
term
Plus: Net profit attributable to owners of the
-31,252,238.19 -10,282,333.32
parent company
Common share dividend payable 75,401,040.00
Retained profit at the end of term 2,642,459,353.23 2,826,238,569.89
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 .
30. Business income and Business cost
In RMB
Items Occurred current term Occurred in previous term
52
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Income Cost Income Cost
Main Business 1,362,270,491.45 848,808,322.11 1,051,651,934.26 661,731,977.04
Other 5,153,280.43 2,129,583.93 3,344,391.98 777,370.14
Total 1,367,423,771.88 850,937,906.04 1,054,996,326.24 662,509,347.18
31. Business tax and surcharge
In RMB
Items Occurred current term Occurred in previous term
Business tax 36,467.22 76,064.57
City maintenance and construction tax 4,848,384.15 3,597,396.78
Education surtax 2,123,039.65 1,596,580.15
Local education surcharges 1,415,359.85 1,064,551.92
Total 8,423,250.87 6,334,593.42
Other notes：
32. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
Employees’ remunerations 24,144,838.68 27,276,709.31
Transportation 22,067,695.57 17,125,216.83
Business trips 9,321,130.31 8,118,609.81
Business reception expenses 3,856,181.75 3,388,749.62
Conferences 762,768.90 1,233,208.24
Consulting service fee 7,376,359.34 5,715,017.95
Insurance for turbine unit 115,012.33 132,272.45
Warranty expense 1,360,196.29 907,943.92
Product exhibition 879,035.70 475,420.96
Office expenses 290,453.85 398,913.10
Others 5,693,921.26 3,162,511.90
Total 75,867,593.98 67,934,574.09
Other notes：
33.Administrative expense
In RMB
Items Occurred current term Occurred in previous term
Employees’ remunerations 154,766,064.42 150,393,259.60
R&D expenses 138,018,919.01 107,033,616.25
53
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Asset depreciation and amortizing 10,600,496.96 10,524,580.76
Business reception expenses 6,075,008.72 6,689,781.94
House rental, property management, water
3,912,114.29 6,764,416.69
and power
Traveling fees 3,693,110.12 2,928,486.47
Taxes 5,995,092.98 1,819,584.25
Material, low-value-consumable 1,179,867.75 1,517,319.57
Office expenses 1,529,414.33 1,867,126.81
Maintaining 1,393,232.10 1,516,499.13
Other 27,943,597.87 24,115,191.43
Total 355,106,918.55 315,169,862.90
Other notes：
34. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 4,856,082.74 6,368,172.77
Less: Incoming interests 2,276,735.92 3,258,526.77
Exchange gains/losses -3,218,647.71 600,522.74
Commission 1,004,308.45 1,185,235.00
Other 147,021.61 37,036.60
Total 512,029.17 4,932,440.34
Other notes：
35. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
I .Losses for bad debts 125,619,636.17 22,650,560.50
Total 125,619,636.17 22,650,560.50
Other notes：
36. Investment income
In RMB
Items Occurred current term Occurred in previous term
54
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Investment income gain from available for sale
3,587,659.70 28,742,368.00
financial assets
Reverse repurchase treasury investment incom
11,457,674.92 10,489,094.05
e
Total 15,045,334.62 39,231,462.05
Other notes：
37. Non-Operation income
In RMB
Recorded in the amount of the
Items Occurred current term Occurred in previous term
non-recurring gains and losses
Total gains from disposal of
17,299.04 29,583.00 17,299.04
non-current assets
Including：Gains from disposal
17,299.04 29,583.00 17,299.04
of fixed assets
Government Subsidy 318,530.00 3,309,950.00 318,530.00
Compensation income 6,372,280.92 2,763,960.00 6,372,280.92
Other 136,652.06 181,713.55 136,652.06
Total 6,844,762.02 6,285,206.55 6,844,762.02
Government subsidy reckoned into current gains/losses
In RMB
Whether the Asset-related
impact of or
Whether
Subsidy Issuing subsidies on Amount of Amount of income-relate
Release cause Type special
items subject the current this period last period d
subsidies
profit and
loss
Transferred
from deferred No No 1,252,350.00 Assets related
income
Other
sporadic Income
No No
government related
subsidies
2014 Income
No No 4,000.00
Provincial related
55
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Patent
Grant/Hangz
hou Yuhang
District
Science &
Technology
Bureau
Award for
Enterprise
Income
R&D No No 314,200.00
related
Investment
2014
Transfer tax Income
No No 330.00
service fee related
Hangzhou
Xihu
Production Income
No No 5,000.00
Promotion related
Center
Pattent Grant
Baiyang
Income
street Labor No No 5,600.00
related
grant
Award for
Enterprise
Income
R&D No 971,000.00
related
Investment
2013
2014
financial
Income
grants on No No 16,000.00
related
intellectual
property right
2014 Yuhang
industrial Income
No No 635,000.00
risk-pooling related
funds
2014Hangzh
ou city grants
Income
on safety No No 100,000.00
related
production
standardizati
56
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
on
2014 Yuhang
District
Income
grants on No No 200,000.00
related
Quality
Awards
Xiacheng
District
financial
subsidies
Income
granted for No No 100,000.00
related
safety
production
financial
subsidies
Grants on
Deqing
Income
Finance No No 25,000.00
related
Bureau
upgrading
Total -- -- -- -- -- 318,530.00 3,309,950.00 --
Other notes：
38. Non-operational expenditure
In RMB
Amount accounted into
Items Current term Same period of last term non-recurring gain/loss of
current term
Total of loss from disposal of
181,198.86 303,677.88
non-current assets
Incl. Loss from disposal of
181,198.86 303,677.88 181,198.86
fixed assets
Donations 110,000.00
Penalty paid out 121,140.00 72,168.36 121,140.00
Local water source
1,606,344.54 1,509,082.13
foundation
Penalties 4,129.58 100.00 4,129.58
Other 44,881.67 162,134.52 44,973.39
Total 1,957,694.65 2,157,162.89 351,441.83
Other notes：
39. Income tax expenses
57
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
(1) Details
In RMB
Items Current term Same period of last term
Income tax of current term 10,258,830.52 15,455,703.13
Deferred income tax -13,092,761.86 -4,165,246.93
Total -2,833,931.34 11,290,456.20
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Current term
Total profit -29,111,160.91
Income tax expenses calculated on legal / applicable tax rate -4,366,674.14
Impact of different tax rates of subsidiaries -1,276,970.54
Impact of income tax adjustment in previous periods 791,497.21
Impact of non-taxable income -288,155.00
Impact of un-deductible costs, expenses or losses 163,875.18
Impact of deductible temporary difference of un-recognized
2,142,495.94
deferred income tax asset of current period
Income tax expenses -2,833,931.34
Other notes
40. Other Comprehensive income
Please find the statement in the notes of consolidated balance sheet.
41. Notes Cash flow statement
(1) Other cash received from business operation
In RMB
Items Occurred current term Occurred in previous term
Deposit interest 2,276,884.34 2,932,337.44
Government subsidies received 3,628,381.23 7,253,115.90
Deposit for bidding and other -50,000.00 382,225.60
Compensation income 163,534.00
Other 668,444.48 1,050,625.36
Total 6,687,244.05 11,618,304.30
Notes ：
2. Other cash paid for business activities
In RMB
58
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Items Occurred current term Occurred in previous term
Travel expenses 16,226,976.75 11,117,335.44
Transportation 3,272,653.84 2,241,434.65
Business trips 10,323,734.57 10,258,389.65
Maintaining 609,448.28 794,837.37
Property management and civil services 3,269,592.99 3,437,124.78
Deposit for bidding and others 3,788,086.28 6,037,215.36
Office expenses 2,915,351.76 3,460,947.30
Conferences 1,286,764.88 1,491,417.75
Consulting service fee 7,080,357.89 5,690,876.65
Transportation and vehicles 2,377,922.97 2,541,010.58
External donation 100,000.00
Other 27,694,463.47 20,594,189.36
Total 78,845,353.68 67,764,778.89
Notes：
3. Other investment-related cash received
In RMB
Items Occurred current term Occurred in previous term
Repurchasing of trusteeship 812,150,000.00 718,855,999.95
Total 812,150,000.00 718,855,999.95
Notes ：
4. Other cash paid for investment activities
In RMB
Items Current term Same period of last term
Purchasing of financial products 938,850,000.00 754,555,999.95
Total 938,850,000.00 754,555,999.95
Notes ：
42. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit -26,277,229.57 7,533,997.32
Add: Impairment loss provision of assets 125,619,636.17 22,650,560.50
59
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Depreciation of fixed assets, oil and gas
41,159,790.67 43,264,971.82
assets and consumable biological assets
Amortization of intangible assets 3,663,502.57 3,660,084.07
Loss on disposal of fixed assets, intangible
5,418.05 17,462.55
assets and other long-term deferred assets
Loss on scrap of fixed assets 286,215.33
Financial cost 9,053,563.16 7,181,607.57
Loss on investment -15,045,334.62 -39,231,462.05
Decrease of deferred income tax assets -13,949,461.00 -4,165,246.93
Decrease of deferred income tax Liabilities 0.00
Decrease of inventories -408,813,212.52 -462,624,380.00
Decease of operating receivables 62,274,426.08 199,800,810.01
Increased of operating Payable 437,007,953.96 322,672,780.80
Other 774,172.30
Net cash flows arising from operating
214,699,052.95 101,821,573.29
activities
II. Significant investment and financing
-- --
activities that without cash flows:
3．Movement of cash and cash equivalents：-- --
Ending balance of cash 768,360,107.29 556,567,843.18
Less: Beginning balance of cash equivalents 751,596,796.24 613,958,063.91
Net increase of cash and cash equivalents 16,763,311.05 -57,390,220.73
（2）Composition of cash and cash equivalents
In RMB
Items End of term Beginning of term
1) Cash 768,360,107.29 751,596,796.24
Incl: Cash in stock 313,693.52 330,003.92
Bank savings could be used at any time 768,046,413.77 546,521,114.46
other monetary funds could be used at any
26,407,482.47 9,716,724.80
time
3) Balance of cash and cash equivalents at
768,360,107.29 751,596,796.24
end of term、
60
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Other notes：
43. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Translated to RMB at end of
Items Balance at end of period Exchange rate
period
Monetary capital -- -- 147,859,399.00
Incl：USD 21,033,721.82 6.6312 139,478,816.13
Euro 141,207.74 7.3750 1,041,407.08
HKD 5.51 0.8547 4.71
JPY 9,031.00 0.0645 582.42
Rupiah 14,559,495,790.69 0.0005 7,337,985.88
Ruble 4,750.00 0.1269 602.78
Account receivable -- -- 209,639,064.80
Incl：USD 24,202,627.39 6.6312 160,492,462.75
Euro 6,577,007.51 7.3750 48,505,430.39
Rupiah 1,272,165,995.09 0.0005 641,171.66
Account payable 11,138,861.03
Incl：USD 1,483,436.06 6.6312 9,836,961.20
Euro 34,265.14 7.3750 252,705.41
Rupiah 2,081,734,963.57 0.0005 1,049,194.42
Other notes:
(2) Note to overseas operating entities, including important overseas operating entities, which should be disclosed
about its principal business place, function currency for bookkeeping and basis for the choice. In case of any
change in function currency, the cause should be disclosed.
√ Applicable □Not applicable
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. Equities in Other Entities
(I) Equity in major subsidiaries
1. Composition of major subsidiaries
61
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Name of the Main business Share proportion %
Reg. Add. Business property Way of obtain
subsidiaries location Direct Indirect
Zhejiang Steam
Trubine Packaged
Hangzhou Hangzhou
Technologies Manufacturing 70.86% Incorporation
Zhejiang Zhejiang
Development Co.,
Ltd.
Hangzhou
Zhongneng Steam
Hangzhou Hangzhou
Turbine Power Manufacturing 60.83% Incorporation
Zhejiang Zhejiang
Co., Ltd.
(Zhongneng Co.)
Hangzhou Steam
Hangzhou Hangzhou
Turbine Casting Manufacturing 51.00% Incorporation
Zhejiang Zhejiang
Co., Ltd.
Hangzhou Steam
Turbine
Hangzhou Hangzhou
Machinery Manufacturing 52.00% Incorporation
Zhejiang Zhejiang
Equipment Co.,
Ltd.
Hangzhou Steam
Turbine Auxiliary
Hangzhou Hangzhou
Machinery Co., Manufacturing 87.53% Incorporation
Zhejiang Zhejiang
Ltd. (Auxiliary
Machinery Co.)
Zhejiang Turbine
Import & Export Hangzhou Hangzhou
Commerce 100.00% Incorporation
Co., Ltd. (Turbine Zhejiang Zhejiang
Co.)
Hangzhou Steam
Turbine Heavy
Hangzhou Hangzhou
Industry Co., Ltd. Manufacturing 100.00% Incorporation
Zhejiang Zhejiang
(Steam Turbine
Heavy Industry)
Zhejiang
Huayuan Steam
Turbine Hangzhou Hangzhou
Manufacturing 75.00% Incorporation
Machinery Co., Zhejiang Zhejiang
Ltd. (Huayuan
Co.)
Hangzhou
Hangzhou Hangzhou
Guoneng Steam Manufacturing 75.00% Incorporation
Zhejiang Zhejiang
Turbine
62
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Engineering Co.,
Ltd. (Guoneng
Co.)
Xinjiang Taifeng
Hangzhou Steam
Turbine Packaged
Xinjiang Xinjiang Manufacturing 51.00% Incorporation
Technology
Development Co.,
Ltd.
Hangzhou Bypass
Mechanical &
Hangzhou Hangzhou
Electrical Manufacturing 70.00% Incorporation
Zhejiang Zhejiang
Equipment Co.,
Ltd.
Shijiazhuang
Hangneng
Shijiazhuang Shijiazhuang
Steam Turbine Service 60.00% Incorporation
Hebei Hebei
Technology
Service Co., Ltd.
Kunming
Hangzhong
Steam Turbine Kunming Yunnan Kunming Yunnan Service 60.00% Incorporation
Technology
Sevrvice Co., Ltd.
Wulumuqi
Hangzhongneng
Steam Turbine Qulumuqi Qulumuqi
Service 60.00% Incorporation
Technology Xingjiang Xingjiang
Sevrvice Co.,
Ltd.
Tangshan
Hangneng Steam
turbine Tangshan Hebei Tangshan Hebei Service 60.00% Incorporation
Technology
Sevrvice Co., Ltd.
Jilin
Hangzhongneng
Jilin Jilin Service 60.00% Incorporation
Steam turbine
Technology
63
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Sevrvice Co., Ltd.
Guangxi
Hangzhongneng
Steam turbine Nanning Guangxi Nanning Guangxi Service 60.00% Incorporation
Technology
Sevrvice Co., Ltd.
Chengdu
Hangzhongneng
Steam turbine Chengdu Sichuan Chengdu Sichuan Service 60.00% Incorporation
Technology
Sevrvice Co., Ltd.
Luoyang
Hangzhongneng
Steam turbine Luoyang Henan Luoyang Henan Service 60.00% Incorporation
Technology
Sevrvice Co., Ltd.
Hangzhou Steam
Hangzhou Hangzhou
turbine Boiler Manufacturing 50.00% Incorporation
Zhejiang Zhejiang
Co., Ltd.
Hangzhou
Zhongneng Steam
turbine Indonesia Indonesia Manufacturing 70.00% Incorporation
(Indonesia) Co.,
Ltd.
Hangzhou
Hangzhou Hangzhou
Kaineng Casting Manufacturing 100.00% Incorporation
Zhejiang Zhejiang
Co., Ltd.
Zhejiang
Runhong
Hangzhou Hangzhou
Burming Machine Manufacturing 58.00% Incorporation
Zhejiang Zhejiang
Engineering Co.,
Ltd.
Zhejiang
Zhongrun
Burning machine Huzhou Zhejiang Huzhou Zhejiang Manufacturing 55.55% Incorporation
Technology Co.,
Ltd.
Notes：
64
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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.
Basis for holding half or less than half of the voting rights but still controlling the invested unit and basis for
holding more than half of the voting rights but failing to control the invested unit：
Basis for control over the important structured entity incorporated in the merger scope：
Basis for determining whether the Company is an agent or a client：
（2）Major non-fully-Owned subsidiaries
In RMB
Gains/loss of the period Dividend announced in Balance of equity of
Share portion of minor
Name of the subsidiaries attributable to minor the period to minor minor shareholders at
shareholders
shareholders shareholders end of period
Zhejiang Steam Turbine
Packaged Technology 29.14% 962,856.79 3,715,987.50 30,269,113.29
Development Co., Ltd.
Hangzhou Zhongneng
Steam turbine Power Co., 39.17% -2,615,428.57 3,917,200.00 139,259,317.27
Ltd.
Hangzhou Steam Turbine
49.00% 1,477,241.92 84,139,799.27
Casting Co., Ltd.
Hangzhou Steam Turbine
Machinery Equipment 48.00% 9,779,631.78 21,600,000.00 59,141,034.73
Co., Ltd.
Hangzhou Steam Turbine
Auxiliary Machinery Co., 12.47% 1,497,543.74 4,988,000.00 26,242,968.02
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.
65
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
(3 Material financial information of major non-fully-owned subsidiaries
In RMB
End of term Beginning of term
Subsidia
Non-curr Non-curr Non-curr Non-curr
ries Current Total of Current Total of Current Total of Current Total of
ent ent ent ent
Name assets assets liabilities liability assets assets liabilities liability
assets liabilities assets liabilities
Zhejiang
Steam
Turbine
Package
d 265,814, 22,582,1 288,396, 204,707, 204,707, 260,227, 22,709,0 282,936, 190,272, 190,272,
Technolo 174.33 30.59 304.92 762.21 762.21 660.63 89.71 750.34 137.49 137.49
gy
Develop
ment
Co., Ltd.
Hangzho
u
Zhongne
841,582, 78,623,2 920,205, 598,085, 330,000. 598,415, 804,557, 81,590,2 886,147, 548,736, 330,000. 549,066,
ng Steam
345.96 50.92 596.88 632.89 00 632.89 533.77 68.49 802.26 452.55 00 452.55
Turbine
PowerCo
., Ltd.
Hangzho
u Steam
244,312, 194,819, 439,132, 237,664, 29,754,4 267,418, 223,797, 199,438, 423,235, 224,664, 29,754,4 254,419,
Turbine
746.07 922.27 668.34 337.27 55.00 792.27 190.85 595.78 786.63 623.52 55.00 078.52
Casting
Co., Ltd.
Hangzho
u Steam
Turbine
Machine 189,742, 20,637,7 210,380, 87,170,1 87,170,1 185,381, 21,333,2 206,715, 59,276,5 59,276,5
ry 963.43 15.34 678.77 89.74 89.74 983.06 75.97 259.03 95.83 95.83
Equipme
nt Co.,
Ltd.
Hangzho
u Steam
390,104, 118,381, 508,485, 297,610, 427,720. 298,038, 400,114, 112,067, 512,182, 272,629, 427,720. 273,057,
Turbine
636.87 299.13 936.00 419.70 00 139.70 948.24 629.68 577.92 536.63 00 256.63
Auxiliar
y
66
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Machine
ry Co.,
Ltd.
In RMB
Amount of current period Amount of previous period
Subsidiaries
Cash flow for Cash flow for
Name Total Misc Total Misc
Turnover Net profit business Turnover Net profit business
Gains Gains
activities activities
Zhejiang
Steam
Turbine
83,612,988.7 16,927,682.5 87,432,537.3 10,039,415.1 10,039,415.1 26,392,803.8
Packaged 3,773,929.86 3,773,929.86
3 6 3 9 9 9
Technology
Development
Co., Ltd
Hangzhou
Zhongneng
341,837,358. 24,130,671.6 250,704,039. 26,860,273.9
Steam turbine -5,746,192.61 -5,746,192.61 5,081,221.70 5,081,221.70
58 9 65 7
Power Co.,
Ltd.
Hangzhou
Steam
154,101,020. 130,950,701. 29,891,575.9
Turbine 3,014,779.43 3,014,779.43 -7,002,715.11 -1,208,396.38 -1,208,396.38
08 52 7
Casting Co.,
Ltd.
Hangzhou
Steam
Turbine 87,048,057.7 20,374,232.8 20,374,232.8 20,967,344.3 91,266,078.2 22,850,938.2 22,850,938.2
4,760,780.86
Machinery 3 8 8 3 2 8 8
Equipment
Co., Ltd.
Hangzhou
Steam
Turbine 170,532,221. 12,008,146.9 12,008,146.9 20,063,610.0 198,271,553. 23,144,009.0 23,144,009.0
8,070,920.62
Auxiliary 25 0 0 4 26 0 0
Machinery
Co., Ltd.
Notes：
IX. Risks related to financial instruments
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
67
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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 June
30,2016, the credit risks feature collectiveness within the Company. 41.80% 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:
End of term
Overdue but not
impaired
Not overdue and not Within 1 year 1-2 years Over 2
Items impaired years Total
Bill receivable 545,123,313.54 545,123,313.54
Subtotal 545,123,313.54 545,123,313.54
(Continue)
Beginning of term
Overdue but not impaired Total
Within 1 year 1-2 years Over 2
Items years
Bill receivable 680,518,943.49 680,518,943.49
Subtotal 680,518,943.49 680,518,943.49
Categorizing of financial liabilities on remained period to due
Items Beginning of term
68
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Book value Contract amount not within 1 year 1-3 years Over 3
discounted years
Financial liabilities
81,
Short-term loans
81,250,000.00 84,615,643.58 84,615,643.58
Notes payable
198,065,752.08 198,065,752.08 198,065,752.08
Non-current 200,000.00 204,158.00 204,158.00
liabilities due
within one year
Long-term loans 123,400,000.00 131,010,268.00 211,718.00 130,798,550.00
Account payable
1,059,189,681.62 1,059,189,681.62 1,059,189,681.62
Other account
24,571,382.36 24,571,382.36 24,571,382.36
payable
Sub-total
1,486,676,816.06 1,497,656,885.64 1,366,858,335.64 130,798,550.00
（Continue）
Beginning 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
within one year
Long-term loans 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
Sub-total
1,243,401,556.69 1,266,958,449.94 1,124,285,644.58 142,672,805.36
(II) Liquidation risks
Liquidation risks are the possibilities of short in cash at fulfilling liabilities of payment or settlement for financial
assets. They may be caused by failing to cash financial assets at fair value instantly; debtors’ failing of paying
debts due; debts due before schedule; or failing of generating expected cash flow.
To handle these risks, the Company adopted multiple measures such as note clearance and bank loans.
Long-term and short-term financing approaches were used to maintain balance between constancy and flexibility.
The Company has obtained credit from multiple banks to satisfy the needs of business operation and capital
69
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
output.
Categorizing of financial liabilities on remained period to due
(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.
2. Foreign currency risks
Foreign currency risks (exchange rate risks) are those caused by change of fair value or expectable cash flow of
financial instruments due to fluctuation of exchange rates. These risks are mainly related to foreign currency
assets and liabilities. The Company operates in mainland China and mostly uses RMB as standard currency,
therefore no major risks regarding exchange rates.
For details of foreign currency assets and liabilities, please go to the descriptions in the notes to the consolidated
financial statements.
X. Related parties and related transactions
1.Parent company of the Company
Name of the parent Shareholding of the Voting rights of the
Reg.Add Business property Registered capital
Company parent company parent Company %
Hangzhou Steam
Hangzhou China Manufacturing RMB 800 million 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,
70
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
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
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.。
Other notes：
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., Ltd. Affiliate of the Group
Hangzhou Hangfa Power Generating Equipment Co., Ltd. Affiliate of the Group
Hangzhou Nanfangtongda Gears Co., Ltd. Affiliate of the Group
Hangzhou Nanhua Wooden Packaging Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Industrial Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Technologies Co., Ltd. Affiliate of the Group
HSTG Technology Association Affiliate of the Group
Hangzhou Steam Turbine Engineering Co., Ltd. Affiliate of the Group
Hangzhou Steam Turbine Power Group Complete Equipment
Affiliate of the Group
Engineering Co., Ltd.
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
71
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Greenesol Co.(India) Affiliates of the auxiliary Co
Notes
4.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
Trading limit Over the trading limit
Related parties Content Reporting period Prior period
approved or not
Hangzhou Steam
turbine Automobile Transportation ,
22,025,165.68 22,025,165.68 No 26,837,296.97
sales service Co., repair , etc.
Ltd.
Hangzhou Hangfa
Power Generating Generators 66,620,352.11 66,620,352.11 No 38,940,170.91
Equipment Co., Ltd.
Hangzhou Nanhua
Wooden Packaging Packaging 7,597,558.46 7,597,558.46 No 4,800,810.58
Co., Ltd.
Hangzhou Nanfang
Tongda Gears Co., Gear boxes 1,806,463.25 1,806,463.25 No 1,046,126.50
Ltd.
Hangzhou Steam Law material,
Turbine Industrial Industrial 640,102.34 640,102.34 No 973,521.04
Co., Ltd. cooperation
Hangzhou Steam
Water and
Turbine Group Co., 6,699,607.87 6,699,607.87 No 6,473,823.78
electricity
Ltd.
HSTG Technology Industrial
169,230.76
Association cooperation
Greenesol
Generators 25,380,594.36
Co.(India)
HSTG (Hangzhou)
United Institutes Technical service 277,500.00 277,500.00 No
Co., Ltd.
Hangzhou Steam
Turbine
Project design fee 2,420,773.08 2,420,773.08 No
Engineering Co.,
Ltd
Hangzhou Steam
Law material 770,000.00
Turbine Electronic
72
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Tube Co., Ltd
Hangzhou Wandong Industrial
13,333.33 13,333.33 No
Electric Co., Ltd cooperation
Subtotal 108,100,856.11 108,100,856.11 105,391,574.90
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 Cast part, industrial
5,447,419.07 6,359,396.39
Generating Equipment Co.,Ltd. cooperation
Hangzhou Steam Turbine
Steam turbine 136,752.14 3,447,863.25
Engineering Co., Ltd.
Hangzhou Steam Turbine
Automobile Sales Service Co., Small amount materials 376.09 250.03
Ltd.
Hangzhou Nanhua Wooden
Small amount materials 854.70
Packaging Co., Ltd
Greenesol Co.(India) Steam turbine 1,664,712.44 1,101,423.11
Hangzhou Steam Turbine Compressor, Industrial
76,923.08 70,050.00
Compressor Co., Ltd. cooperation
HSTG Technology Association Industrial cooperation 136,923.08
Hangzhou Steam Turbine
Power Group Complete
Steam Turbine -531,623.94
Equipment Engineering Co.,
Ltd.
Subtotal 7,326,182.82 10,585,136.62
Notes
（2）Information of related lease
The Company was lessor
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of lease assets
this year last year
Hangzhou Steam Turbine
Office 70,050.00
Compressor Co., Ltd.
The company was lessee
In RMB
73
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
Hangzhou Steam Turbine
House and Building 474,116.80 989,013.38
Power Group Co., Ltd.
Hangzhou Steam Turbine
Automobile Sales Service Co., Site leasing 782,514.62 3,611,046.39
Ltd.
Subtotal 1,256,631.42 4,600,059.77
Notes
（3）Related-party guarantee
The Company was secured party
In RMB
The Company was
Execution accomplished
secured party Guarantee amount Start date End date
or not
The Company was guarantor
In RMB
Execution accomplished
The Guarantor Guarantee amount Start date End date
or not
Hangzhou Steam Turbine
100,000,000.00 December 18,2015 December 17,2017 No
Group
Notes
（4）Remunerations of key managements
In RMB
Items Current term Same period of last term
Remunerations of key managements
2,269,038.36 2,819,750.04
(5) Other related transactions
(1) Service and power supply
HSTG supplies water and power to the Company and some of the subsidiaries amounted to RMB6,699,607.87
this period. Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. provided transportation to the
Company’s employees and RMB1,163,700 was paid this period. Hangzhou Steam Turbine Industry Co., Ltd.
provided cleaning services to the Company and RMB649,999 was paid this period.
(2) Expenses paid on behalf the Company
Hangzhou Steam Turbine Automobile Sales & Service Co., Ltd. paid RMB3,273,754.06 of tarrif on behalf of
Turbine Co. during the period.
5. Receivables and payables of related parties
74
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
（1）Receivables
In RMB
End of term Beginning of term
Name Related party
Book balance Bad debt provision Book balance Bad debt provision
Hangzhou Steam
Account receivable Turbine Engineering 49,443,305.99 4,645,744.80 49,710,305.99 3,657,185.10
Co., Ltd.
Hangzhou Hangfa
Power Generating 18,158,771.60 1,219,227.16 16,174,291.35 972,428.47
Equipment Co., Ltd.
Hangzhou Steam
Turbine Power
Group Complete
310,060.00 186,036.00 310,060.00 186,036.00
Equipment
Engineering Co.,
Ltd.
Hangzhou Steam
Turbine Compressor 59,000.00 2,950.00 236,000.00 11,800.00
Co., Ltd.
Hangzhou Steam
Turbine Power 158,500.00 158,500.00 258,500.00 163,500.00
Group Co., Ltd.
Hangzhou Steam
Turbine Automobile
16.48 0.82
Sales Service Co.,
Ltd.
Greenesol Co.(India) 9,787,366.91 1,317,871.44 14,642,682.67 8,785,609.60
Subtotal 77,917,004.50 7,530,329.40 81,331,356.49 13,776,059.99
Hangzhou Steam
Prepayment Turbine Engineering 2,340,000.00 2,270,000.00
Co., Ltd.
Hangzhou Hangfa
Power Generating 23,444,325.00 26,834,825.00
Equipment Co., Ltd.
Hangzhou Nanfang
Tongda Gears Co., 89,200.00
Ltd.
Subtotal 25,873,525.00 29,104,825.00
（2）Payables
75
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
In RMB
Name Related party Amount at year Amount at year beginning
Hangzhou Hangfa Power
Account payable 110,977,555.02 100,434,643.05
Generating Equipment Co., Ltd.
Greenesol Co.(India) 9,059,276.95 8,495,882.02
Hangzhou Steam Turbine
1,740,622.57 5,251,995.90
Power Group Co., Ltd.
Hangzhou Steam Turbine
Automobile Sales Service Co., 895,770.30 2,737,416.93
Ltd
Hangzhou Nanhua Wooden
1,983,010.17 404,433.00
Packaging Co., Ltd.
Hangzhou Steam Turbine
1,860,000.00 380,000.00
Engineering Co., Ltd.
HSTG (Hangzhou) United
101,175.00 153,000.00
Institutes Co., Ltd.
Hangzhou Nanfang Tongda
1,704,800.00 112,273.00
Gears Co., Ltd.
Hangzhou Steam Turbine
252,316.50 8,440.00
Industrial Co., Ltd.
Subtotal 128,574,526.51 117,978,083.90
Hangzhou Steam Turbine
Advances received 65,967,420.00 55,573,740.00
Engineering Co., Ltd.
Hangzhou Steam Turbine
14,190,000.00 14,235,000.00
Compressor Co., Ltd.
Greenesol Co.(India) 582,415.04
Subtotal 80,739,835.04 69,808,740.00
Hangzhou Steam Turbine
Other account payable 6,828,737.55 6,050,024.82
Group
Hangzhou Steam Turbine
Automobile Sales Service Co., 100,000.00
Ltd.
Subtotal 6,928,737.55 6,050,024.82
XI. Other Material Issues
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;
76
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
(2) Operational results can be assessed by the management to decide the resources to be allocated;
(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.
2..Other important impact on investor decision-making transactions and events
XII. Notes to the Financial Statements of the Parent Co.
1. Account receivable
（1）Detailed categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Book value
Amount Amount value Amount Amount Proportion
n n n
Account receivables
2,236,8
provided bad debt 2,183,24 711,425, 1,471,822 599,432,1 1,637,391,6
98.65% 32.59% 23,799. 98.68% 26.80%
provision in credit 8,730.63 941.13 ,789.50 26.23 72.98
21
risk groups
Account receivable
with minor individual 29,819,6 29,819,6 29,819, 29,819,60
1.35% 100.00% 1.32% 100.00%
amount but bad debt 07.69 07.69 607.69 7.69
provision is provided
2,266,6
2,213,06 741,245, 1,471,822 629,251,7 1,637,391,6
Total 100.00% 33.49% 43,406. 100.00% 27.76%
8,338.32 548.82 ,789.50 33.92 72.98
90
Receivables with individually significant amount and provision for bad and doubtful debts individually provided
at the end of the reporting period.
□ Applicable √Not applicable
Receivable accounts in the group on which bad debt provisions are provided on age basis
√ Applicable □Not applicable
In RMB
End of term
Aging
Other receivable account Bad debt provision Proportion%
Subitem within 1 year
Within 1 year 527,743,846.17 26,387,192.31 5.00%
Subtotal within 1 year 527,743,846.17 26,387,192.31 5.00%
1-2 years 406,874,447.40 40,687,444.74 10.00%
2-3 years 474,080,455.10 142,224,136.53 30.00%
Over 3 years 638,497,510.07 502,127,167.55 78.64%
77
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
3-4 years 221,636,315.11 132,981,789.07 60.00%
4-5 years 238,579,082.35 190,863,265.87 80.00%
Over 5 years 178,282,112.61 178,282,112.61 100.00%
Total 2,047,196,258.74 711,425,941.13
Receivable accounts combined within consolidating range for providing of bad debt provisions
End of term
Name
Book balance Bad debt provision Providing rate %
Combinations of related 136,052,471.89
transactions in consolidation
range
Subtotal 136,052,471.89
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.
Receivables with provision for bad and doubtful debts based on the balance percentage method in the portfolio
Not applicable
Receivables with provision for bad and doubtful debts based on the other method in the portfolio
（2）Top 5 of the closing balance of the accounts receivable collated according to the arrears party
Provision for bad
Name Nature Book balance Aging Proportion%
debts
Clients 1 Goods 731,099,586.92 1-9 years 33.02% 248,033,881.74
Clients 2 Goods 348,865,840.80 1-9 years 15.76% 155,544,016.8
Clients 3 Goods 38,934,865.99 1-3 years 1.76% 2,179,9.80
Clients 4 Goods 35,773,604.12 1 year 1.62% 1,788,680.21
Clients 5 Goods 19,379,54.30 1 year 0.88% 968,975.22
Total 1,174,053,42.13 53.03% 408,514,563.75
2. 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 Book
Proportio Proportio Proportio Book value
Amount Amount value Amount Amount Proportion
n n n
Other receivables
provided bad debt 9,558,65 2,074,89 7,483,761 14,390, 2,145,188 12,245,371.
72.04% 21.71% 79.50% 14.91%
provision in credit 3.28 2.22 .06 560.25 .28 97
risk groups
Other account
3,710,32 27.96% 3,710,32 100.00% 3,710,3 20.50% 3,710,320 100.00%
receivable with
78
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
minor individual 0.94 0.94 20.94 .94
amount but bad debt
provision is provided
13,268,9 5,785,21 7,483,761 18,100, 5,855,509 12,245,371.
Total 100.00% 43.60% 100.00% 32.35%
74.22 3.16 .06 881.19 .22 97
Other receivables with individually significant amount and provision for bad and doubtful debts individually
provided at the end of the reporting period.
Not applicable
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 2,726,390.34 136,319.51 5.00%
Subtotal within 1 year 2,726,390.34 136,319.51 5.00%
1-2 years 2,785,526.90 278,552.69 10.00%
2-3 years 1,439,004.72 431,701.42 30.00%
Over 3 years 1,518,355.40 1,228,318.60 80.90%
3-4 years 428,692.00 257,215.20 60.00%
4-5 years 592,800.00 474,240.00 80.00%
Over 5 years 496,863.40 496,863.40 100.00%
Total 8,469,277.36 2,074,892.22
Receivable accounts combined within consolidating range for providing of bad debt provisions
End of term
Name
Book balance Bad debt provision Providing rate %
Combinations of related 1,089,375.92
transactions in consolidation
range
Subtotal 1,089,375.92
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.
Other receivables with provision for bad and doubtful debts based on the balance percentage method in the
portfolio
Not applicable
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio
Not applicable
（2） Combination of other receivable accounts
79
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
In RMB
Account property End of term Beginning of term
Deposit 6,671,833.00 10,737,764.50
Provisional payment receivable 5,939,471.74 7,281,453.09
Petty cash 479,000.00 66,000.00
Other 178,669.48 15,663.60
Total 13,268,974.22 18,100,881.19
（3）Top 5 of the closing balance of Other accounts receivable collated according to the arrears party
In RMB
Percentage in total
Name of the company Account property Book balance Age Bad debt provision
other receivable %
Shanghai Customs
Import CNC lathe 3,710,320.94 Over 5 years 27.96% 3,710,320.94
Waigaoqiao Office
Back pressure
turbine project of
Guodian Trust
Datang International 500,017.00 1 year 3.77% 25,000.85
Bidding Co., Ltd.
Zhangjiakou power
plant
Beijing Guodian
Engineering Bidding Taizhou Project 500,000.00 5 years 3.77% 400,000.00
Co., Ltd.
Guodian Longyuan Inner Mongolia
Power Technology Wusitai Thermal 500,000.00 3 years 3.77% 150,000.00
Engineering Co., Ltd. Power project
Jian2*50MWsteam
Jian Group Co., Ltd. 500,000.00 2 years 3.77% 50,000.00
Turbine Project
Total -- 5,710,337.94 -- 43.04% 4,335,321.79
3. Long-term share equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
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 to the subsidiary
In RMB
80
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Touping Imports &
20,000,000.00 20,000,000.00
Exports Co.
Heavy Industry
360,000,000.00 360,000,000.00
Co.
Auxiliary Machine
46,286,513.41 46,286,513.41
Co
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
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 865,641,911.52 540,221,337.74 605,562,263.07 411,394,602.32
Other business 8,058,477.84 5,896,004.22 15,011,785.21 13,842,788.87
Total 873,700,389.36 546,117,341.96 620,574,048.28 425,237,391.19
Other notes：
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Investment income form holding
2,587,659.70
available-for-sale equity instrument
Long-term equity investment income by
73,528,812.50 146,450,783.00
Cost method
Investment income of financial products 2,697,347.51 438,410.96
Total 78,813,819.71 146,889,193.96
6.Other
81
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
XIII. Supplement information
1. Particulars about current non-recurring gains and loss
In RMB
Items Amount Notes
Gains/losses from the disposal of
-163,899.82
non-current asset
Governmental subsidy calculated into
current gains and loess（while closely related
with the normal business of the Company,
318,530.00
excluding the fixed-amount or
fixed-proportion governmental subsidy
according to the unified national standard）
Gains and losses from change of fair values
of held-for-transaction financial assets and
financial liabilities except for the effective
hedge business related to normal business of
11,457,674.92
the Company, and investment income from
disposal of transactional financial assets and
liabilities and financial assets available for
sale
Other non-business income and expenditures
6,338,781.73
other than the above
Less: Influenced amount of income tax 3,485,076.88
Amount of influence of minority interests 2,239,933.81
Total 12,226,076.14 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
-0.74% -0.04 -0.04
shareholders of the Company
Net profit attributable to common -1.03% -0.060 -0.060
82
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
shareholders of the Company after
deduction of non-recurring profit
and loss
3.The differences between domestic and international accounting standards
(1) Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
(2) Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
4.Other
83
Hangzhou Steam Turbine Co., Ltd. Semi-Annual Report 2016
8
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