Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2014-33
Hangzhou Steam Turbine Co., Ltd.
Semiannual Report 2014 Summary
Important Prompt
This Summary is abstracted from the full text of the Interim Report 2014. For details of the contents please go to www.cninfo.com.cn or the official website of Shenzhen Stock Exchange.
1. Company profile
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|Stock ID|Hangqilun B|Stock Code|
|Stock ID changed|None||
|Stock Exchange listed in|Shenzhen Stock Exchange||
|Liaisons|Secretary of the Board|Representative of Stock Affairs|
|Name|Yu Changquan|Wang Gang|
|Tel.|||
|Fax.|||
|Email.|ychq@htc.cnychq@htc.cn|wg@htc.cnwg@htc.cn|

2. Main Financial Information and Change of Shareholders
(1) Financial highlights
Are there any retrospective adjustment or restatement of financial information of previous year due to change of accounting policies or correcting of accounting errors?
No
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||||Increase/decrease|
||This report term|Same period last year||
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|Turnover (RMB)||||
|Net profit attributable to shareholders of the listed||||
|company (yuan)||||
|Net profit attributable to the shareholders of the||||
|listed company and after deducting of||||
|non-recurring gain/loss(RMB)||||
|Net Cash flow generated by business operation||||
|(RMB)||||
|Basic earnings per share (Yuan/share)||||
|Diluted earnings per share (Yuan/share)||||
|Net income on asset, weighted||||
||||Changed at end of|
||||report period over|
||Ended this report term|End of prev. year||
||||end of previous|
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|Gross Assets (RMB)||||
|Net asset attributable to owners of the PLC||||

(2) The top 10 holders of common shares
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary
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|Total common shareholders at the end of the|||||||
|report period|||||||
|Top 10 common share holders|||||||
|||||Amount of|Frozen or pledged||
||Properties of|Share|Amount of||||
|Name of the shareholder||||unconditional shares|Status of||
||shareholder|proportion %|shares|||Amount|
|||||held|shares||
|Hangzhou Steam Turbine Power Group Co.,Ltd.|State-ownedlegal person||||||
|NORGES BANKNORGES BANK|Overseaslegal person||||||
|GIC PRIVATE LIMITEDGIC PRIVATELIMITED|Overseaslegal person||||||
|Li Minggong|Overseasnatural person||||||
|BOCHK INVESTMENT FUNDS-BOCHKCHINA GOLDEN DRAGON FUNDBOCHKINVESTMENT FUNDS-BOCHK CHINAGOLDEN DRAGON FUND|Overseaslegal person||||||
|AUSTRALIANSUPER PTYLTDAUSTRALIANSUPER PTY LTD|Overseaslegal person||||||
|Xia Zulin|Domesticnatural person||||||
|KGI ASIA LIMITEDKGI ASIA LIMITED|Overseaslegal person||||||
|VANGUARD TOTAL INTERNATIONALSTOCK INDEX FUND|Overseaslegal person||||||
|Zhu Guanhong|Domesticnatural person||||||
|||(1) Hangzhou Steam Power Group Co., Ltd. is the state-owned|||||
|||shareholder of the Company, all of the other owners are B-share|||||
|||holders.|||||
|Notes to relationship or “action in concert” among the top ten||(2) There is no relationship between Hangzhou Steam Turbine Power|||||
|shareholders.||Group Co., Ltd. and other shareholders;|||||
|||(3) None of HSTG or other shareholders is “acting-in-concert” as|||||
|||described by “Administration Rules of Information Disclosure on|||||
|||Change of Shareholding Position”|||||
|Particulars about shareholders take part in financing and stock|||||||
|||Not applicable|||||
|financing business|||||||

(2) The top 10 preference share holders
No preference shareholders of the Company in the report period.
(2) Changing of controlling shareholder and practical controller of the Company
Change of holding shareholder
No changes in holding shareholder or substantial controller in the report period.
3. Management analyze
In the
1st
half of 2014, the world economy was showing a state of uncertain and imbalance. The leading
economies was recovering but at a speed lower than expectation, while the new-coming economies were slowing down. Chinese government was slowing down the development initiatively and turned to deepening of structural adjustment. In the report period, domestic industrial investment was descending continuously, the large scale equipment business was facing severe challenge of the weakened market demand.
Under the impact of macro economy, the downstream industries were in the process of productivity reducing and
inventory dumping. Investment in new productivities was obviously slowing down. Great uncertainty and delay of
investment projects have brought a more complex environment to the Company.
The management was fully aware of the difficulties and challenges the Company was facing. A series of strategies
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary were carried further, i.e. expanding of industrial chain, international and differentiation strategy, and parallel developing of production and service providing. A number of measurements were implemented regarding enhancing of technical innovation, improving of marketing system, promoting of finest quality projects,
deepening of fine management, lifting of operation efficiency, and reinforcing of risk administration. Somehow the business operation was in a steady pace.
In the report period, the Company has realized turnover of RMB1,743,362,600, a13.68% of decrease YoY; total profit of RMB267,376,000, a20.53% of decrease YoY; net profit of RMB227,702,100, a21.15% of decrease YoY; and net profit attributable to owners of the listed company of RMB196,174,900, a15.78% of decrease YoY. Progress reviewing of the business plans disclosed in previous periodic report
1. Keep on technical innovation. In the report period, the Company launched 100K class air separation project, water supply for million class power plant, water pumping steam turbine for nuclear power plant, and key unites of residual thermal turbine; accelerated development of high power low-pressure turbine, launched research of large steam turbine module, as well as the development of first organic agent residual thermal power industrial steam turbine.
TheR&D project of steam turbine for million scale ethylene equipment was awarded the 1st prize by Provincial Department of Machinery Industry, and 1st prize of China Petroleum Group for technical progress. The Steam Turbine Rotator Dynamic Research, which is a provincial project, was completed and passed in the acceptance test.
Government subsidies were awarded to the Company for its significant contributions to producing of national standard for the whole industry. A number of technical researches were conducted in the report period. 12 applications were raised for patents, and 5 patents were granted.
2. Market exploring. As impacted by the overall market situation, theCompany’s accepting of new orders was declining. However the Company has reinforced its share in the market of coal chemistry, thermal power, air conductor, and petroleum chemistry against its advantages in technologies and reputation. Winning of the contract for the 1st installation of 100K air separation device for Shenhua Ningmei is a symbol of theCompany’s invading of the field of large air separation equipment of coal chemistry industry.
Back-pressure steam turbines, theCompany’s product, are well accepted in the power plant field and under further promotion. Facing severe competition in this field, the Company was doing its best in expanding sales and lifting service value.
Along with the economic recovering of developing countries, the Company has reinforced marketing approach in overseas markets. On the other side, the Company got no new orders in the gas turbine area, which was suffering from continuous deficit of metallurgy industry. However the gas turbines in operation has contributed RMB40 million of turnover from service providing. Compressor products were in cultivating stage and not yet making steady profit.
3. Pursuing of management upgrading. In the report period, the Company has been reinforcing internal management, and increasing operational and economical efficiency. Great efforts have been paid on responsibility management regarding quality control, cost, and receivable account retrieving, etc.
Continuous inspection and evaluation were performed on key performances with reference to industrial standards. The Company has been combining resources, enhancing supply chains, and regulating process control to meet with the requirements of complex product composition, short product circle, and frequent change of market trend. Furthermore, the Company was continuously refining its production system, supply management, and business process. Information technologies were further applied in management approaches. The 1st phase of PLM project was carried out smoothly and will was expected to be put into operation recently. Great effort in energy saving resulted a6.98% of decrease in energy consuming per 100 million turnover.
4. Accelerating of major projects. As one of the major construction projects in the 12th 5-year-plan, Steam Turbine Heavy Industry has accomplished its land purchasing, primary design, technical verification, and initial assessment. It is in overall designing and planning stage at present.R&D building, the other major construction project, has finished its primary design up to present.
The Company laid great attention on assessment and implementation of these major projects, for they will be providing solid foundation for future development.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Summary 4. Issues involve with financial reports
(1) Statement on changes of accounting policies, accounting estimations, and accounting basis comparing with the last fiscal year
No changes of accounting policies, accounting estimations, and accounting basis comparing with the last fiscal year
(2) Statement on correcting of material accounting error and retrospective adjustment
No retrospective correction of material accounting error in the report period.
(3) Statement on change of consolidation range comparing with the previous fiscal year
No change of consolidation range in the report period.
(4) Statement of the Board and the Supervisory Committee on the Non-standardAuditors’ Report issued by the CPA.
Not applicable
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Nie Zhonghai
August 18, 2014