The 3rd Quarterly Report 2017(Full Text) Stockcode：200771 StockID：Hangqilun B Announcement No.2017-68
Hangzhou Steam Turbine Co., Ltd.
The Third Quarterly Report 2017(Full Text)
（Stockcode：200771）
2017年 08月
October 2017
The 3rd Quarterly Report 2017(Full Text) 1 Important notes
The Board ofDirectors，the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report.
All of the directors presented the board meeting at which this Quarterly Report was examined.
Mr. Zheng Bin, The Company Leader, Mr. Pu Yangshuo, Chief financial officer and the Mr.Zhao Jiamao, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report.
The 3rd Quarterly Report 2017(Full Text) II.Main financial data and changes of shareholders
（1）Main accounting data and financial Index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
No
|||||||
|-|-|-|-|-|-|
||As at the end of the|||||
|||As at the end of last year||Changed （%）over end of prev. year||
||reporting period|||||
|Gross assets（RMB）|11,224,208,951.10|10,550,899,708.34||6.38%||
|Net assets attributable to the shareholders of|6,278,110,666.11|6,385,346,243.23||||
|||||-1.68%||
|the listed company（RMB）||||||
|||Increase/decrease over|Between beginning of|||
||||||Changed （%）over|
||Reporting period|the same period of last|the year to the end of|||
||||||end of prev. year|
|||year（%）|the report period|||
|Operating income（RMB）|925,501,518.37|5.84%|2,589,226,220.63||15.50%|
|Net profit attributable to the shareholders of|19,997,776.79||63,993,581.17|||
|||168.75%|||206.05%|
|the listed company（RMB）||||||
|Net profit after deducting of non-recurring||||||
|gain/loss attributable to the shareholders of|9,699,270.59|126.56%|13,259,488.98||116.58%|
|listed company（RMB）||||||
|Cash flow generated by business operation,|||199,924,781.38|||
||--|--|||-44.63%|
|net（RMB）||||||
|Basic earning per share(RMB/Share)|0.027|169.23%|0.085||206.25%|
|Diluted gains per|0.027||0.085|||
|||169.23%|||206.25%|
|share(RMB/Share)(RMB/Share)||||||
|Weighted average income/asset ratio（%）|0.32%|1.02%|1.01%||2.45%|

 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|||
||2,724,203.46||
|assets impairment provision is made)|||
|Govemment subsidy recognized in current gain and loss(excluding those|||
|closely related to the Company’s business and granted under the state’s|3,158,099.85||
|policies)|||
|Gain/loss from change of fair value of transactional financial asset and|52,715,774.41||

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|liabilities, and investment gains from disposal of transactional financial assets|||
|and liabilities and sellable financial assets other than valid period value|||
|instruments related to the Company’s common businesses|||
|Other non-business income and expenditures other than the above|3,384,963.82||
|Less：Amount of influence of income tax|10,147,425.90||
|Influence on minority shareholders’ equity (after tax)|1,101,523.45||
|Total|50,734,092.19|--|

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.
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.
The 3rd 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|||||||||
|Total number of common shareholders at||||||||||||
||14,916||voting power recovered at the end of the|||||0||||
|the period-end||||||||||||
||||reporting period(if any)|||||||||
|Shares held by the top 10 shareholders||||||||||||
|||||||||||Pledging or||
||||||||Amount of|||||
|||||Share||||||freezing||
|||Properties of|||||tradable shares|||||
|Shareholder name||||proportion|Quantity|||||Status||
|||shareholder|||||with Conditional||||Qua|
|||||%||||||of the||
||||||||held||||ntity|
|||||||||||shares||
|Hangzhou Steam Turbine Power Group Co., Ltd.||State-ownedlegal person||63.64%|479,824,800||479,824,800|||||
|BBH A/C 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 INDEX FUND||Foreign legalperson||0.46%|3,454,046||0|||||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||Foreign legalperson||0.35%|2,670,262||0|||||
|ISHARES CORE MSCI EMERGING MARKETS ETF||Foreign legalperson||0.34%|2,546,600||0|||||
|China Merchants Secutities(HK)Co., Ltd.||State-ownedlegal person||0.31%|2,319,872||0|||||
|Xia Zulin||DomesticNatural person||0.28%|2,147,400||0|||||
|CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD||Foreign legalperson||0.25%|1,905,960||0|||||
|CREDIT SUISSE AG HONG KONG BRANCH||Foreign legalperson||0.23%|1,729,759||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|||

The 3rd Quarterly Report 2017(Full Text)
|||||
|-|-|-|-|
|BBH A/C VANGUARD EMERGING MARKETS STOCK INDEXFUND|4,722,804|Foreign shares placed||
||||4,722,804|
|||in domestic exchange||
|NORGES BANK|4,303,675|Foreign shares placed||
||||4,303,675|
|||in domestic exchange||
|VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND|3,454,046|Foreign shares placed||
||||3,454,046|
|||in domestic exchange||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED|2,670,262|Foreign shares placed||
||||2,670,262|
|||in domestic exchange||
|ISHARES CORE MSCI EMERGING MARKETS ETF|2,546,600|Foreign shares placed||
||||2,546,600|
|||in domestic exchange||
|China Merchants Secutities(HK)Co., Ltd.|2,319,872|Foreign shares placed||
||||2,319,872|
|||in domestic exchange||
|Xia Zulin|2,147,400|Foreign shares placed||
||||2,147,400|
|||in domestic exchange||
|CHINA INT'L CAPITAL CORP HONG KONG SECURITIESLTD|1,905,960|Foreign shares placed||
||||1,905,960|
|||in domestic exchange||
|CREDIT SUISSE AG HONG KONG BRANCH|1,729,759|Foreign shares placed||
||||1,729,759|
|||in domestic exchange||
|Shenwan Hongyuan Securities(H.K)Co., Ltd.|1,368,900|Foreign shares placed||
||||1,368,900|
|||in domestic exchange||
||(1）It is unknown to the Company if there is any relationship among the top|||
||10 common share holders without restriction; (2) Hangzhou Steam Turbine|||
|Explanation on associated relationship or concerted action of the||||
||Group Co., Ltd. is not an action-in-concert” party with any of other|||
|above shareholders||||
||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)||||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
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
The 3rd Quarterly Report 2017(Full Text) 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|Proportionof thechange|Causes of change|
|Note receivable|631,626,005.81|479,716,321.62|31.67%|Mainly due to the notes receivable received inthe current period increased|
|Advance payments|359,433,917.88|202,184,858.83|77.77%|Mainly due to current advances to rawmaterials increased|
|Note payable|195,415,523.63|143,007,715.10|36.65%|Mainly due to increase in acceptance of currentperiod|
|Advances fromcustomers|2,396,631,380.02|1,827,959,793.62|31.11%|Mainly due to the current increase in the newcontract|
|Taxes and surchargespayable|18,561,605.50|90,239,673.16|-79.43%|Mainly due to there is no value-added tax at thebeginning of this period|
|Deferred income|9,357,937.15|5,422,895.00|72.56%|Mainly due to increase in financial subsidiesreceived in the current period|
|Income statementitems|End of term|Same period of lastterm|Scale ofchange|Remarks on the change|
|Operation income|2,589,226,220.63|2,241,834,391.89|15.50%|Mainly due to this issue will further strengthenthe market development efforts, increase thenumber of sales units|
|Operation cost|1,828,109,215.33|1,487,970,320.21|22.86%|Mainly due to the current operating incomeincreased year on year, the correspondingincrease in operating costs|
|Impairment loss onassets|95,749,825.99|166,025,332.68|-42.33%|Mainly due to the accounts receivable with longaging accounts are better recovered and baddebts are reduced|
|Investment income|106,730,672.88|21,938,936.95|386.49%|Mainly due to the current sale of Long Beachshares and received the formation of HangzhouBank dividend income increased|
|Cash flow statementItems|Amount in thereporting period|Same period of theprevious year , CNY|Proportionn f thechange|Causes of change|
|Cash flow generatedby businessoperation, net|199,924,781.38|361,060,410.70|-44.63%|Mainly due to cash paid for the purchase ofgoods in the current period increased year onyear|
|Net cash flow|-60,830,933.81|-460,559,408.37|86.79%|Mainly due to the net redemption and|

The 3rd Quarterly Report 2017(Full Text)
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|-|-|-|-|-|
|generated byinvestment||||investment income of the current financialproducts increased year on year|
|Net increasing ofcash and cashequivalents|89,725,778.97|-155,001,766.35|157.89%|Mainly due to the net cash flow from investingactivities increased during the current period|

II. Progress of Significant Events, their Influences and Analytical Notice on the Solutions
Not applicable
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 of 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
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
|August 31,|Onsite||Details are the relevant information disclosure|
|||Individual||
|2017|investigation||（http://www.cninfo.com.cn/）|

VIII. Outward Guarantee against the Regulations
Not applicable
IX. Non-operational Occupancy of theCompany’s Capital by the Controlling Shareholder and its Related Parties
Non-existence
X. Implementation of the social Responsibility of taking targeted measures to alleviate poverty in light of local Conditions.
In The report third quarter, the company neither carried out the work of taking targeted measures to alleviate
poverty in light of local conditions nor has such a plan.
The 3rd Quarterly Report 2017(Full Text) IV. Financial Statement
I. Financial statement
1. Consolidated balance sheet
Preparedby:：Hangzhou Steam Turbine Co., Ltd.
September 30, 2017
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Cash and bank balances|||
||984,763,338.31|895,037,559.34|
|Settlement provision|||
|Due from banks and other financial institutions|||
|Financial assets at fair value through profit or loss|||
|Derivative financial assets|||
|Notes receivable|||
||631,626,005.81|479,716,321.62|
|Account receivable|||
||1,890,911,988.49|1,870,173,348.32|
|Advance payments|||
||359,433,917.88|202,184,858.83|
|Premium receivable|||
|Reinsurance receivable|||
|Reserve for reinsurance receivable|||
|Interest receivable|||
|Dividend receivable|||
||6,900,000.00||
|Other receivable|||
||22,579,000.09|31,024,707.72|
|Securities purchased under agreements to resell|||
|Inventories|||
||2,157,037,005.13|1,901,544,358.26|
|Held-for-sale assets|||
|Current portion of non-current assets|||
|Other current asset|||
||1,051,506,201.41|863,018,479.59|
|Total of current assets|||
||7,104,757,457.12|6,242,699,633.68|
|Non-current assets：|||
|Loans and advances|||
|Available-for-sale financial assets|||
||2,881,452,766.48|3,060,865,862.60|
|Held-to-maturity investments|||
|Long-term receivable|||
|Long term share equity investment|||
|Property investment|||

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|Fixed assets|||
||581,548,823.90|615,922,109.91|
|Construction in progress|||
||174,101,684.00|153,743,889.41|
|Construction materials|||
|Fixed assets pending for disposal|||
|Productive biological assets|||
|Gas & petrol|||
|Intangible assets|||
||292,973,318.92|297,405,434.08|
|Research and Development Expenditures|||
|Goodwill|||
|Long-term prepaid expenses|||
||1,108,007.99|1,430,968.81|
|Deferred income tax|||
||188,266,892.69|178,831,809.85|
|Other non-current asset|||
|Total of non-current assets|||
||4,119,451,493.98|4,308,200,074.66|
|Total of assets|||
||11,224,208,951.10|10,550,899,708.34|
|Current liabilities|||
|Short-term bank loan facilities|||
||197,500,000.00|173,000,000.00|
|Borrowings from central bank|||
|Deposits and placements from other financial institutions|||
|Placement from banks and other financial institution|||
|Financial liabilities at fair value through profit and loss|||
|Derivative financial liabilities|||
|Notes payable|||
||195,415,523.63|143,007,715.10|
|Account payable|||
||1,105,169,157.59|853,452,589.51|
|Advances from customers|||
||2,396,631,380.02|1,827,959,793.62|
|Securities sold under agreement to repurchase|||
|Fees and commissions payable|||
|Payroll payable|||
||75,799,733.03|71,224,634.03|
|Taxes and surcharges payable|||
||18,561,605.50|90,239,673.16|
|Interest payable|||
|||134,376.32|
|Dividend payable|||
|Other payable|||
||30,637,671.56|30,820,980.80|
|Reinsurance amounts payable|||
|Provision of insurance contract|||
|Securities brokering|||
|Securities underwriting|||

The 3rd Quarterly Report 2017(Full Text)
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|-|-|-|
|Held-for-sale liabilities|||
|Current portion of non-current liabilities|||
||18,200,000.00|18,500,000.00|
|Other current liability|||
|Total of current liability|||
||4,037,915,071.33|3,208,339,762.54|
|Non-current liabilities：|||
|Long-term bank loan facilities|||
||4,900,000.00|4,900,000.00|
|Bond payable|||
|Including：preferred stock|||
|Perpetual capital securities|||
|Long-term payable|||
||208,330,000.00|208,357,733.33|
|Long-term employee benefits payable|||
|Grants payable|||
|Provisions|||
|Deferred income|||
||9,357,937.15|5,422,895.00|
|Deferred tax liabilities|348,128,435.30|378,256,646.95|
|Other non-current liabilities|||
|Total non-current liabilities|||
||570,716,372.45|596,937,275.28|
|Total of liability|4,608,631,443.78|3,805,277,037.82|
|Equity|||
|Share capital|754,010,400.00|754,010,400.00|
|Other equity instrument|||
|Including：preferred stock|||
|Perpetual capital securities|||
|Reserves|||
||139,540,528.72|139,590,345.09|
|Less: treasury shares|||
|Other comprehensive income|||
||1,966,732,271.08|2,137,419,299.84|
|Specialized reserve|||
||27,054,040.21|27,546,353.37|
|Surplus reserves|||
||621,112,807.78|621,112,807.78|
|General risk reserve|||
|Retained earnings|2,769,660,618.32|2,705,667,037.15|
|Equity contributable to parent company|||
||6,278,110,666.11|6,385,346,243.23|
|Minority interests|||
||337,466,841.21|360,276,427.29|
|Total equity|||
||6,615,577,507.32|6,745,622,670.52|
|Total liabilities and equity|||
||11,224,208,951.10|10,550,899,708.34|

Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao
The 3rd Quarterly Report 2017(Full Text) 2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Cash and bank balances|421,340,324.19|293,454,126.93|
|Financial assets at fair value through profit or loss|||
|Derivative financial assets|||
|Notes receivable|350,159,893.86|269,527,716.22|
|Account receivable|1,359,168,529.95|1,424,950,696.58|
|Advance payments|194,016,464.86|115,383,408.34|
|Interest receivable|||
|Dividend receivable|6,900,000.00||
|Other receivable|6,607,402.36|68,004,706.24|
|Inventories|1,678,989,682.85|1,446,652,799.71|
|Held-for-sale assets|||
|Current portion of non-current assets|||
|Other current asset|705,331,300.24|600,000,000.00|
|Total of current assets|4,722,513,598.31|4,217,973,454.02|
|Non-current assets：|||
|Available-for-sale financial assets|2,840,693,076.90|3,020,106,173.02|
|Held-to-maturity investments|||
|Long-term receivable|||
|Long term share equity investment|502,919,378.03|502,919,378.03|
|Property investment|||
|Fixed assets|274,298,601.26|315,900,380.66|
|Construction in progress|103,519,757.21|94,170,909.99|
|Construction materials|||
|Fixed assets pending for disposal|||
|Productive biological assets|||
|Gas & petrol|||
|Intangible assets|172,814,800.34|173,826,293.57|
|Research and Development Expenditures|||
|Goodwill|||
|Long-term prepaid expenses|507,773.78|507,773.78|

The 3rd Quarterly Report 2017(Full Text)
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|-|-|-|
|Deferred income tax|141,860,065.82|133,581,773.70|
|Other non-current asset|||
|Total of non-current assets|4,036,613,453.34|4,241,012,682.75|
|Total of assets|8,759,127,051.65|8,458,986,136.77|
|Current liabilities|||
|Short-term bank loan facilities|100,000,000.00|100,000,000.00|
|Financial liabilities at fair value through profit and loss|||
|Derivative financial liabilities|||
|Notes payable|5,000,000.00||
|Account payable|677,239,078.34|486,810,046.42|
|Advances from customers|1,786,049,944.76|1,476,780,338.78|
|Payroll payable|41,888,478.82|44,035,408.19|
|Taxes and surcharges payable|2,876,061.30|64,247,326.24|
|Interest payable|||
|Dividend payable|||
|Other payable|14,438,407.90|21,562,998.72|
|Held-for-sale liabilities|||
|Current portion of non-current liabilities|||
|Other current liability|||
|Total of current liability|2,627,491,971.12|2,193,436,118.35|
|Non-current liabilities：|||
|Long-term bank loan facilities|||
|Bond payable|||
|Including：preferred stock|||
|Perpetual capital securities|||
|Long-term payable|||
|Long-term employee benefits payable|||
|Grants payable|||
|Provisions|||
|Deferred income|2,547,016.05||
|Deferred income tax|348,128,435.30|378,256,646.95|
|Other non-current liabilities|||
|Total of Non-current liabilities|350,675,451.35|378,256,646.95|
|Total liability|2,978,167,422.47|2,571,692,765.30|
|Equity|||
|Share capital|754,010,400.00|754,010,400.00|

The 3rd Quarterly Report 2017(Full Text)
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|-|-|-|
|Other equity instrument|||
|Including：preferred stock|||
|Perpetual capital securities|||
|Reserves|138,953,250.09|138,953,250.09|
|Less: treasury shares|||
|Other comprehensive income|1,967,073,624.13|2,137,800,156.80|
|Specialized reserve|10,820,835.88|10,874,033.85|
|Surplus reserves|602,356,402.65|602,356,402.65|
|Retained earnings|2,307,745,116.43|2,243,299,128.08|
|Total equity|5,780,959,629.18|5,887,293,371.47|
|Total liabilities and equity|8,759,127,051.65|8,458,986,136.77|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 3.Consolidated Income statement of the Report period
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Revenue|||
||925,501,518.37|874,410,620.01|
|Including: business revenue|||
||925,501,518.37|874,410,620.01|
|Interest income|||
|Premiums earned|||
|Fees and commissions income|||
|II. Total operating cost|||
||912,082,177.92|898,062,001.19|
|Including: Cost of sales|||
||635,724,163.85|637,032,414.17|
|Interest expense|||
|Fees and commissions expense|||
|Cash surrender amount|||
|Net expenses of claim settlement|||
|Net provisions for insurance contract reserves|||
|Policy dividend expenses|||
|Reinsurance expenses|||
|Business taxes and surcharges|||
||2,186,397.87|8,329,543.14|
|Selling expenses|||
||39,315,517.86|36,730,806.87|
|Administrative expense|||
||170,150,543.55|173,854,590.33|
|Financial expenses|||
||4,334,132.88|1,708,950.17|

The 3rd Quarterly Report 2017(Full Text)
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|-|-|-|
|Impairment loss on assets|||
||60,371,421.91|40,405,696.51|
|Add: Gain from fair-value changes(“-“for loss)|||
|Investment income(“-“for loss)|||
||17,742,166.35|6,893,602.33|
|Including: investment income from associates and joint|||
|ventures|||
|Gain on foreign exchange(“-“for loss)|||
|Other income|||
|III. Operating profit（“-”for loss）|||
||31,161,506.80|-16,757,778.85|
|Add:Non-operating income|||
||5,218,527.80|3,051,550.49|
|Including：Gains from disposal of non-current assets|||
||2,555,740.94|100.00|
|Less：Non business expenses|||
||-1,537,490.37|1,480,307.99|
|Incl：Loss from disposal of non-current assets|||
||12,090.90|470.20|
|IV. Profit before tax(“-“for loss)|||
||37,917,524.97|-15,186,536.35|
|Less: Income tax expense|||
||-668,029.80|3,171,756.19|
|V. Net profit (“-“for net loss)|||
||38,585,554.77|-18,358,292.54|
|Net profit attributable to the owners of parent company|||
||19,997,776.79|-29,088,489.63|
|Minority interests|||
||18,587,777.98|10,730,197.09|
|VI. Other comprehensive income after tax|||
||-152,355,402.50|18,461.17|
|Net of profit of other comprehensive income attributable to|||
||-152,071,929.42|7,860.70|
|owners 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 de|||
|bt or net assets|||
|2.Other comprehensive income under the equity method investe|||
|e can not be reclassified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be reclassified into profit|-152,071,929.42|7,860.70|
|or loss.|||
|1.Other comprehensive income under the equity method investe|||
|e can be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale|||
||-151,861,722.43||
|financial assets|||
|3.Held-to-maturity investments reclassified to gains and losses|||
|of available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|5.Translation differences in currency financial statements|||
||-210,206.99|7,860.70|
|6.Other|||
|Net|||
|after-tax of other comprehensive income attributable to Minorit|||
||-283,473.08|10,600.47|
|y shareholders’ equity|||
|VII. Total comprehensive income|||
||-113,769,847.73|-18,339,831.37|
|Total comprehensive income attributable to the owner of the|||
||-132,074,152.63|-29,080,628.93|
|parent company|||
|Total comprehensive income attributable minority|||
||18,304,304.90|10,740,797.56|
|shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|||
||0.027|-0.039|
|(II)Diluted earnings per share|||
||0.027|-0.039|

 Legal Representative:Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 4.Income statement of the Parent Company of the Report period
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Revenue|621,115,493.86|562,290,961.03|
|Less：Business cost|469,564,314.90|469,793,908.17|
|Business tax and surcharge|-1,059,866.18|5,993,416.83|
|Selling expenses|24,919,849.58|21,188,962.01|
|Administrative expense|103,779,136.81|105,829,118.79|
|Financial expenses|2,694,873.23|166,594.21|
|Impairment loss on assets|56,967,035.94|40,004,378.53|
|Add: Gain from fair-value changes(“-“for loss)|||
|Investment income(“-“for loss)|17,628,312.14|15,582,740.93|
|Including: investment income from associates and joint ventures|||
|Other income|||
|II. Operational profit（“-”for loss）|-18,121,538.28|-65,102,676.58|
|Add:Non-operating income|4,448,135.30|1,622,587.10|
|Including：Gains from disposal of non-current assets|2,555,740.94||
|Less:Non-operating expenses|-1,618,696.05|714,604.52|

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|Incl：Loss from disposal of non-current assets|||
|IV. Profit before tax(“-“for loss)|-12,054,706.93|-64,194,694.00|
|Less: Income tax expense|-3,501,175.09|-11,099,901.06|
|V. Net profit (“-“for net loss)|-8,553,531.84|-53,094,792.94|
|VI.Net of profit of other comprehensive income|-151,861,722.43||
|（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 o|-151,861,722.43||
|r 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 fi|||
||-151,861,722.43||
|nancial 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|-160,415,254.27|-53,094,792.94|
|VII. Earnings per share：|||
|（I）Basic earnings per share|-0.011|-0.070|
|(II)Diluted earnings per share|-0.011|-0.070|

 Legal Representative: Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 5. Consolidated Income statement between the beginning of the year and end of the report period
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Revenue|||
||2,589,226,220.63|2,241,834,391.89|
|Including：Operating income|||
||2,589,226,220.63|2,241,834,391.89|
|Interest income|||

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|||
||2,602,813,222.01|2,314,529,335.97|
|Including：Operating cost|||
||1,828,109,215.33|1,487,970,320.21|
|Interest expense|||
|Commission chare and commission expense|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|||
||20,922,948.45|16,752,794.01|
|Selling expenses|||
||121,189,533.71|112,598,400.85|
|Administrative expense|||
||524,562,321.36|528,961,508.88|
|Financial expenses|||
||12,279,377.17|2,220,979.34|
|Asset impairment loss|||
||95,749,825.99|166,025,332.68|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|||
||106,730,672.88|21,938,936.95|
|Incl: investment gains from affiliates|||
|Gains from currency exchange（“-”for loss）|||
|Other income|||
|III. Operational profit（“-”for loss|||
||93,143,671.50|-50,756,007.13|
|Add：Non-business income|||
||9,773,377.68|9,896,312.51|
|Incl：Gains from disposal of non-current assets|||
||2,752,651.04|17,399.04|
|Less：Non business expenses|||
||-1,257,699.24|3,438,002.64|
|Incl：Loss from disposal of non-current assets|||
||28,447.58|181,669.06|
|IV.Total profit(“-”for loss)|||
||104,174,748.42|-44,297,697.26|
|Less：Income tax expenses|||
||5,860,337.77|337,824.85|
|V. Net profit（“-”for net loss|||
||98,314,410.65|-44,635,522.11|
|Net profit attributable to the owners of parent company|||
||63,993,581.17|-60,340,727.82|
|Minority shareholders’ equity|||
||34,320,829.48|15,705,205.71|
|VI. Net after-tax of Other comprehensive income|||
||-170,633,756.07|899,931.08|
|Net after-tax|||
||-170,687,028.76|383,187.06|
|of other comprehensive income attributable to owners of the pa|||

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|rent 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 de|||
|bt or net assets|||
|2.Other comprehensive income under the equity method investe|||
|e can not be reclassified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be reclassified into profit|-170,687,028.76|383,187.06|
|or loss.|||
|1.Other comprehensive income under the equity method investe|||
|e can be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale|||
||-170,726,532.67||
|financial assets|||
|3.Held-to-maturity investments reclassified to gains and losses|||
|of available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|||
||39,503.91|383,187.06|
|6.Other|||
|Net|||
|after-tax of other comprehensive income attributable to Minorit|||
||53,272.69|516,744.02|
|y shareholders’ equity|||
|VII. Total comprehensive income|||
||-72,319,345.42|-43,735,591.03|
|Total comprehensive income attributable to the owner of the|||
||-106,693,447.59|-59,957,540.76|
|parent company|||
|Total comprehensive income attributable minority|||
||34,374,102.17|16,221,949.73|
|shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|||
||0.085|-0.080|
|(II)Diluted earnings per share|||
||0.085|-0.080|

 Legal Representative:Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 6.Profit Statement of the Parent Between the Beginning of the Year and End of the Report Period
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|I.Revenue|1,737,260,574.47|1,435,991,350.39|
|Less：Business cost|1,318,546,461.50|1,015,911,250.13|
|Business tax and surcharge|7,296,536.20|10,794,084.24|
|Selling expenses|74,276,730.74|69,052,768.19|
|Administrative expense|353,927,864.76|335,119,956.57|
|Financial expenses|8,841,881.84|-1,276,257.31|
|Asset impairment loss|84,610,943.77|152,020,358.27|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|158,941,964.67|94,396,560.64|
|Incl: investment gains from affiliates|||
|Other income|||
|II. Operational profit|48,702,120.33|-51,234,249.06|
|Add：Non-business income|5,860,749.25|1,640,400.14|
|Incl：Gains from disposal of non-current assets|2,555,740.94|17,299.04|
|Less：Non business expenses|-1,604,826.65|1,470,302.28|
|Incl：Loss from disposal of non-current assets|1,824.00|10,000.00|
|III.Total profit|56,167,696.23|-51,064,151.20|
|Less：Income tax expenses|-8,278,292.12|-20,533,921.33|
|IV. Net profit|64,445,988.35|-30,530,229.87|
|V. Net after-tax of Other comprehensive income|-170,726,532.67||
|（I）Other comprehensive income items that will not be|||
|reclassified into gains/losses in the subsequent accounting|||
|period|||
|1.Re-measurement of defined benefit plans of changes in net de|||
|bt or net assets|||
|2.Other comprehensive income under the equity method investe|||
|e can not be reclassified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be reclassified into profit|-170,726,532.67||
|or loss.|||
|1.Other comprehensive income under the equity method investe|||
|e can be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale|||
||-170,726,532.67||
|financial assets|||
|3.Held-to-maturity investments reclassified to gains and losses|||
|of available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|5.Translation differences in currency financial statements|||
|6.Other|||
|VI.Total comprehensive income|-106,280,544.32|-30,530,229.87|
|VII.Earnings per share|||
|（I）Basic earnings per share|0.085|-0.040|
|(II)Diluted earnings per share|0.085|-0.040|

 Legal Representative:Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period 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|||
||2,568,093,696.92|2,205,347,661.82|
|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|||
||14,404,590.75|6,238,100.28|
|Other cash received from business operation|||
||17,353,241.43|20,878,728.24|
|Sub-total of cash inflow|||
||2,599,851,529.10|2,232,464,490.34|
|Cash paid for purchasing of merchandise and services|||
||1,552,659,985.01|1,092,177,371.39|
|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|||

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|Cash paid to staffs or paid for staffs|||
||516,677,860.36|503,817,181.35|
|Taxes paid|||
||204,017,110.68|144,485,145.93|
|Other cash paid for business activities|||
||126,571,791.67|130,924,380.97|
|Sub-total of cash outflow from business activities|||
||2,399,926,747.72|1,871,404,079.64|
|Cash flow generated by business operation, net|||
||199,924,781.38|361,060,410.70|
|II.Cash flow generated by investing|||
|Cash received from investment retrieving|||
||87,259,813.79||
|Cash received as investment gains|||
||99,830,672.88|21,938,936.95|
|Net cash retrieved from disposal of fixed assets, intangible assets, and other|||
||16,449,715.72|17,000.00|
|long-term assets|||
|Net cash received from disposal of subsidiaries or other operational units|||
|Other investment-related cash received|||
||2,862,767,338.00|988,800,000.00|
|Sub-total of cash inflow due to investment activities|||
||3,066,307,540.39|1,010,755,936.95|
|Cash paid for construction of fixed assets, intangible assets and other long-term|||
||-19,054,636.97|63,172,558.56|
|assets|||
|Cash paid as investment|||
||100,243,111.17|39,442,786.76|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|||
||3,045,950,000.00|1,368,700,000.00|
|Sub-total of cash outflow due to investment activities|||
||3,127,138,474.20|1,471,315,345.32|
|Net cash flow generated by investment|||
||-60,830,933.81|-460,559,408.37|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|||706,350.00|
|Incl: Cash received as investment from minor shareholders|||
|Cash received as loans|||
||114,500,000.00|121,402,502.11|
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from financing activities|||
||114,500,000.00|122,108,852.11|
|Cash to repay debts|||
||90,300,000.00|134,036,536.05|
|Cash paid as dividend, profit, or interests|||
||46,822,775.75|48,316,260.75|
|Incl: Dividend and profit paid by subsidiaries to minor shareholders|||
|Other cash paid for financing activities|||
||20,928,500.18||
|Sub-total of cash outflow due to financing activities|||
||158,051,275.93|182,352,796.80|
|Net cash flow generated by financing|||
||-43,551,275.93|-60,243,944.69|
|IV. Influence of exchange rate alternation on cash and cash equivalents|||
||-5,816,792.67|4,741,176.01|

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|V.Net increase of cash and cash equivalents|||
||89,725,778.97|-155,001,766.35|
|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|||
||984,763,338.31|596,595,029.89|

 Legal Representative:Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|1,571,897,429.24|1,323,738,157.07|
|Tax returned|1,250,418.38|359,071.25|
|Other cash received from business operation|7,165,542.91|10,169,189.04|
|Sub-total of cash inflow|1,580,313,390.53|1,334,266,417.36|
|Cash paid for purchasing of merchandise and services|1,003,979,797.77|633,403,646.46|
|Cash paid to staffs or paid for staffs|355,704,642.77|350,255,025.51|
|Taxes paid|104,637,532.52|49,736,744.31|
|Other cash paid for business activities|44,601,771.76|41,745,681.57|
|Sub-total of cash outflow from business activities|1,508,923,744.82|1,075,141,097.85|
|Cash flow generated by business operation, net|71,389,645.71|259,125,319.51|
|II.Cash flow generated by investing|||
|Cash received from investment retrieving|78,558,351.80||
|Cash received as investment gains|152,041,964.67|94,396,560.64|
|Net cash retrieved from disposal of fixed assets, intangible assets,|||
||16,038,461.54|16,900.00|
|and other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational|||
|units|||
|Other investment-related cash received|1,815,992,395.89|430,000,000.00|
|Sub-total of cash inflow due to investment activities|2,062,631,173.90|524,413,460.64|
|Cash paid for construction of fixed assets, intangible assets|||
||42,300,701.68|46,790,472.41|
|and other long-term assets|||
|Cash paid as investment|100,000,000.00|39,442,786.76|
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|1,855,000,000.00|820,000,000.00|
|Sub-total of cash outflow due to investment activities|1,997,300,701.68|906,233,259.17|

The 3rd Quarterly Report 2017(Full Text)
||||
|-|-|-|
|Net cash flow generated by investment|65,330,472.22|-381,819,798.53|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans||19,402,502.11|
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from financing activities||19,402,502.11|
|Cash to repay debts||19,486,536.05|
|Cash paid as dividend, profit, or interests|2,549,722.22|2,610,507.34|
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to financing activities|2,549,722.22|22,097,043.39|
|Net cash flow generated by financing|-2,549,722.22|-2,694,541.28|
|IV. Influence of exchange rate alternation on cash and cash|||
||-6,284,198.45|3,130,773.23|
|equivalents|||
|V.Net increase of cash and cash equivalents|127,886,197.26|-122,258,247.07|
|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|421,340,324.19|265,657,955.72|

 Legal Representative:Zheng Bin Person in charge ofaccounting：Pu Yangshuo Accounting Dept Leader: Zhao Jiamao II.Auditor‘s report
Whether the Q3 report is audited
The Q3 Report is not audited.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
October 25, 2017
The 3rd Quarterly Report 2017(Full Text)