2014 Quarterly Three Report of Wuhan Boiler Company Limited WUHAN BOILER COMPANY LIMITED
2014 QUARTERLY THREE REPORT
2014-085
October 2014
2014 Quarterly Three Report of Wuhan Boiler Company Limited Section I Important Notes
The Board of Directors, the Board of Supervisors as well as all Board Directors, Supervisors and Senior Management of Wuhan Boiler Company Limited (hereinafter referred to as “the Company”) hereby warrant that this Report is authentic, accurate and complete without any misstatement, misleading statement or material omission and will take individual and joint and several liabilities for that.
All Board Directors attended the Board Meeting for reviewing this Report.
Mr. Yeung Kwok Wei Richard, the Company Principal, Mr. Chin Wee Hua, the Accounting Principal, and Mr. Li Yihao, the AccountingDivision’s Principal (Accounting Manager), hereby ensure that the Financial Statements enclosed in this Report are authentic, accurate and complete.
1. Because the audited net profits and closing net assets for three consecutive accounting years of 2011, 2012 and 2013 are negative, Shenzhen Stock Exchange has decided to suspend the listing of theCompany’s stock starting from May 16, 2014 according to Article 14.1.1 and 14.1.2 of the Stock Listing Rules of Shenzhen Stock Exchange (revised version 2012). The announcement of listing suspension decision was disclosed on Securities Times and Ta Kung Pao on May 14, 2014 with No. 2014-049.
2. The Board of Directors has taken positive actions to improve operation, and has explored all possibilities to prevent delisting risk. ThreeShareholders’ Meetings were convened to approve the Debt-to-equity Conversion Plan on November 23, 2012, December 17, 2012 and May 23, 2014 respectively. However, the Plan was not approved by theShareholders’ Meeting for 3 times.
3. The Company disclosed 2014 Interim Report on August 29, 2014. In the first half year of 2014, net profit attributable to shareholders of the Company was RMB 8,214,639.10, net profit attributable to shareholders of the Company after deducting non-recurring gains and losses was RMB 7,868,973.11 and net asset attributable to shareholders of the Company was RMB -1,355,276,203.03.
4. From the year beginning to the end of the report period, net profit attributable to shareholders of the Company was RMB -79,948,213.21, net profit attributable to shareholders of the Company after deducting non-recurring gains and losses was -81,180,499.79 and net asset attributable to shareholders of the Company was RMB -1,443,439,055.34.
5. In order to satisfy the criteria for resuming the listing of theCompany’s stocks, pursuant to the Stocks Listing Rules of Shenzhen Stock Exchange (revised version 2012), theCompany’s financial data in the year of 2014 shall satisfy, at least both of the below criteria: (i) net asset value as of the end of fiscal period shall be positive; and (ii) net profit shall be positive before and after deducting non-recurring profit and loss. If the Company fails to meet the requirements for listing resumption, the stock of the Company will be delisted according to Article 14.3.1 of the Stock Listing Rules of Shenzhen Stock Exchange (revised version 2012). The Board of Directors hereby reminds investors of investment risks.
2014 Quarterly Three Report of Wuhan Boiler Company Limited Section II Major Financial Data& Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error?
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||Sep. 30, 2014||Dec. 31, 2013||Increase/decrease (%)||
|Total assets (RMB Yuan)|1,187,541,068.40||1,339,647,873.78||-11.35%||
|Owners’ equity attributable to|-1,443,439,055.34||-1,363,490,842.13||-5.86%||
|shareholders of the Company|||||||
|(RMB Yuan)|||||||
|||Increase/decrease (%) as||||Increase/decrease (%) as|
||Jul. – Sep. 2014|compared to same||Jan. – Sep. 2014||compared to same|
|||period last year||||period last year|
|Gross operating revenues (RMB|184,927,280.14|0.64%||681,825,439.66||5.54%|
|Yuan)|||||||
|Net profit attributable to|-88,162,852.31|-237.86%||-79,948,213.21||-27.85%|
|shareholders of the Company|||||||
|(RMB Yuan)|||||||
|Net profit attributable to|-89,049,472.90|-239.50%||-81,180,499.79||-23.92%|
|shareholders of the Company|||||||
|after deducting non-recurring|||||||
|gains and losses (RMB Yuan)|||||||
|Net cash flow from operating||||423,450,466.89||2237.87%|
||--|--|||||
|activities (RMB Yuan)|||||||
|Basic EPS (RMB Yuan/share)|-0.30|-237.86%||-0.27||-27.85%|
|Diluted EPS (RMB Yuan/share)|-0.30|-237.86%||-0.27||-27.85%|
|The weighted average ROE|-6.37%|-4.34%||-5.79%||-0.64%|

 Items and amounts of non-recurring gains and losses
√Applicable□Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sep. 2014|Explanation|
|Gains/losses on the disposal of non-current assets (including|126,944.11|Gain/loss on disposal of fixedassets|
|the offset part of asset impairment provisions)|||
|Government grants recognized in the current period, except|1,108,332.00|DHDZ Finance Bureau’s Industrial|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|for those acquired in the ordinary course of business or||Rapid Growth contribution award;municipality finance bureau’sforeign trade award; Talents PlanCapital in 2013 and deferredrevenue related to new factory landuse right|
|granted at certain quotas or amounts according to the|||
|country’s unified standards|||
|Other non-operating income and expenses other than the|-2,989.53|Others|
|above|||
|Total|1,232,286.58|--|

Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Public Listed Companies– Non-recurring Gains and Losses, or classifies any non-recurring gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□Applicable√Inapplicable
In the report period, the Companydidn’t classify any non-recurring gain/loss item defined or mentioned in the Explanatory Announcement No. 1 on Information Disclosure for Public Listed Companies– Non-recurring Gains and Losses as a recurrent gain/loss item.
II. Total number of shareholders at the period-end and shareholdings of the top ten shareholders
1. Total number of shareholders with common shares and shareholdings of the top ten shareholders with common shares at the period-end
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of shareholders with common shares at the period-end||||7,688||||
|Shareholdings of the top ten shareholders with common shares||||||||
||||||Number of the|Pledged or frozen shares||
|||Shareholding|Number of the|||||
|Name of shareholder|Nature of shareholder||||non-tradable|Status of|Number of|
|||percentage|shares held|||||
||||||shares held|shares|shares|
|ALSTOM (CHINA)INVESTMENT CO., LTD|Domestic non-state-ownedcorporation|51.00%|151,470,000||151,470,000|||
|WUHAN BOILER GROUPCO., LTD|State-owned corporation|6.91%|20,530,000||20,530,000|||
|WANG XIAO|Domestic natural person|0.90%|2,672,800||0|||
|CHEN PENG|Domestic natural person|0.79%|2,331,545||0|||
|HU ZHIHONG|Domestic natural person|0.47%|1,390,397||0|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|CHINA MERCHANTSSECURITIES (HK) CO.,LTD.|State-owned corporation||0.46%|1,380,236|0||
|CHEN CHUYUN|Domestic natural person||0.46%|1,372,450|0||
|HSBC BROKINGSECURITIES (ASIA)LIMITED-CLIENTS A/C|Foreign corporation||0.40%|1,195,114|0||
|ZHUANG CHANGXIONG|Domestic natural person||0.35%|1,045,000|0||
|SUN WEIWEI|Domestic natural person||0.33%|966,567|0||
|Shareholdings of the top ten shareholders with tradable shares|||||||
|||Number of tradable|Type of shares||||
|Name of shareholder|||||||
|||shares held|Type|||Number|
|WANG XIAO||2,672,800|Domestically listed foreign shares|||2,672,800|
|CHEN PENG||2,331,545|Domestically listed foreign shares|||2,331,545|
|HU ZHIHONG||1,390,397|Domestically listed foreign shares|||1,390,397|
|CHINA MERCHANTSSECURITIES (HK) CO., LTD.||1,380,236|||||
||||Domestically listed foreign shares|||1,380,236|
|CHEN CHUYUN||1,372,450|Domestically listed foreign shares|||1,372,450|
|HSBC BROKING SECURITIES(ASIA) LIMITED-CLIENTS A/C||1,195,114|||||
||||Domestically listed foreign shares|||1,195,114|
|ZHUANG CHANGXIONG||1,045,000|Domestically listed foreign shares|||1,045,000|
|SUN WEIWEI||966,567|Domestically listed foreign shares|||966,567|
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||926,997|||||
||||Domestically listed foreign shares|||926,997|
|QIN HUI||909,286|Domestically listed foreign shares|||909,286|
|||The top ten shareholders of the Company are public shareholders with tradable B shares.|||||
|Explanation on affiliated relationship||The Company is not aware of whether there is any affiliated relationship among the top ten|||||
|or persons acting in concert among||shareholders with tradable shares and whether there are persons acting in concert among|||||
|the above-mentioned shareholders||them. The Company is not aware of whether there is any affiliated relationship among the|||||
|||top ten shareholders and the top ten shareholders with tradable share.|||||
|Explanation on the top ten|||||||
|shareholders with tradable shares|||||||
|||Inapplicable|||||
|participating in the margin trading|||||||
|business (if any)|||||||

Whether the top 10 shareholders with common shares and the top 10 shareholders with tradable common shares of the Company reach agreement of buy-back trading in the report period?
□ Yes√ No
No top 10 shareholders with common shares and top 10 shareholders with tradable common shares of the
2014 Quarterly Three Report of Wuhan Boiler Company Limited Company carried out any agreed buy-back trading in the report period.
2. Total number of shareholders with preferred shares and shareholdings of the top ten shareholders with preferred shares at the period-end
□Applicable√Inapplicable
2014 Quarterly Three Report of Wuhan Boiler Company Limited Section III Significant Events
I. Major changes of main accounting statement items and financial indicators in the report period, as well as reasons for the changes
√Applicable□Inapplicable
1. Cash and cash equivalent increased by788.28%, mainly due to increase on down-payment collection from Opole, Karabiga projects this period;
2. Notes receivable increased by48.30%, mainly due to increase of bank notes collection this period;
3. Account receivables decreased by84.40%, mainly due to collection of accounts receivables which were booked in prior period;
4. Inventories decreased by40.74%,it’s mainly due to increase on progress billing of construction contract, and the inventories on construction contracts decreased accordingly;
5. Construction in progress increased by155.31%, mainly due to construction of new workshop;
6. Deferred income tax assets increased by43.85%, mainly due to the increase of the temporary deductible differences resulted from contract loss provision and bad debt provision;
7. Other non-current assets decreased by100%, mainly due to decrease of hedging loss for un-expired forward contracts in this period;
8. Notes payable increased by100%, mainly due to increase of payment with bank notes this period;
9. Accounts payable increased by47.06%, mainly due to the increase of raw material purchasing for Yanbu and Tai'an project this period;
10. Tax payable increased by64.67%, mainly due to refunding of export tax rebate;
11. Interest payable decreased by82.44%, mainly due to payment of interest which was booked in prior year; 12. Business tax and surcharges increased by100%, mainly due to no taxable service took place in prior period; 13. Assets impairment loss increased by518.39%, mainly due to the increase of bad-debt provision and project loss provision this period;
14. Changes in fair value of net income increased by58.15%, mainly due to decrease of the loss of the hedging instruments and hedged items;
15. Non-operating income decreased by59.56%, mainly due to the reduce of indemnity from vendors in the report period;
16. Non-operating cost decreased by94.24%, mainly due to the reduce of asset disposal in the report period; 17. Income tax expense decreased by687.75%, mainly due to the increase of the temporary deductible differences resulted from contract loss provision and bad debt provision;
18. Net cash flow generated from operating activities increased by2237.87%, mainly due to increase of down-payment collection on Opole, Karabiga projects this period;
19. Net cash flow generated from investment activities increased by67.79%, mainly due to the decrease of cash out paid for fixed assets this period;
20. Net cash flow generated from financing activities decreased by420.65%, mainly due to the increase in repayment of entrusted loans this period;
21. The influence of the changes of rate on cash increased by83.41%, mainly due to the influences of the FX rate changes this period.
2014 Quarterly Three Report of Wuhan Boiler Company Limited II. Progress and influence of significant events, as well as the analysis and explanation on solutions
√Applicable□Inapplicable
1. Because the audited net profits and closing net assets for three consecutive accounting years of 2011, 2012 and 2013 are negative, Shenzhen Stock Exchange has decided to suspend the listing of theCompany’s stock starting from May 16, 2014 according to Article 14.1.1 and 14.1.2 of the Stock Listing Rules of Shenzhen Stock Exchange (revised version 2012). The announcement of listing suspension decision was disclosed on Securities Times and Ta Kung Pao on May 14, 2014 with No. 2014-049.
2. The Board of Directors has taken positive actions to improve operation, and has explored all possibilities to prevent delisting risk. ThreeShareholders’ Meetings were convened to approve the Debt-to-equity Conversion Plan on November 23, 2012, December 17, 2012 and May 23, 2014 respectively. However, the Plan was not approved by theShareholders’ Meeting for 3 times.
3. The Company disclosed 2014 Interim Report on August 29, 2014. In the first half year of 2014, net profit attributable to shareholders of the Company was RMB 8,214,639.10, net profit attributable to shareholders of the Company after deducting non-recurring gains and losses was RMB 7,868,973.11 and net asset attributable to shareholders of the Company was RMB -1,355,276,203.03.
4. From the year beginning to the end of the report period, net profit attributable to shareholders of the Company was RMB -79,948,213.21, net profit attributable to shareholders of the Company after deducting non-recurring gains and losses was -81,180,499.79 and net asset attributable to shareholders of the Company was RMB -1,443,439,055.34.
5. In order to satisfy the criteria for resuming the listing of theCompany’s stocks, pursuant to the Stocks Listing Rules of Shenzhen Stock Exchange (revised version 2012), theCompany’s financial data in the year of 2014 shall satisfy, at least both of the below criteria: (i) net asset value as of the end of fiscal period shall be positive; and (ii) net profit shall be positive before and after deducting non-recurring profit and loss. If the Company fails to meet the requirements for listing resumption, the stock of the Company will be delisted according to Article 14.3.1 of the Stock Listing Rules of Shenzhen Stock Exchange (revised version 2012). The Board of Directors hereby reminds investors of investment risks.
6. Up till now, the Board of Directors estimate that it is very difficult for the Company to make profit in 2014 based on current financial situation and normal daily operation. The Board of Directors will make forecast of 2014 annual result and disclose it as early as possible, so as to remind investors of investment risks.
7. The Company continued to engage Ernst& Young (China) Advisory Limited, an independent third party, in 2014 to issue an analysis report on transfer pricing between the Company and its related parties in 2013. Since the sales with related parties are mainly overseas orders(99.97% of the total sales with related parties in 2013), Ernst& Young (China) believed that it was the best to adopt the transactional net margin method in checking the transactions between WBC and its related parties and to adopt the full cost markup percentage in evaluating the rational profit extent that WBC should have achieved from the sale to its related parties in 2013. The analysis report concluded that: “From the perspective of transfer pricing in China, we are of the opinion thatWBC’s sales to its related parties in 2013 did not violate thearm’s length principle.”
8. On April 25, 2014, the
5th
Meeting of the
6th
Board of Directors approved the Investment Plan of United Building 3. On April 29, 2014, the Resolutions of the
5th
Meeting of the
6th
Board of Directors (No. 2014-036) and the Investment Announcement of the Company (No. 2014-047) were published on Securities Times, Ta Kung Pao and http://www.cninfo.com.cn. Up till now, the Company is going through formalities for United Building 3 project.
2014 Quarterly Three Report of Wuhan Boiler Company Limited 9. On August 29, 2014, WBC received a written notice from majority shareholder Alstom (China) Investment Co., Ltd. (“ACL”) that Alstom (a French listed company andWBC’s actual controller) recently announced that its Board of Directors has unanimously decided to issue a positive recommendation of the offer from GE to acquire the Thermal Power, Renewable Power and Grid Sectors and to enter into Energy alliances. Should this offer be approved and completed, Alstom would focus on its fully owned Transport activities and on its Energy alliances with GE. According to the latest information, the51% WBC shares owned by ACL belong to assets of the Alstom Thermal Power. Alstom expects the deal to be closed in the first half of calendar year 2015. Alstom and GE will continue to operate as separate companies until the transaction is finalized. If the transaction can be approved by Alstom shareholders and necessary anti-trust and other regulatory authorities, and can be completed within the first half year of 2015, the actual controller of the Company may be changed. However, there is still uncertainty: if the transaction cannot be approved by Alstom shareholders and necessary anti-trust and other regulatory authorities, the actual controller of the Company will not be changed. Until now, no substantial progress regarding this issue.
10. On Jun. 28, 2013, the Amendment of Articles of Association of Wuhan Boiler Company Limited (the “AOA Amendment”) was reviewed and approved on 2012 AnnualShareholders’ Meeting of the Company. Main revision is: Article 74 Shareholders shall issue separate and individual proxy for eachshareholders’ meeting, and shall not issue long-term proxy. A proxy shall not sub-authorize other person to attend theshareholders’ meeting or to exercise the voting right. If a proxy, who is a shareholder of the Company, is entrusted by five or more than five shareholders, he shall collect the voting rights openly and complete relevant procedures according to the regulations related to voting rights collection of the Company. A proxy, who is not a shareholder of the Company, shall not be entrusted by five or more than five shareholders of the Company. However, the Collector stipulated in Article 88 shall be excluded. Article 88 The following organization or person is entitled to collect the voting rights from shareholders of the Company to vote atshareholders’ meetings:(i) The Board of Directors;(ii) Independent directors;(iii) Shareholders individually or jointly holding more than1% shares of the Company. The Collector shall engage lawyers or state notary authorities to provide legal opinions with respect to the qualification of the Collector, collection plan, the form of power of attorney, validity and effectiveness of performance of the voting rights collected and other related matters. The legal opinion or notarization shall be published together with the report and the power of attorney in respect of the voting right collection in the media designated by the Company to disclose information. Upon the requirement of Shenzhen Stock Exchange, AllBright Law Offices issued the Legal Opinion on the AOA Amendment. In their opinion, the AOA Amendment did not violate any compulsory provision of the existing laws and regulations, nor there was any legal basis to prove that the AOA Amendment imposed improper restrictions on the legal rights and interests of minority shareholders. The full text of the Legal Opinion was disclosed on http://www.cninfo.com.cn on Jun. 8, 2013. Minority shareholder Mr. Tan Zhenbiao believed otherwise that the AOA Amendment restricted public shareholders from properly executing their civil rights, infringed their legal rights and interests and therefore should be considered as an illegal resolution. On that ground, he sued the Company before the Court of Wuhan East Lake New Technology Development Zone. In order to further enhance the shareholder voting system of the Company and protect the lawful interests of shareholders, Article 74 and 88 of the AOA have been amended according to the Opinions of the General Office of the State Council on Further Protecting Lawful Rights and Interests of Medium and Small Investors in Capital Market (Guobanfa[2013] No. 110). The AOA Amendment has been approved by the First ExtraordinaryShareholders’ Meeting. The amended AOA was disclosed on the Securities Times, Ta Kung Pao and http://www.cninfo.com.cn on May 22, 2014. In July 2014, the Court of Wuhan East Lake New Technology Development Zone made the judgment that the claim of the Plaintiff Tan Zhenbiao was rejected after the trial.
11. In Sep. 2003, Dongfang Xiwang Baotou Xitu Aluminium Co., Ltd (“Baotou”) signed the Contract of
2014 Quarterly Three Report of Wuhan Boiler Company Limited2×350MW Boilers with the Company. During executing the Contract, the Company fully implemented delivery obligations according to the Contract, but Baotou defaulted on the payment. The Company required Baotou to pay the overdue many times through various ways (including phone, fax and EMS), but Baotou claimed quality issues against the Company and refused to pay. It also refused to solve the pending problems through amicable negotiation with the Company. In May 2014, the Company sued Baotou before Inner Mongolia High Court, requesting judgment against Baotou for paying overdue and undertaking liquidated damages and bank interests. Relevant evidences were submitted to the Court. Until now, the Court has conducted conciliation and the case has not been heard yet.
12. In Nov. 2001, Shenzhen Wangda Color Printing Packaging Co., LTD. signed a boiler supply contract with the Company (Contract No. 2001D011). In Sep. 2003, both parties signed a supplementary agreement that Jiangsu Wangda Paper Co., LTD. (“Jiangsu Wangda”) would perform rights and obligations of the Contract. In Feb. 2004, after receiving the deposit RMB 4.61 million of the Contract, the Company organized design, manufacturing and purchasing. In Nov. 2004, Jiangsu Wangda requested the Company to postpone delivery and stopped paying the rest payments, which caused the project suspension till now. In Apr. 2011, Jiangsu Wangda sent a letter to the Company, asking to cancel the Contract and return the deposit of RMB 4.61 million. However, some costs and expenses were incurred during design, manufacturing and purchasing of the Company. The Company agreed to terminate the Contract on the basis of no deposit return and sufficient compensation of losses. But Jiangsu Wangda didn't agree. Because no consensus was achieved on contract termination, Jiangsu Wangda sued the Company before Wuhan Intermediate Court, requesting to terminate the Contract and the Company to return RMB 4.61 million and undertake interests since May 25, 2011. On Jun. 25, 2014, the Company was informed during the hearing that Jiangsu Wangda has been in the bankruptcy process, decided by Changzhou Xinbei District Court on Nov. 29, 2013, and an administrator was designated by the Court. The administrator requested to terminate the Contract according to the Enterprise Bankruptcy Law. After the trial, Wuhan Intermediate Court made the judgement as following: (1) the Contract is confirmed terminated; (2) the Company shall return the deposit RMB 4.61 million to Jiangsu Wangda within 10 days since the rulings coming into effect; (3) reject other claims of Jiangsu Wangda. Either party can submit the appeal petition to the Court to file an appeal within 15 days after receipt of the judgment. This judgment is the result of first instance. The Company will file an appeal in time and make information disclosure according to litigation progress.
||||
|-|-|-|
|||Index to the relevant announcement disclosed on|
|Overview of the significant event|Date of disclosure||
|||the website|
|Offer from GE to acquire the Thermal Power, RenewablePower and Grid Sectors of Alstom|Sep. 1, 2014|http://www.cninfo.com.cn (No. 2014-076)|
|Litigation raised by minority shareholder Tan Zhenbiaoagainst the Company to invalidate the AOA Amendment|Jul. 15, 2014|http://www.cninfo.com.cn (No. 2014-071)|
|Litigation raised by the Company against Baotou forcontract disputes|Aug. 6, 2014|http://www.cninfo.com.cn (No. 2014-073)|
|Litigation raised by Jiangsu Wangda against the Companyfor contract disputes|Oct. 21, 2014|http://www.cninfo.com.cn (No. 2014-082)|

III. Commitments made by the Company or shareholders holding over5% shares of the
Company in the report period or such commitments carried down into the report period
√Applicable□Inapplicable
2014 Quarterly Three Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
||Commitment||Time of making|Period of||
|Commitment||Contents|||Fulfillment|
||maker||commitment|commitment||
|Commitment on share reform|－|－|－|－|－|
||Alstom (China)||||Strictly fulfill|
|Commitment in the acquisition report or||Avoid horizontal||Long-term||
||Investment Co.,||April 14, 2006||the commitment|
|the report on equity changes||competition||effective||
||Ltd||||and no breaches|
|Commitments made in assets||||||
||－|－|－|－|－|
|reorganization||||||
|Commitments made in IPO or refinancing|－|－|－|－|－|
|Other commitments made to minority||||||
||－|－|－|－|－|
|shareholders||||||
|The commitment has been fulfilled in time||||||
||Yes|||||
|or not||||||

IV. Forecast for 2014 annual operating results
Warnings of possible loss or considerable year-on-year change of the accumulated net profit made during the period from the beginning of the year to the end of the next report period according to forecast, as well as explanations on the reasons
√ Applicable□ Not applicable
Operation results warning: Loss
||||||||
|-|-|-|-|-|-|-|
||Amount from beginning of the year|||The amount of the same|||
||||||changes||
||to the end of next report period|||period last year|||
|Forecast accumulated net|||||||
||-14,000.00|--|-7,000.00|-12,027.13||--|
|profit (in Ten thousand RMB)|||||||
|Basic EPS (RMB Yuan/share)|-0.47|--|-0.24|-0.40||--|
||Amount as of the end of next report|||The amount of the same|||
||||||changes||
||period|||period last year|||
|Owners’ equity attributable to|||||||
|shareholders of the Company|-150,349.00|--|-143,349.00|-136,349.08||--|
|(in Ten thousand RMB)|||||||
||Loss of the annual operating result forecast is mainly due to less domestic order intake thanexpectation, financial expenses from shareholder entrusted loan, and bad-debt provision and projectloss provision.||||||
|Reasons of the forecast|||||||

V. Securities investment
□ Applicable√ Inapplicable
The Company did not invest in any securities in the report period.
Shareholdings in other listed companies
2014 Quarterly Three Report of Wuhan Boiler Company Limited□ Applicable√ Inapplicable
The Company did not hold any shares in other listed companies in the report period.
VI. Derivatives investment
√Applicable□Inapplicable
Unit: RMB Ten thousand
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Proportion||
|||||||||||of the||
|||||||||||closing||
|||Related|||||||||Actual|
||||Type of|Initial|||Opening|Impairment|Closing|investment||
|||party|||Beginning|Ending|||||gain/loss|
|Operator|Relation||derivatives|investment|||investment|provision|investment|amount in||
|||transaction|||date|date|||||in report|
||||investment|amount|||amount|(if any)|amount|the||
|||or not|||||||||period|
|||||||||||Company’s||
|||||||||||closing net||
|||||||||||assets (%)||
||||Forward|||||||||
||Non-||||2013-08-|2015-12||||||
|HSBC||No|FX|3,098.2|||3,098.2||21,995.95|15.24%|-8.25|
||Relation||||27|-30||||||
||||contract|||||||||
||||Forward|||||||||
||Non-||||2014-03-|2014-12||||||
|SCB||No|FX|2,997.54|||2,997.54||8,056.42|5.58%|26.94|
||Relation||||27|-26||||||
||||contract|||||||||
|Total||||6,095.74|--|--|6,095.74|0|30,052.37|20.82%|18.69|
|Capital source for derivatives investment||||Self-funded||||||||
|Any litigation involved||||None||||||||
|Disclosure date of the board||||||||||||
|announcement approving the derivative||||April 29, 2014||||||||
|investment (if any)||||||||||||
|Disclosure date of the Shareholders’||||||||||||
|Meeting announcement approving the||||NA||||||||
|derivative investment (if any)||||||||||||
|||||In order to satisfy needs arising from business development and avoid risk concerning||||||||
|||||exchange rates, the Company signed forward FX contracts with HSBC, SCB, etc.||||||||
|||||respectively.||||||||
|Analysis on risks and control measures of||||For exchange rate fluctuations risk, the company and banks do collaborative exchange||||||||
|derivative products held in the report||||rate trend forecasts, closely track changes in exchange rates, changes in market conditions||||||||
|period (including but not limited to||||to implement dynamic management; For liquidity risk, foreign exchange hedging||||||||
|market risk, liquidity risk, credit risk,||||operations carried out by the company are based on the Company's estimated foreign||||||||
|operation risk, law risk, etc.)||||exchange payments and collection of trade, because the foreign exchange hedging||||||||
|||||operations match with the actual foreign exchange trade, so this can ensure sufficient fund||||||||
|||||for settlement at delivery time, there is less affected on the liquidation of the company’s||||||||
|||||current assets; For operational risk, the Company developed a standardized operational||||||||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
|||
|-|-|
||processes and authorization management systems, equipped with full-time staff and|
||strictly control their authority to conduct foreign exchange hedging operations; while|
||strengthening business related personnel training and professional ethics , and improving|
||quality of personnel, and the establishing anomalies timely reporting system to avoid the|
||occurrence of operational risk at the maximum; For credit risk, the Company's|
||counterparties of foreign exchange hedging are reputable business and the company has|
||established long-term business relationship with large commercial banks and foreign|
||banks, so, basically there is no performance risk; For legal risk, the Company conducted|
||foreign exchange hedging operations legally in accordance with relevant laws and|
||regulations and relevant transaction management practices, and signed a legal agreement|
||with the counterparties for clear and accurate terms to avoid possible legal disputes at the|
||maximum.|
|Changes of market prices or fair values in||
||The company recognized the gain and loss of fair values of the invested derivatives, the|
|the report period of the invested||
||fair values gain of the invested derivatives this period was 0.19MRMB, the calculation of|
|derivatives. And the analysis on the fair||
||fair values was based on the contract values and forward rate quote of end of this|
|value of the derivatives should include the||
||accounting period provided by the related business partners which was accordance with|
|specific use methods and the relevant||
||the expiry date of each forward contracts.|
|assumptions and parameters.||
|Whether significant changes occurred to||
|the Company’s accounting policy and||
|specific accounting principles of|No major change|
|derivatives in the report period compared||
|to the previous report period||
||Independent Directors expressed independent opinions on 2014 Hedging Derivative|
||Investments Estimation as below: The foreign exchange trading for hedging purpose made|
||by the Company in order to prevent exchange rate risk is based on reasonable estimation|
||and current need for foreign exchange payment and collection. The business process is|
|Independent Directors’ opinions on|compliant with laws and regulations. There is almost no market risk, no performance risk|
|derivatives investment and risk control|and no impact on liquidity of the Company. The Company has established organization,|
||business procedures, approval process and Internal Control Rules on Derivatives|
||Investment for foreign exchange trading. We think the Company can improve foreign|
||exchange risk management and prevent exchange rate risk through derivatives investment|
||business.|

VII. Researches, visits and interviews received in this report period
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion and materials|
|Time of reception|Place of reception|Way of reception|Visitor type|Visitor||
||||||provided by the Company|
||||||Would the Company organize|
|||||Shareholder with|another debt-to-equity voting? Would|
|Jul. 16, 2014|Wuhan|By phone|Individual|||
|||||tradable shares|the stock trading be resumed|
||||||successfully?|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
||||||The Company made profit in the first|
||||||half of the year. Would the operating|
|||||Shareholder with||
|Sep. 23, 2014|Wuhan|By phone|Individual||results for the whole year turn out|
|||||tradable shares||
||||||good? Would the stock trading be|
||||||resumed successfully?|

VIII. Impact on company consolidation financial statement from new or revised accounting standards
□ Applicable√ Inapplicable
IX. The confirmative opinion of all the Board Directors and Senior Management on recognition of 2014 Quarterly Three Report
According to Article 68 of the Securities Law, all the Board Director and Senior Management of the Company hereby confirm that 2014 Quarterly Three Report of the Company is authentic, accurate and complete without any misstatement, misleading statement or material omission.
X. The opinion of the Board of Supervisors on 2014 Quarterly Three Report
After review, the Board of Supervisors is of the opinion that the procedure for the Board of Directors to prepare and approve 2014 Quarterly Three Report is in accordance with laws, regulations and rules of China Securities Regulatory Commission. The contents of 2014 Quarterly Three Report, truly, accurately and completely, reflect real situation of the Company and there are no misstatements, misleading statements or material omissions.
2014 Quarterly Three Report of Wuhan Boiler Company Limited Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|89,848,819.35|10,114,897.11|
|Deposit reservation for balance|||
|Outgoing call loans|||
|Financial assets measured at fair|||
|value and of which the changes are|||
|recorded into the current gains and|||
|losses|||
|Notes receivable|22,245,380.00|15,000,000.00|
|Accounts receivable|34,541,537.41|221,376,068.36|
|Prepayment|68,451,597.05|66,353,048.93|
|Insurance receivables|||
|Reinsurance receivables|||
|Provision of reinsurance contract|||
|reserve receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|59,936,523.01|58,418,447.82|
|Financial assets purchased under|||
|agreement to resell|||
|Inventories|79,655,967.75|134,413,065.46|
|Assets held for sale|||
|Non-current assets due within 1-year|||
|Other current assets|||
|Total current assets|354,679,824.57|505,675,527.68|
|Non-current assets：|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Loan and payment on other’s behalf|||
|disbursed|||
|Available-for-sale financial assets|||
|Investment held to maturity|||
|Long-term receivables|||
|Long-term equity investment|||
|Investment property|||
|Fixed assets|681,526,740.08|705,316,090.85|
|Construction in progress|5,731,869.18|2,245,077.87|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|70,035,063.83|73,865,912.61|
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|75,567,570.74|52,533,127.61|
|Other non-current assets||12,137.16|
|Total non-current assets|832,861,243.83|833,972,346.10|
|Total assets|1,187,541,068.40|1,339,647,873.78|
|Current liabilities:|||
|Short-term loans|1,370,000,000.00|1,629,200,000.00|
|Loans from central bank|||
|Deposits received and held for others|||
|Call loans received|||
|Financial liabilities measured at fair|||
|value and of which the changes are|||
|recorded into the current gains and|||
|losses|||
|Notes payable|64,900,000.00||
|Accounts payable|284,999,816.14|193,795,670.01|
|Advance from customers|835,228,720.46|803,079,341.99|
|Financial assets sold under|||
|agreements to repurchase|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Fees and commissions payable|||
|Payroll payable|42,689,201.63|47,064,533.78|
|Taxes payable|-10,600,718.11|-30,001,780.39|
|Interest payable|2,156,100.00|12,276,456.15|
|Dividend payable|562,000.00|562,000.00|
|Other payables|35,891,415.11|41,329,411.60|
|Amount due to reinsurance|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Amount payable under security|||
|underwriting|||
|Liabilities held for sale|||
|Non-current liabilities due within|||
|1-year|||
|Other current liabilities|||
|Total current liabilities:|2,625,826,535.23|2,697,305,633.14|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Provision for liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|4,931,509.05|5,051,752.88|
|Total non-current liabilities :|4,931,509.05|5,051,752.88|
|Total liabilities|2,630,758,044.28|2,702,357,386.02|
|Owners’ equity (or shareholders’|||
|equity)|||
|Paid-in capital (or share capital)|297,000,000.00|297,000,000.00|
|Capital reserve|174,659,407.46|174,659,407.46|
|Less：Treasury Stock|||
|Specific reserve|||
|Surplus reserve|39,418,356.83|39,418,356.83|
|General risk provision|||
|Retained earnings|-1,954,516,819.63|-1,874,568,606.42|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Total owners’ equity attributable to|||
||-1,443,439,055.34|-1,363,490,842.13|
|the Company|||
|Minority interests|222,079.46|781,329.89|
|Total owners’ (or shareholders’) equity|-1,443,216,975.88|-1,362,709,512.24|
|Total liabilities & owners’ (or|||
||1,187,541,068.40|1,339,647,873.78|
|shareholders’) equity|||

Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
2. Balance sheet of the Company
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|88,157,686.14|8,554,186.69|
|Financial assets measured at fair|||
|value and of which the changes are|||
|recorded into the current gains and|||
|losses|||
|Notes receivable|22,245,380.00|15,000,000.00|
|Accounts receivable|34,541,537.41|220,742,468.36|
|Prepayment|68,451,597.05|66,353,048.93|
|Interest receivable|||
|Dividend receivable|||
|Other receivables|60,410,062.60|58,771,441.37|
|Inventories|79,655,967.75|134,413,065.46|
|Assets held for sale|||
|Non-current assets due within 1-year|||
|Other current assets|||
|Total current assets|353,462,230.95|503,834,210.81|
|Non-current assets：|||
|Available-for-sale financial assets|||
|Investment held to maturity|||
|Long-term receivables|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Long-term equity investment|24,984,500.00|24,984,500.00|
|Investment property|||
|Fixed assets|681,683,717.07|705,473,067.84|
|Construction in progress|5,731,869.18|2,245,077.87|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|70,035,063.83|73,865,912.61|
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|75,567,570.74|52,533,127.61|
|Other non-current assets||12,137.16|
|Total non-current assets|858,002,720.82|859,113,823.09|
|Total assets|1,211,464,951.77|1,362,948,033.90|
|Current liabilities:|||
|Short-term loans|1,370,000,000.00|1,629,200,000.00|
|Financial liabilities measured at fair|||
|value and of which the changes are|||
|recorded into the current gains and|||
|losses|||
|Notes payable|64,900,000.00||
|Accounts payable|285,435,816.14|194,231,670.01|
|Advance from customers|835,228,720.46|803,079,341.99|
|Payroll payable|42,519,605.65|46,894,937.80|
|Taxes payable|-10,600,718.11|-30,001,780.39|
|Interest payable|2,156,100.00|12,276,456.15|
|dividend payable|||
|Other payables|73,769,073.53|79,014,270.02|
|Liabilities held for sale|||
|Non-current liabilities due within|||
|1-year|||
|Other current liabilities|||
|Total current liabilities:|2,663,408,597.67|2,734,694,895.58|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Provision for liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|4,931,509.05|5,051,752.88|
|Total non-current liabilities :|4,931,509.05|5,051,752.88|
|Total liabilities|2,668,340,106.72|2,739,746,648.46|
|Owners’ equity (or shareholders’|||
|equity)|||
|Paid-in capital (or share capital)|297,000,000.00|297,000,000.00|
|Capital reserve|174,854,304.12|174,854,304.12|
|Less：Treasury Stock|||
|Specific reserve|||
|Surplus reserve|39,418,356.83|39,418,356.83|
|Preparation for ordinary risks|||
|Retained earnings|-1,968,147,815.90|-1,888,071,275.51|
|Total owners’ (or shareholders’) equity|-1,456,875,154.95|-1,376,798,614.56|
|Total liabilities & owners’ (or|||
||1,211,464,951.77|1,362,948,033.90|
|shareholders’) equity|||

Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
3. Consolidated income statement for the report period
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total sales|184,927,280.14|183,758,384.36|
|Including: Sales|184,927,280.14|183,758,384.36|
|Interest income|||
|Earned Premium|||
|Commissions and fees|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|income|||
|II. Total cost of sales|298,006,960.95|209,619,512.78|
|Including: Cost of sales|174,253,719.87|175,851,418.41|
|Interest expense|||
|Commissions and fees|||
|Cash surrender value|||
|Claim expenses-net|||
|Provision for insurance|||
|contract reserves-net|||
|Insurance policy dividend paid|||
|Reinsurance expense|||
|Business taxes and surcharges|||
|Distribution expenses|4,704,653.52|3,661,096.90|
|Administrative expenses|7,307,431.61|7,908,532.97|
|Financial costs|24,662,171.49|26,914,163.56|
|Impairment loss|87,078,984.46|-4,715,699.06|
|Add: gain/(loss) from change in fair|||
||284,232.63|455,805.09|
|value (“-” means loss)|||
|Gain/(loss) from investment|||
|(“-” means loss)|||
|Including: income from|||
|investment on associates and joint|||
|ventures|||
|Foreign exchange difference|||
|(“-” means loss)|||
|III. Business profit (“-” means loss)|-112,795,448.18|-25,405,323.33|
|Add: non-business income|886,620.59|145,022.03|
|Less: non-business expense||10,175.34|
|Including: loss from non-current|||
|asset disposal|||
|IV. Total profit (“-” means loss)|-111,908,827.59|-25,270,476.64|
|Less: income tax expense|-23,209,404.96|815,726.56|
|V. Net profit (“-” means loss)|-88,699,422.63|-26,086,203.20|
|Including: net profit achieved by the|||
|merged parties before business mergers|||
|Attributable to owners of the|-88,162,852.31|-26,094,844.19|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Company|||
|Minority shareholders’ income|-536,570.32|8,640.99|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|-0.30|-0.09|
|(II) Diluted earnings per share|-0.30|-0.09|
|VII. Other comprehensive income|||
|Including: Other comprehensive income|||
|items that cannot be reclassified as|||
|gains or losses in the subsequent|||
|accounting periods|||
|Other comprehensive income items|||
|that will be reclassified as gains or|||
|losses in the subsequent accounting|||
|periods as relevant requirements are|||
|met|||
|VIII. Total comprehensive income|-88,699,422.63|-26,086,203.20|
|Attributable to owners of the|||
||-88,162,852.31|-26,094,844.19|
|Company|||
|Attributable to minority|||
||-536,570.32|8,640.99|
|shareholders|||

Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
4. Income statement of the Company for the report period
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total sales|184,927,280.14|183,758,384.36|
|Less: Cost of sales|174,253,719.87|175,851,418.41|
|Business taxes and surcharges|||
|Distribution expenses|4,704,653.52|3,661,096.90|
|Administrative expenses|7,251,185.12|7,878,944.85|
|Financial costs|24,663,761.36|26,915,666.14|
|Impairment loss|87,153,843.41|-4,509,699.06|
|Add: gain/(loss) from change in fair|284,232.63|455,805.09|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
|means loss)|||
|Including: income from investment|||
|on associates and joint ventures|||
|Ⅱ. Business profit (“-” means loss)|-112,815,650.51|-25,583,237.79|
|Add: non-business income|886,620.59|145,022.03|
|Less: non-business expense||5,081.00|
|Including: loss from non-current|||
|asset disposal|||
|Ⅲ. Total profit (“-” means loss)|-111,929,029.92|-25,443,296.76|
|Less: income tax expense|-23,209,404.96|815,726.56|
|Ⅳ. Net profit (“-” means loss)|-88,719,624.96|-26,259,023.32|
|Ⅴ. Earnings per share|--|--|
|(I) Basic earnings per share|-0.30|-0.09|
|(II) Diluted earnings per share|-0.30|-0.09|
|VI. Other comprehensive income|||
|Including: Other comprehensive income|||
|items that cannot be reclassified as|||
|gains or losses in the subsequent|||
|accounting periods|||
|Other comprehensive income items|||
|that will be reclassified as gains or|||
|losses in the subsequent accounting|||
|periods as relevant requirements are|||
|met|||
|VII. Total comprehensive income|-88,719,624.96|-26,259,023.32|

 Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
5. Consolidated income statement for Jan.-Sept. 2014
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total sales|681,825,439.66|646,039,491.11|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Including: Sales|681,825,439.66|646,039,491.11|
|Interest income|||
|Earned Premium|||
|Commissions and fees|||
|income|||
|II. Total cost of sales|785,724,303.54|705,541,287.04|
|Including: Cost of sales|607,082,371.24|625,391,472.31|
|Interest expense|||
|Commissions and fees|||
|Cash surrender value|||
|Claim expenses-net|||
|Provision for insurance|||
|contract reserves-net|||
|Insurance policy dividend paid|||
|Reinsurance expense|||
|Business taxes and surcharges|6,820.58||
|Distribution expenses|12,366,623.58|10,121,944.10|
|Administrative expenses|20,533,081.15|20,968,024.67|
|Financial costs|70,196,285.14|67,114,356.66|
|Impairment loss|75,539,121.85|-18,054,510.70|
|Add: gain/(loss) from change in fair|||
||-875,329.47|-2,091,490.37|
|value (“-” means loss)|||
|Gain/(loss) from investment|||
|(“-” means loss)|||
|Including: income from|||
|investment on associates and joint|||
|ventures|||
|Foreign exchange difference|||
|(“-” means loss)|||
|III. Business profit (“-” means loss)|-104,774,193.35|-61,593,286.30|
|Add: non-business income|1,236,830.69|3,058,188.78|
|Less: non-business expense|4,544.11|78,909.55|
|Including: loss from non-current|||
|||67,734.21|
|asset disposal|||
|IV. Total profit (“-” means loss)|-103,541,906.77|-58,614,007.07|
|Less: income tax expense|-23,034,443.13|3,919,100.95|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|V. Net profit (“-” means loss)|-80,507,463.64|-62,533,108.02|
|Including: net profit achieved by the|||
|merged parties before business mergers|||
|Attributable to owners of the|||
||-79,948,213.21|-62,533,731.21|
|Company|||
|Minority shareholders’ income|-559,250.43|623.19|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|-0.27|-0.21|
|(II) Diluted earnings per share|-0.27|-0.21|
|VII. Other comprehensive income|||
|Including: Other comprehensive income|||
|items that cannot be reclassified as|||
|gains or losses in the subsequent|||
|accounting periods|||
|Other comprehensive income items|||
|that will be reclassified as gains or|||
|losses in the subsequent accounting|||
|periods as relevant requirements are|||
|met|||
|VIII. Total comprehensive income|-80,507,463.64|-62,533,108.02|
|Attributable to owners of the|||
||-79,948,213.21|-62,533,731.21|
|Company|||
|Attributable to minority|||
||-559,250.43|623.19|
|shareholders|||

Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
6. Income statement of the Company for Jan.-Sept. 2014
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total sales|681,825,439.66|646,039,491.11|
|Less: Cost of sales|607,082,371.24|625,391,472.31|
|Business taxes and surcharges|6,820.58||
|Distribution expenses|12,366,623.58|10,121,944.10|
|Administrative expenses|20,410,282.48|20,931,721.74|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Financial costs|70,200,624.74|67,118,553.69|
|Impairment loss|75,226,657.67|-18,004,846.36|
|Add: gain/(loss) from change in fair|||
||-875,329.47|-2,091,490.37|
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
|means loss)|||
|Including: income from investment|||
|on associates and joint ventures|||
|Ⅱ. Business profit (“-” means loss)|-104,343,270.10|-61,610,844.74|
|Add: non-business income|1,236,830.69|3,058,188.78|
|Less: non-business expense|4,544.11|73,815.21|
|Including: loss from non-current|||
|||67,734.21|
|asset disposal|||
|Ⅲ. Total profit (“-” means loss)|-103,110,983.52|-58,626,471.17|
|Less: income tax expense|-23,034,443.13|3,919,100.95|
|Ⅳ. Net profit (“-” means loss)|-80,076,540.39|-62,545,572.12|
|Ⅴ. Earnings per share|--|--|
|(I) Basic earnings per share|-0.27|-0.21|
|(II) Diluted earnings per share|-0.27|-0.21|
|VI. Other comprehensive income|||
|Including: Other comprehensive income|||
|items that cannot be reclassified as|||
|gains or losses in the subsequent|||
|accounting periods|||
|Other comprehensive income items|||
|that will be reclassified as gains or|||
|losses in the subsequent accounting|||
|periods as relevant requirements are|||
|met|||
|VII. Total comprehensive income|-80,076,540.39|-62,545,572.12|

 Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|1. Cash flows from operating activities|||
|Cash received from sales of goods|||
||828,025,249.47|450,824,601.80|
|or rending of services|||
|Net increase of deposits received|||
|and held for others|||
|Net increase of loans from central|||
|bank|||
|Net increase of inter-bank loans|||
|from other financial institutions|||
|Cash received against original|||
|insurance contracts|||
|Cash received from reinsurance|||
|Net increase of client deposit and|||
|investment|||
|Net increase of disposal of|||
|held-for-trading financial assets|||
|Cash received as interest, fees and|||
|commissions|||
|Net increase of inter-bank fund|||
|received|||
|Net increase of cash received|||
|under repurchasing|||
|Tax returned|26,186,725.95|83,030,580.43|
|Other cash received from operating|||
||2,380,073.90|2,080,000.00|
|activities|||
|Sub-total of cash inflow from operating|||
||856,592,049.32|535,935,182.23|
|activities|||
|Cash paid for goods and services|254,614,312.86|372,087,519.59|
|Net increase of loans and advances|||
|Net increase of deposit in central|||
|bank, banks and other financial|||
|institutions|||
|Cash paid for original contract|||
|claim|||
|Cash paid for interest, fees and|||
|commissions|||
|Cash paid for policy dividend|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Cash paid to and for employees|130,195,276.80|126,584,746.39|
|Cash paid for all types of taxes|9,525,944.55|6,245,378.10|
|Other cash paid relating to|||
||38,806,048.22|50,824,661.14|
|operating activities|||
|Sub-total of cash outflows from|433,141,582.43||
|||555,742,305.22|
|operating activities|||
|Net cash flows from operating activities|423,450,466.89|-19,807,122.99|
|2. Cash flows from investing activities|||
|Cash received from retraction of|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|251,437.31|564,650.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries and other operating units|||
|Other cash received relating to|||
||1,417,606.10|192,335.43|
|investing activities|||
|Sub-total of cash inflows of investing|||
||1,669,043.41|756,985.43|
|activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|5,385,015.97|16,855,476.65|
|long-term assets|||
|Cash paid for acquisition of|||
|investments|||
|Net increase of pledge loans|||
|Net cash paid for acquisition of|||
|subsidiaries and other operating units|||
|Other cash paid relating to|||
||1,615,047.74|451,467.95|
|investing activities|||
|Sub-total of cash outflows of investing|||
||7,000,063.71|17,306,944.60|
|activities|||
|Net cash flow from investing activities|-5,331,020.30|-16,549,959.17|
|3. Cash flows from financing activities|||
|Cash received from investment|||
|Including: cash received from|||
|minority shareholders of subsidiaries|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Cash received from borrowings|1,044,800,000.00|862,000,000.00|
|Cash received from bonds issuing|||
|Other cash received relating to|||
|financing activities|||
|Sub-total of cash inflows of financing|||
||1,044,800,000.00|862,000,000.00|
|activities|||
|Cash paid for repayment of|||
||1,304,000,000.00|862,600,000.00|
|borrowings|||
|Cash paid for dividends, profit|||
||78,906,216.93|64,339,050.00|
|distribution or interest|||
|Including: dividends or profits paid|||
|to minority shareholders by subsidiaries|||
|Other cash paid relating to|||
|financing activities|||
|Sub-total of cash outflows of financing|||
||1,382,906,216.93|926,939,050.00|
|activities|||
|Net cash flow from financing activities|-338,106,216.93|-64,939,050.00|
|4. Effect of foreign exchange rate|||
||-279,515.67|-1,684,965.68|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||79,733,713.99|-102,981,097.84|
|equivalents|||
|Add: cash and cash equivalents at|||
||8,283,224.28|131,071,052.35|
|the beginning of this period|||
|6. Cash and cash equivalents at the end|||
||88,016,938.27|28,089,954.51|
|of this period|||

Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|1. Cash flows from operating activities|||
|Cash received from sales of goods|||
||827,898,889.04|450,804,601.80|
|or rending of services|||
|Tax returned|26,186,725.95|83,030,580.43|
|Other cash received from operating|2,380,073.90|2,080,000.00|

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|activities|||
|Sub-total of cash inflow from operating|||
||856,465,688.89|535,915,182.23|
|activities|||
|Cash paid for goods and services|254,614,312.86|372,087,519.59|
|Cash paid to and for employees|130,195,276.80|126,584,746.39|
|Cash paid for all types of taxes|9,525,944.55|6,245,378.10|
|Other cash paid relating to|||
||38,805,556.98|50,824,661.14|
|operating activities|||
|Sub-total of cash outflows from|433,141,091.19||
|||555,742,305.22|
|operating activities|||
|Net cash flows from operating activities|423,324,597.70|-19,827,122.99|
|2. Cash flows from investing activities|||
|Cash received from retraction of|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|251,437.31|564,650.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries and other operating units|||
|Other cash received relating to|||
||1,413,022.50|187,804.40|
|investing activities|||
|Sub-total of cash inflows of investing|||
||1,664,459.81|752,454.40|
|activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|5,385,015.97|16,855,476.65|
|long-term assets|||
|Cash paid for acquisition of|||
|investments|||
|Net cash paid for acquisition of|||
|subsidiaries and other operating units|||
|Other cash paid relating to|||
||1,615,017.74|451,133.95|
|investing activities|||
|Sub-total of cash outflows of investing|||
||7,000,033.71|17,306,610.60|
|activities|||
|Net cash flow from investing activities|-5,335,573.90|-16,554,156.20|
|3. Cash flows from financing activities|||

2014 Quarterly Three Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Cash received from investment|||
|Cash received from borrowings|1,044,800,000.00|862,000,000.00|
|Cash received from issuing bonds|||
|Other cash received relating to|||
|financing activities|||
|Sub-total of cash inflows of financing|||
||1,044,800,000.00|862,000,000.00|
|activities|||
|Cash paid for repayment of|||
||1,304,000,000.00|862,600,000.00|
|borrowings|||
|Cash paid for dividends, profit|||
||78,906,216.93|64,339,050.00|
|distribution or interest|||
|Other cash paid relating to|||
|financing activities|||
|Sub-total of cash outflows of financing|||
||1,382,906,216.93|926,939,050.00|
|activities|||
|Net cash flow from financing activities|-338,106,216.93|-64,939,050.00|
|4. Effect of foreign exchange rate|||
||-279,515.67|-1,684,965.68|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||79,603,291.20|-103,005,294.87|
|equivalents|||
|Add: cash and cash equivalents at|||
||6,722,513.86|129,536,056.34|
|the beginning of this period|||
|6. Cash and cash equivalents at the end|||
||86,325,805.06|26,530,761.47|
|of this period|||

Legal representative: YEUNG Kwok Wei Richard Person-in-charge of the accounting work: CHIN Wee Hua Chief of the accounting division: LI Yihao
II. Audit report
Is this report audited?
□
Yes
√
No
This report is not audited.