Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text) Stock Code: 20077 Stock ID: Hangqilun B Announcement No. 2017-34 Hangzhou Steam Turbine Co., Ltd.
The
1st
Quarterly Report 2017
April 2017
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(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 Pu Yangshuo, and the Chief of Accounting Department Ms. 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 2017(Full text) II. Basic information about the company
I. Main financial data and indices
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
No
|||||
|-|-|-|-|
||||Changes of this period over same|
||This period|Same period of last year||
||||period of last year（％）|
|Operating income（RMB）|748,344,237.44|687,834,749.02|8.80%|
|Net profit attributable to the shareholders of|16,752,601.64|6,620,245.62||
||||153.05%|
|the listed company（RMB）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of|-15,980,860.17|2,908,791.39|-649.40%|
|listed company（RMB）||||
|Cash flow generated by business operation,|-200,738,208.12|18,550,921.62||
||||-1,182.09%|
|net（RMB）||||
|Basic earning per share(RMB/Share)|0.02|0.01|100.00%|
|Diluted gains per|0.02|0.01||
||||100.00%|
|share(RMB/Share)(RMB/Share)||||
|Weighted average return on equity（%）|0.24%|0.16%|0.08%|
||||Changes of this period-end over|
||End of this period|End of last period||
||||same period-end of last year(%)|
|Gross assets（RMB）|10,966,970,527.59|10,550,899,708.34|3.94%|
|Net assets attributable to the shareholders|6,608,363,192.44|6,385,346,243.23||
||||3.49%|
|of the listed company（RMB）||||

Items and amount of non-current gains and losses
In RMB
||||
|-|-|-|
||Amount (Year-beginning to the||
|Non-recurring gain and loss items||Notes|
||end of the report period.)||
|Non-current asset disposal gain/loss(including the|||
|write-off part for which assets impairment provision|-2,499.60||
|is made)|||
|Govemment subsidy recognized in current gain and|||
|loss(excluding those closely related to the Company’s|2,486,351.20||
|business and granted under the state’s policies)|||
|Gain/loss from change of fair value of transactional|||
|financial asset and liabilities, and investment gains|35,686,339.58||
|from disposal of transactional financial assets and|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|liabilities and sellable financial assets other than valid|||
|period value instruments related to the Company’s|||
|common businesses.|||
|Other non-operating income and expenditure except|||
||1,554,852.88||
|for the aforementioned items|||
|Less: Amount of influence of income tax|6,479,408.00||
|Amount of influence of minority interests（After tax）|512,174.25||
|Total|32,733,461.81|--|

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 2017(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 preference shareholders with the voting||||||||
|Total number of common shareholders at the|||||||||||||
||15,314||||power recovered at the end of the reporting||||||0||
|period-end|||||||||||||
||||||period(if any)||||||||
|Shares held by the top 10 shareholders|||||||||||||
|||||||||Amount of|Pledging or freezing||||
|||||||||tradable|||||
|||Properties of||Share|||||||||
|Shareholder name||||||Quantity||shares with|Status of||||
|||shareholder||proportion %||||||||Quantity|
|||||||||Conditional|the shares||||
|||||||||held|||||
|Hangzhou Steam Turbine Power Group Co., Ltd.||State-owned legalperson||63.64%||479,824,800||479,824,800|||||
|Shanwan Hongyuan Securities (HK) Co.,Ltd.||Foreign legalperson||0.71%||5,325,166||0|||||
|BBH A/C VANGUARD EMERGING MARKETSSTOCK INDEX FUND||Foreign legalperson||0.63%||4,722,804||0|||||
|NORGES BANK||Foreign legalperson||0.57%||4,303,675||0|||||
|GUOTAIJUNAN SECURITIES(HONGKONG)LIMITED||Foreign legalperson||0.45%||3,411,781||0|||||
|VANGUARD TOTAL INTERNATIONAL STOCKINDEX FUND||Foreign legalperson||0.45%||3,370,146||0|||||
|CHINA INT'L CAPITAL CORP HONG KONGSECURITIES LTD||Foreign legalperson||0.32%||2,425,960||0|||||
|China Merchants Secutities(HK)Co., Ltd.||State-owned legalperson||0.31%||2,318,344||0|||||
|Xia Zulin||Domestic Naturalperson||0.28%||2,100,000||0|||||
|ISHARES CORE MSCI EMERGING MARKETS ETF||Foreign legalperson||0.26%||1,988,800||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|||
|Shanwan Hongyuan Securities (HK) Co.,Ltd.|||5,325,166||||Foreign shares||||||
||||||||placed in domestic|||5,325,166|||
||||||||exchange||||||
|BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND|||4,722,804||||Foreign shares||||||
|||||||||||4,722,804|||
||||||||placed in domestic||||||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
|||||
|-|-|-|-|
|||exchange||
|NORGES BANK|4,303,675|Foreign shares||
|||placed in domestic|4,303,675|
|||exchange||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED|3,411,781|Foreign shares||
|||placed in domestic|3,411,781|
|||exchange||
|VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND|3,370,146|Foreign shares||
|||placed in domestic|3,370,146|
|||exchange||
|CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD|2,425,960|Foreign shares||
|||placed in domestic|2,425,960|
|||exchange||
|China Merchants Secutities(HK)Co., Ltd.|2,318,344|Foreign shares||
|||placed in domestic|2,318,344|
|||exchange||
|Xia Zulin|2,100,000|Foreign shares||
|||placed in domestic|2,100,000|
|||exchange||
|ISHARES CORE MSCI EMERGING MARKETS ETF|1,988,800|Foreign shares||
|||placed in domestic|1,988,800|
|||exchange||
|CREDIT SUISSE AG HONG KONG BRANCH|1,729,759|Foreign shares||
|||placed in domestic|1,729,759|
|||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 holders|||
|Explanation on associated relationship or concerted action of the above||||
||without restriction; (3) Hangzhou Steam Turbine Group Co., Ltd. is not an|||
|shareholders||||
||“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 financing &||||
||Not applicable|||
|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.
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text) 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
In RMB
||||||
|-|-|-|-|-|
|Balance sheet items|Ending balance inCNY|Opening balance inCNY|Proportion ofthechange|Causes of change|
|Bill receivable|598,481,186.07|479,716,321.62|24.76%|Mainly due to the current repayment of the billmore due|
|Advance account|500,527,501.83|202,184,858.83|147.56%|Mainly due to the current period in accordancewith the provisions of the purchase contractprepaid to the supplier due to the increase|
|Other current assets|642,270,509.40|863,018,479.59|-25.58%|Mainly due to the current purchase of financialproducts due to reduced year on year|
|Profit statement items|Amount in thereporting period|Same period of theprevious year , CNY|Proportion n fthe change|Causes of change|
|Asset impairment loss|-250,837.45|65,049,476.00|-100.39%|Mainly due to the long-term accounts receivablewith a long aging, aging structure changes are notobvious, less provision for bad debts due|
|Investment income|35,686,339.58|4,321,846.55|725.72%|Which was mainly due to the investment incomeof the Changdi equity investment partnership ofthe Company|
|Total profit|30,423,182.05|12,921,893.35|135.44%|Mainly due to the impairment loss of assets of thecurrent period, while the company transferredChangdi equity investment partnership formedinvestment income|
|Cash flow statement Items|Amount in thereporting period|Same period of theprevious year , CNY|Proportion n fthe change|Causes of change|
|Cash flow generated bybusiness operation, net|-200,738,208.12|18,550,921.62|-1182.09%|Mainly due to the increase in taxes paid in thecurrent period, the number of acceptance bills inthe quarter due to more|
|Net cash flow generated byinvestment|264,097,295.53|-118,577,325.06|322.72%|Mainly due to the current period due to increasein wealth management products|

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||||
|-|-|-|-|-|
|Net cash flow generated byFinancing|5,613,901.44|-34,422,806.47|116.31%|Mainly due to the decrease in the amount of bankrepayment in the current period|

II. Progress of Significant Events, their Influences and Analytical Notice on the Solutions
The optimize the company's capital structure and meet the needs of thecompany’s operating funds, the company made the transfer of theCompany’s Share of Property of Changdi Equity Investment. The Content is available as The Announcement No. 2016-76,2016-78 and 2016-89 released by Securities Times, Shanghai Securities Daily, Hong Kong Commercial Daily and http://www.cninfo.com.cn dated October 23, 2016,November 17,2016 and December 26, 2016 respectively .
|||
|-|-|
||On January 3, 2017, the Company formally signed an agreement on the transfer of the shares of Hangzhou|
|Changdi Equity Investment Partnership Firm (limited partnership) with Zhejiang Juqing Investment Co., Ltd. and||
|received the announcement from Zhejiang Juqing Investment Co., Ltd. on Jan. 17 Of the transfer of 73.68 million||
|yuan.||

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, 2017
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.
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text) March 31, 2017
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|||
||963,520,330.47|895,037,559.34|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value with variations|||
|accounted into current income account|||
|Derivative financial assets|||
|Bill receivable|||
||598,481,186.07|479,716,321.62|
|Account receivable|||
||1,850,030,050.66|1,870,173,348.32|
|Prepayments|||
||500,527,501.83|202,184,858.83|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|||
||33,995,911.23|31,024,707.72|
|Repurchasing of financial assets|||
|Inventories|||
||1,875,368,114.41|1,901,544,358.26|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|||
||642,270,509.40|863,018,479.59|
|Total of current assets|||
||6,464,193,604.07|6,242,699,633.68|
|Non-current assets：|||
|Loans and payment on other’s behalf disbursed|||
|Disposable financial asset|||
||3,275,053,230.80|3,060,865,862.60|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|||
|Property investment|||
|Fixed assets|||
||619,751,044.63|615,922,109.91|
|Construction in progress|||
||135,498,725.71|153,743,889.41|
|Engineering material|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|||
||295,093,450.44|297,405,434.08|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
||1,364,677.87|1,430,968.81|
|Deferred income tax asset|||
||176,015,794.07|178,831,809.85|
|Other non-current asset|||
|Total of non-current assets|||
||4,502,776,923.52|4,308,200,074.66|
|Total of assets|||
||10,966,970,527.59|10,550,899,708.34|
|Current liabilities|||
|Short-term loans|||
||189,000,000.00|173,000,000.00|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value with variations|||
|accounted into current income account|||
|Derivative financial liabilities|||
|Bill payable|||
||103,937,144.69|143,007,715.10|
|Account payable|||
||985,133,211.04|853,452,589.51|
|Advance payment|||
||1,938,382,883.42|1,827,959,793.62|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|||
||57,236,993.90|71,224,634.03|
|Tax payable|||
||44,503,432.18|90,239,673.16|
|Interest payable|||
|||134,376.32|
|Dividend payable|||
|Other account payable|||
||28,030,927.57|30,820,980.80|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|Non-current liability due in 1 year|||
||18,400,000.00|18,500,000.00|
|Other current liability|||
|Total of current liability|||
||3,364,624,592.80|3,208,339,762.54|
|Non-current liabilities：|||
|Long-term loan|||
||4,900,000.00|4,900,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
||208,330,000.00|208,357,733.33|
|Long-term payable employees’s remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|||
||5,845,868.90|5,422,895.00|
|Deferred income tax liability|414,668,504.95|378,256,646.95|
|Other non-current liabilities|||
||1,206,800.00||
|Total non-current liabilities|||
||634,951,173.85|596,937,275.28|
|Total of liability|3,999,575,766.65|3,805,277,037.82|
|Owners’ equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|||
||139,590,345.09|139,590,345.09|
|Less：Shares in stock|||
|Other comprehensive income|||
||2,343,744,645.93|2,137,419,299.84|
|Special reserves|||
||27,485,354.85|27,546,353.37|
|Surplus reserves|||
||621,112,807.78|621,112,807.78|
|Common risk provision|||
|Undistributed profit|2,722,419,638.79|2,705,667,037.15|
|Total of owner’s equity belong to the parent company|||
||6,608,363,192.44|6,385,346,243.23|
|Minority shareholders’ equity|||
||359,031,568.50|360,276,427.29|
|Total of owners’ equity|||
||6,967,394,760.94|6,745,622,670.52|
|Total of liabilities and owners’ equity|||
||10,966,970,527.59|10,550,899,708.34|

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text) Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|369,257,687.80|293,454,126.93|
|Financial assets measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial assets|||
|Bill receivable|382,706,768.83|269,527,716.22|
|Account receivable|1,363,790,459.95|1,424,950,696.58|
|Prepayments|395,928,522.54|115,383,408.34|
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|66,758,184.15|68,004,706.24|
|Inventories|1,452,691,612.12|1,446,652,799.71|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|455,297,660.50|600,000,000.00|
|Total of current assets|4,486,430,895.89|4,217,973,454.02|
|Non-current assets：|||
|Disposable financial asset|3,234,293,541.22|3,020,106,173.02|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|502,919,378.03|502,919,378.03|
|Property investment|||
|Fixed assets|308,939,367.77|315,900,380.66|
|Construction in progress|89,029,121.20|94,170,909.99|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|172,814,800.34|173,826,293.57|

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|507,773.78|507,773.78|
|Deferred income tax asset|128,131,953.86|133,581,773.70|
|Other non-current asset|||
|Total of non-current assets|4,436,635,936.20|4,241,012,682.75|
|Total of assets|8,923,066,832.09|8,458,986,136.77|
|Current liabilities|||
|Short-term loans|100,000,000.00|100,000,000.00|
|Financial liabilities measured at fair value with variations|||
|accounted into current income account|||
|Derivative financial liabilities|||
|Bill payable|||
|Account payable|668,997,858.64|486,810,046.42|
|Advance payment|1,562,572,026.28|1,476,780,338.78|
|Employees’ wage payable|34,306,740.86|44,035,408.19|
|Tax payable|25,023,298.55|64,247,326.24|
|Interest payable|||
|Dividend payable|||
|Other account payable|18,426,830.40|21,562,998.72|
|Classified as held for sale debt|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|2,409,326,754.73|2,193,436,118.35|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable to employees|||
|Special payable|||
|Expected liabilities|||
|Deferred income|422,973.90||
|Deferred income tax liability|414,668,504.95|378,256,646.95|
|Other non-current liabilities|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|Total of Non-current liabilities|415,091,478.85|378,256,646.95|
|Total of liability|2,824,418,233.58|2,571,692,765.30|
|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|2,344,134,018.80|2,137,800,156.80|
|Special reserves|10,870,071.58|10,874,033.85|
|Surplus reserves|602,356,402.65|602,356,402.65|
|Undistributed profit|2,248,324,455.39|2,243,299,128.08|
|Total of owners’ equity|6,098,648,598.51|5,887,293,371.47|
|Total of liabilities and owners’ equity|8,923,066,832.09|8,458,986,136.77|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 3.Consolidated Income statement
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|||
||748,344,237.44|687,834,749.02|
|Incl：Business income|||
||748,344,237.44|687,834,749.02|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|||
||757,643,833.76|678,666,814.16|
|Incl：Business cost|||
||525,196,208.66|393,516,347.50|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net amount provided as insurance contract reserves|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|||
||8,821,742.95|3,928,086.05|
|Sales expense|||
||41,648,800.76|35,428,813.22|
|Administrative expense|||
||179,175,254.56|179,385,377.44|
|Financial expenses|||
||3,052,664.28|1,358,713.95|
|Asset impairment loss|||
||-250,837.45|65,049,476.00|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|||
||35,686,339.58|4,321,846.55|
|Incl: investment gains from affiliates|||
|Gains from currency exchange（“-”for loss）|||
|III. Operational profit（“-”for loss）|||
||26,386,743.26|13,489,781.41|
|Add ：Non-operational income|||
||4,284,015.39|427,545.14|
|Including：Income from disposal of non-current assets|||
|Less：Non business expenses|||
||247,576.60|995,433.20|
|Incl：Loss from disposal of non-current assets|||
||2,499.60|2,286.95|
|IV.Total profit(“-”for loss)|||
||30,423,182.05|12,921,893.35|
|Less：Income tax expenses|||
||6,592,924.19|5,488,846.31|
|V. Net profit|||
||23,830,257.86|7,433,047.04|
|Net profit attributable to the owners of parent company|||
||16,752,601.64|6,620,245.62|
|Minority shareholders’ equity|||
||7,077,656.22|812,801.42|
|VI. Other comprehensive income|||
||206,313,862.01|-206,656.87|
|Net of profit of other comprehensive income attributable to owner|||
||206,325,346.09|-87,993.67|
|s of 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）|||
|Other comprehensive income that will be reclassified into profit or|206,325,346.09|-87,993.67|
|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|206,333,862.00||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|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|||
||-8,515.91|-87,993.67|
|6.Other|||
|Net of profit of other comprehensive income attributable to Minor|-11,484.08|-118,663.20|
|ity shareholders’ equity|||
|VII. Total comprehensive income|||
||230,144,119.87|7,226,390.17|
|Total comprehensive income attributable to the owner of the|||
||223,077,947.73|6,532,251.95|
|parent company|||
|Total comprehensive income attributable minority shareholders|||
||7,066,172.14|694,138.22|
|VIII. Earnings per share|||
|（I）Basic earnings per share|||
||0.02|0.01|
|(II)Diluted earnings per share|||
||0.02|0.01|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|518,830,806.22|444,691,641.41|
|Less：Business cost|||
||377,206,922.31|249,624,442.47|
|Business tax and surcharge|4,229,839.47|2,196,050.90|
|Sales expense|25,219,505.56|22,321,192.89|
|Administrative expense|133,291,786.10|122,056,468.72|
|Financial expenses|2,450,317.94|-22,425.04|
|Asset impairment loss|-3,268,417.23|53,718,028.56|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|||
||29,484,295.08|9,066,918.00|
|Incl: investment gains from affiliates|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|II. Operational profit（“-”for loss）|||
||9,185,147.15|3,864,800.91|
|Add ：Non-operational income|1,300,000.00|514.00|
|Including：Income from disposal of non-current assets|||
|Less：Non business expenses|||
||10,000.00|455,391.64|
|Incl：Loss from disposal of non-current assets|||
|III.Total profit(“-”for loss)|10,475,147.15|3,409,923.27|
|Less：Income tax expenses|||
||5,449,819.84||
|IV. Net profit（“-”for net loss）|5,025,327.31|3,409,923.27|
|V.Net of profit of other comprehensive income|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 ）|||
|Other comprehensive income that will be reclassified into profit or|206,333,862.00||
|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|||
||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|211,359,189.31|3,409,923.27|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
||0.007|0.0045|
|(II)Diluted earnings per share|0.007|0.0045|

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text) Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 5. Consolidated Cash flow statement
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|||
||558,114,951.23|634,119,438.95|
|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 the financial assets that are measured at fair value and|||
|whose movement is counted to the current gain and loss|||
|Cash received as interest, processing fee and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|||
|||206,444.13|
|Other cash received from business operation|||
||5,675,366.23|4,527,768.44|
|Sub-total of cash inflow|||
||563,790,317.46|638,853,651.52|
|Cash paid for purchasing of merchandise and services|||
||439,261,241.07|352,945,569.94|
|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|||
||181,268,694.01|179,244,664.51|
|Taxes paid|||
||105,253,360.58|51,177,497.74|
|Other cash paid for business activities|||
||38,745,229.92|36,934,997.71|
|Sub-total of cash outflow from business activities|||
||764,528,525.58|620,302,729.90|
|Cash flow generated by business operation, net|||
||-200,738,208.12|18,550,921.62|
|II.Cash flow generated by investing|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|Cash received from investment retrieving|||
||48,558,351.80||
|Cash received as investment gains|||
||35,686,339.58|5,321,846.55|
|Net cash retrieved from disposal of fixed assets, intangible assets, and|||
||407,144.18||
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational|||
|units|||
|Other investment-related cash received|||
||845,700,000.00|282,000,000.00|
|Sub-total of cash inflow due to investment activities|||
||930,351,835.56|287,321,846.55|
|Cash paid for construction of fixed assets, intangible assets and other|||
||20,254,540.03|27,199,171.61|
|long-term 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|||
||626,000,000.00|378,700,000.00|
|Sub-total of cash outflow due to investment activities|||
||666,254,540.03|405,899,171.61|
|Net cash flow generated by investment|||
||264,097,295.53|-118,577,325.06|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from minor shareholders|||
|Cash received as loans|||
||36,000,000.00|20,000,000.00|
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from financing activities|||
||36,000,000.00|20,000,000.00|
|Cash to repay debts|||
||20,100,000.00|50,100,000.00|
|Cash paid as dividend, profit, or interests|||
||1,926,513.37|4,322,806.47|
|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|||
||30,386,098.56|54,422,806.47|
|Net cash flow generated by financing|||
||5,613,901.44|-34,422,806.47|
|IV. Influence of exchange rate alternation on cash and cash equivalents|||
||-490,217.72|264,528.71|
|V.Net increase of cash and cash equivalents|||
||68,482,771.13|-134,184,681.20|
|Add: balance of cash and cash equivalents at the beginning of term|||
||895,037,559.34|751,596,796.24|
|VI ..Balance of cash and cash equivalents at the end of term|||
||963,520,330.47|617,412,115.04|

Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(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|431,634,661.29|384,359,061.84|
|Tax returned|||
|Other cash received from business operation|812,899.66|3,837,208.00|
|Sub-total of cash inflow|432,447,560.95|388,196,269.84|
|Cash paid for purchasing of merchandise and services|338,102,954.16|209,390,179.45|
|Cash paid to staffs or paid for staffs|124,416,505.09|124,656,555.17|
|Taxes paid|71,346,176.98|13,782,902.84|
|Other cash paid for business activities|11,779,176.90|40,683,952.46|
|Sub-total of cash outflow from business activities|545,644,813.13|388,513,589.92|
|Cash flow generated by business operation, net|-113,197,252.18|-317,320.08|
|II.Cash flow generated by investing|||
|Cash received from investment retrieving|48,558,351.80||
|Cash received as investment gains|29,484,295.08|9,066,918.00|
|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|430,000,000.00|120,000,000.00|
|Sub-total of cash inflow due to investment activities|508,042,646.88|129,066,918.00|
|Cash paid for construction of fixed assets, intangible assets|||
||12,874,611.09|23,359,420.46|
|and other 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|285,000,000.00|290,000,000.00|
|Sub-total of cash outflow due to investment activities|317,874,611.09|313,359,420.46|
|Net cash flow generated by investment|190,168,035.79|-184,292,502.46|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ash received|||

Hangzhou Steam Turbine Co., Ltd. The 1st Quarterly Report 2017(Full text)
||||
|-|-|-|
|Sub-total of cash inflow from financing activities|||
|Cash to repay debts|||
|Cash paid as dividend, profit, or interests|837,500.00||
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to financing activities|837,500.00||
|Net cash flow generated by financing|-837,500.00||
|IV. Influence of exchange rate alternation on cash and cash equivalents|-329,722.74|-328,995.22|
|V.Net increase of cash and cash equivalents|75,803,560.87|-184,938,817.76|
|Add: balance of cash and cash equivalents at the beginning of term|293,454,126.93|387,916,202.79|
|VI ..Balance of cash and cash equivalents at the end of term|369,257,687.80|202,977,385.03|

 Legal Representative:Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao II.Auditors’ Report
The first Quarterly Report Not audited
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
April 26,2017