Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) StockCode：200771 Stock ID: Hangqilun B Announcement No.2018-31
Hangzhou Steam Turbine Co., Ltd.
The
1st
Quarterly Report 2018
April 2018
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) I. Important Prompt
The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
All of the directors presented the board meeting at which this Quarterly Report was examined.
Chairman Mr. Zheng Bin, Chief Financial Officer Mr.Zhao Jiamao, and the Chief of Accounting Department Mr. Zhao Jiamao hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) II. Basic information about the company
I. Main financial data and indices
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
No
|||||
|-|-|-|-|
||||Changes of this period|
||This period|Same period of last year|over same period of last|
||||year（％）|
|Operating income（Yuan）|962,078,793.39|748,344,237.44|28.56%|
|Net profit attributable to the shareholders of the|39,042,232.50|16,752,601.64||
||||133.05%|
|listed company（Yuan）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of listed|28,469,122.60|-15,980,860.17|278.15%|
|company（Yuan）||||
|Cash flow generated by business operation, net|126,725,248.14|-200,738,208.12||
||||163.13%|
|（Yuan）||||
|Basic earning per share(Yuan/Share)|0.05|0.02|150.00%|
|Diluted gains per share(Yuan/Share)|0.05|0.02|150.00%|
|Weighted average return on equity（%）|0.66%|0.24%|0.42%|
||||Changes of this|
||||period-end over same|
||End of this period|End of last period||
||||period-end of last|
||||year(%)|
|Gross assets（Yuan）|11,272,663,036.41|10,830,597,182.38|4.08%|
|Net assets attributable to the shareholders of the|5,883,629,092.31|5,884,816,809.55||
||||-0.02%|
|listed company（Yuan）||||

Items and amount of non-current gains and losses
In RMB
||||
|-|-|-|
||Amount (Year-beginning to the end||
|Non-recurring gain and loss items||Notes|
||of the report period.)||
|Govemment subsidy recognized in current gain and loss(excluding those closely|||
||367,707.12||
|related to the Company’s business and granted under the state’s policies)|||
|Gain/loss from change of fair value of transactional financial asset and liabilities,|||
|and investment gains from disposal of transactional financial assets and liabilities|||
||10,610,466.29||
|and sellable financial assets other than valid period value instruments related to the|||
|Company’s common businesses.|||
|Other non-operating income and expenditure except for the aforementioned items|2,665,142.71||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|Less: Amount of influence of income tax|2,879,534.93||
|Amount of influence of minority interests（After tax）|190,671.29||
|Total|10,573,109.90|--|

None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Total number of common shareholders at||Total preference shareholders with the voting power||||||||||
||14,467|||||||0||||
|the period-end||recovered at the end of the reporting period(if any)||||||||||
|Shares held by the top 10 shareholders||||||||||||
||||||||Amount of|||Pledging or||
|||||||||||freezing||
||||||||tradable shares|||||
|||||Share||||||||
|||Properties of||||||||||
|Shareholder name||||proportion|Quantity||with|||Status||
|||shareholder|||||||||Quant|
|||||%|||Conditional|||of the||
||||||||||||ity|
|||||||||||shares||
||||||||held|||||
|Hangzhou Steam Turbine Power Group Co., Ltd.||State-ownedlegal person||63.64%|479,824,800||479,824,800|||||
|VANGUARD EMERGING MARKETS STOCK INDEXFUND||Foreign legalperson||0.63%|4,722,804||0|||||
|NORGES BANK||Foreign legalperson||0.57%|4,303,675||0|||||
|VANGUARD TOTAL INTERNATIONAL STOCK INDEXFUND||Foreign legalperson||0.46%|3,454,046||0|||||
|Zhou Jie||DomesticNatural person||0.44%|3,291,800||0|||||
|ISHARES CORE MSCI EMERGING MARKETS ETF||Foreign legalperson||0.41%|3,113,501||0|||||
|China Merchants Secutities(HK)Co., Ltd.||State-ownedlegal person||0.36%|2,692,800||0|||||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||Foreign legalperson||0.34%|2,593,651||0|||||
|Xia Zhulin||DomesticNatural person||0.29%|2,179,300||0|||||
|CREDIT SUISSE AG HONG KONG BRANCH||Foreign legalperson||0.23%|1,728,159||0|||||
|Shares held by the Top 10 Shareholders of Non-restricted shares||||||||||||
||||Number of the non-restricted|||Share type||||||
|Shareholders’ Names||||||||||||
||||shares held|||Share type|||Quantity|||
|VANGUARD EMERGING MARKETS STOCK INDEX FUND|||4,722,804|||Foreign shares||||||
|||||||placed in domestic|||4,722,804|||
|||||||exchange||||||
|NORGES BANK|||4,303,675|||Foreign shares||||||
|||||||placed in domestic|||4,303,675|||
|||||||exchange||||||
|VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND|||3,454,046|||Foreign shares|||3,454,046|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
|||||
|-|-|-|-|
|||placed in domestic||
|||exchange||
|Zhou Jie|3,291,800|Foreign shares||
|||placed in domestic|3,291,800|
|||exchange||
|ISHARES CORE MSCI EMERGING MARKETS ETF|3,113,501|Foreign shares||
|||placed in domestic|3,113,501|
|||exchange||
|China Merchants Secutities(HK)Co., Ltd.|2,692,800|Foreign shares||
|||placed in domestic|2,692,800|
|||exchange||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED|2,593,651|Foreign shares||
|||placed in domestic|2,593,651|
|||exchange||
|Xia Zhulin|2,179,300|Foreign shares||
|||placed in domestic|2,179,300|
|||exchange||
|CREDIT SUISSE AG HONG KONG BRANCH|1,728,159|Foreign shares||
|||placed in domestic|1,728,159|
|||exchange||
|Wang Yihu|1,429,024|Foreign shares||
|||placed in domestic|1,429,024|
|||exchange||
||(1) There is not any relationship between Hangzhou Steam Turbine Group|||
||Power Group Co., Ltd. and other shareholders; (2) It is unknown to the|||
||Company if there is any relationship among the top 10 common share|||
|Explanation on associated relationship or concerted action of the||||
||holders without restriction; (3) Hangzhou Steam Turbine Group Co., Ltd.|||
|above shareholders||||
||is not an “action-in-concert” party with any of other shareholders as|||
||described by the “Administration Rules of Informational Disclosure about|||
||Change of Shareholding Statues of PLCs”.|||
|Note to the top 10 common stockholders involved in margin||||
||Not applicable|||
|financing & securities lending (If any)||||

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
Not applicable
III. Significant Events
I. Changes in the principal accounting statement items and financial indications and the causes
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
|||||||
|-|-|-|-|-|-|
|Items|This period|Same period of lastyear|Proportion ofthe change|Causes of change||
|Other current assets|1,177,474,776.04|904,426,265.79|30.19%||Mainly due to the year-on-year increase in wealth|
||||||management|
|Construction inprocess|344,980,750.76|255,921,660.09|34.80%||Mainly due to the increase in investment in|
||||||construction projects and research buildings of the|
||||||Steam Turbine Company during the current period|
|Operation revenue|962,078,793.39|748,344,237.44|28.56%||Mainly due to the increase in production and sales and|
||||||the increase in inventory unit sales during the current|
||||||period|
|Asset impairmentloss|25,569,130.99|-250,837.45|10293.51%||Mainly due to the increase in bad debts due to|
||||||accounts receivable in this period|
|Investment income|16,889,734.98|35,686,339.58|-52.67%||Mainly due to the sale of Changdi’s equity in the|
||||||same period last year|
|Cash flow generatedby businessoperation, net|126,725,248.14|-200,738,208.12|163.13%|Mainly due to the year-on-year increase in theproportion of cash receipts in sales of goods sold inthe current period||
|Net cash flowgenerated byinvestment|-280,100,905.12|264,097,295.53|-206.06%|Mainly due to the increase in net expenditure onwealth management products during the currentperiod||
|Net cash flowgenerated byFinancing|10,881,462.31|5,613,901.44|93.83%|Mainly due to the year-on-year increase in borrowings||

II. Progress of Significant Events, their Influences and Analytical Notice on the Solutions
||||
|-|-|-|
|||Temporary report disclosure of|
|Summary of important matters|Disclosure date||
|||website query index|
|Hangzhou Municipal Government will include the steam turbine Shiqiao Road|||
|plant area and its surrounding areas in the development and reconstruction of the|||
|lighthouse unit city of Xiacheng District in Hangzhou. The company will initiate the||Disclosed by|
|relocation of the Shiqiao Road plant area in accordance with relevant requirements. The|March 21,2018|http://www.cninfo.com.cn|
|company has signed an "Agreement on Relocation of Non-Residential Houses on||(Announcement No. 2018-10 )|
|State-Owned Land" with Hangzhou Xiacheng District Urban Construction Investment|||
|Development Group Co., Ltd., and the city investment company will pay the relevant|||
|relocation compensation fees.|||
|relocation compensation fees.|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
Non-existence
IV. Anticipation of Business Performance from January to June 2018
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the same period of last year, and statement of causations.
Not applicable
V. Investment in securities
Non-existence
VI. Investment in derivatives
Non-existence
VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period
Nil
VIII. Outward Guarantee against the Regulations
Nil
IX. Non-operational Occupancy of theCompany’s Capital by the Controlling Shareholder and its Related Parties
Non-existence
IV.Financial Statement
I. Financial statement
1. Consolidated balance sheet
Preparedby:：Hangzhou Steam Turbine Co., Ltd.
March 31, 2018
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|1,070,817,985.28|1,222,677,495.94|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial assets|||
|Notes receivable|776,434,815.48|715,410,887.68|
|Account receivable|1,898,745,897.31|1,695,217,448.46|
|Prepayments|568,287,140.60|446,166,710.77|
|Insurance receivable|||
|Reinsurance receivable|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|6,900,000.00|6,900,000.00|
|Other account receivable|18,641,678.17|16,905,005.57|
|Repurchasing of financial assets|||
|Inventories|2,079,218,821.38|2,092,575,691.92|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|1,177,474,776.04|904,426,265.79|
|Total of current assets|7,596,521,114.26|7,100,279,506.13|
|Non-current assets：|||
|Loans and payment on other’s behalf disbursed|||
|Disposable financial asset|2,291,173,805.84|2,417,780,984.08|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|5,800,000.00|5,800,000.00|
|Property investment|||
|Fixed assets|556,107,765.78|566,710,937.10|
|Construction in progress|344,980,750.76|255,921,660.09|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|284,263,034.33|285,670,638.55|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|253,886.90|253,886.90|
|Deferred income tax asset|193,562,678.54|198,179,569.53|
|Other non-current asset|||
|Total of non-current assets|3,676,141,922.15|3,730,317,676.25|
|Total of assets|11,272,663,036.41|10,830,597,182.38|
|Current liabilities|||
|Short-term loans|115,700,000.00|115,500,000.00|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial liabilities|||
|Notes payable|223,404,435.48|215,409,958.92|
|Account payable|1,019,508,759.39|882,715,465.65|
|Advance payment|2,707,463,440.23|2,419,751,405.08|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|63,979,418.16|79,525,773.69|
|Tax payable|42,639,701.03|34,920,073.37|
|Interest payable|25,254.17|268,860.77|

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|Dividend payable|0.00|0.00|
|Other account payable|29,896,375.95|27,859,617.33|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year|0.00|4,900,000.00|
|Other current liability|||
|Total of current liability|4,202,617,384.41|3,780,851,154.81|
|Non-current liabilities：|||
|Long-term loan|122,800,000.00|100,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|209,633,466.66|209,633,466.66|
|Long-term payable employees’s remuneration|||
|Special payable|237,663,831.07|237,658,831.07|
|Expected liabilities|||
|Deferred income|4,097,725.24|4,063,615.00|
|Deferred income tax liability|271,226,591.20|278,217,667.94|
|Other non-current liabilities|||
|Total non-current liabilities|845,421,614.17|829,573,580.67|
|Total of liability|5,048,038,998.58|4,610,424,735.48|
|Owners’ equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|139,545,089.02|139,545,089.02|
|Less：Shares in stock|||
|Other comprehensive income|1,530,741,982.79|1,570,358,510.09|
|Special reserves|24,756,292.17|25,369,714.61|
|Surplus reserves|621,112,807.78|621,112,807.78|
|Common risk provision|||
|Undistributed profit|2,813,462,520.55|2,774,420,288.05|
|Total of owner’s equity belong to the parent company|5,883,629,092.31|5,884,816,809.55|
|Minority shareholders’ equity|340,994,945.52|335,355,637.35|
|Total of owners’ equity|6,224,624,037.83|6,220,172,446.90|
|Total of liabilities and owners’ equity|11,272,663,036.41|10,830,597,182.38|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Zhao Jiamao Accounting Dept Leader: Zhao Jiamao
2.Parent Company Balance Sheet
In RMB
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|451,035,819.42|654,407,180.33|
|Financial assets measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial assets|||
|Notes receivable|439,639,586.31|357,644,500.75|
|Account receivable|1,315,801,142.98|1,195,950,107.32|
|Prepayments|199,873,397.64|163,701,036.86|
|Interest receivable|||
|Dividend receivable|34,909,600.00|6,900,000.00|
|Other account receivable|5,553,530.47|4,311,538.86|
|Inventories|1,503,469,757.24|1,598,522,597.27|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|940,672,888.57|737,474,571.12|
|Total of current assets|4,890,955,722.63|4,718,911,532.51|
|Non-current assets：|||
|Disposable financial asset|2,250,414,116.26|2,377,021,294.50|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|502,919,378.03|502,919,378.03|
|Property investment|||
|Fixed assets|259,076,832.64|265,423,321.11|
|Construction in progress|205,910,369.33|151,569,540.89|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|169,780,320.65|169,780,320.65|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|253,886.90|253,886.90|
|Deferred income tax asset|144,311,064.85|146,802,178.11|
|Other non-current asset|||
|Total of non-current assets|3,532,665,968.66|3,613,769,920.19|
|Total of assets|8,423,621,691.29|8,332,681,452.70|
|Current liabilities|||
|Short-term loans|||
|Financial liabilities measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial liabilities|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|Notes payable|6,400,000.00|5,400,000.00|
|Account payable|513,807,704.45|457,304,271.86|
|Advance payment|1,842,138,764.87|1,817,869,660.07|
|Employees’ wage payable|34,203,328.83|42,770,536.86|
|Tax payable|23,541,468.28|3,918,864.69|
|Interest payable||112,597.22|
|Dividend payable|||
|Other account payable|18,337,608.12|15,515,940.17|
|Classified as held for sale debt|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|2,438,428,874.55|2,342,891,870.87|
|Non-current liabilities：|||
|Long-term loan|100,000,000.00|100,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable to employees|||
|Special payable|237,067,491.46|237,067,491.46|
|Expected liabilities|||
|Deferred income|34,110.24||
|Deferred income tax liability|271,226,591.20|278,217,667.94|
|Other non-current liabilities|||
|Total of Non-current liabilities|608,328,192.90|615,285,159.40|
|Total of liability|3,046,757,067.45|2,958,177,030.27|
|Owners’ equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|138,953,250.09|138,953,250.09|
|Less：Shares in stock|||
|Other comprehensive income|1,531,296,507.59|1,570,912,609.09|
|Special reserves|9,560,194.63|9,629,800.19|
|Surplus reserves|602,356,402.65|602,356,402.65|
|Undistributed profit|2,340,687,868.88|2,298,641,960.41|
|Total of owners’ equity|5,376,864,623.84|5,374,504,422.43|
|Total of liabilities and owners’ equity|8,423,621,691.29|8,332,681,452.70|

Legal Representative: Zheng Bin Person in charge ofaccounting：Zhao Jiamao Accounting Dept Leader: Zhao Jiamao
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) 3.Consolidated Income statement
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|962,078,793.39|748,344,237.44|
|Incl：Business income|962,078,793.39|748,344,237.44|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|923,882,796.39|757,643,833.76|
|Incl：Business cost|677,035,461.03|525,196,208.66|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net amount provided as insurance contract reserves|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|8,754,883.42|8,821,742.95|
|Sales expense|38,457,390.31|41,648,800.76|
|Administrative expense|160,218,944.58|179,175,254.56|
|Financial expenses|13,846,986.06|3,052,664.28|
|Asset impairment loss|25,569,130.99|-250,837.45|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|16,889,734.98|35,686,339.58|
|Incl: investment gains from affiliates|||
|Gains from currency exchange（“-”for loss）|||
|Assets disposal income||-2,499.60|
|Other income|367,707.12|2,486,351.20|
|III. Operational profit（“-”for loss）|55,453,439.10|28,870,594.86|
|Add ：Non-operational income|2,932,814.41|1,797,664.19|
|Less：Non business expenses|266,922.74|245,077.00|
|IV.Total profit(“-”for loss)|58,119,330.77|30,423,182.05|
|Less：Income tax expenses|9,310,235.49|6,592,924.19|
|V. Net profit|48,809,095.28|23,830,257.86|
|(1) Categorized by going concern|48,809,095.28|23,830,257.86|
|(2) Termination of operating net profit|||
|Net profit attributable to the owners of parent company|39,042,232.50|16,752,601.64|
|Minority shareholders’ equity|9,766,862.78|7,077,656.22|
|VI. Other comprehensive income|-39,617,101.50|206,313,862.01|
|Net of profit of other comprehensive income attributable to owners o|||
||-39,616,527.30|206,325,346.09|
|f the parent company.|||
|（I）Other comprehensive income items that will not be reclassified|||
|into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or|||
|net assets|||
|2.Other comprehensive income under the equity method investee can|||
|not be reclassified into profit or loss.|||
|（II）|||
||-39,616,527.30|206,325,346.09|
|Other comprehensive income that will be reclassified into profit or l|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|oss.|||
|1.Other comprehensive income under the equity method investee can|||
|be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale finan|||
||-39,616,101.50|206,333,862.00|
|cial assets|||
|3.Held-to-maturity investments reclassified to gains and losses of av|||
|ailable for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|-425.80|-8,515.91|
|6.Other|||
|Net of profit of other comprehensive income attributable to Minority|-574.20|-11,484.08|
|shareholders’ equity|||
|VII. Total comprehensive income|9,191,993.78|230,144,119.87|
|Total comprehensive income attributable to the owner of the parent|||
||-574,294.80|223,077,947.73|
|company|||
|Total comprehensive income attributable minority shareholders|9,766,288.58|7,066,172.14|
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.05|0.02|
|(II)Diluted earnings per share|0.05|0.02|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Zhao Jiamao Accounting Dept Leader: Zhao Jiamao
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) 4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|665,826,865.49|518,830,806.22|
|Less：Business cost|501,571,098.74|377,206,922.31|
|Business tax and surcharge|6,750,023.51|4,229,839.47|
|Sales expense|19,855,662.21|25,219,505.56|
|Administrative expense|100,745,145.34|133,291,786.10|
|Financial expenses|12,917,968.41|2,450,317.94|
|Asset impairment loss|26,529,217.37|-3,268,417.23|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|44,093,063.87|29,484,295.08|
|Incl: investment gains from affiliates|||
|Assets disposal income|||
|Other income|||
|II. Operational profit（“-”for loss）|41,550,813.78|9,185,147.15|
|Add ：Non-operational income|3,116,732.00|1,300,000.00|
|Less：Non business expenses|130,524.05|10,000.00|
|III.Total profit(“-”for loss)|44,537,021.73|10,475,147.15|
|Less：Income tax expenses|2,491,113.26|5,449,819.84|
|IV. Net profit|42,045,908.47|5,025,327.31|
|(1) Categorized by going concern|42,045,908.47|5,025,327.31|
|(2) Termination of operating net profit|||
|V.Net of profit of other comprehensive income|-39,616,101.50|206,333,862.00|
|（I）Other comprehensive income items that will not be|||
|reclassified into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt|||
|or net assets|||
|2.Other comprehensive income under the equity method investee|||
|can not be reclassified into profit or loss.|||
|（ II ）|||
||-39,616,101.50|206,333,862.00|
|Other comprehensive income that will be reclassified into profit or|||
|loss.|||
|1.Other comprehensive income under the equity method investee|||
|can be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale fin|||
||-39,616,101.50|206,333,862.00|
|ancial assets|||
|3.Held-to-maturity investments reclassified to gains and losses of|||
|available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|||
|6.Other|||
|VI. Total comprehensive income|2,429,806.97|211,359,189.31|
|VII. Earnings per share：|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|（I）Basic earnings per share|0.056|0.007|
|(II)Diluted earnings per share|0.056|0.007|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Zhao Jiamao Accounting Dept Leader: Zhao Jiamao
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) 5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|||Same period of the|
|Items|Report period||
|||previous year|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|838,220,339.60|558,114,951.23|
|Net increase of customer deposits and capital kept for brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Net increase of trade financial asset disposal|||
|Cash received as interest, processing fee and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|2,374,074.97||
|Other cash received from business operation|5,420,749.00|5,675,366.23|
|Sub-total of cash inflow|846,015,163.57|563,790,317.46|
|Cash paid for purchasing of merchandise and services|425,452,604.80|439,261,241.07|
|Net increase of client trade and advance|||
|Net increase of savings n central bank and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|189,311,016.30|181,268,694.01|
|Taxes paid|64,394,773.79|105,253,360.58|
|Other cash paid for business activities|40,131,520.54|38,745,229.92|
|Sub-total of cash outflow from business activities|719,289,915.43|764,528,525.58|
|Cash flow generated by business operation, net|126,725,248.14|-200,738,208.12|
|II.Cash flow generated by investing|||
|Cash received from investment retrieving|80,000,000.00|48,558,351.80|
|Cash received as investment gains|16,889,734.98|35,686,339.58|
|Net cash retrieved from disposal of fixed assets, intangible assets, and other|||
|||407,144.18|
|long-term assets|||
|Net cash received from disposal of subsidiaries or other operational units|||
|Other investment-related cash received|880,265,735.99|845,700,000.00|
|Sub-total of cash inflow due to investment activities|977,155,470.97|930,351,835.56|
|Cash paid for construction of fixed assets, intangible assets and other long-term|||
||100,656,376.09|20,254,540.03|
|assets|||
|Cash paid as investment||20,000,000.00|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|1,156,600,000.00|626,000,000.00|
|Sub-total of cash outflow due to investment activities|1,257,256,376.09|666,254,540.03|

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|Net cash flow generated by investment|-280,100,905.12|264,097,295.53|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from minor shareholders|||
|Cash received as loans|42,000,000.00|36,000,000.00|
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from financing activities|42,000,000.00|36,000,000.00|
|Cash to repay debts|23,900,000.00|20,100,000.00|
|Cash paid as dividend, profit, or interests|7,218,537.69|1,926,513.37|
|Incl: Dividend and profit paid by subsidiaries to minor shareholders|||
|Other cash paid for financing activities||8,359,585.19|
|Sub-total of cash outflow due to financing activities|31,118,537.69|30,386,098.56|
|Net cash flow generated by financing|10,881,462.31|5,613,901.44|
|IV. Influence of exchange rate alternation on cash and cash equivalents|-9,365,315.99|-490,217.72|
|V.Net increase of cash and cash equivalents|-151,859,510.66|68,482,771.13|
|Add: balance of cash and cash equivalents at the beginning of term|1,222,677,495.94|895,037,559.34|
|VI ..Balance of cash and cash equivalents at the end of term|1,070,817,985.28|963,520,330.47|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Zhao Jiamao Accounting Dept Leader: Zhao Jiamao
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) 6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|337,257,363.43|431,634,661.29|
|Tax returned|198,416.10||
|Other cash received from business operation|2,486,269.96|812,899.66|
|Sub-total of cash inflow|339,942,049.49|432,447,560.95|
|Cash paid for purchasing of merchandise and services|225,206,170.83|338,102,954.16|
|Cash paid to staffs or paid for staffs|119,618,256.32|124,416,505.09|
|Taxes paid|29,555,820.94|71,346,176.98|
|Other cash paid for business activities|11,564,241.82|11,779,176.90|
|Sub-total of cash outflow from business activities|385,944,489.91|545,644,813.13|
|Cash flow generated by business operation, net|-46,002,440.42|-113,197,252.18|
|II.Cash flow generated by investing|||
|Cash received from investment retrieving|80,000,000.00|48,558,351.80|
|Cash received as investment gains|16,083,463.87|29,484,295.08|
|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|685,025,355.14|430,000,000.00|
|Sub-total of cash inflow due to investment activities|781,108,819.01|508,042,646.88|
|Cash paid for construction of fixed assets, intangible assets and other|||
||32,378,236.48|12,874,611.09|
|long-term assets|||
|Cash paid as investment||20,000,000.00|
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|895,000,000.00|285,000,000.00|
|Sub-total of cash outflow due to investment activities|927,378,236.48|317,874,611.09|
|Net cash flow generated by investment|-146,269,417.47|190,168,035.79|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from financing activities|||
|Cash to repay debts|||
|Cash paid as dividend, profit, or interests|1,974,653.15|837,500.00|
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to financing activities|1,974,653.15|837,500.00|
|Net cash flow generated by financing|-1,974,653.15|-837,500.00|
|IV. Influence of exchange rate alternation on cash and cash equivalents|-9,124,849.87|-329,722.74|

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text)
||||
|-|-|-|
|V.Net increase of cash and cash equivalents|-203,371,360.91|75,803,560.87|
|Add: balance of cash and cash equivalents at the beginning of term|654,407,180.33|293,454,126.93|
|VI ..Balance of cash and cash equivalents at the end of term|451,035,819.42|369,257,687.80|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Zhao Jiamao Accounting Dept Leader: Zhao Jiamao
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2018(Full text) II.Auditors’ Report
The first Quarterly Report Not audited
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
April 26,2018