Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2019-52
Hangzhou Steam Turbine Co., Ltd.
SEMIANNUAL FINANCIAL REPORT 2019
（ ：200771）
Stock Code
August 2019
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 30,2019
In RMB
||||
|-|-|-|
|Items|June 30,2019|December 31,2018|
|Current asset：|||
|Monetary fund|1,819,859,022.91|1,382,392,009.59|
|Settlement provision|||
|Outgoing call loan|||
|Transactional financial assets|578,769,000.00||
|Financial assets measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Notes receivable|480,606,384.84|595,089,175.22|
|Account receivable|2,060,368,351.36|1,940,798,255.26|
|Financing of receivables|||
|Prepayments|415,291,957.37|370,958,990.74|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Other account receivable|102,819,441.41|32,552,458.76|
|Including：Interest receivable|0.00|0.00|
|Dividend receivable|84,526,094.10|16,557,292.60|
|Repurchasing of financial assets|||
|Inventories|2,222,781,933.26|2,188,121,342.87|
|Contract assets|||
|Assets held for sales|||
|Non-current asset due within 1 year|||
|Other current asset|65,115,936.29|1,188,747,955.74|
|Total of current assets|7,745,612,027.44|7,698,660,188.18|
|Non-current assets：|||
|Loans and payment on other’s behalf disbursed|||

||||
|-|-|-|
|Debt investment|||
|Available for sale of financial assets|0.00|2,130,076,555.20|
|Other investment on bonds|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|10,261,439.29|8,221,439.29|
|Other equity instruments investment|2,264,720,465.98|0.00|
|Other non-current financial assets|131,881,883.86|0.00|
|Property investment|||
|Fixed assets|761,603,992.58|783,740,928.49|
|Construction in progress|659,588,447.28|454,767,328.93|
|Production physical assets|||
|Oil & gas assets|||
|Use right assets|||
|Intangible assets|276,098,586.15|279,740,756.49|
|Development expenses|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|214,788,537.17|213,962,707.23|
|Other non-current asset|||
|Total of non-current assets|4,318,943,352.31|3,870,509,715.63|
|Total of assets|12,064,555,379.75|11,569,169,903.81|
|Current liabilities|||
|Short-term loans|97,500,000.00|139,600,000.00|
|Loan from Central Bank|||
|Borrowing funds|||
|Transactional financial liabilities|||
|Financial liabilities measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|237,870,569.88|263,897,462.79|
|Account payable|1,188,329,724.43|1,086,685,918.74|
|Advance receipts|2,555,520,011.33|2,582,234,158.36|
|Selling of repurchased financial assets|||
|Deposit taking and interbank deposit|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Employees’ wage payable|65,138,079.59|86,390,955.29|
|Tax payable|22,926,791.79|62,405,200.62|
|Other account payable|37,609,410.52|36,904,303.01|

||||
|-|-|-|
|Including：Interest payable|100,958.90|437,314.72|
|Dividend payable|0.00|0.00|
|Fees and commissions payable|||
|Reinsurance fee payable|||
|Contract Liabilities|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|100,100,000.00|100,100,000.00|
|Other current liability|||
|Total of current liability|4,304,994,587.54|4,358,217,998.81|
|Non-current liabilities：|||
|Reserve fund for insurance contracts|||
|Long-term loan|22,600,000.00|22,700,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Lease liability|||
|Long-term payable|785,666,859.28|474,876,451.26|
|Long-term remuneration payable to staff|||
|Expected liabilities|||
|Deferred income|42,773,215.20|44,675,128.30|
|Deferred income tax liability|282,127,222.10|244,169,946.57|
|Other non-current liabilities|||
|Total non-current liabilities|1,133,167,296.58|786,421,526.13|
|Total of liability|5,438,161,884.12|5,144,639,524.94|
|Owners’ equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|151,684,419.65|151,684,419.65|
|Less：Shares in stock|||
|Other comprehensive income|1,592,318,152.64|1,377,168,522.74|
|Special reserve|20,236,633.76|21,020,671.47|
|Surplus reserves|621,112,807.78|621,112,807.78|
|Common risk provision|||
|Retained profit|3,092,067,160.53|3,082,544,107.52|
|Total of owner’s equity belong to the parent company|6,231,429,574.36|6,007,540,929.16|
|Minority shareholders’ equity|394,963,921.27|416,989,449.71|
|Total of owners’ equity|6,626,393,495.63|6,424,530,378.87|

||||
|-|-|-|
|Total of liabilities and owners’ equity|12,064,555,379.75|11,569,169,903.81|

2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|June 30,2019|December 31,2018|
|Current asset：|||
|Monetary fund|1,186,805,183.26|877,357,020.98|
|Transactional financial assets|270,000,000.00||
|Financial assets measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Notes receivable|183,102,369.76|302,284,986.43|
|Account receivable|1,518,779,763.11|1,374,628,210.45|
|Financing of receivables|||
|Prepayments|209,504,216.64|208,498,421.20|
|Other account receivable|89,097,232.56|19,984,760.06|
|Including：Interest receivable|||
|Dividend receivable|84,526,094.10|16,557,292.60|
|Inventories|1,555,631,232.70|1,584,030,951.83|
|Contract assets|||
|Assets held for sales|||
|Non-current asset due within 1 year|||
|Other current asset|19,651,815.47|890,000,000.00|
|Total of current assets|5,032,571,813.50|5,256,784,350.95|
|Non-current assets：|||
|Debt investment|||
|Available for sale of financial assets||2,090,631,297.62|
|Other investment on bonds|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|860,732,321.62|502,919,378.03|
|Other equity instruments investment|2,264,720,465.98||
|Other non-current financial assets|92,436,626.28||
|Property investment|||
|Fixed assets|439,398,797.03|448,890,495.75|
|Construction in progress|236,257,765.82|142,310,055.48|
|Production physical assets|||
|Oil & gas assets|||
|Use right assets|||
|Intangible assets|163,711,361.27|165,734,347.73|
|Development expenses|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|163,692,893.96|163,871,631.81|
|Other non-current asset|||

||||
|-|-|-|
|Total of non-current assets|4,220,950,231.96|3,514,357,206.42|
|Total of assets|9,253,522,045.46|8,771,141,557.37|
|Current liabilities|||
|Short-term loans|||
|Transactional financial liabilities|||
|Financial liabilities measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|14,000,000.00|24,200,000.00|
|Account payable|654,106,514.35|630,653,099.86|
|Advance receipts|1,780,682,848.49|1,877,069,335.29|
|Contract Liabilities|||
|Employees’ wage payable|38,755,706.92|43,332,523.01|
|Tax payable|480,555.24|37,809,874.53|
|Other account payable|22,183,637.69|24,708,959.22|
|Including：Interest payable|100,958.90|212,010.69|
|Dividend payable|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|100,000,000.00|100,000,000.00|
|Other current liability|||
|Total of current liability|2,610,209,262.69|2,737,773,791.91|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Lease liability|||
|Long-term payable|575,788,940.88|264,512,388.24|
|Long-term remuneration payable to staff|||
|Expected liabilities|||
|Deferred income|41,269,230.20|41,944,793.30|
|Deferred income tax liability|282,127,222.10|244,169,946.57|
|Other non-current liabilities|||
|Total non-current liabilities|899,185,393.18|550,627,128.11|
|Total of liability|3,509,394,655.87|3,288,400,920.02|
|Owners’ equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|138,953,250.09|138,953,250.09|
|Less：Shares in stock|||
|Other comprehensive income|1,592,701,462.08|1,377,784,111.74|
|Special reserve|7,391,229.80|7,609,505.31|
|Surplus reserves|602,356,402.65|602,356,402.65|

||||
|-|-|-|
|Retained profit|2,648,714,644.97|2,602,026,967.56|
|Total of owners’ equity|5,744,127,389.59|5,482,740,637.35|
|Total of liabilities and owners’ equity|9,253,522,045.46|8,771,141,557.37|

3.Consolidated Income Statement
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I. Income from the key business|1,920,181,703.03|2,284,130,982.13|
|Incl：Business income|1,920,181,703.03|2,284,130,982.13|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,814,433,246.91|2,107,752,481.78|
|Incl：Business cost|1,366,404,401.26|1,612,116,152.26|
|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|13,458,140.99|29,819,229.04|
|Sales expense|86,895,939.32|77,008,302.22|
|Administrative expense|235,168,325.98|237,456,060.16|
|R & D expense|116,760,942.52|151,349,561.03|
|Financial expenses|-4,254,503.16|3,177.07|
|Including：Interest expense|7,163,329.72|5,903,346.62|
|Interest income|13,686,150.29|6,286,823.72|
|Add：Other income|15,761,589.03|20,337,694.45|
|Investment gain（“-”for loss）|99,460,322.66|37,144,607.44|
|Including: investment gains from affiliates|||
|Financial assets measured at amortized cost cease to be recognized as|||
|income|||
|Gains from currency exchange|||
|Net exposure hedging income|||
|Changing income of fair value|-1,474,755.34||
|Credit impairment loss|||
|Impairment loss of assets|6,423,806.70|-43,111,352.82|
|Assets disposal income|-1,183.02||
|III. Operational profit（“-”for loss）|225,918,236.15|190,749,449.42|
|Add ：Non-operational income|744,839.16|4,189,726.48|

||||
|-|-|-|
|Less: Non-operating expense|5,220,762.28|2,591,154.54|
|IV. Total profit(“-”for loss)|221,442,313.03|192,348,021.36|
|Less：Income tax expenses|36,775,399.29|31,977,871.82|
|V. Net profit|184,666,913.74|160,370,149.54|
|(I) Classification by business continuity|||
|1.Net continuing operating profit|||
|2.Termination of operating net profit|||
|(II) Classification by ownership|||
|1.Net profit attributable to the owners of parent company|160,325,133.00|128,510,594.01|
|2.Minority shareholders’ equity|24,341,780.74|31,859,555.53|
|VI. Net after-tax of other comprehensive income|215,462,868.76|-72,709,845.63|
||215,149,629.90|-72,663,722.00|
|Net of profit of other comprehensive income attributable to owners of the|||
|parent company.|||
|（I）Other comprehensive income items that will not be reclassified into|||
||214,917,350.34|0.00|
|gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or net a|||
|ssets|||
|2.Other comprehensive income under the equity method investee can not|||
|be reclassified into profit or loss.|||
|3. Changes in the fair value of investments in other equity instruments|214,917,350.34||
|4. Changes in the fair value of the company’s credit risks|||
|5.Other|||
|（II）|||
||232,279.56|-72,663,722.00|
|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. Changes in the fair value of investments in other debt obligations|||
|||-72,629,519.42|
|3.Gains and losses from changes in fair value available for sale financial|||
|assets|||
|4. Other comprehensive income arising from the reclassification of|||
|financial assets|||
|5.Held-to-maturity investments reclassified to gains and losses of availabl|||
|e for sale financial assets|||
|6. Allowance for credit impairments in investments in other debt|||
|obligations|||
|7. Reserve for cash flow hedges|||
|8. Translation differences in currency financial statements|232,279.56|-34,202.58|
|9.Other|||
|Net of profit of other comprehensive income attributable to Minority|||
||313,238.86|-46,123.63|
|shareholders’ equity|||
|VII. Total comprehensive income|400,129,782.50|87,660,303.91|

||||
|-|-|-|
|Total comprehensive income attributable to the owner of the parent|||
||375,474,762.90|55,846,872.01|
|company|||
|Total comprehensive income attributable minority shareholders|24,655,019.60|31,813,431.90|
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.21|0.17|
|(II)Diluted earnings per share|0.21|0.17|

4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I. Income from the key business|1,201,433,732.23|1,490,738,884.48|
|Incl：Business cost|868,692,769.43|1,092,425,706.34|
|Business tax and surcharge|6,969,423.29|19,980,875.77|
|Sales expense|48,049,960.92|42,075,448.13|
|Administrative expense|159,919,647.14|154,842,987.96|
|R & D expense|72,044,163.87|112,115,169.45|
|Financial expenses|-7,258,639.20|-1,279,101.79|
|Including：Interest expenses|3,304,641.54|2,904,737.05|
|Interest income|12,022,468.87|4,229,484.01|
|Add：Other income|5,455,874.12|18,256,287.33|
|Investment gain（“-”for loss）|152,548,740.20|97,645,790.91|
|Including: investment gains from affiliates|||
|Financial assets measured at amortized cost cease to be recognized as|||
|income|||
|Net exposure hedging income|||
|Changing income of fair value|-1,474,755.34||
|Credit impairment loss|||
|Impairment loss of assets|-2,195,339.82|32,973,333.00|
|Assets disposal income|||
|II. Operational profit（“-”for loss）|211,741,605.58|153,506,543.86|
|Add ：Non-operational income|631,962.46|4,125,525.27|
|Less：Non -operational expenses|2,904,084.35|991,089.95|
|III. Total profit(“-”for loss)|209,469,483.69|156,640,979.18|
|Less：Income tax expenses|11,979,726.29|14,024,749.88|
|IV. Net profit|197,489,757.40|142,616,229.30|
|1.Net continuing operating profit|197,489,757.40|142,616,229.30|
|2.Termination of operating net profit|||
|V. Net after-tax of other comprehensive income|214,917,350.34|-72,629,519.42|
|（I）Other comprehensive income items that will not be reclassified into|||
||214,917,350.34||
|gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or net assets|||
|2.Other comprehensive income under the equity method investee can not be rec|||
|lassified into profit or loss.|||
|3. Changes in the fair value of investments in other equity instruments|214,917,350.34||
|4. Changes in the fair value of the company’s credit risks|||
|5.Other|||
|（II）||-72,629,519.42|
|Other comprehensive income that will be reclassified into profit or loss.|||
|1.Other comprehensive income under the equity method investee can be reclass|||
|ified into profit or loss.|||
|2. Changes in the fair value of investments in other debt obligations|||
|3. Gains and losses from changes in fair value available for sale financial assets||-72,629,519.42|

||||
|-|-|-|
|4. Other comprehensive income arising from the reclassification of financial||-72,629,519.42|
|assets|||
|5.Held-to-maturity investments reclassified to gains and losses of available for|||
|sale financial assets|||
|6. Allowance for credit impairments in investments in other debt obligations|||
|7. Reserve for cash flow hedges|||
|8. Translation differences in currency financial statements|||
|9.Other|||
|VI. Total comprehensive income|412,407,107.74|69,986,709.88|
|VII. Earnings per share|||
|（I）Basic earnings per share|0.26|0.19|
|(II)Diluted earnings per share|0.26|0.19|

5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|1,518,810,866.20|1,990,685,784.21|
|Net increase of customer deposits and capital kept for brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Cash received from interest, commission charge and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Net cash received by agent in securities trading|||
|Tax returned|5,744,179.17|2,343,735.23|
|Other cash received from business operation|26,127,131.84|21,813,193.03|
|Sub-total of cash inflow|1,550,682,177.21|2,014,842,712.47|
|Cash paid for purchasing of merchandise and services|898,280,785.94|848,782,286.99|
|Net increase of client trade and advance|||
|Net increase of savings in central bank and brother company|||
|Cash paid for original contract claim|||
|Net increase in financial assets held for trading purposes|||
|Net increase for Outgoing call loan|||
|Cash paid for interest, processing fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|379,575,581.35|354,090,861.86|
|Taxes paid|180,054,533.44|170,805,653.61|
|Other cash paid for business activities|102,111,872.85|83,376,719.28|
|Sub-total of cash outflow from business activities|1,560,022,773.58|1,457,055,521.74|
|Net cash generated from /used in operating activities|-9,340,596.37|557,787,190.73|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|0.00|100,000,000.00|

||||
|-|-|-|
|Cash received as investment gains|31,491,521.16|37,144,607.44|
|Net cash retrieved from disposal of fixed assets, intangible assets, and other|24,493.28|0.00|
|long-term assets|||
|Net cash received from disposal of subsidiaries or other operational units|||
|Other investment-related cash received|2,050,778,164.28|2,054,176,329.00|
|Sub-total of cash inflow due to investment activities|2,082,294,178.72|2,191,320,936.44|
|Cash paid for construction of fixed assets, intangible assets and other|228,526,111.45|207,219,715.24|
|long-term assets|||
|Cash paid as investment|13,440,000.00|16,000,000.00|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|1,157,904,000.00|2,477,114,000.00|
|Sub-total of cash outflow due to investment activities|1,399,870,111.45|2,700,333,715.24|
|Net cash flow generated by investment|682,424,067.27|-509,012,778.80|
|III.Cash flow generated by financing|||
|Cash received as investment|0.00|0.00|
|Including: Cash received as investment from minor shareholders|||
|Cash received as loans|77,700,000.00|115,000,000.00|
|Cash received from bond placing|||
|Other financing –related cash received|0.00|0.00|
|Sub-total of cash inflow from financing activities|77,700,000.00|115,000,000.00|
|Cash to repay debts|119,900,000.00|72,600,000.00|
|Cash paid as dividend, profit, or interests|203,426,853.46|70,365,668.92|
|Including: Dividend and profit paid by subsidiaries to minor shareholders|||
|Other cash paid for financing activities|2,530,666.67|2,530,666.67|
|Sub-total of cash outflow due to financing activities|325,857,520.13|145,496,335.59|
|Net cash flow generated by financing|-248,157,520.13|-30,496,335.59|
|IV. Influence of exchange rate alternation on cash and cash equivalents|-707,669.86|-516,323.71|
|V.Net increase of cash and cash equivalents|424,218,280.91|17,761,752.63|
|Add: balance of cash and cash equivalents at the beginning of term|1,262,186,817.20|1,137,492,834.83|
|VI ..Balance of cash and cash equivalents at the end of term|1,686,405,098.11|1,155,254,587.46|

6. Cash flow statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Semi-annual of 2019|Semi-annual of 2018|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|771,903,511.87|1,092,421,368.98|
|Tax returned|||
|Other cash received from business operation|13,952,892.56|5,955,302.39|
|Sub-total of cash inflow|785,856,404.43|1,098,376,671.37|
|Cash paid for purchasing of merchandise and services|469,234,191.52|437,942,428.63|
|Cash paid to staffs or paid for staffs|246,224,211.20|227,570,629.51|
|Taxes paid|109,451,334.92|90,652,184.51|
|Other cash paid for business activities|43,083,180.34|26,292,496.98|
|Sub-total of cash outflow from business activities|867,992,917.98|782,457,739.63|
|Net cash generated from /used in operating activities|-82,136,513.55|315,918,931.74|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving||100,000,000.00|
|Cash received as investment gains|84,579,938.70|97,645,790.91|
|Net cash retrieved from disposal of fixed assets, intangible assets,|||
|and other long-term assets|||
|Net cash received from disposal of subsidiaries or other|||
|operational units|||
|Other investment-related cash received|1,236,201,629.52|1,510,049,339.73|
|Sub-total of cash inflow due to investment activities|1,320,781,568.22|1,707,695,130.64|
|Cash paid for construction of fixed assets, intangible assets and|||
||102,779,580.07|67,740,573.08|
|other long-term assets|||
|Cash paid as investment|369,212,943.59|16,000,000.00|
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|302,000,000.00|1,780,000,000.00|
|Sub-total of cash outflow due to investment activities|773,992,523.66|1,863,740,573.08|
|Net cash flow generated by investment|546,789,044.56|-156,045,442.44|
|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|154,217,773.32|40,616,895.37|
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to financing activities|154,217,773.32|40,616,895.37|
|Net cash flow generated by financing|-154,217,773.32|-40,616,895.37|
|IV. Influence of exchange rate alternation on cash and cash|||
||-976,692.26|-333,572.64|
|equivalents|||
|V.Net increase of cash and cash equivalents|309,458,065.43|118,923,021.29|
|Add: balance of cash and cash equivalents at the beginning of|||
||842,347,117.83|650,546,455.53|
|term|||

||||
|-|-|-|
|VI ..Balance of cash and cash equivalents at the end of term|1,151,805,183.26|769,469,476.82|

7. Consolidated Statement on Change inOwners’ Equity
Amount in this period
In RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2019|||||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||||
|||Other Equity||||Less||||||||||
|||||||||||Com||||||
|||instrument||||||||||||||
|||||||:||||||||Minor||
|Items|||||||Other|||mon|||||Total of owners’|
|||||||Shar||Specialized|Surplus|||Oth||shareholders’||
||share Capita|preferre|Sustai|Othe|Capital reserves|es in|Comprehens|reserve|reserves|risk|Retained profit|er|Subtotal|equity|equity|
|||d stock|nable|r||stoc|ive Income|||provi||||||
||||debt|||k||||sion||||||
||754,010,400||||||1,377,168,5||621,112,8||3,082,544,107.5||6,007,540,929.1|416,989,449.7|6,424,530,378.8|
|I.Balance at the end of last year|||||151,684,419.65|||21,020,671.47||||||||
||.00||||||22.74||07.78||2||6|1|7|
|Add: Change of accounting policy|||||||||||||0.00||0.00|
|Correcting of previous errors|||||||||||||0.00||0.00|
|Merger of entities under common||||||||||||||||
||||||||||||||0.00||0.00|
|control||||||||||||||||
|Other|||||||||||||0.00||0.00|
|II.Balance at the beginning of||||||||||||||||
||754,010,400||||||1,377,168,5||621,112,8||3,082,544,107.5||6,007,540,929.1|416,989,449.7|6,424,530,378.8|
||||||151,684,419.65|||21,020,671.47||||||||
|current year|.00||||||22.74||07.78||2||6|1|7|
||||||||215,149,629|||||||-22,025,528.4||
|III.Changed in the current year|0.00|0.00|0.00|0.00|0.00|0.00||-784,037.71|0.00|0.00|9,523,053.01|0.00|223,888,645.20||201,863,116.76|
||||||||.90|||||||4||
||||||||215,149,629|||||||||
|（1）Total comprehensive income|||||||||||160,325,133.00||375,474,762.90|24,655,019.60|400,129,782.50|
||||||||.90|||||||||
|（II）Investment or decreasing of||||||||||||||||
||||||||||||||0.00||0.00|
|capital by owners||||||||||||||||
|1．Ordinary Shares invested by s|||||||||||||0.00||0.00|

||||||
|-|-|-|-|-|
|hareholders|||||
|2．Holders of other equity instru|||||
|||0.00||0.00|
|ments invested capital|||||
|3．Amount of shares paid and|||||
|||0.00||0.00|
|accounted as owners’ equity|||||
|4．Other||0.00||0.00|
||||-46,358,790.0||
|（III）Profit allotment|-150,802,079.99|-150,802,079.99||-197,160,869.99|
||||0||
|1.Providing of surplus reserves||0.00||0.00|
|2.Providing of common risk|||||
|||0.00||0.00|
|provisions|||||
|3．Allotment to the owners (or|||||
||||-46,358,790.0||
||-150,802,079.99|-150,802,079.99||-197,160,869.99|
|shareholders)|||0||
|4．Other||0.00||0.00|
|(IV) Internal transferring of|||||
|||0.00||0.00|
|owners’ equity|||||
|1. Capitalizing of capital reserves|||||
|||0.00||0.00|
|(or to capital shares)|||||
|2. Capitalizing of surplus reserves|||||
|||0.00||0.00|
|(or to capital shares)|||||
|3．Making up losses by surplus|||||
|||0.00||0.00|
|reserves.|||||
|4.Change amount of defined|||||
|benefit plans that carry forward||0.00||0.00|
|Retained earnings|||||
|5．Other comprehensive income|||||
|||0.00||0.00|
|carry-over retained earnings|||||

|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|6．Other|||||||||||||0.00||0.00|
|(V). Special reserves||||||||-784,037.71|||||-784,037.71|-321,758.04|-1,105,795.75|
|1. Provided this year||||||||434,456.69|||||434,456.69||434,456.69|
|2．Used this term||||||||1,218,494.40|||||1,218,494.40|321,758.04|1,540,252.44|
|（VI）Other|||||||||||||0.00||0.00|
||754,010,400||||||1,592,318,1||621,112,8||3,092,067,160.5||6,231,429,574.3|394,963,921.2|6,626,393,495.63|
|IV. Balance at the end of this term||0.00|0.00|0.00|151,684,419.65|0.00||20,236,633.76||0.00||0.00||||
||.00||||||52.64||07.78||3||6|7||

 Legalrepresentative：Zheng Bin Person in charge ofaccounting：Zhao Jiamao AccountingDept：Jin Chan
Amount in last year
In RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2018|||||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||||
|||Other Equity||||||||||||||
|||instrument|||||Other|||||||Minor|Total of|
|||||||Less:||||Common||||||
|Items|share|preferr|||Capital||Comprehe|Specialize|Surplus||Retained|||shareholders|owners’|
|||||||Shares||||risk||Other|Subtotal|||
||||Sustai|||||||||||||
||Capita||||reserves||nsive|d reserve|reserves||profit|||’ equity|equity|
|||ed|nable|Other||in stock||||provision||||||
|||stock|||||Income|||||||||
||||debt|||||||||||||
||754,010,||||139,545,089.||1,570,358,|25,369,714|621,112,80||2,774,420,||5,884,816,|335,355,637|6,220,172,4|
|I.Balance at the end of last year||||||||||||||||
||400.00||||02||510.09|.61|7.78||288.05||809.55|.35|46.90|
|Add: Change of accounting policy||||||||||||||||
||||||||||||||0.00||0.00|
|Correcting of previous errors||||||||||||||||
||||||||||||||0.00||0.00|
|Merger of entities under common control||||||||||||||||
||||||||||||||0.00||0.00|
|Other||||||||||||||||
||||||||||||||0.00||0.00|
||754,010,||||139,545,089.||1,570,358,|25,369,714|621,112,80||2,774,420,||5,884,816,|335,355,637|6,220,172,4|
|II.Balance at the beginning of current year||||||||||||||||
||400.00||||02||510.09|.61|7.78||288.05||809.55|.35|46.90|
||||||12,139,330.6||-193,189,9|-4,349,043|||308,123,81||122,724,11|81,633,812.|204,357,931|
|III.Changed in the current year||||||||||||||||
||0.00|0.00|0.00|0.00||0.00|||0.00|0.00||0.00||||
||||||3||87.35|.14|||9.47||9.61|36|.97|
|（1）Total comprehensive income||||||||||||||||
||||||||-193,189,9||||345,824,33||152,634,3|68,232,844.|220,867,196|

||||||||
|-|-|-|-|-|-|-|
|||87.35|9.47|52.12|54|.66|
|（II）Investment or decreasing of capital|||||||
||12,139,330.6|||12,139,33|74,763,561.|86,902,891.|
|by owners|3|||0.63|25|88|
|1．Ordinary Shares invested by sharehold|||||||
||12,139,330.6|||12,139,33|74,763,561.|86,902,891.|
|ers|3|||0.63|25|88|
|2．Holders of other equity instruments in|||||||
|||||0.00||0.00|
|vested capital|||||||
|3．Amount of shares paid and accounted|||||||
|||||0.00||0.00|
|as owners’ equity|||||||
|4．Other|||||||
|||||0.00||0.00|
||||-37,700,52|-37,700,52|-60,812,795.|-98,513,315.|
|（III）Profit allotment|||||||
||||0.00|0.00|00|00|
|1.Providing of surplus reserves|||||||
|||||0.00||0.00|
|2.Providing of common risk provisions|||||||
|||||0.00||0.00|
|3．Allotment to the owners (or|||||||
||||-37,700,52|-37,700,52|-60,812,795.|-98,513,315.|
|shareholders)|||0.00|0.00|00|00|
|4．Other|||||||
|||||0.00||0.00|
|(IV) Internal transferring of owners’|||||||
|||||0.00||0.00|
|equity|||||||
|1. Capitalizing of capital reserves (or to|||||||
|||||0.00||0.00|
|capital shares)|||||||
|2. Capitalizing of surplus reserves (or to|||||||
|||||0.00||0.00|
|capital shares)|||||||
|3．Making up losses by surplus reserves.|||||||
|||||0.00||0.00|
|4.Change amount of defined benefit plans|||||||
|that carry forward|||||||
|||||0.00||0.00|
|Retained earnings|||||||

|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|5．Other comprehensive income||||||||||||||||
||||||||||||||0.00||0.00|
|carry-over retained earnings||||||||||||||||
|6．Other||||||||||||||||
||||||||||||||0.00||0.00|
|||||||||-4,349,043|||||-4,349,043||-4,898,841.57|
|(V). Special reserves||||||||||||||||
|||||||||||||||-549,798.43||
|||||||||.14|||||.14|||
|||||||||-1,141,291|||||-1,141,291||-1,141,291.88|
|1. Provided this year||||||||||||||||
|||||||||||||||0.00||
|||||||||.88|||||.88|||
|||||||||3,207,751.|||||3,207,751.||3,757,549.69|
|2．Used this term||||||||||||||||
|||||||||||||||549,798.43||
|||||||||26|||||26|||
|（VI）Other||||||||||||||||
||||||||||||||0.00||0.00|
||754,010,||||151,684,419.||1,377,168,|21,020,671|621,112,80||3,082,544,||6,007,540,|416,989,449|6,424,530,3|
|IV. Balance at the end of this term||||||||||||||||
|||0.00|0.00|0.00||0.00||||0.00||0.00||||
||400.00||||65||522.74|.47|7.78||107.52||929.16|.71|78.87|

 Legalrepresentative：Zheng Bin Person in charge ofaccounting：Zhao Jiamao AccountingDept：Jin Chan
8. Statement of change inowner’s Equity of the Parent Company
Amount in this period
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2019||||||||||||
|||Other Equity instrument|||||||||Other||
|||||||Less:|Other||||||
|||||||||Specialized||||Total of owners’|
|Items|Share capital|preferr|||Capital reserves|Shares|Comprehensive||Surplus reserves|Retained profit|||
||||Sustai||||||||||
|||ed||Other||||reserve||||equity|
||||nable|||in stock|Income||||||
|||stock|||||||||||
||||debt||||||||||
|I.Balance at the end of last year|||||||||||||
||754,010,400.00||||138,953,250.09||1,377,784,111.74|7,609,505.31|602,356,402.65|2,602,026,967.56||5,482,740,637.35|
|Add: Change of accounting policy|||||||||||||
|Correcting of previous errors|||||||||||||
|Other|||||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|II.Balance at the beginning of current||||||||
||754,010,400.00|138,953,250.09|1,377,784,111.74|7,609,505.31|602,356,402.65|2,602,026,967.56|5,482,740,637.35|
|year||||||||
|III.Changed in the current year||||||||
||||214,917,350.34|-218,275.51||46,687,677.41|261,386,752.24|
|（I）Total comprehensive income||||||||
||||214,917,350.34|||197,489,757.40|412,407,107.74|
|(II) Investment or decreasing of capital||||||||
|by owners||||||||
|1．Ordinary Shares invested by sharehol||||||||
|ders||||||||
|2．Holders of other equity instruments i||||||||
|nvested capital||||||||
|3.Amount of shares paid and accounted||||||||
|as owners’ equity||||||||
|4．Other||||||||
|（III）Profit allotment||||||-150,802,079.99|-150,802,079.99|
|1.Providing of surplus reserves||||||||
|2．Allotment to the owners (or||||||||
|||||||-150,802,079.99|-150,802,079.99|
|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.Change amount of defined benefit||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|plans that carry forward||||||||
|Retained earnings||||||||
|5．Other comprehensive income||||||||
|carry-over retained earnings||||||||
|6．Other||||||||
|(V) Special reserves||||||||
|||||-218,275.51|||-218,275.51|
|1. Provided this year||||||||
|||||434,456.69|||434,456.69|
|2．Used this term||||||||
|||||652,732.20|||652,732.20|
|（VI）Other||||||||
|IV. Balance at the end of this term|||||||5,744,127,389.59|
||754,010,400.00|138,953,250.09|1,592,701,462.08|7,391,229.80|602,356,402.65|2,648,714,644.97||

 Legalrepresentative：Zheng Bin Person in charge ofaccounting：Zhao Jiamao AccountingDept：Jin Chan
Amount in last year
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2018||||||||||||
|||Other Equity|||||||||||
|||instrument||||Less:|||||||
|Items|Share Capital||||Capital reserves|Shares|Other Comprehensive|Specialized|Surplus reserves|Retained profit|Other|Total of owners’|
|||prefe|||||||||||
||||Sust|||in|Income|reserve||||equity|
|||rred||Othe|||||||||
||||aina||||||||||
|||stoc||r||stock|||||||
||||ble||||||||||
|||k|||||||||||
||||debt||||||||||
|I.Balance at the end of last year|||||||||||||
||754,010,400.00||||138,953,250.09||1,570,912,609.09|9,629,800.19|602,356,402.65|2,298,641,960.41||5,374,504,422.43|
|Add: Change of accounting policy|||||||||||||
|Correcting of previous errors|||||||||||||
|Other|||||||||||||
|II.Balance at the beginning of current|||||||||||||
||754,010,400.00||||138,953,250.09||1,570,912,609.09|9,629,800.19|602,356,402.65|2,298,641,960.41||5,374,504,422.43|
|year|||||||||||||

||||||
|-|-|-|-|-|
|III.Changed in the current year|||||
||-72,629,519.42|-207,180.79|104,915,709.30|32,079,009.09|
|（I）Total comprehensive income|||||
||-72,629,519.42||142,616,229.30|69,986,709.88|
|(II) Investment or decreasing of|||||
|capital by owners|||||
|1．Ordinary Shares invested by shar|||||
|eholders|||||
|2．Holders of other equity instrumen|||||
|ts invested capital|||||
|3.Amount of shares paid and|||||
|accounted as owners’ equity|||||
|4．Other|||||
|（III）Profit allotment|||||
||||-37,700,520.00|-37,700,520.00|
|1.Providing of surplus reserves|||||
|2．Allotment to the owners (or|||||
||||-37,700,520.00|-37,700,520.00|
|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.Change amount of defined benefit|||||
|plans that carry forward|||||

|||||||||
|-|-|-|-|-|-|-|-|
|Retained earnings||||||||
|5．Other comprehensive income||||||||
|carry-over retained earnings||||||||
|6．Other||||||||
|(V) Special reserves||||||||
|||||-207,180.79|||-207,180.79|
|1. Provided this year||||||||
|||||706,095.97|||706,095.97|
|2．Used this term||||||||
|||||913,276.76|||913,276.76|
|（VI）Other||||||||
|IV. Balance at the end of this term||||||||
||754,010,400.00|138,953,250.09|1,498,283,089.67|9,422,619.40|602,356,402.65|2,403,557,669.71|5,406,583,431.52|

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, Headquartered in Hangzhou, Zhejiang Province. The company now holds a unified social credit code for the 913300007042026204 business license, TheCompany’s registered capital is 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 design, manufacturing, Main Business Activities:R&D, Production and Sales of Industrial Steam Turbine. Main Products: Industrial Steam Turbine
19 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
(I) 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
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 theCompany’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
TheCompany’s relatively shorter operational period, which is 12 months, and is used as division of liquidity of assets and liabilities.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
5. Accounting treatment of the entities under common control and different control
1. Treatment of entities under common control
Assets and liabilities acquired in merger of entities are measured at book values at the date of merger. The difference between the net book value of asset and the offered price (or total of face value of shares issued) will be adjusted into capital reserves; when the capital reserves is not enough to reduce, it will be adjusted into retained profit.
2. Treatment of entities under different control
The difference of takeover cost over the fair value of recognizable net asset of the acquired entity is recognized as goodwill at the day of takeover; in case the takeover cost is lower than the fair value of recognizable net asset of the acquired entity, the measuring process over the recognizable asset, liabilities, contingent liabilities, and takeover cost, shall be repeated, if comes out the same result, the difference shall be recorded into current income
6. Method for preparing the consolidated financial statements
The parent company puts all of its subsidiaries under its control into the consolidated financial statements. The consolidated financial statements are prepared according to the “Enterprise Accounting Standard No. 33– Consolidated Financial Statements”, basing on the accounts of the parent company and the subsidiaries, and after adjusting the long-term investment equity in the subsidiary on equity basis.
7. Joint venture arrangements classification and Co-operation accounting treatment
Nil
8. Recognition of cash and cash equivalents
Cash equivalent refers to the investment held by the Company with short term, strong liquidity and lower risk of value fluctuation that is easy to be converted into cash of known amount.
9. Foreign currency trade and translation of foreign currencies
1. Translation of foreign currency
Foreign currency trades are translated into RMB at the rate of the day when the trades are made. Those balances of foreign currencies and monetary items in foreign currencies are accounted at the exchange rate of the balance sheet date. Exchange differences, other than special loans satisfying the conditions of capitalization, are accounted into current income account. Non-monetary items in foreign currencies and on historical cost are translated at the rate of the trade day. Non-monetary items in foreign currencies and on fair value are translated at the rate of the day when the fair value is recognized, where the differences are accounted as gain/loss from change of fair value. 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 theowners’ equity in the balance sheet.
10.Financial instruments
(1) Classification of financial assets and financial liabilities
Financial assets are divided into the following three categories upon initial recognition: 1) Financial assets measured in amortized cost; 2) Financial assets measured at fair value, whose changes are included in other comprehensive income; 3) Financial assets measured at fair value, whose changes are included in current profits and losses.
Financial liabilities are divided into the following four categories upon initial recognition: 1) Financial liabilities measured at fair value, whose changes are included in current profits and losses; 2) Financial liabilities resulting from the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets; 3) Financial guarantee contracts that do not belong to the above 1) or 2), and loan commitments that do not belong to the above 1) and lend at a lower than market interest rate; 4) Financial liabilities measured in amortized cost.
(2) Recognition basis, measurement methods and conditions for derecognition of financial assets and financial liabilities
However, if the accounts receivable initially recognized by the company do not contain significant financing components or the company does not consider the financing components in the contract for less than one year, the initial measurement shall be made according to the transaction price.
2) Subsequent measurement methods of financial assets
①Financial assets measured at amortized cost
The actual interest rate method is adopted for subsequent measurement according to amortized cost. Gains or losses arising from financial assets measured in amortized cost that are not part of any hedging relationship are included in current profits and losses when derecognition, reclassification, amortization according to the effective interest rate method, or impairment recognition.
② Debt instruments investment measured at fair value, whose changes are included in other comprehensive income
Fair value is adopted for subsequent measurement. Interest, impairment losses or gains and exchange gains and losses calculated by the effective interest rate method are included in the current profits and losses, while other gains or losses are included in other comprehensive income. Upon termination of recognition, the accumulated gains or losses previously included in other comprehensive income shall be transferred out of other comprehensive income and included in current profits and losses.
③ Equity instrument investments measured at fair value, whose changes are included in other
comprehensive income
Fair value is adopted for subsequent measurement. Dividends received (except those that belong to the part of investment cost recovery) are included in current profits and losses, and other gains or losses are included in other comprehensive income. Upon termination of recognition, the accumulated gains or losses previously included in other comprehensive income shall be transferred out of other comprehensive income and included in retained income.
④ Financial assets measured at fair value and changes included in current profits and losses
The fair value is adopted for subsequent measurement, and the resulting gains or losses (including interest and dividend income) are included in the current profits and losses unless the financial asset is part of the hedging relationship.
3) Subsequent measurement methods of financial liabilities
① Financial liabilities measured at fair value, whose changes are included in current profits and losses Such financial liabilities include transactional financial liabilities (including derivatives of financial liabilities) and financial liabilities designated to be measured at fair value, whose changes are included in current profits and losses. Such financial liabilities are subsequently measured at fair value. Changes in the fair value of financial liabilities designated to be measured at fair value, whose changes are included in the profits and losses of the current period due to changes in the company's own credit risk are included in other comprehensive income, unless such treatment will cause or expand accounting mismatch in profits and losses. Other gains or losses arising from such financial liabilities (including interest expenses and changes in fair value except for changes in the company's own credit risk) are included in the current profits and losses unless the financial liabilities are part of the hedging relationship. Upon termination of recognition, the accumulated gains or losses previously included in other comprehensive income shall be transferred out of other comprehensive income and included in retained income.
② Financial liabilities resulting from the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets
Measurement is conducted in accordance with the relevant provisions of the Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.
③ Financial guarantee contracts that do not belong to the case of① or② above, and loan commitments that do not belong to① above and lend at below market interest rates
After initial recognition, subsequent measurement shall be made according to the higher of the following two amounts: A. Loss reserve amount determined according to the impairment provisions of financial instruments; B. The balance of the initial recognized amount after deducting the accumulated amortization amount determined in accordance with relevant regulations.
④ Financial liabilities measured in amortized cost
The real interest rate method is adopted to measure in amortized cost. Gains or losses arising from financial liabilities measured in amortized cost that are not part of any hedging relationship are included in current profits and losses when derecognized and amortized according to the effective interest rate method.
4) Termination of recognition of financial assets and financial liabilities
① Financial assets are derecognized when one of the following conditions is met:
A. The contractual right to receive cash flow from the financial asset is terminated;
B. Financial assets have been transferred, and the transfer meets the provisions of the Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets on the derecognition of financial assets.
② When the current obligation of a financial liability (or part thereof) has been discharged, the financial liability (or part thereof) shall be derecognized accordingly.
(3) Recognition basis and measurement method of financial asset transfer
If the company has transferred almost all risks and rewards in the ownership of financial assets, it shall terminate the recognition of the financial assets and separately recognize the rights and obligations arising from or retained in the transfer as assets or liabilities; If almost all risks and rewards on the ownership of financial assets are retained, the transferred financial assets shall continue to be recognized. If the company neither transfers nor retains almost all risks and rewards in the ownership of the financial asset, the following situations shall be handled respectively: 1) If the control over the financial asset is not retained, the recognition of the financial asset shall be terminated, and the rights and obligations generated or retained in the transfer shall be separately recognized as assets or liabilities; 2) If the control over the financial assets is retained, the relevant financial assets shall be recognized according to the extent of continuing involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two amounts shall be included in the current profits and losses: 1) The book value of the transferred financial assets on the derecognition date; 2) The sum of the consideration received for the transfer of financial assets and the amount of the corresponding derecognized portion of the accumulated amount of changes in fair value originally directly included in other comprehensive income (the financial assets involved in the transfer are debt instrument investments measured at fair value, whose changes are included in other comprehensive income). If a part of the financial asset is transferred and the transferred part meets the conditions for derecognition as a whole, the book value of the financial asset before transfer shall be apportioned between the derecognition part and the continuing recognition part according to their respective relative fair values on the transfer date, and the difference between the following two amounts shall be included in the current profits and losses: 1) The book value of the derecognition part; 2) The sum of the consideration of the derecognized portion and the amount of the corresponding derecognized portion of the cumulative amount of changes in fair value originally directly included in other comprehensive income (financial assets involved in transfer are debt instrument investments measured at
fair value, whose changes are included in other comprehensive income).
(5) Impairment of financial instruments
1) Impairment measurement and accounting treatment of financial instruments
On the basis of expected credit losses, the company carries out impairment treatment on financial assets measured at amortized cost, debt instrument investments measured at fair value whose changes are included in other comprehensive income, lease receivables, loan commitments other than financial liabilities classified as financial liabilities measured at fair value, whose changes are included in current profits and losses, financial liabilities not measured at fair value, whose changes are included in current profits and losses, or financial guarantee contracts that are not financial asset transfers which do not meet the conditions for derecognition or which continue to be involved in financial liabilities formed by transferred financial assets, and recognize loss provisions.
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted according to the original real interest rate and the expected cash flow of all contracts receivable according to the contract, that is, the present value of all cash shortages. Among them, the Company discounts the financial assets purchased or originated with credit impairment at the actual interest rate adjusted by credit.
For financial assets purchased or originated that have suffered credit impairment, the company will only recognize the accumulated changes in expected credit losses during the entire duration since initial recognition as loss reserves on the balance sheet date.
For accounts receivable that do not contain significant financing components or that the company does not consider financing components in contracts of not more than one year, the company uses simplified measurement methods to measure the loss reserve according to the expected credit loss amount equivalent to the entire duration. For lease receivables and receivables containing significant financing components, the company uses simplified measurement methods to measure the loss reserve according to the expected credit loss amount equivalent to the entire duration.
For financial assets other than the above measurement methods, the company evaluates whether its credit risk has increased significantly since the initial recognition on each balance sheet date. If the credit risk has increased significantly since the initial recognition, the company shall measure the loss reserve according to the amount of expected credit loss during the whole duration. If the credit risk has not increased significantly since the initial recognition, the company shall measure the loss reserve according to the expected credit loss amount of the financial instrument within the next 12 months.
The company uses the available reasonable and reliable information, including forward-looking information, to determine whether the credit risk of financial instruments has increased significantly since the initial recognition by comparing the risk of default on the balance sheet date with the risk of default on the initial
recognition date.
On the balance sheet date, if the company judges that the financial instrument is with only low credit risk, it is assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.
The company considers the following factors when evaluating whether the credit risk has increased significantly:
① Whether the contract payment is overdue for more than (including) 30 days. If the overdue period exceeds 30 days, the company confirms that the credit risk of financial instruments has increased significantly. Unless the company can obtain reasonable and reliable information without paying too much cost or effort, which proves that although the payment period stipulated in the contract is over 30 days, the credit risk has not increased significantly since the initial recognition.
② Whether the company's credit management methods for financial instruments have changed.
③ Whether the debtor's expected performance and repayment behavior have changed significantly.
④ Whether the actual or expected operating results of the debtor have changed significantly.
⑤ Whether there has been any significant adverse change in the regulatory, economic or technological environment for the debtor.
⑥ Whether there are adverse changes in business, financial or economic conditions that are expected to lead to significant changes in the debtor's ability to fulfill its debt-paying obligations.
⑦ Whether the internal price index has changed significantly due to changes in credit risk.
⑧ If an existing financial instrument is originated or issued as a new financial instrument on the reporting date, whether the interest rate or other terms of the financial instrument change significantly.
⑨ Whether the external market indicators of credit risks of the same financial instrument or similar financial instruments with the same expected duration have changed significantly. These indicators include: credit spreads, the price of credit default swaps for borrowers, the duration and extent that the fair value of financial assets is less than its amortized cost, and other market information related to borrowers (such as price changes of borrowers' debt instruments or equity instruments).
⑩ Whether the actual or expected external credit rating of financial instruments has changed significantly.⑪ Whether the actual or expected internal credit rating of the debtor is lowered.
⑫ Whether the credit risks of other financial instruments issued by the same debtor have increased significantly.
⑬ Whether there has been any significant change in the value of collateral used as debt collateral or the quality of guarantee or credit enhancement provided by a third party.
⑭ Whether the expected borrower's economic motivation to repay the loan within the time limit stipulated in the contract has changed significantly.
⑮ Anticipated changes to the loan contract include whether the anticipatory breach of contract may result in exemption or revision of contractual obligations, granting of interest-free period, sharp increase of interest rate, demand for additional collateral or guarantees, or other changes to the contractual framework of financial instruments.
The company evaluates expected credit risks and measures expected credit losses on the basis of individual financial instruments or combinations of financial instruments. When based on the combination of financial instruments, the company divides financial instruments into different combinations based on common risk characteristics.
The company remeasures the expected credit loss on each balance sheet date, and the increase or reversal amount of the loss reserve thus formed shall be included in the current profits and losses as impairment loss or profit. For financial assets measured in amortized cost, the loss reserve shall be offset against the book value of the financial assets listed in the balance sheet; For creditor's rights investments measured at fair value, whose changes are included in other comprehensive income, the company recognizes its loss reserve in other comprehensive income, which does not offset the book value of the financial asset.
2) Accounts receivable for expected credit losses measured by individual item
|||
|-|-|
|Judgment basis for individual measurementof expected credit loss|Receivables with obvious characteristics of single credit risk withevidence or can be judged based on common sense|
|Methods of measuring expected credit loss|Considering the reasonable and reliable information about past events,current situation and future economic situation forecast, it shallestimate the expected cash flow, and determine the provision for baddebt to be accrued accordingly|

3) Accounts receivable for expected credit losses measured by combination
①Methods
of specific combination and measurement of expected credit loss
||
|-|
|Basis for determining combination|
|With aging as credit riskcharacteristic, the receivables arecombined|

② Bill receivable with expected credit loss measured by combination-comparison table of aging of commercial acceptance bill, accounts receivable and other receivables and expected credit loss rate for the whole duration
|||
|-|-|
|Commercial acceptance billsreceivable|ReceivablesExpected credit loss rate (%)|

|||
|-|-|
|Expected credit loss rate (%)||
|5|5|
|10|10|
|20|20|
|30|30|
|50|50|
|100|100|

 (6) Setoff of Financial Assets and Liabilities
The financial assets and liabilities of the company are shown separately in the balance sheet which do not offset each other. However, when the following conditions are met at the same time, the net amount after mutual offset is shown on the balance sheet. 1. The company has the legal right to offset the recognized amount, and this legal right is currently enforceable. 2. The company plans to settle the financial assets or liquidate the financial liabilities at the same time for netting settlement.
If the transfer of financial assets does not meet the conditions for the termination of recognition, the company shall not set off the transferred financial assets and related liabilities.
11.Notes receivable
For details, please refer to Section X V-10 of this report.
12.Account receivable
For details, please refer to Section X V-10 of this report.
13. Financing of receivables
Nil
14.Other account receivable
For details, please refer to Section X V-10 of this report.
15.Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(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
Delivered out materials are accounted by weighted average method, issued out finished products are accounted at
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
16.Contract assets
Nil
17.Constract cost
Nil
18.Held-for-sale asset
Nil
19.Creditor's rights investment
Nil
20.Other Creditor's rights investment
Nil
21.Long-term account receivable
Nil
22. Long-term equity investment
1. Recognition of common control and substantial influence
According to the contract, if the investedenterprise’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 investedenterprise’s main finance and operation policy but have no own control or common control with other investing part, the investment is investment with substantial influence.
2. Recognition of initial investment costs
(1) For the long-term equity investment formed by corporate merger under common control, if it is the long-term equity investment obtained from the corporate merger by paying cash, transferring non-cash asset, bear liability and issuing equity securities, the share of book value of owner's equity of the merged party on the merger date shall be taken as the initial investment cost. The asset reserve is adjusted according to the difference between the initial investment cost of long-term equity investment and the book value of paid combined consideration or issued securities; if the capital is not enough for deduction, the remain earnings are adjusted.
Recognition of “one-off” trade when long-term equity investment is composed by merger of entities under common control by multiple steps.
Transactions under an “one-off” trade are accounted as a common trade of ownership.
Transactions which are not “one-off” trades are recognized for their initial investment cost basing on the share of book value of net asset in the consolidated financial statement of the entities acquired. Balance between the initial investment cost and the book value of the long-term equity investment before merger and the premium paid for the new shares after merger, is adjusted to capital reserves; when the capital reserve is not enough to offset, retained profit shall be adjusted thereof.
(2) For the long-term equity investments formed by merger of enterprises under different control, the initial investment cost is recognized by the fair value of combined consideration on purchasing day and related expenses. Long-term equity investment formed by acquisition of entities under different control by trade in multiple stages are accounted separately in the financial statements and consolidated financial statements.
1) In individual financial account, the sum of book value of original equity investment plus new investment cost is recognized as the initial investment cost on cost basis.
2) Recognition of “one-off” trade in consolidated financial statements
Transactions under an “one-off” trade are accounted as a common trade of ownership. Transactions which are not “one-off” trades are re-measured for their fair value at the day of acquisition. Balance between the fair value and the book value of the long-term equity investment is adjusted to current investment gains; other gains from equity on equity basis before the acquisition day are written over to current gains of at the day of acquisition, but not the gains from re-calculating of changes in net liability or asset by the invested entity.
(3) Formed by means other than entity merger:
Acquired by cash payment– initial investment cost is the actual amount of payment;
Acquired by issuing of equity certificates– initial investment cost is the fair value of equity certificate issued; Acquired by debtor restructuring– initial cost recognized as according to the Enterprise Accounting Standard No.12– Debtor restructuring;
Acquired by trading of non-monetary asset - initial cost recognized as according to the Enterprise Accounting Standard No.7– Trade of non-monetary assets;
3. Subsequent measurement and recognition of gain/loss
Cost basis is adopted in accounting of long-term equity investment in entities under substantial control of the Company; while equity basis is adopted in accounting of investment in affiliates and joint-ventures.
4. Treatment of disposal of subsidiaries by stages till losing of control power
(1) Individual account
The difference between the book value and the actual purchase price of the disposed equity is recorded into the current profit and loss. With regard to the remaining equity, which still has a significant impact on the invested
entity or exercises joint control with other parties, it shall be converted to equity accounting; if the entity under investment can no longer be controlled, jointly controlled or significantly affected, it shall be recognized as a financial asset, Accounting shall be carried out in accordance with the relevant provisions of Accounting Standards for Enterprises No. 22-recognition and Measurement of Financial Instruments.
(2) Basis of Consolidated Financial Statements
1) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and not recognized as “one-off” trade:
Before losing of control power, the balance of disposal consideration and the share of net asset attributable to the Company on continued basis since purchasing or merger, is adjusted to capital reserves (capital premium), whereas if the capital premium is not enough to offset the amount, retained profit will be offset at corresponding amount.
At losing of control power over a former subsidiary, the retained equity shares shall be re-calculated according to the fair value at the day of losing power. Sum of the consideration obtained from disposal and fair value of the retained equity shares, less the share of net asset attributable to the Company on continued basis since purchasing or merger, is accounted into investment gains of the period when the control power is disposed, and goodwill shall be offset meanwhile. Other gains related to the equities in formal subsidiary shall be written over to current investment gains at the period when control power was disposed.
2) Losing of controlling power on a subsidiary through disposal of equity by multiple trades, and recognized as “one-off” trade:
The multiple trades are treated as one trade that causes losing of control power on a subsidiary. However, the balance between the consideration received from each trade and corresponding share of net asset is recognized as other gains in the consolidated accounts, and transferred collectively to gain/loss account of the period in which the control power was lost.
23. Investment property
The measurement mode of investment property
Not applicable
24. Fixed assets
1. Conditions for fixed asset recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for operation& management, and have more than one year of service life. Fixed assets are recognized at satisfying of great possibility of benefit inflow and costs are accountable.
2. Depreciation
||||||
|-|-|-|-|-|
|Categories|Basis of depreciation|Depreciation age (year)|Retain value rate|Annual depreciation 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||||
||Straight average on||||
|Transportation equipment||4-8|4|24-12|
||period||||
|Office equipment|Straight average on|5|4|19.2|

||
|-|
|period|

（3）Recognition basis, valuation and depreciation method for financing leased fixed assets
Nil
25. Construction in process
1. Construction in process is recognized on the basis of characteristics: very possible economic benefit flow in, cost can be measured reliably. Since the date when the construction in process reaches its useful status as expected, the construction in process is measured by the happened cost Since the date when the construction in process reaches its useful status as expected.
2. When the construction in process reaches its useful status as expected, it is transferred into fixed asset at actual cost. If the construction in process has reached useful status but with completion of project settlement process, it is transferred to fixed asset at the value estimated, and adjustment will happen after completion of project settlement process but no adjustment on depreciation provided previously.
26. Loan expenses
1. Capitalizing of loan expenses
Loan expenses occurred in the Company, which can be categorized to purchasing or construction of assets satisfying the conditions of capitalization, shall be capitalized and accounted into capital costs; while other loan expenses are recognized as expenses and recorded into current income account.
2. Capitalization period of loan expenses
(1) Capitalization started as soon as all of these conditions are satisfied: 1) Capital expenditures have occurred; 2) Loan expenses have occurred; 3) Necessary purchasing or construction processes have been started to make the asset usable or sellable.
(2) If irregular interruption occurred in the purchasing or construction process of the assets satisfying the capitalizing conditions, and suspended for over successive three months, capitalizing of loan expenses is suspended; loan expenses occurred during the suspension period are recognized as current expenses until the purchasing or construction process resumes.
(3) Capitalizing of loan expenses is terminated as soon as the asset satisfying the capitalizing conditions reaches the state of usable or sellable as expected.
3. Rates and amounts of loan expense capitalization
Special loans raised for purchasing or construction of assets satisfying the conditions of capitalization, interest to be capitalized will be the actual interest expenses occurred in the current period of loan (including the discount, premium, or amortizing decided on actual interest rate basis), less the interest income from the unused loans in bank account or provisional investment gains; common loans used for purchasing or construction of assets satisfying the conditions of capitalization, the interest to be capitalized will be the weighted average of balance over special loans multiply capitalization rate of common loans.
27. Biological assets
Nil
28. Oil-gas assets
Nil
29. Assets of the right to use
Nil
30. Intangible assets
（1）Pricing Method, service life and impairment test
1. Intangible assets are land using rights, patents, and non-patent technologies, which are measured at cost basis. 2. For intangible assets with limited useful life, during the use life it is amortized according to the anticipating implementation method of the economic benefit of the intangible asset systematically and reasonably. Ifcan’t recognize the anticipating implementation method, the straight basis is deployed.
|||
|-|-|
|Items|Amortiing years|
|Land using right|50|
|Patent|5-20|
|Software|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.
31. Impairment of partial long-term assets
For those long-term assets such as equity investment, fixed assets measured on cost basis, construction-in-process, intangible assets with limited service life, their recoverable amount shall be evaluated as soon as there was evidence indicating impairment at the balance sheet day. For intangible assets such as goodwill from merger or intangible assets with uncertain service lives, impairment test is performed each year whatever there is evidence of impairment or not. Impairment test on goodwill is performed on combination of related assets.
When the result of prediction shows that the recoverable amount is lower than its book value, the balance shall be
provided impairment provision and accounted into current gain/loss.
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.
33.Constract Liabilities
Nil
34.Employees’ wage
1. Employee compensation comprises short-term compensation, post-service benefit, resignation benefit and other long-term employee benefits.
2. Accounting of short-term wages
In the fiscal period when an employee is providing services, short-term wages actually occurred is recognized as liability, and recorded into current gain/loss account or cost of related asset.
3.Accounting of 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-termemployees’ welfares
As of long-term welfares provided to the employees, those which satisfy conditions of the stipulated saving plan are treated according to related regulations of stipulated saving plan; those which other than the aforesaid, are treated according to the stipulated beneficiary plan. In viewing of simplifying accounting treatment, employee wage costs are recognized as service costs, the net amounts of interests of other long-term welfare net liability or asset, along with recalculated variations of the both are recorded to the related gain/loss or cost of related asset.
35. Lease liabilities
Nil
36. Expected liabilities
(1) When it is very much likely to cause economic interests which can be reliably calculated outflow from the company to fulfill the obligation which is due to giving security outside, contentious matter, quality guarantee of products, onerous contract and other contingency, the company will regard the obligation as anticipation liabilities.
(2) The company will make an initial measurement of anticipation liabilities according to needed expense of best estimation when fulfilling related obligations and check the book value of anticipation liabilities on the balance sheet date.
37.Share-based Payment
Nil
38 . Other financial instruments such as preferred shares and perpetual capital securities
Nil
39.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented new revenue guidelines?
No
1. Recognizing of revenue
(1) Sales of goods
Sales income is recognized when all of these conditions are satisfied: (1) Major risks and rewards attached to the goods have been transferred to the purchaser; (2) The Company holds neither successive management power which is normally attached to ownership, nor effective control, over the goods which have been sold out; (4) Amount of income may be reliably measured; (5) when the costs, occurred or will occur, may be measured reliably.
(2) Providing of services
At balance sheet day, those service trades (simultaneously satisfying the requirements of those: income can be measured reliably, related economic benefit will flow in very possibly, transaction procedure can be confirmed reliably, happened and happening cost can be measured reliably) which can be reliably estimated are recognized at the percentage of completion, and progress of completion of service is decided by the portion of costs occurred over the estimated total costs. At balance sheet day, those service trades which can not be reliably estimated, if the happened services cost will be compensated, the services income are recognized according to happened service cost and transited to service cost according to same amount; if the happened services cost will not be compensated, the happened services cost are accounted into currentterm’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.
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 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.
40. Government subsidy
1. Government subsidies are recognized while they meet the following conditions at the same time: (1) the Company can meet the conditions attached to the government subsidies; (2) the Company can receive government subsidies. Where government subsidies are monetary assets, they shall be measured by the amount received or receivable. Where government subsidies are non-monetary assets, they shall be measured by the fair value; if the fair value cannot be reliably obtained, they shall be measured by the nominal amount.
2. Recognition basis and accounting of asset-related government subsidy
Government subsidies used for formation of long-term assets through purchase, construction or any other method as stipulated by government documents fall into the category of asset-related government subsidies. If government subsidies are not defined in the government documents, a judgment shall be made on the ground of essential conditions for obtaining the subsidies, among which, ones with an essential condition of formation of long-term assets through purchase, construction or any other method shall be asset-related government subsidies. For government subsidies related to assets, the book value of the relevant assets is deducted or the deferred income is recognized. Where such subsidies are recognized as deferred income, the relevant assets shall, within the useful life of the relevant assets, be reasonably recognized, The method of the system shall be recorded into profit and loss by stages. The government subsidy measured according to the nominal amount shall be directly accounted for in the profits and losses of the current period. Where the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, Transfer the undistributed balance of deferred income to the current profit or loss of asset disposal.
3. Recognition basis and accounting of income-related government subsidy
A government subsidy other than an asset-related government subsidy is divided into profit-related government subsidies. It is difficult to distinguish between asset-related and revenue-related government subsidies that include both asset-related and revenue-related components. Overall classification as government subvention related to income. Than asset-related subsidies are recognized as income-related government subsidies. Those, which are used to cover costs or losses in subsequent periods, are recognized as deferred income and accounted to current gain/loss to the periods of related expenses. Those, which are used to makeup expenses or losses already occurred, are recorded to current gain/loss account.
activities of the Company shall be included into the non-operating receipt and disbursement.
5. Accounting treatment method for interest subsidies for policy-based preferential loans
(1) If the finance allocates interest subsidy funds to a lending banks that serves a loan to the Company at a policy-based preferential rate, the actual debit amount received shall be seen as the entry value of loan and relevant loan costs shall be worked out pursuant to the loan principal and the policy-based preferential rate.
(2) If the finance directly allocates interest subsidy funds to the Company, corresponding interest subsidies shall offset relevant loan costs.
41. Deferred income tax assets/ deferred income tax liabilities
1. Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or paying the liabilities according to difference (for not recognized assets and liabilities which tax basis can be recognized, the difference is between the tax basis and the book value) between book value of the assets or liabilities and the tax basis.
2. Deferred income tax assets are recognized limitedly by the income tax which very possibly deduct deductible temporary difference. At balance sheet day, the not-yet recognized deferred income tax assets in previous fiscal term are recognized if have evidence to prove there is enough income tax very possibly to deduct deductible temporary difference.
3. At the balance sheet day, verification will be performed on the book value of differed income tax assets. If it is not possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the book value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible, the reduced amount shall be restored.
4. Current income tax and differed income tax are accounted into current gain/loss account as income tax expenditures or gains, but exclude the following income taxes: (1) Merger of enterprises; (2) Transactions or events recognized directly inowners’ equity.
42. Lease
(1)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.
(2) Accounting Method for Financing Leases
Nil
43. Other significant accounting policies and estimates
Nil
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√Applicable□ Not applicable
||||
|-|-|-|
|The content and reason for change of accounting policy|Approval process|Remark|
|In 2017, the Ministry of Finance of the People's Republic ofChina issued the revised " No. 22 Accounting Standards forBusiness Enterprises-Recognition and Measurement ofFinancial Instruments", " No. 23 Accounting Standards forBusiness Enterprises-Transfer of Financial Assets", " No. 24Accounting Standards for Business Enterprises-HedgeAccounting, and " No. 37 Accounting Standards for BusinessEnterprises-Financial Instruments Presentation", and itrequired the domestic listed companies to implement theafore-said accounting standards from January 1, 2019.|On March 27, 2019, theCompany held the 31stmeeting of the seventhBoard of Directors and the14th meeting of theseventh Board ofSupervisors, in which the“Proposal on Change inAccounting Policy” wasreviewed and approved,and this change ofaccounting policy did notneed to be submitted tothe shareholders’ generalmeeting for deliberation.|Announcement No.2019-24|

(2) Change of main accounting estimations
Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards Governing Financial Instruments, Revenue or Leases
√ Applicable□Not applicable
Consolidated balance sheet
In RMB
|||||
|-|-|-|-|
|Items|December 21,2018|January 1,2019|Adjustment amount|
|Current asset：||||
|Monetary fund|1,382,392,009.59|1,382,392,009.59||
|Settlement provision||||
|Outgoing call loan||||
|Transactional financial assets||1,156,870,000.00|1,156,870,000.00|
|Financial assets measured at fair value||||
|with variations accounted into current||||
|income account||||

|||||
|-|-|-|-|
|Derivative financial assets||||
|Notes receivable|595,089,175.22|595,089,175.22||
|Account receivable|1,940,798,255.26|1,940,798,255.26||
|Financing of receivables||||
|Prepayments|370,958,990.74|370,958,990.74||
|Insurance receivable||||
|Reinsurance receivable||||
|Provisions of Reinsurance contracts||||
|receivable||||
|Other account receivable|32,552,458.76|32,552,458.76||
|Including：Interest receivable|0.00|||
|Dividend receivable|16,557,292.60|16,557,292.60||
|Repurchasing of financial assets||||
|Inventories|2,188,121,342.87|2,188,121,342.87||
|Contract assets||||
|Assets held for sales||||
|Non-current asset due within 1 year||||
|Other current asset|1,188,747,955.74|31,877,955.74|-1,156,870,000.00|
|Total of current assets|7,698,660,188.18|7,698,660,188.18||
|Non-current assets：||||
|Loans and payment on other’s behalf||||
|disbursed||||
|Debt investment||||
|Available for sale of financial assets|2,130,076,555.20||-2,130,076,555.20|
|Other investment on bonds||||
|Expired investment in possess||||
|Long-term receivable||||
|Long term share equity investment|8,221,439.29|8,221,439.29||
|Other equity instruments investment|0.00|2,011,876,524.40|2,011,876,524.40|
|Other non-current financial assets|0.00|118,200,030.80|118,200,030.80|
|Property investment||||
|Fixed assets|783,740,928.49|783,740,928.49||
|Construction in progress|454,767,328.93|454,767,328.93||
|Production physical assets||||
|Oil & gas assets||||

||||
|-|-|-|
|Use right assets|||
|Intangible assets|279,740,756.49|279,740,756.49|
|Development expenses|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|213,962,707.23|213,962,707.23|
|Other non-current asset|||
|Total of non-current assets|3,870,509,715.63|3,870,509,715.63|
|Total of assets|11,569,169,903.81|11,569,169,903.81|
|Current liabilities|||
|Short-term loans|139,600,000.00|139,600,000.00|
|Loan from Central Bank|||
|Borrowing funds|||
|Transactional financial liabilities|||
|Financial liabilities measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial liabilities|||
|Notes payable|263,897,462.79|263,897,462.79|
|Account payable|1,086,685,918.74|1,086,685,918.74|
|Advance receipts|2,582,234,158.36|2,582,234,158.36|
|Selling of repurchased financial assets|||
|Deposit taking and interbank deposit|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Employees’ wage payable|86,390,955.29|86,390,955.29|
|Tax payable|62,405,200.62|62,405,200.62|
|Other account payable|36,904,303.01|36,904,303.01|
|Including：Interest payable|437,314.72|437,314.72|
|Dividend payable|0.00|0|
|Fees and commissions payable|||
|Reinsurance fee payable|||
|Contract Liabilities|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|100,100,000.00|100,100,000.00|

||||
|-|-|-|
|Other current liability|||
|Total of current liability|4,358,217,998.81|4,358,217,998.81|
|Non-current liabilities：|||
|Reserve fund for insurance contracts|||
|Long-term loan|22,700,000.00|22,700,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Lease liability|||
|Long-term payable|474,876,451.26|474,876,451.26|
|Long-term remuneration payable to staff|||
|Expected liabilities|||
|Deferred income|44,675,128.30|44,675,128.30|
|Deferred income tax liability|244,169,946.57|244,169,946.57|
|Other non-current liabilities|||
|Total non-current liabilities|786,421,526.13|786,421,526.13|
|Total of liability|5,144,639,524.94|5,144,639,524.94|
|Owners’ equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|151,684,419.65|151,684,419.65|
|Less：Shares in stock|||
|Other comprehensive income|1,377,168,522.74|1,377,168,522.74|
|Special reserve|21,020,671.47|21,020,671.47|
|Surplus reserves|621,112,807.78|621,112,807.78|
|Common risk provision|||
|Retained profit|3,082,544,107.52|3,082,544,107.52|
|Total of owner’s equity belong to the parent|6,007,540,929.16||
|||6,007,540,929.16|
|company|||
|Minority shareholders’ equity|416,989,449.71|416,989,449.71|
|Total of owners’ equity|6,424,530,378.87|6,424,530,378.87|
|Total of liabilities and owners’ equity|11,569,169,903.81|11,569,169,903.81|

Notes
Balance sheet of Parent Company
In RMB
|||||
|-|-|-|-|
|Items|December 31,2018|January 1,2019|Adjustment amount|
|Current asset：||||
|Monetary fund|877,357,020.98|877,357,020.98||
|Transactional financial assets||890,000,000.00|890,000,000.00|
|Financial assets measured at fair value with||||
|variations accounted into current income||||
|account||||
|Derivative financial assets||||
|Notes receivable|302,284,986.43|302284986.4||
|Account receivable|1,374,628,210.45|1,374,628,210.45||
|Financing of receivables||||
|Prepayments|208,498,421.20|208,498,421.20||
|Other account receivable|19,984,760.06|19,984,760.06||
|Including：Interest receivable||||
|Dividend receivable|16,557,292.60|16,557,292.60||
|Inventories|1,584,030,951.83|1,584,030,951.83||
|Contract assets||||
|Assets held for sales||||
|Non-current asset due within 1 year||||
|Other current asset|890,000,000.00||-890,000,000.00|
|Total of current assets|5,256,784,350.95|5,256,784,350.95||
|Non-current assets：||||
|Debt investment||||
|Available for sale of financial assets|2,090,631,297.62||-2,090,631,298.00|
|Other investment on bonds||||
|Expired investment in possess||||
|Long-term receivable||||
|Long term share equity investment|502,919,378.03|502,919,378.03||
|Other equity instruments investment||2,011,876,524.40|2,011,876,524.40|
|Other non-current financial assets||78,754,773.22|78,754,773.22|
|Property investment||||

||||
|-|-|-|
|Fixed assets|448,890,495.75|448,890,495.75|
|Construction in progress|142,310,055.48|142,310,055.48|
|Production physical assets|||
|Oil & gas assets|||
|Use right assets|||
|Intangible assets|165,734,347.73|165,734,347.73|
|Development expenses|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|163,871,631.81|163,871,631.81|
|Other non-current asset|||
|Total of non-current assets|3,514,357,206.42|3,514,357,206.42|
|Total of assets|8,771,141,557.37|8,771,141,557.37|
|Current liabilities|||
|Short-term loans|||
|Transactional financial liabilities|||
|Financial liabilities measured at fair value|||
|with variations accounted into current income|||
|account|||
|Derivative financial liabilities|||
|Notes payable|24,200,000.00|24,200,000.00|
|Account payable|630,653,099.86|630,653,099.86|
|Advance receipts|1,877,069,335.29|1,877,069,335.29|
|Contract Liabilities|||
|Employees’ wage payable|43,332,523.01|43,332,523.01|
|Tax payable|37,809,874.53|37,809,874.53|
|Other account payable|24,708,959.22|24,708,959.22|
|Including：Interest payable|212,010.69|212,010.69|
|Dividend payable|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|100,000,000.00|100,000,000.00|
|Other current liability|||
|Total of current liability|2,737,773,791.91|2,737,773,791.91|
|Non-current liabilities：|||
|Long-term loan|||

||||
|-|-|-|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Lease liability|||
|Long-term payable|264,512,388.24|264,512,388.24|
|Long-term remuneration payable to staff|||
|Expected liabilities|||
|Deferred income|41,944,793.30|41,944,793.30|
|Deferred income tax liability|244,169,946.57|244,169,946.57|
|Other non-current liabilities|||
|Total non-current liabilities|550,627,128.11|550,627,128.11|
|Total of liability|3,288,400,920.02|3,288,400,920.02|
|Owners’ equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|138,953,250.09|138,953,250.09|
|Less：Shares in stock|||
|Other comprehensive income|1,377,784,111.74|1,377,784,111.74|
|Special reserve|7,609,505.31|7,609,505.31|
|Surplus reserves|602,356,402.65|602,356,402.65|
|Retained profit|2,602,026,967.56|2,602,026,967.56|
|Total of owners’ equity|5,482,740,637.35|5,482,740,637.35|
|Total of liabilities and owners’ equity|8,771,141,557.37|8,771,141,557.37|

Notes
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards Governing Financial Instruments or Leases
Not applicable
45.Other
VI. Taxation
||||
|-|-|-|
|Category of taxes|Tax base|Tax rate|
|VAT|Sales of goods or providing of taxable labor service|16%,13%,6%|
|City maintenance and|||
||Turnover tax payable|5%,7%|
|construction tax|||
|Enterprise income tax|Amount of income taxable|15%,25%|
|Educational surcharge|Turnover tax payable||
|||3%|
|Local education additional|Turnover tax payable||
|||2%|
||For those on price basis, taxes are paid||
||at 1.2% of the balance of original value||
|House tax|of the property after deducting of 30%;|1.2%,12%|
||for those on rental basis, taxes are||
||paid at 12% of the rental.||

Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
||||
|-|-|-|
|Name|Income tax rate||
|The Company , Zhongneng Company, Packaged Tech. Company,Casting|||
|Company, Zhejiang Huayuan Steam Turbine Machinery Co.,Ltd. and|15%||
|Hangzhou Guoneng Steam Turbine Engineering Co.,Ltd.|||
||Hangzhou Zhongneng Steam Turbine Power (Indonesia)||
|||(Indonesia)|
|Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd.|Co., Ltd. registered in Indonesia overseas subsidiaries,||
||the applicable local relevant tax laws and regulations.||
||the applicable local relevant tax laws and regulations.||
|Other Subsidiary（Domestic）|25%||

2. Preferential tax
1. According to the document “Notice for Qualification of High-tech Enterprises”(GKHZD〔2017〕No.201) issued by Department of Science and Technology High-tech Development Center, the Company along with Hangzhou Zhongneng Steam Turbine Power Co., Ltd. ,Zhejiang Packaged Technologies Development Co., Ltd., Zhejiang Huayuan Steam Turbine Machinery Co.,Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co.,Ltd.– subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they enjoy15% of tax for 2018.
2. According to the document “Notice for Qualification of High-tech Enterprises”(GKHZD〔2016〕No.149) issued by Department of Science and Technology High-tech Development Center, Hangzhou Steam Turbine Casting Co.,Ltd– subsidies of the Company, were qualified as high-tech enterprises for term of three years. Therefore they enjoy15% of tax for 2016-2018.
3.Other
VII. Notes to the Consolidated Financial Statements
1.Monetary Capital
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Cash in stock|132,336.73|128,198.82|
|Bank deposit|1,721,272,261.33|1,297,059,605.97|
|Other monetary fund|98,454,424.85|85,204,204.80|
|Total|1,819,859,022.91|1,382,392,009.59|
|Incl: Total of accounts saved overseas|5,188,570.66|4,535,870.05|

 Other notes:
The ending bank deposits include a court-blocked deposit with a restricted usage of RMB 35,000,000.00;Other monetary fund composes , Security for bank acceptance notes RMB 98,363,924.80 of security for Letter of credit, RMB90,000.00 of security for bank guarantee letter and refundable deposit without a restricted usage of RMB 500.56.
2. Transactional financial assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Financial assets measured at fair value through profit or loss|578,769,000.00|1,156,870,000.00|
|Of which ：|||
|Of which：|||
|Total|578,769,000.00|1,156,870,000.00|

 3. Derivative financial assets
Nil
4. Notes receivable
(1) Notes receivable listed by category
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Bank acceptance bill|471,996,506.16|574,782,175.22|
|Trade acceptance bill|8,609,878.68|20,307,000.00|
|Total|480,606,384.84|595,089,175.22|

(2) Accounts receivable withdraw, reversed or collected during the reporting period
Nil
（3）Notes receivable pledged by the Company at the end of the period
In RMB
|||
|-|-|
|Items|Pledged amount|
|Bank acceptance bill|62,824,000.00|
|Total|62,824,000.00|

（4）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 at the|Amount of not terminated recognition at|
|Items|||
||period-end|the period-end|
|Bank acceptance bill|715,062,076.86||
|Trade acceptance bill|2,542,730.25||
|Total|717,604,807.11||

（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
（6） The actual write-off accounts receivable
Nil
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||End of term|||||Beginning of term|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||||||||
|||Proportion||Proportion|Book value||Proportion||Proportion|Book value|
||Amount||Amount|||Amount||Amount|||
|||%||%|||%||%||
|Accrual of bad debt|||||||||||
|provision by single|29,819,607.69|0.95%|29,819,607.69|100.00%|0.00|29,819,607.69|0.99%|29,819,607.69|100.00%||
|item|||||||||||
|Including：|||||||||||
|Accrual of bad debt|||||||||||
||3,096,045,722.22|99.05%|1,035,677,370.86|33.45%|2,060,368,351.36|2,982,887,216.78|99.01%|1,042,088,961.52|34.94%|1,940,798,255.26|
|provision by portfolio|||||||||||
|Including：|||||||||||
|Total|3,125,865,329.91|100.00%|1,065,496,978.55|34.09%|2,060,368,351.36|3,012,706,824.47|100.00%|1,071,908,569.21|35.58%|1,940,798,255.26|

 Accrual of bad debt provision by single item:29,819,607.69 yuan
In RMB
||||||
|-|-|-|-|-|
||End of term||||
|Name|||||
||Other receivable||||
|||Bad debt provision|Proportion%|Reason|
||account||||

||||||
|-|-|-|-|-|
|||||There are evidences or receivables based on|
|Accrual of bad debt provision by single|||||
||29,819,607.69|29,819,607.69|100.00%|common sense that the credit risk is|
|tem:|||||
|||||significantly higher or lower.|
|Total|29,819,607.69|29,819,607.69|--|--|

Accrual of bad debt provision by portfolio:1,035,677,370.86 yuan
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Name||||
||Book balance|Bad debt provision|Proportion|
|Within 1 year（Including 1||||
||1,207,787,957.34|60,389,397.94|5.00%|
|year）||||
|1-2 years|624,005,759.19|62,400,575.84|10.00%|
|2-3 years|328,553,152.78|98,565,945.84|30.00%|
|3-4 years|208,046,764.12|124,828,058.47|60.00%|
|4-5 years|190,793,480.12|152,634,784.10|80.00%|
|Over 5 years|536,858,608.67|536,858,608.67|100.00%|
|Total|3,096,045,722.22|1,035,677,370.86|--|

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other receivables if the provision for bad debts of bills receivable is accrued according to the general model of expected credit loss:
Disclosure by aging
In RMB
|||
|-|-|
|Aging|Closing balance|
|Within 1 year（Including 1 year）|1,147,398,559.40|
|1-2 years|561,605,183.35|
|2-3 years|229,987,206.94|
|Over 5 years|121,377,401.67|
|3-4 years|83,218,705.65|
|4-5 years|38,158,696.02|
|Over 5 years|0.00|
|Total|2,060,368,351.36|

 (2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debtprovision：
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount of change in the current period||||
|Category|Opening balance||Reversed or||Closing balance|
|||Accrual||Write-off||
||||collected amount|||
|Accrual of bad debt||||||
||29,819,607.69||||29,819,607.69|
|provision by single item||||||

|||||
|-|-|-|-|
|Accrual of bad debt||-6,411,590.66||
||1,042,088,961.52||1,035,677,370.86|
|provision by portfolio||||
|Total|1,071,908,569.21|-6,411,590.66|1,065,496,978.55|

 (3) The actual write-off accounts receivable
In RMB
|||
|-|-|
|Items|Amount|
|Uncollectible amount|0.00|

The significant actual write-off accounts receivable:
（4）The ending balance of account receivables owed by the imputation of the top five parties
|||||
|-|-|-|-|
|Name|Amount|Proportion(%)|Bad debt provision|
|Client 1|670,859,810.45|21.46%|300,449,816.90|
|Client 2|240,631,511.27|7.70%|163,538,638.03|
|Client 3|161,326,729.06|5.16%|9,871,314.19|
|Client 4|63,427,500.00|2.03%|6,342,750.00|
|Client 5|53,953,673.36|1.73%|2,697,683.67|
|Subtotal|1,190,199,224.14|38.08%|482,900,202.79|

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Nil
6. Financing of receivables
Nil
7. Prepayments
（1）Age analysis
In RMB
||||
|-|-|-|
|Age|End of term|Beginning of term|

||||||
|-|-|-|-|-|
||Book balance|Proportion(%)|Book balance|Proportion(%)|
|Within 1 year|387,035,194.27|93.20%|339,805,990.35|91.60%|
|1-2 years|15,114,713.00|3.64%|22,067,247.82|5.95%|
|2-3 years|4,009,227.00|0.97%|1,208,614.00|0.33%|
|Over 3 years|9,132,823.10|2.20%|7,877,138.57|2.12%|
|Total|415,291,957.37|--|370,958,990.74|--|

Notes：
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
||||
|-|-|-|
|Name|Amount|Proportion(%)|
|Hangzhou Hangfa generation Equipment Co., ltd.|41,416,785.00|9.97|
|Jinling International Co., Ltd.|35,654,354.43|8.59|
|Siemens Industrial Turbomachinery AB|31,279,682.87|7.53|
|Wuhan Baiya Electric power Technology Co., Ltd.|21,154,000.00|5.09%|
|FORMOSA ELECTRIC POWER SYSTEM CO.,LTD.|20,954,980.57|5.05%|
|Subtotal|150,459,802.87|36.23|

Othernotes：
8. Other account receivable
In RMB
||||
|-|-|-|
|Nature|Closing balance|Opening balance|
|Interest receivable|0.00||
|Dividend receivable|84,526,094.10|16,557,292.60|
|Other|18,293,347.31|15,995,166.16|
|Total|102,819,441.41|32,552,458.76|

（1）Interest receivable：Nil
（2）Dividend receivable
（1）Dividend receivable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Hangzhou Bank|84,526,094.10|16,557,292.60|
|Total|84,526,094.10|16,557,292.60|

2) Significant dividend receivable aged over 1 year
In RMB
||||||
|-|-|-|-|-|
|||||Whether occurred|
|Items|Closing balance|Aging|Reason|impairment and its|
|||||judgment basis|
|Hangzhou Bank|9,657,292.60|1-2 years|Equity pledge|No|
|Hangzhou Bank|6,900,000.00|2-3 years|Equity pledge|No|
|Total|16,557,292.60|--|--|--|

3）Bad-debt provision
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
||||
|-|-|-|
|Nature|Closing book balance|Opening book balance|
|Export tax rebate receivable||2,153,878.45|
|Deposit|13,265,110.29|16,937,448.95|
|Provisional payment receivable|10,572,543.47|5,251,040.00|
|Petty cash|4,133,206.64|1,327,534.34|
|Other|3,713,119.52|3,730,374.47|
|Total|31,683,979.92|29,400,276.21|

2）Bad-debt provision
Loss provision changes in current period, change in book balance with significant amount
□ Applicable√Not applicable
Disclosure by aging
In RMB
|||
|-|-|
|Aging|Closing balance|
|Within 1 year(Including 1 year）|13,046,814.07|
|1-2 years|2,802,463.45|
|2-3 years|1,271,991.21|
|Over 3 years|1,172,078.58|
|3-4 years|824,700.80|
|4-5 years|347,377.78|

|||
|-|-|
|Over 5 years|0.00|
|Total|18,293,347.31|

 3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debtprovision：
In RMB
||||||
|-|-|-|-|-|
|||Amount of change in the|||
|||current period|||
|Category|Opening balance||Reversed or|Closing balance|
|||Accrual|collected||
||||amount||
|Other receivables with provision for bad debts|||||
||13,405,110.05|-14,477.44||13,390,632.61|
|based on credit risk characteristics|||||
|Total|13,405,110.05|-14,477.44||13,390,632.61|

 4) The actual write-off accounts receivable
Nil
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the total|Closing balance|
|Name|Nature|Closing balance|Aging|year end balance of the|of bad debt|
|||||accounts receivable|provision|
|Shanghai Customs Waigaoqiao Office|Deposit|3,710,320.94|Over 5 years|11.71%|3,710,320.94|
|Hangzhou Zhongneng Steam Turbine||||10.83%|3,431,600.00|
||Investment|3,431,600.00|5-6 years|||
|Power (Indonesia) Co., Ltd.||||||
||Temporary|||3.49%|55,269.75|
|Hangzhou Intermediate People's Court,||||||
||payment|1,105,395.00|1 year|||
|Zhejiang Province||||||
||receivable|||||
|Guoxin Tendering Group Co., Ltd|Deposit|800,000.00|4 years|2.52%|480,000.00|
|National Central and Western Regional||||2.52%|40,000.00|
|Cooperation Demonstration Zone|Deposit|800,000.00|1 year|||
|Bidding Management Office||||||
|Total|--|9,847,315.94|--|31.07%|7,717,190.69|

6) Accounts receivable involved with government subsidies
Nil
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
Nil
9. Inventories
Whether implemented new revenue guidelines?
No
（1）Category of Inventory
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing book balance|||Opening book balance|||
|Items||Provision for|||Provision for||
||Book balance|inventory|Book value|Book balance|inventory|Book value|
|||impairment|||impairment||
||537,036,361.35|53,003,915.45|484,032,445.90|585,528,478.85|53,187,189.03|532,341,289.82|
|Raw materials|||||||
|Goods in|||||25,188,298.67||
||794,557,915.19|28,954,137.55|765,603,777.64|731,748,385.18||706,560,086.51|
|progress|||||||
|Stock goods|1,107,771,113.80|134,625,404.08|973,145,709.72|1,093,823,673.99|144,603,707.45|949,219,966.54|
|Total|2,439,365,390.34|216,583,457.08|2,222,781,933.26|2,411,100,538.02|222,979,195.15|2,188,121,342.87|

 Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Falling price reserves of inventory
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increased amount||Decreased amount|||
|Items|Opening balance||Reverse or|Reverse or||Closing balance|
|||Withdrawal|||Other||
||||write-off|write-off|||
||53,187,189.03|0.00|0.00|183,273.58|0.00|53,003,915.45|
|Raw materials|||||||
||28,968,721.85|0.00|0.00|14,584.30|0.00|28,954,137.55|
|Goods in progress|||||||

||||||||
|-|-|-|-|-|-|-|
|Stock goods|140,823,284.27|0.00|0.00|6,197,880.19|0.00|134,625,404.08|
|Total|222,979,195.15|0.00|0.00|6,395,738.07|0.00|216,583,457.08|

 2) The specific basis for determining the net realizable value, and the reasons for the reversal of the inventory depreciation reserve for the current period
||||
|-|-|-|
|Items|Specific basis for recognition of net realizable value|Current write-offReason for provision forinventory|
|Raw materials|The net realizable value shall be recognized by the amount of theestimated selling prices minus the estimated selling costs and relevanttaxes and dues|Used for current productionand use|
|Goods in process andcommodity stocks|The net realizable value shall be recognized by the amount of theestimated selling prices minus the estimated selling costs and relevanttaxes and dues, wherein regarding suspended projects expected not be tobe recovered or projects whose sales agreements are released, the netrealizable value shall be recognized by the expected recoverablecompensation|Current realized sales|

(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
10. Assets divided as held-to-sold
Nil
11. Non-current assets due within 1 year
Nil
12. Other current assets
Whether implemented new revenue guidelines?
No
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Input tax deductible|||
||59,238,064.27|28,260,278.71|
|To verify the input tax|47,553.14||
|Prepaid income tax|4,992,881.54|2,804,366.47|

||||
|-|-|-|
|Rent charge|837,437.34|813,310.56|
|Total|65,115,936.29|31,877,955.74|

 13.Creditor's rightinvestment：Nil
14.Other Creditor's right investment: Nil
15. Long-term accounts receivable
Nil
16. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease||||||||||
|||||Profits||||||||
|||||and||||Withdr||||
|||||losses||||||||
||||Decr|on|Other||Cash|awal|||Closing|
|Investees|Opening balance||ease|invest|compr|Change|bonus or|of||Closing balance|balance of|
|||||ments||||||||
|||Additional|in|Recog|ehensi|s in|profits|impair|Other||impairment|
|||investment|inve||ve|other||||||
||||stme|nized|incom|equity|announce|ment|||provision|
|||||under||||||||
||||nt||e||d to issue|provisi||||
|||||the||||||||
|||||equity||||on||||
|||||metho||||||||
|||||d||||||||
|I. Joint venture||||||||||||
|2. Affiliated Company||||||||||||
|Zhejiang||||||||||||
|Zhongrun Gas||||||||||||
||8,221,439.29|2,040,000.00||||||||10,261,439.29||
|turbine technology||||||||||||
|Co., Ltd.||||||||||||
|Subtotal|8,221,439.29|2,040,000.00||||||||10,261,439.29||
|Total|8,221,439.29|2,040,000.00||||||||10,261,439.29||

Other notes
17. Other equity instruments investment
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|

||||
|-|-|-|
|Hangzhou Bank|2,264,720,465.98|2,011,876,524.40|
|Total|2,264,720,465.98|2,011,876,524.40|

 Itemized disclosure of the current non - trading equity instrument investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Reasons for being||
|||||Amount of other|measured at fair|Reasons for other|
|||||comprehensive|value and whose|comprehensive|
||Recognized|Accumulating|Accumulating||||
|Name||||income|changes are|income|
||dividend income|profit|profit||||
|||||transferred to|included in other|transferred to|
|||||retained earnings|comprehensive|retained earnings|
||||||income||
||||||The Company||
||||||takes a position||
||||||of holding the||
||||||equity instrument||
||||||for a long-term to||
||||||obtain stable||
||||||dividends, and it||
||||||does not care||
|Hangzhou Bank|67,968,801.50|1,873,766,425.98|||||
||||||about the impact||
||||||of price||
||||||fluctuations on||
||||||profit and loss.||
||||||The Cash flow is||
||||||not entirely the||
||||||principal and||
||||||interest.||

Othernotes：
18.Other non-current assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Hangzhou Jushi Investment Partnership（LP）|50,000,000.00|50,000,000.00|
|Hangzhou Steam Turbine Engineering Co., Ltd.|4,820,000.00|4,820,000.00|
|Wuxi Xinchang Steel Bube Co., ltd.|13,845,257.58|13,845,257.58|
|Zhejiang Zhongkong Solar Energy Technology|||
||15,000,000.00|15,000,000.00|
|Co., Ltd.|||
|Zhejiang Tianhang Steam Turbine Auxiliary|||
||10,000,000.00|10,000,000.00|
|Machinery Co., Ltd.|||

||||
|-|-|-|
|Greenesol power systems PVT Ltd.|5,534,773.22|5,534,773.22|
|Zhejiang Hangzhou Steam Turbine Gas turbine|||
||2,400,000.00|2,400,000.00|
|machinery innovation center|||
|Zhejiang Sanxin Automation Engineering Co.,|||
||600,000.00|600,000.00|
|Ltd.|||
|Juyuan Xinxing No.9 private equity fund raising|||
||16,000,000.00|16,000,000.00|
|special account|||
|Sichuan Lutianhua Co., Ltd.|2,281,853.06||
|Turbine Company|11,400,000.00||
|Total|131,881,883.86|118,200,030.80|

 Othernotes：
19. Investment property
Nil
20. Fixed assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Fixed assets|||
||761,603,992.58|783,740,928.49|
|Total|761,603,992.58|783,740,928.49|

 (1) Details
In RMB
|||||||
|-|-|-|-|-|-|
||||Transportation|||
|Items|Houses & buildings|Machinery equipment||Office equipment|Total|
||||equipment|||
|I. Original price||||||
|1. Balance at||||||
||732,378,844.81|1,022,902,093.21|27,934,764.05|100,670,157.77|1,883,885,859.84|
|period-beginning||||||
|2.Increase in the current|0.00|14,065,140.36|420,882.90|964,332.12|15,450,355.38|
|period||||||
|(1) Purchase|0.00|7,383,988.74|420,882.90|548,836.44|8,353,708.08|
|（ 2 ）|0.00|6,681,151.62|0.00|415,495.68|7,096,647.30|
|Transferred from construct||||||

|||||||
|-|-|-|-|-|-|
|ion in progress||||||
|(3)Increased of||||||
||||||0.00|
|Enterprise Combination||||||
||||||0.00|
|3.Decreased amount of the||||||
||0.00|5,825,250.24|140,000.00|1,693,493.76|7,658,744.00|
|period||||||
|（1）Dispose|0.00|5,825,250.24|140,000.00|1,693,493.76|7,658,744.00|
||||||0.00|
|4. Balance at period-end|732,378,844.81|1,031,141,983.33|28,215,646.95|99,940,996.13|1,891,677,471.22|
|II.Accumulated||||||
||||||0.00|
|amortization||||||
|1.Opening balance|205,744,672.74|782,001,809.78|21,626,415.94|84,120,061.22|1,093,492,959.68|
|2.Increased amount of the||||||
||12,846,518.83|22,455,549.23|415,621.91|1,271,956.33|36,989,646.30|
|period||||||
|(1) Withdrawal|12,846,518.83|22,455,549.23|415,621.91|1,271,956.33|36,989,646.30|
||||||0.00|
|3.Decrease in the reporting||||||
||0.00|4,825,001.33|133,000.00|1,632,096.51|6,590,097.84|
|period||||||
|（1）Disposal|0.00|4,825,001.33|133,000.00|1,632,096.51|6,590,097.84|
||||||0.00|
|4.Closing balance|218,591,191.57|799,632,357.68|21,909,037.85|83,759,921.04|1,123,892,508.14|
|III. Impairment provision|||||0.00|
|1.Opening balance|1,504,928.24|4,033,520.42|0.00|1,113,523.01|6,651,971.67|
|2.Increase in the reporting||||||
||0.00|0.00|0.00|0.00|0.00|
|period||||||
|（1）Withdrawal|||||0.00|
||||||0.00|
|3.Decrease the reporting||||||
||0.00|433,399.30|0.00|37,601.87|471,001.17|
|period||||||
|（1）Disposal|0.00|433,399.30|0.00|37,601.87|471,001.17|
||||||0.00|
|4. Closing balance|1,504,928.24|3,600,121.12|0.00|1,075,921.14|6,180,970.50|
|IV. Book value|||||0.00|
|1.Book value of the||||||
||525,553,099.54|214,639,129.99|6,306,609.10|15,105,153.95|761,603,992.58|
|period-end||||||

|||||||
|-|-|-|-|-|-|
|2.Book value of the||||||
||525,129,243.83|236,866,763.01|6,308,348.11|15,436,573.54|783,740,928.49|
|period-begin||||||

(2) List of temporarily idle fixed assets
Nil
(3) Fixed assets leased in from financing lease
Nil
(4) Fixed assets leased out from operation lease
Nil
(5) Details of fixed assets failed to accomplish certification of property
In RMB
||||
|-|-|-|
|Items|Book value|Reason|
|Steam turbine power Building||In process|
||217,937,640.97||
|Complete sets of factory||In process|
||40,753,085.36||

（6）Liquidation of fixed assets
Nil
21. Construction in progress
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Construction in progress|659,588,447.28|454,767,328.93|
|Total|659,588,447.28|454,767,328.93|

 (1) List of construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Items|Book balance|Provision|||Provision||
||||Book value|Book balance||Book value|
|||for|||for||

||||||||
|-|-|-|-|-|-|-|
|||impairmen|||impairment||
|||t|||||
|New Plant project|631,046,137.11||631,046,137.11|429,609,053.59||429,609,053.59|
|Steam turbine power|||||||
||1,726,143.04||1,726,143.04||||
|Building|||||||
|Software project|7,779,939.24||7,779,939.24|7,779,939.24||7,779,939.24|
|Other project|15,116,301.15||15,116,301.15|8,457,875.95||8,457,875.95|
|Prepayment for|||||||
||3,919,926.74||3,919,926.74|8,920,460.15||8,920,460.15|
|equipment or projects|||||||
|Total|659,588,447.28||659,588,447.28|454,767,328.93||454,767,328.93|

(2)Changes of significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Including|||
|||||||||||g:|||
||||||||||||Capitaliz||
||||||||||Capitaliz|capitaliz||Source|
|||||Transferred to|Other||Proportion|Project|||ation of||
|Name of project|Budget|Opening balance|Increase|||End balance|||ation of|ation of||of|
|||||fixed assets|decrease||%|process|||interest||
||||||||||interest|interest||funding|
||||||||||||rate (%)||
|||||||||||this|||
|||||||||||period|||
|New Plant project|1,733,287,600.0|||||||Under|||||
||0|429,609,053.59|201,437,083.52|||631,046,137.11|39.46%|Construc|5,427,195.39|1,255,268.85|1.20%|Other|
|||||||||tion|||||
|Steam turbine power|231,425,300.00||||||||||||
|||||||||Complet|||||
||||1,726,143.04|||1,726,143.04|100.00%|||||Other|
|Building||||||||ed|||||
||7,970,000.00|||||||Under|||||
|Software project||7,779,939.24||||7,779,939.24|97.62%|Construc||||Other|
|||||||||tion|||||
|||||||||Under|||||
|Other project||8,457,875.95|8,750,212.35|2,091,787.15||15,116,301.15||Construc||||Other|
|||||||||tion|||||
|||||||||Under|||||
|Prepayment for|||||||||||||
|equipment or||8,920,460.15|4,326.74|5,004,860.15||3,919,926.74||Construc||||Other|
|projects||||||||tion|||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||1,972,682,900.0|||||||||||
|Total||454,767,328.93|211,917,765.65|7,096,647.30|0.00|659,588,447.28|--|--|5,427,195.39|1,255,268.85|--|
||0|||||||||||

(3) List of the withdrawal of the impairment provision of the construction in progress
Nil
（4）Engineering material
Nil
22. Productive biological assets
Nil
23. Oil and gas assets
Nil
24. Right to use assets
Nil
25. Intangible assets
(1) Information
In RMB
|||||||
|-|-|-|-|-|-|
||||Non patent|||
|Items|Land using right|Patent||Software|Total|
||||technology|||
|I. Original price||||||
|1. Balance at||||||
||332,298,312.33|309,433.96|0.00|3,240,025.87|335,847,772.16|
|period-beginning||||||
|2.Increase in the current||||||
|period||||||
|(1) Purchase||||||
|(2)Internal Development||||||
|(3)Increased of Enterprise||||||
|Combination||||||
|3.Decreased amount of||||||
|the period||||||
|（1）Disposal||||||
|4.Closing balance|332,298,312.33|309,433.96|0.00|3,240,025.87|335,847,772.16|
|II.Accumulated||||||
|amortization||||||
|1.Opening balance|55,106,840.56|258,450.38|0.00|741,724.73|56,107,015.67|
|2.Increased amount of||||||
||3,331,432.68|2,735.10|0.00|308,002.56|3,642,170.34|
|the period||||||
|(1) Withdrawal|3,331,432.68|2,735.10|0.00|308,002.56|3,642,170.34|
|3.Decreased amount of the||||||
|period||||||
|（1）Disposal||||||
|4.Closing balance|58,438,273.24|261,185.48|0.00|1,049,727.29|59,749,186.01|
|III. Impairment provision||||||
|1.Opening balance||||||
|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|273,860,039.09|48,248.48|0.00|2,190,298.58|276,098,586.15|
|2.Opening book value|277,191,471.77|50,983.58|0.00|2,498,301.14|279,740,756.49|

 The proportion the intangible assets formed from the internalR&D through the Company amount the balance of the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
Nil
26.R&D expenses
Nil
27. Goodwill
Nil
28. Long-term unamortized expenses
Nil
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
||||||
|-|-|-|-|-|
||End of term||Beginning of term||
|Items|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Provision for Asset Impairment|1,300,939,413.26|200,993,717.84|1,339,474,275.36|207,199,125.83|
|Internal trade profit not|||||
||61,806,771.99|9,463,856.66|41,572,138.74|6,430,832.03|
|realized|||||
|Deductible loss|0.00|0.00|||

||||||
|-|-|-|-|-|
|Temporary difference such as|||||
||2,218,329.11|332,749.37|2,218,329.11|332,749.37|
|amortizing of software expense|||||
|Changes in fair value of other|||||
||26,654,755.34|3,998,213.30|||
|non-current assets|||||
|Total|1,391,619,269.70|214,788,537.17|1,383,264,743.21|213,962,707.23|

 (2) Deferred income tax liabilities had not been off-set
In RMB
||||||
|-|-|-|-|-|
||End of term||Beginning of term||
|Items|||||
||Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|liabilities|difference|liabilities|
|Changes in fair value of|||||
|investments in other|1,873,766,425.98|281,064,963.90|1,620,922,484.40|243,138,372.66|
|equity instruments|||||
|Accumulated|||||
||6,180,970.50|927,145.58|6,651,971.67|997,795.75|
|depreciation|||||
|Deferred income|900,750.80|135,112.62|225,187.70|33,778.16|
|Total|1,880,848,147.28|282,127,222.10|1,627,799,643.77|244,169,946.57|

（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
||||||
|-|-|-|-|-|
||||Deferred Income Tax|Temporarily Deductable|
||Deferred Income Tax|Temporarily Deductable|||
||||Assets or Liabilities at|or Taxable Difference at|
|Items|Assets or Liabilities at|or Taxable Difference at|||
||||the Beginning of Report|the Beginning of Report|
||the End of Report Period|the End of Report Period|||
||||Period|Period|
|Deferred income tax||214,788,537.17|||
|||||213,962,707.23|
|assets|||||
|Deferred income tax||282,127,222.10|||
|||||244,169,946.57|
|liabilities|||||

(4)Details of income tax assets not recognized
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Deductible provisional differences|734,654.14|650,570.73|
|Deductible losses|30,691,075.97|25,565,760.83|

||||
|-|-|-|
|Total|31,425,730.11|26,216,331.56|

 (5) The un-recognized deductible losses of deferred income tax assets will due in the following years
In RMB
|||||
|-|-|-|-|
|Year|End of term|Beginning of term|Remark|
|2020|352,606.82|439,625.66||
|2021|712,938.27|712,938.27||
|2022|5,902,717.30|5,953,854.74||
|2023|18,459,342.16|18,459,342.16||
|2024|5,263,471.42|||
|Total|30,691,075.97|25,565,760.83|--|

30. Other non-current assets
Nil
31. Short-term borrowings
(1) Category of short-term borrowings
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Pledge Borrowing|0.00|0.00|
|Mortgage Borrowings|59,800,000.00|47,900,000.00|
|Guarantee Borrowing|37,700,000.00|37,700,000.00|
|Credit borrowing|0.00|0.00|
|Mortgage and Guarantee|0.00|54,000,000.00|
|Total|97,500,000.00|139,600,000.00|

 (2) List of the short-term borrowings overdue but not return
32. Transactional financial liabilities
Nil
33. Derivative financial liability
Nil
34.Notes payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Bank acceptance bill|237,870,569.88|263,897,462.79|
|Total|237,870,569.88|263,897,462.79|

35. Accounts payable
(1) List of accounts payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Goods|1,088,197,720.56|1,026,275,855.39|
|Equipment and Engineering|100,132,003.87|60,410,063.35|
|Total|1,188,329,724.43|1,086,685,918.74|

 (2) Notes of the accounts payable aging over one year
Nil
36. Advances received
Whether implemented new revenue guidelines?
Nil
(1) List of Advances received
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Goods|2,555,520,011.33|2,582,234,158.36|
|Total|2,555,520,011.33|2,582,234,158.36|

 (2) Notes of the accounts payable aging over one year
Nil
37.Employees’ wage payable
(1) List of Payroll payable
In RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this period|Decreased this period|End of term|
|I. Short-term wages|63,423,331.59|324,039,923.67|337,179,017.91|50,284,237.35|

||||||
|-|-|-|-|-|
|II. Welfare after leaving|||||
|of position-fixed|22,967,623.70|43,995,715.30|52,109,496.76|14,853,842.24|
|provision scheme|||||
|Total|86,390,955.29|368,035,638.97|389,288,514.67|65,138,079.59|

 (2) Details of short term wages
In RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this period|Decreased this period|End of term|
|1.Wage, bonus, allowance and subsidies|48,159,059.49|243,286,098.34|263,117,557.72|28,327,600.11|
|2. Employee welfare|0.00|18,336,994.82|13,091,480.29|5,245,514.53|
|3. Social insurance|6,861,555.29|26,760,752.54|26,728,272.16|6,894,035.67|
|Incl. Medical insurance|6,406,895.63|23,347,637.26|23,313,021.09|6,441,511.80|
|Labor injury insurance|96,387.91|742,611.04|740,032.75|98,966.20|
|Maternity insurance|358,271.75|2,670,504.24|2,675,218.32|353,557.67|
|4. Housing fund|111,421.96|25,731,882.00|25,726,039.00|117,264.96|
|5. Labour union fee and employee|||||
||8,291,294.85|8,251,195.97|6,842,668.74|9,699,822.08|
|education fee|||||
|6. Short-term paid absence|0.00|0.00|0.00|0.00|
|7.Short-term profit sharing scheme|0.00|1,673,000.00|1,673,000.00|0.00|
|Total|63,423,331.59|324,039,923.67|337,179,017.91|50,284,237.35|

 (3) Details of fixed provision scheme
In RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this period|Decreased this period|End of term|
|1.Basic pension|||||
||4,080,388.66|31,241,284.39|31,189,936.66|4,131,736.39|
|insurance|||||
|2. Unemployment|||||
||145,938.27|1,114,649.31|1,113,025.82|147,561.76|
|insurance|||||
|3. Enterprise annual fee|18,741,296.77|11,639,781.60|19,806,534.28|10,574,544.09|
|Total|22,967,623.70|43,995,715.30|52,109,496.76|14,853,842.24|

 38. Taxes Payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|VAT|3,815,501.92|29,776,940.88|
|Enterprise Income tax|||
||15,707,673.47|23,909,724.68|
|Individual Income tax|684,083.90|1,043,483.57|
|City Construction tax|260,719.16|2,366,801.27|

||||
|-|-|-|
|Property tax|348,901.25|1,520,839.72|
|Land use tax|1,655,168.00|1,654,687.31|
|Education subjoin|125,288.80|1,014,509.41|
|Locality Education subjoin|83,525.82|676,339.74|
|Other|245,929.47|441,874.04|
|Total|22,926,791.79|62,405,200.62|

 39.Other account payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Interest payable|100,958.90|437,314.72|
|Dividend payable|0.00|0.00|
|Other account payable|37,508,451.62|36,466,988.29|
|Total|37,609,410.52|36,904,303.01|

（1) Interest payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Long term interest on borrowings due in installments|100,958.90|245,102.36|
|Interest on short-term borrowings||192,212.36|
|Total|100,958.90|437,314.72|

 (2) Dividends payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Total|0.00|0.00|

Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Deposit|11,818,556.60|12,075,403.25|
|Provisional account payable|24,008,353.70|22,537,821.34|
|Other|1,681,541.32|1,853,763.70|
|Total|37,508,451.62|36,466,988.29|

② Significant other payables for over 1 year
Nil
40. Liabilities classified as holding for sale
Nil
41. Non-current liabilities due within 1 year
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Long-term Borrowing loans due within 1|||
||100,100,000.00|100,100,000.00|
|year|||
|Total|100,100,000.00|100,100,000.00|

 42. Other current-liabilities
Nil
43. Long-term borrowing
(1) Category of long-term loan
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Mortgage loan|12,600,000.00|12,700,000.00|
|Guarantee loan|10,000,000.00|10,000,000.00|
|Total|22,600,000.00|22,700,000.00|

 44. Bonds payable
Nil
45. Lease liability
Nil
46. Long-term payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Long term account payable|208,330,000.00|209,598,799.99|
|Special Payable|577,336,859.28|265,277,651.27|
|Total|785,666,859.28|474,876,451.26|

 (1) Long-term payable listed by nature of the account
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|CDB investment fund|208,000,000.00|208,000,000.00|
|Income payable of CDB||1,268,799.99|
|Drawing in administrative restructuring|330,000.00|330,000.00|
|Total|208,330,000.00|209,598,799.99|

 Othernotes：
According to the relevant agreement of the National Development Fund Investment Contract (hereinafter referred to as the Investment Contract) jointly signed by the Company, National Development Fund Co., Ltd. (hereinafter referred to as the NDF), Hangzhou Steam Turbine Industry Co., Ltd. and Hangzhou Steam Turbine Group, the NDF invested RMB 208,000,000.00 in Hangzhou Steam Turbine Industry Co., Ltd., the subsidiary, The NDF obtains1.2% of the proceeds through dividends or repurchasing premium each year for the above investment; under the investment contract, Hangzhou Steam Turbine Group will transfer its shares of Steam Turbine Industry Co., Ltd from 2019 to the NDF by installment. Hangzhou Steam Turbine Industry Co., Ltd has received the above investment on December 27, 2016, according to the agreement of the investment contract on the relevant investment returns, The Company reports it as a long-term payables, the current accrued income is RMB1,248,000. Cumulative recognized income payable is RMB6,281,600.01.
(3) Special Payable
In RMB
|||||||
|-|-|-|-|-|-|
||||Decreased this|||
|Items|Beginning of term|Increased this period||End of term|Reason|
||||period|||
|Compensation for||||||
||265,277,651.27|314,548,452.89|2,489,244.88|577,336,859.28||
|relocation||||||
|Total|265,277,651.27|314,548,452.89|2,489,244.88|577,336,859.28|--|

47. Long term payroll payable
Nil
48. Accrued liabilities
Nil
49. Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
||||Decreased thisperiod|||
|Items|Beginning of term|Increased this period||End of term|Reason|
||||||Receive government|
|Government Subsidy|44,675,128.30|2,489,244.88|4,391,157.98|42,773,215.20||
||||||subsidies|
|Total|44,675,128.30|2,489,244.88|4,391,157.98|42,773,215.20|--|

Details of government subsidies
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Amounttransf||||||
||||||Amount||||
||||||of cost||||
||||erredtonon-operatio|Other income||Other||Asset-rel|
|||New subsidy|||||||
||||||deducted||||
||Beginning of|||||||ated or|
|Items||in current||recorded in the||change|End of term||
||term||||in the|||income-re|
|||period||current period||s|||
|||||||||lated|
||||||current||||
||||nalincome||||||
||||||period||||
|Financial support|||||||||
|||||||||Related to|
|for industrial|230,240.00|0.00||28,780.00|||201,460.00||
|||||||||assets|
|projects|||||||||
|Government|||||||||
|||||||||Related to|
|subsidy for|1,911,645.00|0.00||997,380.00|||914,265.00||
|||||||||assets|
|casting project|||||||||
|Circular economy||||||||Related to|
||91,280.00|0.00||11,410.00|||79,870.00||
|financial subsidy||||||||assets|
|Subsidy for|||||||||
|||||||||Related to|
|industrial upgrading|160,000.00|0.00||160,000.00|||0.00||
|||||||||assets|
|by provincial|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|government|||||||||
|Finance for casting||||||||Related to|
||230,240.00|0.00||28,780.00|||201,460.00||
|project||||||||assets|
|Government subsidy|||||||||
|for industrial entities|||||||||
|from Yuhang||||||||Related to|
||106,930.00|0.00||0.00|||106,930.00||
|District Government||||||||assets|
|in the 2nd half of|||||||||
|2009|||||||||
|Compensation for|||||||||
|requisition and||||||||Related to|
||41,944,793.30|2,489,244.88||3,164,807.98|||41,269,230.20||
|relocation-newly||||||||assets|
|built complete plant|||||||||
|Total|44,675,128.30|2,489,244.88|0.00|4,391,157.98|0.00|0.00|42,773,215.20||

 50. Other non-current liabilities
Nil
51. Stock capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/decrease this time (+ , - )||||||
|||||Transferre||||
||Balance Year-beginning|Issuing of new|Bonus||||Balance year-end|
|||||d from|Other|Subtotal||
|||share|shares|||||
|||||reserves||||
|Total of capital|||||||754,010,400.00|
||754,010,400.00|||||||
|shares||||||||

52. Other equity instruments
Nil
53. Capital reserves
In RMB
||||||
|-|-|-|-|-|
||Year-beginning balance|Increase in|Decrease in the current|Year-end balance|
|Items|||||
|||the current|period||

|||||
|-|-|-|-|
|||period||
|Capital premium|93,909,294.56||93,909,294.56|
|Other capital reserves|57,775,125.09||57,775,125.09|
|Total|151,684,419.65||151,684,419.65|

 54. Treasury stock
Nil
55. Other comprehensive income
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Occurred current term|||||||
||||Less：Amount|Less：Prior|||||
||||transferred|period|||||
||||into profit and|included in|||||
||||loss in the|other|||||
||||||||After-tax attribute||
|Items|Opening balance|Amount incurred before|current period|composite|Less：Income tax|After-tax attribute to the||Closing balance|
||||||||to minority||
|||income tax|that recognied|income|expenses|parent company|||
||||||||shareholder||
||||into other|transfer to|||||
||||comprehensiv|retained|||||
||||e income in|income in the|||||
||||prior period|current period|||||
|1. Other comprehensive||||||214,917,350.34|||
|income that cannot be|||||||||
||1,377,784,111.74|252,843,941.58|0.00|0.00|37,926,591.24||0.00|1,592,701,462.08|
|reclassified in the loss and|||||||||
|gain in the future|||||||||
|Changes in fair value of||||||214,917,350.34|||
|investments in other equity|1,377,784,111.74|252,843,941.58|||37,926,591.24||0.00|1,592,701,462.08|
|instruments|||||||||
|II. Other Comprehensive||||||232,279.56|||
|income that will be|||||||||
||-615,589.00|545,518.42|0.00|0.00|0.00||313,238.86|-383,309.44|
|reclassified subsequently to|||||||||
|profit or loss|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Difference of translating of||||||232,279.56|||
||-615,589.00|545,518.42|||||313,238.86|-383,309.44|
|foreign currency accounts|||||||||
|Total of other||||||215,149,629.90|313,238.86|1,592,318,152.64|
||1,377,168,522.74|253,389,460.00|0.00|0.00|37,926,591.24||||
|comprehensive income|||||||||

56.Special reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this period|Decreased this period|End of term|
|Labor safety expenses|||||
||21,020,671.47|434,456.69|1,218,494.40|20,236,633.76|
|Total||||20,236,633.76|
||21,020,671.47|434,456.69|1,218,494.40||

57. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this period|Decreased this period|End of term|
|Statutory surplus reserves|||||
||621,112,807.78|||621,112,807.78|
|Total||||621,112,807.78|
||621,112,807.78||||

58. Retained profit
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|After adjustments: Retained profits at the periodbeginning|||
||3,082,544,107.52|2,774,420,288.05|
|Add：Net profit belonging to the owner of theparent company|||
||160,325,133.00|345,824,339.47|
|Common stock dividend payable|150,802,079.99|37,700,520.00|
|Retained profit at the end of this term|3,092,067,160.53|3,082,544,107.52|

 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.
59. Business income and Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Items|||||
||Income|Cost|Income|Cost|
|Main Business|1,911,865,806.20|1,364,677,904.22|2,276,427,071.38|1,608,263,667.71|
|Other|8,315,896.83|1,726,497.04|7,703,910.75|3,852,484.55|
|Total|1,920,181,703.03|1,366,404,401.26|2,284,130,982.13|1,612,116,152.26|

Whether implemented new revenue guidelines?
□ Yes√ No
60.Taxes and surcharges
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|City maintenance and construction tax|6,258,277.92|11,822,700.18|
||2,722,783.20|5,249,866.83|
|Education surtax|||
|House tax|332,977.63|3,216,786.22|
||1,655,168.00|5,178,759.26|
|Land use tax|||
|vehicle and vessel tax|26,793.80|24,888.00|
||646,951.82|1,027,019.01|
|Stamp tax|||
|Locality Education surcharge|1,815,188.62|3,299,209.54|
|Total|13,458,140.99|29,819,229.04|

 61. Sales expense
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Employees’ remunerations|35,345,136.48|32,773,059.29|
|Transportation|17,358,879.72|14,693,552.44|
|Business trips|11,000,584.22|9,452,510.07|
|Business reception expenses|3,518,464.60|3,399,943.75|
|Conferences|8,877,804.98|8,058,157.00|
|Consulting service fee|857,979.45|900,990.48|
|Three charge|2,965,403.66|1,829,961.31|
|Advertising fee|645,456.86|904,782.48|
|Office expenses|294,547.52|610,525.86|
|Unit premium|443,566.81|175,631.84|
|Other|5,588,115.02|4,209,187.70|
|Total|86,895,939.32|77,008,302.22|

 62. Administrative expense
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Employees’ remunerations|163,845,277.06|180,210,554.84|
|Asset depreciation and amortizing|12,905,965.64|6,891,121.59|
|Business reception expenses|1,341,508.33|5,547,320.26|

||||
|-|-|-|
|Rental fee, House rental, property|11,812,826.37|5,015,031.88|
|management, water and power|||
|Traveling fees|4,586,971.31|4,275,372.97|
|Material, low-value-consumable|1,755,846.28|1,720,636.69|
|Office expenses|1,171,344.18|904,559.60|
|Maintaining|1,822,902.87|1,375,919.85|
|Other|35,925,683.94|31,515,542.48|
|Total|235,168,325.98|237,456,060.16|

 63.R&D Expense
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Labor cost|50,307,098.47|52,135,762.31|
|Direct materials|51,643,451.05|85,259,892.10|
|Depreciation expenses|6,273,507.75|6,939,770.84|
|Test and inspection fee|5,852,855.49|3,476,581.20|
|Commissioned research & development|906,393.74|1,738,575.99|
|Other|1,777,636.02|1,798,978.59|
|Total|116,760,942.52|151,349,561.03|

 64. Financial expenses
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Interest expense|7,347,036.95|6,422,483.44|
|Less: Incoming interests|13,761,463.96|6,343,865.32|
|Exchange gains/losses|1,120,184.65|-1,251,354.77|
|Commission|1,072,945.23|1,032,189.81|
|Other|-33,206.03|143,723.91|
|Total|-4,254,503.16|3,177.07|

 65. Other income
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|

||||
|-|-|-|
|Government subsidies|14,470,802.89|20,337,694.45|
|Individual tax commission refunds|1,290,786.14||
|Total|||
||15,761,589.03|20,337,694.45|

 66. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Long-term equity investment income by equity method|0.00||
|Investment income from disposal of Long-term equity investment|0.00||
|Investment gains from holding of sellable|2,320,462.15||
|financial assets|||
|Investment income from disposal of available for sale financial|29,171,059.01||
|assets|||
|Dividend income from other equity instrument investments|||
||67,968,801.50||
|during the holding period|||
|Investment income received from holding of held-to-maturity|||
||0.00||
|investments during holding period|||
|Available for sale financial assets in the holding period of|||
||0.00|11,428,418.13|
|investment income|||
|Investment income from disposal of available for sale financial|||
||0.00||
|assets|||
|Disposal of investment proceeds from hold-to-maturity investments|0.00||
|Investment income from the remaining equity recalculated by fair|||
||0.00||
|value after losing control|||
|Interest income earned by the debt investment during the holding|||
||0.00||
|period|||
|Interest income earned by other debt investments during the|||
||0.00||
|holding period|||
|Investment income from disposal of other debt investments|0.00||
|Investment income of financial products|0.00|25,716,189.31|
|Total|99,460,322.66|37,144,607.44|

67.Net exposure hedging income
Nil
68. Gains on the changes in the fair value
In RMB
||||
|-|-|-|
|Source|Amount of this period|Amount of last period|
|Transactional financial assets|-1,474,755.34||
|Total|-1,474,755.34||

69. Credit impairment loss
Nil
70. Losses from asset impairment
Whether implemented new revenue guidelines?
□Yes√No
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Losses on bad debt|6,034,889.10|-43,111,352.82|
|Inventory price loss|388,917.60||
|Total|6,423,806.70|-43,111,352.82|

 71. Asset disposal income
In RMB
||||
|-|-|-|
|Source|Amount of this period|Amount of last period|
|Profits of disposal of fixed assets|-1,183.02||
|Total|-1,183.02||

72. Non-operating income
In RMB
|||||
|-|-|-|-|
||||Recorded in the amount of the non-recurring|
|Items|Amount of this period|Amount of last period||
||||gains and losses|
|Compensation income|576,158.72|3,727,204.67|576,158.72|

|||||
|-|-|-|-|
|Others|||167,716.46|
||168,680.44|462,521.81||
|Total|744,839.16|4,189,726.48||
||||743,875.18|

 73. Non-operational expenditure
In RMB
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Items|Amount of this period|Amount of last period||
||||non-recurring gains and losses|
|Debt restructuring loss|526,315.79||526,315.79|
|Donations|70,000.00|10,000.00|70,000.00|
|Penalty paid out|3,681,180.41|2,488,554.74|3,681,180.41|
|Local water source foundation|66.99|770.69||
|Fine, late payment|87,175.73|4,673.35|87,175.73|
|Non-current assets scrapping||||
||497,573.36|3,031.08|497,573.36|
|loss||||
|Other|358,450.00|84,124.68|353,800.00|
|Total|5,220,762.28|2,591,154.54||
||||5,216,045.29|

 74. Income tax expenses
(1) Details
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Income tax of current|||
||37,570,544.94|27,761,803.39|
|term|||
|Deferred income tax|||
||-795,145.65|4,216,068.43|
|Total|36,775,399.29|31,977,871.82|

 (2) Adjustment process of accounting profit and income tax expenses
In RMB
|||
|-|-|
|Items|Amount of this period|
|Total profit|221,442,313.03|

|||
|-|-|
|Income tax expense at statutory / applicable tax rates|33,216,346.96|
|Effect of different tax rates applicable to subsidiaries|3,268,612.11|
|Adjustment for income tax in prior year|6,658,104.43|
|Income not subject to tax|-7,388,913.37|
|Expenses not deductible for tax purposes|230,138.89|
|Affect the use of deferred tax assets early unconfirmed||
||-34,539.07|
|deductible losses||
|The current period does not affect the deferred tax assets||
||825,649.34|
|recognized deductible temporary differences or deductible loss||
|Income tax expenses|36,775,399.29|

75. Other Comprehensive income
Please find the statement in the notes of consolidated balance sheet.
76. Notes Cash flow statement
(1) Other cash received from business operation
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Deposit interest(Notes)|12,657,033.86|6,343,865.32|
|Government subsidies received|8,849,942.78|2,161,611.71|
|Recovery of operating bank deposits|3,376,150.00||
|Compensation income|63,697.10|11,483,287.56|
|Receipt of operating current account|900,072.19|1,000.00|
|Other|280,235.91|1,823,428.44|
|Total|26,127,131.84|21,813,193.03|

Notes：
2. Other cash paid for Operating activities
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Transportation|1,852,243.48|2,761,048.87|

||||
|-|-|-|
|Travel expenses|||
||16,200,400.44|13,727,883.04|
|Business trips|4,675,551.83|8,947,264.01|
|Maintaining|932,917.88|991,158.80|
|Property management and civil services|14,459,646.16|6,043,553.85|
|Deposit for bidding and others|7,002,407.01|4,967,366.64|
|Office expenses|1,125,869.55|2,365,249.57|
|Conferences|1,012,286.97|1,286,844.32|
|Consulting service fee|4,134,383.92|9,460,726.55|
|Transportation and vehicles|1,800,422.55|2,693,178.46|
|Other|48,915,743.06|30,132,445.17|
|Total|102,111,872.85|83,376,719.28|

 3.Other investment-related cash received
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Repurchasing of trusteeship|1,736,229,711.39|2,054,176,329.00|
|Receipt of levy and relocation|||
||314,548,452.89||
|compensation|||
|Total|2,050,778,164.28|2,054,176,329.00|

 4. Other cash paid for investment activities
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Purchasing of financial|||
||1,157,904,000.00|2,477,114,000.00|
|products|||
|Total|1,157,904,000.00|2,477,114,000.00|

 5. Other financing-related cash received
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Total|0.00|0.00|

(6) Other cash paid relevant to financing activities
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Payment of CDB investment interest|2,530,666.67|2,530,666.67|
|Total|2,530,666.67|2,530,666.67|

 77. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
||||
|-|-|-|
|Supplementary Info.|Amount of this period|Amount of last period|
|I. Adjusting net profit to cash flow from operating activities|||
||--|--|
|Net profit|184,666,913.74|160,370,149.54|
|Add: Impairment loss provision of assets|-6,423,806.70|43,111,352.82|
|Depreciation of fixed assets, oil and gas assets and consumable|||
||30,399,548.46|34,665,195.13|
|biological assets|||
|Amortization of intangible assets|3,642,170.34|3,549,845.84|
|Amortization of Long-term deferred expenses||126,943.44|
|Loss on disposal of fixed assets, intangible assets and other|||
||1,183.02||
|long-term deferred assets|||
|Loss on scrap of fixed assets|497,573.36|3,031.08|
|Loss to changes in fair value|||
||1,474,755.34||
|Financial cost|8,467,221.60|5,171,128.67|
|Loss on investment|-99,460,322.66|-37,144,607.44|
|Decrease of deferred income tax assets|-825,829.94|4,216,068.43|
|Increased of deferred income tax liabilities|37,957,275.53||
|Decrease of inventories|-28,264,852.32|36,950,352.31|
|Decease of operating receivables|-127,219,533.71|-206,949,145.32|
|Increased of operating Payable|-12,688,968.55|514,803,440.92|
|Other|||
||-1,563,923.88|-1,086,564.69|
|Net cash flows arising from operating activities|-9,340,596.37|557,787,190.73|

||||
|-|-|-|
|II. Significant investment and financing activities that without cash|||
||--|--|
|flows:|||
|III. Net changes in cash and cash equivalents:|--|--|
|Cash at end of year|1,686,405,098.11|1,155,254,587.46|
|Less: cash equivalents at beginning of year|||
||1,262,186,817.20|1,137,492,834.83|
|Net increase of cash and cash equivalents|424,218,280.91|17,761,752.63|

 (2) Net Cash paid of obtaining the subsidiary
Nil
(3) Net Cash receive of disposal of the subsidiary
Nil
(4) Component of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|I. Cash|1,686,405,098.11|1,262,186,817.20|
|Of which: Cash in stock|||
||132,336.73|128,198.82|
|Bank savings could be used at any time|1,686,272,261.33|1,262,057,605.97|
||500.05|1,012.41|
|Other unrestricted monetary funds|||
|III. Closing balance of cash and cash equivalents|1,686,405,098.11|1,262,186,817.20|

 78. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc. 79. Assets with limitation on ownership or using rights
In RMB
||||
|-|-|-|
|Items|Closing book value|Causation o limitation|
|||Used as security for issuing of|
|Monetary capital|133,453,924.80|acceptance drafts and bill of|
|||guarantees|
|||Used as security for issuing of|
|Note receivable|62,824,000.00||
|||acceptance drafts|

||||
|-|-|-|
|||Collateral for obtaining bank loans and|
|Fixed assets|||
||118,662,101.07||
|||investment funds from CDB|
|||Collateral for obtaining bank loans and|
|Intangible assets|||
||84,981,463.59||
|||investment funds from CDB|
|Construction in process||Used for mortgage to obtain bank loan and|
||420,170,711.42||
|||guarantee investment fund for CDB|
|||Used for mortgage to obtain bank loan and|
|Dividend receivable|27,827,292.60||
|||guarantee investment fund for CDB|
|||Used for mortgage to obtain bank loan and|
|Other Equipment instrument Investment|375,516,399.00||
|||guarantee investment fund for CDB|
|Total|1,223,435,892.48|--|

Othernotes：
80. Monetary items in foreign currencies
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||||Translated to RMB at end of|
|Items|Balance at end of period|Exchange rate||
||||period|
|Monetary capital|--|--|164,396,901.76|
|Incl：USD|23,148,814.88|6.8742|159,129,583.25|
|Euro|9,828.56|7.8170|76,829.86|
|HKD|0.00||0.00|
|Yen|30,055.00|0.063816|1,917.99|
|Rupiah|10,992,734,449.92|0.000472|5,188,570.66|
|Rupiah||||
|Account receivable|--|--|224,759,835.13|
|Incl：USD|31,461,943.71|6.8742|216,275,693.45|
|Euro|551,673.43|7.8170|4,312,431.20|
|HKD||||
|Rupiah|8,324,656,609.57|0.000472|3,929,237.92|
|Rupiah||||
|SGD|47,726.12|5.0805|242,472.56|
|Long-term borrowing|--|--||
|Incl：USD||||

|||||
|-|-|-|-|
|Euro||||
|HKD||||
|Account payable|||10,413,054.69|
|Incl：USD|951,442.96|6.8742|6,540,409.20|
|Euro|381,143.86|7.8170|2,979,401.55|
|Rupiah|1,892,465,980.00|0.000472|893,243.94|
|Rupiah||||
|Other receivable|||3,437,100.00|
|Incl：USD|500,000.00|6.8742|3,437,100.00|

 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.
Not applicable
81. Hedging
Hedging According to Hedging category to disclose arbitrage item, relevant Hedging tools and the Hedging risk qualitative and quantitative information:
82. Government subsidy
1) Government subsidies related to assets
In RMB
|||||
|-|-|-|-|
||||Amount included in current|
|Items|Amount|Project||
||||profit and loss|
|Social security fee refund|8,859,468.01|Other income|8,859,468.01|
|Relocation compensation -relocation costs||||
||3,164,807.98|Other income|3,164,807.98|
|Incentive for scientific andtechnological innovation||||
||1,000,000.00|Other income|1,000,000.00|
|Forging project financialresources||||
||997,380.00|Other income|997,380.00|
|Provincial industrial||||
|transformation and upgrading|160,000.00|Other income|160,000.00|
|financial support||||
|Economic work reward|126,500.00|Other income|126,500.00|
|Refund for land use tax|49,703.56|Other income|49,703.56|
|Social insurance subsidy for|9,513.34|Other income|9,513.34|

|||||
|-|-|-|-|
|post stabilization and||||
|employment||||
|Other incidental government||||
||103,430.00|Other income|103,430.00|
|subsidies||||
|Total||||
||14,470,802.89||14,470,802.89|

（2）Government subsidy return
□ Applicable√ Not applicable
83.Other：Nil
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Nil
(2) Merger of enterprises under the same control
Nil
3. Counter purchase
Nil
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes√No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
□ Yes√ No
5. Other reasons for the changes in combination scope
Nil
6. Other :Nil
IX. Equities in Other Entities
(I) Equity in major subsidiaries
(1) The structure of the enterprise group
||||||||
|-|-|-|-|-|-|-|
||Main|||Share proportion %|||
|Name of the|||Business||||
||business|Reg. Add.||||Way of obtain|
|subsidiaries|||property|Direct|Indirect||
||location||||||
|Zhejiang Steam|||||||
|Trubine Packaged|||||||
||Hangzhou|Hangzhou||||Incorporatio|
|Technologies|||Commerce|70.86%|||
||Zhejiang|Zhejiang||||n|
|Development Co.,|||||||
|Ltd.|||||||
|Hangzhou|||||||
|Zhongneng Steam|||||||
||Hangzhou|Hangzhou|Manufacturin||||
|Turbine Power||||60.83%||Incorporation|
||Zhejiang|Zhejiang|g||||
|Co., Ltd.|||||||
|Zhongneng Co.)|||||||
|Hangzhou Steam|||||||
||Hangzhou|Hangzhou||||Incorporatio|
|Turbine Casting|||Manufacturing|38.03%|||
||Zhejiang|Zhejiang||||n|
|Co., Ltd.|||||||
|Hangzhou Steam|||||||
|Turbine|||||||
||Hangzhou|Hangzhou|Manufacturin||||
|Machinery||||52.00%||Incorporation|
||Zhejiang|Zhejiang|g||||
|Equipment Co.,|||||||
|Ltd.|||||||
|Hangzhou Steam|||||||
|Turbine|||||||
|Auxiliary|Hangzhou|Hangzhou||||Incorporatio|
||||Manufacturing|87.53%|||
|Machinery Co.,|Zhejiang|Zhejiang||||n|
|Ltd. (Auxiliary|||||||
|Machinery Co.)|||||||

|||||||
|-|-|-|-|-|-|
|Zhejiang Turbine||||||
||Hangzhou|Hangzhou|||Incorporatio|
|Import & Export Co.,|||Commerce|100.00%||
||Zhejiang|Zhejiang|||n|
|Ltd. (Turbine Co.)||||||
|Hangzhou Steam||||||
|Turbine Heavy Industry||||||
||Hangzhou|Hangzhou|Manufacturing|100.00%|Incorporation|
||Zhejiang|Zhejiang||||
|Co., Ltd.||||||

(2) Basis for holding50% or less than50% of the voting power but still controlling the invested organizations In December 2018, the subsidiary Casting Company introduced external strategic investors, leading to a decrease in the shareholding ratio of the Company from51% to38.03%. Since the Company still held more than 1/3 of shares and took four seats in the board of seven directors, it still had power of control over the Casting&amp; Forging Company.
2.Major non-fully-Owned subsidiaries
In RMB
||||||
|-|-|-|-|-|
|||Gains/loss of the period||Balance of equity of|
|Name of the|Share portion of minor||Dividend announced in the||
|||attributable to minor||minor shareholders at|
|subsidiaries|shareholders||period to minor shareholders||
|||shareholders||end of period|
|Zhejiang Steam|||||
|Trubine|||||
|Packaged|||||
||29.14%|4,304,870.88|2,972,790.00|27,302,058.72|
|Technologies|||||
|Development|||||
|Co., Ltd.|||||
|Hangzhou|||||
|Zhongneng Steam|||||
||39.17%|7,733,747.67|21,786,000.00|136,358,773.38|
|turbine Power Co.,|||||
|Ltd.|||||
|Hangzhou Steam|61.97%|-3,050,916.73||148,321,569.19|

||||||
|-|-|-|-|-|
|Turbine Casting Co.,|||||
|Ltd.|||||
|Hangzhou Steam|||||
|Turbine Machinery|48.00%|15,340,505.79|21,600,000.00|67,661,649.67|
|Equipment Co., Ltd.|||||
|Hangzhou Steam|||||
|Turbine Auxiliary|12.47%|791,423.70||26,150,764.23|
|Machinery Co., Ltd.|||||

3. Material financial information of major non-fully-owned subsidiaries
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||End of term||||||Beginning of term||||||
|Subsidiaries|||||||||||||
|||Non-current||Current|Non-current|Total of||Non-current||Current|Non-current|Total of|
|Name|Current assets||Total of assets||||Current assets||Total of assets||||
|||assets||liabilities|liabilities|liability||assets||liabilities|liabilities|liability|
|Zhejiang|||||||||||||
|Steam|||||||||||||
|Trubine|||||||||||||
||||285,022,490.1|||191,345,843.2|248,134,781.8||272,775,507.8|183,669,390||183,669,390.7|
|Packaged|260,418,141.15|24,604,348.96||191,345,843.28|0.00|||24,640,726.05|||0.00||
||||1|||8|3||8|.74||4|
|Technologies|||||||||||||
|Development|||||||||||||
|Co., Ltd.|||||||||||||
|Hangzhou|||||||||||||
|Zhongneng Steam|||||||||||||
||||1,141,670,374|||818,409,077.1|1,105,955,992||1,177,919,594|819,218,843||819,548,843.0|
||1,071,372,607.22|70,297,767.42||818,079,077.13|330,000.00|||71,963,602.76|||330,000.00||
|turbine PowerCo.,|||.64|||3|.17||.93|.06||6|
|Ltd.|||||||||||||
|Hangzhou Steam|||||||||||||
|||165,407,628.4|517,297,871.1|||277,938,658.3|441,396,913.8|172,078,042.9|613,474,956.7|343,698,819||369,022,224.5|
|Turbine Casting|351,890,242.72|||253,941,603.34|23,997,055.00||||||25,323,405.00||
|||6|8|||4|2|1|3|.51||1|
|Co., Ltd.|||||||||||||
|Hangzhou Steam|||||||||||||
|Turbine|||||||||||||
||||279,213,048.5|||138,251,278.4|232,419,338.5||253,677,936.6|98,910,290.|||
|Machinery|257,731,414.27|21,481,634.32||136,703,360.04|1,547,918.40|||21,258,598.11|||765,263.03|99,675,553.57|
||||9|||4|4||5|54|||
|Equipment Co.,|||||||||||||
|Ltd.|||||||||||||
|Hangzhou Steam|659,262,621.68|107,914,924.1|767,177,545.8|557,361,199.37|106,930.00|557,468,129.3|642,467,713.4|110,484,194.2|752,951,907.6|549,240,066|106,930.00|549,346,996.2|

||||||||||
|-|-|-|-|-|-|-|-|-|
|Turbine Auxiliary|6|4|7|1|8|9|.20|0|
|Machinery Co.,|||||||||
|Ltd.|||||||||

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of current period||||Amount of previous period||||
|Subsidiaries|||||||||
|Name||||Cash flow for business||||Cash flow for business|
||Turnover|Net profit|Total Misc Gains||Turnover|Net profit|Total Misc Gains||
|||||activities||||activities|
|Zhejiang|||||||||
|Steam|||||||||
|Trubine|||||||||
|Packaged|||||||||
||132,931,775.76|14,770,529.69|14,770,529.69|16,677,677.17|103,740,083.15|8,964,799.55|8,964,799.55|-3,782,165.04|
|Technologie|||||||||
|s|||||||||
|Development|||||||||
|Co., Ltd.|||||||||
|Hangzhou|||||||||
|Zhongneng|||||||||
||434,209,306.91|17,020,437.04|17,565,955.46|25,182,061.76|404,080,803.34|13,107,189.41|13,026,863.20|81,799,842.65|
|Steam turbine|||||||||
|Power Co., Ltd.|||||||||
|Hangzhou|||||||||
|Steam Turbine|||||||||
||201,953,546.36|-4,923,525.49|-4,923,525.49|-4,923,310.09|217,307,955.01|11,884,986.18|11,884,986.18|-36,112,238.38|
|Casting Co.,|||||||||
|Ltd.|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Hangzhou|||||||||
|Steam Turbine|||||||||
|Machinery|134,372,561.91|31,959,387.07|31,959,387.07|34,542,152.34|120,928,873.57|25,913,896.24|25,913,896.24|13,513,334.06|
|Equipment Co.,|||||||||
|Ltd.|||||||||
|Hangzhou|||||||||
|Steam Turbine|||||||||
|Auxiliary|238,328,136.56|6,346,621.51|6,346,621.51|1,340,271.89|225,615,296.83|5,792.82|5,792.82|33,715,715.56|
|Machinery Co.,|||||||||
|Ltd.|||||||||

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Nil
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated financial statements
Nil
2. The transaction of the Company with itsowner’s equity share changed but still controlling the subsidiary Nil
3. Equity in joint venture arrangement or associated enterprise
Nil
4. Significant common operation
Nil
5. Equity of structure entity not including in the scope of consolidated financial statements
Nil
6.Other:Nil
X. Risks related to financial instruments
The objective of theCompany’s risk management is to achieve a balance between the risk and gains. Constrain the negative influence on business operation to the lowest limit, and maximum the interests of shareholders and other equity holders. With regard to this target, the basic policies of the Company are; locate and analyse the risks, set appropriate bottom line for risks, and manage and monitor on each risk and constrain them in a certain extent. Risks attached to financial instruments are mainly credit risks, liquidity risks, and market risks.
The following risk managing policies have been examined and approved by the management:
(I) Credit risks
Credit risks are introduced when one party of the financial instrument failed to exercise its liabilities and then caused financial loss to another.
The credit risks of the Company are mainly composed by bank savings and receivable accounts. Following measurements are adopted to control these risks:
1. Bank deposit
The Company puts its bank savings in financial institutions with higher credit ranks, therefore with lower risks. 2. Account receivable
The Company performs credit assessment on the clients on periodic and constant basis. Results suggested by the assessment are used by the Company to determine clients with higher ranks and to overlook the rest. This was conducted to avoid risks brought by material bad debts.
As the Company only does business with recognized and reputable third parties, so no collateral is needed. Credit risks are centralized managed in accordance with customers. As of June 30, 2019, the Company has a characteristic of specific credit risk concentration.38.08% (June 30, 2018:36.50%) of the Company's accounts receivable comes from the top five customers. The Company does not hold any collateral or other credit enhancement for the balance of accounts receivable.
(1) Analyzing of receivable accounts neither due nor impaired, and those have due but not impaired:
|||||||
|-|-|-|-|-|-|
|Items|End of term|||||
||Not overdue and notimpaired|Overdue but not impaired|||Total|
|||Within 1 year|1-2 years|Over 2 years||
|Note receivable|480,606,384.84||||480,606,384.84|
|Subtotal|480,606,384.84||||480,606,384.84|
|Items|Beginning of term|||||
||Not overdue and notimpaired|Overdue but not impaired|||Total|
|||Within 1 year|1-2 years|Over 2 years||
|Note receivable|595,089,175.22||||595,089,175.22|
|Subtotal|595,089,175.22||||595,089,175.22|

(2) Refer to Notes of the Financial Statements in conjunction with notes of the consolidated financial statements-accounts receivable for individual accounts receivable with provision for impairment.
(II) Liquidation risks
Liquidation risks are the possibilities of short in cash at fulfilling liabilities of payment or settlement for financial assets. They may be caused by failing to cash financial assets at fair value instantly;debtors’ failing of paying debts due; debts due before schedule; or failing of generating expected cash flow.
To handle these risks, the Company adopted multiple measures such as note clearance and bank loans. Long-term and short-term financing approaches were used to maintain balance between constancy and flexibility. The Company has obtained credit from multiple banks to satisfy the needs of business operation and capital output.
(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.
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.
XI Fair value disclosure
(I)Closing balance of assets and liabilities measured at fair value
In RMB
||||||
|-|-|-|-|-|
||Closing fair value||||
|Items|||||
||Level 1|Level 2|Level 3|Total|
|I. Consistent fair value measurement|--|--|--|--|
|(I) Trading financial assets|2,281,853.06|16,000,000.00|692,369,030.80|710,650,883.86|
|1. Financial assets at fair value through|||||
||2,281,853.06|16,000,000.00|692,369,030.80|710,650,883.86|
|profit or loss|||||
|（1）Debt instrument investment|||578,769,000.00|578,769,000.00|
|（2）Equity instrument investment|2,281,853.06|16,000,000.00|113,600,030.80|131,881,883.86|
|（3）Derivative financial assets||||0.00|
|1. Designated Financial assets at fair|||||
||0.00|0.00|0.00|0.00|
|value through profit or loss|||||
|（1）Debt instrument investment||||0.00|
|（2）Equity instrument investment||||0.00|
|2.Other creditor's right investment||||0.00|
|3.Other equipment instrument investment|2,264,720,465.98|||2,264,720,465.98|
|4.Investment Real estate||||0.00|
|1. The right to use the leased land||||0.00|
|2. Leased buildings||||0.00|
|3. Land use rights held and prepared for|||||
|||||0.00|
|transfer after appreciation|||||
|5. Biological assets||||0.00|
|1. Consumable biological assets||||0.00|
|2. Productive biological assets||||0.00|

||||||
|-|-|-|-|-|
|Total assets of inconsistent fair value|||||
||2,267,002,319.04|16,000,000.00|692,369,030.80|2,975,371,349.84|
|measurement|||||
|II.Total liabilities of inconsistent fair|||||
||--|--|--|--|
|value measurement|||||

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The shares held by the Company, Hangzhou Bank Co., Ltd and Sichuan Lutianhua Co., Ltd have active market quotations, thus those are measured at the first level fair value.
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and inconsistent fair value measurement items at level 2
The fair value of the Juyuan Xinxing 9 Private Equity Fund held by the Company, as the quotation of same or similar assets or liabilities can be obtained in the active or inactive market, is determined on the basis of the quoted price and in accordance with the valuation method agreed in the subscription contract.
4. Valuation technique adopted and nature and amount determination of important parameters for consistent and inconsistent fair value measurement items at level 3
As the quotations cannot be obtained in the similar active market, the equity and debt-type financial assets held by the Company other than the above, including wealth management products, are measured at the third-level fair value.
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9. Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
|||||||
|-|-|-|-|-|-|
|Name of the parent|Registered place|Business nature|Registered capital|Shareholding ratio in|Voting ratio in the Company|

|||||||
|-|-|-|-|-|-|
|company||||the Company (%)|(%)|
|Hangzhou Steam|Hangzhou|Manufacturin||||
||||800 million yuan|63.64%|63.64%|
|Turbine Group|China|g||||

Hangzhou Municipal Government State-owned Asset Supervisory Committee is the ultimate controller of the Company.
2.Subsidiaries of the enterprise
For details of subsidiaries please go to the statement of equities in other entities.
3. Situation of joint ventures and associated enterprises
Nil
4. 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 Steam turbine Industry Trade Co., Ltd.|Affiliate of the Group|
|Hangzhou Hangfa Power Generating Equipment Co., Ltd.|Affiliate of the Group|
|Hangzhou Nanhua Wooden Packaging Co., Ltd.|Affiliate of the Group|
|Hangzhou Steam Turbine Engineering Co., Ltd.|Affiliate of the Group|
|Hangzhou Steam Turbine Power Group Equipment Co., Ltd.|Affiliate of the Group|
|Hangzhou Steam Turbine Compressor Co., Ltd.|Affiliate of the Group|
|China Electrical and Mechanical Institute-Hangzhou Turbine Group||
||Affiliate of the Group|
|(Hangzhou) United Research Institute Co., Ltd.||
||hareholding enterprise|
|Shanghai Relian Group Co., Ltd. S||
|Greenesol power systems PVT Ltd.|Shareholding enterprise|
|Hangzhou Bank|Shareholding enterprise|

5.Related transaction
(1) Sale of goods/rendering of labor services/labor service offering
Purchase of goods and service
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount of current|Amount of previous|Over the||
||Content of related||||Amount of lastperiod|
|Related parties||||trading limit||
||transaction|period|period|||
|||||or not?||
|Hangzhou Nanhua Wooden Packaging||||||
||Packaging|7,475,985.95|18,060,000.00|N o|6,153,165.35|
|Co., Ltd.||||||
|China Electrical and Mechanical|Raw material|171,982.76|2,000,000.00|N o|998,507.96|

|||||||
|-|-|-|-|-|-|
|Institute-Hangzhou Turbine Group||||||
|(Hangzhou) United Research Institute||||||
|Co., Ltd.||||||
|Hangzhou Hangfa Generating||||||
||Generators|80,979,594.17|176,724,137.93|N o|66,654,877.76|
|Equipment Co., Ltd.||||||
|Hangzhou Steam Turbine Engineering|Raw material and|||||
|||861,320.75|3,900,000.00|N o|427,350.43|
|Co., Ltd.|technical service|||||
|Hangzhou Steam turbine Automobile|Transportation ,|||||
|||30,443,515.87|45,560,000.00|N o|20,047,920.03|
|sales service Co., Ltd.|repair , etc.|||||
|||119,932,399.50|246,244,137.93||94,281,821.53|

 Related transactions regarding sales of goods or providing of services
In RMB
|||||
|-|-|-|-|
||Subjects of the|||
|Related parties|related|Current term|Same period of last term|
||transactions|||
||Steam Turbine,|||
|Hangzhou Steam Turbine Engineering||||
||Compressor,|3,209,482.76|45,627,247.27|
|Co., Ltd.||||
||Installation service|||
|Hangzhou Hangfa Generating|Cast parts|||
|||3,902,039.33|7,495,811.84|
|Equipment Co., Ltd.||||
|Greenesol power systems PVT Ltd.|Part|315,180.53|521,141.46|
|Hangzhou Steam Turbine Automobile Sales||||
||Small amount materials|117.49|302.06|
|Service Co., Ltd.||||
|Hangzhou Steam Turbine Power Group Co., Ltd.|Small amount materials|1,019.70|0.00|
|Subtotal||7,427,839.81|53,644,502.63|

 (2) Related trusteeship/contract
Nil
(3) Information of related lease
- The company waslessee：
In RMB
|||||
|-|-|-|-|
||Category of leased|The lease income||
|Lessor|||Category of leased assets|
||assets|confirmed in this year||
|HSTG|House and Building|||
|||1,693,306.96|737,888.21|
|Hangzhou Steam Turbine Automobile Sales||||
||Site leasing|||
|||1,032,514.68|1,197,365.43|
|Service Co., Ltd.||||

||||
|-|-|-|
|Subtotal|2,725,821.64|1,935,253.64|

（4）Related-party guarantee
The Company was guarantor
In RMB
||||||
|-|-|-|-|-|
|Guarantor|Guarantee amount|Start date|End date|Execution accomplished or not|
|HSTG|208,000,000.00|December 28,2016|December 22,2026|No|

The Company was secured party
In RMB
||||||
|-|-|-|-|-|
|Guarantor|Guarantee amount|Start date|End date|Execution accomplished or not|
|HSTG|100,000,000.00|November 30,2017|November 30,2019|No|

Notes：
In accordance with the National Development Fund Investment Contract, jointly signed by the Company, NDF, Turbine Industry Company and Hangzhou Steam Turbine Group, the investment of the NDF on Turbine Industry Company, RMB 208,000,000.00, is repurchased by the Hangzhou Steam Turbine Group, and the NDF asks the Company and Hangzhou Steam Turbine Group to provide guarantee for the fulfillment of Hangzhou Steam Turbine Group of the transferee equity obligations. The Company and Steam Turbine Company pledge to the NDF with a total of 45.08 million shares of Hangzhou Bank Co., Ltd. with book value of RMB 375,516,399.00,Dividend Receivable of RMB27,827,292.60, Steam Turbine heavy Industry Co., Ltd. mortgaged the book value of65,987,061.22 yuan of land use rights and book value of 40,753,085.36 yuan of fixed assets and book value of 420,170,711.42 yuan of construction in progress to the National Development Fund.
(5) Inter-bank lending of capital of related parties
Nil
（6）Related party asset transfer and debt restructuring
In RMB
|||||
|-|-|-|-|
||||Same period of last|
|Related party|Content|||
|||Current term||
||||term|
|Hangzhou Steam Turbine Automobile Sales Service||||
||Purchase fixed assets|131,110.93|0.00|
|Co., Ltd.||||

（7）
Remunerations of key managements
In RMB
||||
|-|-|-|
|Items|Current term|Same period of last term|
|Remunerations of key managements|4,302,268.00|3,834,075.47|

(8) Other related transactions
(1) Service and power supply
HSTG supplies water and power to the Company and some of the subsidiaries amounted to RMB 6762513.50 this period.
HSTG. provides property management services for its subsidiary which is Complete Technology Corporation, of which the fee of this period incurred in the property management is RMB 26050.60.
Hangzhou Steam Turbine Automobile Sales& Service Co., Ltd. provided transportation to theCompany’s employees and RMB 1050286.00 was paid this period. (3) Expenses paid on behalf the Company
1) During the current period, Hangzhou Steam Turbine Group advanced the payment of RMB 467520.08 salaries for the company. Advanced for paying the fees of 671,627.72 yuan for newspapers and periodicals.
(3) Bank credit and entrusted wealth-management
1) The Company applied for a line of credit of RMB 300 million to Shiqiao Sub-branch, Bank of Hangzhou Co., Ltd. and till June 30,2019, the balance of loan under the line of credit was still RMB 0.
2) The Company entered into a financial management agent contract with Bank of Hangzhou Co., Ltd. in the cumulative amount of financial management of RMB 318,000,000.00 and till June 30.ber 31, 2019, the balance of the financial management was RMB268,000,000.00.
6. Receivables and payables of related parties
（1）Receivables
In RMB
|||||||
|-|-|-|-|-|-|
|||End of term||Beginning of term||
|Name|Related party|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
|Note|Hangzhou Steam Turbine Engineering|||||
|||6,100,000.00||1,033,180.00||
|receivable|Co., Ltd.|||||
||Hangzhou Hangfa Generating|||||
|||13,760,000.00||4,000,000.00||
||Equipment Co., Ltd.|||||
|Subtotal||19,860,000.00||5,033,180.00||
|Account|Hangzhou Steam Turbine Engineering|||||
|||51,242,293.87|23,846,464.78|56,048,293.87|23,796,436.58|
|receivable|Co., Ltd.|||||
||Hangzhou Hangfa Generating|||||
|||19,014,343.57|1,475,673.32|18,739,908.99|1,269,459.57|
||Equipment Co., Ltd.|||||
||Greenesol power systems PVT Ltd.|||14,522,075.90|14,522,075.90|
||Hangzhou Steam Turbine Power|||||
|||158,500.00|158,500.00|158,500.00|158,500.00|
||Group Co., Ltd.|||||
||Hangzhou Steam Turbine Compressor|59,000.00|35,400.00|59,000.00|35,400.00|

|||||||
|-|-|-|-|-|-|
||Co., Ltd’|||||
||Hangzhou Steam Turbine Power|||||
||Group Complete Equipment|||||
||Engineering Co., Ltd.|||||
||Hangzhou Steam Turbine Automobile|||||
|||134.42|6.72|||
||Sales Service Co., Ltd|||||
|Subtotal||70,474,271.86|25,516,044.82|89,527,778.76|39,781,872.05|
||Hangzhou Hangfa Generating|||||
|Prepayment||41,416,785.00||51,691,853.97||
||Equipment Co., Ltd.|||||
||Hangzhou Steam Turbine Engineering|||||
|||7,715,000.00||5,820,000.00||
||Co., Ltd.|||||
||Zhejiang Zhongrun Gas turbine|||||
|||||792,022.20||
||technology Co., Ltd.|||||
|Subtotal||49,131,785.00||58,303,876.17||
|Other account|Hangzhou Steam Turbine Compressor|||||
|||300,000.00|30,000.00|300,000.00|30,000.00|
|receivable|Co., Ltd.|||||
||Hangzhou Steam Turbine Group|||39,105.34|3,910.53|
|Subtotal||300,000.00|30,000.00|339,105.34|33,910.53|

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Related party|Amount at year|Amount at year beginning|
||Hangzhou Hangfa Generating Equipment|||
|Note payable|||11,500,000.00|
||Co., Ltd.|||
||Hangzhou Steam Turbine Automobile Sales|||
|||1,680,000.00|1,650,000.00|
||Service Co., Ltd|||
||Hangzhou Nanhua Wooden Packaging Co.,|||
|||450,000.00|1,660,000.00|
||Ltd.|||
||Hangzhou Steam Turbine Engineering Co.,|||
||Ltd.|||
|Subtotal||2,130,000.00|14,810,000.00|
||Hangzhou Hangfa Generating Equipment|||
|Account payable||170,999,628.32|116,462,941.48|
||Co., Ltd.|||
||Hangzhou Steam Turbine Automobile Sales|||
|||13,943,743.22|11,934,956.54|
||Service Co., Ltd|||

|||||
|-|-|-|-|
||Greenesol power systems PVT Ltd.|1,978,927.49|3,381,200.50|
||Hangzhou Steam Turbine Engineering Co.,|||
|||3,562,056.60|2,040,000.00|
||Ltd.|||
||Hangzhou Nanhua Wooden Packaging Co.,|||
|||1,313,835.14|1,851,121.07|
||Ltd.|||
||HSTG|7,237,557.51|1,652,987.82|
||China Electrical and Mechanical|||
||Institute-Hangzhou Turbine Group|||
||||427,500.00|
||(Hangzhou) United Research Institute Co.,|||
||Ltd.|||
||Hangzhou Steam Turbine Industries & Trade|||
|||814,507.79|476,525.45|
||Co., Ltd.|||
||Zhejiang Zongrun Gas turbine technology|||
|||158,607.00||
||Co., Ltd.|||
|Subtotal||200,008,863.07|138,227,232.86|
|Advances|Hangzhou Steam Turbine Compressor Co.,|||
|||14,190,000.00|14,190,000.00|
|received|Ltd.|||
||Hangzhou Steam Turbine Engineering Co.,|||
|||15,877,300.00|10,543,300.00|
||Ltd.|||
||Greenesol power systems PVT Ltd.|432,983.80|103,764.63|
|Subtotal||30,500,283.80|24,837,064.63|
|Other account|Hangzhou Steam Turbine Automobile Sales|||
|||100,000.00|100,000.00|
|payable|Service Co., Ltd|||
||HSTG|958,640.46|87,736.60|
|Subtotal||1,058,640.46|187,736.60|

 7. Related party commitment
XIII. Stock payment
1. The Stock payment overall situation
Not applicable
2. The Stock payment settled by equity
Not applicable
3. The Stock payment settled by cash
Not applicable
4. Modification and termination of the stock payment
Not applicable
5.Other
XIV. Commitments
1.Significant commitments
Nil
2. Contingency
The Company have no significant contingency to disclose, also should be stated
3.Other: Nil
XV. Events after balance sheet date
Nil
XVI. Other significant events
1. The accounting errors correction in previous period
Nil
2. Debt restructuring
Nil
3. Replacement of assets
Nil
4. Pension plan
Nil
5. Discontinuing operation
Nil
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
Nil
(2) The financial information of reportable segment
Nil
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable segment, shall disclose the reason.
The Company is single in its business, which is mainly for production and sales of steam turbines, gas turbines and auxiliary turbines. Thecompany’s management regard these businesses as a whole to implement management so as to evaluate the business performance, thus there will be no report divisions. According to the product classifications of main business income and main business cost, the Company will make details for them as follows:
||||
|-|-|-|
|Items|Main Business Income|Main Business Cost|
|Industrial Steam Turbine|1,465,469,922.92|1,047,420,373.19|
|Castings and Forging|84,257,416.72|66,391,765.42|
|Auxiliary Engines|78,122,117.16|67,840,098.87|
|Complete set of waste heat power|||
||49,244,940.88|47,384,746.06|
|station|||
|Part|135,179,927.39|70,470,421.94|

||||
|-|-|-|
|Other|107,907,377.96|66,896,995.78|
|Subtotal|1,920,181,703.03|1,366,404,401.26|

 (4) Other notes
7. Other important transactions and events have an impact oninvestors’ decision-making
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||End of term|||||Beginning of term|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||||||||
|||Proportion||Proportion|Book value||Proportion||Proportion|Book value|
||Amount||Amount|||Amount||Amount|||
|||%||%|||%||%||
|Accrual of bad debt|||||||||||
|provision by single|29,819,607.69|1.26%|29,819,607.69|100.00%||29,819,607.69|1.34%|29,819,607.69|100.00%||
|item|||||||||||
|Including|||||||||||
|Accrual of bad debt|||||||||||
|provision by|2,331,855,629.80|98.74%|813,075,866.69|34.87%|1,518,779,763.11|2,189,901,288.35|98.66%|815,273,077.90|37.23%|1,374,628,210.45|
|portfolio|||||||||||
|Including：|||||||||||
|Total|2,361,675,237.49|100.00%|842,895,474.38|35.69%|1,518,779,763.11|2,219,720,896.04|100.00%|845,092,685.59|38.07%|1,374,628,210.45|

 Accrual of bad debt provision by single item: 29,819,607.69
In RMB
||||||
|-|-|-|-|-|
||End of term||||
|Name|||||
||Book balance|Bad debt provision|Proportion|Reason|
|Accounts receivable of individually|29,819,607.69|29,819,607.69|100.00%||

||||||
|-|-|-|-|-|
|withdrawing bad debt provision with|||||
|non-significant individual amount|||||
|Total|29,819,607.69|29,819,607.69|--|--|

Accrual of bad debt provision by portfolio:
In RMB
|||||
|-|-|-|-|
||End of term|||
|Name||||
||Book balance|Bad debt provision|Proportion|
|Account receivables provided bad||||
||2,331,855,629.80|813,075,866.69|34.87%|
|debt provision in credit risk groups||||

Relevant information of the provision for bad debts will be disclosed with reference to the
disclosure method of other receivables if the provision for bad debts of bills receivable is accrued
according to the general model of expected credit loss:
□ Applicable√Not applicable
Disclosure by aging
In RMB
|||
|-|-|
|Aging|End of term|
|Within 1 year（Including 1 year）|715,406,019.57|
|1-2 years|416,495,994.31|
|2-3 years|169,671,066.85|
|Over 3 years|96,894,178.79|
|3-4 years|65,330,464.37|
|4-5 years|31,563,714.42|
|Over 5 years|0.00|
|Total|1,398,467,259.52|

The withdrawal amount of the bad debtprovision：
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount of change in the current period||||
|Category|Opening balance||Reversed or||Closing balance|
|||Accrual||Write-off||
||||collected amount|||
|Accrual of bad debt|29,819,607.69||||29,819,607.69|
|provision by single||||||
|item||||||
|Total|815,273,077.90|-2,197,211.21|||813,075,866.69|

 The significant actual write-off accounts receivable:
Of which the significant amount of the reversed or collected part during the reporting period
Nil
(3) The actual write-off accounts receivable
In RMB
|||
|-|-|
|Items|Amount|
|Uncollectible amount|0.00|

|||||||
|-|-|-|-|-|-|
|Total|--|2,392,634.79|--|--|--|

（4）The ending balance of account receivables owed by the imputation of the top five parties
In RMB
|||||
|-|-|-|-|
|Name|Amount|Proportion(%)|Bad debt provision|
|Client 1|635,020,421.93|26.89|282,449,030.97|
|Client 2|240,631,511,27|10.19|163,538,638.03|
|Client 3|112,363,538.46|4.76|7,423,154.66|
|Client 4|66,736,640.63|2.83||
|Client 5|63,427,500.00|2.68|6,342,750.00|
|Subtotal|1,118,179,612.29|47.35|459,753,573.66|

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
2. Other account receivable
In RMB
||||
|-|-|-|
|Nature|End of term|Beginning of term|
|Dividend receivable|84,526,094.10|16,557,292.60|
|Other|4,571,138.46|3,427,467.46|
|Total|89,097,232.56|19,984,760.06|

（1）Interest receivable：Nil
（2）Dividend receivable
（1）Dividend receivable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Hangzhou Bank|84,526,094.10|16,557,292.60|
|Total|84,526,094.10|16,557,292.60|

2) Significant dividend receivable aged over 1 year
In RMB
||||||
|-|-|-|-|-|
|||||Whether occurred|
|Items|Closing balance|Aging|Reason i|mpairment and its|
||||j|udgment basis|
|Hangzhou Bank|9,657,292.60|1-2 years|Equity pledge||
|Hangzhou Bank|6,900,000.00|2-3 years|Equity pledge||
|Total|16,557,292.60|--|--|--|

3）Provision for bad debts
Not applicable
（3） Other accounts receivable
(1) Other accounts receivable classified by the nature of accounts
In RMB
||||
|-|-|-|
|Nature|Closing book balance|Opening book balance|
|Deposit|2,767,375.00|6,547,501.35|
|Provisional payment receivable|6,933,682.74|1,953,877.08|
|Petty cash|360,000.00|0.00|
|Other|108,827.71|325,106.75|
|Total|10,169,885.45|8,826,485.18|

2）Bad-debt provision
In RMB
||||||
|-|-|-|-|-|
||Stage 1|Stage 2|Stage 3||
||Expected credit||Expected credit losses for||
|Bad Debt Reserves||Expected credit loss over||Total|
||losses over the next||the entire duration (credit||
|||life (no credit impairment)|||
||12 months||impairment occurred)||
|Balance as at January 1, 2019|5,399,017.72|||5,399,017.72|
|Balance as at January 1, 2019|||||
||——|——|——|——|
|in current|||||
|Current period accrual|199,729.27|||199,729.27|
|Balance as at June 30,2019|5,598,746.99|||5,598,746.99|

Loss provision changes in current period, change in book balance with significant amount
Not applicable
Disclosure by aging
In RMB
|||
|-|-|
|Aging|Closing balance|
|Within 1 year(Including 1 year）|4,052,404.63|
|1-2 years|175,283.58|
|2-3 years|6,004.00|
|Over 3 years|5,936,193.24|
|3-4 years|979,251.00|
|4-5 years|745,026.90|
|Over 5 years|4,211,915.34|
|Total|10,169,885.45|

 3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debtprovision：
In RMB
||||||
|-|-|-|-|-|
|||Amount of change in the current period|||
|Category|Opening balance||Reversed or collected|Closing balance|
|||Accrual|||
||||amount||
|Other receivables with|||||
|provision for bad debts|||||
||5,399,017.72|199,729.27||5,598,746.99|
|based on credit risk|||||
|characteristics|||||
|Total|5,399,017.72|199,729.27||5,598,746.99|

 4) The actual write-off accounts receivable
(5) Top 5 of the closing balance of Other accounts receivable
In RMB
|||||||
|-|-|-|-|-|-|
||Account|||Percentage in total other||
|Name of the company||Book balance|Age||Bad debt provision|
||property|||receivable %||
||Deposit in|3,710,320.94||36.48%|3,710,320.94|
|Shanghai Customs Waigaoqiao Office|||Over 5 years|||
||custom|||||
|China Electric Power Complete|Deposit in|1,105,395.00||10.87%|55,269.75|
||||1 year|||
|Equipment Co., Ltd.|custom|||||
|Guoxin Bidding Group Co., Ltd.|Deposit in|800,000.00|3 years|7.87%|480,000.00|

|||||||
|-|-|-|-|-|-|
||custom|||||
||Deposit in|800,000.00||7.87%|40,000.00|
|China Petroleum & Chemical||||||
||||1 year|||
|Corporation. Nanjing Bidding Center|custom|||||
||Deposit in|500,000.00||4.92%|400,000.00|
|Jian Group Co., Ltd.|||4years|||
||custom|||||
|Total|--|6,915,715.94|--|68.01%|4,685,590.69|

（6）Account receivable involving government subsidies
Nil
（7）Other account receivable derecognized due to the transfer of financial assets
（8）Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement.
Othernotes：
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|||||||
||860,732,321.62||860,732,321.62|502,919,378.03||502,919,378.03|
|subsidiaries|||||||
|Total|860,732,321.62||860,732,321.62|502,919,378.03||502,919,378.03|

（1） Investments in subsidiaries
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Provided||
||||||current||
||||Curren||||
||||||term|Impairment|
|Company|Beginning of|Increased this|t term||||
|||||End of term|Impairme|provision|
|invested in|term|period|decrea||||
||||||nt|End of term|
||||se||||
||||||provisio||
||||||n||
|Turbine Company|20,000,000.00|||20,000,000.00|||

|||||
|-|-|-|-|
|Hangzhou Heavy||||
||360,000,000.00|357,812,943.59|717,812,943.59|
|Industry||||
|Hangzhou||||
|Auxiliary Machine|46,286,513.41||46,286,513.41|
|Co.||||
|Zhejiang Turbine||||
||29,800,389.56||29,800,389.56|
|Packaged Co.||||
|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|357,812,943.59|860,732,321.62|

（2）Investments in associates and joint ventures
Nil
（3）Other notes
4. Business income and Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|1,195,173,183.58|864,005,383.66|1,483,873,460.09|1,087,042,320.25|
|Other|6,260,548.65|4,687,385.77|6,865,424.39|5,383,386.09|
|Total|1,201,433,732.23|868,692,769.43|1,490,738,884.48|1,092,425,706.34|

 Whether implemented new revenue guidelines?
□ Yes√No
5.Investment income
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Long-term equity investment income by Cost method|61,041,210.00|64,587,205.00|
|Investment income from disposal of Long-term equity investment|||
|Investment gains from holding of sellable|||
||1,320,462.15||
|financial assets|||

||||
|-|-|-|
|Investment income from disposal of available for sale financial|||
||22,218,266.55||
|assets|||
|Dividend income from other equity instrument investments|||
||67,968,801.50||
|during the holding period|||
|Investment income received from holding of held-to-maturity|||
|investments during holding period|||
|Investment income received from holding of available-for –sale|||
|||10,428,418.13|
|financial assets|||
|Investment income arising from disposal of available-for-sale|||
|financial assets|||
|Investment income from the disposal of hold-to-maturity|||
|investments|||
|Investment income from the remaining equity recalculated by fair|||
|value after losing control|||
|Interest income earned by the debt investment during the holding|||
|period|||
|Interest income earned by other debt investments during the|||
|holding period|||
|Investment income from disposal of other debt investments|||
|Investment income of financial products||22,630,167.78|
|Total|152,548,740.20|97,645,790.91|

 6.Other
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Gains/losses from the disposal of non-current asset|-498,756.38||
|Governmental subsidy calculated into current gains and loess（while closely|||
|related with the normal business of the Company, excluding the fixed-amount|||
||15,761,589.03||
|or fixed-proportion governmental subsidy according to the unified national|||
|standard）|||
|Gain/loss from debt reorganization|-526,315.79||

||||
|-|-|-|
|In addition to normal business with the company effective hedging related|||
|business, holders of tradable financial assets, transactions and financial|||
|liabilities arising from changes in fair value gains and losses, as well as the|27,696,303.67||
|disposal of trading of financial assets, trading financial liabilities and|||
|available-for-sale financial assets gains return on investment|||
|Other non-business income and expenditures other than the above|-3,448,280.96||
|Less: Influenced amount of income tax|6,575,512.32||
|Amount of influence of minority interests|3,658,083.93||
|Total|28,750,943.32|--|

 For theCompany’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)
|||||
|-|-|-|-|
||Weighted average ROE|EPS（Yuan/share）||
|Profit as of reporting period||||
||(%)|EPS-basic|EPS-diluted|
|Net profit attributable to common||0.21|0.21|
||2.62%|||
|shareholders of the Company||||
|Net profit attributable to common||||
|shareholders of the Company after||||
||2.15%|0.17|0.17|
|deduction of non-recurring profit||||
|and loss||||

3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
√ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
√ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign institutions
4.Other
Nil
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 23, 2019